82R22238 JJT/KLA/KKA/MXM/TJS-D
By: Pitts H.B. No. 3790
Substitute the following for H.B. No. 3790:
By: Pitts C.S.H.B. No. 3790
A BILL TO BE ENTITLED
AN ACT
relating to certain state fiscal matters; providing penalties.
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. FISCAL MATTERS REGARDING REGULATION AND TAXATION
OF INSURERS
SECTION 2.01. 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 2.02. Sections 221.006, 222.007, 223.009,
401.151(e), and 401.154, Insurance Code, are repealed.
SECTION 2.03. 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 3. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS
SECTION 3.01. Subchapter B, Chapter 31, Human Resources
Code, is amended by adding Section 31.0326 to read as follows:
Sec. 31.0326. VERIFICATION OF IDENTITY AND PREVENTION OF
DUPLICATE PARTICIPATION. The Health and Human Services Commission
shall use appropriate technology to:
(1) confirm the identity of applicants for benefits
under the financial assistance program; and
(2) prevent duplicate participation in the program by
a person.
SECTION 3.02. Chapter 33, Human Resources Code, is amended
by adding Section 33.0231 to read as follows:
Sec. 33.0231. VERIFICATION OF IDENTITY AND PREVENTION OF
DUPLICATE PARTICIPATION. The department shall use appropriate
technology to:
(1) confirm the identity of applicants for benefits
under the supplemental nutrition assistance program; and
(2) prevent duplicate participation in the program by
a person.
SECTION 3.03. Section 31.0325, Human Resources Code, is
repealed.
SECTION 3.04. If before implementing Section 31.0326 or
33.0231, Human Resources Code, as added by this article, a state
agency determines that a waiver or authorization from a federal
agency is necessary for implementation of that law, the agency
shall request the waiver or authorization and may delay
implementing that law until the waiver or authorization is granted.
SECTION 3.05. 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 4. TAX RECORDS
SECTION 4.01. Section 2153.201, Occupations Code, is
amended by amending Subsection (b) and adding Subsection (c) to
read as follows:
(b) A record required under Subsection (a) must:
(1) be available at all times for inspection by the
attorney general, the comptroller, or an authorized representative
of the attorney general or comptroller as provided by Subsection
(c);
(2) include information relating to:
(A) the kind of each machine;
(B) the date each machine is:
(i) acquired or received in this state; and
(ii) placed in operation;
(C) the location of each machine, including the:
(i) county;
(ii) municipality, if any; and
(iii) street or rural route number;
(D) the name and complete address of each
operator of each machine;
(E) if the owner is an individual, the full name
and address of the owner; and
(F) if the owner is not an individual, the name
and address of each principal officer or member of the owner; and
(3) be maintained[:
[(A)] at a permanent address in this state
designated on the application for a license under Section
2153.153[; and
[(B) until the second anniversary of the date the
owner ceases ownership of the machine that is the subject of the
record].
(c) A record required under Subsection (a) must be available
for inspection under Subsection (b) for at least four years and as
required by Section 111.0041, Tax Code.
SECTION 4.02. Section 111.0041, Tax Code, is amended to
read as follows:
Sec. 111.0041. RECORDS; BURDEN TO PRODUCE AND SUBSTANTIATE
CLAIMS. (a) Except as provided by Subsection (b), a [Any] taxpayer
who is required by this title to keep records shall keep those
records open to inspection by the comptroller, the attorney
general, or the authorized representatives of either of them for at
least four years.
(b) A taxpayer is required to keep records open for
inspection under Subsection (a) for more than four years throughout
any period when:
(1) any tax, penalty, or interest may be assessed,
collected, or refunded by the comptroller; or
(2) an administrative hearing is pending before the
comptroller, or a judicial proceeding is pending, to determine the
amount of the tax, penalty, or interest that is to be assessed,
collected, or refunded.
(c) A taxpayer shall produce contemporaneous records and
supporting documentation appropriate to the tax or fee for the
period in question to substantiate and enable verification of the
taxpayer's claim related to the amount of tax, penalty, or interest
to be assessed, collected, or refunded in an administrative or
judicial proceeding. Contemporaneous records and supporting
documentation appropriate to the tax or fee include invoices,
vouchers, checks, shipping records, contracts, and other written
documentation reflecting legal relationships and taxes collected
or paid.
(d) Summary records submitted by the taxpayer, including
accounting journals and ledgers, without supporting
contemporaneous records and documentation for the period in
question are not sufficient to substantiate and enable verification
of the taxpayer's claim regarding the amount of tax, penalty, or
interest that may be assessed, collected, or refunded.
(e) This section prevails over any other conflicting
provision of this title.
SECTION 4.03. Section 112.052, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) A taxpayer shall produce contemporaneous records and
supporting documentation appropriate to the tax or fee for the
period in question to substantiate and enable verification of a
taxpayer's claim relating to the amount of the tax, penalty, or
interest that is to be assessed, collected, or refunded, as
required by Section 111.0041.
SECTION 4.04. Section 112.151, Tax Code, is amended by
adding Subsection (f) to read as follows:
(f) A taxpayer shall produce contemporaneous records and
supporting documentation appropriate to the tax or fee for the
period in question to substantiate and enable verification of a
taxpayer's claim relating to the amount of the tax, penalty, or
interest that is to be assessed, collected, or refunded, as
required by Section 111.0041.
SECTION 4.05. Section 151.025(b), Tax Code, is amended to
read as follows:
(b) A record required by Subsection (a) [of this section]
shall be kept for not less than four years from the date [day] that
it is made unless:
(1) the comptroller authorizes in writing its
destruction at an earlier date; or
(2) Section 111.0041 requires that the record be kept
for a longer period.
