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S.B. No. 1

S.B. No. 1

AN ACT

relating to certain state fiscal matters; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. FOUNDATION SCHOOL PROGRAM PAYMENTS
SECTION 1.01. Subsections (c), (d), and (f), Section
42.259, Education Code, are amended to read as follows:
(c) Payments from the foundation school fund to each
category 2 school district shall be made as follows:
(1) 22 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October;
(3) 9.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of November;
(4) 7.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of April;
(5) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of May;
(6) 10 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of June;
(7) 13 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of July; and
(8) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(d) Payments from the foundation school fund to each
category 3 school district shall be made as follows:
(1) 45 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 35 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October; and
(3) 20 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(f) Except as provided by Subsection (c)(8) or (d)(3), any
[Any] previously unpaid additional funds from prior fiscal years
owed to a district shall be paid to the district together with the
September payment of the current fiscal year entitlement.
SECTION 1.02. Subsection (c), Section 466.355, Government
Code, is amended to read as follows:
(c) Each August the comptroller shall:
(1) estimate the amount to be transferred to the
foundation school fund on or before September 15; and
(2) notwithstanding Subsection (b)(4), transfer the
amount estimated in Subdivision (1) to the foundation school fund
before August 25 [installment payments are made under Section
42.259, Education Code].
SECTION 1.03. The changes made by this article to Section
42.259, Education Code, apply only to a payment from the foundation
school fund that is made on or after the effective date of this Act.
A payment to a school district from the foundation school fund that
is made before that date is governed by Section 42.259, Education
Code, as it existed before amendment by this article, and the former
law is continued in effect for that purpose.
ARTICLE 2. FISCAL MATTERS REGARDING REGULATION AND TAXATION OF
INSURERS
SECTION 2.01. Section 221.006, Insurance Code, is amended
by adding Subsection (c) to read as follows:
(c) An insurer is not entitled to a credit under Subsection
(a) for an examination or evaluation fee paid in calendar year 2012
or 2013. This subsection expires January 1, 2014.
SECTION 2.02. Section 222.007, Insurance Code, is amended
by adding Subsection (c) to read as follows:
(c) An insurer or health maintenance organization is not
entitled to a credit under Subsection (a) for an examination or
evaluation fee paid in calendar year 2012 or 2013. This subsection
expires January 1, 2014.
SECTION 2.03. Section 223.009, Insurance Code, is amended
by adding Subsection (c) to read as follows:
(c) A title insurance company is not entitled to a credit
under Subsection (a) for an examination or evaluation fee paid in
calendar year 2012 or 2013. This subsection expires January 1,
2014.
SECTION 2.04. Section 401.151, Insurance Code, is amended
by adding Subsection (f) to read as follows:
(f) An insurer is not entitled to a credit under Subsection
(e) for an examination or evaluation fee paid in calendar year 2012
or 2013. This subsection expires January 1, 2014.
SECTION 2.05. Section 401.154, Insurance Code, is amended
to read as follows:
Sec. 401.154. TAX CREDIT AUTHORIZED. (a) An insurer is
entitled to a credit on the amount of premium taxes to be paid by the
insurer for all examination fees paid under Section 401.153. The
insurer may take the credit for the taxable year during which the
examination fees are paid and may take the credit to the same extent
the insurer may take a credit for examination fees paid when a
salaried department examiner conducts the examination.
(b) An insurer is not entitled to a credit under Subsection
(a) for an examination fee paid in calendar year 2012 or 2013. This
subsection expires January 1, 2014.
SECTION 2.06. Section 463.160, Insurance Code, is amended
to read as follows:
Sec. 463.160. PREMIUM TAX CREDIT FOR CLASS A ASSESSMENT.
The amount of a Class A assessment paid by a member insurer in each
taxable year shall be allowed as a credit on the amount of premium
taxes due [in the same manner as a credit is allowed under Section
401.151(e)].
SECTION 2.07. The changes in law made by this article apply
only to a tax credit for an examination or evaluation fee paid on or
after January 1, 2012. Tax credits for examination or evaluation
fees paid before January 1, 2012, are governed by the law in effect
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
ARTICLE 3. STATE SALES AND FRANCHISE TAX REFUNDS FOR CERTAIN AD
VALOREM TAXPAYERS
SECTION 3.01. Subchapter F, Chapter 111, Tax Code, is
repealed.
SECTION 3.02. The repeal of Subchapter F, Chapter 111, Tax
Code, by this article does not affect an eligible person’s right to
claim a refund of state sales and use and state franchise taxes that
was established under Section 111.301, Tax Code, in relation to
taxes paid before the effective date of this article in a calendar
year for which the person paid ad valorem taxes to a school district
as provided by Section 111.301, Tax Code, before the effective date
of this article. An eligible person’s right to claim a refund of
state sales and use and state franchise taxes that was established
under Section 111.301, Tax Code, in relation to taxes paid before
the effective date of this article in a calendar year for which the
person paid ad valorem taxes to a school district as provided by
Section 111.301, Tax Code, before the effective date of this
article is governed by the law in effect on the date the right to
claim the refund was established, and the former law is continued in
effect for that purpose.
SECTION 3.03. This article takes effect October 1, 2011.
ARTICLE 4. TAX RECORDS
SECTION 4.01. Section 2153.201, Occupations Code, is
amended by amending Subsection (b) and adding Subsection (c) to
read as follows:
(b) A record required under Subsection (a) must:
(1) be available at all times for inspection by the
attorney general, the comptroller, or an authorized representative
of the attorney general or comptroller as provided by Subsection
(c);
(2) include information relating to:
(A) the kind of each machine;
(B) the date each machine is:
(i) acquired or received in this state; and
(ii) placed in operation;
(C) the location of each machine, including the:
(i) county;
(ii) municipality, if any; and
(iii) street or rural route number;
(D) the name and complete address of each
operator of each machine;
(E) if the owner is an individual, the full name
and address of the owner; and
(F) if the owner is not an individual, the name
and address of each principal officer or member of the owner; and
(3) be maintained[:
[(A)] at a permanent address in this state
designated on the application for a license under Section
2153.153[; and
[(B) until the second anniversary of the date the
owner ceases ownership of the machine that is the subject of the
record].
(c) A record required under Subsection (a) must be available
for inspection under Subsection (b) for at least four years and as
required by Section 111.0041, Tax Code.
SECTION 4.02. Section 111.0041, Tax Code, is amended to
read as follows:
Sec. 111.0041. RECORDS; BURDEN TO PRODUCE AND SUBSTANTIATE
CLAIMS. (a) Except as provided by Subsection (b), a [Any]
taxpayer who is required by this title to keep records shall keep
those records open to inspection by the comptroller, the attorney
general, or the authorized representatives of either of them for at
least four years.
(b) A taxpayer is required to keep records, as provided by
Subsection (c) with respect to the taxpayer’s claim, open for
inspection under Subsection (a) for more than four years throughout
any period when:
(1) any tax, penalty, or interest may be assessed,
collected, or refunded by the comptroller; or
(2) an administrative hearing is pending before the
comptroller, or a judicial proceeding is pending, to determine the
amount of the tax, penalty, or interest that is to be assessed,
collected, or refunded.
(c) A taxpayer shall produce contemporaneous records and
supporting documentation appropriate to the tax or fee for the
transactions in question to substantiate and enable verification of
the taxpayer’s claim related to the amount of tax, penalty, or
interest to be assessed, collected, or refunded in an
administrative or judicial proceeding. Contemporaneous records
and supporting documentation appropriate to the tax or fee may
include, for example, invoices, vouchers, checks, shipping
records, contracts, or other equivalent records, such as
electronically stored images of such documents, reflecting legal
relationships and taxes collected or paid.
(d) This section prevails over any other conflicting
provision of this title.
SECTION 4.03. Section 112.052, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) A taxpayer shall produce contemporaneous records and
supporting documentation appropriate to the tax or fee for the
transactions in question to substantiate and enable verification of
a taxpayer’s claim relating to the amount of the tax, penalty, or
interest that has been assessed or collected or will be refunded, as
required by Section 111.0041.
SECTION 4.04. Section 112.151, Tax Code, is amended by
adding Subsection (f) to read as follows:
(f) A taxpayer shall produce contemporaneous records and
supporting documentation appropriate to the tax or fee for the
transactions in question to substantiate and enable verification of
a taxpayer’s claim relating to the amount of the tax, penalty, or
interest that has been assessed or collected or will be refunded, as
required by Section 111.0041.
SECTION 4.05. Subsection (b), Section 151.025, Tax Code, is
amended to read as follows:
(b) A record required by Subsection (a) [of this section]
shall be kept for not less than four years from the date [day] that
it is made unless:
(1) the comptroller authorizes in writing its
destruction at an earlier date; or
(2) Section 111.0041 requires that the record be kept
for a longer period.
SECTION 4.06. Section 152.063, Tax Code, is amended by
adding Subsection (h) to read as follows:
(h) Section 111.0041 applies to a person required to keep
records under this chapter.
SECTION 4.07. Section 152.0635, Tax Code, is amended by
adding Subsection (e) to read as follows:
(e) Section 111.0041 applies to a person required to keep
records under this chapter.
SECTION 4.08. Subsection (a), Section 154.209, Tax Code, is
amended to read as follows:
(a) Except as provided by Section 111.0041, each [Each]
permit holder shall keep records available for inspection and
copying by the comptroller and the attorney general for at least
four years.
SECTION 4.09. Subsection (a), Section 155.110, Tax Code, is
amended to read as follows:
(a) Except as provided by Section 111.0041, each [Each]
permit holder shall keep records available for inspection and
copying by the comptroller and the attorney general for at least
four years.
SECTION 4.10. Section 160.046, Tax Code, is amended by
adding Subsection (g) to read as follows:
(g) A person required to keep records under this section
shall also keep the records as required by Section 111.0041.
SECTION 4.11. Subchapter A, Chapter 162, Tax Code, is
amended by adding Section 162.0125 to read as follows:
Sec. 162.0125. DUTY TO KEEP RECORDS. A person required to
keep a record under this chapter shall also keep the record as
required by Section 111.0041.
SECTION 4.12. This article takes effect immediately if this
Act receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this article takes effect October 1, 2011.
ARTICLE 5. UNCLAIMED PROPERTY
SECTION 5.01. Subsection (b), Section 72.1017, Property
Code, as effective September 1, 2011, is amended to read as follows:
(b) Notwithstanding Section 73.102, a utility deposit is
presumed abandoned on the latest of:
(1) the first anniversary of [18 months after] the
date a refund check for the utility deposit was payable to the owner
of the deposit;
(2) the first anniversary of [18 months after] the
date the utility last received documented communication from the
owner of the utility deposit; or
(3) the first anniversary of [18 months after] the
date the utility issued a refund check for the deposit payable to
the owner of the deposit if, according to the knowledge and records
of the utility or payor of the check, during that period, a claim to
the check has not been asserted or an act of ownership by the payee
has not been exercised.
SECTION 5.02. This article takes effect on the 91st day
after the last day of the legislative session.
ARTICLE 6. CLASSIFICATION OF JUDICIAL AND COURT PERSONNEL
TRAINING FUND
SECTION 6.01. Section 56.001, Government Code, is amended
to read as follows:
Sec. 56.001. JUDICIAL AND COURT PERSONNEL TRAINING FUND.
(a) The judicial and court personnel training fund is an account
in the general revenue fund. Money in the judicial and court
personnel training fund may be appropriated only to [created in the
state treasury and shall be administered by] the court of criminal
appeals for the uses authorized in Section 56.003.
(b) [(i)] On requisition of the court of criminal appeals,
the comptroller shall draw a warrant on the fund for the amount
specified in the requisition for a use authorized in Section
56.003. A warrant may not exceed the amount appropriated for any
one fiscal year. [At the end of each state fiscal year, any
unexpended balance in the fund in excess of $500,000 shall be
transferred to the general revenue fund.]
ARTICLE 7. PROCESS SERVER CERTIFICATION FEES
SECTION 7.01. Section 51.008, Government Code, as effective
September 1, 2011, is amended by amending Subsection (c) and adding
Subsection (d) to read as follows:
(c) The Office of Court Administration of the Texas Judicial
System may collect the fees recommended by the process server
review board and approved by the supreme court. Fees collected
under this section shall be sent to the comptroller for deposit to
the credit of the general revenue fund [and may be appropriated only
to the office for purposes of this section].
(d) Fees collected under this section may be appropriated to
the Office of Court Administration of the Texas Judicial System for
the support of regulatory programs for process servers, guardians,
and court reporters.
[ARTICLE 8 reserved]
ARTICLE 9. REMITTANCE AND ALLOCATION OF CERTAIN MOTOR FUELS TAXES
SECTION 9.01. Section 162.113, Tax Code, is amended by
adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
follows:
(a-1) On August 28, 2013, each licensed distributor and
licensed importer shall remit to the supplier or permissive
supplier, as applicable, a tax prepayment in an amount equal to 25
percent of the tax imposed by Section 162.101 for gasoline removed
at the terminal rack during July 2013 by the licensed distributor or
licensed importer, without accounting for any credit or allowance
to which the licensed distributor or licensed importer is entitled.
The supplier or permissive supplier shall remit the tax prepayment
received under this subsection to the comptroller by electronic
funds transfer on August 30, 2013, without accounting for any
credit or allowance to which the supplier or permissive supplier is
entitled. Subsections (c)-(e) do not apply to the tax prepayment
under this subsection.
(a-2) A licensed distributor or licensed importer may take a
credit against the amount of tax imposed by Section 162.101 for
gasoline removed at a terminal rack during August 2013 that is
required to be remitted to the supplier or permissive supplier, as
applicable, under Subsection (a) in September 2013. The amount of
the credit is equal to the amount of any tax prepayment remitted by
the licensed distributor or licensed importer as required by
Subsection (a-1).
(a-3) Subsections (a-1) and (a-2) apply to a supplier or an
affiliate of a supplier who removes gasoline at the terminal rack
for distribution to the same extent and in the same manner that
those subsections apply to a licensed distributor or licensed
importer.
(a-4) Subsections (a-1), (a-2), and (a-3) and this
subsection expire September 1, 2015.
SECTION 9.02. Section 162.214, Tax Code, is amended by
adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
follows:
(a-1) On August 28, 2013, each licensed distributor and
licensed importer shall remit to the supplier or permissive
supplier, as applicable, a tax prepayment in an amount equal to 25
percent of the tax imposed by Section 162.201 for diesel fuel
removed at the terminal rack during July 2013 by the licensed
distributor or licensed importer, without accounting for any credit
or allowance to which the licensed distributor or licensed importer
is entitled. The supplier or permissive supplier shall remit the
tax prepayment received under this subsection to the comptroller by
electronic funds transfer on August 30, 2013, without accounting
for any credit or allowance to which the supplier or permissive
supplier is entitled. Subsections (c)-(e) do not apply to the tax
prepayment under this subsection.
(a-2) A licensed distributor or licensed importer may take a
credit against the amount of tax imposed by Section 162.201 for
diesel fuel removed at a terminal rack during August 2013 that is
required to be remitted to the supplier or permissive supplier, as
applicable, under Subsection (a) in September 2013. The amount of
the credit is equal to any tax prepayment remitted by the licensed
distributor or licensed importer as required by Subsection (a-1).
(a-3) Subsections (a-1) and (a-2) apply to a supplier or an
affiliate of a supplier who removes diesel fuel at the terminal rack
for distribution to the same extent and in the same manner that
those subsections apply to a licensed distributor or licensed
importer.
(a-4) Subsections (a-1), (a-2), and (a-3) and this
subsection expire September 1, 2015.
SECTION 9.03. Section 162.503, Tax Code, is amended to read
as follows:
Sec. 162.503. ALLOCATION OF GASOLINE TAX. (a) On or
before the fifth workday after the end of each month, the
comptroller, after making all deductions for refund purposes and
for the amounts allocated under Sections 162.502 and 162.5025,
shall allocate the net remainder of the taxes collected under
Subchapter B as follows:
(1) one-fourth of the tax shall be deposited to the
credit of the available school fund;
(2) one-half of the tax shall be deposited to the
credit of the state highway fund for the construction and
maintenance of the state road system under existing law; and
(3) from the remaining one-fourth of the tax the
comptroller shall:
(A) deposit to the credit of the county and road
district highway fund all the remaining tax receipts until a total
of $7,300,000 has been credited to the fund each fiscal year; and
(B) after the amount required to be deposited to
the county and road district highway fund has been deposited,
deposit to the credit of the state highway fund the remainder of the
one-fourth of the tax, the amount to be provided on the basis of
allocations made each month of the fiscal year, which sum shall be
used by the Texas Department of Transportation for the
construction, improvement, and maintenance of farm-to-market
roads.
(b) Notwithstanding Subsection (a), the comptroller may not
allocate revenue otherwise required to be allocated under
Subsection (a) during July and August 2013 before the first workday
of September 2013. The revenue shall be allocated as otherwise
provided by Subsection (a) not later than the fifth workday of
September 2013. This subsection expires September 1, 2015.
SECTION 9.04. Section 162.504, Tax Code, is amended to read
as follows:
Sec. 162.504. ALLOCATION OF DIESEL FUEL TAX. (a) On or
before the fifth workday after the end of each month, the
comptroller, after making deductions for refund purposes, for the
administration and enforcement of this chapter, and for the amounts
allocated under Section 162.5025, shall allocate the remainder of
the taxes collected under Subchapter C as follows:
(1) one-fourth of the taxes shall be deposited to the
credit of the available school fund; and
(2) three-fourths of the taxes shall be deposited to
the credit of the state highway fund.
(b) Notwithstanding Subsection (a), the comptroller may not
allocate revenue otherwise required to be allocated under
Subsection (a) during July and August 2013 before the first workday
of September 2013. The revenue shall be allocated as otherwise
provided by Subsection (a) not later than the fifth workday of
September 2013. This subsection expires September 1, 2015.
SECTION 9.05. The expiration of the amendments made to the
Tax Code in accordance with this article does not affect tax
liability accruing before the expiration of those amendments. That
liability continues in effect as if the amendments had not expired,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 9.06. This article takes effect October 1, 2011.
ARTICLE 10. REMITTANCE OF MIXED BEVERAGE TAXES AND TAXES AND FEES
ON CERTAIN ALCOHOLIC BEVERAGES
SECTION 10.01. Section 34.04, Alcoholic Beverage Code, is
amended by adding Subsections (c), (d), and (e) to read as follows:
(c) In August 2013, a permittee shall remit a tax prepayment
of taxes due to be remitted in September 2013 that is equal to 25
percent of the amount the permittee is otherwise required to remit
during August 2013 under the reporting system prescribed by the
commission. The prepayment is in addition to the amount the
permittee is otherwise required to remit during August. The
permittee shall remit the additional payment in conjunction with
the report and payment otherwise required during that month.
(d) A permittee who remits the additional payment as
required by Subsection (c) may take a credit in the amount of the
additional payment against the next payment due under the reporting
system prescribed by the commission.
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.02. Section 48.04, Alcoholic Beverage Code, is
amended by adding Subsections (c), (d), and (e) to read as follows:
(c) In August 2013, a permittee shall remit a tax prepayment
of taxes due to be remitted in September 2013 that is equal to 25
percent of the amount the permittee is otherwise required to remit
during August 2013 under the reporting system prescribed by the
commission. The prepayment is in addition to the amount the
permittee is otherwise required to remit during August. The
permittee shall remit the additional payment in conjunction with
the report and payment otherwise required during that month.
(d) A permittee who remits the additional payment as
required by Subsection (c) may take a credit in the amount of the
additional payment against the next payment due under the reporting
system prescribed by the commission.
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.03. Section 201.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 201.07. DUE DATE. (a) The tax on liquor is due and
payable on the 15th of the month following the first sale, together
with a report on the tax due.
(b) In August 2013, each permittee who is liable for the
taxes imposed by this subchapter shall remit a tax prepayment of
taxes due to be remitted in September 2013 that is equal to 25
percent of the amount the permittee is otherwise required to remit
during August 2013 under Subsection (a). The prepayment is in
addition to the amount the permittee is otherwise required to remit
during August. The permittee shall remit the additional payment in
conjunction with the report and payment otherwise required during
that month.
(c) A permittee who remits the additional payment as
required by Subsection (b) may take a credit in the amount of the
additional payment against the next payment due under Subsection
(a).
(d) Subsections (b) and (c) and this subsection expire
September 1, 2015.
SECTION 10.04. Section 201.43, Alcoholic Beverage Code, is
amended by amending Subsection (b) and adding Subsections (c), (d),
and (e) to read as follows:
(b) The tax is due and payable on the 15th day of the month
following the month in which the taxable first sale occurs,
together with a report on the tax due.
(c) In August 2013, each permittee who is liable for the tax
imposed by this subchapter shall remit a tax prepayment of taxes due
to be remitted in September 2013 that is equal to 25 percent of the
amount the permittee is otherwise required to remit during August
2013 under Subsection (b). The prepayment is in addition to the
amount the permittee is otherwise required to remit during August.
The permittee shall remit the additional payment in conjunction
with the report and payment otherwise required during that month.
(d) A permittee who remits the additional payment as
required by Subsection (c) may take a credit in the amount of the
additional payment against the next payment due under Subsection
(b).
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.05. Section 203.03, Alcoholic Beverage Code, is
amended by amending Subsection (b) and adding Subsections (c), (d),
and (e) to read as follows:
(b) The tax is due and payable on the 15th day of the month
following the month in which the taxable first sale occurs,
together with a report on the tax due.
(c) Each licensee who is liable for the tax imposed by this
chapter shall remit a tax prepayment of taxes due to be remitted in
September 2013 that is equal to 25 percent of the amount the
licensee is otherwise required to remit during August 2013 under
Subsection (b). The prepayment is in addition to the amount the
licensee is otherwise required to remit during August. The
licensee shall remit the additional payment in conjunction with the
report and payment otherwise required during that month.
(d) A licensee who remits the additional payment as required
by Subsection (c) may take a credit in the amount of the additional
payment against the next payment due under Subsection (b).
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.06. Section 183.023, Tax Code, is amended to
read as follows:
Sec. 183.023. PAYMENT. (a) The tax due for the preceding
month shall accompany the return and shall be payable to the state.
(b) The comptroller shall deposit the revenue received
under this section in the general revenue fund.
(c) In August 2013, each permittee who is liable for the tax
imposed by this subchapter shall remit a tax prepayment of taxes due
to be remitted in September 2013 that is equal to 25 percent of the
amount the permittee is otherwise required to remit during August
2013 under Subsection (a). The prepayment is in addition to the
amount the permittee is otherwise required to remit during August.
The permittee shall remit the additional payment in conjunction
with the return and payment otherwise required during that month.
(d) A permittee who remits the additional payment as
required by Subsection (c) may take a credit in the amount of the
additional payment against the next payment due under Subsection
(a).
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.07. The expiration of the amendments made to the
Alcoholic Beverage Code and Tax Code in accordance with this
article does not affect tax liability accruing before the
expiration of those amendments. That liability continues in effect
as if the amendments had not expired, and the former law is
continued in effect for the collection of taxes due and for civil
and criminal enforcement of the liability for those taxes.
ARTICLE 11. CIGARETTE TAX STAMPING ALLOWANCE
SECTION 11.01. Subsection (a), Section 154.052, Tax Code,
is amended to read as follows:
(a) A distributor is, subject to the provisions of Section
154.051, entitled to 2.5 [three] percent of the face value of stamps
purchased as a stamping allowance for providing the service of
affixing stamps to cigarette packages, except that an out-of-state
distributor is entitled to receive only the same percentage of
stamping allowance as that given to Texas distributors doing
business in the state of the distributor.
SECTION 11.02. This article applies only to cigarette
stamps purchased on or after the effective date of this article.
Cigarette stamps purchased before the effective date of this
article are governed by the law in effect on the date the cigarette
stamps were purchased, and that law is continued in effect for that
purpose.
SECTION 11.03. This article takes effect October 1, 2011.
ARTICLE 12. SALES FOR RESALE
SECTION 12.01. Section 151.006, Tax Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) “Sale for resale” means a sale of:
(1) tangible personal property or a taxable service to
a purchaser who acquires the property or service for the purpose of
reselling it with or as a taxable item as defined by Section 151.010
in the United States of America or a possession or territory of the
United States of America or in the United Mexican States in the
normal course of business in the form or condition in which it is
acquired or as an attachment to or integral part of other tangible
personal property or taxable service;
(2) tangible personal property to a purchaser for the
sole purpose of the purchaser’s leasing or renting it in the United
States of America or a possession or territory of the United States
of America or in the United Mexican States in the normal course of
business to another person, but not if incidental to the leasing or
renting of real estate;
(3) tangible personal property to a purchaser who
acquires the property for the purpose of transferring it in the
United States of America or a possession or territory of the United
States of America or in the United Mexican States as an integral
part of a taxable service; [or]
(4) a taxable service performed on tangible personal
property that is held for sale by the purchaser of the taxable
service; or
(5) except as provided by Subsection (c), tangible
personal property to a purchaser who acquires the property for the
purpose of transferring it as an integral part of performing a
contract, or a subcontract of a contract, with the federal
government only if the purchaser:
(A) allocates and bills to the contract the cost
of the property as a direct or indirect cost; and
(B) transfers title to the property to the
federal government under the contract and applicable federal
acquisition regulations.
(c) A sale for resale does not include the sale of tangible
personal property or a taxable service to a purchaser who acquires
the property or service for the purpose of performing a service that
is not taxed under this chapter, regardless of whether title
transfers to the service provider’s customer, unless the tangible
personal property or taxable service is purchased for the purpose
of reselling it to the United States in a contract, or a subcontract
of a contract, with any branch of the Department of Defense,
Department of Homeland Security, Department of Energy, National
Aeronautics and Space Administration, Central Intelligence Agency,
National Security Agency, National Oceanic and Atmospheric
Administration, or National Reconnaissance Office to the extent
allocated and billed to the contract with the federal government.
SECTION 12.02. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect October 1, 2011.
ARTICLE 13. REMITTANCE OF SALES AND USE TAXES
SECTION 13.01. Section 151.401, Tax Code, is amended by
adding Subsections (c), (d), and (e) to read as follows:
(c) In August 2013, a taxpayer who is required to pay the
taxes imposed by this chapter on or before the 20th day of that
month under Subsection (a), who pays the taxes imposed by this
chapter by electronic funds transfer, and who does not prepay as
provided by Section 151.424 shall remit to the comptroller a tax
prepayment that is equal to 25 percent of the amount the taxpayer is
otherwise required to remit during August 2013 under Subsection
(a). The prepayment is in addition to the amount the taxpayer is
otherwise required to remit during August. The taxpayer shall
remit the additional payment in conjunction with the payment
otherwise required during that month. Section 151.424 does not
apply with respect to the additional payment required by this
subsection.
(d) A taxpayer who remits the additional payment as required
by Subsection (c) may take a credit in the amount of the additional
payment against the next payment due under Subsection (a).
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 13.02. Section 151.402, Tax Code, is amended to
read as follows:
Sec. 151.402. TAX REPORT DATES. (a) A [Except as provided
by Subsection (b) of this section, a] tax report required by this
chapter for a reporting period is due on the same date that the tax
payment for the period is due as provided by Section 151.401.
(b) A taxpayer may report a credit in the amount of any tax
prepayment remitted to the comptroller as required by Section
151.401(c) on the tax report required by this chapter that is
otherwise due in September 2013 [for taxes required by Section
151.401(a) to be paid on or before August 20 is due on or before the
20th day of the following month]. This subsection expires
September 1, 2015.
SECTION 13.03. The expiration of the amendments made to the
Tax Code in accordance with this article does not affect tax
liability accruing before the expiration of those amendments. That
liability continues in effect as if the amendments had not expired,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
ARTICLE 14. PENALTIES FOR FAILURE TO REPORT OR REMIT CERTAIN TAXES
OR FEES
SECTION 14.01. Subsection (b), Section 111.00455, Tax Code,
is amended to read as follows:
(b) The following are not contested cases under Subsection
(a) and Section 2003.101, Government Code:
(1) a show cause hearing or any hearing not related to
the collection, receipt, administration, or enforcement of the
amount of a tax or fee imposed, or the penalty or interest
associated with that amount, except for a hearing under Section
151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;
(2) a property value study hearing under Subchapter M,
Chapter 403, Government Code;
(3) a hearing in which the issue relates to:
(A) Chapters 72-75, Property Code;
(B) forfeiture of a right to do business;
(C) a certificate of authority;
(D) articles of incorporation;
(E) a penalty imposed under Section 151.703(d)
[151.7031];

