Texas 2011 82nd 1st C.S.

Texas Senate Bill SB1 Enrolled / Bill

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                    S.B. No. 1


 AN ACT
 relating to certain state fiscal matters; providing penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1.  FOUNDATION SCHOOL PROGRAM PAYMENTS
 SECTION 1.01.  Subsections (c), (d), and (f), Section
 42.259, Education Code, are amended to read as follows:
 (c)  Payments from the foundation school fund to each
 category 2 school district shall be made as follows:
 (1)  22 percent of the yearly entitlement of the
 district shall be paid in an installment to be made on or before the
 25th day of September of a fiscal year;
 (2)  18 percent of the yearly entitlement of the
 district shall be paid in an installment to be made on or before the
 25th day of October;
 (3)  9.5 percent of the yearly entitlement of the
 district shall be paid in an installment to be made on or before the
 25th day of November;
 (4)  7.5 percent of the yearly entitlement of the
 district shall be paid in an installment to be made on or before the
 25th day of April;
 (5)  five percent of the yearly entitlement of the
 district shall be paid in an installment to be made on or before the
 25th day of May;
 (6)  10 percent of the yearly entitlement of the
 district shall be paid in an installment to be made on or before the
 25th day of June;
 (7)  13 percent of the yearly entitlement of the
 district shall be paid in an installment to be made on or before the
 25th day of July; and
 (8)  15 percent of the yearly entitlement of the
 district shall be paid in an installment to be made after the 5th
 day of September and not later than the 10th day of September of the
 calendar year following the calendar year of the payment made under
 Subdivision (1) [on or before the 25th day of August].
 (d)  Payments from the foundation school fund to each
 category 3 school district shall be made as follows:
 (1)  45 percent of the yearly entitlement of the
 district shall be paid in an installment to be made on or before the
 25th day of September of a fiscal year;
 (2)  35 percent of the yearly entitlement of the
 district shall be paid in an installment to be made on or before the
 25th day of October; and
 (3)  20 percent of the yearly entitlement of the
 district shall be paid in an installment to be made after the 5th
 day of September and not later than the 10th day of September of the
 calendar year following the calendar year of the payment made under
 Subdivision (1) [on or before the 25th day of August].
 (f)  Except as provided by Subsection (c)(8) or (d)(3), any
 [Any] previously unpaid additional funds from prior fiscal years
 owed to a district shall be paid to the district together with the
 September payment of the current fiscal year entitlement.
 SECTION 1.02.  Subsection (c), Section 466.355, Government
 Code, is amended to read as follows:
 (c)  Each August the comptroller shall:
 (1)  estimate the amount to be transferred to the
 foundation school fund on or before September 15; and
 (2)  notwithstanding Subsection (b)(4), transfer the
 amount estimated in Subdivision (1) to the foundation school fund
 before August 25 [installment payments are made under Section
 42.259, Education Code].
 SECTION 1.03.  The changes made by this article to Section
 42.259, Education Code, apply only to a payment from the foundation
 school fund that is made on or after the effective date of this Act.
 A payment to a school district from the foundation school fund that
 is made before that date is governed by Section 42.259, Education
 Code, as it existed before amendment by this article, and the former
 law is continued in effect for that purpose.
 ARTICLE 2.  FISCAL MATTERS REGARDING REGULATION AND TAXATION OF
 INSURERS
 SECTION 2.01.  Section 221.006, Insurance Code, is amended
 by adding Subsection (c) to read as follows:
 (c)  An insurer is not entitled to a credit under Subsection
 (a) for an examination or evaluation fee paid in calendar year 2012
 or 2013.  This subsection expires January 1, 2014.
 SECTION 2.02.  Section 222.007, Insurance Code, is amended
 by adding Subsection (c) to read as follows:
 (c)  An insurer or health maintenance organization is not
 entitled to a credit under Subsection (a) for an examination or
 evaluation fee paid in calendar year 2012 or 2013.  This subsection
 expires January 1, 2014.
 SECTION 2.03.  Section 223.009, Insurance Code, is amended
 by adding Subsection (c) to read as follows:
 (c)  A title insurance company is not entitled to a credit
 under Subsection (a) for an examination or evaluation fee paid in
 calendar year 2012 or 2013.  This subsection expires January 1,
 2014.
 SECTION 2.04.  Section 401.151, Insurance Code, is amended
 by adding Subsection (f) to read as follows:
 (f)  An insurer is not entitled to a credit under Subsection
 (e) for an examination or evaluation fee paid in calendar year 2012
 or 2013.  This subsection expires January 1, 2014.
 SECTION 2.05.  Section 401.154, Insurance Code, is amended
 to read as follows:
 Sec. 401.154.  TAX CREDIT AUTHORIZED.  (a)  An insurer is
 entitled to a credit on the amount of premium taxes to be paid by the
 insurer for all examination fees paid under Section 401.153.  The
 insurer may take the credit for the taxable year during which the
 examination fees are paid and may take the credit to the same extent
 the insurer may take a credit for examination fees paid when a
 salaried department examiner conducts the examination.
 (b)  An insurer is not entitled to a credit under Subsection
 (a) for an examination fee paid in calendar year 2012 or 2013.  This
 subsection expires January 1, 2014.
 SECTION 2.06.  Section 463.160, Insurance Code, is amended
 to read as follows:
 Sec. 463.160.  PREMIUM TAX CREDIT FOR CLASS A ASSESSMENT.
 The amount of a Class A assessment paid by a member insurer in each
 taxable year shall be allowed as a credit on the amount of premium
 taxes due [in the same manner as a credit is allowed under Section
 401.151(e)].
 SECTION 2.07.  The changes in law made by this article apply
 only to a tax credit for an examination or evaluation fee paid on or
 after January 1, 2012.  Tax credits for examination or evaluation
 fees paid before January 1, 2012, are governed by the law in effect
 immediately before the effective date of this Act, and that law is
 continued in effect for that purpose.
 ARTICLE 3.  STATE SALES AND FRANCHISE TAX REFUNDS FOR CERTAIN AD
 VALOREM TAXPAYERS
 SECTION 3.01.  Subchapter F, Chapter 111, Tax Code, is
 repealed.
 SECTION 3.02.  The repeal of Subchapter F, Chapter 111, Tax
 Code, by this article does not affect an eligible person's right to
 claim a refund of state sales and use and state franchise taxes that
 was established under Section 111.301, Tax Code, in relation to
 taxes paid before the effective date of this article in a calendar
 year for which the person paid ad valorem taxes to a school district
 as provided by Section 111.301, Tax Code, before the effective date
 of this article.  An eligible person's right to claim a refund of
 state sales and use and state franchise taxes that was established
 under Section 111.301, Tax Code, in relation to taxes paid before
 the effective date of this article in a calendar year for which the
 person paid ad valorem taxes to a school district as provided by
 Section 111.301, Tax Code, before the effective date of this
 article is governed by the law in effect on the date the right to
 claim the refund was established, and the former law is continued in
 effect for that purpose.
 SECTION 3.03.  This article takes effect October 1, 2011.
 ARTICLE 4.  TAX RECORDS
 SECTION 4.01.  Section 2153.201, Occupations Code, is
 amended by amending Subsection (b) and adding Subsection (c) to
 read as follows:
 (b)  A record required under Subsection (a) must:
 (1)  be available at all times for inspection by the
 attorney general, the comptroller, or an authorized representative
 of the attorney general or comptroller as provided by Subsection
 (c);
 (2)  include information relating to:
 (A)  the kind of each machine;
 (B)  the date each machine is:
 (i)  acquired or received in this state; and
 (ii)  placed in operation;
 (C)  the location of each machine, including the:
 (i)  county;
 (ii)  municipality, if any; and
 (iii)  street or rural route number;
 (D)  the name and complete address of each
 operator of each machine;
 (E)  if the owner is an individual, the full name
 and address of the owner; and
 (F)  if the owner is not an individual, the name
 and address of each principal officer or member of the owner; and
 (3)  be maintained[:
 [(A)]  at a permanent address in this state
 designated on the application for a license under Section
 2153.153[; and
 [(B)     until the second anniversary of the date the
 owner ceases ownership of the machine that is the subject of the
 record].
 (c)  A record required under Subsection (a) must be available
 for inspection under Subsection (b) for at least four years and as
 required by Section 111.0041, Tax Code.
 SECTION 4.02.  Section 111.0041, Tax Code, is amended to
 read as follows:
 Sec. 111.0041.  RECORDS; BURDEN TO PRODUCE AND SUBSTANTIATE
 CLAIMS. (a)  Except as provided by Subsection (b), a [Any]
 taxpayer who is required by this title to keep records shall keep
 those records open to inspection by the comptroller, the attorney
 general, or the authorized representatives of either of them for at
 least four years.
 (b)  A taxpayer is required to keep records, as provided by
 Subsection (c) with respect to the taxpayer's claim, open for
 inspection under Subsection (a) for more than four years throughout
 any period when:
 (1)  any tax, penalty, or interest may be assessed,
 collected, or refunded by the comptroller; or
 (2)  an administrative hearing is pending before the
 comptroller, or a judicial proceeding is pending, to determine the
 amount of the tax, penalty, or interest that is to be assessed,
 collected, or refunded.
 (c)  A taxpayer shall produce contemporaneous records and
 supporting documentation appropriate to the tax or fee for the
 transactions in question to substantiate and enable verification of
 the taxpayer's claim related to the amount of tax, penalty, or
 interest to be assessed, collected, or refunded in an
 administrative or judicial proceeding. Contemporaneous records
 and supporting documentation appropriate to the tax or fee may
 include, for example, invoices, vouchers, checks, shipping
 records, contracts, or other equivalent records, such as
 electronically stored images of such documents, reflecting legal
 relationships and taxes collected or paid.
 (d)  This section prevails over any other conflicting
 provision of this title.
 SECTION 4.03.  Section 112.052, Tax Code, is amended by
 adding Subsection (d) to read as follows:
 (d)  A taxpayer shall produce contemporaneous records and
 supporting documentation appropriate to the tax or fee for the
 transactions in question to substantiate and enable verification of
 a taxpayer's claim relating to the amount of the tax, penalty, or
 interest that has been assessed or collected or will be refunded, as
 required by Section 111.0041.
 SECTION 4.04.  Section 112.151, Tax Code, is amended by
 adding Subsection (f) to read as follows:
 (f)  A taxpayer shall produce contemporaneous records and
 supporting documentation appropriate to the tax or fee for the
 transactions in question to substantiate and enable verification of
 a taxpayer's claim relating to the amount of the tax, penalty, or
 interest that has been assessed or collected or will be refunded, as
 required by Section 111.0041.
 SECTION 4.05.  Subsection (b), Section 151.025, Tax Code, is
 amended to read as follows:
 (b)  A record required by Subsection (a) [of this section]
 shall be kept for not less than four years from the date [day] that
 it is made unless:
 (1)  the comptroller authorizes in writing its
 destruction at an earlier date; or
 (2)  Section 111.0041 requires that the record be kept
 for a longer period.
 SECTION 4.06.  Section 152.063, Tax Code, is amended by
 adding Subsection (h) to read as follows:
 (h)  Section 111.0041 applies to a person required to keep
 records under this chapter.
 SECTION 4.07.  Section 152.0635, Tax Code, is amended by
 adding Subsection (e) to read as follows:
 (e)  Section 111.0041 applies to a person required to keep
 records under this chapter.
 SECTION 4.08.  Subsection (a), Section 154.209, Tax Code, is
 amended to read as follows:
 (a)  Except as provided by Section 111.0041, each [Each]
 permit holder shall keep records available for inspection and
 copying by the comptroller and the attorney general for at least
 four years.
 SECTION 4.09.  Subsection (a), Section 155.110, Tax Code, is
 amended to read as follows:
 (a)  Except as provided by Section 111.0041, each [Each]
 permit holder shall keep records available for inspection and
 copying by the comptroller and the attorney general for at least
 four years.
 SECTION 4.10.  Section 160.046, Tax Code, is amended by
 adding Subsection (g) to read as follows:
 (g)  A person required to keep records under this section
 shall also keep the records as required by Section 111.0041.
 SECTION 4.11.  Subchapter A, Chapter 162, Tax Code, is
 amended by adding Section 162.0125 to read as follows:
 Sec. 162.0125.  DUTY TO KEEP RECORDS. A person required to
 keep a record under this chapter shall also keep the record as
 required by Section 111.0041.
 SECTION 4.12.  This article takes effect immediately if this
 Act receives a vote of two-thirds of all the members elected to each
 house, as provided by Section 39, Article III, Texas Constitution.
 If this Act does not receive the vote necessary for immediate
 effect, this article takes effect October 1, 2011.
 ARTICLE 5.  UNCLAIMED PROPERTY
 SECTION 5.01.  Subsection (b), Section 72.1017, Property
 Code, as effective September 1, 2011, is amended to read as follows:
 (b)  Notwithstanding Section 73.102, a utility deposit is
 presumed abandoned on the latest of:
 (1)  the first anniversary of [18 months after] the
 date a refund check for the utility deposit was payable to the owner
 of the deposit;
 (2)  the first anniversary of [18 months after] the
 date the utility last received documented communication from the
 owner of the utility deposit; or
 (3)  the first anniversary of [18 months after] the
 date the utility issued a refund check for the deposit payable to
 the owner of the deposit if, according to the knowledge and records
 of the utility or payor of the check, during that period, a claim to
 the check has not been asserted or an act of ownership by the payee
 has not been exercised.
 SECTION 5.02.  This article takes effect on the 91st day
 after the last day of the legislative session.
 ARTICLE 6.  CLASSIFICATION OF JUDICIAL AND COURT PERSONNEL
 TRAINING FUND
 SECTION 6.01.  Section 56.001, Government Code, is amended
 to read as follows:
 Sec. 56.001.  JUDICIAL AND COURT PERSONNEL TRAINING FUND.
 (a)  The judicial and court personnel training fund is an account
 in the general revenue fund. Money in the judicial and court
 personnel training fund may be appropriated only to [created in the
 state treasury and shall be administered by] the court of criminal
 appeals for the uses authorized in Section 56.003.
 (b) [(i)]  On requisition of the court of criminal appeals,
 the comptroller shall draw a warrant on the fund for the amount
 specified in the requisition for a use authorized in Section
 56.003. A warrant may not exceed the amount appropriated for any
 one fiscal year. [At the end of each state fiscal year, any
 unexpended balance in the fund in excess of $500,000 shall be
 transferred to the general revenue fund.]
 ARTICLE 7.  PROCESS SERVER CERTIFICATION FEES
 SECTION 7.01.  Section 51.008, Government Code, as effective
 September 1, 2011, is amended by amending Subsection (c) and adding
 Subsection (d) to read as follows:
 (c)  The Office of Court Administration of the Texas Judicial
 System may collect the fees recommended by the process server
 review board and approved by the supreme court. Fees collected
 under this section shall be sent to the comptroller for deposit to
 the credit of the general revenue fund [and may be appropriated only
 to the office for purposes of this section].
 (d)  Fees collected under this section may be appropriated to
 the Office of Court Administration of the Texas Judicial System for
 the support of regulatory programs for process servers, guardians,
 and court reporters.
 [ARTICLE 8 reserved]
 ARTICLE 9.  REMITTANCE AND ALLOCATION OF CERTAIN MOTOR FUELS TAXES
 SECTION 9.01.  Section 162.113, Tax Code, is amended by
 adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
 follows:
 (a-1)  On August 28, 2013, each licensed distributor and
 licensed importer shall remit to the supplier or permissive
 supplier, as applicable, a tax prepayment in an amount equal to 25
 percent of the tax imposed by Section 162.101 for gasoline removed
 at the terminal rack during July 2013 by the licensed distributor or
 licensed importer, without accounting for any credit or allowance
 to which the licensed distributor or licensed importer is entitled.
 The supplier or permissive supplier shall remit the tax prepayment
 received under this subsection to the comptroller by electronic
 funds transfer on August 30, 2013, without accounting for any
 credit or allowance to which the supplier or permissive supplier is
 entitled. Subsections (c)-(e) do not apply to the tax prepayment
 under this subsection.
 (a-2)  A licensed distributor or licensed importer may take a
 credit against the amount of tax imposed by Section 162.101 for
 gasoline removed at a terminal rack during August 2013 that is
 required to be remitted to the supplier or permissive supplier, as
 applicable, under Subsection (a) in September 2013. The amount of
 the credit is equal to the amount of any tax prepayment remitted by
 the licensed distributor or licensed importer as required by
 Subsection (a-1).
 (a-3)  Subsections (a-1) and (a-2) apply to a supplier or an
 affiliate of a supplier who removes gasoline at the terminal rack
 for distribution to the same extent and in the same manner that
 those subsections apply to a licensed distributor or licensed
 importer.
 (a-4)  Subsections (a-1), (a-2), and (a-3) and this
 subsection expire September 1, 2015.
 SECTION 9.02.  Section 162.214, Tax Code, is amended by
 adding Subsections (a-1), (a-2), (a-3), and (a-4) to read as
 follows:
 (a-1)  On August 28, 2013, each licensed distributor and
 licensed importer shall remit to the supplier or permissive
 supplier, as applicable, a tax prepayment in an amount equal to 25
 percent of the tax imposed by Section 162.201 for diesel fuel
 removed at the terminal rack during July 2013 by the licensed
 distributor or licensed importer, without accounting for any credit
 or allowance to which the licensed distributor or licensed importer
 is entitled. The supplier or permissive supplier shall remit the
 tax prepayment received under this subsection to the comptroller by
 electronic funds transfer on August 30, 2013, without accounting
 for any credit or allowance to which the supplier or permissive
 supplier is entitled. Subsections (c)-(e) do not apply to the tax
 prepayment under this subsection.
 (a-2)  A licensed distributor or licensed importer may take a
 credit against the amount of tax imposed by Section 162.201 for
 diesel fuel removed at a terminal rack during August 2013 that is
 required to be remitted to the supplier or permissive supplier, as
 applicable, under Subsection (a) in September 2013. The amount of
 the credit is equal to any tax prepayment remitted by the licensed
 distributor or licensed importer as required by Subsection (a-1).
 (a-3)  Subsections (a-1) and (a-2) apply to a supplier or an
 affiliate of a supplier who removes diesel fuel at the terminal rack
 for distribution to the same extent and in the same manner that
 those subsections apply to a licensed distributor or licensed
 importer.
 (a-4)  Subsections (a-1), (a-2), and (a-3) and this
 subsection expire September 1, 2015.
 SECTION 9.03.  Section 162.503, Tax Code, is amended to read
 as follows:
 Sec. 162.503.  ALLOCATION OF GASOLINE TAX. (a)  On or
 before the fifth workday after the end of each month, the
 comptroller, after making all deductions for refund purposes and
 for the amounts allocated under Sections 162.502 and 162.5025,
 shall allocate the net remainder of the taxes collected under
 Subchapter B as follows:
 (1)  one-fourth of the tax shall be deposited to the
 credit of the available school fund;
 (2)  one-half of the tax shall be deposited to the
 credit of the state highway fund for the construction and
 maintenance of the state road system under existing law; and
 (3)  from the remaining one-fourth of the tax the
 comptroller shall:
 (A)  deposit to the credit of the county and road
 district highway fund all the remaining tax receipts until a total
 of $7,300,000 has been credited to the fund each fiscal year; and
 (B)  after the amount required to be deposited to
 the county and road district highway fund has been deposited,
 deposit to the credit of the state highway fund the remainder of the
 one-fourth of the tax, the amount to be provided on the basis of
 allocations made each month of the fiscal year, which sum shall be
 used by the Texas Department of Transportation for the
 construction, improvement, and maintenance of farm-to-market
 roads.
 (b)  Notwithstanding Subsection (a), the comptroller may not
 allocate revenue otherwise required to be allocated under
 Subsection (a) during July and August 2013 before the first workday
 of September 2013. The revenue shall be allocated as otherwise
 provided by Subsection (a) not later than the fifth workday of
 September 2013. This subsection expires September 1, 2015.
 SECTION 9.04.  Section 162.504, Tax Code, is amended to read
 as follows:
 Sec. 162.504.  ALLOCATION OF DIESEL FUEL TAX. (a)  On or
 before the fifth workday after the end of each month, the
 comptroller, after making deductions for refund purposes, for the
 administration and enforcement of this chapter, and for the amounts
 allocated under Section 162.5025, shall allocate the remainder of
 the taxes collected under Subchapter C as follows:
 (1)  one-fourth of the taxes shall be deposited to the
 credit of the available school fund; and
 (2)  three-fourths of the taxes shall be deposited to
 the credit of the state highway fund.
 (b)  Notwithstanding Subsection (a), the comptroller may not
 allocate revenue otherwise required to be allocated under
 Subsection (a) during July and August 2013 before the first workday
 of September 2013. The revenue shall be allocated as otherwise
 provided by Subsection (a) not later than the fifth workday of
 September 2013. This subsection expires September 1, 2015.
 SECTION 9.05.  The expiration of the amendments made to the
 Tax Code in accordance with this article does not affect tax
 liability accruing before the expiration of those amendments. That
 liability continues in effect as if the amendments had not expired,
 and the former law is continued in effect for the collection of
 taxes due and for civil and criminal enforcement of the liability
 for those taxes.
 SECTION 9.06.  This article takes effect October 1, 2011.
 ARTICLE 10.  REMITTANCE OF MIXED BEVERAGE TAXES AND TAXES AND FEES
 ON CERTAIN ALCOHOLIC BEVERAGES
 SECTION 10.01.  Section 34.04, Alcoholic Beverage Code, is
 amended by adding Subsections (c), (d), and (e) to read as follows:
 (c)  In August 2013, a permittee shall remit a tax prepayment
 of taxes due to be remitted in September 2013 that is equal to 25
 percent of the amount the permittee is otherwise required to remit
 during August 2013 under the reporting system prescribed by the
 commission. The prepayment is in addition to the amount the
 permittee is otherwise required to remit during August. The
 permittee shall remit the additional payment in conjunction with
 the report and payment otherwise required during that month.
 (d)  A permittee who remits the additional payment as
 required by Subsection (c) may take a credit in the amount of the
 additional payment against the next payment due under the reporting
 system prescribed by the commission.
 (e)  Subsections (c) and (d) and this subsection expire
 September 1, 2015.
 SECTION 10.02.  Section 48.04, Alcoholic Beverage Code, is
 amended by adding Subsections (c), (d), and (e) to read as follows:
 (c)  In August 2013, a permittee shall remit a tax prepayment
 of taxes due to be remitted in September 2013 that is equal to 25
 percent of the amount the permittee is otherwise required to remit
 during August 2013 under the reporting system prescribed by the
 commission. The prepayment is in addition to the amount the
 permittee is otherwise required to remit during August. The
 permittee shall remit the additional payment in conjunction with
 the report and payment otherwise required during that month.
 (d)  A permittee who remits the additional payment as
 required by Subsection (c) may take a credit in the amount of the
 additional payment against the next payment due under the reporting
 system prescribed by the commission.
 (e)  Subsections (c) and (d) and this subsection expire
 September 1, 2015.
 SECTION 10.03.  Section 201.07, Alcoholic Beverage Code, is
 amended to read as follows:
 Sec. 201.07.  DUE DATE. (a)  The tax on liquor is due and
 payable on the 15th of the month following the first sale, together
 with a report on the tax due.
 (b)  In August 2013, each permittee who is liable for the
 taxes imposed by this subchapter shall remit a tax prepayment of
 taxes due to be remitted in September 2013 that is equal to 25
 percent of the amount the permittee is otherwise required to remit
 during August 2013 under Subsection (a). The prepayment is in
 addition to the amount the permittee is otherwise required to remit
 during August. The permittee shall remit the additional payment in
 conjunction with the report and payment otherwise required during
 that month.
 (c)  A permittee who remits the additional payment as
 required by Subsection (b) may take a credit in the amount of the
 additional payment against the next payment due under Subsection
 (a).
 (d)  Subsections (b) and (c) and this subsection expire
 September 1, 2015.
 SECTION 10.04.  Section 201.43, Alcoholic Beverage Code, is
 amended by amending Subsection (b) and adding Subsections (c), (d),
 and (e) to read as follows:
 (b)  The tax is due and payable on the 15th day of the month
 following the month in which the taxable first sale occurs,
 together with a report on the tax due.
 (c)  In August 2013, each permittee who is liable for the tax
 imposed by this subchapter shall remit a tax prepayment of taxes due
 to be remitted in September 2013 that is equal to 25 percent of the
 amount the permittee is otherwise required to remit during August
 2013 under Subsection (b). The prepayment is in addition to the
 amount the permittee is otherwise required to remit during August.
 The permittee shall remit the additional payment in conjunction
 with the report and payment otherwise required during that month.
 (d)  A permittee who remits the additional payment as
 required by Subsection (c) may take a credit in the amount of the
 additional payment against the next payment due under Subsection
 (b).
 (e)  Subsections (c) and (d) and this subsection expire
 September 1, 2015.
 SECTION 10.05.  Section 203.03, Alcoholic Beverage Code, is
 amended by amending Subsection (b) and adding Subsections (c), (d),
 and (e) to read as follows:
 (b)  The tax is due and payable on the 15th day of the month
 following the month in which the taxable first sale occurs,
 together with a report on the tax due.
 (c)  Each licensee who is liable for the tax imposed by this
 chapter shall remit a tax prepayment of taxes due to be remitted in
 September 2013 that is equal to 25 percent of the amount the
 licensee is otherwise required to remit during August 2013 under
 Subsection (b). The prepayment is in addition to the amount the
 licensee is otherwise required to remit during August. The
 licensee shall remit the additional payment in conjunction with the
 report and payment otherwise required during that month.
 (d)  A licensee who remits the additional payment as required
 by Subsection (c) may take a credit in the amount of the additional
 payment against the next payment due under Subsection (b).
 (e)  Subsections (c) and (d) and this subsection expire
 September 1, 2015.
 SECTION 10.06.  Section 183.023, Tax Code, is amended to
 read as follows:
 Sec. 183.023.  PAYMENT. (a)  The tax due for the preceding
 month shall accompany the return and shall be payable to the state.
 (b)  The comptroller shall deposit the revenue received
 under this section in the general revenue fund.
 (c)  In August 2013, each permittee who is liable for the tax
 imposed by this subchapter shall remit a tax prepayment of taxes due
 to be remitted in September 2013 that is equal to 25 percent of the
 amount the permittee is otherwise required to remit during August
 2013 under Subsection (a). The prepayment is in addition to the
 amount the permittee is otherwise required to remit during August.
 The permittee shall remit the additional payment in conjunction
 with the return and payment otherwise required during that month.
 (d)  A permittee who remits the additional payment as
 required by Subsection (c) may take a credit in the amount of the
 additional payment against the next payment due under Subsection
 (a).
 (e)  Subsections (c) and (d) and this subsection expire
 September 1, 2015.
 SECTION 10.07.  The expiration of the amendments made to the
 Alcoholic Beverage Code and Tax Code in accordance with this
 article does not affect tax liability accruing before the
 expiration of those amendments. That liability continues in effect
 as if the amendments had not expired, and the former law is
 continued in effect for the collection of taxes due and for civil
 and criminal enforcement of the liability for those taxes.
 ARTICLE 11.  CIGARETTE TAX STAMPING ALLOWANCE
 SECTION 11.01.  Subsection (a), Section 154.052, Tax Code,
 is amended to read as follows:
 (a)  A distributor is, subject to the provisions of Section
 154.051, entitled to 2.5 [three] percent of the face value of stamps
 purchased as a stamping allowance for providing the service of
 affixing stamps to cigarette packages, except that an out-of-state
 distributor is entitled to receive only the same percentage of
 stamping allowance as that given to Texas distributors doing
 business in the state of the distributor.
 SECTION 11.02.  This article applies only to cigarette
 stamps purchased on or after the effective date of this article.
 Cigarette stamps purchased before the effective date of this
 article are governed by the law in effect on the date the cigarette
 stamps were purchased, and that law is continued in effect for that
 purpose.
 SECTION 11.03.  This article takes effect October 1, 2011.
 ARTICLE 12.  SALES FOR RESALE
 SECTION 12.01.  Section 151.006, Tax Code, is amended by
 amending Subsection (a) and adding Subsection (c) to read as
 follows:
 (a)  "Sale for resale" means a sale of:
 (1)  tangible personal property or a taxable service to
 a purchaser who acquires the property or service for the purpose of
 reselling it with or as a taxable item as defined by Section 151.010
 in the United States of America or a possession or territory of the
 United States of America or in the United Mexican States in the
 normal course of business in the form or condition in which it is
 acquired or as an attachment to or integral part of other tangible
 personal property or taxable service;
 (2)  tangible personal property to a purchaser for the
 sole purpose of the purchaser's leasing or renting it in the United
 States of America or a possession or territory of the United States
 of America or in the United Mexican States in the normal course of
 business to another person, but not if incidental to the leasing or
 renting of real estate;
 (3)  tangible personal property to a purchaser who
 acquires the property for the purpose of transferring it in the
 United States of America or a possession or territory of the United
 States of America or in the United Mexican States as an integral
 part of a taxable service; [or]
 (4)  a taxable service performed on tangible personal
 property that is held for sale by the purchaser of the taxable
 service; or
 (5)  except as provided by Subsection (c), tangible
 personal property to a purchaser who acquires the property for the
 purpose of transferring it as an integral part of performing a
 contract, or a subcontract of a contract, with the federal
 government only if the purchaser:
 (A)  allocates and bills to the contract the cost
 of the property as a direct or indirect cost; and
 (B)  transfers title to the property to the
 federal government under the contract and applicable federal
 acquisition regulations.
 (c)  A sale for resale does not include the sale of tangible
 personal property or a taxable service to a purchaser who acquires
 the property or service for the purpose of performing a service that
 is not taxed under this chapter, regardless of whether title
 transfers to the service provider's customer, unless the tangible
 personal property or taxable service is purchased for the purpose
 of reselling it to the United States in a contract, or a subcontract
 of a contract, with any branch of the Department of Defense,
 Department of Homeland Security, Department of Energy, National
 Aeronautics and Space Administration, Central Intelligence Agency,
 National Security Agency, National Oceanic and Atmospheric
 Administration, or National Reconnaissance Office to the extent
 allocated and billed to the contract with the federal government.
 SECTION 12.02.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 immediate effect, this article takes effect October 1, 2011.
 ARTICLE 13.  REMITTANCE OF SALES AND USE TAXES
 SECTION 13.01.  Section 151.401, Tax Code, is amended by
 adding Subsections (c), (d), and (e) to read as follows:
 (c)  In August 2013, a taxpayer who is required to pay the
 taxes imposed by this chapter on or before the 20th day of that
 month under Subsection (a), who pays the taxes imposed by this
 chapter by electronic funds transfer, and who does not prepay as
 provided by Section 151.424 shall remit to the comptroller a tax
 prepayment that is equal to 25 percent of the amount the taxpayer is
 otherwise required to remit during August 2013 under Subsection
 (a).  The prepayment is in addition to the amount the taxpayer is
 otherwise required to remit during August. The taxpayer shall
 remit the additional payment in conjunction with the payment
 otherwise required during that month. Section 151.424 does not
 apply with respect to the additional payment required by this
 subsection.
 (d)  A taxpayer who remits the additional payment as required
 by Subsection (c) may take a credit in the amount of the additional
 payment against the next payment due under Subsection (a).
 (e)  Subsections (c) and (d) and this subsection expire
 September 1, 2015.
 SECTION 13.02.  Section 151.402, Tax Code, is amended to
 read as follows:
 Sec. 151.402.  TAX REPORT DATES. (a)  A [Except as provided
 by Subsection (b) of this section, a] tax report required by this
 chapter for a reporting period is due on the same date that the tax
 payment for the period is due as provided by Section 151.401.
 (b)  A taxpayer may report a credit in the amount of any tax
 prepayment remitted to the comptroller as required by Section
 151.401(c) on the tax report required by this chapter that is
 otherwise due in September 2013 [for taxes required by Section
 151.401(a) to be paid on or before August 20 is due on or before the
 20th day of the following month]. This subsection expires
 September 1, 2015.
 SECTION 13.03.  The expiration of the amendments made to the
 Tax Code in accordance with this article does not affect tax
 liability accruing before the expiration of those amendments. That
 liability continues in effect as if the amendments had not expired,
 and the former law is continued in effect for the collection of
 taxes due and for civil and criminal enforcement of the liability
 for those taxes.
 ARTICLE 14.  PENALTIES FOR FAILURE TO REPORT OR REMIT CERTAIN TAXES
 OR FEES
 SECTION 14.01.  Subsection (b), Section 111.00455, Tax Code,
 is amended to read as follows:
 (b)  The following are not contested cases under Subsection
 (a) and Section 2003.101, Government Code:
 (1)  a show cause hearing or any hearing not related to
 the collection, receipt, administration, or enforcement of the
 amount of a tax or fee imposed, or the penalty or interest
 associated with that amount, except for a hearing under Section
 151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;
 (2)  a property value study hearing under Subchapter M,
 Chapter 403, Government Code;
 (3)  a hearing in which the issue relates to:
 (A)  Chapters 72-75, Property Code;
 (B)  forfeiture of a right to do business;
 (C)  a certificate of authority;
 (D)  articles of incorporation;
 (E)  a penalty imposed under Section 151.703(d)
 [151.7031];
 (F)  the refusal or failure to settle under
 Section 111.101; or
 (G)  a request for or revocation of an exemption
 from taxation; and
 (4)  any other hearing not related to the collection,
 receipt, administration, or enforcement of the amount of a tax or
 fee imposed, or the penalty or interest associated with that
 amount.
 SECTION 14.02.  Subsection (a), Section 151.468, Tax Code,
 as effective September 1, 2011, is amended to read as follows:
 (a)  If a person fails to file a report required by this
 subchapter or fails to file a complete report, the comptroller may
 impose a civil or criminal penalty, or both, under Section
 151.703(d) [151.7031] or 151.709.
 SECTION 14.03.  Section 151.703, Tax Code, is amended by
 adding Subsection (d) to read as follows:
 (d)  In addition to any other penalty authorized by this
 section, a person who fails to file a report as required by this
 chapter shall pay a penalty of $50. The penalty provided by this
 subsection is assessed without regard to whether the taxpayer
 subsequently files the report or whether any taxes were due from the
 taxpayer for the reporting period under the required report.
 SECTION 14.04.  Section 152.045, Tax Code, is amended by
 adding Subsection (d) to read as follows:
 (d)  In addition to any other penalty provided by law, the
 owner of a motor vehicle subject to the tax on gross rental receipts
 who is required to file a report as provided by this chapter and who
 fails to timely file the report shall pay a penalty of $50. The
 penalty provided by this subsection is assessed without regard to
 whether the taxpayer subsequently files the report or whether any
 taxes were due from the taxpayer for the reporting period under the
 required report.
 SECTION 14.05.  Section 152.047, Tax Code, is amended by
 adding Subsection (j) to read as follows:
 (j)  In addition to any other penalty provided by law, the
 seller of a motor vehicle sold in a seller-financed sale who is
 required to file a report as provided by this chapter and who fails
 to timely file the report shall pay a penalty of $50. The penalty
 provided by this subsection is assessed without regard to whether
 the taxpayer subsequently files the report or whether any taxes
 were due from the taxpayer for the reporting period under the
 required report.
 SECTION 14.06.  Section 156.202, Tax Code, is amended by
 amending Subsection (c) and adding Subsection (d) to read as
 follows:
 (c)  The minimum penalty under Subsections (a) and (b) [this
 section] is $1.
 (d)  In addition to any other penalty authorized by this
 section, a person who fails to file a report as required by this
 chapter shall pay a penalty of $50. The penalty provided by this
 subsection is assessed without regard to whether the taxpayer
 subsequently files the report or whether any taxes were due from the
 taxpayer for the reporting period under the required report.
 SECTION 14.07.  Section 162.401, Tax Code, is amended by
 adding Subsection (d) to read as follows:
 (d)  In addition to any other penalty authorized by this
 section, a person who fails to file a report as required by this
 chapter shall pay a penalty of $50. The penalty provided by this
 subsection is assessed without regard to whether the taxpayer
 subsequently files the report or whether any taxes were due from the
 taxpayer for the reporting period under the required report.
 SECTION 14.08.  Section 171.362, Tax Code, is amended by
 amending Subsection (c) and adding Subsection (f) to read as
 follows:
 (c)  The minimum penalty under Subsections (a) and (b) [this
 section] is $1.
 (f)  In addition to any other penalty authorized by this
 section, a taxable entity who fails to file a report as required by
 this chapter shall pay a penalty of $50. The penalty provided by
 this subsection is assessed without regard to whether the taxable
 entity subsequently files the report or whether any taxes were due
 from the taxable entity for the reporting period under the required
 report.
 SECTION 14.09.  Subchapter B, Chapter 183, Tax Code, is
 amended by adding Section 183.024 to read as follows:
 Sec. 183.024.  FAILURE TO PAY TAX OR FILE REPORT. (a)  A
 permittee who fails to file a report as required by this chapter or
 who fails to pay a tax imposed by this chapter when due shall pay
 five percent of the amount due as a penalty, and if the permittee
 fails to file the report or pay the tax within 30 days after the day
 the tax or report is due, the permittee shall pay an additional five
 percent of the amount due as an additional penalty.
 (b)  The minimum penalty under Subsection (a) is $1.
 (c)  A delinquent tax draws interest beginning 60 days from
 the due date.
 (d)  In addition to any other penalty authorized by this
 section, a permittee who fails to file a report as required by this
 chapter shall pay a penalty of $50. The penalty provided by this
 subsection is assessed without regard to whether the permittee
 subsequently files the report or whether any taxes were due from the
 permittee for the reporting period under the required report.
 SECTION 14.10.  Section 771.0712, Health and Safety Code, is
 amended by adding Subsections (c) and (d) to read as follows:
 (c)  A seller who fails to file a report or remit a fee
 collected or payable as provided by this section and comptroller
 rules shall pay five percent of the amount due and payable as a
 penalty, and if the seller fails to file the report or remit the fee
 within 30 days after the day the fee or report is due, the seller
 shall pay an additional five percent of the amount due and payable
 as an additional penalty.
 (d)  In addition to any other penalty authorized by this
 section, a seller who fails to file a report as provided by this
 section shall pay a penalty of $50. The penalty provided by this
 subsection is assessed without regard to whether the seller
 subsequently files the report or whether any taxes were due from the
 seller for the reporting period under the required report.
 SECTION 14.11.  Section 151.7031, Tax Code, is repealed.
 SECTION 14.12.  The change in law made by this article
 applies only to a report due or a tax or fee due and payable on or
 after the effective date of this article. A report due or a tax or
 fee due and payable before the effective date of this article is
 governed by the law in effect at that time, and that law is
 continued in effect for that purpose.
 SECTION 14.13.  This article takes effect October 1, 2011.
 ARTICLE 15.  FISCAL MATTERS RELATED TO VOTER REGISTRATION
 SECTION 15.01.  Subsections (b), (c), and (d), Section
 18.065, Election Code, are amended to read as follows:
 (b)  On determining that a registrar is not in substantial
 compliance, the secretary shall deliver written notice of the
 noncompliance to[:
 [(1)]  the registrar and include[, including] in the
 notice a description of the violation and an explanation of the
 action necessary for substantial compliance and of the consequences
 of noncompliance[; and
 [(2)     the comptroller of public accounts, including in
 the notice the identity of the noncomplying registrar].
 (c)  On determining that a noncomplying registrar has
 corrected the violation and is in substantial compliance, the
 secretary shall deliver written notice to the registrar [and to the
 comptroller] that the registrar is in substantial compliance.
 (d)  [The comptroller shall retain a notice received under
 this section on file until July 1 following the voting year in which
 it is received.] The secretary shall retain a copy of each notice
 the secretary delivers under this section for two years after the
 date the notice is delivered.
 SECTION 15.02.  Subsection (a), Section 19.001, Election
 Code, is amended to read as follows:
 (a)  Before May 15 of each year, the registrar shall prepare
 and submit to the secretary of state [comptroller of public
 accounts] a statement containing:
 (1)  the total number of initial registrations for the
 previous voting year;
 (2)  the total number of registrations canceled under
 Sections 16.031(a)(1), 16.033, and 16.0332 for the previous voting
 year; and
 (3)  the total number of registrations for which
 information was updated for the previous voting year.
 SECTION 15.03.  The heading to Section 19.002, Election
 Code, is amended to read as follows:
 Sec. 19.002.  PAYMENTS [ISSUANCE OF WARRANTS BY
 COMPTROLLER].
 SECTION 15.04.  Subsection (b), Section 19.002, Election
 Code, is amended to read as follows:
 (b)  After June 1 of each year, the secretary of state
 [comptroller of public accounts] shall make payments [issue
 warrants] pursuant to vouchers submitted by the registrar and
 approved by the secretary of state in amounts that in the aggregate
 do not exceed the registrar's entitlement. The secretary of state
 shall prescribe the procedures necessary to implement this
 subsection.
 SECTION 15.05.  Subsection (d), Section 19.002, Election
 Code, as effective September 1, 2011, is amended to read as
 follows:
 (d)  The secretary of state [comptroller] may not make a
 payment under Subsection (b) [issue a warrant] if on June 1 of the
 year in which the payment [warrant] is to be made [issued the most
 recent notice received by the comptroller from the secretary of
 state under Section 18.065 indicates that] the registrar is not in
 substantial compliance with Section 15.083, 16.032, or 18.065 or
 with rules implementing the registration service program.
 SECTION 15.06.  The heading to Section 19.0025, Election
 Code, is amended to read as follows:
 Sec. 19.0025.  ELECTRONIC ADMINISTRATION OF VOUCHERS AND
 PAYMENTS [WARRANTS].
