82S10009 JJT-D
By: Pitts H.B. No. 1
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. FOUNDATION SCHOOL PROGRAM PAYMENTS
SECTION 1.01. Subsections (c), (d), and (f), Section
42.259, Education Code, are amended to read as follows:
(c) Payments from the foundation school fund to each
category 2 school district shall be made as follows:
(1) 22 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 18 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October;
(3) 9.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of November;
(4) 7.5 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of April;
(5) five percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of May;
(6) 10 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of June;
(7) 13 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of July; and
(8) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(d) Payments from the foundation school fund to each
category 3 school district shall be made as follows:
(1) 45 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 35 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of October; and
(3) 20 percent of the yearly entitlement of the
district shall be paid in an installment to be made after the 5th
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1) [on or before the 25th day of August].
(f) Except as provided by Subsection (c)(8) or (d)(3), any
[Any] previously unpaid additional funds from prior fiscal years
owed to a district shall be paid to the district together with the
September payment of the current fiscal year entitlement.
SECTION 1.02. Subsection (c), Section 466.355, Government
Code, is amended to read as follows:
(c) Each August the comptroller shall:
(1) estimate the amount to be transferred to the
foundation school fund on or before September 15; and
(2) notwithstanding Subsection (b)(4), transfer the
amount estimated in Subdivision (1) to the foundation school fund
before August 25 [installment payments are made under Section
42.259, Education Code].
SECTION 1.03. The changes made by this article to Section
42.259, Education Code, apply only to a payment from the foundation
school fund that is made on or after the effective date of this Act.
A payment to a school district from the foundation school fund that
is made before that date is governed by Section 42.259, Education
Code, as it existed before amendment by this article, and the former
law is continued in effect for that purpose.
ARTICLE 2. FISCAL MATTERS REGARDING REGULATION AND TAXATION
OF INSURERS
SECTION 2.01. Section 221.006, Insurance Code, is amended
by adding Subsection (c) to read as follows:
(c) An insurer is not entitled to a credit under Subsection
(a) for an examination or evaluation fee paid in calendar year 2012
or 2013. This subsection expires January 1, 2014.
SECTION 2.02. Section 222.007, Insurance Code, is amended
by adding Subsection (c) to read as follows:
(c) An insurer or health maintenance organization is not
entitled to a credit under Subsection (a) for an examination or
evaluation fee paid in calendar year 2012 or 2013. This subsection
expires January 1, 2014.
SECTION 2.03. Section 223.009, Insurance Code, is amended
by adding Subsection (c) to read as follows:
(c) A title insurance company is not entitled to a credit
under Subsection (a) for an examination or evaluation fee paid in
calendar year 2012 or 2013. This subsection expires January 1,
2014.
SECTION 2.04. Section 401.151, Insurance Code, is amended
by adding Subsection (f) to read as follows:
(f) An insurer is not entitled to a credit under Subsection
(e) for an examination or evaluation fee paid in calendar year 2012
or 2013. This subsection expires January 1, 2014.
SECTION 2.05. Section 401.154, Insurance Code, is amended
to read as follows:
Sec. 401.154. TAX CREDIT AUTHORIZED. (a) An insurer is
entitled to a credit on the amount of premium taxes to be paid by the
insurer for all examination fees paid under Section 401.153. The
insurer may take the credit for the taxable year during which the
examination fees are paid and may take the credit to the same extent
the insurer may take a credit for examination fees paid when a
salaried department examiner conducts the examination.
(b) An insurer is not entitled to a credit under Subsection
(a) for an examination fee paid in calendar year 2012 or 2013. This
subsection expires January 1, 2014.
SECTION 2.06. Section 463.160, Insurance Code, is amended
to read as follows:
Sec. 463.160. PREMIUM TAX CREDIT FOR CLASS A ASSESSMENT.
The amount of a Class A assessment paid by a member insurer in each
taxable year shall be allowed as a credit on the amount of premium
taxes due [in the same manner as a credit is allowed under Section
401.151(e)].
SECTION 2.07. The changes in law made by this article apply
only to a tax credit for an examination or evaluation fee paid on or
after January 1, 2012. Tax credits for examination or evaluation
fees paid before January 1, 2012, are governed by the law in effect
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
ARTICLE 3. STATE SALES AND FRANCHISE TAX REFUNDS FOR CERTAIN AD
VALOREM TAXPAYERS
SECTION 3.01. Subchapter F, Chapter 111, Tax Code, is
repealed.
SECTION 3.02. The repeal of Subchapter F, Chapter 111, Tax
Code, by this article does not affect an eligible person's right to
claim a refund of state sales and use and state franchise taxes that
was established under Section 111.301, Tax Code, in relation to
taxes paid before the effective date of this article in a calendar
year for which the person paid ad valorem taxes to a school district
as provided by Section 111.301, Tax Code, before the effective date
of this article. An eligible person's right to claim a refund of
state sales and use and state franchise taxes that was established
under Section 111.301, Tax Code, in relation to taxes paid before
the effective date of this article in a calendar year for which the
person paid ad valorem taxes to a school district as provided by
Section 111.301, Tax Code, before the effective date of this
article is governed by the law in effect on the date the right to
claim the refund was established, and the former law is continued in
effect for that purpose.
SECTION 3.03. This article takes effect October 1, 2011.
ARTICLE 4. TAX RECORDS
SECTION 4.01. Section 2153.201, Occupations Code, is
amended by amending Subsection (b) and adding Subsection (c) to
read as follows:
(b) A record required under Subsection (a) must:
(1) be available at all times for inspection by the
attorney general, the comptroller, or an authorized representative
of the attorney general or comptroller as provided by Subsection
(c);
(2) include information relating to:
(A) the kind of each machine;
(B) the date each machine is:
(i) acquired or received in this state; and
(ii) placed in operation;
(C) the location of each machine, including the:
(i) county;
(ii) municipality, if any; and
(iii) street or rural route number;
(D) the name and complete address of each
operator of each machine;
(E) if the owner is an individual, the full name
and address of the owner; and
(F) if the owner is not an individual, the name
and address of each principal officer or member of the owner; and
(3) be maintained[:
[(A)] at a permanent address in this state
designated on the application for a license under Section
2153.153[; and
[(B) until the second anniversary of the date the
owner ceases ownership of the machine that is the subject of the
record].
(c) A record required under Subsection (a) must be available
for inspection under Subsection (b) for at least four years and as
required by Section 111.0041, Tax Code.
SECTION 4.02. Section 111.0041, Tax Code, is amended to
read as follows:
Sec. 111.0041. RECORDS; BURDEN TO PRODUCE AND SUBSTANTIATE
CLAIMS. (a) Except as provided by Subsection (b), a [Any] taxpayer
who is required by this title to keep records shall keep those
records open to inspection by the comptroller, the attorney
general, or the authorized representatives of either of them for at
least four years.
(b) A taxpayer is required to keep records 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
equivalent records, such as electronically stored images of such
documents, 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. Subsection (b), Section 151.025, Tax Code, is
amended to read as follows:
(b) A record required by Subsection (a) [of this section]
shall be kept for not less than four years from the date [day] that
it is made unless:
(1) the comptroller authorizes in writing its
destruction at an earlier date; or
(2) Section 111.0041 requires that the record be kept
for a longer period.
SECTION 4.06. Section 152.063, Tax Code, is amended by
adding Subsection (h) to read as follows:
(h) Section 111.0041 applies to a person required to keep
records under this chapter.
SECTION 4.07. Section 152.0635, Tax Code, is amended by
adding Subsection (e) to read as follows:
(e) Section 111.0041 applies to a person required to keep
records under this chapter.
SECTION 4.08. Subsection (a), Section 154.209, Tax Code, is
amended to read as follows:
(a) Except as provided by Section 111.0041, each [Each]
permit holder shall keep records available for inspection and
copying by the comptroller and the attorney general for at least
four years.
SECTION 4.09. Subsection (a), Section 155.110, Tax Code, is
amended to read as follows:
(a) Except as provided by Section 111.0041, each [Each]
permit holder shall keep records available for inspection and
copying by the comptroller and the attorney general for at least
four years.
SECTION 4.10. Section 160.046, Tax Code, is amended by
adding Subsection (g) to read as follows:
(g) A person required to keep records under this section
shall also keep the records as required by Section 111.0041.
SECTION 4.11. Subchapter A, Chapter 162, Tax Code, is
amended by adding Section 162.0125 to read as follows:
Sec. 162.0125. DUTY TO KEEP RECORDS. A person required to
keep a record under this chapter shall also keep the record as
required by Section 111.0041.
SECTION 4.12. This article takes effect immediately if this
Act receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this article takes effect October 1, 2011.
ARTICLE 5. UNCLAIMED PROPERTY
SECTION 5.01. Subsection (a), Section 72.101, Property
Code, is amended to read as follows:
(a) Except as provided by this section and Sections 72.1015,
72.1016, 72.1017, and 72.102, personal property is presumed
abandoned if, for longer than three years:
(1) the existence and location of the owner of the
property is unknown to the holder of the property; and
(2) according to the knowledge and records of the
holder of the property, a claim to the property has not been
asserted or an act of ownership of the property has not been
exercised.
SECTION 5.02. Subchapter B, Chapter 72, Property Code, is
amended by adding Section 72.1017 to read as follows:
Sec. 72.1017. UTILITY DEPOSITS. (a) In this section:
(1) "Utility" has the meaning assigned by Section
183.001, Utilities Code.
(2) "Utility deposit" is a refundable money deposit a
utility requires a user of the utility service to pay as a condition
of initiating the service.
(b) Notwithstanding Section 73.102, a utility deposit is
presumed abandoned on the latest of:
(1) the first anniversary of the date a refund check
for the utility deposit was payable to the owner of the deposit;
(2) the first anniversary of the date the utility last
received documented communication from the owner of the utility
deposit; or
(3) the first anniversary of the date the utility
issued a refund check for the deposit payable to the owner of the
deposit if, according to the knowledge and records of the utility or
payor of the check, during that period, a claim to the check has not
been asserted or an act of ownership by the payee has not been
exercised.
SECTION 5.03. Subsection (c), Section 72.102, Property
Code, is amended to read as follows:
(c) A money order to which Subsection (a) applies is
presumed to be abandoned on the latest of:
(1) the third [seventh] anniversary of the date on
which the money order was issued;
(2) the third [seventh] anniversary of the date on
which the issuer of the money order last received from the owner of
the money order communication concerning the money order; or
(3) the third [seventh] anniversary of the date of the
last writing, on file with the issuer, that indicates the owner's
interest in the money order.
SECTION 5.04. Section 72.103, Property Code, is amended to
read as follows:
Sec. 72.103. PRESERVATION OF PROPERTY. Notwithstanding any
other provision of this title except a provision of this section or
Section 72.1016 relating to a money order or a stored value card, a
holder of abandoned property shall preserve the property and may
not at any time, by any procedure, including a deduction for
service, maintenance, or other charge, transfer or convert to the
profits or assets of the holder or otherwise reduce the value of the
property. For purposes of this section, value is determined as of
the date of the last transaction or contact concerning the
property, except that in the case of a money order, value is
determined as of the date the property is presumed abandoned under
Section 72.102(c). If a holder imposes service, maintenance, or
other charges on a money order prior to the time of presumed
abandonment, such charges may not exceed the amount of $1 [50 cents]
per month for each month the money order remains uncashed prior to
the month in which the money order is presumed abandoned.
SECTION 5.05. Section 73.101, Property Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) An account or safe deposit box is presumed abandoned if:
(1) except as provided by Subsection (c), the account
or safe deposit box has been inactive for at least five years as
determined under Subsection (b);
(2) the location of the depositor of the account or
owner of the safe deposit box is unknown to the depository; and
(3) the amount of the account or the contents of the
box have not been delivered to the comptroller in accordance with
Chapter 74.
(c) If the account is a checking or savings account or is a
matured certificate of deposit, the account is presumed abandoned
if the account has been inactive for at least three years as
determined under Subsection (b)(1).
SECTION 5.06. Subsection (a), Section 74.101, Property
Code, is amended to read as follows:
(a) Each holder who on March 1 [June 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 5.07. Subsection (a), Section 74.1011, Property
Code, is amended to read as follows:
(a) Except as provided by Subsection (b), a holder who on
March 1 [June 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 5.08. Subsections (a) and (c), Section 74.301,
Property Code, are amended to read as follows:
(a) Except as provided by Subsection (c), each holder who on
March 1 [June 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 5.09. Subsection (e), Section 74.601, Property
Code, is amended to read as follows:
(e) The comptroller on receipt or from time to time may
[from time to time] sell securities, including stocks, bonds, and
mutual funds, received under this chapter or any other statute
requiring the delivery of unclaimed property to the comptroller and
use the proceeds to buy, exchange, invest, or reinvest in
marketable securities. When making or selling the investments, the
comptroller shall exercise the judgment and care of a prudent
person.
SECTION 5.10. Section 74.708, Property Code, is amended to
read as follows:
Sec. 74.708. PROPERTY HELD IN TRUST. A holder who on March
1 [June 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 5.11. (a) Except as provided by Subsection (b) of
this section, this article takes effect on the 91st day after the
last day of the legislative session.
(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.
SECTION 5.12. A charge imposed on a money order under
Section 72.103, Property Code, by a holder before the effective
date of this article is governed by the law applicable to the charge
immediately before the effective date of this article, and the
holder may retain the charge.
ARTICLE 6. CLASSIFICATION OF JUDICIAL AND COURT PERSONNEL TRAINING
FUND
SECTION 6.01. Section 56.001, Government Code, is amended
to read as follows:
Sec. 56.001. JUDICIAL AND COURT PERSONNEL TRAINING FUND.
(a) The judicial and court personnel training fund is an account
in the general revenue fund. Money in the judicial and court
personnel training fund may be appropriated only to [created in the
state treasury and shall be administered by] the court of criminal
appeals for the uses authorized in Section 56.003.
(b) [(i)] On requisition of the court of criminal appeals,
the comptroller shall draw a warrant on the fund for the amount
specified in the requisition for a use authorized in Section
56.003. A warrant may not exceed the amount appropriated for any
one fiscal year. [At the end of each state fiscal year, any
unexpended balance in the fund in excess of $500,000 shall be
transferred to the general revenue fund.]
ARTICLE 7. PROCESS SERVER CERTIFICATION FEES
SECTION 7.01. Subchapter A, Chapter 51, Government Code, is
amended by adding Section 51.008 to read as follows:
Sec. 51.008. FEES FOR PROCESS SERVER CERTIFICATION.
(a) The process server review board established by supreme court
order may recommend to the supreme court the fees to be charged for
process server certification and renewal of certification. The
supreme court must approve the fees recommended by the process
server review board before the fees may be collected.
(b) If a certification is issued or renewed for a term that
is less than the certification period provided by supreme court
rule, the fee for the certification shall be prorated so that the
process server pays only that portion of the fee that is allocable
to the period during which the certification is valid. On renewal
of the certification on the new expiration date, the process server
must pay the entire certification renewal fee.
(c) The Office of Court Administration of the Texas Judicial
System may collect the fees recommended by the process server
review board and approved by the supreme court. Fees collected
under this section shall be sent to the comptroller for deposit to
the credit of the general revenue fund.
(d) Fees collected under this section may be appropriated to
the Office of Court Administration of the Texas Judicial System for
the support of regulatory programs for process servers and
guardians.
SECTION 7.02. (a) The fees recommended and approved under
Section 51.008, Government Code, as added by this article, apply
to:
(1) each person who holds a process server
certification on the effective date of this article; and
(2) each person who applies for process server
certification on or after the effective date of this article.
(b) The Office of Court Administration of the Texas Judicial
System shall prorate the process server certification fee so that a
person who holds a process server certification on the effective
date of this article pays only that portion of the fee that is
allocable to the period during which the certification is valid. On
renewal of the certification on the new expiration date, the entire
certification renewal fee is payable.
ARTICLE 8. FISCAL MATTERS REGARDING PETROLEUM INDUSTRY REGULATION
SECTION 8.01. Section 26.3574, Water Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) A fee is imposed on the delivery of a petroleum product
on withdrawal from bulk of that product as provided by this
subsection. Each operator of a bulk facility on withdrawal from
bulk of a petroleum product shall collect from the person who orders
the withdrawal a fee in an amount determined as follows:
(1) not more than $3.125 [$3.75] for each delivery
into a cargo tank having a capacity of less than 2,500 gallons [for
the state fiscal year beginning September 1, 2007, through the
state fiscal year ending August 31, 2011];
(2) not more than $6.25 [$7.50] for each delivery into
a cargo tank having a capacity of 2,500 gallons or more but less
than 5,000 gallons [for the state fiscal year beginning September
1, 2007, through the state fiscal year ending August 31, 2011];
(3) not more than $9.37 [$11.75] for each delivery
into a cargo tank having a capacity of 5,000 gallons or more but
less than 8,000 gallons [for the state fiscal year beginning
September 1, 2007, through the state fiscal year ending August 31,
2011];
(4) not more than $12.50 [$15.00] for each delivery
into a cargo tank having a capacity of 8,000 gallons or more but
less than 10,000 gallons [for the state fiscal year beginning
September 1, 2007, through the state fiscal year ending August 31,
2011]; and
(5) not more than $6.25 [$7.50] for each increment of
5,000 gallons or any part thereof delivered into a cargo tank having
a capacity of 10,000 gallons or more [for the state fiscal year
beginning September 1, 2007, through the state fiscal year ending
August 31, 2011].
(b-1) The commission by rule shall set the amount of the fee
in Subsection (b) in an amount not to exceed the amount necessary to
cover the agency's costs of administering this subchapter, as
indicated by the amount appropriated by the legislature from the
petroleum storage tank remediation account for that purpose.
ARTICLE 9. REMITTANCE AND ALLOCATION OF CERTAIN MOTOR FUELS TAXES
SECTION 9.01. Section 162.113, Tax Code, is amended by
adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
follows:
(a-1) On August 28, 2013, each licensed distributor and
licensed importer shall remit to the supplier or permissive
supplier, as applicable, a tax prepayment in an amount equal to 25
percent of the tax imposed by Section 162.101 for gasoline removed
at the terminal rack during July 2013 by the licensed distributor or
licensed importer, without accounting for any credit or allowance
to which the licensed distributor or licensed importer is entitled.
The supplier or permissive supplier shall remit the tax prepayment
received under this subsection to the comptroller by electronic
funds transfer on August 30, 2013, without accounting for any
credit or allowance to which the supplier or permissive supplier is
entitled. Subsections (c)-(e) do not apply to the tax prepayment
under this subsection.
(a-2) A licensed distributor or licensed importer may take a
credit against the amount of tax imposed by Section 162.101 for
gasoline removed at a terminal rack during August 2013 that is
required to be remitted to the supplier or permissive supplier, as
applicable, under Subsection (a) in September 2013. The amount of
the credit is equal to the amount of any tax prepayment remitted by
the licensed distributor or licensed importer as required by
Subsection (a-1).
(a-3) Subsections (a-1) and (a-2) apply to a supplier or an
affiliate of a supplier who removes gasoline at the terminal rack
for distribution to the same extent and in the same manner that
those subsections apply to a licensed distributor or licensed
importer.
(a-4) Subsections (a-1), (a-2), and (a-3) and this
subsection expire September 1, 2015.
SECTION 9.02. Section 162.214, Tax Code, is amended by
adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
follows:
(a-1) On August 28, 2013, each licensed distributor and
licensed importer shall remit to the supplier or permissive
supplier, as applicable, a tax prepayment in an amount equal to 25
percent of the tax imposed by Section 162.201 for diesel fuel
removed at the terminal rack during July 2013 by the licensed
distributor or licensed importer, without accounting for any credit
or allowance to which the licensed distributor or licensed importer
is entitled. The supplier or permissive supplier shall remit the
tax prepayment received under this subsection to the comptroller by
electronic funds transfer on August 30, 2013, without accounting
for any credit or allowance to which the supplier or permissive
supplier is entitled. Subsections (c)-(e) do not apply to the tax
prepayment under this subsection.
(a-2) A licensed distributor or licensed importer may take a
credit against the amount of tax imposed by Section 162.201 for
diesel fuel removed at a terminal rack during August 2013 that is
required to be remitted to the supplier or permissive supplier, as
applicable, under Subsection (a) in September 2013. The amount of
the credit is equal to any tax prepayment remitted by the licensed
distributor or licensed importer as required by Subsection (a-1).
(a-3) Subsections (a-1) and (a-2) apply to a supplier or an
affiliate of a supplier who removes diesel fuel at the terminal rack
for distribution to the same extent and in the same manner that
those subsections apply to a licensed distributor or licensed
importer.
(a-4) Subsections (a-1), (a-2), and (a-3) and this
subsection expire September 1, 2015.
SECTION 9.03. Section 162.503, Tax Code, is amended to read
as follows:
Sec. 162.503. ALLOCATION OF GASOLINE TAX. (a) On or
before the fifth workday after the end of each month, the
comptroller, after making all deductions for refund purposes and
for the amounts allocated under Sections 162.502 and 162.5025,
shall allocate the net remainder of the taxes collected under
Subchapter B as follows:
(1) one-fourth of the tax shall be deposited to the
credit of the available school fund;
(2) one-half of the tax shall be deposited to the
credit of the state highway fund for the construction and
maintenance of the state road system under existing law; and
(3) from the remaining one-fourth of the tax the
comptroller shall:
(A) deposit to the credit of the county and road
district highway fund all the remaining tax receipts until a total
of $7,300,000 has been credited to the fund each fiscal year; and
(B) after the amount required to be deposited to
the county and road district highway fund has been deposited,
deposit to the credit of the state highway fund the remainder of the
one-fourth of the tax, the amount to be provided on the basis of
allocations made each month of the fiscal year, which sum shall be
used by the Texas Department of Transportation for the
construction, improvement, and maintenance of farm-to-market
roads.
(b) Notwithstanding Subsection (a), the comptroller may not
allocate revenue otherwise required to be allocated under
Subsection (a) during July and August 2013 before the first workday
of September 2013. The revenue shall be allocated as otherwise
provided by Subsection (a) not later than the fifth workday of
September 2013. This subsection expires September 1, 2015.
SECTION 9.04. Section 162.504, Tax Code, is amended to read
as follows:
Sec. 162.504. ALLOCATION OF DIESEL FUEL TAX. (a) On or
before the fifth workday after the end of each month, the
comptroller, after making deductions for refund purposes, for the
administration and enforcement of this chapter, and for the amounts
allocated under Section 162.5025, shall allocate the remainder of
the taxes collected under Subchapter C as follows:
(1) one-fourth of the taxes shall be deposited to the
credit of the available school fund; and
(2) three-fourths of the taxes shall be deposited to
the credit of the state highway fund.
(b) Notwithstanding Subsection (a), the comptroller may not
allocate revenue otherwise required to be allocated under
Subsection (a) during July and August 2013 before the first workday
of September 2013. The revenue shall be allocated as otherwise
provided by Subsection (a) not later than the fifth workday of
September 2013. This subsection expires September 1, 2015.
SECTION 9.05. The expiration of the amendments made to the
Tax Code in accordance with this article does not affect tax
liability accruing before the expiration of those amendments. That
liability continues in effect as if the amendments had not expired,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 9.06. This article takes effect October 1, 2011.
ARTICLE 10. REMITTANCE OF MIXED BEVERAGE TAXES AND TAXES AND FEES
ON CERTAIN ALCOHOLIC BEVERAGES
SECTION 10.01. Section 34.04, Alcoholic Beverage Code, is
amended by adding Subsections (c), (d), and (e) to read as follows:
(c) In August 2013, a permittee shall remit a tax prepayment
of taxes due to be remitted in September 2013 that is equal to 25
percent of the amount the permittee is otherwise required to remit
during August 2013 under the reporting system prescribed by the
commission. The prepayment is in addition to the amount the
permittee is otherwise required to remit during August. The
permittee shall remit the additional payment in conjunction with
the report and payment otherwise required during that month.
(d) A permittee who remits the additional payment as
required by Subsection (c) may take a credit in the amount of the
additional payment against the next payment due under the reporting
system prescribed by the commission.
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.02. Section 48.04, Alcoholic Beverage Code, is
amended by adding Subsections (c), (d), and (e) to read as follows:
(c) In August 2013, a permittee shall remit a tax prepayment
of taxes due to be remitted in September 2013 that is equal to 25
percent of the amount the permittee is otherwise required to remit
during August 2013 under the reporting system prescribed by the
commission. The prepayment is in addition to the amount the
permittee is otherwise required to remit during August. The
permittee shall remit the additional payment in conjunction with
the report and payment otherwise required during that month.
(d) A permittee who remits the additional payment as
required by Subsection (c) may take a credit in the amount of the
additional payment against the next payment due under the reporting
system prescribed by the commission.
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.03. Section 201.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 201.07. DUE DATE. (a) The tax on liquor is due and
payable on the 15th of the month following the first sale, together
with a report on the tax due.
(b) In August 2013, each permittee who is liable for the
taxes imposed by this subchapter shall remit a tax prepayment of
taxes due to be remitted in September 2013 that is equal to 25
percent of the amount the permittee is otherwise required to remit
during August 2013 under Subsection (a). The prepayment is in
addition to the amount the permittee is otherwise required to remit
during August. The permittee shall remit the additional payment in
conjunction with the report and payment otherwise required during
that month.
(c) A permittee who remits the additional payment as
required by Subsection (b) may take a credit in the amount of the
additional payment against the next payment due under Subsection
(a).
(d) Subsections (b) and (c) and this subsection expire
September 1, 2015.
SECTION 10.04. Section 201.43, Alcoholic Beverage Code, is
amended by amending Subsection (b) and adding Subsections (c), (d),
and (e) to read as follows:
(b) The tax is due and payable on the 15th day of the month
following the month in which the taxable first sale occurs,
together with a report on the tax due.
(c) In August 2013, each permittee who is liable for the tax
imposed by this subchapter shall remit a tax prepayment of taxes due
to be remitted in September 2013 that is equal to 25 percent of the
amount the permittee is otherwise required to remit during August
2013 under Subsection (b). The prepayment is in addition to the
amount the permittee is otherwise required to remit during August.
The permittee shall remit the additional payment in conjunction
with the report and payment otherwise required during that month.
(d) A permittee who remits the additional payment as
required by Subsection (c) may take a credit in the amount of the
additional payment against the next payment due under Subsection
(b).
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.05. Section 203.03, Alcoholic Beverage Code, is
amended by amending Subsection (b) and adding Subsections (c), (d),
and (e) to read as follows:
(b) The tax is due and payable on the 15th day of the month
following the month in which the taxable first sale occurs,
together with a report on the tax due.
(c) Each licensee who is liable for the tax imposed by this
chapter shall remit a tax prepayment of taxes due to be remitted in
September 2013 that is equal to 25 percent of the amount the
licensee is otherwise required to remit during August 2013 under
Subsection (b). The prepayment is in addition to the amount the
licensee is otherwise required to remit during August. The
licensee shall remit the additional payment in conjunction with the
report and payment otherwise required during that month.
(d) A licensee who remits the additional payment as required
by Subsection (c) may take a credit in the amount of the additional
payment against the next payment due under Subsection (b).
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.06. Section 183.023, Tax Code, is amended to
read as follows:
Sec. 183.023. PAYMENT. (a) The tax due for the preceding
month shall accompany the return and shall be payable to the state.
(b) The comptroller shall deposit the revenue received
under this section in the general revenue fund.
(c) In August 2013, each permittee who is liable for the tax
imposed by this subchapter shall remit a tax prepayment of taxes due
to be remitted in September 2013 that is equal to 25 percent of the
amount the permittee is otherwise required to remit during August
2013 under Subsection (a). The prepayment is in addition to the
amount the permittee is otherwise required to remit during August.