SECTION 4.06. Section 152.063, Tax Code, is amended by
adding Subsection (h) to read as follows:
(h) Section 111.0041 applies to a person required to keep
records under this chapter.
SECTION 4.07. Section 152.0635, Tax Code, is amended by
adding Subsection (e) to read as follows:
(e) Section 111.0041 applies to a person required to keep
records under this chapter.
SECTION 4.08. Section 154.209(a), Tax Code, is amended to
read as follows:
(a) Except as provided by Section 111.0041, each [Each]
permit holder shall keep records available for inspection and
copying by the comptroller and the attorney general for at least
four years.
SECTION 4.09. Section 155.110(a), Tax Code, is amended to
read as follows:
(a) Except as provided by Section 111.0041, each [Each]
permit holder shall keep records available for inspection and
copying by the comptroller and the attorney general for at least
four years.
SECTION 4.10. Section 160.046, Tax Code, is amended by
adding Subsection (g) to read as follows:
(g) A person required to keep records under this section
shall also keep the records as required by Section 111.0041.
SECTION 4.11. Subchapter A, Chapter 162, Tax Code, is
amended by adding Section 162.0125 to read as follows:
Sec. 162.0125. DUTY TO KEEP RECORDS. A person required to
keep a record under this chapter shall also keep the record as
required by Section 111.0041.
SECTION 4.12. This article takes effect immediately if this
Act receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this article takes effect September 1, 2011.
ARTICLE 5. COLLECTION IMPROVEMENT PROGRAM
SECTION 5.01. Articles 103.0033(f), (h), (i), and (j), Code
of Criminal Procedure, are amended to read as follows:
(f) The [comptroller, in cooperation with the] office[,]
shall develop a methodology for determining the collection rate of
counties and municipalities described by Subsection (e) before
implementation of a program. The office [comptroller] shall
determine the rate for each county and municipality not later than
the first anniversary of the county's or municipality's adoption of
a program.
(h) The office[, in consultation with the comptroller,]
may:
(1) use case dispositions, population, revenue data,
or other appropriate measures to develop a prioritized
implementation schedule for programs; and
(2) determine whether it is not cost-effective to
implement a program in a county or municipality and grant a waiver
to the county or municipality.
(i) Each county and municipality shall at least annually
submit to the office [and the comptroller] a written report that
includes updated information regarding the program, as determined
by the office [in cooperation with the comptroller]. The report
must be in a form approved by the office [in cooperation with the
comptroller].
(j) The office [comptroller] shall periodically audit
counties and municipalities to verify information reported under
Subsection (i) and confirm that the county or municipality is
conforming with requirements relating to the program. [The
comptroller shall consult with the office in determining how
frequently to conduct audits under this section.]
SECTION 5.02. Section 133.058(e), Local Government Code, is
amended to read as follows:
(e) A municipality or county may not retain a service fee
if, during an audit under [Section 133.059 of this code or] Article
103.0033(j), Code of Criminal Procedure, the Office of Court
Administration of the Texas Judicial System [comptroller]
determines that the municipality or county is not in compliance
with Article 103.0033, Code of Criminal Procedure. The
municipality or county may continue to retain a service fee under
this section on receipt of a written confirmation from the Office of
Court Administration of the Texas Judicial System [comptroller]
that the municipality or county is in compliance with Article
103.0033, Code of Criminal Procedure.
SECTION 5.03. Section 133.103(c-1), Local Government Code,
is amended to read as follows:
(c-1) The treasurer shall send 100 percent of the fees
collected under this section to the comptroller if, during an audit
under [Section 133.059 of this code or] Article 103.0033(j), Code
of Criminal Procedure, the Office of Court Administration of the
Texas Judicial System [comptroller] determines that the
municipality or county is not in compliance with Article 103.0033,
Code of Criminal Procedure. The municipality or county shall
continue to dispose of fees as otherwise provided by this section on
receipt of a written confirmation from the Office of Court
Administration of the Texas Judicial System [comptroller] that the
municipality or county is in compliance with Article 103.0033, Code
of Criminal Procedure.
SECTION 5.04. This article takes effect September 1, 2011.
ARTICLE 6. PENALTIES FOR FAILURE TO REPORT OR REMIT
CERTAIN TAXES OR FEES
SECTION 6.01. Section 111.00455(b), Tax Code, is amended to
read as follows:
(b) The following are not contested cases under Subsection
(a) and Section 2003.101, Government Code:
(1) a show cause hearing or any hearing not related to
the collection, receipt, administration, or enforcement of the
amount of a tax or fee imposed, or the penalty or interest
associated with that amount, except for a hearing under Section
151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;
(2) a property value study hearing under Subchapter M,
Chapter 403, Government Code;
(3) a hearing in which the issue relates to:
(A) Chapters 72-75, Property Code;
(B) forfeiture of a right to do business;
(C) a certificate of authority;
(D) articles of incorporation;
(E) a penalty imposed under Section 151.703(d)
[151.7031];
(F) the refusal or failure to settle under
Section 111.101; or
(G) a request for or revocation of an exemption
from taxation; and
(4) any other hearing not related to the collection,
receipt, administration, or enforcement of the amount of a tax or
fee imposed, or the penalty or interest associated with that
amount.
SECTION 6.02. Section 151.433(f), Tax Code, is amended to
read as follows:
(f) If a person fails to file a report required by this
section or fails to file a complete report, the comptroller may
suspend or cancel one or more permits issued to the person under
Section 151.203 and may impose a civil or criminal penalty, or both,
under Section 151.703(d) [151.7031] or 151.709.