 SECTION 15.07.  Subsection (a), Section 19.0025, Election
 Code, is amended to read as follows:
 (a)  The secretary of state shall establish and maintain an
 online electronic system for administering vouchers submitted and
 payments made [warrants issued] under Section 19.002.
 SECTION 15.08.  Subsection (c), Section 19.002, Election
 Code, is repealed.
 ARTICLE 16.  CERTAIN POWERS AND DUTIES OF THE COMPTROLLER OF
 PUBLIC ACCOUNTS
 SECTION 16.01.  Subsection (d), Section 403.0551,
 Government Code, is amended to read as follows:
 (d)  This section does not authorize the comptroller to
 deduct the amount of a state employee's indebtedness to a state
 agency from any amount of compensation owed by the agency to the
 employee, the employee's successor, or the assignee of the employee
 or successor. In this subsection, "compensation" has the meaning
 assigned by Section 403.055 and ["compensation,"] "indebtedness,"
 "state agency," "state employee," and "successor" have the meanings
 assigned by Section 666.001.
 SECTION 16.02.  Subsection (h), Section 404.022, Government
 Code, is amended to read as follows:
 (h)  The comptroller may execute a simplified version of a
 depository agreement with an eligible institution desiring to hold
 [$98,000 or less in] state deposits that are fully insured by the
 Federal Deposit Insurance Corporation or the National Credit Union
 Share Insurance Fund.
 SECTION 16.03.  Subsection (d), Section 403.0551,
 Government Code, as amended by this article, applies to a deduction
 made on or after the effective date of this Act for an indebtedness
 to a state agency regardless of:
 (1)  the date the indebtedness accrued; or
 (2)  the dates of the pay period for which the
 compensation from which the indebtedness is deducted is earned.
 ARTICLE 17.  PREPARATION AND PUBLICATION OF CERTAIN REPORTS AND
 OTHER MATERIALS
 SECTION 17.01.  Subsection (c), Section 61.539, Education
 Code, is amended to read as follows:
 (c)  As soon as practicable after each state fiscal year, the
 board [comptroller] shall prepare a report for that fiscal year of
 the number of students registered in a medical branch, school, or
 college, the total amount of tuition charges collected by each
 institution, the total amount transferred to the comptroller under
 this section, and the total amount available in the physician
 education loan repayment program account for the repayment of
 student loans of physicians under this subchapter.  The board
 [comptroller] shall deliver a copy of the report to [the board and
 to] the governor, lieutenant governor, and speaker of the house of
 representatives not later than January 1 following the end of the
 fiscal year covered by the report.
 SECTION 17.02.  Subsection (c), Section 5.05, Tax Code, is
 amended to read as follows:
 (c)  The comptroller shall electronically publish all
 materials under this section [provide without charge one copy of
 all materials to officials of local government who are responsible]
 for administering the property tax system. [If a local government
 official requests more than one copy, the comptroller may charge a
 reasonable fee to offset the costs of printing and distributing the
 materials.] The comptroller shall make the materials available to
 local governmental officials and members of the public but may
 charge a reasonable fee to offset the costs of preparing, printing,
 and distributing the materials.
 SECTION 17.03.  Section 5.06, Tax Code, is amended to read as
 follows:
 Sec. 5.06.  EXPLANATION OF TAXPAYER REMEDIES. [(a)]  The
 comptroller shall prepare and electronically publish a pamphlet
 explaining the remedies available to dissatisfied taxpayers and the
 procedures to be followed in seeking remedial action. The
 comptroller shall include in the pamphlet advice on preparing and
 presenting a protest.
 [(b)     The comptroller shall provide without charge a
 reasonable number of copies of the pamphlet to any person on
 request. The comptroller may charge a person who requests multiple
 copies of the pamphlet a reasonable fee to offset the costs of
 printing and distributing those copies. The comptroller at its
 discretion shall determine the number of copies that a person may
 receive without charge.]
 SECTION 17.04.  Section 5.09, Tax Code, is amended to read as
 follows:
 Sec. 5.09.  BIENNIAL [ANNUAL] REPORTS. (a)  The comptroller
 shall prepare a biennial [publish an annual] report of [the
 operations of the appraisal districts. The report shall include
 for each appraisal district, each county, and each school district
 and may include for other taxing units] the total appraised
 values[, assessed values,] and taxable values of taxable property
 by category [class of property, the assessment ratio,] and the tax
 rates of each county, municipality, and school district in effect
 for the two years preceding the year in which the report is prepared
 [rate].
 (b)  Not later than December 31 of each even-numbered year,
 the [The] comptroller shall:
 (1)  electronically publish on the comptroller's
 Internet website the [deliver a copy of each annual] report
 required by [published under] Subsection (a); and
 (2)  notify [of this section to] the governor, the
 lieutenant governor, and each member of the legislature that the
 report is available on the website.
 SECTION 17.05.  The following are repealed:
 (1)  Section 403.030 and Subsection (e), Section
 552.143, Government Code; and
 (2)  Subchapter F, Chapter 379A, Local Government Code.
 ARTICLE 18.  SURPLUS LINES AND INDEPENDENTLY PROCURED INSURANCE
 SECTION 18.01.  Subsection (b), Section 101.053, Insurance
 Code, is amended to read as follows:
 (b)  Sections 101.051 and 101.052 do not apply to:
 (1)  the lawful transaction of surplus lines insurance
 under Chapter 981;
 (2)  the lawful transaction of reinsurance by insurers;
 (3)  a transaction in this state that:
 (A)  involves a policy that:
 (i)  is lawfully solicited, written, and
 delivered outside this state; and
 (ii)  covers, at the time the policy is
 issued, only subjects of insurance that are not resident, located,
 or expressly to be performed in this state; and
 (B)  takes place after the policy is issued;
 (4)  a transaction:
 (A)  that involves an insurance contract
 independently procured by the insured from an insurance company not
 authorized to do insurance business in this state through
 negotiations occurring entirely outside this state;
 (B)  that is reported; and
 (C)  on which premium tax, if applicable, is paid
 in accordance with Chapter 226;
 (5)  a transaction in this state that:
 (A)  involves group life, health, or accident
 insurance, other than credit insurance, and group annuities in
 which the master policy for the group was lawfully issued and
 delivered in a state in which the insurer or person was authorized
 to do insurance business; and
 (B)  is authorized by a statute of this state;
 (6)  an activity in this state by or on the sole behalf
 of a nonadmitted captive insurance company that insures solely:
 (A)  directors' and officers' liability insurance
 for the directors and officers of the company's parent and
 affiliated companies;
 (B)  the risks of the company's parent and
 affiliated companies; or
 (C)  both the individuals and entities described
 by Paragraphs (A) and (B);
 (7)  the issuance of a qualified charitable gift
 annuity under Chapter 102; or
 (8)  a lawful transaction by a servicing company of the
 Texas workers' compensation employers' rejected risk fund under
 Section 4.08, Article 5.76-2, as that article existed before its
 repeal.
 SECTION 18.02.  Section 225.001, Insurance Code, is amended
 to read as follows:
 Sec. 225.001.  DEFINITIONS [DEFINITION]. In this chapter:
 (1)  "Affiliate" means, with respect to an insured, a
 person or entity that controls, is controlled by, or is under common
 control with the insured.
 (2)  "Affiliated group" means a group of entities whose
 members are all affiliated.
 (3)  "Control" means, with respect to determining the
 home state of an affiliated entity:
 (A)  to directly or indirectly, acting through one
 or more persons, own, control, or hold the power to vote at least 25
 percent of any class of voting security of the affiliated entity; or
 (B)  to control in any manner the election of the
 majority of directors or trustees of the affiliated entity.
 (4)  "Home state" means:
 (A)  for an insured that is not an affiliated
 group described by Paragraph (B):
 (i)  the state in which the insured
 maintains the insured's principal residence, if the insured is an
 individual;
 (ii)  the state in which an insured that is
 not an individual maintains its principal place of business; or
 (iii)  if 100 percent of the insured risk is
 located outside of the state in which the insured maintains the
 insured's principal residence or maintains the insured's principal
 place of business, as applicable, the state to which the largest
 percentage of the insured's taxable premium for the insurance
 contract that covers the risk is allocated; or
 (B)  for an affiliated group with respect to which
 more than one member is a named insured on a single insurance
 contract subject to this chapter, the home state of the member, as
 determined under Paragraph (A), that has the largest percentage of
 premium attributed to it under the insurance contract.
 (5)  "Premium" means any payment made in consideration
 for insurance and[, "premium"] includes:
 (A) [(1)]  a premium;
 (B)  premium deposits;
 (C) [(2)]  a membership fee;
 (D)  a registration fee;
 (E) [(3)]  an assessment;
 (F) [(4)]  dues; and
 (G) [(5)]  any other compensation given in
 consideration for surplus lines insurance.
 SECTION 18.03.  Section 225.002, Insurance Code, is amended
 to read as follows:
 Sec. 225.002.  APPLICABILITY OF CHAPTER. This chapter
 applies to a surplus lines agent who collects gross premiums for
 surplus lines insurance for any risk in which this state is the home
 state of the insured.
 SECTION 18.04.  Section 225.004, Insurance Code, is amended
 by adding Subsections (a-1) and (f) and amending Subsections (b),
 (c), and (e) to read as follows:
 (a-1)  Consistent with 15 U.S.C. Section 8201 et seq., this
 state may not impose a premium tax on nonadmitted insurance
 premiums other than premiums paid for insurance in which this state
 is the home state of the insured.
 (b)  Taxable gross premiums under this section are based on
 gross premiums written or received for surplus lines insurance
 placed through an eligible surplus lines insurer during a calendar
 year. Notwithstanding the tax basis described by this subsection,
 the comptroller by rule may establish an alternate basis for
 taxation for multistate and single-state policies for the purpose
 of achieving uniformity.
 (c)  If a surplus lines insurance policy covers risks or
 exposures only partially located in this state, and this state has
 not entered into a cooperative agreement, reciprocal agreement, or
 compact with another state for the collection of surplus lines tax
 as authorized by Chapter 229, the tax is computed on the entire
 policy [portion of the] premium for any policy in which this state
 is the home state of the insured [that is properly allocated to a
 risk or exposure located in this state].
 (e)  Premiums [The following premiums are not taxable in
 this state:
 [(1)     premiums properly allocated to another state that
 are specifically exempt from taxation in that state; and
 [(2)  premiums] on risks or exposures that are properly
 allocated to federal or international waters or are under the
 jurisdiction of a foreign government are not taxable in this state.
 (f)  If this state enters a cooperative agreement,
 reciprocal agreement, or compact with another state for the
 allocation of surplus lines tax as authorized by Chapter 229, taxes
 due on multistate policies shall be allocated and reported in
 accordance with the agreement or compact.
 SECTION 18.05.  Section 225.005, Insurance Code, is amended
 to read as follows:
 Sec. 225.005.  TAX EXCLUSIVE. The tax imposed by this
 chapter is a transaction tax collected by the surplus lines agent of
 record and is in lieu of any [all] other transaction [insurance]
 taxes on these premiums.
 SECTION 18.06.  Section 225.009, Insurance Code, is amended
 by adding Subsection (d) to read as follows:
 (d)  Notwithstanding Subsections (a), (b), and (c), if this
 state enters a cooperative agreement, reciprocal agreement, or
 compact with another state for the allocation of surplus lines tax
 as authorized by Chapter 229, the tax shall be allocated and
 reported in accordance with the terms of the agreement or compact.
 SECTION 18.07.  Section 226.051, Insurance Code, is amended
 to read as follows:
 Sec. 226.051.  DEFINITIONS [DEFINITION].  In this
 subchapter:
 (1)  "Affiliate" means, with respect to an insured, a
 person or entity that controls, is controlled by, or is under common
 control with the insured.
 (2)  "Affiliated group" means a group of entities whose
 members are all affiliated.
 (3)  "Control" means, with respect to determining the
 home state of an affiliated entity:
 (A)  to directly or indirectly, acting through one
 or more persons, own, control, or hold the power to vote at least 25
 percent of any class of voting security of the affiliated entity; or
 (B)  to control in any manner the election of the
 majority of directors or trustees of the affiliated entity.
 (4)  "Home state" means:
 (A)  for an insured that is not an affiliated
 group described by Paragraph (B):
 (i)  the state in which the insured
 maintains the insured's principal residence, if the insured is an
 individual;
 (ii)  the state in which an insured that is
 not an individual maintains its principal place of business; or
 (iii)  if 100 percent of the insured risk is
 located outside of the state in which the insured maintains the
 insured's principal residence or maintains the insured's principal
 place of business, as applicable, the state to which the largest
 percentage of the insured's taxable premium for the insurance
 contract that covers the risk is allocated; or
 (B)  for an affiliated group with respect to which
 more than one member is a named insured on a single insurance
 contract subject to this chapter, the home state of the member, as
 determined under Paragraph (A), that has the largest percentage of
 premium attributed to it under the insurance contract.
 (5)  "Independently procured insurance" means
 insurance procured directly by an insured from a nonadmitted
 insurer.
 (6)  "Premium" means any payment made in consideration
 for insurance and[, "premium"] includes [any consideration for
 insurance, including]:
 (A) [(1)]  a premium;
 (B)  premium deposits;
 (C) [(2)]  a membership fee; [or]
 (D)  a registration fee;
 (E)  an assessment;
 (F) [(3)]  dues; and
 (G)  any other compensation given in
 consideration for insurance.
 SECTION 18.08.  Section 226.052, Insurance Code, is amended
 to read as follows:
 Sec. 226.052.  APPLICABILITY OF SUBCHAPTER. This subchapter
 applies to an insured who procures an independently procured
 insurance contract for any risk in which this state is the home
 state of the insured [in accordance with Section 101.053(b)(4)].
 SECTION 18.09.  Section 226.053, Insurance Code, is amended
 by amending Subsections (a) and (b) and adding Subsection (d) to
 read as follows:
 (a)  A tax is imposed on each insured at the rate of 4.85
 percent of the premium paid for the insurance contract procured in
 accordance with Section 226.052 [101.053(b)(4)].
 (b)  If an independently procured insurance policy
 [contract] covers risks or exposures only partially located in this
 state and this state has not joined a cooperative agreement,
 reciprocal agreement, or compact with another state for the
 allocation of nonadmitted insurance taxes as authorized by Chapter
 229, the tax is computed on the entire policy [portion of the]
 premium for any policy in which this state is the home state of the
 insured [that is properly allocated to a risk or exposure located in
 this state].
 (d)  If this state enters into a cooperative agreement,
 reciprocal agreement, or compact with another state for the
 allocation of nonadmitted insurance taxes as authorized by Chapter
 229, the tax due on multistate policies shall be allocated and
 reported in accordance with the agreement or compact.
 SECTION 18.10.  Section 981.008, Insurance Code, is amended
 to read as follows:
 Sec. 981.008.  SURPLUS LINES INSURANCE PREMIUM TAX. The
 premiums charged for surplus lines insurance are subject to the
 premium tax, if applicable, imposed under Chapter 225.
 SECTION 18.11.  The following provisions are repealed:
 (1)  Subsections (d) and (d-1), Section 225.004,
 Insurance Code; and
 (2)  Subsection (b-1), Section 226.053, Insurance
 Code.
 SECTION 18.12.  The changes in law made by this article to
 Chapters 225 and 226, Insurance Code, apply only to an insurance
 policy that is delivered, issued for delivery, or renewed on or
 after July 21, 2011.  A policy that is delivered, issued for
 delivery, or renewed before July 21, 2011, is governed by the law as
 it existed immediately before the effective date of this article,
 and that law is continued in effect for that purpose.
 SECTION 18.13.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 immediate effect, this article takes effect on the 91st day after
 the last day of the legislative session.
 ARTICLE 19.  FISCAL MATTERS CONCERNING OIL AND GAS REGULATION
 SECTION 19.01.  Subsection (c), Section 81.0521, Natural
 Resources Code, is amended to read as follows:
 (c)  Two-thirds of the proceeds from this fee, excluding
 [including] any penalties collected in connection with the fee,
 shall be deposited to the oil and gas regulation and [oil-field]
 cleanup fund as provided by Section 81.067 [91.111].
 SECTION 19.02.  Subchapter C, Chapter 81, Natural Resources
 Code, is amended by adding Sections 81.067 through 81.070 to read as
 follows:
 Sec. 81.067.  OIL AND GAS REGULATION AND CLEANUP FUND.
 (a)  The oil and gas regulation and cleanup fund is created as an
 account in the general revenue fund of the state treasury.
 (b)  The commission shall certify to the comptroller the date
 on which the balance in the fund equals or exceeds $20 million. The
 oil-field cleanup regulatory fees on oil and gas shall not be
 collected or required to be paid on or after the first day of the
 second month following the certification, except that the
 comptroller shall resume collecting the fees on receipt of a
 commission certification that the fund has fallen below $10
 million. The comptroller shall continue collecting the fees until
 collections are again suspended in the manner provided by this
 subsection.
 (c)  The fund consists of:
 (1)  proceeds from bonds and other financial security
 required by this chapter and benefits under well-specific plugging
 insurance policies described by Section 91.104(c) that are paid to
 the state as contingent beneficiary of the policies, subject to the
 refund provisions of Section 91.1091, if applicable;
 (2)  private contributions, including contributions
 made under Section 89.084;
 (3)  expenses collected under Section 89.083;
 (4)  fees imposed under Section 85.2021;
 (5)  costs recovered under Section 91.457 or 91.459;
 (6)  proceeds collected under Sections 89.085 and
 91.115;
 (7)  interest earned on the funds deposited in the
 fund;
 (8)  oil and gas waste hauler permit application fees
 collected under Section 29.015, Water Code;
 (9)  costs recovered under Section 91.113(f);
 (10)  hazardous oil and gas waste generation fees
 collected under Section 91.605;
 (11)  oil-field cleanup regulatory fees on oil
 collected under Section 81.116;
 (12)  oil-field cleanup regulatory fees on gas
 collected under Section 81.117;
 (13)  fees for a reissued certificate collected under
 Section 91.707;
 (14)  fees collected under Section 91.1013;
 (15)  fees collected under Section 89.088;
 (16)  fees collected under Section 91.142;
 (17)  fees collected under Section 91.654;
 (18)  costs recovered under Sections 91.656 and 91.657;
 (19)  two-thirds of the fees collected under Section
 81.0521;
 (20)  fees collected under Sections 89.024 and 89.026;
 (21)  legislative appropriations; and
 (22)  any surcharges collected under Section 81.070.
 Sec. 81.068.  PURPOSE OF OIL AND GAS REGULATION AND CLEANUP
 FUND. Money in the oil and gas regulation and cleanup fund may be
 used by the commission or its employees or agents for any purpose
 related to the regulation of oil and gas development, including oil
 and gas monitoring and inspections, oil and gas remediation, oil
 and gas well plugging, public information and services related to
 those activities, and administrative costs and state benefits for
 personnel involved in those activities.
 Sec. 81.069.  REPORTING ON PROGRESS IN MEETING PERFORMANCE
 GOALS FOR THE OIL AND GAS REGULATION AND CLEANUP FUND. (a)  The
 commission, through the legislative appropriations request
 process, shall establish specific performance goals for the oil and
 gas regulation and cleanup fund for the next biennium, including
 goals for each quarter of each state fiscal year of the biennium for
 the number of:
 (1)  orphaned wells to be plugged with state-managed
 funds;
 (2)  abandoned sites to be investigated, assessed, or
 cleaned up with state funds; and
 (3)  surface locations to be remediated.
 (b)  The commission shall provide quarterly reports to the
 Legislative Budget Board that include:
 (1)  the following information with respect to the
 period since the last report was provided as well as cumulatively:
 (A)  the amount of money deposited in the oil and
 gas regulation and cleanup fund;
 (B)  the amount of money spent from the fund for
 the purposes described by Subsection (a);
 (C)  the balance of the fund; and
 (D)  the commission's progress in meeting the
 quarterly performance goals established under Subsection (a) and,
 if the number of orphaned wells plugged with state-managed funds,
 abandoned sites investigated, assessed, or cleaned up with state
 funds, or surface locations remediated is at least five percent
 less than the number projected in the applicable goal established
 under Subsection (a), an explanation of the reason for the
 variance; and
 (2)  any additional information or data requested in
 writing by the Legislative Budget Board.
 (c)  The commission shall submit to the legislature and make
 available to the public, annually, a report that reviews the extent
 to which money provided under Section 81.067 has enabled the
 commission to better protect the environment through oil-field
 cleanup activities. The report must include:
 (1)  the performance goals established under
 Subsection (a) for that state fiscal year, the commission's
 progress in meeting those performance goals, and, if the number of
 orphaned wells plugged with state-managed funds, abandoned sites
 investigated, assessed, or cleaned up with state funds, or surface
 locations remediated is at least five percent less than the number
 projected in the applicable goal established under Subsection (a),
 an explanation of the reason for the variance;
 (2)  the number of orphaned wells plugged with
 state-managed funds, by region;
 (3)  the number of wells orphaned, by region;
 (4)  the number of inactive wells not currently in
 compliance with commission rules, by region;
 (5)  the status of enforcement proceedings for all
 wells in violation of commission rules and the period during which
 the wells have been in violation, by region in which the wells are
 located;
 (6)  the number of surface locations remediated, by
 region;
 (7)  a detailed accounting of expenditures of money in
 the fund for oil-field cleanup activities, including expenditures
 for plugging of orphaned wells, investigation, assessment, and
 cleaning up of abandoned sites, and remediation of surface
 locations;
 (8)  the method by which the commission sets priorities
 by which it determines the order in which orphaned wells are
 plugged;
 (9)  a projection of the amount of money needed for the
 next biennium for plugging orphaned wells, investigating,
 assessing, and cleaning up abandoned sites, and remediating surface
 locations; and
 (10)  the number of sites successfully remediated under
 the voluntary cleanup program under Subchapter O, Chapter 91, by
 region.
 Sec. 81.070.  ESTABLISHMENT OF SURCHARGES ON FEES.
 (a)  Except as provided by Subsection (b), the commission by rule
 shall provide for the imposition of reasonable surcharges as
 necessary on fees imposed by the commission that are required to be
 deposited to the credit of the oil and gas regulation and cleanup
 fund as provided by Section 81.067 in amounts sufficient to enable
 the commission to recover the costs of performing the functions
 specified by Section 81.068 from those fees and surcharges.
 (b)  The commission may not impose a surcharge on an
 oil-field cleanup regulatory fee on oil collected under Section
 81.116 or an oil-field cleanup regulatory fee on gas collected
 under Section 81.117.
 (c)  The commission by rule shall establish a methodology for
 determining the amount of a surcharge that takes into account:
 (1)  the time required for regulatory work associated
 with the activity in connection with which the surcharge is
 imposed;
 (2)  the number of individuals or entities from which
 the commission's costs may be recovered;
 (3)  the effect of the surcharge on operators of all
 sizes, as measured by the number of oil or gas wells operated;
 (4)  the balance in the oil and gas regulation and
 cleanup fund; and
 (5)  any other factors the commission determines to be
 important to the fair and equitable imposition of the surcharge.
 (d)  The commission shall collect a surcharge on a fee at the
 time the fee is collected.
 (e)  A surcharge collected under this section shall be
 deposited to the credit of the oil and gas regulation and cleanup
 fund as provided by Section 81.067.
 (f)  A surcharge collected under this section shall not
 exceed an amount equal to 185 percent of the fee on which it is
 imposed.
 SECTION 19.03.  Section 81.115, Natural Resources Code, is
 amended to read as follows:
 Sec. 81.115.  APPROPRIATIONS [PAYMENTS] TO COMMISSION FOR
 OIL AND GAS REGULATION AND CLEANUP PURPOSES [DIVISION]. Money
 appropriated to the [oil and gas division of the] commission under
 the General Appropriations Act for the purposes described by
 Section 81.068 shall be paid from the oil and gas regulation and
 cleanup fund or other fund indicated by the appropriation [General
 Revenue Fund].
 SECTION 19.04.  Subsections (d) and (e), Section 81.116,
 Natural Resources Code, are amended to read as follows:
 (d)  The comptroller shall suspend collection of the fee in
 the manner provided by Section 81.067 [91.111].  The exemptions and
 reductions set out in Sections 202.052, 202.054, 202.056, 202.057,
 202.059, and 202.060, Tax Code, do not affect the fee imposed by
 this section.
 (e)  Proceeds from the fee, excluding [including] any
 penalties collected in connection with the fee, shall be deposited
 to the oil and gas regulation and [oil-field] cleanup fund as
 provided by Section 81.067 [91.111 of this code].
 SECTION 19.05.  Subsections (d) and (e), Section 81.117,
 Natural Resources Code, are amended to read as follows:
 (d)  The comptroller shall suspend collection of the fee in
 the manner provided by Section 81.067 [91.111].  The exemptions and
 reductions set out in Sections 201.053, 201.057, 201.058, and
 202.060, Tax Code, do not affect the fee imposed by this section.
 (e)  Proceeds from the fee, excluding [including] any
 penalties collected in connection with the fee, shall be deposited
 to the oil and gas regulation and [oil-field] cleanup fund as
 provided by Section 81.067 [91.111 of this code].
 SECTION 19.06.  Subsection (d), Section 85.2021, Natural
 Resources Code, is amended to read as follows:
 (d)  All fees collected under this section shall be deposited
 in the oil and gas regulation and [state oil-field] cleanup fund.
 SECTION 19.07.  Subsection (d), Section 89.024, Natural
 Resources Code, is amended to read as follows:
 (d)  An operator who files an abeyance of plugging report
 must pay an annual fee of $100 for each well covered by the report.
 A fee collected under this section shall be deposited in the oil and
 gas regulation and [oil-field] cleanup fund.
 SECTION 19.08.  Subsection (d), Section 89.026, Natural
 Resources Code, is amended to read as follows:
 (d)  An operator who files documentation described by
 Subsection (a) must pay an annual fee of $50 for each well covered
 by the documentation.  A fee collected under this section shall be
 deposited in the oil and gas regulation and [oil-field] cleanup
 fund.
 SECTION 19.09.  Subsection (d), Section 89.048, Natural
 Resources Code, is amended to read as follows:
 (d)  On successful plugging of the well by the well plugger,
 the surface estate owner may submit documentation to the commission
 of the cost of the well-plugging operation.  The commission shall
 reimburse the surface estate owner from money in the oil and gas
 regulation and [oil-field] cleanup fund in an amount not to exceed
 50 percent of the lesser of:
 (1)  the documented well-plugging costs; or
 (2)  the average cost incurred by the commission in the
 preceding 24 months in plugging similar wells located in the same
 general area.
 SECTION 19.10.  Subsection (j), Section 89.083, Natural
 Resources Code, is amended to read as follows:
 (j)  Money collected in a suit under this section shall be
 deposited in the oil and gas regulation and [state oil-field]
 cleanup fund.
 SECTION 19.11.  Subsection (d), Section 89.085, Natural
 Resources Code, is amended to read as follows:
 (d)  The commission shall deposit money received from the
 sale of well-site equipment or hydrocarbons under this section to
 the credit of the oil and gas regulation and [oil-field] cleanup
 fund. The commission shall separately account for money and credit
 received for each well.
 SECTION 19.12.  The heading to Section 89.086, Natural
 Resources Code, is amended to read as follows:
 Sec. 89.086.  CLAIMS AGAINST OIL AND GAS REGULATION AND [THE
 OIL-FIELD] CLEANUP FUND.
 SECTION 19.13.  Subsections (a) and (h) through (k), Section
 89.086, Natural Resources Code, are amended to read as follows:
 (a)  A person with a legal or equitable ownership or security
 interest in well-site equipment or hydrocarbons disposed of under
 Section 89.085 [of this code] may make a claim against the oil and
 gas regulation and [oil-field] cleanup fund unless an element of
 the transaction giving rise to the interest occurs after the
 commission forecloses its statutory lien under Section 89.083.
 (h)  The commission shall suspend an amount of money in the
 oil and gas regulation and [oil-field] cleanup fund equal to the
 amount of the claim until the claim is finally resolved. If the
 provisions of Subsection (k) [of this section] prevent suspension
 of the full amount of the claim, the commission shall treat the
 claim as two consecutively filed claims, one in the amount of funds
 available for suspension and the other in the remaining amount of
 the claim.
 (i)  A claim made by or on behalf of the operator or a
 nonoperator of a well or a successor to the rights of the operator
 or nonoperator is subject to a ratable deduction from the proceeds
 or credit received for the well-site equipment to cover the costs
 incurred by the commission in removing the equipment or
 hydrocarbons from the well or in transporting, storing, or
 disposing of the equipment or hydrocarbons. A claim made by a
 person who is not an operator or nonoperator is subject to a ratable
 deduction for the costs incurred by the commission in removing the
 equipment from the well. If a claimant is a person who is
 responsible under law or commission rules for plugging the well or
 cleaning up pollution originating on the lease or if the claimant
 owes a penalty assessed by the commission or a court for a violation
 of a commission rule or order, the commission may recoup from or
 offset against a valid claim an expense incurred by the oil and gas
 regulation and [oil-field] cleanup fund that is not otherwise
 reimbursed or any penalties owed. An amount recouped from,
 deducted from, or offset against a claim under this subsection
 shall be treated as an invalid portion of the claim and shall remain
 suspended in the oil and gas regulation and [oil-field] cleanup
 fund in the manner provided by Subsection (j) [of this section].
 (j)  If the commission finds that a claim is valid in whole or
 in part, the commission shall pay the valid portion of the claim
 from the suspended amount in the oil and gas regulation and
 [oil-field] cleanup fund not later than the 30th day after the date
 of the commission's decision. If the commission finds that a claim
 is invalid in whole or in part, the commission shall continue to
 suspend in the oil and gas regulation and [oil-field] cleanup fund
 an amount equal to the invalid portion of the claim until the period
 during which the commission's decision may be appealed has expired
 or, if appealed, during the period the case is under judicial
 review. If on appeal the district court finds the claim valid in
 whole or in part, the commission shall pay the valid portion of the
 claim from the suspended amount in the oil and gas regulation and
 [oil-field] cleanup fund not later than 30 days after the date the
 court's judgment becomes unappealable. On the date the
 commission's decision is not subject to judicial review, the
 commission shall release from the suspended amount in the oil and
 gas regulation and [oil-field] cleanup fund the amount of the claim
 held to be invalid.
 (k)  If the aggregate of claims paid and money suspended that
 relates to well-site equipment or hydrocarbons from a particular
 well equals the total of the actual proceeds and credit realized
 from the disposition of that equipment or those hydrocarbons, the
 oil and gas regulation and [oil-field] cleanup fund is not liable
 for any subsequently filed claims that relate to the same equipment
 or hydrocarbons unless and until the commission releases from the
 suspended amount money derived from the disposition of that
 equipment or those hydrocarbons. If the commission releases money,
 then the commission shall suspend money in the amount of
 subsequently filed claims in the order of filing.
 SECTION 19.14.  Subsection (b), Section 89.121, Natural
 Resources Code, is amended to read as follows:
 (b)  Civil penalties collected for violations of this
 chapter or of rules relating to plugging that are adopted under this
 code shall be deposited in the general revenue [state oil-field
 cleanup] fund.
 SECTION 19.15.  Subsection (c), Section 91.1013, Natural
 Resources Code, is amended to read as follows:
 (c)  Fees collected under this section shall be deposited in
 the oil and gas regulation and [state oil-field] cleanup fund.
 SECTION 19.16.  Section 91.108, Natural Resources Code, is
 amended to read as follows:
 Sec. 91.108.  DEPOSIT AND USE OF FUNDS. Subject to the
 refund provisions of Section 91.1091, if applicable, proceeds from
 bonds and other financial security required pursuant to this
 chapter and benefits under well-specific plugging insurance
 policies described by Section 91.104(c) that are paid to the state
 as contingent beneficiary of the policies shall be deposited in the
 oil and gas regulation and [oil-field] cleanup fund and,
 notwithstanding Sections 81.068 [91.112] and 91.113, may be used
 only for actual well plugging and surface remediation.
 SECTION 19.17.  Subsection (a), Section 91.109, Natural
 Resources Code, is amended to read as follows:
 (a)  A person applying for or acting under a commission
 permit to store, handle, treat, reclaim, or dispose of oil and gas
 waste may be required by the commission to maintain a performance
 bond or other form of financial security conditioned that the
 permittee will operate and close the storage, handling, treatment,
 reclamation, or disposal site in accordance with state law,
 commission rules, and the permit to operate the site. However, this
 section does not authorize the commission to require a bond or other
 form of financial security for saltwater disposal pits, emergency
 saltwater storage pits (including blow-down pits), collecting
 pits, or skimming pits provided that such pits are used in
 conjunction with the operation of an individual oil or gas lease.
 Subject to the refund provisions of Section 91.1091 [of this code],
 proceeds from any bond or other form of financial security required
 by this section shall be placed in the oil and gas regulation and
 [oil-field] cleanup fund. Each bond or other form of financial
 security shall be renewed and continued in effect until the
 conditions have been met or release is authorized by the
 commission.
 SECTION 19.18.  Subsections (a) and (f), Section 91.113,
 Natural Resources Code, are amended to read as follows:
 (a)  If oil and gas wastes or other substances or materials
 regulated by the commission under Section 91.101 are causing or are
 likely to cause the pollution of surface or subsurface water, the
 commission, through its employees or agents, may use money in the
 oil and gas regulation and [oil-field] cleanup fund to conduct a
 site investigation or environmental assessment or control or clean
 up the oil and gas wastes or other substances or materials if:
 (1)  the responsible person has failed or refused to
 control or clean up the oil and gas wastes or other substances or
 materials after notice and opportunity for hearing;
 (2)  the responsible person is unknown, cannot be
 found, or has no assets with which to control or clean up the oil and
 gas wastes or other substances or materials; or
 (3)  the oil and gas wastes or other substances or
 materials are causing the pollution of surface or subsurface water.
 (f)  If the commission conducts a site investigation or
 environmental assessment or controls or cleans up oil and gas
 wastes or other substances or materials under this section, the
 commission may recover all costs incurred by the commission from
 any person who was required by law, rules adopted by the commission,
 or a valid order of the commission to control or clean up the oil and
 gas wastes or other substances or materials. The commission by
 order may require the person to reimburse the commission for those
 costs or may request the attorney general to file suit against the
 person to recover those costs. At the request of the commission,
 the attorney general may file suit to enforce an order issued by the
 commission under this subsection. A suit under this subsection may
 be filed in any court of competent jurisdiction in Travis County.
 Costs recovered under this subsection shall be deposited to the oil
 and gas regulation and [oil-field] cleanup fund.
 SECTION 19.19.  Subsection (c), Section 91.264, Natural
 Resources Code, is amended to read as follows:
 (c)  A penalty collected under this section shall be
 deposited to the credit of the general revenue [oil-field cleanup]
 fund [account].
 SECTION 19.20.  Subsection (b), Section 91.457, Natural
 Resources Code, is amended to read as follows:
 (b)  If a person ordered to close a saltwater disposal pit
 under Subsection (a) [of this section] fails or refuses to close the
 pit in compliance with the commission's order and rules, the
 commission may close the pit using money from the oil and gas
 regulation and [oil-field] cleanup fund and may direct the attorney
 general to file suits in any courts of competent jurisdiction in
 Travis County to recover applicable penalties and the costs
 incurred by the commission in closing the saltwater disposal pit.
 SECTION 19.21.  Subsection (c), Section 91.459, Natural
 Resources Code, is amended to read as follows:
 (c)  Any [penalties or] costs recovered by the attorney
 general under this subchapter shall be deposited in the oil and gas
 regulation and [oil-field] cleanup fund.
 SECTION 19.22.  Subsection (e), Section 91.605, Natural
 Resources Code, is amended to read as follows:
 (e)  The fees collected under this section shall be deposited
 in the oil and gas regulation and [oil-field] cleanup fund.
 SECTION 19.23.  Subsection (e), Section 91.654, Natural
 Resources Code, is amended to read as follows:
 (e)  Fees collected under this section shall be deposited to
 the credit of the oil and gas regulation and [oil-field] cleanup
 fund under Section 81.067 [91.111].
 SECTION 19.24.  Subsection (b), Section 91.707, Natural
 Resources Code, is amended to read as follows:
 (b)  Fees collected under this section shall be deposited to
 the oil and gas regulation and [oil-field] cleanup fund.
 SECTION 19.25.  The heading to Section 121.211, Utilities
 Code, is amended to read as follows:
 Sec. 121.211.  PIPELINE SAFETY AND REGULATORY FEES.
 SECTION 19.26.  Subsections (a) through (e) and (h), Section
 121.211, Utilities Code, are amended to read as follows:
 (a)  The railroad commission by rule may adopt a [an
 inspection] fee to be assessed annually against operators of
 natural gas distribution pipelines and their pipeline facilities
 and natural gas master metered pipelines and their pipeline
 facilities subject to this title [chapter].
 (b)  The railroad commission by rule shall establish the
 method by which the fee will be calculated and assessed. In
 adopting a fee structure, the railroad commission may consider any
 factors necessary to provide for the equitable allocation among
 operators of the costs of administering the railroad commission's
 pipeline safety and regulatory program under this title [chapter].
 (c)  The total amount of fees estimated to be collected under
 rules adopted by the railroad commission under this section may not
 exceed the amount estimated by the railroad commission to be
 necessary to recover the costs of administering the railroad
 commission's pipeline safety and regulatory program under this
 title [chapter], excluding costs that are fully funded by federal
 sources.
 (d)  The commission may assess each operator of a natural gas
 distribution system subject to this title [chapter] an annual
 [inspection] fee not to exceed one dollar for each service line
 reported by the system on the Distribution Annual Report, Form RSPA
 F7100.1-1, due on March 15 of each year.  The fee is due March 15 of
 each year.
 (e)  The railroad commission may assess each operator of a
 natural gas master metered system subject to this title [chapter]
 an annual [inspection] fee not to exceed $100 for each master
 metered system.  The fee is due June 30 of each year.
 (h)  A fee collected under this section shall be deposited to
 the credit of the general revenue fund to be used for the pipeline
 safety and regulatory program.
 SECTION 19.27.  Section 29.015, Water Code, is amended to
 read as follows:
 Sec. 29.015.  APPLICATION FEE. With each application for
 issuance, renewal, or material amendment of a permit, the applicant
 shall submit to the railroad commission a nonrefundable fee of
 $100.  Fees collected under this section shall be deposited in the
 oil and gas regulation and [oil-field] cleanup fund.
 SECTION 19.28.  The following provisions of the Natural
 Resources Code are repealed:
 (1)  Section 91.111; and
 (2)  Section 91.112.
 SECTION 19.29.  On the effective date of this article:
 (1)  the oil-field cleanup fund is abolished;
 (2)  any money remaining in the oil-field cleanup fund
 is transferred to the oil and gas regulation and cleanup fund;
 (3)  any claim against the oil-field cleanup fund is
 transferred to the oil and gas regulation and cleanup fund; and
 (4)  any amount required to be deposited to the credit
 of the oil-field cleanup fund shall be deposited to the credit of
 the oil and gas regulation and cleanup fund.
 ARTICLE 20.  FISCAL MATTERS RELATING TO SECRETARY OF STATE
 SECTION 20.01.  Section 405.014, Government Code, is amended
 to read as follows:
 Sec. 405.014.  ACTS OF THE LEGISLATURE. (a)  At each
 session of the legislature the secretary of state shall obtain the
 bills that have become law. Immediately after the closing of each
 session of the legislature, the secretary of state shall bind all
 enrolled bills and resolutions in volumes on which the date of the
 session is placed.
 (b)  As soon as practicable after the closing of each session
 of the legislature, the secretary of state shall publish and
 maintain electronically the bills enacted at that session. The
 electronic publication must be:
 (1)  indexed by bill number and assigned chapter number
 for each bill; and
 (2)  made available by an electronic link on the
 secretary of state's generally accessible Internet website.
 SECTION 20.02.  Subchapter B, Chapter 2158, Government Code,
 is repealed.
 SECTION 20.03.  The change in law made by this article does
 not apply to a contract for the publication of the laws of this
 state entered into before the effective date of this article.
 SECTION 20.04.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 immediate effect, this article takes effect on the 91st day after
 the last day of the legislative session.
 ARTICLE 21.  FISCAL MATTERS REGARDING ATTORNEY GENERAL
 SECTION 21.01.  Section 402.006, Government Code, is amended
 by adding Subsection (e) to read as follows:
 (e)  The attorney general may charge a reasonable fee for the
 electronic filing of a document.
 SECTION 21.02.  The fee prescribed by Section 402.006,
 Government Code, as amended by this article, applies only to a
 document electronically submitted to the office of the attorney
 general on or after the effective date of this article.
 SECTION 21.03.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 immediate effect, this article takes effect on the 91st day after
 the last day of the legislative session.
 ARTICLE 22.  TEXAS PRESERVATION TRUST FUND ACCOUNT
 SECTION 22.01.  Subsections (a), (b), and (f), Section
 442.015, Government Code, are amended to read as follows:
 (a)  Notwithstanding Section [Sections 403.094 and] 403.095,
 the Texas preservation trust fund account is a separate account in
 the general revenue fund.  The account consists of transfers made to
 the account, loan repayments, grants and donations made for the
 purposes of this program, proceeds of sales, income earned
 [earnings] on money in the account, and any other money received
 under this section.  Money in [Distributions from] the account may
 be used only for the purposes of this section and [may not be used]
 to pay operating expenses of the commission.  Money allocated to the
 commission's historic preservation grant program shall be
 deposited to the credit of the account.  Income earned [Earnings] on
 money in the account shall be deposited to the credit of the
 account.