The permittee shall remit the additional payment in conjunction
with the return and payment otherwise required during that month.
(d) A permittee who remits the additional payment as
required by Subsection (c) may take a credit in the amount of the
additional payment against the next payment due under Subsection
(a).
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 10.07. The expiration of the amendments made to the
Alcoholic Beverage Code and Tax Code in accordance with this
article does not affect tax liability accruing before the
expiration of those amendments. That liability continues in effect
as if the amendments had not expired, and the former law is
continued in effect for the collection of taxes due and for civil
and criminal enforcement of the liability for those taxes.
ARTICLE 11. CIGARETTE TAX STAMPING ALLOWANCE
SECTION 11.01. Subsection (a), Section 154.052, Tax Code,
is amended to read as follows:
(a) A distributor is, subject to the provisions of Section
154.051, entitled to 2.5 [three] percent of the face value of stamps
purchased as a stamping allowance for providing the service of
affixing stamps to cigarette packages, except that an out-of-state
distributor is entitled to receive only the same percentage of
stamping allowance as that given to Texas distributors doing
business in the state of the distributor.
SECTION 11.02. This article applies only to cigarette
stamps purchased on or after the effective date of this article.
Cigarette stamps purchased before the effective date of this
article are governed by the law in effect on the date the cigarette
stamps were purchased, and that law is continued in effect for that
purpose.
SECTION 11.03. This article takes effect October 1, 2011.
ARTICLE 12. SALES FOR RESALE
SECTION 12.01. Section 151.006, Tax Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) "Sale for resale" means a sale of:
(1) tangible personal property or a taxable service to
a purchaser who acquires the property or service for the purpose of
reselling it with or as a taxable item in the United States of
America or a possession or territory of the United States of America
or in the United Mexican States in the normal course of business in
the form or condition in which it is acquired or as an attachment to
or integral part of other tangible personal property or taxable
service;
(2) tangible personal property to a purchaser for the
sole purpose of the purchaser's leasing or renting it in the United
States of America or a possession or territory of the United States
of America or in the United Mexican States in the normal course of
business to another person, but not if incidental to the leasing or
renting of real estate;
(3) tangible personal property to a purchaser who
acquires the property for the purpose of transferring it in the
United States of America or a possession or territory of the United
States of America or in the United Mexican States as an integral
part of a taxable service; [or]
(4) a taxable service performed on tangible personal
property that is held for sale by the purchaser of the taxable
service; or
(5) except as provided by Subsection (c), tangible
personal property to a purchaser who acquires the property for the
purpose of transferring it as an integral part of performing a
contract, or a subcontract of a contract, with the federal
government only if the purchaser:
(A) allocates and bills to the contract the cost
of the property as a direct or indirect cost; and
(B) transfers title to the property to the
federal government under the contract and applicable federal
acquisition regulations.
(c) A sale for resale does not include the sale of tangible
personal property or a taxable service to a purchaser who acquires
the property or service for the purpose of performing a service that
is not taxed under this chapter, regardless of whether title
transfers to the service provider's customer, unless the tangible
personal property or taxable service is purchased for the purpose
of reselling it to the United States in a contract, or a subcontract
of a contract, with any branch of the Department of Defense,
Department of Homeland Security, Department of Energy, National
Aeronautics and Space Administration, Central Intelligence Agency,
National Security Agency, National Oceanic and Atmospheric
Administration, or National Reconnaissance Office to the extent
allocated and billed to the contract with the federal government.
SECTION 12.02. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect October 1, 2011.
ARTICLE 13. REMITTANCE OF SALES AND USE TAXES
SECTION 13.01. Section 151.401, Tax Code, is amended by
adding Subsections (c), (d), and (e) to read as follows:
(c) In August 2013, a taxpayer who is required to pay the
taxes imposed by this chapter on or before the 20th day of that
month under Subsection (a), who pays the taxes imposed by this
chapter by electronic funds transfer, and who does not prepay as
provided by Section 151.424 shall remit to the comptroller a tax
prepayment that is equal to 25 percent of the amount the taxpayer is
otherwise required to remit during August 2013 under Subsection
(a). The prepayment is in addition to the amount the taxpayer is
otherwise required to remit during August. The taxpayer shall
remit the additional payment in conjunction with the payment
otherwise required during that month. Section 151.424 does not
apply with respect to the additional payment required by this
subsection.
(d) A taxpayer who remits the additional payment as required
by Subsection (c) may take a credit in the amount of the additional
payment against the next payment due under Subsection (a).
(e) Subsections (c) and (d) and this subsection expire
September 1, 2015.
SECTION 13.02. Section 151.402, Tax Code, is amended to
read as follows:
Sec. 151.402. TAX REPORT DATES. (a) A [Except as provided
by Subsection (b) of this section, a] tax report required by this
chapter for a reporting period is due on the same date that the tax
payment for the period is due as provided by Section 151.401.
(b) A taxpayer may report a credit in the amount of any tax
prepayment remitted to the comptroller as required by Section
151.401(c) on the tax report required by this chapter that is
otherwise due in September 2013 [for taxes required by Section
151.401(a) to be paid on or before August 20 is due on or before the
20th day of the following month]. This subsection expires
September 1, 2015.
SECTION 13.03. The expiration of the amendments made to the
Tax Code in accordance with this article does not affect tax
liability accruing before the expiration of those amendments. That
liability continues in effect as if the amendments had not expired,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
ARTICLE 14. REPORTS REGARDING CERTAIN SALES OF ALCOHOLIC BEVERAGES
SECTION 14.01. Section 111.006, Tax Code, is amended by
adding Subsections (h) and (i) to read as follows:
(h) The comptroller shall disclose information to a person
regarding net sales by quantity, brand, and size that is submitted
in a report required under Section 151.462 if:
(1) the person requesting the information holds a
permit or license under Chapter 19, 20, 21, 37, 64, 65, or 66,
Alcoholic Beverage Code; and
(2) the request relates only to information regarding
the sale of a product distributed by the person making the request.
(i) A disclosure made under Subsection (h) is not considered
a disclosure of competitively sensitive, proprietary, or
confidential information.
SECTION 14.02. Chapter 151, Tax Code, is amended by adding
Subchapter I-1, and a heading is added to that subchapter to read as
follows:
SUBCHAPTER I-1. REPORTS BY PERSONS INVOLVED IN THE MANUFACTURE
AND DISTRIBUTION OF ALCOHOLIC BEVERAGES
SECTION 14.03. Subchapter I-1, Chapter 151, Tax Code, as
added by this Act, is amended by adding Sections 151.462, 151.463,
151.464, 151.465, 151.466, 151.467, 151.468, 151.469, 151.470, and
151.471, and Section 151.433, Tax Code, is transferred to
Subchapter I-1, Chapter 151, Tax Code, redesignated as Section
151.461, Tax Code, and amended to read as follows:
Sec. 151.461 [151.433]. DEFINITIONS. [REPORTS BY
WHOLESALERS AND DISTRIBUTORS OF BEER, WINE, AND MALT LIQUOR.
(a)] In this subchapter [section]:
(1) "Brewer" means a person required to hold a brewer's
permit under Chapter 12, Alcoholic Beverage Code.
(2) "Distributor" means a person required to hold:
(A) a general distributor's license under
Chapter 64, Alcoholic Beverage Code;
(B) a local distributor's license under Chapter
65, Alcoholic Beverage Code; or
(C) a branch distributor's license under Chapter
66, Alcoholic Beverage Code.
(3) "Manufacturer" means a person required to hold a
manufacturer's license under Chapter 62, Alcoholic Beverage Code.
(4) "Package store local distributor" means a person
required to hold:
(A) a package store permit under Chapter 22,
Alcoholic Beverage Code; and
(B) a local distributor's permit under Chapter
23, [a general, local, or branch distributor's license under the]
Alcoholic Beverage Code.
(5) [(2)] "Retailer" means a person required to hold
[the following]:
(A) a wine and beer retailer's permit under
Chapter 25, Alcoholic Beverage Code;
(B) a wine and beer retailer's off-premise permit
under Chapter 26, Alcoholic Beverage Code;
(C) a temporary wine and beer retailer's permit
or special three-day wine and beer permit under Chapter 27,
Alcoholic Beverage Code;
(D) a mixed beverage permit under Chapter 28,
Alcoholic Beverage Code;
(E) a daily temporary mixed beverage permit under
Chapter 30, Alcoholic Beverage Code;
(F) a private club registration permit under
Chapter 32, Alcoholic Beverage Code;
(G) a certificate issued to a fraternal or
veterans organization under Section 32.11, Alcoholic Beverage
Code;
(H) a daily temporary private club permit under
Subchapter B, Chapter 33, Alcoholic Beverage Code;
(I) a temporary charitable auction permit under
Chapter 53, Alcoholic Beverage Code;
(J) a retail dealer's on-premise license under
Chapter 69, Alcoholic Beverage Code;
(K) a temporary license under Chapter 72,
Alcoholic Beverage Code; or
(L) [(D)] a retail dealer's off-premise license
under Chapter 71, Alcoholic Beverage Code, except for a dealer who
also holds a package store permit under Chapter 22, Alcoholic
Beverage Code.
(6) [(3)] "Wholesaler" means a person required to hold
[the following under the Alcoholic Beverage Code]:
(A) a winery permit under Chapter 16, Alcoholic
Beverage Code;
(B) a wholesaler's permit under Chapter 19,
Alcoholic Beverage Code;
(C) [(B)] a general Class B wholesaler's permit
under Chapter 20, Alcoholic Beverage Code; or
(D) [(C)] a local Class B wholesaler's permit
under Chapter 21, Alcoholic Beverage Code.
Sec. 151.462. REPORTS BY BREWERS, MANUFACTURERS,
WHOLESALERS, AND DISTRIBUTORS. (a) [(b)] The comptroller shall
[may, when considered necessary by the comptroller for the
administration of a tax under this chapter,] require each brewer,
manufacturer, wholesaler, [or] distributor, or package store local
distributor [of beer, wine, or malt liquor] to file with the
comptroller a report each month of alcoholic beverage sales to
retailers in this state.
(b) Each brewer, manufacturer, [(c) The] wholesaler, [or]
distributor, or package store local distributor shall file a
separate [the] report for each permit or license held on or before
the 25th day of each month. The report must contain the following
information for the preceding calendar month's sales in relation to
each retailer:
(1) the brewer's, manufacturer's, wholesaler's,
distributor's, or package store local distributor's name, address,
taxpayer number and outlet number assigned by the comptroller, and
alphanumeric permit or license number issued by the Texas Alcoholic
Beverage Commission;
(2) the retailer's:
(A) name and address, including street name and
number, city, and zip code;
(B) taxpayer number assigned by the comptroller;
and
(C) alphanumeric permit or license number issued
by the Texas Alcoholic Beverage Commission for each separate retail
location or outlet to which the brewer, manufacturer, wholesaler,
distributor, or package store local distributor sold the alcoholic
beverages that are listed on the report [the name of the retailer
and the address of the retailer's outlet location to which the
wholesaler or distributor delivered beer, wine, or malt liquor,
including the city and zip code;
[(2) the taxpayer number assigned by the comptroller
to the retailer, if the wholesaler or distributor is in possession
of the number;
[(3) the permit or license number assigned to the
retailer by the Texas Alcoholic Beverage Commission]; and
(3) [(4)] the monthly net sales made by the brewer,
manufacturer, wholesaler, distributor, or package store local
distributor to the retailer for each [by] outlet or location
covered by a separate retail permit or license issued by the Texas
Alcoholic Beverage Commission, including separate line items for:
(A) the number of units of alcoholic beverages;
(B) the individual container size and pack of
each unit;
(C) the brand name;
(D) the type of beverage, such as distilled
spirits, wine, or malt beverage;
(E) the universal product code of the alcoholic
beverage; and
(F) the net selling price of the alcoholic
beverage [by the wholesaler or distributor, including the quantity
and units of beer, wine, and malt liquor sold to the retailer].
(c) [(d)] Except as provided by this subsection, the
brewer, manufacturer, wholesaler, [or] distributor, or package
store local distributor shall file the report with the comptroller
electronically. The comptroller may establish procedures to
temporarily postpone the electronic reporting requirement [for
allowing an alternative method of filing] for a brewer,
manufacturer, wholesaler, [or] distributor, or package store local
distributor who demonstrates to the comptroller an inability to
comply because undue hardship would result if it were required to
file the return electronically [with the electronic reporting
requirement]. If the comptroller determines that another
technological method of filing the report is more efficient than
electronic filing, the comptroller may establish procedures
requiring its use by brewers, manufacturers, wholesalers, [and]
distributors, and package store local distributors.
Sec. 151.463. RULES. The comptroller may adopt rules to
implement this subchapter.
Sec. 151.464. CONFIDENTIALITY. [(e)] Except as provided
by Section 111.006, information contained in a report required to
be filed by this subchapter [section] is confidential and not
subject to disclosure under Chapter 552, Government Code.
Sec. 151.465. APPLICABILITY TO CERTAIN BREWERS. This
subchapter applies only to a brewer whose annual production of malt
liquor in this state, together with the annual production of beer at
the same premises by the holder of a manufacturer's license under
Section 62.12, Alcoholic Beverage Code, does not exceed 75,000
barrels.
Sec. 151.466. APPLICABILITY TO CERTAIN MANUFACTURERS. This
subchapter applies only to a manufacturer whose annual production
of beer in this state does not exceed 75,000 barrels.
Sec. 151.467. SUSPENSION OR CANCELLATION OF PERMIT.
[(f)] If a person fails to file a report required by this
subchapter [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.
Sec. 151.468. CIVIL PENALTY; CRIMINAL PENALTY. (a) If a
person fails to file a report required by this subchapter or fails
to file a complete report, the comptroller [and] may impose a civil
or criminal penalty, or both, under Section 151.7031 or 151.709.
(b) In addition to the penalties imposed under Subsection
(a), a brewer, manufacturer, wholesaler, distributor, or package
store local distributor shall pay the state a civil penalty of not
less than $25 or more than $2,000 for each day a violation continues
if the brewer, manufacturer, wholesaler, distributor, or package
store local distributor:
(1) violates this subchapter; or
(2) violates a rule adopted to administer or enforce
this subchapter.
Sec. 151.469. ACTION BY TEXAS ALCOHOLIC BEVERAGE
COMMISSION. [(g)] If a person fails to file a report required by
this subchapter [section] or fails to file a complete report, the
comptroller may notify the Texas Alcoholic Beverage Commission of
the failure and the commission may take administrative action
against the person for the failure under the Alcoholic Beverage
Code.
Sec. 151.470. AUDIT; INSPECTION. The comptroller may
audit, inspect, or otherwise verify a brewer's, manufacturer's,
wholesaler's, distributor's, or package store local distributor's
compliance with this subchapter.
Sec. 151.471. ACTION BY ATTORNEY GENERAL; VENUE; ATTORNEY'S
FEES. (a) The comptroller may bring an action to enforce this
subchapter and obtain any civil remedy authorized by this
subchapter or any other law for the violation of this subchapter.
The attorney general shall prosecute the action on the
comptroller's behalf.
(b) Venue for and jurisdiction of an action under this
section is exclusively conferred on the district courts in Travis
County.
(c) If the comptroller prevails in an action under this
section, the comptroller and attorney general are entitled to
recover court costs and reasonable attorney's fees incurred in
bringing the action.
SECTION 14.04. Subchapter I-1, Chapter 151, Tax Code, as
added by this article, applies only to a report due on or after the
effective date of this article. A report due before the effective
date of this article is governed by the law as it existed on the date
the report was due, and the former law is continued in effect for
that purpose.
SECTION 14.05. This article takes effect October 1, 2011.
ARTICLE 15. PENALTIES FOR FAILURE TO REPORT OR REMIT
CERTAIN TAXES OR FEES
SECTION 15.01. Subsection (b), Section 111.00455, Tax Code,
is amended to read as follows:
(b) The following are not contested cases under Subsection
(a) and Section 2003.101, Government Code:
(1) a show cause hearing or any hearing not related to
the collection, receipt, administration, or enforcement of the
amount of a tax or fee imposed, or the penalty or interest
associated with that amount, except for a hearing under Section
151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;
(2) a property value study hearing under Subchapter M,
Chapter 403, Government Code;
(3) a hearing in which the issue relates to:
(A) Chapters 72-75, Property Code;
(B) forfeiture of a right to do business;
(C) a certificate of authority;
(D) articles of incorporation;
(E) a penalty imposed under Section 151.703(d)
[151.7031];
(F) the refusal or failure to settle under
Section 111.101; or
(G) a request for or revocation of an exemption
from taxation; and
(4) any other hearing not related to the collection,
receipt, administration, or enforcement of the amount of a tax or
fee imposed, or the penalty or interest associated with that
amount.
SECTION 15.02. Subsection (f), Section 151.433, 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 15.03. 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 15.04. 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 15.05. 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 15.06. 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 15.07. 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 15.08. 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 15.09. 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 15.10. 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 15.11. Section 151.7031, Tax Code, is repealed.
SECTION 15.12. 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 15.13. 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 October 1, 2011.
ARTICLE 16. FISCAL MATTERS RELATED TO VOTER REGISTRATION
SECTION 16.01. Subsections (b), (c), and (d), Section
18.065, Election Code, are amended to read as follows:
(b) On determining that a registrar is not in substantial
compliance, the secretary shall deliver written notice of the
noncompliance to[:
[(1)] the registrar and include[, including] in the
notice a description of the violation and an explanation of the
action necessary for substantial compliance and of the consequences
of noncompliance[; and
[(2) the comptroller of public accounts, including in
the notice the identity of the noncomplying registrar].
(c) On determining that a noncomplying registrar has
corrected the violation and is in substantial compliance, the
secretary shall deliver written notice to the registrar [and to the
comptroller] that the registrar is in substantial compliance.
(d) [The comptroller shall retain a notice received under
this section on file until July 1 following the voting year in which
it is received.] The secretary shall retain a copy of each notice
the secretary delivers under this section for two years after the
date the notice is delivered.
SECTION 16.02. Subsection (a), Section 19.001, Election
Code, is amended to read as follows:
(a) Before May 15 of each year, the registrar shall prepare
and submit to the secretary of state [comptroller of public
accounts] a statement containing:
(1) the total number of initial registrations for the
previous voting year;
(2) the total number of registrations canceled under
Sections 16.031(a)(1), 16.033, and 16.0332 for the previous voting
year; and
(3) the total number of registrations for which
information was updated for the previous voting year.
SECTION 16.03. The heading to Section 19.002, Election
Code, is amended to read as follows:
Sec. 19.002. PAYMENTS [ISSUANCE OF WARRANTS BY
COMPTROLLER].
SECTION 16.04. Subsections (b) and (d), Section 19.002,
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 16.05. 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 16.06. Subsection (a), Section 19.0025, Election
Code, is amended to read as follows:
(a) The secretary of state shall establish and maintain an
online electronic system for administering vouchers submitted and
payments made [warrants issued] under Section 19.002.
SECTION 16.07. Subsection (c), Section 19.002, Election
Code, is repealed.
ARTICLE 17. CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF
PUBLIC ACCOUNTS
SECTION 17.01. Subsection (d), Section 403.0551,
Government Code, is amended to read as follows:
(d) This section does not authorize the comptroller to
deduct the amount of a state employee's indebtedness to a state
agency from any amount of compensation owed by the agency to the
employee, the employee's successor, or the assignee of the employee
or successor. In this subsection, "compensation" has the meaning
assigned by Section 403.055 and ["compensation,"] "indebtedness,"
"state agency," "state employee," and "successor" have the meanings
assigned by Section 666.001.
SECTION 17.02. Subsection (h), Section 404.022, Government
Code, is amended to read as follows:
(h) The comptroller may execute a simplified version of a
depository agreement with an eligible institution desiring to hold
[$98,000 or less in] state deposits that are fully insured by the
Federal Deposit Insurance Corporation or the National Credit Union
Share Insurance Fund.
SECTION 17.03. Subsection (a), Section 411.109, 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 17.04. Subsection (d), Section 403.0551,
Government Code, as amended by this article, applies to a deduction
made on or after the effective date of this Act for an indebtedness
to a state agency regardless of:
(1) the date the indebtedness accrued; or
(2) the dates of the pay period for which the
compensation from which the indebtedness is deducted is earned.
ARTICLE 18. PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND
OTHER MATERIALS
SECTION 18.01. Subsection (c), Section 61.539, Education
Code, is amended to read as follows:
(c) As soon as practicable after each state fiscal year, the
board [comptroller] shall prepare a report for that fiscal year of
the number of students registered in a medical branch, school, or
college, the total amount of tuition charges collected by each
institution, the total amount transferred to the comptroller under
this section, and the total amount available in the physician
education loan repayment program account for the repayment of
student loans of physicians under this subchapter. The board
[comptroller] shall deliver a copy of the report to [the board and
to] the governor, lieutenant governor, and speaker of the house of
representatives not later than January 1 following the end of the
fiscal year covered by the report.
SECTION 18.02. Subsection (c), Section 5.05, Tax Code, is
amended to read as follows:
(c) The comptroller shall electronically publish all
materials under this section [provide without charge one copy of
all materials to officials of local government who are responsible]
for administering the property tax system. [If a local government
official requests more than one copy, the comptroller may charge a
reasonable fee to offset the costs of printing and distributing the
materials.] The comptroller shall make the materials available to
local governmental officials and members of the public but may
charge a reasonable fee to offset the costs of preparing, printing,
and distributing the materials.
SECTION 18.03. 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 18.04. 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 18.05. The following are repealed:
(1) Sections 403.030 and 552.143(e), Government Code;
and
(2) Subchapter F, Chapter 379A, Local Government Code.
ARTICLE 19. SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE
SECTION 19.01. Subsection (b), Section 101.053, Insurance
Code, is amended to read as follows:
(b) Sections 101.051 and 101.052 do not apply to:
(1) the lawful transaction of surplus lines insurance
under Chapter 981;
(2) the lawful transaction of reinsurance by insurers;
(3) a transaction in this state that:
(A) involves a policy that:
(i) is lawfully solicited, written, and
delivered outside this state; and
(ii) covers, at the time the policy is
issued, only subjects of insurance that are not resident, located,
or expressly to be performed in this state; and
(B) takes place after the policy is issued;
(4) a transaction:
(A) that involves an insurance contract
independently procured by the insured from an insurance company not
authorized to do insurance business in this state through
negotiations occurring entirely outside this state;
(B) that is reported; and
(C) on which premium tax, if applicable, is paid
in accordance with Chapter 226;
(5) a transaction in this state that:
(A) involves group life, health, or accident
insurance, other than credit insurance, and group annuities in
which the master policy for the group was lawfully issued and
delivered in a state in which the insurer or person was authorized
to do insurance business; and
(B) is authorized by a statute of this state;
(6) an activity in this state by or on the sole behalf
of a nonadmitted captive insurance company that insures solely:
(A) directors' and officers' liability insurance
for the directors and officers of the company's parent and
affiliated companies;
(B) the risks of the company's parent and
affiliated companies; or
(C) both the individuals and entities described
by Paragraphs (A) and (B);
(7) the issuance of a qualified charitable gift
annuity under Chapter 102; or
(8) a lawful transaction by a servicing company of the
Texas workers' compensation employers' rejected risk fund under
Section 4.08, Article 5.76-2, as that article existed before its
repeal.
SECTION 19.02. Section 225.001, Insurance Code, is amended
to read as follows:
Sec. 225.001. DEFINITIONS [DEFINITION]. In this chapter:
(1) "Affiliate" means, with respect to an insured, a
person or entity that controls, is controlled by, or is under common
control with the insured.
(2) "Affiliated group" means a group of entities whose
members are all affiliated.
(3) "Control" means, with respect to determining the
home state of an affiliated entity:
(A) to directly or indirectly, acting through one
or more persons, own, control, or hold the power to vote at least 25
percent of any class of voting security of the affiliated entity; or
(B) to control in any manner the election of the
majority of directors or trustees of the affiliated entity.
(4) "Home state" means:
(A) for an insured that is not an affiliated
group described by Paragraph (B):
(i) the state in which the insured
maintains the insured's principal residence, if the insured is an
individual;
(ii) the state in which an insured that is
not an individual maintains its principal place of business; or
(iii) if 100 percent of the insured risk is
located outside of the state in which the insured maintains the
insured's principal residence or maintains the insured's principal
place of business, as applicable, the state to which the largest
percentage of the insured's taxable premium for the insurance
contract that covers the risk is allocated; or
(B) for an affiliated group with respect to which
more than one member is a named insured on a single insurance
contract subject to this chapter, the home state of the member, as
determined under Paragraph (A), that has the largest percentage of
premium attributed to it under the insurance contract.
(5) "Premium" means any payment made in consideration
for insurance and [, "premium"] includes:
(A) [(1)] a premium;
(B) premium deposits;
(C) [(2)] a membership fee;
(D) a registration fee;
(E) [(3)] an assessment;
(F) [(4)] dues; and
(G) [(5)] any other compensation given in
consideration for surplus lines insurance.
SECTION 19.03. 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 19.04. Section 225.004, Insurance Code, is amended
by adding Subsections (a-1) and (f) and amending Subsections (b),
(c), and (e) to read as follows:
(a-1) Consistent with 15 U.S.C. Section 8201 et seq., this
state may not impose a premium tax on nonadmitted insurance
premiums other than premiums paid for insurance in which this state
is the home state of the insured.
(b) Taxable gross premiums under this section are based on
gross premiums written or received for surplus lines insurance
placed through an eligible surplus lines insurer during a calendar
year. Notwithstanding the tax basis described by this subsection,
the comptroller by rule may establish an alternate basis for
taxation for multistate and single-state policies for the purpose
of achieving uniformity.
(c) If a surplus lines insurance policy covers risks or
exposures only partially located in this state, and this state has
not entered into a cooperative agreement, reciprocal agreement, or
compact with another state for the collection of surplus lines tax
as authorized by Chapter 229, the tax is computed on the entire
policy [portion of the] premium for any policy in which this state
is the home state of the insured [that is properly allocated to a
risk or exposure located in this state].
(e) Premiums [The following premiums are not taxable in
this state:
[(1) premiums properly allocated to another state that
are specifically exempt from taxation in that state; and
[(2) premiums] on risks or exposures that are properly
allocated to federal or international waters or are under the
jurisdiction of a foreign government are not taxable in this state.
(f) If this state enters a cooperative agreement,
reciprocal agreement, or compact with another state for the
allocation of surplus lines tax as authorized by Chapter 229, taxes
due on multistate policies shall be allocated and reported in
accordance with the agreement or compact.
SECTION 19.05. 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 19.06. 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 19.07. Section 226.051, Insurance Code, is amended
to read as follows:
Sec. 226.051. DEFINITIONS [DEFINITION]. In this
subchapter:
(1) "Affiliate" means, with respect to an insured, a
person or entity that controls, is controlled by, or is under common
control with the insured.
(2) "Affiliated group" means a group of entities whose
members are all affiliated.
(3) "Control" means, with respect to determining the
home state of an affiliated entity:
(A) to directly or indirectly, acting through one
or more persons, own, control, or hold the power to vote at least 25
percent of any class of voting security of the affiliated entity; or
(B) to control in any manner the election of the
majority of directors or trustees of the affiliated entity.
