Texas 2011 - 82nd Regular

Texas House Bill HB3790 Compare Versions

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1	1	82R22238 JJT/KLA/KKA/MXM/TJS-D
2	2	By: Pitts H.B. No. 3790
3	3	Substitute the following for H.B. No. 3790:
4	4	By: Pitts C.S.H.B. No. 3790
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to certain state fiscal matters; providing penalties.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. REDUCTION OF EXPENDITURES AND IMPOSITION OF CHARGES
12	12	GENERALLY
13	13	SECTION 1.01. This article applies to each state agency, as
14	14	that term is defined by Section 317.001, Government Code.
15	15	SECTION 1.02. Notwithstanding any other statute of this
16	16	state, each state agency to which this article applies is
17	17	authorized to reduce or recover expenditures by:
18	18	(1) consolidating any reports or publications the
19	19	agency is required to make and filing or delivering any of those
20	20	reports or publications exclusively by electronic means;
21	21	(2) extending the effective period of any license,
22	22	permit, or registration the agency grants or administers;
23	23	(3) entering into a contract with another governmental
24	24	entity or with a private vendor to carry out any of the agency's
25	25	duties;
26	26	(4) modifying eligibility requirements for, the
27	27	processes used to determine eligibility for, and the services
28	28	provided to persons who receive benefits under any law the agency
29	29	administers, including benefits and services required by federal
30	30	law, to ensure that those benefits are received by the most
31	31	deserving persons consistent with the purposes for which the
32	32	benefits are provided;
33	33	(5) providing that any communication between the
34	34	agency and another person and any document required to be delivered
35	35	to or by the agency, including any application, notice, billing
36	36	statement, receipt, or certificate, may be made or delivered by
37	37	e-mail or through the Internet; and
38	38	(6) adopting and collecting fees or charges to cover
39	39	any costs the agency incurs in performing its lawful functions.
40	40	ARTICLE 2. FISCAL MATTERS REGARDING REGULATION AND TAXATION
41	41	OF INSURERS
42	42	SECTION 2.01. Section 463.160, Insurance Code, is amended
43	43	to read as follows:
44	44	Sec. 463.160. PREMIUM TAX CREDIT FOR CLASS A ASSESSMENT.
45	45	The amount of a Class A assessment paid by a member insurer in each
46	46	taxable year shall be allowed as a credit on the amount of premium
47	47	taxes due [in the same manner as a credit is allowed under Section
48	48	401.151(e)].
49	49	SECTION 2.02. Sections 221.006, 222.007, 223.009,
50	50	401.151(e), and 401.154, Insurance Code, are repealed.
51	51	SECTION 2.03. This article takes effect immediately if this
52	52	Act receives a vote of two-thirds of all the members elected to each
53	53	house, as provided by Section 39, Article III, Texas Constitution.
54	54	If this Act does not receive the vote necessary for immediate
55	55	effect, this article takes effect September 1, 2011.
56	56	ARTICLE 3. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND
57	57	SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS
58	58	SECTION 3.01. Subchapter B, Chapter 31, Human Resources
59	59	Code, is amended by adding Section 31.0326 to read as follows:
60	60	Sec. 31.0326. VERIFICATION OF IDENTITY AND PREVENTION OF
61	61	DUPLICATE PARTICIPATION. The Health and Human Services Commission
62	62	shall use appropriate technology to:
63	63	(1) confirm the identity of applicants for benefits
64	64	under the financial assistance program; and
65	65	(2) prevent duplicate participation in the program by
66	66	a person.
67	67	SECTION 3.02. Chapter 33, Human Resources Code, is amended
68	68	by adding Section 33.0231 to read as follows:
69	69	Sec. 33.0231. VERIFICATION OF IDENTITY AND PREVENTION OF
70	70	DUPLICATE PARTICIPATION. The department shall use appropriate
71	71	technology to:
72	72	(1) confirm the identity of applicants for benefits
73	73	under the supplemental nutrition assistance program; and
74	74	(2) prevent duplicate participation in the program by
75	75	a person.
76	76	SECTION 3.03. Section 31.0325, Human Resources Code, is
77	77	repealed.
78	78	SECTION 3.04. If before implementing Section 31.0326 or
79	79	33.0231, Human Resources Code, as added by this article, a state
80	80	agency determines that a waiver or authorization from a federal
81	81	agency is necessary for implementation of that law, the agency
82	82	shall request the waiver or authorization and may delay
83	83	implementing that law until the waiver or authorization is granted.
84	84	SECTION 3.05. This article takes effect immediately if this
85	85	Act receives a vote of two-thirds of all the members elected to each
86	86	house, as provided by Section 39, Article III, Texas Constitution.
87	87	If this Act does not receive the vote necessary for immediate
88	88	effect, this article takes effect September 1, 2011.
89	89	ARTICLE 4. TAX RECORDS
90	90	SECTION 4.01. Section 2153.201, Occupations Code, is
91	91	amended by amending Subsection (b) and adding Subsection (c) to
92	92	read as follows:
93	93	(b) A record required under Subsection (a) must:
94	94	(1) be available at all times for inspection by the
95	95	attorney general, the comptroller, or an authorized representative
96	96	of the attorney general or comptroller as provided by Subsection
97	97	(c);
98	98	(2) include information relating to:
99	99	(A) the kind of each machine;
100	100	(B) the date each machine is:
101	101	(i) acquired or received in this state; and
102	102	(ii) placed in operation;
103	103	(C) the location of each machine, including the:
104	104	(i) county;
105	105	(ii) municipality, if any; and
106	106	(iii) street or rural route number;
107	107	(D) the name and complete address of each
108	108	operator of each machine;
109	109	(E) if the owner is an individual, the full name
110	110	and address of the owner; and
111	111	(F) if the owner is not an individual, the name
112	112	and address of each principal officer or member of the owner; and
113	113	(3) be maintained[:
114	114	[(A)] at a permanent address in this state
115	115	designated on the application for a license under Section
116	116	2153.153[; and
117	117	[(B) until the second anniversary of the date the
118	118	owner ceases ownership of the machine that is the subject of the
119	119	record].
120	120	(c) A record required under Subsection (a) must be available
121	121	for inspection under Subsection (b) for at least four years and as
122	122	required by Section 111.0041, Tax Code.
123	123	SECTION 4.02. Section 111.0041, Tax Code, is amended to
124	124	read as follows:
125	125	Sec. 111.0041. RECORDS; BURDEN TO PRODUCE AND SUBSTANTIATE
126	126	CLAIMS. (a) Except as provided by Subsection (b), a [Any] taxpayer
127	127	who is required by this title to keep records shall keep those
128	128	records open to inspection by the comptroller, the attorney
129	129	general, or the authorized representatives of either of them for at
130	130	least four years.
131	131	(b) A taxpayer is required to keep records open for
132	132	inspection under Subsection (a) for more than four years throughout
133	133	any period when:
134	134	(1) any tax, penalty, or interest may be assessed,
135	135	collected, or refunded by the comptroller; or
136	136	(2) an administrative hearing is pending before the
137	137	comptroller, or a judicial proceeding is pending, to determine the
138	138	amount of the tax, penalty, or interest that is to be assessed,
139	139	collected, or refunded.
140	140	(c) A taxpayer shall produce contemporaneous records and
141	141	supporting documentation appropriate to the tax or fee for the
142	142	period in question to substantiate and enable verification of the
143	143	taxpayer's claim related to the amount of tax, penalty, or interest
144	144	to be assessed, collected, or refunded in an administrative or
145	145	judicial proceeding. Contemporaneous records and supporting
146	146	documentation appropriate to the tax or fee include invoices,
147	147	vouchers, checks, shipping records, contracts, and other written
148	148	documentation reflecting legal relationships and taxes collected
149	149	or paid.