(F) the refusal or failure to settle under
Section 111.101; or
(G) a request for or revocation of an exemption
from taxation; and
(4) any other hearing not related to the collection,
receipt, administration, or enforcement of the amount of a tax or
fee imposed, or the penalty or interest associated with that
amount.
SECTION 14.02. Subsection (a), Section 151.468, Tax Code,
as effective September 1, 2011, is amended to read as follows:
(a) If a person fails to file a report required by this
subchapter or fails to file a complete report, the comptroller may
impose a civil or criminal penalty, or both, under Section
151.703(d) [151.7031] or 151.709.
SECTION 14.03. Section 151.703, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) In addition to any other penalty authorized by this
section, a person who fails to file a report as required by this
chapter shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the taxpayer
subsequently files the report or whether any taxes were due from the
taxpayer for the reporting period under the required report.
SECTION 14.04. Section 152.045, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) In addition to any other penalty provided by law, the
owner of a motor vehicle subject to the tax on gross rental receipts
who is required to file a report as provided by this chapter and who
fails to timely file the report shall pay a penalty of $50. The
penalty provided by this subsection is assessed without regard to
whether the taxpayer subsequently files the report or whether any
taxes were due from the taxpayer for the reporting period under the
required report.
SECTION 14.05. Section 152.047, Tax Code, is amended by
adding Subsection (j) to read as follows:
(j) In addition to any other penalty provided by law, the
seller of a motor vehicle sold in a seller-financed sale who is
required to file a report as provided by this chapter and who fails
to timely file the report shall pay a penalty of $50. The penalty
provided by this subsection is assessed without regard to whether
the taxpayer subsequently files the report or whether any taxes
were due from the taxpayer for the reporting period under the
required report.
SECTION 14.06. Section 156.202, Tax Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) The minimum penalty under Subsections (a) and (b) [this
section] is $1.
(d) In addition to any other penalty authorized by this
section, a person who fails to file a report as required by this
chapter shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the taxpayer
subsequently files the report or whether any taxes were due from the
taxpayer for the reporting period under the required report.
SECTION 14.07. Section 162.401, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) In addition to any other penalty authorized by this
section, a person who fails to file a report as required by this
chapter shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the taxpayer
subsequently files the report or whether any taxes were due from the
taxpayer for the reporting period under the required report.
SECTION 14.08. Section 171.362, Tax Code, is amended by
amending Subsection (c) and adding Subsection (f) to read as
follows:
(c) The minimum penalty under Subsections (a) and (b) [this
section] is $1.
(f) In addition to any other penalty authorized by this
section, a taxable entity who fails to file a report as required by
this chapter shall pay a penalty of $50. The penalty provided by
this subsection is assessed without regard to whether the taxable
entity subsequently files the report or whether any taxes were due
from the taxable entity for the reporting period under the required
report.
SECTION 14.09. Subchapter B, Chapter 183, Tax Code, is
amended by adding Section 183.024 to read as follows:
Sec. 183.024. FAILURE TO PAY TAX OR FILE REPORT. (a) A
permittee who fails to file a report as required by this chapter or
who fails to pay a tax imposed by this chapter when due shall pay
five percent of the amount due as a penalty, and if the permittee
fails to file the report or pay the tax within 30 days after the day
the tax or report is due, the permittee shall pay an additional five
percent of the amount due as an additional penalty.
(b) The minimum penalty under Subsection (a) is $1.
(c) A delinquent tax draws interest beginning 60 days from
the due date.
(d) In addition to any other penalty authorized by this
section, a permittee who fails to file a report as required by this
chapter shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the permittee
subsequently files the report or whether any taxes were due from the
permittee for the reporting period under the required report.
SECTION 14.10. Section 771.0712, Health and Safety Code, is
amended by adding Subsections (c) and (d) to read as follows:
(c) A seller who fails to file a report or remit a fee
collected or payable as provided by this section and comptroller
rules shall pay five percent of the amount due and payable as a
penalty, and if the seller fails to file the report or remit the fee
within 30 days after the day the fee or report is due, the seller
shall pay an additional five percent of the amount due and payable
as an additional penalty.
(d) In addition to any other penalty authorized by this
section, a seller who fails to file a report as provided by this
section shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the seller
subsequently files the report or whether any taxes were due from the
seller for the reporting period under the required report.
SECTION 14.11. Section 151.7031, Tax Code, is repealed.
SECTION 14.12. The change in law made by this article
applies only to a report due or a tax or fee due and payable on or
after the effective date of this article. A report due or a tax or
fee due and payable before the effective date of this article is
governed by the law in effect at that time, and that law is
continued in effect for that purpose.
SECTION 14.13. This article takes effect October 1, 2011.
ARTICLE 15. FISCAL MATTERS RELATED TO VOTER REGISTRATION
SECTION 15.01. Subsections (b), (c), and (d), Section
18.065, Election Code, are amended to read as follows:
(b) On determining that a registrar is not in substantial
compliance, the secretary shall deliver written notice of the
noncompliance to[:
[(1)] the registrar and include[, including] in the
notice a description of the violation and an explanation of the
action necessary for substantial compliance and of the consequences
of noncompliance[; and
[(2) the comptroller of public accounts, including in
the notice the identity of the noncomplying registrar].
(c) On determining that a noncomplying registrar has
corrected the violation and is in substantial compliance, the
secretary shall deliver written notice to the registrar [and to the
comptroller] that the registrar is in substantial compliance.
(d) [The comptroller shall retain a notice received under
this section on file until July 1 following the voting year in which
it is received.] The secretary shall retain a copy of each notice
the secretary delivers under this section for two years after the
date the notice is delivered.
SECTION 15.02. Subsection (a), Section 19.001, Election
Code, is amended to read as follows:
(a) Before May 15 of each year, the registrar shall prepare
and submit to the secretary of state [comptroller of public
accounts] a statement containing:
(1) the total number of initial registrations for the
previous voting year;
(2) the total number of registrations canceled under
Sections 16.031(a)(1), 16.033, and 16.0332 for the previous voting
year; and
(3) the total number of registrations for which
information was updated for the previous voting year.
SECTION 15.03. The heading to Section 19.002, Election
Code, is amended to read as follows:
Sec. 19.002. PAYMENTS [ISSUANCE OF WARRANTS BY
COMPTROLLER].
SECTION 15.04. Subsection (b), Section 19.002, Election
Code, is amended to read as follows:
(b) After June 1 of each year, the secretary of state
[comptroller of public accounts] shall make payments [issue
warrants] pursuant to vouchers submitted by the registrar and
approved by the secretary of state in amounts that in the aggregate
do not exceed the registrar’s entitlement. The secretary of state
shall prescribe the procedures necessary to implement this
subsection.
SECTION 15.05. Subsection (d), Section 19.002, Election
Code, as effective September 1, 2011, is amended to read as
follows:
(d) The secretary of state [comptroller] may not make a
payment under Subsection (b) [issue a warrant] if on June 1 of the
year in which the payment [warrant] is to be made [issued the most
recent notice received by the comptroller from the secretary of
state under Section 18.065 indicates that] the registrar is not in
substantial compliance with Section 15.083, 16.032, or 18.065 or
with rules implementing the registration service program.
SECTION 15.06. The heading to Section 19.0025, Election
Code, is amended to read as follows:
Sec. 19.0025. ELECTRONIC ADMINISTRATION OF VOUCHERS AND
PAYMENTS [WARRANTS].
SECTION 15.07. Subsection (a), Section 19.0025, Election
Code, is amended to read as follows:
(a) The secretary of state shall establish and maintain an
online electronic system for administering vouchers submitted and
payments made [warrants issued] under Section 19.002.
SECTION 15.08. Subsection (c), Section 19.002, Election
Code, is repealed.
ARTICLE 16. CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF
PUBLIC ACCOUNTS
SECTION 16.01. Subsection (d), Section 403.0551,
Government Code, is amended to read as follows:
(d) This section does not authorize the comptroller to
deduct the amount of a state employee’s indebtedness to a state
agency from any amount of compensation owed by the agency to the
employee, the employee’s successor, or the assignee of the employee
or successor. In this subsection, “compensation” has the meaning
assigned by Section 403.055 and [“compensation,”] “indebtedness,”
“state agency,” “state employee,” and “successor” have the meanings
assigned by Section 666.001.
SECTION 16.02. Subsection (h), Section 404.022, Government
Code, is amended to read as follows:
(h) The comptroller may execute a simplified version of a
depository agreement with an eligible institution desiring to hold
[$98,000 or less in] state deposits that are fully insured by the
Federal Deposit Insurance Corporation or the National Credit Union
Share Insurance Fund.
SECTION 16.03. Subsection (d), Section 403.0551,
Government Code, as amended by this article, applies to a deduction
made on or after the effective date of this Act for an indebtedness
to a state agency regardless of:
(1) the date the indebtedness accrued; or
(2) the dates of the pay period for which the
compensation from which the indebtedness is deducted is earned.
ARTICLE 17. PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND
OTHER MATERIALS
SECTION 17.01. Subsection (c), Section 61.539, Education
Code, is amended to read as follows:
(c) As soon as practicable after each state fiscal year, the
board [comptroller] shall prepare a report for that fiscal year of
the number of students registered in a medical branch, school, or
college, the total amount of tuition charges collected by each
institution, the total amount transferred to the comptroller under
this section, and the total amount available in the physician
education loan repayment program account for the repayment of
student loans of physicians under this subchapter. The board
[comptroller] shall deliver a copy of the report to [the board and
to] the governor, lieutenant governor, and speaker of the house of
representatives not later than January 1 following the end of the
fiscal year covered by the report.
SECTION 17.02. Subsection (c), Section 5.05, Tax Code, is
amended to read as follows:
(c) The comptroller shall electronically publish all
materials under this section [provide without charge one copy of
all materials to officials of local government who are responsible]
for administering the property tax system. [If a local government
official requests more than one copy, the comptroller may charge a
reasonable fee to offset the costs of printing and distributing the
materials.] The comptroller shall make the materials available to
local governmental officials and members of the public but may
charge a reasonable fee to offset the costs of preparing, printing,
and distributing the materials.
SECTION 17.03. Section 5.06, Tax Code, is amended to read as
follows:
Sec. 5.06. EXPLANATION OF TAXPAYER REMEDIES. [(a)] The
comptroller shall prepare and electronically publish a pamphlet
explaining the remedies available to dissatisfied taxpayers and the
procedures to be followed in seeking remedial action. The
comptroller shall include in the pamphlet advice on preparing and
presenting a protest.
[(b) The comptroller shall provide without charge a
reasonable number of copies of the pamphlet to any person on
request. The comptroller may charge a person who requests multiple
copies of the pamphlet a reasonable fee to offset the costs of
printing and distributing those copies. The comptroller at its
discretion shall determine the number of copies that a person may
receive without charge.]
SECTION 17.04. Section 5.09, Tax Code, is amended to read as
follows:
Sec. 5.09. BIENNIAL [ANNUAL] REPORTS. (a) The comptroller
shall prepare a biennial [publish an annual] report of [the
operations of the appraisal districts. The report shall include
for each appraisal district, each county, and each school district
and may include for other taxing units] the total appraised
values[, assessed values,] and taxable values of taxable property
by category [class of property, the assessment ratio,] and the tax
rates of each county, municipality, and school district in effect
for the two years preceding the year in which the report is prepared
[rate].
(b) Not later than December 31 of each even-numbered year,
the [The] comptroller shall:
(1) electronically publish on the comptroller’s
Internet website the [deliver a copy of each annual] report
required by [published under] Subsection (a); and
(2) notify [of this section to] the governor, the
lieutenant governor, and each member of the legislature that the
report is available on the website.
SECTION 17.05. The following are repealed:
(1) Section 403.030 and Subsection (e), Section
552.143, Government Code; and
(2) Subchapter F, Chapter 379A, Local Government Code.
ARTICLE 18. SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE
SECTION 18.01. Subsection (b), Section 101.053, Insurance
Code, is amended to read as follows:
(b) Sections 101.051 and 101.052 do not apply to:
(1) the lawful transaction of surplus lines insurance
under Chapter 981;
(2) the lawful transaction of reinsurance by insurers;
(3) a transaction in this state that:
(A) involves a policy that:
(i) is lawfully solicited, written, and
delivered outside this state; and
(ii) covers, at the time the policy is
issued, only subjects of insurance that are not resident, located,
or expressly to be performed in this state; and
(B) takes place after the policy is issued;
(4) a transaction:
(A) that involves an insurance contract
independently procured by the insured from an insurance company not
authorized to do insurance business in this state through
negotiations occurring entirely outside this state;
(B) that is reported; and
(C) on which premium tax, if applicable, is paid
in accordance with Chapter 226;
(5) a transaction in this state that:
(A) involves group life, health, or accident
insurance, other than credit insurance, and group annuities in
which the master policy for the group was lawfully issued and
delivered in a state in which the insurer or person was authorized
to do insurance business; and
(B) is authorized by a statute of this state;
(6) an activity in this state by or on the sole behalf
of a nonadmitted captive insurance company that insures solely:
(A) directors’ and officers’ liability insurance
for the directors and officers of the company’s parent and
affiliated companies;
(B) the risks of the company’s parent and
affiliated companies; or
(C) both the individuals and entities described
by Paragraphs (A) and (B);
(7) the issuance of a qualified charitable gift
annuity under Chapter 102; or
(8) a lawful transaction by a servicing company of the
Texas workers’ compensation employers’ rejected risk fund under
Section 4.08, Article 5.76-2, as that article existed before its
repeal.
SECTION 18.02. Section 225.001, Insurance Code, is amended
to read as follows:
Sec. 225.001. DEFINITIONS [DEFINITION]. In this chapter:
(1) “Affiliate” means, with respect to an insured, a
person or entity that controls, is controlled by, or is under common
control with the insured.
(2) “Affiliated group” means a group of entities whose
members are all affiliated.
(3) “Control” means, with respect to determining the
home state of an affiliated entity:
(A) to directly or indirectly, acting through one
or more persons, own, control, or hold the power to vote at least 25
percent of any class of voting security of the affiliated entity; or
(B) to control in any manner the election of the
majority of directors or trustees of the affiliated entity.
(4) “Home state” means:
(A) for an insured that is not an affiliated
group described by Paragraph (B):
(i) the state in which the insured
maintains the insured’s principal residence, if the insured is an
individual;
(ii) the state in which an insured that is
not an individual maintains its principal place of business; or
(iii) if 100 percent of the insured risk is
located outside of the state in which the insured maintains the
insured’s principal residence or maintains the insured’s principal
place of business, as applicable, the state to which the largest
percentage of the insured’s taxable premium for the insurance
contract that covers the risk is allocated; or
(B) for an affiliated group with respect to which
more than one member is a named insured on a single insurance
contract subject to this chapter, the home state of the member, as
determined under Paragraph (A), that has the largest percentage of
premium attributed to it under the insurance contract.
(5) “Premium” means any payment made in consideration
for insurance and[, “premium”] includes:
(A) [(1)] a premium;
(B) premium deposits;
(C) [(2)] a membership fee;
(D) a registration fee;
(E) [(3)] an assessment;
(F) [(4)] dues; and
(G) [(5)] any other compensation given in
consideration for surplus lines insurance.
SECTION 18.03. Section 225.002, Insurance Code, is amended
to read as follows:
Sec. 225.002. APPLICABILITY OF CHAPTER. This chapter
applies to a surplus lines agent who collects gross premiums for
surplus lines insurance for any risk in which this state is the home
state of the insured.
SECTION 18.04. Section 225.004, Insurance Code, is amended
by adding Subsections (a-1) and (f) and amending Subsections (b),
(c), and (e) to read as follows:
(a-1) Consistent with 15 U.S.C. Section 8201 et seq., this
state may not impose a premium tax on nonadmitted insurance
premiums other than premiums paid for insurance in which this state
is the home state of the insured.
(b) Taxable gross premiums under this section are based on
gross premiums written or received for surplus lines insurance
placed through an eligible surplus lines insurer during a calendar
year. Notwithstanding the tax basis described by this subsection,
the comptroller by rule may establish an alternate basis for
taxation for multistate and single-state policies for the purpose
of achieving uniformity.
(c) If a surplus lines insurance policy covers risks or
exposures only partially located in this state, and this state has
not entered into a cooperative agreement, reciprocal agreement, or
compact with another state for the collection of surplus lines tax
as authorized by Chapter 229, the tax is computed on the entire
policy [portion of the] premium for any policy in which this state
is the home state of the insured [that is properly allocated to a
risk or exposure located in this state].
(e) Premiums [The following premiums are not taxable in
this state:
[(1) premiums properly allocated to another state that
are specifically exempt from taxation in that state; and
[(2) premiums] on risks or exposures that are properly
allocated to federal or international waters or are under the
jurisdiction of a foreign government are not taxable in this state.
(f) If this state enters a cooperative agreement,
reciprocal agreement, or compact with another state for the
allocation of surplus lines tax as authorized by Chapter 229, taxes
due on multistate policies shall be allocated and reported in
accordance with the agreement or compact.
SECTION 18.05. Section 225.005, Insurance Code, is amended
to read as follows:
Sec. 225.005. TAX EXCLUSIVE. The tax imposed by this
chapter is a transaction tax collected by the surplus lines agent of
record and is in lieu of any [all] other transaction [insurance]
taxes on these premiums.
SECTION 18.06. Section 225.009, Insurance Code, is amended
by adding Subsection (d) to read as follows:
(d) Notwithstanding Subsections (a), (b), and (c), if this
state enters a cooperative agreement, reciprocal agreement, or
compact with another state for the allocation of surplus lines tax
as authorized by Chapter 229, the tax shall be allocated and
reported in accordance with the terms of the agreement or compact.
SECTION 18.07. Section 226.051, Insurance Code, is amended
to read as follows:
Sec. 226.051. DEFINITIONS [DEFINITION]. In this
subchapter:
(1) “Affiliate” means, with respect to an insured, a
person or entity that controls, is controlled by, or is under common
control with the insured.
(2) “Affiliated group” means a group of entities whose
members are all affiliated.
(3) “Control” means, with respect to determining the
home state of an affiliated entity:
(A) to directly or indirectly, acting through one
or more persons, own, control, or hold the power to vote at least 25
percent of any class of voting security of the affiliated entity; or
(B) to control in any manner the election of the
majority of directors or trustees of the affiliated entity.
(4) “Home state” means:
(A) for an insured that is not an affiliated
group described by Paragraph (B):
(i) the state in which the insured
maintains the insured’s principal residence, if the insured is an
individual;
(ii) the state in which an insured that is
not an individual maintains its principal place of business; or
(iii) if 100 percent of the insured risk is
located outside of the state in which the insured maintains the
insured’s principal residence or maintains the insured’s principal
place of business, as applicable, the state to which the largest
percentage of the insured’s taxable premium for the insurance
contract that covers the risk is allocated; or
(B) for an affiliated group with respect to which
more than one member is a named insured on a single insurance
contract subject to this chapter, the home state of the member, as
determined under Paragraph (A), that has the largest percentage of
premium attributed to it under the insurance contract.
(5) “Independently procured insurance” means
insurance procured directly by an insured from a nonadmitted
insurer.
(6) “Premium” means any payment made in consideration
for insurance and[, “premium”] includes [any consideration for
insurance, including]:
(A) [(1)] a premium;
(B) premium deposits;
(C) [(2)] a membership fee; [or]
(D) a registration fee;
(E) an assessment;
(F) [(3)] dues; and
(G) any other compensation given in
consideration for insurance.
SECTION 18.08. Section 226.052, Insurance Code, is amended
to read as follows:
Sec. 226.052. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to an insured who procures an independently procured
insurance contract for any risk in which this state is the home
state of the insured [in accordance with Section 101.053(b)(4)].
SECTION 18.09. Section 226.053, Insurance Code, is amended
by amending Subsections (a) and (b) and adding Subsection (d) to
read as follows:
(a) A tax is imposed on each insured at the rate of 4.85
percent of the premium paid for the insurance contract procured in
accordance with Section 226.052 [101.053(b)(4)].
(b) If an independently procured insurance policy
[contract] covers risks or exposures only partially located in this
state and this state has not joined a cooperative agreement,
reciprocal agreement, or compact with another state for the
allocation of nonadmitted insurance taxes as authorized by Chapter
229, the tax is computed on the entire policy [portion of the]
premium for any policy in which this state is the home state of the
insured [that is properly allocated to a risk or exposure located in
this state].
(d) If this state enters into a cooperative agreement,
reciprocal agreement, or compact with another state for the
allocation of nonadmitted insurance taxes as authorized by Chapter
229, the tax due on multistate policies shall be allocated and
reported in accordance with the agreement or compact.
SECTION 18.10. Section 981.008, Insurance Code, is amended
to read as follows:
Sec. 981.008. SURPLUS LINES INSURANCE PREMIUM TAX. The
premiums charged for surplus lines insurance are subject to the
premium tax, if applicable, imposed under Chapter 225.
SECTION 18.11. The following provisions are repealed:
(1) Subsections (d) and (d-1), Section 225.004,
Insurance Code; and
(2) Subsection (b-1), Section 226.053, Insurance
Code.
SECTION 18.12. The changes in law made by this article to
Chapters 225 and 226, Insurance Code, apply only to an insurance
policy that is delivered, issued for delivery, or renewed on or
after July 21, 2011. A policy that is delivered, issued for
delivery, or renewed before July 21, 2011, is governed by the law as
it existed immediately before the effective date of this article,
and that law is continued in effect for that purpose.
SECTION 18.13. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 19. FISCAL MATTERS CONCERNING OIL AND GAS REGULATION
SECTION 19.01. Subsection (c), Section 81.0521, Natural
Resources Code, is amended to read as follows:
(c) Two-thirds of the proceeds from this fee, excluding
[including] any penalties collected in connection with the fee,
shall be deposited to the oil and gas regulation and [oil-field]
cleanup fund as provided by Section 81.067 [91.111].
SECTION 19.02. Subchapter C, Chapter 81, Natural Resources
Code, is amended by adding Sections 81.067 through 81.070 to read as
follows:
Sec. 81.067. OIL AND GAS REGULATION AND CLEANUP FUND.
(a) The oil and gas regulation and cleanup fund is created as an
account in the general revenue fund of the state treasury.
(b) The commission shall certify to the comptroller the date
on which the balance in the fund equals or exceeds $20 million. The
oil-field cleanup regulatory fees on oil and gas shall not be
collected or required to be paid on or after the first day of the
second month following the certification, except that the
comptroller shall resume collecting the fees on receipt of a
commission certification that the fund has fallen below $10
million. The comptroller shall continue collecting the fees until
collections are again suspended in the manner provided by this
subsection.
(c) The fund consists of:
(1) proceeds from bonds and other financial security
required by this chapter and benefits under well-specific plugging
insurance policies described by Section 91.104(c) that are paid to
the state as contingent beneficiary of the policies, subject to the
refund provisions of Section 91.1091, if applicable;
(2) private contributions, including contributions
made under Section 89.084;
(3) expenses collected under Section 89.083;
(4) fees imposed under Section 85.2021;
(5) costs recovered under Section 91.457 or 91.459;
(6) proceeds collected under Sections 89.085 and
91.115;
(7) interest earned on the funds deposited in the
fund;
(8) oil and gas waste hauler permit application fees
collected under Section 29.015, Water Code;
(9) costs recovered under Section 91.113(f);
(10) hazardous oil and gas waste generation fees
collected under Section 91.605;
(11) oil-field cleanup regulatory fees on oil
collected under Section 81.116;
(12) oil-field cleanup regulatory fees on gas
collected under Section 81.117;
(13) fees for a reissued certificate collected under
Section 91.707;
(14) fees collected under Section 91.1013;
(15) fees collected under Section 89.088;
(16) fees collected under Section 91.142;
(17) fees collected under Section 91.654;
(18) costs recovered under Sections 91.656 and 91.657;
(19) two-thirds of the fees collected under Section
81.0521;
(20) fees collected under Sections 89.024 and 89.026;
(21) legislative appropriations; and
(22) any surcharges collected under Section 81.070.
Sec. 81.068. PURPOSE OF OIL AND GAS REGULATION AND CLEANUP
FUND. Money in the oil and gas regulation and cleanup fund may be
used by the commission or its employees or agents for any purpose
related to the regulation of oil and gas development, including oil
and gas monitoring and inspections, oil and gas remediation, oil
and gas well plugging, public information and services related to
those activities, and administrative costs and state benefits for
personnel involved in those activities.
Sec. 81.069. REPORTING ON PROGRESS IN MEETING PERFORMANCE
GOALS FOR THE OIL AND GAS REGULATION AND CLEANUP FUND. (a) The
commission, through the legislative appropriations request
process, shall establish specific performance goals for the oil and
gas regulation and cleanup fund for the next biennium, including
goals for each quarter of each state fiscal year of the biennium for
the number of:
(1) orphaned wells to be plugged with state-managed
funds;
(2) abandoned sites to be investigated, assessed, or
cleaned up with state funds; and
(3) surface locations to be remediated.
(b) The commission shall provide quarterly reports to the
Legislative Budget Board that include:
(1) the following information with respect to the
period since the last report was provided as well as cumulatively:
(A) the amount of money deposited in the oil and
gas regulation and cleanup fund;
(B) the amount of money spent from the fund for
the purposes described by Subsection (a);
(C) the balance of the fund; and
(D) the commission’s progress in meeting the
quarterly performance goals established under Subsection (a) and,
if the number of orphaned wells plugged with state-managed funds,
abandoned sites investigated, assessed, or cleaned up with state
funds, or surface locations remediated is at least five percent
less than the number projected in the applicable goal established
under Subsection (a), an explanation of the reason for the
variance; and
(2) any additional information or data requested in
writing by the Legislative Budget Board.
(c) The commission shall submit to the legislature and make
available to the public, annually, a report that reviews the extent
to which money provided under Section 81.067 has enabled the
commission to better protect the environment through oil-field
cleanup activities. The report must include:
(1) the performance goals established under
Subsection (a) for that state fiscal year, the commission’s
progress in meeting those performance goals, and, if the number of
orphaned wells plugged with state-managed funds, abandoned sites
investigated, assessed, or cleaned up with state funds, or surface
locations remediated is at least five percent less than the number
projected in the applicable goal established under Subsection (a),
an explanation of the reason for the variance;
(2) the number of orphaned wells plugged with
state-managed funds, by region;
(3) the number of wells orphaned, by region;
(4) the number of inactive wells not currently in
compliance with commission rules, by region;
(5) the status of enforcement proceedings for all
wells in violation of commission rules and the period during which
the wells have been in violation, by region in which the wells are
located;
(6) the number of surface locations remediated, by
region;
(7) a detailed accounting of expenditures of money in
the fund for oil-field cleanup activities, including expenditures
for plugging of orphaned wells, investigation, assessment, and
cleaning up of abandoned sites, and remediation of surface
locations;
(8) the method by which the commission sets priorities
by which it determines the order in which orphaned wells are
plugged;
(9) a projection of the amount of money needed for the
next biennium for plugging orphaned wells, investigating,
assessing, and cleaning up abandoned sites, and remediating surface
locations; and
(10) the number of sites successfully remediated under
the voluntary cleanup program under Subchapter O, Chapter 91, by
region.
Sec. 81.070. ESTABLISHMENT OF SURCHARGES ON FEES.
(a) Except as provided by Subsection (b), the commission by rule
shall provide for the imposition of reasonable surcharges as
necessary on fees imposed by the commission that are required to be
deposited to the credit of the oil and gas regulation and cleanup
fund as provided by Section 81.067 in amounts sufficient to enable
the commission to recover the costs of performing the functions
specified by Section 81.068 from those fees and surcharges.
(b) The commission may not impose a surcharge on an
oil-field cleanup regulatory fee on oil collected under Section
81.116 or an oil-field cleanup regulatory fee on gas collected
under Section 81.117.
(c) The commission by rule shall establish a methodology for
determining the amount of a surcharge that takes into account:
(1) the time required for regulatory work associated
with the activity in connection with which the surcharge is
imposed;
(2) the number of individuals or entities from which
the commission’s costs may be recovered;
(3) the effect of the surcharge on operators of all
sizes, as measured by the number of oil or gas wells operated;
(4) the balance in the oil and gas regulation and
cleanup fund; and
(5) any other factors the commission determines to be
important to the fair and equitable imposition of the surcharge.
(d) The commission shall collect a surcharge on a fee at the
time the fee is collected.
(e) A surcharge collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund as provided by Section 81.067.
(f) A surcharge collected under this section shall not
exceed an amount equal to 185 percent of the fee on which it is
imposed.
SECTION 19.03. Section 81.115, Natural Resources Code, is
amended to read as follows:
Sec. 81.115. APPROPRIATIONS [PAYMENTS] TO COMMISSION FOR
OIL AND GAS REGULATION AND CLEANUP PURPOSES [DIVISION]. Money
appropriated to the [oil and gas division of the] commission under
the General Appropriations Act for the purposes described by
Section 81.068 shall be paid from the oil and gas regulation and
cleanup fund or other fund indicated by the appropriation [General
Revenue Fund].
SECTION 19.04. Subsections (d) and (e), Section 81.116,
Natural Resources Code, are amended to read as follows:
(d) The comptroller shall suspend collection of the fee in
the manner provided by Section 81.067 [91.111]. The exemptions and
reductions set out in Sections 202.052, 202.054, 202.056, 202.057,
202.059, and 202.060, Tax Code, do not affect the fee imposed by
this section.
(e) Proceeds from the fee, excluding [including] any
penalties collected in connection with the fee, shall be deposited
to the oil and gas regulation and [oil-field] cleanup fund as
provided by Section 81.067 [91.111 of this code].
SECTION 19.05. Subsections (d) and (e), Section 81.117,
Natural Resources Code, are amended to read as follows:
(d) The comptroller shall suspend collection of the fee in
the manner provided by Section 81.067 [91.111]. The exemptions and
reductions set out in Sections 201.053, 201.057, 201.058, and
202.060, Tax Code, do not affect the fee imposed by this section.
(e) Proceeds from the fee, excluding [including] any
penalties collected in connection with the fee, shall be deposited
to the oil and gas regulation and [oil-field] cleanup fund as
provided by Section 81.067 [91.111 of this code].
SECTION 19.06. Subsection (d), Section 85.2021, Natural
Resources Code, is amended to read as follows:
(d) All fees collected under this section shall be deposited
in the oil and gas regulation and [state oil-field] cleanup fund.
SECTION 19.07. Subsection (d), Section 89.024, Natural
Resources Code, is amended to read as follows:
(d) An operator who files an abeyance of plugging report
must pay an annual fee of $100 for each well covered by the report.
A fee collected under this section shall be deposited in the oil and
gas regulation and [oil-field] cleanup fund.
SECTION 19.08. Subsection (d), Section 89.026, Natural
Resources Code, is amended to read as follows:
(d) An operator who files documentation described by
Subsection (a) must pay an annual fee of $50 for each well covered
by the documentation. A fee collected under this section shall be
deposited in the oil and gas regulation and [oil-field] cleanup
fund.
SECTION 19.09. Subsection (d), Section 89.048, Natural
Resources Code, is amended to read as follows:
(d) On successful plugging of the well by the well plugger,
the surface estate owner may submit documentation to the commission
of the cost of the well-plugging operation. The commission shall
reimburse the surface estate owner from money in the oil and gas
regulation and [oil-field] cleanup fund in an amount not to exceed
50 percent of the lesser of:
(1) the documented well-plugging costs; or
(2) the average cost incurred by the commission in the
preceding 24 months in plugging similar wells located in the same
general area.
SECTION 19.10. Subsection (j), Section 89.083, Natural
Resources Code, is amended to read as follows:
(j) Money collected in a suit under this section shall be
deposited in the oil and gas regulation and [state oil-field]
cleanup fund.
SECTION 19.11. Subsection (d), Section 89.085, Natural
Resources Code, is amended to read as follows:
(d) The commission shall deposit money received from the
sale of well-site equipment or hydrocarbons under this section to
the credit of the oil and gas regulation and [oil-field] cleanup
fund. The commission shall separately account for money and credit
received for each well.
SECTION 19.12. The heading to Section 89.086, Natural
Resources Code, is amended to read as follows:
Sec. 89.086. CLAIMS AGAINST OIL AND GAS REGULATION AND [THE
OIL-FIELD] CLEANUP FUND.
SECTION 19.13. Subsections (a) and (h) through (k), Section
89.086, Natural Resources Code, are amended to read as follows:
(a) A person with a legal or equitable ownership or security
interest in well-site equipment or hydrocarbons disposed of under
Section 89.085 [of this code] may make a claim against the oil and
gas regulation and [oil-field] cleanup fund unless an element of
the transaction giving rise to the interest occurs after the
commission forecloses its statutory lien under Section 89.083.
(h) The commission shall suspend an amount of money in the
oil and gas regulation and [oil-field] cleanup fund equal to the
amount of the claim until the claim is finally resolved. If the
provisions of Subsection (k) [of this section] prevent suspension
of the full amount of the claim, the commission shall treat the
claim as two consecutively filed claims, one in the amount of funds
available for suspension and the other in the remaining amount of
the claim.
(i) A claim made by or on behalf of the operator or a
nonoperator of a well or a successor to the rights of the operator
or nonoperator is subject to a ratable deduction from the proceeds
or credit received for the well-site equipment to cover the costs
incurred by the commission in removing the equipment or
hydrocarbons from the well or in transporting, storing, or
disposing of the equipment or hydrocarbons. A claim made by a
person who is not an operator or nonoperator is subject to a ratable
deduction for the costs incurred by the commission in removing the
equipment from the well. If a claimant is a person who is
responsible under law or commission rules for plugging the well or
cleaning up pollution originating on the lease or if the claimant
owes a penalty assessed by the commission or a court for a violation
of a commission rule or order, the commission may recoup from or
offset against a valid claim an expense incurred by the oil and gas
regulation and [oil-field] cleanup fund that is not otherwise
reimbursed or any penalties owed. An amount recouped from,
deducted from, or offset against a claim under this subsection
shall be treated as an invalid portion of the claim and shall remain
suspended in the oil and gas regulation and [oil-field] cleanup
fund in the manner provided by Subsection (j) [of this section].
(j) If the commission finds that a claim is valid in whole or
in part, the commission shall pay the valid portion of the claim
from the suspended amount in the oil and gas regulation and
[oil-field] cleanup fund not later than the 30th day after the date
of the commission’s decision. If the commission finds that a claim
is invalid in whole or in part, the commission shall continue to
suspend in the oil and gas regulation and [oil-field] cleanup fund
an amount equal to the invalid portion of the claim until the period
during which the commission’s decision may be appealed has expired
or, if appealed, during the period the case is under judicial
review. If on appeal the district court finds the claim valid in
whole or in part, the commission shall pay the valid portion of the
claim from the suspended amount in the oil and gas regulation and
[oil-field] cleanup fund not later than 30 days after the date the
court’s judgment becomes unappealable. On the date the
commission’s decision is not subject to judicial review, the
commission shall release from the suspended amount in the oil and
gas regulation and [oil-field] cleanup fund the amount of the claim
held to be invalid.
(k) If the aggregate of claims paid and money suspended that
relates to well-site equipment or hydrocarbons from a particular
well equals the total of the actual proceeds and credit realized
from the disposition of that equipment or those hydrocarbons, the
oil and gas regulation and [oil-field] cleanup fund is not liable
for any subsequently filed claims that relate to the same equipment
or hydrocarbons unless and until the commission releases from the
suspended amount money derived from the disposition of that
equipment or those hydrocarbons. If the commission releases money,
then the commission shall suspend money in the amount of
subsequently filed claims in the order of filing.
SECTION 19.14. Subsection (b), Section 89.121, Natural
Resources Code, is amended to read as follows:
(b) Civil penalties collected for violations of this
chapter or of rules relating to plugging that are adopted under this
code shall be deposited in the general revenue [state oil-field
cleanup] fund.
SECTION 19.15. Subsection (c), Section 91.1013, Natural
Resources Code, is amended to read as follows:
(c) Fees collected under this section shall be deposited in
the oil and gas regulation and [state oil-field] cleanup fund.
SECTION 19.16. Section 91.108, Natural Resources Code, is
amended to read as follows:
Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the
refund provisions of Section 91.1091, if applicable, proceeds from
bonds and other financial security required pursuant to this
chapter and benefits under well-specific plugging insurance
policies described by Section 91.104(c) that are paid to the state
as contingent beneficiary of the policies shall be deposited in the
oil and gas regulation and [oil-field] cleanup fund and,
notwithstanding Sections 81.068 [91.112] and 91.113, may be used
only for actual well plugging and surface remediation.
SECTION 19.17. Subsection (a), Section 91.109, Natural
Resources Code, is amended to read as follows:
(a) A person applying for or acting under a commission
permit to store, handle, treat, reclaim, or dispose of oil and gas
waste may be required by the commission to maintain a performance
bond or other form of financial security conditioned that the
permittee will operate and close the storage, handling, treatment,
reclamation, or disposal site in accordance with state law,
commission rules, and the permit to operate the site. However, this
section does not authorize the commission to require a bond or other
form of financial security for saltwater disposal pits, emergency
saltwater storage pits (including blow-down pits), collecting
pits, or skimming pits provided that such pits are used in
conjunction with the operation of an individual oil or gas lease.
Subject to the refund provisions of Section 91.1091 [of this code],
proceeds from any bond or other form of financial security required
by this section shall be placed in the oil and gas regulation and
[oil-field] cleanup fund. Each bond or other form of financial
security shall be renewed and continued in effect until the
conditions have been met or release is authorized by the
commission.
SECTION 19.18. Subsections (a) and (f), Section 91.113,
Natural Resources Code, are amended to read as follows:
(a) If oil and gas wastes or other substances or materials
regulated by the commission under Section 91.101 are causing or are
likely to cause the pollution of surface or subsurface water, the
commission, through its employees or agents, may use money in the
oil and gas regulation and [oil-field] cleanup fund to conduct a
site investigation or environmental assessment or control or clean
up the oil and gas wastes or other substances or materials if:
(1) the responsible person has failed or refused to
control or clean up the oil and gas wastes or other substances or
materials after notice and opportunity for hearing;
(2) the responsible person is unknown, cannot be
found, or has no assets with which to control or clean up the oil and
gas wastes or other substances or materials; or
(3) the oil and gas wastes or other substances or
materials are causing the pollution of surface or subsurface water.
(f) If the commission conducts a site investigation or
environmental assessment or controls or cleans up oil and gas
wastes or other substances or materials under this section, the
commission may recover all costs incurred by the commission from
any person who was required by law, rules adopted by the commission,
or a valid order of the commission to control or clean up the oil and
gas wastes or other substances or materials. The commission by
order may require the person to reimburse the commission for those
costs or may request the attorney general to file suit against the
person to recover those costs. At the request of the commission,
the attorney general may file suit to enforce an order issued by the
commission under this subsection. A suit under this subsection may
be filed in any court of competent jurisdiction in Travis County.
Costs recovered under this subsection shall be deposited to the oil
and gas regulation and [oil-field] cleanup fund.
SECTION 19.19. Subsection (c), Section 91.264, Natural
Resources Code, is amended to read as follows:
(c) A penalty collected under this section shall be
deposited to the credit of the general revenue [oil-field cleanup]
fund [account].
SECTION 19.20. Subsection (b), Section 91.457, Natural
Resources Code, is amended to read as follows:
(b) If a person ordered to close a saltwater disposal pit
under Subsection (a) [of this section] fails or refuses to close the
pit in compliance with the commission’s order and rules, the
commission may close the pit using money from the oil and gas
regulation and [oil-field] cleanup fund and may direct the attorney
general to file suits in any courts of competent jurisdiction in
Travis County to recover applicable penalties and the costs
incurred by the commission in closing the saltwater disposal pit.
SECTION 19.21. Subsection (c), Section 91.459, Natural
Resources Code, is amended to read as follows:
(c) Any [penalties or] costs recovered by the attorney
general under this subchapter shall be deposited in the oil and gas
regulation and [oil-field] cleanup fund.
SECTION 19.22. Subsection (e), Section 91.605, Natural
Resources Code, is amended to read as follows:
(e) The fees collected under this section shall be deposited
in the oil and gas regulation and [oil-field] cleanup fund.
SECTION 19.23. Subsection (e), Section 91.654, Natural
Resources Code, is amended to read as follows:
(e) Fees collected under this section shall be deposited to
the credit of the oil and gas regulation and [oil-field] cleanup
fund under Section 81.067 [91.111].
SECTION 19.24. Subsection (b), Section 91.707, Natural
Resources Code, is amended to read as follows:
(b) Fees collected under this section shall be deposited to
the oil and gas regulation and [oil-field] cleanup fund.
SECTION 19.25. The heading to Section 121.211, Utilities
Code, is amended to read as follows:
Sec. 121.211. PIPELINE SAFETY AND REGULATORY FEES.
SECTION 19.26. Subsections (a) through (e) and (h), Section
121.211, Utilities Code, are amended to read as follows:
(a) The railroad commission by rule may adopt a [an
inspection] fee to be assessed annually against operators of
natural gas distribution pipelines and their pipeline facilities
and natural gas master metered pipelines and their pipeline
facilities subject to this title [chapter].
(b) The railroad commission by rule shall establish the
method by which the fee will be calculated and assessed. In
adopting a fee structure, the railroad commission may consider any
factors necessary to provide for the equitable allocation among
operators of the costs of administering the railroad commission’s
pipeline safety and regulatory program under this title [chapter].
(c) The total amount of fees estimated to be collected under
rules adopted by the railroad commission under this section may not
exceed the amount estimated by the railroad commission to be
necessary to recover the costs of administering the railroad
commission’s pipeline safety and regulatory program under this
title [chapter], excluding costs that are fully funded by federal
sources.
(d) The commission may assess each operator of a natural gas
distribution system subject to this title [chapter] an annual
[inspection] fee not to exceed one dollar for each service line
reported by the system on the Distribution Annual Report, Form RSPA
F7100.1-1, due on March 15 of each year. The fee is due March 15 of
each year.
(e) The railroad commission may assess each operator of a
natural gas master metered system subject to this title [chapter]
an annual [inspection] fee not to exceed $100 for each master
metered system. The fee is due June 30 of each year.
(h) A fee collected under this section shall be deposited to
the credit of the general revenue fund to be used for the pipeline
safety and regulatory program.
SECTION 19.27. Section 29.015, Water Code, is amended to
read as follows:
Sec. 29.015. APPLICATION FEE. With each application for
issuance, renewal, or material amendment of a permit, the applicant
shall submit to the railroad commission a nonrefundable fee of
$100. Fees collected under this section shall be deposited in the
oil and gas regulation and [oil-field] cleanup fund.
SECTION 19.28. The following provisions of the Natural
Resources Code are repealed:
(1) Section 91.111; and
(2) Section 91.112.
SECTION 19.29. On the effective date of this article:
(1) the oil-field cleanup fund is abolished;
(2) any money remaining in the oil-field cleanup fund
is transferred to the oil and gas regulation and cleanup fund;
(3) any claim against the oil-field cleanup fund is
transferred to the oil and gas regulation and cleanup fund; and
(4) any amount required to be deposited to the credit
of the oil-field cleanup fund shall be deposited to the credit of
the oil and gas regulation and cleanup fund.
ARTICLE 20. FISCAL MATTERS RELATING TO SECRETARY OF STATE
SECTION 20.01. Section 405.014, Government Code, is amended
to read as follows:
Sec. 405.014. ACTS OF THE LEGISLATURE. (a) At each
session of the legislature the secretary of state shall obtain the
bills that have become law. Immediately after the closing of each
session of the legislature, the secretary of state shall bind all
enrolled bills and resolutions in volumes on which the date of the
session is placed.
(b) As soon as practicable after the closing of each session
of the legislature, the secretary of state shall publish and
maintain electronically the bills enacted at that session. The
electronic publication must be:
(1) indexed by bill number and assigned chapter number
for each bill; and
(2) made available by an electronic link on the
secretary of state’s generally accessible Internet website.
SECTION 20.02. Subchapter B, Chapter 2158, Government Code,
is repealed.
SECTION 20.03. The change in law made by this article does
not apply to a contract for the publication of the laws of this
state entered into before the effective date of this article.
SECTION 20.04. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 21. FISCAL MATTERS REGARDING ATTORNEY GENERAL
SECTION 21.01. Section 402.006, Government Code, is amended
by adding Subsection (e) to read as follows:
(e) The attorney general may charge a reasonable fee for the
electronic filing of a document.
SECTION 21.02. The fee prescribed by Section 402.006,
Government Code, as amended by this article, applies only to a
document electronically submitted to the office of the attorney
general on or after the effective date of this article.
SECTION 21.03. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 22. TEXAS PRESERVATION TRUST FUND ACCOUNT
SECTION 22.01. Subsections (a), (b), and (f), Section
442.015, Government Code, are amended to read as follows:
(a) Notwithstanding Section [Sections 403.094 and] 403.095,
the Texas preservation trust fund account is a separate account in
the general revenue fund. The account consists of transfers made to
the account, loan repayments, grants and donations made for the
purposes of this program, proceeds of sales, income earned
[earnings] on money in the account, and any other money received
under this section. Money in [Distributions from] the account may
be used only for the purposes of this section and [may not be used]
to pay operating expenses of the commission. Money allocated to the
commission’s historic preservation grant program shall be
deposited to the credit of the account. Income earned [Earnings] on
money in the account shall be deposited to the credit of the
account.
(b) The commission may use money in [distributions from] the
Texas preservation trust fund account to provide financial
assistance to public or private entities for the acquisition,
survey, restoration, or preservation, or for planning and
educational activities leading to the preservation, of historic
property in the state that is listed in the National Register of
Historic Places or designated as a State Archeological Landmark or
Recorded Texas Historic Landmark, or that the commission determines
is eligible for such listing or designation. The financial
assistance may be in the amount and form and according to the terms
that the commission by rule determines. The commission shall give
priority to property the commission determines to be endangered by
demolition, neglect, underuse, looting, vandalism, or other threat
to the property. Gifts and grants deposited to the credit of the
account specifically for any eligible projects may be used only for
the type of projects specified. If such a specification is not
made, the gift or grant shall be unencumbered and accrue to the