(4) "Home state" means:
(A) for an insured that is not an affiliated
group described by Paragraph (B):
(i) the state in which the insured
maintains the insured's principal residence, if the insured is an
individual;
(ii) the state in which an insured that is
not an individual maintains its principal place of business; or
(iii) if 100 percent of the insured risk is
located outside of the state in which the insured maintains the
insured's principal residence or maintains the insured's principal
place of business, as applicable, the state to which the largest
percentage of the insured's taxable premium for the insurance
contract that covers the risk is allocated; or
(B) for an affiliated group with respect to which
more than one member is a named insured on a single insurance
contract subject to this chapter, the home state of the member, as
determined under Paragraph (A), that has the largest percentage of
premium attributed to it under the insurance contract.
(5) "Independently procured insurance" means
insurance procured directly by an insured from a nonadmitted
insurer.
(6) "Premium" means any payment made in consideration
for insurance and [, "premium"] includes [any consideration for
insurance, including]:
(A) [(1)] a premium;
(B) premium deposits;
(C) [(2)] a membership fee; [or]
(D) a registration fee;
(E) an assessment;
(F) [(3)] dues; and
(G) any other compensation given in
consideration for insurance.
SECTION 19.08. 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 19.09. 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 19.10. 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 19.11. The following provisions are repealed:
(1) Sections 225.004(d) and (d-1), Insurance Code; and
(2) Section 226.053(b-1), Insurance Code.
SECTION 19.12. The changes in law made by this article to
Chapters 225 and 226, Insurance Code, apply only to an insurance
policy that is delivered, issued for delivery, or renewed on or
after July 21, 2011. A policy that is delivered, issued for
delivery, or renewed before July 21, 2011, is governed by the law as
it existed immediately before the effective date of this article,
and that law is continued in effect for that purpose.
SECTION 19.13. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 20. FISCAL MATTERS CONCERNING EARLY HIGH SCHOOL GRADUATION
SECTION 20.01. Subchapter K, Chapter 56, Education Code, is
amended by adding Section 56.2012 to read as follows:
Sec. 56.2012. EXPIRATION OF SUBCHAPTER; ELIGIBILITY
CLOSED. (a) This subchapter expires September 1, 2017.
(b) Notwithstanding Section 56.203, a person may not
receive an award under this subchapter if the person graduates from
high school on or after September 1, 2011.
SECTION 20.02. Subsection (b), Section 54.213, Education
Code, is amended to read as follows:
(b) [Savings to the foundation school fund that occur as a
result of the Early High School Graduation Scholarship program
created in Subchapter K, Chapter 56, and that are not required for
the funding of state credits for tuition and mandatory fees under
Section 56.204 or school district credits under Section 56.2075
shall be used first to provide tuition exemptions under Section
54.212. Any of those savings remaining after providing tuition
exemptions under Section 54.212 shall be used to provide tuition
exemptions under Section 54.214.] The Texas Education Agency shall
[also] accept and make available to provide tuition exemptions
under Section 54.214 gifts, grants, and donations made to the
agency for that purpose. The commissioner of education shall
transfer those funds to the Texas Higher Education Coordinating
Board to distribute to institutions of higher education that
provide exemptions under that section [Payment of funds under this
subsection shall be made in the manner provided by Section 56.207
for state credits under Subchapter K, Chapter 56].
SECTION 20.03. Section 56.210, Education Code, is repealed.
ARTICLE 21. FISCAL MATTERS CONCERNING RETIRED TEACHERS
SECTION 21.01. Notwithstanding Section 825.404(a),
Government Code, for the state fiscal year ending August 31, 2012,
only, the amount of the state contribution to the Teacher
Retirement System of Texas under that section may be less than the
amount contributed by members during that fiscal year.
SECTION 21.02. Notwithstanding Section 1575.202(a),
Insurance Code, for the state fiscal year ending August 31, 2013,
only, the state may contribute an amount to the retired school
employees group insurance fund that is less than one percent of the
salary of each active employee.
ARTICLE 22. COASTAL EROSION
SECTION 22.01. Section 33.608, Natural Resources Code, is
amended to read as follows:
Sec. 33.608. REPORT TO LEGISLATURE. (a) Each biennium, the
commissioner shall submit to the legislature a report listing:
(1) each critical erosion area;
(2) each proposed erosion response study or project;
(3) an estimate of the cost of each proposed study or
project described by Subdivision (2);
(4) each coastal erosion response study or project
funded under this subchapter during the preceding biennium;
(5) the economic and natural resource benefits from
each coastal erosion response study or project described by
Subdivision (4);
(6) the financial status of the account; and
(7) an estimate of the cost of implementing this
subchapter during the succeeding biennium.
(b) The report must include a plan for coastal erosion
response studies and projects that may be funded, wholly or partly,
from money in the account and may be undertaken during the next 10
or more years.
ARTICLE 23. FISCAL MATTERS CONCERNING PARKS AND WILDLIFE
CONTRIBUTIONS
SECTION 23.01. Subchapter D, Chapter 502, Transportation
Code, is amended by adding Sections 502.1747 and 502.1748 to read as
follows:
Sec. 502.1747. VOLUNTARY CONTRIBUTION TO PARKS AND WILDLIFE
DEPARTMENT. (a) When a person registers or renews the registration
of a motor vehicle under this chapter, the person may contribute $5
or more to the Parks and Wildlife Department.
(b) The department shall:
(1) include space on each motor vehicle registration
renewal notice, on the page that states the total fee for
registration renewal, that allows a person renewing a registration
to indicate the amount that the person is voluntarily contributing
to the state parks account;
(2) provide an opportunity to contribute to the state
parks account similar to the opportunity described by Subsection
(a) and in the manner described by Subdivision (1) in any
registration renewal system that succeeds the system in place on
September 1, 2011; and
(3) provide an opportunity for a person to contribute
to the state parks account during the registration renewal process
on the department's Internet website.
(c) If a person makes a contribution under this section and
does not pay the full amount of a registration fee, the county
assessor-collector may credit all or a portion of the contribution
to the person's registration fee.
(d) The county assessor-collector shall send any
contribution made under this section to the comptroller for deposit
to the credit of the state parks account under Section 11.035, Parks
and Wildlife Code. Money received by the Parks and Wildlife
Department under this section may be used only for the operation and
maintenance of state parks, historic sites, or natural areas under
the jurisdiction of the Parks and Wildlife Department.
(e) The department shall consult with the Parks and Wildlife
Department in performing the department's duties under this
section.
Sec. 502.1748. DISPOSITION OF CERTAIN VOLUNTARY
CONTRIBUTIONS. If a person makes a voluntary contribution under
Section 502.1746 or 502.1747 at the time the person registers or
renews the registration of a motor vehicle under this chapter but
the person does not clearly specify the entity to which the person
intends to contribute, the county assessor-collector shall divide
the contribution between the entities authorized to receive
contributions under those sections.
SECTION 23.02. Sections 502.1747 and 502.1748,
Transportation Code, as added by this article, apply only to a motor
vehicle registration renewal notice issued for a registration that
expires on or after January 1, 2012.
ARTICLE 24. FISCAL MATTERS CONCERNING OIL AND GAS REGULATION
SECTION 24.01. Subsection (c), Section 81.0521, Natural
Resources Code, is amended to read as follows:
(c) Two-thirds of the proceeds from this fee, excluding
[including] any penalties collected in connection with the fee,
shall be deposited to the oil and gas regulation and [oil-field]
cleanup fund as provided by Section 81.067 [91.111].
SECTION 24.02. Subchapter C, Chapter 81, Natural Resources
Code, is amended by adding Sections 81.067 through 81.070 to read as
follows:
Sec. 81.067. OIL AND GAS REGULATION AND CLEANUP FUND.
(a) The oil and gas regulation and cleanup fund is created as an
account in the general revenue fund of the state treasury.
(b) The commission shall certify to the comptroller the date
on which the balance in the fund equals or exceeds $20 million. The
oil-field cleanup regulatory fees on oil and gas shall not be
collected or required to be paid on or after the first day of the
second month following the certification, except that the
comptroller shall resume collecting the fees on receipt of a
commission certification that the fund has fallen below $10
million. The comptroller shall continue collecting the fees until
collections are again suspended in the manner provided by this
subsection.
(c) The fund consists of:
(1) proceeds from bonds and other financial security
required by this chapter and benefits under well-specific plugging
insurance policies described by Section 91.104(c) that are paid to
the state as contingent beneficiary of the policies, subject to the
refund provisions of Section 91.1091, if applicable;
(2) private contributions, including contributions
made under Section 89.084;
(3) expenses collected under Section 89.083;
(4) fees imposed under Section 85.2021;
(5) costs recovered under Section 91.457 or 91.459;
(6) proceeds collected under Sections 89.085 and
91.115;
(7) interest earned on the funds deposited in the
fund;
(8) oil and gas waste hauler permit application fees
collected under Section 29.015, Water Code;
(9) costs recovered under Section 91.113(f);
(10) hazardous oil and gas waste generation fees
collected under Section 91.605;
(11) oil-field cleanup regulatory fees on oil
collected under Section 81.116;
(12) oil-field cleanup regulatory fees on gas
collected under Section 81.117;
(13) fees for a reissued certificate collected under
Section 91.707;
(14) fees collected under Section 91.1013;
(15) fees collected under Section 89.088;
(16) fees collected under Section 91.142;
(17) fees collected under Section 91.654;
(18) costs recovered under Sections 91.656 and 91.657;
(19) two-thirds of the fees collected under Section
81.0521;
(20) fees collected under Sections 89.024 and 89.026;
(21) legislative appropriations; and
(22) any surcharges collected under Section 81.070.
Sec. 81.068. PURPOSE OF OIL AND GAS REGULATION AND CLEANUP
FUND. Money in the oil and gas regulation and cleanup fund may be
used by the commission or its employees or agents for any purpose
related to the regulation of oil and gas development, including oil
and gas monitoring and inspections, oil and gas remediation, oil
and gas well plugging, public information and services related to
those activities, and administrative costs and state benefits for
personnel involved in those activities.
Sec. 81.069. REPORTING ON PROGRESS IN MEETING PERFORMANCE
GOALS FOR THE OIL AND GAS REGULATION AND CLEANUP FUND. (a) The
commission, through the legislative appropriations request
process, shall establish specific performance goals for the oil and
gas regulation and cleanup fund for the next biennium, including
goals for each quarter of each state fiscal year of the biennium for
the number of:
(1) orphaned wells to be plugged with state-managed
funds;
(2) abandoned sites to be investigated, assessed, or
cleaned up with state funds; and
(3) surface locations to be remediated.
(b) The commission shall provide quarterly reports to the
Legislative Budget Board that include:
(1) the following information with respect to the
period since the last report was provided as well as cumulatively:
(A) the amount of money deposited in the oil and
gas regulation and cleanup fund;
(B) the amount of money spent from the fund for
the purposes described by Subsection (a);
(C) the balance of the fund; and
(D) the commission's progress in meeting the
quarterly performance goals established under Subsection (a) and,
if the number of orphaned wells plugged with state-managed funds,
abandoned sites investigated, assessed, or cleaned up with state
funds, or surface locations remediated is at least five percent
less than the number projected in the applicable goal established
under Subsection (a), an explanation of the reason for the
variance; and
(2) any additional information or data requested in
writing by the Legislative Budget Board.
(c) The commission shall submit to the legislature and make
available to the public, annually, a report that reviews the extent
to which money provided under Section 81.067 has enabled the
commission to better protect the environment through oil-field
cleanup activities. The report must include:
(1) the performance goals established under
Subsection (a) for that state fiscal year, the commission's
progress in meeting those performance goals, and, if the number of
orphaned wells plugged with state-managed funds, abandoned sites
investigated, assessed, or cleaned up with state funds, or surface
locations remediated is at least five percent less than the number
projected in the applicable goal established under Subsection (a),
an explanation of the reason for the variance;
(2) the number of orphaned wells plugged with
state-managed funds, by region;
(3) the number of wells orphaned, by region;
(4) the number of inactive wells not currently in
compliance with commission rules, by region;
(5) the status of enforcement proceedings for all
wells in violation of commission rules and the period during which
the wells have been in violation, by region in which the wells are
located;
(6) the number of surface locations remediated, by
region;
(7) a detailed accounting of expenditures of money in
the fund for oil-field cleanup activities, including expenditures
for plugging of orphaned wells, investigation, assessment, and
cleaning up of abandoned sites, and remediation of surface
locations;
(8) the method by which the commission sets priorities
by which it determines the order in which orphaned wells are
plugged;
(9) a projection of the amount of money needed for the
next biennium for plugging orphaned wells, investigating,
assessing, and cleaning up abandoned sites, and remediating surface
locations; and
(10) the number of sites successfully remediated under
the voluntary cleanup program under Subchapter O, Chapter 91, by
region.
Sec. 81.070. ESTABLISHMENT OF SURCHARGES ON FEES.
(a) Except as provided by Subsection (b), the commission by rule
shall provide for the imposition of reasonable surcharges as
necessary on fees imposed by the commission that are required to be
deposited to the credit of the oil and gas regulation and cleanup
fund as provided by Section 81.067 in amounts sufficient to enable
the commission to recover the costs of performing the functions
specified by Section 81.068 from those fees and surcharges.
(b) The commission may not impose a surcharge on an
oil-field cleanup regulatory fee on oil collected under Section
81.116 or an oil-field cleanup regulatory fee on gas collected
under Section 81.117.
(c) The commission by rule shall establish a methodology for
determining the amount of a surcharge that takes into account:
(1) the time required for regulatory work associated
with the activity in connection with which the surcharge is
imposed;
(2) the number of individuals or entities from which
the commission's costs may be recovered;
(3) the effect of the surcharge on operators of all
sizes, as measured by the number of oil or gas wells operated;
(4) the balance in the oil and gas regulation and
cleanup fund; and
(5) any other factors the commission determines to be
important to the fair and equitable imposition of the surcharge.
(d) The commission shall collect a surcharge on a fee at the
time the fee is collected.
(e) A surcharge collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund as provided by Section 81.067.
(f) A surcharge collected under this section shall not
exceed an amount equal to 185 percent of the fee on which it is
imposed.
SECTION 24.03. Section 81.115, Natural Resources Code, is
amended to read as follows:
Sec. 81.115. APPROPRIATIONS [PAYMENTS] TO COMMISSION FOR
OIL AND GAS REGULATION AND CLEANUP PURPOSES [DIVISION]. Money
appropriated to the [oil and gas division of the] commission under
the General Appropriations Act for the purposes described by
Section 81.068 shall be paid from the oil and gas regulation and
cleanup fund [General Revenue Fund].
SECTION 24.04. Subsections (d) and (e), Section 81.116,
Natural Resources Code, are amended to read as follows:
(d) The comptroller shall suspend collection of the fee in
the manner provided by Section 81.067 [91.111]. The exemptions and
reductions set out in Sections 202.052, 202.054, 202.056, 202.057,
202.059, and 202.060, Tax Code, do not affect the fee imposed by
this section.
(e) Proceeds from the fee, excluding [including] any
penalties collected in connection with the fee, shall be deposited
to the oil and gas regulation and [oil-field] cleanup fund as
provided by Section 81.067 [91.111 of this code].
SECTION 24.05. Subsections (d) and (e), Section 81.117,
Natural Resources Code, are amended to read as follows:
(d) The comptroller shall suspend collection of the fee in
the manner provided by Section 81.067 [91.111]. The exemptions and
reductions set out in Sections 201.053, 201.057, 201.058, and
202.060, Tax Code, do not affect the fee imposed by this section.
(e) Proceeds from the fee, excluding [including] any
penalties collected in connection with the fee, shall be deposited
to the oil and gas regulation and [oil-field] cleanup fund as
provided by Section 81.067 [91.111 of this code].
SECTION 24.06. Subsection (d), Section 85.2021, Natural
Resources Code, is amended to read as follows:
(d) All fees collected under this section shall be deposited
in the oil and gas regulation and [state oil-field] cleanup fund.
SECTION 24.07. Subsection (d), Section 89.024, Natural
Resources Code, is amended to read as follows:
(d) An operator who files an abeyance of plugging report
must pay an annual fee of $100 for each well covered by the report.
A fee collected under this section shall be deposited in the oil and
gas regulation and [oil-field] cleanup fund.
SECTION 24.08. Subsection (d), Section 89.026, Natural
Resources Code, is amended to read as follows:
(d) An operator who files documentation described by
Subsection (a) must pay an annual fee of $50 for each well covered
by the documentation. A fee collected under this section shall be
deposited in the oil and gas regulation and [oil-field] cleanup
fund.
SECTION 24.09. Subsection (d), Section 89.048, Natural
Resources Code, is amended to read as follows:
(d) On successful plugging of the well by the well plugger,
the surface estate owner may submit documentation to the commission
of the cost of the well-plugging operation. The commission shall
reimburse the surface estate owner from money in the oil and gas
regulation and [oil-field] cleanup fund in an amount not to exceed
50 percent of the lesser of:
(1) the documented well-plugging costs; or
(2) the average cost incurred by the commission in the
preceding 24 months in plugging similar wells located in the same
general area.
SECTION 24.10. Subsection (j), Section 89.083, Natural
Resources Code, is amended to read as follows:
(j) Money collected in a suit under this section shall be
deposited in the oil and gas regulation and [state oil-field]
cleanup fund.
SECTION 24.11. Subsection (d), Section 89.085, Natural
Resources Code, is amended to read as follows:
(d) The commission shall deposit money received from the
sale of well-site equipment or hydrocarbons under this section to
the credit of the oil and gas regulation and [oil-field] cleanup
fund. The commission shall separately account for money and credit
received for each well.
SECTION 24.12. The heading to Section 89.086, Natural
Resources Code, is amended to read as follows:
Sec. 89.086. CLAIMS AGAINST OIL AND GAS REGULATION AND [THE
OIL-FIELD] CLEANUP FUND.
SECTION 24.13. Subsections (a) and (h) through (k), Section
89.086, Natural Resources Code, are amended to read as follows:
(a) A person with a legal or equitable ownership or security
interest in well-site equipment or hydrocarbons disposed of under
Section 89.085 [of this code] may make a claim against the oil and
gas regulation and [oil-field] cleanup fund unless an element of
the transaction giving rise to the interest occurs after the
commission forecloses its statutory lien under Section 89.083.
(h) The commission shall suspend an amount of money in the
oil and gas regulation and [oil-field] cleanup fund equal to the
amount of the claim until the claim is finally resolved. If the
provisions of Subsection (k) [of this section] prevent suspension
of the full amount of the claim, the commission shall treat the
claim as two consecutively filed claims, one in the amount of funds
available for suspension and the other in the remaining amount of
the claim.
(i) A claim made by or on behalf of the operator or a
nonoperator of a well or a successor to the rights of the operator
or nonoperator is subject to a ratable deduction from the proceeds
or credit received for the well-site equipment to cover the costs
incurred by the commission in removing the equipment or
hydrocarbons from the well or in transporting, storing, or
disposing of the equipment or hydrocarbons. A claim made by a
person who is not an operator or nonoperator is subject to a ratable
deduction for the costs incurred by the commission in removing the
equipment from the well. If a claimant is a person who is
responsible under law or commission rules for plugging the well or
cleaning up pollution originating on the lease or if the claimant
owes a penalty assessed by the commission or a court for a violation
of a commission rule or order, the commission may recoup from or
offset against a valid claim an expense incurred by the oil and gas
regulation and [oil-field] cleanup fund that is not otherwise
reimbursed or any penalties owed. An amount recouped from,
deducted from, or offset against a claim under this subsection
shall be treated as an invalid portion of the claim and shall remain
suspended in the oil and gas regulation and [oil-field] cleanup
fund in the manner provided by Subsection (j) [of this section].
(j) If the commission finds that a claim is valid in whole or
in part, the commission shall pay the valid portion of the claim
from the suspended amount in the oil and gas regulation and
[oil-field] cleanup fund not later than the 30th day after the date
of the commission's decision. If the commission finds that a claim
is invalid in whole or in part, the commission shall continue to
suspend in the oil and gas regulation and [oil-field] cleanup fund
an amount equal to the invalid portion of the claim until the period
during which the commission's decision may be appealed has expired
or, if appealed, during the period the case is under judicial
review. If on appeal the district court finds the claim valid in
whole or in part, the commission shall pay the valid portion of the
claim from the suspended amount in the oil and gas regulation and
[oil-field] cleanup fund not later than 30 days after the date the
court's judgment becomes unappealable. On the date the
commission's decision is not subject to judicial review, the
commission shall release from the suspended amount in the oil and
gas regulation and [oil-field] cleanup fund the amount of the claim
held to be invalid.
(k) If the aggregate of claims paid and money suspended that
relates to well-site equipment or hydrocarbons from a particular
well equals the total of the actual proceeds and credit realized
from the disposition of that equipment or those hydrocarbons, the
oil and gas regulation and [oil-field] cleanup fund is not liable
for any subsequently filed claims that relate to the same equipment
or hydrocarbons unless and until the commission releases from the
suspended amount money derived from the disposition of that
equipment or those hydrocarbons. If the commission releases money,
then the commission shall suspend money in the amount of
subsequently filed claims in the order of filing.
SECTION 24.14. Subsection (b), Section 89.121, Natural
Resources Code, is amended to read as follows:
(b) Civil penalties collected for violations of this
chapter or of rules relating to plugging that are adopted under this
code shall be deposited in the general revenue [state oil-field
cleanup] fund.
SECTION 24.15. Subsection (c), Section 91.1013, Natural
Resources Code, is amended to read as follows:
(c) Fees collected under this section shall be deposited in
the oil and gas regulation and [state oil-field] cleanup fund.
SECTION 24.16. Section 91.108, Natural Resources Code, is
amended to read as follows:
Sec. 91.108. DEPOSIT AND USE OF FUNDS. Subject to the
refund provisions of Section 91.1091, if applicable, proceeds from
bonds and other financial security required pursuant to this
chapter and benefits under well-specific plugging insurance
policies described by Section 91.104(c) that are paid to the state
as contingent beneficiary of the policies shall be deposited in the
oil and gas regulation and [oil-field] cleanup fund and,
notwithstanding Sections 81.068 [91.112] and 91.113, may be used
only for actual well plugging and surface remediation.
SECTION 24.17. Subsection (a), Section 91.109, Natural
Resources Code, is amended to read as follows:
(a) A person applying for or acting under a commission
permit to store, handle, treat, reclaim, or dispose of oil and gas
waste may be required by the commission to maintain a performance
bond or other form of financial security conditioned that the
permittee will operate and close the storage, handling, treatment,
reclamation, or disposal site in accordance with state law,
commission rules, and the permit to operate the site. However, this
section does not authorize the commission to require a bond or other
form of financial security for saltwater disposal pits, emergency
saltwater storage pits (including blow-down pits), collecting
pits, or skimming pits provided that such pits are used in
conjunction with the operation of an individual oil or gas lease.
Subject to the refund provisions of Section 91.1091 [of this code],
proceeds from any bond or other form of financial security required
by this section shall be placed in the oil and gas regulation and
[oil-field] cleanup fund. Each bond or other form of financial
security shall be renewed and continued in effect until the
conditions have been met or release is authorized by the
commission.
SECTION 24.18. Subsections (a) and (f), Section 91.113,
Natural Resources Code, are amended to read as follows:
(a) If oil and gas wastes or other substances or materials
regulated by the commission under Section 91.101 are causing or are
likely to cause the pollution of surface or subsurface water, the
commission, through its employees or agents, may use money in the
oil and gas regulation and [oil-field] cleanup fund to conduct a
site investigation or environmental assessment or control or clean
up the oil and gas wastes or other substances or materials if:
(1) the responsible person has failed or refused to
control or clean up the oil and gas wastes or other substances or
materials after notice and opportunity for hearing;
(2) the responsible person is unknown, cannot be
found, or has no assets with which to control or clean up the oil and
gas wastes or other substances or materials; or
(3) the oil and gas wastes or other substances or
materials are causing the pollution of surface or subsurface water.
(f) If the commission conducts a site investigation or
environmental assessment or controls or cleans up oil and gas
wastes or other substances or materials under this section, the
commission may recover all costs incurred by the commission from
any person who was required by law, rules adopted by the commission,
or a valid order of the commission to control or clean up the oil and
gas wastes or other substances or materials. The commission by
order may require the person to reimburse the commission for those
costs or may request the attorney general to file suit against the
person to recover those costs. At the request of the commission,
the attorney general may file suit to enforce an order issued by the
commission under this subsection. A suit under this subsection may
be filed in any court of competent jurisdiction in Travis County.
Costs recovered under this subsection shall be deposited to the oil
and gas regulation and [oil-field] cleanup fund.
SECTION 24.19. Subsection (c), Section 91.264, Natural
Resources Code, is amended to read as follows:
(c) A penalty collected under this section shall be
deposited to the credit of the general revenue [oil-field cleanup]
fund [account].
SECTION 24.20. Subsection (b), Section 91.457, Natural
Resources Code, is amended to read as follows:
(b) If a person ordered to close a saltwater disposal pit
under Subsection (a) [of this section] fails or refuses to close the
pit in compliance with the commission's order and rules, the
commission may close the pit using money from the oil and gas
regulation and [oil-field] cleanup fund and may direct the attorney
general to file suits in any courts of competent jurisdiction in
Travis County to recover applicable penalties and the costs
incurred by the commission in closing the saltwater disposal pit.
SECTION 24.21. Subsection (c), Section 91.459, Natural
Resources Code, is amended to read as follows:
(c) Any [penalties or] costs recovered by the attorney
general under this subchapter shall be deposited in the oil and gas
regulation and [oil-field] cleanup fund.
SECTION 24.22. Subsection (e), Section 91.605, Natural
Resources Code, is amended to read as follows:
(e) The fees collected under this section shall be deposited
in the oil and gas regulation and [oil-field] cleanup fund.
SECTION 24.23. Subsection (e), Section 91.654, Natural
Resources Code, is amended to read as follows:
(e) Fees collected under this section shall be deposited to
the credit of the oil and gas regulation and [oil-field] cleanup
fund under Section 81.067 [91.111].
SECTION 24.24. Subsection (b), Section 91.707, Natural
Resources Code, is amended to read as follows:
(b) Fees collected under this section shall be deposited to
the oil and gas regulation and [oil-field] cleanup fund.
SECTION 24.25. The heading to Section 121.211, Utilities
Code, is amended to read as follows:
Sec. 121.211. PIPELINE SAFETY AND REGULATORY FEES.
SECTION 24.26. Subsections (a) through (e) and (h), Section
121.211, Utilities Code, are amended to read as follows:
(a) The railroad commission by rule may adopt a [an
inspection] fee to be assessed annually against operators of
natural gas distribution pipelines and their pipeline facilities
and natural gas master metered pipelines and their pipeline
facilities subject to this title [chapter].
(b) The railroad commission by rule shall establish the
method by which the fee will be calculated and assessed. In
adopting a fee structure, the railroad commission may consider any
factors necessary to provide for the equitable allocation among
operators of the costs of administering the railroad commission's
pipeline safety and regulatory program under this title [chapter].
(c) The total amount of fees estimated to be collected under
rules adopted by the railroad commission under this section may not
exceed the amount estimated by the railroad commission to be
necessary to recover the costs of administering the railroad
commission's pipeline safety and regulatory program under this
title [chapter], excluding costs that are fully funded by federal
sources.
(d) The commission may assess each operator of a natural gas
distribution system subject to this title [chapter] an annual
[inspection] fee not to exceed one dollar for each service line
reported by the system on the Distribution Annual Report, Form RSPA
F7100.1-1, due on March 15 of each year. The fee is due March 15 of
each year.
(e) The railroad commission may assess each operator of a
natural gas master metered system subject to this title [chapter]
an annual [inspection] fee not to exceed $100 for each master
metered system. The fee is due June 30 of each year.