SECTION 6.03. Section 151.703, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) In addition to any other penalty authorized by this
section, a person who fails to file a report as required by this
chapter shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the taxpayer
subsequently files the report or whether any taxes were due from the
taxpayer for the reporting period under the required report.
SECTION 6.04. Section 152.045, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) In addition to any other penalty provided by law, the
owner of a motor vehicle subject to the tax on gross rental receipts
who is required to file a report as provided by this chapter and who
fails to timely file the report shall pay a penalty of $50. The
penalty provided by this subsection is assessed without regard to
whether the taxpayer subsequently files the report or whether any
taxes were due from the taxpayer for the reporting period under the
required report.
SECTION 6.05. Section 152.047, Tax Code, is amended by
adding Subsection (j) to read as follows:
(j) In addition to any other penalty provided by law, the
seller of a motor vehicle sold in a seller-financed sale who is
required to file a report as provided by this chapter and who fails
to timely file the report shall pay a penalty of $50. The penalty
provided by this subsection is assessed without regard to whether
the taxpayer subsequently files the report or whether any taxes
were due from the taxpayer for the reporting period under the
required report.
SECTION 6.06. Section 156.202, Tax Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) The minimum penalty under Subsections (a) and (b) [this
section] is $1.
(d) In addition to any other penalty authorized by this
section, a person who fails to file a report as required by this
chapter shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the taxpayer
subsequently files the report or whether any taxes were due from the
taxpayer for the reporting period under the required report.
SECTION 6.07. Section 162.401, Tax Code, is amended by
adding Subsection (c) to read as follows:
(c) In addition to any other penalty authorized by this
section, a person who fails to file a report as required by this
chapter shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the taxpayer
subsequently files the report or whether any taxes were due from the
taxpayer for the reporting period under the required report.
SECTION 6.08. Section 171.362, Tax Code, is amended by
amending Subsection (c) and adding Subsection (f) to read as
follows:
(c) The minimum penalty under Subsections (a) and (b) [this
section] is $1.
(f) In addition to any other penalty authorized by this
section, a taxable entity who fails to file a report as required by
this chapter shall pay a penalty of $50. The penalty provided by
this subsection is assessed without regard to whether the taxable
entity subsequently files the report or whether any taxes were due
from the taxable entity for the reporting period under the required
report.
SECTION 6.09. Subchapter B, Chapter 183, Tax Code, is
amended by adding Section 183.024 to read as follows:
Sec. 183.024. FAILURE TO PAY TAX OR FILE REPORT. (a) A
permittee who fails to file a report as required by this chapter or
who fails to pay a tax imposed by this chapter when due shall pay
five percent of the amount due as a penalty, and if the permittee
fails to file the report or pay the tax within 30 days after the day
the tax or report is due, the permittee shall pay an additional five
percent of the amount due as an additional penalty.
(b) The minimum penalty under Subsection (a) is $1.
(c) A delinquent tax draws interest beginning 60 days from
the due date.
(d) In addition to any other penalty authorized by this
section, a permittee who fails to file a report as required by this
chapter shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the permittee
subsequently files the report or whether any taxes were due from the
permittee for the reporting period under the required report.
SECTION 6.10. Section 771.0712, Health and Safety Code, is
amended by adding Subsections (c) and (d) to read as follows:
(c) A seller who fails to file a report or remit a fee
collected or payable as provided by this section and comptroller
rules shall pay five percent of the amount due and payable as a
penalty, and if the seller fails to file the report or remit the fee
within 30 days after the day the fee or report is due, the seller
shall pay an additional five percent of the amount due and payable
as an additional penalty.
(d) In addition to any other penalty authorized by this
section, a seller who fails to file a report as provided by this
section shall pay a penalty of $50. The penalty provided by this
subsection is assessed without regard to whether the seller
subsequently files the report or whether any taxes were due from the
seller for the reporting period under the required report.
SECTION 6.11. Section 151.7031, Tax Code, is repealed.
SECTION 6.12. The change in law made by this article applies
only to a report due or a tax or fee due and payable on or after the
effective date of this article. A report due or a tax or fee due and
payable before the effective date of this article is governed by the
law in effect at that time, and that law is continued in effect for
that purpose.
SECTION 6.13. This article takes effect immediately if this
Act receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this article takes effect September 1, 2011.
ARTICLE 7. CERTAIN FOUNDATION SCHOOL PROGRAM PAYMENTS
SECTION 7.01. Sections 42.259(c), (d), and (f), Education
Code, are amended to read as follows:
(c) Payments from the foundation school fund to each
category 2 school district shall be made as follows:
(1) 22 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October;
(3) 9.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of November;
(4) 7.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of April;
(5) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of May;
(6) 10 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of June;
(7) 13 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of July; and
(8) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(d) Payments from the foundation school fund to each
category 3 school district shall be made as follows:
(1) 45 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 35 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October; and
(3) 20 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(f) Except as provided by Subsection (c)(8) or (d)(3), any
[Any] previously unpaid additional funds from prior fiscal years
owed to a district shall be paid to the district together with the
September payment of the current fiscal year entitlement.
SECTION 7.02. Section 466.355(c), Government Code, is
repealed.
SECTION 7.03. The changes made by this article to Section
42.259, Education Code, apply only to a payment from the foundation
school fund that is made on or after the effective date of this
article. A payment to a school district from the foundation school
fund that is made before that date is governed by Section 42.259,
Education Code, as it existed before amendment by this article, and
the former law is continued in effect for that purpose.
SECTION 7.04. This article takes effect September 1, 2011.
