By: Pitts H.B. No. 3790 A BILL TO BE ENTITLED AN ACT relating to state fiscal matters. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: ARTICLE 1. REDUCTION OF EXPENDITURES AND IMPOSITION OF CHARGES GENERALLY SECTION 1.01. This article applies to each state agency, as that term is defined by Section 317.001, Government Code. SECTION 1.02. Notwithstanding any other statute of this state, each state agency to which this article applies is authorized to reduce or recover expenditures by: (1) consolidating any reports or publications the agency is required to make and filing or delivering any of those reports or publications exclusively by electronic means; (2) extending the effective period of any license, permit, or registration the agency grants or administers; (3) entering into a contract with another governmental entity or with a private vendor to carry out any of the agency's duties; (4) modifying eligibility requirements for, the processes used to determine eligibility for, and the services provided to persons who receive benefits under any law the agency administers, including benefits and services required by federal law, to ensure that those benefits are received by the most deserving persons consistent with the purposes for which the benefits are provided; (5) providing that any communication between the agency and another person and any document required to be delivered to or by the agency, including any application, notice, billing statement, receipt, or certificate, may be made or delivered by e-mail or through the Internet; and (6) adopting and collecting fees or charges to cover any costs the agency incurs in performing its lawful functions. ARTICLE 2. REDUCTION IN GENERAL APPROPRIATIONS ACT SECTION 2.01. A state employee is not entitled to an amount from the state for expenses, per diem, travel, or salary that exceeds the amount authorized for those purposes by the General Appropriations Act. SECTION 2.02. An active, former, or retired visiting judge or justice is not entitled to an amount from the state for expenses, per diem, travel, or salary that exceeds the amount authorized for those purposes by the General Appropriations Act. SECTION 2.03. A local administrative district judge is not entitled to a salary from the state under Section 659.012(d), Government Code, that exceeds the amount authorized for that salary by the General Appropriations Act. SECTION 2.04. An active district judge is not entitled to travel expenses under Section 24.019, Government Code, in an amount that exceeds the amount authorized for those expenses by the General Appropriations Act. SECTION 2.05. A judge, justice, or prosecuting attorney is not entitled to an amount from the state for a salary, a salary supplement, office expenses or reimbursement of office expenses, or travel that exceeds the amount authorized for those purposes by the General Appropriations Act. SECTION 2.06. (a) A county is not entitled to receive from the state supplemental salary compensation for county prosecutors under Section 46.0031, Government Code, or longevity pay supplements reimbursement under Section 41.255, Government Code, or any other supplements for prosecutors, in an amount that exceeds the amount appropriated for those purposes by the General Appropriations Act. (b) A county is not entitled to state contributions for salaries or supplements under Chapter 25 or 26, Government Code, in an amount that exceeds the amounts appropriated for those purposes in the General Appropriations Act. (c) A county is not entitled to reimbursement under Article 11.071, Code of Criminal Procedure, for reimbursement for compensation of counsel under that article in an amount that exceeds the amount appropriated for that purpose in the General Appropriations Act. SECTION 2.07. A person reimbursed by the state for travel and expenses for attendance as a witness as provided by Article 35.27, Code of Criminal Procedure, is not entitled to an amount that exceeds the amount appropriated for that purpose by the General Appropriations Act. ARTICLE 3. FISCAL MATTERS REGARDING ASSISTANT PROSECUTORS SECTION 3.01. Section 41.255(f), 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 3.02. Section 41.255(g), Government Code, is repealed. ARTICLE 4. FISCAL MATTERS REGARDING PROCESS SERVERS SECTION 4.01. Subchapter A, Chapter 51, Government Code, is amended by adding Section 51.008 to read as follows: Sec. 51.008. FEES FOR PROCESS SERVER CERTIFICATION. (a) The process server review board established by supreme court order may recommend to the supreme court the fees to be charged for process server certification and renewal of certification. The supreme court must approve the fees recommended by the process server review board before the fees may be collected. (b) If a certification is issued or renewed for a term that is less than the certification period provided by supreme court rule, the fee for the certification shall be prorated so that the process server pays only that portion of the fee that is allocable to the period during which the certification is valid. On renewal of the certification on the new expiration date, the process server must pay the entire certification renewal fee. (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. (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 and guardians. SECTION 4.02. 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. SECTION 4.03. (a) The fees recommended and approved under Section 51.008, Government Code, as added by this article, apply to: (1) each person who holds a process server certification on the effective date of this Act; and (2) each person who applies for process server certification on or after the effective date of this Act. (b) The Office of Court Administration of the Texas Judicial System shall prorate the process server certification fee so that a person who holds a process server certification on the effective date of this Act pays only that portion of the fee that is allocable to the period during which the certification is valid. On renewal of the certification on the new expiration date, the entire certification renewal fee is payable. ARTICLE 5. FISCAL MATTERS REGARDING JUDICIAL AND COURT PERSONNEL TRAINING FUND SECTION 5.01. 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 6. FISCAL MATTERS REGARDING PAYMENT OF JURORS SECTION 6.01. Section 61.001(a), Government Code, is amended to read as follows: (a) Except as provided by Subsection (c), 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 [$40] 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. SECTION 6.02. Sections 61.0015(a) and (e), Government Code, are amended to read as follows: (a) The state shall reimburse a county the appropriate amount as provided in the General Appropriations Act [$34 a day] 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. (e) 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) [shall: [(1) pay the balance owed to the county when sufficient money described by Subsection (c) is available; or [(2) carry forward the balance owed to the county and pay the balance to the county when the next payment is required]. ARTICLE 7. STATE TAXES AND FEES SECTION 7.01. Section 34.04, Alcoholic Beverage Code, is amended by amending Subsection (b) and adding Subsections (c), (d), and (e) to read as follows: (b) The preparation and service of alcoholic beverages by the holder of an airline beverage permit is exempt from the tax imposed by Chapter 151, Tax Code [the Limited Sales, Excise and Use Tax Act]. An airline beverage service fee of five cents is imposed on each individual serving of an alcoholic beverage served by the permittee inside the state. The fee accrues at the time the container containing an alcoholic beverage is delivered to the passenger. The permittee may absorb the cost of the fee or may collect it from the passenger. Subject to Subsections (c) and (e), the [The] permittee shall remit the fees to the commission each month under a reporting system prescribed by the commission. (c) A permittee shall remit not later than the last workday of August of each odd-numbered year the portion prescribed by this subsection of the fees and taxes described by this section that accrue during that month and that would otherwise have been due in September under the reporting system in effect on January 1, 2011. The remittance must be accompanied by a report containing estimates for the month of August of the information ordinarily required on the report if it were filed in September. A remittance under this subsection must be equal to one of the following amounts, at the permittee's election: (1) 90 percent of the estimated amount of the taxes and fees the permittee is required to collect and remit for the August reporting period; or (2) the amount of taxes and fees the permittee actually collected and remitted in August of the preceding year. (d) The report and payment required by Subsection (c) may be made in conjunction with the report and payment ordinarily required during August under the reporting system prescribed by the commission. (e) A permittee who files a report required by Subsection (c) shall file a supplemental report not later than September 15 of each odd-numbered year that reports the total amount of taxes and fees collected for the month of August of that year and the amount required to be remitted. If the payment made under Subsection (c) is less than the amount required to be remitted, the supplemental report must be accompanied by a payment for the difference between the amount required to be remitted and the amount of the payment made under Subsection (c). If the payment made under Subsection (c) exceeds the amount required to be remitted, the supplemental report must state the amount of the overpayment. The permittee filing the supplemental report may take a credit in the amount of the overpayment against the next payment due under the reporting system prescribed by the commission. SECTION 7.02. Section 48.04, Alcoholic Beverage Code, is amended by amending Subsection (b) and adding Subsections (c), (d), and (e) to read as follows: (b) The preparation and service of alcoholic beverages by the holder of a passenger train beverage permit is exempt from the tax imposed by Chapter 151, Tax Code [the Limited Sales, Excise, and Use Tax Act (Section 151.001 et seq., Tax Code)]. A passenger train service fee of five cents is imposed on each individual serving of an alcoholic beverage served by the permittee inside the state. The fee accrues at the time the container containing an alcoholic beverage is delivered to the passenger. Subject to Subsections (c) and (e), the [The] permittee shall remit the fees to the commission each month under a reporting system prescribed by the commission. (c) A permittee shall remit not later than the last workday of August of each odd-numbered year the portion prescribed by this subsection of the fees and taxes described by this section that accrue during that month and that would otherwise have been due in September under the reporting system in effect on January 1, 2011. The remittance must be accompanied by a report containing estimates for the month of August of the information ordinarily required on the report if it were filed in September. A remittance under this subsection must be equal to one of the following amounts, at the permittee's election: (1) 90 percent of the estimated amount of the taxes and fees