benefit of the Texas preservation trust fund account. If such a
specification is made, the entire amount of the gift or grant may be
used during any period for the project or type of project specified.
(f) The advisory board shall recommend to the commission
rules for administering this section [Subsections (a)-(e)].
SECTION 22.02. Subsections (h), (i), (j), (k), and (l),
Section 442.015, Government Code, are repealed.
SECTION 22.03. The comptroller of public accounts and the
Texas Historical Commission shall enter into a memorandum of
understanding to facilitate the conversion of assets of the Texas
preservation trust fund account into cash for deposit into the
state treasury using a method that provides for the lowest amount of
revenue loss to the state.
SECTION 22.04. This article takes effect November 1, 2011.
ARTICLE 23. FISCAL MATTERS CONCERNING INFORMATION TECHNOLOGY
SECTION 23.01. Section 572.054, Government Code, is amended
by adding Subsection (g-1) to read as follows:
(g-1) For purposes of this section, the Department of
Information Resources is a regulatory agency.
SECTION 23.02. Section 2054.005, Government Code, is
amended to read as follows:
Sec. 2054.005. SUNSET PROVISION. (a) The Department of
Information Resources is subject to Chapter 325 (Texas Sunset
Act). Unless continued in existence as provided by that chapter,
the department is abolished and this chapter expires September 1,
2013 [2011].
(b) The review of the Department of Information Resources by
the Sunset Advisory Commission in preparation for the work of the
83rd Legislature, Regular Session, is not limited to the
appropriateness of recommendations made by the commission to the
82nd Legislature. In the commission’s report to the 83rd
Legislature, the commission may include any recommendations it
considers appropriate.
SECTION 23.03. Subchapter C, Chapter 2054, Government Code,
is amended by adding Section 2054.064 to read as follows:
Sec. 2054.064. BOARD APPROVAL OF CONTRACTS. The board by
rule shall establish approval requirements for all contracts,
including a monetary threshold above which board approval is
required before the contract may be executed.
SECTION 23.04. Subsection (b), Section 2054.376,
Government Code, is amended to read as follows:
(b) This subchapter does not apply to:
(1) the Department of Public Safety’s use for criminal
justice or homeland security purposes of a federal database or
network;
(2) a Texas equivalent of a database or network
described by Subdivision (1) that is managed by the Department of
Public Safety;
(3) the uniform statewide accounting system, as that
term is used in Subchapter C, Chapter 2101;
(4) the state treasury cash and treasury management
system; [or]
(5) a database or network managed by the comptroller
to:
(A) collect and process multiple types of taxes
imposed by the state; or
(B) manage or administer fiscal, financial,
revenue, and expenditure activities of the state under Chapter 403
and Chapter 404; or
(6) a database or network managed by the Department of
Agriculture.
SECTION 23.05. Section 2054.380, Government Code, is
amended to read as follows:
Sec. 2054.380. FEES. (a) The department shall set and
charge a fee to each state agency that receives a service from a
statewide technology center in an amount sufficient to cover the
direct and indirect cost of providing the service.
(b) Revenue derived from the collection of fees imposed
under Subsection (a) may be appropriated to the department for:
(1) developing statewide information resources
technology policies and planning under this chapter and Chapter
2059; and
(2) providing shared information resources technology
services under this chapter.
SECTION 23.06. Subsections (b) and (d), Section 2157.068,
Government Code, are amended to read as follows:
(b) The department shall negotiate with vendors [to
attempt] to obtain the best value for the state in the purchase of
commodity items. The department may consider strategic sourcing
and other methodologies to select the vendor offering the best
value on [a favorable price for all of state government on licenses
for] commodity items[, based on the aggregate volume of purchases
expected to be made by the state]. The terms and conditions of a
license agreement between a vendor and the department under this
section may not be less favorable to the state than the terms of
similar license agreements between the vendor and retail
distributors.
(d) The department may charge a reasonable administrative
fee to a state agency, political subdivision of this state, or
governmental entity of another state that purchases commodity items
through the department in an amount that is sufficient to recover
costs associated with the administration of this section. Revenue
derived from the collection of fees imposed under this subsection
may be appropriated to the department for:
(1) developing statewide information resources
technology policies and planning under Chapters 2054 and 2059; and
(2) providing shared information resources technology
services under Chapter 2054.
SECTION 23.07. Subsections (a) and (d), Section 2170.057,
Government Code, are amended to read as follows:
(a) The department shall develop a system of billings and
charges for services provided in operating and administering the
consolidated telecommunications system that allocates the total
state cost to each entity served by the system based on
proportionate usage. The department shall set and charge a fee to
each entity that receives services provided under this chapter in
an amount sufficient to cover the direct and indirect costs of
providing the service. Revenue derived from the collection of fees
imposed under this subsection may be appropriated to the department
for:
(1) developing statewide information resources
technology policies and planning under Chapters 2054 and 2059; and
(2) providing:
(A) shared information resources technology
services under Chapter 2054; and
(B) network security services under Chapter
2059.
(d) The department shall maintain in the revolving fund
account sufficient amounts to pay the bills of the consolidated
telecommunications system and the centralized capitol complex
telephone system. [The department shall certify amounts that
exceed this amount to the comptroller, and the comptroller shall
transfer the excess amounts to the credit of the statewide network
applications account established by Section 2054.011.]
ARTICLE 24. CONTINUING LEGAL EDUCATION REQUIREMENTS FOR ATTORNEY
EMPLOYED BY ATTORNEY GENERAL
SECTION 24.01. Section 81.113, Government Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) The state bar shall credit an attorney licensed in
this state with meeting the minimum continuing legal education
requirements of the state bar for a reporting year if during the
reporting year the attorney is employed full-time as an attorney by
the office of the attorney general. An attorney credited for
continuing legal education under this subsection must meet the
continuing legal education requirements of the state bar in legal
ethics or professional responsibility. This subsection expires
January 1, 2014.
SECTION 24.02. Subchapter A, Chapter 402, Government Code,
is amended by adding Section 402.011 to read as follows:
Sec. 402.011. CONTINUING LEGAL EDUCATION PROGRAMS. The
office of the attorney general shall recognize, prepare, or
administer continuing legal education programs that meet
continuing legal education requirements imposed under Section
81.113(c) for the attorneys employed by the office. This section
expires January 1, 2014.
SECTION 24.03. Section 81.113, Government Code, as amended
by this article, applies only to the requirements for a continuing
legal education compliance year that ends on or after October 1,
2011. The requirements for continuing legal education for a
compliance year that ends before October 1, 2011, are covered by the
law and rules in effect when the compliance year ended, and that law
and those rules are continued in effect for that purpose.
ARTICLE 25. REGISTRATION FEE AND REGISTRATION RENEWAL FEE FOR
LOBBYISTS
SECTION 25.01. Subsection (c), Section 305.005, Government
Code, is amended to read as follows:
(c) The registration fee and registration renewal fee are:
(1) $150 [$100] for a registrant employed by an
organization exempt from federal income tax under Section
501(c)(3), [or] 501(c)(4), or 501(c)(6), Internal Revenue Code of
1986;
(2) $75 [$50] for any person required to register
solely because the person is required to register under Section
305.0041 [of this chapter]; or
(3) $750 [$500] for any other registrant.
ARTICLE 26. PUBLIC ASSISTANCE REPORTING INFORMATION SYSTEM
SECTION 26.01. Subsection (c), Section 434.017, Government
Code, is amended to read as follows:
(c) Money in the fund may only be appropriated to the Texas
Veterans Commission. Money appropriated under this subsection
shall be used to:
(1) make grants to address veterans’ needs; [and]
(2) administer the fund; and
(3) analyze and investigate data received from the
federal Public Assistance Reporting Information System (PARIS)
that is administered by the Administration for Children and
Families of the United States Department of Health and Human
Services.
ARTICLE 27. REGIONAL POISON CONTROL CENTER MANAGEMENT CONTROLS
AND EFFICIENCY
SECTION 27.01. Section 777.001, Health and Safety Code, is
amended by amending Subsection (c) and adding Subsection (d) to
read as follows:
(c) The Commission on State Emergency Communications may
standardize the operations of and implement management controls to
improve the efficiency of regional poison control centers [vote to
designate a seventh regional or satellite poison control center in
Harris County. That poison control center is subject to all
provisions of this chapter and other law relating to regional
poison control centers].
(d) If the Commission on State Emergency Communications
implements management controls under Subsection (c), the
commission shall submit to the governor and the Legislative Budget
Board a plan for implementing the controls not later than October
31, 2011. This subsection expires January 1, 2013.
ARTICLE 28. AUTHORIZED USES FOR CERTAIN DEDICATED PERMANENT FUNDS
SECTION 28.01. Section 403.105, Government Code, is amended
by amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Except as provided by Subsections (b-1), (c), (e), (f),
and (h), money in the fund may not be appropriated for any purpose.
(b-1) Notwithstanding the limitations and requirements of
Section 403.1068, the legislature may appropriate money in the
fund, including the corpus and available earnings of the fund
determined under Section 403.1068, to pay the principal of or
interest on a bond issued for the purposes of Section 67, Article
III, Texas Constitution. This subsection does not authorize the
appropriation under this subsection of money subject to a
limitation or requirement as described by Subsection (e) that is
not consistent with the use of the money in accordance with this
subsection.
SECTION 28.02. Section 403.1055, Government Code, is
amended by amending Subsection (b) and adding Subsection (b-1) to
read as follows:
(b) Except as provided by Subsections (b-1), (c), (e), (f),
and (h), money in the fund may not be appropriated for any purpose.
(b-1) Notwithstanding the limitations and requirements of
Section 403.1068, the legislature may appropriate money in the
fund, including the corpus and available earnings of the fund
determined under Section 403.1068, to pay the principal of or
interest on a bond issued for the purposes of Section 67, Article
III, Texas Constitution. This subsection does not authorize the
appropriation under this subsection of money subject to a
limitation or requirement as described by Subsection (e) that is
not consistent with the use of the money in accordance with this
subsection.
SECTION 28.03. Section 403.106, Government Code, is amended
by amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Except as provided by Subsections (b-1), (c), (e), (f),
and (h), money in the fund may not be appropriated for any purpose.
(b-1) Notwithstanding the limitations and requirements of
Section 403.1068, the legislature may appropriate money in the
fund, including the corpus and available earnings of the fund
determined under Section 403.1068, to pay the principal of or
interest on a bond issued for the purposes of Section 67, Article
III, Texas Constitution. This subsection does not authorize the
appropriation under this subsection of money subject to a
limitation or requirement as described by Subsection (e) that is
not consistent with the use of the money in accordance with this
subsection.
SECTION 28.04. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 29. FISCAL MATTERS CONCERNING SURPLUS AND SALVAGE
PROPERTY
SECTION 29.01. Subchapter C, Chapter 2175, Government Code,
is repealed.
SECTION 29.02. Subsection (a), Section 32.102, Education
Code, is amended to read as follows:
(a) As provided by this subchapter, a school district or
open-enrollment charter school may transfer to a student enrolled
in the district or school:
(1) any data processing equipment donated to the
district or school, including equipment donated by:
(A) a private donor; or
(B) a state eleemosynary institution or a state
agency under Section 2175.905 [2175.128], Government Code;
(2) any equipment purchased by the district or school,
to the extent consistent with Section 32.105; and
(3) any surplus or salvage equipment owned by the
district or school.
SECTION 29.03. Section 2175.002, Government Code, is
amended to read as follows:
Sec. 2175.002. ADMINISTRATION OF CHAPTER. The commission
is responsible for the disposal of surplus and salvage property of
the state. The commission’s surplus and salvage property division
shall administer this chapter.
SECTION 29.04. Section 2175.065, Government Code, is
amended by amending Subsection (a) and adding Subsections (c) and
(d) to read as follows:
(a) The commission may authorize a state agency to dispose
of surplus or salvage property if the agency demonstrates to the
commission its ability to dispose of the property under this
chapter [Subchapters C and E] in a manner that results in cost
savings to the state, under commission rules adopted under this
chapter.
(c) If property is disposed of under this section, the
disposing state agency shall report the transaction to the
commission. The report must include a description of the property
disposed of, the reasons for disposal, the price paid for the
property disposed of, and the recipient of the property disposed
of.
(d) If the commission determines that a violation of a state
law or rule has occurred based on the report under Subsection (c),
the commission shall report the violation to the Legislative Budget
Board.
SECTION 29.05. The heading to Subchapter D, Chapter 2175,
Government Code, is amended to read as follows:
SUBCHAPTER D. DISPOSITION OF SURPLUS OR SALVAGE PROPERTY [BY
COMMISSION]
SECTION 29.06. Section 2175.181, Government Code, is
amended to read as follows:
Sec. 2175.181. APPLICABILITY. [(a) This subchapter
applies only to surplus and salvage property located in:
[(1) Travis County;
[(2) a county in which federal surplus property is
warehoused by the commission under Subchapter G; or
[(3) a county for which the commission determines that
it is cost-effective to follow the procedures created under this
subchapter and informs affected state agencies of that
determination.
[(b)] This subchapter applies [does not apply] to a state
agency delegated the authority to dispose of surplus or salvage
property under Section 2175.065.
SECTION 29.07. Section 2175.182, Government Code, is
amended to read as follows:
Sec. 2175.182. STATE AGENCY TRANSFER OF PROPERTY [TO
COMMISSION]. (a) A state agency that determines it has surplus or
salvage property shall inform the commission of that fact for the
purpose of determining the method of disposal of the property [The
commission is responsible for the disposal of surplus or salvage
property under this subchapter]. The commission may take physical
possession of the property.
(b) Based on the condition of the property, the commission,
in conjunction with the state agency, shall determine whether the
property is:
(1) surplus property that should be offered for
transfer under Section 2175.184 or sold to the public; or
(2) salvage property.
(c) Following the determination in Subsection (b), the
[The] commission shall direct the state agency to inform the
comptroller’s office of the property’s kind, number, location,
condition, original cost or value, and date of acquisition.
SECTION 29.08. Section 2175.1825, Government Code, is
amended to read as follows:
Sec. 2175.1825. ADVERTISING ON COMPTROLLER WEBSITE.
(a) Not later than the second day after the date the comptroller
receives notice from a state agency [the commission] under Section
2175.182(c), the comptroller shall advertise the property’s kind,
number, location, and condition on the comptroller’s website.
(b) The comptroller shall provide the commission access to
all records in the state property accounting system related to
surplus and salvage property.
SECTION 29.09. Section 2175.183, Government Code, is
amended to read as follows:
Sec. 2175.183. COMMISSION NOTICE TO OTHER ENTITIES. The
[On taking responsibility for surplus property under this
subchapter, the] commission shall inform other state agencies,
political subdivisions, and assistance organizations of the
comptroller’s website that lists surplus property that is available
for sale.
SECTION 29.10. Section 2175.184, Government Code, is
amended to read as follows:
Sec. 2175.184. DIRECT TRANSFER. During the 10 business
days after the date the property is posted on the comptroller’s
website, a state agency, political subdivision, or assistance
organization shall [may] coordinate with the commission for a
transfer of the property at a price established by the commission
[in cooperation with the transferring agency]. A transfer to a
state agency has priority over any other transfer during this
period.
SECTION 29.11. Subsection (a), Section 2175.186,
Government Code, is amended to read as follows:
(a) If a disposition of a state agency’s surplus property is
not made under Section 2175.184, the commission shall sell the
property by competitive bid, auction, or direct sale to the public,
including a sale using an Internet auction site. The commission may
contract with a private vendor to assist with the sale of the
property.
SECTION 29.12. Section 2175.189, Government Code, is
amended to read as follows:
Sec. 2175.189. ADVERTISEMENT OF SALE. If the value of an
item or a lot of property to be sold is estimated to be more than
$25,000 [$5,000], the commission shall advertise the sale at least
once in at least one newspaper of general circulation in the
vicinity in which the property is located.
SECTION 29.13. Subsection (a), Section 2175.191,
Government Code, is amended to read as follows:
(a) Proceeds from the sale of surplus or salvage property,
less the cost of advertising the sale, the cost of selling the
surplus or salvage property, including the cost of auctioneer
services or assistance from a private vendor, and the amount of the
fee collected under Section 2175.188, shall be deposited to the
credit of the general revenue fund of the state treasury.
SECTION 29.14. Section 2175.302, Government Code, is
amended to read as follows:
Sec. 2175.302. EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS.
Except as provided by Section 2175.905(b) [2175.128(b)], this
chapter does not apply to the disposition of surplus or salvage
property by a state eleemosynary institution.
SECTION 29.15. Section 2175.904, Government Code, is
amended by amending Subsections (a) and (c) and adding Subsection
(d) to read as follows:
(a) The commission shall establish a program for the sale of
gambling equipment received from a municipality, from a
commissioners court under Section 263.152(a)(5), Local Government
Code, or from a state agency under this chapter.
(c) Proceeds from the sale of gambling equipment from a
municipality or commissioners court, less the costs of the sale,
including costs of advertising, storage, shipping, and auctioneer
or broker services, and the amount of the fee collected under
Section 2175.188 [2175.131], shall be divided according to an
agreement between the commission and the municipality or
commissioners court that provided the equipment for sale. The
agreement must provide that:
(1) not less than 50 percent of the net proceeds be
remitted to the commissioners court; and
(2) the remainder of the net proceeds retained by the
commission be deposited to the credit of the general revenue fund.
(d) Proceeds from the sale of gambling equipment from a
state agency, less the costs of the sale, including costs of
advertising, storage, shipping, and auctioneer or broker services,
and the amount of the fee collected under Section 2175.188, shall be
deposited to the credit of the general revenue fund of the state
treasury.
SECTION 29.16. Subchapter Z, Chapter 2175, Government Code,
is amended by adding Sections 2175.905 and 2175.906 to read as
follows:
Sec. 2175.905. DISPOSITION OF DATA PROCESSING EQUIPMENT.
(a) If a disposition of a state agency’s surplus or salvage data
processing equipment is not made under Section 2175.184, the state
agency shall transfer the equipment to:
(1) a school district or open-enrollment charter
school in this state under Subchapter C, Chapter 32, Education
Code;
(2) an assistance organization specified by the school
district; or
(3) the Texas Department of Criminal Justice.
(b) If a disposition of the surplus or salvage data
processing equipment of a state eleemosynary institution or an
institution or agency of higher education is not made under other
law, the institution or agency shall transfer the equipment to:
(1) a school district or open-enrollment charter
school in this state under Subchapter C, Chapter 32, Education
Code;
(2) an assistance organization specified by the school
district; or
(3) the Texas Department of Criminal Justice.
(c) The state eleemosynary institution or institution or
agency of higher education or other state agency may not collect a
fee or other reimbursement from the district, the school, the
assistance organization, or the Texas Department of Criminal
Justice for the surplus or salvage data processing equipment
transferred under this section.
Sec. 2175.906. ABOLISHED AGENCIES. On abolition of a state
agency, in accordance with Chapter 325, the commission shall take
custody of all of the agency’s property or other assets as surplus
property unless other law or the legislature designates another
appropriate governmental entity to take custody of the property or
assets.
ARTICLE 30. SALES AND USE TAX COLLECTION AND ALLOCATION
SECTION 30.01. Subsection (b), Section 151.008, Tax Code,
is amended to read as follows:
(b) “Seller” and “retailer” include:
(1) a person in the business of making sales at auction
of tangible personal property owned by the person or by another;
(2) a person who makes more than two sales of taxable
items during a 12-month period, including sales made in the
capacity of an assignee for the benefit of creditors or receiver or
trustee in bankruptcy;
(3) a person regarded by the comptroller as a seller or
retailer under Section 151.024 [of this code];
(4) a hotel, motel, or owner or lessor of an office or
residential building or development that contracts and pays for
telecommunications services for resale to guests or tenants; [and]
(5) a person who engages in regular or systematic
solicitation of sales of taxable items in this state by the
distribution of catalogs, periodicals, advertising flyers, or
other advertising, by means of print, radio, or television media,
or by mail, telegraphy, telephone, computer data base, cable,
optic, microwave, or other communication system for the purpose of
effecting sales of taxable items; and
(6) a person who, under an agreement with another
person, is:
(A) entrusted with possession of tangible
personal property with respect to which the other person has title
or another ownership interest; and
(B) authorized to sell, lease, or rent the
property without additional action by the person having title to or
another ownership interest in the property.
SECTION 30.02. Section 151.107, Tax Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) For the purpose of this subchapter and in relation to
the use tax, a retailer is engaged in business in this state if the
retailer:
(1) maintains, occupies, or uses in this state
permanently, temporarily, directly, or indirectly or through a
subsidiary or agent by whatever name, an office, [place of]
distribution center, sales or sample room or place, warehouse,
storage place, or any other physical location where [place of]
business is conducted;
(2) has a representative, agent, salesman, canvasser,
or solicitor operating in this state under the authority of the
retailer or its subsidiary for the purpose of selling or delivering
or the taking of orders for a taxable item;
(3) derives receipts [rentals] from the sale, [a]
lease, or rental of tangible personal property situated in this
state;
(4) engages in regular or systematic solicitation of
sales of taxable items in this state by the distribution of
catalogs, periodicals, advertising flyers, or other advertising,
by means of print, radio, or television media, or by mail,
telegraphy, telephone, computer data base, cable, optic,
microwave, or other communication system for the purpose of
effecting sales of taxable items;
(5) solicits orders for taxable items by mail or
through other media and under federal law is subject to or permitted
to be made subject to the jurisdiction of this state for purposes of
collecting the taxes imposed by this chapter;
(6) has a franchisee or licensee operating under its
trade name if the franchisee or licensee is required to collect the
tax under this section; [or]
(7) holds a substantial ownership interest in, or is
owned in whole or substantial part by, a person who maintains a
location in this state from which business is conducted and if:
(A) the retailer sells the same or a
substantially similar line of products as the person with the
location in this state and sells those products under a business
name that is the same as or substantially similar to the business
name of the person with the location in this state; or
(B) the facilities or employees of the person
with the location in this state are used to:
(i) advertise, promote, or facilitate sales
by the retailer to consumers; or
(ii) perform any other activity on behalf
of the retailer that is intended to establish or maintain a
marketplace for the retailer in this state, including receiving or
exchanging returned merchandise;
(8) holds a substantial ownership interest in, or is
owned in whole or substantial part by, a person that:
(A) maintains a distribution center, warehouse,
or similar location in this state; and
(B) delivers property sold by the retailer to
consumers; or
(9) otherwise does business in this state.
(d) In this section:
(1) “Ownership” includes:
(A) direct ownership;
(B) common ownership; and
(C) indirect ownership through a parent entity,
subsidiary, or affiliate.
(2) “Substantial” means, with respect to an ownership
interest, an interest in an entity that is:
(A) if the entity is a corporation, at least 50
percent, directly or indirectly, of:
(i) the total combined voting power of all
classes of stock of the corporation; or
(ii) the beneficial ownership interest in
the voting stock of the corporation;
(B) if the entity is a trust, at least 50 percent,
directly or indirectly, of the current beneficial interest in the
trust corpus or income;
(C) if the entity is a limited liability company,
at least 50 percent, directly or indirectly, of:
(i) the total membership interest of the
limited liability company; or
(ii) the beneficial ownership interest in
the membership interest of the limited liability company; or
(D) for any entity, including a partnership or
association, at least 50 percent, directly or indirectly, of the
capital or profits interest in the entity.
SECTION 30.03. Subchapter M, Chapter 151, Tax Code, is
amended by adding Section 151.802 to read as follows:
Sec. 151.802. ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX
RELIEF FUND. (a) This section applies only:
(1) during the state fiscal years beginning September
1 of 2012, 2013, 2014, 2015, and 2016; and
(2) with respect to unused franchise tax credits
described by Sections 18(e) and (f), Chapter 1 (H.B. 3), Acts of the
79th Legislature, 3rd Called Session, 2006.
(b) Notwithstanding Section 151.801, the comptroller shall
deposit to the credit of the property tax relief fund under Section
403.109, Government Code, an amount of the proceeds from the
collection of the taxes imposed by this chapter equal to the amount
of revenue the state does not receive from the tax imposed under
Chapter 171 because taxable entities, as defined by that chapter,
that are corporations are entitled to claim unused franchise tax
credits after December 31, 2012, and during that state fiscal year.
(c) This section expires September 1, 2017.
SECTION 30.04. The change in law made by this article does
not affect tax liability accruing before the effective date of this
article. That liability continues in effect as if this article had
not been enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 30.05. This article takes effect January 1, 2012.
ARTICLE 31. CARRYFORWARD OF CERTAIN FRANCHISE TAX CREDITS
SECTION 31.01. Subsections (e) and (f), Section 18, Chapter
1 (H.B. 3), Acts of the 79th Legislature, 3rd Called Session, 2006,
are amended to read as follows:
(e) A corporation that has any unused credits established
before the effective date of this Act under Subchapter P, Chapter
171, Tax Code, may claim those unused credits on or with the tax
report for the period in which the credit was established. However,
if the corporation was allowed to carry forward unused credits
under that subchapter, the corporation may continue to apply those
credits on or with each consecutive report until the earlier of the
date the credit would have expired under the terms of Subchapter P,
Chapter 171, Tax Code, had it continued in existence, or December
31, 2016 [2012], and the former law under which the corporation
established the credits is continued in effect for purposes of
determining the amount of the credits the corporation may claim and
the manner in which the corporation may claim the credits.
(f) A corporation that has any unused credits established
before the effective date of this Act under Subchapter Q, Chapter
171, Tax Code, may claim those unused credits on or with the tax
report for the period in which the credit was established. However,
if the corporation was allowed to carry forward unused credits
under that subchapter, the corporation may continue to apply those
credits on or with each consecutive report until the earlier of the
date the credit would have expired under the terms of Subchapter Q,
Chapter 171, Tax Code, had it continued in existence, or December
31, 2016 [2012], and the former law under which the corporation
established the credits is continued in effect for purposes of
determining the amount of the credits the corporation may claim and
the manner in which the corporation may claim the credits.
ARTICLE 32. STATE PURCHASING
SECTION 32.01. Section 2155.082, Government Code, is
amended to read as follows:
Sec. 2155.082. PROVIDING CERTAIN PURCHASING SERVICES ON
FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT FUNDING. (a) The
comptroller [commission] may provide open market purchasing
services on a fee-for-service basis for state agency purchases that
are delegated to an agency under Section 2155.131, 2155.132,
[2155.133,] or 2157.121 or that are exempted from the purchasing
authority of the comptroller [commission]. The comptroller
[commission] shall set the fees in an amount that recovers the
comptroller’s [commission’s] costs in providing the services.
(b) The comptroller [commission] shall publish a schedule
of [its] fees for services that are subject to this section. The
schedule must include the comptroller’s [commission’s] fees for:
(1) reviewing bid and contract documents for clarity,
completeness, and compliance with laws and rules;
(2) developing and transmitting invitations to bid;
(3) receiving and tabulating bids;
(4) evaluating and determining which bidder offers the
best value to the state;
(5) creating and transmitting purchase orders; and
(6) participating in agencies’ request for proposal
processes.
(c) If the state agency on behalf of which the procurement
is to be made agrees, the comptroller may engage a consultant to
assist with a particular procurement on behalf of a state agency and
pay the consultant from the cost savings realized by the state
agency.
ARTICLE 33. PERIOD FOR SALES AND USE TAX HOLIDAY
SECTION 33.01. Subsection (a), Section 151.326, Tax Code,
is amended to read as follows:
(a) The sale of an article of clothing or footwear designed
to be worn on or about the human body is exempted from the taxes
imposed by this chapter if:
(1) the sales price of the article is less than $100;
and
(2) the sale takes place during a period beginning at
12:01 a.m. on the [third] Friday before the eighth day preceding the
earliest date on which any school district, other than a district
operating a year-round system, may begin instruction for the school
year as prescribed by Section 25.0811(a), Education Code, [in
August] and ending at 12 midnight on the following Sunday.
SECTION 33.02. Subsection (a), Section 151.326, Tax Code,
as amended by this article, does not affect tax liability accruing
before the effective date of this article. That liability
continues in effect as if this article had not been enacted, and the
former law is continued in effect for the collection of taxes due
and for civil and criminal enforcement of the liability for those
taxes.
ARTICLE 34. LEGISLATIVE BUDGET BOARD MEETINGS
SECTION 34.01. Section 322.003, Government Code, is amended
by adding Subsection (f) to read as follows:
(f) The board shall hold a public hearing each state fiscal
year to receive a report from the comptroller and receive invited
testimony regarding the financial condition of this state. The
report from the comptroller shall include, to the extent
practicable:
(1) information on each revenue source included in
determining the estimate of anticipated revenue for purposes of the
most recent statement required by Section 49a, Article III, Texas
Constitution, and the total net revenue actually collected from
that source for the state fiscal year as of the end of the most
recent state fiscal quarter;
(2) a comparison for the period described by
Subdivision (1) of the total net revenue collected from each
revenue source required to be specified under that subdivision with
the anticipated revenue from that source that was included for
purposes of determining the estimate of anticipated revenue in the
statement required by Section 49a, Article III, Texas Constitution;
(3) information on state revenue sources resulting
from a law taking effect after the comptroller submitted the most
recent statement required by Section 49a, Article III, Texas
Constitution, and the estimated total net revenue collected from
that source for the state fiscal year as of the end of the most
recent state fiscal quarter;
(4) a summary of the indicators of state economic
trends experienced since the most recent statement required by
Section 49a, Article III, Texas Constitution; and
(5) a summary of anticipated state economic trends and
the anticipated effect of the trends on state revenue collections.
SECTION 34.02. Chapter 322, Government Code, is amended by
adding Section 322.0081 to read as follows:
Sec. 322.0081. BUDGET DOCUMENTS ONLINE. (a) The board
shall post on the board’s Internet website documents prepared by
the board that are provided to a committee, subcommittee, or
conference committee of either house of the legislature in
connection with an appropriations bill.
(b) The board shall post a document to which this section
applies as soon as practicable after the document is provided to a
committee, subcommittee, or conference committee.
(c) The document must be downloadable and provide data in a
format that allows the public to search, extract, organize, and
analyze the information in the document.
(d) The requirement under Subsection (a) does not supersede
any exceptions provided under Chapter 552.
(e) The board shall promulgate rules to implement the
provisions of this section.
SECTION 34.03. Chapter 322, Government Code, is amended by
adding Section 322.022 to read as follows:
Sec. 322.022. PUBLIC HEARING ON INTERIM BUDGET REDUCTION
REQUEST. (a) In this section:
(1) “Interim budget reduction request” means a request
communicated in any manner for a state agency to make adjustments to
the strategies, methods of finance, performance measures, or riders
applicable to the agency through the state budget in effect on the
date the request is communicated that, if implemented, would reduce
the agency’s total expenditures for the current state fiscal
biennium to an amount less than the total amount that otherwise
would be permissible based on the appropriations made to the agency
in the budget.
(2) “State agency” means an office, department, board,
commission, institution, or other entity to which a legislative
appropriation is made.
(b) A state agency shall provide to the board a detailed
report of any expenditure reduction plan that:
(1) the agency develops in response to an interim
budget reduction request made by the governor, the lieutenant
governor, or a member of the legislature, or any combination of
those persons; and
(2) if implemented, would reduce the agency’s total
expenditures for the current state fiscal biennium to an amount
less than the total amount that otherwise would be permissible
based on the appropriations made to the agency in the state budget
for the biennium.
(c) The board shall hold a public hearing to solicit
testimony on an expenditure reduction plan a state agency reports
to the board as required by Subsection (b) as soon as practicable
after receiving the report. The agency may not implement any
element of the plan until the conclusion of the hearing.
(d) This section does not apply to an expenditure reduction
a state agency desires to make that does not directly or indirectly
result from an interim budget reduction request made by the
governor, the lieutenant governor, or a member of the legislature,
or any combination of those persons.
SECTION 34.04. Subchapter B, Chapter 403, Government Code,
is amended by adding Section 403.0145 to read as follows:
Sec. 403.0145. PUBLICATION OF FEES SCHEDULE. As soon as
practicable after the end of each state fiscal year, the
comptroller shall publish online a schedule of all revenue to the
state from fees authorized by statute. For each fee, the schedule
must specify:
(1) the statutory authority for the fee;
(2) if the fee has been increased during the most
recent legislative session, the amount of the increase;
(3) into which fund the fee revenue will be deposited;
and
(4) the amount of the fee revenue that will be
considered available for general governmental purposes and
accordingly considered available for the purpose of certification
under Section 403.121.
SECTION 34.05. Section 404.124, Government Code, is amended
by amending Subsections (a) and (b) and adding Subsection (b-1) to
read as follows:
(a) Before issuing notes the comptroller shall submit to the
committee a general revenue cash flow shortfall forecast, based on
the comptroller’s most recent anticipated revenue estimate. The
forecast must contain a detailed report of estimated revenues and
expenditures for each month and each major revenue and expenditure
category and must demonstrate the maximum general revenue cash flow
shortfall that may be predicted. The committee shall hold a public
hearing to receive invited testimony on the forecast, including
testimony on this state’s overall economic condition, as soon as
practicable after receiving the forecast.
(b) Based on the forecast and testimony provided at the
hearing required by Subsection (a), the committee may approve the
issuance of notes, subject to Subsections (b-1) and (c), and the
maximum outstanding balance of notes in any fiscal year. The
outstanding balance may not exceed the maximum temporary cash
shortfall forecast by the comptroller for any period in the fiscal
year. The comptroller may not issue notes in excess of the amount
approved.
(b-1) The committee’s approval of the issuance of notes
granted under Subsection (b) expires on the 91st day after the date
the hearing conducted under Subsection (a) concludes. The
comptroller may not issue notes on or after the 91st day unless the
comptroller submits another general revenue cash flow shortfall
forecast to the committee and the committee subsequently grants
approval for the issuance of the notes in accordance with the
procedure required by Subsections (a) and (b). Each subsequent
approval expires on the 61st day after the date the hearing on which
the approval was based concludes.
SECTION 34.06. It is the intent of the legislature that the
Legislative Budget Board place information on its Internet website
that provides additional program detail for items of appropriation
in the General Appropriations Act. The Legislative Budget Board
shall include as additional program detail the specific programs
funded, the source of that funding, and the related statutory
authorization.
ARTICLE 35. ECONOMIC AND WORKFORCE DEVELOPMENT PROGRAMS
SECTION 35.01. Section 481.078, Government Code, is amended
by adding Subsection (m) to read as follows:
(m) Notwithstanding Subsections (e) and (e-1), during the
state fiscal biennium that begins on September 1, 2011, the
governor may transfer appropriated money from the fund to the Texas
Workforce Commission to fund the Texas Back to Work Program
established under Chapter 314, Labor Code. This subsection expires
September 1, 2013.
SECTION 35.02. Subtitle B, Title 4, Labor Code, is amended
by adding Chapter 314 to read as follows:
CHAPTER 314. TEXAS BACK TO WORK PROGRAM
Sec. 314.001. DEFINITION. In this chapter, “qualified
applicant” means a person who made less than $40 per hour at the
person’s last employment before becoming unemployed.
Sec. 314.002. INITIATIVE ESTABLISHED. (a) The Texas Back
to Work Program is established within the commission.
(b) The purpose of the program is to establish
public-private partnerships with employers to transition residents
of this state from receiving unemployment compensation to becoming
employed as members of the workforce.
(c) An employer that participates in the initiative may
receive a wage subsidy for hiring one or more qualified applicants
who are unemployed at the time of hire.
(d) The commission, for the purposes of this section, may use:
(1) money appropriated to the commission; and
(2) money that is transferred to the commission from
trusteed programs within the office of the governor, including:
(A) appropriated money from the Texas Enterprise
Fund;
(B) available federal funds; and
(C) money from other appropriate, statutorily
authorized funding sources.
Sec. 314.003. RULES. The commission may adopt rules as
necessary to implement this chapter.
ARTICLE 36. ELIGIBILITY OF SURVIVING SPOUSE OF DISABLED VETERAN
TO PAY AD VALOREM TAXES ON RESIDENCE HOMESTEAD IN INSTALLMENTS
SECTION 36.01. Section 31.031, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) This section applies only to:
(1) [If before the delinquency date] an individual who
is:
(A) disabled or at least 65 years of age; and
(B) [is] qualified for an exemption under Section
11.13(c); or
(2) an individual who is:
(A) the unmarried surviving spouse of a disabled
veteran; and
(B) qualified for an exemption under Section
11.22.
(a-1) If before the delinquency date an individual to whom
this section applies pays at least one-fourth of a taxing unit’s
taxes imposed on property that the person owns and occupies as a
residence homestead, accompanied by notice to the taxing unit that
the person will pay the remaining taxes in installments, the person
may pay the remaining taxes without penalty or interest in three
equal installments. The first installment must be paid before
April 1, the second installment before June 1, and the third
installment before August 1.
SECTION 36.02. This article applies only to an ad valorem
tax year that begins on or after the effective date of this article.
SECTION 36.03. This article takes effect January 1, 2012.
ARTICLE 37. EXTENSION OF FRANCHISE TAX EXEMPTION
SECTION 37.01. Subsection (c), Section 1, Chapter 286 (H.B.
4765), Acts of the 81st Legislature, Regular Session, 2009, is
amended to read as follows:
(c) This [If this section takes effect, this] section
expires December 31, 2013 [2011].
SECTION 37.02. Subsection (b), Section 2, Chapter 286 (H.B.
4765), Acts of the 81st Legislature, Regular Session, 2009, is
amended to read as follows:
(b) This section takes effect January 1, 2014 [2012, if H.B.
No. 2154, Acts of the 81st Legislature, Regular Session, 2009,
amends Section 155.0211, Tax Code, in a manner that results in an
increase in the revenue from the tax under that section during the
state fiscal biennium beginning September 1, 2009, that is
attributable to that change, and that Act is enacted and becomes
law. If H.B. No. 2154, Acts of the 81st Legislature, Regular
Session, 2009, does not amend Section 155.0211, Tax Code, in that
manner or is not enacted or does not become law, this section takes
effect January 1, 2010].
SECTION 37.03. Subsection (b), Section 3, Chapter 286 (H.B.
4765), Acts of the 81st Legislature, Regular Session, 2009, is
amended to read as follows:
(b) This section takes effect January 1, 2014 [2012, if H.B.
No. 2154, Acts of the 81st Legislature, Regular Session, 2009,
amends Section 155.0211, Tax Code, in a manner that results in an
increase in the revenue from the tax under that section during the
state fiscal biennium beginning September 1, 2009, that is
attributable to that change, and that Act is enacted and becomes
law. If H.B. No. 2154, Acts of the 81st Legislature, Regular
Session, 2009, does not amend Section 155.0211, Tax Code, in that
manner or is not enacted or does not become law, this section takes
effect January 1, 2010].
SECTION 37.04. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
this article to have immediate effect, this article takes effect on
the 91st day after the last day of the legislative session.
ARTICLE 38. FISCAL MATTERS REGARDING ASSISTANT PROSECUTORS
SECTION 38.01. Subsection (f), Section 41.255, Government
Code, is amended to read as follows:
(f) A county is not required to pay longevity supplements if
the county does not receive funds from the comptroller as provided
by Subsection (d). If sufficient funds are not available to meet
the requests made by counties for funds for payment of assistant
prosecutors qualified for longevity supplements:
(1) [,] the comptroller shall apportion the available
funds to the eligible counties by reducing the amount payable to
each county on an equal percentage basis;
(2) a county is not entitled to receive the balance of
the funds at a later date; and
(3) the longevity pay program under this chapter is
suspended to the extent of the insufficiency. [A county that
receives from the comptroller an amount less than the amount
certified by the county to the comptroller under Subsection (d)
shall apportion the funds received by reducing the amount payable
to eligible assistant prosecutors on an equal percentage basis, but
is not required to use county funds to make up any difference
between the amount certified and the amount received.]
SECTION 38.02. Subsection (g), Section 41.255, Government
Code, is repealed.
ARTICLE 39. FISCAL MATTERS REGARDING PROCESS SERVERS
SECTION 39.01. Subchapter B, Chapter 72, Government Code,
is amended by adding Sections 72.013 and 72.014 to read as follows:
Sec. 72.013. PROCESS SERVER REVIEW BOARD. A person
appointed to the process server review board established by supreme
court order serves without compensation but is entitled to
reimbursement for actual and necessary expenses incurred in
traveling and performing official board duties.
Sec. 72.014. CERTIFICATION DIVISION. The office shall
establish a certification division to oversee the regulatory
programs assigned to the office by law or by the supreme court.
Fees collected under Section 51.008 may be appropriated to the
office to support the certification division.
ARTICLE 40. FISCAL MATTERS REGARDING REIMBURSEMENT OF JURORS
SECTION 40.01. Section 61.001, Government Code, is amended
by adding Subsections (a-1) and (a-2) to read as follows:
(a-1) Notwithstanding Subsection (a), and except as
provided by Subsection (c), during the state fiscal biennium
beginning September 1, 2011, a person who reports for jury service
in response to the process of a court is entitled to receive as
reimbursement for travel and other expenses an amount:
(1) not less than $6 for the first day or fraction of
the first day the person is in attendance in court in response to
the process and discharges the person’s duty for that day; and
(2) not less than the amount provided in the General
Appropriations Act for each day or fraction of each day the person
is in attendance in court in response to the process after the first
day and discharges the person’s duty for that day.
(a-2) This subsection and Subsection (a-1) expire September
1, 2013.
SECTION 40.02. Section 61.0015, Government Code, is amended
by adding Subsections (a-1), (a-2), and (e-1) to read as follows:
(a-1) Notwithstanding Subsection (a), during the state
fiscal biennium beginning September 1, 2011, the state shall
reimburse a county the appropriate amount as provided in the
General Appropriations Act for the reimbursement paid under Section
61.001 to a person who reports for jury service in response to the
process of a court for each day or fraction of each day after the
first day in attendance in court in response to the process.
(a-2) This subsection and Subsections (a-1) and (e-1)
expire September 1, 2013.
(e-1) Notwithstanding Subsection (e), during the state
fiscal biennium beginning September 1, 2011, if a payment on a
county’s claim for reimbursement is reduced under Subsection (d),
or if a county fails to file the claim for reimbursement in a timely
manner, the comptroller may, as provided by rule, apportion the
payment of the balance owed the county. The comptroller’s rules may
permit a different rate of reimbursement for each quarterly payment
under Subsection (c).
ARTICLE 41. COLLECTION IMPROVEMENT PROGRAM
SECTION 41.01. Subsections (b), (c), (e), (h), (i), and
(j), Article 103.0033, Code of Criminal Procedure, as effective
September 1, 2011, are amended to read as follows:
(b) This article applies only to:
(1) a [each] county with a population of 50,000 or
greater; [in this state] and
(2) a [to each] municipality with a population of
100,000 or greater.
(c) Unless granted a waiver under Subsection (h), each
county and municipality shall develop and implement a program that
complies with the prioritized implementation schedule under
Subsection (h). [A county may develop and implement a program that
complies with the prioritized implementation schedule under
Subsection (h).] A county program must include district, county,
and justice courts.
(e) Not later than June 1 of each year, the office shall
identify those counties and municipalities that:
(1) have not implemented a program; and
(2) are able [planning] to implement a program before
April 1 of the following year.
(h) The office may:
(1) use case dispositions, population, revenue data,
or other appropriate measures to develop a prioritized
implementation schedule for programs; and
(2) [for a municipality,] determine whether it is not
[actually] cost-effective to implement a program in a county or
[the] municipality and grant a waiver to the county or
municipality.
(i) Each county [that implements a program] and [each]
municipality shall at least annually submit to the office a written
report that includes updated information regarding the program, as
determined by the office. The report must be in a form approved by
the office.
(j) The office shall periodically audit counties and
municipalities to verify information reported under Subsection (i)
and confirm that the county or municipality is conforming with
requirements relating to the program.
SECTION 41.02. Subsection (e), Section 133.058, Local
Government Code, as effective September 1, 2011, is amended to read
as follows:
(e) A municipality or county may not retain a service fee
if, during an audit under Article 103.0033(j), Code of Criminal
Procedure, the Office of Court Administration of the Texas Judicial
System determines that the municipality or county is not in
compliance with Article 103.0033, Code of Criminal Procedure, and
in the case of a municipality if the municipality is unable to
reestablish compliance on or before the 180th day after the date the
municipality receives written notice of noncompliance from the
office. After any period in which the municipality or county
becomes unable to retain a service fee under this subsection, the
municipality or county may begin once more to retain the fee only on
receipt of a written confirmation from the office that the
municipality or county is in compliance with Article 103.0033, Code
of Criminal Procedure.
SECTION 41.03. Subsection (c-1), Section 133.103, Local
Government Code, as effective September 1, 2011, is amended to read
as follows:
(c-1) The treasurer shall send to the comptroller 100
percent of the fees collected under this section [by a
municipality] if, during an audit under Article 103.0033(j), Code
of Criminal Procedure, the Office of Court Administration of the
Texas Judicial System determines that the municipality or county is
not in compliance with Article 103.0033, Code of Criminal
Procedure, and in the case of a municipality if the municipality is
unable to reestablish compliance on or before the 180th day after
the date the municipality receives written notice of noncompliance
from the office. After any period in which the treasurer is
required under this subsection to send 100 percent of the fees
collected under this section to the comptroller, the municipality
or county shall begin once more to dispose of fees as otherwise
provided by this section on receipt of a written confirmation from
the office that the municipality or county is in compliance with
Article 103.0033, Code of Criminal Procedure.
SECTION 41.04. The change in law made by this article in
amending Subsection (e), Section 133.058, and Subsection (c-1),
Section 133.103, Local Government Code, applies only to an audit
commenced on or after the effective date of this article. An audit
commenced before the effective date of this article is governed by
the law in effect when the audit was commenced, and the former law
is continued in effect for that purpose.
SECTION 41.05. The change in law made by this article in
amending Article 103.0033, Code of Criminal Procedure, applies only
to a court cost, fee, or fine imposed in a criminal case on or after
the effective date of this article. A court cost, fee, or fine
imposed in a criminal case before the effective date of this article
is governed by the law in effect on the date the cost, fee, or fine
was imposed, and the former law is continued in effect for that
purpose.