ARTICLE 8. UNCLAIMED PROPERTY
SECTION 8.01. Section 74.101(a), Property Code, is amended
to read as follows:
(a) Each holder who on June 1 [30] holds property that is
presumed abandoned under Chapter 72, 73, or 75 of this code or under
Chapter 154, Finance Code, shall file a report of that property on
or before the following July [November] 1. The comptroller may
require the report to be in a particular format, including a format
that can be read by a computer.
SECTION 8.02. Section 74.1011(a), Property Code, is amended
to read as follows:
(a) Except as provided by Subsection (b), a holder who on
June 1 [30] holds property valued at more than $250 that is presumed
abandoned under Chapter 72, 73, or 75 of this code or Chapter 154,
Finance Code, shall, on or before the preceding May [following
August] 1, mail to the last known address of the known owner written
notice stating that:
(1) the holder is holding the property; and
(2) the holder may be required to deliver the property
to the comptroller on or before July [November] 1 if the property is
not claimed.
SECTION 8.03. Sections 74.301(a) and (c), Property Code,
are amended to read as follows:
(a) Except as provided by Subsection (c), each holder who on
June 1 [30] holds property that is presumed abandoned under Chapter
72, 73, or 75 shall deliver the property to the comptroller on or
before the following July [November] 1 accompanied by the report
required to be filed under Section 74.101.
(c) If the property subject to delivery under Subsection (a)
is the contents of a safe deposit box, the comptroller may instruct
a holder to deliver the property on a specified date before July
[November] 1 of the following year.
SECTION 8.04. Section 74.708, Property Code, is amended to
read as follows:
Sec. 74.708. PROPERTY HELD IN TRUST. A holder who on June 1
[30] holds property presumed abandoned under Chapters 72-75 holds
the property in trust for the benefit of the state on behalf of the
missing owner and is liable to the state for the full value of the
property, plus any accrued interest and penalty. A holder is not
required by this section to segregate or establish trust accounts
for the property provided the property is timely delivered to the
comptroller in accordance with Section 74.301.
SECTION 8.05. (a) Except as provided by Subsection (b) of
this section, this article takes effect September 1, 2011.
(b) Sections 74.101(a), 74.1011(a), 74.301(a) and (c), and
74.708, Property Code, as amended by this article, take effect
January 1, 2013.
ARTICLE 9. FISCAL MATTERS RELATED TO VOTER REGISTRATION
SECTION 9.01. Sections 18.065(b), (c), and (d), Election
Code, are amended to read as follows:
(b) On determining that a registrar is not in substantial
compliance, the secretary shall deliver written notice of the
noncompliance to[:
[(1)] the registrar and include[, including] in the
notice a description of the violation and an explanation of the
action necessary for substantial compliance and of the consequences
of noncompliance[; and
[(2) the comptroller of public accounts, including in
the notice the identity of the noncomplying registrar].
(c) On determining that a noncomplying registrar has
corrected the violation and is in substantial compliance, the
secretary shall deliver written notice to the registrar [and to the
comptroller] that the registrar is in substantial compliance.
(d) [The comptroller shall retain a notice received under
this section on file until July 1 following the voting year in which
it is received.] The secretary shall retain a copy of each notice
the secretary delivers under this section for two years after the
date the notice is delivered.
SECTION 9.02. Section 19.001(a), Election Code, is amended
to read as follows:
(a) Before May 15 of each year, the registrar shall prepare
and submit to the secretary of state [comptroller of public
accounts] a statement containing:
(1) the total number of initial registrations for the
previous voting year;
(2) the total number of registrations canceled under
Sections 16.031(a)(1), 16.033, and 16.0332 for the previous voting
year; and
(3) the total number of registrations for which
information was updated for the previous voting year.
SECTION 9.03. The heading to Section 19.002, Election Code,
is amended to read as follows:
Sec. 19.002. PAYMENTS [ISSUANCE OF WARRANTS BY
COMPTROLLER].
SECTION 9.04. Sections 19.002(b) and (d), Election Code,
are amended to read as follows:
(b) After June 1 of each year, the secretary of state
[comptroller of public accounts] shall make payments [issue
warrants] pursuant to vouchers submitted by the registrar and
approved by the secretary of state in amounts that in the aggregate
do not exceed the registrar's entitlement. The secretary of state
shall prescribe the procedures necessary to implement this
subsection.
(d) The secretary of state [comptroller] may not make a
payment under Subsection (b) [issue a warrant] if on June 1 of the
year in which the payment [warrant] is to be made [issued the most
recent notice received by the comptroller from the secretary of
state under Section 18.065 indicates that] the registrar is not in
substantial compliance with Section 15.083, 16.032, 18.042, or
18.065 or with rules implementing the registration service program.
SECTION 9.05. The heading to Section 19.0025, Election
Code, is amended to read as follows:
Sec. 19.0025. ELECTRONIC ADMINISTRATION OF VOUCHERS AND
PAYMENTS [WARRANTS].
SECTION 9.06. Section 19.0025(a), Election Code, is amended
to read as follows:
(a) The secretary of state shall establish and maintain an
online electronic system for administering vouchers submitted and
payments made [warrants issued] under Section 19.002.
SECTION 9.07. Section 19.002(c), Election Code, is
repealed.
SECTION 9.08. This article takes effect September 1, 2011.
ARTICLE 10. CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF
PUBLIC ACCOUNTS
SECTION 10.01. Section 403.0551(d), Government Code, is
amended to read as follows:
(d) This section does not authorize the comptroller to
deduct the amount of a state employee's indebtedness to a state
agency from any amount of compensation owed by the agency to the
employee, the employee's successor, or the assignee of the employee
or successor. In this subsection, "compensation" has the meaning
assigned by Section 403.055 and ["compensation,"] "indebtedness,"
"state agency," "state employee," and "successor" have the meanings
assigned by Section 666.001.