the permittee is required to collect and remit for the August reporting period; or (2) the amount of taxes and fees the permittee actually collected and remitted in August of the preceding year. (d) The report and payment required by Subsection (c) may be made in conjunction with the report and payment ordinarily required during August under the reporting system prescribed by the commission. (e) A permittee who files a report required by Subsection (c) shall file a supplemental report not later than September 15 of each odd-numbered year that reports the total amount of taxes and fees collected for the month of August of that year and the amount required to be remitted. If the payment made under Subsection (c) is less than the amount required to be remitted, the supplemental report must be accompanied by a payment for the difference between the amount required to be remitted and the amount of the payment made under Subsection (c). If the payment made under Subsection (c) exceeds the amount required to be remitted, the supplemental report must state the amount of the overpayment. The permittee filing the supplemental report may take a credit in the amount of the overpayment against the next payment due under the reporting system prescribed by the commission. SECTION 7.03. Section 201.07, Alcoholic Beverage Code, is amended to read as follows: Sec. 201.07. DUE DATE. (a) Subject to Subsections (b) and (d), the [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) Each permittee who is liable for the taxes imposed by this subchapter shall file not later than the last workday of August of each odd-numbered year the report that would otherwise have been due on or before September 15 of that year under Subsection (a) without accounting for any credit or discount to which the permittee is entitled. The report must contain estimates for the month of August of the information ordinarily required on the report if it were filed in September, other than information relating to any credit or discount to which the permittee is entitled. The permittee must remit with the report a payment equal to one of the following amounts, at the permittee's election: (1) 90 percent of the estimated amount of tax for which the permittee is liable for the month of August without accounting for any credit or discount to which the permittee is entitled; or (2) the amount of tax the permittee actually collected and remitted in August of the preceding year. (c) The report and payment required by Subsection (b) may be filed in conjunction with the report and payment required by Subsection (a) that is due on or before August 15 of an odd-numbered year. (d) A permittee who files a report required by Subsection (b) shall file a supplemental report not later than September 15 of each odd-numbered year that reports the total amount of tax for which the permittee is liable for the month of August of that year and the amount required to be remitted, after accounting for any credit or discount to which the permittee is entitled. If the payment made under Subsection (b) is less than the amount required to be remitted, the supplemental report must be accompanied by a payment for the difference between the amount required to be remitted and the amount of the payment made under Subsection (b). If the payment made under Subsection (b) exceeds the amount required to be remitted, the supplemental report must state the amount of the overpayment. The permittee filing the supplemental report may take a credit in the amount of the overpayment against the next payment due under Subsection (a). SECTION 7.04. Section 201.43, Alcoholic Beverage Code, is amended by amending Subsection (b) and adding Subsections (c), (d), and (e) to read as follows: (b) Subject to Subsections (c) and (e), the [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 permittee who is liable for the tax imposed by this subchapter shall file not later than the last workday of August of each odd-numbered year the report that would otherwise have been due on or before September 15 of that year under Subsection (b) without accounting for any credit or discount to which the permittee is entitled. The report must contain estimates for the month of August of the information ordinarily required on the report if it were filed in September, other than information relating to any credit or discount to which the permittee is entitled. The permittee must remit with the report a payment equal to one of the following amounts, at the permittee's election: (1) 90 percent of the estimated amount of tax the permittee is required to collect and remit during August without accounting for any credit or discount to which the permittee is entitled; or (2) the amount of tax the permittee actually collected and remitted in August of the preceding year. (d) The report and payment required by Subsection (c) may be filed in conjunction with the report and payment required by Subsection (b) that is due on or before August 15 of an odd-numbered year. (e) A permittee who files a report required by Subsection (c) shall file a supplemental report not later than September 15 of each odd-numbered year that reports the total amount of tax for which the permittee is liable for the month of August of that year and the amount required to be remitted, after accounting for any credit or discount to which the permittee is entitled. If the payment made under Subsection (c) is less than the amount required to be remitted, the supplemental report must be accompanied by a payment for the difference between the amount required to be remitted and the amount of the payment made under Subsection (c). If the payment made under Subsection (c) exceeds the amount required to be remitted, the supplemental report must state the amount of the overpayment. The permittee filing the supplemental report may take a credit in the amount of the overpayment against the next payment due under Subsection (b). SECTION 7.05. Section 203.03, Alcoholic Beverage Code, is amended by amending Subsection (b) and adding Subsections (c), (d), and (e) to read as follows: (b) Subject to Subsections (c) and (e), the [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 file not later than the last workday of August of each odd-numbered year the report that would otherwise have been due on or before September 15 of that year under Subsection (b) without accounting for any credit or discount to which the licensee is entitled. The report must contain estimates for the month of August of the information ordinarily required on the report if it were filed in September, other than information relating to any credit or discount to which the licensee is entitled. The licensee must remit with the report a payment equal to one of the following amounts, at the licensee's election: (1) 90 percent of the estimated amount of tax for which the licensee is liable for the month of August without accounting for any credit or discount to which the licensee is entitled; or (2) the amount of tax the licensee actually collected and remitted in August of the preceding year. (d) The report and payment required by Subsection (c) may be filed in conjunction with the report and payment required by Subsection (b) that is due on or before August 15 of an odd-numbered year. (e) A licensee who files a report required by Subsection (c) shall file a supplemental report not later than September 15 of each odd-numbered year that reports the total amount of tax for which the licensee is liable for the month of August of that year and the amount required to be remitted, after accounting for any credit or discount to which the licensee is entitled. If the payment made under Subsection (c) is less than the amount required to be remitted, the supplemental report must be accompanied by a payment for the difference between the amount required to be remitted and the amount of the payment made under Subsection (c). If the payment made under Subsection (c) exceeds the amount required to be remitted, the supplemental report must state the amount of the overpayment. The licensee filing the supplemental report may take a credit in the amount of the overpayment against the next payment due under Subsection (b). SECTION 7.06. Section 154.021(b), Tax Code, is amended to read as follows: (b) The tax rates are: (1) $70.51 [$70.50] per thousand on cigarettes weighing three pounds or less per thousand; and (2) the rate provided by Subdivision (1) plus $2.10 per thousand on cigarettes weighing more than three pounds per thousand. SECTION 7.07. Section 162.114, Tax Code, is amended by amending Subsections (a) and (c) and adding Subsections (e), (f), (g), and (h) to read as follows: (a) Except as provided by Subsections [Subsection] (b), (e), and (g), each person who is liable for the tax imposed by this subchapter, a terminal operator, and a licensed distributor shall file a return on or before the 25th day of the month following the end of each calendar month. (c) The return required by this section shall be accompanied by a payment for the amount of tax reported due, subject to Subsections (e) and (g). (e) Each person who is liable for collecting and remitting the tax imposed by this subchapter on a monthly basis shall file not later than the last workday of August of each odd-numbered year the return that would otherwise have been due on or before September 25 of that year under Subsection (a) without accounting for any credit or allowance to which the person is entitled. The return must contain estimates for the month of August of the information ordinarily required on the return if it were filed in September, other than information relating to any credit or allowance to which the person is entitled. The person must remit with the return a payment equal to one of the following amounts, at the person's election: (1) 90 percent of the estimated amount of tax the person is required to collect and remit during August without accounting for any credit or allowance to which the person is entitled; or (2) the amount of tax the person actually collected and remitted in August of the preceding year. (f) The return and payment required by Subsection (e) may be filed in conjunction with the return and payment required by Subsection (a) that is due on or before August 25 of an odd-numbered year. (g) A person who files a return required by Subsection (e) shall file a supplemental return not later than September 25 of each odd-numbered year that reports the total amount of tax collected for the month of August of that year and the amount required to be remitted, after accounting for any credit or allowance to which the person is entitled. If the payment made under Subsection (e) is less than the amount required to be remitted, the supplemental return must be accompanied by a payment for the difference between the amount required to be remitted and the amount of the payment made under Subsection (e). If the payment made under Subsection (e) exceeds the amount required to be remitted, the supplemental return must state the amount of the overpayment. The person filing the supplemental return may take a credit in the amount of the overpayment against the next payment due under Subsection (c). (h) The comptroller may adopt rules prescribing the information required on a return filed under Subsection (e) or a supplemental return filed under Subsection (g). SECTION 7.08. Section 162.215, Tax Code, is amended by