(h) A fee collected under this section shall be deposited to
the credit of the general revenue fund to be used for the pipeline
safety and regulatory program.
SECTION 24.27. Section 29.015, Water Code, is amended to
read as follows:
Sec. 29.015. APPLICATION FEE. With each application for
issuance, renewal, or material amendment of a permit, the applicant
shall submit to the railroad commission a nonrefundable fee of
$100. Fees collected under this section shall be deposited in the
oil and gas regulation and [oil-field] cleanup fund.
SECTION 24.28. The following provisions of the Natural
Resources Code are repealed:
(1) Section 91.111; and
(2) Section 91.112.
SECTION 24.29. On the effective date of this article:
(1) the oil-field cleanup fund is abolished;
(2) any money remaining in the oil-field cleanup fund
is transferred to the oil and gas regulation and cleanup fund;
(3) any claim against the oil-field cleanup fund is
transferred to the oil and gas regulation and cleanup fund; and
(4) any amount required to be deposited to the credit
of the oil-field cleanup fund shall be deposited to the credit of
the oil and gas regulation and cleanup fund.
ARTICLE 25. FISCAL MATTERS REGARDING LEASING CERTAIN STATE
FACILITIES
SECTION 25.01. The heading to Section 2165.2035, Government
Code, is amended to read as follows:
Sec. 2165.2035. LEASE OF SPACE IN STATE-OWNED PARKING LOTS
AND GARAGES; USE AFTER HOURS.
SECTION 25.02. Subchapter E, Chapter 2165, Government Code,
is amended by adding Sections 2165.204, 2165.2045, and 2165.2046 to
read as follows:
Sec. 2165.204. LEASE OF SPACE IN STATE-OWNED PARKING LOTS
AND GARAGES; EXCESS INDIVIDUAL PARKING SPACES. (a) The commission
may lease to a private individual an individual parking space in a
state-owned parking lot or garage located in the city of Austin that
the commission determines is not needed to accommodate the regular
parking requirements of state employees who work near the lot or
garage and visitors to nearby state government offices.
(b) Money received from a lease under this section shall be
deposited to the credit of the general revenue fund.
(c) In leasing a parking space under Subsection (a), the
commission must ensure that the lease does not restrict uses for
parking lots and garages developed under Section 2165.2035,
including special event parking related to institutions of higher
education.
(d) In leasing or renewing a lease for a parking space under
Subsection (a), the commission shall give preference to an
individual who is currently leasing or previously leased the
parking space.
Sec. 2165.2045. LEASE OF SPACE IN STATE-OWNED PARKING LOTS
AND GARAGES; EXCESS BLOCKS OF PARKING SPACE. (a) The commission
may lease to an institution of higher education or a local
government all or a significant block of a state-owned parking lot
or garage located in the city of Austin that the commission
determines is not needed to accommodate the regular parking
requirements of state employees who work near the lot or garage and
visitors to nearby state government offices.
(b) Money received from a lease under this section shall be
deposited to the credit of the general revenue fund.
(c) In leasing all or a block of a state-owned parking lot or
garage under Subsection (a), the commission must ensure that the
lease does not restrict uses for parking lots and garages developed
under Section 2165.2035, including special event parking related to
institutions of higher education.
(d) In leasing or renewing a lease for all or a block of a
state-owned parking lot or garage under Subsection (a), the
commission shall give preference to an entity that is currently
leasing or previously leased the lot or garage or a block of the lot
or garage.
Sec. 2165.2046. REPORTS ON PARKING PROGRAMS. On or before
October 1 of each even-numbered year, the commission shall submit a
report to the Legislative Budget Board describing the effectiveness
of parking programs developed by the commission under this
subchapter. The report must, at a minimum, include:
(1) the yearly revenue generated by the programs;
(2) the yearly administrative and enforcement costs of
each program;
(3) yearly usage statistics for each program; and
(4) initiatives and suggestions by the commission to:
(A) modify administration of the programs; and
(B) increase revenue generated by the programs.
SECTION 25.03. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 26. FISCAL MATTERS RELATING TO SECRETARY OF STATE
SECTION 26.01. Section 405.014, Government Code, is amended
to read as follows:
Sec. 405.014. ACTS OF THE LEGISLATURE. (a) At each
session of the legislature the secretary of state shall obtain the
bills that have become law. Immediately after the closing of each
session of the legislature, the secretary of state shall bind all
enrolled bills and resolutions in volumes on which the date of the
session is placed.
(b) As soon as practicable after the closing of each session
of the legislature, the secretary of state shall publish and
maintain electronically the bills enacted at that session. The
electronic publication must be:
(1) indexed by bill number and assigned chapter number
for each bill; and
(2) made available by an electronic link on the
secretary of state's generally accessible Internet website.
SECTION 26.02. Subchapter B, Chapter 2158, Government Code,
is repealed.
SECTION 26.03. The change in law made by this article does
not apply to a contract for the publication of the laws of this
state entered into before the effective date of this article.
SECTION 26.04. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 27. FISCAL MATTERS REGARDING ATTORNEY GENERAL
SECTION 27.01. Section 402.006, Government Code, is amended
by adding Subsection (e) to read as follows:
(e) The attorney general may charge a reasonable fee for the
electronic filing of a document.
SECTION 27.02. The heading to Section 402.0212, Government
Code, is amended to read as follows:
Sec. 402.0212. PROVISION OF LEGAL SERVICES--OUTSIDE
COUNSEL; FEES.
SECTION 27.03. Section 402.0212, Government Code, is
amended by amending Subsections (b) and (c) and adding Subsections
(d), (e), and (f) to read as follows:
(b) An invoice submitted to a state agency under a contract
for legal services as described by Subsection (a) must be reviewed
by the attorney general to determine whether the invoice is
eligible for payment.
(c) An attorney or law firm must pay an administrative fee
to the attorney general for the review described in Subsection (b)
when entering into a contract to provide legal services to a state
agency.
(d) For purposes of this section, the functions of a hearing
examiner, administrative law judge, or other quasi-judicial
officer are not considered legal services.
(e) [(c)] This section shall not apply to the Texas Turnpike
Authority division of the Texas Department of Transportation.
(f) The attorney general may adopt rules as necessary to
implement and administer this section.
SECTION 27.04. Section 371.051, Transportation Code, is
amended to read as follows:
Sec. 371.051. ATTORNEY GENERAL REVIEW AND EXAMINATION FEE.
(a) A toll project entity may not enter into a comprehensive
development agreement unless the attorney general reviews the
proposed agreement and determines that it is legally sufficient.
(b) A toll project entity shall pay a nonrefundable
examination fee to the attorney general on submitting a proposed
comprehensive development agreement for review. At the time the
examination fee is paid, the toll project entity shall also submit
for review a complete transcript of proceedings related to the
comprehensive development agreement.
(c) If the toll project entity submits multiple proposed
comprehensive development agreements relating to the same toll
project for review, the entity shall pay the examination fee under
Subsection (b) for each proposed comprehensive development
agreement.
(d) The attorney general shall provide a legal sufficiency
determination not later than the 60th business day after the date
the examination fee and transcript of the proceedings required
under Subsection (b) are received. If the attorney general cannot
provide a legal sufficiency determination within the
60-business-day period, the attorney general shall notify the toll
project entity in writing of the reason for the delay and may extend
the review period for not more than 30 business days.
(e) After the attorney general issues a legal sufficiency
determination, a toll project entity may supplement the transcript
of proceedings or amend the comprehensive development agreement to
facilitate a redetermination by the attorney general of the prior
legal sufficiency determination issued under this section.
(f) The toll project entity may collect or seek
reimbursement of the examination fee under Subsection (b) from the
private participant.
(g) The attorney general by rule shall set the examination
fee required under Subsection (b) in a reasonable amount and may
adopt other rules as necessary to implement this section. The fee
may not be set in an amount that is determined by a percentage of the
cost of the toll project. The amount of the fee may not exceed
reasonable attorney's fees charged for similar legal services in
the private sector.
SECTION 27.05. The fee prescribed by Section 402.006,
Government Code, as amended by this article, applies only to a
document electronically submitted to the office of the attorney
general on or after the effective date of this article.
SECTION 27.06. The fee prescribed by Section 402.0212,
Government Code, as amended by this article, applies only to
invoices for legal services submitted to the office of the attorney
general for review on or after the effective date of this article.
SECTION 27.07. The fee prescribed by Section 371.051,
Transportation Code, as amended by this article, applies only to a
comprehensive development agreement submitted to the office of the
attorney general on or after the effective date of this article.
SECTION 27.08. The changes in law made by this article apply
only to a contract for legal services between a state agency and a
private attorney or law firm entered into on or after the effective
date of this article. A contract for legal services between a state
agency and a private attorney or law firm entered into before the
effective date of this article is governed by the law in effect at
the time the contract was entered into, and the former law is
continued in effect for that purpose.
SECTION 27.09. Except as otherwise provided by this
article, this article takes effect immediately if this Act receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
article takes effect on the 91st day after the last day of the
legislative session.
ARTICLE 28. TEXAS PRESERVATION TRUST FUND ACCOUNT
SECTION 28.01. Subsections (a), (b), and (f), Section
442.015, Government Code, are amended to read as follows:
(a) Notwithstanding Section [Sections 403.094 and] 403.095,
the Texas preservation trust fund account is a separate account in
the general revenue fund. The account consists of transfers made to
the account, loan repayments, grants and donations made for the
purposes of this program, proceeds of sales, income earned
[earnings] on money in the account, and any other money received
under this section. Money in [Distributions from] the account may
be used only for the purposes of this section and [may not be used]
to pay operating expenses of the commission. Money allocated to the
commission's historic preservation grant program shall be
deposited to the credit of the account. Income earned [Earnings] on
money in the account shall be deposited to the credit of the
account.
(b) The commission may use money in [distributions from] the
Texas preservation trust fund account to provide financial
assistance to public or private entities for the acquisition,
survey, restoration, or preservation, or for planning and
educational activities leading to the preservation, of historic
property in the state that is listed in the National Register of
Historic Places or designated as a State Archeological Landmark or
Recorded Texas Historic Landmark, or that the commission determines
is eligible for such listing or designation. The financial
assistance may be in the amount and form and according to the terms
that the commission by rule determines. The commission shall give
priority to property the commission determines to be endangered by
demolition, neglect, underuse, looting, vandalism, or other threat
to the property. Gifts and grants deposited to the credit of the
account specifically for any eligible projects may be used only for
the type of projects specified. If such a specification is not
made, the gift or grant shall be unencumbered and accrue to the
benefit of the Texas preservation trust fund account. If such a
specification is made, the entire amount of the gift or grant may be
used during any period for the project or type of project specified.
(f) The advisory board shall recommend to the commission
rules for administering this section [Subsections (a)-(e)].
SECTION 28.02. Subsections (h), (i), (j), (k), and (l),
Section 442.015, Government Code, are repealed.
SECTION 28.03. The comptroller of public accounts and the
Texas Historical Commission shall enter into a memorandum of
understanding to facilitate the conversion of assets of the Texas
preservation trust fund account into cash for deposit into the
state treasury using a method that provides for the lowest amount of
revenue loss to the state.
SECTION 28.04. This article takes effect November 1, 2011.
ARTICLE 29. FISCAL MATTERS CONCERNING INFORMATION TECHNOLOGY
SECTION 29.01. Section 2054.380, Government Code, is
amended to read as follows:
Sec. 2054.380. FEES. (a) The department shall set and
charge a fee to each state agency that receives a service from a
statewide technology center in an amount sufficient to cover the
direct and indirect cost of providing the service.
(b) Revenue derived from the collection of fees imposed
under Subsection (a) may be appropriated to the department for:
(1) developing statewide information resources
technology policies and planning under this chapter and Chapter
2059; and
(2) providing shared information resources technology
services under this chapter.
SECTION 29.02. Subsection (d), Section 2157.068,
Government Code, is amended to read as follows:
(d) The department may charge a reasonable administrative
fee to a state agency, political subdivision of this state, or
governmental entity of another state that purchases commodity items
through the department in an amount that is sufficient to recover
costs associated with the administration of this section. Revenue
derived from the collection of fees imposed under this subsection
may be appropriated to the department for:
(1) developing statewide information resources
technology policies and planning under Chapters 2054 and 2059; and
(2) providing shared information resources technology
services under Chapter 2054.
SECTION 29.03. Subsections (a) and (d), Section 2170.057,
Government Code, are amended to read as follows:
(a) The department shall develop a system of billings and
charges for services provided in operating and administering the
consolidated telecommunications system that allocates the total
state cost to each entity served by the system based on
proportionate usage. The department shall set and charge a fee to
each entity that receives services provided under this chapter in
an amount sufficient to cover the direct and indirect costs of
providing the service. Revenue derived from the collection of fees
imposed under this subsection may be appropriated to the department
for:
(1) developing statewide information resources
technology policies and planning under Chapters 2054 and 2059; and
(2) providing:
(A) shared information resources technology
services under Chapter 2054; and
(B) network security services under Chapter
2059.
(d) The department shall maintain in the revolving fund
account sufficient amounts to pay the bills of the consolidated
telecommunications system and the centralized capitol complex
telephone system. [The department shall certify amounts that
exceed this amount to the comptroller, and the comptroller shall
transfer the excess amounts to the credit of the statewide network
applications account established by Section 2054.011.]
SECTION 29.04. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 30. STATE DEBT
SECTION 30.01. Chapter 1231, Government Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G. LIMIT ON STATE DEBT PAYABLE FROM GENERAL REVENUE FUND
Sec. 1231.151. DEFINITIONS. In this subchapter:
(1) "Maximum annual debt service" means the limitation
on annual debt service imposed by Section 49-j(a), Article III,
Texas Constitution.
(2) "State debt payable from the general revenue fund"
has the meaning assigned by Section 49-j(b), Article III, Texas
Constitution.
(3) "Unissued debt" means state debt payable from the
general revenue fund that has been authorized but not issued.
Sec. 1231.152. COMPUTATION OF DEBT LIMIT. In computing the
annual debt service in a state fiscal year on state debt payable
from the general revenue fund for purposes of determining whether
additional state debt may be authorized without exceeding the
maximum annual debt service, the board may employ any assumptions
related to unissued debt that the board determines are necessary to
reflect common or standard debt issuance practices authorized by
law, including assumptions regarding:
(1) interest rates;
(2) debt maturity; and
(3) debt service payment structures.
Sec. 1231.153. REPORT ON COMPUTATION. (a) The board shall
publish during each state fiscal year a report providing a detailed
description of the method used to compute the annual debt service in
that fiscal year on state debt payable from the general revenue fund
for purposes of determining whether additional state debt may be
authorized. The report must describe:
(1) the debt service included in the computation,
including debt service on issued and unissued debt;
(2) the assumptions on which the debt service on
unissued debt was based; and
(3) any other factors required by law that affect the
computation.
(b) The board may publish the report required by this
section as a component of any other report required by law,
including the annual report required by Section 1231.102, or as an
independent report. The board shall make the report available to
the public.
SECTION 30.02. The Bond Review Board shall publish the
initial report required by Section 1231.153, Government Code, as
added by this article, during the state fiscal year beginning
September 1, 2011.
SECTION 30.03. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 31. CONTINUING LEGAL EDUCATION REQUIREMENTS FOR ATTORNEY
EMPLOYED BY ATTORNEY GENERAL
SECTION 31.01. Section 81.113, Government Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) The state bar shall credit an attorney licensed in
this state with meeting the minimum continuing legal education
requirements of the state bar for a reporting year if during the
reporting year the attorney is employed full-time as an attorney by
the office of the attorney general. An attorney credited for
continuing legal education under this subsection must meet the
continuing legal education requirements of the state bar in legal
ethics or professional responsibility. This subsection expires
January 1, 2014.
SECTION 31.02. Subchapter A, Chapter 402, Government Code,
is amended by adding Section 402.010 to read as follows:
Sec. 402.010. CONTINUING LEGAL EDUCATION PROGRAMS. The
office of the attorney general shall recognize, prepare, or
administer continuing legal education programs that meet
continuing legal education requirements imposed under Section
81.113(c) for the attorneys employed by the office. This section
expires January 1, 2014.
SECTION 31.03. Section 81.113, Government Code, as amended
by this article, applies only to the requirements for a continuing
legal education compliance year that ends on or after October 1,
2011. The requirements for continuing legal education for a
compliance year that ends before October 1, 2011, are covered by the
law and rules in effect when the compliance year ended, and that law
and those rules are continued in effect for that purpose.
ARTICLE 32. REGISTRATION FEE AND REGISTRATION RENEWAL FEE FOR
LOBBYISTS
SECTION 32.01. Subsection (c), Section 305.005, Government
Code, is amended to read as follows:
(c) The registration fee and registration renewal fee are:
(1) $150 [$100] for a registrant employed by an
organization exempt from federal income tax under Section
501(c)(3), [or] 501(c)(4), or 501(c)(6), Internal Revenue Code of
1986;
(2) $75 [$50] for any person required to register
solely because the person is required to register under Section
305.0041 [of this chapter]; or
(3) $750 [$500] for any other registrant.
ARTICLE 33. ASSESSMENT OF PREMIUM DIFFERENTIAL ON CERTAIN PUBLIC
EMPLOYEES WHO USE TOBACCO
SECTION 33.01. Subchapter G, Chapter 1551, Insurance Code,
is amended by adding Section 1551.3075 to read as follows:
Sec. 1551.3075. TOBACCO USER PREMIUM DIFFERENTIAL.
(a) The board of trustees shall assess each participant in a
health benefit plan provided under the group benefits program who
uses one or more tobacco products a tobacco user premium
differential, to be paid in monthly installments. Except as
provided by Subsection (b), the board of trustees shall determine
the amount of the monthly installments of the premium differential.
(b) If the General Appropriations Act for a state fiscal
biennium sets the amount of the monthly installments of the tobacco
user premium differential for that biennium, the board of trustees
shall assess the premium differential during that biennium in the
amount prescribed by the General Appropriations Act.
SECTION 33.02. Section 1551.314, Insurance Code, is amended
to read as follows:
Sec. 1551.314. CERTAIN STATE CONTRIBUTIONS PROHIBITED. A
state contribution may not be:
(1) made for coverages under this chapter selected by
an individual who receives a state contribution, other than as a
spouse, dependent, or beneficiary, for coverages under a group
benefits program provided by an institution of higher education, as
defined by Section 61.003, Education Code; or
(2) made for or used to pay a tobacco user premium
differential assessed under Section 1551.3075.
SECTION 33.03. The board of trustees of the Employees
Retirement System of Texas shall implement the tobacco user premium
differential required under Section 1551.3075, Insurance Code, as
added by this article, not later than January 1, 2012.
ARTICLE 34. PUBLIC ASSISTANCE REPORTING INFORMATION SYSTEM
SECTION 34.01. Subsection (c), Section 434.017, Government
Code, is amended to read as follows:
(c) Money in the fund may be appropriated to the Texas
Veterans Commission to:
(1) enhance or improve veterans' assistance programs,
including veterans' representation and counseling;
(2) make grants to address veterans' needs; [and]
(3) administer the fund; and
(4) analyze and investigate data received from the
federal Public Assistance Reporting Information System (PARIS)
that is administered by the Administration for Children and
Families of the United States Department of Health and Human
Services.
SECTION 34.02. The comptroller shall credit to the fund for
veterans' assistance established under Section 434.017, Government
Code, as amended by this article, the savings generated from the use
of the federal Public Assistance Reporting Information System
(PARIS) under that section.
ARTICLE 35. REGIONAL POISON CONTROL CENTER MANAGEMENT CONTROLS AND
EFFICIENCY
SECTION 35.01. Section 777.001, Health and Safety Code, is
amended by amending Subsection (c) and adding Subsection (d) to
read as follows:
(c) The Commission on State Emergency Communications may
standardize the operations of and implement management controls to
improve the efficiency of regional poison control centers [vote to
designate a seventh regional or satellite poison control center in
Harris County. That poison control center is subject to all
provisions of this chapter and other law relating to regional
poison control centers].
(d) If the Commission on State Emergency Communications
implements management controls under Subsection (c), the
commission shall submit to the governor and the Legislative Budget
Board a plan for implementing the controls not later than October
31, 2011. This subsection expires January 1, 2013.
ARTICLE 36. AUTHORIZED USES FOR CERTAIN DEDICATED PERMANENT FUNDS
SECTION 36.01. Section 403.105, Government Code, is amended
by amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Except as provided by Subsections (b-1), (c), (e), (f),
and (h), money in the fund may not be appropriated for any purpose.
(b-1) Notwithstanding the limitations and requirements of
Section 403.1068, the legislature may appropriate money in the
fund, including the corpus and available earnings of the fund
determined under Section 403.1068, to pay the principal of or
interest on a bond issued for the purposes of Section 67, Article
III, Texas Constitution. This subsection does not authorize the
appropriation under this subsection of money subject to a
limitation or requirement as described by Subsection (e) that is
not consistent with the use of the money in accordance with this
subsection.
SECTION 36.02. Section 403.1055, Government Code, is
amended by amending Subsection (b) and adding Subsection (b-1) to
read as follows:
(b) Except as provided by Subsections (b-1), (c), (e), (f),
and (h), money in the fund may not be appropriated for any purpose.
(b-1) Notwithstanding the limitations and requirements of
Section 403.1068, the legislature may appropriate money in the
fund, including the corpus and available earnings of the fund
determined under Section 403.1068, to pay the principal of or
interest on a bond issued for the purposes of Section 67, Article
III, Texas Constitution. This subsection does not authorize the
appropriation under this subsection of money subject to a
limitation or requirement as described by Subsection (e) that is
not consistent with the use of the money in accordance with this
subsection.
SECTION 36.03. Section 403.106, Government Code, is amended
by amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Except as provided by Subsections (b-1), (c), (e), (f),
and (h), money in the fund may not be appropriated for any purpose.
(b-1) Notwithstanding the limitations and requirements of
Section 403.1068, the legislature may appropriate money in the
fund, including the corpus and available earnings of the fund
determined under Section 403.1068, to pay the principal of or
interest on a bond issued for the purposes of Section 67, Article
III, Texas Constitution. This subsection does not authorize the
appropriation under this subsection of money subject to a
limitation or requirement as described by Subsection (e) that is
not consistent with the use of the money in accordance with this
subsection.
SECTION 36.04. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 37. EMPLOYER ENROLLMENT FEE FOR PARTICIPATION IN CERTAIN
HEALTH BENEFIT PLANS
SECTION 37.01. Subchapter G, Chapter 1551, Insurance Code,
is amended by adding Section 1551.3076 to read as follows:
Sec. 1551.3076. EMPLOYER ENROLLMENT FEE. (a) The board of
trustees shall assess each employer whose employees participate in
the group benefits program an employer enrollment fee in an amount
not to exceed a percentage of the employer's total payroll, as
determined by the General Appropriations Act.
(b) The board of trustees shall deposit the enrollment fees
to the credit of the employees life, accident, and health insurance
and benefits fund to be used for the purposes specified by Section
1551.401.
ARTICLE 38. FISCAL MATTERS CONCERNING SURPLUS AND SALVAGE PROPERTY
SECTION 38.01. Subchapter C, Chapter 2175, Government Code,
is repealed.
SECTION 38.02. Subsection (a), Section 32.102, Education
Code, is amended to read as follows:
(a) As provided by this subchapter, a school district or
open-enrollment charter school may transfer to a student enrolled
in the district or school:
(1) any data processing equipment donated to the
district or school, including equipment donated by:
(A) a private donor; or
(B) a state eleemosynary institution or a state
agency under Section 2175.905 [2175.128], Government Code;
(2) any equipment purchased by the district or school,
to the extent consistent with Section 32.105; and
(3) any surplus or salvage equipment owned by the
district or school.
SECTION 38.03. Section 2175.002, Government Code, is
amended to read as follows:
Sec. 2175.002. ADMINISTRATION OF CHAPTER. The commission is
responsible for the disposal of surplus and salvage property of the
state. The commission's surplus and salvage property division shall
administer this chapter.
SECTION 38.04. Section 2175.065, Government Code, is
amended by amending Subsection (a) and adding Subsections (c) and
(d) to read as follows:
(a) The commission may authorize a state agency to dispose
of surplus or salvage property if the agency demonstrates to the
commission its ability to dispose of the property under this
chapter [Subchapters C and E] in a manner that results in cost
savings to the state, under commission rules adopted under this
chapter.
(c) If property is disposed of under this section, the
disposing state agency shall report the transaction to the
commission. The report must include a description of the property
disposed of, the reasons for disposal, the price paid for the
property disposed of, and the recipient of the property disposed
of.
(d) If the commission determines that a violation of a state
law or rule has occurred based on the report under Subsection (c),
the commission shall report the violation to the Legislative Budget
Board.
SECTION 38.05. The heading to Subchapter D, Chapter 2175,
Government Code, is amended to read as follows:
SUBCHAPTER D. DISPOSITION OF SURPLUS OR SALVAGE PROPERTY [BY
COMMISSION]
SECTION 38.06. Section 2175.181, Government Code, is
amended to read as follows:
Sec. 2175.181. APPLICABILITY. [(a) This subchapter applies
only to surplus and salvage property located in:
[(1) Travis County;
[(2) a county in which federal surplus property is
warehoused by the commission under Subchapter G; or
[(3) a county for which the commission determines that
it is cost-effective to follow the procedures created under this
subchapter and informs affected state agencies of that
determination.
[(b)] This subchapter applies [does not apply] to a state
agency delegated the authority to dispose of surplus or salvage
property under Section 2175.065.
SECTION 38.07. Section 2175.182, Government Code, is
amended to read as follows:
Sec. 2175.182. STATE AGENCY TRANSFER OF PROPERTY [TO
COMMISSION]. (a) A state agency that determines it has surplus or
salvage property shall inform the commission of that fact for the
purpose of determining the method of disposal of the property. [The
commission is responsible for the disposal of surplus or salvage
property under this subchapter.] The commission may take physical
possession of the property.
(b) Based on the condition of the property, the commission,
in conjunction with the state agency, shall determine whether the
property is:
(1) surplus property that should be offered for
transfer under Section 2175.184 or sold to the public; or
(2) salvage property.
(c) Following the determination in Subsection (b), the
[The] commission shall direct the state agency to inform the
comptroller's office of the property's kind, number, location,
condition, original cost or value, and date of acquisition.
SECTION 38.08. Section 2175.1825, Government Code, is
amended to read as follows:
Sec. 2175.1825. ADVERTISING ON COMPTROLLER WEBSITE. (a) Not
later than the second day after the date the comptroller receives
notice from a state agency [the commission] under Section
2175.182(c), the comptroller shall advertise the property's kind,
number, location, and condition on the comptroller's website.
(b) The comptroller shall provide the commission access to
all records in the state property accounting system related to
surplus and salvage property.
SECTION 38.09. Section 2175.183, Government Code, is
amended to read as follows:
Sec. 2175.183. COMMISSION NOTICE TO OTHER ENTITIES. The [On
taking responsibility for surplus property under this subchapter,
the] commission shall inform other state agencies, political
subdivisions, and assistance organizations of the comptroller's
website that lists surplus property that is available for sale.
SECTION 38.10. Section 2175.184, Government Code, is
amended to read as follows:
Sec. 2175.184. DIRECT TRANSFER. During the 10 business
days after the date the property is posted on the comptroller's
website, a state agency, political subdivision, or assistance
organization shall [may] coordinate with the commission for a
transfer of the property at a price established by the commission
[in cooperation with the transferring agency]. A transfer to a
state agency has priority over any other transfer during this
period.