SECTION 10.02. Section 404.022(h), Government Code, is
amended to read as follows:
(h) The comptroller may execute a simplified version of a
depository agreement with an eligible institution desiring to hold
[$98,000 or less in] state deposits that are fully insured by the
Federal Deposit Insurance Corporation or the National Credit Union
Share Insurance Fund.
SECTION 10.03. Section 411.109(a), Government Code, is
amended to read as follows:
(a) The comptroller is entitled to obtain from the
department criminal history record information maintained by the
department that the comptroller believes is necessary for the
enforcement or administration of Chapter 151, 152, [153,] 154, [or]
155, or 162, Tax Code, including criminal history record
information that relates to a person who is:
(1) an applicant for a permit under any of those
chapters;
(2) a permit holder under any of those chapters;
(3) an officer, director, stockholder owning 10
percent or more of the outstanding stock, partner, owner, or
managing employee of an applicant or permit holder under any of
those chapters that is a corporation, association, joint venture,
syndicate, partnership, or proprietorship;
(4) believed to have violated any of those chapters;
or
(5) being considered by the comptroller for employment
as a peace officer.
SECTION 10.04. Section 403.0551(d), Government Code, as
amended by this article, applies to a deduction made on or after the
effective date of this Act for an indebtedness to a state agency
regardless of:
(1) the date the indebtedness accrued; or
(2) the dates of the pay period for which the
compensation from which the indebtedness is deducted is earned.
ARTICLE 11. PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND
OTHER MATERIALS
SECTION 11.01. Section 61.539(c), Education Code, is
amended to read as follows:
(c) As soon as practicable after each state fiscal year, the
board [comptroller] shall prepare a report for that fiscal year of
the number of students registered in a medical branch, school, or
college, the total amount of tuition charges collected by each
institution, the total amount transferred to the comptroller under
this section, and the total amount available in the physician
education loan repayment program account for the repayment of
student loans of physicians under this subchapter. The board
[comptroller] shall deliver a copy of the report to [the board and
to] the governor, lieutenant governor, and speaker of the house of
representatives not later than January 1 following the end of the
fiscal year covered by the report.
SECTION 11.02. Section 5.05(c), Tax Code, is amended to
read as follows:
(c) The comptroller shall electronically publish all
materials under this section [provide without charge one copy of
all materials to officials of local government who are responsible]
for administering the property tax system. [If a local government
official requests more than one copy, the comptroller may charge a
reasonable fee to offset the costs of printing and distributing the
materials.] The comptroller shall make the materials available to
local governmental officials and members of the public but may
charge a reasonable fee to offset the costs of preparing, printing,
and distributing the materials.
SECTION 11.03. Section 5.06, Tax Code, is amended to read as
follows:
Sec. 5.06. EXPLANATION OF TAXPAYER REMEDIES. [(a)] The
comptroller shall prepare and electronically publish a pamphlet
explaining the remedies available to dissatisfied taxpayers and the
procedures to be followed in seeking remedial action. The
comptroller shall include in the pamphlet advice on preparing and
presenting a protest.
[(b) The comptroller shall provide without charge a
reasonable number of copies of the pamphlet to any person on
request. The comptroller may charge a person who requests multiple
copies of the pamphlet a reasonable fee to offset the costs of
printing and distributing those copies. The comptroller at its
discretion shall determine the number of copies that a person may
receive without charge.]
SECTION 11.04. Section 5.09, Tax Code, is amended to read as
follows:
Sec. 5.09. BIENNIAL [ANNUAL] REPORTS. (a) The comptroller
shall prepare a biennial [publish an annual] report of [the
operations of the appraisal districts. The report shall include
for each appraisal district, each county, and each school district
and may include for other taxing units] the total appraised
values[, assessed values,] and taxable values of taxable property
by category [class of property, the assessment ratio,] and the tax
rates of each county, municipality, and school district in effect
for the two years preceding the year in which the report is prepared
[rate].
(b) Not later than December 31 of each even-numbered year,
the [The] comptroller shall:
(1) electronically publish on the comptroller's
Internet website the [deliver a copy of each annual] report
required by [published under] Subsection (a); and
(2) notify [of this section to] the governor, the
lieutenant governor, and each member of the legislature that the
report is available on the website.
SECTION 11.05. The following are repealed:
(1) Sections 51.607, 403.030, and 552.143(e),
Government Code; and
(2) Subchapter F, Chapter 379A, Local Government Code.
ARTICLE 12. SALES AND USE TAX HOLIDAY
SECTION 12.01. The heading to Section 151.326, Tax Code, is
amended to read as follows:
Sec. 151.326. CLOTHING AND FOOTWEAR FOR LIMITED PERIOD
UNDER CERTAIN CIRCUMSTANCES.
SECTION 12.02. Section 151.326, Tax Code, is amended by
amending Subsection (a) and adding Subsections (c), (d), (e), and
(f) to read as follows:
(a) Subject to Subsection (e), the [The] sale of an article
of clothing or footwear designed to be worn on or about the human
body is exempted from the taxes imposed by this chapter if:
(1) the sales price of the article is less than $100;
and
(2) the sale takes place during a period beginning at
12:01 a.m. on the third Friday in August and ending at 12 midnight
on the following Sunday.
(c) On or after January 1, but not later than January 31, of
each odd-numbered year, the comptroller shall determine the
following:
(1) whether a deficit exists in the current state
fiscal biennium in the general revenue-related funds used for
certification; and
(2) whether general revenue-related funds used for
certification and estimated to be available for the succeeding
state fiscal biennium are less than the general revenue-related
funds used for certification and available for the current state
fiscal biennium.