amending Subsections (a) and (c) and adding Subsections (e), (f), (g), and (h) to read as follows: (a) Except as provided by Subsections [Subsection] (b), (e), and (g), each person who is liable for the tax imposed by this subchapter, a terminal operator, and a licensed distributor shall file a return on or before the 25th day of the month following the end of each calendar month. (c) The return required by this section shall be accompanied by a payment for the amount of tax reported due, subject to Subsections (e) and (g). (e) Each person who is liable for collecting and remitting the tax imposed by this subchapter on a monthly basis shall file not later than the last workday of August of each odd-numbered year the return that would otherwise have been due on or before September 25 of that year under Subsection (a) without accounting for any credit or allowance to which the person is entitled. The return must contain estimates for the month of August of the information ordinarily required on the return if it were filed in September, other than information relating to any credit or allowance to which the person is entitled. The person must remit with the return a payment equal to one of the following amounts, at the person's election: (1) 90 percent of the estimated amount of tax the person is required to collect and remit during August without accounting for any credit or allowance to which the person is entitled; or (2) the amount of tax the person actually collected and remitted in August of the preceding year. (f) The return and payment required by Subsection (e) may be filed in conjunction with the return and payment required by Subsection (a) that is due on or before August 25 of an odd-numbered year. (g) A person who files a return required by Subsection (e) shall file a supplemental return not later than September 25 of each odd-numbered year that reports the total amount of tax collected for the month of August of that year and the amount required to be remitted, after accounting for any credit or allowance to which the person is entitled. If the payment made under Subsection (e) is less than the amount required to be remitted, the supplemental return must be accompanied by a payment for the difference between the amount required to be remitted and the amount of the payment made under Subsection (e). If the payment made under Subsection (e) exceeds the amount required to be remitted, the supplemental return must state the amount of the overpayment. The person filing the supplemental return may take a credit in the amount of the overpayment against the next payment due under Subsection (c). (h) The comptroller may adopt rules prescribing the information required on a return filed under Subsection (e) or a supplemental return filed under Subsection (g). SECTION 7.09. Section 162.503, Tax Code, is amended to read as follows: Sec. 162.503. ALLOCATION OF GASOLINE TAX. (a) Except as provided by Subsection (b), on [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) The comptroller may not allocate revenue remitted to the comptroller during July and August of each odd-numbered year before the first workday of September. The revenue shall be allocated as otherwise provided by Subsection (a) not later than the fifth workday of September. SECTION 7.10. Section 162.504, Tax Code, is amended to read as follows: Sec. 162.504. ALLOCATION OF DIESEL FUEL TAX. (a) Except as provided by Subsection (b), on [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) The comptroller may not allocate revenue remitted to the comptroller during July and August of each odd-numbered year before the first workday of September. The revenue shall be allocated as otherwise provided by Subsection (a) not later than the fifth workday of September. SECTION 7.11. Section 171.152(c), Tax Code, is amended to read as follows: (c) Except as provided by Section 171.153, payment [Payment] of the tax covering the regular annual period is due May 15[,] of each year after the beginning of the regular annual period. However, if the first anniversary of the taxable entity's beginning date is after October 3 and before January 1, the payment of the tax covering the first regular annual period is due on the same date as the tax covering the initial period. SECTION 7.12. Subchapter D, Chapter 171, Tax Code, is amended by adding Section 171.153 to read as follows: Sec. 171.153. DATES ON WHICH PAYMENTS FROM CERTAIN LARGE TAXABLE ENTITIES ARE DUE. (a) For purposes of this section, a "large taxable entity" means a taxable entity for which the amount of the tax reported as due under this chapter for the preceding regular annual period exceeds the median amount of tax reported as due under this chapter of all taxable entities for the same annual period. A taxable entity may not be considered a large taxable entity before the regular annual period following the taxable entity's first regular annual period. Not later than June 1 of each year, the comptroller shall: (1) compute the median tax liability under this chapter of all taxable entities for the preceding regular annual period; and (2) post the information on the comptroller's Internet website for a taxable entity's use in determining whether the entity is a large taxable entity. (b) A large taxable entity shall pay the tax covering the regular annual period in five payments. The first four payments are due July 15, October 15, January 15, and April 15, and each must be in an amount equal to one-fourth of 90 percent of the large taxable entity's total tax owed for the preceding regular annual period. The large taxable entity shall make a final payment equal to the total tax for the regular annual period, minus the sum of the amounts of the first four payments. The final payment is due May 15. If the sum of the amounts of the first four payments exceeds the total tax for the regular annual period, the large taxable entity may deduct the amount of the overpayment from the next payment required to be made under this chapter or request a refund of that amount. (c) A large taxable entity that is authorized to request an extension under Section 171.202 may request an extension for making a tax payment required under this section. A request for an extension under this section must be made in accordance with procedures adopted by the comptroller by rule that are comparable to the procedures applicable to a request for an extension under Section 171.202, including the requirements for remitting a portion of the amount due with the request. (d) The comptroller shall adopt rules as necessary prescribing: (1) the manner in which payments are made under this section and any information that must accompany the payments; and (2) procedures for the making and granting of a request for an extension under this section that are comparable to the procedures under Section 171.202 to the extent practicable. (e) Notwithstanding the payment schedule required by this section, a large taxable entity's annual report is due on the date prescribed by Section 171.202, and a reference in this chapter to the date the report is originally due means the date prescribed by that section. SECTION 7.13. Subchapter B, Chapter 183, Tax Code, is amended by adding Section 183.024 to read as follows: Sec. 183.024. DUE DATES OF CERTAIN RETURNS AND PAYMENTS. (a) This section applies to the reporting and remittance of taxes imposed under this subchapter during August of each odd-numbered year and prevails to the extent of a conflict with Section 183.022 or 183.023. (b) A permittee shall file with the comptroller not later than the last workday of August of each odd-numbered year the tax return that would otherwise have been due on or before September 20 of that year under Section 183.022 without accounting for any credit or allowance to which the permittee is entitled. The return must contain estimates for the month of August of the information ordinarily required on the return if it were filed in September, other than information relating to any credit or allowance to which the permittee is entitled. The permittee must remit with the return a payment equal to one of the following amounts, at the permittee's election: (1) 90 percent of the estimated amount of tax imposed on the permittee during August without accounting for any credit or allowance to which the permittee is entitled; or (2) the amount of tax actually imposed on the permittee and remitted in August of the preceding year. (c) The return and payment required by Subsection (b) may be filed in conjunction with the return and payment required by Sections 183.022 and 183.023 that is due on or before August 20 of an odd-numbered year. (d) A permittee who files a return required by Subsection (b) shall file a supplemental return not later than September 20 of each odd-numbered year that reports the total amount of tax collected for the month of August of that year and the amount required to be remitted, after accounting for any credit or allowance to which the permittee is entitled. If the payment made under Subsection (b) is less than the amount required to be remitted, the supplemental return must be accompanied by a payment for the difference between the amount required to be remitted and the amount of the payment made under Subsection (b). If the payment made under Subsection (b) exceeds the amount required to be remitted, the supplemental return must state the amount of the overpayment. The permittee filing the supplemental return may take a credit in the amount of the overpayment against the next payment due under Section 183.023. SECTION 7.14. Section 181.002, Tax Code, is amended to read as follows: Sec. 181.002. RATE OF TAX. The rate of the tax imposed by this chapter is $0.0274 [$0.0275] for each 100 pounds or fraction of 100 pounds of taxable cement. SECTION 7.15. (a) Notwithstanding Section 171.153(a), Tax Code, as added by this article, the comptroller of public accounts shall make the initial computation of median tax liability and post the information on the comptroller's Internet website as required by that subsection not later than June 15 of the year in which Section 171.153, Tax Code, as added by this article, takes effect. (b) The initial payment from a large taxpayer under Section 171.153(b), Tax Code, as added by this article, is due July 15 of the year in which Section 171.153, Tax Code, as added by this article, takes effect. SECTION 7.16. (a) Except as provided by Subsection (b) of this section, 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: (1) except as provided by Subdivision (2) of this subsection, this article takes effect September 1, 2011; and (2) Section 171.152(c), Tax Code, as amended by this article, and Section 171.153, Tax Code, as added by this article, take effect June 1, 2012. (b) The changes in law made by this article to Sections 154.021(b) and 181.002, Tax Code, take effect September 1, 2011. ARTICLE 8. STATE PENSION REVIEW BOARD SECTION 8.01. Sections 801.113(c) and (e), Government Code, are amended to read as follows: (c) The governing board of a [any] public retirement system shall [may vote to] make an annual contribution to the State Pension Review Board in an amount equal [not] to [exceed] 50 cents for each active member and annuitant of the retirement system as of September 1 of the year for which the contribution is made. The contribution is payable in a lump sum. (e) The board is authorized to conduct training sessions, schools, or other educational activities for trustees and administrators of public retirement systems. The board may also furnish other appropriate services such as actuarial studies or other requirements of systems and may establish appropriate fees for these activities and services. [The fees may be based on whether or not the trustees, administrators, or systems contribute to the State Pension Review Board fund under Subsection (c) of this section.] The net proceeds of these fees shall be deposited in the fund. SECTION 8.02. The governing board of a public retirement system shall make the initial contribution required under Section 801.113(c), Government Code, as amended by this article, to the State Pension Review Board fund as required by that section on or before September 1, 2011. SECTION 8.03. 