 (b)  The commission may use money in [distributions from] the
 Texas preservation trust fund account to provide financial
 assistance to public or private entities for the acquisition,
 survey, restoration, or preservation, or for planning and
 educational activities leading to the preservation, of historic
 property in the state that is listed in the National Register of
 Historic Places or designated as a State Archeological Landmark or
 Recorded Texas Historic Landmark, or that the commission determines
 is eligible for such listing or designation.  The financial
 assistance may be in the amount and form and according to the terms
 that the commission by rule determines.  The commission shall give
 priority to property the commission determines to be endangered by
 demolition, neglect, underuse, looting, vandalism, or other threat
 to the property.  Gifts and grants deposited to the credit of the
 account specifically for any eligible projects may be used only for
 the type of projects specified.  If such a specification is not
 made, the gift or grant shall be unencumbered and accrue to the
 benefit of the Texas preservation trust fund account.  If such a
 specification is made, the entire amount of the gift or grant may be
 used during any period for the project or type of project specified.
 (f)  The advisory board shall recommend to the commission
 rules for administering this section [Subsections (a)-(e)].
 SECTION 22.02.  Subsections (h), (i), (j), (k), and (l),
 Section 442.015, Government Code, are repealed.
 SECTION 22.03.  The comptroller of public accounts and the
 Texas Historical Commission shall enter into a memorandum of
 understanding to facilitate the conversion of assets of the Texas
 preservation trust fund account into cash for deposit into the
 state treasury using a method that provides for the lowest amount of
 revenue loss to the state.
 SECTION 22.04.  This article takes effect November 1, 2011.
 ARTICLE 23. FISCAL MATTERS CONCERNING INFORMATION TECHNOLOGY
 SECTION 23.01.  Section 572.054, Government Code, is amended
 by adding Subsection (g-1) to read as follows:
 (g-1)  For purposes of this section, the Department of
 Information Resources is a regulatory agency.
 SECTION 23.02.  Section 2054.005, Government Code, is
 amended to read as follows:
 Sec. 2054.005.  SUNSET PROVISION.  (a)  The Department of
 Information Resources is subject to Chapter 325 (Texas Sunset
 Act).  Unless continued in existence as provided by that chapter,
 the department is abolished and this chapter expires September 1,
 2013 [2011].
 (b)  The review of the Department of Information Resources by
 the Sunset Advisory Commission in preparation for the work of the
 83rd Legislature, Regular Session, is not limited to the
 appropriateness of recommendations made by the commission to the
 82nd Legislature. In the commission's report to the 83rd
 Legislature, the commission may include any recommendations it
 considers appropriate.
 SECTION 23.03.  Subchapter C, Chapter 2054, Government Code,
 is amended by adding Section 2054.064 to read as follows:
 Sec. 2054.064.  BOARD APPROVAL OF CONTRACTS. The board by
 rule shall establish approval requirements for all contracts,
 including a monetary threshold above which board approval is
 required before the contract may be executed.
 SECTION 23.04.  Subsection (b), Section 2054.376,
 Government Code, is amended to read as follows:
 (b)  This subchapter does not apply to:
 (1)  the Department of Public Safety's use for criminal
 justice or homeland security purposes of a federal database or
 network;
 (2)  a Texas equivalent of a database or network
 described by Subdivision (1) that is managed by the Department of
 Public Safety;
 (3)  the uniform statewide accounting system, as that
 term is used in Subchapter C, Chapter 2101;
 (4)  the state treasury cash and treasury management
 system; [or]
 (5)  a database or network managed by the comptroller
 to:
 (A)  collect and process multiple types of taxes
 imposed by the state; or
 (B)  manage or administer fiscal, financial,
 revenue, and expenditure activities of the state under Chapter 403
 and Chapter 404; or
 (6)  a database or network managed by the Department of
 Agriculture.
 SECTION 23.05.  Section 2054.380, Government Code, is
 amended to read as follows:
 Sec. 2054.380.  FEES.  (a)  The department shall set and
 charge a fee to each state agency that receives a service from a
 statewide technology center in an amount sufficient to cover the
 direct and indirect cost of providing the service.
 (b)  Revenue derived from the collection of fees imposed
 under Subsection (a) may be appropriated to the department for:
 (1)  developing statewide information resources
 technology policies and planning under this chapter and Chapter
 2059; and
 (2)  providing shared information resources technology
 services under this chapter.
 SECTION 23.06.  Subsections (b) and (d), Section 2157.068,
 Government Code, are amended to read as follows:
 (b)  The department shall negotiate with vendors [to
 attempt] to obtain the best value for the state in the purchase of
 commodity items. The department may consider strategic sourcing
 and other methodologies to select the vendor offering the best
 value on [a favorable price for all of state government on licenses
 for] commodity items[, based on the aggregate volume of purchases
 expected to be made by the state]. The terms and conditions of a
 license agreement between a vendor and the department under this
 section may not be less favorable to the state than the terms of
 similar license agreements between the vendor and retail
 distributors.
 (d)  The department may charge a reasonable administrative
 fee to a state agency, political subdivision of this state, or
 governmental entity of another state that purchases commodity items
 through the department in an amount that is sufficient to recover
 costs associated with the administration of this section.  Revenue
 derived from the collection of fees imposed under this subsection
 may be appropriated to the department for:
 (1)  developing statewide information resources
 technology policies and planning under Chapters 2054 and 2059; and
 (2)  providing shared information resources technology
 services under Chapter 2054.
 SECTION 23.07.  Subsections (a) and (d), Section 2170.057,
 Government Code, are amended to read as follows:
 (a)  The department shall develop a system of billings and
 charges for services provided in operating and administering the
 consolidated telecommunications system that allocates the total
 state cost to each entity served by the system based on
 proportionate usage.  The department shall set and charge a fee to
 each entity that receives services provided under this chapter in
 an amount sufficient to cover the direct and indirect costs of
 providing the service.  Revenue derived from the collection of fees
 imposed under this subsection may be appropriated to the department
 for:
 (1)  developing statewide information resources
 technology policies and planning under Chapters 2054 and 2059; and
 (2)  providing:
 (A)  shared information resources technology
 services under Chapter 2054; and
 (B)  network security services under Chapter
 2059.
 (d)  The department shall maintain in the revolving fund
 account sufficient amounts to pay the bills of the consolidated
 telecommunications system and the centralized capitol complex
 telephone system. [The department shall certify amounts that
 exceed this amount to the comptroller, and the comptroller shall
 transfer the excess amounts to the credit of the statewide network
 applications account established by Section 2054.011.]
 ARTICLE 24.  CONTINUING LEGAL EDUCATION REQUIREMENTS FOR ATTORNEY
 EMPLOYED BY ATTORNEY GENERAL
 SECTION 24.01.  Section 81.113, Government Code, is amended
 by adding Subsection (a-1) to read as follows:
 (a-1)  The state bar shall credit an attorney licensed in
 this state with meeting the minimum continuing legal education
 requirements of the state bar for a reporting year if during the
 reporting year the attorney is employed full-time as an attorney by
 the office of the attorney general.  An attorney credited for
 continuing legal education under this subsection must meet the
 continuing legal education requirements of the state bar in legal
 ethics or professional responsibility.  This subsection expires
 January 1, 2014.
 SECTION 24.02.  Subchapter A, Chapter 402, Government Code,
 is amended by adding Section 402.011 to read as follows:
 Sec. 402.011.  CONTINUING LEGAL EDUCATION PROGRAMS.  The
 office of the attorney general shall recognize, prepare, or
 administer continuing legal education programs that meet
 continuing legal education requirements imposed under Section
 81.113(c) for the attorneys employed by the office.  This section
 expires January 1, 2014.
 SECTION 24.03.  Section 81.113, Government Code, as amended
 by this article, applies only to the requirements for a continuing
 legal education compliance year that ends on or after October 1,
 2011. The requirements for continuing legal education for a
 compliance year that ends before October 1, 2011, are covered by the
 law and rules in effect when the compliance year ended, and that law
 and those rules are continued in effect for that purpose.
 ARTICLE 25.  REGISTRATION FEE AND REGISTRATION RENEWAL FEE FOR
 LOBBYISTS
 SECTION 25.01.  Subsection (c), Section 305.005, Government
 Code, is amended to read as follows:
 (c)  The registration fee and registration renewal fee are:
 (1)  $150 [$100] for a registrant employed by an
 organization exempt from federal income tax under Section
 501(c)(3), [or] 501(c)(4), or 501(c)(6), Internal Revenue Code of
 1986;
 (2)  $75 [$50] for any person required to register
 solely because the person is required to register under Section
 305.0041 [of this chapter]; or
 (3)  $750 [$500] for any other registrant.
 ARTICLE 26.  PUBLIC ASSISTANCE REPORTING INFORMATION SYSTEM
 SECTION 26.01.  Subsection (c), Section 434.017, Government
 Code, is amended to read as follows:
 (c)  Money in the fund may only be appropriated to the Texas
 Veterans Commission.  Money appropriated under this subsection
 shall be used to:
 (1)  make grants to address veterans' needs; [and]
 (2)  administer the fund; and
 (3)  analyze and investigate data received from the
 federal Public Assistance Reporting Information System (PARIS)
 that is administered by the Administration for Children and
 Families of the United States Department of Health and Human
 Services.
 ARTICLE 27.  REGIONAL POISON CONTROL CENTER MANAGEMENT CONTROLS
 AND EFFICIENCY
 SECTION 27.01.  Section 777.001, Health and Safety Code, is
 amended by amending Subsection (c) and adding Subsection (d) to
 read as follows:
 (c)  The Commission on State Emergency Communications may
 standardize the operations of and implement management controls to
 improve the efficiency of regional poison control centers [vote to
 designate a seventh regional or satellite poison control center in
 Harris County.    That poison control center is subject to all
 provisions of this chapter and other law relating to regional
 poison control centers].
 (d)  If the Commission on State Emergency Communications
 implements management controls under Subsection (c), the
 commission shall submit to the governor and the Legislative Budget
 Board a plan for implementing the controls not later than October
 31, 2011.  This subsection expires January 1, 2013.
 ARTICLE 28.  AUTHORIZED USES FOR CERTAIN DEDICATED PERMANENT FUNDS
 SECTION 28.01.  Section 403.105, Government Code, is amended
 by amending Subsection (b) and adding Subsection (b-1) to read as
 follows:
 (b)  Except as provided by Subsections (b-1), (c), (e), (f),
 and (h), money in the fund may not be appropriated for any purpose.
 (b-1)  Notwithstanding the limitations and requirements of
 Section 403.1068, the legislature may appropriate money in the
 fund, including the corpus and available earnings of the fund
 determined under Section 403.1068, to pay the principal of or
 interest on a bond issued for the purposes of Section 67, Article
 III, Texas Constitution. This subsection does not authorize the
 appropriation under this subsection of money subject to a
 limitation or requirement as described by Subsection (e) that is
 not consistent with the use of the money in accordance with this
 subsection.
 SECTION 28.02.  Section 403.1055, Government Code, is
 amended by amending Subsection (b) and adding Subsection (b-1) to
 read as follows:
 (b)  Except as provided by Subsections (b-1), (c), (e), (f),
 and (h), money in the fund may not be appropriated for any purpose.
 (b-1)  Notwithstanding the limitations and requirements of
 Section 403.1068, the legislature may appropriate money in the
 fund, including the corpus and available earnings of the fund
 determined under Section 403.1068, to pay the principal of or
 interest on a bond issued for the purposes of Section 67, Article
 III, Texas Constitution. This subsection does not authorize the
 appropriation under this subsection of money subject to a
 limitation or requirement as described by Subsection (e) that is
 not consistent with the use of the money in accordance with this
 subsection.
 SECTION 28.03.  Section 403.106, Government Code, is amended
 by amending Subsection (b) and adding Subsection (b-1) to read as
 follows:
 (b)  Except as provided by Subsections (b-1), (c), (e), (f),
 and (h), money in the fund may not be appropriated for any purpose.
 (b-1)  Notwithstanding the limitations and requirements of
 Section 403.1068, the legislature may appropriate money in the
 fund, including the corpus and available earnings of the fund
 determined under Section 403.1068, to pay the principal of or
 interest on a bond issued for the purposes of Section 67, Article
 III, Texas Constitution. This subsection does not authorize the
 appropriation under this subsection of money subject to a
 limitation or requirement as described by Subsection (e) that is
 not consistent with the use of the money in accordance with this
 subsection.
 SECTION 28.04.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 immediate effect, this article takes effect on the 91st day after
 the last day of the legislative session.
 ARTICLE 29.  FISCAL MATTERS CONCERNING SURPLUS AND SALVAGE
 PROPERTY
 SECTION 29.01.  Subchapter C, Chapter 2175, Government Code,
 is repealed.
 SECTION 29.02.  Subsection (a), Section 32.102, Education
 Code, is amended to read as follows:
 (a)  As provided by this subchapter, a school district or
 open-enrollment charter school may transfer to a student enrolled
 in the district or school:
 (1)  any data processing equipment donated to the
 district or school, including equipment donated by:
 (A)  a private donor; or
 (B)  a state eleemosynary institution or a state
 agency under Section 2175.905 [2175.128], Government Code;
 (2)  any equipment purchased by the district or school,
 to the extent consistent with Section 32.105; and
 (3)  any surplus or salvage equipment owned by the
 district or school.
 SECTION 29.03.  Section 2175.002, Government Code, is
 amended to read as follows:
 Sec. 2175.002.  ADMINISTRATION OF CHAPTER.  The commission
 is responsible for the disposal of surplus and salvage property of
 the state.  The commission's surplus and salvage property division
 shall administer this chapter.
 SECTION 29.04.  Section 2175.065, Government Code, is
 amended by amending Subsection (a) and adding Subsections (c) and
 (d) to read as follows:
 (a)  The commission may authorize a state agency to dispose
 of surplus or salvage property if the agency demonstrates to the
 commission its ability to dispose of the property under this
 chapter [Subchapters C and E] in a manner that results in cost
 savings to the state, under commission rules adopted under this
 chapter.
 (c)  If property is disposed of under this section, the
 disposing state agency shall report the transaction to the
 commission.  The report must include a description of the property
 disposed of, the reasons for disposal, the price paid for the
 property disposed of, and the recipient of the property disposed
 of.
 (d)  If the commission determines that a violation of a state
 law or rule has occurred based on the report under Subsection (c),
 the commission shall report the violation to the Legislative Budget
 Board.
 SECTION 29.05.  The heading to Subchapter D, Chapter 2175,
 Government Code, is amended to read as follows:
 SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE PROPERTY [BY
 COMMISSION]
 SECTION 29.06.  Section 2175.181, Government Code, is
 amended to read as follows:
 Sec. 2175.181.  APPLICABILITY.  [(a)      This subchapter
 applies only to surplus and salvage property located in:
 [(1)  Travis County;
 [(2)     a county in which federal surplus property is
 warehoused by the commission under Subchapter G; or
 [(3)     a county for which the commission determines that
 it is cost-effective to follow the procedures created under this
 subchapter and informs affected state agencies of that
 determination.
 [(b)]  This subchapter applies [does not apply] to a state
 agency delegated the authority to dispose of surplus or salvage
 property under Section 2175.065.
 SECTION 29.07.  Section 2175.182, Government Code, is
 amended to read as follows:
 Sec. 2175.182.  STATE AGENCY TRANSFER OF PROPERTY [TO
 COMMISSION].  (a)  A state agency that determines it has surplus or
 salvage property shall inform the commission of that fact for the
 purpose of determining the method of disposal of the property [The
 commission is responsible for the disposal of surplus or salvage
 property under this subchapter]. The commission may take physical
 possession of the property.
 (b)  Based on the condition of the property, the commission,
 in conjunction with the state agency, shall determine whether the
 property is:
 (1)  surplus property that should be offered for
 transfer under Section 2175.184 or sold to the public; or
 (2)  salvage property.
 (c)  Following the determination in Subsection (b), the
 [The] commission shall direct the state agency to inform the
 comptroller's office of the property's kind, number, location,
 condition, original cost or value, and date of acquisition.
 SECTION 29.08.  Section 2175.1825, Government Code, is
 amended to read as follows:
 Sec. 2175.1825.  ADVERTISING ON COMPTROLLER WEBSITE.
 (a)  Not later than the second day after the date the comptroller
 receives notice from a state agency [the commission] under Section
 2175.182(c), the comptroller shall advertise the property's kind,
 number, location, and condition on the comptroller's website.
 (b)  The comptroller shall provide the commission access to
 all records in the state property accounting system related to
 surplus and salvage property.
 SECTION 29.09.  Section 2175.183, Government Code, is
 amended to read as follows:
 Sec. 2175.183.  COMMISSION NOTICE TO OTHER ENTITIES.  The
 [On taking responsibility for surplus property under this
 subchapter, the] commission shall inform other state agencies,
 political subdivisions, and assistance organizations of the
 comptroller's website that lists surplus property that is available
 for sale.
 SECTION 29.10.  Section 2175.184, Government Code, is
 amended to read as follows:
 Sec. 2175.184.  DIRECT TRANSFER. During the 10 business
 days after the date the property is posted on the comptroller's
 website, a state agency, political subdivision, or assistance
 organization shall [may] coordinate with the commission for a
 transfer of the property at a price established by the commission
 [in cooperation with the transferring agency]. A transfer to a
 state agency has priority over any other transfer during this
 period.
 SECTION 29.11.  Subsection (a), Section 2175.186,
 Government Code, is amended to read as follows:
 (a)  If a disposition of a state agency's surplus property is
 not made under Section 2175.184, the commission shall sell the
 property by competitive bid, auction, or direct sale to the public,
 including a sale using an Internet auction site.  The commission may
 contract with a private vendor to assist with the sale of the
 property.
 SECTION 29.12.  Section 2175.189, Government Code, is
 amended to read as follows:
 Sec. 2175.189.  ADVERTISEMENT OF SALE. If the value of an
 item or a lot of property to be sold is estimated to be more than
 $25,000 [$5,000], the commission shall advertise the sale at least
 once in at least one newspaper of general circulation in the
 vicinity in which the property is located.
 SECTION 29.13.  Subsection (a), Section 2175.191,
 Government Code, is amended to read as follows:
 (a)  Proceeds from the sale of surplus or salvage property,
 less the cost of advertising the sale, the cost of selling the
 surplus or salvage property, including the cost of auctioneer
 services or assistance from a private vendor, and the amount of the
 fee collected under Section 2175.188, shall be deposited to the
 credit of the general revenue fund of the state treasury.
 SECTION 29.14.  Section 2175.302, Government Code, is
 amended to read as follows:
 Sec. 2175.302.  EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS.
 Except as provided by Section 2175.905(b) [2175.128(b)], this
 chapter does not apply to the disposition of surplus or salvage
 property by a state eleemosynary institution.
 SECTION 29.15.  Section 2175.904, Government Code, is
 amended by amending Subsections (a) and (c) and adding Subsection
 (d) to read as follows:
 (a)  The commission shall establish a program for the sale of
 gambling equipment received from a municipality, from a
 commissioners court under Section 263.152(a)(5), Local Government
 Code, or from a state agency under this chapter.
 (c)  Proceeds from the sale of gambling equipment from a
 municipality or commissioners court, less the costs of the sale,
 including costs of advertising, storage, shipping, and auctioneer
 or broker services, and the amount of the fee collected under
 Section 2175.188 [2175.131], shall be divided according to an
 agreement between the commission and the municipality or
 commissioners court that provided the equipment for sale.  The
 agreement must provide that:
 (1)  not less than 50 percent of the net proceeds be
 remitted to the commissioners court; and
 (2)  the remainder of the net proceeds retained by the
 commission be deposited to the credit of the general revenue fund.
 (d)  Proceeds from the sale of gambling equipment from a
 state agency, less the costs of the sale, including costs of
 advertising, storage, shipping, and auctioneer or broker services,
 and the amount of the fee collected under Section 2175.188, shall be
 deposited to the credit of the general revenue fund of the state
 treasury.
 SECTION 29.16.  Subchapter Z, Chapter 2175, Government Code,
 is amended by adding Sections 2175.905 and 2175.906 to read as
 follows:
 Sec. 2175.905.  DISPOSITION OF DATA PROCESSING EQUIPMENT.
 (a)  If a disposition of a state agency's surplus or salvage data
 processing equipment is not made under Section 2175.184, the state
 agency shall transfer the equipment to:
 (1)  a school district or open-enrollment charter
 school in this state under Subchapter C, Chapter 32, Education
 Code;
 (2)  an assistance organization specified by the school
 district; or
 (3)  the Texas Department of Criminal Justice.
 (b)  If a disposition of the surplus or salvage data
 processing equipment of a state eleemosynary institution or an
 institution or agency of higher education is not made under other
 law, the institution or agency shall transfer the equipment to:
 (1)  a school district or open-enrollment charter
 school in this state under Subchapter C, Chapter 32, Education
 Code;
 (2)  an assistance organization specified by the school
 district; or
 (3)  the Texas Department of Criminal Justice.
 (c)  The state eleemosynary institution or institution or
 agency of higher education or other state agency may not collect a
 fee or other reimbursement from the district, the school, the
 assistance organization, or the Texas Department of Criminal
 Justice for the surplus or salvage data processing equipment
 transferred under this section.
 Sec. 2175.906.  ABOLISHED AGENCIES. On abolition of a state
 agency, in accordance with Chapter 325, the commission shall take
 custody of all of the agency's property or other assets as surplus
 property unless other law or the legislature designates another
 appropriate governmental entity to take custody of the property or
 assets.
 ARTICLE 30.  SALES AND USE TAX COLLECTION AND ALLOCATION
 SECTION 30.01.  Subsection (b), Section 151.008, Tax Code,
 is amended to read as follows:
 (b)  "Seller" and "retailer" include:
 (1)  a person in the business of making sales at auction
 of tangible personal property owned by the person or by another;
 (2)  a person who makes more than two sales of taxable
 items during a 12-month period, including sales made in the
 capacity of an assignee for the benefit of creditors or receiver or
 trustee in bankruptcy;
 (3)  a person regarded by the comptroller as a seller or
 retailer under Section 151.024 [of this code];
 (4)  a hotel, motel, or owner or lessor of an office or
 residential building or development that contracts and pays for
 telecommunications services for resale to guests or tenants; [and]
 (5)  a person who engages in regular or systematic
 solicitation of sales of taxable items in this state by the
 distribution of catalogs, periodicals, advertising flyers, or
 other advertising, by means of print, radio, or television media,
 or by mail, telegraphy, telephone, computer data base, cable,
 optic, microwave, or other communication system for the purpose of
 effecting sales of taxable items; and
 (6)  a person who, under an agreement with another
 person, is:
 (A)  entrusted with possession of tangible
 personal property with respect to which the other person has title
 or another ownership interest; and
 (B)  authorized to sell, lease, or rent the
 property without additional action by the person having title to or
 another ownership interest in the property.
 SECTION 30.02.  Section 151.107, Tax Code, is amended by
 amending Subsection (a) and adding Subsection (d) to read as
 follows:
 (a)  For the purpose of this subchapter and in relation to
 the use tax, a retailer is engaged in business in this state if the
 retailer:
 (1)  maintains, occupies, or uses in this state
 permanently, temporarily, directly, or indirectly or through a
 subsidiary or agent by whatever name, an office, [place of]
 distribution center, sales or sample room or place, warehouse,
 storage place, or any other physical location where [place of]
 business is conducted;
 (2)  has a representative, agent, salesman, canvasser,
 or solicitor operating in this state under the authority of the
 retailer or its subsidiary for the purpose of selling or delivering
 or the taking of orders for a taxable item;
 (3)  derives receipts [rentals] from the sale, [a]
 lease, or rental of tangible personal property situated in this
 state;
 (4)  engages in regular or systematic solicitation of
 sales of taxable items in this state by the distribution of
 catalogs, periodicals, advertising flyers, or other advertising,
 by means of print, radio, or television media, or by mail,
 telegraphy, telephone, computer data base, cable, optic,
 microwave, or other communication system for the purpose of
 effecting sales of taxable items;
 (5)  solicits orders for taxable items by mail or
 through other media and under federal law is subject to or permitted
 to be made subject to the jurisdiction of this state for purposes of
 collecting the taxes imposed by this chapter;
 (6)  has a franchisee or licensee operating under its
 trade name if the franchisee or licensee is required to collect the
 tax under this section; [or]
 (7)  holds a substantial ownership interest in, or is
 owned in whole or substantial part by, a person who maintains a
 location in this state from which business is conducted and if:
 (A)  the retailer sells the same or a
 substantially similar line of products as the person with the
 location in this state and sells those products under a business
 name that is the same as or substantially similar to the business
 name of the person with the location in this state; or
 (B)  the facilities or employees of the person
 with the location in this state are used to:
 (i)  advertise, promote, or facilitate sales
 by the retailer to consumers; or
 (ii)  perform any other activity on behalf
 of the retailer that is intended to establish or maintain a
 marketplace for the retailer in this state, including receiving or
 exchanging returned merchandise;
 (8)  holds a substantial ownership interest in, or is
 owned in whole or substantial part by, a person that:
 (A)  maintains a distribution center, warehouse,
 or similar location in this state; and
 (B)  delivers property sold by the retailer to
 consumers; or
 (9)  otherwise does business in this state.
 (d)  In this section:
 (1)  "Ownership" includes:
 (A)  direct ownership;
 (B)  common ownership; and
 (C)  indirect ownership through a parent entity,
 subsidiary, or affiliate.
 (2)  "Substantial" means, with respect to an ownership
 interest, an interest in an entity that is:
 (A)  if the entity is a corporation, at least 50
 percent, directly or indirectly, of:
 (i)  the total combined voting power of all
 classes of stock of the corporation; or
 (ii)  the beneficial ownership interest in
 the voting stock of the corporation;
 (B)  if the entity is a trust, at least 50 percent,
 directly or indirectly, of the current beneficial interest in the
 trust corpus or income;
 (C)  if the entity is a limited liability company,
 at least 50 percent, directly or indirectly, of:
 (i)  the total membership interest of the
 limited liability company; or
 (ii)  the beneficial ownership interest in
 the membership interest of the limited liability company; or
 (D)  for any entity, including a partnership or
 association, at least 50 percent, directly or indirectly, of the
 capital or profits interest in the entity.
 SECTION 30.03.  Subchapter M, Chapter 151, Tax Code, is
 amended by adding Section 151.802 to read as follows:
 Sec. 151.802.  ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX
 RELIEF FUND. (a)  This section applies only:
 (1)  during the state fiscal years beginning September
 1 of 2012, 2013, 2014, 2015, and 2016; and
 (2)  with respect to unused franchise tax credits
 described by Sections 18(e) and (f), Chapter 1 (H.B. 3), Acts of the
 79th Legislature, 3rd Called Session, 2006.
 (b)  Notwithstanding Section 151.801, the comptroller shall
 deposit to the credit of the property tax relief fund under Section
 403.109, Government Code, an amount of the proceeds from the
 collection of the taxes imposed by this chapter equal to the amount
 of revenue the state does not receive from the tax imposed under
 Chapter 171 because taxable entities, as defined by that chapter,
 that are corporations are entitled to claim unused franchise tax
 credits after December 31, 2012, and during that state fiscal year.
 (c)  This section expires September 1, 2017.
 SECTION 30.04.  The change in law made by this article does
 not affect tax liability accruing before the effective date of this
 article. That liability continues in effect as if this article had
 not been enacted, and the former law is continued in effect for the
 collection of taxes due and for civil and criminal enforcement of
 the liability for those taxes.
 SECTION 30.05.  This article takes effect January 1, 2012.
 ARTICLE 31.  CARRYFORWARD OF CERTAIN FRANCHISE TAX CREDITS
 SECTION 31.01.  Subsections (e) and (f), Section 18, Chapter
 1 (H.B. 3), Acts of the 79th Legislature, 3rd Called Session, 2006,
 are amended to read as follows:
 (e)  A corporation that has any unused credits established
 before the effective date of this Act under Subchapter P, Chapter
 171, Tax Code, may claim those unused credits on or with the tax
 report for the period in which the credit was established.  However,
 if the corporation was allowed to carry forward unused credits
 under that subchapter, the corporation may continue to apply those
 credits on or with each consecutive report until the earlier of the
 date the credit would have expired under the terms of Subchapter P,
 Chapter 171, Tax Code, had it continued in existence, or December
 31, 2016 [2012], and the former law under which the corporation
 established the credits is continued in effect for purposes of
 determining the amount of the credits the corporation may claim and
 the manner in which the corporation may claim the credits.
 (f)  A corporation that has any unused credits established
 before the effective date of this Act under Subchapter Q, Chapter
 171, Tax Code, may claim those unused credits on or with the tax
 report for the period in which the credit was established.  However,
 if the corporation was allowed to carry forward unused credits
 under that subchapter, the corporation may continue to apply those
 credits on or with each consecutive report until the earlier of the
 date the credit would have expired under the terms of Subchapter Q,
 Chapter 171, Tax Code, had it continued in existence, or December
 31, 2016 [2012], and the former law under which the corporation
 established the credits is continued in effect for purposes of
 determining the amount of the credits the corporation may claim and
 the manner in which the corporation may claim the credits.
 ARTICLE 32.  STATE PURCHASING
 SECTION 32.01.  Section 2155.082, Government Code, is
 amended to read as follows:
 Sec. 2155.082.  PROVIDING CERTAIN PURCHASING SERVICES ON
 FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT FUNDING.  (a)  The
 comptroller [commission] may provide open market purchasing
 services on a fee-for-service basis for state agency purchases that
 are delegated to an agency under Section 2155.131, 2155.132,
 [2155.133,] or 2157.121 or that are exempted from the purchasing
 authority of the comptroller [commission].  The comptroller
 [commission] shall set the fees in an amount that recovers the
 comptroller's [commission's] costs in providing the services.
 (b)  The comptroller [commission] shall  publish a schedule
 of [its] fees for services that are subject to this section.  The
 schedule must include the comptroller's [commission's] fees for:
 (1)  reviewing bid and contract documents for clarity,
 completeness, and compliance with laws and rules;
 (2)  developing and transmitting invitations to bid;
 (3)  receiving and tabulating bids;
 (4)  evaluating and determining which bidder offers the
 best value to the state;
 (5)  creating and transmitting purchase orders; and
 (6)  participating in agencies' request for proposal
 processes.
 (c)  If the state agency on behalf of which the procurement
 is to be made agrees, the comptroller may engage a consultant to
 assist with a particular procurement on behalf of a state agency and
 pay the consultant from the cost savings realized by the state
 agency.
 ARTICLE 33.  PERIOD FOR SALES AND USE TAX HOLIDAY
 SECTION 33.01.  Subsection (a), Section 151.326, Tax Code,
 is amended to read as follows:
 (a)  The sale of an article of clothing or footwear designed
 to be worn on or about the human body is exempted from the taxes
 imposed by this chapter if:
 (1)  the sales price of the article is less than $100;
 and
 (2)  the sale takes place during a period beginning at
 12:01 a.m. on the [third] Friday before the eighth day preceding the
 earliest date on which any school district, other than a district
 operating a year-round system, may begin instruction for the school
 year as prescribed by Section 25.0811(a), Education Code, [in
 August] and ending at 12 midnight on the following Sunday.
 SECTION 33.02.  Subsection (a), Section 151.326, Tax Code,
 as amended by this article, does not affect tax liability accruing
 before the effective date of this article. That liability
 continues in effect as if this article had not been enacted, and the
 former law is continued in effect for the collection of taxes due
 and for civil and criminal enforcement of the liability for those
 taxes.
 ARTICLE 34.  LEGISLATIVE BUDGET BOARD MEETINGS
 SECTION 34.01.  Section 322.003, Government Code, is amended
 by adding Subsection (f) to read as follows:
 (f)  The board shall hold a public hearing each state fiscal
 year to receive a report from the comptroller and receive invited
 testimony regarding the financial condition of this state. The
 report from the comptroller shall include, to the extent
 practicable:
 (1)  information on each revenue source included in
 determining the estimate of anticipated revenue for purposes of the
 most recent statement required by Section 49a, Article III, Texas
 Constitution, and the total net revenue actually collected from
 that source for the state fiscal year as of the end of the most
 recent state fiscal quarter;
 (2)  a comparison for the period described by
 Subdivision (1) of the total net revenue collected from each
 revenue source required to be specified under that subdivision with
 the anticipated revenue from that source that was included for
 purposes of determining the estimate of anticipated revenue in the
 statement required by Section 49a, Article III, Texas Constitution;
 (3)  information on state revenue sources resulting
 from a law taking effect after the comptroller submitted the most
 recent statement required by Section 49a, Article III, Texas
 Constitution, and the estimated total net revenue collected from
 that source for the state fiscal year as of the end of the most
 recent state fiscal quarter;
 (4)  a summary of the indicators of state economic
 trends experienced since the most recent statement required by
 Section 49a, Article III, Texas Constitution; and
 (5)  a summary of anticipated state economic trends and
 the anticipated effect of the trends on state revenue collections.
 SECTION 34.02.  Chapter 322, Government Code, is amended by
 adding Section 322.0081 to read as follows:
 Sec. 322.0081.  BUDGET DOCUMENTS ONLINE. (a)  The board
 shall post on the board's Internet website documents prepared by
 the board that are provided to a committee, subcommittee, or
 conference committee of either house of the legislature in
 connection with an appropriations bill.
 (b)  The board shall post a document to which this section
 applies as soon as practicable after the document is provided to a
 committee, subcommittee, or conference committee.
 (c)  The document must be downloadable and provide data in a
 format that allows the public to search, extract, organize, and
 analyze the information in the document.
 (d)  The requirement under Subsection (a) does not supersede
 any exceptions provided under Chapter 552.
 (e)  The board shall promulgate rules to implement the
 provisions of this section.
 SECTION 34.03.  Chapter 322, Government Code, is amended by
 adding Section 322.022 to read as follows:
 Sec. 322.022.  PUBLIC HEARING ON INTERIM BUDGET REDUCTION
 REQUEST. (a)  In this section:
 (1)  "Interim budget reduction request" means a request
 communicated in any manner for a state agency to make adjustments to
 the strategies, methods of finance, performance measures, or riders
 applicable to the agency through the state budget in effect on the
 date the request is communicated that, if implemented, would reduce
 the agency's total expenditures for the current state fiscal
 biennium to an amount less than the total amount that otherwise
 would be permissible based on the appropriations made to the agency
 in the budget.
 (2)  "State agency" means an office, department, board,
 commission, institution, or other entity to which a legislative
 appropriation is made.
 (b)  A state agency shall provide to the board a detailed
 report of any expenditure reduction plan that:
 (1)  the agency develops in response to an interim
 budget reduction request made by the governor, the lieutenant
 governor, or a member of the legislature, or any combination of
 those persons; and
 (2)  if implemented, would reduce the agency's total
 expenditures for the current state fiscal biennium to an amount
 less than the total amount that otherwise would be permissible
 based on the appropriations made to the agency in the state budget
 for the biennium.
 (c)  The board shall hold a public hearing to solicit
 testimony on an expenditure reduction plan a state agency reports
 to the board as required by Subsection (b) as soon as practicable
 after receiving the report. The agency may not implement any
 element of the plan until the conclusion of the hearing.
 (d)  This section does not apply to an expenditure reduction
 a state agency desires to make that does not directly or indirectly
 result from an interim budget reduction request made by the
 governor, the lieutenant governor, or a member of the legislature,
 or any combination of those persons.
 SECTION 34.04.  Subchapter B, Chapter 403, Government Code,
 is amended by adding Section 403.0145 to read as follows:
 Sec. 403.0145.  PUBLICATION OF FEES SCHEDULE. As soon as
 practicable after the end of each state fiscal year, the
 comptroller shall publish online a schedule of all revenue to the
 state from fees authorized by statute. For each fee, the schedule
 must specify:
 (1)  the statutory authority for the fee;
 (2)  if the fee has been increased during the most
 recent legislative session, the amount of the increase;
 (3)  into which fund the fee revenue will be deposited;
 and
 (4)  the amount of the fee revenue that will be
 considered available for general governmental purposes and
 accordingly considered available for the purpose of certification
 under Section 403.121.
 SECTION 34.05.  Section 404.124, Government Code, is amended
 by amending Subsections (a) and (b) and adding Subsection (b-1) to
 read as follows:
 (a)  Before issuing notes the comptroller shall submit to the
 committee a general revenue cash flow shortfall forecast, based on
 the comptroller's most recent anticipated revenue estimate. The
 forecast must contain a detailed report of estimated revenues and
 expenditures for each month and each major revenue and expenditure
 category and must demonstrate the maximum general revenue cash flow
 shortfall that may be predicted. The committee shall hold a public
 hearing to receive invited testimony on the forecast, including
 testimony on this state's overall economic condition, as soon as
 practicable after receiving the forecast.
 (b)  Based on the forecast and testimony provided at the
 hearing required by Subsection (a), the committee may approve the
 issuance of notes, subject to Subsections (b-1) and (c), and the
 maximum outstanding balance of notes in any fiscal year. The
 outstanding balance may not exceed the maximum temporary cash
 shortfall forecast by the comptroller for any period in the fiscal
 year. The comptroller may not issue notes in excess of the amount
 approved.
 (b-1)  The committee's approval of the issuance of notes
 granted under Subsection (b) expires on the 91st day after the date
 the hearing conducted under Subsection (a) concludes. The
 comptroller may not issue notes on or after the 91st day unless the
 comptroller submits another general revenue cash flow shortfall
 forecast to the committee and the committee subsequently grants
 approval for the issuance of the notes in accordance with the
 procedure required by Subsections (a) and (b). Each subsequent
 approval expires on the 61st day after the date the hearing on which
 the approval was based concludes.
 SECTION 34.06.  It is the intent of the legislature that the
 Legislative Budget Board place information on its Internet website
 that provides additional program detail for items of appropriation
 in the General Appropriations Act. The Legislative Budget Board
 shall include as additional program detail the specific programs
 funded, the source of that funding, and the related statutory
 authorization.
 ARTICLE 35.  ECONOMIC AND WORKFORCE DEVELOPMENT PROGRAMS
 SECTION 35.01.  Section 481.078, Government Code, is amended
 by adding Subsection (m) to read as follows:
 (m)  Notwithstanding Subsections (e) and (e-1), during the
 state fiscal biennium that begins on September 1, 2011, the
 governor may transfer appropriated money from the fund to the Texas
 Workforce Commission to fund the Texas Back to Work Program
 established under Chapter 314, Labor Code.  This subsection expires
 September 1, 2013.
 SECTION  35.02.  Subtitle B, Title 4, Labor Code, is amended
 by adding Chapter 314 to read as follows:
 CHAPTER 314.  TEXAS BACK TO WORK PROGRAM
 Sec. 314.001.  DEFINITION.  In this chapter, "qualified
 applicant" means a person who made less than $40 per hour at the
 person's last employment before becoming unemployed.
 Sec. 314.002.  INITIATIVE ESTABLISHED.  (a)  The Texas Back
 to Work Program is established within the commission.
 (b)  The purpose of the program is to establish
 public-private partnerships with employers to transition residents
 of this state from receiving unemployment compensation to becoming
 employed as members of the workforce.
 (c)  An employer that participates in the initiative may
 receive a wage subsidy for hiring one or more qualified applicants
 who are unemployed at the time of hire.
 (d)  The commission, for the purposes of this section, may use:
 (1)  money appropriated to the commission; and
 (2)  money that is transferred to the commission from
 trusteed programs within the office of the governor, including:
 (A)  appropriated money from the Texas Enterprise
 Fund;
 (B)  available federal funds; and
 (C)  money from other appropriate, statutorily
 authorized funding sources.
 Sec. 314.003.  RULES.  The commission may adopt rules as
 necessary to implement this chapter.
 ARTICLE 36.  ELIGIBILITY OF SURVIVING SPOUSE OF DISABLED VETERAN
 TO PAY AD VALOREM TAXES ON RESIDENCE HOMESTEAD IN INSTALLMENTS
 SECTION 36.01.  Section 31.031, Tax Code, is amended by
 amending Subsection (a) and adding Subsection (a-1) to read as
 follows:
 (a)  This section applies only to:
 (1)  [If before the delinquency date] an individual who
 is:
 (A)  disabled or at least 65 years of age; and
 (B)  [is] qualified for an exemption under Section
 11.13(c); or
 (2)  an individual who is:
 (A)  the unmarried surviving spouse of a disabled
 veteran; and
 (B)  qualified for an exemption under Section
 11.22.
 (a-1)  If before the delinquency date an individual to whom
 this section applies pays at least one-fourth of a taxing unit's
 taxes imposed on property that the person owns and occupies as a
 residence homestead, accompanied by notice to the taxing unit that
 the person will pay the remaining taxes in installments, the person
 may pay the remaining taxes without penalty or interest in three
 equal installments.  The first installment must be paid before
 April 1, the second installment before June 1, and the third
 installment before August 1.
 SECTION 36.02.  This article applies only to an ad valorem
 tax year that begins on or after the effective date of this article.
 SECTION 36.03.  This article takes effect January 1, 2012.
 ARTICLE 37.  EXTENSION OF FRANCHISE TAX EXEMPTION
 SECTION 37.01.  Subsection (c), Section 1, Chapter 286 (H.B.
 4765), Acts of the 81st Legislature, Regular Session, 2009, is
 amended to read as follows:
 (c)  This [If this section takes effect, this] section
 expires December 31, 2013 [2011].
 SECTION 37.02.  Subsection (b), Section 2, Chapter 286 (H.B.
 4765), Acts of the 81st Legislature, Regular Session, 2009, is
 amended to read as follows:
 (b)  This section takes effect January 1, 2014 [2012, if H.B.