(d) The comptroller shall base the determinations required
by Subsection (c) on the statement required by Section 49a, Article
III, Texas Constitution, and submitted to the legislature convening
in regular session the year the determination is made and shall
assume that the exemptions provided by this section and Section
151.327 apply.
(e) The exemptions provided by this section do not apply:
(1) in the state fiscal year in which the comptroller
makes the determination required by Subsection (c) if the
comptroller determines that the condition specified by Subsection
(c)(1) exists; and
(2) in the state fiscal year following the year in
which the comptroller makes the determination required by
Subsection (c) if the comptroller determines that the condition
specified by Subsection (c)(2) exists.
(f) Not later than February 15 of each odd-numbered year,
the comptroller shall provide notice of whether the exemptions
provided by this section apply during that state fiscal year and the
subsequent state fiscal year. The comptroller shall provide the
notice to each sales tax permit holder and shall clearly post the
information on the comptroller's Internet website.
SECTION 12.03. The heading to Section 151.327, Tax Code, is
amended to read as follows:
Sec. 151.327. SCHOOL SUPPLIES AND SCHOOL BACKPACKS BEFORE
START OF SCHOOL UNDER CERTAIN CIRCUMSTANCES.
SECTION 12.04. Section 151.327, Tax Code, is amended by
amending Subsection (a-1) and adding Subsection (c) to read as
follows:
(a-1) Subject to Subsection (c), the [The] sale or storage,
use, or other consumption of a school supply or a school backpack is
exempted from the taxes imposed by this chapter if the school supply
or backpack is purchased:
(1) for use by a student in a public or private
elementary or secondary school;
(2) during the period described by Section
151.326(a)(2); and
(3) for a sales price of less than $100.
(c) An exemption under this section does not apply to the
sale or storage, use, or other consumption of a taxable item that
occurs during a state fiscal year during which the exemptions
provided by Section 151.326 do not apply.
SECTION 12.05. The comptroller of public accounts shall
make the initial determinations required by Section 151.326(c), Tax
Code, as added by this article, not later than January 31, 2013.
SECTION 12.06. Notwithstanding Sections 151.326 and
151.327, Tax Code, as amended by this article, the sale or storage,
use, or other consumption of a taxable item is not exempt from the
taxes imposed by Chapter 151, Tax Code, under those sections if the
sale occurs:
(1) during the state fiscal year ending August 31,
2011, if this Act receives enough votes to take effect immediately
in accordance with Section 12.07 of this article; or
(2) during the state fiscal year ending August 31,
2012.
SECTION 12.07. 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. SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE
SECTION 13.01. Section 101.053(b), Insurance Code, is
amended to read as follows:
(b) Sections 101.051 and 101.052 do not apply to:
(1) the lawful transaction of surplus lines insurance
under Chapter 981;
(2) the lawful transaction of reinsurance by insurers;
(3) a transaction in this state that:
(A) involves a policy that:
(i) is lawfully solicited, written, and
delivered outside this state; and
(ii) covers, at the time the policy is
issued, only subjects of insurance that are not resident, located,
or expressly to be performed in this state; and
(B) takes place after the policy is issued;
(4) a transaction:
(A) that involves an insurance contract
independently procured by the insured from an insurance company not
authorized to do insurance business in this state through
negotiations occurring entirely outside this state;
(B) that is reported; and
(C) on which premium tax, if applicable, is paid
in accordance with Chapter 226;
(5) a transaction in this state that:
(A) involves group life, health, or accident
insurance, other than credit insurance, and group annuities in
which the master policy for the group was lawfully issued and
delivered in a state in which the insurer or person was authorized
to do insurance business; and
(B) is authorized by a statute of this state;
(6) an activity in this state by or on the sole behalf
of a nonadmitted captive insurance company that insures solely:
(A) directors' and officers' liability insurance
for the directors and officers of the company's parent and
affiliated companies;
(B) the risks of the company's parent and
affiliated companies; or
(C) both the individuals and entities described
by Paragraphs (A) and (B);
(7) the issuance of a qualified charitable gift
annuity under Chapter 102; or
(8) a lawful transaction by a servicing company of the
Texas workers' compensation employers' rejected risk fund under
Section 4.08, Article 5.76-2, as that article existed before its
repeal.
SECTION 13.02. Section 225.001, Insurance Code, is amended
to read as follows:
Sec. 225.001. DEFINITIONS [DEFINITION]. In this chapter:
(1) "Affiliate" means, with respect to an insured, a
person that controls, is controlled by, or is under common control
with the insured.
(2) "Affiliated group" means a group of entities whose
members are affiliated.
(3) "Control" means, with respect to determining the
home state of an affiliated entity:
(A) to directly or indirectly, acting through one
or more persons, own, control, or hold the power to vote at least 25
percent of any class of voting security of the affiliated entity; or
(B) to control in any manner the election of the
majority of directors or trustees of the affiliated entity.
(4) "Home state" means:
(A) for an insured that is not an affiliated
group described by Paragraph (B):
(i) the state in which the insured resides,
if the insured is an individual;
(ii) the state in which an insured that is
not an individual maintains its principal place of business; or
(iii) if 100 percent of the insured risk is
located outside of the state in which the insured resides or
maintains its principal place of business, as applicable, the state
to which the largest percentage of the insured's taxable premium
for the insurance contract that covers the risk is allocated; or
(B) for an affiliated group with respect to which
more than one member is a named insured on a single insurance
contract subject to this chapter, the home state of the member, as
determined under Paragraph (A), that has the largest percentage of
premium attributed to it under the insurance contract.