ARTICLE 42. CORRECTIONAL MANAGED HEALTH CARE
SECTION 42.01. Subsection (a), Section 501.133, Government
Code, is amended to read as follows:
(a) The committee consists of five voting [nine] members and
one nonvoting member [appointed] as follows:
(1) one member [two members] employed full-time by the
department, [at least one of whom is a physician,] appointed by the
executive director;
(2) one member who is a physician and [two members]
employed full-time by The University of Texas Medical Branch at
Galveston, [at least one of whom is a physician,] appointed by the
president of the medical branch;
(3) one member who is a physician and [two members]
employed full-time by the Texas Tech University Health Sciences
Center, [at least one of whom is a physician,] appointed by the
president of the university; [and]
(4) two [three] public members appointed by the
governor who are not affiliated with the department or with any
entity with which the committee has contracted to provide health
care services under this chapter, at least one [two] of whom is
[are] licensed to practice medicine in this state; and
(5) the state Medicaid director, to serve ex officio
as a nonvoting member.
SECTION 42.02. Subsection (b), Section 501.135, Government
Code, is amended to read as follows:
(b) A person may not be an appointed [a] member of the
committee and may not be a committee employee employed in a “bona
fide executive, administrative, or professional capacity,” as that
phrase is used for purposes of establishing an exemption to the
overtime provisions of the federal Fair Labor Standards Act of 1938
(29 U.S.C. Section 201 et seq.) and its subsequent amendments if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of health care
or health care services; or
(2) the person’s spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of health care
or health care services.
SECTION 42.03. Section 501.136, Government Code, is amended
to read as follows:
Sec. 501.136. TERMS OF OFFICE FOR PUBLIC MEMBERS.
Committee members appointed by the governor serve staggered
four-year [six-year] terms, with the term of one of those members
expiring on February 1 of each odd-numbered year. Other committee
members serve at the will of the appointing official or until
termination of the member’s employment with the entity the member
represents.
SECTION 42.04. Section 501.147, Government Code, is amended
to read as follows:
Sec. 501.147. DEPARTMENT [COMMITTEE] AUTHORITY TO
CONTRACT. (a) The department [committee] may enter into a
contract [on behalf of the department] to fully implement the
managed health care plan under this subchapter. A contract entered
into under this subsection must include provisions necessary to
ensure that The University of Texas Medical Branch at Galveston is
eligible for and makes reasonable efforts to participate in the
purchase of prescription drugs under Section 340B, Public Health
Service Act (42 U.S.C. Section 256b).
(b) The department [committee] may[, in addition to
providing services to the department,] contract with other
governmental entities for similar health care services and
integrate those services into the managed health care provider
network.
(c) In contracting for implementation of the managed health
care plan, the department [committee], to the extent possible,
shall integrate the managed health care provider network with the
public medical schools of this state and the component and
affiliated hospitals of those medical schools. The contract must
authorize The University of Texas Medical Branch at Galveston to
contract directly with the Texas Tech University Health Sciences
Center for the provision of health care services. The Texas Tech
University Health Sciences Center shall cooperate with The
University of Texas Medical Branch at Galveston in its efforts to
participate in the purchase of prescription drugs under Section
340B, Public Health Service Act (42 U.S.C. Section 256b).
(d) For services that the public medical schools and their
components and affiliates cannot provide, the department
[committee] shall initiate a competitive bidding process for
contracts with other providers for medical care to persons confined
by the department.
(e) The department, in cooperation with the committee, may
contract with an individual or firm for a biennial review of, and
report concerning, expenditures under the managed health care plan.
The review must be conducted by an individual or firm experienced in
auditing the state’s Medicaid expenditures and other medical
expenditures. Not later than September 1 of each even-numbered
year, the department shall submit a copy of a report under this
section to the health care providers that are part of the managed
health care provider network established under this subchapter, the
Legislative Budget Board, the governor, the lieutenant governor,
and the speaker of the house of representatives.
SECTION 42.05. Subsection (a), Section 501.148, Government
Code, is amended to read as follows:
(a) The committee may [shall]:
(1) develop statewide policies for the delivery of
correctional health care;
(2) [maintain contracts for health care services in
consultation with the department and the health care providers;
[(3)] communicate with the department and the
legislature regarding the financial needs of the correctional
health care system;
(3) in conjunction with the department,
[(4) allocate funding made available through legislative
appropriations for correctional health care;
[(5)] monitor the expenditures of The University of
Texas Medical Branch at Galveston and the Texas Tech University
Health Sciences Center to ensure that those expenditures comply
with applicable statutory and contractual requirements;
(4) [(6)] serve as a dispute resolution forum in the
event of a disagreement relating to inmate health care services
between:
(A) the department and the health care providers;
or
(B) The University of Texas Medical Branch at
Galveston and the Texas Tech University Health Sciences Center;
(5) [(7)] address problems found through monitoring
activities by the department and health care providers, including
requiring corrective action if care does not meet expectations as
determined by those monitoring activities;
(6) [(8)] identify and address long-term needs of the
correctional health care system; and
(7) [(9)] report to the Texas Board of Criminal
Justice at the board’s regularly scheduled meeting each quarter on
the committee’s policy recommendations [decisions], the financial
status of the correctional health care system, and corrective
actions taken by or required of the department or the health care
providers.
SECTION 42.06. (a) The Correctional Managed Health Care
Committee established under Section 501.133, Government Code, as
that section existed before amendment by this article, is abolished
effective November 30, 2011.
(b) An appointing official under Section 501.133,
Government Code, shall appoint the members of the Correctional
Managed Health Care Committee under Section 501.133, Government
Code, as amended by this Act, not later than November 30, 2011. The
governor shall appoint one public member to serve a term that
expires February 1, 2013, and one public member to serve a term that
expires February 1, 2015.
(c) The term of a person who is serving as a member of the
Correctional Managed Health Care Committee immediately before the
abolition of that committee under Subsection (a) of this section
expires on November 30, 2011. Such a person is eligible for
appointment by an appointing official to the new committee under
Section 501.133, Government Code, as amended by this article.
ARTICLE 43. GENERAL HOUSING MATTERS
SECTION 43.01. Section 481.078, Government Code, is amended
by amending Subsection (c) and adding Subsection (d-1) to read as
follows:
(c) Except as provided by Subsections [Subsection] (d) and
(d-1), the fund may be used only for economic development,
infrastructure development, community development, job training
programs, and business incentives.
(d-1) The fund may be used for the Texas homeless housing
and services program administered by the Texas Department of
Housing and Community Affairs under Section 2306.2585. The
governor may transfer appropriations from the fund to the Texas
Department of Housing and Community Affairs to fund the Texas
homeless housing and services program. Subsections (e-1), (f),
(f-1), (f-2), (g), (h), (h-1), (i), and (j) and Section 481.080 do
not apply to a grant awarded for a purpose specified by this
subsection.
SECTION 43.02. Section 481.079, Government Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) For grants awarded for a purpose specified by Section
481.078(d-1), the report must include only the amount and purpose
of each grant.
SECTION 43.03. Subchapter K, Chapter 2306, Government Code,
is amended by adding Section 2306.2585 to read as follows:
Sec. 2306.2585. HOMELESS HOUSING AND SERVICES PROGRAM.
(a) The department may administer a homeless housing and services
program in each municipality in this state with a population of
285,500 or more to:
(1) provide for the construction, development, or
procurement of housing for homeless persons; and
(2) provide local programs to prevent and eliminate
homelessness.
(b) The department may adopt rules to govern the
administration of the program, including rules that:
(1) provide for the allocation of any available
funding; and
(2) provide detailed guidelines as to the scope of the
local programs in the municipalities described by Subsection (a).
(c) The department may use any available revenue, including
legislative appropriations, appropriation transfers from the
trusteed programs within the office of the governor, including
authorized appropriations from the Texas Enterprise Fund,
available federal funds, and any other statutorily authorized and
appropriate funding sources transferred from the trusteed programs
within the office of the governor, for the purposes of this section.
The department shall solicit and accept gifts and grants for the
purposes of this section. The department shall use gifts and grants
received for the purposes of this section before using any other
revenue.
SECTION 43.04. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 44. UNIFORM GRANT AND CONTRACT MANAGEMENT
SECTION 44.01. Section 783.004, Government Code, is amended
to read as follows:
Sec. 783.004. OFFICE OF THE COMPTROLLER [GOVERNOR’S
OFFICE]. The office of the comptroller [governor’s office] is the
state agency for uniform grant and contract management.
SECTION 44.02. Subsections (a) and (b), Section 783.005,
Government Code, are amended to read as follows:
(a) The comptroller [governor’s office] shall develop
uniform and concise language for any assurances that a local
government is required to make to a state agency.
(b) The comptroller [governor’s office] may:
(1) categorize assurances according to the type of
grant or contract;
(2) designate programs to which the assurances are
applicable; and
(3) revise the assurances.
SECTION 44.03. Section 783.006, Government Code, is amended
to read as follows:
Sec. 783.006. STANDARD FINANCIAL MANAGEMENT CONDITIONS.
(a) The comptroller [governor’s office] shall compile and
distribute to each state agency an official compilation of standard
financial management conditions.
(b) The comptroller [governor’s office] shall develop the
compilation from Federal Management Circular A-102 or from a
revision of that circular and from other applicable statutes and
regulations.
(c) The comptroller [governor’s office] shall include in
the compilation official commentary regarding administrative or
judicial interpretations that affect the application of financial
management standards.
(d) The comptroller [governor’s office] may:
(1) categorize the financial management conditions
according to the type of grant or contract;
(2) designate programs to which the conditions are
applicable; and
(3) revise the conditions.
SECTION 44.04. Subsection (d), Section 783.007, Government
Code, is amended to read as follows:
(d) The agency shall file a notice of each proposed rule
that establishes a variation from uniform assurances or standard
conditions with the comptroller [governor’s office].
SECTION 44.05. Subsection (b), Section 783.008, Government
Code, is amended to read as follows:
(b) On receipt of a request for a single audit or audit
coordination, the comptroller [governor’s office] in consultation
with the state auditor shall not later than the 30th day after the
date of the request designate a single state agency to coordinate
state audits of the local government.
ARTICLE 45. FRANCHISE TAX APPLICABILITY AND EXCLUSIONS
SECTION 45.01. Section 171.0001, Tax Code, is amended by
adding Subdivisions (1-a), (10-a), (10-b), and (11-b) to read as
follows:
(1-a) “Artist” means a natural person or an entity
that contracts to perform or entertain at a live entertainment
event.
(10-a) “Live entertainment event” means an event that
occurs on a specific date to which tickets are sold in advance by a
third-party vendor and at which:
(A) a natural person or a group of natural
persons, physically present at the venue, performs for the purpose
of entertaining a ticket holder who is present at the event;
(B) a traveling circus or animal show performs
for the purpose of entertaining a ticket holder who is present at
the event; or
(C) a historical, museum-quality artifact is on
display in an exhibition.
(10-b) “Live event promotion services” means services
related to the promotion, coordination, operation, or management of
a live entertainment event. The term includes services related to:
(A) the provision of staff for the live
entertainment event; or
(B) the scheduling and promotion of an artist
performing or entertaining at the live entertainment event.
(11-b) “Qualified live event promotion company” means
a taxable entity that:
(A) receives at least 50 percent of the entity’s
annual total revenue from the provision or arrangement for the
provision of three or more live event promotion services;
(B) maintains a permanent nonresidential office
from which the live event promotion services are provided or
arranged;
(C) employs 10 or more full-time employees during
all or part of the period for which taxable margin is calculated;
(D) does not provide services for a wedding or
carnival; and
(E) is not a movie theater.
SECTION 45.02. Subsection (c), Section 171.0002, Tax Code,
is amended to read as follows:
(c) “Taxable entity” does not include an entity that is:
(1) a grantor trust as defined by Sections 671 and
7701(a)(30)(E), Internal Revenue Code, all of the grantors and
beneficiaries of which are natural persons or charitable entities
as described in Section 501(c)(3), Internal Revenue Code, excluding
a trust taxable as a business entity pursuant to Treasury
Regulation Section 301.7701-4(b);
(2) an estate of a natural person as defined by Section
7701(a)(30)(D), Internal Revenue Code, excluding an estate taxable
as a business entity pursuant to Treasury Regulation Section
301.7701-4(b);
(3) an escrow;
(4) a real estate investment trust (REIT) as defined
by Section 856, Internal Revenue Code, and its “qualified REIT
subsidiary” entities as defined by Section 856(i)(2), Internal
Revenue Code, provided that:
(A) a REIT with any amount of its assets in direct
holdings of real estate, other than real estate it occupies for
business purposes, as opposed to holding interests in limited
partnerships or other entities that directly hold the real estate,
is a taxable entity; and
(B) a limited partnership or other entity that
directly holds the real estate as described in Paragraph (A) is not
exempt under this subdivision, without regard to whether a REIT
holds an interest in it;
(5) a real estate mortgage investment conduit (REMIC),
as defined by Section 860D, Internal Revenue Code;
(6) a nonprofit self-insurance trust created under
Chapter 2212, Insurance Code, or a predecessor statute;
(7) a trust qualified under Section 401(a), Internal
Revenue Code; [or]
(8) a trust or other entity that is exempt under
Section 501(c)(9), Internal Revenue Code; or
(9) an unincorporated entity organized as a political
committee under the Election Code or the provisions of the Federal
Election Campaign Act of 1971 (2 U.S.C. Section 431 et seq.).
SECTION 45.03. Section 171.1011, Tax Code, is amended by
adding Subsections (g-5) and (g-7) to read as follows:
(g-5) A taxable entity that is a qualified live event
promotion company shall exclude from its total revenue, to the
extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3), a
payment made to an artist in connection with the provision of a live
entertainment event or live event promotion services.
(g-7) A taxable entity that is a qualified courier and
logistics company shall exclude from its total revenue, to the
extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3),
subcontracting payments made by the taxable entity to nonemployee
agents for the performance of delivery services on behalf of the
taxable entity. For purposes of this subsection, “qualified
courier and logistics company” means a taxable entity that:
(1) receives at least 80 percent of the taxable
entity’s annual total revenue from its entire business from a
combination of at least two of the following courier and logistics
services:
(A) expedited same-day delivery of an envelope,
package, parcel, roll of architectural drawings, box, or pallet;
(B) temporary storage and delivery of the
property of another entity, including an envelope, package, parcel,
roll of architectural drawings, box, or pallet; and
(C) brokerage of same-day or expedited courier
and logistics services to be completed by a person or entity under a
contract that includes a contractual obligation by the taxable
entity to make payments to the person or entity for those services;
(2) during the period on which margin is based, is
registered as a motor carrier under Chapter 643, Transportation
Code, and if the taxable entity operates on an interstate basis, is
registered as a motor carrier or broker under the unified carrier
registration system, as defined by Section 643.001, Transportation
Code, during that period;
(3) maintains an automobile liability insurance
policy covering individuals operating vehicles owned, hired, or
otherwise used in the taxable entity’s business, with a combined
single limit for each occurrence of at least $1 million;
(4) maintains at least $25,000 of cargo insurance;
(5) maintains a permanent nonresidential office from
which the courier and logistics services are provided or arranged;
(6) has at least five full-time employees during the
period on which margin is based;
(7) is not doing business as a livery service, floral
delivery service, motor coach service, taxicab service, building
supply delivery service, water supply service, fuel or energy
supply service, restaurant supply service, commercial moving and
storage company, or overnight delivery service; and
(8) is not delivering items that the taxable entity or
an affiliated entity sold.
SECTION 45.04. This article applies only to a report
originally due on or after January 1, 2012.
SECTION 45.05. This article takes effect January 1, 2012.
ARTICLE 46. AD VALOREM TAXATION OF LAND USED TO RAISE OR KEEP BEES
SECTION 46.01. Subdivision (2), Section 23.51, Tax Code, is
amended to read as follows:
(2) “Agricultural use” includes but is not limited to
the following activities: cultivating the soil, producing crops
for human food, animal feed, or planting seed or for the production
of fibers; floriculture, viticulture, and horticulture; raising or
keeping livestock; raising or keeping exotic animals for the
production of human food or of fiber, leather, pelts, or other
tangible products having a commercial value; planting cover crops
or leaving land idle for the purpose of participating in a
governmental program, provided the land is not used for residential
purposes or a purpose inconsistent with agricultural use; and
planting cover crops or leaving land idle in conjunction with
normal crop or livestock rotation procedure. The term also
includes the use of land to produce or harvest logs and posts for
the use in constructing or repairing fences, pens, barns, or other
agricultural improvements on adjacent qualified open-space land
having the same owner and devoted to a different agricultural use.
The term also includes the use of land for wildlife management. The
term also includes the use of land to raise or keep bees for
pollination or for the production of human food or other tangible
products having a commercial value, provided that the land used is
not less than 5 or more than 20 acres.
SECTION 46.02. This article applies only to the appraisal
of land for ad valorem tax purposes for a tax year that begins on or
after the effective date of this Act.
ARTICLE 47. QUINQUENNIAL REPORTING OF CERTAIN INFORMATION FOR
UNCLAIMED PROPERTY
SECTION 47.01. Subsection (a), Section 411.0111,
Government Code, is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
department shall provide to the comptroller, for the purpose of
assisting the comptroller in the identification of persons entitled
to unclaimed property reported to the comptroller, the name,
address, social security number, date of birth, and driver’s
license or state identification number of each person about whom
the department has such information in its records.
SECTION 47.02. Subsection (a), Section 821.010, Government
Code, is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
retirement system shall provide to the comptroller, for the purpose
of assisting the comptroller in the identification of persons
entitled to unclaimed property reported to the comptroller, the
name, address, social security number, and date of birth of each
member, retiree, and beneficiary from the retirement system’s
records.
SECTION 47.03. Subsection (a), Section 301.086, Labor Code,
is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
commission shall provide to the comptroller, for the purpose of
assisting the comptroller in the identification of persons entitled
to unclaimed property reported to the comptroller, the name,
address, social security number, and date of birth of each person
about whom the commission has such information in its records.
SECTION 47.04. The Department of Public Safety, the
Employees Retirement System of Texas, the Teacher Retirement System
of Texas, and the Texas Workforce Commission shall provide
information to the comptroller as required by Subsection (a),
Section 411.0111, and Subsection (a), Section 821.010, Government
Code, and Subsection (a), Section 301.086, Labor Code, as amended
by this article, beginning in 2016.
ARTICLE 48. AD VALOREM TAXATION OF CERTAIN STORED PROPERTY
SECTION 48.01. Subsection (a), Section 11.253, Tax Code, is
amended by amending Subdivision (2) and adding Subdivisions (5) and
(6) to read as follows:
(2) “Goods-in-transit” means tangible personal
property that:
(A) is acquired in or imported into this state to
be forwarded to another location in this state or outside this
state;
(B) is stored under a contract of bailment by a
public warehouse operator [detained] at one or more public
warehouse facilities [a location] in this state that are not in any
way owned or controlled by [in which] the owner of the personal
property [does not have a direct or indirect ownership interest]
for the account of [assembling, storing, manufacturing,
processing, or fabricating purposes by] the person who acquired or
imported the property;
(C) is transported to another location in this
state or outside this state not later than 175 days after the date
the person acquired the property in or imported the property into
this state; and
(D) does not include oil, natural gas, petroleum
products, aircraft, dealer’s motor vehicle inventory, dealer’s
vessel and outboard motor inventory, dealer’s heavy equipment
inventory, or retail manufactured housing inventory.
(5) “Bailee” and “warehouse” have the meanings
assigned by Section 7.102, Business & Commerce Code.
(6) “Public warehouse operator” means a person that:
(A) is both a bailee and a warehouse; and
(B) stores under a contract of bailment, at one
or more public warehouse facilities, tangible personal property
that is owned by other persons solely for the account of those
persons and not for the operator’s account.
SECTION 48.02. Section 11.253, Tax Code, is amended by
amending Subsections (e) and (h) and adding Subsections (j-1) and
(j-2) to read as follows:
(e) In determining the market value of goods-in-transit
that in the preceding year were [assembled,] stored[, manufactured,
processed, or fabricated] in this state, the chief appraiser shall
exclude the cost of equipment, machinery, or materials that entered
into and became component parts of the goods-in-transit but were
not themselves goods-in-transit or that were not transported to
another location in this state or outside this state before the
expiration of 175 days after the date they were brought into this
state by the property owner or acquired by the property owner in
this state. For component parts held in bulk, the chief appraiser
may use the average length of time a component part was held by the
owner of the component parts during the preceding year at a location
in this state that was not owned by or under the control of the owner
of the component parts in determining whether the component parts
were transported to another location in this state or outside this
state before the expiration of 175 days.
(h) The chief appraiser by written notice delivered to a
property owner who claims an exemption under this section may
require the property owner to provide copies of property records so
the chief appraiser can determine the amount and value of
goods-in-transit and that the location in this state where the
goods-in-transit were detained for storage [assembling, storing,
manufacturing, processing, or fabricating purposes] was not owned
by or under the control of the owner of the goods-in-transit. If
the property owner fails to deliver the information requested in
the notice before the 31st day after the date the notice is
delivered to the property owner, the property owner forfeits the
right to claim or receive the exemption for that year.
(j-1) Notwithstanding Subsection (j) or official action
that was taken under that subsection before October 1, 2011, to tax
goods-in-transit exempt under Subsection (b) and not exempt under
other law, a taxing unit may not tax such goods-in-transit in a tax
year that begins on or after January 1, 2012, unless the governing
body of the taxing unit takes action on or after October 1, 2011, in
the manner required for official action by the governing body, to
provide for the taxation of the goods-in-transit. The official
action to tax the goods-in-transit must be taken before January 1 of
the first tax year in which the governing body proposes to tax
goods-in-transit. Before acting to tax the exempt property, the
governing body of the taxing unit must conduct a public hearing as
required by Section 1-n(d), Article VIII, Texas Constitution. If
the governing body of a taxing unit provides for the taxation of the
goods-in-transit as provided by this subsection, the exemption
prescribed by Subsection (b) does not apply to that unit. The
goods-in-transit remain subject to taxation by the taxing unit
until the governing body of the taxing unit, in the manner required
for official action, rescinds or repeals its previous action to tax
goods-in-transit or otherwise determines that the exemption
prescribed by Subsection (b) will apply to that taxing unit.
(j-2) Notwithstanding Subsection (j-1), if under Subsection
(j) the governing body of a taxing unit, before October 1, 2011,
took action to provide for the taxation of goods-in-transit and
pledged the taxes imposed on the goods-in-transit for the payment
of a debt of the taxing unit, the tax officials of the taxing unit
may continue to impose the taxes against the goods-in-transit until
the debt is discharged, if cessation of the imposition would impair
the obligation of the contract by which the debt was created.
SECTION 48.03. Subdivision (2), Subsection (a), Section
11.253, Tax Code, as amended by this article, applies only to an ad
valorem tax year that begins on or after January 1, 2012.
SECTION 48.04. (a) Except as provided by Subsection (b) of
this section, this article takes effect January 1, 2012.
(b) Section 48.02 of this article takes effect October 1,
2011.
ARTICLE 49. FISCAL MATTERS CONCERNING ADVANCED PLACEMENT
SECTION 49.01. Subsection (h), Section 28.053, Education
Code, is amended to read as follows:
(h) The commissioner may enter into agreements with the
college board and the International Baccalaureate Organization to
pay for all examinations taken by eligible public school students.
An eligible student is a student [one] who:
(1) takes a college advanced placement or
international baccalaureate course at a public school or who is
recommended by the student’s principal or teacher to take the test;
and
(2) demonstrates financial need as determined in
accordance with guidelines adopted by the board that are consistent
with the definition of financial need adopted by the college board
or the International Baccalaureate Organization.
ARTICLE 50. FISCAL MATTERS CONCERNING TUITION EXEMPTIONS
SECTION 50.01. Section 54.214, Education Code, is amended
by amending Subsection (c) and adding Subsection (c-1) to read as
follows:
(c) To be eligible for an exemption under this section, a
person must:
(1) be a resident of this state;
(2) be a school employee serving in any capacity;
(3) for the initial term or semester for which the
person receives an exemption under this section, have worked as an
educational aide for at least one school year during the five years
preceding that term or semester;
(4) establish financial need as determined by
coordinating board rule;
(5) be enrolled at the institution of higher education
granting the exemption in courses required for teacher
certification in one or more subject areas determined by the Texas
Education Agency to be experiencing a critical shortage of teachers
at the public schools in this state [at the institution of higher
education granting the exemption];
(6) maintain an acceptable grade point average as
determined by coordinating board rule; and
(7) comply with any other requirements adopted by the
coordinating board under this section.
(c-1) Notwithstanding Subsection (c)(5), a person who
previously received a tuition exemption under this section remains
eligible for an exemption if the person:
(1) is enrolled at an institution of higher education
granting the exemption in courses required for teacher
certification; and
(2) meets the eligibility requirements in Subsection
(c) other than Subsection (c)(5).
SECTION 50.02. The change in law made by this article
applies beginning with tuition and fees charged for the 2012 fall
semester. Tuition and fees charged for a term or semester before
the 2012 fall semester are covered by the law in effect during the
term or semester for which the tuition and fees are charged, and the
former law is continued in effect for that purpose.
ARTICLE 51. CLASSIFICATION OF ENTITIES AS ENGAGED IN RETAIL TRADE
FOR PURPOSES OF THE FRANCHISE TAX
SECTION 51.01. Subdivision (12), Section 171.0001, Tax
Code, is amended to read as follows:
(12) “Retail trade” means:
(A) the activities described in Division G of the
1987 Standard Industrial Classification Manual published by the
federal Office of Management and Budget; and
(B) apparel rental activities classified as
Industry 5999 or 7299 of the 1987 Standard Industrial
Classification Manual published by the federal Office of Management
and Budget.
SECTION 51.02. This article applies only to a report
originally due on or after the effective date of this Act.
SECTION 51.03. This article takes effect January 1, 2012.
ARTICLE 52. RETENTION OF CERTAIN FOUNDATION SCHOOL FUND PAYMENTS
SECTION 52.01. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2511 to read as follows:
Sec. 42.2511. AUTHORIZATION FOR CERTAIN DISTRICTS TO RETAIN
ADDITIONAL STATE AID. (a) This section applies only to a school
district that was provided with state aid under former Section
42.2516 for the 2009-2010 or 2010-2011 school year based on the
amount of aid to which the district would have been entitled under
that section if Section 42.2516(g), as it existed on January 1,
2009, applied to determination of the amount to which the district
was entitled for that school year.
(b) Notwithstanding any other law, a district to which this
section applies may retain the state aid provided to the district as
described by Subsection (a).
(c) This section expires September 1, 2013.
SECTION 52.02. It is the intent of the legislature that the
authorization provided by Section 42.2511, Education Code, as added
by this article, to retain state aid described by that section is
not affected by the expiration of that provision on September 1,
2013.
ARTICLE 53. THE STATE COMPRESSION PERCENTAGE
SECTION 53.01. Section 42.2516, Education Code, is amended
by adding Subsection (b-2) to read as follows:
(b-2) If a school district adopts a maintenance and
operations tax rate that is below the rate equal to the product of
the state compression percentage multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year,
the commissioner shall reduce the district’s entitlement under this
section in proportion to the amount by which the adopted rate is
less than the rate equal to the product of the state compression
percentage multiplied by the rate adopted by the district for the
2005 tax year. The reduction required by this subsection applies
beginning with the maintenance and operations tax rate adopted for
the 2009 tax year.
ARTICLE 54. TEXAS GUARANTEED STUDENT LOAN CORPORATION; BOARD OF
DIRECTORS
SECTION 54.01. Subsections (a) and (b), Section 57.13,
Education Code, are amended to read as follows:
(a) The corporation is governed by a board of nine [11]
directors in accordance with this section.
(b) The governor, with the advice and consent of the senate,
shall appoint the [10] members of [to] the board as follows:
(1) four [five] members who must have knowledge of or
experience in finance, including management of funds or business
operations;
(2) one member who must be a student enrolled at a
postsecondary educational institution for the number of credit
hours required by the institution to be classified as a full-time
student of the institution; and
(3) four members who must be members of the faculty or
administration of a [an eligible] postsecondary educational
institution that is an eligible institution for purposes of the
Higher Education Act of 1965, as amended[, as defined by Section
57.46].
SECTION 54.02. Section 57.17, Education Code, is amended to
read as follows:
Sec. 57.17. OFFICERS. The governor shall designate the
chairman from among the board’s membership. The board shall elect
from among its members a [chairman,] vice-chairman[,] and other
officers that the board considers necessary. The chairman and
vice-chairman serve for a term of one year and may be redesignated
or reelected, as applicable.
SECTION 54.03. Subsection (d), Section 57.13, Education
Code, is repealed.
ARTICLE 55. FISCAL MATTERS CONCERNING LEASES OF PUBLIC LAND FOR
MINERAL DEVELOPMENT
SECTION 55.01. Subsections (a) and (c), Section 85.66,
Education Code, are amended to read as follows:
(a) If oil or other minerals are developed on any of the
lands leased by the board, the royalty or money as stipulated in the
sale shall be paid to the general land office at Austin on or before
the last day of each month for the preceding month during the life
of the rights purchased, and shall be set aside [in the state
treasury] as specified in Section 85.70 [of this code]. The royalty
or money paid to the general land office shall be accompanied by the
sworn statement of the owner, manager, or other authorized agent
showing the gross amount of oil, gas, sulphur, mineral ore, and
other minerals produced and saved since the last report, the amount
of oil, gas, sulphur, mineral ore, and other minerals produced and
sold off the premises, and the market value of the oil, gas,
sulphur, mineral ore, and other minerals, together with a copy of
all daily gauges, or vats, tanks, gas meter readings, pipeline
receipts, gas line receipts and other checks and memoranda of the
amounts produced and put into pipelines, tanks, vats, or pool and
gas lines, gas storage, other places of storage, and other means of
transportation.
(c) The commissioner of the general land office shall tender
to the board on or before the 10th day of each month a report of all
receipts that are collected from the lease or sale of oil, gas,
sulphur, mineral ore, and other minerals and that are deposited
[turned into the state treasury,] as provided by Section 85.70
during [of this code, of] the preceding month.
SECTION 55.02. Section 85.69, Education Code, is amended to
read as follows:
Sec. 85.69. PAYMENTS; DISPOSITION. Payments under this
subchapter shall be made to the commissioner of the general land
office at Austin, who shall transmit to the board [comptroller] all
royalties, lease fees, rentals for delay in drilling or mining, and
all other payments, including all filing assignments and
relinquishment fees, to be deposited [in the state treasury] as
provided by Section 85.70 [of this code].
SECTION 55.03. Section 85.70, Education Code, is amended to
read as follows:
Sec. 85.70. CERTAIN MINERAL LEASES; DISPOSITION OF MONEY;
SPECIAL FUNDS; INVESTMENT. (a) Except as provided by Subsection
(c) [of this section], all money received under and by virtue of
this subchapter shall be deposited in [the state treasury to the
credit of] a special fund managed by the board to be known as The
Texas A&M University System Special Mineral Investment Fund. Money
in the fund is considered to be institutional funds, as defined by
Section 51.009, of the system and its component institutions. The
[With the approval of the comptroller, the board of regents of The
Texas A&M University System may appoint one or more commercial
banks, depository trust companies, or other entities to serve as
custodian or custodians of the Special Mineral Investment Fund’s
securities with authority to hold the money realized from those
securities pending completion of an investment transaction if the
money held is reinvested within one business day of receipt in
investments determined by the board of regents. Money not
reinvested within one business day of receipt shall be deposited in
the state treasury not later than the fifth day after the date of
receipt. In the judgment of the board, this] special fund may be
invested so as to produce [an] income which may be expended under
the direction of the board for the general use of any component of
The Texas A&M University System, including erecting permanent
improvements and in payment of expenses incurred in connection with
the administration of this subchapter. The unexpended income
likewise may be invested as [herein] provided by this section.
(b) The income from the investment of the special mineral
investment fund created by [under] Subsection (a) [of this section]
shall be deposited in [to the credit of] a fund managed by the board
to be known as The Texas A&M University System Special Mineral
Income Fund, and is considered to be institutional funds, as
defined by Section 51.009, of the system and its component
institutions [shall be appropriated by the legislature exclusively
for the university system for the purposes herein provided].
(c) The board shall lease for oil, gas, sulphur, or other
mineral development, as prescribed by this subchapter, all or part
of the land under the exclusive control of the board owned by the
State of Texas and acquired for the use of Texas A&M
University–Kingsville and its divisions. Any money received by
the board concerning such land under this subchapter shall be
deposited in [the state treasury to the credit of] a special fund
managed by the board to be known as the Texas A&M
University–Kingsville special mineral fund. Money in the fund is
considered to be institutional funds, as defined by Section 51.009,
of the university and is[,] to be used exclusively for the
university [Texas A&M University–Kingsville] and its branches and
divisions.
(d) All deposits in and investments of the fund under this
section shall be made in accordance with Section 51.0031.
(e) Section 34.017, Natural Resources Code, does not apply
to funds created by this section [Money may not be expended from
this fund except as authorized by the general appropriations act].
SECTION 55.04. Subsection (b), Section 95.36, Education
Code, is amended to read as follows:
(b) Except as provided in Subsection (c) of this section,
any money received by virtue of this section and the income from the
investment of such money shall be deposited in [the State Treasury
to the credit of] a special fund managed by the board to be known as
the Texas State University System special mineral fund. Money in
the fund is considered to be institutional funds, as defined by
Section 51.009, of the system and its component institutions and
is[,] to be used exclusively for those entities. All deposits in
and investments of the fund shall be made in accordance with Section
51.0031. Section 34.017, Natural Resources Code, does not apply to
the fund [the university system and the universities in the system.
However, no money shall ever be expended from this fund except as
authorized by the General Appropriations Act].
SECTION 55.05. Subsection (b), Section 109.61, Education
Code, is amended to read as follows:
(b) Any money received by virtue of this section shall be
deposited in [the state treasury to the credit of] a special fund
managed by the board to be known as the Texas Tech University
special mineral fund. Money in the fund is considered to be
institutional funds, as defined by Section 51.009, of the
university and is[,] to be used exclusively for the university and
its branches and divisions. All deposits in and investments of the
fund shall be made in accordance with Section 51.0031. Section
34.017, Natural Resources Code, does not apply to the fund
[However, no money shall ever be expended from this fund except as
authorized by the general appropriations act].
SECTION 55.06. Subsections (a) and (c), Section 109.75,
Education Code, are amended to read as follows:
(a) If oil or other minerals are developed on any of the
lands leased by the board, the royalty as stipulated in the sale
shall be paid to the general land office in Austin on or before the
last day of each month for the preceding month during the life of
the rights purchased. The royalty payments shall be set aside [in
the state treasury] as specified in Section 109.61 [of this code]
and used as provided in that section.
(c) The commissioner of the general land office shall tender
to the board on or before the 10th day of each month a report of all
receipts that are collected from the lease or sale of oil, gas,
sulphur, or other minerals and that are deposited in [turned into]
the special fund as provided by Section 109.61 [in the state
treasury] during the preceding month.
SECTION 55.07. Subsection (b), Section 109.78, Education
Code, is amended to read as follows:
(b) Payment of all royalties, lease fees, rentals for delay
in drilling or mining, filing fees for assignments and
relinquishments, and all other payments shall be made to the
commissioner of the general land office at Austin. The
commissioner shall transmit all payments received to the board
[comptroller] for deposit to the credit of the Texas Tech
University special mineral fund as provided by Section 109.61.
SECTION 55.08. Section 85.72, Education Code, is repealed.
ARTICLE 56. FOUNDATION SCHOOL PROGRAM FINANCING; CERTAIN TAX
INCREMENT FUND REPORTING MATTERS
SECTION 56.01. (a) This section applies only to a school
district that, before May 1, 2011, received from the commissioner
of education a notice of a reduction in state funding for the
2004-2005, 2005-2006, 2006-2007, 2007-2008, and 2008-2009 school
years based on the district’s reporting related to deposits of
taxes into a tax increment fund under Chapter 311, Tax Code.
(b) Notwithstanding any other law, including Subdivision
(2), Subsection (b), Section 42.302, Education Code, the
commissioner of education shall reduce by one-half the amounts of
the reduction of entitlement amounts computed for purposes of
adjusting entitlement amounts to account for taxes deposited into a
tax increment fund for any of the school years described by
Subsection (a) of this section.
(c) This section expires September 1, 2013.
ARTICLE 57. FISCAL MATTERS RELATING TO PUBLIC SCHOOL FINANCE
SECTION 57.01. Subsection (a), Section 11.158, Education
Code, is amended to read as follows:
(a) The board of trustees of an independent school district
may require payment of:
(1) a fee for materials used in any program in which
the resultant product in excess of minimum requirements becomes, at
the student’s option, the personal property of the student, if the
fee does not exceed the cost of materials;
(2) membership dues in student organizations or clubs
and admission fees or charges for attending extracurricular
activities, if membership or attendance is voluntary;
(3) a security deposit for the return of materials,
supplies, or equipment;
(4) a fee for personal physical education and athletic
equipment and apparel, although any student may provide the
student’s own equipment or apparel if it meets reasonable
requirements and standards relating to health and safety
established by the board;
(5) a fee for items of personal use or products that a
student may purchase at the student’s option, such as student
publications, class rings, annuals, and graduation announcements;
(6) a fee specifically permitted by any other statute;
(7) a fee for an authorized voluntary student health
and accident benefit plan;
(8) a reasonable fee, not to exceed the actual annual
maintenance cost, for the use of musical instruments and uniforms
owned or rented by the district;
(9) a fee for items of personal apparel that become the
property of the student and that are used in extracurricular
activities;
(10) a parking fee or a fee for an identification card;
(11) a fee for a driver training course, not to exceed
the actual district cost per student in the program for the current
school year;
(12) a fee for a course offered for credit that
requires the use of facilities not available on the school premises
or the employment of an educator who is not part of the school’s
regular staff, if participation in the course is at the student’s
option;
(13) a fee for a course offered during summer school,
except that the board may charge a fee for a course required for
graduation only if the course is also offered without a fee during
the regular school year;
(14) a reasonable fee for transportation of a student
who lives within two miles of the school the student attends to and
from that school, except that the board may not charge a fee for
transportation for which the school district receives funds under
Section 42.155(d); [or]
(15) a reasonable fee, not to exceed $50, for costs
associated with an educational program offered outside of regular
school hours through which a student who was absent from class
receives instruction voluntarily for the purpose of making up the
missed instruction and meeting the level of attendance required
under Section 25.092; or
(16) if the district does not receive any funds under
Section 42.155 and does not participate in a county transportation
system for which an allotment is provided under Section 42.155(i),
a reasonable fee for the transportation of a student to and from the
school the student attends.
SECTION 57.02. Effective September 1, 2011, Section 12.106,
Education Code, is amended by amending Subsection (a) and adding
Subsections (a-3) and (a-4) to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 equal to
the greater of:
(1) the percentage specified by Section 42.2516(i)
multiplied by the amount of funding per student in weighted average
daily attendance, excluding enrichment funding under Sections
42.302(a-1)(2) and (3), as they existed on January 1, 2009, that
would have been received for the school during the 2009-2010 school
year under Chapter 42 as it existed on January 1, 2009, and an
additional amount of the percentage specified by Section 42.2516(i)
multiplied by $120 for each student in weighted average daily
attendance; or
(2) the amount of funding per student in weighted
average daily attendance, excluding enrichment funding under
Section 42.302(a), to which the charter holder would be entitled
for the school under Chapter 42 if the school were a school district
without a tier one local share for purposes of Section 42.253 and
without any local revenue for purposes of Section 42.2516.
(a-3) In determining funding for an open-enrollment charter
school under Subsection (a), the commissioner shall apply the
regular program adjustment factor provided under Section 42.101 to
calculate the regular program allotment to which a charter school
is entitled.
(a-4) Subsection (a-3) and this subsection expire September
1, 2015.
SECTION 57.03. Effective September 1, 2017, Subsection (a),
Section 12.106, Education Code, is amended to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 equal to
[the greater of:
[(1) the amount of funding per student in weighted
average daily attendance, excluding enrichment funding under
Sections 42.302(a-1)(2) and (3), as they existed on January 1,
2009, that would have been received for the school during the
2009-2010 school year under Chapter 42 as it existed on January 1,
2009, and an additional amount of $120 for each student in weighted
average daily attendance; or
[(2)] the amount of funding per student in weighted
average daily attendance, excluding enrichment funding under
Section 42.302(a), to which the charter holder would be entitled
for the school under Chapter 42 if the school were a school district
without a tier one local share for purposes of Section 42.253 [and
without any local revenue for purposes of Section 42.2516].
SECTION 57.04. Effective September 1, 2011, Section 21.402,
Education Code, is amended by amending Subsections (a), (b), (c),
and (c-1) and adding Subsection (i) to read as follows:
(a) Except as provided by Subsection (d)[, (e),] or (f), a
school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee’s level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
“MS” is the minimum monthly salary;
“SF” is the applicable salary factor specified by Subsection
(c); and
“FS” is the amount, as determined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
42.101(a) or (b) for a school district with a maintenance and
operations tax rate at least equal to the state maximum compressed
tax rate, as defined by Section 42.101(a) [state and local funds per
weighted student, including funds provided under Section 42.2516,
available to a district eligible to receive state assistance under
Section 42.302 with a maintenance and operations tax rate per $100
of taxable value equal to the product of the state compression
percentage, as determined under Section 42.2516, multiplied by
$1.50, except that the amount of state and local funds per weighted
student does not include the amount attributable to the increase in
the guaranteed level made by Chapter 1187, Acts of the 77th
Legislature, Regular Session, 2001].
(b) Not later than June 1 of each year, the commissioner
shall determine the basic allotment and resulting monthly salaries
to be paid by school districts as provided by Subsection (a) [amount
of state and local funds per weighted student available, for
purposes of Subsection (a), to a district described by that
subsection for the following school year].
(c) The salary factors per step are as follows:

0 1 2 3 4

.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]

5 6 7 8 9

.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]

10 11 12 13 14

.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]

15 16 17 18 19

.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]

.8854 [1.009]
(c-1) Notwithstanding Subsections [Subsection] (a) and
(b)[, for the 2009-2010 and 2010-2011 school years], each school
district shall pay a monthly salary to [increase the monthly salary
of] each classroom teacher, full-time speech pathologist,
full-time librarian, full-time counselor certified under
Subchapter B, and full-time school nurse that is at least equal to
the following monthly salary or the monthly salary determined by
the commissioner under Subsections (a) and (b), whichever is [by
the] greater [of]:

Years of Monthly

Experience Salary

0 2,732

1 2,791

2 2,849

3 2,908

4 3,032

5 3,156

6 3,280

7 3,395

8 3,504

9 3,607

10 3,704

11 3,796

12 3,884

13 3,965

14 4,043

15 4,116

16 4,186

17 4,251

18 4,313

19 4,372

20 & Over 4,427
[(1) $80; or
[(2) the maximum uniform amount that, when combined
with any resulting increases in the amount of contributions made by
the district for social security coverage for the specified
employees or by the district on behalf of the specified employees
under Section 825.405, Government Code, may be provided using an
amount equal to the product of $60 multiplied by the number of
students in weighted average daily attendance in the school during
the 2009-2010 school year.]
(i) Not later than January 1, 2013, the commissioner shall
submit to the governor, the lieutenant governor, the speaker of the
house of representatives, and the presiding officer of each
legislative standing committee with primary jurisdiction over
primary and secondary education a written report that evaluates and
provides recommendations regarding the salary schedule. This
subsection expires September 1, 2013.
SECTION 57.05. Effective September 1, 2017, Section 21.402,
Education Code, is amended by amending Subsection (a) and adding
Subsection (e-1) to read as follows:
(a) Except as provided by Subsection (d), (e-1) [(e)], or
(f), a school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee’s level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
“MS” is the minimum monthly salary;
“SF” is the applicable salary factor specified by Subsection
(c); and
“FS” is the amount, as determined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
42.101(a) or (b) for a school district with a maintenance and
operations tax rate at least equal to the state maximum compressed
tax rate, as defined by Section 42.101(a) [state and local funds per
weighted student, including funds provided under Section 42.2516,
available to a district eligible to receive state assistance under
Section 42.302 with a maintenance and operations tax rate per $100
of taxable value equal to the product of the state compression
percentage, as determined under Section 42.2516, multiplied by
$1.50, except that the amount of state and local funds per weighted
student does not include the amount attributable to the increase in
the guaranteed level made by Chapter 1187, Acts of the 77th
Legislature, Regular Session, 2001].
(e-1) If the minimum monthly salary determined under
Subsection (a) for a particular level of experience is less than the
minimum monthly salary for that level of experience in the
preceding year, the minimum monthly salary is the minimum monthly
salary for the preceding year.
SECTION 57.06. Section 41.002, Education Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A school district may not have a wealth per student that
exceeds:
(1) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to a district with maintenance and operations tax revenue
per cent of tax effort equal to the maximum amount provided per cent
under Section 42.101(a) or (b) [42.101], for the district’s
maintenance and operations tax effort equal to or less than the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year;
(2) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, for the first six cents by which the district’s maintenance
and operations tax rate exceeds the rate equal to the product of the
state compression percentage, as determined under Section 42.2516,
multiplied by the maintenance and operations tax rate adopted by
the district for the 2005 tax year, subject to Section 41.093(b-1);
or
(3) $319,500, for the district’s maintenance and
operations tax effort that exceeds the first six cents by which the
district’s maintenance and operations tax effort exceeds the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year.
(a-1) Notwithstanding Subsection (a), a school district
that imposed a maintenance and operations tax for the 2010 tax year
at the maximum rate permitted under Section 45.003 may not have a
wealth per student that exceeds $339,500 for the district’s
maintenance and operations tax effort described by Subsection
(a)(3). This subsection expires September 1, 2012.
SECTION 57.07. Effective September 1, 2011, the heading to
Section 42.101, Education Code, is amended to read as follows:
Sec. 42.101. BASIC AND REGULAR PROGRAM ALLOTMENTS
[ALLOTMENT].
SECTION 57.08. Effective September 1, 2011, Section 42.101,
Education Code, is amended by amending Subsections (a) and (b) and
adding Subsections (c), (c-1), (c-2), and (c-3) to read as follows:
(a) The basic [For each student in average daily attendance,
not including the time students spend each day in special education
programs in an instructional arrangement other than mainstream or
career and technology education programs, for which an additional
allotment is made under Subchapter C, a district is entitled to an]
allotment is an amount equal to the lesser of $4,765 or the amount
that results from the following formula:
A = $4,765 X (DCR/MCR)
where:
“A” is the resulting amount for [allotment to which] a
district [is entitled];
“DCR” is the district’s compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year; and
“MCR” is the state maximum compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by $1.50.
(b) A greater amount for any school year for the basic
allotment under Subsection (a) may be provided by appropriation.
(c) A school district is entitled to a regular program
allotment equal to the amount that results from the following
formula:
RPA = ADA X AA X RPAF
where:
“RPA” is the regular program allotment to which the district
is entitled;
“ADA” is the number of students in average daily attendance
in a district, not including the time students spend each day in
special education programs in an instructional arrangement other
than mainstream or career and technology education programs, for
which an additional allotment is made under Subchapter C;
“AA” is the district’s adjusted basic allotment, as
determined under Section 42.102 and, if applicable, as further
adjusted under Section 42.103; and
“RPAF” is the regular program adjustment factor.
(c-1) Except as provided by Subsection (c-2), the regular
program adjustment factor (“RPAF”) is 0.9239 for the 2011-2012
school year and 0.98 for the 2012-2013 school year.
(c-2) For a school district that does not receive funding
under Section 42.2516 for the 2011-2012 school year, the
commissioner may set the regular program adjustment factor (“RPAF”)
at 0.95195 for the 2011-2012 and 2012-2013 school years if the
district demonstrates that funding reductions as a result of
adjustments to the regular program allotment made by S.B. No. 1,
Acts of the 82nd Legislature, 1st Called Session, 2011, will result
in a hardship to the district in the 2011-2012 school year.
Notwithstanding any other provision of this subsection, the
commissioner shall adjust the regular program adjustment factor
(“RPAF”) for the 2012-2013 school year for a school district whose
regular program adjustment factor is set in accordance with this
subsection to ensure that the total amount of state and local
revenue in the combined 2011-2012 and 2012-2013 school years does
not differ from the amount the district would have received if the
district’s regular program adjustment factor had not been set in
accordance with this subsection. A determination by the
commissioner under this subsection is final and may not be
appealed.
(c-3) The regular program adjustment factor (“RPAF”) is
0.98 for the 2013-2014 and 2014-2015 school years or a greater
amount established by appropriation, not to exceed 1.0. This
subsection and Subsections (c), (c-1), and (c-2) expire September
1, 2015.
SECTION 57.09. Effective September 1, 2015, Section 42.101,
Education Code, is amended to read as follows:
Sec. 42.101. BASIC ALLOTMENT. (a) For each student in
average daily attendance, not including the time students spend
each day in special education programs in an instructional
arrangement other than mainstream or career and technology
education programs, for which an additional allotment is made under
Subchapter C, a district is entitled to an allotment equal to the
lesser of $4,765 or the amount that results from the following
formula:
A = $4,765 X (DCR/MCR)
where:
“A” is the allotment to which a district is entitled;
“DCR” is the district’s compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year; and
“MCR” is the state maximum compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by $1.50.
(b) A greater amount for any school year may be provided by
appropriation.
SECTION 57.10. Effective September 1, 2011, Section 42.105,
Education Code, is amended to read as follows:
Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
Sections 42.101, 42.102, and 42.103, a school district that has
fewer than 130 students in average daily attendance shall be
provided a regular program [an adjusted basic] allotment on the
basis of 130 students in average daily attendance if it offers a
kindergarten through grade 12 program and has preceding or current
year’s average daily attendance of at least 90 students or is 30
miles or more by bus route from the nearest high school district. A
district offering a kindergarten through grade 8 program whose
preceding or current year’s average daily attendance was at least
50 students or which is 30 miles or more by bus route from the
nearest high school district shall be provided a regular program
[an adjusted basic] allotment on the basis of 75 students in average
daily attendance. An average daily attendance of 60 students shall
be the basis of providing the regular program [adjusted basic]
allotment if a district offers a kindergarten through grade 6
program and has preceding or current year’s average daily
attendance of at least 40 students or is 30 miles or more by bus
route from the nearest high school district.
SECTION 57.11. Effective September 1, 2015, Section 42.105,
Education Code, is amended to read as follows:
Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
Sections 42.101, 42.102, and 42.103, a school district that has
fewer than 130 students in average daily attendance shall be
provided an adjusted basic allotment on the basis of 130 students in
average daily attendance if it offers a kindergarten through grade
12 program and has preceding or current year’s average daily
attendance of at least 90 students or is 30 miles or more by bus
route from the nearest high school district. A district offering a
kindergarten through grade 8 program whose preceding or current
year’s average daily attendance was at least 50 students or which is
30 miles or more by bus route from the nearest high school district
shall be provided an adjusted basic allotment on the basis of 75
students in average daily attendance. An average daily attendance
of 60 students shall be the basis of providing the adjusted basic
allotment if a district offers a kindergarten through grade 6
program and has preceding or current year’s average daily
attendance of at least 40 students or is 30 miles or more by bus
route from the nearest high school district.
SECTION 57.12. Subsection (c), Section 42.152, Education
Code, is amended to read as follows:
(c) Funds allocated under this section shall be used to fund
supplemental programs and services designed to eliminate any
disparity in performance on assessment instruments administered
under Subchapter B, Chapter 39, or disparity in the rates of high
school completion between students at risk of dropping out of
school, as defined by Section 29.081, and all other students.
Specifically, the funds, other than an indirect cost allotment
established under State Board of Education rule, which may not
exceed 45 percent, may be used to meet the costs of providing a
compensatory, intensive, or accelerated instruction program under
Section 29.081 or a disciplinary [an] alternative education program
established under Section 37.008, to pay the costs associated with
placing students in a juvenile justice alternative education
program established under Section 37.011, or to support a program
eligible under Title I of the Elementary and Secondary Education
Act of 1965, as provided by Pub. L. No. 103-382 and its subsequent
amendments, and by federal regulations implementing that Act, at a
campus at which at least 40 percent of the students are
educationally disadvantaged. In meeting the costs of providing a
compensatory, intensive, or accelerated instruction program under
Section 29.081, a district’s compensatory education allotment
shall be used for costs supplementary to the regular education
program, such as costs for program and student evaluation,
instructional materials and equipment and other supplies required
for quality instruction, supplemental staff expenses, salary for
teachers of at-risk students, smaller class size, and
individualized instruction. A home-rule school district or an
open-enrollment charter school must use funds allocated under
Subsection (a) for a purpose authorized in this subsection but is
not otherwise subject to Subchapter C, Chapter 29. For
[Notwithstanding any other provisions of this section:
[(1) to ensure that a sufficient amount of the funds
allotted under this section are available to supplement
instructional programs and services, no more than 18 percent of the
funds allotted under this section may be used to fund disciplinary
alternative education programs established under Section 37.008;
[(2) the commissioner may waive the limitations of
Subdivision (1) upon an annual petition, by a district’s board and a
district’s site-based decision making committee, presenting the
reason for the need to spend supplemental compensatory education
funds on disciplinary alternative education programs under Section
37.008, provided that:
[(A) the district in its petition reports the
number of students in each grade level, by demographic subgroup,
not making satisfactory progress under the state’s assessment
system; and
[(B) the commissioner makes the waiver request
information available annually to the public on the agency’s
website; and
[(3) for] purposes of this subsection, a program
specifically designed to serve students at risk of dropping out of
school, as defined by Section 29.081, is considered to be a program
supplemental to the regular education program, and a district may
use its compensatory education allotment for such a program.
SECTION 57.13. Subchapter C, Chapter 42, Education Code, is
amended by adding Section 42.1541 to read as follows:
Sec. 42.1541. INDIRECT COST ALLOTMENTS. (a) The State
Board of Education shall by rule increase the indirect cost
allotments established under Sections 42.151(h), 42.152(c),
42.153(b), and 42.154(a-1) and (c) and in effect for the 2010-2011
school year in proportion to the average percentage reduction in
total state and local maintenance and operations revenue provided
under this chapter for the 2011-2012 school year as a result of S.B.
Nos. 1 and 2, Acts of the 82nd Legislature, 1st Called Session,
2011.
(b) To the extent necessary to permit the board to comply
with this section, the limitation on the percentage of the indirect
cost allotment prescribed by Section 42.152(c) does not apply.
(c) The board shall take the action required by Subsection
(a) not later than the date that permits the increased indirect cost
allotments to apply beginning with the 2011-2012 school year.
SECTION 57.14. Effective September 1, 2011, Subsection (a),
Section 42.251, Education Code, is amended to read as follows:
(a) The sum of the regular program [basic] allotment under
Subchapter B and the special allotments under Subchapter C,
computed in accordance with this chapter, constitute the tier one
allotments. The sum of the tier one allotments and the guaranteed
yield allotments under Subchapter F, computed in accordance with
this chapter, constitute the total cost of the Foundation School
Program.
SECTION 57.15. Effective September 1, 2015, Subsection (a),
Section 42.251, Education Code, is amended to read as follows:
(a) The sum of the basic allotment under Subchapter B and
the special allotments under Subchapter C, computed in accordance
with this chapter, constitute the tier one allotments. The sum of
the tier one allotments and the guaranteed yield allotments under
Subchapter F, computed in accordance with this chapter, constitute
the total cost of the Foundation School Program.
SECTION 57.16. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2514 to read as follows:
Sec. 42.2514. ADDITIONAL STATE AID FOR TAX INCREMENT
FINANCING PAYMENTS. For each school year, a school district,
including a school district that is otherwise ineligible for state
aid under this chapter, is entitled to state aid in an amount equal
to the amount the district is required to pay into the tax increment
fund for a reinvestment zone under Section 311.013(n), Tax Code.
SECTION 57.17. Effective September 1, 2011, Section
42.2516, Education Code, is amended by amending Subsections (a),
(b), (d), and (f-2) and adding Subsection (i) to read as follows:
(a) In this title [section], “state compression percentage”
means the percentage[, as determined by the commissioner,] of a
school district’s adopted maintenance and operations tax rate for
the 2005 tax year that serves as the basis for state funding [for
tax rate reduction under this section]. If the state compression
percentage is not established by appropriation for a school year,
the [The] commissioner shall determine the state compression
percentage for each school year based on the percentage by which a
district is able to reduce the district’s maintenance and
operations tax rate for that year, as compared to the district’s
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for distribution under this
section for that year from the property tax relief fund established
under Section 403.109, Government Code, or from another funding
source available for school district property tax relief.
(b) Notwithstanding any other provision of this title, a
school district that imposes a maintenance and operations tax at a
rate at least equal to the product of the state compression
percentage multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year is entitled to at
least the amount of state revenue necessary to provide the district
with the sum of:
(1) the percentage specified by Subsection (i) of the
amount, as calculated under Subsection (e), [the amount] of state
and local revenue per student in weighted average daily attendance
for maintenance and operations that the district would have
received during the 2009-2010 school year under Chapter 41 and this
chapter, as those chapters existed on January 1, 2009, at a
maintenance and operations tax rate equal to the product of the
state compression percentage for that year multiplied by the
maintenance and operations tax rate adopted by the district for the
2005 tax year;
(2) the percentage specified by Subsection (i) of an
amount equal to the product of $120 multiplied by the number of
students in weighted average daily attendance in the district; and
(3) [an amount equal to the amount the district is
required to pay into the tax increment fund for a reinvestment zone
under Section 311.013(n), Tax Code, in the current tax year; and
[(4)] any amount to which the district is entitled
under Section 42.106.
(d) In determining the amount to which a district is
entitled under Subsection (b)(1), the commissioner shall:
(1) include the percentage specified by Subsection (i)
of any amounts received by the district during the 2008-2009 school
year under Rider 86, page III-23, Chapter 1428 (H.B. 1), Acts of the
80th Legislature, Regular Session, 2007 (the General
Appropriations Act); and
(2) for a school district that paid tuition under
Section 25.039 during the 2008-2009 school year, reduce the amount
to which the district is entitled by the amount of tuition paid
during that school year.
(f-2) The rules adopted by the commissioner under
Subsection (f-1) must:
(1) require the commissioner to determine, as if this
section did not exist, the effect under Chapter 41 and this chapter
of a school district’s action described by Subsection (f-1)(1),
(2), (3), or (4) on the total state revenue to which the district
would be entitled or the cost to the district of purchasing
sufficient attendance credits to reduce the district’s wealth per
student to the equalized wealth level; and
(2) require an increase or reduction in the amount of
state revenue to which a school district is entitled under
Subsection (b)(1) [(b)] that is substantially equivalent to any
change in total state revenue or the cost of purchasing attendance
credits that would apply to the district if this section did not
exist.
(i) The percentage to be applied for purposes of Subsections
(b)(1) and (2) and Subsection (d)(1) is 100.00 percent for the
2011-2012 school year and 92.35 percent for the 2012-2013 school
year. For the 2013-2014 school year and each subsequent school
year, the legislature by appropriation shall establish the
percentage reduction to be applied.
SECTION 57.18. Effective September 1, 2017, the heading to
Section 42.2516, Education Code, is amended to read as follows:
Sec. 42.2516. STATE COMPRESSION PERCENTAGE [ADDITIONAL
STATE AID FOR TAX REDUCTION].
SECTION 57.19. Effective September 1, 2017, Subsection (a),
Section 42.2516, Education Code, is amended to read as follows:
(a) In this title [section], “state compression percentage”
means the percentage[, as determined by the commissioner,] of a
school district’s adopted maintenance and operations tax rate for
the 2005 tax year that serves as the basis for state funding [for
tax rate reduction under this section]. If the state compression
percentage is not established by appropriation for a school year,
the [The] commissioner shall determine the state compression
percentage for each school year based on the percentage by which a
district is able to reduce the district’s maintenance and
operations tax rate for that year, as compared to the district’s
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for [distribution under
this section for] that year from the property tax relief fund
established under Section 403.109, Government Code, or from another
funding source available for school district property tax relief.
SECTION 57.20. Effective September 1, 2011, Subsection (a),
Section 42.25161, Education Code, is amended to read as follows:
(a) The commissioner shall provide South Texas Independent
School District with the amount of state aid necessary to ensure
that the district receives an amount of state and local revenue per
student in weighted average daily attendance that is at least the
percentage specified by Section 42.2516(i) of $120 greater than the
amount the district would have received per student in weighted
average daily attendance during the 2009-2010 school year under
this chapter, as it existed on January 1, 2009, at a maintenance and
operations tax rate equal to the product of the state compression
percentage multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year, provided that the
district imposes a maintenance and operations tax at that rate.
SECTION 57.21. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2525 to read as follows:
Sec. 42.2525. ADJUSTMENTS FOR CERTAIN DISTRICTS RECEIVING
FEDERAL IMPACT AID. The commissioner is granted the authority to
ensure that school districts receiving federal impact aid due to the
presence of a military installation or significant concentrations
of military students do not receive more than an eight percent
reduction should the federal government reduce appropriations to
those schools.
SECTION 57.22. Effective September 1, 2011, Subsection (h),
Section 42.253, Education Code, is amended to read as follows:
(h) If the amount appropriated for the Foundation School
Program for the second year of a state fiscal biennium is less than
the amount to which school districts and open-enrollment charter
schools are entitled for that year, the commissioner shall certify
the amount of the difference to the Legislative Budget Board not
later than January 1 of the second year of the state fiscal
biennium. The Legislative Budget Board shall propose to the
legislature that the certified amount be transferred to the
foundation school fund from the economic stabilization fund and
appropriated for the purpose of increases in allocations under this
subsection. If the legislature fails during the regular session to
enact the proposed transfer and appropriation and there are not
funds available under Subsection (j), the commissioner shall adjust
[reduce] the total amounts due to each school district and
open-enrollment charter school under this chapter and the total
amounts necessary for each school district to comply with the
requirements of Chapter 41 [amount of state funds allocated to each
district] by an amount determined by applying to each district and
school, including a district receiving funds under Section 42.2516,
the same percentage adjustment to the total amount of state and
local revenue due to the district or school under this chapter and
Chapter 41 so that the total amount of the adjustment to all
districts and schools [a method under which the application of the
same number of cents of increase in tax rate in all districts
applied to the taxable value of property of each district, as
determined under Subchapter M, Chapter 403, Government Code,]
results in an amount [a total levy] equal to the total adjustment
necessary [reduction]. The following fiscal year:
(1) [,] a district’s or school’s entitlement under
this section is increased by an amount equal to the adjustment
[reduction] made under this subsection; and
(2) the amount necessary for a district to comply with
the requirements of Chapter 41 is reduced by an amount necessary to
ensure the district’s full recovery of the adjustment made under
this subsection.
SECTION 57.23. Effective September 1, 2017, Subsection (h),
Section 42.253, Education Code, is amended to read as follows:
(h) If the amount appropriated for the Foundation School
Program for the second year of a state fiscal biennium is less than
the amount to which school districts and open-enrollment charter
schools are entitled for that year, the commissioner shall certify
the amount of the difference to the Legislative Budget Board not
later than January 1 of the second year of the state fiscal
biennium. The Legislative Budget Board shall propose to the
legislature that the certified amount be transferred to the
foundation school fund from the economic stabilization fund and
appropriated for the purpose of increases in allocations under this
subsection. If the legislature fails during the regular session to
enact the proposed transfer and appropriation and there are not
funds available under Subsection (j), the commissioner shall adjust
[reduce] the total amounts due to each school district and
open-enrollment charter school under this chapter and the total
amounts necessary for each school district to comply with the
requirements of Chapter 41 [amount of state funds allocated to each
district] by an amount determined by applying to each district and
school the same percentage adjustment to the total amount of state
and local revenue due to the district or school under this chapter
and Chapter 41 so that the total amount of the adjustment to all
districts and schools [a method under which the application of the
same number of cents of increase in tax rate in all districts
applied to the taxable value of property of each district, as
determined under Subchapter M, Chapter 403, Government Code,]
results in an amount [a total levy] equal to the total adjustment
necessary [reduction]. The following fiscal year:
(1) [,] a district’s or school’s entitlement under
this section is increased by an amount equal to the adjustment
[reduction] made under this subsection; and
(2) the amount necessary for a district to comply with
the requirements of Chapter 41 is reduced by an amount necessary to
ensure a district’s full recovery of the adjustment made under this
subsection.
SECTION 57.24. Section 42.258, Education Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) If a school district has received an overallocation of
state funds, the agency shall, by withholding from subsequent
allocations of state funds for the current or subsequent school
year or by requesting and obtaining a refund, recover from the
district an amount equal to the overallocation.
(a-1) Notwithstanding Subsection (a), the agency may
recover an overallocation of state funds over a period not to exceed
the subsequent five school years if the commissioner determines
that the overallocation was the result of exceptional circumstances
reasonably caused by statutory changes to Chapter 41 or 46 or this
chapter and related reporting requirements.
SECTION 57.25. Subsection (b), Section 42.260, Education
Code, is amended to read as follows:
(b) For each year, the commissioner shall certify to each
school district or participating charter school the amount of[:
[(1)] additional funds to which the district or school
is entitled due to the increase made by H.B. No. 3343, Acts of the
77th Legislature, Regular Session, 2001, to:
(1) [(A)] the equalized wealth level under Section
41.002; or
(2) [(B)] the guaranteed level of state and local
funds per weighted student per cent of tax effort under Section
42.302[; or
[(2) additional state aid to which the district or
school is entitled under Section 42.2513].
SECTION 57.26. Section 42.302, Education Code, is amended
by adding Subsection (a-3) to read as follows:
(a-3) Notwithstanding Subsections (a) and (a-1), for a
school district that imposed a maintenance and operations tax for
the 2010 tax year at the maximum rate permitted under Section
45.003, the dollar amount guaranteed level of state and local funds
per weighted student per cent of tax effort (“GL”) for the
district’s maintenance and operations tax effort described by
Subsection (a-1)(2) is $33.95. This subsection expires September
1, 2012.
SECTION 57.27. Section 44.004, Education Code, is amended
by adding Subsection (g-1) to read as follows:
(g-1) If the rate calculated under Subsection
(c)(5)(A)(ii)(b) decreases after the publication of the notice
required by this section, the president is not required to publish
another notice or call another meeting to discuss and adopt the
budget and the proposed lower tax rate.
SECTION 57.28. Subsection (a), Section 26.05, Tax Code, is
amended to read as follows:
(a) The governing body of each taxing unit, before the later
of September 30 or the 60th day after the date the certified
appraisal roll is received by the taxing unit, shall adopt a tax
rate for the current tax year and shall notify the assessor for the
unit of the rate adopted. The tax rate consists of two components,
each of which must be approved separately. The components are:
(1) for a taxing unit other than a school district, the
rate that, if applied to the total taxable value, will impose the
total amount published under Section 26.04(e)(3)(C), less any
amount of additional sales and use tax revenue that will be used to
pay debt service, or, for a school district, the rate calculated
[published] under Section 44.004(c)(5)(A)(ii)(b), Education Code;
and
(2) the rate that, if applied to the total taxable
value, will impose the amount of taxes needed to fund maintenance
and operation expenditures of the unit for the next year.
SECTION 57.29. Effective September 1, 2017, Subsection (i),
Section 26.08, Tax Code, is amended to read as follows:
(i) For purposes of this section, the effective maintenance
and operations tax rate of a school district is the tax rate that,
applied to the current total value for the district, would impose
taxes in an amount that, when added to state funds that would be
distributed to the district under Chapter 42, Education Code, for
the school year beginning in the current tax year using that tax
rate, [including state funds that will be distributed to the
district in that school year under Section 42.2516, Education
Code,] would provide the same amount of state funds distributed
under Chapter 42, Education Code, [including state funds
distributed under Section 42.2516, Education Code,] and
maintenance and operations taxes of the district per student in
weighted average daily attendance for that school year that would
have been available to the district in the preceding year if the
funding elements for Chapters 41 and 42, Education Code, for the
current year had been in effect for the preceding year.
SECTION 57.30. Subsection (n), Section 311.013, Tax Code,
is amended to read as follows:
(n) This subsection applies only to a school district whose
taxable value computed under Section 403.302(d), Government Code,
is reduced in accordance with Subdivision (4) of that
subsection. In addition to the amount otherwise required to be
paid into the tax increment fund, the district shall pay into the
fund an amount equal to the amount by which the amount of taxes the
district would have been required to pay into the fund in the
current year if the district levied taxes at the rate the district
levied in 2005 exceeds the amount the district is otherwise
required to pay into the fund in the year of the reduction. This
additional amount may not exceed the amount the school district
receives in state aid for the current tax year under Section
42.2514, Education Code. The school district shall pay the
additional amount after the district receives the state aid to
which the district is entitled for the current tax year under
Section 42.2514, Education Code.
SECTION 57.31. Effective September 1, 2011, the following
provisions of the Education Code are repealed:
(1) Subsections (c-2), (c-3), and (e), Section 21.402;
(2) Section 42.008; and
(3) Subsections (a-1) and (a-2), Section 42.101.
SECTION 57.32. (a) Effective September 1, 2017, the
following provisions of the Education Code are repealed:
(1) Section 41.0041;
(2) Subsections (b), (b-1), (b-2), (c), (d), (e), (f),
(f-1), (f-2), (f-3), and (i), Section 42.2516;
(3) Section 42.25161;
(4) Subsection (c), Section 42.2523;
(5) Subsection (g), Section 42.2524;
(6) Subsection (c-1), Section 42.253; and
(7) Section 42.261.
(b) Effective September 1, 2017, Subsections (i-1) and (j),
Section 26.08, Tax Code, are repealed.
SECTION 57.33. (a) The speaker of the house of
representatives and the lieutenant governor shall establish a joint
legislative interim committee to conduct a comprehensive study of
the public school finance system in this state.
(b) Not later than January 15, 2013, the committee shall
make recommendations to the 83rd Legislature regarding changes to
the public school finance system.
(c) The committee is dissolved September 1, 2013.
SECTION 57.34. It is the intent of the legislature, between
fiscal year 2014 and fiscal year 2018, to continue to reduce the
amount of Additional State Aid For Tax Reduction (ASATR) to which a
school district is entitled under Section 42.2516, Education Code,
and to increase the basic allotment to which a school district is
entitled under Section 42.101, Education Code.
SECTION 57.35. Except as otherwise provided by this Act,
the changes in law made by this Act to Chapter 42, Education Code,
apply beginning with the 2011-2012 school year.
SECTION 57.36. The change in law made by Subsection (g-1),
Section 44.004, Education Code, as added by this Act, applies
beginning with adoption of a tax rate for the 2011 tax year.
ARTICLE 58. MIXED BEVERAGE TAX REIMBURSEMENTS
SECTION 58.01. Effective September 1, 2013, Subsection (b),
Section 183.051, Tax Code, is amended to read as follows:
(b) The comptroller shall issue to each county described in
Subsection (a) a warrant drawn on the general revenue fund in an
amount appropriated by the legislature that may not be less
[greater] than 10.7143 percent of receipts from permittees within
the county during the quarter and shall issue to each incorporated
municipality described in Subsection (a) a warrant drawn on that
fund in an amount appropriated by the legislature that may not be
less [greater] than 10.7143 percent of receipts from permittees
within the incorporated municipality during the quarter.