150	150	(d) Summary records submitted by the taxpayer, including
151	151	accounting journals and ledgers, without supporting
152	152	contemporaneous records and documentation for the period in
153	153	question are not sufficient to substantiate and enable verification
154	154	of the taxpayer's claim regarding the amount of tax, penalty, or
155	155	interest that may be assessed, collected, or refunded.
156	156	(e) This section prevails over any other conflicting
157	157	provision of this title.
158	158	SECTION 4.03. Section 112.052, Tax Code, is amended by
159	159	adding Subsection (d) to read as follows:
160	160	(d) A taxpayer shall produce contemporaneous records and
161	161	supporting documentation appropriate to the tax or fee for the
162	162	period in question to substantiate and enable verification of a
163	163	taxpayer's claim relating to the amount of the tax, penalty, or
164	164	interest that is to be assessed, collected, or refunded, as
165	165	required by Section 111.0041.
166	166	SECTION 4.04. Section 112.151, Tax Code, is amended by
167	167	adding Subsection (f) to read as follows:
168	168	(f) A taxpayer shall produce contemporaneous records and
169	169	supporting documentation appropriate to the tax or fee for the
170	170	period in question to substantiate and enable verification of a
171	171	taxpayer's claim relating to the amount of the tax, penalty, or
172	172	interest that is to be assessed, collected, or refunded, as
173	173	required by Section 111.0041.
174	174	SECTION 4.05. Section 151.025(b), Tax Code, is amended to
175	175	read as follows:
176	176	(b) A record required by Subsection (a) [of this section]
177	177	shall be kept for not less than four years from the date [day] that
178	178	it is made unless:
179	179	(1) the comptroller authorizes in writing its
180	180	destruction at an earlier date; or
181	181	(2) Section 111.0041 requires that the record be kept
182	182	for a longer period.
183	183	SECTION 4.06. Section 152.063, Tax Code, is amended by
184	184	adding Subsection (h) to read as follows:
185	185	(h) Section 111.0041 applies to a person required to keep
186	186	records under this chapter.
187	187	SECTION 4.07. Section 152.0635, Tax Code, is amended by
188	188	adding Subsection (e) to read as follows:
189	189	(e) Section 111.0041 applies to a person required to keep
190	190	records under this chapter.
191	191	SECTION 4.08. Section 154.209(a), Tax Code, is amended to
192	192	read as follows:
193	193	(a) Except as provided by Section 111.0041, each [Each]
194	194	permit holder shall keep records available for inspection and
195	195	copying by the comptroller and the attorney general for at least
196	196	four years.
197	197	SECTION 4.09. Section 155.110(a), Tax Code, is amended to
198	198	read as follows:
199	199	(a) Except as provided by Section 111.0041, each [Each]
200	200	permit holder shall keep records available for inspection and
201	201	copying by the comptroller and the attorney general for at least
202	202	four years.
203	203	SECTION 4.10. Section 160.046, Tax Code, is amended by
204	204	adding Subsection (g) to read as follows:
205	205	(g) A person required to keep records under this section
206	206	shall also keep the records as required by Section 111.0041.
207	207	SECTION 4.11. Subchapter A, Chapter 162, Tax Code, is
208	208	amended by adding Section 162.0125 to read as follows:
209	209	Sec. 162.0125. DUTY TO KEEP RECORDS. A person required to
210	210	keep a record under this chapter shall also keep the record as
211	211	required by Section 111.0041.
212	212	SECTION 4.12. This article takes effect immediately if this
213	213	Act receives a vote of two-thirds of all the members elected to each
214	214	house, as provided by Section 39, Article III, Texas Constitution.
215	215	If this Act does not receive the vote necessary for immediate
216	216	effect, this article takes effect September 1, 2011.
217	217	ARTICLE 5. COLLECTION IMPROVEMENT PROGRAM
218	218	SECTION 5.01. Articles 103.0033(f), (h), (i), and (j), Code
219	219	of Criminal Procedure, are amended to read as follows:
220	220	(f) The [comptroller, in cooperation with the] office[,]
221	221	shall develop a methodology for determining the collection rate of
222	222	counties and municipalities described by Subsection (e) before
223	223	implementation of a program. The office [comptroller] shall
224	224	determine the rate for each county and municipality not later than
225	225	the first anniversary of the county's or municipality's adoption of
226	226	a program.
227	227	(h) The office[, in consultation with the comptroller,]
228	228	may:
229	229	(1) use case dispositions, population, revenue data,
230	230	or other appropriate measures to develop a prioritized
231	231	implementation schedule for programs; and
232	232	(2) determine whether it is not cost-effective to
233	233	implement a program in a county or municipality and grant a waiver
234	234	to the county or municipality.
235	235	(i) Each county and municipality shall at least annually
236	236	submit to the office [and the comptroller] a written report that
237	237	includes updated information regarding the program, as determined
238	238	by the office [in cooperation with the comptroller]. The report
239	239	must be in a form approved by the office [in cooperation with the
240	240	comptroller].
241	241	(j) The office [comptroller] shall periodically audit
242	242	counties and municipalities to verify information reported under
243	243	Subsection (i) and confirm that the county or municipality is
244	244	conforming with requirements relating to the program. [The
245	245	comptroller shall consult with the office in determining how
246	246	frequently to conduct audits under this section.]
247	247	SECTION 5.02. Section 133.058(e), Local Government Code, is
248	248	amended to read as follows:
249	249	(e) A municipality or county may not retain a service fee
250	250	if, during an audit under [Section 133.059 of this code or] Article
251	251	103.0033(j), Code of Criminal Procedure, the Office of Court
252	252	Administration of the Texas Judicial System [comptroller]
253	253	determines that the municipality or county is not in compliance
254	254	with Article 103.0033, Code of Criminal Procedure. The
255	255	municipality or county may continue to retain a service fee under
256	256	this section on receipt of a written confirmation from the Office of
257	257	Court Administration of the Texas Judicial System [comptroller]
258	258	that the municipality or county is in compliance with Article
259	259	103.0033, Code of Criminal Procedure.
260	260	SECTION 5.03. Section 133.103(c-1), Local Government Code,
261	261	is amended to read as follows:
262	262	(c-1) The treasurer shall send 100 percent of the fees
263	263	collected under this section to the comptroller if, during an audit
264	264	under [Section 133.059 of this code or] Article 103.0033(j), Code
265	265	of Criminal Procedure, the Office of Court Administration of the
266	266	Texas Judicial System [comptroller] determines that the
267	267	municipality or county is not in compliance with Article 103.0033,
268	268	Code of Criminal Procedure. The municipality or county shall
269	269	continue to dispose of fees as otherwise provided by this section on
270	270	receipt of a written confirmation from the Office of Court
271	271	Administration of the Texas Judicial System [comptroller] that the
272	272	municipality or county is in compliance with Article 103.0033, Code
273	273	of Criminal Procedure.
274	274	SECTION 5.04. This article takes effect September 1, 2011.