 No. 2154, Acts of the 81st Legislature, Regular Session, 2009,
 amends Section 155.0211, Tax Code, in a manner that results in an
 increase in the revenue from the tax under that section during the
 state fiscal biennium beginning September 1, 2009, that is
 attributable to that change, and that Act is enacted and becomes
 law.    If H.B. No. 2154, Acts of the 81st Legislature, Regular
 Session, 2009, does not amend Section 155.0211, Tax Code, in that
 manner or is not enacted or does not become law, this section takes
 effect January 1, 2010].
 SECTION 37.03.  Subsection (b), Section 3, Chapter 286 (H.B.
 4765), Acts of the 81st Legislature, Regular Session, 2009, is
 amended to read as follows:
 (b)  This section takes effect January 1, 2014 [2012, if H.B.
 No. 2154, Acts of the 81st Legislature, Regular Session, 2009,
 amends Section 155.0211, Tax Code, in a manner that results in an
 increase in the revenue from the tax under that section during the
 state fiscal biennium beginning September 1, 2009, that is
 attributable to that change, and that Act is enacted and becomes
 law.    If H.B. No. 2154, Acts of the 81st Legislature, Regular
 Session, 2009, does not amend Section 155.0211, Tax Code, in that
 manner or is not enacted or does not become law, this section takes
 effect January 1, 2010].
 SECTION 37.04.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 this article to have immediate effect, this article takes effect on
 the 91st day after the last day of the legislative session.
 ARTICLE 38.  FISCAL MATTERS REGARDING ASSISTANT PROSECUTORS
 SECTION 38.01.  Subsection (f), Section 41.255, Government
 Code, is amended to read as follows:
 (f)  A county is not required to pay longevity supplements if
 the county does not receive funds from the comptroller as provided
 by Subsection (d). If sufficient funds are not available to meet
 the requests made by counties for funds for payment of assistant
 prosecutors qualified for longevity supplements:
 (1)  [,] the comptroller shall apportion the available
 funds to the eligible counties by reducing the amount payable to
 each county on an equal percentage basis;
 (2)  a county is not entitled to receive the balance of
 the funds at a later date; and
 (3)  the longevity pay program under this chapter is
 suspended to the extent of the insufficiency.  [A county that
 receives from the comptroller an amount less than the amount
 certified by the county to the comptroller under Subsection (d)
 shall apportion the funds received by reducing the amount payable
 to eligible assistant prosecutors on an equal percentage basis, but
 is not required to use county funds to make up any difference
 between the amount certified and the amount received.]
 SECTION 38.02.  Subsection (g), Section 41.255, Government
 Code, is repealed.
 ARTICLE 39.  FISCAL MATTERS REGARDING PROCESS SERVERS
 SECTION 39.01.  Subchapter B, Chapter 72, Government Code,
 is amended by adding Sections 72.013 and 72.014 to read as follows:
 Sec. 72.013.  PROCESS SERVER REVIEW BOARD.  A person
 appointed to the process server review board established by supreme
 court order serves without compensation but is entitled to
 reimbursement for actual and necessary expenses incurred in
 traveling and performing official board duties.
 Sec. 72.014.  CERTIFICATION DIVISION.  The office shall
 establish a certification division to oversee the regulatory
 programs assigned to the office by law or by the supreme court.
 Fees collected under Section 51.008 may be appropriated to the
 office to support the certification division.
 ARTICLE 40.  FISCAL MATTERS REGARDING REIMBURSEMENT OF JURORS
 SECTION 40.01.  Section 61.001, Government Code, is amended
 by adding Subsections (a-1) and (a-2) to read as follows:
 (a-1)  Notwithstanding Subsection (a), and except as
 provided by Subsection (c), during the state fiscal biennium
 beginning September 1, 2011, a person who reports for jury service
 in response to the process of a court is entitled to receive as
 reimbursement for travel and other expenses an amount:
 (1)  not less than $6 for the first day or fraction of
 the first day the person is in attendance in court in response to
 the process and discharges the person's duty for that day; and
 (2)  not less than the amount provided in the General
 Appropriations Act for each day or fraction of each day the person
 is in attendance in court in response to the process after the first
 day and discharges the person's duty for that day.
 (a-2)  This subsection and Subsection (a-1) expire September
 1, 2013.
 SECTION 40.02.  Section 61.0015, Government Code, is amended
 by adding Subsections (a-1), (a-2), and (e-1) to read as follows:
 (a-1)  Notwithstanding Subsection (a), during the state
 fiscal biennium beginning September 1, 2011, the state shall
 reimburse a county the appropriate amount as provided in the
 General Appropriations Act for the reimbursement paid under Section
 61.001 to a person who reports for jury service in response to the
 process of a court for each day or fraction of each day after the
 first day in attendance in court in response to the process.
 (a-2)  This subsection and Subsections (a-1) and (e-1)
 expire September 1, 2013.
 (e-1)  Notwithstanding Subsection (e), during the state
 fiscal biennium beginning September 1, 2011,  if a payment on a
 county's claim for reimbursement is reduced under Subsection (d),
 or if a county fails to file the claim for reimbursement in a timely
 manner, the comptroller may, as provided by rule, apportion the
 payment of the balance owed the county.  The comptroller's rules may
 permit a different rate of reimbursement for each quarterly payment
 under Subsection (c).
 ARTICLE 41.  COLLECTION IMPROVEMENT PROGRAM
 SECTION 41.01.  Subsections (b), (c), (e), (h), (i), and
 (j), Article 103.0033, Code of Criminal Procedure, as effective
 September 1, 2011, are amended to read as follows:
 (b)  This article applies only to:
 (1)  a [each] county with a population of 50,000 or
 greater; [in this state] and
 (2)  a [to each] municipality with a population of
 100,000 or greater.
 (c)  Unless granted a waiver under Subsection (h), each
 county and municipality shall develop and implement a program that
 complies with the prioritized implementation schedule under
 Subsection (h).  [A county may develop and implement a program that
 complies with the prioritized implementation schedule under
 Subsection (h).]  A county program must include district, county,
 and justice courts.
 (e)  Not later than June 1 of each year, the office shall
 identify those counties and municipalities that:
 (1)  have not implemented a program; and
 (2)  are able [planning] to implement a program before
 April 1 of the following year.
 (h)  The office may:
 (1)  use case dispositions, population, revenue data,
 or other appropriate measures to develop a prioritized
 implementation schedule for programs; and
 (2)  [for a municipality,] determine whether it is not
 [actually] cost-effective to implement a program in a county or
 [the] municipality and grant a waiver to the county or
 municipality.
 (i)  Each county [that implements a program] and [each]
 municipality shall at least annually submit to the office a written
 report that includes updated information regarding the program, as
 determined by the office.  The report must be in a form approved by
 the office.
 (j)  The office shall periodically audit counties and
 municipalities to verify information reported under Subsection (i)
 and confirm that the county or municipality is conforming with
 requirements relating to the program.
 SECTION 41.02.  Subsection (e), Section 133.058, Local
 Government Code, as effective September 1, 2011, is amended to read
 as follows:
 (e)  A municipality or county may not retain a service fee
 if, during an audit under Article 103.0033(j), Code of Criminal
 Procedure, the Office of Court Administration of the Texas Judicial
 System determines that the municipality or county is not in
 compliance with Article 103.0033, Code of Criminal Procedure, and
 in the case of a municipality if the municipality is unable to
 reestablish compliance on or before the 180th day after the date the
 municipality receives written notice of noncompliance from the
 office. After any period in which the municipality or county
 becomes unable to retain a service fee under this subsection, the
 municipality or county may begin once more to retain the fee only on
 receipt of a written confirmation from the office that the
 municipality or county is in compliance with Article 103.0033, Code
 of Criminal Procedure.
 SECTION 41.03.  Subsection (c-1), Section 133.103, Local
 Government Code, as effective September 1, 2011, is amended to read
 as follows:
 (c-1)  The treasurer shall send to the comptroller 100
 percent of the fees collected under this section [by a
 municipality] if, during an audit under Article 103.0033(j), Code
 of Criminal Procedure, the Office of Court Administration of the
 Texas Judicial System determines that the municipality or county is
 not in compliance with Article 103.0033, Code of Criminal
 Procedure, and in the case of a municipality if the municipality is
 unable to reestablish compliance on or before the 180th day after
 the date the municipality receives written notice of noncompliance
 from the office.  After any period in which the treasurer is
 required under this subsection to send 100 percent of the fees
 collected under this section to the comptroller, the municipality
 or county shall begin once more to dispose of fees as otherwise
 provided by this section on receipt of a written confirmation from
 the office that the municipality or county is in compliance with
 Article 103.0033, Code of Criminal Procedure.
 SECTION 41.04.  The change in law made by this article in
 amending Subsection (e), Section 133.058, and Subsection (c-1),
 Section 133.103, Local Government Code, applies only to an audit
 commenced on or after the effective date of this article. An audit
 commenced before the effective date of this article is governed by
 the law in effect when the audit was commenced, and the former law
 is continued in effect for that purpose.
 SECTION 41.05.  The change in law made by this article in
 amending Article 103.0033, Code of Criminal Procedure, applies only
 to a court cost, fee, or fine imposed in a criminal case on or after
 the effective date of this article. A court cost, fee, or fine
 imposed in a criminal case before the effective date of this article
 is governed by the law in effect on the date the cost, fee, or fine
 was imposed, and the former law is continued in effect for that
 purpose.
 ARTICLE 42.  CORRECTIONAL MANAGED HEALTH CARE
 SECTION 42.01.  Subsection (a), Section 501.133, Government
 Code, is amended to read as follows:
 (a)  The committee consists of five voting [nine] members and
 one nonvoting member [appointed] as follows:
 (1)  one member [two members] employed full-time by the
 department, [at least one of whom is a physician,] appointed by the
 executive director;
 (2)  one member who is a physician and [two members]
 employed full-time by The University of Texas Medical Branch at
 Galveston, [at least one of whom is a physician,] appointed by the
 president of the medical branch;
 (3)  one member who is a physician and [two members]
 employed full-time by the Texas Tech University Health Sciences
 Center, [at least one of whom is a physician,] appointed by the
 president of the university; [and]
 (4)  two [three] public members appointed by the
 governor who are not affiliated with the department or with any
 entity with which the committee has contracted to provide health
 care services under this chapter, at least one [two] of whom is
 [are] licensed to practice medicine in this state; and
 (5)  the state Medicaid director, to serve ex officio
 as a nonvoting member.
 SECTION 42.02.  Subsection (b), Section 501.135, Government
 Code, is amended to read as follows:
 (b)  A person may not be an appointed [a] member of the
 committee and may not be a committee employee employed in a "bona
 fide executive, administrative, or professional capacity," as that
 phrase is used for purposes of establishing an exemption to the
 overtime provisions of the federal Fair Labor Standards Act of 1938
 (29 U.S.C. Section 201 et seq.) and its subsequent amendments if:
 (1)  the person is an officer, employee, or paid
 consultant of a Texas trade association in the field of health care
 or health care services; or
 (2)  the person's spouse is an officer, manager, or paid
 consultant of a Texas trade association in the field of health care
 or health care services.
 SECTION 42.03.  Section 501.136, Government Code, is amended
 to read as follows:
 Sec. 501.136.  TERMS OF OFFICE FOR PUBLIC MEMBERS.
 Committee members appointed by the governor serve staggered
 four-year [six-year] terms, with the term of one of those members
 expiring on February 1 of each odd-numbered year. Other committee
 members serve at the will of the appointing official or until
 termination of the member's employment with the entity the member
 represents.
 SECTION 42.04.  Section 501.147, Government Code, is amended
 to read as follows:
 Sec. 501.147.  DEPARTMENT [COMMITTEE] AUTHORITY TO
 CONTRACT. (a)  The department [committee] may enter into a
 contract [on behalf of the department] to fully implement the
 managed health care plan under this subchapter. A contract entered
 into under this subsection must include provisions necessary to
 ensure that The University of Texas Medical Branch at Galveston is
 eligible for and makes reasonable efforts to participate in the
 purchase of prescription drugs under Section 340B, Public Health
 Service Act (42 U.S.C. Section 256b).
 (b)  The department [committee] may[, in addition to
 providing services to the department,] contract with other
 governmental entities for similar health care services and
 integrate those services into the managed health care provider
 network.
 (c)  In contracting for implementation of the managed health
 care plan, the department [committee], to the extent possible,
 shall integrate the managed health care provider network with the
 public medical schools of this state and the component and
 affiliated hospitals of those medical schools. The contract must
 authorize The University of Texas Medical Branch at Galveston to
 contract directly with the Texas Tech University Health Sciences
 Center for the provision of health care services. The Texas Tech
 University Health Sciences Center shall cooperate with The
 University of Texas Medical Branch at Galveston in its efforts to
 participate in the purchase of prescription drugs under Section
 340B, Public Health Service Act (42 U.S.C. Section 256b).
 (d)  For services that the public medical schools and their
 components and affiliates cannot provide, the department
 [committee] shall initiate a competitive bidding process for
 contracts with other providers for medical care to persons confined
 by the department.
 (e)  The department, in cooperation with the committee, may
 contract with an individual or firm for a biennial review of, and
 report concerning, expenditures under the managed health care plan.
 The review must be conducted by an individual or firm experienced in
 auditing the state's Medicaid expenditures and other medical
 expenditures. Not later than September 1 of each even-numbered
 year, the department shall submit a copy of a report under this
 section to the health care providers that are part of the managed
 health care provider network established under this subchapter, the
 Legislative Budget Board, the governor, the lieutenant governor,
 and the speaker of the house of representatives.
 SECTION 42.05.  Subsection (a), Section 501.148, Government
 Code, is amended to read as follows:
 (a)  The committee may [shall]:
 (1)  develop statewide policies for the delivery of
 correctional health care;
 (2)  [maintain contracts for health care services in
 consultation with the department and the health care providers;
 [(3)]  communicate with the department and the
 legislature regarding the financial needs of the correctional
 health care system;
 (3)  in conjunction with the department,
 [(4)     allocate funding made available through legislative
 appropriations for correctional health care;
 [(5)]  monitor the expenditures of The University of
 Texas Medical Branch at Galveston and the Texas Tech University
 Health Sciences Center to ensure that those expenditures comply
 with applicable statutory and contractual requirements;
 (4) [(6)]  serve as a dispute resolution forum in the
 event of a disagreement relating to inmate health care services
 between:
 (A)  the department and the health care providers;
 or
 (B)  The University of Texas Medical Branch at
 Galveston and the Texas Tech University Health Sciences Center;
 (5) [(7)]  address problems found through monitoring
 activities by the department and health care providers, including
 requiring corrective action if care does not meet expectations as
 determined by those monitoring activities;
 (6) [(8)]  identify and address long-term needs of the
 correctional health care system; and
 (7) [(9)]  report to the Texas Board of Criminal
 Justice at the board's regularly scheduled meeting each quarter on
 the committee's policy recommendations [decisions], the financial
 status of the correctional health care system, and corrective
 actions taken by or required of the department or the health care
 providers.
 SECTION 42.06.  (a)  The Correctional Managed Health Care
 Committee established under Section 501.133, Government Code, as
 that section existed before amendment by this article, is abolished
 effective November 30, 2011.
 (b)  An appointing official under Section 501.133,
 Government Code, shall appoint the members of the Correctional
 Managed Health Care Committee under Section 501.133, Government
 Code, as amended by this Act, not later than November 30, 2011.  The
 governor shall appoint one public member to serve a term that
 expires February 1, 2013, and one public member to serve a term that
 expires February 1, 2015.
 (c)  The term of a person who is serving as a member of the
 Correctional Managed Health Care Committee immediately before the
 abolition of that committee under Subsection (a) of this section
 expires on November 30, 2011. Such a person is eligible for
 appointment by an appointing official to the new committee under
 Section 501.133, Government Code, as amended by this article.
 ARTICLE 43. GENERAL HOUSING MATTERS
 SECTION 43.01.  Section 481.078, Government Code, is amended
 by amending Subsection (c) and adding Subsection (d-1) to read as
 follows:
 (c)  Except as provided by Subsections [Subsection] (d) and
 (d-1), the fund may be used only for economic development,
 infrastructure development, community development, job training
 programs, and business incentives.
 (d-1)  The fund may be used for the Texas homeless housing
 and services program administered by the Texas Department of
 Housing and Community Affairs under Section 2306.2585.  The
 governor may transfer appropriations from the fund to the Texas
 Department of Housing and Community Affairs to fund the Texas
 homeless housing and services program.  Subsections (e-1), (f),
 (f-1), (f-2), (g), (h), (h-1), (i), and (j) and Section 481.080 do
 not apply to a grant awarded for a purpose specified by this
 subsection.
 SECTION 43.02.  Section 481.079, Government Code, is amended
 by adding Subsection (a-1) to read as follows:
 (a-1)  For grants awarded for a purpose specified by Section
 481.078(d-1), the report must include only the amount and purpose
 of each grant.
 SECTION 43.03.  Subchapter K, Chapter 2306, Government Code,
 is amended by adding Section 2306.2585 to read as follows:
 Sec. 2306.2585.  HOMELESS HOUSING AND SERVICES PROGRAM.
 (a)  The department may administer a homeless housing and services
 program in each municipality in this state with a population of
 285,500 or more to:
 (1)  provide for the construction, development, or
 procurement of housing for homeless persons; and
 (2)  provide local programs to prevent and eliminate
 homelessness.
 (b)  The department may adopt rules to govern the
 administration of the program, including rules that:
 (1)  provide for the allocation of any available
 funding; and
 (2)  provide detailed guidelines as to the scope of the
 local programs in the municipalities described by Subsection (a).
 (c)  The department may use any available revenue, including
 legislative appropriations, appropriation transfers from the
 trusteed programs within the office of the governor, including
 authorized appropriations from the Texas Enterprise Fund,
 available federal funds, and any other statutorily authorized and
 appropriate funding sources transferred from the trusteed programs
 within the office of the governor, for the purposes of this section.
 The department shall solicit and accept gifts and grants for the
 purposes of this section. The department shall use gifts and grants
 received for the purposes of this section before using any other
 revenue.
 SECTION 43.04.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 immediate effect, this article takes effect on the 91st day after
 the last day of the legislative session.
 ARTICLE 44.  UNIFORM GRANT AND CONTRACT MANAGEMENT
 SECTION 44.01.  Section 783.004, Government Code, is amended
 to read as follows:
 Sec. 783.004.  OFFICE OF THE COMPTROLLER [GOVERNOR'S
 OFFICE]. The office of the comptroller [governor's office] is the
 state agency for uniform grant and contract management.
 SECTION 44.02.  Subsections (a) and (b), Section 783.005,
 Government Code, are amended to read as follows:
 (a)  The comptroller [governor's office] shall develop
 uniform and concise language for any assurances that a local
 government is required to make to a state agency.
 (b)  The comptroller [governor's office] may:
 (1)  categorize assurances according to the type of
 grant or contract;
 (2)  designate programs to which the assurances are
 applicable; and
 (3)  revise the assurances.
 SECTION 44.03.  Section 783.006, Government Code, is amended
 to read as follows:
 Sec. 783.006.  STANDARD FINANCIAL MANAGEMENT CONDITIONS.
 (a)  The comptroller [governor's office] shall compile and
 distribute to each state agency an official compilation of standard
 financial management conditions.
 (b)  The comptroller [governor's office] shall develop the
 compilation from Federal Management Circular A-102 or from a
 revision of that circular and from other applicable statutes and
 regulations.
 (c)  The comptroller [governor's office] shall include in
 the compilation official commentary regarding administrative or
 judicial interpretations that affect the application of financial
 management standards.
 (d)  The comptroller [governor's office] may:
 (1)  categorize the financial management conditions
 according to the type of grant or contract;
 (2)  designate programs to which the conditions are
 applicable; and
 (3)  revise the conditions.
 SECTION 44.04.  Subsection (d), Section 783.007, Government
 Code, is amended to read as follows:
 (d)  The agency shall file a notice of each proposed rule
 that establishes a variation from uniform assurances or standard
 conditions with the comptroller [governor's office].
 SECTION 44.05.  Subsection (b), Section 783.008, Government
 Code, is amended to read as follows:
 (b)  On receipt of a request for a single audit or audit
 coordination, the comptroller [governor's office] in consultation
 with the state auditor shall not later than the 30th day after the
 date of the request designate a single state agency to coordinate
 state audits of the local government.
 ARTICLE 45.  FRANCHISE TAX APPLICABILITY AND EXCLUSIONS
 SECTION 45.01.  Section 171.0001, Tax Code, is amended by
 adding Subdivisions (1-a), (10-a), (10-b), and (11-b) to read as
 follows:
 (1-a)  "Artist" means a natural person or an entity
 that contracts to perform or entertain at a live entertainment
 event.
 (10-a)  "Live entertainment event" means an event that
 occurs on a specific date to which tickets are sold in advance by a
 third-party vendor and at which:
 (A)  a natural person or a group of natural
 persons, physically present at the venue, performs for the purpose
 of entertaining a ticket holder who is present at the event;
 (B)  a traveling circus or animal show performs
 for the purpose of entertaining a ticket holder who is present at
 the event; or
 (C)  a historical, museum-quality artifact is on
 display in an exhibition.
 (10-b)  "Live event promotion services" means services
 related to the promotion, coordination, operation, or management of
 a live entertainment event.  The term includes services related to:
 (A)  the provision of staff for the live
 entertainment event; or
 (B)  the scheduling and promotion of an artist
 performing or entertaining at the live entertainment event.
 (11-b)  "Qualified live event promotion company" means
 a taxable entity that:
 (A)  receives at least 50 percent of the entity's
 annual total revenue from the provision or arrangement for the
 provision of three or more live event promotion services;
 (B)  maintains a permanent nonresidential office
 from which the live event promotion services are provided or
 arranged;
 (C)  employs 10 or more full-time employees during
 all or part of the period for which taxable margin is calculated;
 (D)  does not provide services for a wedding or
 carnival; and
 (E)  is not a movie theater.
 SECTION 45.02.  Subsection (c), Section 171.0002, Tax Code,
 is amended to read as follows:
 (c)  "Taxable entity" does not include an entity that is:
 (1)  a grantor trust as defined by Sections 671 and
 7701(a)(30)(E), Internal Revenue Code, all of the grantors and
 beneficiaries of which are natural persons or charitable entities
 as described in Section 501(c)(3), Internal Revenue Code, excluding
 a trust taxable as a business entity pursuant to Treasury
 Regulation Section 301.7701-4(b);
 (2)  an estate of a natural person as defined by Section
 7701(a)(30)(D), Internal Revenue Code, excluding an estate taxable
 as a business entity pursuant to Treasury Regulation Section
 301.7701-4(b);
 (3)  an escrow;
 (4)  a real estate investment trust (REIT) as defined
 by Section 856, Internal Revenue Code, and its "qualified REIT
 subsidiary" entities as defined by Section 856(i)(2), Internal
 Revenue Code, provided that:
 (A)  a REIT with any amount of its assets in direct
 holdings of real estate, other than real estate it occupies for
 business purposes, as opposed to holding interests in limited
 partnerships or other entities that directly hold the real estate,
 is a taxable entity; and
 (B)  a limited partnership or other entity that
 directly holds the real estate as described in Paragraph (A) is not
 exempt under this subdivision, without regard to whether a REIT
 holds an interest in it;
 (5)  a real estate mortgage investment conduit (REMIC),
 as defined by Section 860D, Internal Revenue Code;
 (6)  a nonprofit self-insurance trust created under
 Chapter 2212, Insurance Code, or a predecessor statute;
 (7)  a trust qualified under Section 401(a), Internal
 Revenue Code; [or]
 (8)  a trust or other entity that is exempt under
 Section 501(c)(9), Internal Revenue Code; or
 (9)  an unincorporated entity organized as a political
 committee under the Election Code or the provisions of the Federal
 Election Campaign Act of 1971 (2 U.S.C. Section 431 et seq.).
 SECTION 45.03.  Section 171.1011, Tax Code, is amended by
 adding Subsections (g-5) and (g-7) to read as follows:
 (g-5)  A taxable entity that is a qualified live event
 promotion company shall exclude from its total revenue, to the
 extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3), a
 payment made to an artist in connection with the provision of a live
 entertainment event or live event promotion services.
 (g-7)  A taxable entity that is a qualified courier and
 logistics company shall exclude from its total revenue, to the
 extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3),
 subcontracting payments made by the taxable entity to nonemployee
 agents for the performance of delivery services on behalf of the
 taxable entity.  For purposes of this subsection, "qualified
 courier and logistics company" means a taxable entity that:
 (1)  receives at least 80 percent of the taxable
 entity's annual total revenue from its entire business from a
 combination of at least two of the following courier and logistics
 services:
 (A)  expedited same-day delivery of an envelope,
 package, parcel, roll of architectural drawings, box, or pallet;
 (B)  temporary storage and delivery of the
 property of another entity, including an envelope, package, parcel,
 roll of architectural drawings, box, or pallet; and
 (C)  brokerage of same-day or expedited courier
 and logistics services to be completed by a person or entity under a
 contract that includes a contractual obligation by the taxable
 entity to make payments to the person or entity for those services;
 (2)  during the period on which margin is based, is
 registered as a motor carrier under Chapter 643, Transportation
 Code, and if the taxable entity operates on an interstate basis, is
 registered as a motor carrier or broker under the unified carrier
 registration system, as defined by Section 643.001, Transportation
 Code, during that period;
 (3)  maintains an automobile liability insurance
 policy covering individuals operating vehicles owned, hired, or
 otherwise used in the taxable entity's business, with a combined
 single limit for each occurrence of at least $1 million;
 (4)  maintains at least $25,000 of cargo insurance;
 (5)  maintains a permanent nonresidential office from
 which the courier and logistics services are provided or arranged;
 (6)  has at least five full-time employees during the
 period on which margin is based;
 (7)  is not doing business as a livery service, floral
 delivery service, motor coach service, taxicab service, building
 supply delivery service, water supply service, fuel or energy
 supply service, restaurant supply service, commercial moving and
 storage company, or overnight delivery service; and
 (8)  is not delivering items that the taxable entity or
 an affiliated entity sold.
 SECTION 45.04.  This article applies only to a report
 originally due on or after January 1, 2012.
 SECTION 45.05.  This article takes effect January 1, 2012.
 ARTICLE 46.  AD VALOREM TAXATION OF LAND USED TO RAISE OR KEEP BEES
 SECTION 46.01.  Subdivision (2), Section 23.51, Tax Code, is
 amended to read as follows:
 (2)  "Agricultural use" includes but is not limited to
 the following activities:  cultivating the soil, producing crops
 for human food, animal feed, or planting seed or for the production
 of fibers; floriculture, viticulture, and horticulture; raising or
 keeping livestock; raising or keeping exotic animals for the
 production of human food or of fiber, leather, pelts, or other
 tangible products having a commercial value; planting cover crops
 or leaving land idle for the purpose of participating in a
 governmental program, provided the land is not used for residential
 purposes or a purpose inconsistent with agricultural use; and
 planting cover crops or leaving land idle in conjunction with
 normal crop or livestock rotation procedure.  The term also
 includes the use of land to produce or harvest logs and posts for
 the use in constructing or repairing fences, pens, barns, or other
 agricultural improvements on adjacent qualified open-space land
 having the same owner and devoted to a different agricultural use.
 The term also includes the use of land for wildlife management.  The
 term also includes the use of land to raise or keep bees for
 pollination or for the production of human food or other tangible
 products having a commercial value, provided that the land used is
 not less than 5 or more than 20 acres.
 SECTION 46.02.  This article applies only to the appraisal
 of land for ad valorem tax purposes for a tax year that begins on or
 after the effective date of this Act.
 ARTICLE 47.  QUINQUENNIAL REPORTING OF CERTAIN INFORMATION FOR
 UNCLAIMED PROPERTY
 SECTION 47.01.  Subsection (a), Section 411.0111,
 Government Code, is amended to read as follows:
 (a)  Not later than June 1 of every fifth [each] year, the
 department shall provide to the comptroller, for the purpose of
 assisting the comptroller in the identification of persons entitled
 to unclaimed property reported to the comptroller, the name,
 address, social security number, date of birth, and driver's
 license or state identification number of each person about whom
 the department has such information in its records.
 SECTION 47.02.  Subsection (a), Section 821.010, Government
 Code, is amended to read as follows:
 (a)  Not later than June 1 of every fifth [each] year, the
 retirement system shall provide to the comptroller, for the purpose
 of assisting the comptroller in the identification of persons
 entitled to unclaimed property reported to the comptroller, the
 name, address, social security number, and date of birth of each
 member, retiree, and beneficiary from the retirement system's
 records.
 SECTION 47.03.  Subsection (a), Section 301.086, Labor Code,
 is amended to read as follows:
 (a)  Not later than June 1 of every fifth [each] year, the
 commission shall provide to the comptroller, for the purpose of
 assisting the comptroller in the identification of persons entitled
 to unclaimed property reported to the comptroller, the name,
 address, social security number, and date of birth of each person
 about whom the commission has such information in its records.
 SECTION 47.04.  The Department of Public Safety, the
 Employees Retirement System of Texas, the Teacher Retirement System
 of Texas, and the Texas Workforce Commission shall provide
 information to the comptroller as required by Subsection (a),
 Section 411.0111, and Subsection (a), Section 821.010, Government
 Code, and Subsection (a), Section 301.086, Labor Code, as amended
 by this article, beginning in 2016.
 ARTICLE 48.  AD VALOREM TAXATION OF CERTAIN STORED PROPERTY
 SECTION 48.01.  Subsection (a), Section 11.253, Tax Code, is
 amended by amending Subdivision (2) and adding Subdivisions (5) and
 (6) to read as follows:
 (2)  "Goods-in-transit" means tangible personal
 property that:
 (A)  is acquired in or imported into this state to
 be forwarded to another location in this state or outside this
 state;
 (B)  is stored under a contract of bailment by a
 public warehouse operator [detained] at one or more public
 warehouse facilities [a location] in this state that are not in any
 way owned or controlled by [in which] the owner of the personal
 property [does not have a direct or indirect ownership interest]
 for the account of [assembling, storing, manufacturing,
 processing, or fabricating purposes by] the person who acquired or
 imported the property;
 (C)  is transported to another location in this
 state or outside this state not later than 175 days after the date
 the person acquired the property in or imported the property into
 this state; and
 (D)  does not include oil, natural gas, petroleum
 products, aircraft, dealer's motor vehicle inventory, dealer's
 vessel and outboard motor inventory, dealer's heavy equipment
 inventory, or retail manufactured housing inventory.
 (5)  "Bailee" and "warehouse" have the meanings
 assigned by Section 7.102, Business & Commerce Code.
 (6)  "Public warehouse operator" means a person that:
 (A)  is both a bailee and a warehouse; and
 (B)  stores under a contract of bailment, at one
 or more public warehouse facilities, tangible personal property
 that is owned by other persons solely for the account of those
 persons and not for the operator's account.
 SECTION 48.02.  Section 11.253, Tax Code, is amended by
 amending Subsections (e) and (h) and adding Subsections (j-1) and
 (j-2) to read as follows:
 (e)  In determining the market value of goods-in-transit
 that in the preceding year were [assembled,] stored[, manufactured,
 processed, or fabricated] in this state, the chief appraiser shall
 exclude the cost of equipment, machinery, or materials that entered
 into and became component parts of the goods-in-transit but were
 not themselves goods-in-transit or that were not transported to
 another location in this state or outside this state before the
 expiration of 175 days after the date they were brought into this
 state by the property owner or acquired by the property owner in
 this state.  For component parts held in bulk, the chief appraiser
 may use the average length of time a component part was held by the
 owner of the component parts during the preceding year at a location
 in this state that was not owned by or under the control of the owner
 of the component parts in determining whether the component parts
 were transported to another location in this state or outside this
 state before the expiration of 175 days.
 (h)  The chief appraiser by written notice delivered to a
 property owner who claims an exemption under this section may
 require the property owner to provide copies of property records so
 the chief appraiser can determine the amount and value of
 goods-in-transit and that the location in this state where the
 goods-in-transit were detained for storage [assembling, storing,
 manufacturing, processing, or fabricating purposes] was not owned
 by or under the control of the owner of the goods-in-transit.  If
 the property owner fails to deliver the information requested in
 the notice before the 31st day after the date the notice is
 delivered to the property owner, the property owner forfeits the
 right to claim or receive the exemption for that year.
 (j-1)  Notwithstanding Subsection (j) or official action
 that was taken under that subsection before October 1, 2011, to tax
 goods-in-transit exempt under Subsection (b) and not exempt under
 other law, a taxing unit may not tax such goods-in-transit in a tax
 year that begins on or after January 1, 2012, unless the governing
 body of the taxing unit takes action on or after October 1, 2011, in
 the manner required for official action by the governing body, to
 provide for the taxation of the goods-in-transit.  The official
 action to tax the goods-in-transit must be taken before January 1 of
 the first tax year in which the governing body proposes to tax
 goods-in-transit.  Before acting to tax the exempt property, the
 governing body of the taxing unit must conduct a public hearing as
 required by Section 1-n(d), Article VIII, Texas Constitution.  If
 the governing body of a taxing unit provides for the taxation of the
 goods-in-transit as provided by this subsection, the exemption
 prescribed by Subsection (b) does not apply to that unit.  The
 goods-in-transit remain subject to taxation by the taxing unit
 until the governing body of the taxing unit, in the manner required
 for official action, rescinds or repeals its previous action to tax
 goods-in-transit or otherwise determines that the exemption
 prescribed by Subsection (b) will apply to that taxing unit.
 (j-2)  Notwithstanding Subsection (j-1), if under Subsection
 (j) the governing body of a taxing unit, before October 1, 2011,
 took action to provide for the taxation of goods-in-transit and
 pledged the taxes imposed on the goods-in-transit for the payment
 of a debt of the taxing unit, the tax officials of the taxing unit
 may continue to impose the taxes against the goods-in-transit until
 the debt is discharged, if cessation of the imposition would impair
 the obligation of the contract by which the debt was created.
 SECTION 48.03.  Subdivision (2), Subsection (a), Section
 11.253, Tax Code, as amended by this article, applies only to an ad
 valorem tax year that begins on or after January 1, 2012.
 SECTION 48.04.  (a)  Except as provided by Subsection (b) of
 this section, this article takes effect January 1, 2012.
 (b)  Section 48.02 of this article takes effect October 1,
 2011.
 ARTICLE 49.  FISCAL MATTERS CONCERNING ADVANCED PLACEMENT
 SECTION 49.01.  Subsection (h), Section 28.053, Education
 Code, is amended to read as follows:
 (h)  The commissioner may enter into agreements with the
 college board and the International Baccalaureate Organization to
 pay for all examinations taken by eligible public school students.
 An eligible student is a student [one] who:
 (1)  takes a college advanced placement or
 international baccalaureate course at a public school or who is
 recommended by the student's principal or teacher to take the test;
 and
 (2)  demonstrates financial need as determined in
 accordance with guidelines adopted by the board that are consistent
 with the definition of financial need adopted by the college board
 or the International Baccalaureate Organization.
 ARTICLE 50.  FISCAL MATTERS CONCERNING TUITION EXEMPTIONS
 SECTION 50.01.  Section 54.214, Education Code, is amended
 by amending Subsection (c) and adding Subsection (c-1) to read as
 follows:
 (c)  To be eligible for an exemption under this section, a
 person must:
 (1)  be a resident of this state;
 (2)  be a school employee serving in any capacity;
 (3)  for the initial term or semester for which the
 person receives an exemption under this section, have worked as an
 educational aide for at least one school year during the five years
 preceding that term or semester;
 (4)  establish financial need as determined by
 coordinating board rule;
 (5)  be enrolled at the institution of higher education
 granting the exemption in courses required for teacher
 certification in one or more subject areas determined by the Texas
 Education Agency to be experiencing a critical shortage of teachers
 at the public schools in this state [at the institution of higher
 education granting the exemption];
 (6)  maintain an acceptable grade point average as
 determined by coordinating board rule; and
 (7)  comply with any other requirements adopted by the
 coordinating board under this section.
 (c-1)  Notwithstanding Subsection (c)(5), a person who
 previously received a tuition exemption under this section remains
 eligible for an exemption if the person:
 (1)  is enrolled at an institution of higher education
 granting the exemption in courses required for teacher
 certification; and
 (2)  meets the eligibility requirements in Subsection
 (c) other than Subsection (c)(5).
 SECTION 50.02.  The change in law made by this article
 applies beginning with tuition and fees charged for the 2012 fall
 semester. Tuition and fees charged for a term or semester before
 the 2012 fall semester are covered by the law in effect during the
 term or semester for which the tuition and fees are charged, and the
 former law is continued in effect for that purpose.
 ARTICLE 51.  CLASSIFICATION OF ENTITIES AS ENGAGED IN RETAIL TRADE
 FOR PURPOSES OF THE FRANCHISE TAX
 SECTION 51.01.  Subdivision (12), Section 171.0001, Tax
 Code, is amended to read as follows:
 (12)  "Retail trade" means:
 (A)  the activities described in Division G of the
 1987 Standard Industrial Classification Manual published by the
 federal Office of Management and Budget; and
 (B)  apparel rental activities classified as
 Industry 5999 or 7299 of the 1987 Standard Industrial
 Classification Manual published by the federal Office of Management
 and Budget.
 SECTION 51.02.  This article applies only to a report
 originally due on or after the effective date of this Act.
 SECTION 51.03.  This article takes effect January 1, 2012.
 ARTICLE 52. RETENTION OF CERTAIN FOUNDATION SCHOOL FUND PAYMENTS
 SECTION 52.01.  Subchapter E, Chapter 42, Education Code, is
 amended by adding Section 42.2511 to read as follows:
 Sec. 42.2511.  AUTHORIZATION FOR CERTAIN DISTRICTS TO RETAIN
 ADDITIONAL STATE AID.  (a)  This section applies only to a school
 district that was provided with state aid under former Section
 42.2516 for the 2009-2010 or 2010-2011 school year based on the
 amount of aid to which the district would have been entitled under
 that section if Section 42.2516(g), as it existed on January 1,
 2009, applied to determination of the amount to which the district
 was entitled for that school year.
 (b)  Notwithstanding any other law, a district to which this
 section applies may retain the state aid provided to the district as
 described by Subsection (a).
 (c)  This section expires September 1, 2013.
 SECTION 52.02.  It is the intent of the legislature that the
 authorization provided by Section 42.2511, Education Code, as added
 by this article, to retain state aid described by that section is
 not affected by the expiration of that provision on September 1,
 2013.
 ARTICLE 53.  THE STATE COMPRESSION PERCENTAGE
 SECTION 53.01.  Section 42.2516, Education Code, is amended
 by adding Subsection (b-2) to read as follows:
 (b-2)  If a school district adopts a maintenance and
 operations tax rate that is below the rate equal to the product of
 the state compression percentage multiplied by the maintenance and
 operations tax rate adopted by the district for the 2005 tax year,
 the commissioner shall reduce the district's entitlement under this
 section in proportion to the amount by which the adopted rate is
 less than the rate equal to the product of the state compression
 percentage multiplied by the rate adopted by the district for the
 2005 tax year.  The reduction required by this subsection applies
 beginning with the maintenance and operations tax rate adopted for
 the 2009 tax year.
 ARTICLE 54.  TEXAS GUARANTEED STUDENT LOAN CORPORATION; BOARD OF
 DIRECTORS
 SECTION 54.01.  Subsections (a) and (b), Section 57.13,
 Education Code, are amended to read as follows:
 (a)  The corporation is governed by a board of nine [11]
 directors in accordance with this section.
 (b)  The governor, with the advice and consent of the senate,
 shall appoint the [10] members of [to] the board as follows:
 (1)  four [five] members who must have knowledge of or
 experience in finance, including management of funds or business
 operations;
 (2)  one member who must be a student enrolled at a
 postsecondary educational institution for the number of credit
 hours required by the institution to be classified as a full-time
 student of the institution; and
 (3)  four members who must be members of the faculty or
 administration of a [an eligible] postsecondary educational
 institution that is an eligible institution for purposes of the
 Higher Education Act of 1965, as amended[, as defined by Section
 57.46].
 SECTION 54.02.  Section 57.17, Education Code, is amended to
 read as follows:
 Sec. 57.17.  OFFICERS.  The governor shall designate the
 chairman from among the board's membership. The board shall elect
 from among its members a [chairman,] vice-chairman[,] and other
 officers that the board considers necessary. The chairman and
 vice-chairman serve for a term of one year and may be redesignated
 or reelected, as applicable.
 SECTION 54.03.  Subsection (d), Section 57.13, Education
 Code, is repealed.
 ARTICLE 55.  FISCAL MATTERS CONCERNING LEASES OF PUBLIC LAND FOR
 MINERAL DEVELOPMENT
 SECTION 55.01.  Subsections (a) and (c), Section 85.66,
 Education Code, are amended to read as follows:
 (a)  If oil or other minerals are developed on any of the
 lands leased by the board, the royalty or money as stipulated in the
 sale shall be paid to the general land office at Austin on or before
 the last day of each month for the preceding month during the life
 of the rights purchased, and shall be set aside [in the state
 treasury] as specified in Section 85.70 [of this code]. The royalty
 or money paid to the general land office shall be accompanied by the
 sworn statement of the owner, manager, or other authorized agent
 showing the gross amount of oil, gas, sulphur, mineral ore, and
 other minerals produced and saved since the last report, the amount
 of oil, gas, sulphur, mineral ore, and other minerals produced and
 sold off the premises, and the market value of the oil, gas,
 sulphur, mineral ore, and other minerals, together with a copy of
 all daily gauges, or vats, tanks, gas meter readings, pipeline
 receipts, gas line receipts and other checks and memoranda of the
 amounts produced and put into pipelines, tanks, vats, or pool and
 gas lines, gas storage, other places of storage, and other means of
 transportation.