(5) "Premium" means any payment made in consideration
for insurance and [, "premium"] includes:
(A) [(1)] a premium;
(B) premium deposits;
(C) [(2)] a membership fee;
(D) a registration fee;
(E) [(3)] an assessment;
(F) [(4)] dues; and
(G) [(5)] any other compensation given in
consideration for surplus lines insurance.
SECTION 13.03. Section 225.002, Insurance Code, is amended
to read as follows:
Sec. 225.002. APPLICABILITY OF CHAPTER. This chapter
applies to a surplus lines agent who collects gross premiums for
surplus lines insurance for any risk in which this state is the home
state of the insured.
SECTION 13.04. Section 225.004, Insurance Code, is amended
by adding Subsections (a-1) and (f) and amending Subsections (b),
(c), and (e) to read as follows:
(a-1) Consistent with the Nonadmitted and Reinsurance
Reform Act of 2010, contained in the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Pub. L. No. 111-203), this state may
not impose a premium tax on nonadmitted insurance premiums other
than premiums paid for insurance in which this state is the home
state of the insured.
(b) Taxable gross premiums under this section are based on
gross premiums written or received for surplus lines insurance
placed through an eligible surplus lines insurer during a calendar
year. Notwithstanding the tax basis described by this subsection,
the comptroller by rule may establish an alternate basis for
taxation for multistate and single-state policies for the purpose
of achieving uniformity.
(c) If a surplus lines insurance policy covers risks or
exposures only partially located in this state, and this state has
not entered into a cooperative agreement, reciprocal agreement, or
compact with another state for the collection of surplus lines tax
as authorized by Chapter 229, the tax is computed on the entire
policy [portion of the] premium for any policy in which this state
is the home state of the insured [that is properly allocated to a
risk or exposure located in this state].
(e) Premiums [The following premiums are not taxable in
this state:
[(1) premiums properly allocated to another state that
are specifically exempt from taxation in that state; and
[(2) premiums] on risks or exposures that are properly
allocated to federal or international waters or are under the
jurisdiction of a foreign government are not taxable in this state.
(f) If this state enters a cooperative agreement,
reciprocal agreement, or compact with another state for the
allocation of surplus lines tax as authorized by Chapter 229, taxes
due on multistate policies shall be allocated and reported in
accordance with the agreement or compact.
SECTION 13.05. Section 225.005, Insurance Code, is amended
to read as follows:
Sec. 225.005. TAX EXCLUSIVE. The tax imposed by this
chapter is a transaction tax collected by the surplus lines agent of
record and is in lieu of any [all] other transaction [insurance]
taxes on these premiums.
SECTION 13.06. Section 225.009, Insurance Code, is amended
by adding Subsection (d) to read as follows:
(d) Notwithstanding Subsections (a), (b), and (c), if this
state enters a cooperative agreement, reciprocal agreement, or
compact with another state for the allocation of surplus lines tax
as authorized by Chapter 229, the tax shall be allocated and
reported in accordance with the terms of the agreement or compact.
SECTION 13.07. Section 226.051, Insurance Code, is amended
to read as follows:
Sec. 226.051. DEFINITIONS [DEFINITION]. In this
subchapter:
(1) "Affiliate" means, with respect to an insured, a
person that controls, is controlled by, or is under common control
with the insured.
(2) "Affiliated group" means a group of entities whose
members are affiliated.
(3) "Control" means, with respect to determining the
home state of an affiliated entity:
(A) to directly or indirectly, acting through one
or more persons, own, control, or hold the power to vote at least 25
percent of any class of voting security of the affiliated entity; or
(B) to control in any manner the election of the
majority of directors or trustees of the affiliated entity.
(4) "Home state" means:
(A) for an insured that is not an affiliated
group described by Paragraph (B):
(i) the state in which the insured resides,
if the insured is an individual;
(ii) the state in which an insured that is
not an individual maintains its principal place of business; or
(iii) if 100 percent of the insured risk is
located outside of the state in which the insured resides or
maintains its principal place of business, as applicable, the state
to which the largest percentage of the insured's taxable premium
for the insurance contract that covers the risk is allocated; or
(B) for an affiliated group with respect to which
more than one member is a named insured on a single insurance
contract subject to this chapter, the home state of the member, as
determined under Paragraph (A), that has the largest percentage of
premium attributed to it under the insurance contract.
(5) "Independently procured insurance" means
insurance procured directly by an insured from a nonadmitted
insurer.
(6) "Premium" means any payment made in consideration
for insurance and [, "premium"] includes [any consideration for
insurance, including]:
(A) [(1)] a premium;
(B) premium deposits;
(C) [(2)] a membership fee; [or]
(D) a registration fee;
(E) an assessment;
(F) [(3)] dues; and
(G) any other compensation given in
consideration for insurance.
SECTION 13.08. Section 226.052, Insurance Code, is amended
to read as follows:
Sec. 226.052. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to an insured who procures an independently procured
insurance contract for any risk in which this state is the home
state of the insured [in accordance with Section 101.053(b)(4)].
SECTION 13.09. Section 226.053, Insurance Code, is amended
by amending Subsections (a) and (b) and adding Subsection (d) to
read as follows:
(a) A tax is imposed on each insured at the rate of 4.85
percent of the premium paid for the insurance contract procured in
accordance with Section 226.052 [101.053(b)(4)].
(b) If an independently procured insurance policy
[contract] covers risks or exposures only partially located in this
state and this state has not joined a cooperative agreement,
reciprocal agreement, or compact with another state for the
allocation of nonadmitted insurance taxes as authorized by Chapter
229, the tax is computed on the entire policy [portion of the]
premium for any policy in which this state is the home state of the
insured [that is properly allocated to a risk or exposure located in
this state].