275	275	ARTICLE 6. PENALTIES FOR FAILURE TO REPORT OR REMIT
276	276	CERTAIN TAXES OR FEES
277	277	SECTION 6.01. Section 111.00455(b), Tax Code, is amended to
278	278	read as follows:
279	279	(b) The following are not contested cases under Subsection
280	280	(a) and Section 2003.101, Government Code:
281	281	(1) a show cause hearing or any hearing not related to
282	282	the collection, receipt, administration, or enforcement of the
283	283	amount of a tax or fee imposed, or the penalty or interest
284	284	associated with that amount, except for a hearing under Section
285	285	151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;
286	286	(2) a property value study hearing under Subchapter M,
287	287	Chapter 403, Government Code;
288	288	(3) a hearing in which the issue relates to:
289	289	(A) Chapters 72-75, Property Code;
290	290	(B) forfeiture of a right to do business;
291	291	(C) a certificate of authority;
292	292	(D) articles of incorporation;
293	293	(E) a penalty imposed under Section 151.703(d)
294	294	[151.7031];
295	295	(F) the refusal or failure to settle under
296	296	Section 111.101; or
297	297	(G) a request for or revocation of an exemption
298	298	from taxation; and
299	299	(4) any other hearing not related to the collection,
300	300	receipt, administration, or enforcement of the amount of a tax or
301	301	fee imposed, or the penalty or interest associated with that
302	302	amount.
303	303	SECTION 6.02. Section 151.433(f), Tax Code, is amended to
304	304	read as follows:
305	305	(f) If a person fails to file a report required by this
306	306	section or fails to file a complete report, the comptroller may
307	307	suspend or cancel one or more permits issued to the person under
308	308	Section 151.203 and may impose a civil or criminal penalty, or both,
309	309	under Section 151.703(d) [151.7031] or 151.709.
310	310	SECTION 6.03. Section 151.703, Tax Code, is amended by
311	311	adding Subsection (d) to read as follows:
312	312	(d) In addition to any other penalty authorized by this
313	313	section, a person who fails to file a report as required by this
314	314	chapter shall pay a penalty of $50. The penalty provided by this
315	315	subsection is assessed without regard to whether the taxpayer
316	316	subsequently files the report or whether any taxes were due from the
317	317	taxpayer for the reporting period under the required report.
318	318	SECTION 6.04. Section 152.045, Tax Code, is amended by
319	319	adding Subsection (d) to read as follows:
320	320	(d) In addition to any other penalty provided by law, the
321	321	owner of a motor vehicle subject to the tax on gross rental receipts
322	322	who is required to file a report as provided by this chapter and who
323	323	fails to timely file the report shall pay a penalty of $50. The
324	324	penalty provided by this subsection is assessed without regard to
325	325	whether the taxpayer subsequently files the report or whether any
326	326	taxes were due from the taxpayer for the reporting period under the
327	327	required report.
328	328	SECTION 6.05. Section 152.047, Tax Code, is amended by
329	329	adding Subsection (j) to read as follows:
330	330	(j) In addition to any other penalty provided by law, the
331	331	seller of a motor vehicle sold in a seller-financed sale who is
332	332	required to file a report as provided by this chapter and who fails
333	333	to timely file the report shall pay a penalty of $50. The penalty
334	334	provided by this subsection is assessed without regard to whether
335	335	the taxpayer subsequently files the report or whether any taxes
336	336	were due from the taxpayer for the reporting period under the
337	337	required report.
338	338	SECTION 6.06. Section 156.202, Tax Code, is amended by
339	339	amending Subsection (c) and adding Subsection (d) to read as
340	340	follows:
341	341	(c) The minimum penalty under Subsections (a) and (b) [this
342	342	section] is $1.
343	343	(d) In addition to any other penalty authorized by this
344	344	section, a person who fails to file a report as required by this
345	345	chapter shall pay a penalty of $50. The penalty provided by this
346	346	subsection is assessed without regard to whether the taxpayer
347	347	subsequently files the report or whether any taxes were due from the
348	348	taxpayer for the reporting period under the required report.
349	349	SECTION 6.07. Section 162.401, Tax Code, is amended by
350	350	adding Subsection (c) to read as follows:
351	351	(c) In addition to any other penalty authorized by this
352	352	section, a person who fails to file a report as required by this
353	353	chapter shall pay a penalty of $50. The penalty provided by this
354	354	subsection is assessed without regard to whether the taxpayer
355	355	subsequently files the report or whether any taxes were due from the
356	356	taxpayer for the reporting period under the required report.
357	357	SECTION 6.08. Section 171.362, Tax Code, is amended by
358	358	amending Subsection (c) and adding Subsection (f) to read as
359	359	follows:
360	360	(c) The minimum penalty under Subsections (a) and (b) [this
361	361	section] is $1.
362	362	(f) In addition to any other penalty authorized by this
363	363	section, a taxable entity who fails to file a report as required by
364	364	this chapter shall pay a penalty of $50. The penalty provided by
365	365	this subsection is assessed without regard to whether the taxable
366	366	entity subsequently files the report or whether any taxes were due
367	367	from the taxable entity for the reporting period under the required
368	368	report.
369	369	SECTION 6.09. Subchapter B, Chapter 183, Tax Code, is
370	370	amended by adding Section 183.024 to read as follows:
371	371	Sec. 183.024. FAILURE TO PAY TAX OR FILE REPORT. (a) A
372	372	permittee who fails to file a report as required by this chapter or
373	373	who fails to pay a tax imposed by this chapter when due shall pay
374	374	five percent of the amount due as a penalty, and if the permittee
375	375	fails to file the report or pay the tax within 30 days after the day
376	376	the tax or report is due, the permittee shall pay an additional five
377	377	percent of the amount due as an additional penalty.
378	378	(b) The minimum penalty under Subsection (a) is $1.
379	379	(c) A delinquent tax draws interest beginning 60 days from
380	380	the due date.
381	381	(d) In addition to any other penalty authorized by this
382	382	section, a permittee who fails to file a report as required by this
383	383	chapter shall pay a penalty of $50. The penalty provided by this
384	384	subsection is assessed without regard to whether the permittee
385	385	subsequently files the report or whether any taxes were due from the
386	386	permittee for the reporting period under the required report.
387	387	SECTION 6.10. Section 771.0712, Health and Safety Code, is
388	388	amended by adding Subsections (c) and (d) to read as follows:
389	389	(c) A seller who fails to file a report or remit a fee
390	390	collected or payable as provided by this section and comptroller
391	391	rules shall pay five percent of the amount due and payable as a
392	392	penalty, and if the seller fails to file the report or remit the fee
393	393	within 30 days after the day the fee or report is due, the seller
394	394	shall pay an additional five percent of the amount due and payable
395	395	as an additional penalty.
396	396	(d) In addition to any other penalty authorized by this
397	397	section, a seller who fails to file a report as provided by this
398	398	section shall pay a penalty of $50. The penalty provided by this
399	399	subsection is assessed without regard to whether the seller
400	400	subsequently files the report or whether any taxes were due from the
401	401	seller for the reporting period under the required report.
402	402	SECTION 6.11. Section 151.7031, Tax Code, is repealed.
403	403	SECTION 6.12. The change in law made by this article applies
404	404	only to a report due or a tax or fee due and payable on or after the
405	405	effective date of this article. A report due or a tax or fee due and
406	406	payable before the effective date of this article is governed by the
407	407	law in effect at that time, and that law is continued in effect for
408	408	that purpose.
409	409	SECTION 6.13. This article takes effect immediately if this
410	410	Act receives a vote of two-thirds of all the members elected to each
411	411	house, as provided by Section 39, Article III, Texas Constitution.
412	412	If this Act does not receive the vote necessary for immediate
413	413	effect, this article takes effect September 1, 2011.