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 9. STATE BAR OF TEXAS SECTION 9.01. Section 81.054, Government Code, is amended by adding Subsections (m) and (n) to read as follows: (m) A member is not required to pay a membership fee for a year in which the member is employed as a full-time attorney by the office of the attorney general. (n) The state bar shall adopt rules governing the proration of a membership fee paid by an attorney who is not employed by the office of the attorney general for an entire year. SECTION 9.02. Sections 81.054(m) and (n), Government Code, as added by this article, apply to a membership fee for membership or renewal of membership in the State Bar of Texas that becomes due on or after the effective date of this article. A membership fee for membership or renewal of membership that becomes due before the effective date of this article is governed by the law in effect on the date the membership fee becomes due, and the former law is continued in effect for that purpose. SECTION 9.03. This article takes effect January 1, 2012. ARTICLE 10. COMPTROLLER: UNCLAIMED PROPERTY SECTION 10.01. Section 74.509, Property Code, is amended to read as follows: Sec. 74.509. HANDLING FEE FOR PROCESSING UNCLAIMED PROPERTY. (a) The comptroller shall deduct from each approved claim a handling fee of 10 percent of the amount of the claim and retain the fee in the general revenue fund [A handling fee may be deducted from the amount of the claim payment] if the approved claim [payment] is at least $100. (b) Subject to legislative appropriation, the comptroller may use the retained handling fees to pay the costs to process unclaimed property claims. SECTION 10.02. This article takes effect September 1, 2011. ARTICLE 11. TEXAS ETHICS COMMISSION SECTION 11.01. Section 305.005(c), Government Code, is amended to read as follows: (c) The registration fee and registration renewal fee are: (1) an amount prescribed by the General Appropriations Act of not more than $200 and not less than $100 for a registrant employed by an organization exempt from federal income tax under Section 501(c)(3) or 501(c)(4), Internal Revenue Code of 1986; (2) an amount prescribed by the General Appropriations Act of not more than $100 and not less than $50 for any person required to register solely because the person is required to register under Section 305.0041 [of this chapter]; or (3) an amount prescribed by the General Appropriations Act of not more than $1,000 and not less than $500 for any other registrant. SECTION 11.02. This article takes effect September 1, 2011. ARTICLE 12. FISCAL MATTERS REGARDING LEASING CERTAIN STATE FACILITIES SECTION 12.01. The heading to Section 2165.2035, Government Code, is amended to read as follows: Sec. 2165.2035. LEASE OF SPACE IN STATE-OWNED PARKING LOTS AND GARAGES; USE AFTER HOURS. SECTION 12.02. Subchapter E, Chapter 2165, Government Code, is amended by adding Sections 2165.204, 2165.2045, and 2165.2046 to read as follows: Sec. 2165.204. LEASE OF SPACE IN STATE-OWNED PARKING LOTS AND GARAGES; EXCESS INDIVIDUAL PARKING SPACES. (a) The commission may lease to a private individual an individual parking space in a state-owned parking lot or garage located in the city of Austin that the commission determines is not needed to accommodate the regular parking requirements of state employees who work near the lot or garage and visitors to nearby state government offices. (b) Money received from a lease under this section shall be deposited to the credit of the general revenue fund. Sec. 2165.2045. LEASE OF SPACE IN STATE-OWNED PARKING LOTS AND GARAGES; EXCESS BLOCKS OF PARKING SPACE. (a) The commission may lease to an institution of higher education or a local government all or a significant block of a state-owned parking lot or garage located in the city of Austin that the commission determines is not needed to accommodate the regular parking requirements of state employees who work near the lot or garage and visitors to nearby state government offices. (b) Money received from a lease under this section shall be deposited to the credit of the general revenue fund. Sec. 2165.2046. REPORTS ON PARKING PROGRAMS. On or before October 1 of each even-numbered year, the commission shall submit a report to the Legislative Budget Board describing the effectiveness of parking programs developed by the commission under this subchapter. The report must, at a minimum, include: (1) the yearly revenue generated by the programs; (2) the yearly administrative and enforcement costs of each program; (3) yearly usage statistics for each program; and (4) initiatives and suggestions by the commission to: (A) modify administration of the programs; and (B) increase revenue generated by the programs. SECTION 12.03. 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 September 1, 2011. ARTICLE 13. STATE DEBT SECTION 13.01. Chapter 1231, Government Code, is amended by adding Subchapter G to read as follows: SUBCHAPTER G. LIMIT ON STATE DEBT PAYABLE FROM GENERAL REVENUE FUND Sec. 1231.151. DEFINITIONS. In this subchapter: (1) "Maximum annual debt service" means the limitation on annual debt service imposed by Section 49-j(a), Article III, Texas Constitution. (2) "State debt payable from the general revenue fund" has the meaning assigned by Section 49-j(b), Article III, Texas Constitution. (3) "Unissued debt" means state debt payable from the general revenue fund that has been authorized but not issued. Sec. 1231.152. COMPUTATION OF DEBT LIMIT. In computing the annual debt service in a state fiscal year on state debt payable from the general revenue fund for purposes of determining whether additional state debt may be authorized without exceeding the maximum annual debt service, the board may employ any assumptions related to unissued debt that the board determines are necessary to reflect common or standard debt issuance practices authorized by law, including assumptions regarding: (1) interest rates; (2) debt maturity; and (3) debt service payment structures. Sec. 1231.153. REPORT ON COMPUTATION. (a) The board shall publish during each state fiscal year a report providing a detailed description of the method used to compute the annual debt service in that fiscal year on state debt payable from the general revenue fund for purposes of determining whether additional state debt may be authorized. The report must describe: (1) the debt service included in the computation, including debt service on issued and unissued debt; (2) the assumptions on which the debt service on unissued debt was based; and (3) any other factors required by law that affect the computation. (b) The board may publish the report required by this section as a component of any other report required by law, including the annual report required by Section 1231.102, or as an independent report. The board shall make the report available to the public. SECTION 13.02. The Bond Review Board shall publish the initial report required by Section 1231.153, Government Code, as added by this article, during the state fiscal year beginning September 1, 2011. SECTION 13.03. 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 September 1, 2011. ARTICLE 14. ELECTRONIC PAYMENTS SECTION 14.01. Section 403.016, Government Code, is amended to read as follows: Sec. 403.016. ELECTRONIC FUNDS TRANSFER AND ELECTRONIC PAY CARDS. (a) The comptroller shall establish and operate an electronic funds transfer system in accordance with this section. The comptroller may use the services of financial institutions, automated clearinghouses, and the federal government to establish and operate the electronic funds transfer system. The comptroller also shall establish and operate an efficient and effective system of making payments by electronic pay card. (b) The comptroller shall use either the electronic funds transfer system or an electronic pay card to pay an employee's net state salary and travel expense reimbursements [unless: [(1) the employee does not hold a classified position under the state's position classification plan and the employee's gross state salary is less than the gross state salary for a position classified to group 8, step 1, of the state position classification plan; or [(2) the employee holds a classified position under the state's position classification plan that is classified below group 8]. (c) The comptroller shall use either the electronic funds transfer system or an electronic pay card to make: (1) payments [of more than $100] to annuitants by the Employees Retirement System of Texas or the Teacher Retirement System of Texas under either system's administrative jurisdiction and payments to annuitants of any other retirement system who are paid from funds in the state treasury; (2) recurring payments to municipalities, counties, political subdivisions, special districts, and other governmental entities of this state; and (3) payments to vendors who choose to receive payment through the electronic funds transfer system or an electronic pay card rather than by warrant. (d) If the comptroller is not required by this section to use either the electronic funds transfer system or an electronic pay card to pay a person, the comptroller may use the electronic funds transfer system or an electronic pay card to pay the person on the person's request. (e)(1) [(f)(1)] Except as provided by Subdivisions (2) and (4) and subject to any limitation in rules adopted by the comptroller, an automated clearinghouse, or the federal government, the comptroller may use the electronic funds transfer system to deposit payments only to one or more accounts of a payee at one or more financial institutions, including credit unions. (2) The comptroller may also use the electronic funds transfer system to deposit a portion of an employee's gross pay into the employee's account at a credit union as prescribed by Subchapter G, Chapter 659. (3) A single electronic funds transfer may contain payments to multiple payees. Individual transfers or warrants are not required for each payee. (4) The comptroller may also use the electronic funds transfer system to deposit a portion of an employee's gross pay into an account of an eligible state employee organization for a membership as prescribed by Subchapter G, Chapter 659. (f) [(g)] When a law requires the comptroller to make a payment by warrant, the comptroller may instead make the payment through the electronic funds transfer system or by electronic pay card. The comptroller's use of the electronic funds transfer system, an electronic pay card, or any other payment means does not create a right that would