(d) If this state enters into a cooperative agreement,
reciprocal agreement, or compact with another state for the
allocation of nonadmitted insurance taxes as authorized by Chapter
229, the tax due on multistate policies shall be allocated and
reported in accordance with the agreement or compact.
SECTION 13.10. Section 981.008, Insurance Code, is amended
to read as follows:
Sec. 981.008. SURPLUS LINES INSURANCE PREMIUM TAX. The
premiums charged for surplus lines insurance are subject to the
premium tax, if applicable, imposed under Chapter 225.
SECTION 13.11. The following provisions are repealed:
(1) Sections 225.004(d) and (d-1), Insurance Code; and
(2) Sections 226.053(b-1) and (c), Insurance Code.
SECTION 13.12. The changes in law made by this article to
Chapters 225 and 226, Insurance Code, apply only to an insurance
policy that is delivered, issued for delivery, or renewed on or
after July 11, 2011. A policy that is delivered, issued for
delivery, or renewed before July 11, 2011, is governed by the law as
it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 13.13. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2011.
ARTICLE 14. OBESITY INTERVENTION AND PREVENTION PROGRAM
SECTION 14.01. Chapter 403, Government Code, is amended by
adding Subchapter Q to read as follows:
SUBCHAPTER Q. OBESITY INTERVENTION AND PREVENTION PROGRAM
Sec. 403.451. PURPOSE. The purpose of this subchapter is
to:
(1) address the economic costs associated with obesity
in this state, including increased medical costs and loss of
economic productivity;
(2) promote obesity intervention and obesity
prevention awareness among school-age children;
(3) address the disproportionate rate of obesity in
low-income populations; and
(4) assist public schools and school districts to
provide obesity intervention and obesity prevention awareness
programs, obesity intervention and prevention programs, and
related training.
Sec. 403.452. TEXAS OBESITY INTERVENTION AND PREVENTION
GRANT PROGRAM AND STUDY. (a) The comptroller shall establish and
administer the obesity intervention and prevention grant program
and study to:
(1) award grants for obesity intervention and
prevention and related programs as provided by this subchapter; and
(2) study obesity in this state as provided by this
subchapter.
(b) The program and study shall be funded with money
appropriated by the legislature for the purposes of this
subchapter.
(c) The comptroller may solicit and accept gifts, grants,
and donations for the purposes of this subchapter.
Sec. 403.453. GRANT PROGRAM. (a) The comptroller shall
establish and administer the obesity intervention and prevention
grant program to award grants to public school programs and other
entities that provide obesity intervention or prevention,
nutrition education, and other educational programs to combat
obesity in this state.
(b) In awarding grants under this section, the comptroller
shall identify and give preference to geographic areas of this
state where student populations have been identified, using the
geographic information system map created under Section 403.454, as
being at high risk for obesity.
(c) In awarding grants under this section, the comptroller
shall consider awarding grants only to programs that obtain
matching funds. Matching funds under this section, if required,
may be obtained from any source available to a public school or
other entity, including in-kind contributions, community or
foundation grants, and individual contributions.
(d) The comptroller shall award grants on a competitive
basis.
Sec. 403.454. COMPILATION OF DATA CONCERNING OBESITY RISK;
GEOGRAPHIC INFORMATION SYSTEM. (a) The comptroller shall
cooperate with the Texas Education Agency, the Department of State
Health Services, or any other state agency as necessary to compile
the data required to identify areas in which children are at risk
for obesity.
(b) The Texas Education Agency shall provide the physical
fitness assessment results compiled under Section 38.103,
Education Code, to the comptroller. The comptroller shall use the
fitness assessment data to produce an interactive geographic
information system map of this state that shows the compiled
physical fitness assessment results for each school district in the
state and identifies areas in which students are at risk for
obesity.
(c) In creating the interactive map under Subsection (b),
the comptroller and each state agency involved shall comply with
state and federal laws, rules, and regulations that protect the
confidentiality of student information and shall protect
confidential information.
Sec. 403.455. REPORT OF PROGRAM RESULTS. (a) A public
school or other entity that is awarded a grant under Section 403.453
for a program shall collect data regarding the effectiveness of the
program and report that information to the comptroller. The
comptroller shall by rule determine the form and content of the
reporting requirements.
(b) In collecting the data required by this section, a
grantee shall protect the confidentiality of students and student
information and shall comply with applicable state and federal
laws, rules, and regulations that protect the confidentiality of
student information.
Sec. 403.456. OBESITY AND WELLNESS INFORMATION PORTAL. The
comptroller shall establish and maintain an obesity and wellness
information portal on the comptroller's Internet website to provide
information to the public regarding obesity and wellness, including
the economic impact obesity has on this state.
Sec. 403.457. ADDITIONAL REPORTING AND MAPPING SYSTEMS.
The comptroller may establish obesity reporting and mapping systems
in addition to the systems described by this subchapter as
necessary to implement this subchapter.
Sec. 403.458. REPORT TO LEGISLATURE. (a) The comptroller
shall submit a report to the legislature not later than January 1 of
each odd-numbered year regarding the effectiveness of the grant
program.
(b) The comptroller may collect information regarding other
state and federal obesity prevention initiatives in this state and
include that information in the report.
Sec. 403.459. RULES. The comptroller shall adopt rules as
necessary for the administration of this subchapter.
ARTICLE 15. EFFECTIVE DATE
SECTION 15.01. Except as otherwise provided by this Act,
this Act takes effect September 1, 2011.