414	414	ARTICLE 7. CERTAIN FOUNDATION SCHOOL PROGRAM PAYMENTS
415	415	SECTION 7.01. Sections 42.259(c), (d), and (f), Education
416	416	Code, are amended to read as follows:
417	417	(c) Payments from the foundation school fund to each
418	418	category 2 school district shall be made as follows:
419	419	(1) 22 percent of the yearly entitlement of the
420	420	district shall be paid in an installment to be made on or before the
421	421	25th day of September of a fiscal year;
422	422	(2) 18 percent of the yearly entitlement of the
423	423	district shall be paid in an installment to be made on or before the
424	424	25th day of October;
425	425	(3) 9.5 percent of the yearly entitlement of the
426	426	district shall be paid in an installment to be made on or before the
427	427	25th day of November;
428	428	(4) 7.5 percent of the yearly entitlement of the
429	429	district shall be paid in an installment to be made on or before the
430	430	25th day of April;
431	431	(5) five percent of the yearly entitlement of the
432	432	district shall be paid in an installment to be made on or before the
433	433	25th day of May;
434	434	(6) 10 percent of the yearly entitlement of the
435	435	district shall be paid in an installment to be made on or before the
436	436	25th day of June;
437	437	(7) 13 percent of the yearly entitlement of the
438	438	district shall be paid in an installment to be made on or before the
439	439	25th day of July; and
440	440	(8) 15 percent of the yearly entitlement of the
441	441	district shall be paid in an installment to be made after the 5th
442	442	day of September and not later than the 10th day of September of the
443	443	calendar year following the calendar year of the payment made under
444	444	Subdivision (1) [on or before the 25th day of August].
445	445	(d) Payments from the foundation school fund to each
446	446	category 3 school district shall be made as follows:
447	447	(1) 45 percent of the yearly entitlement of the
448	448	district shall be paid in an installment to be made on or before the
449	449	25th day of September of a fiscal year;
450	450	(2) 35 percent of the yearly entitlement of the
451	451	district shall be paid in an installment to be made on or before the
452	452	25th day of October; and
453	453	(3) 20 percent of the yearly entitlement of the
454	454	district shall be paid in an installment to be made after the 5th
455	455	day of September and not later than the 10th day of September of the
456	456	calendar year following the calendar year of the payment made under
457	457	Subdivision (1) [on or before the 25th day of August].
458	458	(f) Except as provided by Subsection (c)(8) or (d)(3), any
459	459	[Any] previously unpaid additional funds from prior fiscal years
460	460	owed to a district shall be paid to the district together with the
461	461	September payment of the current fiscal year entitlement.
462	462	SECTION 7.02. Section 466.355(c), Government Code, is
463	463	repealed.
464	464	SECTION 7.03. The changes made by this article to Section
465	465	42.259, Education Code, apply only to a payment from the foundation
466	466	school fund that is made on or after the effective date of this
467	467	article. A payment to a school district from the foundation school
468	468	fund that is made before that date is governed by Section 42.259,
469	469	Education Code, as it existed before amendment by this article, and
470	470	the former law is continued in effect for that purpose.
471	471	SECTION 7.04. This article takes effect September 1, 2011.
472	472	ARTICLE 8. UNCLAIMED PROPERTY
473	473	SECTION 8.01. Section 74.101(a), Property Code, is amended
474	474	to read as follows:
475	475	(a) Each holder who on June 1 [30] holds property that is
476	476	presumed abandoned under Chapter 72, 73, or 75 of this code or under
477	477	Chapter 154, Finance Code, shall file a report of that property on
478	478	or before the following July [November] 1. The comptroller may
479	479	require the report to be in a particular format, including a format
480	480	that can be read by a computer.
481	481	SECTION 8.02. Section 74.1011(a), Property Code, is amended
482	482	to read as follows:
483	483	(a) Except as provided by Subsection (b), a holder who on
484	484	June 1 [30] holds property valued at more than $250 that is presumed
485	485	abandoned under Chapter 72, 73, or 75 of this code or Chapter 154,
486	486	Finance Code, shall, on or before the preceding May [following
487	487	August] 1, mail to the last known address of the known owner written
488	488	notice stating that:
489	489	(1) the holder is holding the property; and
490	490	(2) the holder may be required to deliver the property
491	491	to the comptroller on or before July [November] 1 if the property is
492	492	not claimed.
493	493	SECTION 8.03. Sections 74.301(a) and (c), Property Code,
494	494	are amended to read as follows:
495	495	(a) Except as provided by Subsection (c), each holder who on
496	496	June 1 [30] holds property that is presumed abandoned under Chapter
497	497	72, 73, or 75 shall deliver the property to the comptroller on or
498	498	before the following July [November] 1 accompanied by the report
499	499	required to be filed under Section 74.101.
500	500	(c) If the property subject to delivery under Subsection (a)
501	501	is the contents of a safe deposit box, the comptroller may instruct
502	502	a holder to deliver the property on a specified date before July
503	503	[November] 1 of the following year.
504	504	SECTION 8.04. Section 74.708, Property Code, is amended to
505	505	read as follows:
506	506	Sec. 74.708. PROPERTY HELD IN TRUST. A holder who on June 1
507	507	[30] holds property presumed abandoned under Chapters 72-75 holds
508	508	the property in trust for the benefit of the state on behalf of the
509	509	missing owner and is liable to the state for the full value of the
510	510	property, plus any accrued interest and penalty. A holder is not
511	511	required by this section to segregate or establish trust accounts
512	512	for the property provided the property is timely delivered to the
513	513	comptroller in accordance with Section 74.301.
514	514	SECTION 8.05. (a) Except as provided by Subsection (b) of
515	515	this section, this article takes effect September 1, 2011.
516	516	(b) Sections 74.101(a), 74.1011(a), 74.301(a) and (c), and
517	517	74.708, Property Code, as amended by this article, take effect
518	518	January 1, 2013.
519	519	ARTICLE 9. FISCAL MATTERS RELATED TO VOTER REGISTRATION
520	520	SECTION 9.01. Sections 18.065(b), (c), and (d), Election
521	521	Code, are amended to read as follows:
522	522	(b) On determining that a registrar is not in substantial
523	523	compliance, the secretary shall deliver written notice of the
524	524	noncompliance to[:
525	525	[(1)] the registrar and include[, including] in the
526	526	notice a description of the violation and an explanation of the
527	527	action necessary for substantial compliance and of the consequences
528	528	of noncompliance[; and
529	529	[(2) the comptroller of public accounts, including in
530	530	the notice the identity of the noncomplying registrar].
531	531	(c) On determining that a noncomplying registrar has
532	532	corrected the violation and is in substantial compliance, the
533	533	secretary shall deliver written notice to the registrar [and to the
534	534	comptroller] that the registrar is in substantial compliance.
535	535	(d) [The comptroller shall retain a notice received under
536	536	this section on file until July 1 following the voting year in which
537	537	it is received.] The secretary shall retain a copy of each notice
538	538	the secretary delivers under this section for two years after the
539	539	date the notice is delivered.
540	540	SECTION 9.02. Section 19.001(a), Election Code, is amended
541	541	to read as follows:
542	542	(a) Before May 15 of each year, the registrar shall prepare
543	543	and submit to the secretary of state [comptroller of public
544	544	accounts] a statement containing:
545	545	(1) the total number of initial registrations for the
546	546	previous voting year;
547	547	(2) the total number of registrations canceled under
548	548	Sections 16.031(a)(1), 16.033, and 16.0332 for the previous voting
549	549	year; and
550	550	(3) the total number of registrations for which
551	551	information was updated for the previous voting year.
552	552	SECTION 9.03. The heading to Section 19.002, Election Code,
553	553	is amended to read as follows:
554	554	Sec. 19.002. PAYMENTS [ISSUANCE OF WARRANTS BY
555	555	COMPTROLLER].
556	556	SECTION 9.04. Sections 19.002(b) and (d), Election Code,
557	557	are amended to read as follows:
558	558	(b) After June 1 of each year, the secretary of state
559	559	[comptroller of public accounts] shall make payments [issue
560	560	warrants] pursuant to vouchers submitted by the registrar and
561	561	approved by the secretary of state in amounts that in the aggregate
562	562	do not exceed the registrar's entitlement. The secretary of state
563	563	shall prescribe the procedures necessary to implement this
564	564	subsection.