not have been created if a warrant had been issued. (g) [(h) Notwithstanding any requirement in this section to make a payment through the electronic funds transfer system, the comptroller shall issue a warrant to pay a person if: [(1) the person properly notifies the comptroller that: [(A) receiving the payment by electronic funds transfer would be impractical to the person; [(B) receiving the payment by electronic funds transfer would be more costly to the person than receiving the payment by warrant; [(C) the person is unable to establish a qualifying account at a financial institution to receive electronic funds transfers; or [(D) the person chooses to receive the payment by warrant; or [(2) the state agency on whose behalf the comptroller makes the payment properly notifies the comptroller that: [(A) making the payment by electronic funds transfer would be impractical to the agency; or [(B) making the payment by electronic funds transfer would be more costly to the agency than making the payment by warrant. [(i)] Notwithstanding any requirement in this section to make a payment through the electronic funds transfer system or by electronic pay card, the comptroller may make a payment by warrant if the comptroller determines after conducting a cost analysis that[: [(1) using the electronic funds transfer system would be impractical to the state; or [(2)] the cost to the state of using the electronic funds transfer or electronic pay card system would exceed the cost of issuing a warrant. The comptroller shall submit to the Legislative Budget Board the cost analysis supporting each determination made by the comptroller under this subsection. (h) [(j)] The comptroller shall adopt rules to administer this section, including rules relating to allowing recipients of state payments to choose at appropriate times between receiving payment through the electronic funds transfer system, by electronic pay card, or by warrant [the notifications that may be provided to the comptroller under Subsection (h)]. SECTION 14.02. Subchapter B, Chapter 403, Government Code, is amended by adding Section 403.0161 to read as follows: Sec. 403.0161. CONTRACTS FOR ELECTRONIC PAY CARD SERVICES. The comptroller shall contract with one or more vendors for the provision of electronic pay card services. A contract under this section must be by competitive bid. The comptroller shall specify the qualifications for bidders, which must include requirements that the entity that issues the pay card must: (1) be federally insured or possess sufficient financial resources to ensure protection of payees; and (2) demonstrate adequate 24-hour customer service to ensure that all payees are able to reasonably access their funds worldwide at any time. SECTION 14.03. Section 659.084, Government Code, is amended to read as follows: Sec. 659.084. ELECTRONIC FUNDS TRANSFER. Salaries for state officers and employees paid once a month shall be paid through electronic funds transfer under Section 403.016 unless paid on an electronic pay card [warrant] as permitted under that section. SECTION 14.04. This article takes effect January 1, 2012. ARTICLE 15. FISCAL MATTERS RELATING TO SECRETARY OF STATE SECTION 15.01. 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 15.02. Subchapter B, Chapter 2158, Government Code, is repealed. SECTION 15.03. 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 15.04. 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 September 1, 2011. ARTICLE 16. FISCAL MATTERS REGARDING ATTORNEY GENERAL SECTION 16.01. Section 402.006, Government Code, is amended by adding Subsection (d) to read as follows: (d) The attorney general may charge a reasonable fee for the electronic filing of a document. SECTION 16.02. The heading to Section 402.0212, Government Code, is amended to read as follows: Sec. 402.0212. PROVISION OF LEGAL SERVICES--OUTSIDE COUNSEL; FEES. SECTION 16.03. Section 402.0212, Government Code, is amended by amending Subsections (b) and (c) and adding Subsections (d), (e), and (f) to read as follows: (b) At the request of a party to a contract described by Subsection (a), the attorney general shall review an invoice submitted to a state agency under the contract to determine whether the invoice is eligible for payment. The attorney general may charge the party requesting the review a reasonable fee for the review. (c) The attorney general may, at the attorney general's discretion, review an invoice submitted to a state agency under a contract described by Subsection (a). (d) For purposes of this section, the functions of a hearing examiner, administrative law judge, or other quasi-judicial officer are not considered legal services. (e) Subsections (a) and (d) do [(c) This section shall] not apply to the Texas Turnpike Authority division of the Texas Department of Transportation. (f) The attorney general may adopt rules as necessary to implement and administer this section. SECTION 16.04. Section 371.051, Transportation Code, is amended to read as follows: Sec. 371.051. ATTORNEY GENERAL REVIEW AND FEE. (a) A toll project entity may not enter into a comprehensive development agreement unless the attorney general reviews the proposed agreement and determines that it is legally sufficient. (b) The attorney general may charge a toll project entity a reasonable fee for the review described in Subsection (a). (c) If the toll project entity submits multiple proposed comprehensive development agreements relating to the same toll project for review, the entity shall pay the fee under Subsection (b) for each proposed comprehensive development agreement. (d) The toll project entity may collect or seek reimbursement of the fee under Subsection (b) from the private participant under the proposed comprehensive development agreement. (e) The attorney general may adopt rules necessary to implement and administer this section. SECTION 16.05. 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 16.06. The fee prescribed by Section 402.0212, Government Code, as amended by this article, applies only to invoices for legal services submitted to the office of the attorney general for review on or after the effective date of this article. SECTION 16.07. The fee prescribed by Section 371.051, Transportation Code, as amended by this article, applies only to a comprehensive development agreement submitted to the office of the attorney general on or after the effective date of this article. SECTION 16.08. 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 September 1, 2011. ARTICLE 17. TEXAS PRESERVATION TRUST FUND ACCOUNT SECTION 17.01. Sections 442.015(a), (b), and (f), 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 17.02. Sections 442.015(h), (i), (j), (k), and (l), Government Code, are repealed. SECTION 17.03. The comptroller 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 17.04. This article takes effect November 1, 2011. ARTICLE 18. FISCAL MATTERS REGARDING OPERATION OF STATE CEMETERY SECTION 18.01. Section 2165.256(a), Government Code, is amended to read as follows: (a) The State Cemetery Committee shall oversee all operations of the State Cemetery. The committee shall develop a budget for the operations of the State Preservation Board [commission] relating to the State Cemetery and determine the salary of employees of the State Preservation Board [commission] whose duties primarily relate to the operation of the State Cemetery. SECTION 18.02. Sections 2165.2561(a), (k), (l), (p), (q), (r), and (t), Government Code, are amended to read as follows: (a) The State Cemetery Committee is composed of: (1) three voting members appointed as follows: (A) one member of the general public appointed by the governor; (B) one member of the general public appointed by the governor from a list submitted by the lieutenant governor; and (C) one member of the general public appointed by the governor from a list submitted by the speaker of the house of representatives; and (2) three nonvoting advisory members appointed as follows: (A) one employee of the Texas Historical Commission appointed by the executive director of the Texas Historical Commission; (B) one employee of the State Preservation Board [Texas Building and Procurement Commission] appointed by the executive director of the State Preservation Board [Texas Building and Procurement Commission]; and (C) one employee of the Parks and Wildlife Department appointed by the executive director of the Parks and Wildlife Department. (k) The legislature shall separately appropriate money to the committee within the appropriations to the State Preservation Board [Texas Building and Procurement Commission] for all matters relating to the operation of the State Cemetery. Activities relating to maintenance of the State Cemetery grounds and monuments shall conform to guidelines for historic preservation submitted to the committee by the Texas Historical Commission. (l) Funds appropriated to the State Preservation Board [Texas Building and Procurement Commission] may be transferred by interagency contract for the performance of, at the direction of the committee, an act related to the State Cemetery. (p) If the executive director of the State Preservation Board [commission] has knowledge that a potential ground for removal exists, the executive director shall notify the presiding officer of the committee of the potential ground. The presiding officer shall then notify the governor and the attorney general that a potential ground for removal exists. If the potential ground for removal involves the presiding officer, the executive director shall notify the next highest ranking officer of the committee, who shall then notify the governor and the attorney general that a potential ground for removal exists. (q) The executive director of the State Preservation Board [commission] or the executive director's designee shall provide to members of the committee, as often as necessary, information regarding the requirements for office under this chapter, including information regarding a person's responsibilities under applicable laws relating to standards of conduct for state officers. (r) A person who is appointed to and qualifies for office as a member of the committee may not vote, deliberate, or be counted as a member in attendance at a meeting of the committee until the person completes a training program that complies with this subsection. The training program must provide the person with information regarding: (1) the legislation that created the State Cemetery and the State Cemetery Committee; (2) the programs operated by the committee; (3) the role and functions of the committee; (4) the rules of the committee, with an emphasis on any rules that relate to disciplinary and investigatory authority; (5) the current budget for the committee; (6) the results of the most recent formal audit of cemetery operations; (7) the requirements of: (A) the open meetings law, Chapter 551; (B) the public information law, Chapter 552; (C) the administrative procedure law, Chapter 2001; and (D) other laws relating to public officials, including conflict-of-interest laws; and (8) any applicable ethics policies adopted by the State Preservation Board [commission], the committee, or the Texas Ethics Commission. (t) The committee shall develop and implement policies that clearly separate the policymaking responsibilities of the committee and the management responsibilities of the executive director