1-1  By:  Stiles (Senate Sponsor - Ratliff)                 H.B. No. 947
    1-2        (In the Senate - Received from the House March 22, 1993;
    1-3  March 23, 1993, read first time and referred to Committee on
    1-4  Administration; April 7, 1993, reported favorably by the following
    1-5  vote:  Yeas 4, Nays 0; April 7, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Haley              x                               
    1-9        Moncrief                                      x    
   1-10        Ellis              x                               
   1-11        Montford                                      x    
   1-12        Shapiro            x                               
   1-13        Truan              x                               
   1-14        Turner                                        x    
   1-15                         A BILL TO BE ENTITLED
   1-16                                AN ACT
   1-17  relating to nonsubstantive additions to and corrections in enacted
   1-18  codes, including the nonsubstantive codification of various laws
   1-19  omitted from enacted codes, and to conforming codifications enacted
   1-20  by the 72nd Legislature to other Acts of that legislature.
   1-21        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-22                    ARTICLE 1.  GENERAL PROVISIONS
   1-23        SECTION 1.01.  This Act is enacted as part of the state's
   1-24  continuing statutory revision program under Chapter 323, Government
   1-25  Code.  This Act is a revision for purposes of Article III, Section
   1-26  43, of the Texas Constitution and has the purposes of:
   1-27              (1)  codifying without substantive change various
   1-28  statutes that were omitted from enacted codes;
   1-29              (2)  conforming codifications enacted by the 72nd
   1-30  Legislature to other Acts of that legislature that amended the laws
   1-31  codified or added new law to subject matter codified;
   1-32              (3)  making necessary corrections to enacted
   1-33  codifications; and
   1-34              (4)  renumbering titles, chapters, and sections of
   1-35  codes that duplicate title, chapter, or section numbers.
   1-36        SECTION 1.02.  (a)  The repeal of a statute by this Act does
   1-37  not affect an amendment, revision, or reenactment of the statute by
   1-38  the 73rd Legislature, Regular Session, 1993.  The amendment,
   1-39  revision, or reenactment is preserved and given effect as part of
   1-40  the code provision that revised the statute so amended, revised, or
   1-41  reenacted.
   1-42        (b)  If any provision of this Act conflicts with a statute
   1-43  enacted by the 73rd Legislature, Regular Session, 1993, the statute
   1-44  controls.
   1-45        SECTION 1.03.  (a)  A transition or savings provision of a
   1-46  law codified by this Act applies to the codified law to the same
   1-47  extent as it applied to the original law.
   1-48        (b)  The repeal of a transition or savings provision by this
   1-49  Act does not affect the application of the provision to the
   1-50  codified law.
   1-51        (c)  In this section, "transition provision" includes any
   1-52  temporary provision providing for a special situation in the
   1-53  transition period between the existing law and the establishment or
   1-54  implementation of the new law.
   1-55            ARTICLE 2.  CHANGES RELATING TO EDUCATION CODE
   1-56        SECTION 2.01.  Section 67.26, Education Code, is amended to
   1-57  read as follows:
   1-58        Sec. 67.26.  UNIVERSITY INTERSCHOLASTIC LEAGUE; VENUE FOR
   1-59  SUITS.  Venue for suits brought against the University
   1-60  Interscholastic League or for suits involving the interpretation or
   1-61  enforcement of the rules or regulations of the University
   1-62  Interscholastic League shall be in Travis County, Texas.  When the
   1-63  litigation involves a school district located within Travis County,
   1-64  it shall be heard by a visiting judge.
   1-65        SECTION 2.02.  Section 70.06, Education Code, is repealed
   1-66  because:
   1-67              (1)  Subsection (a) of Section 70.06 conflicts with
   1-68  Section 70.08, Education Code, a later enactment;
    2-1              (2)  Subsection (b) of Section 70.06 is expired; and
    2-2              (3)  Subsection (c) of Section 70.06 is duplicative of
    2-3  authority granted in Section 70.03, Education Code, to grant
    2-4  graduate degrees.
    2-5   ARTICLE 3.  CHANGES RELATING TO TEXAS ETHICS COMMISSION--ELECTION
    2-6                       CODE AND GOVERNMENT CODE
    2-7        SECTION 3.01.  Section 251.006(b), Election Code, is amended
    2-8  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
    2-9  Legislature, Regular Session, 1991, to correct a reference to read
   2-10  as follows:
   2-11        (b)  A candidate for an elective office of the federal
   2-12  government shall file with the commission <secretary of state> a
   2-13  copy of each document relating to his candidacy that is required to
   2-14  be filed under federal law.  The document shall be filed within the
   2-15  same period in which it is required to be filed under the federal
   2-16  law.
   2-17        SECTION 3.02.  The heading to Subchapter B, Chapter 251,
   2-18  Election Code, is amended to conform to Section 1.39(b), Chapter
   2-19  304, Acts of the 72nd Legislature, Regular Session, 1991, to
   2-20  correct a reference to read as follows:
   2-21                SUBCHAPTER B.  DUTIES OF THE COMMISSION
   2-22                         <SECRETARY OF STATE>
   2-23        SECTION 3.03.  Section 251.032, Election Code, is amended to
   2-24  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   2-25  Legislature, Regular Session, 1991, to correct a reference to read
   2-26  as follows:
   2-27        Sec. 251.032.  Forms.  In addition to furnishing samples of
   2-28  the appropriate forms to the authorities having administrative
   2-29  duties under this title, the commission <secretary of state> shall
   2-30  furnish the forms to each political party's state executive
   2-31  committee and county chairman of each county executive committee.
   2-32        SECTION 3.04.  Section 251.033, Election Code, is amended to
   2-33  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   2-34  Legislature, Regular Session, 1991, to correct a reference to read
   2-35  as follows:
   2-36        Sec. 251.033.  Notification Of Deadline For Filing Reports.
   2-37  (a)  The commission <secretary of state> shall notify each person
   2-38  responsible for filing a report with the commission <secretary>
   2-39  under Subchapters C through F, Chapter 254, of the deadline for
   2-40  filing a report, except that notice of the deadline is not required
   2-41  for a political committee involved in an election other than a
   2-42  primary election or the general election for state and county
   2-43  officers.
   2-44        (b)  If the commission <secretary of state> is unable to
   2-45  notify a person of a deadline after two attempts, the commission
   2-46  <secretary> is not required to make any further attempts to notify
   2-47  the person of that deadline or any future deadlines until the
   2-48  person has notified the commission <secretary of state> of the
   2-49  person's current address.
   2-50        SECTION 3.05.  Section 252.002(b), Election Code, is amended
   2-51  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   2-52  Legislature, Regular Session, 1991, to correct a reference to read
   2-53  as follows:
   2-54        (b)  A political committee that files its campaign treasurer
   2-55  appointment with the commission <secretary of state> must notify
   2-56  the commission <secretary> in writing of any change in the campaign
   2-57  treasurer's address not later than the 10th day after the date on
   2-58  which the change occurs.
   2-59        SECTION 3.06.  Sections 252.003(b) and (c), Election Code,
   2-60  are amended to conform to Section 1.39(b), Chapter 304, Acts of the
   2-61  72nd Legislature, Regular Session, 1991, to correct a reference to
   2-62  read as follows:
   2-63        (b)  If any of the information required to be included in a
   2-64  general-purpose committee's appointment changes, excluding changes
   2-65  reported under Section 252.002(b), the committee shall file an
   2-66  amended appointment with the commission <secretary of state> not
   2-67  later than the 30th day after the date the change occurs.
   2-68        (c)  The name of a general-purpose committee may not be the
   2-69  same as or deceptively similar to the name of any other
   2-70  general-purpose committee whose campaign treasurer appointment is
    3-1  filed with the commission <secretary of state>.  The commission
    3-2  <secretary> shall determine whether the name of a general-purpose
    3-3  political committee is in violation of this prohibition and shall
    3-4  immediately notify the campaign treasurer of the offending
    3-5  political committee of that determination.  The campaign treasurer
    3-6  of the political committee must file a name change with the
    3-7  commission <secretary> not later than the 14th day after the date
    3-8  of notification.  A campaign treasurer who fails to file a name
    3-9  change as provided by this subsection or a political committee that
   3-10  continues to use a prohibited name after its campaign treasurer has
   3-11  been notified by the commission <secretary> commits an offense.  An
   3-12  offense under this subsection is a Class B misdemeanor.
   3-13        SECTION 3.07.  Section 252.005, Election Code, is amended to
   3-14  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   3-15  Legislature, Regular Session, 1991, to correct a reference to read
   3-16  as follows:
   3-17        Sec. 252.005.  Authority with whom Appointment Filed:
   3-18  Candidate.  An individual must file a campaign treasurer
   3-19  appointment for the individual's own candidacy with:
   3-20              (1)  the commission <secretary of state>, if the
   3-21  appointment is made for candidacy for:
   3-22                    (A)  a statewide office;
   3-23                    (B)  a district office filled by voters of more
   3-24  than one county;
   3-25                    (C)  state senator;
   3-26                    (D)  state representative; or
   3-27                    (E)  the State Board of Education;
   3-28              (2)  the county clerk, if the appointment is made for
   3-29  candidacy for a county office, a precinct office, or a district
   3-30  office other than one included in Subdivision (1);
   3-31              (3)  the clerk or secretary of the governing body of
   3-32  the political subdivision or, if the political subdivision has no
   3-33  clerk or secretary, with the governing body's presiding officer, if
   3-34  the appointment is made for candidacy for an office of a political
   3-35  subdivision other than a county;
   3-36              (4)  the county clerk if:
   3-37                    (A)  the appointment is made for candidacy for an
   3-38  office of a political subdivision other than a county;
   3-39                    (B)  the governing body for the political
   3-40  subdivision has not been formed; and
   3-41                    (C)  no boundary of the political subdivision
   3-42  crosses a boundary of the county; or
   3-43              (5)  the commission <secretary of state> if:
   3-44                    (A)  the appointment is made for candidacy for an
   3-45  office of a political subdivision other than a county;
   3-46                    (B)  the governing body for the political
   3-47  subdivision has not been formed; and
   3-48                    (C)  the political subdivision is situated in
   3-49  more than one county.
   3-50        SECTION 3.08.  Section 252.007, Election Code, is amended to
   3-51  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   3-52  Legislature, Regular Session, 1991, to correct a reference to read
   3-53  as follows:
   3-54        Sec. 252.007.  Authority With Whom Appointment Filed:
   3-55  Specific-Purpose Committee For Supporting Or Opposing Measure.  A
   3-56  specific-purpose committee for supporting or opposing a measure
   3-57  must file its campaign treasurer appointment with:
   3-58              (1)  the commission <secretary of state>, if the
   3-59  measure is to be submitted to voters of the entire state;
   3-60              (2)  the county clerk, if the measure is to be
   3-61  submitted to voters of a single county in an election ordered by a
   3-62  county authority;
   3-63              (3)  the secretary of the governing body of the
   3-64  political subdivision or, if the political subdivision has no
   3-65  secretary, with the governing body's presiding officer, if the
   3-66  measure is to be submitted at an election ordered by an authority
   3-67  of a political subdivision other than a county;
   3-68              (4)  the county clerk if:
   3-69                    (A)  the measure concerns a political subdivision
   3-70  other than a county;
    4-1                    (B)  the governing body for the political
    4-2  subdivision has not been formed; and
    4-3                    (C)  no boundary of the political subdivision
    4-4  crosses a boundary of a county; or
    4-5              (5)  the commission <secretary of state> if:
    4-6                    (A)  the measure concerns a political subdivision
    4-7  other than a county;
    4-8                    (B)  the governing body for the political
    4-9  subdivision has not been formed; and
   4-10                    (C)  the political subdivision is situated in
   4-11  more than one county.
   4-12        SECTION 3.09.  Section 252.008, Election Code, is amended to
   4-13  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   4-14  Legislature, Regular Session, 1991, to correct a reference to read
   4-15  as follows:
   4-16        Sec. 252.008.  Multiple Filings By Specific-Purpose Committee
   4-17  Not Required.  If under this chapter a specific-purpose committee
   4-18  is required to file its campaign treasurer appointment with more
   4-19  than one authority, the appointment need only be filed with the
   4-20  commission <secretary of state> and, if so filed, need not be filed
   4-21  with the other authorities.
   4-22        SECTION 3.10.  Section 252.009, Election Code, is amended to
   4-23  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   4-24  Legislature, Regular Session, 1991, to correct a reference to read
   4-25  as follows:
   4-26        Sec. 252.009.  Authority with Whom Appointment Filed:
   4-27  General-Purpose Committee.  A general-purpose committee must file
   4-28  its campaign treasurer appointment with the commission <secretary
   4-29  of state>.
   4-30        SECTION 3.11.  Section 252.012(c), Election Code, is amended
   4-31  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   4-32  Legislature, Regular Session, 1991, to correct a reference to read
   4-33  as follows:
   4-34        (c)  If the campaign treasurer of a specific-purpose
   4-35  political committee required to file its campaign treasurer
   4-36  appointment with the commission <secretary of state> or of a
   4-37  general-purpose political committee is removed by the committee,
   4-38  the departing campaign treasurer shall immediately file written
   4-39  notification of the termination of appointment with the commission
   4-40  <secretary of state>.
   4-41        SECTION 3.12.  Section 252.013(c), Election Code, is amended
   4-42  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   4-43  Legislature, Regular Session, 1991, to correct a reference to read
   4-44  as follows:
   4-45        (c)  If the campaign treasurer of a specific-purpose
   4-46  political committee required to file its campaign treasurer
   4-47  appointment with the commission <secretary of state> or of a
   4-48  general-purpose political committee resigns or otherwise vacates
   4-49  the position, the campaign treasurer shall immediately file written
   4-50  notification of the vacancy with the commission <secretary of
   4-51  state>.
   4-52        SECTION 3.13.  Section 252.015(a), Election Code, is amended
   4-53  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   4-54  Legislature, Regular Session, 1991, to correct a reference to read
   4-55  as follows:
   4-56        (a)  Each specific-purpose committee for supporting or
   4-57  opposing a candidate for an office specified by Section 252.005(1)
   4-58  or a statewide or district measure and each general-purpose
   4-59  committee may appoint an assistant campaign treasurer by written
   4-60  appointment filed with the commission <secretary of state>.
   4-61        SECTION 3.14.  Section 254.038(c), Election Code, is amended
   4-62  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   4-63  Legislature, Regular Session, 1991, to correct a reference to read
   4-64  as follows:
   4-65        (c)  A report under this section shall be filed by telegram
   4-66  or telephonic facsimile machine or by hand with the commission
   4-67  <secretary of state> not later than 48 hours after the contribution
   4-68  is accepted.
   4-69        SECTION 3.15.  Section 254.039(a), Election Code, is amended
   4-70  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
    5-1  Legislature, Regular Session, 1991, to correct a reference to read
    5-2  as follows:
    5-3        (a)  In addition to other reports required by this chapter, a
    5-4  general-purpose committee that makes direct campaign expenditures
    5-5  supporting or opposing either a single candidate that in the
    5-6  aggregate exceed $1,000 or a group of candidates that in the
    5-7  aggregate exceed $15,000 during the period beginning the ninth day
    5-8  before election day and ending at 12 noon on the second day before
    5-9  election day shall file a report by telegram or telephonic
   5-10  facsimile machine or by hand with the commission <secretary of
   5-11  state> not later than 48 hours after the expenditure is made.
   5-12        SECTION 3.16.  Section 254.042(a), Election Code, is amended
   5-13  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   5-14  Legislature, Regular Session, 1991, to correct a reference to read
   5-15  as follows:
   5-16        (a)  The commission <secretary of state> shall determine from
   5-17  any available evidence whether a report, other than a telegram
   5-18  report under Section 254.038 or 254.039, required to be filed with
   5-19  the commission <secretary> under this chapter is late.  On making
   5-20  that determination, the commission <secretary> shall immediately
   5-21  mail a notice of the determination to the person required to file
   5-22  the report.
   5-23        SECTION 3.17.  Section 254.095, Election Code, is amended to
   5-24  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   5-25  Legislature, Regular Session, 1991, to correct a reference to read
   5-26  as follows:
   5-27        Sec. 254.095.  REPORT NOT REQUIRED.  If at the end of any
   5-28  reporting period prescribed by this subchapter an officeholder who
   5-29  is required to file a report with an authority other than the
   5-30  commission <secretary of state> has not accepted political
   5-31  contributions that in the aggregate exceed $500 or made political
   5-32  expenditures that in the aggregate exceed $500, the officeholder is
   5-33  not required to file a report covering that period.
   5-34        SECTION 3.18.  Section 254.155(b), Election Code, is amended
   5-35  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   5-36  Legislature, Regular Session, 1991, to correct a reference to read
   5-37  as follows:
   5-38        (b)  To be entitled to file monthly reports, the committee
   5-39  must deliver written notice of the committee's intent to file
   5-40  monthly to the commission <secretary of state> not earlier than
   5-41  January 1 or later than January 15 of the year in which the
   5-42  committee intends to file monthly.  The notice for a committee
   5-43  formed after January 15 must be delivered at the time the
   5-44  committee's campaign treasurer appointment is filed.
   5-45        SECTION 3.19.  Section 254.162, Election Code, is amended to
   5-46  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   5-47  Legislature, Regular Session, 1991, to correct a reference to read
   5-48  as follows:
   5-49        Sec. 254.162.  NOTICE OF CHANGE IN COMMITTEE STATUS.  If a
   5-50  general-purpose committee changes its operation and becomes a
   5-51  specific-purpose committee, notice of the change in status shall be
   5-52  given to the commission <secretary of state> as provided by Section
   5-53  254.129 for a specific-purpose committee.
   5-54        SECTION 3.20.  Section 254.163, Election Code, is amended to
   5-55  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   5-56  Legislature, Regular Session, 1991, to correct a reference to read
   5-57  as follows:
   5-58        Sec. 254.163.  AUTHORITY WITH WHOM REPORTS FILED.  Reports
   5-59  filed under this subchapter shall be filed with the commission
   5-60  <secretary of state>.
   5-61        SECTION 3.21.  Sections 302.013(a) and (d), Government Code,
   5-62  are amended to conform to Section 1.39(b), Chapter 304, Acts of the
   5-63  72nd Legislature, Regular Session, 1991, to correct a reference to
   5-64  read as follows:
   5-65        (a)  Each speaker candidate shall file a sworn statement with
   5-66  the Texas Ethics Commission <secretary of state> listing the
   5-67  information required by Section 302.014.
   5-68        (d)  Each speaker candidate shall file the statement on an
   5-69  official form designed by the Texas Ethics Commission <secretary of
   5-70  state>.
    6-1        SECTION 3.22.  Section 302.015, Government Code, is amended
    6-2  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
    6-3  Legislature, Regular Session, 1991, to correct a reference to read
    6-4  as follows:
    6-5        Sec. 302.015.  REQUISITES OF FILING.  (a)  Except as provided
    6-6  by Subsection (b), a statement is considered to be filed in
    6-7  compliance with this subchapter if the postmark shows that it was
    6-8  sent to the Texas Ethics Commission <secretary of state> at its
    6-9  <his> official post office address by registered or certified mail
   6-10  from any point in this state before the filing deadline.
   6-11        (b)  A statement required to be filed on the day before a
   6-12  regular or called session convenes must actually be delivered and
   6-13  in the possession of the Texas Ethics Commission <secretary of
   6-14  state> not later than 4 p.m.  of that day.
   6-15        SECTION 3.23.  Section 305.008(a), Government Code, is
   6-16  amended to conform to Section 1.39(b), Chapter 304, Acts of the
   6-17  72nd Legislature, Regular Session, 1991, to correct a reference to
   6-18  read as follows:
   6-19        (a)  A person who ceases to engage in activities requiring
   6-20  registration under this chapter shall file a written, verified
   6-21  statement with the commission <secretary> acknowledging the
   6-22  termination of activities.  The notice is effective immediately.
   6-23        SECTION 3.24.  Section 305.009(b), Government Code, is
   6-24  amended to conform to Section 1.39(b), Chapter 304, Acts of the
   6-25  72nd Legislature, Regular Session, 1991, to correct a reference to
   6-26  read as follows:
   6-27        (b)  The commission <secretary> shall:
   6-28              (1)  design and provide appropriate forms, covering
   6-29  only the items required to be disclosed under this chapter, to be
   6-30  used for the registration and reporting of required information;
   6-31              (2)  maintain registrations and reports in a separate,
   6-32  alphabetical file;
   6-33              (3)  remove registrations and reports from the files
   6-34  after five years from the date of filing; and
   6-35              (4)  maintain a deputy available to receive
   6-36  registrations and reports and make the registrations and reports
   6-37  available to the public for inspection.
   6-38        SECTION 3.25.  Section 305.011(c), Government Code, is
   6-39  amended to conform to Section 1.39(b), Chapter 304, Acts of the
   6-40  72nd Legislature, Regular Session, 1991, to correct a reference to
   6-41  read as follows:
   6-42        (c)  The commission shall send the lists prepared under this
   6-43  section to each member of the legislature.  During a regular
   6-44  legislative session, the commission <secretary> shall send a
   6-45  monthly update of the lists to each member of the legislature and
   6-46  to any person required to file under Chapter 421, Acts of the 63rd
   6-47  Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
   6-48  Civil Statutes), who requests one.
   6-49        SECTION 3.26.  Section 305.026(a), Government Code, is
   6-50  amended to conform to Section 1.39(b), Chapter 304, Acts of the
   6-51  72nd Legislature, Regular Session, 1991, to correct a reference to
   6-52  read as follows:
   6-53        (a)  Public funds available to a political subdivision may
   6-54  not be used to compensate or reimburse the expenses over $50 of any
   6-55  person for the purpose of communicating directly with a member of
   6-56  the legislative branch to influence legislation, unless the person
   6-57  being compensated or reimbursed resides in the district of the
   6-58  member with whom the person communicates or files a written
   6-59  statement with the commission <secretary of state> that includes
   6-60  the person's name, the amount of compensation or reimbursement, and
   6-61  the name of the affected political subdivision.
   6-62        SECTION 3.27.  Section 305.033(c), Government Code, is
   6-63  amended to conform to Section 1.39(b), Chapter 304, Acts of the
   6-64  72nd Legislature, Regular Session, 1991, to correct a reference to
   6-65  read as follows:
   6-66        (c)  If a registration or report is more than 30 days late,
   6-67  the commission <secretary> shall issue a warning of liability by
   6-68  registered mail to the person responsible for the filing.  If the
   6-69  penalty is not paid before the 10th day after the date on which the
   6-70  warning is received, the person is liable for a penalty in an
    7-1  amount determined by commission rule, but not to exceed $10,000.
    7-2        SECTION 3.28.  Section 305.034, Government Code, is amended
    7-3  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
    7-4  Legislature, Regular Session, 1991, to correct a reference to read
    7-5  as follows:
    7-6        Sec. 305.034.  FAILURE TO FILE ALL REQUIRED FORMS.  (a)  The
    7-7  commission <secretary> shall determine whether all persons
    7-8  registered under this chapter have filed all required forms,
    7-9  statements, and reports.
   7-10        (b)  Whenever the commission <secretary> determines that a
   7-11  person has failed to file any required form, statement, or report
   7-12  as required by this chapter, the commission <secretary> shall send
   7-13  a written statement of this finding to the person involved.  Notice
   7-14  to the person involved must be sent by certified mail.
   7-15        (c)  If the person fails to file the form, statement, or
   7-16  report as required by this chapter before the 21st day after the
   7-17  date on which the notice was sent, the commission <secretary> shall
   7-18  file a sworn complaint of the violation with the appropriate
   7-19  prosecuting attorney.
   7-20          ARTICLE 3A.  CHANGES RELATING TO VOTER REGISTRATION
   7-21                             ELECTION CODE
   7-22        SECTION 3A.01.  (a)  Sections 6(d)-(i), Chapter 173, Acts of
   7-23  the 47th Legislature, Regular Session, 1941 (Article 6687b,
   7-24  Vernon's Texas Civil Statutes), are transferred to Chapter 13,
   7-25  Election Code, redesignated as Subchapter B-1, and amended to read
   7-26  as follows:
   7-27            SUBCHAPTER B-1.  VOTER REGISTRATION ASSISTANCE
   7-28                       BY CERTAIN STATE AGENCIES
   7-29        Sec. 13.051.  DEPARTMENT OF PUBLIC SAFETY.  (a)  The
   7-30  Department of Public Safety <(d)  The Department> shall provide to
   7-31  each person who applies in person at the department's
   7-32  <Department's> offices for an original or renewal of a driver's
   7-33  license, a personal identification card, or a duplicate or
   7-34  corrected license or card an opportunity to complete a voter
   7-35  registration application form.
   7-36        (b) <(e)>  The department <Department> shall prescribe and
   7-37  use a form that combines the department's <Department's>
   7-38  application form for a license or card with an officially
   7-39  prescribed voter registration application form.
   7-40        (c) <(f)>  An appropriate department <Department> employee
   7-41  shall routinely inform each applicant for a license or card of the
   7-42  opportunity to complete a voter registration application form and
   7-43  on request shall provide nonpartisan voter registration assistance
   7-44  to an applicant or other interested person on the premises.
   7-45        (d) <(g)>  On receipt of a completed voter registration
   7-46  application, the department <Department> employee shall note the
   7-47  date of submission on the application and issue a receipt to the
   7-48  applicant containing the applicant's name, the employee's name, the
   7-49  location of the office, and the date of submission.