SECTION 38.11. Subsection (a), Section 2175.186,
Government Code, is amended to read as follows:
(a) If a disposition of a state agency's surplus property is
not made under Section 2175.184, the commission shall sell the
property by competitive bid, auction, or direct sale to the public,
including a sale using an Internet auction site. The commission may
contract with a private vendor to assist with the sale of the
property.
SECTION 38.12. Section 2175.189, Government Code, is
amended to read as follows:
Sec. 2175.189. ADVERTISEMENT OF SALE. If the value of an
item or a lot of property to be sold is estimated to be more than
$25,000 [$5,000], the commission shall advertise the sale at least
once in at least one newspaper of general circulation in the
vicinity in which the property is located.
SECTION 38.13. Subsection (a), Section 2175.191,
Government Code, is amended to read as follows:
(a) Proceeds from the sale of surplus or salvage property,
less the cost of advertising the sale, the cost of selling the
surplus or salvage property, including the cost of auctioneer
services or assistance from a private vendor, and the amount of the
fee collected under Section 2175.188, shall be deposited to the
credit of the general revenue fund of the state treasury.
SECTION 38.14. Section 2175.302, Government Code, is
amended to read as follows:
Sec. 2175.302. EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS.
Except as provided by Section 2175.905(b) [2175.128(b)], this
chapter does not apply to the disposition of surplus or salvage
property by a state eleemosynary institution.
SECTION 38.15. Section 2175.904, Government Code, is
amended by amending Subsections (a) and (c) and adding Subsection
(d) to read as follows:
(a) The commission shall establish a program for the sale of
gambling equipment received from a municipality, from a
commissioners court under Section 263.152(a)(5), Local Government
Code, or from a state agency under this chapter.
(c) Proceeds from the sale of gambling equipment from a
municipality or commissioners court, less the costs of the sale,
including costs of advertising, storage, shipping, and auctioneer
or broker services, and the amount of the fee collected under
Section 2175.188 [2175.131], shall be divided according to an
agreement between the commission and the municipality or
commissioners court that provided the equipment for sale. The
agreement must provide that:
(1) not less than 50 percent of the net proceeds be
remitted to the commissioners court; and
(2) the remainder of the net proceeds retained by the
commission be deposited to the credit of the general revenue fund.
(d) Proceeds from the sale of gambling equipment from a
state agency, less the costs of the sale, including costs of
advertising, storage, shipping, and auctioneer or broker services,
and the amount of the fee collected under Section 2175.188, shall be
deposited to the credit of the general revenue fund of the state
treasury.
SECTION 38.16. Subchapter Z, Chapter 2175, Government Code,
is amended by adding Sections 2175.905 and 2175.906 to read as
follows:
Sec. 2175.905. DISPOSITION OF DATA PROCESSING EQUIPMENT.
(a) If a disposition of a state agency's surplus or salvage data
processing equipment is not made under Section 2175.184, the state
agency shall transfer the equipment to:
(1) a school district or open-enrollment charter
school in this state under Subchapter C, Chapter 32, Education
Code;
(2) an assistance organization specified by the school
district; or
(3) the Texas Department of Criminal Justice.
(b) If a disposition of the surplus or salvage data
processing equipment of a state eleemosynary institution or an
institution or agency of higher education is not made under other
law, the institution or agency shall transfer the equipment to:
(1) a school district or open-enrollment charter
school in this state under Subchapter C, Chapter 32, Education
Code;
(2) an assistance organization specified by the school
district; or
(3) the Texas Department of Criminal Justice.
(c) The state eleemosynary institution or institution or
agency of higher education or other state agency may not collect a
fee or other reimbursement from the district, the school, the
assistance organization, or the Texas Department of Criminal
Justice for the surplus or salvage data processing equipment
transferred under this section.
Sec. 2175.906. ABOLISHED AGENCIES. On abolition of a state
agency, in accordance with Chapter 325, the commission shall take
custody of all of the agency's property or other assets as surplus
property unless other law or the legislature designates another
appropriate governmental entity to take custody of the property or
assets.
ARTICLE 39. LAW ENFORCEMENT AND CUSTODIAL OFFICER SUPPLEMENTAL
RETIREMENT FUND
SECTION 39.01. Section 815.317, Government Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) The comptroller shall deposit fees collected under
Section 133.102(e)(7), Local Government Code, to the credit of the
law enforcement and custodial officer supplemental retirement
fund.
SECTION 39.02. Subsection (e), Section 133.102, Local
Government Code, is amended to read as follows:
(e) The comptroller shall allocate the court costs received
under this section to the following accounts and funds so that each
receives to the extent practicable, utilizing historical data as
applicable, the same amount of money the account or fund would have
received if the court costs for the accounts and funds had been
collected and reported separately, except that the account or fund
may not receive less than the following percentages:
(1) abused children's counseling0.0088 percent;
(2) crime stoppers assistance0.2581 percent;
(3) breath alcohol testing0.5507 percent;
(4) Bill Blackwood Law Enforcement Management
Institute2.1683 percent;
(5) law enforcement officers standards and
education5.0034 percent;
(6) comprehensive rehabilitation5.3218 percent;
(7) law enforcement and custodial officer
supplemental retirement fund [operator's and chauffeur's
license]11.1426 percent;
(8) criminal justice planning12.5537 percent;
(9) an account in the state treasury to be used only
for the establishment and operation of the Center for the Study and
Prevention of Juvenile Crime and Delinquency at Prairie View A&M
University1.2090 percent;
(10) compensation to victims of crime fund37.6338
percent;
(11) fugitive apprehension account12.0904 percent;
(12) judicial and court personnel training fund4.8362
percent;
(13) an account in the state treasury to be used for
the establishment and operation of the Correctional Management
Institute of Texas and Criminal Justice Center Account1.2090
percent; and
(14) fair defense account6.0143 percent.
SECTION 39.03. This article takes effect September 1, 2013.
ARTICLE 40. SALES AND USE TAX COLLECTION AND ALLOCATION
SECTION 40.01. Subsection (b), Section 151.008, Tax Code,
is amended to read as follows:
(b) "Seller" and "retailer" include:
(1) a person in the business of making sales at auction
of tangible personal property owned by the person or by another;
(2) a person who makes more than two sales of taxable
items during a 12-month period, including sales made in the
capacity of an assignee for the benefit of creditors or receiver or
trustee in bankruptcy;
(3) a person regarded by the comptroller as a seller or
retailer under Section 151.024 [of this code];
(4) a hotel, motel, or owner or lessor of an office or
residential building or development that contracts and pays for
telecommunications services for resale to guests or tenants; [and]
(5) a person who engages in regular or systematic
solicitation of sales of taxable items in this state by the
distribution of catalogs, periodicals, advertising flyers, or
other advertising, by means of print, radio, or television media,
or by mail, telegraphy, telephone, computer data base, cable,
optic, microwave, or other communication system for the purpose of
effecting sales of taxable items; and
(6) a person who, under an agreement with another
person, is:
(A) entrusted with possession of tangible
personal property with respect to which the other person has title
or another ownership interest; and
(B) authorized to sell, lease, or rent the
property without additional action by the person having title to or
another ownership interest in the property.
SECTION 40.02. Section 151.107, Tax Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) For the purpose of this subchapter and in relation to
the use tax, a retailer is engaged in business in this state if the
retailer:
(1) maintains, occupies, or uses in this state
permanently, temporarily, directly, or indirectly or through a
subsidiary or agent by whatever name, an office, [place of]
distribution center, sales or sample room or place, warehouse,
storage place, or any other physical location where [place of]
business is conducted;
(2) has a representative, agent, salesman, canvasser,
or solicitor operating in this state under the authority of the
retailer or its subsidiary for the purpose of selling or delivering
or the taking of orders for a taxable item;
(3) derives receipts [rentals] from the sale, [a]
lease, or rental of tangible personal property situated in this
state;
(4) engages in regular or systematic solicitation of
sales of taxable items in this state by the distribution of
catalogs, periodicals, advertising flyers, or other advertising,
by means of print, radio, or television media, or by mail,
telegraphy, telephone, computer data base, cable, optic,
microwave, or other communication system for the purpose of
effecting sales of taxable items;
(5) solicits orders for taxable items by mail or
through other media and under federal law is subject to or permitted
to be made subject to the jurisdiction of this state for purposes of
collecting the taxes imposed by this chapter;
(6) has a franchisee or licensee operating under its
trade name if the franchisee or licensee is required to collect the
tax under this section; [or]
(7) holds a substantial ownership interest in, or is
owned in whole or substantial part by, a person who maintains a
location in this state from which business is conducted and if:
(A) the retailer sells the same or a
substantially similar line of products as the person with the
location in this state and sells those products under a business
name that is the same as or substantially similar to the business
name of the person with the location in this state; or
(B) the facilities or employees of the person
with the location in this state are used to:
(i) advertise, promote, or facilitate sales
by the retailer to consumers; or
(ii) perform any other activity on behalf
of the retailer that is intended to establish or maintain a
marketplace for the retailer in this state, including receiving or
exchanging returned merchandise;
(8) holds a substantial ownership interest in, or is
owned in whole or substantial part by, a person that:
(A) maintains a distribution center, warehouse,
or similar location in this state; and
(B) delivers property sold by the retailer to
consumers; or
(9) otherwise does business in this state.
(d) In this section:
(1) "Ownership" includes:
(A) direct ownership;
(B) common ownership; and
(C) indirect ownership through a parent entity,
subsidiary, or affiliate.
(2) "Substantial" means, with respect to an ownership
interest, an interest in an entity that is:
(A) if the entity is a corporation, at least 50
percent, directly or indirectly, of:
(i) the total combined voting power of all
classes of stock of the corporation; or
(ii) the beneficial ownership interest in
the voting stock of the corporation;
(B) if the entity is a trust, at least 50 percent,
directly or indirectly, of the current beneficial interest in the
trust corpus or income;
(C) if the entity is a limited liability company,
at least 50 percent, directly or indirectly, of:
(i) the total membership interest of the
limited liability company; or
(ii) the beneficial ownership interest in
the membership interest of the limited liability company; or
(D) for any entity, including a partnership or
association, at least 50 percent, directly or indirectly, of the
capital or profits interest in the entity.
SECTION 40.03. Subchapter M, Chapter 151, Tax Code, is
amended by adding Section 151.802 to read as follows:
Sec. 151.802. ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX
RELIEF FUND. (a) This section applies only:
(1) during the state fiscal years beginning September
1 of 2012, 2013, 2014, 2015, and 2016; and
(2) with respect to unused franchise tax credits
described by Sections 18(e) and (f), Chapter 1 (H.B. 3), Acts of the
79th Legislature, 3rd Called Session, 2006.
(b) Notwithstanding Section 151.801, the comptroller shall
deposit to the credit of the property tax relief fund under Section
403.109, Government Code, an amount of the proceeds from the
collection of the taxes imposed by this chapter equal to the amount
of revenue the state does not receive from the tax imposed under
Chapter 171 because taxable entities, as defined by that chapter,
that are corporations are entitled to claim unused franchise tax
credits after December 31, 2012, and during that state fiscal year.
(c) This section expires September 1, 2017.
SECTION 40.04. The change in law made by this article does
not affect tax liability accruing before the effective date of this
article. That liability continues in effect as if this article had
not been enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 40.05. This article takes effect January 1, 2012.
ARTICLE 41. CARRYFORWARD OF CERTAIN FRANCHISE TAX CREDITS
SECTION 41.01. Subsections (e) and (f), Section 18, Chapter
1 (H.B. 3), Acts of the 79th Legislature, 3rd Called Session, 2006,
are amended to read as follows:
(e) A corporation that has any unused credits established
before the effective date of this Act under Subchapter P, Chapter
171, Tax Code, may claim those unused credits on or with the tax
report for the period in which the credit was established. However,
if the corporation was allowed to carry forward unused credits
under that subchapter, the corporation may continue to apply those
credits on or with each consecutive report until the earlier of the
date the credit would have expired under the terms of Subchapter P,
Chapter 171, Tax Code, had it continued in existence, or December
31, 2016 [2012], and the former law under which the corporation
established the credits is continued in effect for purposes of
determining the amount of the credits the corporation may claim and
the manner in which the corporation may claim the credits.
(f) A corporation that has any unused credits established
before the effective date of this Act under Subchapter Q, Chapter
171, Tax Code, may claim those unused credits on or with the tax
report for the period in which the credit was established. However,
if the corporation was allowed to carry forward unused credits
under that subchapter, the corporation may continue to apply those
credits on or with each consecutive report until the earlier of the
date the credit would have expired under the terms of Subchapter Q,
Chapter 171, Tax Code, had it continued in existence, or December
31, 2016 [2012], and the former law under which the corporation
established the credits is continued in effect for purposes of
determining the amount of the credits the corporation may claim and
the manner in which the corporation may claim the credits.
ARTICLE 42. STATE PURCHASING
SECTION 42.01. Section 2155.082, Government Code, is
amended to read as follows:
Sec. 2155.082. PROVIDING CERTAIN PURCHASING SERVICES ON
FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT FUNDING. (a) The
comptroller [commission] may provide open market purchasing
services on a fee-for-service basis for state agency purchases that
are delegated to an agency under Section 2155.131, 2155.132,
[2155.133,] or 2157.121 or that are exempted from the purchasing
authority of the comptroller [commission]. The comptroller
[commission] shall set the fees in an amount that recovers the
comptroller's [commission's] costs in providing the services.
(b) The comptroller [commission] shall publish a schedule
of [its] fees for services that are subject to this section. The
schedule must include the comptroller's [commission's] fees for:
(1) reviewing bid and contract documents for clarity,
completeness, and compliance with laws and rules;
(2) developing and transmitting invitations to bid;
(3) receiving and tabulating bids;
(4) evaluating and determining which bidder offers the
best value to the state;
(5) creating and transmitting purchase orders; and
(6) participating in agencies' request for proposal
processes.
(c) If the state agency on behalf of which the procurement
is to be made agrees, the comptroller may engage a consultant to
assist with a particular procurement on behalf of a state agency and
pay the consultant from the cost savings realized by the state
agency.
ARTICLE 43. PERIOD FOR SALES AND USE TAX HOLIDAY
SECTION 43.01. Subsection (a), Section 151.326, Tax Code,
is amended to read as follows:
(a) The sale of an article of clothing or footwear designed
to be worn on or about the human body is exempted from the taxes
imposed by this chapter if:
(1) the sales price of the article is less than $100;
and
(2) the sale takes place during a period beginning at
12:01 a.m. on the [third] Friday before the eighth day preceding the
earliest date on which any school district, other than a district
operating a year-round system, may begin instruction for the school
year as prescribed by Section 25.0811(a), Education Code, [in
August] and ending at 12 midnight on the following Sunday.
SECTION 43.02. Subsection (a), Section 151.326, Tax Code,
as amended by this article, does not affect tax liability accruing
before the effective date of this article. That liability
continues in effect as if this article had not been enacted, and the
former law is continued in effect for the collection of taxes due
and for civil and criminal enforcement of the liability for those
taxes.
SECTION 43.03. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 44. LEGISLATIVE BUDGET BOARD MEETINGS
SECTION 44.01. Section 322.003, Government Code, is amended
by adding Subsection (f) to read as follows:
(f) The board shall hold a public hearing each state fiscal
year to receive a report from the comptroller and receive invited
testimony regarding the financial condition of this state. The
report from the comptroller shall include, to the extent
practicable:
(1) information on each revenue source included in
determining the estimate of anticipated revenue for purposes of the
most recent statement required by Section 49a, Article III, Texas
Constitution, and the total net revenue actually collected from
that source for the state fiscal year as of the end of the most
recent state fiscal quarter;
(2) a comparison for the period described by
Subdivision (1) of the total net revenue collected from each
revenue source required to be specified under that subdivision with
the anticipated revenue from that source that was included for
purposes of determining the estimate of anticipated revenue in the
statement required by Section 49a, Article III, Texas Constitution;
(3) information on state revenue sources resulting
from a law taking effect after the comptroller submitted the most
recent statement required by Section 49a, Article III, Texas
Constitution, and the estimated total net revenue collected from
that source for the state fiscal year as of the end of the most
recent state fiscal quarter;
(4) a summary of the indicators of state economic
trends experienced since the most recent statement required by
Section 49a, Article III, Texas Constitution; and
(5) a summary of anticipated state economic trends and
the anticipated effect of the trends on state revenue collections.
SECTION 44.02. Chapter 322, Government Code, is amended by
adding Section 322.0081 to read as follows:
Sec. 322.0081. BUDGET DOCUMENTS ONLINE. (a) The board
shall post on the board's Internet website documents prepared by
the board that are provided to a committee, subcommittee, or
conference committee of either house of the legislature in
connection with an appropriations bill.
(b) The board shall post a document to which this section
applies as soon as practicable after the document is provided to a
committee, subcommittee, or conference committee.
(c) The document must be downloadable and provide data in a
format that allows the public to search, extract, organize, and
analyze the information in the document.
(d) The requirement under Subsection (a) does not supersede
any exceptions provided under Chapter 552.
(e) The board shall promulgate rules to implement the
provisions of this section.
SECTION 44.03. Chapter 322, Government Code, is amended by
adding Section 322.022 to read as follows:
Sec. 322.022. PUBLIC HEARING ON INTERIM BUDGET REDUCTION
REQUEST. (a) In this section:
(1) "Interim budget reduction request" means a request
communicated in any manner for a state agency to make adjustments to
the strategies, methods of finance, performance measures, or riders
applicable to the agency through the state budget in effect on the
date the request is communicated that, if implemented, would reduce
the agency's total expenditures for the current state fiscal
biennium to an amount less than the total amount that otherwise
would be permissible based on the appropriations made to the agency
in the budget.
(2) "State agency" means an office, department, board,
commission, institution, or other entity to which a legislative
appropriation is made.
(b) A state agency shall provide to the board a detailed
report of any expenditure reduction plan that:
(1) the agency develops in response to an interim
budget reduction request made by the governor, the lieutenant
governor, or a member of the legislature, or any combination of
those persons; and
(2) if implemented, would reduce the agency's total
expenditures for the current state fiscal biennium to an amount
less than the total amount that otherwise would be permissible
based on the appropriations made to the agency in the state budget
for the biennium.
(c) The board shall hold a public hearing to solicit
testimony on an expenditure reduction plan a state agency reports
to the board as required by Subsection (b) as soon as practicable
after receiving the report. The agency may not implement any
element of the plan until the conclusion of the hearing.
(d) This section does not apply to an expenditure reduction
a state agency desires to make that does not directly or indirectly
result from an interim budget reduction request made by the
governor, the lieutenant governor, or a member of the legislature,
or any combination of those persons.
SECTION 44.04. Subchapter B, Chapter 403, Government Code,
is amended by adding Section 403.0145 to read as follows:
Sec. 403.0145. PUBLICATION OF FEES SCHEDULE. As soon as
practicable after the end of each state fiscal year, the
comptroller shall publish online a schedule of all revenue to the
state from fees authorized by statute. For each fee, the schedule
must specify:
(1) the statutory authority for the fee;
(2) if the fee has been increased during the most
recent legislative session, the amount of the increase;
(3) into which fund the fee revenue will be deposited;
and
(4) the amount of the fee revenue that will be
considered available for general governmental purposes and
accordingly considered available for the purpose of certification
under Section 403.121.
SECTION 44.05. Section 404.124, Government Code, is amended
by amending Subsections (a) and (b) and adding Subsection (b-1) to
read as follows:
(a) Before issuing notes the comptroller shall submit to the
committee a general revenue cash flow shortfall forecast, based on
the comptroller's most recent anticipated revenue estimate. The
forecast must contain a detailed report of estimated revenues and
expenditures for each month and each major revenue and expenditure
category and must demonstrate the maximum general revenue cash flow
shortfall that may be predicted. The committee shall hold a public
hearing to receive invited testimony on the forecast, including
testimony on this state's overall economic condition, as soon as
practicable after receiving the forecast.
(b) Based on the forecast and testimony provided at the
hearing required by Subsection (a), the committee may approve the
issuance of notes, subject to Subsections (b-1) and (c), and the
maximum outstanding balance of notes in any fiscal year. The
outstanding balance may not exceed the maximum temporary cash
shortfall forecast by the comptroller for any period in the fiscal
year. The comptroller may not issue notes in excess of the amount
approved.
(b-1) The committee's approval of the issuance of notes
granted under Subsection (b) expires on the 91st day after the date
the hearing conducted under Subsection (a) concludes. The
comptroller may not issue notes on or after the 91st day unless the
comptroller submits another general revenue cash flow shortfall
forecast to the committee and the committee subsequently grants
approval for the issuance of the notes in accordance with the
procedure required by Subsections (a) and (b). Each subsequent
approval expires on the 61st day after the date the hearing on which
the approval was based concludes.
ARTICLE 45. ECONOMIC AND WORKFORCE DEVELOPMENT PROGRAMS
SECTION 45.01. Section 481.078, Government Code, is amended
by adding Subsection (m) to read as follows:
(m) Notwithstanding Subsections (e) and (e-1), during the
state fiscal biennium that begins on September 1, 2011, the
governor may transfer money from the fund to the Texas Workforce
Commission to fund the Texas Back to Work Program established under
Chapter 313, Labor Code. This subsection expires September 1,
2013.
SECTION 45.02. Subtitle B, Title 4, Labor Code, is amended
by adding Chapter 313 to read as follows:
CHAPTER 313. TEXAS BACK TO WORK PROGRAM
Sec. 313.001. DEFINITION. In this chapter, "qualified
applicant" means a person who made less than $40 per hour at the
person's last employment before becoming unemployed.
Sec. 313.002. INITIATIVE ESTABLISHED. (a) The Texas Back
to Work Program is established within the commission.
(b) The purpose of the program is to establish
public-private partnerships with employers to transition residents
of this state from receiving unemployment compensation to becoming
employed as members of the workforce.
(c) An employer that participates in the initiative may
receive a wage subsidy for hiring one or more qualified applicants
who are unemployed at the time of hire.
Sec. 313.003. RULES. The commission may adopt rules as
necessary to implement this chapter.
ARTICLE 46. ELIGIBILITY OF SURVIVING SPOUSE OF DISABLED VETERAN TO
PAY AD VALOREM TAXES ON RESIDENCE HOMESTEAD IN INSTALLMENTS
SECTION 46.01. Section 31.031, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) This section applies only to:
(1) [If before the delinquency date] an individual who
is:
(A) disabled or at least 65 years of age; and
(B) [is] qualified for an exemption under Section
11.13(c); or
(2) an individual who is:
(A) the unmarried surviving spouse of a disabled
veteran; and
(B) qualified for an exemption under Section
11.22.
(a-1) If before the delinquency date an individual to whom
this section applies pays at least one-fourth of a taxing unit's
taxes imposed on property that the person owns and occupies as a
residence homestead, accompanied by notice to the taxing unit that
the person will pay the remaining taxes in installments, the person
may pay the remaining taxes without penalty or interest in three
equal installments. The first installment must be paid before
April 1, the second installment before June 1, and the third
installment before August 1.
SECTION 46.02. This article applies only to an ad valorem
tax year that begins on or after the effective date of this article.
SECTION 46.03. This article takes effect January 1, 2012.
ARTICLE 47. EXTENSION OF FRANCHISE TAX EXEMPTION
SECTION 47.01. Subsection (c), Section 1, Chapter 286 (H.B.
4765), Acts of the 81st Legislature, Regular Session, 2009, is
amended to read as follows:
(c) This [If this section takes effect, this] section
expires December 31, 2013 [2011].
SECTION 47.02. Subsection (b), Section 2, Chapter 286 (H.B.
4765), Acts of the 81st Legislature, Regular Session, 2009, is
amended to read as follows:
(b) This section takes effect January 1, 2014 [2012, if H.B.
No. 2154, Acts of the 81st Legislature, Regular Session, 2009,
amends Section 155.0211, Tax Code, in a manner that results in an
increase in the revenue from the tax under that section during the
state fiscal biennium beginning September 1, 2009, that is
attributable to that change, and that Act is enacted and becomes
law. If H.B. No. 2154, Acts of the 81st Legislature, Regular
Session, 2009, does not amend Section 155.0211, Tax Code, in that
manner or is not enacted or does not become low, this section takes
effect January 1, 2010].
SECTION 47.03. Subsection (b), Section 3, Chapter 286 (H.B.
4765), Acts of the 81st Legislature, Regular Session, 2009, is
amended to read as follows:
(b) This section takes effect January 1, 2014 [2012, if H.B.
No. 2154, Acts of the 81st Legislature, Regular Session, 2009,
amends Section 155.0211, Tax Code, in a manner that results in an
increase in the revenue from the tax under that section during the
state fiscal biennium beginning September 1, 2009, that is
attributable to that change, and that Act is enacted and becomes
law. If H.B. No. 2154, Acts of the 81st Legislature, Regular
Session, 2009, does not amend Section 155.0211, Tax Code, in that
manner or is not enacted or does not become low, this section takes
effect January 1, 2010].
SECTION 47.04. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
this article to have immediate effect, this article takes effect on
the 91st day after the last day of the legislative session.
ARTICLE 48. FISCAL MATTERS REGARDING ASSISTANT PROSECUTORS
SECTION 48.01. Subsection (f), Section 41.255, Government
Code, is amended to read as follows:
(f) A county is not required to pay longevity supplements if
the county does not receive funds from the comptroller as provided
by Subsection (d). If sufficient funds are not available to meet
the requests made by counties for funds for payment of assistant
prosecutors qualified for longevity supplements:
(1) [,] the comptroller shall apportion the available
funds to the eligible counties by reducing the amount payable to
each county on an equal percentage basis;
(2) a county is not entitled to receive the balance of
the funds at a later date; and
(3) the longevity pay program under this chapter is
suspended to the extent of the insufficiency. [A county that
receives from the comptroller an amount less than the amount
certified by the county to the comptroller under Subsection (d)
shall apportion the funds received by reducing the amount payable
to eligible assistant prosecutors on an equal percentage basis, but
is not required to use county funds to make up any difference
between the amount certified and the amount received.]
SECTION 48.02. Subsection (g), Section 41.255, Government
Code, is repealed.
ARTICLE 49. FISCAL MATTERS REGARDING PROCESS SERVERS
SECTION 49.01. Subchapter B, Chapter 72, Government Code,
is amended by adding Sections 72.013 and 72.014 to read as follows:
Sec. 72.013. PROCESS SERVER REVIEW BOARD. A person
appointed to the process server review board established by supreme
court order serves without compensation but is entitled to
reimbursement for actual and necessary expenses incurred in
traveling and performing official board duties.
Sec. 72.014. CERTIFICATION DIVISION. The office shall
establish a certification division to oversee the regulatory
programs assigned to the office by law or by the supreme court.
ARTICLE 50. FISCAL MATTERS REGARDING REIMBURSEMENT OF JURORS
SECTION 50.01. Section 61.001, Government Code, is amended
by adding Subsections (a-1) and (a-2) to read as follows:
(a-1) Notwithstanding Subsection (a), and except as
provided by Subsection (c), during the state fiscal biennium
beginning September 1, 2011, a person who reports for jury service
in response to the process of a court is entitled to receive as
reimbursement for travel and other expenses an amount:
(1) not less than $6 for the first day or fraction of
the first day the person is in attendance in court in response to
the process and discharges the person's duty for that day; and
(2) not less than the amount provided in the General
Appropriations Act for each day or fraction of each day the person
is in attendance in court in response to the process after the first
day and discharges the person's duty for that day.
(a-2) This subsection and Subsection (a-1) expire September
1, 2013.