565	565	(d) The secretary of state [comptroller] may not make a
566	566	payment under Subsection (b) [issue a warrant] if on June 1 of the
567	567	year in which the payment [warrant] is to be made [issued the most
568	568	recent notice received by the comptroller from the secretary of
569	569	state under Section 18.065 indicates that] the registrar is not in
570	570	substantial compliance with Section 15.083, 16.032, 18.042, or
571	571	18.065 or with rules implementing the registration service program.
572	572	SECTION 9.05. The heading to Section 19.0025, Election
573	573	Code, is amended to read as follows:
574	574	Sec. 19.0025. ELECTRONIC ADMINISTRATION OF VOUCHERS AND
575	575	PAYMENTS [WARRANTS].
576	576	SECTION 9.06. Section 19.0025(a), Election Code, is amended
577	577	to read as follows:
578	578	(a) The secretary of state shall establish and maintain an
579	579	online electronic system for administering vouchers submitted and
580	580	payments made [warrants issued] under Section 19.002.
581	581	SECTION 9.07. Section 19.002(c), Election Code, is
582	582	repealed.
583	583	SECTION 9.08. This article takes effect September 1, 2011.
584	584	ARTICLE 10. CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF
585	585	PUBLIC ACCOUNTS
586	586	SECTION 10.01. Section 403.0551(d), Government Code, is
587	587	amended to read as follows:
588	588	(d) This section does not authorize the comptroller to
589	589	deduct the amount of a state employee's indebtedness to a state
590	590	agency from any amount of compensation owed by the agency to the
591	591	employee, the employee's successor, or the assignee of the employee
592	592	or successor. In this subsection, "compensation" has the meaning
593	593	assigned by Section 403.055 and ["compensation,"] "indebtedness,"
594	594	"state agency," "state employee," and "successor" have the meanings
595	595	assigned by Section 666.001.
596	596	SECTION 10.02. Section 404.022(h), Government Code, is
597	597	amended to read as follows:
598	598	(h) The comptroller may execute a simplified version of a
599	599	depository agreement with an eligible institution desiring to hold
600	600	[$98,000 or less in] state deposits that are fully insured by the
601	601	Federal Deposit Insurance Corporation or the National Credit Union
602	602	Share Insurance Fund.
603	603	SECTION 10.03. Section 411.109(a), Government Code, is
604	604	amended to read as follows:
605	605	(a) The comptroller is entitled to obtain from the
606	606	department criminal history record information maintained by the
607	607	department that the comptroller believes is necessary for the
608	608	enforcement or administration of Chapter 151, 152, [153,] 154, [or]
609	609	155, or 162, Tax Code, including criminal history record
610	610	information that relates to a person who is:
611	611	(1) an applicant for a permit under any of those
612	612	chapters;
613	613	(2) a permit holder under any of those chapters;
614	614	(3) an officer, director, stockholder owning 10
615	615	percent or more of the outstanding stock, partner, owner, or
616	616	managing employee of an applicant or permit holder under any of
617	617	those chapters that is a corporation, association, joint venture,
618	618	syndicate, partnership, or proprietorship;
619	619	(4) believed to have violated any of those chapters;
620	620	or
621	621	(5) being considered by the comptroller for employment
622	622	as a peace officer.
623	623	SECTION 10.04. Section 403.0551(d), Government Code, as
624	624	amended by this article, applies to a deduction made on or after the
625	625	effective date of this Act for an indebtedness to a state agency
626	626	regardless of:
627	627	(1) the date the indebtedness accrued; or
628	628	(2) the dates of the pay period for which the
629	629	compensation from which the indebtedness is deducted is earned.
630	630	ARTICLE 11. PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND
631	631	OTHER MATERIALS
632	632	SECTION 11.01. Section 61.539(c), Education Code, is
633	633	amended to read as follows:
634	634	(c) As soon as practicable after each state fiscal year, the
635	635	board [comptroller] shall prepare a report for that fiscal year of
636	636	the number of students registered in a medical branch, school, or
637	637	college, the total amount of tuition charges collected by each
638	638	institution, the total amount transferred to the comptroller under
639	639	this section, and the total amount available in the physician
640	640	education loan repayment program account for the repayment of
641	641	student loans of physicians under this subchapter. The board
642	642	[comptroller] shall deliver a copy of the report to [the board and
643	643	to] the governor, lieutenant governor, and speaker of the house of
644	644	representatives not later than January 1 following the end of the
645	645	fiscal year covered by the report.
646	646	SECTION 11.02. Section 5.05(c), Tax Code, is amended to
647	647	read as follows:
648	648	(c) The comptroller shall electronically publish all
649	649	materials under this section [provide without charge one copy of
650	650	all materials to officials of local government who are responsible]
651	651	for administering the property tax system. [If a local government
652	652	official requests more than one copy, the comptroller may charge a
653	653	reasonable fee to offset the costs of printing and distributing the
654	654	materials.] The comptroller shall make the materials available to
655	655	local governmental officials and members of the public but may
656	656	charge a reasonable fee to offset the costs of preparing, printing,
657	657	and distributing the materials.
658	658	SECTION 11.03. Section 5.06, Tax Code, is amended to read as
659	659	follows:
660	660	Sec. 5.06. EXPLANATION OF TAXPAYER REMEDIES. [(a)] The
661	661	comptroller shall prepare and electronically publish a pamphlet
662	662	explaining the remedies available to dissatisfied taxpayers and the
663	663	procedures to be followed in seeking remedial action. The
664	664	comptroller shall include in the pamphlet advice on preparing and
665	665	presenting a protest.
666	666	[(b) The comptroller shall provide without charge a
667	667	reasonable number of copies of the pamphlet to any person on
668	668	request. The comptroller may charge a person who requests multiple
669	669	copies of the pamphlet a reasonable fee to offset the costs of
670	670	printing and distributing those copies. The comptroller at its
671	671	discretion shall determine the number of copies that a person may
672	672	receive without charge.]
673	673	SECTION 11.04. Section 5.09, Tax Code, is amended to read as
674	674	follows:
675	675	Sec. 5.09. BIENNIAL [ANNUAL] REPORTS. (a) The comptroller
676	676	shall prepare a biennial [publish an annual] report of [the
677	677	operations of the appraisal districts. The report shall include
678	678	for each appraisal district, each county, and each school district
679	679	and may include for other taxing units] the total appraised
680	680	values[, assessed values,] and taxable values of taxable property
681	681	by category [class of property, the assessment ratio,] and the tax
682	682	rates of each county, municipality, and school district in effect
683	683	for the two years preceding the year in which the report is prepared
684	684	[rate].
685	685	(b) Not later than December 31 of each even-numbered year,
686	686	the [The] comptroller shall:
687	687	(1) electronically publish on the comptroller's
688	688	Internet website the [deliver a copy of each annual] report
689	689	required by [published under] Subsection (a); and
690	690	(2) notify [of this section to] the governor, the
691	691	lieutenant governor, and each member of the legislature that the
692	692	report is available on the website.
693	693	SECTION 11.05. The following are repealed:
694	694	(1) Sections 51.607, 403.030, and 552.143(e),
695	695	Government Code; and
696	696	(2) Subchapter F, Chapter 379A, Local Government Code.
697	697	ARTICLE 12. SALES AND USE TAX HOLIDAY
698	698	SECTION 12.01. The heading to Section 151.326, Tax Code, is
699	699	amended to read as follows:
700	700	Sec. 151.326. CLOTHING AND FOOTWEAR FOR LIMITED PERIOD
701	701	UNDER CERTAIN CIRCUMSTANCES.