   7-50        (e) <(h)>  At the end of each day a department <Department>
   7-51  office is regularly open for business, the manager of the office
   7-52  shall deliver by mail all completed voter registration applications
   7-53  to the voter registrar of the county in which the office is
   7-54  located.
   7-55        (f) <(i)>  The date of submission of a completed voter
   7-56  registration application to a department <Department> employee is
   7-57  considered to be the date of submission to the voter registrar for
   7-58  the purpose of determining the effective date of registration only.
   7-59        (b)  Chapter 173, Acts of the 47th Legislature, Regular
   7-60  Session, 1941 (Article 6687b, Vernon's Texas Civil Statutes), is
   7-61  amended to conform to Subsection (a) of this section by adding
   7-62  Section 14C to read as follows:
   7-63        Sec. 14C.  VOTER REGISTRATION.  The department shall provide
   7-64  nonpartisan voter registration assistance as provided by Subchapter
   7-65  B-1, Chapter 13, Election Code.
   7-66        SECTION 3A.02.  Section 323.013, Government Code, is
   7-67  transferred to Chapter 276, Election Code, and redesignated as
   7-68  Section 276.008 to read as follows:
   7-69        Sec. 276.008 <323.013>.  <Election> Information Provided to
   7-70  TEXAS LEGISLATIVE Council.  (a)  On the written request of the
    8-1  Texas Legislative Council <council>, the secretary of state
    8-2  <Secretary of State>, a county clerk or county elections
    8-3  administrator, a city secretary, or a voter registrar shall provide
    8-4  without charge to the council information or data maintained by the
    8-5  appropriate officer relating to voter registration, election
    8-6  returns for statewide, district, county, precinct, or city offices,
    8-7  or county election precincts, including precinct maps.
    8-8        (b)  The appropriate officer shall provide the requested
    8-9  information or data to the council as soon as practicable but not
   8-10  later than the 30th day after the date <on which> the request is
   8-11  received by that officer.
   8-12        (c)  The information or data shall be provided in a form
   8-13  approved by the council.
   8-14        SECTION 3A.03.  Sections 141.031 and 252.0032, Election Code,
   8-15  are amended to conform to Sections 1 and 2, Chapter 561, Acts of
   8-16  the 72nd Legislature, Regular Session, 1991, to read as follows:
   8-17        Sec. 141.031.  General Requirements for Application.  A
   8-18  candidate's application for a place on the ballot that is required
   8-19  by this code must:
   8-20              (1)  be in writing;
   8-21              (2)  be signed and sworn to by the candidate and
   8-22  indicate the date that the candidate swears to the application;
   8-23              (3)  be timely filed with the appropriate authority;
   8-24  and
   8-25              (4)  include:
   8-26                    (A)  the candidate's name;
   8-27                    (B)  the candidate's occupation;
   8-28                    (C)  the office sought, including any place
   8-29  number or other distinguishing number;
   8-30                    (D)  an indication of whether the office sought
   8-31  is to be filled for a full or unexpired term if the office sought
   8-32  and another office to be voted on have the same title but do not
   8-33  have place numbers or other distinguishing numbers;
   8-34                    (E)  a statement that the candidate is a United
   8-35  States citizen;
   8-36                    (F)  a statement that the candidate has not been
   8-37  determined mentally incompetent by a final judgment of a court;
   8-38                    (G)  a statement that the candidate has not been
   8-39  finally convicted of a felony from which the candidate has not been
   8-40  pardoned or otherwise released from the resulting disabilities;
   8-41                    (H)  the candidate's date of birth;
   8-42                    (I)  the candidate's residence address or, if the
   8-43  residence has no address, the address at which the candidate
   8-44  receives mail and a concise description of the location of the
   8-45  candidate's residence;
   8-46                    (J)  the candidate's length of continuous
   8-47  residence in the state and in the territory from which the office
   8-48  sought is elected as of the date the candidate swears to the
   8-49  application;
   8-50                    (K)  the statement:  "I, __________, of
   8-51  __________ County, Texas, being a candidate for the office of
   8-52  __________, swear that I will support and defend the constitution
   8-53  and laws of the United States and of the State of Texas"; and
   8-54                    (L)  a statement that the candidate is aware of
   8-55  the nepotism law, Articles 5996a et seq., <through 5996g of the>
   8-56  Revised Statutes.
   8-57        Sec. 252.0032.  Contents of Appointment by Candidate.
   8-58  (a)  In addition to the information required by Section 252.002, a
   8-59  campaign treasurer appointment by a candidate must include a
   8-60  statement, signed by the candidate, that the candidate is aware of
   8-61  the nepotism law, Articles 5996a et seq., <through 5996g of the>
   8-62  Revised Statutes.
   8-63        (b)  A campaign treasurer appointment that is filed in a
   8-64  manner other than by use of an officially prescribed form is not
   8-65  invalid because it fails to comply with Subsection (a).
   8-66            ARTICLE 4.  CHANGES RELATING TO GOVERNMENT CODE
   8-67        SECTION 4.01.  Section 26.052, Government Code, is amended to
   8-68  correct a reference to read as follows:
   8-69        Sec. 26.052.  PROBATE AND MENTAL HEALTH CODE CASES.  (a)  In
   8-70  a county in which the county court and any county court created by
    9-1  statute have jurisdiction in both probate matters and proceedings
    9-2  under Subtitle C, Title 7, Health and Safety Code <the Texas Mental
    9-3  Health Code (Article 5547-1 et seq., Vernon's Texas Civil
    9-4  Statutes)>, during each year for which a statement has been filed
    9-5  as provided by Subsection (b), those cases and proceedings must be
    9-6  filed in a county court created by statute with jurisdiction of
    9-7  those cases and proceedings.
    9-8        (b)  A county judge may file, not later than January 15 of
    9-9  each year, a statement with the county clerk electing not to hear
   9-10  probate matters and proceedings under Subtitle C, Title 7, Health
   9-11  and Safety Code <the Texas Mental Health Code (Article 5547-1 et
   9-12  seq., Vernon's Texas Civil Statutes)>.
   9-13        SECTION 4.02.  Section 443.009(b), Government Code, is
   9-14  amended to correct a reference to read as follows:
   9-15        (b)  The board and the employees of the board have no control
   9-16  over the furniture, furnishings, and decorative objects in the
   9-17  offices of the members of the legislature except as provided by
   9-18  Section 443.017 <443.016> or as necessary to inventory or conserve
   9-19  items of historical significance owned by the state.
   9-20        SECTION 4.03.  (a)  The heading to Subtitle E, Title 4,
   9-21  Government Code, is amended to read as follows:
   9-22                 SUBTITLE E.  OTHER EXECUTIVE AGENCIES
   9-23                             AND PROGRAMS
   9-24        (b)  Subtitle E, Title 4, Government Code, is amended to
   9-25  codify Section 2, Chapter 6, Acts of the 72nd Legislature, 1st
   9-26  Called Session, 1991 (Article 179g, Vernon's Texas Civil Statutes),
   9-27  by adding Chapter 466 to read as follows:
   9-28                      CHAPTER 466.  STATE LOTTERY
   9-29                   SUBCHAPTER A.  GENERAL PROVISIONS
   9-30        Sec. 466.001.  SHORT TITLE.  This chapter may be cited as the
   9-31  State Lottery Act.
   9-32        Sec. 466.002.  DEFINITIONS.  In this chapter:
   9-33              (1)  "Director" means the director of the division.
   9-34              (2)  "Division" means the lottery division established
   9-35  in the office of the comptroller under this chapter.
   9-36              (3)  "Lottery" means the procedures operated by the
   9-37  state under this chapter through which prizes are awarded or
   9-38  distributed by chance among persons who have paid, or
   9-39  unconditionally agreed to pay, for a chance or other opportunity to
   9-40  receive a prize.
   9-41              (4)  "Lottery game" includes a lottery activity.
   9-42              (5)  "Lottery operator" means a person selected under
   9-43  Section 466.014(b) to operate a lottery.
   9-44              (6)  "Player" means a person who contributes any part
   9-45  of the consideration for a ticket.
   9-46              (7)  "Sales agent" or "sales agency" means a person
   9-47  licensed under this chapter to sell tickets.
   9-48              (8)  "Ticket" means any tangible evidence issued to
   9-49  provide participation in a lottery game authorized by this chapter.
   9-50        Sec. 466.003.  APPLICATION OF SUNSET ACT.  (a)  The lottery
   9-51  division is subject to Chapter 325 (Texas Sunset Act).  Unless
   9-52  continued in existence as provided by that chapter, the division is
   9-53  abolished and this chapter expires September 1, 2003.
   9-54        (b)  A contract between the division and a lottery operator
   9-55  under Section 466.014(b) must terminate on or before September 1,
   9-56  2004.
   9-57        Sec. 466.004.  EXEMPTION FROM TAXATION.  (a)  A political
   9-58  subdivision of this state may not impose:
   9-59              (1)  a tax on the sale of a ticket;
   9-60              (2)  a tax on the payment of a prize under this
   9-61  chapter; or
   9-62              (3)  an ad valorem tax on tickets.
   9-63        (b)  The receipts from the sale, use, or other consumption of
   9-64  a ticket are exempt from taxation under Chapter 151, Tax Code.
   9-65           (Sections 466.005-466.010 reserved for expansion
   9-66                     SUBCHAPTER B.  ADMINISTRATION
   9-67        Sec. 466.011.  Lottery Division; DIRECTOR.  (a)  A division
   9-68  to administer a state lottery is created in the office of the
   9-69  comptroller.  The division is administered by the director.
   9-70        (b)  The comptroller shall appoint a person to serve as
   10-1  director and chief executive officer of the division subject to the
   10-2  comptroller's direction.  The director holds office at the will of
   10-3  the comptroller and is specifically exempted from the Position
   10-4  Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
   10-5  Statutes).  The director is entitled to receive an annual salary in
   10-6  an amount set by the comptroller.  The director also is entitled to
   10-7  reimbursement for expenses actually and necessarily incurred in the
   10-8  performance of the director's duties.
   10-9        (c)  The director may create, abolish, transfer, and
  10-10  consolidate bureaus and other units in the division that are not
  10-11  expressly established by law as the director determines to be
  10-12  necessary for the efficient operation of the division.
  10-13        (d)  The legislature intends that the division be a
  10-14  self-supporting, revenue-raising agency of state government.
  10-15  Except as provided by Section 466.355, no appropriation, loan, or
  10-16  other transfer of state funds may be made to the division.
  10-17        (e)  Notwithstanding Subsection (d), the comptroller may
  10-18  transfer to the division amounts appropriated to the comptroller
  10-19  for purposes other than the administration of this chapter.  If the
  10-20  comptroller proposes to transfer amounts under this subsection, the
  10-21  comptroller shall notify the Legislative Budget Board in writing of
  10-22  the amount of the proposed transfer.  The comptroller may not make
  10-23  the proposed transfer unless the board approves it.  If the board
  10-24  does not approve or disapprove the proposed transfer before the
  10-25  10th day after the date that the comptroller notifies the board of
  10-26  the proposed transfer, the board is considered to have approved the
  10-27  transfer.  If the board disapproves the proposed transfer, the
  10-28  comptroller may request the governor to make a proposal for the
  10-29  transfer of an appropriation as provided by Chapter 317.
  10-30        (f)  The comptroller shall reimburse any amount of an
  10-31  appropriation transferred under Subsection (e) to the account or
  10-32  fund from which it was transferred.  The reimbursement must:
  10-33              (1)  be made from funds received by the comptroller for
  10-34  license fees and ticket sales under this chapter; and
  10-35              (2)  be made not later than the first anniversary of
  10-36  the date of the transfer.
  10-37        (g)  The comptroller's authority to transfer funds to the
  10-38  division under Subsection (e) expires September 1, 1993.  This
  10-39  subsection and Subsections (e) and (f) expire January 1, 1995.
  10-40        Sec. 466.012.  DIVISION EMPLOYEES.  (a)  Except as otherwise
  10-41  provided by law, the director may appoint deputies, assistants,
  10-42  other officers and employees, committees, and consultants and may
  10-43  prescribe their powers and their expenses.  Division employees
  10-44  serve at the will of the director.
  10-45        (b)  The director may not employ any person who would be
  10-46  denied a license as a sales agent under Section 466.155.
  10-47        (c)  Division employees are specifically exempted from the
  10-48  Position Classification Act of 1961 (Article 6252-11, Vernon's
  10-49  Texas Civil Statutes).  The director shall set the salaries of
  10-50  these employees.
  10-51        Sec. 466.013.  MARKETING REPRESENTATIVES.  The director may
  10-52  employ or contract with marketing representatives to promote the
  10-53  sale of tickets, to encourage persons to apply to become sales
  10-54  agents, or to investigate the qualifications of sales agent
  10-55  applicants.  The marketing representatives are exempted from the
  10-56  Position Classification Act of 1961 (Article 6252-11, Vernon's
  10-57  Texas Civil Statutes) and may be compensated based on a sales
  10-58  incentive system to be established by the director.
  10-59        Sec. 466.014.  Powers and Duties of Comptroller, Director,
  10-60  and Division.  (a)  The comptroller and director have broad
  10-61  authority and shall exercise strict control and close supervision
  10-62  over all lottery games conducted in this state to promote and
  10-63  ensure integrity, security, honesty, and fairness in the operation
  10-64  and administration of the lottery.
  10-65        (b)  The director may contract with or employ a person to
  10-66  perform a function, activity, or service in connection with the
  10-67  operation of the lottery as prescribed by the director.  A person
  10-68  with whom the director contracts to operate a lottery must be
  10-69  eligible for a sales agent license under Section 466.155.
  10-70        (c)  The director may award a contract for lottery supplies
   11-1  or services, including a contract under Subsection (b), pending the
   11-2  completion of any investigation authorized by this chapter.  A
   11-3  contract awarded under this subsection must include a provision
   11-4  permitting the director to terminate the contract without penalty
   11-5  if the investigation reveals that the person to whom the contract
   11-6  is awarded would not be eligible for a sales agent license under
   11-7  Section 466.155.  The director's authority to award a contract
   11-8  under this subsection expires September 1, 1993.  This subsection
   11-9  expires January 1, 1995.
  11-10        Sec. 466.015.  RULES.  (a)  The comptroller shall adopt all
  11-11  rules necessary to administer this chapter.  The director may
  11-12  propose rules to be adopted by the comptroller, but the director's
  11-13  proposed rules have no effect until adopted by the comptroller.
  11-14        (b)  The comptroller shall adopt rules to the extent they are
  11-15  not inconsistent with the open meetings law, Chapter 271, Acts of
  11-16  the 60th Legislature, Regular Session, 1967 (Article 6252-17,
  11-17  Vernon's Texas Civil Statutes), and the open records law, Chapter
  11-18  424, Acts of the 63rd Legislature, Regular Session, 1973 (Article
  11-19  6252-17a, Vernon's Texas Civil Statutes), governing the:
  11-20              (1)  security for the lottery and the division,
  11-21  including the development of an internal security plan;
  11-22              (2)  apportionment of the total revenues from the sale
  11-23  of tickets and from all other sources in the amounts provided by
  11-24  this chapter;
  11-25              (3)  enforcement of prohibitions on the sale of tickets
  11-26  to or by an individual younger than 18 years of age; and
  11-27              (4)  enforcement of prohibitions on a person playing a
  11-28  lottery game by telephone.
  11-29        (c)  The comptroller may adopt rules governing the
  11-30  establishment and operation of the lottery, including rules
  11-31  governing:
  11-32              (1)  the type of lottery games to be conducted;
  11-33              (2)  the price of each ticket;
  11-34              (3)  the number of winning tickets and amount of the
  11-35  prize paid on each winning ticket;
  11-36              (4)  the frequency of the drawing or selection of a
  11-37  winning ticket;
  11-38              (5)  the number and types of locations at which a
  11-39  ticket may be sold;
  11-40              (6)  the method to be used in selling a ticket;
  11-41              (7)  the use of vending machines or electronic or
  11-42  mechanical devices of any kind, other than machines or devices that
  11-43  dispense currency or coins as prizes;
  11-44              (8)  the manner of paying a prize to the holder of a
  11-45  winning ticket;
  11-46              (9)  the investigation of possible violations of this
  11-47  chapter or any rule adopted under this chapter;
  11-48              (10)  the means of advertising to be used for the
  11-49  lottery;
  11-50              (11)  the qualifications of vendors of lottery services
  11-51  or equipment;
  11-52              (12)  the confidentiality of information relating to
  11-53  the operation of the lottery, including:
  11-54                    (A)  trade secrets;
  11-55                    (B)  security measures, systems, or procedures;
  11-56                    (C)  security reports;
  11-57                    (D)  bids or other information regarding the
  11-58  division's contracts, if disclosure of the information would impair
  11-59  the division's ability to contract for facilities, goods, or
  11-60  services on terms favorable to the division;
  11-61                    (E)  personnel information unrelated to
  11-62  compensation, duties, qualifications, or responsibilities; and
  11-63                    (F)  information obtained by division security
  11-64  officers or investigators;
  11-65              (13)  the development and availability of a model
  11-66  agreement governing the division of a prize among multiple
  11-67  purchasers of a winning ticket purchased through a group purchase
  11-68  or pooling arrangement;
  11-69              (14)  the criteria to be used in evaluating bids for
  11-70  contracts for lottery facilities, goods, and services; or
   12-1              (15)  any other matter necessary or desirable as
   12-2  determined by the comptroller, to promote and ensure:
   12-3                    (A)  the integrity, security, honesty, and
   12-4  fairness of the operation and administration of the lottery; and
   12-5                    (B)  the convenience of players and holders of
   12-6  winning tickets.
   12-7        Sec. 466.016.  ANNUAL REPORT.  The comptroller shall make an
   12-8  annual report to the governor and the legislature that provides a
   12-9  summary of lottery revenues, prize disbursements, and other
  12-10  expenses for the fiscal year preceding the report.  The report must
  12-11  be in the form and reported in the time provided by the General
  12-12  Appropriations Act.
  12-13        Sec. 466.017.  Audits.  (a)  The director shall provide for a
  12-14  certified public accountant to conduct an independent audit for
  12-15  each fiscal year of all accounts and transactions of the lottery.
  12-16  The certified public accountant may not have, as determined by the
  12-17  director, a significant financial interest in a sales agent,
  12-18  lottery vendor, or lottery operator.  The certified public
  12-19  accountant shall present an audit report to the director, the
  12-20  comptroller, the governor, and the legislature not later than April
  12-21  1 of the year following the fiscal year for which the audit was
  12-22  performed.  The report must contain recommendations to enhance the
  12-23  earnings capability of the lottery and improve the efficiency of
  12-24  lottery operations.  The state auditor may review the results of
  12-25  and working papers related to the audit.
  12-26        (b)  Each lottery operator's and sales agent's records are
  12-27  subject to audit by the division, the comptroller, and the state
  12-28  auditor.  For the purpose of carrying out this chapter, the
  12-29  director, comptroller, or state auditor may examine all books,
  12-30  records, papers, or other objects that the director, comptroller,
  12-31  or state auditor determines are necessary for conducting a complete
  12-32  examination under this chapter and may also examine under oath any
  12-33  officer, director, or employee of a lottery operator or sales
  12-34  agent.  The director, comptroller, or state auditor may conduct an
  12-35  examination at the principal office or any other office of the
  12-36  lottery operator or sales agent or may require the lottery operator
  12-37  or sales agent to produce the records at the office of the
  12-38  division, comptroller, or state auditor.  If a sales agent refuses
  12-39  to permit an examination or to answer any question authorized by
  12-40  this subsection, the comptroller may summarily suspend the license
  12-41  of the sales agent under Section 466.160 until the examination is
  12-42  completed as required.  Section 321.013(h) does not apply to an
  12-43  audit of a lottery operator or sales agent.
  12-44        Sec. 466.018.  Investigations.  The attorney general, the
  12-45  district attorney for Travis County, or the district attorney,
  12-46  criminal district attorney, or county attorney performing the
  12-47  duties of district attorney for the county in which the violation
  12-48  or alleged violation occurred may investigate a violation or
  12-49  alleged violation of this chapter and of the penal laws of this
  12-50  state by the division or its employees, a sales agent, a lottery
  12-51  vendor, or a lottery operator.
  12-52        Sec. 466.019.  Enforcement.  (a)  The comptroller or
  12-53  designated personnel of the division may investigate violations of
  12-54  this chapter and violations of the rules adopted under this
  12-55  chapter.  After conducting investigations, the comptroller, a
  12-56  person designated by the comptroller, or any law enforcement agency
  12-57  may file a complaint with the district attorney of Travis County or
  12-58  with the district attorney of the county in which a violation is
  12-59  alleged to have occurred.
  12-60        (b)  The comptroller has the administrative, enforcement, and
  12-61  collection powers provided by Subtitle B, Title 2, Tax Code, in
  12-62  regard to the lottery.  For purposes of the application of Title 2
  12-63  of the Tax Code, the state's share of proceeds from the sale of
  12-64  lottery tickets is treated as if it were a tax.
  12-65        Sec. 466.020.  SECURITY.  (a)  The director shall maintain a
  12-66  department of security in the division.  The director shall appoint
  12-67  a deputy to administer the department.  The deputy must be
  12-68  qualified by training and experience in law enforcement or security
  12-69  to supervise, direct, and administer the activities of the
  12-70  department.
   13-1        (b)  The director may employ security officers or
   13-2  investigators as the director considers necessary and may
   13-3  commission security officers or investigators as peace officers.
   13-4  The deputy and all investigators employed by the department of
   13-5  security as peace officers must meet the requirements under Chapter
   13-6  415 for employment and commission as peace officers.
   13-7        (c)  A security officer or investigator employed by the
   13-8  department of security or a peace officer who is working in
   13-9  conjunction with the comptroller or the Department of Public Safety
  13-10  in the enforcement of this chapter, without a search warrant, may
  13-11  search and seize a lottery vending machine, lottery computer
  13-12  terminal, or other lottery equipment that is located on premises
  13-13  for which a person holds a sales agent license issued under this
  13-14  chapter.
  13-15        (d)  The Department of Public Safety, at the comptroller's
  13-16  request, shall perform a full criminal background investigation of
  13-17  a prospective deputy or investigator of the department of security.
  13-18  The comptroller shall reimburse the Department of Public Safety for
  13-19  the actual costs of an investigation.
  13-20        (e)  At least once every two years, the director shall employ
  13-21  an independent firm that is experienced in security, including
  13-22  computer security and systems security, to conduct a comprehensive
  13-23  study of all aspects of lottery security, including:
  13-24              (1)  lottery personnel security;
  13-25              (2)  sales agent security;
  13-26              (3)  lottery operator and vendor security;
  13-27              (4)  security against ticket counterfeiting and
  13-28  alteration and other means of fraudulent winning;
  13-29              (5)  security of lottery drawings;
  13-30              (6)  lottery computer, data communications, database,
  13-31  and systems security;
  13-32              (7)  lottery premises and warehouse security;
  13-33              (8)  security of distribution of tickets;
  13-34              (9)  security of validation and payment procedures;
  13-35              (10)  security involving unclaimed prizes;
  13-36              (11)  security aspects of each lottery game;
  13-37              (12)  security against the deliberate placement of
  13-38  winning tickets in lottery games that involve preprinted winning
  13-39  tickets by persons involved in the production, storage,
  13-40  transportation, or distribution of tickets; and
  13-41              (13)  other security aspects of lottery operations.
  13-42        (f)  The director shall provide the comptroller with a
  13-43  complete report of the security study conducted under Subsection
  13-44  (e).  The comptroller shall provide the governor and the
  13-45  legislature, before the convening of each regular legislative
  13-46  session, with a summary of the security study that shows the
  13-47  overall evaluation of the lottery's security.
  13-48        (g)  The first security study conducted under Subsection (e)
  13-49  must be conducted not later than the first anniversary of the first
  13-50  sale of a ticket to a player under this chapter.  The first report
  13-51  to the governor and legislature under Subsection (f) must be made
  13-52  before the convening of the regular session of the 74th
  13-53  Legislature.  This subsection expires June 1, 1995.
  13-54        Sec. 466.021.  DEMOGRAPHIC STUDIES.  (a)  The director shall,
  13-55  every two years, employ an independent firm experienced in
  13-56  demographic analysis to conduct a demographic study of lottery
  13-57  players.  The study must include the income, age, sex, education,
  13-58  and frequency of participation of players.
  13-59        (b)  The director shall report the results of the demographic
  13-60  study conducted under Subsection (a) to the comptroller, the
  13-61  governor, and the legislature before the convening of each regular
  13-62  legislative session.
  13-63        Sec. 466.022.  Confidential Information.  The following
  13-64  information is confidential and is exempt from disclosure under the
  13-65  open records law, Chapter 424, Acts of the 63rd Legislature,
  13-66  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
  13-67  Statutes):
  13-68              (1)  security plans and procedures of the division or
  13-69  the office of the comptroller designed to ensure the integrity and
  13-70  security of the operation of the lottery;
   14-1              (2)  information of a nature that is designed to ensure
   14-2  the integrity and security of the selection of winning tickets or
   14-3  numbers in the lottery, other than information describing the
   14-4  general procedures for selecting winning tickets or numbers; and
   14-5              (3)  the street address and telephone number of a prize
   14-6  winner, if the prize winner has not consented to the release of the
   14-7  information.
   14-8        Sec. 466.023.  DEPARTMENT OF PUBLIC SAFETY RECORDS.