SECTION 50.02. Section 61.0015, Government Code, is amended
by adding Subsections (a-1), (a-2), and (e-1) to read as follows:
(a-1) Notwithstanding Subsection (a), during the state
fiscal biennium beginning September 1, 2011, the state shall
reimburse a county the appropriate amount as provided in the
General Appropriations Act for the reimbursement paid under Section
61.001 to a person who reports for jury service in response to the
process of a court for each day or fraction of each day after the
first day in attendance in court in response to the process.
(a-2) This subsection and Subsections (a-1) and (e-1)
expire September 1, 2013.
(e-1) Notwithstanding Subsection (e), during the state
fiscal biennium beginning September 1, 2011, if a payment on a
county's claim for reimbursement is reduced under Subsection (d),
or if a county fails to file the claim for reimbursement in a timely
manner, the comptroller may, as provided by rule, apportion the
payment of the balance owed the county. The comptroller's rules may
permit a different rate of reimbursement for each quarterly payment
under Subsection (c).
ARTICLE 51. COLLECTION IMPROVEMENT PROGRAM
SECTION 51.01. Subsections (f), (h), (i), and (j), Article
103.0033, 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 51.02. Subsection (e), Section 133.058, 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 51.03. Subsection (c-1), Section 133.103, 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.
ARTICLE 52. CORRECTIONAL MANAGED HEALTH CARE
SECTION 52.01. Subsection (a), Section 501.133, Government
Code, is amended to read as follows:
(a) The committee consists of five voting [nine] members and
one nonvoting member [appointed] as follows:
(1) one member [two members] employed full-time by the
department, [at least one of whom is a physician,] appointed by the
executive director;
(2) one member who is a physician and [two members]
employed full-time by The University of Texas Medical Branch at
Galveston, [at least one of whom is a physician,] appointed by the
president of the medical branch;
(3) one member who is a physician and [two members]
employed full-time by the Texas Tech University Health Sciences
Center, [at least one of whom is a physician,] appointed by the
president of the university; [and]
(4) two [three] public members appointed by the
governor who are not affiliated with the department or with any
entity with which the committee has contracted to provide health
care services under this chapter, at least one [two] of whom is
[are] licensed to practice medicine in this state; and
(5) the state Medicaid director, to serve ex officio
as a nonvoting member.
SECTION 52.02. Subsection (b), Section 501.135, Government
Code, is amended to read as follows:
(b) A person may not be an appointed [a] member of the
committee and may not be a committee employee employed in a "bona
fide executive, administrative, or professional capacity," as that
phrase is used for purposes of establishing an exemption to the
overtime provisions of the federal Fair Labor Standards Act of 1938
(29 U.S.C. Section 201 et seq.) and its subsequent amendments if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of health care
or health care services; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of health care
or health care services.
SECTION 52.03. Section 501.136, Government Code, is amended
to read as follows:
Sec. 501.136. TERMS OF OFFICE FOR PUBLIC MEMBERS.
Committee members appointed by the governor serve staggered
four-year [six-year] terms, with the term of one of those members
expiring on February 1 of each odd-numbered year. Other committee
members serve at the will of the appointing official or until
termination of the member's employment with the entity the member
represents.
SECTION 52.04. Section 501.147, Government Code, is amended
to read as follows:
Sec. 501.147. DEPARTMENT [COMMITTEE] AUTHORITY TO
CONTRACT. (a) The department [committee] may enter into a contract
[on behalf of the department] to fully implement the managed health
care plan under this subchapter. A contract entered into under this
subsection must include provisions necessary to ensure that The
University of Texas Medical Branch at Galveston is eligible for and
makes reasonable efforts to participate in the purchase of
prescription drugs under Section 340B, Public Health Service Act
(42 U.S.C. Section 256b).
(b) The department [committee] may[, in addition to
providing services to the department,] contract with other
governmental entities for similar health care services and
integrate those services into the managed health care provider
network.
(c) In contracting for implementation of the managed health
care plan, the department [committee], to the extent possible,
shall integrate the managed health care provider network with the
public medical schools of this state and the component and
affiliated hospitals of those medical schools. The contract must
authorize The University of Texas Medical Branch at Galveston to
contract directly with the Texas Tech University Health Sciences
Center for the provision of health care services. The Texas Tech
University Health Sciences Center shall cooperate with The
University of Texas Medical Branch at Galveston in its efforts to
participate in the purchase of prescription drugs under Section
340B, Public Health Service Act (42 U.S.C. Section 256b).
(d) For services that the public medical schools and their
components and affiliates cannot provide, the department
[committee] shall initiate a competitive bidding process for
contracts with other providers for medical care to persons confined
by the department.
(e) The department, in cooperation with the committee, may
contract with an individual or firm for a biennial review of, and
report concerning, expenditures under the managed health care plan.
The review must be conducted by an individual or firm experienced in
auditing the state's Medicaid expenditures and other medical
expenditures. Not later than September 1 of each even-numbered
year, the department shall submit a copy of a report under this
section to the health care providers that are part of the managed
health care provider network established under this subchapter, the
Legislative Budget Board, the governor, the lieutenant governor,
and the speaker of the house of representatives.
SECTION 52.05. Subsection (a), Section 501.148, Government
Code, is amended to read as follows:
(a) The committee may [shall]:
(1) develop statewide policies for the delivery of
correctional health care;
(2) [maintain contracts for health care services in
consultation with the department and the health care providers;
[(3)] communicate with the department and the
legislature regarding the financial needs of the correctional
health care system;
(3) in conjunction with the department,
[(4) allocate funding made available through legislative
appropriations for correctional health care;
[(5)] monitor the expenditures of The University of
Texas Medical Branch at Galveston and the Texas Tech University
Health Sciences Center to ensure that those expenditures comply
with applicable statutory and contractual requirements;
(4) [(6)] serve as a dispute resolution forum in the
event of a disagreement relating to inmate health care services
between:
(A) the department and the health care providers;
or
(B) The University of Texas Medical Branch at
Galveston and the Texas Tech University Health Sciences Center;
(5) [(7)] address problems found through monitoring
activities by the department and health care providers, including
requiring corrective action if care does not meet expectations as
determined by those monitoring activities;
(6) [(8)] identify and address long-term needs of the
correctional health care system; and
(7) [(9)] report to the Texas Board of Criminal
Justice at the board's regularly scheduled meeting each quarter on
the committee's policy recommendations [decisions], the financial
status of the correctional health care system, and corrective
actions taken by or required of the department or the health care
providers.
SECTION 52.06. (a) The Correctional Managed Health Care
Committee established under Section 501.133, Government Code, as
that section existed before amendment by this article, is abolished
effective November 30, 2011.
(b) An appointing official under Section 501.133,
Government Code, shall appoint the members of the Correctional
Managed Health Care Committee under Section 501.133, Government
Code, as amended by this Act, not later than November 30, 2011. The
governor shall appoint one public member to serve a term that
expires February 1, 2013, and one public member to serve a term that
expires February 1, 2015.
(c) The term of a person who is serving as a member of the
Correctional Managed Health Care Committee immediately before the
abolition of that committee under Subsection (a) of this section
expires on November 30, 2011. Such a person is eligible for
appointment by an appointing official to the new committee under
Section 501.133, Government Code, as amended by this article.
ARTICLE 53. GENERAL HOUSING MATTERS
SECTION 53.01. Section 481.078, Government Code, is amended
by amending Subsection (c) and adding Subsection (d-1) to read as
follows:
(c) Except as provided by Subsections [Subsection] (d) and
(d-1), the fund may be used only for economic development,
infrastructure development, community development, job training
programs, and business incentives.
(d-1) The fund may be used for the Texas homeless housing
and services program administered by the Texas Department of
Housing and Community Affairs. Subsections (e-1), (f), (g), (h),
(i), and (j) and Section 481.080 do not apply to a grant awarded for
a purpose specified by this subsection.
SECTION 53.02. Section 481.079, Government Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) For grants awarded for a purpose specified by Section
481.078(d-1), the report must include only the amount and purpose
of each grant.
SECTION 53.03. Subchapter K, Chapter 2306, Government Code,
is amended by adding Section 2306.2585 to read as follows:
Sec. 2306.2585. HOMELESS HOUSING AND SERVICES PROGRAM. (a)
The department may administer a homeless housing and services
program in each municipality in this state with a population of
285,500 or more to:
(1) provide for the construction, development, or
procurement of housing for homeless persons; and
(2) provide local programs to prevent and eliminate
homelessness.
(b) The department may adopt rules to govern the
administration of the program, including rules that:
(1) provide for the allocation of any available
funding; and
(2) provide detailed guidelines as to the scope of the
local programs in the municipalities described by Subsection (a).
(c) The department may use any available revenue, including
legislative appropriations, and shall solicit and accept gifts and
grants for the purposes of this section. The department shall use
gifts and grants received for the purposes of this section before
using any other revenue.
SECTION 53.04. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this article takes effect on the 91st day after
the last day of the legislative session.
ARTICLE 54. UNIFORM GRANT AND CONTRACT MANAGEMENT
SECTION 54.01. Section 783.004, Government Code, is amended
to read as follows:
Sec. 783.004. OFFICE OF THE COMPTROLLER [GOVERNOR'S
OFFICE]. The office of the comptroller [governor's office] is the
state agency for uniform grant and contract management.
SECTION 54.02. Subsections (a) and (b), Section 783.005,
Government Code, are amended to read as follows:
(a) The comptroller [governor's office] shall develop
uniform and concise language for any assurances that a local
government is required to make to a state agency.
(b) The comptroller [governor's office] may:
(1) categorize assurances according to the type of
grant or contract;
(2) designate programs to which the assurances are
applicable; and
(3) revise the assurances.
SECTION 54.03. Section 783.006, Government Code, is amended
to read as follows:
Sec. 783.006. STANDARD FINANCIAL MANAGEMENT CONDITIONS.
(a) The comptroller [governor's office] shall compile and
distribute to each state agency an official compilation of standard
financial management conditions.
(b) The comptroller [governor's office] shall develop the
compilation from Federal Management Circular A-102 or from a
revision of that circular and from other applicable statutes and
regulations.
(c) The comptroller [governor's office] shall include in
the compilation official commentary regarding administrative or
judicial interpretations that affect the application of financial
management standards.
(d) The comptroller [governor's office] may:
(1) categorize the financial management conditions
according to the type of grant or contract;
(2) designate programs to which the conditions are
applicable; and
(3) revise the conditions.
SECTION 54.04. Subsection (d), Section 783.007, Government
Code, is amended to read as follows:
(d) The agency shall file a notice of each proposed rule
that establishes a variation from uniform assurances or standard
conditions with the comptroller [governor's office].
SECTION 54.05. Subsection (b), Section 783.008, Government
Code, is amended to read as follows:
(b) On receipt of a request for a single audit or audit
coordination, the comptroller [governor's office] in consultation
with the state auditor shall not later than the 30th day after the
date of the request designate a single state agency to coordinate
state audits of the local government.
ARTICLE 55. FRANCHISE TAX APPLICABILITY AND EXCLUSIONS
SECTION 55.01. Section 171.0001, Tax Code, is amended by
adding Subdivisions (1-a), (10-a), (10-b), and (11-b) to read as
follows:
(1-a) "Artist" means a natural person or an entity that
contracts to perform or entertain at a live entertainment event.
(10-a) "Live entertainment event" means an event that
occurs on a specific date to which tickets are sold in advance by a
third-party vendor and at which:
(A) a natural person or a group of natural
persons, physically present at the venue, performs for the purpose
of entertaining a ticket holder who is present at the event;
(B) a traveling circus or animal show performs
for the purpose of entertaining a ticket holder who is present at
the event; or
(C) a historical, museum-quality artifact is on
display in an exhibition.
(10-b) "Live event promotion services" means services
related to the promotion, coordination, operation, or management of
a live entertainment event. The term includes services related to:
(A) the provision of staff for the live
entertainment event; or
(B) the scheduling and promotion of an artist
performing or entertaining at the live entertainment event.
(11-b) "Qualified live event promotion company" means
a taxable entity that:
(A) receives at least 60 percent of the entity's
annual total revenue from the provision or arrangement for the
provision of three or more live event promotion services;
(B) maintains a permanent nonresidential office
from which the live event promotion services are provided or
arranged;
(C) employs 10 or more full-time employees during
all or part of the period for which taxable margin is calculated;
(D) does not provide services for a wedding or
carnival; and
(E) is not a movie theater.
SECTION 55.02. Subsection (c), Section 171.0002, Tax Code,
is amended to read as follows:
(c) "Taxable entity" does not include an entity that is:
(1) a grantor trust as defined by Sections 671 and
7701(a)(30)(E), Internal Revenue Code, all of the grantors and
beneficiaries of which are natural persons or charitable entities
as described in Section 501(c)(3), Internal Revenue Code, excluding
a trust taxable as a business entity pursuant to Treasury
Regulation Section 301.7701-4(b);
(2) an estate of a natural person as defined by Section
7701(a)(30)(D), Internal Revenue Code, excluding an estate taxable
as a business entity pursuant to Treasury Regulation Section
301.7701-4(b);
(3) an escrow;
(4) a real estate investment trust (REIT) as defined
by Section 856, Internal Revenue Code, and its "qualified REIT
subsidiary" entities as defined by Section 856(i)(2), Internal
Revenue Code, provided that:
(A) a REIT with any amount of its assets in direct
holdings of real estate, other than real estate it occupies for
business purposes, as opposed to holding interests in limited
partnerships or other entities that directly hold the real estate,
is a taxable entity; and
(B) a limited partnership or other entity that
directly holds the real estate as described in Paragraph (A) is not
exempt under this subdivision, without regard to whether a REIT
holds an interest in it;
(5) a real estate mortgage investment conduit (REMIC),
as defined by Section 860D, Internal Revenue Code;
(6) a nonprofit self-insurance trust created under
Chapter 2212, Insurance Code, or a predecessor statute;
(7) a trust qualified under Section 401(a), Internal
Revenue Code; [or]
(8) a trust or other entity that is exempt under
Section 501(c)(9), Internal Revenue Code; or
(9) an unincorporated entity organized as a political
committee under the Election Code or the provisions of the Federal
Election Campaign Act of 1971 (2 U.S.C. Section 431 et seq.).
SECTION 55.03. Section 171.1011, Tax Code, is amended by
adding Subsections (g-5) and (g-7) to read as follows:
(g-5) A taxable entity that is a qualified live event
promotion company shall exclude from its total revenue, to the
extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3), a
payment made to an artist in connection with the provision of a live
entertainment event or live event promotion services.
(g-7) A taxable entity that is a qualified courier and
logistics company shall exclude from its total revenue, to the
extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3),
subcontracting payments made by the taxable entity to nonemployee
agents for the performance of delivery services on behalf of the
taxable entity. For purposes of this subsection, "qualified
courier and logistics company" means a taxable entity that:
(1) receives at least 80 percent of the taxable
entity's annual total revenue from its entire business from a
combination of at least two of the following courier and logistics
services:
(A) expedited same-day delivery of an envelope,
package, parcel, roll of architectural drawings, box, or pallet;
(B) temporary storage and delivery of the
property of another entity, including an envelope, package, parcel,
roll of architectural drawings, box, or pallet; and
(C) brokerage of same-day or expedited courier
and logistics services to be completed by a person or entity under a
contract that includes a contractual obligation by the taxable
entity to make payments to the person or entity for those services;
(2) during the period on which margin is based, is
registered as a motor carrier under Chapter 643, Transportation
Code, and if the taxable entity operates on an interstate basis, is
registered as a motor carrier or broker under the unified carrier
registration system, as defined by Section 643.001, Transportation
Code, during that period;
(3) maintains an automobile liability insurance
policy covering individuals operating vehicles owned, hired, or
otherwise used in the taxable entity's business, with a combined
single limit for each occurrence of at least $1 million;
(4) maintains at least $25,000 of cargo insurance;
(5) maintains a permanent nonresidential office from
which the courier and logistics services are provided or arranged;
(6) has at least five full-time employees during the
period on which margin is based;
(7) is not doing business as a livery service, floral
delivery service, motor coach service, taxicab service, building
supply delivery service, water supply service, fuel or energy
supply service, restaurant supply service, commercial moving and
storage company, or overnight delivery service; and
(8) is not delivering items that the taxable entity or
an affiliated entity sold.
SECTION 55.04. This article applies only to a report
originally due on or after January 1, 2012.
SECTION 55.05. This article takes effect January 1, 2012.
ARTICLE 56. ENTERPRISE AND EMERGING TECHNOLOGY FUNDS
SECTION 56.01. Section 481.078, Government Code, is amended
by amending Subsections (e) and (j) and adding Subsections (f-1),
(f-2), and (h-1) to read as follows:
(e) The administration of the fund is considered to be a
trusteed program within the office of the governor. The governor
may negotiate on behalf of the state regarding awarding, by grant,
money appropriated from the fund. The governor may award money
appropriated from the fund only with the [express written] prior
approval of the lieutenant governor and speaker of the house of
representatives. For purposes of this subsection, an award of
money appropriated from the fund is considered disapproved by the
lieutenant governor or speaker of the house of representatives if
that officer does not approve the proposal to award the grant before
the 91st day after the date of receipt of the proposal from the
governor. The lieutenant governor or the speaker of the house of
representatives may extend the review deadline applicable to that
officer for an additional 14 days by submitting a written notice to
that effect to the governor before the expiration of the initial
review period.
(f-1) A grant agreement must contain a provision:
(1) requiring the creation of a minimum number of jobs
in this state; and
(2) specifying the date by which the recipient intends
to create those jobs.
(f-2) A grant agreement must contain a provision providing
that if the recipient does not meet job creation performance
targets as of the dates specified in the agreement, the recipient
shall repay the grant in accordance with Subsection (j).
(h-1) At least 14 days before the date the governor intends
to amend a grant agreement, the governor shall notify and provide a
copy of the proposed amendment to the speaker of the house of
representatives and the lieutenant governor.
(j) Repayment of a grant under Subsection (f)(1)(A) shall
[may] be prorated to reflect a partial attainment of job creation
performance targets, and may be prorated for a partial attainment
of other performance targets.
SECTION 56.02. Subsections (a) and (b), Section 490.005,
Government Code, are amended to read as follows:
(a) Not later than January 31 [1] of each year, the governor
shall submit to the lieutenant governor, the speaker of the house of
representatives, and the standing committee of each house of the
legislature with primary jurisdiction over economic development
matters and post on the office of the governor's Internet website a
report that includes the following information regarding awards
made under the fund during each [for the] preceding [three] state
fiscal year [years]:
(1) the total number and amount of awards made;
(2) the number and amount of awards made under
Subchapters D, E, and F;
(3) the aggregate total of private sector investment,
federal government funding, and contributions from other sources
obtained in connection with awards made under each of the
subchapters listed in Subdivision (2);
(4) the name of each award recipient and the amount of
the award made to the recipient; and
(5) a brief description of the equity position that
the governor, on behalf of the state, may take in companies
receiving awards and the names of the companies in which the state
has taken an equity position.
(b) The annual report must also contain:
(1) the total number of jobs actually created by each
project receiving funding under this chapter;
(2) an analysis of the number of jobs actually created
by each project receiving funding under this chapter; and
(3) a brief description regarding:
(A) the methodology used to determine the
information provided under Subdivisions (1) and (2), which may be
developed in consultation with the comptroller's office;
(B) [(1)] the intended outcomes of projects
funded under Subchapter D during each [the] preceding [two] state
fiscal year [years]; and
(C) [(2)] the actual outcomes of all projects
funded under Subchapter D during each preceding state fiscal year
[the fund's existence], including any financial impact on the state
resulting from a liquidity event involving a company whose project
was funded under that subchapter.
SECTION 56.03. Subchapter A, Chapter 490, Government Code,
is amended by adding Section 490.006 to read as follows:
Sec. 490.006. VALUATION OF INVESTMENTS; INCLUSION IN ANNUAL
REPORT. To the maximum extent practicable, the office of the
governor shall annually perform a valuation of the equity positions
taken by the governor, on behalf of the state, in companies
receiving awards under the fund and of other investments made by the
governor, on behalf of the state, in connection with an award under
the fund. The valuation must:
(1) be based on a methodology that:
(A) may be developed in consultation with the
comptroller's office; and
(B) is consistent with generally accepted
accounting principles; and
(2) be included with the annual report required under
Section 490.005.
SECTION 56.04. The heading to Section 490.052, Government
Code, is amended to read as follows:
Sec. 490.052. APPOINTMENT TO COMMITTEE [BY GOVERNOR];
NOMINATIONS.
SECTION 56.05. Section 490.052, Government Code, is amended
by amending Subsection (a) and adding Subsections (a-1) and (a-2)
to read as follows:
(a) The governor shall appoint to the committee 13
individuals nominated as provided by Subsection (b).
(a-1) The lieutenant governor shall appoint two individuals
to the committee.
(a-2) The speaker of the house of representatives shall
appoint two individuals to the committee.
SECTION 56.06. Subchapter B, Chapter 490, Government Code,
is amended by adding Section 490.0521 to read as follows:
Sec. 490.0521. FINANCIAL STATEMENT REQUIRED. (a) Each
member of the committee shall file with the office of the governor a
verified financial statement complying with Sections 572.022
through 572.0252 as is required of a state officer by Section
572.021.
(b) All information obtained and maintained pursuant to
Subsection (a), including information derived from the financial
statements, is confidential and is not subject to disclosure under
Chapter 552.
(c) The governor, on request or in the normal course of
official business, shall provide information that is confidential
under Subsection (b) to the state auditor's office.
(d) This section does not affect release of information for
legislative purposes pursuant to Section 552.008.
SECTION 56.07. Section 490.054, Government Code, is amended
to read as follows:
Sec. 490.054. TERMS. (a) Members of the committee
appointed by the governor serve staggered two-year terms, subject
to the pleasure of the governor.
(b) Members of the committee appointed by the lieutenant
governor or the speaker of the house of representatives serve
two-year terms.
SECTION 56.08. Section 490.056, Government Code, is amended
by adding Subsections (c), (d), and (e) to read as follows:
(c) Each entity recommended by the committee for an award of
money from the fund as provided by this chapter shall obtain and
provide the following information to the office of the governor:
(1) a federal criminal history background check for
each principal of the entity;
(2) a state criminal history background check for each
principal of the entity;
(3) a credit check for each principal of the entity;
(4) a copy of a government-issued form of photo
identification for each principal of the entity; and
(5) information regarding whether the entity or a
principal of the entity has ever been subject to a sanction imposed
by the Securities and Exchange Commission for a violation of
applicable federal law.
(d) For purposes of Subsection (c), "principal" means:
(1) an officer of an entity; or
(2) a person who has at least a 10 percent ownership
interest in an entity.
(e) With each proposal to award funding submitted by the
governor to the lieutenant governor and speaker of the house of
representatives for purposes of obtaining prior approval, the
governor shall provide each officer with a copy of the information
provided by the appropriate entity under Subsection (c).
SECTION 56.09. Section 490.057, Government Code, is amended
to read as follows:
Sec. 490.057. CONFIDENTIALITY. (a) Except as provided by
Subsection (b), information [Information] collected by the
governor's office, the committee, or the committee's advisory
panels concerning the identity, background, finance, marketing
plans, trade secrets, or other commercially or academically
sensitive information of an individual or entity being considered
for, receiving, or having received an award from the fund is
confidential unless the individual or entity consents to disclosure
of the information.
(b) The following information collected by the governor's
office, the committee, or the committee's advisory panels under
this chapter is public information and may be disclosed under
Chapter 552:
(1) the name and address of an individual or entity
receiving or having received an award from the fund;
(2) the amount of funding received by an award
recipient;
(3) a brief description of the project that is funded
under this chapter;
(4) if applicable, a brief description of the equity
position that the governor, on behalf of the state, has taken in an
entity that has received an award from the fund; and
(5) any other information designated by the committee
with the consent of:
(A) the individual or entity receiving or having
received an award from the fund, as applicable;
(B) the governor;
(C) the lieutenant governor; and
(D) the speaker of the house of representatives.
SECTION 56.10. Section 490.101, Government Code, is amended
by amending Subsection (f) and adding Subsection (f-1) to read as
follows:
(f) The administration of the fund is considered to be a
trusteed program within the office of the governor. The governor
may negotiate on behalf of the state regarding awards from the
fund. The governor may award money appropriated from the fund only
with the [express written] prior approval of the lieutenant
governor and speaker of the house of representatives.
(f-1) For purposes of Subsection (f), an award of money
appropriated from the fund is considered disapproved by the
lieutenant governor or speaker of the house of representatives if
that officer does not approve the proposal to award funding before
the 91st day after the date of receipt of the proposal from the
governor. The lieutenant governor or the speaker of the house of
representatives may extend the review deadline applicable to that
officer for an additional 14 days by submitting a written notice to
that effect to the governor before the expiration of the initial
review period.
SECTION 56.11. Subchapter D, Chapter 490, Government Code,
is amended by adding Section 490.1521 to read as follows:
Sec. 490.1521. MINUTES OF CERTAIN MEETINGS. (a) Each
regional center of innovation and commercialization established
under Section 490.152, including the Texas Life Science Center for
Innovation and Commercialization, shall keep minutes of each
meeting at which applications for funding under this subchapter are
evaluated. The minutes must:
(1) include the name of each applicant recommended by
the regional center of innovation and commercialization to the
committee for funding; and
(2) indicate the vote of each member of the governing
body of the regional center of innovation and commercialization,
including any recusal by a member and the member's reason for
recusal, with regard to each application reviewed.
(b) Each regional center of innovation and
commercialization shall retain a copy of the minutes of each
meeting to which this section applies for at least three years.
SECTION 56.12. Section 203.021, Labor Code, is amended by
adding Subsection (e) to read as follows:
(e) Money in the compensation fund may not be transferred to
the:
(1) Texas Enterprise Fund created under Section
481.078, Government Code; or
(2) Texas emerging technology fund established under
Section 490.101, Government Code.
SECTION 56.13. Section 204.123, Labor Code, is amended to
read as follows:
Sec. 204.123. TRANSFER TO [TEXAS ENTERPRISE FUND,] SKILLS
DEVELOPMENT FUND, TRAINING STABILIZATION FUND, AND COMPENSATION
FUND. (a) If, on September 1 of a year, the commission determines
that the amount in the compensation fund will exceed 100 percent of
its floor as computed under Section 204.061 on the next October 1
computation date, the commission shall transfer from the holding
fund created under Section 204.122:
(1) [from the first $160 million deposited in the
holding fund in any state fiscal biennium:
[(A) during the state fiscal biennium ending
August 31, 2007:
[(i) 67 percent to the Texas Enterprise
Fund created under Section 481.078, Government Code, except that
the amount transferred under this paragraph may not exceed the
amount appropriated by the legislature to the Texas Enterprise Fund
in that biennium; and
[(ii) 33 percent to the skills development
fund created under Section 303.003, except that the amount
transferred under this paragraph may not exceed the amount
appropriated by the legislature to the skills development program
strategies and activities in that biennium; and
[(B)] during any state fiscal biennium beginning
on or after September 1, 2007, 100 [:
[(i) 75 percent to the Texas Enterprise
Fund created under Section 481.078, Government Code, except that
the amount transferred under this paragraph may not exceed the
amount appropriated by the legislature to the Texas Enterprise Fund
in that biennium; and
[(ii) 25] percent to the skills development
fund created under Section 303.003, except that the amount
transferred under this subdivision [paragraph] may not exceed the
amount appropriated by the legislature to the skills development
program strategies and activities in that biennium; and
(2) any remaining amount in the holding fund after the
distribution under Subdivision (1) to the training stabilization
fund created under Section 302.101.