702	702	SECTION 12.02. Section 151.326, Tax Code, is amended by
703	703	amending Subsection (a) and adding Subsections (c), (d), (e), and
704	704	(f) to read as follows:
705	705	(a) Subject to Subsection (e), the [The] sale of an article
706	706	of clothing or footwear designed to be worn on or about the human
707	707	body is exempted from the taxes imposed by this chapter if:
708	708	(1) the sales price of the article is less than $100;
709	709	and
710	710	(2) the sale takes place during a period beginning at
711	711	12:01 a.m. on the third Friday in August and ending at 12 midnight
712	712	on the following Sunday.
713	713	(c) On or after January 1, but not later than January 31, of
714	714	each odd-numbered year, the comptroller shall determine the
715	715	following:
716	716	(1) whether a deficit exists in the current state
717	717	fiscal biennium in the general revenue-related funds used for
718	718	certification; and
719	719	(2) whether general revenue-related funds used for
720	720	certification and estimated to be available for the succeeding
721	721	state fiscal biennium are less than the general revenue-related
722	722	funds used for certification and available for the current state
723	723	fiscal biennium.
724	724	(d) The comptroller shall base the determinations required
725	725	by Subsection (c) on the statement required by Section 49a, Article
726	726	III, Texas Constitution, and submitted to the legislature convening
727	727	in regular session the year the determination is made and shall
728	728	assume that the exemptions provided by this section and Section
729	729	151.327 apply.
730	730	(e) The exemptions provided by this section do not apply:
731	731	(1) in the state fiscal year in which the comptroller
732	732	makes the determination required by Subsection (c) if the
733	733	comptroller determines that the condition specified by Subsection
734	734	(c)(1) exists; and
735	735	(2) in the state fiscal year following the year in
736	736	which the comptroller makes the determination required by
737	737	Subsection (c) if the comptroller determines that the condition
738	738	specified by Subsection (c)(2) exists.
739	739	(f) Not later than February 15 of each odd-numbered year,
740	740	the comptroller shall provide notice of whether the exemptions
741	741	provided by this section apply during that state fiscal year and the
742	742	subsequent state fiscal year. The comptroller shall provide the
743	743	notice to each sales tax permit holder and shall clearly post the
744	744	information on the comptroller's Internet website.
745	745	SECTION 12.03. The heading to Section 151.327, Tax Code, is
746	746	amended to read as follows:
747	747	Sec. 151.327. SCHOOL SUPPLIES AND SCHOOL BACKPACKS BEFORE
748	748	START OF SCHOOL UNDER CERTAIN CIRCUMSTANCES.
749	749	SECTION 12.04. Section 151.327, Tax Code, is amended by
750	750	amending Subsection (a-1) and adding Subsection (c) to read as
751	751	follows:
752	752	(a-1) Subject to Subsection (c), the [The] sale or storage,
753	753	use, or other consumption of a school supply or a school backpack is
754	754	exempted from the taxes imposed by this chapter if the school supply
755	755	or backpack is purchased:
756	756	(1) for use by a student in a public or private
757	757	elementary or secondary school;
758	758	(2) during the period described by Section
759	759	151.326(a)(2); and
760	760	(3) for a sales price of less than $100.
761	761	(c) An exemption under this section does not apply to the
762	762	sale or storage, use, or other consumption of a taxable item that
763	763	occurs during a state fiscal year during which the exemptions
764	764	provided by Section 151.326 do not apply.
765	765	SECTION 12.05. The comptroller of public accounts shall
766	766	make the initial determinations required by Section 151.326(c), Tax
767	767	Code, as added by this article, not later than January 31, 2013.
768	768	SECTION 12.06. Notwithstanding Sections 151.326 and
769	769	151.327, Tax Code, as amended by this article, the sale or storage,
770	770	use, or other consumption of a taxable item is not exempt from the
771	771	taxes imposed by Chapter 151, Tax Code, under those sections if the
772	772	sale occurs:
773	773	(1) during the state fiscal year ending August 31,
774	774	2011, if this Act receives enough votes to take effect immediately
775	775	in accordance with Section 12.07 of this article; or
776	776	(2) during the state fiscal year ending August 31,
777	777	2012.
778	778	SECTION 12.07. This article takes effect immediately if
779	779	this Act receives a vote of two-thirds of all the members elected to
780	780	each house, as provided by Section 39, Article III, Texas
781	781	Constitution. If this Act does not receive the vote necessary for
782	782	immediate effect, this article takes effect September 1, 2011.
783	783	ARTICLE 13. SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE
784	784	SECTION 13.01. Section 101.053(b), Insurance Code, is
785	785	amended to read as follows:
786	786	(b) Sections 101.051 and 101.052 do not apply to:
787	787	(1) the lawful transaction of surplus lines insurance
788	788	under Chapter 981;
789	789	(2) the lawful transaction of reinsurance by insurers;
790	790	(3) a transaction in this state that:
791	791	(A) involves a policy that:
792	792	(i) is lawfully solicited, written, and
793	793	delivered outside this state; and
794	794	(ii) covers, at the time the policy is
795	795	issued, only subjects of insurance that are not resident, located,
796	796	or expressly to be performed in this state; and
797	797	(B) takes place after the policy is issued;
798	798	(4) a transaction:
799	799	(A) that involves an insurance contract
800	800	independently procured by the insured from an insurance company not
801	801	authorized to do insurance business in this state through
802	802	negotiations occurring entirely outside this state;
803	803	(B) that is reported; and
804	804	(C) on which premium tax, if applicable, is paid
805	805	in accordance with Chapter 226;
806	806	(5) a transaction in this state that:
807	807	(A) involves group life, health, or accident
808	808	insurance, other than credit insurance, and group annuities in
809	809	which the master policy for the group was lawfully issued and
810	810	delivered in a state in which the insurer or person was authorized
811	811	to do insurance business; and
812	812	(B) is authorized by a statute of this state;
813	813	(6) an activity in this state by or on the sole behalf
814	814	of a nonadmitted captive insurance company that insures solely:
815	815	(A) directors' and officers' liability insurance
816	816	for the directors and officers of the company's parent and
817	817	affiliated companies;
818	818	(B) the risks of the company's parent and
819	819	affiliated companies; or
820	820	(C) both the individuals and entities described
821	821	by Paragraphs (A) and (B);
822	822	(7) the issuance of a qualified charitable gift
823	823	annuity under Chapter 102; or
824	824	(8) a lawful transaction by a servicing company of the
825	825	Texas workers' compensation employers' rejected risk fund under
826	826	Section 4.08, Article 5.76-2, as that article existed before its
827	827	repeal.
828	828	SECTION 13.02. Section 225.001, Insurance Code, is amended
829	829	to read as follows:
830	830	Sec. 225.001. DEFINITIONS [DEFINITION]. In this chapter:
831	831	(1) "Affiliate" means, with respect to an insured, a
832	832	person that controls, is controlled by, or is under common control
833	833	with the insured.
834	834	(2) "Affiliated group" means a group of entities whose
835	835	members are affiliated.
836	836	(3) "Control" means, with respect to determining the
837	837	home state of an affiliated entity:
838	838	(A) to directly or indirectly, acting through one
839	839	or more persons, own, control, or hold the power to vote at least 25
840	840	percent of any class of voting security of the affiliated entity; or
841	841	(B) to control in any manner the election of the
842	842	majority of directors or trustees of the affiliated entity.