of the State Preservation Board [commission] and staff of the cemetery. SECTION 18.03. (a) Not later than January 1, 2012, the following are transferred from the Texas Facilities Commission to the State Preservation Board: (1) the powers, duties, functions, programs, and activities of the Texas Facilities Commission relating to the operation of the State Cemetery under Sections 2165.256 and 2165.2561, Government Code; (2) any obligations and contracts of the Texas Facilities Commission that are directly related to implementing a power, duty, function, program, or activity transferred under this subsection; and (3) all property and records in the custody of the Texas Facilities Commission that are related to a power, duty, function, program, or activity transferred under this subsection and all funds appropriated by the legislature for that power, duty, function, program, or activity. (b) The executive director of the State Preservation Board and the executive director of the Texas Facilities Commission may agree by memorandum of understanding to transfer to the State Preservation Board any personnel of the Texas Facilities Commission whose functions predominantly involve powers, duties, obligations, functions, and activities related to the operation of the State Cemetery under Sections 2165.256 and 2165.2561, Government Code. (c) A reference in law to the Texas Facilities Commission that relates to a power, duty, function, program, or activity transferred under Subsection (a) of this section means the State Preservation Board. SECTION 18.04. The Texas Facilities Commission and the State Preservation Board shall enter into a memorandum of understanding that: (1) identifies in detail the applicable powers and duties that are transferred by this article; and (2) establishes a plan for the identification and transfer of the records, personnel, property, and unspent appropriations of the Texas Facilities Commission that are used for purposes of the commission's powers and duties directly related to the operation of the State Cemetery under Sections 2165.256 and 2165.2561, Government Code. ARTICLE 19. FISCAL MATTERS CONCERNING INFORMATION TECHNOLOGY SECTION 19.01. 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 (2) providing shared information resources technology services. SECTION 19.02. Section 2157.068(d), Government Code, is amended to read as follows: (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 (2) providing shared information resources technology services. SECTION 19.03. Section 2170.057(d), Government Code, is amended to read as follows: (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 general revenue fund. The amounts transferred under this subsection may be appropriated to the department for: (1) developing statewide information resources technology policies; and (2) providing: (A) shared information resources technology services; and (B) network security services under Chapter 2059 [statewide network applications account established by Section 2054.011]. SECTION 19.04. 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 September 1, 2011. ARTICLE 20. FISCAL MATTERS REGARDING REGULATION OF INSURERS SECTION 20.01. 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 20.02. Sections 221.006, 222.007, 223.009, 401.151(e), and 401.154, Insurance Code, are repealed. SECTION 20.03. 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 September 1, 2011. ARTICLE 21. FISCAL MATTERS REGARDING HEALTH CARE DELIVERY SECTION 21.01. Subtitle A, Title 2, Insurance Code, is amended by adding Chapter 41 to read as follows: CHAPTER 41. HEALTH CARE PAYMENT AND DELIVERY SYSTEM REFORM SUBCHAPTER A. HEALTH CARE PAYMENT AND DELIVERY SYSTEM REFORM COMMITTEE Sec. 41.001. DEFINITION. In this chapter, "committee" means the Health Care Payment and Delivery System Reform Committee. Sec. 41.002. ESTABLISHMENT; PURPOSE; ADMINISTRATIVE SUPPORT. (a) The Health Care Payment and Delivery System Reform Committee is established to identify priority outcomes for cost containment and quality improvement in health benefit coverage and health care services in this state. (b) The committee is administratively attached to the department. The department shall provide administrative support and resources to the committee as necessary for the committee to perform its duties. Sec. 41.003. COMPOSITION OF COMMITTEE. The committee is composed of: (1) the following voting members: (A) a representative of the Health and Human Services Commission, appointed by the executive commissioner of the Health and Human Services Commission; (B) a representative of the Employees Retirement System of Texas, appointed by the executive director of the system; (C) two representatives of the Teacher Retirement System of Texas, appointed by the executive director of the system: (i) one of whom has specialized knowledge of basic plans under Chapter 1575; and (ii) one of whom has specialized knowledge of the catastrophic care coverage plan and the primary care coverage plan under Chapter 1579; (D) a representative of The Texas A&M University System, appointed by the governing board of the system; and (E) a representative of The University of Texas System, appointed by the governing board of the system; and (2) the following nonvoting members: (A) a representative of the speaker of the house of representatives, appointed by the speaker; (B) a representative of the office of the lieutenant governor, appointed by the lieutenant governor; (C) a representative of the House Public Health Committee or its successor, appointed by the chair of the committee; and (D) a representative of the Senate Health and Human Services Committee or its successor, appointed by the chair of the committee. Sec. 41.004. TERMS; REMOVAL. (a) Voting members of the committee serve staggered two-year terms, with the terms of three members expiring on February 1 of each year. The members shall draw lots at the first committee meeting to determine the length of each member's initial term and which members' terms expire each year. (b) The terms of the nonvoting members of the committee expire February 1 of each even-numbered year. (c) A member of the committee may be removed by the commissioner with cause stated in writing. The appropriate person or entity shall appoint in the manner provided by Section 41.003 a replacement for a member who leaves or is removed from the committee. Sec. 41.005. DUTIES. The committee shall: (1) develop a plan to identify priority outcomes for cost containment and quality improvement in health insurance and health care services in this state; (2) coordinate initiatives for reform of health care payment and delivery systems among state health payors; (3) review pilot program proposals submitted to the committee under Section 41.051(a) and recommend to the commissioner for approval pilot programs the committee determines to be consistent with purposes described by Section 41.002; (4) review funding proposals submitted to the committee under Section 41.051(b) and recommend to the commissioner pilot programs the committee determines to be eligible for funding under the rules adopted by the commissioner under Section 41.053; and (5) determine outcomes to be measured in evaluating the effectiveness of each program approved by the commissioner under Section 41.052. Sec. 41.006. SUBMISSION AND POSTING OF PRIORITY OUTCOME PLAN. Not later than September 1 of each even-numbered year, the committee shall: (1) update the priority outcome plan developed under Section 41.005(1) as necessary; (2) submit the priority outcome plan to: (A) the governor; and (B) the Legislative Budget Board; and (3) make the priority outcome plan available to the public on the Internet website maintained by the department. Sec. 41.007. EXPIRATION OF CHAPTER. This chapter expires September 1, 2021. [Sections 41.008-41.050 reserved for expansion] SUBCHAPTER B. HEALTH CARE PAYMENT AND DELIVERY SYSTEM REFORM PILOT PROGRAMS Sec. 41.051. PROPOSAL OF PILOT PROGRAMS BY PROVIDERS OF HEALTH CARE SERVICES. (a) An individual or entity that provides health care services in this state may submit to the committee a proposal for a pilot program to design and implement a new health care payment or delivery system. (b) An individual or entity that submits a pilot program proposal under Subsection (a) may submit to the committee an application for funding for the pilot program. An application may be submitted under this subsection: (1) in conjunction with a pilot program proposal; or (2) after a pilot program proposal is approved by the commissioner under Section 41.052. Sec. 41.052. APPROVAL BY COMMISSIONER; PILOT PROGRAM PROPOSAL AND FUNDING. (a) On recommendation of the committee, the commissioner may approve: (1) a pilot program proposal submitted to the committee under Section 41.051(a), if the commissioner finds that the pilot program: (A) adequately protects the interests of patients and consumers; and (B) may demonstrate improved economy and efficiency for health care payment or delivery; or (2) an application for funding for a pilot program submitted to the committee under Section 41.051(b). (b) The commissioner may approve an application under Subsection (a)(2) only to the extent that sufficient appropriations have been received by the department to fund the proposed pilot program. Sec. 41.053. RULES. The commissioner shall adopt rules necessary to implement this subchapter, including rules that establish a procedure through which a pilot program proposal or an application for funding for a pilot program may be submitted to, and approved by, the commissioner. SECTION 21.02. Chapter 162, Occupations Code, is amended by adding Subchapter F to read as follows: SUBCHAPTER F. PARTICIPATION IN PILOT PROGRAM TO PROMOTE HEALTH CARE PAYMENT AND DELIVERY SYSTEM REFORM Sec. 162.301. EMPLOYMENT OF PHYSICIANS. (a) A person, including a partnership, trust, association, or corporation, operating a pilot program approved by the Health Care Payment and Delivery System Reform Committee under Chapter 41, Insurance Code, may employ a physician: (1) for the purposes of the pilot program; and (2) for the duration of the pilot program, as approved. (b) A person that employs a physician under this section does not violate Section 164.052(a)(13) or (17) or 165.156, or any other law that prohibits the practice of medicine by a person other than a physician, to the extent that the physician is performing services for the purpose of the pilot program. (c) This section does not authorize a person to supervise or control the practice of medicine or permit the unauthorized practice of medicine as prohibited by this subtitle. Sec. 162.302. EXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2021. SECTION 21.03. Notwithstanding Section 41.006, Insurance Code, as added by this article, not later than February 1, 2012, the Health Care Payment and Delivery System Reform Committee shall develop the first plan required by Section 41.005(1), Insurance Code, as added by this article, submit the plan to the governor and Legislative Budget Board, and make the plan available to the public on the Texas Department of Insurance's Internet website. SECTION 21.04. This article takes effect September 1, 2011. ARTICLE 22. FISCAL MATTERS RELATED TO PUBLIC EDUCATION SECTION 22.01. Notwithstanding any other law, during the 2011-2012 and 2012-2013 school years, a school district may reduce the minimum number of days of service