(b) If, on September 1 of a year, the commission determines
that the amount in the compensation fund will be at or below 100
percent of its floor as computed under Section 204.061 on the next
October 1 computation date, the commission shall transfer to the
compensation fund as much of the amount in the holding fund as is
necessary to raise the amount in the compensation fund to 100
percent of its floor, up to and including the entire amount in the
holding fund. The commission shall transfer any remaining balance
in the holding fund to the [Texas Enterprise Fund, the] skills
development fund[,] and the training stabilization fund in the
manner [in the percentages] prescribed by Subsection (a).
SECTION 56.14. Subsections (b) and (c), Section 302.101,
Labor Code, are amended to read as follows:
(b) Money in the training stabilization fund may be used in
a year in which the amounts in the employment and training
investment holding fund are insufficient to meet the legislative
appropriation for that fiscal year for [either the Texas Enterprise
Fund or] the skills development program strategies and activities.
(c) Money in the training stabilization fund shall be
transferred to the [Texas Enterprise Fund and the] skills
development fund under Subsection (b) not later than September
30. [The transfer under Subsection (b) shall consist of
transferring 67 percent of the money in the training stabilization
fund to the Texas Enterprise Fund and 33 percent of the money in the
training stabilization fund to the skills development fund.] The
amount transferred from the training stabilization fund may not
exceed the amounts appropriated to the [Texas Enterprise Fund and]
skills development program strategies and activities in the fiscal
year in which the transfer is made.
SECTION 56.15. Sections 481.078(e) and 490.101(f),
Government Code, as amended by this article, and Section
490.101(f-1), Government Code, as added by this article, apply only
to a proposal for an award from the Texas Enterprise Fund or Texas
emerging technology fund submitted by the governor to the
lieutenant governor or speaker of the house of representatives for
prior approval on or after the effective date of this article. A
proposal submitted by the governor for prior approval before the
effective date of this article is governed by the law in effect on
the date the proposal was submitted for that approval, and the
former law is continued in effect for that purpose.
SECTION 56.16. Section 481.078(j), Government Code, as
amended by this article, and Sections 481.078(f-1) and (f-2),
Government Code, as added by this article, apply only to a grant
agreement that is entered into on or after the effective date of
this article. A grant agreement that is entered into before the
effective date of this article is governed by the law in effect on
the date the agreement was entered into, and the former law is
continued in effect for that purpose.
SECTION 56.17. (a) The terms of the members of the Texas
Emerging Technology Advisory Committee serving immediately before
the effective date of this article expire on the 91st day after the
last day of the legislative session.
(b) As soon as practicable after this article takes effect,
the governor, lieutenant governor, and speaker of the house of
representatives shall appoint members to the Texas Emerging
Technology Advisory Committee established under Subchapter B,
Chapter 490, Government Code, in a manner that complies with that
subchapter, as amended by this article.
(c) At the first meeting of members of the Texas Emerging
Technology Advisory Committee established under Subchapter B,
Chapter 490, Government Code, as amended by this article, occurring
on or after the 91st day after the last day of the legislative
session, the members appointed by the governor shall draw lots to
determine which six members will serve a term expiring September 1,
2012, and which seven members will serve a term expiring September
1, 2013.
ARTICLE 57. AD VALOREM TAXATION OF LAND USED TO RAISE OR KEEP BEES
SECTION 57.01. Subdivision (2), Section 23.51, Tax Code, is
amended to read as follows:
(2) "Agricultural use" includes but is not limited to
the following activities: cultivating the soil, producing crops for
human food, animal feed, or planting seed or for the production of
fibers; floriculture, viticulture, and horticulture; raising or
keeping livestock; raising or keeping exotic animals for the
production of human food or of fiber, leather, pelts, or other
tangible products having a commercial value; planting cover crops
or leaving land idle for the purpose of participating in a
governmental program, provided the land is not used for residential
purposes or a purpose inconsistent with agricultural use; and
planting cover crops or leaving land idle in conjunction with
normal crop or livestock rotation procedure. The term also
includes the use of land to produce or harvest logs and posts for
the use in constructing or repairing fences, pens, barns, or other
agricultural improvements on adjacent qualified open-space land
having the same owner and devoted to a different agricultural use.
The term also includes the use of land for wildlife management. The
term also includes the use of land to raise or keep bees for
pollination or for the production of human food or other tangible
products having a commercial value, provided that the land used is
not less than 5 or more than 20 acres.
SECTION 57.02. This article applies only to the appraisal
of land for ad valorem tax purposes for a tax year that begins on or
after the effective date of this Act.
ARTICLE 58. PLACE OF BUSINESS OF A RETAILER FOR SALES TAX PURPOSES
SECTION 58.01. Subdivision (3), Subsection (a), Section
321.002, Tax Code, is amended to read as follows:
(3) "Place of business of the retailer" means an
established outlet, office, or location operated by the retailer or
the retailer's agent or employee for the purpose of receiving
orders for taxable items and includes any location at which three or
more orders are received by the retailer during a calendar year. A
warehouse, storage yard, or manufacturing plant is not a "place of
business of the retailer" unless at least three orders are received
by the retailer during the calendar year at the warehouse, storage
yard, or manufacturing plant. An outlet, office, facility, or any
location that contracts with a retail or commercial business
[engaged in activities to which this chapter applies] to process
for that business invoices, purchase orders, [or] bills of lading,
or other equivalent records onto which sales tax is added,
including an office operated for the purpose of buying and selling
taxable goods to be used or consumed by the retail or commercial
business, is not a "place of business of the retailer" if the
comptroller determines that the outlet, office, facility, or
location functions or exists to avoid the tax imposed by this
chapter or to rebate a portion of the tax imposed by this chapter to
the contracting business. Notwithstanding any other provision of
this subdivision, a kiosk is not a "place of business of the
retailer." In this subdivision, "kiosk" means a small stand-alone
area or structure that:
(A) is used solely to display merchandise or to
submit orders for taxable items from a data entry device, or both;
(B) is located entirely within a location that is
a place of business of another retailer, such as a department store
or shopping mall; and
(C) at which taxable items are not available for
immediate delivery to a customer.
SECTION 58.02. This article takes effect October 1, 2011.
ARTICLE 59. TEXAS FARM AND RANCH LANDS CONSERVATION PROGRAM
SECTION 59.01. Subsection (b), Section 183.059, Natural
Resources Code, is amended to read as follows:
(b) To receive a grant from the fund under this subchapter,
an applicant who is qualified to be an easement holder under this
subchapter must submit an application to the council. The
application must:
(1) set out the parties' clear conservation goals
consistent with the program;
(2) include a site-specific estimate-of-value
appraisal by a licensed appraiser qualified to determine the market
value of the easement; and
(3) [demonstrate that the applicant is able to match
50 percent of the amount of the grant being sought, considering that
the council may choose to allow a donation of part of the appraised
value of the easement to be considered as in-kind matching funds;
and
[(4)] include a memorandum of understanding signed by
the landowner and the applicant indicating intent to sell an
agricultural conservation easement and containing the terms of the
contract for the sale of the easement.
ARTICLE 60. CERTAIN CONTRIBUTION RATE COMPUTATIONS
SECTION 60.01. Section 815.402, Government Code, is amended
by adding Subsections (a-1) and (h-1) to read as follows:
(a-1) Notwithstanding Subsection (a)(1), if the state
contribution to the retirement system is computed using a
percentage less than 6.5 percent for the state fiscal year
beginning September 1, 2011, the member's contribution is not
required to be computed using a percentage equal to the percentage
used to compute the state contribution for that biennium. This
subsection expires September 1, 2012.
(h-1) Notwithstanding Subsection (h), if the state
contribution to the law enforcement and custodial officer
supplemental retirement fund is computed using a percentage less
than 0.5 percent for the state fiscal year beginning September 1,
2011, the member's contribution is not required to be computed
using a percentage equal to the percentage used to compute the state
contribution for that biennium. This subsection expires September
1, 2012.
ARTICLE 61. QUINQUENNIAL REPORTING OF CERTAIN INFORMATION FOR
UNCLAIMED PROPERTY
SECTION 61.01. Subsection (a), Section 411.0111,
Government Code, is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
department shall provide to the comptroller, for the purpose of
assisting the comptroller in the identification of persons entitled
to unclaimed property reported to the comptroller, the name,
address, social security number, date of birth, and driver's
license or state identification number of each person about whom
the department has such information in its records.
SECTION 61.02. Subsection (a), Section 811.010, Government
Code, as added by Chapter 232 (S.B. 1589), Acts of the 81st
Legislature, Regular Session, 2009, is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
retirement system shall provide to the comptroller, for the purpose
of assisting the comptroller in the identification of persons
entitled to unclaimed property reported to the comptroller, the
name, address, social security number, and date of birth of each
member, retiree, and beneficiary from the retirement system's
records.
SECTION 61.03. Subsection (a), Section 821.010, Government
Code, is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
retirement system shall provide to the comptroller, for the purpose
of assisting the comptroller in the identification of persons
entitled to unclaimed property reported to the comptroller, the
name, address, social security number, and date of birth of each
member, retiree, and beneficiary from the retirement system's
records.
SECTION 61.04. Subsection (a), Section 301.086, Labor Code,
is amended to read as follows:
(a) Not later than June 1 of every fifth [each] year, the
commission shall provide to the comptroller, for the purpose of
assisting the comptroller in the identification of persons entitled
to unclaimed property reported to the comptroller, the name,
address, social security number, and date of birth of each person
about whom the commission has such information in its records.
SECTION 61.05. The Department of Public Safety, the
Employees Retirement System of Texas, the Teacher Retirement System
of Texas, and the Texas Workforce Commission shall provide
information to the comptroller as required by Sections 411.0111(a),
811.010(a), and 821.010(a), Government Code, and Section
301.086(a), Labor Code, as amended by this article, beginning in
2016.
ARTICLE 62. AD VALOREM TAXATION OF CERTAIN STORED PROPERTY
SECTION 62.01. Subsection (a), Section 11.253, Tax Code, is
amended by amending Subdivision (2) and adding Subdivisions (5) and
(6) to read as follows:
(2) "Goods-in-transit" means tangible personal
property that:
(A) is acquired in or imported into this state to
be forwarded to another location in this state or outside this
state;
(B) is stored under a contract of bailment by a
public warehouse operator [detained] at one or more public
warehouse facilities [a location] in this state that are not in any
way owned or controlled by [in which] the owner of the personal
property [does not have a direct or indirect ownership interest]
for the account of [assembling, storing, manufacturing,
processing, or fabricating purposes by] the person who acquired or
imported the property;
(C) is transported to another location in this
state or outside this state not later than 175 days after the date
the person acquired the property in or imported the property into
this state; and
(D) does not include oil, natural gas, petroleum
products, aircraft, dealer's motor vehicle inventory, dealer's
vessel and outboard motor inventory, dealer's heavy equipment
inventory, or retail manufactured housing inventory.
(5) "Bailee" and "warehouse" have the meanings
assigned by Section 7.102, Business & Commerce Code.
(6) "Public warehouse operator" means a person that:
(A) is both a bailee and a warehouse; and
(B) stores under a contract of bailment, at one
or more public warehouse facilities, tangible personal property
that is owned by other persons solely for the account of those
persons and not for the operator's account.
SECTION 62.02. Section 11.253, Tax Code, is amended by
amending Subsections (e) and (h) and adding Subsections (j-1) and
(j-2) to read as follows:
(e) In determining the market value of goods-in-transit
that in the preceding year were [assembled,] stored[, manufactured,
processed, or fabricated] in this state, the chief appraiser shall
exclude the cost of equipment, machinery, or materials that entered
into and became component parts of the goods-in-transit but were
not themselves goods-in-transit or that were not transported to
another location in this state or outside this state before the
expiration of 175 days after the date they were brought into this
state by the property owner or acquired by the property owner in
this state. For component parts held in bulk, the chief appraiser
may use the average length of time a component part was held by the
owner of the component parts during the preceding year at a location
in this state that was not owned by or under the control of the owner
of the component parts in determining whether the component parts
were transported to another location in this state or outside this
state before the expiration of 175 days.
(h) The chief appraiser by written notice delivered to a
property owner who claims an exemption under this section may
require the property owner to provide copies of property records so
the chief appraiser can determine the amount and value of
goods-in-transit and that the location in this state where the
goods-in-transit were detained for storage [assembling, storing,
manufacturing, processing, or fabricating purposes] was not owned
by or under the control of the owner of the goods-in-transit. If
the property owner fails to deliver the information requested in
the notice before the 31st day after the date the notice is
delivered to the property owner, the property owner forfeits the
right to claim or receive the exemption for that year.
(j-1) Notwithstanding Subsection (j) or official action
that was taken under that subsection before October 1, 2011, to tax
goods-in-transit exempt under Subsection (b) and not exempt under
other law, a taxing unit may not tax such goods-in-transit in a tax
year that begins on or after January 1, 2012, unless the governing
body of the taxing unit takes action on or after October 1, 2011, in
the manner required for official action by the governing body, to
provide for the taxation of the goods-in-transit. The official
action to tax the goods-in-transit must be taken before January 1 of
the first tax year in which the governing body proposes to tax
goods-in-transit. Before acting to tax the exempt property, the
governing body of the taxing unit must conduct a public hearing as
required by Section 1-n(d), Article VIII, Texas Constitution. If
the governing body of a taxing unit provides for the taxation of the
goods-in-transit as provided by this subsection, the exemption
prescribed by Subsection (b) does not apply to that unit. The
goods-in-transit remain subject to taxation by the taxing unit
until the governing body of the taxing unit, in the manner required
for official action, rescinds or repeals its previous action to tax
goods-in-transit or otherwise determines that the exemption
prescribed by Subsection (b) will apply to that taxing unit.
(j-2) Notwithstanding Subsection (j-1), if under Subsection
(j) the governing body of a taxing unit, before October 1, 2011,
took action to provide for the taxation of goods-in-transit and
pledged the taxes imposed on the goods-in-transit for the payment
of a debt of the taxing unit, the tax officials of the taxing unit
may continue to impose the taxes against the goods-in-transit until
the debt is discharged, if cessation of the imposition would impair
the obligation of the contract by which the debt was created.
SECTION 62.03. Subdivision (2), Subsection (a), Section
11.253, Tax Code, as amended by this article, applies only to an ad
valorem tax year that begins on or after January 1, 2012.
SECTION 62.04. (a) Except as provided by Subsection (b) of
this section, this article takes effect January 1, 2012.
(b) Section 63.02 of this article takes effect October 1,
2011.
ARTICLE 63. FISCAL MATTERS CONCERNING ADVANCED PLACEMENT
SECTION 63.01. Subsection (h), Section 28.053, Education
Code, is amended to read as follows:
(h) The commissioner may enter into agreements with the
college board and the International Baccalaureate Organization to
pay for all examinations taken by eligible public school students.
An eligible student is a student [one] who:
(1) takes a college advanced placement or
international baccalaureate course at a public school or who is
recommended by the student's principal or teacher to take the test;
and
(2) demonstrates financial need as determined in
accordance with guidelines adopted by the board that are consistent
with the definition of financial need adopted by the college board
or the International Baccalaureate Organization.
ARTICLE 64. FISCAL MATTERS CONCERNING TUITION EXEMPTIONS
SECTION 64.01. Subsection (c), Section 54.214, Education
Code, is amended to read as follows:
(c) To be eligible for an exemption under this section, a
person must:
(1) be a resident of this state;
(2) be a school employee serving in any capacity;
(3) for the initial term or semester for which the
person receives an exemption under this section, have worked as an
educational aide for at least one school year during the five years
preceding that term or semester;
(4) establish financial need as determined by
coordinating board rule;
(5) be enrolled at the institution of higher education
granting the exemption in courses required for teacher
certification in one or more subject areas determined by the Texas
Education Agency to be experiencing a critical shortage of teachers
at the public schools in this state [at the institution of higher
education granting the exemption];
(6) maintain an acceptable grade point average as
determined by coordinating board rule; and
(7) comply with any other requirements adopted by the
coordinating board under this section.
SECTION 64.02. The change in law made by this article
applies beginning with tuition and fees charged for the 2011 fall
semester. Tuition and fees charged for a term or semester before
the 2011 fall semester are covered by the law in effect during the
term or semester for which the tuition and fees are charged, and the
former law is continued in effect for that purpose.
ARTICLE 65. FISCAL MATTERS CONCERNING DUAL HIGH SCHOOL AND JUNIOR
COLLEGE CREDIT
SECTION 65.01. Subsection (c), Section 130.008, Education
Code, is amended to read as follows:
(c) The contact hours attributable to the enrollment of a
high school student in a course offered for joint high school and
junior college credit under this section, excluding a course for
which the student attending high school may receive course credit
toward the physical education curriculum requirement under Section
28.002(a)(2)(C), shall be included in the contact hours used to
determine the junior college's proportionate share of the state
money appropriated and distributed to public junior colleges under
Sections 130.003 and 130.0031, even if the junior college waives
all or part of the tuition or fees for the student under Subsection
(b).
SECTION 65.02. This article applies beginning with funding
for the 2011 fall semester.
ARTICLE 66. CLASSIFICATION OF ENTITIES AS ENGAGED IN RETAIL TRADE
FOR PURPOSES OF THE FRANCHISE TAX
SECTION 66.01. Subdivision (12), Section 171.0001, Tax
Code, is amended to read as follows:
(12) "Retail trade" means:
(A) the activities described in Division G of the
1987 Standard Industrial Classification Manual published by the
federal Office of Management and Budget; and
(B) apparel rental activities classified as
Industry 5999 or 7299 of the 1987 Standard Industrial
Classification Manual published by the federal Office of Management
and Budget.
SECTION 66.02. This article applies only to a report
originally due on or after the effective date of this Act.
SECTION 66.03. This article takes effect January 1, 2012.
ARTICLE 67. RETENTION OF CERTAIN FOUNDATION SCHOOL FUND PAYMENTS
SECTION 67.01. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2511 to read as follows:
Sec. 42.2511. AUTHORIZATION FOR CERTAIN DISTRICTS TO RETAIN
ADDITIONAL STATE AID. (a) This section applies only to a school
district that was provided with state aid under former Section
42.2516 for the 2009-2010 or 2010-2011 school year based on the
amount of aid to which the district would have been entitled under
that section if Section 42.2516(g), as it existed on January 1,
2009, applied to determination of the amount to which the district
was entitled for that school year.
(b) Notwithstanding any other law, a district to which this
section applies may retain the state aid provided to the district as
described by Subsection (a).
(c) This section expires September 1, 2013.
SECTION 67.02. It is the intent of the legislature that the
authorization provided by Section 42.2511, Education Code, as added
by this article, to retain state aid described by that section is
not affected by the expiration of that provision on September 1,
2013.
ARTICLE 68. THE STATE COMPRESSION PERCENTAGE
SECTION 68.01. Section 42.2516, Education Code, is amended
by adding Subsection (b-2) to read as follows:
(b-2) If a school district adopts a maintenance and
operations tax rate that is below the rate equal to the product of
the state compression percentage multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year,
the commissioner shall reduce the district's entitlement under this
section in proportion to the amount by which the adopted rate is
less than the rate equal to the product of the state compression
percentage multiplied by the rate adopted by the district for the
2005 tax year. The reduction required by this subsection applies
beginning with the maintenance and operations tax rate adopted for
the 2009 tax year.
ARTICLE 69. TEXAS GUARANTEED STUDENT LOAN CORPORATION; BOARD OF
DIRECTORS
SECTION 69.01. Subsections (a) and (b), Section 57.13,
Education Code, are amended to read as follows:
(a) The corporation is governed by a board of nine [11]
directors in accordance with this section.
(b) The governor, with the advice and consent of the senate,
shall appoint the [10] members of [to] the board as follows:
(1) four [five] members who must have knowledge of or
experience in finance, including management of funds or business
operations;
(2) one member who must be a student enrolled at a
postsecondary educational institution for the number of credit
hours required by the institution to be classified as a full-time
student of the institution; and
(3) four members who must be members the faculty or
administration of a [an eligible] postsecondary educational
institution that is an eligible institution for purposes of the
Higher Education Act of 1965, as amended[, as defined by Section
57.46].
SECTION 69.02. Section 57.17, Education Code, is amended to
read as follows:
Sec. 57.17. OFFICERS. The governor shall designate the
chairman from among the board's membership. The board shall elect
from among its members a [chairman,] vice-chairman[,] and other
officers that the board considers necessary. The chairman and
vice-chairman serve for a term of one year and may be redesignated
or reelected, as applicable.
SECTION 69.03. Subsection (d), Section 57.13, Education
Code, is repealed.
ARTICLE 70. FISCAL MATTERS CONCERNING LEASES OF PUBLIC LAND FOR
MINERAL DEVELOPMENT
SECTION 70.01. Subsections (a) and (c), Section 85.66,
Education Code, are amended to read as follows:
(a) If oil or other minerals are developed on any of the
lands leased by the board, the royalty or money as stipulated in the
sale shall be paid to the general land office at Austin on or before
the last day of each month for the preceding month during the life
of the rights purchased, and shall be set aside [in the state
treasury] as specified in Section 85.70 [of this code]. The royalty
or money paid to the general land office shall be accompanied by the
sworn statement of the owner, manager, or other authorized agent
showing the gross amount of oil, gas, sulphur, mineral ore, and
other minerals produced and saved since the last report, the amount
of oil, gas, sulphur, mineral ore, and other minerals produced and
sold off the premises, and the market value of the oil, gas,
sulphur, mineral ore, and other minerals, together with a copy of
all daily gauges, or vats, tanks, gas meter readings, pipeline
receipts, gas line receipts and other checks and memoranda of the
amounts produced and put into pipelines, tanks, vats, or pool and
gas lines, gas storage, other places of storage, and other means of
transportation.
(c) The commissioner of the general land office shall tender
to the board on or before the 10th day of each month a report of all
receipts that are collected from the lease or sale of oil, gas,
sulphur, mineral ore, and other minerals and that are deposited
[turned into the state treasury,] as provided by Section 85.70
during [of this code, of] the preceding month.
SECTION 70.02. Section 85.69, Education Code, is amended to
read as follows:
Sec. 85.69. PAYMENTS; DISPOSITION. Payments under this
subchapter shall be made to the commissioner of the general land
office at Austin, who shall transmit to the board [comptroller] all
royalties, lease fees, rentals for delay in drilling or mining, and
all other payments, including all filing assignments and
relinquishment fees, to be deposited [in the state treasury] as
provided by Section 85.70 [of this code].
SECTION 70.03. Section 85.70, Education Code, is amended to
read as follows:
Sec. 85.70. CERTAIN MINERAL LEASES; DISPOSITION OF MONEY;
SPECIAL FUNDS; INVESTMENT. (a) Except as provided by Subsection
(c) [of this section], all money received under and by virtue of
this subchapter shall be deposited in [the state treasury to the
credit of] a special fund managed by the board to be known as The
Texas A&M University System Special Mineral Investment Fund. Money
in the fund is considered to be institutional funds, as defined by
Section 51.009, of the system and its component institutions. The
[With the approval of the comptroller, the board of regents of The
Texas A&M University System may appoint one or more commercial
banks, depository trust companies, or other entities to serve as
custodian or custodians of the Special Mineral Investment Fund's
securities with authority to hold the money realized from those
securities pending completion of an investment transaction if the
money held is reinvested within one business day of receipt in
investments determined by the board of regents. Money not
reinvested within one business day of receipt shall be deposited in
the state treasury not later than the fifth day after the date of
receipt. In the judgment of the board, this] special fund may be
invested so as to produce [an] income which may be expended under
the direction of the board for the general use of any component of
The Texas A&M University System, including erecting permanent
improvements and in payment of expenses incurred in connection with
the administration of this subchapter. The unexpended income
likewise may be invested as [herein] provided by this section.
(b) The income from the investment of the special mineral
investment fund created by [under] Subsection (a) [of this section]
shall be deposited in [to the credit of] a fund managed by the board
to be known as The Texas A&M University System Special Mineral
Income Fund, and is considered to be institutional funds, as
defined by Section 51.009, of the system and its component
institutions [shall be appropriated by the legislature exclusively
for the university system for the purposes herein provided].
(c) The board shall lease for oil, gas, sulphur, or other
mineral development, as prescribed by this subchapter, all or part
of the land under the exclusive control of the board owned by the
State of Texas and acquired for the use of Texas A&M
University--Kingsville and its divisions. Any money received by
the board concerning such land under this subchapter shall be
deposited in [the state treasury to the credit of] a special fund
managed by the board to be known as the Texas A&M
University--Kingsville special mineral fund. Money in the fund is
considered to be institutional funds, as defined by Section 51.009,
of the university and is[,] to be used exclusively for the
university [Texas A&M University--Kingsville] and its branches and
divisions. [Money may not be expended from this fund except as
authorized by the general appropriations act.]
(d) All deposits in and investments of the fund under this
section shall be made in accordance with Section 51.0031.
(e) Section 34.017, Natural Resources Code, does not apply
to funds created by this section.
SECTION 70.04. Subsection (b), Section 95.36, Education
Code, is amended to read as follows:
(b) Except as provided in Subsection (c) of this section,
any money received by virtue of this section and the income from the
investment of such money shall be deposited in [the State Treasury
to the credit of] a special fund managed by the board to be known as
the Texas State University System special mineral fund. Money in
the fund is considered to be institutional funds, as defined by
Section 51.009, of the system and its component institutions and
is[,] to be used exclusively for those entities. All deposits in and
investments of the fund shall be made in accordance with Section
51.0031. Section 34.017, Natural Resources Code, does not apply to
the fund [the university system and the universities in the system.
However, no money shall ever be expended from this fund except as
authorized by the General Appropriations Act].
SECTION 70.05. Subsection (b), Section 109.61, Education
Code, is amended to read as follows:
(b) Any money received by virtue of this section shall be
deposited in [the state treasury to the credit of] a special fund
managed by the board to be known as the Texas Tech University
special mineral fund. Money in the fund is considered to be
institutional funds, as defined by Section 51.009, of the
university and is[,] to be used exclusively for the university and
its branches and divisions. All deposits in and investments of the
fund shall be made in accordance with Section 51.0031. Section
34.017, Natural Resources Code, does not apply to the fund.
[However, no money shall ever be expended from this fund except as
authorized by the general appropriations act.]
SECTION 70.06. Subsections (a) and (c), Section 109.75,
Education Code, are amended to read as follows:
(a) If oil or other minerals are developed on any of the
lands leased by the board, the royalty as stipulated in the sale
shall be paid to the general land office in Austin on or before the
last day of each month for the preceding month during the life of
the rights purchased. The royalty payments shall be set aside [in
the state treasury] as specified in Section 109.61 [of this code]
and used as provided in that section.
(c) The commissioner of the general land office shall tender
to the board on or before the 10th day of each month a report of all
receipts that are collected from the lease or sale of oil, gas,
sulphur, or other minerals and that are deposited in [turned into]
the special fund as provided by Section 109.61 [in the state
treasury] during the preceding month.
SECTION 70.07. Subsection (b), Section 109.78, Education
Code, is amended to read as follows:
(b) Payment of all royalties, lease fees, rentals for delay
in drilling or mining, filing fees for assignments and
relinquishments, and all other payments shall be made to the
commissioner of the general land office at Austin. The
commissioner shall transmit all payments received to the board
[comptroller] for deposit to the credit of the Texas Tech
University special mineral fund as provided by Section 109.61.
SECTION 70.08. Section 85.72, Education Code, is repealed.
SECTION 70.09. This article takes effect September 1, 2011.