843	843	(4) "Home state" means:
844	844	(A) for an insured that is not an affiliated
845	845	group described by Paragraph (B):
846	846	(i) the state in which the insured resides,
847	847	if the insured is an individual;
848	848	(ii) the state in which an insured that is
849	849	not an individual maintains its principal place of business; or
850	850	(iii) if 100 percent of the insured risk is
851	851	located outside of the state in which the insured resides or
852	852	maintains its principal place of business, as applicable, the state
853	853	to which the largest percentage of the insured's taxable premium
854	854	for the insurance contract that covers the risk is allocated; or
855	855	(B) for an affiliated group with respect to which
856	856	more than one member is a named insured on a single insurance
857	857	contract subject to this chapter, the home state of the member, as
858	858	determined under Paragraph (A), that has the largest percentage of
859	859	premium attributed to it under the insurance contract.
860	860	(5) "Premium" means any payment made in consideration
861	861	for insurance and [, "premium"] includes:
862	862	(A) [(1)] a premium;
863	863	(B) premium deposits;
864	864	(C) [(2)] a membership fee;
865	865	(D) a registration fee;
866	866	(E) [(3)] an assessment;
867	867	(F) [(4)] dues; and
868	868	(G) [(5)] any other compensation given in
869	869	consideration for surplus lines insurance.
870	870	SECTION 13.03. Section 225.002, Insurance Code, is amended
871	871	to read as follows:
872	872	Sec. 225.002. APPLICABILITY OF CHAPTER. This chapter
873	873	applies to a surplus lines agent who collects gross premiums for
874	874	surplus lines insurance for any risk in which this state is the home
875	875	state of the insured.
876	876	SECTION 13.04. Section 225.004, Insurance Code, is amended
877	877	by adding Subsections (a-1) and (f) and amending Subsections (b),
878	878	(c), and (e) to read as follows:
879	879	(a-1) Consistent with the Nonadmitted and Reinsurance
880	880	Reform Act of 2010, contained in the Dodd-Frank Wall Street Reform
881	881	and Consumer Protection Act (Pub. L. No. 111-203), this state may
882	882	not impose a premium tax on nonadmitted insurance premiums other
883	883	than premiums paid for insurance in which this state is the home
884	884	state of the insured.
885	885	(b) Taxable gross premiums under this section are based on
886	886	gross premiums written or received for surplus lines insurance
887	887	placed through an eligible surplus lines insurer during a calendar
888	888	year. Notwithstanding the tax basis described by this subsection,
889	889	the comptroller by rule may establish an alternate basis for
890	890	taxation for multistate and single-state policies for the purpose
891	891	of achieving uniformity.
892	892	(c) If a surplus lines insurance policy covers risks or
893	893	exposures only partially located in this state, and this state has
894	894	not entered into a cooperative agreement, reciprocal agreement, or
895	895	compact with another state for the collection of surplus lines tax
896	896	as authorized by Chapter 229, the tax is computed on the entire
897	897	policy [portion of the] premium for any policy in which this state
898	898	is the home state of the insured [that is properly allocated to a
899	899	risk or exposure located in this state].
900	900	(e) Premiums [The following premiums are not taxable in
901	901	this state:
902	902	[(1) premiums properly allocated to another state that
903	903	are specifically exempt from taxation in that state; and
904	904	[(2) premiums] on risks or exposures that are properly
905	905	allocated to federal or international waters or are under the
906	906	jurisdiction of a foreign government are not taxable in this state.
907	907	(f) If this state enters a cooperative agreement,
908	908	reciprocal agreement, or compact with another state for the
909	909	allocation of surplus lines tax as authorized by Chapter 229, taxes
910	910	due on multistate policies shall be allocated and reported in
911	911	accordance with the agreement or compact.
912	912	SECTION 13.05. Section 225.005, Insurance Code, is amended
913	913	to read as follows:
914	914	Sec. 225.005. TAX EXCLUSIVE. The tax imposed by this
915	915	chapter is a transaction tax collected by the surplus lines agent of
916	916	record and is in lieu of any [all] other transaction [insurance]
917	917	taxes on these premiums.
918	918	SECTION 13.06. Section 225.009, Insurance Code, is amended
919	919	by adding Subsection (d) to read as follows:
920	920	(d) Notwithstanding Subsections (a), (b), and (c), if this
921	921	state enters a cooperative agreement, reciprocal agreement, or
922	922	compact with another state for the allocation of surplus lines tax
923	923	as authorized by Chapter 229, the tax shall be allocated and
924	924	reported in accordance with the terms of the agreement or compact.
925	925	SECTION 13.07. Section 226.051, Insurance Code, is amended
926	926	to read as follows:
927	927	Sec. 226.051. DEFINITIONS [DEFINITION]. In this
928	928	subchapter:
929	929	(1) "Affiliate" means, with respect to an insured, a
930	930	person that controls, is controlled by, or is under common control
931	931	with the insured.
932	932	(2) "Affiliated group" means a group of entities whose
933	933	members are affiliated.
934	934	(3) "Control" means, with respect to determining the
935	935	home state of an affiliated entity:
936	936	(A) to directly or indirectly, acting through one
937	937	or more persons, own, control, or hold the power to vote at least 25
938	938	percent of any class of voting security of the affiliated entity; or
939	939	(B) to control in any manner the election of the
940	940	majority of directors or trustees of the affiliated entity.
941	941	(4) "Home state" means:
942	942	(A) for an insured that is not an affiliated
943	943	group described by Paragraph (B):
944	944	(i) the state in which the insured resides,
945	945	if the insured is an individual;
946	946	(ii) the state in which an insured that is
947	947	not an individual maintains its principal place of business; or
948	948	(iii) if 100 percent of the insured risk is
949	949	located outside of the state in which the insured resides or
950	950	maintains its principal place of business, as applicable, the state
951	951	to which the largest percentage of the insured's taxable premium
952	952	for the insurance contract that covers the risk is allocated; or
953	953	(B) for an affiliated group with respect to which
954	954	more than one member is a named insured on a single insurance
955	955	contract subject to this chapter, the home state of the member, as
956	956	determined under Paragraph (A), that has the largest percentage of
957	957	premium attributed to it under the insurance contract.
958	958	(5) "Independently procured insurance" means
959	959	insurance procured directly by an insured from a nonadmitted
960	960	insurer.
961	961	(6) "Premium" means any payment made in consideration
962	962	for insurance and [, "premium"] includes [any consideration for
963	963	insurance, including]:
964	964	(A) [(1)] a premium;
965	965	(B) premium deposits;
966	966	(C) [(2)] a membership fee; [or]
967	967	(D) a registration fee;
968	968	(E) an assessment;
969	969	(F) [(3)] dues; and
970	970	(G) any other compensation given in
971	971	consideration for insurance.
972	972	SECTION 13.08. Section 226.052, Insurance Code, is amended
973	973	to read as follows:
974	974	Sec. 226.052. APPLICABILITY OF SUBCHAPTER. This subchapter
975	975	applies to an insured who procures an independently procured
976	976	insurance contract for any risk in which this state is the home
977	977	state of the insured [in accordance with Section 101.053(b)(4)].
978	978	SECTION 13.09. Section 226.053, Insurance Code, is amended
979	979	by amending Subsections (a) and (b) and adding Subsection (d) to
980	980	read as follows:
981	981	(a) A tax is imposed on each insured at the rate of 4.85
982	982	percent of the premium paid for the insurance contract procured in
983	983	accordance with Section 226.052 [101.053(b)(4)].
984	984	(b) If an independently procured insurance policy
985	985	[contract] covers risks or exposures only partially located in this
986	986	state and this state has not joined a cooperative agreement,
987	987	reciprocal agreement, or compact with another state for the
988	988	allocation of nonadmitted insurance taxes as authorized by Chapter
989	989	229, the tax is computed on the entire policy [portion of the]
990	990	premium for any policy in which this state is the home state of the
991	991	insured [that is properly allocated to a risk or exposure located in
992	992	this state].