   14-9  (a)  Except as otherwise provided by this chapter, all files,
  14-10  records, information, compilations, documents, photographs,
  14-11  reports, summaries, and reviews of information and related matters
  14-12  collected, retained, or compiled by the Department of Public Safety
  14-13  in the discharge of its duties under this chapter are confidential
  14-14  and are not subject to public disclosure.  Each of those items is
  14-15  subject to discovery by a person that is the subject of the item.
  14-16        (b)  An investigation report or other document submitted by
  14-17  the Department of Public Safety to the division becomes part of the
  14-18  investigative files of the division and is subject to discovery by
  14-19  a person that is the subject of the investigation report or other
  14-20  document.
  14-21        (c)  Information that is in the form available to the public
  14-22  is not privileged or confidential under this section and is subject
  14-23  to public disclosure.
  14-24        Sec. 466.024.  PROHIBITED GAMES.  (a)  The director or a
  14-25  lottery operator may not establish or operate a lottery game in
  14-26  which the winner is chosen on the basis of the outcome of a sports
  14-27  event.
  14-28        (b)  The comptroller shall adopt rules prohibiting the
  14-29  operation of any game using a video lottery machine or machine.
  14-30        (c)  In this section:
  14-31              (1)  "Sports event" means a football, basketball,
  14-32  baseball, or similar game, or a horse or dog race on which
  14-33  pari-mutuel wagering is allowed.
  14-34              (2)  "Video lottery machine" or "machine" means any
  14-35  electronic video game machine that, upon insertion of cash, is
  14-36  available to play or simulate the play of a video game, including
  14-37  video poker, keno, and blackjack, using a video display and
  14-38  microprocessors in which the player may receive free games or
  14-39  credits that can be redeemed for cash, coins, or tokens, or that
  14-40  directly dispenses cash, coins, or tokens.
  14-41        Sec. 466.025.  REPORTS OF TICKETS SOLD AND PRIZES AWARDED.
  14-42  For each lottery game, after the last date on which a prize may be
  14-43  claimed under Section 466.408(d), the director shall prepare a
  14-44  report that shows the total number of tickets sold and the number
  14-45  and amounts of prizes awarded in the game.  The report must be
  14-46  available for public inspection.
  14-47           (Sections 466.026-466.100 reserved for expansion
  14-48                SUBCHAPTER C.  PROCUREMENT; ADVERTISING
  14-49        Sec. 466.101.  PROCUREMENT PROCEDURES.  (a)  The director may
  14-50  establish procedures for the purchase or lease of facilities,
  14-51  goods, and services and make any purchases, leases, or contracts
  14-52  that are necessary for carrying out the purposes of this chapter.
  14-53  The procedures must, as determined feasible and appropriate by the
  14-54  director, promote competition to the maximum extent possible.
  14-55        (b)  In all procurement decisions, the director shall take
  14-56  into account the particularly sensitive nature of the lottery and
  14-57  shall act to promote and ensure integrity, security, honesty, and
  14-58  fairness in the operation and administration of the lottery and the
  14-59  objective of producing revenues for the state treasury.
  14-60        (c)  The procurement procedures adopted by the director must,
  14-61  as determined feasible and appropriate by the director, afford any
  14-62  party who is aggrieved by the terms of a solicitation or the award
  14-63  of a contract an opportunity to protest the director's action to
  14-64  the comptroller.  The protest procedures must provide for an
  14-65  expedient resolution of the protest in order to avoid substantially
  14-66  delaying a solicitation or contract award that is necessary for the
  14-67  timely implementation of a lottery game.  A protest must be in
  14-68  writing and be filed with the comptroller not later than 72 hours
  14-69  after receipt of notice of the director's action.
  14-70        (d)  A party who is aggrieved by the comptroller's resolution
   15-1  of a protest under Subsection (c) may file an action in the
   15-2  district court of Travis County.  The court shall give preference
   15-3  to hearings and trials of actions under this section.  If the party
   15-4  filing the action seeks to enjoin the implementation of a
   15-5  solicitation or contract, the party shall post a bond that is
   15-6  payable to the state if the party does not prevail in the appeal,
   15-7  and is in an amount sufficient to compensate the state for the
   15-8  revenue that would be lost due to the delay in lottery operations.
   15-9        (e)  The comptroller shall require any person seeking to
  15-10  contract for goods or services relating to the implementation and
  15-11  administration of this chapter to submit to competitive bidding
  15-12  procedures in accordance with rules adopted by the comptroller.
  15-13  The procedures must be for the purpose of ensuring fairness and
  15-14  integrity.
  15-15        Sec. 466.102.  LIQUIDATED DAMAGES; PERFORMANCE BOND.  A
  15-16  contract for the acquisition or provision of facilities, supplies,
  15-17  equipment, materials, or services related to the operation of the
  15-18  lottery must provide for liquidated damages and a performance bond
  15-19  in an amount equal to the director's best available estimate of the
  15-20  revenue that would be lost if the contractor fails to meet
  15-21  deadlines specified in the contract.
  15-22        Sec. 466.103.  PROHIBITED CONTRACTS.  The director may not
  15-23  award a contract for the purchase or lease of facilities, goods, or
  15-24  services related to lottery operations to a person who would be
  15-25  denied a license as a sales agent under Section 466.155.
  15-26        Sec. 466.104.  ASSISTANCE OF GENERAL SERVICES COMMISSION.  On
  15-27  request of the director, the General Services Commission shall
  15-28  assist the director in:
  15-29              (1)  acquiring facilities, supplies, materials,
  15-30  equipment, and services under the State Purchasing and General
  15-31  Services Act (Article 601b, Vernon's Texas Civil Statutes); or
  15-32              (2)  establishing procedures for the director's
  15-33  accelerated acquisition of facilities, supplies, materials,
  15-34  equipment, and services for the operation of the lottery.
  15-35        Sec. 466.105.  APPLICABILITY OF OTHER LAW.  (a)  A contract
  15-36  for the acquisition or provision of facilities, supplies,
  15-37  equipment, materials, or services related to the operation of the
  15-38  lottery is not subject to the Information Resources Management Act
  15-39  (Article 4413(32j), Revised Statutes).
  15-40        (b)  Notwithstanding the provisions of the Public Utility
  15-41  Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), the
  15-42  comptroller may negotiate rates and execute contracts with
  15-43  telecommunications service providers for the interexchange services
  15-44  necessary for the operation of the lottery.  The comptroller may
  15-45  acquire transmission facilities by lease, purchase, or
  15-46  lease-purchase.  The acquisition of transmission facilities must be
  15-47  done on a competitive bid basis if possible.
  15-48        Sec. 466.106.  PREFERENCE FOR TEXAS BUSINESSES.  (a)  In all
  15-49  contracts for lottery equipment, supplies, services, and
  15-50  advertising, the division and each lottery operator shall give
  15-51  preference to equipment or supplies produced in this state or
  15-52  services or advertising offered by bidders from this state, the
  15-53  cost to the state and quality being equal.
  15-54        (b)  If equipment or supplies produced in this state or
  15-55  services or advertising offered by a bidder from this state are not
  15-56  equal in cost and quality, then equipment or supplies produced in
  15-57  another state or services or advertising offered by a bidder from
  15-58  another state shall be given preference over foreign equipment,
  15-59  supplies, services, or advertising.
  15-60        Sec. 466.107.  MINORITY BUSINESSES.  (a)  The director, the
  15-61  division, and each lottery operator shall take positive steps to:
  15-62              (1)  inform minority businesses of opportunities to:
  15-63                    (A)  provide lottery equipment and supplies to
  15-64  the division;
  15-65                    (B)  provide services, including advertising, to
  15-66  the division for the operation of the lottery; or
  15-67                    (C)  obtain a license to sell lottery tickets;
  15-68              (2)  waive or modify bond requirements, if feasible;
  15-69              (3)  award contracts for lottery equipment or supplies
  15-70  to minority businesses when possible;
   16-1              (4)  award contracts for lottery services, including
   16-2  advertising, to minority businesses when possible;
   16-3              (5)  license minority businesses as sales agents;
   16-4              (6)  monitor the effectiveness of the efforts to
   16-5  increase the ability of minority businesses to do business with the
   16-6  division; and
   16-7              (7)  require all bidders or contractors, when
   16-8  appropriate, to include specific plans or arrangements to use
   16-9  subcontracts with minority businesses.
  16-10        (b)  In this section:
  16-11              (1)  "Minority business" means a business entity at
  16-12  least 51 percent of which is owned by minority group members or, in
  16-13  the case of a corporation, at least 51 percent of the shares of
  16-14  which are owned by minority group members, and that:
  16-15                    (A)  is managed and, in daily operations, is
  16-16  controlled by minority group members; and
  16-17                    (B)  is a domestic business entity with a home or
  16-18  branch office located in this state and is not a branch or
  16-19  subsidiary of a foreign corporation, firm, or other business
  16-20  entity.
  16-21              (2)  "Minority group members" includes:
  16-22                    (A)  African Americans;
  16-23                    (B)  American Indians;
  16-24                    (C)  Asian Americans; and
  16-25                    (D)  Mexican Americans and other Americans of
  16-26  Hispanic origin.
  16-27        (c)  The comptroller shall annually report to the legislature
  16-28  and the governor on the level of minority business participation as
  16-29  pertains to both the division's contracts and the licensing of
  16-30  sales agents.  The report must include recommendations for the
  16-31  improvement of minority business opportunities in lottery-related
  16-32  business.
  16-33        Sec. 466.108.  TELEVISION CONTRACTS.  If the drawing or
  16-34  selection of winning tickets is televised under a contract with the
  16-35  division, the contract must be awarded by competitive bid.  The
  16-36  comptroller shall adopt rules governing the competitive bidding
  16-37  process.  Money received under the contract shall be deposited in
  16-38  the state lottery account established under Section 466.355.
  16-39        Sec. 466.109.  PUBLICITY OF INDIVIDUALS PROHIBITED.   (a)  A
  16-40  state officer or employee, including the comptroller, the director,
  16-41  or an officer or employee of the comptroller's office or the
  16-42  division, may not appear in an advertisement or promotion for the
  16-43  lottery that is sponsored by the comptroller's office or the
  16-44  division or in a televised lottery drawing.  An advertisement or
  16-45  promotion for the lottery may not contain the likeness or name of a
  16-46  state officer or employee, including the comptroller, the director,
  16-47  or an officer or employee of the comptroller's office or the
  16-48  division.
  16-49        (b)  In connection with providing security for the lottery,
  16-50  this section does not prohibit a security officer or investigator
  16-51  employed by the division from appearing in a televised lottery
  16-52  drawing or other promotion for the lottery that is sponsored by the
  16-53  comptroller's office or the division.
  16-54        (c)  Notwithstanding this section, the director may designate
  16-55  an employee of the division to participate in a promotional event,
  16-56  the purpose of which is to award a prize.
  16-57        Sec. 466.110.  PROHIBITED ADVERTISEMENTS.  The legislature
  16-58  intends that advertisements or promotions sponsored by the
  16-59  comptroller's office or the division for the lottery not be of a
  16-60  nature that unduly influences any person to purchase a lottery
  16-61  ticket or number.
  16-62           (Sections 466.111-466.150 reserved for expansion
  16-63               SUBCHAPTER D.  LICENSING OF SALES AGENTS
  16-64        Sec. 466.151.  LICENSE REQUIRED.  (a)  If the director
  16-65  authorizes a person who is not an employee of the division to sell
  16-66  tickets, the person must be licensed as a sales agent by the
  16-67  division.
  16-68        (b)  The director may establish classes of licenses necessary
  16-69  to regulate and administer the quantity and type of lottery games
  16-70  provided at each licensed location.
   17-1        (c)  The director shall attempt to license minority
   17-2  businesses as sales agents in at least 20 percent of the licenses
   17-3  issued.  Implementation of this subsection must be consistent with
   17-4  Sections 466.152-466.154 and the rest of this section.
   17-5        (d)  The director may license as a sales agent each person
   17-6  the director believes will best serve the public convenience.  The
   17-7  director may not issue a license to a person to engage in business
   17-8  exclusively as a sales agent.  A license may not be transferred or
   17-9  assigned to any other person or location.
  17-10        (e)  The director may issue a license to a person only if the
  17-11  director finds that the person's experience, character, and general
  17-12  fitness are such that the person's participation as a sales agent
  17-13  will not detract from the integrity, security, honesty, and
  17-14  fairness of the operation of the lottery.
  17-15        Sec. 466.152.  LICENSE APPLICATION; FEE.  (a)  An applicant
  17-16  for a license under this subchapter must apply to the division
  17-17  under rules adopted by the comptroller, provide information
  17-18  necessary to determine the applicant's eligibility for a license
  17-19  under Section 466.155, and provide other information considered
  17-20  necessary by the comptroller.
  17-21        (b)  The applicant must include an application fee with each
  17-22  application.  The director shall set the application fee in an
  17-23  amount that is at least sufficient to cover the costs incurred by
  17-24  the division and by the Department of Public Safety to process the
  17-25  application.  The director shall determine from information
  17-26  provided by the department the amount required for costs incurred
  17-27  by the department and shall allocate those amounts to the
  17-28  department at least monthly.  If the director denies an application
  17-29  for a license based on a factor listed in Section 466.154, the
  17-30  director shall refund one-half of the application fee to the
  17-31  applicant.  If the director denies an application based on another
  17-32  factor, the director may not refund any part of the application
  17-33  fee.
  17-34        (c)  Applications for licenses must be available for public
  17-35  inspection during regular office hours.
  17-36        (d)  A separate license is required for each location at
  17-37  which tickets are to be sold.  A person who desires to operate more
  17-38  than one location to sell tickets must submit a separate
  17-39  application for each location.
  17-40        (e)  Fees collected under this section shall be deposited in
  17-41  the state treasury to the credit of the state lottery account.
  17-42        Sec. 466.153.  CHANGE IN APPLICATION INFORMATION.
  17-43  (a)  Except as provided by Subsection (b), an applicant or sales
  17-44  agent shall notify the director of any change in the information in
  17-45  the applicant's or sales agent's most recent application for a
  17-46  license or renewal of a license.  The applicant or sales agent
  17-47  shall notify the director of the change in the information not
  17-48  later than the 10th day after the date of the change.
  17-49        (b)  A corporate applicant or sales agent is not required to
  17-50  notify the director under Subsection (a) of a transfer of less than
  17-51  10 percent of the corporate stock unless the transfer results in a
  17-52  shareholder who previously held 10 percent or less of the stock
  17-53  holding more than 10 percent of the stock.
  17-54        Sec. 466.154.  RULES.  The comptroller shall adopt rules
  17-55  under which, before issuing a license to an applicant, the director
  17-56  shall consider:
  17-57              (1)  the financial responsibility and security of the
  17-58  applicant and the business or activity in which the applicant is
  17-59  engaged;
  17-60              (2)  the public accessibility of the applicant's place
  17-61  of business or activity;
  17-62              (3)  the sufficiency of existing sales agents to serve
  17-63  the public convenience;
  17-64              (4)  whether individuals under 18 years of age
  17-65  constitute a majority of the applicant's customers or as customers
  17-66  provide a majority of the applicant's sales volume;
  17-67              (5)  the volume of expected sales; and
  17-68              (6)  any other factor that the director considers
  17-69  appropriate.
  17-70        Sec. 466.155.  DENIAL OF APPLICATION OR SUSPENSION OR
   18-1  REVOCATION OF LICENSE.  (a)  After a hearing, the director shall
   18-2  deny an application for a license or the comptroller shall suspend
   18-3  or revoke a license if the director or comptroller, as applicable,
   18-4  finds that the applicant or sales agent:
   18-5              (1)  is an individual who:
   18-6                    (A)  has been convicted of a felony, criminal
   18-7  fraud, gambling or a gambling-related offense, or a misdemeanor
   18-8  involving moral turpitude, if less than 10 years has elapsed since
   18-9  the termination of the sentence, parole, mandatory supervision, or
  18-10  probation served for the offense;
  18-11                    (B)  is or has been a professional gambler; or
  18-12                    (C)  is married to or related in the first degree
  18-13  of consanguinity or affinity to an individual:
  18-14                          (i)  described in Paragraph (A) or (B); or
  18-15                          (ii)  who is currently delinquent in the
  18-16  payment of any state tax;
  18-17              (2)  is not an individual, and an individual described
  18-18  in Subdivision (1):
  18-19                    (A)  is an officer or director of the applicant
  18-20  or sales agent;
  18-21                    (B)  holds more than 10 percent of the stock in
  18-22  the applicant or sales agent;
  18-23                    (C)  holds an equitable interest greater than 10
  18-24  percent in the applicant or sales agent;
  18-25                    (D)  is a creditor of the applicant or sales
  18-26  agent who holds more than 10 percent of the applicant's or sales
  18-27  agent's outstanding debt;
  18-28                    (E)  is the owner or lessee of a business that
  18-29  the applicant or sales agent conducts or through which the
  18-30  applicant will conduct a ticket sales agency;
  18-31                    (F)  shares or will share in the profits, other
  18-32  than stock dividends, of the applicant or sales agent;
  18-33                    (G)  participates in managing the affairs of the
  18-34  applicant or sales agent; or
  18-35                    (H)  is an employee of the applicant or sales
  18-36  agent who is or will be involved in:
  18-37                          (i)  selling tickets; or
  18-38                          (ii)  handling money from the sale of
  18-39  tickets;
  18-40              (3)  is currently delinquent in the payment of any
  18-41  state tax;
  18-42              (4)  is a person whose location for the sales agency
  18-43  is:
  18-44                    (A)  a racetrack at which wagering is authorized
  18-45  under the Texas Racing Act (Article 179e, Vernon's Texas Civil
  18-46  Statutes);
  18-47                    (B)  a location licensed for games of bingo under
  18-48  the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
  18-49  Statutes);
  18-50                    (C)  on land that is owned by:
  18-51                          (i)  this state; or
  18-52                          (ii)  a political subdivision of this
  18-53  state, other than land used as a mass transportation facility that
  18-54  is used by commercial carriers; or
  18-55                    (D)  a location for which a person holds a wine
  18-56  and beer retailer's permit, mixed beverage permit, mixed beverage
  18-57  late hours permit, private club registration permit, or private
  18-58  club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
  18-59  Alcoholic Beverage Code; or
  18-60              (5)  has violated this chapter or a rule adopted under
  18-61  this chapter.
  18-62        (b)  If the director proposes to deny an application for a
  18-63  license or the comptroller proposes to suspend or revoke a license
  18-64  under this section, the applicant or sales agent is entitled to
  18-65  written notice of the time and place of the hearing.  A notice may
  18-66  be served on an applicant or sales agent personally or sent by
  18-67  certified or registered mail, return receipt requested, to the
  18-68  person's mailing address as it appears on the division's records.
  18-69  A notice must be served or mailed not later than the 20th day
  18-70  before the date of the hearing.
   19-1        (c)  At a hearing, an applicant or sales agent must show by a
   19-2  preponderance of the evidence why the application should not be
   19-3  denied or the license suspended or revoked.
   19-4        (d)  The director shall give an applicant or sales agent
   19-5  written notice of a denial of an application or a suspension or
   19-6  revocation of a license.
   19-7        (e)  The director may not issue a license to a person who has
   19-8  previously had a license under this chapter revoked unless the
   19-9  director is satisfied the person will comply with this chapter and
  19-10  the rules adopted under this chapter.   The director may prescribe
  19-11  the terms under which a suspended license will be reissued.
  19-12        (f)  The director may not issue a license to an applicant who
  19-13  fails to certify to the director the applicant's compliance with
  19-14  the federal Americans with Disabilities Act of 1990 (42 U.S.C.
  19-15  Section 12101 et seq.).
  19-16        Sec. 466.156.  BOND; INSURANCE.  (a)  Each sales agent shall
  19-17  post a cash bond, surety bond, letter of credit, certificate of
  19-18  deposit, or other security approved by the director.  The amount of
  19-19  the security shall be determined by the director and must reflect
  19-20  the possible losses to the state from the operation of the sales
  19-21  agent.
  19-22        (b)  The director may also require a sales agent to maintain
  19-23  insurance if necessary to protect the interests of the state.
  19-24        Sec. 466.157.  DISPLAY OF LICENSE.  As prescribed by division
  19-25  rules, each sales agent shall prominently display the license in
  19-26  each place of business or activity at which the sales agent sells
  19-27  tickets.
  19-28        Sec. 466.158.  EXPIRATION OF LICENSE; RENEWAL.  (a)  Unless
  19-29  suspended or revoked, a license expires on the date specified in
  19-30  the license, which may not be later than the second anniversary of
  19-31  its date of issuance.
  19-32        (b)  The comptroller shall adopt rules for the renewal of
  19-33  licenses.  The director shall set the fee for a renewal of a
  19-34  license in an amount at least sufficient to cover the cost of
  19-35  processing the renewal.
  19-36        (c)  A sales agent must file a renewal application and pay
  19-37  the renewal fee before the sales agent's license expires.
  19-38        Sec. 466.159.  DEATH, DISSOLUTION, OR BANKRUPTCY OF SALES
  19-39  AGENT.  (a)  A license issued under this chapter expires on:
  19-40              (1)  the death of a sales agent who is an individual;
  19-41              (2)  the dissolution of a sales agent that is not an
  19-42  individual; or
  19-43              (3)  the bankruptcy or receivership of a sales agent.
  19-44        (b)  If a license expires under Subsection (a) and the sales
  19-45  agent's successor in interest desires to operate the sales agency,
  19-46  the successor shall file an application for an extended license not
  19-47  later than the 30th day after the date the license expired.  The
  19-48  application must state the basis for the applicant's claim to be
  19-49  the successor in interest to the sales agent and must contain a
  19-50  certification that the applicant would be eligible for a license
  19-51  under Section 466.155.  The director shall permit a qualified
  19-52  applicant to operate under an extended license for not more than
  19-53  one year or until a new license is issued to the applicant,
  19-54  whichever occurs first.
  19-55        Sec. 466.160.  SUMMARY SUSPENSION OF LICENSE.  (a)  The
  19-56  comptroller may suspend a sales agent's license summarily without
  19-57  notice or hearing if the comptroller finds that the action is
  19-58  necessary to maintain the integrity, security, honesty, or fairness
  19-59  of the operation or administration of the lottery or to prevent
  19-60  financial loss to the state and:
  19-61              (1)  the sales agent fails to deposit money received
  19-62  from ticket sales under Section 466.351;
  19-63              (2)  an event occurs that would render the sales agent
  19-64  ineligible for a license under Section 466.155;
  19-65              (3)  the sales agent refuses to permit the director,
  19-66  the comptroller, or the state auditor to examine the agent's books,
  19-67  records, papers, or other objects under Section 466.017(b); or
  19-68              (4)  the director learns the sales agent has failed to
  19-69  disclose information that would, if disclosed, render the sales
  19-70  agent ineligible for a license under Section 466.155.
   20-1        (b)  The comptroller may summarily suspend a sales agent's
   20-2  license if proceedings for a preliminary hearing before the
   20-3  comptroller or the comptroller's representative are initiated
   20-4  simultaneously with the summary suspension.  The preliminary
   20-5  hearing shall be set for a date not later than 10 days after the
   20-6  date of the summary suspension, unless the parties agree to a later
   20-7  date.
   20-8        (c)  At the preliminary hearing, the sales agent must show
   20-9  cause why the license should not remain suspended pending a final
  20-10  hearing on suspension or revocation.  The Administrative Procedure
  20-11  and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  20-12  Statutes) does not apply to the comptroller in the administration
  20-13  and enforcement of the summary suspension of a license under this
  20-14  section.  The rules governing a hearing on any other license
  20-15  suspension or revocation under this chapter govern a final
  20-16  administrative hearing under this subsection.
  20-17        (d)  To initiate a proceeding to summarily suspend a sales
  20-18  agent's license, the comptroller must serve notice to the sales
  20-19  agent informing the agent of the right to a preliminary hearing
  20-20  before the comptroller or the comptroller's representative and of
  20-21  the time and place of the preliminary hearing.  The notice must be
  20-22  personally served on the sales agent or an officer, employee, or
  20-23  agent of the sales agent or sent by certified or registered mail,
  20-24  return receipt requested, to the sales agent's mailing address as
  20-25  it appears on the division's records.  The notice must state the
  20-26  alleged violations that constitute grounds for summary suspension.
  20-27  The suspension is effective at the time the notice is served.  If
  20-28  notice is served in person, the sales agent shall immediately
  20-29  surrender the license to the comptroller or to the comptroller's
  20-30  representative.  If notice is served by mail, the sales agent shall
  20-31  immediately return the license to the comptroller.  If the sales
  20-32  agent uses an on-line electronic terminal to sell tickets, the
  20-33  director or a lottery operator on the instructions of the director
  20-34  may terminate the connection of the terminal to the division's
  20-35  lottery computer at the time the proceeding to summarily suspend
  20-36  the license is initiated.
  20-37           (Sections 466.161-466.200 reserved for expansion
  20-38            SUBCHAPTER E.  CRIMINAL HISTORY INVESTIGATIONS
  20-39        Sec. 466.201.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION.