 (c)  The commissioner of the general land office shall tender
 to the board on or before the 10th day of each month a report of all
 receipts that are collected from the lease or sale of oil, gas,
 sulphur, mineral ore, and other minerals and that are deposited
 [turned into the state treasury,] as provided by Section 85.70
 during [of this code, of] the preceding month.
 SECTION 55.02.  Section 85.69, Education Code, is amended to
 read as follows:
 Sec. 85.69.  PAYMENTS; DISPOSITION. Payments under this
 subchapter shall be made to the commissioner of the general land
 office at Austin, who shall transmit to the board [comptroller] all
 royalties, lease fees, rentals for delay in drilling or mining, and
 all other payments, including all filing assignments and
 relinquishment fees, to be deposited [in the state treasury] as
 provided by Section 85.70 [of this code].
 SECTION 55.03.  Section 85.70, Education Code, is amended to
 read as follows:
 Sec. 85.70.  CERTAIN MINERAL LEASES; DISPOSITION OF MONEY;
 SPECIAL FUNDS; INVESTMENT. (a)  Except as provided by Subsection
 (c) [of this section], all money received under and by virtue of
 this subchapter shall be deposited in [the state treasury to the
 credit of] a special fund managed by the board to be known as The
 Texas A&M University System Special Mineral Investment Fund. Money
 in the fund is considered to be institutional funds, as defined by
 Section 51.009, of the system and its component institutions.  The
 [With the approval of the comptroller, the board of regents of The
 Texas A&M University System may appoint one or more commercial
 banks, depository trust companies, or other entities to serve as
 custodian or custodians of the Special Mineral Investment Fund's
 securities with authority to hold the money realized from those
 securities pending completion of an investment transaction if the
 money held is reinvested within one business day of receipt in
 investments determined by the board of regents. Money not
 reinvested within one business day of receipt shall be deposited in
 the state treasury not later than the fifth day after the date of
 receipt. In the judgment of the board, this] special fund may be
 invested so as to produce [an] income which may be expended under
 the direction of the board for the general use of any component of
 The Texas A&M University System, including erecting permanent
 improvements and in payment of expenses incurred in connection with
 the administration of this subchapter. The unexpended income
 likewise may be invested as [herein] provided by this section.
 (b)  The income from the investment of the special mineral
 investment fund created by [under] Subsection (a) [of this section]
 shall be deposited in [to the credit of] a fund managed by the board
 to be known as The Texas A&M University System Special Mineral
 Income Fund, and is considered to be institutional funds, as
 defined by Section 51.009, of the system and its component
 institutions [shall be appropriated by the legislature exclusively
 for the university system for the purposes herein provided].
 (c)  The board shall lease for oil, gas, sulphur, or other
 mineral development, as prescribed by this subchapter, all or part
 of the land under the exclusive control of the board owned by the
 State of Texas and acquired for the use of Texas A&M
 University--Kingsville and its divisions. Any money received by
 the board concerning such land under this subchapter shall be
 deposited in [the state treasury to the credit of] a special fund
 managed by the board to be known as the Texas A&M
 University--Kingsville special mineral fund.  Money in the fund is
 considered to be institutional funds, as defined by Section 51.009,
 of the university and is[,] to be used exclusively for the
 university [Texas A&M University--Kingsville] and its branches and
 divisions.
 (d)  All deposits in and investments of the fund under this
 section shall be made in accordance with Section 51.0031.
 (e)  Section 34.017, Natural Resources Code, does not apply
 to funds created by this section  [Money may not be expended from
 this fund except as authorized by the general appropriations act].
 SECTION 55.04.  Subsection (b), Section 95.36, Education
 Code, is amended to read as follows:
 (b)  Except as provided in Subsection (c) of this section,
 any money received by virtue of this section and the income from the
 investment of such money shall be deposited in [the State Treasury
 to the credit of] a special fund managed by the board to be known as
 the Texas State University System special mineral fund.  Money in
 the fund is considered to be institutional funds, as defined by
 Section 51.009, of the system and its component institutions and
 is[,] to be used exclusively for those entities.  All deposits in
 and investments of the fund shall be made in accordance with Section
 51.0031.  Section 34.017, Natural Resources Code, does not apply to
 the fund [the university system and the universities in the system.
 However, no money shall ever be expended from this fund except as
 authorized by the General Appropriations Act].
 SECTION 55.05.  Subsection (b), Section 109.61, Education
 Code, is amended to read as follows:
 (b)  Any money received by virtue of this section shall be
 deposited in [the state treasury to the credit of] a special fund
 managed by the board to be known as the Texas Tech University
 special mineral fund.  Money in the fund is considered to be
 institutional funds, as defined by Section 51.009, of the
 university and is[,] to be used exclusively for the university and
 its branches and divisions.  All deposits in and investments of the
 fund shall be made in accordance with Section 51.0031.  Section
 34.017, Natural Resources Code, does not apply to the fund
 [However, no money shall ever be expended from this fund except as
 authorized by the general appropriations act].
 SECTION 55.06.  Subsections (a) and (c), Section 109.75,
 Education Code, are amended to read as follows:
 (a)  If oil or other minerals are developed on any of the
 lands leased by the board, the royalty as stipulated in the sale
 shall be paid to the general land office in Austin on or before the
 last day of each month for the preceding month during the life of
 the rights purchased. The royalty payments shall be set aside [in
 the state treasury] as specified in Section 109.61 [of this code]
 and used as provided in that section.
 (c)  The commissioner of the general land office shall tender
 to the board on or before the 10th day of each month a report of all
 receipts that are collected from the lease or sale of oil, gas,
 sulphur, or other minerals and that are deposited in [turned into]
 the special fund as provided by Section 109.61 [in the state
 treasury] during the preceding month.
 SECTION 55.07.  Subsection (b), Section 109.78, Education
 Code, is amended to read as follows:
 (b)  Payment of all royalties, lease fees, rentals for delay
 in drilling or mining, filing fees for assignments and
 relinquishments, and all other payments shall be made to the
 commissioner of the general land office at Austin. The
 commissioner shall transmit all payments received to the board
 [comptroller] for deposit to the credit of the Texas Tech
 University special mineral fund as provided by Section 109.61.
 SECTION 55.08.  Section 85.72, Education Code, is repealed.
 ARTICLE 56.  FOUNDATION SCHOOL PROGRAM FINANCING; CERTAIN TAX
 INCREMENT FUND REPORTING MATTERS
 SECTION 56.01.  (a)  This section applies only to a school
 district that, before May 1, 2011, received from the commissioner
 of education a notice of a reduction in state funding for the
 2004-2005, 2005-2006, 2006-2007, 2007-2008, and 2008-2009 school
 years based on the district's reporting related to deposits of
 taxes into a tax increment fund under Chapter 311, Tax Code.
 (b)  Notwithstanding any other law, including Subdivision
 (2), Subsection (b), Section 42.302, Education Code, the
 commissioner of education shall reduce by one-half the amounts of
 the reduction of entitlement amounts computed for purposes of
 adjusting entitlement amounts to account for taxes deposited into a
 tax increment fund for any of the school years described by
 Subsection (a) of this section.
 (c)  This section expires September 1, 2013.
 ARTICLE 57.  FISCAL MATTERS RELATING TO PUBLIC SCHOOL FINANCE
 SECTION 57.01.  Subsection (a), Section 11.158, Education
 Code, is amended to read as follows:
 (a)  The board of trustees of an independent school district
 may require payment of:
 (1)  a fee for materials used in any program in which
 the resultant product in excess of minimum requirements becomes, at
 the student's option, the personal property of the student, if the
 fee does not exceed the cost of materials;
 (2)  membership dues in student organizations or clubs
 and admission fees or charges for attending extracurricular
 activities, if membership or attendance is voluntary;
 (3)  a security deposit for the return of materials,
 supplies, or equipment;
 (4)  a fee for personal physical education and athletic
 equipment and apparel, although any student may provide the
 student's own equipment or apparel if it meets reasonable
 requirements and standards relating to health and safety
 established by the board;
 (5)  a fee for items of personal use or products that a
 student may purchase at the student's option, such as student
 publications, class rings, annuals, and graduation announcements;
 (6)  a fee specifically permitted by any other statute;
 (7)  a fee for an authorized voluntary student health
 and accident benefit plan;
 (8)  a reasonable fee, not to exceed the actual annual
 maintenance cost, for the use of musical instruments and uniforms
 owned or rented by the district;
 (9)  a fee for items of personal apparel that become the
 property of the student and that are used in extracurricular
 activities;
 (10)  a parking fee or a fee for an identification card;
 (11)  a fee for a driver training course, not to exceed
 the actual district cost per student in the program for the current
 school year;
 (12)  a fee for a course offered for credit that
 requires the use of facilities not available on the school premises
 or the employment of an educator who is not part of the school's
 regular staff, if participation in the course is at the student's
 option;
 (13)  a fee for a course offered during summer school,
 except that the board may charge a fee for a course required for
 graduation only if the course is also offered without a fee during
 the regular school year;
 (14)  a reasonable fee for transportation of a student
 who lives within two miles of the school the student attends to and
 from that school, except that the board may not charge a fee for
 transportation for which the school district receives funds under
 Section 42.155(d); [or]
 (15)  a reasonable fee, not to exceed $50, for costs
 associated with an educational program offered outside of regular
 school hours through which a student who was absent from class
 receives instruction voluntarily for the purpose of making up the
 missed instruction and meeting the level of attendance required
 under Section 25.092; or
 (16)  if the district does not receive any funds under
 Section 42.155 and does not participate in a county transportation
 system for which an allotment is provided under Section 42.155(i),
 a reasonable fee for the transportation of a student to and from the
 school the student attends.
 SECTION 57.02.  Effective September 1, 2011, Section 12.106,
 Education Code, is amended by amending Subsection (a) and adding
 Subsections (a-3) and (a-4) to read as follows:
 (a)  A charter holder is entitled to receive for the
 open-enrollment charter school funding under Chapter 42 equal to
 the greater of:
 (1)  the percentage specified by Section 42.2516(i)
 multiplied by the amount of funding per student in weighted average
 daily attendance, excluding enrichment funding under Sections
 42.302(a-1)(2) and (3), as they existed on January 1, 2009, that
 would have been received for the school during the 2009-2010 school
 year under Chapter 42 as it existed on January 1, 2009, and an
 additional amount of the percentage specified by Section 42.2516(i)
 multiplied by $120 for each student in weighted average daily
 attendance; or
 (2)  the amount of funding per student in weighted
 average daily attendance, excluding enrichment funding under
 Section 42.302(a), to which the charter holder would be entitled
 for the school under Chapter 42 if the school were a school district
 without a tier one local share for purposes of Section 42.253 and
 without any local revenue for purposes of Section 42.2516.
 (a-3)  In determining funding for an open-enrollment charter
 school under Subsection (a), the commissioner shall apply the
 regular program adjustment factor provided under Section 42.101 to
 calculate the regular program allotment to which a charter school
 is entitled.
 (a-4)  Subsection (a-3) and this subsection expire September
 1, 2015.
 SECTION 57.03.  Effective September 1, 2017, Subsection (a),
 Section 12.106, Education Code, is amended to read as follows:
 (a)  A charter holder is entitled to receive for the
 open-enrollment charter school funding under Chapter 42 equal to
 [the greater of:
 [(1)     the amount of funding per student in weighted
 average daily attendance, excluding enrichment funding under
 Sections 42.302(a-1)(2) and (3), as they existed on January 1,
 2009, that would have been received for the school during the
 2009-2010 school year under Chapter 42 as it existed on January 1,
 2009, and an additional amount of $120 for each student in weighted
 average daily attendance; or
 [(2)]  the amount of funding per student in weighted
 average daily attendance, excluding enrichment funding under
 Section 42.302(a), to which the charter holder would be entitled
 for the school under Chapter 42 if the school were a school district
 without a tier one local share for purposes of Section 42.253 [and
 without any local revenue for purposes of Section 42.2516].
 SECTION 57.04.  Effective September 1, 2011, Section 21.402,
 Education Code, is amended by amending Subsections (a), (b), (c),
 and (c-1) and adding Subsection (i) to read as follows:
 (a)  Except as provided by Subsection (d)[, (e),] or (f), a
 school district must pay each classroom teacher, full-time
 librarian, full-time counselor certified under Subchapter B, or
 full-time school nurse not less than the minimum monthly salary,
 based on the employee's level of experience in addition to other
 factors, as determined by commissioner rule, determined by the
 following formula:
 MS = SF x FS
 where:
 "MS" is the minimum monthly salary;
 "SF" is the applicable salary factor specified by Subsection
 (c); and
 "FS" is the amount, as determined by the commissioner under
 Subsection (b), of the basic allotment as provided by Section
 42.101(a) or (b) for a school district with a maintenance and
 operations tax rate at least equal to the state maximum compressed
 tax rate, as defined by Section 42.101(a) [state and local funds per
 weighted student, including funds provided under Section 42.2516,
 available to a district eligible to receive state assistance under
 Section 42.302 with a maintenance and operations tax rate per $100
 of taxable value equal to the product of the state compression
 percentage, as determined under Section 42.2516, multiplied by
 $1.50, except that the amount of state and local funds per weighted
 student does not include the amount attributable to the increase in
 the guaranteed level made by Chapter 1187, Acts of the 77th
 Legislature, Regular Session, 2001].
 (b)  Not later than June 1 of each year, the commissioner
 shall determine the basic allotment and resulting monthly salaries
 to be paid by school districts as provided by Subsection (a) [amount
 of state and local funds per weighted student available, for
 purposes of Subsection (a), to a district described by that
 subsection for the following school year].
 (c)  The salary factors per step are as follows:
 0  1  2  3  4   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 57.05.  Effective September 1, 2017, Section 21.402,
 Education Code, is amended by amending Subsection (a) and adding
 Subsection (e-1) to read as follows:
 (a)  Except as provided by Subsection (d), (e-1) [(e)], or
 (f), a school district must pay each classroom teacher, full-time
 librarian, full-time counselor certified under Subchapter B, or
 full-time school nurse not less than the minimum monthly salary,
 based on the employee's level of experience in addition to other
 factors, as determined by commissioner rule, determined by the
 following formula:
 MS = SF x FS
 where:
 "MS" is the minimum monthly salary;
 "SF" is the applicable salary factor specified by Subsection
 (c); and
 "FS" is the amount, as determined by the commissioner under
 Subsection (b), of the basic allotment as provided by Section
 42.101(a) or (b) for a school district with a maintenance and
 operations tax rate at least equal to the state maximum compressed
 tax rate, as defined by Section 42.101(a) [state and local funds per
 weighted student, including funds provided under Section 42.2516,
 available to a district eligible to receive state assistance under
 Section 42.302 with a maintenance and operations tax rate per $100
 of taxable value equal to the product of the state compression
 percentage, as determined under Section 42.2516, multiplied by
 $1.50, except that the amount of state and local funds per weighted
 student does not include the amount attributable to the increase in
 the guaranteed level made by Chapter 1187, Acts of the 77th
 Legislature, Regular Session, 2001].
 (e-1)  If the minimum monthly salary determined under
 Subsection (a) for a particular level of experience is less than the
 minimum monthly salary for that level of experience in the
 preceding year, the minimum monthly salary is the minimum monthly
 salary for the preceding year.
 SECTION 57.06.  Section 41.002, Education Code, is amended
 by amending Subsection (a) and adding Subsection (a-1) to read as
 follows:
 (a)  A school district may not have a wealth per student that
 exceeds:
 (1)  the wealth per student that generates the amount
 of maintenance and operations tax revenue per weighted student
 available to a district with maintenance and operations tax revenue
 per cent of tax effort equal to the maximum amount provided per cent
 under Section 42.101(a) or (b) [42.101], for the district's
 maintenance and operations tax effort equal to or less than the rate
 equal to the product of the state compression percentage, as
 determined under Section 42.2516, multiplied by the maintenance and
 operations tax rate adopted by the district for the 2005 tax year;
 (2)  the wealth per student that generates the amount
 of maintenance and operations tax revenue per weighted student
 available to the Austin Independent School District, as determined
 by the commissioner in cooperation with the Legislative Budget
 Board, for the first six cents by which the district's maintenance
 and operations tax rate exceeds the rate equal to the product of the
 state compression percentage, as determined under Section 42.2516,
 multiplied by the maintenance and operations tax rate adopted by
 the district for the 2005 tax year, subject to Section 41.093(b-1);
 or
 (3)  $319,500, for the district's maintenance and
 operations tax effort that exceeds the first six cents by which the
 district's maintenance and operations tax effort exceeds the rate
 equal to the product of the state compression percentage, as
 determined under Section 42.2516, multiplied by the maintenance and
 operations tax rate adopted by the district for the 2005 tax year.
 (a-1)  Notwithstanding Subsection (a), a school district
 that imposed a maintenance and operations tax for the 2010 tax year
 at the maximum rate permitted under Section 45.003 may not have a
 wealth per student that exceeds $339,500 for the district's
 maintenance and operations tax effort described by Subsection
 (a)(3). This subsection expires September 1, 2012.
 SECTION 57.07.  Effective September 1, 2011, the heading to
 Section 42.101, Education Code, is amended to read as follows:
 Sec. 42.101.  BASIC AND REGULAR PROGRAM ALLOTMENTS
 [ALLOTMENT].
 SECTION 57.08.  Effective September 1, 2011, Section 42.101,
 Education Code, is amended by amending Subsections (a) and (b) and
 adding Subsections (c), (c-1), (c-2), and (c-3) to read as follows:
 (a)  The basic [For each student in average daily attendance,
 not including the time students spend each day in special education
 programs in an instructional arrangement other than mainstream or
 career and technology education programs, for which an additional
 allotment is made under Subchapter C, a district is entitled to an]
 allotment is an amount equal to the lesser of $4,765 or the amount
 that results from the following formula:
 A = $4,765 X (DCR/MCR)
 where:
 "A" is the resulting amount for [allotment to which] a
 district [is entitled];
 "DCR" is the district's compressed tax rate, which is the
 product of the state compression percentage, as determined under
 Section 42.2516, multiplied by the maintenance and operations tax
 rate adopted by the district for the 2005 tax year; and
 "MCR" is the state maximum compressed tax rate, which is the
 product of the state compression percentage, as determined under
 Section 42.2516, multiplied by $1.50.
 (b)  A greater amount for any school year for the basic
 allotment under Subsection (a) may be provided by appropriation.
 (c)  A school district is entitled to a regular program
 allotment equal to the amount that results from the following
 formula:
 RPA = ADA X AA X RPAF
 where:
 "RPA" is the regular program allotment to which the district
 is entitled;
 "ADA" is the number of students in average daily attendance
 in a district, not including the time students spend each day in
 special education programs in an instructional arrangement other
 than mainstream or career and technology education programs, for
 which an additional allotment is made under Subchapter C;
 "AA" is the district's adjusted basic allotment, as
 determined under Section 42.102 and, if applicable, as further
 adjusted under Section 42.103; and
 "RPAF" is the regular program adjustment factor.
 (c-1)  Except as provided by Subsection (c-2), the regular
 program adjustment factor ("RPAF") is 0.9239 for the 2011-2012
 school year and 0.98 for the 2012-2013 school year.
 (c-2)  For a school district that does not receive funding
 under Section 42.2516 for the 2011-2012 school year, the
 commissioner may set the regular program adjustment factor ("RPAF")
 at 0.95195 for the 2011-2012 and 2012-2013 school years if the
 district demonstrates that funding reductions as a result of
 adjustments to the regular program allotment made by S.B. No. 1,
 Acts of the 82nd Legislature, 1st Called Session, 2011, will result
 in a hardship to the district in the 2011-2012 school year.
 Notwithstanding any other provision of this subsection, the
 commissioner shall adjust the regular program adjustment factor
 ("RPAF") for the 2012-2013 school year for a school district whose
 regular program adjustment factor is set in accordance with this
 subsection to ensure that the total amount of state and local
 revenue in the combined 2011-2012 and 2012-2013 school years does
 not differ from the amount the district would have received if the
 district's regular program adjustment factor had not been set in
 accordance with this subsection.  A determination by the
 commissioner under this subsection is final and may not be
 appealed.
 (c-3)  The regular program adjustment factor ("RPAF") is
 0.98 for the 2013-2014 and 2014-2015 school years or a greater
 amount established by appropriation, not to exceed 1.0. This
 subsection and Subsections (c), (c-1), and (c-2) expire September
 1, 2015.
 SECTION 57.09.  Effective September 1, 2015, Section 42.101,
 Education Code, is amended to read as follows:
 Sec. 42.101.  BASIC ALLOTMENT. (a)  For each student in
 average daily attendance, not including the time students spend
 each day in special education programs in an instructional
 arrangement other than mainstream or career and technology
 education programs, for which an additional allotment is made under
 Subchapter C, a district is entitled to an allotment equal to the
 lesser of $4,765 or the amount that results from the following
 formula:
 A = $4,765 X (DCR/MCR)
 where:
 "A" is the allotment to which a district is entitled;
 "DCR" is the district's compressed tax rate, which is the
 product of the state compression percentage, as determined under
 Section 42.2516, multiplied by the maintenance and operations tax
 rate adopted by the district for the 2005 tax year; and
 "MCR" is the state maximum compressed tax rate, which is the
 product of the state compression percentage, as determined under
 Section 42.2516, multiplied by $1.50.
 (b)  A greater amount for any school year may be provided by
 appropriation.
 SECTION 57.10.  Effective September 1, 2011, Section 42.105,
 Education Code, is amended to read as follows:
 Sec. 42.105.  SPARSITY ADJUSTMENT. Notwithstanding
 Sections 42.101, 42.102, and 42.103, a school district that has
 fewer than 130 students in average daily attendance shall be
 provided a regular program [an adjusted basic] allotment on the
 basis of 130 students in average daily attendance if it offers a
 kindergarten through grade 12 program and has preceding or current
 year's average daily attendance of at least 90 students or is 30
 miles or more by bus route from the nearest high school district. A
 district offering a kindergarten through grade 8 program whose
 preceding or current year's average daily attendance was at least
 50 students or which is 30 miles or more by bus route from the
 nearest high school district shall be provided a regular program
 [an adjusted basic] allotment on the basis of 75 students in average
 daily attendance. An average daily attendance of 60 students shall
 be the basis of providing the regular program [adjusted basic]
 allotment if a district offers a kindergarten through grade 6
 program and has preceding or current year's average daily
 attendance of at least 40 students or is 30 miles or more by bus
 route from the nearest high school district.
 SECTION 57.11.  Effective September 1, 2015, Section 42.105,
 Education Code, is amended to read as follows:
 Sec. 42.105.  SPARSITY ADJUSTMENT. Notwithstanding
 Sections 42.101, 42.102, and 42.103, a school district that has
 fewer than 130 students in average daily attendance shall be
 provided an adjusted basic allotment on the basis of 130 students in
 average daily attendance if it offers a kindergarten through grade
 12 program and has preceding or current year's average daily
 attendance of at least 90 students or is 30 miles or more by bus
 route from the nearest high school district. A district offering a
 kindergarten through grade 8 program whose preceding or current
 year's average daily attendance was at least 50 students or which is
 30 miles or more by bus route from the nearest high school district
 shall be provided an adjusted basic allotment on the basis of 75
 students in average daily attendance. An average daily attendance
 of 60 students shall be the basis of providing the adjusted basic
 allotment if a district offers a kindergarten through grade 6
 program and has preceding or current year's average daily
 attendance of at least 40 students or is 30 miles or more by bus
 route from the nearest high school district.
 SECTION 57.12.  Subsection (c), Section 42.152, Education
 Code, is amended to read as follows:
 (c)  Funds allocated under this section shall be used to fund
 supplemental programs and services designed to eliminate any
 disparity in performance on assessment instruments administered
 under Subchapter B, Chapter 39, or disparity in the rates of high
 school completion between students at risk of dropping out of
 school, as defined by Section 29.081, and all other students.
 Specifically, the funds, other than an indirect cost allotment
 established under State Board of Education rule, which may not
 exceed 45 percent, may be used to meet the costs of providing a
 compensatory, intensive, or accelerated instruction program under
 Section 29.081 or a disciplinary [an] alternative education program
 established under Section 37.008, to pay the costs associated with
 placing students in a juvenile justice alternative education
 program established under Section 37.011, or to support a program
 eligible under Title I of the Elementary and Secondary Education
 Act of 1965, as provided by Pub. L. No. 103-382 and its subsequent
 amendments, and by federal regulations implementing that Act, at a
 campus at which at least 40 percent of the students are
 educationally disadvantaged. In meeting the costs of providing a
 compensatory, intensive, or accelerated instruction program under
 Section 29.081, a district's compensatory education allotment
 shall be used for costs supplementary to the regular education
 program, such as costs for program and student evaluation,
 instructional materials and equipment and other supplies required
 for quality instruction, supplemental staff expenses, salary for
 teachers of at-risk students, smaller class size, and
 individualized instruction. A home-rule school district or an
 open-enrollment charter school must use funds allocated under
 Subsection (a) for a purpose authorized in this subsection but is
 not otherwise subject to Subchapter C, Chapter 29. For
 [Notwithstanding any other provisions of this section:
 [(1)     to ensure that a sufficient amount of the funds
 allotted under this section are available to supplement
 instructional programs and services, no more than 18 percent of the
 funds allotted under this section may be used to fund disciplinary
 alternative education programs established under Section 37.008;
 [(2)     the commissioner may waive the limitations of
 Subdivision (1) upon an annual petition, by a district's board and a
 district's site-based decision making committee, presenting the
 reason for the need to spend supplemental compensatory education
 funds on disciplinary alternative education programs under Section
 37.008, provided that:
 [(A)     the district in its petition reports the
 number of students in each grade level, by demographic subgroup,
 not making satisfactory progress under the state's assessment
 system; and
 [(B)     the commissioner makes the waiver request
 information available annually to the public on the agency's
 website; and
 [(3)  for] purposes of this subsection, a program
 specifically designed to serve students at risk of dropping out of
 school, as defined by Section 29.081, is considered to be a program
 supplemental to the regular education program, and a district may
 use its compensatory education allotment for such a program.
 SECTION 57.13.  Subchapter C, Chapter 42, Education Code, is
 amended by adding Section 42.1541 to read as follows:
 Sec. 42.1541.  INDIRECT COST ALLOTMENTS. (a)  The State
 Board of Education shall by rule increase the indirect cost
 allotments established under Sections 42.151(h), 42.152(c),
 42.153(b), and 42.154(a-1) and (c) and in effect for the 2010-2011
 school year in proportion to the average percentage reduction in
 total state and local maintenance and operations revenue provided
 under this chapter for the 2011-2012 school year as a result of S.B.
 Nos. 1 and 2, Acts of the 82nd Legislature, 1st Called Session,
 2011.
 (b)  To the extent necessary to permit the board to comply
 with this section, the limitation on the percentage of the indirect
 cost allotment prescribed by Section 42.152(c) does not apply.
 (c)  The board shall take the action required by Subsection
 (a) not later than the date that permits the increased indirect cost
 allotments to apply beginning with the 2011-2012 school year.
 SECTION 57.14.  Effective September 1, 2011, Subsection (a),
 Section 42.251, Education Code, is amended to read as follows:
 (a)  The sum of the regular program [basic] allotment under
 Subchapter B and the special allotments under Subchapter C,
 computed in accordance with this chapter, constitute the tier one
 allotments. The sum of the tier one allotments and the guaranteed
 yield allotments under Subchapter F, computed in accordance with
 this chapter, constitute the total cost of the Foundation School
 Program.
 SECTION 57.15.  Effective September 1, 2015, Subsection (a),
 Section 42.251, Education Code, is amended to read as follows:
 (a)  The sum of the basic allotment under Subchapter B and
 the special allotments under Subchapter C, computed in accordance
 with this chapter, constitute the tier one allotments. The sum of
 the tier one allotments and the guaranteed yield allotments under
 Subchapter F, computed in accordance with this chapter, constitute
 the total cost of the Foundation School Program.
 SECTION 57.16.  Subchapter E, Chapter 42, Education Code, is
 amended by adding Section 42.2514 to read as follows:
 Sec. 42.2514.  ADDITIONAL STATE AID FOR TAX INCREMENT
 FINANCING PAYMENTS. For each school year, a school district,
 including a school district that is otherwise ineligible for state
 aid under this chapter, is entitled to state aid in an amount equal
 to the amount the district is required to pay into the tax increment
 fund for a reinvestment zone under Section 311.013(n), Tax Code.
 SECTION 57.17.  Effective September 1, 2011, Section
 42.2516, Education Code, is amended by amending Subsections (a),
 (b), (d), and (f-2) and adding Subsection (i) to read as follows:
 (a)  In this title [section], "state compression percentage"
 means the percentage[, as determined by the commissioner,] of a
 school district's adopted maintenance and operations tax rate for
 the 2005 tax year that serves as the basis for state funding [for
 tax rate reduction under this section].  If the state compression
 percentage is not established by appropriation for a school year,
 the [The] commissioner shall determine the state compression
 percentage for each school year based on the percentage by which a
 district is able to reduce the district's maintenance and
 operations tax rate for that year, as compared to the district's
 adopted maintenance and operations tax rate for the 2005 tax year,
 as a result of state funds appropriated for distribution under this
 section for that year from the property tax relief fund established
 under Section 403.109, Government Code, or from another funding
 source available for school district property tax relief.
 (b)  Notwithstanding any other provision of this title, a
 school district that imposes a maintenance and operations tax at a
 rate at least equal to the product of the state compression
 percentage multiplied by the maintenance and operations tax rate
 adopted by the district for the 2005 tax year is entitled to at
 least the amount of state revenue necessary to provide the district
 with the sum of:
 (1)  the percentage specified by Subsection (i) of the
 amount, as calculated under Subsection (e), [the amount] of state
 and local revenue per student in weighted average daily attendance
 for maintenance and operations that the district would have
 received during the 2009-2010 school year under Chapter 41 and this
 chapter, as those chapters existed on January 1, 2009, at a
 maintenance and operations tax rate equal to the product of the
 state compression percentage for that year multiplied by the
 maintenance and operations tax rate adopted by the district for the
 2005 tax year;
 (2)  the percentage specified by Subsection (i) of an
 amount equal to the product of $120 multiplied by the number of
 students in weighted average daily attendance in the district; and
 (3)  [an amount equal to the amount the district is
 required to pay into the tax increment fund for a reinvestment zone
 under Section 311.013(n), Tax Code, in the current tax year; and
 [(4)]  any amount to which the district is entitled
 under Section 42.106.
 (d)  In determining the amount to which a district is
 entitled under Subsection (b)(1), the commissioner shall:
 (1)  include the percentage specified by Subsection (i)
 of any amounts received by the district during the 2008-2009 school
 year under Rider 86, page III-23, Chapter 1428 (H.B. 1), Acts of the
 80th Legislature, Regular Session, 2007 (the General
 Appropriations Act); and
 (2)  for a school district that paid tuition under
 Section 25.039 during the 2008-2009 school year, reduce the amount
 to which the district is entitled by the amount of tuition paid
 during that school year.
 (f-2)  The rules adopted by the commissioner under
 Subsection (f-1) must:
 (1)  require the commissioner to determine, as if this
 section did not exist, the effect under Chapter 41 and this chapter
 of a school district's action described by Subsection (f-1)(1),
 (2), (3), or (4) on the total state revenue to which the district
 would be entitled or the cost to the district of purchasing
 sufficient attendance credits to reduce the district's wealth per
 student to the equalized wealth level; and
 (2)  require an increase or reduction in the amount of
 state revenue to which a school district is entitled under
 Subsection (b)(1) [(b)] that is substantially equivalent to any
 change in total state revenue or the cost of purchasing attendance
 credits that would apply to the district if this section did not
 exist.
 (i)  The percentage to be applied for purposes of Subsections
 (b)(1) and (2) and Subsection (d)(1) is 100.00 percent for the
 2011-2012 school year and 92.35 percent for the 2012-2013 school
 year. For the 2013-2014 school year and each subsequent school
 year, the legislature by appropriation shall establish the
 percentage reduction to be applied.
 SECTION 57.18.  Effective September 1, 2017, the heading to
 Section 42.2516, Education Code, is amended to read as follows:
 Sec. 42.2516.  STATE COMPRESSION PERCENTAGE [ADDITIONAL
 STATE AID FOR TAX REDUCTION].
 SECTION 57.19.  Effective September 1, 2017, Subsection (a),
 Section 42.2516, Education Code, is amended to read as follows:
 (a)  In this title [section], "state compression percentage"
 means the percentage[, as determined by the commissioner,] of a
 school district's adopted maintenance and operations tax rate for
 the 2005 tax year that serves as the basis for state funding [for
 tax rate reduction under this section].  If the state compression
 percentage is not established by appropriation for a school year,
 the [The] commissioner shall determine the state compression
 percentage for each school year based on the percentage by which a
 district is able to reduce the district's maintenance and
 operations tax rate for that year, as compared to the district's
 adopted maintenance and operations tax rate for the 2005 tax year,
 as a result of state funds appropriated for [distribution under
 this section for] that year from the property tax relief fund
 established under Section 403.109, Government Code, or from another
 funding source available for school district property tax relief.
 SECTION 57.20.  Effective September 1, 2011, Subsection (a),
 Section 42.25161, Education Code, is amended to read as follows:
 (a)  The commissioner shall provide South Texas Independent
 School District with the amount of state aid necessary to ensure
 that the district receives an amount of state and local revenue per
 student in weighted average daily attendance that is at least the
 percentage specified by Section 42.2516(i) of $120 greater than the
 amount the district would have received per student in weighted
 average daily attendance during the 2009-2010 school year under
 this chapter, as it existed on January 1, 2009, at a maintenance and
 operations tax rate equal to the product of the state compression
 percentage multiplied by the maintenance and operations tax rate
 adopted by the district for the 2005 tax year, provided that the
 district imposes a maintenance and operations tax at that rate.
 SECTION 57.21.  Subchapter E, Chapter 42, Education Code, is
 amended by adding Section 42.2525 to read as follows:
 Sec. 42.2525.  ADJUSTMENTS FOR CERTAIN DISTRICTS RECEIVING
 FEDERAL IMPACT AID. The commissioner is granted the authority to
 ensure that school districts receiving federal impact aid due to the
 presence of a military installation or significant concentrations
 of military students do not receive more than an eight percent
 reduction should the federal government reduce appropriations to
 those schools.
 SECTION 57.22.  Effective September 1, 2011, Subsection (h),
 Section 42.253, Education Code, is amended to read as follows:
 (h)  If the amount appropriated for the Foundation School
 Program for the second year of a state fiscal biennium is less than
 the amount to which school districts and open-enrollment charter
 schools are entitled for that year, the commissioner shall certify
 the amount of the difference to the Legislative Budget Board not
 later than January 1 of the second year of the state fiscal
 biennium. The Legislative Budget Board shall propose to the
 legislature that the certified amount be transferred to the
 foundation school fund from the economic stabilization fund and
 appropriated for the purpose of increases in allocations under this
 subsection. If the legislature fails during the regular session to
 enact the proposed transfer and appropriation and there are not
 funds available under Subsection (j), the commissioner shall adjust
 [reduce] the total amounts due to each school district and
 open-enrollment charter school under this chapter and the total
 amounts necessary for each school district to comply with the
 requirements of Chapter 41 [amount of state funds allocated to each
 district] by an amount determined by applying to each district and
 school, including a district receiving funds under Section 42.2516,
 the same percentage adjustment to the total amount of state and
 local revenue due to the district or school under this chapter and
 Chapter 41 so that the total amount of the adjustment to all
 districts and schools [a method under which the application of the
 same number of cents of increase in tax rate in all districts
 applied to the taxable value of property of each district, as
 determined under Subchapter M, Chapter 403, Government Code,]
 results in an amount [a total levy] equal to the total adjustment
 necessary [reduction]. The following fiscal year:
 (1)  [,] a district's or school's entitlement under
 this section is increased by an amount equal to the adjustment
 [reduction] made under this subsection; and
 (2)  the amount necessary for a district to comply with
 the requirements of Chapter 41 is reduced by an amount necessary to
 ensure the district's full recovery of the adjustment made under
 this subsection.
 SECTION 57.23.  Effective September 1, 2017, Subsection (h),
 Section 42.253, Education Code, is amended to read as follows:
 (h)  If the amount appropriated for the Foundation School
 Program for the second year of a state fiscal biennium is less than
 the amount to which school districts and open-enrollment charter
 schools are entitled for that year, the commissioner shall certify
 the amount of the difference to the Legislative Budget Board not
 later than January 1 of the second year of the state fiscal
 biennium. The Legislative Budget Board shall propose to the
 legislature that the certified amount be transferred to the
 foundation school fund from the economic stabilization fund and
 appropriated for the purpose of increases in allocations under this
 subsection. If the legislature fails during the regular session to
 enact the proposed transfer and appropriation and there are not
 funds available under Subsection (j), the commissioner shall adjust
 [reduce] the total amounts due to each school district and
 open-enrollment charter school under this chapter and the total
 amounts necessary for each school district to comply with the
 requirements of Chapter 41 [amount of state funds allocated to each
 district] by an amount determined by applying to each district and
 school the same percentage adjustment to the total amount of state
 and local revenue due to the district or school under this chapter
 and Chapter 41 so that the total amount of the adjustment to all
 districts and schools [a method under which the application of the
 same number of cents of increase in tax rate in all districts
 applied to the taxable value of property of each district, as
 determined under Subchapter M, Chapter 403, Government Code,]
 results in an amount [a total levy] equal to the total adjustment
 necessary [reduction]. The following fiscal year:
 (1)  [,] a district's or school's entitlement under
 this section is increased by an amount equal to the adjustment
 [reduction] made under this subsection; and
 (2)  the amount necessary for a district to comply with
 the requirements of Chapter 41 is reduced by an amount necessary to
 ensure a district's full recovery of the adjustment made under this
 subsection.
 SECTION 57.24.  Section 42.258, Education Code, is amended
 by amending Subsection (a) and adding Subsection (a-1) to read as
 follows:
 (a)  If a school district has received an overallocation of
 state funds, the agency shall, by withholding from subsequent
 allocations of state funds for the current or subsequent school
 year or by requesting and obtaining a refund, recover from the
 district an amount equal to the overallocation.
 (a-1)  Notwithstanding Subsection (a), the agency may
 recover an overallocation of state funds over a period not to exceed
 the subsequent five school years if the commissioner determines
 that the overallocation was the result of exceptional circumstances
 reasonably caused by statutory changes to Chapter 41 or 46 or this
 chapter and related reporting requirements.
 SECTION 57.25.  Subsection (b), Section 42.260, Education
 Code, is amended to read as follows:
 (b)  For each year, the commissioner shall certify to each
 school district or participating charter school the amount of[:
 [(1)]  additional funds to which the district or school
 is entitled due to the increase made by H.B. No. 3343, Acts of the
 77th Legislature, Regular Session, 2001, to:
 (1) [(A)]  the equalized wealth level under Section
 41.002; or
 (2) [(B)]  the guaranteed level of state and local
 funds per weighted student per cent of tax effort under Section
 42.302[; or
 [(2)     additional state aid to which the district or
 school is entitled under Section 42.2513].
 SECTION 57.26.  Section 42.302, Education Code, is amended
 by adding Subsection (a-3) to read as follows:
 (a-3)  Notwithstanding Subsections (a) and (a-1), for a
 school district that imposed a maintenance and operations tax for
 the 2010 tax year at the maximum rate permitted under Section
 45.003, the dollar amount guaranteed level of state and local funds
 per weighted student per cent of tax effort ("GL") for the
 district's maintenance and operations tax effort described by
 Subsection (a-1)(2) is $33.95. This subsection expires September
 1, 2012.
 SECTION 57.27.  Section 44.004, Education Code, is amended
 by adding Subsection (g-1) to read as follows:
 (g-1)  If the rate calculated under Subsection
 (c)(5)(A)(ii)(b) decreases after the publication of the notice
 required by this section, the president is not required to publish
 another notice or call another meeting to discuss and adopt the
 budget and the proposed lower tax rate.
 SECTION 57.28.  Subsection (a), Section 26.05, Tax Code, is
 amended to read as follows:
 (a)  The governing body of each taxing unit, before the later
 of September 30 or the 60th day after the date the certified
 appraisal roll is received by the taxing unit, shall adopt a tax
 rate for the current tax year and shall notify the assessor for the
 unit of the rate adopted. The tax rate consists of two components,
 each of which must be approved separately. The components are:
 (1)  for a taxing unit other than a school district, the
 rate that, if applied to the total taxable value, will impose the
 total amount published under Section 26.04(e)(3)(C), less any
 amount of additional sales and use tax revenue that will be used to
 pay debt service, or, for a school district, the rate calculated
 [published] under Section 44.004(c)(5)(A)(ii)(b), Education Code;
 and
 (2)  the rate that, if applied to the total taxable
 value, will impose the amount of taxes needed to fund maintenance
 and operation expenditures of the unit for the next year.