for educators employed under a contract for either of those school years and reduce the salary of those educators by an amount corresponding to the reduction in the number of days of service. SECTION 22.02. Section 25.112(a), Education Code, is amended to read as follows: (a) Except as otherwise authorized by this section, a school district may not enroll more than a district-wide average of 21 [22] students in [a] kindergarten, first, second, third, and [or] fourth grade classes [class]. That limitation does not apply during: (1) any 12-week period of the school year selected by the district, in the case of a district whose average daily attendance is adjusted under Section 42.005(c); or (2) the last 12 weeks of any school year in the case of any other district. SECTION 22.03. (a) Sections 21.402(a) and (b), Education Code, are amended 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 as provided by Subsection (b). [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 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) The commissioner shall adopt rules to establish a method for annually setting a salary schedule for classroom teachers, full-time librarians, full-time counselors certified under Subchapter B, and full-time school nurses based on the employee's level of experience. The commissioner's method may provide a salary level for each year of experience from 0 years through 20 years. Not later than June 1 of each year, the commissioner shall determine, based on the salary schedule, the minimum monthly salary for each classroom teacher, full-time librarian, full-time counselor certified under Subchapter B, and full-time nurse [the 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. (b) This section applies beginning with the 2012-2013 school year. SECTION 22.04. (a) Section 21.403(a), Education Code, is amended to read as follows: (a) A teacher, librarian, counselor, or nurse shall advance one level [step] on the minimum salary schedule established by commissioner rule under Section 21.402 for each year of experience as a teacher, librarian, counselor, or nurse until level [step] 20 is reached. (b) This section applies beginning with the 2012-2013 school year. SECTION 22.05. (a) Section 42.2516, Education Code, is amended by adding Subsection (e-1) to read as follows: (e-1) The amount of state aid or credit to which a school district is entitled under Section 42.2518 is in addition to the amount of revenue to which the district is entitled under Subsection (b). (b) This section applies beginning with the 2012-2013 school year. SECTION 22.06. (a) Subchapter E, Chapter 42, Education Code, is amended by adding Section 42.2518 to read as follows: Sec. 42.2518. ADDITIONAL STATE AID OR CREDIT AGAINST COST OF ATTENDANCE CREDITS FOR PROFESSIONAL STAFF SALARIES. (a) 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, as determined by the commissioner, equal to the difference between the district's salary cost under Section 21.402, as amended by __.B. ___, Acts of the 82nd Legislature, Regular Session, 2011, for all classroom teachers, full-time librarians, full-time counselors certified under Subchapter B, Chapter 21, and full-time school nurses employed by the district and an amount equal to what the district's salary costs would have been for that school year under Section 21.402, as it existed before amendment by __.B. ___, Acts of the 82nd Legislature, Regular Session, 2011. (b) A school district that is required to take action under Chapter 41 to reduce its wealth per student to the equalized wealth level is entitled to a credit, in the amount of state aid to which the district is entitled under this section, against the total amount required under Section 41.093 for the district to purchase attendance credits. (c) A determination by the commissioner under this section is final and may not be appealed. (d) The commissioner may adopt rules to implement this section. (b) This section applies beginning with the 2012-2013 school year. SECTION 22.07. Effective September 1, 2011, Sections 21.402(c) and (d), Education Code, are repealed. SECTION 22.08. Not later than January 1, 2012, the commissioner of education shall adopt rules to establish a method for annually setting a salary schedule as provided by Section 21.402(b), Education Code, as amended by this article. SECTION 22.09. Except as otherwise provided by this article, this article applies beginning with the 2011-2012 school year. SECTION 22.10. 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 September 1, 2011. ARTICLE 23. HEALTH AND HUMAN SERVICES BENEFITS IN GENERAL SECTION 23.01. Subchapter B, Chapter 531, Government Code, is amended by adding Section 531.0998 to read as follows: Sec. 531.0998. MEMORANDUM OF UNDERSTANDING REGARDING PUBLIC ASSISTANCE REPORTING INFORMATION SYSTEM. (a) In this section, "system" means the Public Assistance Reporting Information System (PARIS) operated by the Administration for Children and Families of the United States Department of Health and Human Services. (b) The commission, the Department of Aging and Disability Services, the Texas Veterans Commission, and the Veterans' Land Board shall enter into a memorandum of understanding for the purposes of: (1) coordinating and collecting information about the use and analysis among state agencies of data received from the system; and (2) developing new strategies for state agencies to use system data in ways that generate fiscal savings for the state. (c) Not later than October 15, 2012, the commission, the Department of Aging and Disability Services, the Texas Veterans Commission, and the Veterans' Land Board collectively shall submit to the governor and the Legislative Budget Board a report describing: (1) the frequency and success with which state agencies have used the system; (2) the costs to the state that were avoided as a result of state agencies' use of the system; and (3) recommendations for future use of the system by state agencies. (d) Subsection (c) and this subsection expire September 2, 2013. SECTION 23.02. Not later than December 1, 2011, the Health and Human Services Commission, the Department of Aging and Disability Services, the Texas Veterans Commission, and the Veterans' Land Board shall enter into a memorandum of understanding as required by Section 531.0998, Government Code, as added by this article. ARTICLE 24. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS SECTION 24.01. Section 31.0325, Human Resources Code, is repealed. SECTION 24.02. On the effective date of this Act, the Health and Human Services Commission and each health and human services agency, as defined by Section 531.001, Government Code, shall discontinue using electronic fingerprint-imaging or photo-imaging of applicants for and recipients of financial assistance under Chapter 31, Human Resources Code, or food stamp benefits under Chapter 33, Human Resources Code. ARTICLE 25. MEDICAID PROGRAM SECTION 25.01. (a) Section 531.001, Government Code, is amended by adding Subdivision (7) to read as follows: (7) "Telemonitoring" means the use of telecommunications and information technology to provide access to health assessment, intervention, consultation, supervision, and information across distance. Telemonitoring includes the use of technologies such as telephones, facsimile machines, e-mail systems, text messaging systems, and remote patient monitoring devices to collect and transmit patient data for monitoring and interpretation. (b) Subchapter B, Chapter 531, Government Code, is amended by adding Sections 531.02176, 531.02177, and 531.02178 to read as follows: Sec. 531.02176. MEDICAID TELEMONITORING PILOT PROGRAMS FOR DIABETES. (a) The commission shall determine whether the Medicaid Enhanced Care program's diabetes self-management training telemonitoring pilot program was cost neutral. (b) In determining whether the pilot program described by Subsection (a) was cost neutral, the commission shall, at a minimum, compare: (1) the health care costs of program participants who received telemonitoring services with the health care costs of a group of Medicaid recipients who did not receive telemonitoring services; (2) the health care services used by program participants who received telemonitoring services with the health care services used by a group of Medicaid recipients who did not receive telemonitoring services; (3) for program participants who received telemonitoring services, the amount spent on health care services before, during, and after the receipt of telemonitoring services; and (4) for program participants who received telemonitoring services, the health care services used before, during, and after the receipt of telemonitoring services. (c) If the commission determines that the pilot program described by Subsection (a) was cost neutral, the executive commissioner shall adopt rules for providing telemonitoring services through the Medicaid Texas Health Management Program for select diabetes patients in a manner comparable to that program. (d) If the commission determines that the pilot program described by Subsection (a) was not cost neutral, the commission shall develop and implement within the Medicaid Texas Health Management Program for select diabetes patients a new diabetes telemonitoring pilot program based on evidence-based best practices, provided that the commission determines implementing the new diabetes telemonitoring pilot program would be cost neutral. (e) In determining whether implementing a new diabetes telemonitoring pilot program under Subsection (d) would be cost neutral, the commission shall consider appropriate factors, including the following: (1) the target population, participant eligibility criteria, and the number of participants to whom telemonitoring services would be provided; (2) the type of telemonitoring technology to be used; (3) the estimated cost of the telemonitoring services to be provided; (4) the estimated cost differential to the state based on changes in participants' use of emergency department services, outpatient services, pharmaceutical and ancillary services, and inpatient services other than inpatient labor and delivery services; and (5) other indirect costs that may result from the provision of telemonitoring services. Sec. 531.02177. MEDICAID TELEMONITORING PILOT PROGRAM FOR CERTAIN CONDITIONS. (a) The commission shall develop and implement a pilot program within the Medicaid Texas Health Management Program to evaluate the cost neutrality of providing telemonitoring services to persons who are diagnosed with health conditions other than diabetes, if the commission determines implementing the pilot program would be cost neutral. (b) In determining whether implementing a pilot program under Subsection (a) would be cost neutral, the commission shall consider appropriate factors, including the following: (1) the types of health conditions that could be assessed through the program by reviewing existing research and other evidence on the effectiveness of providing telemonitoring services to persons with those conditions; (2) the target population, participant eligibility criteria, and the number of participants to whom telemonitoring services would be provided; (3) the type of telemonitoring technology to be used; (4) the estimated cost of the telemonitoring services to be provided; (5) the estimated cost differential to the state based on changes in participants' use of emergency