  20-40  (a)  The comptroller is entitled to conduct an investigation of and
  20-41  is entitled to obtain criminal history record information
  20-42  maintained by the Department of Public Safety, the Federal Bureau
  20-43  of Investigation Identification Division, or another law
  20-44  enforcement agency to assist in the investigation of:
  20-45              (1)  a sales agent or an applicant for a sales agent
  20-46  license;
  20-47              (2)  a person required to be named in a license
  20-48  application;
  20-49              (3)  a lottery operator or prospective lottery
  20-50  operator;
  20-51              (4)  an employee of a lottery operator or prospective
  20-52  lottery operator, if the employee is or will be directly involved
  20-53  in lottery operations;
  20-54              (5)  a person who manufactures or distributes lottery
  20-55  equipment or supplies, or a representative of a person who
  20-56  manufactures or distributes lottery equipment or supplies offered
  20-57  to the lottery;
  20-58              (6)  a person who has submitted a written bid or
  20-59  proposal to the division in connection with the procurement of
  20-60  goods or services by the division, if the amount of the bid or
  20-61  proposal exceeds $500;
  20-62              (7)  an employee or other person who works for or will
  20-63  work for a sales agent or an applicant for a sales agent license;
  20-64              (8)  a person who proposes to enter into or who has a
  20-65  contract with the division to supply goods or services to the
  20-66  division; or
  20-67              (9)  if a person described in Subdivisions (1) through
  20-68  (8) is not an individual, an individual who:
  20-69                    (A)  is an officer or director of the person;
  20-70                    (B)  holds more than 10 percent of the stock in
   21-1  the person;
   21-2                    (C)  holds an equitable interest greater than 10
   21-3  percent in the person;
   21-4                    (D)  is a creditor of the person who holds more
   21-5  than 10 percent of the person's outstanding debt;
   21-6                    (E)  is the owner or lessee of a business that
   21-7  the person conducts or through which the person will conduct
   21-8  lottery-related activities;
   21-9                    (F)  shares or will share in the profits, other
  21-10  than stock dividends, of the person;
  21-11                    (G)  participates in managing the affairs of the
  21-12  person; or
  21-13                    (H)  is an employee of the person who is or will
  21-14  be involved in:
  21-15                          (i)  selling tickets; or
  21-16                          (ii)  handling money from the sale of
  21-17  tickets.
  21-18        (b)  The comptroller shall conduct an investigation of and
  21-19  obtain criminal history record information maintained by the
  21-20  Department of Public Safety, the Federal Bureau of Investigation
  21-21  Identification Division, or another law enforcement agency to
  21-22  assist in the investigation of:
  21-23              (1)  the director or a prospective director of the
  21-24  division; or
  21-25              (2)  an employee or prospective employee of the
  21-26  division.
  21-27        (c)  Not later than the first anniversary after the date of
  21-28  each renewal, the comptroller shall obtain criminal history record
  21-29  information maintained by the Department of Public Safety on a
  21-30  sales agent whose license is renewed under Section 466.158.
  21-31        Sec. 466.202.  FINGERPRINTS.  (a)  The director may discharge
  21-32  from employment an employee of the division who fails to provide a
  21-33  complete legible set of fingerprints on request.  The director may
  21-34  refuse to consider a prospective employee of the division who fails
  21-35  to provide a complete legible set of fingerprints on request.
  21-36        (b)  The director may deny an application for a license or
  21-37  the comptroller may suspend or revoke a license if the applicant or
  21-38  sales agent fails on request to provide a complete legible set of
  21-39  fingerprints of:
  21-40              (1)  a person required to be named in a license
  21-41  application; or
  21-42              (2)  an employee or other person who works or will work
  21-43  for the applicant or sales agent, if the person:
  21-44                    (A)  is or will be involved in the sale of
  21-45  tickets; or
  21-46                    (B)  handles or will handle money from the sale
  21-47  of tickets.
  21-48        (c)  All fingerprints submitted to the Department of Public
  21-49  Safety must be on a form prescribed by the department.
  21-50        Sec. 466.203.  DEPARTMENT OF PUBLIC SAFETY ASSISTANCE; COSTS
  21-51  OF INVESTIGATION.  (a)  The director may request the cooperation of
  21-52  the Department of Public Safety to perform a background
  21-53  investigation of a person listed in Section 466.201(a) or (b).  The
  21-54  director shall reimburse the department for the actual cost of an
  21-55  investigation.
  21-56        (b)  The director may require a person who is subject to
  21-57  investigation to pay all costs of the investigation and to provide
  21-58  any information, including fingerprints, necessary to carry out the
  21-59  investigation or facilitate access to state or federal criminal
  21-60  history record information.  Payments made to the director under
  21-61  this subsection shall be deposited in the general revenue fund and
  21-62  may be used to reimburse the Department of Public Safety for the
  21-63  actual costs of an investigation.
  21-64        (c)  Unless otherwise prohibited by law, the Department of
  21-65  Public Safety may retain any record or information submitted to it
  21-66  under this section.  The department shall notify the director of
  21-67  any change in information provided to the director when the
  21-68  department learns of the change.
  21-69        Sec. 466.204.  ACCESS TO INTERNAL REVENUE SERVICE
  21-70  INFORMATION.  The director may obtain information relating to a
   22-1  person's qualification for licensing, employment, or contracting
   22-2  under this chapter from the Internal Revenue Service under a
   22-3  contract between the comptroller and the Internal Revenue Service
   22-4  on:
   22-5              (1)  a sales agent or an applicant for a sales agent
   22-6  license;
   22-7              (2)  an employee or prospective employee of the
   22-8  division;
   22-9              (3)  a person required to be named in a license
  22-10  application;
  22-11              (4)  a lottery operator or prospective lottery
  22-12  operator;
  22-13              (5)  an employee of a lottery operator or prospective
  22-14  lottery operator, if the employee is or will be directly involved
  22-15  in lottery operations;
  22-16              (6)  a person who manufactures or distributes lottery
  22-17  equipment or supplies, or a representative of a person who
  22-18  manufactures or distributes lottery equipment or supplies offered
  22-19  to the lottery;
  22-20              (7)  a person who has submitted a written bid or
  22-21  proposal to the division in connection with the procurement of
  22-22  goods or services by the division;
  22-23              (8)  an employee or other person who works for or will
  22-24  work for a sales agent or an applicant for a sales agent license;
  22-25  or
  22-26              (9)  a person who proposes to enter into or who has a
  22-27  contract with the division to supply goods or services to the
  22-28  division.
  22-29        Sec. 466.205.  CONFIDENTIAL INFORMATION; OFFENSE.  (a)  All
  22-30  criminal history record information received by the director is
  22-31  privileged information and is for the exclusive use of the director
  22-32  and employees of the division designated by the director.  Except
  22-33  on court order or as provided by Subsection (c), the information
  22-34  may not be released or otherwise disclosed to any other person or
  22-35  agency.
  22-36        (b)  All information received by the director from the
  22-37  Internal Revenue Service is confidential and may only be used as
  22-38  provided by the contract between the comptroller and the Internal
  22-39  Revenue Service under which the information was obtained.
  22-40        (c)  The director or an employee of the division may not
  22-41  provide any person being investigated under this subchapter with a
  22-42  copy of the person's criminal history record obtained from the
  22-43  Department of Public Safety, the Federal Bureau of Investigation
  22-44  Identification Division, or another law enforcement agency.  This
  22-45  subsection does not prevent the director from disclosing to the
  22-46  person the dates and places of arrests, offenses, and dispositions
  22-47  contained in the criminal history records.
  22-48        (d)  The comptroller shall adopt necessary rules governing
  22-49  the custody and use of information obtained under this subchapter.
  22-50        (e)  A person commits an offense if the person releases or
  22-51  discloses information received by the comptroller under this
  22-52  subchapter except on court order or as provided by Subsection (c).
  22-53  An offense under this subsection is a Class A misdemeanor.
  22-54           (Sections 466.206-466.250 reserved for expansion
  22-55                  SUBCHAPTER F.  REGULATION OF GAMES
  22-56        Sec. 466.251.  TICKETS.  (a)  The director shall prescribe
  22-57  the form of tickets.
  22-58        (b)  The toll-free "800" telephone number established by the
  22-59  Texas Commission on Alcohol and Drug Abuse under Section 461.018,
  22-60  Health and Safety Code, must be printed on each ticket.
  22-61        (c)  The overall estimated odds of winning a prize in a
  22-62  particular lottery game must be printed on each ticket and
  22-63  prominently displayed in association with the sale of lottery
  22-64  products.  The estimate must be based on reasonable projections and
  22-65  past experience.
  22-66        Sec. 466.252.  PURCHASE OF TICKET AGREEMENT TO ABIDE BY
  22-67  RULES.  (a)  By purchasing a ticket in a particular lottery game, a
  22-68  player agrees to abide by and be bound by the division's rules,
  22-69  including the rules applicable to the particular lottery game
  22-70  involved.  The player also acknowledges that the determination of
   23-1  whether the player is a valid winner is subject to:
   23-2              (1)  the division's rules and claims procedures,
   23-3  including those developed for the particular lottery game involved;
   23-4  and
   23-5              (2)  any validation tests established by the division
   23-6  for the particular lottery game involved.
   23-7        (b)  If the lottery uses tickets, an abbreviated form of the
   23-8  rules or a reference to the rules may appear on the tickets.
   23-9        Sec. 466.253.  SALE OF TICKET TO PERSON YOUNGER THAN 18
  23-10  YEARS.  (a)  A sales agent or an employee of a sales agent may not
  23-11  intentionally or knowingly sell or offer to sell a ticket to an
  23-12  individual that the person knows is younger than 18 years of age.
  23-13        (b)  A person 18 years of age or older may purchase a ticket
  23-14  to give as a gift to another person, including an individual
  23-15  younger than 18 years of age.  If an individual younger than 18
  23-16  years of age directly purchases a ticket, the individual is not
  23-17  eligible to receive a prize, and the prize otherwise payable on the
  23-18  ticket is treated as an unclaimed prize as provided by Section
  23-19  466.408.
  23-20        Sec. 466.254.  SALE OF TICKET OR PAYMENT OF PRIZE TO CERTAIN
  23-21  PERSONS.  A person may not sell a ticket or pay a lottery prize to
  23-22  another person that the person knows is:
  23-23              (1)  a member, officer, or employee of a person that
  23-24  has a contract with the division to sell or lease goods or services
  23-25  used in the lottery;
  23-26              (2)  a member, officer, or employee of a lottery
  23-27  operator;
  23-28              (3)  an officer or employee of the comptroller; or
  23-29              (4)  a spouse, child, brother, sister, or parent
  23-30  residing as a member of the same household in the principal place
  23-31  of residence of a person described by Subdivision (1), (2), or (3).
  23-32        Sec. 466.255.  CERTAIN TICKET PURCHASES PROHIBITED.  (a)  A
  23-33  person may not purchase a ticket:
  23-34              (1)  through the use of:
  23-35                    (A)  a food stamp coupon issued under the food
  23-36  stamp program administered under Chapter 33, Human Resources Code;
  23-37  or
  23-38                    (B)  a credit card or a debit card;
  23-39              (2)  over the telephone; or
  23-40              (3)  by mail-order sales.
  23-41        (b)  A person may not pay for a ticket with the proceeds of a
  23-42  check issued as a payment under the Aid to Families with Dependent
  23-43  Children program administered under Chapter 31, Human Resources
  23-44  Code.
  23-45           (Sections 466.256-466.300 reserved for expansion
  23-46                        SUBCHAPTER G.  OFFENSES
  23-47        Sec. 466.301.  DEFINITIONS.  In this subchapter:
  23-48              (1)  "Communicate directly with" has the meaning
  23-49  assigned by Section 305.002.
  23-50              (2)  "Gift" includes a gratuity, trip, meal, or other
  23-51  thing of value for which the recipient does not compensate the
  23-52  person making the gift.
  23-53              (3)  "Legislation" has the meaning assigned by Section
  23-54  305.002.
  23-55              (4)  "Member of the legislative branch" has the meaning
  23-56  assigned by Section 305.002.
  23-57              (5)  "Participated" means to have taken action as an
  23-58  officer or employee through decision, approval, disapproval,
  23-59  recommendation, giving advice, or similar action.
  23-60              (6)  "Particular matter" includes an investigation, an
  23-61  application, a request for a ruling or determination, a license
  23-62  proceeding, rulemaking, a contract, a controversy, a claim, a
  23-63  charge, an accusation, an arrest, or a judicial or other
  23-64  proceeding.
  23-65              (7)  "Person that has a significant financial interest
  23-66  in the lottery" means:
  23-67                    (A)  a person that manufactures, distributes,
  23-68  sells, or produces lottery equipment, supplies, services, or
  23-69  advertising;
  23-70                    (B)  a person that has made a bid to operate the
   24-1  lottery in the preceding two years or that intends to make a bid to
   24-2  operate the lottery; or
   24-3                    (C)  a sales agent.
   24-4              (8)  "Political committee" has the meaning assigned by
   24-5  Section 251.001, Election Code.
   24-6              (9)  "Political contribution" has the meaning assigned
   24-7  by Section 251.001, Election Code.
   24-8        Sec. 466.302.  SALE OF TICKET AT PRICE GREATER THAN FIXED
   24-9  PRICE.  (a)  A person commits an offense if the person
  24-10  intentionally or knowingly sells a ticket at a price the person
  24-11  knows is greater than that fixed by the division or by the lottery
  24-12  operator authorized to set that price.
  24-13        (b)  An offense under this section is a Class A misdemeanor.
  24-14        Sec. 466.303.  SALE OF TICKET BY UNAUTHORIZED PERSON.
  24-15  (a)  Except as provided by Subsection (b), a person who is not a
  24-16  sales agent or an employee of a sales agent commits an offense if
  24-17  the person intentionally or knowingly sells a ticket.
  24-18        (b)  A lottery operator may sell tickets to a sales agent.  A
  24-19  person who is not a sales agent may distribute tickets as premiums
  24-20  to customers, employees, or other persons who deal with the person
  24-21  if no purchase or service is required to entitle the recipient to
  24-22  the ticket.
  24-23        (c)  An offense under this section is a felony of the third
  24-24  degree.
  24-25        Sec. 466.304.  SALE OF TICKET AT UNAUTHORIZED LOCATION.
  24-26  (a)  A person commits an offense if the person sells a ticket at a
  24-27  location other than the location of a sales agency.
  24-28        (b)  An offense under this section is a Class A misdemeanor.
  24-29        Sec. 466.305.  SALE OF TICKET ON CREDIT.  (a)  A sales agent
  24-30  or an employee of a sales agent commits an offense if the person
  24-31  intentionally or knowingly sells a ticket to another person by
  24-32  extending credit or lending money to the person to enable the
  24-33  person to  purchase the ticket.
  24-34        (b)  An offense under this section is a Class C misdemeanor.
  24-35        Sec. 466.306.  FORGERY; ALTERATION OF TICKET.  (a)  A person
  24-36  commits an offense if the person intentionally or knowingly alters
  24-37  or forges a ticket.
  24-38        (b)  An offense under this section is a felony of the third
  24-39  degree unless it is shown on the trial of the offense that the
  24-40  prize alleged to be authorized by the ticket forged or altered is
  24-41  greater than $10,000, in which event the offense is a felony of the
  24-42  second degree.
  24-43        Sec. 466.307.  INFLUENCING SELECTION OF WINNER.  (a)  A
  24-44  person commits an offense if the person intentionally or knowingly
  24-45  influences or attempts to influence the selection of the winner of
  24-46  a lottery game.
  24-47        (b)  An offense under this section is a felony of the third
  24-48  degree unless it is shown on the trial of the offense that a prize
  24-49  in the game influenced or attempted to be influenced is greater
  24-50  than $10,000, in which event the offense is a felony of the second
  24-51  degree.
  24-52        Sec. 466.308.  CLAIMING LOTTERY PRIZE BY FRAUD.  (a)  A
  24-53  person commits an offense if the person intentionally or knowingly:
  24-54              (1)  claims a lottery prize or a share of a lottery
  24-55  prize by means of fraud, deceit, or misrepresentation; or
  24-56              (2)  aids or agrees to aid another person or persons to
  24-57  claim a lottery prize or a share of a lottery prize by means of
  24-58  fraud, deceit, or misrepresentation.
  24-59        (b)  An offense under this section is a Class A misdemeanor
  24-60  unless it is shown on the trial of the offense that:
  24-61              (1)  the amount claimed or attempted to be claimed is
  24-62  greater than $200 but not more than $10,000, in which event the
  24-63  offense is a felony of the third degree;
  24-64              (2)  the amount claimed or attempted to be claimed is
  24-65  greater than $10,000, in which event the offense is a felony of the
  24-66  second degree; or
  24-67              (3)  the person has previously been convicted of an
  24-68  offense under Section 466.306, 466.307, 466.309, 466.310, or this
  24-69  section, in which event the offense is a felony of the third
  24-70  degree, unless the offense is designated as a felony of the second
   25-1  degree under Subdivision (2).
   25-2        Sec. 466.309.  TAMPERING WITH LOTTERY EQUIPMENT.  (a)  A
   25-3  person commits an offense if the person intentionally or knowingly
   25-4  tampers with, damages, defaces, or renders inoperable any vending
   25-5  machine, electronic computer terminal, or other mechanical device
   25-6  used in a lottery game.
   25-7        (b)  An offense under this section is a felony of the third
   25-8  degree.
   25-9        Sec. 466.310.  CERTAIN TRANSFERS OF CLAIMS.  (a)  A person
  25-10  commits an offense if the person:
  25-11              (1)  induces another person to assign or transfer a
  25-12  right to claim a prize;
  25-13              (2)  offers for sale the right to claim a prize; or
  25-14              (3)  offers, for compensation, to claim the prize of
  25-15  another person.
  25-16        (b)  An offense under this section is a felony of the third
  25-17  degree, unless it is shown on the trial of the offense that the
  25-18  prize involved is greater than $10,000, in which event the offense
  25-19  is a felony of the second degree.
  25-20        Sec. 466.311.  REPORTING AND RECORD VIOLATIONS.  (a)  A
  25-21  person commits an offense if the person, in a license application,
  25-22  in a book or record required to be maintained by this chapter or a
  25-23  rule adopted under this chapter, or in a report required to be
  25-24  submitted by this chapter or a rule adopted under this chapter:
  25-25              (1)  intentionally or knowingly makes a statement or
  25-26  entry that the person knows to be false or misleading; or
  25-27              (2)  fails to maintain or make an entry the person
  25-28  knows is required to be maintained or made.
  25-29        (b)  A person commits an offense if the person knowingly
  25-30  refuses to produce for inspection by the director, comptroller, or
  25-31  state auditor a book, record, or document required to be maintained
  25-32  or made by this chapter or a rule adopted under this chapter.
  25-33        (c)  An  offense under this section is a Class A misdemeanor.
  25-34        Sec. 466.312.  FALSE, INCORRECT, OR DECEPTIVE STATEMENT.
  25-35  (a)  A person commits an offense if the person intentionally,
  25-36  knowingly, recklessly, or with criminal negligence makes a material
  25-37  and false, incorrect, or deceptive statement to a person conducting
  25-38  an investigation or exercising discretion under this chapter or a
  25-39  rule adopted under this chapter.
  25-40        (b)  In this section, "statement" includes:
  25-41              (1)  a written or oral statement; and
  25-42              (2)  a sworn or unsworn statement.
  25-43        (c)  An offense under this section is a Class A misdemeanor.
  25-44        Sec. 466.313.  Conspiracy.  (a)  A person commits an offense
  25-45  of conspiracy if, with intent that an offense under this chapter be
  25-46  committed:
  25-47              (1)  the person agrees with one or more other persons
  25-48  that they or one or more of them engage in conduct that would
  25-49  constitute the offense; and
  25-50              (2)  one or more of the persons agreeing under
  25-51  Subdivision (1) performs an overt act in pursuance of the
  25-52  agreement.
  25-53        (b)  An agreement constituting a conspiracy may be inferred
  25-54  from acts of the parties.
  25-55        (c)  It is no defense to prosecution for conspiracy under
  25-56  this section that:
  25-57              (1)  one or more of the coconspirators is not
  25-58  criminally responsible for the object offense;
  25-59              (2)  one or more of the coconspirators has been
  25-60  acquitted, so long as at least two coconspirators have not been
  25-61  acquitted;
  25-62              (3)  one or more of the coconspirators has not been
  25-63  prosecuted or convicted, has been convicted of a different offense,
  25-64  or is immune from prosecution;
  25-65              (4)  the actor belongs to a class of persons that by
  25-66  definition of the object offense is legally incapable of committing
  25-67  the object offense in an individual capacity; or
  25-68              (5)  the object offense was not actually committed.
  25-69        (d)  An offense under this section is one category lower than
  25-70  the most serious offense under this chapter that is the object of
   26-1  the conspiracy, and if the most serious offense under this chapter
   26-2  that is the object of the conspiracy is a felony of the third
   26-3  degree, the offense is a Class A misdemeanor.
   26-4        Sec. 466.314.  GIFT OR POLITICAL CONTRIBUTION TO OFFICER OR
   26-5  EMPLOYEE.  (a)  The comptroller, the state treasurer, the director,
   26-6  or an employee of the division may not knowingly accept a gift or
   26-7  political contribution from:
   26-8              (1)  a person that has a significant financial interest
   26-9  in the lottery;
  26-10              (2)  a person related in the first degree of
  26-11  consanguinity or affinity to a person that has a significant
  26-12  financial interest in the lottery;
  26-13              (3)  a person that owns more than a 10 percent interest
  26-14  in an entity that has a significant financial interest in the
  26-15  lottery;
  26-16              (4)  a political committee that is directly
  26-17  established, administered, or controlled, in whole or in part, by a
  26-18  person that has a significant financial interest in the lottery; or
  26-19              (5)  a person who, within the two years preceding the
  26-20  date of the gift or contribution, won a lottery prize exceeding
  26-21  $600 in amount or value.
  26-22        (b)  A person may not knowingly make a gift or political
  26-23  contribution to the comptroller, the state treasurer, the director,
  26-24  or an employee of the division if the person:
  26-25              (1)  has a significant financial interest in the
  26-26  lottery;
  26-27              (2)  is related in the first degree of consanguinity or
  26-28  affinity to a person that has a significant financial interest in
  26-29  the lottery;
  26-30              (3)  owns more than a 10 percent interest in an entity
  26-31  that  has a significant financial interest in the lottery;
  26-32              (4)  is a political committee that is directly
  26-33  established, administered, or controlled, in whole or in part, by a
  26-34  person that  has a significant financial interest in the lottery;
  26-35  or
  26-36              (5)  within the two years preceding the date of the
  26-37  gift or contribution, won a lottery prize exceeding $600 in amount
  26-38  or value.
  26-39        (c)  A person commits an offense if the person violates this
  26-40  section.  An offense under this section is a Class A misdemeanor.
  26-41        Sec. 466.315.  GIFT OR POLITICAL CONTRIBUTION TO FORMER
  26-42  OFFICER OR EMPLOYEE.  (a)  A former comptroller, former state
  26-43  treasurer, former director, or former employee of the division may
  26-44  not, before the second anniversary of the date that the person's
  26-45  service in office or employment with the division ceases, knowingly
  26-46  accept a gift or political contribution from:
  26-47              (1)  a person that has a significant financial interest
  26-48  in the lottery;
  26-49              (2)  a person related in the first degree of
  26-50  consanguinity or affinity to a person that has a significant
  26-51  financial interest in the lottery;
  26-52              (3)  a person that owns more than a 10 percent interest
  26-53  in an entity that has a significant financial interest in the
  26-54  lottery;
  26-55              (4)  a political committee that is directly
  26-56  established, administered, or controlled, in whole or in part, by a
  26-57  person that has a significant financial interest in the lottery; or
  26-58              (5)  a person who, within the two years preceding the
  26-59  date of the gift or contribution, won a lottery prize exceeding
  26-60  $600 in amount or value.
  26-61        (b)  A person may not knowingly make a gift or political
  26-62  contribution to a former comptroller, former state treasurer,
  26-63  former director, or former employee of the division before the
  26-64  second anniversary of the date that the person's service in office
  26-65  or employment with the division ceases, if the person:
  26-66              (1)  has a significant financial interest in the
  26-67  lottery;
  26-68              (2)  is related in the first degree of consanguinity or
  26-69  affinity to a person that has a significant financial interest in
  26-70  the lottery;
   27-1              (3)  owns more than a 10 percent interest in an entity
   27-2  that  has a significant financial interest in the lottery;
   27-3              (4)  is a political committee that is directly
   27-4  established, administered, or controlled, in whole or in part, by a
   27-5  person that  has a significant financial interest in the lottery;
   27-6  or
   27-7              (5)  within the two years preceding the date of the
   27-8  gift or contribution, won a lottery prize exceeding $600 in amount
   27-9  or value.
  27-10        (c)  This section does not apply to a former comptroller or
  27-11  former state treasurer who left office on or before August 10,
  27-12  1991.  This section does not apply to a person who makes a gift or
  27-13  political contribution to a former comptroller or former state
  27-14  treasurer if the former comptroller or former state treasurer left
  27-15  office on or before August 10, 1991.
  27-16        (d)  A person commits an offense if the person violates this
  27-17  section.  An offense under this section is a Class A misdemeanor.
  27-18        Sec. 466.316.  REPRESENTATION BY FORMER OFFICER OR EMPLOYEE.
  27-19  (a)  A former comptroller, former state treasurer, or former
  27-20  director may not:
  27-21              (1)  for compensation, represent a person that has made
  27-22  or intends to make a bid to operate the lottery before the
  27-23  comptroller before the second anniversary of the date that the
  27-24  person's service in office or employment with the division ceases;
  27-25              (2)  represent any person or receive compensation for
  27-26  services rendered on behalf of any person regarding a particular
  27-27  matter in which the former officer or employee participated during
  27-28  the period of service or employment with the division, either
  27-29  through personal involvement or because the matter was within the
  27-30  scope of the officer's or employee's official responsibility; or
  27-31              (3)  for compensation, communicate directly with a
  27-32  member of the legislative branch to influence legislation on behalf
  27-33  of a person that has a significant financial interest in the
  27-34  lottery, before the second anniversary of the date that the
  27-35  person's service in office or employment with the division ceases.