 SECTION 57.29.  Effective September 1, 2017, Subsection (i),
 Section 26.08, Tax Code, is amended to read as follows:
 (i)  For purposes of this section, the effective maintenance
 and operations tax rate of a school district is the tax rate that,
 applied to the current total value for the district, would impose
 taxes in an amount that, when added to state funds that would be
 distributed to the district under Chapter 42, Education Code, for
 the school year beginning in the current tax year using that tax
 rate, [including state funds that will be distributed to the
 district in that school year under Section 42.2516, Education
 Code,] would provide the same amount of state funds distributed
 under Chapter 42, Education Code, [including state funds
 distributed under Section 42.2516, Education Code,] and
 maintenance and operations taxes of the district per student in
 weighted average daily attendance for that school year that would
 have been available to the district in the preceding year if the
 funding elements for Chapters 41 and 42, Education Code, for the
 current year had been in effect for the preceding year.
 SECTION 57.30.  Subsection (n), Section 311.013, Tax Code,
 is amended to read as follows:
 (n)  This subsection applies only to a school district whose
 taxable value computed under Section 403.302(d), Government Code,
 is reduced in accordance with Subdivision (4) of that
 subsection.  In addition to the amount otherwise required to be
 paid into the tax increment fund, the district shall pay into the
 fund an amount equal to the amount by which the amount of taxes the
 district would have been required to pay into the fund in the
 current year if the district levied taxes at the rate the district
 levied in 2005 exceeds the amount the district is otherwise
 required to pay into the fund in the year of the reduction. This
 additional amount may not exceed the amount the school district
 receives in state aid for the current tax year under Section
 42.2514, Education Code. The school district shall pay the
 additional amount after the district receives the state aid to
 which the district is entitled for the current tax year under
 Section 42.2514, Education Code.
 SECTION 57.31.  Effective September 1, 2011, the following
 provisions of the Education Code are repealed:
 (1)  Subsections (c-2), (c-3), and (e), Section 21.402;
 (2)  Section 42.008; and
 (3)  Subsections (a-1) and (a-2), Section 42.101.
 SECTION 57.32.  (a)  Effective September 1, 2017, the
 following provisions of the Education Code are repealed:
 (1)  Section 41.0041;
 (2)  Subsections (b), (b-1), (b-2), (c), (d), (e), (f),
 (f-1), (f-2), (f-3), and (i), Section 42.2516;
 (3)  Section 42.25161;
 (4)  Subsection (c), Section 42.2523;
 (5)  Subsection (g), Section 42.2524;
 (6)  Subsection (c-1), Section 42.253; and
 (7)  Section 42.261.
 (b)  Effective September 1, 2017, Subsections (i-1) and (j),
 Section 26.08, Tax Code, are repealed.
 SECTION 57.33.  (a)  The speaker of the house of
 representatives and the lieutenant governor shall establish a joint
 legislative interim committee to conduct a comprehensive study of
 the public school finance system in this state.
 (b)  Not later than January 15, 2013, the committee shall
 make recommendations to the 83rd Legislature regarding changes to
 the public school finance system.
 (c)  The committee is dissolved September 1, 2013.
 SECTION 57.34.  It is the intent of the legislature, between
 fiscal year 2014 and fiscal year 2018, to continue to reduce the
 amount of Additional State Aid For Tax Reduction (ASATR) to which a
 school district is entitled under Section 42.2516, Education Code,
 and to increase the basic allotment to which a school district is
 entitled under Section 42.101, Education Code.
 SECTION 57.35.  Except as otherwise provided by this Act,
 the changes in law made by this Act to Chapter 42, Education Code,
 apply beginning with the 2011-2012 school year.
 SECTION 57.36.  The change in law made by Subsection (g-1),
 Section 44.004, Education Code, as added by this Act, applies
 beginning with adoption of a tax rate for the 2011 tax year.
 ARTICLE 58.  MIXED BEVERAGE TAX REIMBURSEMENTS
 SECTION 58.01.  Effective September 1, 2013, Subsection (b),
 Section 183.051, Tax Code, is amended to read as follows:
 (b)  The comptroller shall issue to each county described in
 Subsection (a) a warrant drawn on the general revenue fund in an
 amount appropriated by the legislature that may not be less
 [greater] than 10.7143 percent of receipts from permittees within
 the county during the quarter and shall issue to each incorporated
 municipality described in Subsection (a) a warrant drawn on that
 fund in an amount appropriated by the legislature that may not be
 less [greater] than 10.7143 percent of receipts from permittees
 within the incorporated municipality during the quarter.
 ARTICLE 59.  GUARANTEE OF OPEN-ENROLLMENT CHARTER SCHOOL BONDS BY
 PERMANENT SCHOOL FUND
 SECTION 59.01.  Subchapter D, Chapter 12, Education Code, is
 amended by adding Section 12.135 to read as follows:
 Sec. 12.135.  DESIGNATION AS CHARTER DISTRICT FOR PURPOSES
 OF BOND GUARANTEE. (a)  On the application of the charter holder,
 the commissioner may grant designation as a charter district to an
 open-enrollment charter school that meets financial standards
 adopted by the commissioner.  The financial standards must require
 an open-enrollment charter school to have an investment grade
 credit rating as specified by Section 45.0541.
 (b)  A charter district may apply for bonds issued under
 Chapter 53 for the open-enrollment charter school to be guaranteed
 by the permanent school fund as provided by Chapter 45.
 SECTION 59.02.  Section 45.051, Education Code, is amended
 by adding Subdivision (1-a) and amending Subdivision (2) to read as
 follows:
 (1-a)  "Charter district" means an open-enrollment
 charter school designated as a charter district under Section
 12.135.
 (2)  "Paying agent" means the financial institution
 that is designated by a school district or charter district as its
 agent for the payment of the principal of and interest on guaranteed
 bonds.
 SECTION 59.03.  Section 45.052, Education Code, is amended
 to read as follows:
 Sec. 45.052.  GUARANTEE. (a)  On approval by the
 commissioner, bonds issued under Subchapter A by a school district
 or Chapter 53 for a charter district, including refunding bonds,
 are guaranteed by the corpus and income of the permanent school
 fund.
 (b)  Notwithstanding any amendment of this subchapter or
 other law, the guarantee under this subchapter of school district
 or charter district bonds remains in effect until the date those
 bonds mature or are defeased in accordance with state law.
 SECTION 59.04.  Subchapter C, Chapter 45, Education Code, is
 amended by adding Section 45.0532 to read as follows:
 Sec. 45.0532.  LIMITATION ON GUARANTEE OF CHARTER DISTRICT
 BONDS. (a)  In addition to the general limitation under Section
 45.053, the commissioner may not approve charter district bonds for
 guarantee under this subchapter in a total amount that exceeds the
 percentage of the total available capacity of the guaranteed bond
 program that is equal to the percentage of the number of students
 enrolled in open-enrollment charter schools in this state compared
 to the total number of students enrolled in all public schools in
 this state, as determined by the commissioner.
 (b)  For purposes of Subsection (a), the total available
 capacity of the guaranteed bond program is the limit established by
 the board under Sections 45.053(d) and 45.0531 minus the total
 amount of outstanding guaranteed bonds.  Each time the board
 increases the limit under Section 45.053(d), the total amount of
 charter district bonds that may be guaranteed increases accordingly
 under Subsection (a).
 (c)  Notwithstanding Subsections (a) and (b), the
 commissioner may not approve charter district bonds for guarantee
 under this subchapter if the guarantee will result in lower bond
 ratings for school district bonds for which a guarantee is
 requested under this subchapter.
 (d)  The commissioner may request that the comptroller place
 the portion of the permanent school fund committed to the guarantee
 of charter district bonds in a segregated account if the
 commissioner determines that a separate account is needed to avoid
 any negative impact on the bond ratings of school district bonds for
 which a guarantee is requested under this subchapter.
 (e)  A guarantee of charter district bonds must be made in
 accordance with this chapter and any applicable federal law.
 SECTION 59.05.  Section 45.054, Education Code, is amended
 to read as follows:
 Sec. 45.054.  ELIGIBILITY OF SCHOOL DISTRICT BONDS. To be
 eligible for approval by the commissioner, school district bonds
 must be issued under Subchapter A of this chapter or under
 Subchapter A, Chapter 1207, Government Code, to make a deposit
 under Subchapter B or C of that chapter, by an accredited school
 district.
 SECTION 59.06.  Subchapter C, Chapter 45, Education Code, is
 amended by adding Section 45.0541 to read as follows:
 Sec. 45.0541.  ELIGIBILITY OF CHARTER DISTRICT BONDS. To be
 eligible for approval by the commissioner, charter district bonds
 must:
 (1)  without the guarantee, be rated as investment
 grade by a nationally recognized investment rating firm; and
 (2)  be issued under Chapter 53.
 SECTION 59.07.  Subsections (a) and (b), Section 45.055,
 Education Code, are amended to read as follows:
 (a)  A school district or charter district seeking guarantee
 of eligible bonds under this subchapter shall apply to the
 commissioner using a form adopted by the commissioner for the
 purpose. The commissioner may adopt a single form on which a school
 district seeking guarantee or credit enhancement of eligible bonds
 may apply simultaneously first for guarantee under this subchapter
 and then, if that guarantee is rejected, for credit enhancement
 under Subchapter I.
 (b)  An application under Subsection (a) must include:
 (1)  the name of the school district or charter
 district and the principal amount of the bonds to be issued;
 (2)  the name and address of the district's paying agent
 for those bonds; and
 (3)  the maturity schedule, estimated interest rate,
 and date of the bonds.
 SECTION 59.08.  Section 45.056, Education Code, is amended
 to read as follows:
 Sec. 45.056.  INVESTIGATION. (a)  Following receipt of an
 application for the guarantee of bonds, the commissioner shall
 conduct an investigation of the applicant school district or
 charter district in regard to:
 (1)  the status of the district's accreditation; and
 (2)  the total amount of outstanding guaranteed bonds.
 (b)  If following the investigation the commissioner is
 satisfied that the school district's bonds should be guaranteed
 under this subchapter or provided credit enhancement under
 Subchapter I, as applicable, or the charter district's bonds should
 be guaranteed under this subchapter, the commissioner shall endorse
 the bonds.
 SECTION 59.09.  Subsection (b), Section 45.057, Education
 Code, is amended to read as follows:
 (b)  The guarantee is not effective unless the attorney
 general approves the bonds under Section 45.005 or 53.40, as
 applicable.
 SECTION 59.10.  Subchapter C, Chapter 45, Education Code, is
 amended by adding Section 45.0571 to read as follows:
 Sec. 45.0571.  CHARTER DISTRICT BOND GUARANTEE RESERVE FUND.
 (a)  The charter district bond guarantee reserve fund is a special
 fund in the state treasury outside the general revenue fund.  The
 following amounts shall be deposited in the fund:
 (1)  money due from a charter district as provided by
 Subsection (b); and
 (2)  interest earned on balances in the fund.
 (b)  A charter district that has a bond guaranteed as
 provided by this subchapter must annually remit to the
 commissioner, for deposit in the charter district bond guarantee
 reserve fund, an amount equal to 10 percent of the savings to the
 charter district that is a result of the lower interest rate on the
 bond due to the guarantee by the permanent school fund. The amount
 due under this section shall be amortized and paid over the duration
 of the bond. Each payment is due on the anniversary of the date the
 bond was issued. The commissioner shall adopt rules to determine
 the total and annual amounts due under this section.
 (c)  The commissioner may direct the comptroller to annually
 withhold the amount due to the charter district bond guarantee
 reserve fund under Subsection (b) for that year from the state funds
 otherwise payable to the charter district.
 (d)  Each year, the commissioner shall:
 (1)  review the condition of the bond guarantee program
 and the amount that must be deposited in the charter district bond
 guarantee reserve fund from charter districts; and
 (2)  determine if charter districts should be required
 to submit a greater percentage of the savings resulting from the
 guarantee.
 (e)  The commissioner shall make recommendations to the
 legislature based on the review under Subsection (d).
 SECTION 59.11.  Section 45.058, Education Code, is amended
 to read as follows:
 Sec. 45.058.  NOTICE OF DEFAULT. Immediately following a
 determination that a school district or charter district will be or
 is unable to pay maturing or matured principal or interest on a
 guaranteed bond, but not later than the fifth day before maturity
 date, the school district or charter district shall notify the
 commissioner.
 SECTION 59.12.  The heading to Section 45.059, Education
 Code, is amended to read as follows:
 Sec. 45.059.  PAYMENT OF SCHOOL DISTRICT BOND ON DEFAULT
 [FROM PERMANENT SCHOOL FUND].
 SECTION 59.13.  Subsection (a), Section 45.059, Education
 Code, is amended to read as follows:
 (a)  Immediately following receipt of notice under Section
 45.058 that a school district will be or is unable to pay maturing
 or matured principal or interest on a guaranteed bond, the
 commissioner shall instruct the comptroller to transfer from the
 appropriate account in the permanent school fund to the district's
 paying agent the amount necessary to pay the maturing or matured
 principal or interest.
 SECTION 59.14.  Subchapter C, Chapter 45, Education Code, is
 amended by adding Section 45.0591 to read as follows:
 Sec. 45.0591.  PAYMENT OF CHARTER DISTRICT BOND ON DEFAULT.
 (a)  Immediately following receipt of notice under Section 45.058
 that a charter district will be or is unable to pay maturing or
 matured principal or interest on a guaranteed bond, the
 commissioner shall instruct the comptroller to transfer from the
 charter district bond guarantee reserve fund created under Section
 45.0571 to the district's paying agent the amount necessary to pay
 the maturing or matured principal or interest.
 (b)  If money in the charter district bond guarantee reserve
 fund is insufficient to pay the amount due on a bond under
 Subsection (a), the commissioner shall instruct the comptroller to
 transfer from the appropriate account in the permanent school fund
 to the district's paying agent the amount necessary to pay the
 balance of the unpaid maturing or matured principal or interest.
 (c)  Immediately following receipt of the funds for payment
 of the principal or interest, the paying agent shall pay the amount
 due and forward the canceled bond or coupon to the comptroller.  The
 comptroller shall hold the canceled bond or coupon on behalf of the
 fund or funds from which payment was made.
 (d)  Following full reimbursement to the charter district
 bond guarantee reserve fund and the permanent school fund, if
 applicable, with interest, the comptroller shall further cancel the
 bond or coupon and forward it to the charter district for which
 payment was made.
 SECTION 59.15.  Section 45.060, Education Code, is amended
 to read as follows:
 Sec. 45.060.  BONDS NOT ACCELERATED ON DEFAULT. If a school
 district or charter district fails to pay principal or interest on a
 guaranteed bond when it matures, other amounts not yet mature are
 not accelerated and do not become due by virtue of the school
 district's or charter district's default.
 SECTION 59.16.  The heading to Section 45.061, Education
 Code, is amended to read as follows:
 Sec. 45.061.  REIMBURSEMENT OF FUNDS [PERMANENT SCHOOL
 FUND].
 SECTION 59.17.  Section 45.061, Education Code, is amended
 by amending Subsections (a) and (b) and adding Subsection (a-1) to
 read as follows:
 (a)  If the commissioner orders payment from the permanent
 school fund or the charter district bond guarantee reserve fund on
 behalf of a school district or charter district, the commissioner
 shall direct the comptroller to withhold the amount paid, plus
 interest, from the first state money payable to the school district
 or charter district. Except as provided by Subsection (a-1), the
 [The] amount withheld shall be deposited to the credit of the
 permanent school fund.
 (a-1)  After the permanent school fund has been reimbursed
 for all money paid from the fund as the result of a default of a
 charter district bond guaranteed under this subchapter, any
 remaining amounts withheld under Subsection (a) shall be deposited
 to the credit of the charter district bond guarantee reserve fund.
 (b)  In accordance with the rules of the board, the
 commissioner may authorize reimbursement to the permanent school
 fund or charter district bond guarantee reserve fund with interest
 in a manner other than that provided by this section.
 SECTION 59.18.  Section 45.062, Education Code, is amended
 by adding Subsection (a-1) to read as follows:
 (a-1)  If a total of two or more payments are made under this
 subchapter on charter district bonds and the commissioner
 determines that the charter district is acting in bad faith under
 the guarantee program under this subchapter, the commissioner may
 request the attorney general to institute appropriate legal action
 to compel the charter district and its officers, agents, and
 employees to comply with the duties required of them by law in
 regard to the bonds.
 SECTION 59.19.  Subdivision (10), Section 53.02, Education
 Code, is amended to read as follows:
 (10)  "Authorized charter school" means an
 open-enrollment charter school that holds a charter granted under
 Subchapter D, Chapter 12, and includes an open-enrollment charter
 school designated as a charter district as provided by Section
 12.135.
 SECTION 59.20.  Section 53.351, Education Code, is amended
 by amending Subsection (f) and adding Subsection (f-1) to read as
 follows:
 (f)  Except as provided by Subsection (f-1), a [A] revenue
 bond issued under this section is not a debt of the state or any
 state agency, political corporation, or political subdivision of
 the state and is not a pledge of the faith and credit of any of these
 entities.  A revenue bond is payable solely from the revenue of the
 authorized open-enrollment charter school on whose behalf the bond
 is issued.  A revenue bond issued under this section must contain on
 its face a statement to the effect that:
 (1)  neither the state nor a state agency, political
 corporation, or political subdivision of the state is obligated to
 pay the principal of or interest on the bond; and
 (2)  neither the faith and credit nor the taxing power
 of the state or any state agency, political corporation, or
 political subdivision of the state is pledged to the payment of the
 principal of or interest on the bond.
 (f-1)  Subsection (f) does not apply to a revenue bond issued
 under this section for a charter district if the bond is approved
 for guarantee by the permanent school fund under Subchapter C,
 Chapter 45.
 SECTION 59.21.  This article applies only to a bond issued or
 refunded on or after the effective date of this Act by an
 open-enrollment charter school designated as a charter district
 under Section 12.135, Education Code, as added by this article. A
 bond issued or refunded by an open-enrollment charter school before
 the effective date of this Act is governed by the law in effect
 immediately before that date, and that law is continued in effect
 for that purpose.
 ARTICLE 60. AWARD OF SERVICE PROVIDER CONTRACTS FOR ADULT
 EDUCATION PROGRAMS
 SECTION 60.01.  Subchapter H, Chapter 29, Education Code, is
 amended by adding Section 29.2535 to read as follows:
 Sec. 29.2535.  SERVICE PROVIDER CONTRACTS:  COMPETITIVE
 PROCUREMENT REQUIREMENT. (a)  The agency shall use a competitive
 procurement process to award a contract to a service provider of an
 adult education program.
 (b)  The agency shall adopt rules to administer this section.
 SECTION 60.02.  (a)  The change in law made by Subsection
 (a), Section 29.2535, Education Code, as added by this article,
 applies only to a contract entered into on or after the effective
 date of this article.
 (b)  Not later than August 31, 2012, the Texas Education
 Agency shall adopt rules to provide for a competitive procurement
 process to award contracts to service providers of adult education
 programs as provided by Section 29.2535, Education Code, as added
 by this article.
 SECTION 60.03.  (a)  Except as provided by Subsection (b) of
 this section, this article takes effect September 1, 2012.
 (b)  Subsection (b), Section 29.2535, Education Code, as
 added by this article, takes effect on the 91st day after the last
 day of the legislative session.
 ARTICLE 61.  STATE VIRTUAL SCHOOL NETWORK
 SECTION 61.01.  Subsection (a), Section 30A.002, Education
 Code, is amended to read as follows:
 (a)  A student is eligible to enroll in a course provided
 through the state virtual school network only if the student:
 (1)  [is younger than 21 years of age] on September 1 of
 the school year:
 (A)  is younger than 21 years of age; or
 (B)  is younger than 26 years of age and entitled
 to the benefits of the Foundation School Program under Section
 42.003;
 (2)  has not graduated from high school; and
 (3)  is otherwise eligible to enroll in a public school
 in this state.
 SECTION 61.02.  Subchapter A, Chapter 30A, Education Code,
 is amended by adding Section 30A.007 to read as follows:
 Sec. 30A.007.  LOCAL POLICY ON ELECTRONIC COURSES. (a)  A
 school district or open-enrollment charter school shall adopt a
 policy that provides district or school students with the
 opportunity to enroll in electronic courses provided through the
 state virtual school network. The policy must be consistent with
 the requirements imposed by Section 26.0031.
 (b)  For purposes of a policy adopted under Subsection (a),
 the determination of whether or not an electronic course will meet
 the needs of a student with a disability shall be made by the
 student's admission, review, and dismissal committee in a manner
 consistent with state and federal law, including the Individuals
 with Disabilities Education Act (20 U.S.C. Section 1400 et seq.)
 and Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section
 794).
 SECTION 61.03.  Subchapter C, Chapter 30A, Education Code,
 is amended by adding Section 30A.1021 to read as follows:
 Sec. 30A.1021.  PUBLIC ACCESS TO USER COMMENTS REGARDING
 ELECTRONIC COURSES. (a)  The administering authority shall
 provide students who have completed or withdrawn from electronic
 courses offered through the virtual school network and their
 parents with a mechanism for providing comments regarding the
 courses.
 (b)  The mechanism required by Subsection (a) must include a
 quantitative rating system and a list of verbal descriptors that a
 student or parent may select as appropriate.
 (c)  The administering authority shall provide public access
 to the comments submitted by students and parents under this
 section. The comments must be in a format that permits a person to
 sort the comments by teacher, electronic course, and provider
 school district or school.
 SECTION 61.04.  Section 30A.104, Education Code, is amended
 to read as follows:
 Sec. 30A.104.  COURSE ELIGIBILITY IN GENERAL. (a)  A course
 offered through the state virtual school network must:
 (1)  be in a specific subject that is part of the
 required curriculum under Section 28.002(a);
 (2)  be aligned with the essential knowledge and skills
 identified under Section 28.002(c) for a grade level at or above
 grade level three; and
 (3)  be the equivalent in instructional rigor and scope
 to a course that is provided in a traditional classroom setting
 during:
 (A)  a semester of 90 instructional days; and
 (B)  a school day that meets the minimum length of
 a school day required under Section 25.082.
 (b)  If the essential knowledge and skills with which an
 approved course is aligned in accordance with Subsection (a)(2) are
 modified, the provider school district or school must be provided
 the same time period to revise the course to achieve alignment with
 the modified essential knowledge and skills as is provided for the
 modification of a course provided in a traditional classroom
 setting.
 SECTION 61.05.  Section 30A.105, Education Code, is amended
 by adding Subsections (a-1) and (a-2) and amending Subsection (d)
 to read as follows:
 (a-1)  The administering authority shall publish the
 schedule established under Subsection (a)(1), including any
 deadlines specified in that schedule, and any guidelines applicable
 to the submission and approval process for electronic courses.
 (a-2)  The evaluation required by Subsection (a)(2) must
 include review of each electronic course component, including
 off-line material proposed to be used in the course.
 (d)  If the agency determines that the costs of evaluating
 and approving a submitted electronic course will not be paid by the
 agency due to a shortage of funds available for that purpose, the
 school district, open-enrollment charter school, or public or
 private institution of higher education that submitted the course
 for evaluation and approval may pay a fee equal to the amount of the
 costs in order to ensure that evaluation of the course occurs. The
 agency shall establish and publish a fee schedule for purposes of
 this subsection.
 SECTION 61.06.  Subsection (a), Section 30A.107, Education
 Code, is amended to read as follows:
 (a)  A provider school district or school may offer
 electronic courses to:
 (1)  students and adults who reside in this state; and
 (2)  students who reside outside this state and who
 meet the eligibility requirements under Section 30A.002(c).
 SECTION 61.07.  Subchapter D, Chapter 30A, Education Code,
 is amended by adding Section 30A.153 to read as follows:
 Sec. 30A.153.  FOUNDATION SCHOOL PROGRAM FUNDING. (a)  A
 school district or open-enrollment charter school in which a
 student is enrolled is entitled to funding under Chapter 42 for the
 student's enrollment in an electronic course offered through the
 state virtual school network in the same manner that the district or
 school is entitled to funding for the student's enrollment in
 courses provided in a traditional classroom setting, provided that
 the student successfully completes the electronic course.
 (b)  The commissioner, after considering comments from
 school district and open-enrollment charter school
 representatives, shall adopt a standard agreement that governs
 payment of funds and other matters relating to a student's
 enrollment in an electronic course offered through the state
 virtual school network. The agreement may not require a school
 district or open-enrollment charter school to pay the provider the
 full amount until the student has successfully completed the
 electronic course.
 (c)  A school district or open-enrollment charter school
 shall use the standard agreement adopted under Subsection (b)
 unless:
 (1)  the district or school requests from the
 commissioner permission to modify the standard agreement; and
 (2)  the commissioner authorizes the modification.
 (d)  The commissioner shall adopt rules necessary to
 implement this section, including rules regarding attendance
 accounting.
 SECTION 61.08.  Subsection (a), Section 42.302, Education
 Code, is amended to read as follows:
 (a)  Each school district is guaranteed a specified amount
 per weighted student in state and local funds for each cent of tax
 effort over that required for the district's local fund assignment
 up to the maximum level specified in this subchapter.  The amount
 of state support, subject only to the maximum amount under Section
 42.303, is determined by the formula:
 GYA = (GL X WADA X DTR X 100) - LR
 where:
 "GYA" is the guaranteed yield amount of state funds to be
 allocated to the district;
 "GL" is the dollar amount guaranteed level of state and local
 funds per weighted student per cent of tax effort, which is an
 amount described by Subsection (a-1) or a greater amount for any
 year provided by appropriation;
 "WADA" is the number of students in weighted average daily
 attendance, which is calculated by dividing the sum of the school
 district's allotments under Subchapters B and C, less any allotment
 to the district for transportation, any allotment under Section
 42.158[, 42.159,] or 42.160, and 50 percent of the adjustment under
 Section 42.102, by the basic allotment for the applicable year;
 "DTR" is the district enrichment tax rate of the school
 district, which is determined by subtracting the amounts specified
 by Subsection (b) from the total amount of maintenance and
 operations taxes collected by the school district for the
 applicable school year and dividing the difference by the quotient
 of the district's taxable value of property as determined under
 Subchapter M, Chapter 403, Government Code, or, if applicable,
 under Section 42.2521, divided by 100; and
 "LR" is the local revenue, which is determined by multiplying
 "DTR" by the quotient of the district's taxable value of property as
 determined under Subchapter M, Chapter 403, Government Code, or, if
 applicable, under Section 42.2521, divided by 100.
 SECTION 61.09.  Section 42.159, Education Code, is repealed.
 ARTICLE 62. TRANSFERRING TEXAS DEPARTMENT OF RURAL AFFAIRS TO
 OFFICE OF RURAL AFFAIRS WITHIN DEPARTMENT OF AGRICULTURE
 SECTION 62.01.  The heading to Chapter 487, Government Code,
 is amended to read as follows:
 CHAPTER 487. OFFICE [TEXAS DEPARTMENT] OF RURAL
 AFFAIRS IN DEPARTMENT OF AGRICULTURE
 SECTION 62.02.  Section 487.001, Government Code, is amended
 to read as follows:
 Sec. 487.001.  DEFINITIONS. In this chapter:
 (1)  "Board" means the commissioner [board of the Texas
 Department of Rural Affairs].
 (2)  "Commissioner" means the commissioner of
 agriculture.
 (3)  "Department" means the office [Texas Department of
 Rural Affairs].
 (4)  "Office" means the Office of Rural Affairs
 established within the Department of Agriculture under Section
 12.038, Agriculture Code.
 SECTION 62.03.  Subchapter A, Chapter 487, Government Code,
 is amended by adding Section 487.003 to read as follows:
 Sec. 487.003.  REFERENCE IN LAW. (a)  A reference in this
 chapter or other law to the Texas Department of Rural Affairs or the
 Office of Rural Community Affairs means the office, and a reference
 in this chapter or other law to the board of the Texas Department of
 Rural Affairs means the commissioner.
 (b)  A reference in law to the executive director of the
 Texas Department of Rural Affairs means the director of the Office
 of Rural Affairs appointed under Section 12.038, Agriculture Code.
 SECTION 62.04.  Section 487.026, Government Code, is amended
 to read as follows:
 Sec. 487.026.  [EXECUTIVE] DIRECTOR. (a)  The [board may
 hire an executive] director serves [to serve] as the chief
 executive officer of the office [department] and performs [to
 perform] the administrative duties of the office [department].
 (b)  [The executive director serves at the will of the board.
 [(c)]  The [executive] director may hire staff within
 guidelines established by the commissioner [board].
 SECTION 62.05.  Subsection (a), Section 487.051, Government
 Code, is amended to read as follows:
 (a)  The office [department] shall:
 (1)  assist rural communities in the key areas of
 economic development, community development, rural health, and
 rural housing;
 (2)  serve as a clearinghouse for information and
 resources on all state and federal programs affecting rural
 communities;
 (3)  in consultation with rural community leaders,
 locally elected officials, state elected and appointed officials,
 academic and industry experts, and the interagency work group
 created under this chapter, identify and prioritize policy issues
 and concerns affecting rural communities in the state;
 (4)  make recommendations to the legislature to address
 the concerns affecting rural communities identified under
 Subdivision (3);
 (5)  monitor developments that have a substantial
 effect on rural Texas communities, especially actions of state
 government, and compile an annual report describing and evaluating
 the condition of rural communities;
 (6)  administer the federal community development
 block grant nonentitlement program;
 (7)  administer programs supporting rural health care
 as provided by this chapter;
 (8)  perform research to determine the most beneficial
 and cost-effective ways to improve the welfare of rural
 communities;
 (9)  ensure that the office [department] qualifies as
 the state's office of rural health for the purpose of receiving
 grants from the Office of Rural Health Policy of the United States
 Department of Health and Human Services under 42 U.S.C. Section
 254r;
 (10)  manage the state's Medicare rural hospital
 flexibility program under 42 U.S.C. Section 1395i-4;
 (11)  seek state and federal money available for
 economic development in rural areas for programs under this
 chapter;
 (12)  in conjunction with other offices and divisions
 of the Department of Agriculture, regularly cross-train office
 [department] employees with other employees of the Department of
 Agriculture regarding the programs administered and services
 provided [by each agency] to rural communities; and
 (13)  work with interested persons to assist volunteer
 fire departments and emergency services districts in rural areas.
 SECTION 62.06.  Subsection (c), Section 487.0541,
 Government Code, is amended to read as follows:
 (c)  The work group shall meet at the call of the [executive]
 director of the office [department].
 SECTION 62.07.  Section 487.055, Government Code, is amended
 to read as follows:
 Sec. 487.055.  ADVISORY COMMITTEES. (a)  The commissioner
 [board] may appoint advisory committees as necessary to assist the
 office [board] in performing its duties. An advisory committee may
 be composed of private citizens and representatives from state and
 local governmental entities. A state or local governmental entity
 shall appoint a representative to an advisory committee at the
 request of the commissioner [board].
 (b)  Chapter 2110 does not apply to an advisory committee
 created under this section.
 SECTION 62.08.  Subsection (d), Section 487.351, Government
 Code, is amended to read as follows:
 (d)  An applicant for a grant, loan, or award under a
 community development block grant program may appeal a decision of
 the [executive] director by filing an appeal with the commissioner
 [board]. The commissioner [board] shall hold a hearing on the
 appeal and render a decision.
 SECTION 62.09.  Chapter 487, Government Code, is amended by
 adding Subchapter R to read as follows:
 SUBCHAPTER R.  TEXAS RURAL HEALTH AND ECONOMIC DEVELOPMENT ADVISORY
 COUNCIL
 Sec. 487.801.  DEFINITION.  In this subchapter, "advisory
 council" means the Texas Rural Health and Economic Development
 Advisory Council established under this subchapter.
 Sec. 487.802.  ESTABLISHMENT AND COMPOSITION OF ADVISORY
 COUNCIL;  PRESIDING OFFICER.  (a)  The commissioner shall establish
 the Texas Rural Health and Economic Development Advisory Council,
 composed of the following members:
 (1)  one local official in this state with health care
 expertise, appointed by the commissioner;
 (2)  one county official in this state with health care
 expertise, appointed by the commissioner;
 (3)  one senator serving a predominantly rural area,
 appointed by the lieutenant governor;
 (4)  one member of the house of representatives serving
 a predominantly rural area, appointed by the speaker of the house of
 representatives;
 (5)  a representative of an institution of higher
 education in this state that specializes in public health and
 community and economic development, appointed by the commissioner;
 and
 (6)  four public members with health care or economic
 development expertise, appointed by the commissioner.
 (b)  The members of the advisory council serve staggered
 three-year terms.  A member of the council appointed by the
 commissioner serves at the pleasure of the commissioner.
 (c)  The commissioner shall serve as presiding officer of the
 advisory council and as a nonvoting member of the advisory council.
 The commissioner is not counted as a member of the advisory council
 for purposes of establishing a quorum.
 Sec. 487.803.  DUTIES OF ADVISORY COUNCIL.  The advisory
 council shall:
 (1)  advise the commissioner, director, and office on
 rural policy priorities, including priorities for the use and
 allocation in this state of federal block grant money;
 (2)  review this state's existing rural policies and
 programs;
 (3)  meet with the representatives of state agencies
 that administer rural programs as necessary to conduct the review
 required under Subdivision (2);
 (4)  make recommendations to the office regarding the
 allocation in this state of federal block grant money; and
 (5)  establish a rural health task force composed of
 all or a portion of the members of the advisory council.
 Sec. 487.804.  RURAL POLICY PLAN.  (a)  Not later than
 December 1 of each even-numbered year, the advisory council shall
 develop a rural policy plan that includes:
 (1)  strategic initiatives for this state regarding
 economic development, community development, and rural health,
 including priorities for the use and allocation in this state of
 federal block grant money; and
 (2)  recommendations for legislation and program
 development or revision.
 (b)  Not later than January 1 of each even-numbered year, the
 commissioner shall submit to the legislature a report of the
 findings of the advisory council.
 Sec. 487.805.  RURAL HEALTH TASK FORCE.  The rural health
 task force shall:
 (1)  assist the advisory council in its efforts to
 expand and improve access to health care in rural areas of this
 state; and
 (2)  develop a statewide rural health plan for this
 state that includes:
 (A)  strategic initiatives for this state
 regarding rural health; and
 (B)  recommendations for legislation and program
 development or revision.
 Sec. 487.806.  REIMBURSEMENT OF EXPENSES.  A member of the
 advisory council may not receive compensation for service on the
 advisory council or rural health task force.  Subject to
 availability of funds, an advisory council member may receive
 reimbursement for actual and necessary expenses incurred while
 conducting advisory council or task force business, as appropriate.
 SECTION 62.10.  Subsection (b), Section 2306.1092,
 Government Code, is amended to read as follows:
 (b)  The council is composed of 16 members consisting of:
 (1)  the director;
 (2)  one representative from each of the following
 agencies, appointed by the head of that agency:
 (A)  the Office of Rural [Community] Affairs
 within the Department of Agriculture;
 (B)  the Texas State Affordable Housing
 Corporation;
 (C)  the Health and Human Services Commission;
 (D)  the Department of Assistive and
 Rehabilitative Services;
 (E)  the Department of Aging and Disability
 Services; and
 (F)  the Department of State Health Services;
 (3)  one representative from the Department of
 Agriculture who is:
 (A)  knowledgeable about the Texans Feeding
 Texans and Retire in Texas programs or similar programs; and
 (B)  appointed by the head of that agency;
 (4)  one member who is:
 (A)  a member of the Health and Human Services
 Commission Promoting Independence Advisory Committee; and
 (B)  appointed by the governor; and
 (5)  one representative from each of the following
 interest groups, appointed by the governor:
 (A)  financial institutions;
 (B)  multifamily housing developers;
 (C)  health services entities;
 (D)  nonprofit organizations that advocate for
 affordable housing and consumer-directed long-term services and
 support;
 (E)  consumers of service-enriched housing;
 (F)  advocates for minority issues; and
 (G)  rural communities.
 SECTION 62.11.  The following provisions of the Government
 Code are repealed:
 (1)  Sections 487.002, 487.021, 487.022, 487.023,
 487.024, 487.025, 487.028, and 487.029;
 (2)  Subsection (b), Section 487.051; and
 (3)  Sections 487.058 and 487.352.
 SECTION 62.12.  (a)  The Texas Department of Rural Affairs
 is abolished as an independent agency and transferred as a program
 to the Office of Rural Affairs in the Department of Agriculture.
 The board of the Texas Department of Rural Affairs is abolished.
 (b)  The validity of an action taken by the Texas Department
 of Rural Affairs or its board before either is abolished under
 Subsection (a) of this section is not affected by the abolishment.
 (c)  All rules, policies, procedures, and decisions of the
 Texas Department of Rural Affairs are continued in effect as rules,
 policies, procedures, and decisions of the Office of Rural Affairs
 in the Department of Agriculture until superseded by a rule,
 policy, procedure, or decision of the office.
 (d)  Any pending action or proceeding before the Texas
 Department of Rural Affairs becomes an action or proceeding before
 the Office of Rural Affairs in the Department of Agriculture.
 SECTION 62.13.  (a) On October 1, 2011:
 (1)  the position of executive director of the Texas
 Department of Rural Affairs is abolished, except that the director
 of the Office of Rural Affairs in the Department of Agriculture may
 hire the executive director for a position in the office;
 (2)  an employee of the Texas Department of Rural
 Affairs becomes an employee of the Office of Rural Affairs in the
 Department of Agriculture;
 (3)  a reference in law to the Texas Department of Rural
 Affairs means the Office of Rural Affairs in the Department of
 Agriculture;
 (4)  all money, contracts, leases, rights, and
 obligations of the Texas Department of Rural Affairs are
 transferred to the Office of Rural Affairs in the Department of
 Agriculture;
 (5)  all property, including records, in the custody of
 the Texas Department of Rural Affairs becomes the property of the
 Office of Rural Affairs in the Department of Agriculture; and
 (6)  all funds appropriated by the legislature to the
 Texas Department of Rural Affairs are transferred to the Office of
 Rural Affairs in the Department of Agriculture.
 (b)  A function or activity performed by the Texas Department
 of Rural Affairs is transferred to the Office of Rural Affairs in
 the Department of Agriculture as provided by this article.
 SECTION 62.14.  The Texas Department of Rural Affairs and
 the Department of Agriculture shall establish a transition plan for
 the transfer described in Sections 62.12 and 62.13 of this article.
 SECTION 62.15.  Notwithstanding any other provision of this
 article, the governor retains the authority to designate an agency
 to administer federal disaster recovery funds and to transfer the
 federal funds to any state agency. On the date the governor
 designates a state agency, other than the Texas Department of Rural
 Affairs, to administer the federal community development block
 grant disaster recovery funds received for Hurricanes Rita, Dolly,
 and Ike:
 (1)  a reference in law to the Texas Department of Rural
 Affairs related to the disaster recovery funds means the agency
 designated by the governor to administer the disaster recovery
 funds;
 (2)  all money, contracts, leases, rights, and
 obligations of the Texas Department of Rural Affairs related to the
 disaster recovery funds are transferred to the designated agency;
 and
 (3)  all property, including records, in the custody of
 the Texas Department of Rural Affairs related to the disaster
 recovery funds becomes the property of the designated agency.
 ARTICLE 63.  SUITS AFFECTING THE PARENT-CHILD RELATIONSHIP
 SECTION 63.01.  Section 263.601, Family Code, is amended by
 amending Subdivision (1) and adding Subdivision (3-a) to read as
 follows:
 (1)  "Foster care" means a voluntary residential living
 arrangement with a foster parent or other residential child-care
 provider that is:
 (A)  licensed or approved by the department or
 verified by a licensed child-placing agency; and
 (B)  paid under a contract with the department.
 (3-a)  "Trial independence period" means a period of
 not less than six months, or a longer period as a court may order not
 to exceed 12 months, during which a young adult exits foster care
 with the option to return to foster care under the continuing
 extended jurisdiction of the court.
 SECTION 63.02.  Section 263.602, Family Code, is amended to
 read as follows:
 Sec. 263.602.  EXTENDED JURISDICTION. (a)  A court that had
 continuing, exclusive jurisdiction over a young adult on the day
 before [may, at] the young adult's 18th birthday continues to have
 extended [request, render an order that extends the court's]
 jurisdiction over the young adult and shall retain the case on the
 court's docket while the young adult remains in extended foster
 care and during a trial independence period described [as provided]
 by this section [subchapter].
 (b)  A court with extended jurisdiction over a young adult
 who remains in extended foster care shall conduct extended foster
 care review hearings every six months for the purpose of reviewing
 and making findings regarding:
 (1)  whether the young adult's living arrangement is
 safe and appropriate and whether the department has made reasonable
 efforts to place the young adult in the least restrictive
 environment necessary to meet the young adult's needs;
 (2)  whether the department is making reasonable
 efforts to finalize the permanency plan that is in effect for the
 young adult, including a permanency plan for independent living;
 (3)  whether, for a young adult whose permanency plan
 is independent living:
 (A)  the young adult participated in the
 development of the plan of service;
 (B)  the young adult's plan of service reflects
 the independent living skills and appropriate services needed to
 achieve independence by the projected date; and
 (C)  the young adult continues to make reasonable
 progress in developing the skills needed to achieve independence by
 the projected date; and
 (4)  whether additional services that the department is
 authorized to provide are needed to meet the needs of the young
 adult [The extended jurisdiction of the court terminates on the
 earlier of:
 [(1)  the young adult's 21st birthday; or
 [(2)     the date the young adult withdraws consent to the
 extension of the court's jurisdiction in writing or in court].
 (c)  Not later than the 10th day before the date set for a
 hearing under this section, the department shall file with the
 court a copy of the young adult's plan of service and a report that
 addresses the issues described by Subsection (b).