department services, outpatient services, pharmaceutical and ancillary services, and inpatient services other than inpatient labor and delivery services; and (6) other indirect costs that may result from the provision of telemonitoring services. Sec. 531.02178. DISSEMINATION OF INFORMATION ABOUT EFFECTIVE TELEMONITORING STRATEGIES. The commission shall annually: (1) identify telemonitoring strategies implemented within the Medicaid program that have demonstrated cost neutrality or resulted in improved performance on key health measures; and (2) disseminate information about the identified strategies to encourage the adoption of effective telemonitoring strategies. (c) Not later than January 1, 2012, the executive commissioner of the Health and Human Services Commission shall adopt the rules required by Section 531.02176(c), Government Code, as added by this section, if the commission determines that the Medicaid Enhanced Care program's diabetes self-management training telemonitoring pilot program was cost neutral. (d) Not later than September 1, 2012, the Health and Human Services Commission shall determine whether implementing a new diabetes telemonitoring pilot program would be cost neutral if required by Section 531.02176(d), Government Code, as added by this section, and report that determination to the governor and the Legislative Budget Board. (e) Not later than September 1, 2012, the Health and Human Services Commission shall determine whether implementing a telemonitoring pilot program for health conditions other than diabetes would be cost neutral as required by Section 531.02177(a), Government Code, as added by this section, and report that determination to the governor and the Legislative Budget Board. SECTION 25.02. Subchapter B, Chapter 531, Government Code, is amended by adding Sections 531.02417 and 531.024171 to read as follows: Sec. 531.02417. MEDICAID NURSING SERVICES ASSESSMENTS. (a) In this section, "acute nursing services" means home health skilled nursing services, home health aide services, and private duty nursing services. (b) The commission shall develop an objective assessment process for use in assessing the needs of a Medicaid recipient for acute nursing services. The commission shall require that: (1) the assessment be conducted by a state employee or contractor who is not the person who will deliver any necessary services to the recipient and is not affiliated with the person who will deliver those services; and (2) the process include: (A) an assessment of specified criteria and documentation of the assessment results on a standard form; and (B) completion by the person conducting the assessment of any documents related to obtaining prior authorization for necessary nursing services. (c) The commission shall: (1) implement the objective assessment process developed under Subsection (b) within the Medicaid fee-for-service model and the primary care case management Medicaid managed care model; and (2) take necessary actions, including modifying contracts with managed care organizations under Chapter 533 to the extent allowed by law, to implement the process within the STAR and STAR+PLUS Medicaid managed care programs. Sec. 531.024171. THERAPY SERVICES ASSESSMENTS. (a) In this section, "therapy services" includes occupational, physical, and speech therapy services. (b) After implementing the objective assessment process for acute nursing services as required by Section 531.02417, the commission shall consider whether implementing a comparable process with respect to assessing the needs of a Medicaid recipient for therapy services would be feasible and beneficial. (c) If the commission determines that implementing a comparable process with respect to one or more types of therapy services is feasible and would be beneficial, the commission may implement the process within: (1) the Medicaid fee-for-service model; (2) the primary care case management Medicaid managed care model; and (3) the STAR and STAR+PLUS Medicaid managed care programs. SECTION 25.03. Subchapter B, Chapter 531, Government Code, is amended by adding Sections 531.086 and 531.0861 to read as follows: Sec. 531.086. STUDY REGARDING PHYSICIAN INCENTIVE PROGRAMS TO REDUCE HOSPITAL EMERGENCY ROOM USE FOR NON-EMERGENT CONDITIONS. (a) The commission shall conduct a study to evaluate physician incentive programs that attempt to reduce hospital emergency room use for non-emergent conditions by recipients under the medical assistance program. Each physician incentive program evaluated in the study must: (1) be administered by a health maintenance organization participating in the STAR or STAR + PLUS Medicaid managed care program; and (2) provide incentives to primary care providers who attempt to reduce emergency room use for non-emergent conditions by recipients. (b) The study conducted under Subsection (a) must evaluate: (1) the cost-effectiveness of each component included in a physician incentive program; and (2) any change in statute required to implement each component within the Medicaid fee-for-service or primary care case management model. (c) Not later than August 31, 2012, the executive commissioner shall submit to the governor and the Legislative Budget Board a report summarizing the findings of the study required by this section. (d) This section expires September 1, 2013. Sec. 531.0861. PHYSICIAN INCENTIVE PROGRAM TO REDUCE HOSPITAL EMERGENCY ROOM USE FOR NON-EMERGENT CONDITIONS. (a) The executive commissioner by rule shall establish a physician incentive program designed to reduce the use of hospital emergency room services for non-emergent conditions by recipients under the medical assistance program. (b) In establishing the physician incentive program under Subsection (a), the executive commissioner may include only the program components identified as cost-effective in the study conducted under Section 531.086. (c) If the physician incentive program includes the payment of an enhanced reimbursement rate for routine after-hours appointments, the executive commissioner shall implement controls to ensure that the after-hours services billed are actually being provided outside of normal business hours. ARTICLE 26. FEDERAL AUTHORIZATION REGARDING HEALTH AND HUMAN SERVICES PROGRAMS SECTION 26.01. If before implementing any provision of Article 23, 24, or 25 of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted. ARTICLE 27. FISCAL MATTERS CONCERNING RETIRED TEACHERS SECTION 27.01. Section 825.404(a), Government Code, is amended to read as follows: (a) During each fiscal year, the state shall contribute to the retirement system an amount equal to at least six and not more than 10 percent of the aggregate annual compensation of all members of the retirement system during that fiscal year. [The amount of the state contribution made under this section may not be less than the amount contributed by members during that fiscal year in accordance with Section 825.402.] SECTION 27.02. Section 1575.202(a), Insurance Code, is amended to read as follows: (a) Each state fiscal year, the state shall contribute to the fund an amount equal to 0.5 [one] percent of the salary of each active employee. SECTION 27.03. The changes in law made by this article apply beginning with the state fiscal year that begins September 1, 2011. ARTICLE 28. FISCAL MATTERS CONCERNING STATE REVENUE FOR SCHOOL DISTRICTS SECTION 28.01. Section 42.2516, Education Code, is amended by amending Subsection (b) and adding Subsection (b-2) to read as follows: (b) Notwithstanding any other provision of this title, but subject to the limit imposed by Subsection (b-2), 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) 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) an amount equal to the product of $120 multiplied by the number of students in weighted average daily attendance in the district; (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. (b-2) Notwithstanding any other provision of this section, the amount of state revenue to which a school district is entitled under Subsection (b) may not exceed the amount necessary to result in a total amount of state and local revenue per student in weighted average daily attendance of $8,000. ARTICLE 29. FISCAL MATTERS CONCERNING ADVANCED PLACEMENT SECTION 29.01. Section 28.053(h), 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 30. FISCAL MATTERS CONCERNING EARLY HIGH SCHOOL GRADUATION SECTION 30.01. Subchapter K, Chapter 56, Education Code, is amended by adding Section 56.2012 to read as follows: Sec. 56.2012. EXPIRATION OF SUBCHAPTER; ELIGIBILITY CLOSED. (a) This subchapter expires September 1, 2017. (b) Notwithstanding Section 56.203, a person may not receive an award under this subchapter if the person graduates from high school on or after September 1, 2011. SECTION 30.02. Section 54.213(b), Education Code, is amended to read as follows: (b) [Savings to the foundation school fund that occur as a result of the Early High School Graduation Scholarship program created in Subchapter K, Chapter 56, and that are not required for the funding of state credits for tuition and mandatory fees under Section 56.204 or school district credits under Section 56.2075 shall be used first to provide tuition exemptions under Section 54.212. Any of those savings remaining after providing tuition exemptions under Section 54.212 shall be used to provide tuition exemptions under Section 54.214.] The Texas Education Agency shall [also] accept and make available to provide tuition exemptions under Section 54.214 gifts, grants, and donations made to the agency for that purpose. The commissioner of education shall transfer those funds to the Texas Higher Education Coordinating Board to distribute to institutions of higher education that provide exemptions under that section. [Payment of funds under this subsection shall be made in the manner provided by Section 56.207 for state credits under Subchapter K, Chapter 56.] SECTION 30.03. Section 56.210, Education Code, is repealed. ARTICLE 31. FISCAL MATTERS CONCERNING TUITION EXEMPTIONS SECTION 31.01. Section 54.214(c), Education Code, is amended 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. SECTION 31.02. The change in law made by this article applies beginning with tuition and fees charged for the 2011 fall semester. Tuition and fees charged for a term or semester before the 2011 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 32. FISCAL MATTERS CONCERNING DUAL HIGH SCHOOL AND JUNIOR COLLEGE CREDIT SECTION 32.01. Section 130.008(c), Education Code, is amended to read as follows: (c) The contact hours attributable to the enrollment of a high school student in a course offered for joint high school and junior college credit under this section, excluding a course for which the student attending high school may receive course credit toward the physical education curriculum requirement under Section 28.002(a)(2)(C), shall be included in the contact hours used to determine the junior college's proportionate share of the state money appropriated and distributed to public junior colleges under Sections 130.003 and 130.0031, even if the junior college waives all or part of the tuition or fees for the student under Subsection (b). SECTION 32.02. This article applies beginning with funding for the 2011 fall semester. ARTICLE 33. EFFECTIVE DATE SECTION 33.01. Except as otherwise provided by this Act, this Act takes effect September 1, 2011.