  27-36        (b)  This section does not apply to a former comptroller or
  27-37  former state treasurer who left office on or before August 10,
  27-38  1991.
  27-39        (c)  A person commits an offense if the person violates this
  27-40  section.  An offense under this section is a Class A misdemeanor.
  27-41           (Sections 466.317-466.350 reserved for expansion
  27-42                        SUBCHAPTER H.  REVENUE
  27-43        Sec. 466.351.  Delivery of Funds.  (a)  Except as provided by
  27-44  Subsection (d), all revenue received from the sale of tickets and
  27-45  all money credited to the state lottery account from any other
  27-46  source shall be deposited in the state treasury through approved
  27-47  state depositories on the settlement day or days established by the
  27-48  director.
  27-49        (b)  The director may require sales agents to establish
  27-50  separate electronic funds transfer accounts for the purposes of
  27-51  depositing money from ticket sales, making payments to the
  27-52  division, and receiving payments from the division.  The
  27-53  comptroller by rule shall establish the procedures for depositing
  27-54  money from ticket sales into electronic funds transfer accounts, as
  27-55  well as other procedures regarding the handling of money from
  27-56  ticket sales.
  27-57        (c)  The director may not permit a sales agent to make
  27-58  payments to the division or a lottery operator in cash.
  27-59        (d)  The director may provide for a sales agent to retain
  27-60  from the money received from the sale of tickets the amount of
  27-61  prizes paid by the agent or the agent's commission, if any, and may
  27-62  establish how often the agent will make settlement payments to the
  27-63  treasury.
  27-64        (e)  The director may provide for a sales agent to pay
  27-65  amounts received for the sale of tickets directly to an officer or
  27-66  employee of the division for immediate deposit in the state
  27-67  treasury.
  27-68        Sec. 466.352.  REPORTING BY SALES AGENT; RECORDS.  (a)  The
  27-69  director may require a sales agent to file with the division
  27-70  reports of receipts and transactions relating to the sale of
   28-1  tickets in the form and containing the information that the
   28-2  director requires.
   28-3        (b)  Each sales agent shall maintain records adequate to
   28-4  establish the disposition of each ticket provided to the sales
   28-5  agent, the amounts of money received for the sale of those tickets,
   28-6  and any prizes awarded by the sales agent.
   28-7        Sec. 466.353.  LIABILITY OF SALES AGENT.  (a)  A sales agent
   28-8  is liable to the division for all tickets accepted or generated by
   28-9  the sales agent or any employee or agent of the sales agent, and
  28-10  tickets shall be deemed to have been purchased by the sales agent
  28-11  unless returned to the division within the time and manner
  28-12  prescribed by the division.
  28-13        (b)  Money received by a sales agent from the sales of
  28-14  tickets, less the amount retained for prizes paid by the sales
  28-15  agent or for the agent's commission, if any, together with any
  28-16  unsold tickets, shall be held in trust for the benefit of the state
  28-17  before delivery to a lottery operator or the division or electronic
  28-18  transfer to the state treasury, and the sales agent is liable to
  28-19  the division for the full amount of the money or unsold tickets so
  28-20  held.  If the sales agent is not an individual, each officer,
  28-21  director, or owner of the sales agent is personally liable to the
  28-22  division for the full amount of the money or unsold tickets held in
  28-23  trust for the benefit of the state.
  28-24        Sec. 466.354.  DUTIES OF STATE TREASURER.  (a)  The state
  28-25  treasurer, in consultation with the director, shall establish
  28-26  procedures for the efficient implementation and operation of an
  28-27  electronic funds transfer system to meet the needs of the director
  28-28  under this chapter.
  28-29        (b)  The state treasurer periodically shall file reports with
  28-30  the director providing information regarding the revenue credited
  28-31  to the state lottery account, the investments of the money in the
  28-32  account, and the distributions made from the account.
  28-33        Sec. 466.355.  STATE LOTTERY ACCOUNT.  (a)  The state lottery
  28-34  account is a special account in the general revenue fund.  The
  28-35  account consists of all revenue received from the sale of tickets,
  28-36  license and application fees under this chapter, and all money
  28-37  credited to the account from any other fund or source under law.
  28-38  Interest earned by the state lottery account shall be deposited in
  28-39  the unobligated portion of the general revenue fund.
  28-40        (b)  Money in the state lottery account may be used only for
  28-41  the following purposes and shall be distributed as follows:
  28-42              (1)  the payment of prizes to the holders of winning
  28-43  tickets;
  28-44              (2)  the payment of costs incurred in the operation and
  28-45  administration of the lottery, including any fees received by a
  28-46  lottery operator, provided that the costs incurred in a fiscal
  28-47  biennium may not exceed an amount equal to 15 percent of the gross
  28-48  revenue accruing from the sale of tickets in that biennium;
  28-49              (3)  the transfer of amounts to the state lottery
  28-50  stabilization fund as provided by Section 466.356; and
  28-51              (4)  the balance, after creation of a reserve
  28-52  sufficient to pay the amounts provided by Subdivisions (1) and (2),
  28-53  to be transferred to the unobligated portion of the general revenue
  28-54  fund, on or before the 15th day of each month.
  28-55        (c)  Notwithstanding Subsection (b)(2), before September 1,
  28-56  1993, the costs incurred in the operation and administration of the
  28-57  lottery in the fiscal biennium beginning September 1, 1991, may be
  28-58  more than 15 percent but not more than 20 percent of the gross
  28-59  revenue from the sale of tickets in that biennium.  This subsection
  28-60  expires January 1, 1994.
  28-61        Sec. 466.356.  STATE LOTTERY STABILIZATION FUND.  (a)  The
  28-62  state lottery stabilization fund is a special fund in the state
  28-63  treasury.  The fund consists of revenue credited to the fund from
  28-64  the state lottery account as provided by Subsection (b).  Interest
  28-65  earned by the state lottery stabilization fund shall be deposited
  28-66  in the unobligated portion of the general revenue fund.
  28-67        (b)  For each month in which the monthly estimate of net
  28-68  lottery revenue exceeds $10 million and the net lottery revenue
  28-69  equals or exceeds the monthly estimate of net lottery revenue, the
  28-70  comptroller shall transfer $10 million plus the amount by which the
   29-1  net lottery revenue exceeds the monthly estimate of net lottery
   29-2  revenue from the state lottery account to the state lottery
   29-3  stabilization fund.
   29-4        (c)  Money in the state lottery stabilization fund shall be
   29-5  distributed only as follows:
   29-6              (1)  if in any month the net lottery revenue is less
   29-7  than 90 percent of the monthly estimate of net lottery revenue, an
   29-8  amount equal to the difference between the monthly estimate of net
   29-9  lottery revenue and the net lottery revenue shall be transferred to
  29-10  the unobligated portion of the general revenue fund; and
  29-11              (2)  on the first day of each fiscal biennium, one-half
  29-12  of the balance in the state lottery stabilization fund shall be
  29-13  transferred to the unobligated portion of the general revenue fund.
  29-14        (d)  In this section:
  29-15              (1)  "Annual estimate of net lottery revenue" means the
  29-16  estimated amount of net lottery revenue for a fiscal year, as
  29-17  determined by the comptroller for purposes of the biennial revenue
  29-18  estimate required by Article III, Section 49a, of the Texas
  29-19  Constitution.
  29-20              (2)  "Gross lottery revenue" means the sum of:
  29-21                    (A)  the gross revenue from the sale of tickets;
  29-22  and
  29-23                    (B)  license and application fees collected under
  29-24  this chapter.
  29-25              (3)  "Monthly estimate of net lottery revenue" means an
  29-26  amount equal to one-twelfth the annual estimate of net lottery
  29-27  revenue for the fiscal year that includes the month for which the
  29-28  monthly estimate is made.
  29-29              (4)  "Net lottery revenue" means the gross lottery
  29-30  revenue minus the amounts distributed or obligated for a purpose
  29-31  described by Sections 466.355(b)(1) and (b)(2).
  29-32        (e)  Notwithstanding Subsection (b) and Section
  29-33  466.355(b)(4), the initial transfer of revenue from the state
  29-34  lottery account to the unobligated portion of the general revenue
  29-35  fund and the state lottery stabilization fund under those
  29-36  subsections shall be made on the 15th day of the month following
  29-37  the month in which the earlier of the following occurs:
  29-38              (1)  the first ticket is sold to a player under this
  29-39  chapter; or
  29-40              (2)  the director receives liquidated damages or a
  29-41  payment under a performance bond under a contract with a lottery
  29-42  operator.
  29-43        (f)  Notwithstanding Subsection (b), the first transfer from
  29-44  the state lottery account to the state lottery stabilization fund
  29-45  may not be made before September 1, 1993.  Notwithstanding
  29-46  Subsection (c)(1), the first transfer from the state lottery
  29-47  stabilization fund to the unobligated portion of the general
  29-48  revenue fund may not be made before December 1, 1993.
  29-49        (g)  Notwithstanding Subsection (d), the monthly estimate of
  29-50  net lottery revenue for the month following the month in which the
  29-51  first ticket is sold to a player and for each of the subsequent
  29-52  months in that fiscal year is the amount of estimated net lottery
  29-53  revenue for that fiscal year included in the comptroller's revenue
  29-54  estimate under Article III, Section 49a, of the Texas Constitution
  29-55  for the biennium ending August 31, 1993, divided by the number of
  29-56  whole months remaining in the fiscal year after the month in which
  29-57  the first ticket is sold to a player.  If the comptroller's revenue
  29-58  estimate for the fiscal biennium ending August 31, 1993, does not
  29-59  include revenue from a state-operated lottery, all net lottery
  29-60  revenue for that biennium shall be credited to the state lottery
  29-61  stabilization fund.
  29-62        (h)  Subsections (e) through (g) and this subsection expire
  29-63  January 1, 1994.
  29-64        Sec. 466.357.  APPLICABILITY OF CONSTITUTIONAL PROVISIONS.
  29-65  For purposes of Article III, Section 49a, and Article VIII, Section
  29-66  22, of the Texas Constitution:
  29-67              (1)  funds received from the operation of a lottery are
  29-68  not revenue; and
  29-69              (2)  expenses of operating the lottery and paying
  29-70  prizes are not expenses of state government.
   30-1        Sec. 466.358.  COMPENSATION OF SALES AGENT.  (a)  The
   30-2  director and each lottery operator shall determine the compensation
   30-3  to be paid to sales agents for the sale of tickets as provided by
   30-4  this section.  The compensation paid to a sales agent may not be an
   30-5  amount less than five percent of the retail price of the tickets
   30-6  sold plus, at the discretion of the director or lottery operator
   30-7  supervising the lottery game involved, an incentive bonus based on
   30-8  attainment of sales volume, the redemption of winning tickets, or
   30-9  other objectives specified by the director or lottery operator for
  30-10  each type of lottery.
  30-11        (b)  The division or a lottery operator may run sales agent
  30-12  incentive games for sales agents using the incentive bonus amount
  30-13  or other amounts allocated by the director as compensation for
  30-14  sales agents.
  30-15        Sec. 466.359.  COMPENSATION OF SALES AGENT FOR PURPOSES OF
  30-16  CONTRACTUAL RENTAL PAYMENT.  If a sales agent's rental payments for
  30-17  premises are contractually computed in whole or in part on the
  30-18  basis of a percentage of the lessee's retail sales and if the
  30-19  computation of the lessee's rental payment is not explicitly
  30-20  defined to include sales of tickets in a state-operated lottery,
  30-21  the compensation received by the sales agent from the lottery is
  30-22  considered to be the net amount of the lessee's retail sales of
  30-23  tickets for the purpose of computing the rental payment.
  30-24           (Sections 466.360-466.400 reserved for expansion
  30-25                         SUBCHAPTER I.  PRIZES
  30-26        Sec. 466.401.  TICKET VALIDATION; DRAWINGS.  (a)  The
  30-27  department of security shall supervise ticket validation and
  30-28  lottery drawings.
  30-29        (b)  If a lottery game involves a drawing, the drawing must
  30-30  be open to the public.  An independent certified public accountant
  30-31  must witness the drawing.
  30-32        (c)  An employee of the division and the independent
  30-33  certified public accountant witnessing the drawing shall inspect
  30-34  any equipment used in the drawing.  The equipment must be inspected
  30-35  immediately before and after the drawing.  The drawing and
  30-36  inspections must be recorded on video and audio tape.
  30-37        Sec. 466.402.  PAYMENT OF PRIZES GENERALLY.  (a)  The
  30-38  director may authorize prizes to be paid by warrants to be drawn on
  30-39  the state lottery account.
  30-40        (b)  The payment of a prize in an amount of $600 or more may
  30-41  be made only by the director.
  30-42        (c)  The director may authorize a sales agent to pay a prize
  30-43  in an amount less than $600 after performing procedures to validate
  30-44  the winning ticket as required by the director.  A prize paid under
  30-45  this subsection is not required to be paid by warrant on the state
  30-46  lottery account.
  30-47        (d)  The state is discharged of all further liability on the
  30-48  payment of a prize under Section 466.403, 466.404, 466.406, or
  30-49  466.407 or this section or under any additional procedures
  30-50  established by rule.
  30-51        Sec. 466.403.  PAYMENT OF PRIZE IN INSTALLMENTS.  If the
  30-52  director determines that prize money is to be paid in installments,
  30-53  the state treasurer shall invest funds from the state lottery
  30-54  account as necessary to ensure the payment of the installments.
  30-55  The investments may be in securities, annuities, or other
  30-56  instruments as determined by the treasurer.
  30-57        Sec. 466.404.  PAYMENT OF PRIZE TO MULTIPLE WINNERS.  (a)  A
  30-58  specific prize as set forth by the prize structure of a specific
  30-59  lottery game may not be paid more than once.  If the director
  30-60  determines that more than one claimant has been awarded a specific
  30-61  unpaid prize in a specific lottery game, each claimant is entitled
  30-62  only to an equal share of the prize.
  30-63        (b)  The director shall pay the cash equivalent of a prize
  30-64  other than prize money if more than one person is entitled to share
  30-65  the prize as provided by Subsection (a).
  30-66        Sec. 466.405.  PAYMENT OF PRIZE AWARDED TO MINOR.  (a)  If a
  30-67  minor is entitled to  prize money on a winning ticket in an amount
  30-68  less than $600, the director may make payment by delivery to an
  30-69  adult member of the minor's family, or to the minor's guardian, of
  30-70  a warrant payable to the order of the minor.
   31-1        (b)  If a minor is entitled to  prize money on a winning
   31-2  ticket in an amount of $600 or more, the director may direct
   31-3  payment to the minor by depositing the amount of the prize in any
   31-4  bank to the credit of an adult member of the minor's family or of
   31-5  the minor's guardian as custodian for the minor.
   31-6        (c)  The director shall pay the cash equivalent of a prize
   31-7  other than prize money if the person entitled to claim the prize is
   31-8  a minor.  Payment of the cash equivalent of a prize other than
   31-9  prize money to a minor shall be made as provided by Subsections (a)
  31-10  and (b).
  31-11        (d)  A person designated to receive payment on behalf of a
  31-12  minor has the powers and duties of a custodian under Chapter 141,
  31-13  Property Code.
  31-14        (e)  In this section, "adult," "bank," "custodian,"
  31-15  "guardian," "member of a minor's family," and "minor" have the
  31-16  meanings assigned by Section 141.002, Property Code.
  31-17        Sec. 466.406.  RIGHT TO PRIZE NOT ASSIGNABLE.  (a)  Except as
  31-18  otherwise provided by this section, the right of any person to a
  31-19  prize is not assignable.
  31-20        (b)  Payment of a prize may be made to the estate of a
  31-21  deceased prizewinner.
  31-22        (c)  A prize to which a winner is otherwise entitled may be
  31-23  paid to any person under an appropriate judicial order.
  31-24        Sec. 466.407.  DEDUCTIONS FROM PRIZES.  (a)  The director
  31-25  shall deduct the amount of a delinquent tax or other money from the
  31-26  winnings of a person who has been finally determined to be:
  31-27              (1)  delinquent in the payment of a tax or other money
  31-28  collected by the comptroller, the state treasurer, or the Texas
  31-29  Alcoholic Beverage Commission;
  31-30              (2)  delinquent in making child support payments
  31-31  administered or collected by the attorney general; or
  31-32              (3)  in default on a loan guaranteed under Chapter 57,
  31-33  Education Code.
  31-34        (b)  If a person's winnings exceed a delinquency under
  31-35  Subsection (a), the director shall pay the balance to the person.
  31-36  The director shall transfer the amount deducted to the appropriate
  31-37  agency.
  31-38        (c)  The attorney general, state treasurer, Texas Alcoholic
  31-39  Beverage Commission, and Texas Guaranteed Student Loan Corporation
  31-40  shall each provide the director with a report of persons who have
  31-41  been finally determined to be delinquent in the payment of a tax or
  31-42  other money collected by the agency.  The comptroller shall adopt
  31-43  rules regarding the form and frequency of reports under this
  31-44  subsection.
  31-45        Sec. 466.408.  UNCLAIMED PRIZES.  (a)  The division shall
  31-46  retain an unclaimed prize on a winning ticket for payment or
  31-47  delivery to the person entitled to the prize for 180 days after the
  31-48  date on which the winner was selected.
  31-49        (b)  If a claim is not made for prize money on or before the
  31-50  180th day after the date on which the winner was selected, the
  31-51  prize money shall be used to provide additional money to the state
  31-52  lottery account for the purposes prescribed by Section
  31-53  466.355(b)(1).
  31-54        (c)  If a claim is not made for a prize other than prize
  31-55  money on or before the 180th day after the date on which the winner
  31-56  was selected, the prize shall revert to the division for use in
  31-57  subsequent games.
  31-58        (d)  A ticket holder forfeits any claim or entitlement to a
  31-59  prize after the expiration of the 180th day after the date on which
  31-60  the prizewinner was selected.
  31-61        (c)  Section 2, Chapter 6, Acts of the 72nd Legislature, 1st
  31-62  Called Session, 1991 (Article 179g, Vernon's Texas Civil Statutes),
  31-63  is repealed.
  31-64        SECTION 4.04.  Section 47.02(c), Penal Code, is amended to
  31-65  correct a reference to read as follows:
  31-66        (c)  It is a defense to prosecution under this section that
  31-67  the actor reasonably believed that the conduct:
  31-68              (1)  was permitted under the Bingo Enabling Act
  31-69  (Article 179d, Vernon's Texas Civil Statutes);
  31-70              (2)  was permitted under the Charitable Raffle Enabling
   32-1  Act (Article 179f, Revised Statutes); or
   32-2              (3)  consisted entirely of participation in the state
   32-3  lottery authorized by Chapter 466, Government Code <the State
   32-4  Lottery Act>.
   32-5        SECTION 4.05.  Section 47.06(g), Penal Code, is amended to
   32-6  correct a reference to read as follows:
   32-7        (g)  It is a defense to prosecution for an offense under this
   32-8  chapter that the conduct was authorized, directly or indirectly, by
   32-9  Chapter 466, Government Code <the State Lottery Act>, the lottery
  32-10  division in the office of the comptroller, the comptroller, or the
  32-11  director of the lottery division.
  32-12        SECTION 4.06.  Section 47.14, Penal Code, is amended to
  32-13  correct a reference to read as follows:
  32-14        Sec. 47.14.  STATE LOTTERY.  It is a defense to prosecution
  32-15  for an offense under this chapter that the conduct:
  32-16              (1)  consisted entirely of participation in the state
  32-17  lottery authorized by Chapter 466, Government Code <the State
  32-18  Lottery Act>; or
  32-19              (2)  was a necessary incident to the operation of the
  32-20  state lottery and was authorized, directly or indirectly, by
  32-21  Chapter 466, Government Code <the State Lottery Act>, the lottery
  32-22  division in the office of the comptroller, the comptroller, or the
  32-23  director of the lottery division.
  32-24        SECTION 4.07.  Article 2.12, Code of Criminal Procedure, is
  32-25  amended to correct references to read as follows:
  32-26        Art. 2.12.  Who Are Peace Officers.  The following are peace
  32-27  officers:
  32-28              (1)  sheriffs and their deputies;
  32-29              (2)  constables and deputy constables;
  32-30              (3)  marshals or police officers of an incorporated
  32-31  city, town, or village;
  32-32              (4)  rangers and officers commissioned by the Public
  32-33  Safety Commission and the Director of the Department of Public
  32-34  Safety;
  32-35              (5)  investigators of the district attorneys', criminal
  32-36  district attorneys', and county attorneys' offices;
  32-37              (6)  law enforcement agents of the Texas Alcoholic
  32-38  Beverage Commission;
  32-39              (7)  each member of an arson investigating unit
  32-40  commissioned by a city, a county, or the state;
  32-41              (8)  officers commissioned under Subchapter E, Chapter
  32-42  51, Education Code;
  32-43              (9)  officers commissioned by the <State Purchasing
  32-44  and> General Services Commission;
  32-45              (10)  law enforcement officers commissioned by the
  32-46  Parks and Wildlife Commission;
  32-47              (11)  airport police officers commissioned by a city
  32-48  with a population of more than one million, according to the most
  32-49  recent federal census, that operates an airport that serves
  32-50  commercial air carriers;
  32-51              (12)  airport security personnel commissioned as peace
  32-52  officers by the governing body of any political subdivision of this
  32-53  state, other than a city described by Subdivision (11), that
  32-54  operates an airport that serves commercial air carriers;
  32-55              (13)  municipal park and recreational patrolmen and
  32-56  security officers;
  32-57              (14)  security officers commissioned as peace officers
  32-58  by the State Treasurer;
  32-59              (15)  officers commissioned by a water control and
  32-60  improvement district under Section 51.132, Water Code;
  32-61              (16)  officers commissioned by a board of trustees
  32-62  under Chapter 341, Acts of the 57th Legislature, Regular Session,
  32-63  1961 (Article 1187f, Vernon's Texas Civil Statutes);
  32-64              (17)  investigators commissioned by the Texas State
  32-65  Board of Medical Examiners;
  32-66              (18)  officers commissioned by the board of managers of
  32-67  the Dallas County Hospital District, the Tarrant County Hospital
  32-68  District, or the Bexar County Hospital District under Section
  32-69  281.057, Health and Safety Code;
  32-70              (19)  county park rangers commissioned under Subchapter
   33-1  E, Chapter 351, Local Government Code;
   33-2              (20)  investigators employed by the Texas Racing
   33-3  Commission;
   33-4              (21)  officers commissioned by the State Board of
   33-5  Pharmacy;
   33-6              (22)  officers commissioned by the governing body of a
   33-7  metropolitan rapid transit authority under Section 13, Chapter 141,
   33-8  Acts of the 63rd Legislature, Regular Session, 1973 (Article 1118x,
   33-9  Vernon's Texas Civil Statutes), or by a regional transportation
  33-10  authority under Section 10, Chapter 683, Acts of the 66th
  33-11  Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
  33-12  Civil Statutes);
  33-13              (23)  officers commissioned by the Texas High-Speed
  33-14  Rail Authority;
  33-15              (24)  investigators commissioned by the attorney
  33-16  general under Section 402.009, Government Code; and
  33-17              (25)  security officers and investigators commissioned
  33-18  as peace officers under Chapter 466, Government Code <the State
  33-19  Lottery Act>.
  33-20        SECTION 4.08.  Section 111.0047(a), Tax Code, is amended to
  33-21  correct references to read as follows:
  33-22        (a)  If a person fails to comply with any provision of this
  33-23  title, with any provision of Chapter 466, Government Code <the
  33-24  State Lottery Act>, or with a rule of the comptroller adopted under
  33-25  this title or Chapter 466, Government Code <the State Lottery Act>,
  33-26  the comptroller, after a hearing, may revoke or suspend any permit
  33-27  or license issued to the person.
  33-28        SECTION 4.09.  Section 111.0048(a), Tax Code, is amended to
  33-29  correct references to read as follows:
  33-30        (a)  A new permit or license may not be issued to a former
  33-31  holder of a revoked permit or license unless the comptroller is
  33-32  satisfied that the person will comply with the provisions of this
  33-33  title and Chapter 466, Government Code <the State Lottery Act> and
  33-34  the rules of the comptroller relating to this title and Chapter
  33-35  466, Government Code <the State Lottery Act>.
  33-36        SECTION 4.10.  Section 499.025(b), Government Code, as
  33-37  amended by Chapters 16 and 655, Acts of the 72nd Legislature,
  33-38  Regular Session, 1991, and Chapter 10, Acts of the 72nd
  33-39  Legislature, 2nd Called Session, 1991, is reenacted to read as
  33-40  follows:
  33-41        (b)  If the inmate population of the institutional division
  33-42  reaches 95 percent of capacity or, if the attorney general has
  33-43  authorized an increase in the permissible percentage of capacity
  33-44  under Section 499.109, the inmate population reaches that increased
  33-45  permissible percentage, the director shall immediately notify the
  33-46  executive director, the board, and the attorney general in writing
  33-47  of that fact.  The attorney general shall certify to the board in
  33-48  writing as to whether the institutional division has reached 95
  33-49  percent of capacity or, if applicable, the increased permissible
  33-50  percentage.  If the attorney general certifies that 95 percent of
  33-51  capacity has been reached or, if applicable, that the increased
  33-52  permissible percentage has been reached, the board shall
  33-53  immediately certify that an emergency overcrowding situation exists
  33-54  and direct the Board of Pardons and Paroles to proceed in the
  33-55  manner described by Subsection (c).  If the Commission on Jail
  33-56  Standards determines that in any county jail in this state there
  33-57  exists an inmate awaiting transfer to the institutional division
  33-58  following conviction of a felony or revocation of probation,
  33-59  parole, or release on mandatory supervision and for whom all
  33-60  paperwork and processing required for transfer have been completed
  33-61  for not less than 45 days, the board may direct the Board of
  33-62  Pardons and Paroles to proceed in the manner described by
  33-63  Subsection (c).