 (d)  Notice of an extended foster care review hearing shall
 be given as provided by Rule 21a, Texas Rules of Civil Procedure, to
 the following persons, each of whom has a right to present evidence
 and be heard at the hearing:
 (1)  the young adult who is the subject of the suit;
 (2)  the department;
 (3)  the foster parent with whom the young adult is
 placed and the administrator of a child-placing agency responsible
 for placing the young adult, if applicable;
 (4)  the director of the residential child-care
 facility or other approved provider with whom the young adult is
 placed, if applicable;
 (5)  each parent of the young adult whose parental
 rights have not been terminated and who is still actively involved
 in the life of the young adult;
 (6)  a legal guardian of the young adult, if
 applicable; and
 (7)  the young adult's attorney ad litem, guardian ad
 litem, and volunteer advocate, the appointment of which has not
 been previously dismissed by the court.
 (e)  If, after reviewing the young adult's plan of service
 and the report filed under Subsection (c), and any additional
 testimony and evidence presented at the review hearing, the court
 determines that the young adult is entitled to additional services,
 the court may order the department to take appropriate action to
 ensure that the young adult receives those services.
 (f)  A court with extended jurisdiction over a young adult as
 described in Subsection (a) shall continue to have jurisdiction
 over the young adult and shall retain the case on the court's docket
 until the earlier of:
 (1)  the last day of the:
 (A)  sixth month after the date the young adult
 leaves foster care; or
 (B)  12th month after the date the young adult
 leaves foster care if specified in a court order, for the purpose of
 allowing the young adult to pursue a trial independence period; or
 (2)  the young adult's 21st birthday.
 (g)  A court with extended jurisdiction described by this
 section is not required to conduct periodic hearings for a young
 adult during a trial independence period and may not compel a young
 adult who has exited foster care to attend a court hearing.
 SECTION 63.03.  Subchapter G, Chapter 263, Family Code, is
 amended by adding Section 263.6021 to read as follows:
 Sec. 263.6021.  VOLUNTARY EXTENDED JURISDICTION FOR YOUNG
 ADULT RECEIVING TRANSITIONAL LIVING SERVICES.
 (a)  Notwithstanding Section 263.602, a court that had continuing,
 exclusive jurisdiction over a young adult on the day before the
 young adult's 18th birthday may, at the young adult's request,
 render an order that extends the court's jurisdiction beyond the
 end of a trial independence period if the young adult receives
 transitional living services from the department.
 (b)  The extended jurisdiction of the court under this
 section terminates on the earlier of:
 (1)  the young adult's 21st birthday; or
 (2)  the date the young adult withdraws consent to the
 extension of the court's jurisdiction in writing or in court.
 (c)  At the request of a young adult who is receiving
 transitional living services from the department and who consents
 to voluntary extension of the court's jurisdiction under this
 section, the court may hold a hearing to review the services the
 young adult is receiving.
 (d)  Before a review hearing scheduled under this section,
 the department must file with the court a report summarizing the
 young adult's transitional living services plan, services being
 provided to the young adult under that plan, and the young adult's
 progress in achieving independence.
 (e)  If, after reviewing the report and any additional
 testimony and evidence presented at the hearing, the court
 determines that the young adult is entitled to additional services,
 the court may order the department to take appropriate action to
 ensure that the young adult receives those services.
 SECTION 63.04.  Subsections (a) and (c), Section 263.603,
 Family Code, are amended to read as follows:
 (a)  Notwithstanding Section 263.6021 [263.602], if the
 court believes that a young adult may be incapacitated as defined by
 Section 601(14)(B), Texas Probate Code, the court may extend its
 jurisdiction on its own motion without the young adult's consent to
 allow the department to refer the young adult to the Department of
 Aging and Disability Services for guardianship services as required
 by Section 48.209, Human Resources Code.
 (c)  If the Department of Aging and Disability Services
 determines a guardianship is not appropriate, or the court with
 probate jurisdiction denies the application to appoint a guardian,
 the court under Subsection (a) may continue to extend its
 jurisdiction over the young adult only as provided by Section
 263.602 or 263.6021.
 SECTION 63.05.  Section 263.609, Family Code, is repealed.
 SECTION 63.06.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution. If this Act does not receive the vote necessary for
 immediate effect, this article takes effect on the 91st day after
 the last day of the legislative session.
 ARTICLE 64.  TEXAS COMMISSION ON FIRE PROTECTION FEES
 SECTION 64.01.  Subsection (d), Section 419.026, Government
 Code, is amended to read as follows:
 (d)  The commission shall send the fees authorized by
 Subsection (a) and Section 419.033(b) to the comptroller.  The
 comptroller [, who] shall deposit a portion [50 percent] of the fees
 collected [annually] into [the general revenue fund and 50 percent
 of the fees collected annually into] a special account in the
 general revenue fund dedicated for use by the commission.  In any
 state fiscal biennium, the comptroller may not deposit into the
 account fees in an amount that exceeds the amount appropriated to
 the commission for that biennium, less any other amount
 appropriated to the commission from a source other than the fees.
 The account is exempt from the application of Section 403.095.  The
 comptroller shall deposit the remainder of the fees in the general
 revenue fund [Except as otherwise provided by this chapter, 50
 percent of the special fund created under this subsection may be
 used only to defray the commission's costs in performing
 inspections under Section 419.027 and the other 50 percent may be
 used only to provide training assistance under Section 419.031].
 SECTION 64.02.  The dedication of certain fees to a special
 account in the general revenue fund dedicated for use by the Texas
 Commission on Fire Protection under Subsection (d), Section
 419.026, Government Code, was abolished effective August 31, 1995,
 under former Subsection (h), Section 403.094, Government Code, as
 enacted by Section 11.04, Chapter 4 (S.B. 3), Acts of the 72nd
 Legislature, 1st Called Session, 1991. Those fees are rededicated
 to that fund by this article.
 SECTION 64.03.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 this article to have immediate effect, this article takes effect
 October 1, 2011.
 ARTICLE 65.  PROVISIONS RELATING TO CORRECTIONAL HEALTH CARE
 SECTION 65.01.  Subchapter C, Chapter 499, Government Code,
 is amended by adding Section 499.055 to read as follows:
 Sec. 499.055.  POPULATION MANAGEMENT BASED ON INMATE HEALTH.
 The department shall adopt policies designed to manage inmate
 population based on similar health conditions suffered by inmates.
 The policies adopted under this section must maximize
 organizational efficiencies and reduce health care costs to the
 department by housing inmates with similar health conditions in the
 same unit or units that are, if possible, served by or located near
 one or more specialty health care providers most likely to be needed
 for the treatment of the health condition.
 SECTION 65.02.  Section 501.063, Government Code, is amended
 to read as follows:
 Sec. 501.063.  INMATE FEE [COPAYMENTS] FOR [CERTAIN] HEALTH
 CARE [VISITS]. (a) (1)  An inmate confined in a facility operated
 by or under contract with the department, other than a halfway
 house, who initiates a visit to a health care provider shall pay a
 health care services fee [make a copayment] to the department in the
 amount of $100 [$3].
 (2)  The fee imposed under Subdivision (1) covers all
 visits to a health care provider that the inmate initiates until the
 first anniversary of the imposition of the fee.
 (3)  The inmate shall pay [make] the fee [copayment]
 out of the inmate's trust fund. If the balance in the fund is
 insufficient to cover the fee [copayment], 50 percent of each
 deposit to the fund shall be applied toward the balance owed until
 the total amount owed is paid.
 (b)  [The department may not charge a copayment for health
 care:
 [(1)     provided in response to a life-threatening or
 emergency situation affecting the inmate's health;
 [(2)  initiated by the department;
 [(3)     initiated by the health care provider or
 consisting of routine follow-up, prenatal, or chronic care; or
 [(4)     provided under a contractual obligation that is
 established under the Interstate Corrections Compact or under an
 agreement with another state that precludes assessing a copayment.
 [(c)]  The department shall adopt policies to ensure that
 before any deductions are made from an inmate's trust fund under
 this section [an inmate initiates a visit to a health care
 provider], the inmate is informed that the health care services fee
 [a $3 copayment] will be deducted from the inmate's trust fund as
 required by Subsection (a).
 (c) [(d)]  The department may not deny an inmate access to
 health care as a result of the inmate's failure or inability to pay
 a fee under this section [make a copayment].
 (d) [(e)]  The department shall deposit money received under
 this section in an account in the general revenue fund that may be
 used only to pay the cost of correctional health care
 [administering this section]. At the beginning of each fiscal
 year, the comptroller shall transfer any surplus from the preceding
 fiscal year to the state treasury to the credit of the general
 revenue fund.
 SECTION 65.03.  Subchapter B, Chapter 501, Government Code,
 is amended by adding Section 501.067 to read as follows:
 Sec. 501.067.  AVAILABILITY OF CERTAIN MEDICATION. (a)  In
 this section, "over-the-counter medication" means medication that
 may legally be sold and purchased without a prescription.
 (b)  The department shall make over-the-counter medication
 available for purchase by inmates in each inmate commissary
 operated by or under contract with the department.
 (c)  The department may not deny an inmate access to
 over-the-counter medications as a result of the inmate's inability
 to pay for the medication. The department shall pay for the cost of
 over-the-counter medication for inmates who are unable to pay for
 the medication out of the profits of inmate commissaries operated
 by or under contract with the department.
 (d)  The department may adopt policies concerning the sale
 and purchase of over-the-counter medication under this section as
 necessary to ensure the safety and security of inmates in the
 custody of, and employees of, the department, including policies
 concerning the quantities and types of over-the-counter medication
 that may be sold and purchased under this section.
 SECTION 65.04.  Subchapter E, Chapter 501, Government Code,
 is amended by adding Section 501.1485 to read as follows:
 Sec. 501.1485.  CORRECTIONS MEDICATION AIDES. (a)  The
 department, in cooperation with The University of Texas Medical
 Branch at Galveston and the Texas Tech University Health Sciences
 Center, shall develop and implement a training program for
 corrections medication aides that uses a curriculum specific to
 administering medication in a correctional setting.
 (b)  In developing the curriculum for the training program,
 the department, The University of Texas Medical Branch at
 Galveston, and the Texas Tech University Health Sciences Center
 shall:
 (1)  consider the content of the curriculum developed
 by the American Correctional Association for certified corrections
 nurses; and
 (2)  modify as appropriate the content of the
 curriculum developed under Chapter 242, Health and Safety Code, for
 medication aides administering medication in convalescent and
 nursing homes and related institutions to produce content suitable
 for administering medication in a correctional setting.
 (c)  The department shall submit an application for the
 approval of a training program developed under this section,
 including the curriculum, to the Department of Aging and Disability
 Services in the manner established by the executive commissioner of
 the Health and Human Services Commission under Section 161.083,
 Human Resources Code.
 SECTION 65.05.  Section 251.012, Health and Safety Code, as
 effective September 1, 2011, is amended to read as follows:
 Sec. 251.012.  EXEMPTIONS FROM LICENSING REQUIREMENT. The
 following facilities are not required to be licensed under this
 chapter:
 (1)  a home and community support services agency
 licensed under Chapter 142 with a home dialysis designation;
 (2)  a hospital licensed under Chapter 241 that
 provides dialysis only to individuals receiving:
 (A)  [individuals receiving] inpatient services
 from the hospital; or
 (B)  [individuals receiving] outpatient services
 due to a disaster declared by the governor or a federal disaster
 declared by the president of the United States occurring in this
 state or another state during the term of the disaster declaration;
 [or]
 (3)  a hospital operated by or on behalf of the state as
 part of the managed health care provider network established under
 Chapter 501, Government Code, that provides dialysis only to
 individuals receiving:
 (A)  inpatient services from the hospital; or
 (B)  outpatient services while serving a term of
 confinement in a facility operated by or under contract with the
 Texas Department of Criminal Justice;
 (4)  an end stage renal disease facility operated by or
 on behalf of the state as part of the managed health care provider
 network established under Chapter 501, Government Code, that
 provides dialysis only to individuals receiving those services
 while serving a term of confinement in a facility operated by or
 under contract with the Texas Department of Criminal Justice; or
 (5)  the office of a physician unless the office is used
 primarily as an end stage renal disease facility.
 SECTION 65.06.  Subchapter D, Chapter 161, Human Resources
 Code, is amended by adding Section 161.083 to read as follows:
 Sec. 161.083.  CORRECTIONS MEDICATION AIDES. (a)  The
 executive commissioner shall establish:
 (1)  minimum standards and procedures for the approval
 of corrections medication aide training programs, including
 curricula, developed under Section 501.1485, Government Code;
 (2)  minimum requirements for the issuance, denial,
 renewal, suspension, and revocation of a permit to a corrections
 medication aide, including the payment of an application or renewal
 fee in an amount necessary to cover the costs incurred by the
 department in administering this section; and
 (3)  the acts and practices that are within and outside
 the scope of a permit issued under this section.
 (b)  Not later than the 90th day after receipt of an
 application for approval of a corrections medication aide training
 program developed under Section 501.1485, Government Code, the
 department shall:
 (1)  approve the program, if the program meets the
 minimum standards and procedures established under Subsection
 (a)(1); or
 (2)  provide notice to the Texas Department of Criminal
 Justice that the program is not approved and include in the notice a
 description of the actions that are required for the program to be
 approved.
 (c)  The department shall issue a permit to or renew the
 permit of an applicant who meets the minimum requirements
 established under Subsection (a)(2). The department shall
 coordinate with the Texas Department of Criminal Justice in the
 performance of the department's duties and functions under this
 subsection.
 SECTION 65.07.  (a) The Texas Department of Criminal
 Justice, in cooperation with The University of Texas Medical Branch
 at Galveston, the Texas Tech University Health Sciences Center, or
 a successor correctional managed health care provider, shall
 develop the training program required by Section 501.1485,
 Government Code, as added by this article, and the department shall
 submit an application for approval of that program, as required by
 Subsection (c) of that section, not later than January 1, 2012. If
 after the effective date of this Act and before the date the
 department develops the training program described by this
 subsection The University of Texas Medical Branch at Galveston and
 the Texas Tech University Health Sciences Center are no longer
 represented on the Correctional Managed Health Care Committee, or
 no longer serve as correctional managed health care providers, the
 executive director of the department shall request and receive the
 cooperation of any other state agency determined by the executive
 director to be an appropriate resource in the development of the
 program.
 (b)  The change in law made by this article in amending
 Section 251.012, Health and Safety Code, applies only to dialysis
 services provided on or after the effective date of this Act.
 Dialysis services provided before the effective date of this Act
 are covered by the law in effect immediately before that date, and
 the former law is continued in effect for that purpose.
 (c)  The executive commissioner of the Health and Human
 Services Commission shall establish the minimum standards and
 requirements and the acts and practices allowed or prohibited, as
 required by Section 161.083, Human Resources Code, as added by this
 article, not later than January 1, 2012.
 ARTICLE 66.  GUARDIANSHIP MATTERS AND PROCEEDINGS:  AMENDMENTS TO
 TEXAS PROBATE CODE
 SECTION 66.01.  Section 612, Texas Probate Code, is amended
 to read as follows:
 Sec. 612.  APPLICATION FOR TRANSFER OF GUARDIANSHIP TO
 ANOTHER COUNTY. When a guardian or any other person desires to
 transfer [remove] the transaction of the business of the
 guardianship from one county to another, the person shall file a
 written application in the court in which the guardianship is
 pending stating the reason for the transfer [moving the transaction
 of business].
 SECTION 66.02.  Subsection (a), Section 613, Texas Probate
 Code, is amended to read as follows:
 (a)  On filing an application to transfer [remove] a
 guardianship to another county, the sureties on the bond of the
 guardian shall be cited by personal service to appear and show cause
 why the application should not be granted.
 SECTION 66.03.  Sections 614, 615, 616, 617, and 618, Texas
 Probate Code, are amended to read as follows:
 Sec. 614.  COURT ACTION.  (a)  On hearing an application
 under Section 612 of this code, if good cause is not shown to deny
 the application and it appears that transfer [removal] of the
 guardianship is in the best interests of the ward, the court shall
 enter an order authorizing the transfer [removal] on payment on
 behalf of the estate of all accrued costs.
 (b)  In an order entered under Subsection (a) of this
 section, the court shall require the guardian, not later than the
 20th day after the date the order is entered, to:
 (1)  give a new bond payable to the judge of the court
 to which the guardianship is transferred; or
 (2)  file a rider to an existing bond noting the court
 to which the guardianship is transferred.
 Sec. 615.  TRANSFER OF RECORD. When an order of transfer
 [removal] is made under Section 614 of this code, the clerk shall
 record any unrecorded papers of the guardianship required to be
 recorded.  On payment of the clerk's fee, the clerk shall transmit
 to the county clerk of the county to which the guardianship was
 ordered transferred [removed]:
 (1)  the case file of the guardianship proceedings; and
 (2)  a certified copy of the index of the guardianship
 records.
 Sec. 616.  TRANSFER [REMOVAL] EFFECTIVE. The order
 transferring [removing] a guardianship does not take effect until:
 (1)  the case file and a certified copy of the index
 required by Section 615 of this code are filed in the office of the
 county clerk of the county to which the guardianship was ordered
 transferred [removed]; and
 (2)  a certificate under the clerk's official seal and
 reporting the filing of the case file and a certified copy of the
 index is filed in the court ordering the transfer [removal] by the
 county clerk of the county to which the guardianship was ordered
 transferred [removed].
 Sec. 617.  CONTINUATION OF GUARDIANSHIP. When a
 guardianship is transferred [removed] from one county to another in
 accordance with this subpart, the guardianship proceeds in the
 court to which it was transferred [removed] as if it had been
 originally commenced in that court. It is not necessary to record
 in the receiving court any of the papers in the case that were
 recorded in the court from which the case was transferred
 [removed].
 Sec. 618.  NEW GUARDIAN APPOINTED ON TRANSFER [REMOVAL]. If
 it appears to the court that transfer [removal] of the guardianship
 is in the best interests of the ward, but that because of the
 transfer [removal] it is not in the best interests of the ward [will
 be unduly expensive or unduly inconvenient to the estate] for the
 guardian of the estate to continue to serve in that capacity, the
 court may in its order of transfer [removal] revoke the letters of
 guardianship and appoint a new guardian, and the former guardian
 shall account for and deliver the estate as provided by this chapter
 in a case in which a guardian resigns.
 SECTION 66.04.  Subpart B, Part 2, Chapter XIII, Texas
 Probate Code, is amended by adding Section 619 to read as follows:
 Sec. 619.  REVIEW OF TRANSFERRED GUARDIANSHIP. Not later
 than the 90th day after the date the transfer of the guardianship
 takes effect under Section 616 of this code, the court to which the
 guardianship was transferred shall hold a hearing to consider
 modifying the rights, duties, and powers of the guardian or any
 other provisions of the transferred guardianship.
 SECTION 66.05.  Section 892, Texas Probate Code, is amended
 by amending Subsections (a) and (e) and adding Subsection (f-1) to
 read as follows:
 (a)  A guardian appointed by a foreign court to represent an
 incapacitated person who is residing in this state or intends to
 move to this state may file an application with a court in which the
 ward resides or intends to reside to have the guardianship
 transferred to the court.  The application must have attached a
 certified copy of all papers of the guardianship filed and recorded
 in the foreign court.
 (e)  The [On the court's own motion or on the motion of the
 ward or any interested person, the] court shall hold a hearing to:
 (1)  consider the application for receipt and
 acceptance of a foreign guardianship; and
 (2)  consider modifying the administrative procedures
 or requirements of the proposed transferred guardianship in
 accordance with local and state law.
 (f-1)  At the time of granting an application for receipt and
 acceptance of a foreign guardianship, the court may also modify the
 administrative procedures or requirements of the transferred
 guardianship in accordance with local and state law.
 SECTION 66.06.  Subsection (b), Section 894, Texas Probate
 Code, is amended to read as follows:
 (b)  A court that delays further action in a guardianship
 proceeding under Subsection (a) of this section shall determine
 whether venue of the proceeding is more suitable in that court or in
 the foreign court.  In making that determination, the court may
 consider:
 (1)  the interests of justice;
 (2)  the best interests of the ward or proposed ward;
 [and]
 (3)  the convenience of the parties; and
 (4)  the preference of the ward or proposed ward, if the
 ward or proposed ward is 12 years of age or older.
 SECTION 66.07.  Subpart G, Part 5, Chapter XIII, Texas
 Probate Code, is amended by adding Section 895 to read as follows:
 Sec. 895.  DETERMINATION OF MOST APPROPRIATE FORUM FOR
 CERTAIN GUARDIANSHIP PROCEEDINGS.  (a)  If at any time a court of
 this state determines that it acquired jurisdiction of a proceeding
 for the appointment of a guardian of the person or estate, or both,
 of a ward or proposed ward because of unjustifiable conduct, the
 court may:
 (1)  decline to exercise jurisdiction;
 (2)  exercise jurisdiction for the limited purpose of
 fashioning an appropriate remedy to ensure the health, safety, and
 welfare of the ward or proposed ward or the protection of the ward's
 or proposed ward's property or prevent a repetition of the
 unjustifiable conduct, including staying the proceeding until a
 petition for the appointment of a guardian or issuance of a
 protective order is filed in a court of another state having
 jurisdiction; or
 (3)  continue to exercise jurisdiction after
 considering:
 (A)  the extent to which the ward or proposed ward
 and all persons required to be notified of the proceedings have
 acquiesced in the exercise of the court's jurisdiction;
 (B)  whether the court of this state is a more
 appropriate forum than the court of any other state after
 considering the factors described by Section 894(b) of this code;
 and
 (C)  whether the court of any other state would
 have jurisdiction under the factual circumstances of the matter.
 (b)  If a court of this state determines that it acquired
 jurisdiction of a proceeding for the appointment of a guardian of
 the person or estate, or both, of a ward or proposed ward because a
 party seeking to invoke the court's jurisdiction engaged in
 unjustifiable conduct, the court may assess against that party
 necessary and reasonable expenses, including attorney's fees,
 investigative fees, court costs, communication expenses, witness
 fees and expenses, and travel expenses.  The court may not assess
 fees, costs, or expenses of any kind against this state or a
 governmental subdivision, agency, or instrumentality of this state
 unless authorized by other law.
 SECTION 66.08.  Section 893, Texas Probate Code, is
 repealed.
 SECTION 66.09.  Sections 612, 613, 614, 615, 616, 617, and
 618, Texas Probate Code, as amended by this article, and Section
 619, Texas Probate Code, as added by this article, apply only to an
 application for the transfer of a guardianship to another county
 filed on or after the effective date of this article. An
 application for the transfer of a guardianship to another county
 filed before the effective date of this article is governed by the
 law in effect on the date the application was filed, and the former
 law is continued in effect for that purpose.
 SECTION 66.10.  The changes in law made by this article to
 Sections 892 and 893, Texas Probate Code, apply only to an
 application for receipt and acceptance of a foreign guardianship
 filed on or after the effective date of this article. An
 application for receipt and acceptance of a foreign guardianship
 filed before the effective date of this article is governed by the
 law in effect on the date the application was filed, and the former
 law is continued in effect for that purpose.
 SECTION 66.11.  Section 894, Texas Probate Code, as amended
 by this article, and Section 895, Texas Probate Code, as added by
 this article, apply only to a guardianship proceeding filed on or
 after the effective date of this article. A guardianship
 proceeding filed before the effective date of this article is
 governed by the law in effect on the date the proceeding was filed,
 and the former law is continued in effect for that purpose.
 ARTICLE 66A.  GUARDIANSHIP MATTERS AND PROCEEDINGS:  AMENDMENTS TO
 ESTATES CODE
 SECTION 66A.01.  Subpart B, Part 2, Subtitle Y, Title 3,
 Estates Code, as effective January 1, 2014, is amended by adding
 Section 619 to read as follows:
 Sec. 619.  REVIEW OF TRANSFERRED GUARDIANSHIP. Not later
 than the 90th day after the date the transfer of the guardianship
 takes effect under Section 616, the court to which the guardianship
 was transferred shall hold a hearing to consider modifying the
 rights, duties, and powers of the guardian or any other provisions
 of the transferred guardianship.
 SECTION 66A.02.  Section 1253.051, Estates Code, as
 effective January 1, 2014, is amended to read as follows:
 Sec. 1253.051.  APPLICATION FOR RECEIPT AND ACCEPTANCE OF
 FOREIGN GUARDIANSHIP. A guardian appointed by a foreign court to
 represent an incapacitated person who is residing in this state or
 intends to move to this state may file an application with a court
 in which the ward resides or intends to reside to have the
 guardianship transferred to the court.  The application must have
 attached a certified copy of all papers of the guardianship filed
 and recorded in the foreign court.
 SECTION 66A.03.  Section 1253.053, Estates Code, as
 effective January 1, 2014, is amended by amending Subsection (a)
 and adding Subsection (f) to read as follows:
 (a)  The [On the court's own motion or on the motion of the
 ward or any interested person, the] court shall hold a hearing to:
 (1)  consider an application for receipt and acceptance
 of a foreign guardianship under this subchapter; and
 (2)  consider modifying the administrative procedures
 or requirements of the proposed transferred guardianship in
 accordance with local and state law.
 (f)  At the time of granting an application for receipt and
 acceptance of a foreign guardianship, the court may also modify the
 administrative procedures or requirements of the transferred
 guardianship in accordance with local and state law.
 SECTION 66A.04.  Subsection (b), Section 1253.102, Estates
 Code, as effective January 1, 2014, is amended to read as follows:
 (b)  In making a determination under Subsection (a), the
 court may consider:
 (1)  the interests of justice;
 (2)  the best interests of the ward or proposed ward;
 [and]
 (3)  the convenience of the parties; and
 (4)  the preference of the ward or proposed ward, if the
 ward or proposed ward is 12 years of age or older.
 SECTION 66A.05.  Chapter 1253, Estates Code, as effective
 January 1, 2014, is amended by adding Subchapter D to read as
 follows:
 SUBCHAPTER D.  DETERMINATION OF MOST APPROPRIATE FORUM FOR CERTAIN
 GUARDIANSHIP PROCEEDINGS
 Sec. 1253.151.  DETERMINATION OF ACQUISITION OF
 JURISDICTION IN THIS STATE DUE TO UNJUSTIFIABLE CONDUCT.  If at any
 time a court of this state determines that it acquired jurisdiction
 of a proceeding for the appointment of a guardian of the person or
 estate, or both, of a ward or proposed ward because of unjustifiable
 conduct, the court may:
 (1)  decline to exercise jurisdiction;
 (2)  exercise jurisdiction for the limited purpose of
 fashioning an appropriate remedy to ensure the health, safety, and
 welfare of the ward or proposed ward or the protection of the ward's
 or proposed ward's property or prevent a repetition of the
 unjustifiable conduct, including staying the proceeding until a
 petition for the appointment of a guardian or issuance of a
 protective order is filed in a court of another state having
 jurisdiction; or
 (3)  continue to exercise jurisdiction after
 considering:
 (A)  the extent to which the ward or proposed ward
 and all persons required to be notified of the proceedings have
 acquiesced in the exercise of the court's jurisdiction;
 (B)  whether the court of this state is a more
 appropriate forum than the court of any other state after
 considering the factors described by Section 1253.102(b); and
 (C)  whether the court of any other state would
 have jurisdiction under the factual circumstances of the matter.
 Sec. 1253.152.  ASSESSMENT OF EXPENSES AGAINST PARTY.
 (a)  If a court of this state determines that it acquired
 jurisdiction of a proceeding for the appointment of a guardian of
 the person or estate, or both, of a ward or proposed ward because a
 party seeking to invoke the court's jurisdiction engaged in
 unjustifiable conduct, the court may assess against that party
 necessary and reasonable expenses, including attorney's fees,
 investigative fees, court costs, communication expenses, witness
 fees and expenses, and travel expenses.
 (b)  The court may not assess fees, costs, or expenses of any
 kind against this state or a governmental subdivision, agency, or
 instrumentality of this state unless authorized by other law.
 SECTION 66A.06.  The following are repealed:
 (1)  Section 1253.054, Estates Code, as effective
 January 1, 2014;
 (2)  the changes in law made by Sections 66.05 and 66.06
 of this Act to Sections 892 and 894, Texas Probate Code; and
 (3)  Section 895, Texas Probate Code, as added by
 Section 66.07 of this Act.
 SECTION 66A.07.  This article takes effect January 1, 2014.
 ARTICLE 67.  SUPPORT FOR HABITAT PROTECTION MEASURES
 SECTION 67.01.  Chapter 403, Government Code, is amended by
 adding Subchapter Q to read as follows:
 SUBCHAPTER Q.  SUPPORT FOR HABITAT PROTECTION MEASURES
 Sec. 403.451.  DEFINITIONS.  In this subchapter:
 (1)  "Candidate conservation plan" means a plan to
 implement such actions as necessary for the conservation of one or
 more candidate species or species likely to become a candidate
 species in the near future.
 (2)  "Candidate species" means a species identified by
 the United States Department of the Interior as appropriate for
 listing as threatened or endangered.
 (3)  "Endangered species," "federal permit," "habitat
 conservation plan," and "mitigation fee" have the meanings assigned
 by Section 83.011, Parks and Wildlife Code.
 Sec. 403.452.  COMPTROLLER POWERS AND DUTIES.  (a)  To
 promote compliance with federal law protecting endangered species
 and candidate species in a manner consistent with this state's
 economic development and fiscal stability, the comptroller may:
 (1)  develop or coordinate the development of a habitat
 conservation plan or candidate conservation plan;
 (2)  apply for and hold a federal permit issued in
 connection with a habitat conservation plan or candidate
 conservation plan developed by the comptroller or the development
 of which is coordinated by the comptroller;
 (3)  enter into an agreement for the implementation of
 a candidate conservation plan with the United States Department of
 the Interior or assist another entity in entering into such an
 agreement;
 (4)  establish the habitat protection fund, to be held
 by the comptroller outside the treasury, to be used to support the
 development or coordination of the development of a habitat
 conservation plan or a candidate conservation plan, or to pay the
 costs of monitoring or administering the implementation of such a
 plan;
 (5)  impose or provide for the imposition of a
 mitigation fee in connection with a habitat conservation plan or
 such fees as are necessary or advisable for a candidate
 conservation plan developed by the comptroller or the development
 of which is coordinated by the comptroller; and
 (6)  implement, monitor, or support the implementation
 of a habitat conservation plan or candidate conservation plan
 developed by the comptroller or the development of which is
 coordinated by the comptroller.
 (b)  The comptroller may solicit and accept appropriations,
 fees under this subchapter, gifts, or grants from any public or
 private source, including the federal government, this state, a
 public agency, or a political subdivision of this state, for
 deposit to the credit of the fund established under this section.
 (c)  The legislature finds that expenditures described by
 Subsection (a)(4) serve public purposes, including economic
 development in this state.
 (d)  The comptroller may establish a nonprofit corporation
 or contract with a third party to perform one or more of the
 comptroller's functions under this section.
 Sec. 403.453.  STATE AGENCY POWERS AND DUTIES.  (a)  Upon
 consideration of the factors identified in Subsection (b), the
 comptroller may designate one of the following agencies to
 undertake the functions identified in Section 403.452(a)(1), (2),
 (3), (5), or (6):
 (1)  the Department of Agriculture;
 (2)  the Parks and Wildlife Department;
 (3)  the Texas Department of Transportation;
 (4)  the State Soil and Water Conservation Board; or
 (5)  any agency receiving funds through Article VI
 (Natural Resources) of the 2012-2013 appropriations bill.
 (b)  In designating an agency pursuant to Subsection (a), the
 comptroller shall consider the following factors:
 (1)  the economic sectors impacted by the species of
 interest that will be included in the habitat conservation plan or
 candidate conservation plan;
 (2)  the identified threats to the species of interest;
 and
 (3)  the location of the species of interest.
 (c)  The comptroller may enter into a memorandum of
 understanding or an interagency contract with any of the agencies
 listed in this section to implement this subchapter and to provide
 for the use of the habitat protection fund.
 Sec. 403.454.  CONFIDENTIAL INFORMATION.  Information
 collected under this subchapter by an agency, or an entity acting on
 the agency's behalf, from a private landowner or other participant
 or potential participant in a habitat conservation plan, proposed
 habitat conservation plan, candidate conservation plan, or
 proposed candidate conservation plan is not subject to Chapter 552
 and may not be disclosed to any person, including a state or federal
 agency, if the information relates to the specific location,
 species identification, or quantity of any animal or plant life for
 which a plan is under consideration or development or has been
 established under this subchapter.  The agency may disclose
 information described by this section only to the person who
 provided the information unless the person consents in writing to
 full or specified partial disclosure of the information.
 Sec. 403.455.  RULES.  The comptroller or agencies identified
 in Section 403.453 may adopt rules as necessary for the
 administration of this subchapter.
 ARTICLE 68. LICENSE PLATES ISSUED FOR CERTAIN GOLF CARTS
 SECTION 68.01.  Subsection (d), Section 504.510,
 Transportation Code, as effective September 1, 2011, is amended to
 read as follows:
 (d)  This section applies only to an owner of a golf cart who
 resides[:
 [(1)]  on real property that is owned or under the
 control of the United States Corps of Engineers and is required by
 that agency to register the owner's golf cart under this chapter[;
 and
 [(2)     in a county that borders another state and has a
 population of more than 120,750 but less than 121,000].
 ARTICLE 69. CERTAIN COURT COSTS ASSOCIATED WITH THE OFFENSE OF
 FAILING TO SECURE A CHILD PASSENGER IN A MOTOR VEHICLE
 SECTION 69.01.  The following laws are repealed:
 (1)  Subsection (b-1), Section 545.412, Transportation
 Code;
 (2)  Section 102.104, Government Code; and
 (3)  Section 102.122, Government Code.
 SECTION 69.02.  The change in law made by this article
 applies only to an offense committed on or after the effective date
 of this Act. An offense committed before the effective date of this
 Act is governed by the law in effect when the offense was committed,
 and the former law is continued in effect for that purpose. For
 purposes of this section, an offense was committed before the
 effective date of this Act if any element of the offense was
 committed before that date.
 ARTICLE 70. JUVENILE JUSTICE ALTERNATIVE
 EDUCATION PROGRAMS
 SECTION 70.01.  Section 37.011, Education Code, is amended
 by adding Subsections (a-3), (a-4), and (a-5) to read as follows:
 (a-3)  For purposes of this section and Section 37.010(a), a
 county with a population greater than 125,000 is considered to be a
 county with a population of 125,000 or less if the county:
 (1)  has a population of more than 200,000 and less than
 220,000;
 (2)  has five or more school districts located wholly
 within the county's boundaries; and
 (3)  has located in the county a juvenile justice
 alternative education program that, on May 1, 2011, served fewer
 than 15 students.
 (a-4)  A school district located in a county considered to be
 a county with a population of 125,000 or less under Subsection (a-3)
 shall provide educational services to a student who is expelled
 from school under this chapter.  The district is entitled to count
 the student in the district's average daily attendance for purposes
 of receipt of state funds under the Foundation School Program.  An
 educational placement under this section may include:
 (1)  the district's disciplinary alternative education
 program; or
 (2)  a contracted placement with:
 (A)  another school district;
 (B)  an open-enrollment charter school;
 (C)  an institution of higher education;
 (D)  an adult literacy council; or
 (E)  a community organization that can provide an
 educational program that allows the student to complete the credits
 required for high school graduation.
 (a-5)  For purposes of Subsection (a-4), an educational
 placement other than a school district's disciplinary alternative
 education program is subject to the educational and certification
 requirements applicable to an open-enrollment charter school under
 Subchapter D, Chapter 12.
 ARTICLE 71.  CHRONIC HEALTH CONDITIONS SERVICES MEDICAID WAIVER
 PROGRAM
 SECTION 71.01.  Subchapter B, Chapter 531, Government Code,
 is amended by adding Section 531.0226 to read as follows:
 Sec. 531.0226.  CHRONIC HEALTH CONDITIONS SERVICES MEDICAID
 WAIVER PROGRAM. (a)  If feasible and cost-effective, the
 commission may apply for a waiver from the federal Centers for
 Medicare and Medicaid Services or another appropriate federal
 agency to more efficiently leverage the use of state and local funds
 in order to maximize the receipt of federal Medicaid matching funds
 by providing benefits under the Medicaid program to individuals
 who:
 (1)  meet established income and other eligibility
 criteria; and
 (2)  are eligible to receive services through the
 county for chronic health conditions.
 (b)  In establishing the waiver program under this section,
 the commission shall:
 (1)  ensure that the state is a prudent purchaser of the
 health care services that are needed for the individuals described
 by Subsection (a);
 (2)  solicit broad-based input from interested
 persons;
 (3)  ensure that the benefits received by an individual
 through the county are not reduced once the individual is enrolled
 in the waiver program; and
 (4)  employ the use of intergovernmental transfers and
 other procedures to maximize the receipt of federal Medicaid
 matching funds.
 ARTICLE 72.  DRIVER'S LICENSES AND PERSONAL IDENTIFICATION
 CERTIFICATES
 SECTION 72.01.  Subchapter A, Chapter 521, Transportation
 Code, is amended by adding Section 521.007 to read as follows:
 Sec. 521.007.  TEMPORARY VISITOR STATIONS. (a)  The
 department shall designate as temporary visitor stations certain
 driver's license offices.
 (b)  A driver's license office designated as a temporary
 visitor station under this section must have at least two staff
 members who have completed specialized training on the temporary
 visitor issuance guide published by the department.
 (c)  A driver's license office designated as a temporary
 visitor station shall provide information and assistance to other
 driver's license offices in the state.
 SECTION 72.02.  Subsection (b), Section 521.041,
 Transportation Code, is amended to read as follows:
 (b)  The department shall maintain suitable indexes, in
 alphabetical or numerical order, that contain:
 (1)  each denied application and the reasons for the
 denial;
 (2)  each application that is granted; [and]
 (3)  the name of each license holder whose license has
 been suspended, canceled, or revoked and the reasons for that
 action; and
 (4)  the citizenship status of each holder of a license
 or personal identification certificate.
 SECTION 72.03.  Section 521.101, Transportation Code, is
 amended by adding Subsections (d-1), (f-2), (f-3), (f-4), and (k)
 and amending Subsection (f) to read as follows:
 (d-1)  Unless the information has been previously provided
 to the department, the department shall require each applicant for
 an original, renewal, or duplicate personal identification
 certificate to furnish to the department:
 (1)  proof of the applicant's United States
 citizenship; or
 (2)  documentation described by Subsection (f-2).
 (f)  A personal identification certificate:
 (1)  for an applicant who is a citizen, national, or
 legal permanent resident of the United States or a refugee or asylee
 lawfully admitted into the United States:
 (A)  expires on a date specified by the department
 if the applicant is younger than 60 years of age; or
 (B)  does not expire if the applicant is 60 years
 of age or older; or
 (2)  for an applicant not described by Subdivision (1),
 expires on:
 (A)  the earlier of:
 (i)  a date specified by the department; or
 (ii)  the expiration date of the applicant's
 authorized stay in the United States; or
 (B)  the first anniversary of the date of
 issuance, if there is no definite expiration date for the
 applicant's authorized stay in the United States[, except that a
 certificate issued to a person 60 years of age or older does not
 expire].
 (f-2)  An applicant who is not a citizen of the United States
 must present to the department documentation issued by the
 appropriate United States agency that authorizes the applicant to
 be in the United States.
 (f-3)  The department may not issue a personal
 identification certificate to an applicant who fails or refuses to
 comply with Subsection (f-2).
 (f-4)  The department may not deny a personal identification
 certificate to an applicant who complies with Subsection (f-2)
 based on the duration of the person's authorized stay in the United
 States, as indicated by the documentation presented under
 Subsection (f-2).
 (k)  Except as provided by this section, a personal
 identification certificate issued under this chapter:
 (1)  must:
 (A)  be in the same format;
 (B)  have the same appearance and orientation; and
 (C)  contain the same type of information; and
 (2)  may not include any information that this chapter
 does not reference or require.
 SECTION 72.04.  Section 521.103, Transportation Code, is
 amended by adding Subsection (c) to read as follows:
 (c)  Sections 521.101(f-2), (f-3), and (f-4) apply to a
 personal identification certificate for which application is made
 under this section.
 SECTION 72.05.  Section 521.121, Transportation Code, is
 amended by adding Subsection (e) to read as follows:
 (e)  Except as provided by this section, a driver's license
 issued under this chapter:
 (1)  must:
 (A)  be in the same format;
 (B)  have the same appearance and orientation; and
 (C)  contain the same type of information; and
 (2)  may not include any information that this chapter
 does not reference or require.
 SECTION 72.06.  Subsections (a) and (e), Section 521.142,
 Transportation Code, are amended to read as follows:
 (a)  An application for an original license must state the
 applicant's full name and place and date of birth. This information
 must be verified by presentation of proof of identity satisfactory
 to the department. An applicant who is not a citizen of the United
 States must present to the department documentation issued by the
 appropriate United States agency that authorizes the applicant to
 be in the United States before the applicant may be issued a
 driver's license. The department must accept as satisfactory proof
 of identity under this subsection an offender identification card
 or similar form of identification issued to an inmate by the Texas
 Department of Criminal Justice if the applicant also provides
 supplemental verifiable records or documents that aid in
 establishing identity.
 (e)  The application must include any other information the
 department requires to determine the applicant's identity,
 residency, competency, and eligibility as required by the
 department or state law.
 SECTION 72.07.  Section 521.1425, Transportation Code, is
 amended by amending Subsection (a) and adding Subsections (c) and
 (d) to read as follows:
 (a)  Except as provided by Subsections [Subsection] (b) and
 (c), the department may require each applicant for an original,
 renewal, or duplicate driver's license to furnish to the department
 the information required by Section 521.142.