ARTICLE 59. GUARANTEE OF OPEN-ENROLLMENT CHARTER SCHOOL BONDS BY
PERMANENT SCHOOL FUND
SECTION 59.01. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.135 to read as follows:
Sec. 12.135. DESIGNATION AS CHARTER DISTRICT FOR PURPOSES
OF BOND GUARANTEE. (a) On the application of the charter holder,
the commissioner may grant designation as a charter district to an
open-enrollment charter school that meets financial standards
adopted by the commissioner. The financial standards must require
an open-enrollment charter school to have an investment grade
credit rating as specified by Section 45.0541.
(b) A charter district may apply for bonds issued under
Chapter 53 for the open-enrollment charter school to be guaranteed
by the permanent school fund as provided by Chapter 45.
SECTION 59.02. Section 45.051, Education Code, is amended
by adding Subdivision (1-a) and amending Subdivision (2) to read as
follows:
(1-a) “Charter district” means an open-enrollment
charter school designated as a charter district under Section
12.135.
(2) “Paying agent” means the financial institution
that is designated by a school district or charter district as its
agent for the payment of the principal of and interest on guaranteed
bonds.
SECTION 59.03. Section 45.052, Education Code, is amended
to read as follows:
Sec. 45.052. GUARANTEE. (a) On approval by the
commissioner, bonds issued under Subchapter A by a school district
or Chapter 53 for a charter district, including refunding bonds,
are guaranteed by the corpus and income of the permanent school
fund.
(b) Notwithstanding any amendment of this subchapter or
other law, the guarantee under this subchapter of school district
or charter district bonds remains in effect until the date those
bonds mature or are defeased in accordance with state law.
SECTION 59.04. Subchapter C, Chapter 45, Education Code, is
amended by adding Section 45.0532 to read as follows:
Sec. 45.0532. LIMITATION ON GUARANTEE OF CHARTER DISTRICT
BONDS. (a) In addition to the general limitation under Section
45.053, the commissioner may not approve charter district bonds for
guarantee under this subchapter in a total amount that exceeds the
percentage of the total available capacity of the guaranteed bond
program that is equal to the percentage of the number of students
enrolled in open-enrollment charter schools in this state compared
to the total number of students enrolled in all public schools in
this state, as determined by the commissioner.
(b) For purposes of Subsection (a), the total available
capacity of the guaranteed bond program is the limit established by
the board under Sections 45.053(d) and 45.0531 minus the total
amount of outstanding guaranteed bonds. Each time the board
increases the limit under Section 45.053(d), the total amount of
charter district bonds that may be guaranteed increases accordingly
under Subsection (a).
(c) Notwithstanding Subsections (a) and (b), the
commissioner may not approve charter district bonds for guarantee
under this subchapter if the guarantee will result in lower bond
ratings for school district bonds for which a guarantee is
requested under this subchapter.
(d) The commissioner may request that the comptroller place
the portion of the permanent school fund committed to the guarantee
of charter district bonds in a segregated account if the
commissioner determines that a separate account is needed to avoid
any negative impact on the bond ratings of school district bonds for
which a guarantee is requested under this subchapter.
(e) A guarantee of charter district bonds must be made in
accordance with this chapter and any applicable federal law.
SECTION 59.05. Section 45.054, Education Code, is amended
to read as follows:
Sec. 45.054. ELIGIBILITY OF SCHOOL DISTRICT BONDS. To be
eligible for approval by the commissioner, school district bonds
must be issued under Subchapter A of this chapter or under
Subchapter A, Chapter 1207, Government Code, to make a deposit
under Subchapter B or C of that chapter, by an accredited school
district.
SECTION 59.06. Subchapter C, Chapter 45, Education Code, is
amended by adding Section 45.0541 to read as follows:
Sec. 45.0541. ELIGIBILITY OF CHARTER DISTRICT BONDS. To be
eligible for approval by the commissioner, charter district bonds
must:
(1) without the guarantee, be rated as investment
grade by a nationally recognized investment rating firm; and
(2) be issued under Chapter 53.
SECTION 59.07. Subsections (a) and (b), Section 45.055,
Education Code, are amended to read as follows:
(a) A school district or charter district seeking guarantee
of eligible bonds under this subchapter shall apply to the
commissioner using a form adopted by the commissioner for the
purpose. The commissioner may adopt a single form on which a school
district seeking guarantee or credit enhancement of eligible bonds
may apply simultaneously first for guarantee under this subchapter
and then, if that guarantee is rejected, for credit enhancement
under Subchapter I.
(b) An application under Subsection (a) must include:
(1) the name of the school district or charter
district and the principal amount of the bonds to be issued;
(2) the name and address of the district’s paying agent
for those bonds; and
(3) the maturity schedule, estimated interest rate,
and date of the bonds.
SECTION 59.08. Section 45.056, Education Code, is amended
to read as follows:
Sec. 45.056. INVESTIGATION. (a) Following receipt of an
application for the guarantee of bonds, the commissioner shall
conduct an investigation of the applicant school district or
charter district in regard to:
(1) the status of the district’s accreditation; and
(2) the total amount of outstanding guaranteed bonds.
(b) If following the investigation the commissioner is
satisfied that the school district’s bonds should be guaranteed
under this subchapter or provided credit enhancement under
Subchapter I, as applicable, or the charter district’s bonds should
be guaranteed under this subchapter, the commissioner shall endorse
the bonds.
SECTION 59.09. Subsection (b), Section 45.057, Education
Code, is amended to read as follows:
(b) The guarantee is not effective unless the attorney
general approves the bonds under Section 45.005 or 53.40, as
applicable.
SECTION 59.10. Subchapter C, Chapter 45, Education Code, is
amended by adding Section 45.0571 to read as follows:
Sec. 45.0571. CHARTER DISTRICT BOND GUARANTEE RESERVE FUND.
(a) The charter district bond guarantee reserve fund is a special
fund in the state treasury outside the general revenue fund. The
following amounts shall be deposited in the fund:
(1) money due from a charter district as provided by
Subsection (b); and
(2) interest earned on balances in the fund.
(b) A charter district that has a bond guaranteed as
provided by this subchapter must annually remit to the
commissioner, for deposit in the charter district bond guarantee
reserve fund, an amount equal to 10 percent of the savings to the
charter district that is a result of the lower interest rate on the
bond due to the guarantee by the permanent school fund. The amount
due under this section shall be amortized and paid over the duration
of the bond. Each payment is due on the anniversary of the date the
bond was issued. The commissioner shall adopt rules to determine
the total and annual amounts due under this section.
(c) The commissioner may direct the comptroller to annually
withhold the amount due to the charter district bond guarantee
reserve fund under Subsection (b) for that year from the state funds
otherwise payable to the charter district.
(d) Each year, the commissioner shall:
(1) review the condition of the bond guarantee program
and the amount that must be deposited in the charter district bond
guarantee reserve fund from charter districts; and
(2) determine if charter districts should be required
to submit a greater percentage of the savings resulting from the
guarantee.
(e) The commissioner shall make recommendations to the
legislature based on the review under Subsection (d).
SECTION 59.11. Section 45.058, Education Code, is amended
to read as follows:
Sec. 45.058. NOTICE OF DEFAULT. Immediately following a
determination that a school district or charter district will be or
is unable to pay maturing or matured principal or interest on a
guaranteed bond, but not later than the fifth day before maturity
date, the school district or charter district shall notify the
commissioner.
SECTION 59.12. The heading to Section 45.059, Education
Code, is amended to read as follows:
Sec. 45.059. PAYMENT OF SCHOOL DISTRICT BOND ON DEFAULT
[FROM PERMANENT SCHOOL FUND].
SECTION 59.13. Subsection (a), Section 45.059, Education
Code, is amended to read as follows:
(a) Immediately following receipt of notice under Section
45.058 that a school district will be or is unable to pay maturing
or matured principal or interest on a guaranteed bond, the
commissioner shall instruct the comptroller to transfer from the
appropriate account in the permanent school fund to the district’s
paying agent the amount necessary to pay the maturing or matured
principal or interest.
SECTION 59.14. Subchapter C, Chapter 45, Education Code, is
amended by adding Section 45.0591 to read as follows:
Sec. 45.0591. PAYMENT OF CHARTER DISTRICT BOND ON DEFAULT.
(a) Immediately following receipt of notice under Section 45.058
that a charter district will be or is unable to pay maturing or
matured principal or interest on a guaranteed bond, the
commissioner shall instruct the comptroller to transfer from the
charter district bond guarantee reserve fund created under Section
45.0571 to the district’s paying agent the amount necessary to pay
the maturing or matured principal or interest.
(b) If money in the charter district bond guarantee reserve
fund is insufficient to pay the amount due on a bond under
Subsection (a), the commissioner shall instruct the comptroller to
transfer from the appropriate account in the permanent school fund
to the district’s paying agent the amount necessary to pay the
balance of the unpaid maturing or matured principal or interest.
(c) Immediately following receipt of the funds for payment
of the principal or interest, the paying agent shall pay the amount
due and forward the canceled bond or coupon to the comptroller. The
comptroller shall hold the canceled bond or coupon on behalf of the
fund or funds from which payment was made.
(d) Following full reimbursement to the charter district
bond guarantee reserve fund and the permanent school fund, if
applicable, with interest, the comptroller shall further cancel the
bond or coupon and forward it to the charter district for which
payment was made.
SECTION 59.15. Section 45.060, Education Code, is amended
to read as follows:
Sec. 45.060. BONDS NOT ACCELERATED ON DEFAULT. If a school
district or charter district fails to pay principal or interest on a
guaranteed bond when it matures, other amounts not yet mature are
not accelerated and do not become due by virtue of the school
district’s or charter district’s default.
SECTION 59.16. The heading to Section 45.061, Education
Code, is amended to read as follows:
Sec. 45.061. REIMBURSEMENT OF FUNDS [PERMANENT SCHOOL
FUND].
SECTION 59.17. Section 45.061, Education Code, is amended
by amending Subsections (a) and (b) and adding Subsection (a-1) to
read as follows:
(a) If the commissioner orders payment from the permanent
school fund or the charter district bond guarantee reserve fund on
behalf of a school district or charter district, the commissioner
shall direct the comptroller to withhold the amount paid, plus
interest, from the first state money payable to the school district
or charter district. Except as provided by Subsection (a-1), the
[The] amount withheld shall be deposited to the credit of the
permanent school fund.
(a-1) After the permanent school fund has been reimbursed
for all money paid from the fund as the result of a default of a
charter district bond guaranteed under this subchapter, any
remaining amounts withheld under Subsection (a) shall be deposited
to the credit of the charter district bond guarantee reserve fund.
(b) In accordance with the rules of the board, the
commissioner may authorize reimbursement to the permanent school
fund or charter district bond guarantee reserve fund with interest
in a manner other than that provided by this section.
SECTION 59.18. Section 45.062, Education Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) If a total of two or more payments are made under this
subchapter on charter district bonds and the commissioner
determines that the charter district is acting in bad faith under
the guarantee program under this subchapter, the commissioner may
request the attorney general to institute appropriate legal action
to compel the charter district and its officers, agents, and
employees to comply with the duties required of them by law in
regard to the bonds.
SECTION 59.19. Subdivision (10), Section 53.02, Education
Code, is amended to read as follows:
(10) “Authorized charter school” means an
open-enrollment charter school that holds a charter granted under
Subchapter D, Chapter 12, and includes an open-enrollment charter
school designated as a charter district as provided by Section
12.135.
SECTION 59.20. Section 53.351, Education Code, is amended
by amending Subsection (f) and adding Subsection (f-1) to read as
follows:
(f) Except as provided by Subsection (f-1), a [A] revenue
bond issued under this section is not a debt of the state or any
state agency, political corporation, or political subdivision of
the state and is not a pledge of the faith and credit of any of these
entities. A revenue bond is payable solely from the revenue of the
authorized open-enrollment charter school on whose behalf the bond
is issued. A revenue bond issued under this section must contain on
its face a statement to the effect that:
(1) neither the state nor a state agency, political
corporation, or political subdivision of the state is obligated to
pay the principal of or interest on the bond; and
(2) neither the faith and credit nor the taxing power
of the state or any state agency, political corporation, or
political subdivision of the state is pledged to the payment of the
principal of or interest on the bond.
(f-1) Subsection (f) does not apply to a revenue bond issued
under this section for a charter district if the bond is approved
for guarantee by the permanent school fund under Subchapter C,
Chapter 45.
SECTION 59.21. This article applies only to a bond issued or
refunded on or after the effective date of this Act by an
open-enrollment charter school designated as a charter district
under Section 12.135, Education Code, as added by this article. A
bond issued or refunded by an open-enrollment charter school before
the effective date of this Act is governed by the law in effect
immediately before that date, and that law is continued in effect
for that purpose.
ARTICLE 60. AWARD OF SERVICE PROVIDER CONTRACTS FOR ADULT
EDUCATION PROGRAMS
SECTION 60.01. Subchapter H, Chapter 29, Education Code, is
amended by adding Section 29.2535 to read as follows:
Sec. 29.2535. SERVICE PROVIDER CONTRACTS: COMPETITIVE
PROCUREMENT REQUIREMENT. (a) The agency shall use a competitive
procurement process to award a contract to a service provider of an
adult education program.
(b) The agency shall adopt rules to administer this section.
SECTION 60.02. (a) The change in law made by Subsection
(a), Section 29.2535, Education Code, as added by this article,
applies only to a contract entered into on or after the effective
date of this article.
(b) Not later than August 31, 2012, the Texas Education
Agency shall adopt rules to provide for a competitive procurement
process to award contracts to service providers of adult education
programs as provided by Section 29.2535, Education Code, as added
by this article.
SECTION 60.03. (a) Except as provided by Subsection (b) of
this section, this article takes effect September 1, 2012.
(b) Subsection (b), Section 29.2535, Education Code, as
added by this article, takes effect on the 91st day after the last
day of the legislative session.
ARTICLE 61. STATE VIRTUAL SCHOOL NETWORK
SECTION 61.01. Subsection (a), Section 30A.002, Education
Code, is amended to read as follows:
(a) A student is eligible to enroll in a course provided
through the state virtual school network only if the student:
(1) [is younger than 21 years of age] on September 1 of
the school year:
(A) is younger than 21 years of age; or
(B) is younger than 26 years of age and entitled
to the benefits of the Foundation School Program under Section
42.003;
(2) has not graduated from high school; and
(3) is otherwise eligible to enroll in a public school
in this state.
SECTION 61.02. Subchapter A, Chapter 30A, Education Code,
is amended by adding Section 30A.007 to read as follows:
Sec. 30A.007. LOCAL POLICY ON ELECTRONIC COURSES. (a) A
school district or open-enrollment charter school shall adopt a
policy that provides district or school students with the
opportunity to enroll in electronic courses provided through the
state virtual school network. The policy must be consistent with
the requirements imposed by Section 26.0031.
(b) For purposes of a policy adopted under Subsection (a),
the determination of whether or not an electronic course will meet
the needs of a student with a disability shall be made by the
student’s admission, review, and dismissal committee in a manner
consistent with state and federal law, including the Individuals
with Disabilities Education Act (20 U.S.C. Section 1400 et seq.)
and Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section
794).
SECTION 61.03. Subchapter C, Chapter 30A, Education Code,
is amended by adding Section 30A.1021 to read as follows:
Sec. 30A.1021. PUBLIC ACCESS TO USER COMMENTS REGARDING
ELECTRONIC COURSES. (a) The administering authority shall
provide students who have completed or withdrawn from electronic
courses offered through the virtual school network and their
parents with a mechanism for providing comments regarding the
courses.
(b) The mechanism required by Subsection (a) must include a
quantitative rating system and a list of verbal descriptors that a
student or parent may select as appropriate.
(c) The administering authority shall provide public access
to the comments submitted by students and parents under this
section. The comments must be in a format that permits a person to
sort the comments by teacher, electronic course, and provider
school district or school.
SECTION 61.04. Section 30A.104, Education Code, is amended
to read as follows:
Sec. 30A.104. COURSE ELIGIBILITY IN GENERAL. (a) A course
offered through the state virtual school network must:
(1) be in a specific subject that is part of the
required curriculum under Section 28.002(a);
(2) be aligned with the essential knowledge and skills
identified under Section 28.002(c) for a grade level at or above
grade level three; and
(3) be the equivalent in instructional rigor and scope
to a course that is provided in a traditional classroom setting
during:
(A) a semester of 90 instructional days; and
(B) a school day that meets the minimum length of
a school day required under Section 25.082.
(b) If the essential knowledge and skills with which an
approved course is aligned in accordance with Subsection (a)(2) are
modified, the provider school district or school must be provided
the same time period to revise the course to achieve alignment with
the modified essential knowledge and skills as is provided for the
modification of a course provided in a traditional classroom
setting.
SECTION 61.05. Section 30A.105, Education Code, is amended
by adding Subsections (a-1) and (a-2) and amending Subsection (d)
to read as follows:
(a-1) The administering authority shall publish the
schedule established under Subsection (a)(1), including any
deadlines specified in that schedule, and any guidelines applicable
to the submission and approval process for electronic courses.
(a-2) The evaluation required by Subsection (a)(2) must
include review of each electronic course component, including
off-line material proposed to be used in the course.
(d) If the agency determines that the costs of evaluating
and approving a submitted electronic course will not be paid by the
agency due to a shortage of funds available for that purpose, the
school district, open-enrollment charter school, or public or
private institution of higher education that submitted the course
for evaluation and approval may pay a fee equal to the amount of the
costs in order to ensure that evaluation of the course occurs. The
agency shall establish and publish a fee schedule for purposes of
this subsection.
SECTION 61.06. Subsection (a), Section 30A.107, Education
Code, is amended to read as follows:
(a) A provider school district or school may offer
electronic courses to:
(1) students and adults who reside in this state; and
(2) students who reside outside this state and who
meet the eligibility requirements under Section 30A.002(c).
SECTION 61.07. Subchapter D, Chapter 30A, Education Code,
is amended by adding Section 30A.153 to read as follows:
Sec. 30A.153. FOUNDATION SCHOOL PROGRAM FUNDING. (a) A
school district or open-enrollment charter school in which a
student is enrolled is entitled to funding under Chapter 42 for the
student’s enrollment in an electronic course offered through the
state virtual school network in the same manner that the district or
school is entitled to funding for the student’s enrollment in
courses provided in a traditional classroom setting, provided that
the student successfully completes the electronic course.
(b) The commissioner, after considering comments from
school district and open-enrollment charter school
representatives, shall adopt a standard agreement that governs
payment of funds and other matters relating to a student’s
enrollment in an electronic course offered through the state
virtual school network. The agreement may not require a school
district or open-enrollment charter school to pay the provider the
full amount until the student has successfully completed the
electronic course.
(c) A school district or open-enrollment charter school
shall use the standard agreement adopted under Subsection (b)
unless:
(1) the district or school requests from the
commissioner permission to modify the standard agreement; and
(2) the commissioner authorizes the modification.
(d) The commissioner shall adopt rules necessary to
implement this section, including rules regarding attendance
accounting.
SECTION 61.08. Subsection (a), Section 42.302, Education
Code, is amended to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district’s local fund assignment
up to the maximum level specified in this subchapter. The amount
of state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) – LR
where:
“GYA” is the guaranteed yield amount of state funds to be
allocated to the district;
“GL” is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is an
amount described by Subsection (a-1) or a greater amount for any
year provided by appropriation;
“WADA” is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district’s allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158[, 42.159,] or 42.160, and 50 percent of the adjustment under
Section 42.102, by the basic allotment for the applicable year;
“DTR” is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district’s taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100; and
“LR” is the local revenue, which is determined by multiplying
“DTR” by the quotient of the district’s taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521, divided by 100.
SECTION 61.09. Section 42.159, Education Code, is repealed.
ARTICLE 62. TRANSFERRING TEXAS DEPARTMENT OF RURAL AFFAIRS TO
OFFICE OF RURAL AFFAIRS WITHIN DEPARTMENT OF AGRICULTURE
SECTION 62.01. The heading to Chapter 487, Government Code,
is amended to read as follows:
CHAPTER 487. OFFICE [TEXAS DEPARTMENT] OF RURAL
AFFAIRS IN DEPARTMENT OF AGRICULTURE
SECTION 62.02. Section 487.001, Government Code, is amended
to read as follows:
Sec. 487.001. DEFINITIONS. In this chapter:
(1) “Board” means the commissioner [board of the Texas
Department of Rural Affairs].
(2) “Commissioner” means the commissioner of
agriculture.
(3) “Department” means the office [Texas Department of
Rural Affairs].
(4) “Office” means the Office of Rural Affairs
established within the Department of Agriculture under Section
12.038, Agriculture Code.
SECTION 62.03. Subchapter A, Chapter 487, Government Code,
is amended by adding Section 487.003 to read as follows:
Sec. 487.003. REFERENCE IN LAW. (a) A reference in this
chapter or other law to the Texas Department of Rural Affairs or the
Office of Rural Community Affairs means the office, and a reference
in this chapter or other law to the board of the Texas Department of
Rural Affairs means the commissioner.
(b) A reference in law to the executive director of the
Texas Department of Rural Affairs means the director of the Office
of Rural Affairs appointed under Section 12.038, Agriculture Code.
SECTION 62.04. Section 487.026, Government Code, is amended
to read as follows:
Sec. 487.026. [EXECUTIVE] DIRECTOR. (a) The [board may
hire an executive] director serves [to serve] as the chief
executive officer of the office [department] and performs [to
perform] the administrative duties of the office [department].
(b) [The executive director serves at the will of the board.
[(c)] The [executive] director may hire staff within
guidelines established by the commissioner [board].
SECTION 62.05. Subsection (a), Section 487.051, Government
Code, is amended to read as follows:
(a) The office [department] shall:
(1) assist rural communities in the key areas of
economic development, community development, rural health, and
rural housing;
(2) serve as a clearinghouse for information and
resources on all state and federal programs affecting rural
communities;
(3) in consultation with rural community leaders,
locally elected officials, state elected and appointed officials,
academic and industry experts, and the interagency work group
created under this chapter, identify and prioritize policy issues
and concerns affecting rural communities in the state;
(4) make recommendations to the legislature to address
the concerns affecting rural communities identified under
Subdivision (3);
(5) monitor developments that have a substantial
effect on rural Texas communities, especially actions of state
government, and compile an annual report describing and evaluating
the condition of rural communities;
(6) administer the federal community development
block grant nonentitlement program;
(7) administer programs supporting rural health care
as provided by this chapter;
(8) perform research to determine the most beneficial
and cost-effective ways to improve the welfare of rural
communities;
(9) ensure that the office [department] qualifies as
the state’s office of rural health for the purpose of receiving
grants from the Office of Rural Health Policy of the United States
Department of Health and Human Services under 42 U.S.C. Section
254r;
(10) manage the state’s Medicare rural hospital
flexibility program under 42 U.S.C. Section 1395i-4;
(11) seek state and federal money available for
economic development in rural areas for programs under this
chapter;
(12) in conjunction with other offices and divisions
of the Department of Agriculture, regularly cross-train office
[department] employees with other employees of the Department of
Agriculture regarding the programs administered and services
provided [by each agency] to rural communities; and
(13) work with interested persons to assist volunteer
fire departments and emergency services districts in rural areas.
SECTION 62.06. Subsection (c), Section 487.0541,
Government Code, is amended to read as follows:
(c) The work group shall meet at the call of the [executive]
director of the office [department].
SECTION 62.07. Section 487.055, Government Code, is amended
to read as follows:
Sec. 487.055. ADVISORY COMMITTEES. (a) The commissioner
[board] may appoint advisory committees as necessary to assist the
office [board] in performing its duties. An advisory committee may
be composed of private citizens and representatives from state and
local governmental entities. A state or local governmental entity
shall appoint a representative to an advisory committee at the
request of the commissioner [board].
(b) Chapter 2110 does not apply to an advisory committee
created under this section.
SECTION 62.08. Subsection (d), Section 487.351, Government
Code, is amended to read as follows:
(d) An applicant for a grant, loan, or award under a
community development block grant program may appeal a decision of
the [executive] director by filing an appeal with the commissioner
[board]. The commissioner [board] shall hold a hearing on the
appeal and render a decision.
SECTION 62.09. Chapter 487, Government Code, is amended by
adding Subchapter R to read as follows:
SUBCHAPTER R. TEXAS RURAL HEALTH AND ECONOMIC DEVELOPMENT ADVISORY
COUNCIL
Sec. 487.801. DEFINITION. In this subchapter, “advisory
council” means the Texas Rural Health and Economic Development
Advisory Council established under this subchapter.
Sec. 487.802. ESTABLISHMENT AND COMPOSITION OF ADVISORY
COUNCIL; PRESIDING OFFICER. (a) The commissioner shall establish
the Texas Rural Health and Economic Development Advisory Council,
composed of the following members:
(1) one local official in this state with health care
expertise, appointed by the commissioner;
(2) one county official in this state with health care
expertise, appointed by the commissioner;
(3) one senator serving a predominantly rural area,
appointed by the lieutenant governor;
(4) one member of the house of representatives serving
a predominantly rural area, appointed by the speaker of the house of
representatives;
(5) a representative of an institution of higher
education in this state that specializes in public health and
community and economic development, appointed by the commissioner;
and
(6) four public members with health care or economic
development expertise, appointed by the commissioner.
(b) The members of the advisory council serve staggered
three-year terms. A member of the council appointed by the
commissioner serves at the pleasure of the commissioner.
(c) The commissioner shall serve as presiding officer of the
advisory council and as a nonvoting member of the advisory council.
The commissioner is not counted as a member of the advisory council
for purposes of establishing a quorum.
Sec. 487.803. DUTIES OF ADVISORY COUNCIL. The advisory
council shall:
(1) advise the commissioner, director, and office on
rural policy priorities, including priorities for the use and
allocation in this state of federal block grant money;
(2) review this state’s existing rural policies and
programs;
(3) meet with the representatives of state agencies
that administer rural programs as necessary to conduct the review
required under Subdivision (2);
(4) make recommendations to the office regarding the
allocation in this state of federal block grant money; and
(5) establish a rural health task force composed of
all or a portion of the members of the advisory council.
Sec. 487.804. RURAL POLICY PLAN. (a) Not later than
December 1 of each even-numbered year, the advisory council shall
develop a rural policy plan that includes:
(1) strategic initiatives for this state regarding
economic development, community development, and rural health,
including priorities for the use and allocation in this state of
federal block grant money; and
(2) recommendations for legislation and program
development or revision.
(b) Not later than January 1 of each even-numbered year, the
commissioner shall submit to the legislature a report of the
findings of the advisory council.
Sec. 487.805. RURAL HEALTH TASK FORCE. The rural health
task force shall:
(1) assist the advisory council in its efforts to
expand and improve access to health care in rural areas of this
state; and
(2) develop a statewide rural health plan for this
state that includes:
(A) strategic initiatives for this state
regarding rural health; and
(B) recommendations for legislation and program
development or revision.
Sec. 487.806. REIMBURSEMENT OF EXPENSES. A member of the
advisory council may not receive compensation for service on the
advisory council or rural health task force. Subject to
availability of funds, an advisory council member may receive
reimbursement for actual and necessary expenses incurred while
conducting advisory council or task force business, as appropriate.
SECTION 62.10. Subsection (b), Section 2306.1092,
Government Code, is amended to read as follows:
(b) The council is composed of 16 members consisting of:
(1) the director;
(2) one representative from each of the following
agencies, appointed by the head of that agency:
(A) the Office of Rural [Community] Affairs
within the Department of Agriculture;
(B) the Texas State Affordable Housing
Corporation;
(C) the Health and Human Services Commission;
(D) the Department of Assistive and
Rehabilitative Services;
(E) the Department of Aging and Disability
Services; and
(F) the Department of State Health Services;
(3) one representative from the Department of
Agriculture who is:
(A) knowledgeable about the Texans Feeding
Texans and Retire in Texas programs or similar programs; and
(B) appointed by the head of that agency;
(4) one member who is:
(A) a member of the Health and Human Services
Commission Promoting Independence Advisory Committee; and
(B) appointed by the governor; and
(5) one representative from each of the following
interest groups, appointed by the governor:
(A) financial institutions;
(B) multifamily housing developers;
(C) health services entities;
(D) nonprofit organizations that advocate for
affordable housing and consumer-directed long-term services and
support;
(E) consumers of service-enriched housing;
(F) advocates for minority issues; and
(G) rural communities.
SECTION 62.11. The following provisions of the Government
Code are repealed:
(1) Sections 487.002, 487.021, 487.022, 487.023,
487.024, 487.025, 487.028, and 487.029;
(2) Subsection (b), Section 487.051; and
(3) Sections 487.058 and 487.352.
SECTION 62.12. (a) The Texas Department of Rural Affairs
is abolished as an independent agency and transferred as a program
to the Office of Rural Affairs in the Department of Agriculture.
The board of the Texas Department of Rural Affairs is abolished.
(b) The validity of an action taken by the Texas Department
of Rural Affairs or its board before either is abolished under
Subsection (a) of this section is not affected by the abolishment.
(c) All rules, policies, procedures, and decisions of the
Texas Department of Rural Affairs are continued in effect as rules,
policies, procedures, and decisions of the Office of Rural Affairs
in the Department of Agriculture until superseded by a rule,
policy, procedure, or decision of the office.
(d) Any pending action or proceeding before the Texas
Department of Rural Affairs becomes an action or proceeding before
the Office of Rural Affairs in the Department of Agriculture.
SECTION 62.13. (a) On October 1, 2011:
(1) the position of executive director of the Texas
Department of Rural Affairs is abolished, except that the director
of the Office of Rural Affairs in the Department of Agriculture may
hire the executive director for a position in the office;
(2) an employee of the Texas Department of Rural
Affairs becomes an employee of the Office of Rural Affairs in the
Department of Agriculture;
(3) a reference in law to the Texas Department of Rural
Affairs means the Office of Rural Affairs in the Department of
Agriculture;
(4) all money, contracts, leases, rights, and
obligations of the Texas Department of Rural Affairs are
transferred to the Office of Rural Affairs in the Department of
Agriculture;
(5) all property, including records, in the custody of
the Texas Department of Rural Affairs becomes the property of the
Office of Rural Affairs in the Department of Agriculture; and
(6) all funds appropriated by the legislature to the
Texas Department of Rural Affairs are transferred to the Office of
Rural Affairs in the Department of Agriculture.
(b) A function or activity performed by the Texas Department
of Rural Affairs is transferred to the Office of Rural Affairs in
the Department of Agriculture as provided by this article.
SECTION 62.14. The Texas Department of Rural Affairs and
the Department of Agriculture shall establish a transition plan for
the transfer described in Sections 62.12 and 62.13 of this article.
SECTION 62.15. Notwithstanding any other provision of this
article, the governor retains the authority to designate an agency
to administer federal disaster recovery funds and to transfer the
federal funds to any state agency. On the date the governor
designates a state agency, other than the Texas Department of Rural
Affairs, to administer the federal community development block
grant disaster recovery funds received for Hurricanes Rita, Dolly,
and Ike:

(1) a reference in law to the Texas Department of Rural
Affairs related to the disaster recovery funds means the agency
designated by the governor to administer the disaster recovery
funds;
(2) all money, contracts, leases, rights, and
obligations of the Texas Department of Rural Affairs related to the
disaster recovery funds are transferred to the designated agency;
and
(3) all property, including records, in the custody of
the Texas Department of Rural Affairs related to the disaster
recovery funds becomes the property of the designated agency.
ARTICLE 63. SUITS AFFECTING THE PARENT-CHILD RELATIONSHIP
SECTION 63.01. Section 263.601, Family Code, is amended by
amending Subdivision (1) and adding Subdivision (3-a) to read as
follows:
(1) “Foster care” means a voluntary residential living
arrangement with a foster parent or other residential child-care
provider that is:
(A) licensed or approved by the department or
verified by a licensed child-placing agency; and
(B) paid under a contract with the department.
(3-a) “Trial independence period” means a period of
not less than six months, or a longer period as a court may order not
to exceed 12 months, during which a young adult exits foster care
with the option to return to foster care under the continuing
extended jurisdiction of the court.
SECTION 63.02. Section 263.602, Family Code, is amended to
read as follows:
Sec. 263.602. EXTENDED JURISDICTION. (a) A court that had
continuing, exclusive jurisdiction over a young adult on the day
before [may, at] the young adult’s 18th birthday continues to have
extended [request, render an order that extends the court’s]
jurisdiction over the young adult and shall retain the case on the
court’s docket while the young adult remains in extended foster
care and during a trial independence period described [as provided]
by this section [subchapter].
(b) A court with extended jurisdiction over a young adult
who remains in extended foster care shall conduct extended foster
care review hearings every six months for the purpose of reviewing
and making findings regarding:
(1) whether the young adult’s living arrangement is
safe and appropriate and whether the department has made reasonable
efforts to place the young adult in the least restrictive
environment necessary to meet the young adult’s needs;
(2) whether the department is making reasonable
efforts to finalize the permanency plan that is in effect for the
young adult, including a permanency plan for independent living;
(3) whether, for a young adult whose permanency plan
is independent living:
(A) the young adult participated in the
development of the plan of service;
(B) the young adult’s plan of service reflects
the independent living skills and appropriate services needed to
achieve independence by the projected date; and
(C) the young adult continues to make reasonable
progress in developing the skills needed to achieve independence by
the projected date; and
(4) whether additional services that the department is
authorized to provide are needed to meet the needs of the young
adult [The extended jurisdiction of the court terminates on the
earlier of:
[(1) the young adult’s 21st birthday; or
[(2) the date the young adult withdraws consent to the
extension of the court’s jurisdiction in writing or in court].
(c) Not later than the 10th day before the date set for a
hearing under this section, the department shall file with the
court a copy of the young adult’s plan of service and a report that
addresses the issues described by Subsection (b).
(d) Notice of an extended foster care review hearing shall
be given as provided by Rule 21a, Texas Rules of Civil Procedure, to
the following persons, each of whom has a right to present evidence
and be heard at the hearing:
(1) the young adult who is the subject of the suit;
(2) the department;
(3) the foster parent with whom the young adult is
placed and the administrator of a child-placing agency responsible
for placing the young adult, if applicable;
(4) the director of the residential child-care
facility or other approved provider with whom the young adult is
placed, if applicable;
(5) each parent of the young adult whose parental
rights have not been terminated and who is still actively involved
in the life of the young adult;
(6) a legal guardian of the young adult, if
applicable; and
(7) the young adult’s attorney ad litem, guardian ad
litem, and volunteer advocate, the appointment of which has not
been previously dismissed by the court.
(e) If, after reviewing the young adult’s plan of service
and the report filed under Subsection (c), and any additional
testimony and evidence presented at the review hearing, the court
determines that the young adult is entitled to additional services,
the court may order the department to take appropriate action to
ensure that the young adult receives those services.
(f) A court with extended jurisdiction over a young adult as
described in Subsection (a) shall continue to have jurisdiction
over the young adult and shall retain the case on the court’s docket
until the earlier of:
(1) the last day of the:
(A) sixth month after the date the young adult
leaves foster care; or
(B) 12th month after the date the young adult
leaves foster care if specified in a court order, for the purpose of
allowing the young adult to pursue a trial independence period; or
(2) the young adult’s 21st birthday.
(g) A court with extended jurisdiction described by this
section is not required to conduct periodic hearings for a young
adult during a trial independence period and may not compel a young
adult who has exited foster care to attend a court hearing.
SECTION 63.03. Subchapter G, Chapter 263, Family Code, is
amended by adding Section 263.6021 to read as follows:
Sec. 263.6021. VOLUNTARY EXTENDED JURISDICTION FOR YOUNG
ADULT RECEIVING TRANSITIONAL LIVING SERVICES.
(a) Notwithstanding Section 263.602, a court that had continuing,
exclusive jurisdiction over a young adult on the day before the
young adult’s 18th birthday may, at the young adult’s request,
render an order that extends the court’s jurisdiction beyond the
end of a trial independence period if the young adult receives
transitional living services from the department.
(b) The extended jurisdiction of the court under this
section terminates on the earlier of:
(1) the young adult’s 21st birthday; or
(2) the date the young adult withdraws consent to the
extension of the court’s jurisdiction in writing or in court.
(c) At the request of a young adult who is receiving
transitional living services from the department and who consents
to voluntary extension of the court’s jurisdiction under this
section, the court may hold a hearing to review the services the
young adult is receiving.
(d) Before a review hearing scheduled under this section,
the department must file with the court a report summarizing the
young adult’s transitional living services plan, services being
provided to the young adult under that plan, and the young adult’s
progress in achieving independence.
(e) If, after reviewing the report and any additional
testimony and evidence presented at the hearing, the court
determines that the young adult is entitled to additional services,
the court may order the department to take appropriate action to
ensure that the young adult receives those services.
SECTION 63.04. Subsections (a) and (c), Section 263.603,
Family Code, are amended to read as follows:
(a) Notwithstanding Section 263.6021 [263.602], if the
court believes that a young adult may be incapacitated as defined by
Section 601(14)(B), Texas Probate Code, the court may extend its
jurisdiction on its own motion without the young adult’s consent to
allow the department to refer the young adult to the Department of
Aging and Disability Services for guardianship services as required
by Section 48.209, Human Resources Code.
(c) If the Department of Aging and Disability Services
determines a guardianship is not appropriate, or the court with
probate jurisdiction denies the application to appoint a guardian,
the court under Subsection (a) may continue to extend its
jurisdiction over the young adult only as provided by Section
263.602 or 263.6021.
SECTION 63.05. Section 263.609, Family Code, is repealed.
SECTION 63.06. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 64. TEXAS COMMISSION ON FIRE PROTECTION FEES
SECTION 64.01. Subsection (d), Section 419.026, Government
Code, is amended to read as follows:
(d) The commission shall send the fees authorized by
Subsection (a) and Section 419.033(b) to the comptroller. The
comptroller [, who] shall deposit a portion [50 percent] of the fees
collected [annually] into [the general revenue fund and 50 percent
of the fees collected annually into] a special account in the
general revenue fund dedicated for use by the commission. In any
state fiscal biennium, the comptroller may not deposit into the
account fees in an amount that exceeds the amount appropriated to
the commission for that biennium, less any other amount
appropriated to the commission from a source other than the fees.
The account is exempt from the application of Section 403.095. The
comptroller shall deposit the remainder of the fees in the general
revenue fund [Except as otherwise provided by this chapter, 50
percent of the special fund created under this subsection may be
used only to defray the commission’s costs in performing
inspections under Section 419.027 and the other 50 percent may be
used only to provide training assistance under Section 419.031].
SECTION 64.02. The dedication of certain fees to a special
account in the general revenue fund dedicated for use by the Texas
Commission on Fire Protection under Subsection (d), Section
419.026, Government Code, was abolished effective August 31, 1995,
under former Subsection (h), Section 403.094, Government Code, as
enacted by Section 11.04, Chapter 4 (S.B. 3), Acts of the 72nd
Legislature, 1st Called Session, 1991. Those fees are rededicated
to that fund by this article.
SECTION 64.03. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
this article to have immediate effect, this article takes effect
October 1, 2011.
ARTICLE 65. PROVISIONS RELATING TO CORRECTIONAL HEALTH CARE
SECTION 65.01. Subchapter C, Chapter 499, Government Code,
is amended by adding Section 499.055 to read as follows:
Sec. 499.055. POPULATION MANAGEMENT BASED ON INMATE HEALTH.
The department shall adopt policies designed to manage inmate
population based on similar health conditions suffered by inmates.
The policies adopted under this section must maximize
organizational efficiencies and reduce health care costs to the
department by housing inmates with similar health conditions in the
same unit or units that are, if possible, served by or located near
one or more specialty health care providers most likely to be needed
for the treatment of the health condition.
SECTION 65.02. Section 501.063, Government Code, is amended
to read as follows:
Sec. 501.063. INMATE FEE [COPAYMENTS] FOR [CERTAIN] HEALTH
CARE [VISITS]. (a) (1) An inmate confined in a facility operated
by or under contract with the department, other than a halfway
house, who initiates a visit to a health care provider shall pay a
health care services fee [make a copayment] to the department in the
amount of $100 [$3].
(2) The fee imposed under Subdivision (1) covers all
visits to a health care provider that the inmate initiates until the
first anniversary of the imposition of the fee.
(3) The inmate shall pay [make] the fee [copayment]
out of the inmate’s trust fund. If the balance in the fund is
insufficient to cover the fee [copayment], 50 percent of each
deposit to the fund shall be applied toward the balance owed until
the total amount owed is paid.
(b) [The department may not charge a copayment for health
care:
[(1) provided in response to a life-threatening or
emergency situation affecting the inmate’s health;
[(2) initiated by the department;
[(3) initiated by the health care provider or
consisting of routine follow-up, prenatal, or chronic care; or
[(4) provided under a contractual obligation that is
established under the Interstate Corrections Compact or under an
agreement with another state that precludes assessing a copayment.
[(c)] The department shall adopt policies to ensure that
before any deductions are made from an inmate’s trust fund under
this section [an inmate initiates a visit to a health care
provider], the inmate is informed that the health care services fee
[a $3 copayment] will be deducted from the inmate’s trust fund as
required by Subsection (a).
(c) [(d)] The department may not deny an inmate access to
health care as a result of the inmate’s failure or inability to pay
a fee under this section [make a copayment].
(d) [(e)] The department shall deposit money received under
this section in an account in the general revenue fund that may be
used only to pay the cost of correctional health care
[administering this section]. At the beginning of each fiscal
year, the comptroller shall transfer any surplus from the preceding
fiscal year to the state treasury to the credit of the general
revenue fund.
SECTION 65.03. Subchapter B, Chapter 501, Government Code,
is amended by adding Section 501.067 to read as follows:
Sec. 501.067. AVAILABILITY OF CERTAIN MEDICATION. (a) In
this section, “over-the-counter medication” means medication that
may legally be sold and purchased without a prescription.
(b) The department shall make over-the-counter medication
available for purchase by inmates in each inmate commissary
operated by or under contract with the department.
(c) The department may not deny an inmate access to
over-the-counter medications as a result of the inmate’s inability
to pay for the medication. The department shall pay for the cost of
over-the-counter medication for inmates who are unable to pay for
the medication out of the profits of inmate commissaries operated
by or under contract with the department.
(d) The department may adopt policies concerning the sale
and purchase of over-the-counter medication under this section as
necessary to ensure the safety and security of inmates in the
custody of, and employees of, the department, including policies
concerning the quantities and types of over-the-counter medication
that may be sold and purchased under this section.
SECTION 65.04. Subchapter E, Chapter 501, Government Code,
is amended by adding Section 501.1485 to read as follows:
Sec. 501.1485. CORRECTIONS MEDICATION AIDES. (a) The
department, in cooperation with The University of Texas Medical
Branch at Galveston and the Texas Tech University Health Sciences
Center, shall develop and implement a training program for
corrections medication aides that uses a curriculum specific to
administering medication in a correctional setting.
(b) In developing the curriculum for the training program,
the department, The University of Texas Medical Branch at
Galveston, and the Texas Tech University Health Sciences Center
shall:
(1) consider the content of the curriculum developed
by the American Correctional Association for certified corrections
nurses; and
(2) modify as appropriate the content of the
curriculum developed under Chapter 242, Health and Safety Code, for
medication aides administering medication in convalescent and
nursing homes and related institutions to produce content suitable
for administering medication in a correctional setting.
(c) The department shall submit an application for the
approval of a training program developed under this section,
including the curriculum, to the Department of Aging and Disability
Services in the manner established by the executive commissioner of
the Health and Human Services Commission under Section 161.083,
Human Resources Code.
SECTION 65.05. Section 251.012, Health and Safety Code, as
effective September 1, 2011, is amended to read as follows:
Sec. 251.012. EXEMPTIONS FROM LICENSING REQUIREMENT. The
following facilities are not required to be licensed under this
chapter:
(1) a home and community support services agency
licensed under Chapter 142 with a home dialysis designation;
(2) a hospital licensed under Chapter 241 that
provides dialysis only to individuals receiving:
(A) [individuals receiving] inpatient services
from the hospital; or
(B) [individuals receiving] outpatient services
due to a disaster declared by the governor or a federal disaster
declared by the president of the United States occurring in this
state or another state during the term of the disaster declaration;
[or]
(3) a hospital operated by or on behalf of the state as
part of the managed health care provider network established under
Chapter 501, Government Code, that provides dialysis only to
individuals receiving:
(A) inpatient services from the hospital; or
(B) outpatient services while serving a term of
confinement in a facility operated by or under contract with the
Texas Department of Criminal Justice;
(4) an end stage renal disease facility operated by or
on behalf of the state as part of the managed health care provider
network established under Chapter 501, Government Code, that
provides dialysis only to individuals receiving those services
while serving a term of confinement in a facility operated by or
under contract with the Texas Department of Criminal Justice; or
(5) the office of a physician unless the office is used
primarily as an end stage renal disease facility.
SECTION 65.06. Subchapter D, Chapter 161, Human Resources
Code, is amended by adding Section 161.083 to read as follows:
Sec. 161.083. CORRECTIONS MEDICATION AIDES. (a) The
executive commissioner shall establish:
(1) minimum standards and procedures for the approval
of corrections medication aide training programs, including
curricula, developed under Section 501.1485, Government Code;
(2) minimum requirements for the issuance, denial,
renewal, suspension, and revocation of a permit to a corrections
medication aide, including the payment of an application or renewal
fee in an amount necessary to cover the costs incurred by the
department in administering this section; and
(3) the acts and practices that are within and outside
the scope of a permit issued under this section.
(b) Not later than the 90th day after receipt of an
application for approval of a corrections medication aide training
program developed under Section 501.1485, Government Code, the
department shall:
(1) approve the program, if the program meets the
minimum standards and procedures established under Subsection
(a)(1); or
(2) provide notice to the Texas Department of Criminal
Justice that the program is not approved and include in the notice a
description of the actions that are required for the program to be
approved.
(c) The department shall issue a permit to or renew the
permit of an applicant who meets the minimum requirements
established under Subsection (a)(2). The department shall
coordinate with the Texas Department of Criminal Justice in the
performance of the department’s duties and functions under this
subsection.
SECTION 65.07. (a) The Texas Department of Criminal
Justice, in cooperation with The University of Texas Medical Branch
at Galveston, the Texas Tech University Health Sciences Center, or
a successor correctional managed health care provider, shall
develop the training program required by Section 501.1485,
Government Code, as added by this article, and the department shall
submit an application for approval of that program, as required by
Subsection (c) of that section, not later than January 1, 2012. If
after the effective date of this Act and before the date the
department develops the training program described by this
subsection The University of Texas Medical Branch at Galveston and
the Texas Tech University Health Sciences Center are no longer
represented on the Correctional Managed Health Care Committee, or
no longer serve as correctional managed health care providers, the
executive director of the department shall request and receive the
cooperation of any other state agency determined by the executive
director to be an appropriate resource in the development of the
program.
(b) The change in law made by this article in amending
Section 251.012, Health and Safety Code, applies only to dialysis
services provided on or after the effective date of this Act.
Dialysis services provided before the effective date of this Act
are covered by the law in effect immediately before that date, and
the former law is continued in effect for that purpose.
(c) The executive commissioner of the Health and Human
Services Commission shall establish the minimum standards and
requirements and the acts and practices allowed or prohibited, as
required by Section 161.083, Human Resources Code, as added by this
article, not later than January 1, 2012.
ARTICLE 66. GUARDIANSHIP MATTERS AND PROCEEDINGS: AMENDMENTS TO
TEXAS PROBATE CODE

SECTION 66.01. Section 612, Texas Probate Code, is amended
to read as follows:
Sec. 612. APPLICATION FOR TRANSFER OF GUARDIANSHIP TO
ANOTHER COUNTY. When a guardian or any other person desires to
transfer [remove] the transaction of the business of the
guardianship from one county to another, the person shall file a
written application in the court in which the guardianship is
pending stating the reason for the transfer [moving the transaction
of business].
SECTION 66.02. Subsection (a), Section 613, Texas Probate
Code, is amended to read as follows:
(a) On filing an application to transfer [remove] a
guardianship to another county, the sureties on the bond of the
guardian shall be cited by personal service to appear and show cause
why the application should not be granted.
SECTION 66.03. Sections 614, 615, 616, 617, and 618, Texas
Probate Code, are amended to read as follows:
Sec. 614. COURT ACTION. (a) On hearing an application
under Section 612 of this code, if good cause is not shown to deny
the application and it appears that transfer [removal] of the
guardianship is in the best interests of the ward, the court shall
enter an order authorizing the transfer [removal] on payment on
behalf of the estate of all accrued costs.
(b) In an order entered under Subsection (a) of this
section, the court shall require the guardian, not later than the
20th day after the date the order is entered, to:
(1) give a new bond payable to the judge of the court
to which the guardianship is transferred; or
(2) file a rider to an existing bond noting the court
to which the guardianship is transferred.
Sec. 615. TRANSFER OF RECORD. When an order of transfer
[removal] is made under Section 614 of this code, the clerk shall
record any unrecorded papers of the guardianship required to be
recorded. On payment of the clerk’s fee, the clerk shall transmit
to the county clerk of the county to which the guardianship was
ordered transferred [removed]:
(1) the case file of the guardianship proceedings; and
(2) a certified copy of the index of the guardianship
records.
Sec. 616. TRANSFER [REMOVAL] EFFECTIVE. The order
transferring [removing] a guardianship does not take effect until:
(1) the case file and a certified copy of the index
required by Section 615 of this code are filed in the office of the
county clerk of the county to which the guardianship was ordered
transferred [removed]; and
(2) a certificate under the clerk’s official seal and
reporting the filing of the case file and a certified copy of the
index is filed in the court ordering the transfer [removal] by the
county clerk of the county to which the guardianship was ordered
transferred [removed].
Sec. 617. CONTINUATION OF GUARDIANSHIP. When a
guardianship is transferred [removed] from one county to another in
accordance with this subpart, the guardianship proceeds in the
court to which it was transferred [removed] as if it had been
originally commenced in that court. It is not necessary to record
in the receiving court any of the papers in the case that were
recorded in the court from which the case was transferred
[removed].
Sec. 618. NEW GUARDIAN APPOINTED ON TRANSFER [REMOVAL]. If
it appears to the court that transfer [removal] of the guardianship
is in the best interests of the ward, but that because of the
transfer [removal] it is not in the best interests of the ward [will
be unduly expensive or unduly inconvenient to the estate] for the
guardian of the estate to continue to serve in that capacity, the
court may in its order of transfer [removal] revoke the letters of
guardianship and appoint a new guardian, and the former guardian
shall account for and deliver the estate as provided by this chapter
in a case in which a guardian resigns.
SECTION 66.04. Subpart B, Part 2, Chapter XIII, Texas
Probate Code, is amended by adding Section 619 to read as follows:
Sec. 619. REVIEW OF TRANSFERRED GUARDIANSHIP. Not later
than the 90th day after the date the transfer of the guardianship
takes effect under Section 616 of this code, the court to which the
guardianship was transferred shall hold a hearing to consider
modifying the rights, duties, and powers of the guardian or any
other provisions of the transferred guardianship.
SECTION 66.05. Section 892, Texas Probate Code, is amended
by amending Subsections (a) and (e) and adding Subsection (f-1) to
read as follows:
(a) A guardian appointed by a foreign court to represent an
incapacitated person who is residing in this state or intends to
move to this state may file an application with a court in which the
ward resides or intends to reside to have the guardianship
transferred to the court. The application must have attached a
certified copy of all papers of the guardianship filed and recorded
in the foreign court.
(e) The [On the court’s own motion or on the motion of the
ward or any interested person, the] court shall hold a hearing to:
(1) consider the application for receipt and
acceptance of a foreign guardianship; and
(2) consider modifying the administrative procedures
or requirements of the proposed transferred guardianship in
accordance with local and state law.
(f-1) At the time of granting an application for receipt and
acceptance of a foreign guardianship, the court may also modify the
administrative procedures or requirements of the transferred
guardianship in accordance with local and state law.
SECTION 66.06. Subsection (b), Section 894, Texas Probate
Code, is amended to read as follows:
(b) A court that delays further action in a guardianship
proceeding under Subsection (a) of this section shall determine
whether venue of the proceeding is more suitable in that court or in
the foreign court. In making that determination, the court may
consider:
(1) the interests of justice;
(2) the best interests of the ward or proposed ward;
[and]
(3) the convenience of the parties; and
(4) the preference of the ward or proposed ward, if the
ward or proposed ward is 12 years of age or older.
SECTION 66.07. Subpart G, Part 5, Chapter XIII, Texas
Probate Code, is amended by adding Section 895 to read as follows:
Sec. 895. DETERMINATION OF MOST APPROPRIATE FORUM FOR
CERTAIN GUARDIANSHIP PROCEEDINGS. (a) If at any time a court of
this state determines that it acquired jurisdiction of a proceeding
for the appointment of a guardian of the person or estate, or both,
of a ward or proposed ward because of unjustifiable conduct, the
court may:
(1) decline to exercise jurisdiction;
(2) exercise jurisdiction for the limited purpose of
fashioning an appropriate remedy to ensure the health, safety, and
welfare of the ward or proposed ward or the protection of the ward’s
or proposed ward’s property or prevent a repetition of the
unjustifiable conduct, including staying the proceeding until a
petition for the appointment of a guardian or issuance of a
protective order is filed in a court of another state having
jurisdiction; or
(3) continue to exercise jurisdiction after
considering:
(A) the extent to which the ward or proposed ward
and all persons required to be notified of the proceedings have
acquiesced in the exercise of the court’s jurisdiction;
(B) whether the court of this state is a more
appropriate forum than the court of any other state after
considering the factors described by Section 894(b) of this code;
and
(C) whether the court of any other state would
have jurisdiction under the factual circumstances of the matter.
(b) If a court of this state determines that it acquired
jurisdiction of a proceeding for the appointment of a guardian of
the person or estate, or both, of a ward or proposed ward because a
party seeking to invoke the court’s jurisdiction engaged in
unjustifiable conduct, the court may assess against that party
necessary and reasonable expenses, including attorney’s fees,
investigative fees, court costs, communication expenses, witness
fees and expenses, and travel expenses. The court may not assess
fees, costs, or expenses of any kind against this state or a
governmental subdivision, agency, or instrumentality of this state
unless authorized by other law.
SECTION 66.08. Section 893, Texas Probate Code, is
repealed.
SECTION 66.09. Sections 612, 613, 614, 615, 616, 617, and
618, Texas Probate Code, as amended by this article, and Section
619, Texas Probate Code, as added by this article, apply only to an
application for the transfer of a guardianship to another county
filed on or after the effective date of this article. An
application for the transfer of a guardianship to another county
filed before the effective date of this article is governed by the
law in effect on the date the application was filed, and the former
law is continued in effect for that purpose.
SECTION 66.10. The changes in law made by this article to
Sections 892 and 893, Texas Probate Code, apply only to an
application for receipt and acceptance of a foreign guardianship
filed on or after the effective date of this article. An
application for receipt and acceptance of a foreign guardianship
filed before the effective date of this article is governed by the
law in effect on the date the application was filed, and the former
law is continued in effect for that purpose.
SECTION 66.11. Section 894, Texas Probate Code, as amended
by this article, and Section 895, Texas Probate Code, as added by
this article, apply only to a guardianship proceeding filed on or
after the effective date of this article. A guardianship
proceeding filed before the effective date of this article is
governed by the law in effect on the date the proceeding was filed,
and the former law is continued in effect for that purpose.
ARTICLE 66A. GUARDIANSHIP MATTERS AND PROCEEDINGS: AMENDMENTS TO
ESTATES CODE
SECTION 66A.01. Subpart B, Part 2, Subtitle Y, Title 3,
Estates Code, as effective January 1, 2014, is amended by adding
Section 619 to read as follows:
Sec. 619. REVIEW OF TRANSFERRED GUARDIANSHIP. Not later
than the 90th day after the date the transfer of the guardianship
takes effect under Section 616, the court to which the guardianship
was transferred shall hold a hearing to consider modifying the
rights, duties, and powers of the guardian or any other provisions
of the transferred guardianship.
SECTION 66A.02. Section 1253.051, Estates Code, as
effective January 1, 2014, is amended to read as follows:
Sec. 1253.051. APPLICATION FOR RECEIPT AND ACCEPTANCE OF
FOREIGN GUARDIANSHIP. A guardian appointed by a foreign court to
represent an incapacitated person who is residing in this state or
intends to move to this state may file an application with a court
in which the ward resides or intends to reside to have the
guardianship transferred to the court. The application must have
attached a certified copy of all papers of the guardianship filed
and recorded in the foreign court.
SECTION 66A.03. Section 1253.053, Estates Code, as
effective January 1, 2014, is amended by amending Subsection (a)
and adding Subsection (f) to read as follows:
(a) The [On the court’s own motion or on the motion of the
ward or any interested person, the] court shall hold a hearing to:
(1) consider an application for receipt and acceptance
of a foreign guardianship under this subchapter; and
(2) consider modifying the administrative procedures
or requirements of the proposed transferred guardianship in
accordance with local and state law.
(f) At the time of granting an application for receipt and
acceptance of a foreign guardianship, the court may also modify the
administrative procedures or requirements of the transferred
guardianship in accordance with local and state law.
SECTION 66A.04. Subsection (b), Section 1253.102, Estates
Code, as effective January 1, 2014, is amended to read as follows:
(b) In making a determination under Subsection (a), the
court may consider:
(1) the interests of justice;
(2) the best interests of the ward or proposed ward;
[and]
(3) the convenience of the parties; and
(4) the preference of the ward or proposed ward, if the
ward or proposed ward is 12 years of age or older.
SECTION 66A.05. Chapter 1253, Estates Code, as effective
January 1, 2014, is amended by adding Subchapter D to read as
follows:
SUBCHAPTER D. DETERMINATION OF MOST APPROPRIATE FORUM FOR CERTAIN
GUARDIANSHIP PROCEEDINGS
Sec. 1253.151. DETERMINATION OF ACQUISITION OF
JURISDICTION IN THIS STATE DUE TO UNJUSTIFIABLE CONDUCT. If at any
time a court of this state determines that it acquired jurisdiction
of a proceeding for the appointment of a guardian of the person or
estate, or both, of a ward or proposed ward because of unjustifiable
conduct, the court may:
(1) decline to exercise jurisdiction;
(2) exercise jurisdiction for the limited purpose of
fashioning an appropriate remedy to ensure the health, safety, and
welfare of the ward or proposed ward or the protection of the ward’s
or proposed ward’s property or prevent a repetition of the
unjustifiable conduct, including staying the proceeding until a
petition for the appointment of a guardian or issuance of a
protective order is filed in a court of another state having
jurisdiction; or
(3) continue to exercise jurisdiction after
considering:
(A) the extent to which the ward or proposed ward
and all persons required to be notified of the proceedings have
acquiesced in the exercise of the court’s jurisdiction;
(B) whether the court of this state is a more
appropriate forum than the court of any other state after
considering the factors described by Section 1253.102(b); and
(C) whether the court of any other state would
have jurisdiction under the factual circumstances of the matter.
Sec. 1253.152. ASSESSMENT OF EXPENSES AGAINST PARTY.
(a) If a court of this state determines that it acquired
jurisdiction of a proceeding for the appointment of a guardian of
the person or estate, or both, of a ward or proposed ward because a
party seeking to invoke the court’s jurisdiction engaged in
unjustifiable conduct, the court may assess against that party
necessary and reasonable expenses, including attorney’s fees,
investigative fees, court costs, communication expenses, witness
fees and expenses, and travel expenses.
(b) The court may not assess fees, costs, or expenses of any
kind against this state or a governmental subdivision, agency, or
instrumentality of this state unless authorized by other law.
SECTION 66A.06. The following are repealed:
(1) Section 1253.054, Estates Code, as effective
January 1, 2014;
(2) the changes in law made by Sections 66.05 and 66.06
of this Act to Sections 892 and 894, Texas Probate Code; and
(3) Section 895, Texas Probate Code, as added by
Section 66.07 of this Act.
SECTION 66A.07. This article takes effect January 1, 2014.
ARTICLE 67. SUPPORT FOR HABITAT PROTECTION MEASURES
SECTION 67.01. Chapter 403, Government Code, is amended by
adding Subchapter Q to read as follows:
SUBCHAPTER Q. SUPPORT FOR HABITAT PROTECTION MEASURES
Sec. 403.451. DEFINITIONS. In this subchapter:
(1) “Candidate conservation plan” means a plan to
implement such actions as necessary for the conservation of one or
more candidate species or species likely to become a candidate
species in the near future.

(2) “Candidate species” means a species identified by
the United States Department of the Interior as appropriate for
listing as threatened or endangered.
(3) “Endangered species,” “federal permit,” “habitat
conservation plan,” and “mitigation fee” have the meanings assigned
by Section 83.011, Parks and Wildlife Code.
Sec. 403.452. COMPTROLLER POWERS AND DUTIES. (a) To
promote compliance with federal law protecting endangered species
and candidate species in a manner consistent with this state’s
economic development and fiscal stability, the comptroller may:
(1) develop or coordinate the development of a habitat
conservation plan or candidate conservation plan;
(2) apply for and hold a federal permit issued in
connection with a habitat conservation plan or candidate
conservation plan developed by the comptroller or the development
of which is coordinated by the comptroller;
(3) enter into an agreement for the implementation of
a candidate conservation plan with the United States Department of
the Interior or assist another entity in entering into such an
agreement;
(4) establish the habitat protection fund, to be held
by the comptroller outside the treasury, to be used to support the
development or coordination of the development of a habitat
conservation plan or a candidate conservation plan, or to pay the
costs of monitoring or administering the implementation of such a
plan;
(5) impose or provide for the imposition of a
mitigation fee in connection with a habitat conservation plan or
such fees as are necessary or advisable for a candidate
conservation plan developed by the comptroller or the development
of which is coordinated by the comptroller; and
(6) implement, monitor, or support the implementation
of a habitat conservation plan or candidate conservation plan
developed by the comptroller or the development of which is
coordinated by the comptroller.
(b) The comptroller may solicit and accept appropriations,
fees under this subchapter, gifts, or grants from any public or
private source, including the federal government, this state, a
public agency, or a political subdivision of this state, for
deposit to the credit of the fund established under this section.
(c) The legislature finds that expenditures described by
Subsection (a)(4) serve public purposes, including economic
development in this state.
(d) The comptroller may establish a nonprofit corporation
or contract with a third party to perform one or more of the
comptroller’s functions under this section.
Sec. 403.453. STATE AGENCY POWERS AND DUTIES. (a) Upon
consideration of the factors identified in Subsection (b), the
comptroller may designate one of the following agencies to
undertake the functions identified in Section 403.452(a)(1), (2),
(3), (5), or (6):
(1) the Department of Agriculture;
(2) the Parks and Wildlife Department;
(3) the Texas Department of Transportation;
(4) the State Soil and Water Conservation Board; or
(5) any agency receiving funds through Article VI
(Natural Resources) of the 2012-2013 appropriations bill.
(b) In designating an agency pursuant to Subsection (a), the
comptroller shall consider the following factors:
(1) the economic sectors impacted by the species of
interest that will be included in the habitat conservation plan or
candidate conservation plan;
(2) the identified threats to the species of interest;
and
(3) the location of the species of interest.
(c) The comptroller may enter into a memorandum of
understanding or an interagency contract with any of the agencies
listed in this section to implement this subchapter and to provide
for the use of the habitat protection fund.
Sec. 403.454. CONFIDENTIAL INFORMATION. Information
collected under this subchapter by an agency, or an entity acting on
the agency’s behalf, from a private landowner or other participant
or potential participant in a habitat conservation plan, proposed
habitat conservation plan, candidate conservation plan, or
proposed candidate conservation plan is not subject to Chapter 552
and may not be disclosed to any person, including a state or federal
agency, if the information relates to the specific location,
species identification, or quantity of any animal or plant life for
which a plan is under consideration or development or has been
established under this subchapter. The agency may disclose
information described by this section only to the person who
provided the information unless the person consents in writing to
full or specified partial disclosure of the information.
Sec. 403.455. RULES. The comptroller or agencies identified
in Section 403.453 may adopt rules as necessary for the
administration of this subchapter.
ARTICLE 68. LICENSE PLATES ISSUED FOR CERTAIN GOLF CARTS
SECTION 68.01. Subsection (d), Section 504.510,
Transportation Code, as effective September 1, 2011, is amended to
read as follows:
(d) This section applies only to an owner of a golf cart who
resides[:
[(1)] on real property that is owned or under the
control of the United States Corps of Engineers and is required by
that agency to register the owner’s golf cart under this chapter[;
and
[(2) in a county that borders another state and has a
population of more than 120,750 but less than 121,000].
ARTICLE 69. CERTAIN COURT COSTS ASSOCIATED WITH THE OFFENSE OF
FAILING TO SECURE A CHILD PASSENGER IN A MOTOR VEHICLE
SECTION 69.01. The following laws are repealed:
(1) Subsection (b-1), Section 545.412, Transportation
Code;
(2) Section 102.104, Government Code; and
(3) Section 102.122, Government Code.
SECTION 69.02. The change in law made by this article
applies only to an offense committed on or after the effective date
of this Act. An offense committed before the effective date of this
Act is governed by the law in effect when the offense was committed,
and the former law is continued in effect for that purpose. For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense was
committed before that date.
ARTICLE 70. JUVENILE JUSTICE ALTERNATIVE
EDUCATION PROGRAMS
SECTION 70.01. Section 37.011, Education Code, is amended
by adding Subsections (a-3), (a-4), and (a-5) to read as follows:
(a-3) For purposes of this section and Section 37.010(a), a
county with a population greater than 125,000 is considered to be a
county with a population of 125,000 or less if the county:
(1) has a population of more than 200,000 and less than
220,000;
(2) has five or more school districts located wholly
within the county’s boundaries; and
(3) has located in the county a juvenile justice
alternative education program that, on May 1, 2011, served fewer
than 15 students.
(a-4) A school district located in a county considered to be
a county with a population of 125,000 or less under Subsection (a-3)
shall provide educational services to a student who is expelled
from school under this chapter. The district is entitled to count
the student in the district’s average daily attendance for purposes
of receipt of state funds under the Foundation School Program. An
educational placement under this section may include:
(1) the district’s disciplinary alternative education
program; or
(2) a contracted placement with:
(A) another school district;
(B) an open-enrollment charter school;
(C) an institution of higher education;
(D) an adult literacy council; or
(E) a community organization that can provide an
educational program that allows the student to complete the credits
required for high school graduation.
(a-5) For purposes of Subsection (a-4), an educational
placement other than a school district’s disciplinary alternative
education program is subject to the educational and certification
requirements applicable to an open-enrollment charter school under
Subchapter D, Chapter 12.
ARTICLE 71. CHRONIC HEALTH CONDITIONS SERVICES MEDICAID WAIVER
PROGRAM
SECTION 71.01. Subchapter B, Chapter 531, Government Code,
is amended by adding Section 531.0226 to read as follows:
Sec. 531.0226. CHRONIC HEALTH CONDITIONS SERVICES MEDICAID
WAIVER PROGRAM. (a) If feasible and cost-effective, the
commission may apply for a waiver from the federal Centers for
Medicare and Medicaid Services or another appropriate federal
agency to more efficiently leverage the use of state and local funds
in order to maximize the receipt of federal Medicaid matching funds
by providing benefits under the Medicaid program to individuals
who:
(1) meet established income and other eligibility
criteria; and
(2) are eligible to receive services through the
county for chronic health conditions.
(b) In establishing the waiver program under this section,
the commission shall:
(1) ensure that the state is a prudent purchaser of the
health care services that are needed for the individuals described
by Subsection (a);
(2) solicit broad-based input from interested
persons;
(3) ensure that the benefits received by an individual
through the county are not reduced once the individual is enrolled
in the waiver program; and
(4) employ the use of intergovernmental transfers and
other procedures to maximize the receipt of federal Medicaid
matching funds.
ARTICLE 72. DRIVER’S LICENSES AND PERSONAL IDENTIFICATION
CERTIFICATES
SECTION 72.01. Subchapter A, Chapter 521, Transportation
Code, is amended by adding Section 521.007 to read as follows:
Sec. 521.007. TEMPORARY VISITOR STATIONS. (a) The
department shall designate as temporary visitor stations certain
driver’s license offices.
(b) A driver’s license office designated as a temporary
visitor station under this section must have at least two staff
members who have completed specialized training on the temporary
visitor issuance guide published by the department.
(c) A driver’s license office designated as a temporary
visitor station shall provide information and assistance to other
driver’s license offices in the state.
SECTION 72.02. Subsection (b), Section 521.041,
Transportation Code, is amended to read as follows:
(b) The department shall maintain suitable indexes, in
alphabetical or numerical order, that contain:
(1) each denied application and the reasons for the
denial;
(2) each application that is granted; [and]
(3) the name of each license holder whose license has
been suspended, canceled, or revoked and the reasons for that
action; and
(4) the citizenship status of each holder of a license
or personal identification certificate.
SECTION 72.03. Section 521.101, Transportation Code, is
amended by adding Subsections (d-1), (f-2), (f-3), (f-4), and (k)
and amending Subsection (f) to read as follows:
(d-1) Unless the information has been previously provided
to the department, the department shall require each applicant for
an original, renewal, or duplicate personal identification
certificate to furnish to the department:
(1) proof of the applicant’s United States
citizenship; or
(2) documentation described by Subsection (f-2).
(f) A personal identification certificate:
(1) for an applicant who is a citizen, national, or
legal permanent resident of the United States or a refugee or asylee
lawfully admitted into the United States:
(A) expires on a date specified by the department
if the applicant is younger than 60 years of age; or
(B) does not expire if the applicant is 60 years
of age or older; or
(2) for an applicant not described by Subdivision (1),
expires on:
(A) the earlier of:
(i) a date specified by the department; or
(ii) the expiration date of the applicant’s
authorized stay in the United States; or
(B) the first anniversary of the date of
issuance, if there is no definite expiration date for the
applicant’s authorized stay in the United States[, except that a
certificate issued to a person 60 years of age or older does not
expire].
(f-2) An applicant who is not a citizen of the United States
must present to the department documentation issued by the
appropriate United States agency that authorizes the applicant to
be in the United States.
(f-3) The department may not issue a personal
identification certificate to an applicant who fails or refuses to
comply with Subsection (f-2).
(f-4) The department may not deny a personal identification
certificate to an applicant who complies with Subsection (f-2)
based on the duration of the person’s authorized stay in the United
States, as indicated by the documentation presented under
Subsection (f-2).
(k) Except as provided by this section, a personal
identification certificate issued under this chapter:
(1) must:
(A) be in the same format;
(B) have the same appearance and orientation; and
(C) contain the same type of information; and
(2) may not include any information that this chapter
does not reference or require.
SECTION 72.04. Section 521.103, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) Sections 521.101(f-2), (f-3), and (f-4) apply to a
personal identification certificate for which application is made
under this section.
SECTION 72.05. Section 521.121, Transportation Code, is
amended by adding Subsection (e) to read as follows:
(e) Except as provided by this section, a driver’s license
issued under this chapter:

(1) must:
(A) be in the same format;
(B) have the same appearance and orientation; and
(C) contain the same type of information; and
(2) may not include any information that this chapter
does not reference or require.
SECTION 72.06. Subsections (a) and (e), Section 521.142,
Transportation Code, are amended to read as follows:
(a) An application for an original license must state the
applicant’s full name and place and date of birth. This information
must be verified by presentation of proof of identity satisfactory
to the department. An applicant who is not a citizen of the United
States must present to the department documentation issued by the
appropriate United States agency that authorizes the applicant to
be in the United States before the applicant may be issued a
driver’s license. The department must accept as satisfactory proof
of identity under this subsection an offender identification card
or similar form of identification issued to an inmate by the Texas
Department of Criminal Justice if the applicant also provides
supplemental verifiable records or documents that aid in
establishing identity.
(e) The application must include any other information the
department requires to determine the applicant’s identity,
residency, competency, and eligibility as required by the
department or state law.
SECTION 72.07. Section 521.1425, Transportation Code, is
amended by amending Subsection (a) and adding Subsections (c) and
(d) to read as follows:
(a) Except as provided by Subsections [Subsection] (b) and
(c), the department may require each applicant for an original,
renewal, or duplicate driver’s license to furnish to the department
the information required by Section 521.142.
(c) Unless the information has been previously provided to
the department, the department shall require each applicant for an
original, renewal, or duplicate driver’s license to furnish to the
department:
(1) proof of the applicant’s United States
citizenship; or
(2) documentation described by Section 521.142(a).
(d) The department may not deny a driver’s license to an
applicant who provides documentation described by Section
521.142(a) based on the duration of the person’s authorized stay in
the United States, as indicated by the documentation presented
under Section 521.142(a).
SECTION 72.08. Section 521.271, Transportation Code, is
amended by amending Subsections (a) and (b) and adding Subsections
(a-2), (a-3), and (a-4) to read as follows:
(a) Each original driver’s license, [and] provisional
license, instruction permit, or occupational driver’s license
issued to an applicant who is a citizen, national, or legal
permanent resident of the United States or a refugee or asylee
lawfully admitted into the United States expires as follows:
(1) except as provided by Section 521.2711, a driver’s
license expires on the first birthday of the license holder
occurring after the sixth anniversary of the date of the
application;
(2) a provisional license expires on the 18th
birthday of the license holder;
(3) an instruction permit expires on the 18th birthday
of the license holder;
(4) an occupational driver’s license expires on the
first anniversary of the court order granting the license; and
(5) unless an earlier date is otherwise provided, a
driver’s license issued to a person whose residence or domicile is a
correctional facility or a parole facility expires on the first
birthday of the license holder occurring after the first
anniversary of the date of issuance.
(a-2) Each original driver’s license issued to an applicant
who is not a citizen, national, or legal permanent resident of the
United States or a refugee or asylee lawfully admitted into the
United States expires on:
(1) the earlier of:
(A) the first birthday of the license holder
occurring after the sixth anniversary of the date of the
application; or
(B) the expiration date of the license holder’s
lawful presence in the United States as determined by the
appropriate United States agency in compliance with federal law; or
(2) the first anniversary of the date of issuance, if
there is no definite expiration date for the applicant’s authorized
stay in the United States.
(a-3) Each original provisional license or instruction
permit issued to an applicant who is not a citizen, national, or
legal permanent resident of the United States or a refugee or asylee
lawfully admitted into the United States expires on the earliest
of:
(1) the 18th birthday of the license holder;
(2) the first birthday of the license holder occurring
after the date of the application; or
(3) the expiration of the license holder’s lawful
presence in the United States as determined by the United States
agency responsible for citizenship and immigration in compliance
with federal law.
(a-4) Each original occupational driver’s license issued to
an applicant who is not a citizen, national, or legal permanent
resident of the United States or a refugee or asylee lawfully
admitted into the United States expires on the earlier of:
(1) the first anniversary of the date of issuance; or
(2) the expiration of the license holder’s lawful
presence in the United States as determined by the appropriate
United States agency in compliance with federal law.
(b) Except as provided by Section 521.2711, a driver’s
license that is renewed expires on the earlier of:
(1) the sixth anniversary of the expiration date
before renewal if the applicant is a citizen, national, or legal
permanent resident of the United States or a refugee or asylee
lawfully admitted into the United States;
(1-a) for an applicant not described by Subdivision
(1):
(A) the earlier of:
(i) the sixth anniversary of the expiration
date before renewal; or
(ii) the expiration date of the applicant’s
authorized stay in the United States; or
(B) the first anniversary of the date of
issuance, if there is no definite expiration date for the
applicant’s authorized stay in the United States; or
(2) for a renewal driver’s license issued to a person
whose residence or domicile is a correctional facility or a parole
facility, the first birthday of the license holder occurring after
the first anniversary of the date of issuance unless an earlier date
is otherwise provided.
SECTION 72.09. Section 521.2711, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) Notwithstanding Subsections (a) and (b), an original or
renewal driver’s license issued to an applicant who is 85 years of
age or older and not a citizen, national, or legal permanent
resident of the United States or a refugee or asylee lawfully
admitted into the United States expires on:
(1) the earlier of:
(A) the second anniversary of the expiration date
before renewal; or
(B) the expiration date of the applicant’s
authorized stay in the United States; or
(2) the first anniversary of the date of issuance if
there is no definite expiration date for the applicant’s authorized
stay in the United States.
SECTION 72.10. Section 521.272, Transportation Code, is
amended by amending Subsection (c) and adding Subsection (d) to
read as follows:
(c) Notwithstanding Sections [Section] 521.271 and
521.2711, a driver’s license issued under this section, including a
renewal, duplicate, or corrected license, expires:
(1) if the license holder is a citizen, national, or
legal permanent resident of the United States or a refugee or asylee
lawfully admitted into the United States, on the first birthday of
the license holder occurring after the date of application, except
that the initial license issued under this section expires on the
second birthday of the license holder occurring after the date of
application; or
(2) if the applicant is not described by Subdivision
(1), on the earlier of:
(A) the expiration date of the applicant’s
authorized stay in the United States; or
(B) the first birthday of the license holder
occurring after the date of application, except that the initial
license issued under this section expires on the second birthday of
the license holder occurring after the date of application.
(d) Subsection (c) [This subsection] does not apply to:
(1) a provisional license;
(2) an instruction permit issued under Section
521.222; or
(3) a hardship license issued under Section 521.223.
SECTION 72.11. Section 521.421, Transportation Code, is
amended by adding Subsection (a-3) to read as follows:
(a-3) Except as provided by Subsections (a-1) and (a-2), the
fee for a driver’s license or personal identification certificate
that is issued to a person who is not a citizen, national, or legal
permanent resident of the United States or a refugee or asylee
lawfully admitted into the United States and that is valid for not
more than one year is $24.
SECTION 72.12. Section 522.005, Transportation Code, is
amended to read as follows:
Sec. 522.005. RULEMAKING AUTHORITY. The department may
adopt rules necessary to carry out this chapter and the federal act
and to maintain compliance with 49 C.F.R. Parts 383 and 384.
SECTION 72.13. Section 522.030, Transportation Code, is
amended to read as follows:
Sec. 522.030. CONTENT OF LICENSE. (a) A commercial
driver’s license must:
(1) be marked “Commercial Driver License” or “CDL”;
(2) be, to the extent practicable, tamper-proof; and
(3) include:
(A) the name and mailing address of the person to
whom it is issued;
(B) the person’s color photograph;
(C) a physical description of the person,
including sex, height, and eye color;
(D) the person’s date of birth;
(E) a number or identifier the department
considers appropriate;
(F) the person’s signature;
(G) each class of commercial motor vehicle that
the person is authorized to drive, with any endorsements or
restrictions;
(H) the name of this state; and
(I) the dates between which the license is valid.
(b) Except as provided by this section, a commercial
driver’s license issued under this chapter:
(1) must:
(A) be in the same format;
(B) have the same appearance and orientation; and
(C) contain the same type of information; and
(2) may not include any information that this chapter
does not reference or require.
(c) To the extent of a conflict or inconsistency between
this section and Section 522.013 or 522.051, Section 522.013 or
522.051 controls.
SECTION 72.14. Subsection (b), Section 522.033,
Transportation Code, is amended to read as follows:
(b) Notwithstanding Section 522.051, a commercial driver’s
license or commercial driver learner’s permit issued under this
section, including a renewal, duplicate, or corrected license,
expires:
(1) if the license or permit holder is a citizen,
national, or legal permanent resident of the United States or a
refugee or asylee lawfully admitted into the United States, on the
first birthday of the license holder occurring after the date of
application, except that the initial license issued under this
section expires on the second birthday of the license holder
occurring after the date of application; or
(2) if the applicant is not described by Subdivision
(1), on the earlier of:
(A) the expiration date of the applicant’s
authorized stay in the United States; or
(B) the first birthday of the license holder
occurring after the date of application, except that the initial
license issued under this section expires on the second birthday of
the license holder occurring after the date of application.
SECTION 72.15. Section 522.052, Transportation Code, is
amended by adding Subsections (i) and (j) to read as follows:
(i) Unless the information has been previously provided to
the department, the department shall require each applicant for a
renewal or duplicate commercial driver’s license to furnish to the
department:

(1) proof of the applicant’s United States
citizenship; or
(2) documentation described by Section 521.142(a).
(j) The department may not deny a renewal or duplicate
commercial driver’s license to an applicant who provides
documentation described by Section 521.142(a) based on the duration
of the person’s authorized stay in the United States, as indicated
by the documentation presented under Section 521.142(a).
SECTION 72.16. Not later than January 1, 2013, the
Department of Public Safety of the State of Texas shall submit to
the legislature a report evaluating the effectiveness of the
temporary visitor stations established under Section 521.007,
Transportation Code, as added by this article.
SECTION 72.17. The changes in law made by this article to
Chapters 521 and 522, Transportation Code, apply only to a driver’s
license, personal identification certificate, commercial driver’s
license, or commercial driver learner’s permit issued, reissued,
reinstated, or renewed on or after the effective date of this Act.
A driver’s license, personal identification certificate,
commercial driver’s license, or commercial driver learner’s permit
issued, reissued, reinstated, or renewed before the effective date
of this Act is governed by the law in effect when the license,
certificate, or permit was issued, reissued, reinstated, or
renewed, and the former law is continued in effect for that purpose.
ARTICLE 73. FEES FOR 9-1-1 SERVICES
SECTION 73.01. Subdivision (4), Section 771.001, Health and
Safety Code, is repealed.
SECTION 73.02. Section 771.001, Health and Safety Code, is
amended by amending Subdivision (13) and adding Subdivision (14) to
read as follows:
(13) “Wireless telecommunications connection” means
any voice-capable wireless communication mobile station that is
provided to a customer by a wireless [assigned a number containing
an area code assigned to Texas by the North American Numbering Plan
Administrator that connects a wireless service provider to the
local exchange] service provider.
(14) “Service provider” means a local exchange service
provider, a wireless service provider, and any other provider of
local exchange access lines or equivalent local exchange access
lines.
SECTION 73.03. Subsection (e), Section 771.071, Health and
Safety Code, is amended to read as follows:
(e) A [local exchange] service provider shall collect the
fees imposed on its customers under this section. Not later than
the 30th day after the last day of the month in which the fees are
collected, the [local exchange] service provider shall deliver the
fees to the comptroller. The comptroller shall deposit money from
the fees to the credit of the 9-1-1 services fee account in the
general revenue fund. The comptroller may establish alternative
dates for payment of fees under this section, provided that the
required payment date be no earlier than the 30th day after the last
day of the reporting period in which the fees are collected.
SECTION 73.04. Subsections (a) through (e), Section
771.072, Health and Safety Code, are amended to read as follows:
(a) In addition to the fees [fee] imposed under Sections
[Section] 771.071 and 771.0711, the commission shall impose a 9-1-1
equalization surcharge on each local exchange access line or
equivalent local exchange access line and each wireless
telecommunications connection. The surcharge may not be imposed
on:
(1) a line to coin-operated public telephone equipment
or to public telephone equipment operated by coin or by card reader;
(2) any line that the commission excluded from the
definition of a local exchange access line or an equivalent local
exchange access line under Section 771.063; or
(3) any wireless telecommunications connection that
constitutes prepaid wireless telecommunications service subject to
Section 771.0712 [customer receiving intrastate long-distance
service, including customers in an area served by an emergency
communication district, even if the district is not participating
in the regional plan].
(b) The surcharge must be a fixed amount, not to exceed 10
cents per month for each local exchange access line, equivalent
local exchange access line, or wireless telecommunications
connection [amount of the surcharge may not exceed one and
three-tenths of one percent of the charges for intrastate
long-distance service, as defined by the commission].
(c) Except as provided by Section 771.073(f), each [an
intrastate long-distance] service provider shall collect the
surcharge imposed on its customers under this section and shall
deliver the surcharges to the comptroller not later than the date
specified by the comptroller, provided that the required payment
date be no earlier than the 30th day after the last day of the
reporting period in which the surcharge is collected. If the
comptroller does not specify a date, the provider shall deliver the
surcharges to the comptroller not later than the 30th day after the
last day of the month in which the surcharges are collected.
(d) From the revenue received from the surcharge imposed
under this section, not more than 40 percent of the amount derived
from the application of the surcharge [at a rate of not more than .5
percent] shall be allocated to regional planning commissions or
other public agencies designated by the regional planning
commissions for use in carrying out the regional plans provided for
by this chapter. The allocations to the regional planning
commissions are not required to be equal, but should be made to
carry out the policy of this chapter to implement 9-1-1 service
statewide. Money collected under this section may be allocated to
an emergency communication district regardless of whether the
district is participating in the applicable regional plan.
(e) From the revenue received from the surcharge imposed by
this section, not more than 60 percent of the amount derived from
the application of the surcharge [at a rate of not more than .8
percent] shall be periodically allocated to fund grants awarded
under Section 777.009 and other activities related to the poison
control centers as required by Chapter 777.
SECTION 73.05. Section 771.0725, Health and Safety Code, is
amended by adding Subsection (e) to read as follows:
(e) The commission shall establish the rate for the
equalization surcharge imposed under Section 771.072 for each state
fiscal biennium in an amount that ensures the aggregate of the
anticipated surcharges collected from all customers for the
following 12 months does not exceed the aggregate of the surcharges
collected from all customers during the preceding 12 months. Any
change in the equalization surcharge rate may not become effective
before the 90th day after the date notice of the change is provided
by the commission to the service providers.
SECTION 73.06. Subsection (a), Section 771.073, Health and
Safety Code, is amended to read as follows:
(a) A customer on which a fee or surcharge is imposed under
this subchapter is liable for the fee or surcharge in the same
manner as the customer is liable for the charges for services
provided by the service provider. The service provider shall
collect the fees and surcharges in the same manner it collects those
charges for service, except that the service provider is not
required to take legal action to enforce the collection of the fees
or surcharges. Other than the fee imposed under Section 771.0712, a
[A] fee or surcharge imposed under this subchapter must be either
stated separately on the customer’s bill or combined in an
appropriately labeled single line item on the customer’s bill with
all other fees and surcharges that are imposed under this
subchapter or that are imposed for 9-1-1 emergency service by a
political subdivision. A service provider that combines the fees
and surcharges into a single line item for billing purposes must
maintain books and records reflecting the collection of each
separate fee and surcharge.
SECTION 73.07. Section 771.0735, Health and Safety Code, is
amended to read as follows:
Sec. 771.0735. SOURCING OF CHARGES FOR MOBILE
TELECOMMUNICATIONS SERVICES. The federal Mobile
Telecommunications Sourcing Act (4 U.S.C. Sections 116-126)
governs the sourcing of charges for mobile telecommunications
services. In accordance with that Act:
(1) mobile telecommunications services provided in a
taxing jurisdiction to a customer, the charges for which are billed
by or for the customer’s home service provider, shall be deemed to
be provided by the customer’s home service provider;
(2) all charges for mobile telecommunications
services that are deemed to be provided by the customer’s home
service provider in accordance with the Act are authorized to be
subjected to tax, charge, or fee by the taxing jurisdictions whose
territorial limits encompass the customer’s place of primary use,
regardless of where the mobile telecommunications services
originate, terminate, or pass through, and no other taxing
jurisdiction may impose taxes, charges, or fees on charges for such
mobile telecommunications services; and
(3) the fee and the surcharge imposed on wireless
telecommunications bills shall be administered in accordance with
Section 151.061, Tax Code.
SECTION 73.08. The changes in law made by this article apply
only to a fee or surcharge imposed on or after the later of the
effective date of this article or September 1, 2011. A fee or
surcharge imposed before that date is governed by the law as it
existed immediately before that date, and that law is continued in
effect for that purpose.
SECTION 73.09. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
this article to have immediate effect, this article takes effect on
the 91st day after the last day of the legislative session.
ARTICLE 74. OPERATION AND ADMINISTRATION OF THE TEXAS DEPARTMENT
OF HOUSING AND COMMUNITY AFFAIRS
SECTION 74.01. Section 2306.022, Government Code, is
amended to read as follows:
Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
Department of Housing and Community Affairs is subject to Chapter
325 (Texas Sunset Act). Unless continued in existence as provided
by that chapter, the department is abolished and this chapter
expires September 1, 2013 [2011].
SECTION 74.02. Subsections (d-1) and (d-2), Section
2306.111, Government Code, are amended to read as follows:
(d-1) In allocating low income housing tax credit
commitments under Subchapter DD, the department shall, before
applying the regional allocation formula prescribed by Section
2306.1115, set aside for at-risk developments, as defined by
Section 2306.6702, not less than the minimum amount of housing tax
credits required under Section 2306.6714. Funds or credits are not
required to be allocated according to the regional allocation
formula under Subsection (d) if:
(1) the funds or credits are reserved for
contract-for-deed conversions or for set-asides mandated by state
or federal law and each contract-for-deed allocation or set-aside
allocation equals not more than 10 percent of the total allocation
of funds or credits for the applicable program;
(2) the funds or credits are allocated by the
department primarily to serve persons with disabilities; or
(3) the funds are housing trust funds administered by
the department under Sections 2306.201-2306.206 that are not
otherwise required to be set aside under state or federal law and do
not exceed $3 million for each programmed activity during each
application cycle.
(d-2) In allocating low income housing tax credit
commitments under Subchapter DD, the department shall allocate five
percent of the housing tax credits in each application cycle to
developments that receive federal financial assistance through the
Texas Rural Development Office of the United States Department of
Agriculture. Any funds allocated to developments under this
subsection that involve rehabilitation must come from the funds set
aside for at-risk developments under Section 2306.6714 and any
additional funds set aside for those developments under Subsection
(d-1). This subsection does not apply to a development financed
wholly or partly under Section 538 of the Housing Act of 1949 (42
U.S.C. Section 1490p-2) unless the development involves the
rehabilitation of an existing property that has received and will
continue to receive as part of the financing of the development
federal financial assistance provided under Section 515 of the
Housing Act of 1949 (42 U.S.C. Section 1485).
SECTION 74.03. Section 2306.67022, Government Code, is
amended to read as follows:
Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. At
least biennially, the [The] board [annually] shall adopt a
qualified allocation plan and a corresponding manual to provide
information regarding the administration of and eligibility for the
low income housing tax credit program. The board may adopt the plan
and manual annually, as considered appropriate by the board.
SECTION 74.04. Subsections (b) and (f), Section 2306.6711,
Government Code, are amended to read as follows:
(b) Not later than the deadline specified in the qualified
allocation plan, the board shall issue commitments for available
housing tax credits based on the application evaluation process
provided by Section 2306.6710. The board may not allocate to an
applicant housing tax credits in any unnecessary amount, as
determined by the department’s underwriting policy and by federal
law, and in any event may not allocate to the applicant housing tax
credits in an amount greater than $3 [$2] million in a single
application round or to an individual development more than $2
million in a single application round.
(f) The board may allocate housing tax credits to more than
one development in a single community, as defined by department
rule, in the same calendar year only if the developments are or will
be located more than two [one] linear miles [mile] apart. This
subsection applies only to communities contained within counties
with populations exceeding one million.
SECTION 74.05. Subsections (a), (b), and (c), Section
2306.6724, Government Code, are amended to read as follows:
(a) Regardless of whether the board will adopt the plan
annually or biennially [Not later than September 30 of each year],
the department, not later than September 30 of the year preceding
the year in which the new plan is proposed for use, shall prepare
and submit to the board for adoption any proposed [the] qualified
allocation plan required by federal law for use by the department in
setting criteria and priorities for the allocation of tax credits
under the low income housing tax credit program.
(b) Regardless of whether the board has adopted the plan
annually or biennially, the [The] board shall [adopt and] submit to
the governor any proposed [the] qualified allocation plan not later
than November 15 of the year preceding the year in which the new
plan is proposed for use.
[(c)] The governor shall approve, reject, or modify and
approve the proposed qualified allocation plan not later than
December 1.
SECTION 74.06. Section 1201.104, Occupations Code, is
amended by amending Subsections (a), (g), and (h) and adding
Subsections (a-1), (a-2), (a-3), and (a-4) to read as follows:
(a) Except as provided by Subsection (g) [(e)], as a
requirement for a manufacturer’s, retailer’s, broker’s,
installer’s, salvage rebuilder’s, or salesperson’s license, a
person who was not licensed or registered with the department or a
predecessor agency on September 1, 1987, must, not more than 12
months before applying for the person’s first license under this
chapter, attend and successfully complete eight [20] hours of
instruction in the law, including instruction in consumer
protection regulations.
(a-1) If the applicant is not an individual, the applicant
must have at least one related person who satisfies the
requirements of Subsection (a) [meets this requirement]. If that
applicant is applying for a retailer’s license, the related person
must be a management official who satisfies the requirements of
Subsections (a) and (a-2) at each retail location operated by the
applicant.
(a-2) An applicant for a retailer’s license must complete
four hours of specialized instruction relevant to the sale,
exchange, and lease-purchase of manufactured homes. The
instruction under this subsection is in addition to the instruction
required under Subsection (a).
(a-3) An applicant for an installer’s license must complete
four hours of specialized instruction relevant to the installation
of manufactured homes. The instruction under this subsection is in
addition to the instruction required under Subsection (a).
(a-4) An applicant for a joint installer-retailer license
must comply with Subsections (a-2) and (a-3), for a total of eight
hours of specialized instruction. The instruction under this
subsection is in addition to the instruction required under
Subsection (a).
(g) Subsections [Subsection] (a), (a-2), (a-3), and (a-4)
do [does] not apply to a license holder who applies:
(1) for a license for an additional business location;
or
(2) to renew or reinstate a license.
(h) An examination must be a requirement of successful
completion of any initial required course of instruction under this
section. The period needed to complete an examination under this
subsection may not be used to satisfy the minimum education
requirements under Subsection (a), (a-2), (a-3), or (a-4).
SECTION 74.07. Section 1201.303, Occupations Code, is
amended by amending Subsection (b) and adding Subsections (c)
through (g) to read as follows:

(b) The department shall establish an installation
inspection program in which at least 75 [25] percent of installed
manufactured homes are inspected on a sample basis for compliance
with the standards and rules adopted and orders issued by the
director. The program must place priority on inspecting
multisection homes and homes installed in Wind Zone II counties.
(c) On or after January 1, 2015, the director by rule shall
establish a third-party installation inspection program to
supplement the inspections of the department if the department is
not able to inspect at least 75 percent of manufactured homes
installed in each of the calendar years 2012, 2013, and 2014.
(d) The third-party installation inspection program
established under Subsection (c) must:
(1) establish qualifications for third-party
inspectors to participate in the program;
(2) require third-party inspectors to register with
the department before participating in the program;
(3) establish a biennial registration and renewal
process for third-party inspectors;
(4) require the list of registered third-party
inspectors to be posted on the department’s Internet website;
(5) establish clear processes governing inspection
fees and payment to third-party inspectors;
(6) establish the maximum inspection fee that may be
charged to a consumer;
(7) require a third-party inspection to occur not
later than the 14th day after the date of installation of the
manufactured home;
(8) establish a process for a retailer or broker to
contract, as part of the sale of a new or used manufactured home,
with an independent third-party inspector to inspect the
installation of the home;
(9) establish a process for an installer to schedule
an inspection for each consumer-to-consumer sale where a home is
reinstalled;
(10) if a violation is noted in an inspection, require
the installer to:
(A) remedy the violations noted;
(B) have the home reinspected at the installer’s
expense; and
(C) certify to the department that all violations
have been corrected;
(11) require an inspector to report inspection results
to the retailer, installer, and the department;
(12) require all persons receiving inspection results
under Subdivision (11) to maintain a record of the results at least
until the end of the installation warranty period;
(13) authorize the department to charge a filing fee
and an inspection fee for third-party inspections;
(14) authorize the department to continue to conduct
no-charge complaint inspections under Section 1201.355 on request,
but only after an initial installation inspection is completed;
(15) establish procedures to revoke the registration
of inspectors who fail to comply with rules adopted under this
section; and
(16) require the department to notify the relevant
state agency if the department revokes an inspector registration
based on a violation that is relevant to a license issued to the
applicable person by another state agency.
(e) Not later than January 1, 2015, the department shall
submit to the Legislative Budget Board, the Governor’s Office of
Budget, Planning, and Policy, and the standing committee of each
house of the legislature having primary jurisdiction over housing a
report concerning whether the department inspected at least 75
percent of manufactured homes installed in each of the calendar
years 2012, 2013, and 2014.
(f) Not later than December 1, 2015, the director shall
adopt rules as necessary to implement Subsections (c) and (d) if the
department did not inspect at least 75 percent of manufactured
homes installed in each of the calendar years 2012, 2013, and 2014.
Not later than January 1, 2016, the department shall begin
registering third-party inspectors under Subsections (c) and (d) if
the department inspections did not occur as described by this
subsection.
(g) If the department is not required to establish a
third-party installation inspection program as provided by
Subsection (c), Subsections (c), (d), (e), and (f) and this
subsection expire September 1, 2016.
SECTION 74.08. The changes in law made by this article to
Section 2306.6711, Government Code, apply only to an application
for low income housing tax credits that is submitted to the Texas
Department of Housing and Community Affairs during an application
cycle that begins on or after the effective date of this Act. An
application that is submitted during an application cycle that
began before the effective date of this Act is governed by the law
in effect at the time the application cycle began, and the former
law is continued in effect for that purpose.
SECTION 74.09. The change in law made by this article in
amending Section 1201.104, Occupations Code, applies only to an
application for a license filed with the executive director of the
manufactured housing division of the Texas Department of Housing
and Community Affairs on or after the effective date of this
article. An application for a license filed before that date is
governed by the law in effect on the date the application was filed,
and the former law is continued in effect for that purpose.
ARTICLE 75. FEDERAL FUNDS DESIGNATION
SECTION 75.01. Subchapter F, Chapter 401, Government Code,
is amended by adding Section 401.105 to read as follows:
Sec. 401.105. FEDERAL FUNDS DESIGNATION.
(a) Notwithstanding Section 487.051 or 487.351, on the written
request of the commissioner of agriculture or the administrative
head of a state agency designated under this subsection, the
governor may designate one or more state agencies, under the
Omnibus Budget Reconciliation Act of 1981 (Pub. L. No. 97-35) and 24
C.F.R. Part 570, Subpart I, to administer the state’s allocation of
federal funds provided under the community development block grant
nonentitlement program authorized by Title I of the Housing and
Community Development Act of 1974 (42 U.S.C. Section 5301 et seq.).
(b) Notwithstanding Subsection (a) or any other law, the
governor may designate any agency to administer all federal
community development block grant disaster recovery funds and to
transfer such federal funds to any agency.
ARTICLE 76. REGULATION OF POLITICAL CONTRIBUTIONS AND
EXPENDITURES, REPORTING OF PERSONAL FINANCIAL INFORMATION, AND
COMPLAINTS FILED WITH THE TEXAS ETHICS COMMISSION
SECTION 76.01. Section 253.0351, Election Code, is amended
by adding Subsection (c) to read as follows:
(c) A candidate or officeholder who deposits personal funds
in an account in which political contributions are held shall
report the amount of personal funds deposited as a loan and may
reimburse the amount deposited as a loan from political
contributions or unexpended personal funds deposited in the
account. The reimbursement may not exceed the amount reported as a
loan. Personal funds deposited in an account in which political
contributions are held are subject to Section 253.035 and must be
included in the reports of the total amount of political
contributions maintained required by Sections 254.031(a)(8) and
254.0611(a).
SECTION 76.02. Subsection (a), Section 253.040, Election
Code, is amended to read as follows:
(a) Except as provided by Section 253.0351(c), each [Each]
candidate or officeholder shall keep the person’s campaign and
officeholder contributions in one or more accounts that are
separate from any other account maintained by the person.
SECTION 76.03. Subsection (a), Section 254.031, Election
Code, is amended to read as follows:
(a) Except as otherwise provided by this chapter, each
report filed under this chapter must include:
(1) the amount of political contributions from each
person that in the aggregate exceed $50 and that are accepted during
the reporting period by the person or committee required to file a
report under this chapter, the full name and address of the person
making the contributions, and the dates of the contributions;
(2) the amount of loans that are made during the
reporting period for campaign or officeholder purposes to the
person or committee required to file the report and that in the
aggregate exceed $50, the dates the loans are made, the interest
rate, the maturity date, the type of collateral for the loans, if
any, the full name and address of the person or financial
institution making the loans, the full name and address, principal
occupation, and name of the employer of each guarantor of the loans,
the amount of the loans guaranteed by each guarantor, and the
aggregate principal amount of all outstanding loans as of the last
day of the reporting period;
(3) the amount of political expenditures that in the
aggregate exceed $100 [$50] and that are made during the reporting
period, the full name and address of the persons to whom the
expenditures are made, and the dates and purposes of the
expenditures;
(4) the amount of each payment made during the
reporting period from a political contribution if the payment is
not a political expenditure, the full name and address of the person
to whom the payment is made, and the date and purpose of the
payment;
(5) the total amount or a specific listing of the
political contributions of $50 or less accepted and the total
amount or a specific listing of the political expenditures of $100
[$50] or less made during the reporting period;
(6) the total amount of all political contributions
accepted and the total amount of all political expenditures made
during the reporting period;
(7) the name of each candidate or officeholder who
benefits from a direct campaign expenditure made during the
reporting period by the person or committee required to file the
report, and the office sought or held, excluding a direct campaign
expenditure that is made by the principal political committee of a
political party on behalf of a slate of two or more nominees of that
party; [and]
(8) as of the last day of a reporting period for which
the person is required to file a report, the total amount of
political contributions accepted, including interest or other
income on those contributions, maintained in one or more accounts
in which political contributions are deposited as of the last day of
the reporting period;
(9) any credit, interest, rebate, refund,
reimbursement, or return of a deposit fee resulting from the use of
a political contribution or an asset purchased with a political
contribution that is received during the reporting period and the
amount of which exceeds $100;
(10) any proceeds of the sale of an asset purchased
with a political contribution that is received during the reporting
period and the amount of which exceeds $100;
(11) any investment purchased with a political
contribution that is received during the reporting period and the
amount of which exceeds $100;
(12) any other gain from a political contribution that
is received during the reporting period and the amount of which
exceeds $100; and
(13) the full name and address of each person from whom
an amount described by Subdivision (9), (10), (11), or (12) is
received, the date the amount is received, and the purpose for which
the amount is received.
SECTION 76.04. Section 571.122, Government Code, is amended
by adding Subsection (e) to read as follows:
(e) It is not a valid basis of a complaint to allege that a
report required under Chapter 254, Election Code, contains the
improper name or address of a person from whom a political
contribution was received if the name or address in the report is
the same as the name or address that appears on the check for the
political contribution.
SECTION 76.05. Subchapter E, Chapter 571, Government Code,
is amended by adding Section 571.1222 to read as follows:
Sec. 571.1222. DISMISSAL OF COMPLAINT CHALLENGING CERTAIN
INFORMATION IN POLITICAL REPORT. At any stage of a proceeding under
this subchapter, the commission shall dismiss a complaint to the
extent the complaint alleges that a report required under Chapter
254, Election Code, contains the improper name or address of a
person from whom a political contribution was received if the name
or address in the report is the same as the name or address that
appears on the check for the political contribution.
SECTION 76.06. Subsection (b), Section 571.123, Government
Code, is amended to read as follows:
(b) After a complaint is filed, the commission shall
immediately attempt to contact and notify the respondent of the
complaint by telephone or electronic mail. Not later than the
fifth business day after the date a complaint is filed, the
commission shall send written notice to the complainant and the
respondent. The written notice to the complainant and the
respondent must:

(1) state whether the complaint complies with the form
requirements of Section 571.122; [and]
(2) if the respondent is a candidate or officeholder,
state the procedure by which the respondent may designate an agent
with whom commission staff may discuss the complaint; and
(3) if applicable, include the information required by
Section 571.124(e).
SECTION 76.07. Subchapter E, Chapter 571, Government Code,
is amended by adding Section 571.1231 to read as follows:
Sec. 571.1231. DESIGNATION OF AGENT BY CERTAIN RESPONDENTS.
(a) This section applies only to a respondent who is a candidate or
officeholder.
(b) A respondent to a complaint filed against the respondent
may by writing submitted to the commission designate an agent with
whom the commission staff may communicate regarding the complaint.
(c) For purposes of this subchapter, including Section
571.140, communications with the respondent’s agent designated
under this section are considered communications with the
respondent.
SECTION 76.08. Subsection (b), Section 159.003, Local
Government Code, is amended to read as follows:
(b) The statement must:
(1) be filed with the county clerk of the county in
which the officer, justice, or candidate resides; and
(2) comply with Sections 572.022 and 572.023,
Government Code, and with any order of the commissioners court of
the county requiring additional disclosures.
SECTION 76.09. Subsection (a), Section 254.031, Election
Code, as amended by this Act, applies only to a report under Chapter
254, Election Code, that is required to be filed on or after the
effective date of this Act. A report under Chapter 254, Election
Code, that is required to be filed before the effective date of this
Act is governed by the law in effect on the date the report is
required to be filed, and the former law is continued in effect for
that purpose.
ARTICLE 77. FISCAL MATTERS RELATING TO CERTAIN GROUNDWATER
CONSERVATION DISTRICTS
SECTION 77.01. Section 36.0151, Water Code, is amended by
adding Subsections (f), (g), and (h) to read as follows:
(f) Before September 1, 2015, the commission may not create
a groundwater conservation district under this section in a county:
(1) in which the annual amount of surface water used is
more than 50 times the annual amount of groundwater produced;
(2) that is located in a priority groundwater
management area; and
(3) that has a population greater than 2.3 million.
(g) To the extent of a conflict between Subsection (f) and
Section 35.012, Subsection (f) prevails.
(h) The commission may charge an annual fee not to exceed
$500 to a county described by Subsection (f) for the purpose of
studying compliance with that subsection in that county and the
overall groundwater consumption in that county.
[ARTICLE 78 reserved]
ARTICLE 79. EDUCATION JOBS FUND
SECTION 79.01. For purposes of interpreting and
implementing Section 825.406, Government Code, the Teacher
Retirement System of Texas may not consider salaries of personnel
paid wholly or partly from the Education Jobs Fund distributed to
school districts under Title I of Pub. L. No. 111-226 as being paid
from federal funds.
ARTICLE 79A. CONFIDENTIALITY OF
CERTAIN PEACE OFFICER VOUCHERS
SECTION 79A.01. Subchapter H, Chapter 660, Government Code,
is amended by adding Section 660.2035 to read as follows:
Sec. 660.2035. CONFIDENTIALITY OF CERTAIN PEACE OFFICER
VOUCHERS; QUARTERLY SUMMARIES. (a) A voucher or other expense
reimbursement form, and any receipt or other document supporting
that voucher or other expense reimbursement form, that is submitted
or to be submitted under Section 660.027 is confidential under
Chapter 552 for a period of 18 months following the date of travel
if the voucher or other expense reimbursement form is submitted or
is to be submitted for payment or reimbursement of a travel expense
incurred by a peace officer while assigned to provide protection
for an elected official of this state or a member of the elected
official’s family.
(b) At the expiration of the period provided by Subsection
(a), the voucher or other expense reimbursement form and any
supporting documents become subject to disclosure under Chapter 552
and are not excepted from public disclosure or confidential under
that chapter or other law, except that the following provisions of
that chapter apply to the information in the voucher, reimbursement
form, or supporting documents:
(1) Section 552.117;
(2) Section 552.1175;
(3) Section 552.119;
(4) Section 552.136;
(5) Section 552.137;
(6) Section 552.147; and
(7) Section 552.152.
(c) A state agency that submits vouchers or other expense
reimbursement forms described by Subsection (a) shall prepare
quarterly a summary of the amounts paid or reimbursed by the
comptroller based on those vouchers or other expense reimbursement
forms. Each summary must:
(1) list separately for each elected official the
final travel destinations and the total amounts paid or reimbursed
in connection with protection provided to each elected official and
that elected official’s family members; and
(2) itemize the amounts listed under Subdivision (1)
by the categories of travel, fuel, food, lodging or rent, and other
operating expenses.
(d) The itemized amounts under Subsection (c)(2) must equal
the total amount listed under Subsection (c)(1) for each elected
official for the applicable quarter.
(e) A summary prepared under Subsection (c) may not include:
(1) the number or names of the peace officers or
elected official’s family members identified in the vouchers,
expense reimbursement forms, or supporting documents;
(2) the name of any business or vendor identified in
the vouchers, expense reimbursement forms, or supporting
documents; or
(3) the locations in which expenses were incurred,
other than the city, state, and country in which incurred.
(f) A summary prepared under Subsection (c) is subject to
disclosure under Chapter 552, except as otherwise excepted from
disclosure under that chapter.
(g) A state agency that receives a request for information
described by Subsection (a) during the period provided by that
subsection may withhold that information without the necessity of
requesting a decision from the attorney general under Subchapter G,
Chapter 552. The Supreme Court of Texas has original and exclusive
mandamus jurisdiction over any dispute regarding the construction,
applicability, or constitutionality of Subsection (a). The supreme
court may appoint a master to assist in the resolution of any such
dispute as provided by Rule 171, Texas Rules of Civil Procedure, and
may adopt additional rules as necessary to govern the procedures
for the resolution of any such dispute.
SECTION 79A.02. Section 660.2035, Government Code, as added
by this article, applies according to its terms in relation to
travel vouchers or other reimbursement form and any supporting
documents that pertain to expenses incurred or paid on or after the
effective date of this article.
ARTICLE 80. EFFECTIVE DATE
SECTION 80.01. Except as otherwise provided by this Act:
(1) this Act takes effect September 1, 2011, if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution;
and
(2) if this Act does not receive the vote necessary for
effect on that date:
(A) this Act takes effect on the 91st day after
the last day of the legislative session; and
(B) a provision of this Act that purports to take
effect on September 1, 2011, takes effect on the date specified by
Paragraph (A) of this subdivision.

______________________________ ______________________________
President of the Senate Speaker of the House

I hereby certify that S.B. No. 1 passed the Senate on
June 3, 2011, by the following vote: Yeas 19, Nays 12;
June 13, 2011, Senate refused to concur in House amendments and
requested appointment of Conference Committee; June 15, 2011,
House granted request of the Senate; June 28, 2011, Senate adopted
Conference Committee Report by the following vote: Yeas 21,
Nays 9.

______________________________
Secretary of the Senate

I hereby certify that S.B. No. 1 passed the House, with
amendments, on June 10, 2011, by the following vote: Yeas 83,
Nays 62, one present not voting; June 15, 2011, House granted
request of the Senate for appointment of Conference Committee;
June 28, 2011, House adopted Conference Committee Report by the
following vote: Yeas 80, Nays 57, two present not voting.

______________________________
Chief Clerk of the House

Approved:

______________________________
Date

______________________________
Governor

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