  33-64        SECTION 4.11.  (a)  Section 771.002(3), Government Code, is
  33-65  amended to conform to Section 29, Chapter 641, Acts of the 72nd
  33-66  Legislature, Regular Session, 1991, to read as follows:
  33-67              (3)  "Resources" means materials and<,> equipment<, and
  33-68  supplies>.
  33-69        (b)  Sections 771.003, 771.004, 771.006, 771.007, and
  33-70  771.008, Government Code, are amended to conform to Sections 29 and
   34-1  30, Chapter 641, Acts of the 72nd Legislature, Regular Session,
   34-2  1991, to read as follows:
   34-3        Sec. 771.003.  AUTHORITY TO CONTRACT; EXCEPTIONS.  (a)  A
   34-4  state agency may agree or contract with another state agency for
   34-5  the provision <furnishing> of necessary and authorized services and
   34-6  resources.
   34-7        (b)  A state agency may not construct a highway, road,
   34-8  building, or other structure for another agency under this chapter,
   34-9  except that the State Department of Highways and Public
  34-10  Transportation may enter into an interagency agreement with a state
  34-11  college, university, or public junior college <providing> for the
  34-12  maintenance, improvement, relocation, or extension of existing
  34-13  on-campus streets, parking lots, and access-ways.
  34-14        (c)  A state agency may not provide <supply> services or
  34-15  resources to another agency that are required by Article XVI,
  34-16  Section 21, of the Texas Constitution to be provided <supplied>
  34-17  under a contract awarded <given> to the lowest responsible bidder.
  34-18        Sec. 771.004.  CONTRACT REQUIREMENTS; EXCEPTIONS.
  34-19  (a)  Before a state agency may provide <furnish> or receive a
  34-20  service or resource under this chapter, the agency must have
  34-21  entered into a written agreement or contract that has been approved
  34-22  by the administrator of each agency that is a party to the
  34-23  agreement or contract and by the commission.
  34-24        (b)  The agreement or contract must specify:
  34-25              (1)  the kind and amount of services or resources to be
  34-26  provided <furnished>;
  34-27              (2)  the basis for computing reimbursable costs; and
  34-28              (3)  the maximum cost during the period of the
  34-29  agreement or contract.
  34-30        (c)  A written agreement or contract and advance approval by
  34-31  the commission are not required:
  34-32              (1)  in an emergency for the defense or safety of the
  34-33  civil population or in the planning and preparation for those
  34-34  emergencies;
  34-35              (2)  in cooperative efforts, proposed by the governor,
  34-36  for the economic development of the state; or
  34-37              (3)  in a situation in which the amount involved is
  34-38  less than $2,500.
  34-39        Sec. 771.006.  <EQUIPMENT> PURCHASES AND SUBCONTRACTS OF
  34-40  SERVICES AND RESOURCES.  A contract under this chapter may
  34-41  authorize an <permit a furnishing> agency providing services and
  34-42  resources to subcontract and purchase the services and resources
  34-43  <equipment> to the extent considered appropriate by the commission.
  34-44        Sec. 771.007.  REIMBURSEMENT AND ADVANCEMENT OF COSTS.
  34-45  (a)  A state agency that receives services or resources under this
  34-46  chapter shall reimburse each state agency providing <supplying> the
  34-47  services or resources the actual cost of providing <furnishing> the
  34-48  services or resources, or the nearest practicable estimate of that
  34-49  cost.  Reimbursement is not required if<, unless> the services or
  34-50  resources are provided <furnished>:
  34-51              (1)  for national defense or disaster relief; or
  34-52              (2)  in cooperative efforts, proposed by the governor,
  34-53  to promote the economic development of the state.
  34-54        (b)  A state agency that receives services or resources under
  34-55  this chapter may advance federal funds to a state agency providing
  34-56  <supplying> the services or resources if the agency receiving the
  34-57  services or resources determines that the advance would facilitate
  34-58  the implementation of a federally funded program.
  34-59        (c)  A state agency that receives services or resources under
  34-60  this chapter may advance funds to the state agency providing the
  34-61  services or resources if an advance is necessary to enable the
  34-62  providing agency to provide the services or resources.  If an
  34-63  advance is made under this section, the agencies shall ensure after
  34-64  the services or resources are provided that the providing agency
  34-65  has received only sufficient funds to reimburse its total costs.
  34-66  An advance of funds is a reimbursement for the purpose of Section
  34-67  771.008.
  34-68        Sec. 771.008.  REIMBURSEMENT <PAYMENT> PROCEDURES.  (a)  An
  34-69  agency shall reimburse an agency <pay> for the services or
  34-70  resources provided <received under this chapter> with a voucher
   35-1  payable to the providing <furnishing> agency or electronically as
   35-2  prescribed by the uniform statewide accounting system.  The voucher
   35-3  or electronic transfer must be drawn on the appropriation item or
   35-4  account of the receiving agency from which the agency would
   35-5  ordinarily make expenditures for similar services or resources. A
   35-6  receiving agency may authorize a providing agency to gain access to
   35-7  the receiving agency's appropriation items or accounts for
   35-8  reimbursements under this chapter.
   35-9        (b)  A reimbursement <payment> received by an agency for
  35-10  services or resources provided <furnished> under this chapter shall
  35-11  be credited to the appropriation items or accounts from which the
  35-12  agency's expenditures for the <furnished> services or resources
  35-13  were made.
  35-14        (c)  A payment for an intraagency transaction is accounted
  35-15  for in the same manner as an interagency transaction or an
  35-16  interdivisional transfer of money on the records of the agency,
  35-17  subject to the applicable provisions of the General Appropriations
  35-18  Act.
  35-19        (d)  The commission shall audit a reimbursement under this
  35-20  chapter for compliance with the contract after the reimbursement
  35-21  has been completed.  If the commission determines that an
  35-22  unauthorized reimbursement has occurred, the commission shall
  35-23  notify the comptroller.  On receipt of the notification, the
  35-24  comptroller shall return the reimbursement to the receiving
  35-25  agency's appropriation items or accounts.  To the extent
  35-26  practicable, the comptroller must return a reimbursement to the
  35-27  item or account from which the reimbursement was made.
  35-28        (c)  Sections 29 and 30, Chapter 641, Acts of the 72nd
  35-29  Legislature, Regular Session, 1991, are repealed.
  35-30        SECTION 4.12.  (a)  Title 7, Government Code, is amended to
  35-31  codify Chapter 427, Acts of the 72nd Legislature, Regular Session,
  35-32  1991 (Article 5190.13, Vernon's Texas Civil Statutes), by adding
  35-33  Chapter 764 to read as follows:
  35-34              CHAPTER 764.  TRI-STATE CORRIDOR COMMISSION
  35-35        Sec. 764.001.  TRI-STATE CORRIDOR COMMISSION MEMBERSHIP.
  35-36  (a)  The Tri-State Corridor Commission consists of 12 members.
  35-37        (b)  The political subdivisions in the area the commission
  35-38  serves shall jointly appoint nine voting members to the commission.
  35-39  The state highway departments of Texas, Arkansas, and Louisiana
  35-40  shall each appoint one nonvoting member to the commission.
  35-41        (c)  Members of the commission serve without compensation.
  35-42        Sec. 764.002.  POWERS AND DUTIES.  (a)  The commission shall
  35-43  make recommendations to the municipal, county, and state
  35-44  governments on the promotion of the economic, industrial, tourist,
  35-45  and highway development of the following area:
  35-46              (1)  Marion, Cass, and Bowie counties in Texas;
  35-47              (2)  Miller and Little River counties in Arkansas; and
  35-48              (3)  Caddo Parish in Louisiana.
  35-49        (b)  The commission may accept gifts or grants from any
  35-50  source to pay operating expenses of the commission.
  35-51        (c)  The commission has all powers necessary and may adopt
  35-52  rules to carry out the purposes of this chapter.
  35-53        Sec. 764.003.  APPLICABLE LAW.  The commission is subject to
  35-54  the law of Texas, Arkansas, Louisiana, and the United States
  35-55  relating to open meetings and public records.
  35-56        Sec. 764.004.  APPROPRIATIONS.  The legislature may not
  35-57  appropriate money to the commission.
  35-58        (b)  Chapter 427, Acts of the 72nd Legislature, Regular
  35-59  Session, 1991 (Article 5190.13, Vernon's Texas Civil Statutes), is
  35-60  repealed.
  35-61        SECTION 4.13.  (a)  Chapter 772, Government Code, is amended
  35-62  to codify Chapter 429, Acts of the 61st Legislature, Regular
  35-63  Session, 1969 (Article 1269l-2.1, Vernon's Texas Civil Statutes),
  35-64  by adding Section 772.008 to read as follows:
  35-65        Sec. 772.008.  PLANNING ASSISTANCE FOR POLITICAL
  35-66  SUBDIVISIONS.  (a)  The governor may, on request of the governing
  35-67  body of a political subdivision or the authorized agency of a group
  35-68  of political subdivisions:
  35-69              (1)  arrange planning assistance, including surveys,
  35-70  community renewal plans, technical services, and other planning;
   36-1  and
   36-2              (2)  arrange for a study or report on a planning
   36-3  problem submitted to the governor.
   36-4        (b)  The governor and the governing body may agree on the
   36-5  amount, if any, to be paid to the governor's office for planning
   36-6  services.
   36-7        (c)  The governor may apply for and accept grants from, and
   36-8  contract with, the federal government or other sources for any
   36-9  planning assistance, study, or report under this section.
  36-10        (d)  The governor may use the regular functions of the office
  36-11  of the governor or another state agency in providing planning
  36-12  assistance under this section.
  36-13        (e)  The governor may exercise powers under this section
  36-14  through a designated representative.
  36-15        (b)  Chapter 429, Acts of the 61st Legislature, Regular
  36-16  Session, 1969 (Article 1269l-2.1, Vernon's Texas Civil Statutes),
  36-17  is repealed.
  36-18        ARTICLE 5.  CHANGES RELATING TO HEALTH AND SAFETY CODE
  36-19        SECTION 5.01.  (a)  Sections 106.001, 106.002, and 106.009,
  36-20  Health and Safety Code, are designated as SUBCHAPTER A.  GENERAL
  36-21  PROVISIONS.
  36-22        (b)  Sections 106.003-106.008, Health and Safety Code, are
  36-23  designated as SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS, and are
  36-24  redesignated as Sections 106.021-106.026.
  36-25        (c)  Section 106.009, Health and Safety Code, is redesignated
  36-26  as Section 106.003.
  36-27        (d)  Chapter 106, Health and Safety Code, is amended to
  36-28  codify Article 4414b-1.1, Revised Statutes, and Section 4(d),
  36-29  Article 4414b-1, Revised Statutes, by adding Subchapter C to read
  36-30  as follows:
  36-31         SUBCHAPTER C.  OUTSTANDING RURAL SCHOLAR RECOGNITION
  36-32                           AND LOAN PROGRAM
  36-33        Sec. 106.041.  DEFINITIONS.  In this subchapter:
  36-34              (1)  "Advisory committee" means the outstanding rural
  36-35  scholar advisory committee.
  36-36              (2)  "Fund" means the outstanding rural scholar fund.
  36-37              (3)  "Postsecondary educational institution" means:
  36-38                    (A)  an institution of higher education, as
  36-39  defined by Section 61.003, Education Code;
  36-40                    (B)  a nonprofit, independent institution
  36-41  approved under Section 61.222, Education Code; or
  36-42                    (C)  a nonprofit, health-related school or
  36-43  program accredited by the Southern Association of Colleges and
  36-44  Schools, the Liaison Committee on Medical Education, the American
  36-45  Osteopathic Association, the Board of Nurse Examiners, the Board of
  36-46  Vocational Nurse Examiners, or, in the case of allied health, an
  36-47  accrediting body recognized by the United States Department of
  36-48  Education.
  36-49              (4)  "Program" means the outstanding rural scholar
  36-50  recognition and loan program.
  36-51              (5)  "Rural community" means a municipality in a
  36-52  nonmetropolitan county as defined by the United States Census
  36-53  Bureau in its most recent census.
  36-54        Sec. 106.042.  ADMINISTRATION.  The center shall administer
  36-55  or contract for the administration of the program.
  36-56        Sec. 106.043.  ADVISORY COMMITTEE.  (a)  The advisory
  36-57  committee shall advise the executive committee on the progress of
  36-58  the program.
  36-59        (b)  The advisory committee is composed of 12 members
  36-60  appointed by the executive committee and must include:
  36-61              (1)  a rural practicing family practice physician;
  36-62              (2)  a rural hospital administrator;
  36-63              (3)  a rural practicing registered professional nurse;
  36-64              (4)  a rural practicing allied health professional;
  36-65              (5)  a dean of a medical school;
  36-66              (6)  a dean of a nursing school;
  36-67              (7)  a dean of a school of allied health science;
  36-68              (8)  a head of a vocational/technical institution;
  36-69              (9)  a community college administrator;
  36-70              (10)  an individual knowledgeable in student financial
   37-1  assistance programs;
   37-2              (11)  a rural public school superintendent; and
   37-3              (12)  a rural resident.
   37-4        (c)  The executive committee shall consider geographical
   37-5  representation in making appointments to the advisory committee.
   37-6        (d)  Advisory committee members serve for staggered six-year
   37-7  terms, with the term of four members expiring August 31 of each
   37-8  odd-numbered year.  A member is eligible for reappointment to
   37-9  consecutive terms.
  37-10        (e)  The executive committee shall fill a vacancy on the
  37-11  advisory committee in the same manner as other appointments to the
  37-12  advisory committee.
  37-13        (f)  A member of the advisory committee is entitled to
  37-14  reimbursement for expenses incurred in performing duties under this
  37-15  subchapter in amounts not to exceed the amounts specified in the
  37-16  General Appropriations Act for travel and per diem allowances for
  37-17  state employees.
  37-18        (g)  The advisory committee may:
  37-19              (1)  elect a chairman, vice-chairman, and secretary
  37-20  from among its members; and
  37-21              (2)  adopt rules for the conduct of its activities.
  37-22        Sec. 106.044.  SELECTION OF OUTSTANDING RURAL SCHOLARS.
  37-23  (a)  The advisory committee shall select outstanding rural scholars
  37-24  through a statewide competition.
  37-25        (b)  The advisory committee shall make selections after
  37-26  considering:
  37-27              (1)  the academic credentials of the applicant;
  37-28              (2)  one or more interviews with the applicant;
  37-29              (3)  a statement written by the applicant of the
  37-30  applicant's reasons for:
  37-31                    (A)  entering the competition and a health care
  37-32  profession; and
  37-33                    (B)  wanting to provide health care services to
  37-34  rural Texans; and
  37-35              (4)  the financial support committed to the applicant
  37-36  by the applicant's sponsoring community.
  37-37        (c)  The advisory committee may not use the applicant's
  37-38  performance on a standardized test as the sole criterion to
  37-39  determine the applicant's selection as an outstanding rural
  37-40  scholar.
  37-41        (d)  The advisory committee shall recommend to the executive
  37-42  committee guidelines to be used by rural communities in the
  37-43  selection of students for nomination and sponsorship as outstanding
  37-44  rural scholars.
  37-45        (e)  An outstanding rural scholar receives public recognition
  37-46  and a certificate of award and is eligible for a forgivable loan
  37-47  under this subchapter.
  37-48        Sec. 106.045.  ELIGIBILITY FOR OUTSTANDING RURAL SCHOLAR
  37-49  COMPETITION.  (a)  To be eligible to participate in the competition
  37-50  under Section 106.044, a high school student or an undergraduate
  37-51  student at a postsecondary educational institution must:
  37-52              (1)  be nominated and sponsored by a rural community,
  37-53  which sponsorship must include financial support;
  37-54              (2)  be a Texas resident under Subchapter B, Chapter
  37-55  54, Education Code;
  37-56              (3)  if the person is a high school student, be in the
  37-57  upper 25 percent of the student's high school class if the class
  37-58  contains 48 or more students, and intend to enter a postsecondary
  37-59  educational institution; and
  37-60              (4)  if the person is an undergraduate student, be in
  37-61  the upper 25 percent of the student's class or have a cumulative
  37-62  grade average that is equal to or greater than the equivalent of a
  37-63  3.0 on a 4.0 scale, and be enrolled in a postsecondary educational
  37-64  institution.
  37-65        (b)  If a person is neither a high school student nor an
  37-66  undergraduate student, the person must be eligible for
  37-67  participation in the competition under rules adopted by the
  37-68  advisory committee.
  37-69        Sec. 106.046.  ELIGIBILITY FOR LOANS; RURAL COMMUNITY
  37-70  FINANCIAL SUPPORT.  (a)  For an outstanding rural scholar to be
   38-1  eligible for a forgivable loan, community sponsorship must include
   38-2  financial support.
   38-3        (b)  Community financial support consists of a commitment to
   38-4  fund 50 percent of the costs of a scholar's tuition, fees,
   38-5  educational materials, and living expenses.
   38-6        (c)  The financial support under this section may be
   38-7  satisfied in whole or in part by a grant, a scholarship, or private
   38-8  foundation support.
   38-9        (d)  Evidence of the financial support must be submitted with
  38-10  a community's nomination.
  38-11        Sec. 106.047.  AWARDING OF LOANS.  (a)  The advisory
  38-12  committee shall recommend to the executive committee guidelines for
  38-13  the awarding of forgivable loans to outstanding rural scholars.
  38-14        (b)  The executive committee, acting on the advice of the
  38-15  advisory committee, shall award forgivable loans to outstanding
  38-16  rural scholars based on the availability of money in the fund.
  38-17        (c)  If in any year the fund is inadequate to provide loans
  38-18  to all eligible applicants, the executive committee shall award
  38-19  forgivable loans on a priority basis according to the applicants'
  38-20  academic performance, test scores, and other criteria of
  38-21  eligibility.
  38-22        Sec. 106.048.  AMOUNT OF LOAN.  (a)  On confirmation of an
  38-23  outstanding rural scholar's admission to a postsecondary
  38-24  educational institution or on receipt of an enrollment report of
  38-25  the scholar at a postsecondary educational institution, and a
  38-26  certification of the amount of financial support needed, the
  38-27  advisory committee annually shall recommend to the executive
  38-28  committee that the committee award a forgivable loan to the scholar
  38-29  in the amount of 50 percent of the cost of the scholar's tuition,
  38-30  fees, educational materials, and living expenses.
  38-31        (b)  An outstanding rural scholar may receive another grant,
  38-32  loan, or scholarship for which the scholar is eligible in addition
  38-33  to the receipt of a forgivable loan, except that the total amount
  38-34  of funds received may not exceed the reasonable needs of the
  38-35  scholar.
  38-36        Sec. 106.049.  LOAN FORGIVENESS.  (a)  The principal balance
  38-37  and interest for one year of a forgivable loan awarded to an
  38-38  outstanding rural scholar must be forgiven for each year the
  38-39  scholar practices as a health care professional in the sponsoring
  38-40  community.
  38-41        (b)  The sponsoring community shall report through the
  38-42  executive committee to the advisory committee the length of time
  38-43  the scholar practices as a health care professional in the
  38-44  community.
  38-45        (c)  If, on the recommendation of the advisory committee, the
  38-46  executive committee finds that a sponsoring community is not in
  38-47  need of the scholar's services, the executive committee by rule may
  38-48  provide for the principal balance and interest of one year of the
  38-49  scholar's loan to be forgiven for each year the scholar practices
  38-50  in another rural community in this state.
  38-51        (d)  Any amount of loan principal or interest that is not
  38-52  forgiven under this section shall be repaid to the center with
  38-53  reasonable collection fees in a timely manner as provided by
  38-54  executive committee rule.
  38-55        Sec. 106.050.  FUND.  (a)  The outstanding rural scholar fund
  38-56  is in the state treasury.
  38-57        (b)  The fund consists of legislative appropriations, gifts,
  38-58  grants, donations, the market value of in-kind contributions, and
  38-59  principal and interest payments on forgivable loans deposited to
  38-60  the credit of the fund by the center.
  38-61        (c)  The center shall administer the fund.
  38-62        (d)  The center, with the recommendation of the advisory
  38-63  committee, shall allocate the fund, as available, for forgivable
  38-64  loans under this subchapter.
  38-65        (e)  The center shall deposit any principal and interest
  38-66  payments on forgivable loans to the credit of the fund.
  38-67        Sec. 106.051.  POSTSECONDARY EDUCATIONAL INSTITUTIONS.
  38-68  (a)  Each postsecondary educational institution shall be provided
  38-69  with a list of the outstanding rural scholars and shall be
  38-70  encouraged to recruit those scholars.
   39-1        (b)  A postsecondary educational institution annually shall
   39-2  report the progress and performance of each outstanding rural
   39-3  scholar to the advisory committee in accordance with the guidelines
   39-4  established by the executive committee.  A report shall be shared
   39-5  with the community sponsoring the scholar.
   39-6        Sec. 106.052.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
   39-7  executive committee shall adopt reasonable rules to enforce the
   39-8  requirements, conditions, and limitations under this subchapter.
   39-9        (b)  The executive committee shall set the rate of interest
  39-10  charged on a forgivable loan under this subchapter.
  39-11        (c)  The executive committee shall adopt rules necessary to
  39-12  ensure compliance with the Civil Rights Act of 1964 (42 U.S.C.
  39-13  Section 2000d et seq.)  concerning nondiscrimination in admissions.
  39-14        (d)  The executive committee shall distribute to each
  39-15  postsecondary educational institution copies of all rules adopted
  39-16  under this subchapter.
  39-17        (e)  The following provisions are repealed:
  39-18              (1)  Article 4414b-1.1, Revised Statutes; and
  39-19              (2)  Section 4(d), Article 4414b-1, Revised Statutes.
  39-20        SECTION 5.02.  (a)  Chapter 161, Health and Safety Code, is
  39-21  amended to codify Chapter 580, Acts of the 72nd Legislature,
  39-22  Regular Session, 1991 (Article 6674v-3a, Revised Statutes), by
  39-23  adding Subchapter K to read as follows:
  39-24            SUBCHAPTER K.  PROHIBITION OF CERTAIN CIGARETTE
  39-25                    OR TOBACCO PRODUCT ADVERTISING
  39-26        Sec. 161.121.  DEFINITIONS.  In this subchapter:
  39-27              (1)  "Church" means a facility that is owned by a
  39-28  religious organization and that is used primarily for religious
  39-29  services.
  39-30              (2)  "School" means a private or public elementary or
  39-31  secondary school.
  39-32              (3)  "Sign" means an outdoor medium, including a
  39-33  structure, display, light device, figure, painting, drawing,
  39-34  message, plaque, poster, or billboard, that is:
  39-35                    (A)  used to advertise or inform; and
  39-36                    (B)  visible from the main-traveled way of a
  39-37  street or highway.
  39-38              (4)  "Tobacco product" has the meaning assigned by
  39-39  Section 155.001, Tax Code.
  39-40        Sec. 161.122.  PROHIBITION; EXCEPTIONS.  (a)  A sign
  39-41  containing an advertisement for cigarettes or tobacco products may
  39-42  not be located closer than 500 feet to a church or school.
  39-43        (b)  The measurement of the distance between the sign
  39-44  containing an advertisement for cigarettes or tobacco products and
  39-45  an institution listed in Subsection (a) is from the nearest
  39-46  property line of the institution to a point on a street or highway
  39-47  closest to the sign, along street lines and in direct lines across
  39-48  intersections.
  39-49        (c)  This section does not apply to:
  39-50              (1)  a sign located on or in a facility owned or leased
  39-51  by a professional sports franchise or in a facility where
  39-52  professional sports events are held at least 10 times during a
  39-53  12-month period; or
  39-54              (2)  a contract for a cigarette or other tobacco
  39-55  product advertisement entered into before August 26, 1991.
  39-56        (d)  In Subsection (c)(1), a "facility" includes a stadium,
  39-57  arena, or events center and any land or property owned or leased by
  39-58  the professional sports franchise that is connected to or
  39-59  immediately contiguous to the stadium, arena, or events center.
  39-60        (b)  Article 6674v-3a, Revised Statutes, is repealed.
  39-61        SECTION 5.03.  Section 462.002(c), Health and Safety Code, is
  39-62  amended to correct terminology to read as follows:
  39-63        (c)  A person may initially file a paper with the county
  39-64  clerk by the use of reproduced, photocopied, or electronically
  39-65  transmitted paper if the person files the original signed copies of
  39-66  the paper with the clerk not later than the 72nd hour after the
  39-67  hour on which the initial filing is made.  If the 72-hour period
  39-68  ends on a Saturday, Sunday, or legal holiday, the filing period is
  39-69  extended until 4 p.m. on the first succeeding business day.  If
  39-70  extremely hazardous weather conditions exist or a disaster occurs,
   40-1  the presiding judge or magistrate may by written order made each
   40-2  day extend the filing period until 4 p.m. on the first succeeding
   40-3  business day.  The written order must declare that an emergency
   40-4  exists because of the weather or the occurrence of a disaster.  If
   40-5  a person detained under this chapter <code> would otherwise be
   40-6  released because the original signed copy of a paper is not filed
   40-7  within the 72-hour period but for the extension of the filing
   40-8  period under this section, the person may be detained until the
   40-9  expiration of the extended filing period.  This subsection does not
  40-10  affect another provision of this chapter <code> requiring the
  40-11  release or discharge of a person.