 (c)  Unless the information has been previously provided to
 the department, the department shall require each applicant for an
 original, renewal, or duplicate driver's license to furnish to the
 department:
 (1)  proof of the applicant's United States
 citizenship; or
 (2)  documentation described by Section 521.142(a).
 (d)  The department may not deny a driver's license to an
 applicant who provides documentation described by Section
 521.142(a) based on the duration of the person's authorized stay in
 the United States, as indicated by the documentation presented
 under Section 521.142(a).
 SECTION 72.08.  Section 521.271, Transportation Code, is
 amended by amending Subsections (a) and (b) and adding Subsections
 (a-2), (a-3), and (a-4) to read as follows:
 (a)  Each original driver's license, [and] provisional
 license, instruction permit, or occupational driver's license
 issued to an applicant who is a citizen, national, or legal
 permanent resident of the United States or a refugee or asylee
 lawfully admitted into the United States expires as follows:
 (1)  except as provided by Section 521.2711, a driver's
 license expires on the first birthday of the license holder
 occurring after the sixth anniversary of the date of the
 application;
 (2)  a provisional license expires on  the 18th
 birthday of the license holder;
 (3)  an instruction permit expires on the 18th birthday
 of the license holder;
 (4)  an occupational driver's license expires on the
 first anniversary of the court order granting the license; and
 (5)  unless an earlier date is otherwise provided, a
 driver's license issued to a person whose residence or domicile is a
 correctional facility or a parole facility expires on the first
 birthday of the license holder occurring after the first
 anniversary of the date of issuance.
 (a-2)  Each original driver's license issued to an applicant
 who is not a citizen, national, or legal permanent resident of the
 United States or a refugee or asylee lawfully admitted into the
 United States expires on:
 (1)  the earlier of:
 (A)  the first birthday of the license holder
 occurring after the sixth anniversary of the date of the
 application; or
 (B)  the expiration date of the license holder's
 lawful presence in the United States as determined by the
 appropriate United States agency in compliance with federal law; or
 (2)  the first anniversary of the date of issuance, if
 there is no definite expiration date for the applicant's authorized
 stay in the United States.
 (a-3)  Each original provisional license or instruction
 permit issued to an applicant who is not a citizen, national, or
 legal permanent resident of the United States or a refugee or asylee
 lawfully admitted into the United States expires on the earliest
 of:
 (1)  the 18th birthday of the license holder;
 (2)  the first birthday of the license holder occurring
 after the date of the application; or
 (3)  the expiration of the license holder's lawful
 presence in the United States as determined by the United States
 agency responsible for citizenship and immigration in compliance
 with federal law.
 (a-4)  Each original occupational driver's license issued to
 an applicant who is not a citizen, national, or legal permanent
 resident of the United States or a refugee or asylee lawfully
 admitted into the United States expires on the earlier of:
 (1)  the first anniversary of the date of issuance; or
 (2)  the expiration of the license holder's lawful
 presence in the United States as determined by the appropriate
 United States agency in compliance with federal law.
 (b)  Except as provided by Section 521.2711, a driver's
 license that is renewed expires on the earlier of:
 (1)  the sixth anniversary of the expiration date
 before renewal if the applicant is a citizen, national, or legal
 permanent resident of the United States or a refugee or asylee
 lawfully admitted into the United States;
 (1-a)  for an applicant not described by Subdivision
 (1):
 (A)  the earlier of:
 (i)  the sixth anniversary of the expiration
 date before renewal; or
 (ii)  the expiration date of the applicant's
 authorized stay in the United States; or
 (B)  the first anniversary of the date of
 issuance, if there is no definite expiration date for the
 applicant's authorized stay in the United States; or
 (2)  for a renewal driver's license issued to a person
 whose residence or domicile is a correctional facility or a parole
 facility, the first birthday of the license holder occurring after
 the first anniversary of the date of issuance unless an earlier date
 is otherwise provided.
 SECTION 72.09.  Section 521.2711, Transportation Code, is
 amended by adding Subsection (c) to read as follows:
 (c)  Notwithstanding Subsections (a) and (b), an original or
 renewal driver's license issued to an applicant who is 85 years of
 age or older and not a citizen, national, or legal permanent
 resident of the United States or a refugee or asylee lawfully
 admitted into the United States expires on:
 (1)  the earlier of:
 (A)  the second anniversary of the expiration date
 before renewal; or
 (B)  the expiration date of the applicant's
 authorized stay in the United States; or
 (2)  the first anniversary of the date of issuance if
 there is no definite expiration date for the applicant's authorized
 stay in the United States.
 SECTION 72.10.  Section 521.272, Transportation Code, is
 amended by amending Subsection (c) and adding Subsection (d) to
 read as follows:
 (c)  Notwithstanding Sections [Section] 521.271 and
 521.2711, a driver's license issued under this section, including a
 renewal, duplicate, or corrected license, expires:
 (1)  if the license holder is a citizen, national, or
 legal permanent resident of the United States or a refugee or asylee
 lawfully admitted into the United States, on the first birthday of
 the license holder occurring after the date of application, except
 that the initial license issued under this section expires on the
 second birthday of the license holder occurring after the date of
 application; or
 (2)  if the applicant is not described by Subdivision
 (1), on the earlier of:
 (A)  the expiration date of the applicant's
 authorized stay in the United States; or
 (B)  the first birthday of the license holder
 occurring after the date of application, except that the initial
 license issued under this section expires on the second birthday of
 the license holder occurring after the date of application.
 (d)  Subsection (c) [This subsection] does not apply to:
 (1)  a provisional license;
 (2)  an instruction permit issued under Section
 521.222; or
 (3)  a hardship license issued under Section 521.223.
 SECTION 72.11.  Section 521.421, Transportation Code, is
 amended by adding Subsection (a-3) to read as follows:
 (a-3)  Except as provided by Subsections (a-1) and (a-2), the
 fee for a driver's license or personal identification certificate
 that is issued to a person who is not a citizen, national, or legal
 permanent resident of the United States or a refugee or asylee
 lawfully admitted into the United States and that is valid for not
 more than one year is $24.
 SECTION 72.12.  Section 522.005, Transportation Code, is
 amended to read as follows:
 Sec. 522.005.  RULEMAKING AUTHORITY. The department may
 adopt rules necessary to carry out this chapter and the federal act
 and to maintain compliance with 49 C.F.R. Parts 383 and 384.
 SECTION 72.13.  Section 522.030, Transportation Code, is
 amended to read as follows:
 Sec. 522.030.  CONTENT OF LICENSE. (a)  A commercial
 driver's license must:
 (1)  be marked "Commercial Driver License" or "CDL";
 (2)  be, to the extent practicable, tamper-proof; and
 (3)  include:
 (A)  the name and mailing address of the person to
 whom it is issued;
 (B)  the person's color photograph;
 (C)  a physical description of the person,
 including sex, height, and eye color;
 (D)  the person's date of birth;
 (E)  a number or identifier the department
 considers appropriate;
 (F)  the person's signature;
 (G)  each class of commercial motor vehicle that
 the person is authorized to drive, with any endorsements or
 restrictions;
 (H)  the name of this state; and
 (I)  the dates between which the license is valid.
 (b)  Except as provided by this section, a commercial
 driver's license issued under this chapter:
 (1)  must:
 (A)  be in the same format;
 (B)  have the same appearance and orientation; and
 (C)  contain the same type of information; and
 (2)  may not include any information that this chapter
 does not reference or require.
 (c)  To the extent of a conflict or inconsistency between
 this section and Section 522.013 or 522.051, Section 522.013 or
 522.051 controls.
 SECTION 72.14.  Subsection (b), Section 522.033,
 Transportation Code, is amended to read as follows:
 (b)  Notwithstanding Section 522.051, a commercial driver's
 license or commercial driver learner's permit issued under this
 section, including a renewal, duplicate, or corrected license,
 expires:
 (1)  if the license or permit holder is a citizen,
 national, or legal permanent resident of the United States or a
 refugee or asylee lawfully admitted into the United States, on the
 first birthday of the license holder occurring after the date of
 application, except that the initial license issued under this
 section expires on the second birthday of the license holder
 occurring after the date of application; or
 (2)  if the applicant is not described by Subdivision
 (1), on the earlier of:
 (A)  the expiration date of the applicant's
 authorized stay in the United States; or
 (B)  the first birthday of the license holder
 occurring after the date of application, except that the initial
 license issued under this section expires on the second birthday of
 the license holder occurring after the date of application.
 SECTION 72.15.  Section 522.052, Transportation Code, is
 amended by adding Subsections (i) and (j) to read as follows:
 (i)  Unless the information has been previously provided to
 the department, the department shall require each applicant for a
 renewal or duplicate commercial driver's license to furnish to the
 department:
 (1)  proof of the applicant's United States
 citizenship; or
 (2)  documentation described by Section 521.142(a).
 (j)  The department may not deny a renewal or duplicate
 commercial driver's license to an applicant who provides
 documentation described by Section 521.142(a) based on the duration
 of the person's authorized stay in the United States, as indicated
 by the documentation presented under Section 521.142(a).
 SECTION 72.16.  Not later than January 1, 2013, the
 Department of Public Safety of the State of Texas shall submit to
 the legislature a report evaluating the effectiveness of the
 temporary visitor stations established under Section 521.007,
 Transportation Code, as added by this article.
 SECTION 72.17.  The changes in law made by this article to
 Chapters 521 and 522, Transportation Code, apply only to a driver's
 license, personal identification certificate, commercial driver's
 license, or commercial driver learner's permit issued, reissued,
 reinstated, or renewed on or after the effective date of this Act.
 A driver's license, personal identification certificate,
 commercial driver's license, or commercial driver learner's permit
 issued, reissued, reinstated, or renewed before the effective date
 of this Act is governed by the law in effect when the license,
 certificate, or permit was issued, reissued, reinstated, or
 renewed, and the former law is continued in effect for that purpose.
 ARTICLE 73.  FEES FOR 9-1-1 SERVICES
 SECTION 73.01.  Subdivision (4), Section 771.001, Health and
 Safety Code, is repealed.
 SECTION 73.02.  Section 771.001, Health and Safety Code, is
 amended by amending Subdivision (13) and adding Subdivision (14) to
 read as follows:
 (13)  "Wireless telecommunications connection" means
 any voice-capable wireless communication mobile station that is
 provided to a customer by a wireless [assigned a number containing
 an area code assigned to Texas by the North American Numbering Plan
 Administrator that connects a wireless service provider to the
 local exchange] service provider.
 (14)  "Service provider" means a local exchange service
 provider, a wireless service provider, and any other provider of
 local exchange access lines or equivalent local exchange access
 lines.
 SECTION 73.03.  Subsection (e), Section 771.071, Health and
 Safety Code, is amended to read as follows:
 (e)  A [local exchange] service provider shall collect the
 fees imposed on its customers under this section.  Not later than
 the 30th day after the last day of the month in which the fees are
 collected, the [local exchange] service provider shall deliver the
 fees to the comptroller.  The comptroller shall deposit money from
 the fees to the credit of the 9-1-1 services fee account in the
 general revenue fund.  The comptroller may establish alternative
 dates for payment of fees under this section, provided that the
 required payment date be no earlier than the 30th day after the last
 day of the reporting period in which the fees are collected.
 SECTION 73.04.  Subsections (a) through (e), Section
 771.072, Health and Safety Code, are amended to read as follows:
 (a)  In addition to the fees [fee] imposed under Sections
 [Section] 771.071 and 771.0711, the commission shall impose a 9-1-1
 equalization surcharge on each local exchange access line or
 equivalent local exchange access line and each wireless
 telecommunications connection. The surcharge may not be imposed
 on:
 (1)  a line to coin-operated public telephone equipment
 or to public telephone equipment operated by coin or by card reader;
 (2)  any line that the commission excluded from the
 definition of a local exchange access line or an equivalent local
 exchange access line under Section 771.063; or
 (3)  any wireless telecommunications connection that
 constitutes prepaid wireless telecommunications service subject to
 Section 771.0712 [customer receiving intrastate long-distance
 service, including customers in an area served by an emergency
 communication district, even if the district is not participating
 in the regional plan].
 (b)  The surcharge must be a fixed amount, not to exceed 10
 cents per month for each local exchange access line, equivalent
 local exchange access line, or wireless telecommunications
 connection [amount of the surcharge may not exceed one and
 three-tenths of one percent of the charges for intrastate
 long-distance service, as defined by the commission].
 (c)  Except as provided by Section 771.073(f), each [an
 intrastate long-distance] service provider shall collect the
 surcharge imposed on its customers under this section and shall
 deliver the surcharges to the comptroller not later than the date
 specified by the comptroller, provided that the required payment
 date be no earlier than the 30th day after the last day of the
 reporting period in which the surcharge is collected. If the
 comptroller does not specify a date, the provider shall deliver the
 surcharges to the comptroller not later than the 30th day after the
 last day of the month in which the surcharges are collected.
 (d)  From the revenue received from the surcharge imposed
 under this section, not more than 40 percent of the amount derived
 from the application of the surcharge [at a rate of not more than .5
 percent] shall be allocated to regional planning commissions or
 other public agencies designated by the regional planning
 commissions for use in carrying out the regional plans provided for
 by this chapter. The allocations to the regional planning
 commissions are not required to be equal, but should be made to
 carry out the policy of this chapter to implement 9-1-1 service
 statewide. Money collected under this section may be allocated to
 an emergency communication district regardless of whether the
 district is participating in the applicable regional plan.
 (e)  From the revenue received from the surcharge imposed by
 this section, not more than 60 percent of the amount derived from
 the application of the surcharge [at a rate of not more than .8
 percent] shall be periodically allocated to fund grants awarded
 under Section 777.009 and other activities related to the poison
 control centers as required by Chapter 777.
 SECTION 73.05.  Section 771.0725, Health and Safety Code, is
 amended by adding Subsection (e) to read as follows:
 (e)  The commission shall establish the rate for the
 equalization surcharge imposed under Section 771.072 for each state
 fiscal biennium in an amount that ensures the aggregate of the
 anticipated surcharges collected from all customers for the
 following 12 months does not exceed the aggregate of the surcharges
 collected from all customers during the preceding 12 months. Any
 change in the equalization surcharge rate may not become effective
 before the 90th day after the date notice of the change is provided
 by the commission to the service providers.
 SECTION 73.06.  Subsection (a), Section 771.073, Health and
 Safety Code, is amended to read as follows:
 (a)  A customer on which a fee or surcharge is imposed under
 this subchapter is liable for the fee or surcharge in the same
 manner as the customer is liable for the charges for services
 provided by the service provider. The service provider shall
 collect the fees and surcharges in the same manner it collects those
 charges for service, except that the service provider is not
 required to take legal action to enforce the collection of the fees
 or surcharges. Other than the fee imposed under Section 771.0712, a
 [A] fee or surcharge imposed under this subchapter must be either
 stated separately on the customer's bill or combined in an
 appropriately labeled single line item on the customer's bill with
 all other fees and surcharges that are imposed under this
 subchapter or that are imposed for 9-1-1 emergency service by a
 political subdivision. A service provider that combines the fees
 and surcharges into a single line item for billing purposes must
 maintain books and records reflecting the collection of each
 separate fee and surcharge.
 SECTION 73.07.  Section 771.0735, Health and Safety Code, is
 amended to read as follows:
 Sec. 771.0735.  SOURCING OF CHARGES FOR MOBILE
 TELECOMMUNICATIONS SERVICES. The federal Mobile
 Telecommunications Sourcing Act (4 U.S.C. Sections 116-126)
 governs the sourcing of charges for mobile telecommunications
 services. In accordance with that Act:
 (1)  mobile telecommunications services provided in a
 taxing jurisdiction to a customer, the charges for which are billed
 by or for the customer's home service provider, shall be deemed to
 be provided by the customer's home service provider;
 (2)  all charges for mobile telecommunications
 services that are deemed to be provided by the customer's home
 service provider in accordance with the Act are authorized to be
 subjected to tax, charge, or fee by the taxing jurisdictions whose
 territorial limits encompass the customer's place of primary use,
 regardless of where the mobile telecommunications services
 originate, terminate, or pass through, and no other taxing
 jurisdiction may impose taxes, charges, or fees on charges for such
 mobile telecommunications services; and
 (3)  the fee and the surcharge imposed on wireless
 telecommunications bills shall be administered in accordance with
 Section 151.061, Tax Code.
 SECTION 73.08.  The changes in law made by this article apply
 only to a fee or surcharge imposed on or after the later of the
 effective date of this article or September 1, 2011.  A fee or
 surcharge imposed before that date is governed by the law as it
 existed immediately before that date, and that law is continued in
 effect for that purpose.
 SECTION 73.09.  This article takes effect immediately if
 this Act receives a vote of two-thirds of all the members elected to
 each house, as provided by Section 39, Article III, Texas
 Constitution.  If this Act does not receive the vote necessary for
 this article to have immediate effect, this article takes effect on
 the 91st day after the last day of the legislative session.
 ARTICLE 74. OPERATION AND ADMINISTRATION OF THE TEXAS DEPARTMENT
 OF HOUSING AND COMMUNITY AFFAIRS
 SECTION 74.01.  Section 2306.022, Government Code, is
 amended to read as follows:
 Sec. 2306.022.  APPLICATION OF SUNSET ACT. The Texas
 Department of Housing and Community Affairs is subject to Chapter
 325 (Texas Sunset Act). Unless continued in existence as provided
 by that chapter, the department is abolished and this chapter
 expires September 1, 2013 [2011].
 SECTION 74.02.  Subsections (d-1) and (d-2), Section
 2306.111, Government Code, are amended to read as follows:
 (d-1)  In allocating low income housing tax credit
 commitments under Subchapter DD, the department shall, before
 applying the regional allocation formula prescribed by Section
 2306.1115, set aside for at-risk developments, as defined by
 Section 2306.6702, not less than the minimum amount of housing tax
 credits required under Section 2306.6714. Funds or credits are not
 required to be allocated according to the regional allocation
 formula under Subsection (d) if:
 (1)  the funds or credits are reserved for
 contract-for-deed conversions or for set-asides mandated by state
 or federal law and each contract-for-deed allocation or set-aside
 allocation equals not more than 10 percent of the total allocation
 of funds or credits for the applicable program;
 (2)  the funds or credits are allocated by the
 department primarily to serve persons with disabilities; or
 (3)  the funds are housing trust funds administered by
 the department under Sections 2306.201-2306.206 that are not
 otherwise required to be set aside under state or federal law and do
 not exceed $3 million for each programmed activity during each
 application cycle.
 (d-2)  In allocating low income housing tax credit
 commitments under Subchapter DD, the department shall allocate five
 percent of the housing tax credits in each application cycle to
 developments that receive federal financial assistance through the
 Texas Rural Development Office of the United States Department of
 Agriculture.  Any funds allocated to developments under this
 subsection that involve rehabilitation must come from the funds set
 aside for at-risk developments under Section 2306.6714 and any
 additional funds set aside for those developments under Subsection
 (d-1).  This subsection does not apply to a development financed
 wholly or partly under Section 538 of the Housing Act of 1949 (42
 U.S.C. Section 1490p-2) unless the development involves the
 rehabilitation of an existing property that has received and will
 continue to receive as part of the financing of the development
 federal financial assistance provided under Section 515 of the
 Housing Act of 1949 (42 U.S.C. Section 1485).
 SECTION 74.03.  Section 2306.67022, Government Code, is
 amended to read as follows:
 Sec. 2306.67022.  QUALIFIED ALLOCATION PLAN; MANUAL. At
 least biennially, the [The] board [annually] shall adopt a
 qualified allocation plan and a corresponding manual to provide
 information regarding the administration of and eligibility for the
 low income housing tax credit program.  The board may adopt the plan
 and manual annually, as considered appropriate by the board.
 SECTION 74.04.  Subsections (b) and (f), Section 2306.6711,
 Government Code, are amended to read as follows:
 (b)  Not later than the deadline specified in the qualified
 allocation plan, the board shall issue commitments for available
 housing tax credits based on the application evaluation process
 provided by Section 2306.6710. The board may not allocate to an
 applicant housing tax credits in any unnecessary amount, as
 determined by the department's underwriting policy and by federal
 law, and in any event may not allocate to the applicant housing tax
 credits in an amount greater than $3 [$2] million in a single
 application round or to an individual development more than $2
 million in a single application round.
 (f)  The board may allocate housing tax credits to more than
 one development in a single community, as defined by department
 rule, in the same calendar year only if the developments are or will
 be located more than two [one] linear miles [mile] apart. This
 subsection applies only to communities contained within counties
 with populations exceeding one million.
 SECTION 74.05.  Subsections (a), (b), and (c), Section
 2306.6724, Government Code, are amended to read as follows:
 (a)  Regardless of whether the board will adopt the plan
 annually or biennially [Not later than September 30 of each year],
 the department, not later than September 30 of the year preceding
 the year in which the new plan is proposed for use, shall prepare
 and submit to the board for adoption any proposed [the] qualified
 allocation plan required by federal law for use by the department in
 setting criteria and priorities for the allocation of tax credits
 under the low income housing tax credit program.
 (b)  Regardless of whether the board has adopted the plan
 annually or biennially, the [The] board shall [adopt and] submit to
 the governor any proposed [the] qualified allocation plan not later
 than November 15 of the year preceding the year in which the new
 plan is proposed for use.
 [(c)]  The governor shall approve, reject, or modify and
 approve the proposed qualified allocation plan not later than
 December 1.
 SECTION 74.06.  Section 1201.104, Occupations Code, is
 amended by amending Subsections (a), (g), and (h) and adding
 Subsections (a-1), (a-2), (a-3), and (a-4) to read as follows:
 (a)  Except as provided by Subsection (g) [(e)], as a
 requirement for a manufacturer's, retailer's, broker's,
 installer's, salvage rebuilder's, or salesperson's license, a
 person who was not licensed or registered with the department or a
 predecessor agency on September 1, 1987, must, not more than 12
 months before applying for the person's first license under this
 chapter, attend and successfully complete eight [20] hours of
 instruction in the law, including instruction in consumer
 protection regulations.
 (a-1)  If the applicant is not an individual, the applicant
 must have at least one related person who satisfies the
 requirements of Subsection (a) [meets this requirement].  If that
 applicant is applying for a retailer's license, the related person
 must be a management official who satisfies the requirements of
 Subsections (a) and (a-2) at each retail location operated by the
 applicant.
 (a-2)  An applicant for a retailer's license must complete
 four hours of specialized instruction relevant to the sale,
 exchange, and lease-purchase of manufactured homes. The
 instruction under this subsection is in addition to the instruction
 required under Subsection (a).
 (a-3)  An applicant for an installer's license must complete
 four hours of specialized instruction relevant to the installation
 of manufactured homes. The instruction under this subsection is in
 addition to the instruction required under Subsection (a).
 (a-4)  An applicant for a joint installer-retailer license
 must comply with Subsections (a-2) and (a-3), for a total of eight
 hours of specialized instruction.  The instruction under this
 subsection is in addition to the instruction required under
 Subsection (a).
 (g)  Subsections [Subsection] (a), (a-2), (a-3), and (a-4)
 do [does] not apply to a license holder who applies:
 (1)  for a license for an additional business location;
 or
 (2)  to renew or reinstate a license.
 (h)  An examination must be a requirement of successful
 completion of any initial required course of instruction under this
 section.  The period needed to complete an examination under this
 subsection may not be used to satisfy the minimum education
 requirements under Subsection (a), (a-2), (a-3), or (a-4).
 SECTION 74.07.  Section 1201.303, Occupations Code, is
 amended by amending Subsection (b) and adding Subsections (c)
 through (g) to read as follows:
 (b)  The department shall establish an installation
 inspection program in which at least 75 [25] percent of installed
 manufactured homes are inspected on a sample basis for compliance
 with the standards and rules adopted and orders issued by the
 director. The program must place priority on inspecting
 multisection homes and homes installed in Wind Zone II counties.
 (c)  On or after January 1, 2015, the director by rule shall
 establish a third-party installation inspection program to
 supplement the inspections of the department if the department is
 not able to inspect at least 75 percent of manufactured homes
 installed in each of the calendar years 2012, 2013, and 2014.
 (d)  The third-party installation inspection program
 established under Subsection (c) must:
 (1)  establish qualifications for third-party
 inspectors to participate in the program;
 (2)  require third-party inspectors to register with
 the department before participating in the program;
 (3)  establish a biennial registration and renewal
 process for third-party inspectors;
 (4)  require the list of registered third-party
 inspectors to be posted on the department's Internet website;
 (5)  establish clear processes governing inspection
 fees and payment to third-party inspectors;
 (6)  establish the maximum inspection fee that may be
 charged to a consumer;
 (7)  require a third-party inspection to occur not
 later than the 14th day after the date of installation of the
 manufactured home;
 (8)  establish a process for a retailer or broker to
 contract, as part of the sale of a new or used manufactured home,
 with an independent third-party inspector to inspect the
 installation of the home;
 (9)  establish a process for an installer to schedule
 an inspection for each consumer-to-consumer sale where a home is
 reinstalled;
 (10)  if a violation is noted in an inspection, require
 the installer to:
 (A)  remedy the violations noted;
 (B)  have the home reinspected at the installer's
 expense; and
 (C)  certify to the department that all violations
 have been corrected;
 (11)  require an inspector to report inspection results
 to the retailer, installer, and the department;
 (12)  require all persons receiving inspection results
 under Subdivision (11) to maintain a record of the results at least
 until the end of the installation warranty period;
 (13)  authorize the department to charge a filing fee
 and an inspection fee for third-party inspections;
 (14)  authorize the department to continue to conduct
 no-charge complaint inspections under Section 1201.355 on request,
 but only after an initial installation inspection is completed;
 (15)  establish procedures to revoke the registration
 of inspectors who fail to comply with rules adopted under this
 section; and
 (16)  require the department to notify the relevant
 state agency if the department revokes an inspector registration
 based on a violation that is relevant to a license issued to the
 applicable person by another state agency.
 (e)  Not later than January 1, 2015, the department shall
 submit to the Legislative Budget Board, the Governor's Office of
 Budget, Planning, and Policy, and the standing committee of each
 house of the legislature having primary jurisdiction over housing a
 report concerning whether the department inspected at least 75
 percent of manufactured homes installed in each of the calendar
 years 2012, 2013, and 2014.
 (f)  Not later than December 1, 2015, the director shall
 adopt rules as necessary to implement Subsections (c) and (d) if the
 department did not inspect at least 75 percent of manufactured
 homes installed in each of the calendar years 2012, 2013, and 2014.
 Not later than January 1, 2016, the department shall begin
 registering third-party inspectors under Subsections (c) and (d) if
 the department inspections did not occur as described by this
 subsection.
 (g)  If the department is not required to establish a
 third-party installation inspection program as provided by
 Subsection (c), Subsections (c), (d), (e), and (f) and this
 subsection expire September 1, 2016.
 SECTION 74.08.  The changes in law made by this article to
 Section 2306.6711, Government Code, apply only to an application
 for low income housing tax credits that is submitted to the Texas
 Department of Housing and Community Affairs during an application
 cycle that begins on or after the effective date of this Act. An
 application that is submitted during an application cycle that
 began before the effective date of this Act is governed by the law
 in effect at the time the application cycle began, and the former
 law is continued in effect for that purpose.
 SECTION 74.09.  The change in law made by this article in
 amending Section 1201.104, Occupations Code, applies only to an
 application for a license filed with the executive director of the
 manufactured housing division of the Texas Department of Housing
 and Community Affairs on or after the effective date of this
 article. An application for a license filed before that date is
 governed by the law in effect on the date the application was filed,
 and the former law is continued in effect for that purpose.
 ARTICLE 75. FEDERAL FUNDS DESIGNATION
 SECTION 75.01.  Subchapter F, Chapter 401, Government Code,
 is amended by adding Section 401.105 to read as follows:
 Sec. 401.105.  FEDERAL FUNDS DESIGNATION.
 (a)  Notwithstanding Section 487.051 or 487.351, on the written
 request of the commissioner of agriculture or the administrative
 head of a state agency designated under this subsection, the
 governor may designate one or more state agencies, under the
 Omnibus Budget Reconciliation Act of 1981 (Pub. L. No. 97-35) and 24
 C.F.R. Part 570, Subpart I, to administer the state's allocation of
 federal funds provided under the community development block grant
 nonentitlement program authorized by Title I of the Housing and
 Community Development Act of 1974 (42 U.S.C. Section 5301 et seq.).
 (b)  Notwithstanding Subsection (a) or any other law, the
 governor may designate any agency to administer all federal
 community development block grant disaster recovery funds and to
 transfer such federal funds to any agency.
 ARTICLE 76.  REGULATION OF POLITICAL CONTRIBUTIONS AND
 EXPENDITURES, REPORTING OF PERSONAL FINANCIAL INFORMATION, AND
 COMPLAINTS FILED WITH THE TEXAS ETHICS COMMISSION
 SECTION 76.01.  Section 253.0351, Election Code, is amended
 by adding Subsection (c) to read as follows:
 (c)  A candidate or officeholder who deposits personal funds
 in an account in which political contributions are held shall
 report the amount of personal funds deposited as a loan and may
 reimburse the amount deposited as a loan from political
 contributions or unexpended personal funds deposited in the
 account.  The reimbursement may not exceed the amount reported as a
 loan.  Personal funds deposited in an account in which political
 contributions are held are subject to Section 253.035 and must be
 included in the reports of the total amount of political
 contributions maintained required by Sections 254.031(a)(8) and
 254.0611(a).
 SECTION 76.02.  Subsection (a), Section 253.040, Election
 Code, is amended to read as follows:
 (a)  Except as provided by Section 253.0351(c), each [Each]
 candidate or officeholder shall keep the person's campaign and
 officeholder contributions in one or more accounts that are
 separate from any other account maintained by the person.
 SECTION 76.03.  Subsection (a), Section 254.031, Election
 Code, is amended to read as follows:
 (a)  Except as otherwise provided by this chapter, each
 report filed under this chapter must include:
 (1)  the amount of political contributions from each
 person that in the aggregate exceed $50 and that are accepted during
 the reporting period by the person or committee required to file a
 report under this chapter, the full name and address of the person
 making the contributions, and the dates of the contributions;
 (2)  the amount of loans that are made during the
 reporting period for campaign or officeholder purposes to the
 person or committee required to file the report and that in the
 aggregate exceed $50, the dates the loans are made, the interest
 rate, the maturity date, the type of collateral for the loans, if
 any, the full name and address of the person or financial
 institution making the loans, the full name and address, principal
 occupation, and name of the employer of each guarantor of the loans,
 the amount of the loans guaranteed by each guarantor, and the
 aggregate principal amount of all outstanding loans as of the last
 day of the reporting period;
 (3)  the amount of political expenditures that in the
 aggregate exceed $100 [$50] and that are made during the reporting
 period, the full name and address of the persons to whom the
 expenditures are made, and the dates and purposes of the
 expenditures;
 (4)  the amount of each payment made during the
 reporting period from a political contribution if the payment is
 not a political expenditure, the full name and address of the person
 to whom the payment is made, and the date and purpose of the
 payment;
 (5)  the total amount or a specific listing of the
 political contributions of $50 or less accepted and the total
 amount or a specific listing of the political expenditures of $100
 [$50] or less made during the reporting period;
 (6)  the total amount of all political contributions
 accepted and the total amount of all political expenditures made
 during the reporting period;
 (7)  the name of each candidate or officeholder who
 benefits from a direct campaign expenditure made during the
 reporting period by the person or committee required to file the
 report, and the office sought or held, excluding a direct campaign
 expenditure that is made by the principal political committee of a
 political party on behalf of a slate of two or more nominees of that
 party; [and]
 (8)  as of the last day of a reporting period for which
 the person is required to file a report, the total amount of
 political contributions accepted, including interest or other
 income on those contributions, maintained in one or more accounts
 in which political contributions are deposited as of the last day of
 the reporting period;
 (9)  any credit, interest, rebate, refund,
 reimbursement, or return of a deposit fee resulting from the use of
 a political contribution or an asset purchased with a political
 contribution that is received during the reporting period and the
 amount of which exceeds $100;
 (10)  any proceeds of the sale of an asset purchased
 with a political contribution that is received during the reporting
 period and the amount of which exceeds $100;
 (11)  any investment purchased with a political
 contribution that is received during the reporting period and the
 amount of which exceeds $100;
 (12)  any other gain from a political contribution that
 is received during the reporting period and the amount of which
 exceeds $100; and
 (13)  the full name and address of each person from whom
 an amount described by Subdivision (9), (10), (11), or (12) is
 received, the date the amount is received, and the purpose for which
 the amount is received.
 SECTION 76.04.  Section 571.122, Government Code, is amended
 by adding Subsection (e) to read as follows:
 (e)  It is not a valid basis of a complaint to allege that a
 report required under Chapter 254, Election Code, contains the
 improper name or address of a person from whom a political
 contribution was received if the name or address in the report is
 the same as the name or address that appears on the check for the
 political contribution.
 SECTION 76.05.  Subchapter E, Chapter 571, Government Code,
 is amended by adding Section 571.1222 to read as follows:
 Sec. 571.1222.  DISMISSAL OF COMPLAINT CHALLENGING CERTAIN
 INFORMATION IN POLITICAL REPORT. At any stage of a proceeding under
 this subchapter, the commission shall dismiss a complaint to the
 extent the complaint alleges that a report required under Chapter
 254, Election Code, contains the improper name or address of a
 person from whom a political contribution was received if the name
 or address in the report is the same as the name or address that
 appears on the check for the political contribution.
 SECTION 76.06.  Subsection (b), Section 571.123, Government
 Code, is amended to read as follows:
 (b)  After a complaint is filed, the commission shall
 immediately attempt to contact and notify the respondent of the
 complaint by telephone or electronic mail.  Not later than the
 fifth business day after the date a complaint is filed, the
 commission shall send written notice to the complainant and the
 respondent.  The written notice to the complainant and the
 respondent must:
 (1)  state whether the complaint complies with the form
 requirements of Section 571.122; [and]
 (2)  if the respondent is a candidate or officeholder,
 state the procedure by which the respondent may designate an agent
 with whom commission staff may discuss the complaint; and
 (3)  if applicable, include the information required by
 Section 571.124(e).
 SECTION 76.07.  Subchapter E, Chapter 571, Government Code,
 is amended by adding Section 571.1231 to read as follows:
 Sec. 571.1231.  DESIGNATION OF AGENT BY CERTAIN RESPONDENTS.
 (a)  This section applies only to a respondent who is a candidate or
 officeholder.
 (b)  A respondent to a complaint filed against the respondent
 may by writing submitted to the commission designate an agent with
 whom the commission staff may communicate regarding the complaint.
 (c)  For purposes of this subchapter, including Section
 571.140, communications with the respondent's agent designated
 under this section are considered communications with the
 respondent.
 SECTION 76.08.  Subsection (b), Section 159.003, Local
 Government Code, is amended to read as follows:
 (b)  The statement must:
 (1)  be filed with the county clerk of the county in
 which the officer, justice, or candidate resides; and
 (2)  comply with Sections 572.022 and 572.023,
 Government Code, and with any order of the commissioners court of
 the county requiring additional disclosures.
 SECTION 76.09.  Subsection (a), Section 254.031, Election
 Code, as amended by this Act, applies only to a report under Chapter
 254, Election Code, that is required to be filed on or after the
 effective date of this Act.  A report under Chapter 254, Election
 Code, that is required to be filed before the effective date of this
 Act is governed by the law in effect on the date the report is
 required to be filed, and the former law is continued in effect for
 that purpose.
 ARTICLE 77.  FISCAL MATTERS RELATING TO CERTAIN GROUNDWATER
 CONSERVATION DISTRICTS
 SECTION 77.01.  Section 36.0151, Water Code, is amended by
 adding Subsections (f), (g), and (h) to read as follows:
 (f)  Before September 1, 2015, the commission may not create
 a groundwater conservation district under this section in a county:
 (1)  in which the annual amount of surface water used is
 more than 50 times the annual amount of groundwater produced;
 (2)  that is located in a priority groundwater
 management area; and
 (3)  that has a population greater than 2.3 million.
 (g)  To the extent of a conflict between Subsection (f) and
 Section 35.012, Subsection (f) prevails.
 (h)  The commission may charge an annual fee not to exceed
 $500 to a county described by Subsection (f) for the purpose of
 studying compliance with that subsection in that county and the
 overall groundwater consumption in that county.
 [ARTICLE 78 reserved]
 ARTICLE 79.  EDUCATION JOBS FUND
 SECTION 79.01.  For purposes of interpreting and
 implementing Section 825.406, Government Code, the Teacher
 Retirement System of Texas may not consider salaries of personnel
 paid wholly or partly from the Education Jobs Fund distributed to
 school districts under Title I of Pub. L. No. 111-226 as being paid
 from federal funds.
 ARTICLE 79A.  CONFIDENTIALITY OF
 CERTAIN PEACE OFFICER VOUCHERS
 SECTION 79A.01.  Subchapter H, Chapter 660, Government Code,
 is amended by adding Section 660.2035 to read as follows:
 Sec. 660.2035.  CONFIDENTIALITY OF CERTAIN PEACE OFFICER
 VOUCHERS; QUARTERLY SUMMARIES.  (a)  A voucher or other expense
 reimbursement form, and any receipt or other document supporting
 that voucher or other expense reimbursement form, that is submitted
 or to be submitted under Section 660.027 is confidential under
 Chapter 552 for a period of 18 months following the date of travel
 if the voucher or other expense reimbursement form is submitted or
 is to be submitted for payment or reimbursement of a travel expense
 incurred by a peace officer while assigned to provide protection
 for an elected official of this state or a member of the elected
 official's family.
 (b)  At the expiration of the period provided by Subsection
 (a), the voucher or other expense reimbursement form and any
 supporting documents become subject to disclosure under Chapter 552
 and are not excepted from public disclosure or confidential under
 that chapter or other law, except that the following provisions of
 that chapter apply to the information in the voucher, reimbursement
 form, or supporting documents:
 (1)  Section 552.117;
 (2)  Section 552.1175;
 (3)  Section 552.119;
 (4)  Section 552.136;
 (5)  Section 552.137;
 (6)  Section 552.147; and
 (7)  Section 552.152.
 (c)  A state agency that submits vouchers or other expense
 reimbursement forms described by Subsection (a) shall prepare
 quarterly a summary of the amounts paid or reimbursed by the
 comptroller based on those vouchers or other expense reimbursement
 forms. Each summary must:
 (1)  list separately for each elected official the
 final travel destinations and the total amounts paid or reimbursed
 in connection with protection provided to each elected official and
 that elected official's family members; and
 (2)  itemize the amounts listed under Subdivision (1)
 by the categories of travel, fuel, food, lodging or rent, and other
 operating expenses.
 (d)  The itemized amounts under Subsection (c)(2) must equal
 the total amount listed under Subsection (c)(1) for each elected
 official for the applicable quarter.
 (e)  A summary prepared under Subsection (c) may not include:
 (1)  the number or names of the peace officers or
 elected official's family members identified in the vouchers,
 expense reimbursement forms, or supporting documents;
 (2)  the name of any business or vendor identified in
 the vouchers, expense reimbursement forms, or supporting
 documents; or
 (3)  the locations in which expenses were incurred,
 other than the city, state, and country in which incurred.
 (f)  A summary prepared under Subsection (c) is subject to
 disclosure under Chapter 552, except as otherwise excepted from
 disclosure under that chapter.
 (g)  A state agency that receives a request for information
 described by Subsection (a) during the period provided by that
 subsection may withhold that information without the necessity of
 requesting a decision from the attorney general under Subchapter G,
 Chapter 552. The Supreme Court of Texas has original and exclusive
 mandamus jurisdiction over any dispute regarding the construction,
 applicability, or constitutionality of Subsection (a). The supreme
 court may appoint a master to assist in the resolution of any such
 dispute as provided by Rule 171, Texas Rules of Civil Procedure, and
 may adopt additional rules as necessary to govern the procedures
 for the resolution of any such dispute.
 SECTION 79A.02.  Section 660.2035, Government Code, as added
 by this article, applies according to its terms in relation to
 travel vouchers or other reimbursement form and any supporting
 documents that pertain to expenses incurred or paid on or after the
 effective date of this article.
 ARTICLE 80.  EFFECTIVE DATE
 SECTION 80.01.  Except as otherwise provided by this Act:
 (1)  this Act takes effect September 1, 2011, if it
 receives a vote of two-thirds of all the members elected to each
 house, as provided by Section 39, Article III, Texas Constitution;
 and
 (2)  if this Act does not receive the vote necessary for
 effect on that date:
 (A)  this Act takes effect on the 91st day after
 the last day of the legislative session; and
 (B)  a provision of this Act that purports to take
 effect on September 1, 2011, takes effect on the date specified by
 Paragraph (A) of this subdivision.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I hereby certify that S.B. No. 1 passed the Senate on
 June 3, 2011, by the following vote:  Yeas 19, Nays 12;
 June 13, 2011, Senate refused to concur in House amendments and
 requested appointment of Conference Committee; June 15, 2011,
 House granted request of the Senate; June 28, 2011, Senate adopted
 Conference Committee Report by the following vote:  Yeas 21,
 Nays 9.
 ______________________________
 Secretary of the Senate
 I hereby certify that S.B. No. 1 passed the House, with
 amendments, on June 10, 2011, by the following vote:  Yeas 83,
 Nays 62, one present not voting; June 15, 2011, House granted
 request of the Senate for appointment of Conference Committee;
 June 28, 2011, House adopted Conference Committee Report by the
 following vote:  Yeas 80, Nays 57, two present not voting.
 ______________________________
 Chief Clerk of the House
 Approved:
 ______________________________
 Date
 ______________________________
 Governor

  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