ARTICLE 71. FOUNDATION SCHOOL PROGRAM FINANCING; CERTAIN TAX
INCREMENT FUND REPORTING MATTERS
SECTION 71.01. (a) This section applies only to a school
district that, before May 1, 2011, received from the commissioner
of education a notice of a reduction in state funding for the
2004-2005, 2005-2006, 2006-2007, 2007-2008, and 2008-2009 school
years based on the district's reporting related to deposits of
taxes into a tax increment fund under Chapter 311, Tax Code.
(b) Notwithstanding any other law, including Section
42.302(b)(2), Education Code, the commissioner of education shall
reduce by one-half the amounts of the reduction of entitlement
amounts computed for purposes of adjusting entitlement amounts to
account for taxes deposited into a tax increment fund for any of the
school years described by Subsection (a) of this section.
(c) This section expires September 1, 2013.
ARTICLE 72. FISCAL MATTERS RELATING TO PUBLIC SCHOOL FINANCE
SECTION 72.01. Effective September 1, 2011, Section 12.106,
Education Code, is amended by amending Subsection (a) and adding
Subsection (a-3) to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 equal to
the greater of:
(1) the percentage specified by Section 42.2516(i)
multiplied by the amount of funding per student in weighted average
daily attendance, excluding enrichment funding under Sections
42.302(a-1)(2) and (3), as they existed on January 1, 2009, that
would have been received for the school during the 2009-2010 school
year under Chapter 42 as it existed on January 1, 2009, and an
additional amount of the percentage specified by Section 42.2516(i)
multiplied by $120 for each student in weighted average daily
attendance; or
(2) the amount of funding per student in weighted
average daily attendance, excluding enrichment funding under
Section 42.302(a), to which the charter holder would be entitled
for the school under Chapter 42 if the school were a school district
without a tier one local share for purposes of Section 42.253 and
without any local revenue for purposes of Section 42.2516.
(a-3) In determining funding for an open-enrollment charter
school under Subsection (a), the commissioner shall apply the
regular program adjustment factor provided under Section 42.101 to
calculate the regular program allotment to which a charter school
is entitled.
SECTION 72.02. Effective September 1, 2017, Subsection (a),
Section 12.106, Education Code, is amended to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 equal to
[the greater of:
[(1) the amount of funding per student in weighted
average daily attendance, excluding enrichment funding under
Sections 42.302(a-1)(2) and (3), as they existed on January 1,
2009, that would have been received for the school during the
2009-2010 school year under Chapter 42 as it existed on January 1,
2009, and an additional amount of $120 for each student in weighted
average daily attendance; or
[(2)] the amount of funding per student in weighted
average daily attendance, excluding enrichment funding under
Section 42.302(a), to which the charter holder would be entitled
for the school under Chapter 42 if the school were a school district
without a tier one local share for purposes of Section 42.253 [and
without any local revenue for purposes of Section 42.2516].
SECTION 72.03. Effective September 1, 2011, Section 21.402,
Education Code, is amended by amending Subsections (a), (b), (c),
and (c-1) and adding Subsection (i) to read as follows:
(a) Except as provided by Subsection (d)[, (e),] or (f), a
school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
42.101 (a) or (b) for a school district with a maintenance and
operations tax rate at least equal to the state maximum compressed
tax rate, as defined by Section 42.101 (a) [state and local funds
per weighted student, including funds provided under Section
42.2516, available to a district eligible to receive state
assistance under Section 42.302 with a maintenance and operations
tax rate per $100 of taxable value equal to the product of the state
compression percentage, as determined under Section 42.2516,
multiplied by $1.50, except that the amount of state and local funds
per weighted student does not include the amount attributable to
the increase in the guaranteed level made by Chapter 1187, Acts of
the 77th Legislature, Regular Session, 2001].
(b) Not later than June 1 of each year, the commissioner
shall determine the basic allotment and resulting monthly salaries
to be paid by school districts as provided by Subsection (a) [amount
of state and local funds per weighted student available, for
purposes of Subsection (a), to a district described by that
subsection for the following school year].
(c) The salary factors per step are as follows:
0 1 2 3 4 0 1 2 3 4
0 1 2 3 4
.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909] .5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
5 6 7 8 9 5 6 7 8 9
5 6 7 8 9
.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220] .6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
10 11 12 13 14 10 11 12 13 14
10 11 12 13 14
.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213] .7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
15 16 17 18 19 15 16 17 18 19
15 16 17 18 19
.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963] .8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
.8854 [1.009] .8854 [1.009]
.8854 [1.009]
(c-1) Notwithstanding Subsections [Subsection] (a) and
(b)[, for the 2009-2010 and 2010-2011 school years], each school
district shall pay a monthly salary to [increase the monthly salary
of] each classroom teacher, full-time speech pathologist,
full-time librarian, full-time counselor certified under
Subchapter B, and full-time school nurse that is at least equal to
the following monthly salary or the monthly salary determined by
the commissioner under Subsections (a) and (b), whichever is [by
the] greater [of]:
Years of Monthly Years of Monthly
Years of Monthly
Experience Salary Experience Salary
Experience Salary
0 2,732 0 2,732
0 2,732
1 2,791 1 2,791
1 2,791
2 2,849 2 2,849
2 2,849
3 2,908 3 2,908
3 2,908
4 3,032 4 3,032
4 3,032
5 3,156 5 3,156
5 3,156
6 3,280 6 3,280
6 3,280
7 3,395 7 3,395
7 3,395
8 3,504 8 3,504
8 3,504
9 3,607 9 3,607
9 3,607
10 3,704 10 3,704
10 3,704
11 3,796 11 3,796
11 3,796
12 3,884 12 3,884
12 3,884
13 3,965 13 3,965
13 3,965
14 4,043 14 4,043
14 4,043
15 4,116 15 4,116
15 4,116
16 4,186 16 4,186
16 4,186
17 4,251 17 4,251
17 4,251
18 4,313 18 4,313
18 4,313
19 4,372 19 4,372
19 4,372
20 & Over 4,427 20 & Over 4,427
20 & Over 4,427
[(1) $80; or
[(2) the maximum uniform amount that, when combined with any
resulting increases in the amount of contributions made by the
district for social security coverage for the specified employees
or by the district on behalf of the specified employees under
Section 825.405, Government Code, may be provided using an amount
equal to the product of $60 multiplied by the number of students in
weighted average daily attendance in the school during the
2009-2010 school year.]
(i) Not later than January 1, 2013, the commissioner shall
submit to the governor, the lieutenant governor, the speaker of the
house of representatives, and the presiding officer of each
legislative standing committee with primary jurisdiction over
primary and secondary education a written report that evaluates and
provides recommendations regarding the salary schedule. This
subsection expires September 1, 2013.
SECTION 72.04. Effective September 1, 2017, Section 21.402,
Education Code, is amended by amending Subsection (a) and adding
Subsection (e-1) to read as follows:
(a) Except as provided by Subsection (d), (e-1) [(e)], or
(f), a school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x FS
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of the basic allotment as provided by Section
42.101(a) or (b) for a school district with a maintenance and
operation tax rate at least equal to the state maximum compressed
tax rate, as defined by Section 42.101(a) [state and local funds per
weighted student, including funds provided under Section 42.2516,
available to a district eligible to receive state assistance under
Section 42.302 with a maintenance and operations tax rate per $100
of taxable value equal to the product of the state compression
percentage, as determined under Section 42.2516, multiplied by
$1.50, except that the amount of state and local funds per weighted
student does not include the amount attributable to the increase in
the guaranteed level made by Chapter 1187, Acts of the 77th
Legislature, Regular Session 2001].
(e-1) If the minimum monthly salary determined under
Subsection (a) for a particular level of experience is less than the
minimum monthly salary for that level of experience in the
preceding year, the minimum monthly salary is the minimum monthly
salary for the preceding year.
SECTION 72.05. Subsection (a), Section 41.002, Education
Code, is amended to read as follows:
(a) A school district may not have a wealth per student that
exceeds:
(1) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to a district with maintenance and operations tax revenue
per cent of tax effort equal to the maximum amount provided per cent
under Section 42.101(a) or (b) [42.101], for the district's
maintenance and operations tax effort equal to or less than the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year;
(2) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, for the first six cents by which the district's maintenance
and operations tax rate exceeds the rate equal to the product of the
state compression percentage, as determined under Section 42.2516,
multiplied by the maintenance and operations tax rate adopted by
the district for the 2005 tax year, subject to Section 41.093(b-1);
or
(3) $319,500, for the district's maintenance and
operations tax effort that exceeds the first six cents by which the
district's maintenance and operations tax effort exceeds the rate
equal to the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year.
SECTION 72.06. The heading to Section 42.101, Education
Code, is amended to read as follows:
Sec. 42.101. BASIC AND REGULAR PROGRAM ALLOTMENTS
[ALLOTMENT].
SECTION 72.07. Section 42.101, Education Code, is amended
by amending Subsections (a) and (b) and adding Subsections (c) and
(c-1) to read as follows:
(a) The basic [For each student in average daily attendance,
not including the time students spend each day in special education
programs in an instructional arrangement other than mainstream or
career and technology education programs, for which an additional
allotment is made under Subchapter C, a district is entitled to an]
allotment is an amount equal to the lesser of $4,765 or the amount
that results from the following formula:
A = $4,765 X (DCR/MCR)
where:
"A" is the resulting amount for [allotment to which] a
district [is entitled];
"DCR" is the district's compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year; and
"MCR" is the state maximum compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by $1.50.
(b) A greater amount for any school year for the basic
allotment under Subsection (a) may be provided by appropriation.
(c) A school district is entitled to a regular program
allotment equal to the amount that results from the following
formula:
RPA = ADA X AA X RPAF
where:
"RPA" is the regular program allotment to which the district
is entitled;
"ADA" is the number of students in average daily attendance
in a district, not including the time students spend each day in
special education programs in an instructional arrangement other
than mainstream or career and technology education programs, for
which an additional allotment is made under Subchapter C;
"AA" is the district's adjusted basic allotment, as
determined under Section 42.102 and, if applicable, as further
adjusted under Section 42.103; and
"RPAF" is the regular program adjustment factor, which is an
amount established by appropriation.
(c-1) Notwithstanding Subsection (c), the regular program
adjustment factor ("RPAF") is 0.9239 for the 2011-2012 school year
and 0.98 for the 2012-2013 school year. This subsection expires
September 1, 2013.
SECTION 72.08. Section 42.105, Education Code, is amended
to read as follows:
Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
Sections 42.101, 42.102, and 42.103, a school district that has
fewer than 130 students in average daily attendance shall be
provided a regular program [an adjusted basic] allotment on the
basis of 130 students in average daily attendance if it offers a
kindergarten through grade 12 program and has preceding or current
year's average daily attendance of at least 90 students or is 30
miles or more by bus route from the nearest high school district. A
district offering a kindergarten through grade 8 program whose
preceding or current year's average daily attendance was at least
50 students or which is 30 miles or more by bus route from the
nearest high school district shall be provided a regular program
[an adjusted basic] allotment on the basis of 75 students in average
daily attendance. An average daily attendance of 60 students shall
be the basis of providing the regular program [adjusted basic]
allotment if a district offers a kindergarten through grade 6
program and has preceding or current year's average daily
attendance of at least 40 students or is 30 miles or more by bus
route from the nearest high school district.
SECTION 72.09. Subsection (a), Section 42.251, Education
Code, is amended to read as follows:
(a) The sum of the regular program [basic] allotment under
Subchapter B and the special allotments under Subchapter C,
computed in accordance with this chapter, constitute the tier one
allotments. The sum of the tier one allotments and the guaranteed
yield allotments under Subchapter F, computed in accordance with
this chapter, constitute the total cost of the Foundation School
Program.
SECTION 72.10. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2514 to read as follows:
Sec. 42.2514. ADDITIONAL STATE AID FOR TAX INCREMENT
FINANCING PAYMENTS. For each school year, a school district,
including a school district that is otherwise ineligible for state
aid under this chapter, is entitled to state aid in an amount equal
to the amount the district is required to pay into the tax increment
fund for a reinvestment zone under Section 311.013(n), Tax Code.
SECTION 72.11. Effective September 1, 2011, Section
42.2516, Education Code, is amended by amending Subsections (a),
(b), (d), and (f-2) and adding Subsection (i) to read as follows:
(a) In this title [section], "state compression percentage"
means the percentage[, as determined by the commissioner,] of a
school district's adopted maintenance and operations tax rate for
the 2005 tax year that serves as the basis for state funding [for
tax rate reduction under this section]. If the state compression
percentage is not established by appropriation for a school year,
the [The] commissioner shall determine the state compression
percentage for each school year based on the percentage by which a
district is able to reduce the district's maintenance and
operations tax rate for that year, as compared to the district's
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for distribution under this
section for that year from the property tax relief fund established
under Section 403.109, Government Code, or from another funding
source available for school district property tax relief.
(b) Notwithstanding any other provision of this title, a
school district that imposes a maintenance and operations tax at a
rate at least equal to the product of the state compression
percentage multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year is entitled to at
least the amount of state revenue necessary to provide the district
with the sum of:
(1) the percentage specified by Subsection (i) of the
amount, as calculated under Subsection (e), [the amount] of state
and local revenue per student in weighted average daily attendance
for maintenance and operations that the district would have
received during the 2009-2010 school year under Chapter 41 and this
chapter, as those chapters existed on January 1, 2009, at a
maintenance and operations tax rate equal to the product of the
state compression percentage for that year multiplied by the
maintenance and operations tax rate adopted by the district for the
2005 tax year;
(2) the percentage specified by Subsection (i) of an
amount equal to the product of $120 multiplied by the number of
students in weighted average daily attendance in the district; and
(3) [an amount equal to the amount the district is
required to pay into the tax increment fund for a reinvestment zone
under Section 311.013(n), Tax Code, in the current tax year; and
[(4)] any amount to which the district is entitled
under Section 42.106.
(d) In determining the amount to which a district is
entitled under Subsection (b)(1), the commissioner shall:
(1) include the percentage specified by Subsection (i)
of any amounts received by the district during the 2008-2009 school
year under Rider 86, page III-23, Chapter 1428 (H.B. 1), Acts of the
80th Legislature, Regular Session, 2007 (the General
Appropriations Act); and
(2) for a school district that paid tuition under
Section 25.039 during the 2008-2009 school year, reduce the amount
to which the district is entitled by the amount of tuition paid
during that school year.
(f-2) The rules adopted by the commissioner under
Subsection (f-1) must:
(1) require the commissioner to determine, as if this
section did not exist, the effect under Chapter 41 and this chapter
of a school district's action described by Subsection (f-1)(1),
(2), (3), or (4) on the total state revenue to which the district
would be entitled or the cost to the district of purchasing
sufficient attendance credits to reduce the district's wealth per
student to the equalized wealth level; and
(2) require an increase or reduction in the amount of
state revenue to which a school district is entitled under
Subsection (b)(1) [(b)] that is substantially equivalent to any
change in total state revenue or the cost of purchasing attendance
credits that would apply to the district if this section did not
exist.
(i) The percentage to be applied for purposes of Subsections
(b)(1) and (2) and Subsection (d)(1) is 100.00 percent for the
2011-2012 school year and 92.35 percent for the 2012-2013 school
year. For the 2013-2014 school year and each subsequent school
year, the legislature by appropriation shall establish the
percentage reduction to be applied.
SECTION 72.12. Effective September 1, 2017, the heading to
Section 42.2516, Education Code, is amended to read as follows:
Sec. 42.2516. STATE COMPRESSION PERCENTAGE [ADDITIONAL
STATE AID FOR TAX REDUCTION].
SECTION 72.13. Effective September 1, 2017, Subsection (a),
Section 42.2516, Education Code, is amended to read as follows:
(a) In this title [section], "state compression percentage"
means the percentage[, as determined by the commissioner,] of a
school district's adopted maintenance and operations tax rate for
the 2005 tax year that serves as the basis for state funding [for
tax rate reduction under this section]. If the state compression
percentage is not established by appropriation for a school year,
the [The] commissioner shall determine the state compression
percentage for each school year based on the percentage by which a
district is able to reduce the district's maintenance and
operations tax rate for that year, as compared to the district's
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for [distribution under
this section for] that year from the property tax relief fund
established under Section 403.109, Government Code, or from another
funding source available for school district property tax relief.
SECTION 72.14. Effective September 1, 2011, Subsection (a),
Section 42.25161, Education Code, is amended to read as follows:
(a) The commissioner shall provide South Texas Independent
School District with the amount of state aid necessary to ensure
that the district receives an amount of state and local revenue per
student in weighted average daily attendance that is at least the
percentage specified by Section 42.2516(i) of $120 greater than the
amount the district would have received per student in weighted
average daily attendance during the 2009-2010 school year under
this chapter, as it existed on January 1, 2009, at a maintenance and
operations tax rate equal to the product of the state compression
percentage multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year, provided that the
district imposes a maintenance and operations tax at that rate.
SECTION 72.15. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2525 to read as follows:
Sec. 42.2525. ADJUSTMENTS FOR CERTAIN DEPARTMENT OF DEFENSE
DISTRICTS. The commissioner is granted the authority to ensure
that Department of Defense school districts do not receive more
than an eight percent reduction should the federal government
reduce appropriations to those schools.
SECTION 72.16. Effective September 1, 2011, Subsections (h)
and (i), Section 42.253, Education Code, are amended to read as
follows:
(h) If the amount appropriated for the Foundation School
Program for the second year of a state fiscal biennium is less than
the amount to which school districts are entitled for that year, the
commissioner shall certify the amount of the difference to the
Legislative Budget Board not later than January 1 of the second year
of the state fiscal biennium. The Legislative Budget Board shall
propose to the legislature that the certified amount be transferred
to the foundation school fund from the economic stabilization fund
and appropriated for the purpose of increases in allocations under
this subsection. If the legislature fails during the regular
session to enact the proposed transfer and appropriation and there
are not funds available under Subsection (j), the commissioner
shall adjust [reduce] the total amounts due to each school district
under this chapter and the total amounts necessary for each school
district to comply with the requirements of Chapter 41 [amount of
state funds allocated to each district] by an amount determined by
applying to each district, including a district receiving funds
under Section 42.2516, the same percentage adjustment so that the
total amount of the adjustment to all districts [a method under
which the application of the same number of cents of increase in tax
rate in all districts applied to the taxable value of property of
each district, as determined under Subchapter M, Chapter 403,
Government Code,] results in an amount [a total levy] equal to the
total adjustment necessary. A school district is not entitled to
reimbursement in a subsequent fiscal year of the amount resulting
from the adjustment authorized by this subsection [reduction. The
following fiscal year, a district's entitlement under this section
is increased by an amount equal to the reduction made under this
subsection].
(i) Not later than March 1 each year, the commissioner shall
determine the actual amount of state funds to which each school
district is entitled under the allocation formulas in this chapter
for the current school year, as adjusted in accordance with
Subsection (h), if applicable, and shall compare that amount with
the amount of the warrants issued to each district for that year.
If the amount of the warrants differs from the amount to which a
district is entitled because of variations in the district's tax
rate, student enrollment, or taxable value of property, the
commissioner shall adjust the district's entitlement for the next
fiscal year accordingly.
SECTION 72.17. Effective September 1, 2017, Subsection (h),
Section 42.253, Education Code, is amended to read as follows:
(h) If the amount appropriated for the Foundation School
Program for the second year of a state fiscal biennium is less than
the amount to which school districts are entitled for that year, the
commissioner shall certify the amount of the difference to the
Legislative Budget Board not later than January 1 of the second year
of the state fiscal biennium. The Legislative Budget Board shall
propose to the legislature that the certified amount be transferred
to the foundation school fund from the economic stabilization fund
and appropriated for the purpose of increases in allocations under
this subsection. If the legislature fails during the regular
session to enact the proposed transfer and appropriation and there
are not funds available under Subsection (j), the commissioner
shall adjust [reduce] the total amounts due to each school district
under this chapter and the total amounts necessary for each school
district to comply with the requirements of Chapter 41 [amount of
state funds allocated to each district] by an amount determined by
applying to each district the same percentage adjustment so that
the total amount of the adjustment to all districts [a method under
which the application of the same number of cents of increase in tax
rate in all districts applied to the taxable value of property of
each district, as determined under Subchapter M, Chapter 403,
Government Code,] results in an amount [a total levy] equal to the
total adjustment necessary. A school district is not entitled to
reimbursement in a subsequent fiscal year of the amount resulting
from the adjustment authorized by this subsection [reduction. The
following fiscal year, a district's entitlement under this section
is increased by an amount equal to the reduction made under this
subsection].
SECTION 72.18. Section 42.258, Education Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) If a school district has received an overallocation of
state funds, the agency shall, by withholding from subsequent
allocations of state funds for the current or subsequent school
year or by requesting and obtaining a refund, recover from the
district an amount equal to the overallocation.
(a-1) Notwithstanding Subsection (a), the agency may
recover an overallocation of state funds over a period not to exceed
the subsequent five school years if the commissioner determines
that the overallocation was the result of exceptional circumstances
reasonably caused by statutory changes to Chapter 41 or 46 or this
chapter and related reporting requirements.
SECTION 72.19. Subsection (b), Section 42.260, Education
Code, is amended to read as follows:
(b) For each year, the commissioner shall certify to each
school district or participating charter school the amount of[:
[(1)] additional funds to which the district or school
is entitled due to the increase made by H.B. No. 3343, Acts of the
77th Legislature, Regular Session, 2001, to:
(1) [(A)] the equalized wealth level under Section
41.002; or
(2) [(B)] the guaranteed level of state and local
funds per weighted student per cent of tax effort under Section
42.302[; or
[(2) additional state aid to which the district or
school is entitled under Section 42.2513].
SECTION 72.20. Section 44.004, Education Code, is amended
by adding Subsection (g-1) to read as follows:
(g-1) If the rate calculated under Subsection
(c)(5)(A)(ii)(b) decreases after the publication of the notice
required by this section, the president is not required to publish
another notice or call another meeting to discuss and adopt the
budget and the proposed lower tax rate.
SECTION 72.21. Subsection (a), Section 26.05, Tax Code, is
amended to read as follows:
(a) The governing body of each taxing unit, before the later
of September 30 or the 60th day after the date the certified
appraisal roll is received by the taxing unit, shall adopt a tax
rate for the current tax year and shall notify the assessor for the
unit of the rate adopted. The tax rate consists of two components,
each of which must be approved separately. The components are:
(1) for a taxing unit other than a school district, the
rate that, if applied to the total taxable value, will impose the
total amount published under Section 26.04(e)(3)(C), less any
amount of additional sales and use tax revenue that will be used to
pay debt service, or, for a school district, the rate calculated
[published] under Section 44.004(c)(5)(A)(ii)(b), Education Code;
and
(2) the rate that, if applied to the total taxable
value, will impose the amount of taxes needed to fund maintenance
and operation expenditures of the unit for the next year.
SECTION 72.22. Effective September 1, 2017, Subsection (i),
Section 26.08, Tax Code, is amended to read as follows:
(i) For purposes of this section, the effective maintenance
and operations tax rate of a school district is the tax rate that,
applied to the current total value for the district, would impose
taxes in an amount that, when added to state funds that would be
distributed to the district under Chapter 42, Education Code, for
the school year beginning in the current tax year using that tax
rate, [including state funds that will be distributed to the
district in that school year under Section 42.2516, Education
Code,] would provide the same amount of state funds distributed
under Chapter 42, Education Code, [including state funds
distributed under Section 42.2516, Education Code,] and
maintenance and operations taxes of the district per student in
weighted average daily attendance for that school year that would
have been available to the district in the preceding year if the
funding elements for Chapters 41 and 42, Education Code, for the
current year had been in effect for the preceding year.
SECTION 72.23. Subsection (n), Section 311.013, Tax Code,
is amended to read as follows:
(n) This subsection applies only to a school district whose
taxable value computed under Section 403.302(d), Government Code,
is reduced in accordance with Subdivision (4) of that
subsection. In addition to the amount otherwise required to be
paid into the tax increment fund, the district shall pay into the
fund an amount equal to the amount by which the amount of taxes the
district would have been required to pay into the fund in the
current year if the district levied taxes at the rate the district
levied in 2005 exceeds the amount the district is otherwise
required to pay into the fund in the year of the reduction. This
additional amount may not exceed the amount the school district
receives in state aid for the current tax year under Section
42.2514, Education Code. The school district shall pay the
additional amount after the district receives the state aid to
which the district is entitled for the current tax year under
Section 42.2514, Education Code.
SECTION 72.24. Effective September 1, 2011, the following
provisions of the Education Code are repealed:
(1) Subsections (c-2), (c-3), and (e), Section 21.402;
(2) Section 42.008; and
(3) Subsections (a-1) and (a-2), Section 42.101.
SECTION 72.25. (a) Effective September 1, 2017, the
following provisions of the Education Code are repealed:
(1) Section 41.0041;
(2) Subsections (b), (b-1), (b-2), (c), (d), (e), (f),
(f-1), (f-2), (f-3), and (i), Section 42.2516;
(3) Section 42.25161;
(4) Subsection (c), Section 42.2523;
(5) Subsection (g), Section 42.2524;
(6) Subsection (c-1), Section 42.253; and
(7) Section 42.261.
(b) Effective September 1, 2017, Subsections (i-1) and (j),
Section 26.08, Tax Code, are repealed.
SECTION 72.26. (a) The speaker of the house of
representatives and the lieutenant governor shall establish a joint
legislative interim committee to conduct a comprehensive study of
the public school finance system in this state.
(b) Not later than January 15, 2013, the committee shall
make recommendations to the 83rd Legislature regarding changes to
the public school finance system.
(c) The committee is dissolved September 1, 2013.
SECTION 72.27. It is the intent of the legislature, between
fiscal year 2014 and fiscal year 2018, to continue to reduce the
amount of Additional State Aid For Tax Reduction (ASATR) to which a
school district is entitled under Section 42.2516, Education Code,
and to increase the basic allotment to which a school district is
entitled under Section 42.101, Education Code.
SECTION 72.28. Except as otherwise provided by this Act,
the changes in law made by this Act to Chapter 42, Education Code,
apply beginning with the 2011-2012 school year.
SECTION 72.29. The change in law made by Subsection (g-1),
Section 44.004, Education Code, as added by this Act, applies
beginning with adoption of a tax rate for the 2011 tax year.
ARTICLE 73. MIXED BEVERAGE TAX REIMBURSEMENTS
SECTION 73.01. Effective September 1, 2013, Section
183.051(b), Tax Code, is amended to read as follows:
(b) The comptroller shall issue to each county described in
Subsection (a) a warrant drawn on the general revenue fund in an
amount appropriated by the legislature that may not be less
[greater] than 10.7143 percent of receipts from permittees within
the county during the quarter and shall issue to each incorporated
municipality described in Subsection (a) a warrant drawn on that
fund in an amount appropriated by the legislature that may not be
less [greater] than 10.7143 percent of receipts from permittees
within the incorporated municipality during the quarter.
ARTICLE 74. EFFECTIVE DATE
SECTION 74.01. Except as otherwise provided by this Act:
(1) this Act takes effect September 1, 2011, 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;
and
(2) if this Act does not receive the vote necessary for
this Act to take effect on that date, this Act takes effect on the
91st day after the last day of the legislative session.
0 1 2 3 4
.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
5 6 7 8 9
.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
10 11 12 13 14
.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
15 16 17 18 19
.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
.8854 [1.009]
Years of Monthly
Experience Salary
0 2,732
1 2,791
2 2,849
3 2,908
4 3,032
5 3,156
6 3,280
7 3,395
8 3,504
9 3,607
10 3,704
11 3,796
12 3,884
13 3,965
14 4,043
15 4,116
16 4,186
17 4,251
18 4,313
19 4,372
20 & Over 4,427