  40-12        SECTION 5.04.  Section 672.002(7), Health and Safety Code, is
  40-13  amended to conform more closely to the law from which it was
  40-14  derived to read as follows:
  40-15              (7)  "Physician" means a physician licensed by the
  40-16  Texas State Board of Medical Examiners or a properly credentialed
  40-17  physician who holds a commission in the uniformed services of the
  40-18  United States <armed forces> and who is serving on active duty in
  40-19  this state.
  40-20        SECTION 5.05.  If the number, letter, or designation assigned
  40-21  by this article conflicts with a number, letter, or designation
  40-22  assigned by another Act of the 73rd Legislature, the other Act
  40-23  controls, and the number, letter, or designation assigned by this
  40-24  article has no effect.
  40-25    ARTICLE 6.  CHANGES RELATING TO TITLE 7, HEALTH AND SAFETY CODE
  40-26        SECTION 6.01.  Section 531.002, Health and Safety Code, is
  40-27  amended to conform to Section 1, Chapter 569, Acts of the 72nd
  40-28  Legislature, Regular Session, 1991, by amending Subdivision (7) and
  40-29  adding Subdivisions (16) and (17) to read as follows:
  40-30              (7)  "Local agency" means:
  40-31                    (A)  a municipality, county, hospital district,
  40-32  rehabilitation district, school district, state-supported
  40-33  institution of higher education, or state-supported medical school;
  40-34  or
  40-35                    (B)  any organizational combination of two or
  40-36  more of those <the following> entities<:>
  40-37                          <(i)  a municipality;>
  40-38                          <(ii)  a county;>
  40-39                          <(iii)  a hospital district; or>
  40-40                          <(iv)  a school district>.
  40-41              (16)  "Business entity" means a sole proprietorship,
  40-42  partnership, firm, corporation, holding company, joint-stock
  40-43  company, receivership, trust, or any other entity recognized by
  40-44  law.
  40-45              (17)  "Chemical dependency" has the meaning assigned by
  40-46  Section 461.002.
  40-47        SECTION 6.02.  Section 533.007, Health and Safety Code, is
  40-48  amended to conform to Section 1, Chapter 379, Acts of the 72nd
  40-49  Legislature, Regular Session, 1991, to read as follows:
  40-50        Sec. 533.007.  ACCESS TO CRIMINAL HISTORY RECORD <CONVICTION>
  40-51  INFORMATION; CRIMINAL PENALTY FOR UNLAWFUL DISCLOSURE.  (a)  The
  40-52  department and each community center may receive from a law
  40-53  enforcement agency criminal history record information that
  40-54  indicates a conviction, probation, arrest warrant, or wanted person
  40-55  notice if the person to whom the criminal history record
  40-56  information relates:
  40-57              (1)  is:
  40-58                    (A)  an applicant or employee of the department
  40-59  or a community center;
  40-60                    (B)  an applicant or employee of a business or
  40-61  <information about the conviction of:>
  40-62              <(1)  a person who is offered employment that would
  40-63  place the person in direct contact with patients with mental
  40-64  illness or clients with mental retardation; or>
  40-65              <(2)  an employee of a> person who contracts with the
  40-66  department or a community center to provide residential services to
  40-67  patients with mental illness or clients with mental retardation who
  40-68  were furloughed or discharged from a department facility or
  40-69  community center; or
  40-70                    (C)  a volunteer or an applicant to be a
   41-1  volunteer with the department or a community center; and
   41-2              (2)  would be placed in direct contact with patients
   41-3  with mental illness or clients with mental retardation <if the
   41-4  employee's duties would place the employee in direct contact with
   41-5  the patients or clients>.
   41-6        (b)  The department shall establish for department facilities
   41-7  and community centers a uniform method of obtaining the criminal
   41-8  history record <conviction> information.  The uniform method must
   41-9  require that:
  41-10              (1)  either a complete set of fingerprints or the
  41-11  complete name of the person being investigated be submitted to the
  41-12  Department of Public Safety or to another law enforcement agency;
  41-13  and
  41-14              (2)  if fingerprints are submitted, the fingerprints be
  41-15  submitted to the Federal Bureau of Investigation for further
  41-16  information if a relevant disqualifying record or other substantive
  41-17  information is not obtained from a state or local law enforcement
  41-18  agency.
  41-19        (c)  A law enforcement agency may provide to the department
  41-20  or a community center criminal history record information <about
  41-21  the conviction> of an applicant, employee, or volunteer <a person>
  41-22  being investigated only if the information is relevant to the
  41-23  person's work duties <current or proposed employment and was
  41-24  collected> in accordance with this section.  Information <The
  41-25  department or community center is not entitled to conviction
  41-26  information that is not relevant.  Conviction information> is
  41-27  relevant <only> if it relates to <a conviction for>:
  41-28              (1)  a sexual offense;
  41-29              (2)  a drug-related offense;
  41-30              (3)  theft; or
  41-31              (4)  homicide <murder>, assault, battery, or any other
  41-32  offense involving personal injury or threat to another person.
  41-33        (d)  The department or a community center may deny employment
  41-34  or volunteer status to an applicant if:
  41-35              (1)  the department or community center determines that
  41-36  the applicant's criminal history record information <a previous
  41-37  criminal conviction> indicates that the person <applicant> is not
  41-38  qualified or suitable; or
  41-39              (2)  the applicant fails to provide a complete set of
  41-40  fingerprints if the department establishes that method of obtaining
  41-41  criminal history record <conviction> information.
  41-42        (e)  All criminal history record <conviction> information
  41-43  received by the department or a community center is privileged
  41-44  information and is for the exclusive use of the department and the
  41-45  community centers.  The information may not be released or
  41-46  otherwise disclosed to any other person or agency, except the
  41-47  information may be released or disclosed:
  41-48              (1)  to the contractor employing the person;
  41-49              (2)  on court order; or
  41-50              (3)  with the consent of the person being investigated.
  41-51        (f)  The department or community center shall collect and
  41-52  destroy criminal history record <conviction> information relating
  41-53  to a person immediately after the department, the community center,
  41-54  or a contractor makes a <an employment> decision or takes any
  41-55  personnel action relating to the person.
  41-56        (g)  A person commits an offense if the person releases or
  41-57  discloses in violation of this section criminal history record
  41-58  <conviction> information received by the department or a community
  41-59  center.  An offense under this subsection is a felony of the second
  41-60  degree.
  41-61        (h)  The Department of Public Safety is required to provide
  41-62  conviction information to the department or a community center only
  41-63  if a written agreement provides for the reimbursement of the
  41-64  Department of Public Safety for the costs it incurs in providing
  41-65  the information.
  41-66        (i)  The board shall adopt rules relating to the use of
  41-67  information obtained under this section, including rules that
  41-68  prohibit an adverse personnel action based on arrest warrant or
  41-69  wanted persons information received by the department.
  41-70        SECTION 6.03.  Section 533.035, Health and Safety Code, is
   42-1  amended to conform to Section 2, Chapter 569, Acts of the 72nd
   42-2  Legislature, Regular Session, 1991, by amending Subsections (b) and
   42-3  (c) and adding Subsection (d) to read as follows:
   42-4        (b)  The department by contract or other method of allocation
   42-5  may disburse to a local mental health and mental retardation
   42-6  authority department <all> federal mental health <block grant>
   42-7  funds and department state funds to be spent in the local service
   42-8  area for:
   42-9              (1)  community mental health and<,> mental
  42-10  retardation<, and substance abuse> services; and
  42-11              (2)  chemical dependency services for persons who are
  42-12  dually diagnosed as having both chemical dependency and mental
  42-13  illness or mental retardation <to be spent in the local service
  42-14  area>.
  42-15        (c)  A local mental health and mental retardation authority,
  42-16  with the department's approval, shall use <by subcontract or other
  42-17  method of allocation disburse> the funds received under Subsection
  42-18  (b) to provide mental health, mental retardation, and chemical
  42-19  dependency <substance abuse> services in the local service area or
  42-20  to subcontract for those services.
  42-21        (d)  A local mental health and mental retardation authority
  42-22  shall demonstrate to the department that the services that the
  42-23  authority provides directly or through subcontractors and that
  42-24  involve state funds comply with relevant state standards.
  42-25        SECTION 6.04.  Subchapter B, Chapter 533, Health and Safety
  42-26  Code, is amended to conform to Section 6, Chapter 627, Acts of the
  42-27  72nd Legislature, Regular Session, 1991, by adding Section 533.0415
  42-28  to read as follows:
  42-29        Sec. 533.0415.  MEMORANDUM OF UNDERSTANDING ON INTERAGENCY
  42-30  TRAINING.  (a)  The department, the Texas Department of Human
  42-31  Services, the Texas Youth Commission, the Texas Juvenile Probation
  42-32  Commission, and the Central Education Agency by rule shall adopt a
  42-33  joint memorandum of understanding to develop interagency training
  42-34  for the staffs of the agencies involved in the functions of
  42-35  assessment, case planning, case management, and in-home or direct
  42-36  delivery of services to children, youth, and their families.  The
  42-37  memorandum must:
  42-38              (1)  outline the responsibility of each agency in
  42-39  coordinating and developing a plan for interagency training on
  42-40  individualized assessment and effective intervention and treatment
  42-41  services for children and dysfunctional families; and
  42-42              (2)  provide for the establishment of an interagency
  42-43  task force to:
  42-44                    (A)  develop a training program to include
  42-45  identified competencies, content, and hours for completion of the
  42-46  training with at least 20 hours of training required each year
  42-47  until the program is completed;
  42-48                    (B)  design a plan for implementing the program,
  42-49  including regional site selection, frequency of training, and
  42-50  selection of experienced clinical public and private professionals
  42-51  or consultants to lead the training;
  42-52                    (C)  monitor, evaluate, and revise the training
  42-53  program, including the development of additional curricula based on
  42-54  future training needs identified by staff and professionals; and
  42-55                    (D)  submit a report to the governor, lieutenant
  42-56  governor, and speaker of the house of representatives by October 15
  42-57  of each even-numbered year.
  42-58        (b)  The task force consists of:
  42-59              (1)  one clinical professional and one training staff
  42-60  member from each agency, appointed by that agency; and
  42-61              (2)  10 private sector clinical professionals with
  42-62  expertise in dealing with troubled children, youth, and
  42-63  dysfunctional families, two of whom are appointed by each agency.
  42-64        (c)  The task force shall meet at the call of the department.
  42-65        (d)  The department shall act as the lead agency in
  42-66  coordinating the development and implementation of the memorandum.
  42-67        (e)  The agencies shall review and by rule revise the
  42-68  memorandum not later than August each year.
  42-69        SECTION 6.05.  Section 533.061(f), Health and Safety Code, is
  42-70  amended to conform to Section 2, Chapter 248, Acts of the 72nd
   43-1  Legislature, Regular Session, 1991, to read as follows:
   43-2        (f)  Not later than August 30 of each odd-numbered year, the
   43-3  council shall review the plan submitted by the department under
   43-4  Section 533.062, make changes the council considers necessary, and
   43-5  approve the final plan.
   43-6        SECTION 6.06.  Sections 533.062(a) and (c), Health and Safety
   43-7  Code, are amended to conform to Section 1, Chapter 248, Acts of the
   43-8  72nd Legislature, Regular Session, 1991, to read as follows:
   43-9        (a)  The department shall biennially <annually> plan for the
  43-10  creation of new beds in the ICF-MR program.
  43-11        (c)  Each plan shall cover the subsequent fiscal biennium
  43-12  <year>.  Not later than July 1 of each odd-numbered year, the
  43-13  department shall submit the plan to the Interagency Council on
  43-14  ICF-MR Facilities for approval.
  43-15        SECTION 6.07.  Section 534.001, Health and Safety Code, is
  43-16  amended to correct a reference and to conform more closely to the
  43-17  source law from which it was derived and to Section 3, Chapter 569,
  43-18  Acts of the 72nd Legislature, Regular Session, 1991, by amending
  43-19  Subsections (c) and (d) and adding Subsection (e) to read as
  43-20  follows:
  43-21        (c)  A community center is:
  43-22              (1)  an agency of the state, a <state agency,>
  43-23  governmental unit, and a unit of local government, as defined and
  43-24  specified by Chapters 101 and 102, Civil Practice and Remedies
  43-25  Code; and
  43-26              (2)  a local government, as defined by Section 791.003,
  43-27  Government Code <Section 3, The Interlocal Cooperation Act (Article
  43-28  4413(32c), Vernon's Texas Civil Statutes)>.
  43-29        (d)  A community center may be established only if:
  43-30              (1)  the proposed center submits to the department a
  43-31  copy of the contract between the participating local agencies, if
  43-32  applicable;
  43-33              (2)  the department approves the proposed center's plan
  43-34  to develop and make available to the region's residents an
  43-35  effective mental health or mental retardation program, or both,
  43-36  through a community center that is appropriately structured to
  43-37  include the financial, physical, and personnel resources necessary
  43-38  to meet the region's needs; and
  43-39              (3)  the department <deliver mental health or mental
  43-40  retardation services and> determines that the center can
  43-41  appropriately, effectively, and efficiently provide those services
  43-42  in the region.
  43-43        (e)  A community center established under Subsection (d)
  43-44  <this section> may operate only for the purposes defined in the
  43-45  center's plan.  The board by rule shall specify the elements that
  43-46  must be included in a plan and shall prescribe the procedure for
  43-47  submitting and approving a center's plan.
  43-48        SECTION 6.08.  Subchapter A, Chapter 534, Health and Safety
  43-49  Code, is amended to conform more closely to the source law from
  43-50  which it was derived and to Section 4, Chapter 569, Acts of the
  43-51  72nd Legislature, Regular Session, 1991, by adding Section 534.0015
  43-52  to read as follows:
  43-53        Sec. 534.0015.  PURPOSE AND POLICY.  (a)  A community center
  43-54  created under this subchapter is intended to be a vital component
  43-55  in a continuum of services for persons in this state who are
  43-56  mentally ill or mentally retarded.
  43-57        (b)  It is the policy of this state that community centers
  43-58  strive to develop services for persons who are mentally ill or
  43-59  mentally retarded, and may provide requested services to persons
  43-60  with a chemical dependency, that are effective alternatives to
  43-61  treatment in a large residential facility.
  43-62        SECTION 6.09.  Section 534.002, Health and Safety Code, is
  43-63  amended to conform to Section 4, Chapter 569, Acts of the 72nd
  43-64  Legislature, Regular Session, 1991, to read as follows:
  43-65        Sec. 534.002.  Board of Trustees for Center Established by
  43-66  One Local Agency.  The board of trustees of a community center
  43-67  established by one local agency is composed of:
  43-68              (1)  the members of the local agency's governing body;
  43-69  or
  43-70              (2)  not fewer than five or more than nine qualified
   44-1  voters who reside in the region to be served by the center and who
   44-2  are appointed by the local agency's governing body.
   44-3        SECTION 6.10.  Section 534.003(c), Health and Safety Code, is
   44-4  amended to conform to Section 3, Chapter 569, Acts of the 72nd
   44-5  Legislature, Regular Session, 1991, to read as follows:
   44-6        (c)  When the center is established, the governing bodies
   44-7  shall enter into a contract that stipulates the number of board
   44-8  members and the group from which the members are chosen.  They may
   44-9  renegotiate or amend the contract as necessary to change the:
  44-10              (1)  method of choosing the members; or
  44-11              (2)  membership of the board of trustees to more
  44-12  accurately reflect the ethnic and geographic diversity of the local
  44-13  service area.
  44-14        SECTION 6.11.  Section 534.004, Health and Safety Code, is
  44-15  amended to conform to Section 4, Chapter 569, Acts of the 72nd
  44-16  Legislature, Regular Session, 1991, to read as follows:
  44-17        Sec. 534.004.  PROCEDURES RELATING TO BOARD OF TRUSTEES
  44-18  MEMBERSHIP.  (a)  The local agency or organizational combination of
  44-19  local agencies that establishes a community center shall prescribe:
  44-20              (1)  the application procedure for a position on the
  44-21  board of trustees;
  44-22              (2)  the procedure and criteria for making appointments
  44-23  to the board of trustees;
  44-24              (3)  the procedure for posting notice of and filling a
  44-25  vacancy on the board of trustees; <and>
  44-26              (4)  the grounds and procedure for removing a member of
  44-27  the board of trustees; and
  44-28              (5)  a procedure to ensure that an appointed member of
  44-29  a board of trustees appointed by a local agency or organizational
  44-30  combination of local agencies primarily located in only one county
  44-31  serves not more than four consecutive and complete two-year terms.
  44-32        (b)  The local agency or organizational combination of local
  44-33  agencies that appoints the board of trustees shall, in appointing
  44-34  the members, attempt to reflect the ethnic and geographic diversity
  44-35  of the local service area the community center serves.  The local
  44-36  agency or organizational combination shall include on the board of
  44-37  trustees one or more persons otherwise qualified under this chapter
  44-38  who are consumers of the types of services the center provides or
  44-39  who are family members of consumers of the types of services the
  44-40  center provides.
  44-41        SECTION 6.12.  Section 534.005, Health and Safety Code, is
  44-42  amended to conform to Section 4, Chapter 569, Acts of the 72nd
  44-43  Legislature, Regular Session, 1991, by adding Subsection (c) to
  44-44  read as follows:
  44-45        (c)  If the local agency or organizational combination of
  44-46  local agencies that appoints the board of trustees is primarily
  44-47  located in only one county, a person appointed to the board of
  44-48  trustees may not serve more than four consecutive and complete
  44-49  two-year terms.
  44-50        SECTION 6.13.  Subchapter A, Chapter 534, Health and Safety
  44-51  Code, is amended to conform to Section 4, Chapter 569, Acts of the
  44-52  72nd Legislature, Regular Session, 1991, by amending Section
  44-53  534.006 and adding Section 534.0065 to read as follows:
  44-54        Sec. 534.006.  TRAINING.  (a)  The board by rule shall
  44-55  establish:
  44-56              (1)  an annual training program for members of a board
  44-57  of trustees administered by the professional staff of that
  44-58  community center, including the center's legal counsel; and
  44-59              (2)  an advisory committee to develop training
  44-60  guidelines that includes representatives of advocates for persons
  44-61  with mental illness or mental retardation and representatives of
  44-62  boards of trustees.
  44-63        (b)  Before a member of a board of trustees may assume
  44-64  office, the member shall attend at least one training session
  44-65  administered by that center's professional staff to receive
  44-66  information relating to:
  44-67              (1)  the enabling legislation that created the
  44-68  community center;
  44-69              (2)  the programs the community center operates;
  44-70              (3)  the community center's budget for that program
   45-1  year;
   45-2              (4)  the results of the most recent formal audit of the
   45-3  community center;
   45-4              (5)  the requirements of the open meetings law, Chapter
   45-5  271, Acts of the 60th Legislature, Regular Session, 1967 (Article
   45-6  6252-17, Vernon's Texas Civil Statutes), and the open records law,
   45-7  Chapter 424, Acts of the 63rd Legislature, Regular Session, 1973
   45-8  (Article 6252-17a, Vernon's Texas Civil Statutes);
   45-9              (6)  the requirements of conflict of interest laws and
  45-10  other laws relating to public officials; and
  45-11              (7)  any ethics policies adopted by the community
  45-12  center <EFFECT ON PREVIOUS BOARDS.  (a)  This subchapter does not
  45-13  affect the validity of:>
  45-14              <(1)  a community center or board of trustees
  45-15  established or appointed before September 1, 1969; or>
  45-16              <(2)  a board selection committee appointed by an
  45-17  organizational combination of more than six local agencies under
  45-18  Section 3.02(a), Chapter 67, Acts of the 59th Legislature, Regular
  45-19  Session, 1965, as it read preceding September 1, 1969.>
  45-20        <(b)  A community center or board of trustees established or
  45-21  appointed under prior law may be reorganized to comply with this
  45-22  subchapter>.
  45-23        Sec. 534.0065.  QUALIFICATIONS; CONFLICT OF INTEREST;
  45-24  REMOVAL.  (a)  As a local public official, a member of the board of
  45-25  trustees of a community center shall uphold the member's position
  45-26  of public trust by meeting and maintaining the applicable
  45-27  qualifications for membership and by complying with the applicable
  45-28  requirements relating to conflicts of interest.
  45-29        (b)  A person is not eligible for appointment as a member of
  45-30  a board of trustees if the person or the person's spouse:
  45-31              (1)  owns or controls, directly or indirectly, more
  45-32  than a 10 percent interest in a business entity or other
  45-33  organization receiving funds from the community center by contract
  45-34  or other method; or
  45-35              (2)  uses or receives a substantial amount of tangible
  45-36  goods or funds from the community center, other than:
  45-37                    (A)  compensation or reimbursement authorized by
  45-38  law for board of trustees membership, attendance, or expenses; or
  45-39                    (B)  as a consumer or as a family member of a
  45-40  client or patient receiving services from the community center.
  45-41        (c)  The primary residence of a member of the board of
  45-42  trustees must be in the local service area the member represents.
  45-43        (d)  A member of the board of trustees is subject to Chapter
  45-44  171, Local Government Code.
  45-45        (e)  A member of the board of trustees may not:
  45-46              (1)  refer for services a client or patient to a
  45-47  business entity owned or controlled by a member of the board of
  45-48  trustees, unless the business entity is the only business entity
  45-49  that provides the needed services within the jurisdiction of the
  45-50  community center;
  45-51              (2)  use a community center facility in the conduct of
  45-52  a business entity owned or controlled by that member;
  45-53              (3)  solicit, accept, or agree to accept from another
  45-54  person or business entity a benefit in return for the member's
  45-55  decision, opinion, recommendation, vote, or other exercise of
  45-56  discretion as a local public official or for a violation of a duty
  45-57  imposed by law;
  45-58              (4)  receive any benefit for the referral of a client
  45-59  or a patient to the community center or to another business entity;
  45-60              (5)  appoint, vote for, or confirm the appointment of a
  45-61  person to a paid office or position with the community center if
  45-62  the person is related to a member of the board of trustees by
  45-63  affinity within the second degree or by consanguinity within the
  45-64  third degree; or
  45-65              (6)  solicit or receive a political contribution from a
  45-66  supplier to or contractor with the community center.
  45-67        (f)  Not later than the date on which a member of the board
  45-68  of trustees takes office by appointment or reappointment and not
  45-69  later than the anniversary of that date, each member shall annually
  45-70  execute and file with the community center an affidavit
   46-1  acknowledging that the member has read the requirements for
   46-2  qualification, conflict of interest, and removal prescribed by this
   46-3  chapter.
   46-4        (g)  In addition to any grounds for removal adopted under
   46-5  Section 534.004(a), it is a ground for removal of a member of a
   46-6  board of trustees if the member:
   46-7              (1)  violates Chapter 171, Local Government Code;
   46-8              (2)  is not eligible for appointment to the board of
   46-9  trustees at the time of appointment as provided by Subsections (b)
  46-10  and (c);
  46-11              (3)  does not maintain during service on the board of
  46-12  trustees the qualifications required by Subsections (b) and (c);
  46-13              (4)  violates a provision of Subsection (e);
  46-14              (5)  violates a provision of Section 534.0115; or
  46-15              (6)  does not execute the affidavit required by
  46-16  Subsection (f).
  46-17        (h)  If a board of trustees is composed of members of the
  46-18  governing body of a local agency or organizational combination of
  46-19  local agencies, this section applies only to the qualifications for
  46-20  and removal from membership on the board of trustees.
  46-21        SECTION 6.14.  Section 534.008(a), Health and Safety Code, is
  46-22  amended to conform to Section 4, Chapter 569, Acts of the 72nd
  46-23  Legislature, Regular Session, 1991, to read as follows:
  46-24        (a)  The board of trustees is responsible for the effective
  46-25  administration of <shall administer> the community center.
  46-26        SECTION 6.15.  Section 534.009, Health and Safety Code, is
  46-27  amended to conform to Section 4, Chapter 569, Acts of the 72nd
  46-28  Legislature, Regular Session, 1991, by amending Subsection (c) and
  46-29  adding Subsection (d) to read as follows:
  46-30        (c)  The board of trustees shall keep a record of its
  46-31  proceedings in accordance with the open meetings law (Article
  46-32  6252-17, Vernon's Texas Civil Statutes).  The record is open for
  46-33  public inspection in accordance with that law.
  46-34        (d)  The board of trustees shall send to the department and
  46-35  each local agency that appoints the members a copy of the approved
  46-36  minutes of board of trustees meetings by:
  46-37              (1)  mailing a copy appropriately addressed and with
  46-38  the necessary postage paid using the United States postal service;
  46-39  or
  46-40              (2)   another method agreed to by the board of trustees
  46-41  and the local agency.