993	993	(d) If this state enters into a cooperative agreement,
994	994	reciprocal agreement, or compact with another state for the
995	995	allocation of nonadmitted insurance taxes as authorized by Chapter
996	996	229, the tax due on multistate policies shall be allocated and
997	997	reported in accordance with the agreement or compact.
998	998	SECTION 13.10. Section 981.008, Insurance Code, is amended
999	999	to read as follows:
1000	1000	Sec. 981.008. SURPLUS LINES INSURANCE PREMIUM TAX. The
1001	1001	premiums charged for surplus lines insurance are subject to the
1002	1002	premium tax, if applicable, imposed under Chapter 225.
1003	1003	SECTION 13.11. The following provisions are repealed:
1004	1004	(1) Sections 225.004(d) and (d-1), Insurance Code; and
1005	1005	(2) Sections 226.053(b-1) and (c), Insurance Code.
1006	1006	SECTION 13.12. The changes in law made by this article to
1007	1007	Chapters 225 and 226, Insurance Code, apply only to an insurance
1008	1008	policy that is delivered, issued for delivery, or renewed on or
1009	1009	after July 11, 2011. A policy that is delivered, issued for
1010	1010	delivery, or renewed before July 11, 2011, is governed by the law as
1011	1011	it existed immediately before the effective date of this Act, and
1012	1012	that law is continued in effect for that purpose.
1013	1013	SECTION 13.13. This article takes effect immediately if
1014	1014	this Act receives a vote of two-thirds of all the members elected to
1015	1015	each house, as provided by Section 39, Article III, Texas
1016	1016	Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2011.
1017	1017	ARTICLE 14. OBESITY INTERVENTION AND PREVENTION PROGRAM
1018	1018	SECTION 14.01. Chapter 403, Government Code, is amended by
1019	1019	adding Subchapter Q to read as follows:
1020	1020	SUBCHAPTER Q. OBESITY INTERVENTION AND PREVENTION PROGRAM
1021	1021	Sec. 403.451. PURPOSE. The purpose of this subchapter is
1022	1022	to:
1023	1023	(1) address the economic costs associated with obesity
1024	1024	in this state, including increased medical costs and loss of
1025	1025	economic productivity;
1026	1026	(2) promote obesity intervention and obesity
1027	1027	prevention awareness among school-age children;
1028	1028	(3) address the disproportionate rate of obesity in
1029	1029	low-income populations; and
1030	1030	(4) assist public schools and school districts to
1031	1031	provide obesity intervention and obesity prevention awareness
1032	1032	programs, obesity intervention and prevention programs, and
1033	1033	related training.
1034	1034	Sec. 403.452. TEXAS OBESITY INTERVENTION AND PREVENTION
1035	1035	GRANT PROGRAM AND STUDY. (a) The comptroller shall establish and
1036	1036	administer the obesity intervention and prevention grant program
1037	1037	and study to:
1038	1038	(1) award grants for obesity intervention and
1039	1039	prevention and related programs as provided by this subchapter; and
1040	1040	(2) study obesity in this state as provided by this
1041	1041	subchapter.
1042	1042	(b) The program and study shall be funded with money
1043	1043	appropriated by the legislature for the purposes of this
1044	1044	subchapter.
1045	1045	(c) The comptroller may solicit and accept gifts, grants,
1046	1046	and donations for the purposes of this subchapter.
1047	1047	Sec. 403.453. GRANT PROGRAM. (a) The comptroller shall
1048	1048	establish and administer the obesity intervention and prevention
1049	1049	grant program to award grants to public school programs and other
1050	1050	entities that provide obesity intervention or prevention,
1051	1051	nutrition education, and other educational programs to combat
1052	1052	obesity in this state.
1053	1053	(b) In awarding grants under this section, the comptroller
1054	1054	shall identify and give preference to geographic areas of this
1055	1055	state where student populations have been identified, using the
1056	1056	geographic information system map created under Section 403.454, as
1057	1057	being at high risk for obesity.
1058	1058	(c) In awarding grants under this section, the comptroller
1059	1059	shall consider awarding grants only to programs that obtain
1060	1060	matching funds. Matching funds under this section, if required,
1061	1061	may be obtained from any source available to a public school or
1062	1062	other entity, including in-kind contributions, community or
1063	1063	foundation grants, and individual contributions.
1064	1064	(d) The comptroller shall award grants on a competitive
1065	1065	basis.
1066	1066	Sec. 403.454. COMPILATION OF DATA CONCERNING OBESITY RISK;
1067	1067	GEOGRAPHIC INFORMATION SYSTEM. (a) The comptroller shall
1068	1068	cooperate with the Texas Education Agency, the Department of State
1069	1069	Health Services, or any other state agency as necessary to compile
1070	1070	the data required to identify areas in which children are at risk
1071	1071	for obesity.
1072	1072	(b) The Texas Education Agency shall provide the physical
1073	1073	fitness assessment results compiled under Section 38.103,
1074	1074	Education Code, to the comptroller. The comptroller shall use the
1075	1075	fitness assessment data to produce an interactive geographic
1076	1076	information system map of this state that shows the compiled
1077	1077	physical fitness assessment results for each school district in the
1078	1078	state and identifies areas in which students are at risk for
1079	1079	obesity.
1080	1080	(c) In creating the interactive map under Subsection (b),
1081	1081	the comptroller and each state agency involved shall comply with
1082	1082	state and federal laws, rules, and regulations that protect the
1083	1083	confidentiality of student information and shall protect
1084	1084	confidential information.
1085	1085	Sec. 403.455. REPORT OF PROGRAM RESULTS. (a) A public
1086	1086	school or other entity that is awarded a grant under Section 403.453
1087	1087	for a program shall collect data regarding the effectiveness of the
1088	1088	program and report that information to the comptroller. The
1089	1089	comptroller shall by rule determine the form and content of the
1090	1090	reporting requirements.
1091	1091	(b) In collecting the data required by this section, a
1092	1092	grantee shall protect the confidentiality of students and student
1093	1093	information and shall comply with applicable state and federal
1094	1094	laws, rules, and regulations that protect the confidentiality of
1095	1095	student information.
1096	1096	Sec. 403.456. OBESITY AND WELLNESS INFORMATION PORTAL. The
1097	1097	comptroller shall establish and maintain an obesity and wellness
1098	1098	information portal on the comptroller's Internet website to provide
1099	1099	information to the public regarding obesity and wellness, including
1100	1100	the economic impact obesity has on this state.
1101	1101	Sec. 403.457. ADDITIONAL REPORTING AND MAPPING SYSTEMS.
1102	1102	The comptroller may establish obesity reporting and mapping systems
1103	1103	in addition to the systems described by this subchapter as
1104	1104	necessary to implement this subchapter.
1105	1105	Sec. 403.458. REPORT TO LEGISLATURE. (a) The comptroller
1106	1106	shall submit a report to the legislature not later than January 1 of
1107	1107	each odd-numbered year regarding the effectiveness of the grant
1108	1108	program.
1109	1109	(b) The comptroller may collect information regarding other
1110	1110	state and federal obesity prevention initiatives in this state and
1111	1111	include that information in the report.
1112	1112	Sec. 403.459. RULES. The comptroller shall adopt rules as
1113	1113	necessary for the administration of this subchapter.
1114	1114	ARTICLE 15. EFFECTIVE DATE
1115	1115	SECTION 15.01. Except as otherwise provided by this Act,
1116	1116	this Act takes effect September 1, 2011.