  46-42        SECTION 6.16.  Section 534.010(b), Health and Safety Code, is
  46-43  amended to conform to Section 4, Chapter 569, Acts of the 72nd
  46-44  Legislature, Regular Session, 1991, to read as follows:
  46-45        (b)  The board of trustees shall:
  46-46              (1)  adopt a written policy governing the powers that
  46-47  may be delegated to the executive director; and
  46-48              (2)  annually report to each local agency that appoints
  46-49  the members the executive director's total compensation and
  46-50  benefits <executive director has the powers delegated by the board
  46-51  of trustees.  Those powers are subject to the policy direction of
  46-52  the board of trustees>.
  46-53        SECTION 6.17.  Section 534.011, Health and Safety Code, is
  46-54  amended to conform to Section 4, Chapter 569, Acts of the 72nd
  46-55  Legislature, Regular Session, 1991, to read as follows:
  46-56        Sec. 534.011.  PERSONNEL.  (a)  The <board of trustees or>
  46-57  executive director, in accordance with the policies of the board of
  46-58  trustees, shall <may:>
  46-59              <(1)>  employ and train personnel to administer the
  46-60  community center's programs and services.  The community center
  46-61  may<; and>
  46-62              <(2)>  recruit <and train> those personnel and contract
  46-63  for recruiting and training purposes <that purpose>.
  46-64        (b)  <The board of trustees shall adopt standardized
  46-65  qualifications for personnel positions for the community center
  46-66  that are consistent with the standards developed by the
  46-67  commissioner under Section 532.011(e).>
  46-68        <(c)>  The board of trustees shall provide employees of the
  46-69  community center with appropriate rights, privileges, and benefits
  46-70  <that are consistent with the rights, privileges, and benefits
   47-1  available to employees of the local agencies that establish the
   47-2  center>.
   47-3        (c) <(d)>  The board of trustees may provide workers'
   47-4  compensation benefits.
   47-5        (d) <(e)>  The board of trustees shall prescribe the number
   47-6  of employees and their salaries<, subject to the commissioner's
   47-7  approval>.  The board of trustees may choose to set salaries and
   47-8  benefits in compliance with a market analysis or internal salary
   47-9  study.  If an internal salary study is used, the board of trustees
  47-10  shall conduct the study in accordance with the guidelines
  47-11  established by the commissioner.
  47-12        (e)  Instead of using a market analysis or internal salary
  47-13  study to establish salaries and benefits, the board of trustees may
  47-14  use the state position classification plan and the General
  47-15  Appropriations Act to determine the appropriate classification and
  47-16  relative compensation of officers and employees.  The board of
  47-17  trustees may pay salaries in amounts less than those provided by
  47-18  the General Appropriations Act.  For a position not on the
  47-19  classification plan, the board of trustees shall set the
  47-20  compensation according to guidelines adopted by the commissioner.
  47-21  The board of trustees may petition the department for approval to
  47-22  exclude a position from the position classification plan and to
  47-23  provide a stated salary for that position that exceeds the amount
  47-24  prescribed by the General Appropriations Act for the classified
  47-25  position.
  47-26        (f)  During a management audit of a community center, the
  47-27  department is entitled to confirm the method the center used to
  47-28  determine salaries and benefits.
  47-29        SECTION 6.18.  Subchapter A, Chapter 534, Health and Safety
  47-30  Code, is amended to conform to Section 4, Chapter 569, Acts of the
  47-31  72nd Legislature, Regular Session, 1991, by adding Section 534.0115
  47-32  to read as follows:
  47-33        Sec. 534.0115.  NEPOTISM.  (a)  The board of trustees or
  47-34  executive director may not hire as a paid officer or employee of
  47-35  the community center a person who is related to a member of the
  47-36  board of trustees by affinity within the second degree or by
  47-37  consanguinity within the third degree.
  47-38        (b)  An officer or employee who is related to a member of the
  47-39  board of trustees in a prohibited manner may continue to be
  47-40  employed if the person began the employment not later than the 31st
  47-41  day before the date on which the member was appointed.
  47-42        (c)  The officer or employee or the member of the board of
  47-43  trustees shall resign if the officer or employee began the
  47-44  employment later than the 31st day before the date on which the
  47-45  member was appointed.
  47-46        (d)  If an officer or employee is permitted to remain in
  47-47  employment under Subsection (b), the related member of the board of
  47-48  trustees may not participate in the deliberation of or voting on an
  47-49  issue that is specifically applicable to the officer or employee
  47-50  unless the issue affects an entire class or category of employees.
  47-51        SECTION 6.19.  Sections 534.012(a) and (b), Health and Safety
  47-52  Code, are amended to conform to Section 4, Chapter 569, Acts of the
  47-53  72nd Legislature, Regular Session, 1991, to read as follows:
  47-54        (a)  The board of trustees may appoint committees, including
  47-55  medical committees, to advise the board of trustees on matters
  47-56  relating to <the administration of> mental health and mental
  47-57  retardation services.
  47-58        (b)  Each committee must be composed of at least three <five>
  47-59  members.
  47-60        SECTION 6.20.  Section 534.014, Health and Safety Code, is
  47-61  amended to conform to Sections 4 and 13, Chapter 569, Acts of the
  47-62  72nd Legislature, Regular Session, 1991, to read as follows:
  47-63        Sec. 534.014.  BUDGET; REQUEST FOR FUNDS.  (a)  Each
  47-64  community center shall annually provide to each local agency that
  47-65  appoints members to the board of trustees a copy of the center's:
  47-66              (1)  approved fiscal year operating budget;
  47-67              (2)  most recent annual financial audit; and
  47-68              (3)  staff salaries by position.
  47-69        (b)  The board of trustees shall annually submit to each
  47-70  local agency that appoints the members a request for funds or
   48-1  in-kind assistance to support the center <PLAN FOR SERVICES.  As
   48-2  soon as possible after a community center is established, the board
   48-3  of trustees shall submit to the department:>
   48-4              <(1)  a copy of the contract between the participating
   48-5  local agencies, if applicable; and>
   48-6              <(2)  a plan, within the projected financial, physical,
   48-7  and personnel resources of the region to be served, to develop and
   48-8  make available to the region's residents an effective mental health
   48-9  or mental retardation services program, or both, through one or
  48-10  more community centers>.
  48-11        SECTION 6.21.  Subchapter A, Chapter 534, Health and Safety
  48-12  Code, is amended to conform to Section 6, Chapter 569, Acts of the
  48-13  72nd Legislature, Regular Session, 1991, by adding Section 534.0155
  48-14  to read as follows:
  48-15        Sec. 534.0155.  FOR WHOM SERVICES MAY BE PROVIDED.  (a)  This
  48-16  subtitle does not prevent a community center from providing
  48-17  services to a person with chemical dependency or to a person with a
  48-18  mental disability, as that term is defined by Section 535.001.
  48-19        (b)  A community center may provide those services by
  48-20  contracting with a public or private agency in addition to the
  48-21  department.
  48-22        (c)  A community center may not provide services to a person
  48-23  with a disability that is not listed in the definition of person
  48-24  with a mental disability provided by Section 535.001, except that a
  48-25  community center that, on or before September 1, 1991, has
  48-26  contracted to provide services to a person with a disability that
  48-27  is not listed in that definition may continue to receive funding
  48-28  and provide services to that person for the term of the contract.
  48-29        SECTION 6.22.  Section 534.017(a), Health and Safety Code, is
  48-30  amended to conform to Section 7, Chapter 569, Acts of the 72nd
  48-31  Legislature, Regular Session, 1991, to read as follows:
  48-32        (a)  A community center shall charge reasonable fees for <to
  48-33  cover the cost of> services the center provides, unless prohibited
  48-34  by other service contracts or law.
  48-35        SECTION 6.23.  Sections 534.018, 534.019, and 534.020, Health
  48-36  and Safety Code, are amended to conform to Section 4, Chapter 569,
  48-37  Acts of the 72nd Legislature, Regular Session, 1991, to read as
  48-38  follows:
  48-39        Sec. 534.018.  GIFTS AND GRANTS.  A community center may
  48-40  accept gifts and grants of money, personal property, and real
  48-41  property to use in providing <administering> the center's programs
  48-42  and services.
  48-43        Sec. 534.019.  CONTRIBUTION BY LOCAL AGENCY.  A participating
  48-44  local agency may contribute land, buildings, facilities, other real
  48-45  and personal property, personnel, and funds to administer the
  48-46  community center's programs and services.
  48-47        Sec. 534.020.  ACQUISITION AND CONSTRUCTION OF PROPERTY AND
  48-48  FACILITIES BY COMMUNITY CENTER.  (a)  A community center may
  48-49  purchase or lease real and personal property and may construct
  48-50  buildings and facilities.
  48-51        (b)  The board of trustees shall require that an appraiser
  48-52  certified by a master appraisal institute conduct an independent
  48-53  appraisal of real estate the community center intends to purchase.
  48-54  The board of trustees may waive this requirement if the purchase
  48-55  price is less than the value listed for the property by the local
  48-56  appraisal district and the property has been appraised by the local
  48-57  appraisal district within the preceding two years.  A community
  48-58  center may not purchase or lease property for an amount that is
  48-59  greater than the property's appraised value unless:
  48-60              (1)  the purchase or lease of that property at that
  48-61  price is necessary;
  48-62              (2)  the board of trustees documents in the official
  48-63  minutes the reasons why the purchase or lease is necessary at that
  48-64  price; and
  48-65              (3)  a majority of the board approves the transaction.
  48-66        (c)  The board of trustees shall establish in accordance with
  48-67  relevant department rules competitive bidding procedures and
  48-68  practices for capital purchases and for purchases involving
  48-69  department funds or required local matching funds.
  48-70        SECTION 6.24.  Section 534.022, Health and Safety Code, is
   49-1  amended to conform to Section 5, Chapter 569, and Section 1,
   49-2  Chapter 596, Acts of the 72nd Legislature, Regular Session, 1991,
   49-3  by amending Subsection (b) and adding Subsection (d) to read as
   49-4  follows:
   49-5        (b)  The community center shall issue the bonds or notes in
   49-6  accordance with the Bond Procedures Act of 1981 (Article 717k-6,
   49-7  Vernon's Texas Civil Statutes), and Chapter 656, Acts of the 68th
   49-8  Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
   49-9  Civil Statutes).  The attorney general must approve the bonds <or
  49-10  notes> before issuance.
  49-11        (d)  The board shall review the issuance of bonds or notes
  49-12  under this section and for each issuance shall make a finding of
  49-13  whether the proceeds are to be expended on projects or purchases
  49-14  that are related to the provision of services.  Not later than
  49-15  November 1 of each year, the board shall submit to the Legislative
  49-16  Budget Board, the Governor's Office of Budget and Planning, and the
  49-17  state auditor a report that describes the use and amount of
  49-18  proceeds derived from bonds and notes issued by community centers
  49-19  in the preceding fiscal year.
  49-20        SECTION 6.25.  Section 534.023(b), Health and Safety Code, is
  49-21  amended to conform to Section 5, Chapter 569, Acts of the 72nd
  49-22  Legislature, Regular Session, 1991, to read as follows:
  49-23        (b)  The agreement must include a provision for a
  49-24  lease-purchase arrangement between <among> the community center<,
  49-25  the governing body of each local agency establishing the center,>
  49-26  and the department.
  49-27        SECTION 6.26.  Sections 534.026 and 534.030, Health and
  49-28  Safety Code, are amended to conform to Section 5, Chapter 569, Acts
  49-29  of the 72nd Legislature, Regular Session, 1991, to read as follows:
  49-30        Sec. 534.026.  Terms of Construction or Renovation Agreement.
  49-31  (a)  In an agreement to construct a facility under Section 534.023
  49-32  or to renovate a facility under Section 534.024, the department
  49-33  shall specify the lease or loan payments that include the
  49-34  amortization of the cost of the facility or renovation <for not
  49-35  more than 40 years>.
  49-36        (b)  The agreement must <may> provide for reasonable interest
  49-37  to be paid by the community center on the total cost of the
  49-38  facility or renovation.  The rate of interest may not exceed 50
  49-39  percent of the market interest rate, as determined by the
  49-40  department, that a local agency that established the community
  49-41  center would pay at the time the agreement is made if the agency
  49-42  issued revenue bonds to construct or renovate the facility payable
  49-43  for the same period as the period of the agreement to construct or
  49-44  renovate the facility.
  49-45        Sec. 534.030.  STATE FUNDS.  (a)  A community center may use
  49-46  state funds, including state contract funds, to operate a facility
  49-47  constructed under Section 534.023 or renovated under Section
  49-48  534.024.  The total amount of state funds used in the actual
  49-49  operation of the facility may not exceed an amount equal to 60
  49-50  percent of the facility's total operating budget.
  49-51        (b)  In determining a facility's total operating budget, a
  49-52  community center may not include lease-purchase payments or
  49-53  renovation funding repayments.
  49-54        (c)  <A community center may not use state funds to make
  49-55  lease-purchase payments or renovation funding repayments.>
  49-56        <(d)>  The construction, renovation, or operation of a
  49-57  facility under Sections 534.023-534.029 does not constitute grounds
  49-58  for a community center to receive contract funds that are in
  49-59  addition to the contract funds the center would otherwise receive
  49-60  under the board's rules governing distribution of those funds.
  49-61        SECTION 6.27.  Sections 534.033(a) and (c), Health and Safety
  49-62  Code, are amended to conform to Section 6, Chapter 569, Acts of the
  49-63  72nd Legislature, Regular Session, 1991, to read as follows:
  49-64        (a)  It is the intent of the legislature that the department
  49-65  limit its control over, and routine reviews of, community center
  49-66  programs to those programs that:
  49-67              (1)  use department <state> funds or use required local
  49-68  funds that are matched with department <state> funds;
  49-69              (2)  provide core or required services;
  49-70              (3)  provide services to former clients or patients of
   50-1  a department facility; or
   50-2              (4)  are affected by litigation in which the department
   50-3  is a defendant.
   50-4        (c)  The department may determine whether a particular
   50-5  program uses department <state> funds or uses required local
   50-6  matching funds.
   50-7        SECTION 6.28.  Subchapter A, Chapter 534, Health and Safety
   50-8  Code, is amended to conform to Section 8, Chapter 569, Acts of the
   50-9  72nd Legislature, Regular Session, 1991, by adding Section 534.035
  50-10  to read as follows:
  50-11        Sec. 534.035.  PROGRAM REVIEW AND MANAGEMENT AUDIT.  (a)  The
  50-12  department by rule shall establish as a contract requirement for
  50-13  community centers program review and management audit procedures to
  50-14  ensure that reviews and audits are conducted in sufficient quantity
  50-15  and type to provide reasonable assurance that adequate and
  50-16  appropriate fiscal controls exist in community centers.
  50-17        (b)  The department shall conduct periodic program reviews at
  50-18  each community center.  The commissioner or the commissioner's
  50-19  designee shall prepare, publish, and distribute a formal procedure
  50-20  for the periodic program reviews.
  50-21        (c)  The department shall conduct periodic management audits
  50-22  at each community center.  The director of the internal audit unit,
  50-23  with the approval of the board's audit committee, shall prepare and
  50-24  publish a formal risk assessment procedure for the audits.  The
  50-25  department shall include in a management audit a comprehensive
  50-26  review of the center's annual financial and compliance audit
  50-27  activities required under Section 534.068.
  50-28        (d)  After a program review or management audit is conducted,
  50-29  the department shall send to the community center a written report
  50-30  that identifies in clear language each significant deficiency
  50-31  identified and each question raised by the review or audit.
  50-32        (e)  The board of trustees shall provide to the department a
  50-33  written response to the concerns raised by the review or audit
  50-34  within the period prescribed by department rule.  The response
  50-35  must:
  50-36              (1)  describe any action taken or to be taken to
  50-37  correct an identified deficiency;
  50-38              (2)  provide narrative responses to questions relating
  50-39  to policies or procedures raised in the review or audit; and
  50-40              (3)  give notice of any disagreement the board of
  50-41  trustees has with a specific finding of the review or audit.
  50-42        (f)  Within the period prescribed by department rules, the
  50-43  commissioner or the board's audit committee shall review the
  50-44  community center's responses and shall notify in writing the
  50-45  community center of any inadequacy or deficiency found in the
  50-46  response.  The community center may provide additional responses to
  50-47  the commissioner.  The commissioner shall establish a reasonable
  50-48  deadline for receiving responses.
  50-49        (g)  If, by the date prescribed by the commissioner, the
  50-50  community center fails to respond to a deficiency identified in a
  50-51  review or audit to the satisfaction of the commissioner, the
  50-52  department may discontinue the transfer of related department funds
  50-53  to the community center until the dispute is resolved.  The
  50-54  community center is entitled to notice and an opportunity for a
  50-55  hearing before the transfer of department funds is discontinued.
  50-56  The board by rule shall prescribe the hearings procedure.
  50-57        (h)  The department may withhold funds during the pendency of
  50-58  an appeal to a court if the department hearing upholds the
  50-59  discontinuation of the funds.  The department shall transfer the
  50-60  withheld funds to the community center if the final determination
  50-61  is favorable to the community center.
  50-62        (i)  The department shall incorporate the community center's
  50-63  responses into the official management audit report in accordance
  50-64  with the Government Auditing Standards published by the United
  50-65  States General Accounting Office.  The department shall publish the
  50-66  final report within the period prescribed by department rules, but
  50-67  not later than the 60th day after the date on which the audit staff
  50-68  conducts the official exit conference with the community center.
  50-69  If the department disagrees with the community center's responses
  50-70  as provided by Subsection (f), the department shall publish the
   51-1  official report within the period prescribed by department rules.
   51-2        SECTION 6.29.  Section 534.052, Health and Safety Code, is
   51-3  amended to conform to Section 9, Chapter 569, Acts of the 72nd
   51-4  Legislature, Regular Session, 1991, to read as follows:
   51-5        Sec. 534.052.  Rules and Standards.  (a)  The board shall
   51-6  adopt rules, including standards, the board considers necessary and
   51-7  appropriate to ensure the adequate provision of community-based
   51-8  mental health and mental retardation services through a local
   51-9  mental health or mental retardation authority <by department
  51-10  facility outreach programs or by community centers and other
  51-11  providers receiving contract funds as designated providers> under
  51-12  this subchapter.
  51-13        (b)  The department shall send a copy of the rules to each
  51-14  local mental health or mental retardation authority or other
  51-15  provider receiving contract funds as a local mental health or
  51-16  mental retardation authority or <department facility outreach
  51-17  program and to each> designated provider.
  51-18        SECTION 6.30.  Subchapter B, Chapter 534, Health and Safety
  51-19  Code, is amended to conform to Section 10, Chapter 569, Acts of the
  51-20  72nd Legislature, Regular Session, 1991, by adding Section 534.0535
  51-21  to read as follows:
  51-22        Sec. 534.0535.  JOINT DISCHARGE PLANNING.  (a)  The board
  51-23  shall adopt, and the department shall enforce, rules that require
  51-24  continuity of services and planning for patient or client care
  51-25  between department facilities and local mental health or mental
  51-26  retardation authorities.
  51-27        (b)  At a minimum, the rules must require joint discharge
  51-28  planning between a department facility and a local mental health or
  51-29  mental retardation authority before a facility discharges a patient
  51-30  or client or places the patient or client on an extended furlough
  51-31  with an intent to discharge.
  51-32        (c)  The local mental health or mental retardation authority
  51-33  shall plan with the department facility and determine the
  51-34  appropriate community services for the patient or client.
  51-35        (d)  The local mental health or mental retardation authority
  51-36  shall arrange for the provision of the services if department funds
  51-37  are to be used and may subcontract with or make a referral to a
  51-38  local agency or entity.
  51-39        SECTION 6.31.  Section 534.054, Health and Safety Code, is
  51-40  amended to conform to Section 10, Chapter 569, Acts of the 72nd
  51-41  Legislature, Regular Session, 1991, to read as follows:
  51-42        Sec. 534.054.  Designation of Provider <Designated
  51-43  Providers>.  (a)  The department shall identify and contract with a
  51-44  local mental health or mental retardation authority <one or more
  51-45  designated providers> for each service area to provide services to
  51-46  patient and client populations determined by the department.  A
  51-47  local mental health or mental retardation authority <designated
  51-48  provider> shall provide, directly or by subcontract, services to
  51-49  address the needs of priority populations as required by the
  51-50  department and shall comply with the rules and standards adopted
  51-51  under Section 534.052.
  51-52        (b)  In identifying a local mental health or mental
  51-53  retardation authority <designated provider>, the department shall
  51-54  give preference to a community center located in that service area.
  51-55        (c)  The department may contract with a local agency or a
  51-56  private provider or organization to act as a designated provider of
  51-57  <for> a service <area> if the department:
  51-58              (1)  cannot negotiate a contract with a local mental
  51-59  health or mental retardation authority <community center> to ensure
  51-60  that a specific required service <services> for priority
  51-61  populations is <are> available in that service area; or
  51-62              (2)  determines that a local mental health or mental
  51-63  retardation authority <center> does not have the capacity to ensure
  51-64  the availability of that service <the services>.
  51-65        (d)  The department shall provide the required services in a
  51-66  service area directly through a department facility outreach
  51-67  program or contract with another agency, provider, or organization
  51-68  as the local mental health or mental retardation authority if the
  51-69  department cannot identify and contract with a community center
  51-70  <designated provider> in that service area.
   52-1        SECTION 6.32.  Section 534.055(c), Health and Safety Code, is
   52-2  amended to correct a reference and to conform to Section 11,
   52-3  Chapter 569, Acts of the 72nd Legislature, Regular Session, 1991,
   52-4  to read as follows:
   52-5        (c)  A model contract must:
   52-6              (1)  require that the services provided by the private
   52-7  provider be based on the patient's or client's individual treatment
   52-8  plan;
   52-9              (2)  provide that a community-based residential
  52-10  facility that is a family home as defined in Chapter 123, Human
  52-11  Resources Code <the Community Homes for Disabled Persons Location
  52-12  Act (Article 1011n, Vernon's Texas Civil Statutes)> may house only
  52-13  a person with a disability as defined in Section 123.002, Human
  52-14  Resources Code <disabled persons as defined in Section 2 of that
  52-15  Act>; <and>
  52-16              (3)  prohibit the use of the facility for purposes such
  52-17  as restitution centers, homes for substance abusers, or halfway
  52-18  houses; and
  52-19              (4)  outline a dispute resolution procedure.
  52-20        SECTION 6.33.  Section 534.056, Health and Safety Code, is
  52-21  amended to conform to Section 10, Chapter 569, Acts of the 72nd
  52-22  Legislature, Regular Session, 1991, to read as follows:
  52-23        Sec. 534.056.  COORDINATION OF ACTIVITIES.  A local mental
  52-24  health or mental retardation authority <designated provider> shall
  52-25  coordinate its activities with the activities of other appropriate
  52-26  agencies that provide care and treatment for persons with drug or
  52-27  alcohol problems.
  52-28        SECTION 6.34.  Sections 534.058(a) and (c), Health and Safety
  52-29  Code, are amended to conform to Section 10, Chapter 569, Acts of
  52-30  the 72nd Legislature, Regular Session, 1991, to read as follows:
  52-31        (a)  The department shall develop standards of care for the
  52-32  services provided by a local mental health or mental retardation
  52-33  authority <department facility outreach program or by a designated
  52-34  provider> and its subcontractors under this subchapter.
  52-35        (c)  In conjunction with local mental health or mental
  52-36  retardation authorities <designated providers>, the department
  52-37  shall review the standards biennially to determine if each standard
  52-38  is necessary to ensure the quality of care.
  52-39        SECTION 6.35.  Section 534.059, Health and Safety Code, is
  52-40  amended to conform to Section 10, Chapter 569, Acts of the 72nd
  52-41  Legislature, Regular Session, 1991, to read as follows:
  52-42        Sec. 534.059.  PERFORMANCE STANDARDS.  The department shall
  52-43  specify performance standards, including measures of results, to
  52-44  use in evaluating the compliance of a local mental health or mental
  52-45  retardation authority <department facility outreach program or
  52-46  designated provider> with its obligation or contract to provide
  52-47  specific services to priority populations.
  52-48        SECTION 6.36.  Section 534.060, Health and Safety Code, is
  52-49  amended to conform to Sections 9 and 10, Chapter 569, Acts of the
  52-50  72nd Legislature, Regular Session, 1991, to read as follows:
  52-51        Sec. 534.060.  PROGRAM AND SERVICE MONITORING AND REVIEW.
  52-52  (a)  The department shall develop mechanisms for monitoring the
  52-53  services provided by a local mental health or mental retardation
  52-54  authority and the authority's <department facility outreach program
  52-55  or by a designated provider and the provider's> subcontractors.
  52-56        (b)  The department shall review the program quality and
  52-57  program performance results of each local mental health or mental
  52-58  retardation authority <department facility outreach program or
  52-59  designated provider> at least once each fiscal year.  The
  52-60  department may determine the scope of each review.
  52-61        (c)  Each <designated provider> contract between a local
  52-62  mental health or mental retardation authority and the department
  52-63  must authorize the department to have unrestricted access to all
  52-64  facilities, records, data, and other information under the control
  52-65  of the local mental health or mental  retardation authority, the
  52-66  authority's subcontractors, or the designated provider <provider or
  52-67  the provider's subcontractors> as necessary to enable the
  52-68  department to audit, monitor, and review the financial and program
  52-69  activities and services associated with department funds <the
  52-70  contract>.
   53-1        SECTION 6.37.  Section 534.063, Health and Safety Code, is
   53-2  amended to conform to Section 10, Chapter 569, Acts of the 72nd
   53-3  Legislature, Regular Session, 1991, to read as follows:
   53-4        Sec. 534.063.  PEER REVIEW ORGANIZATION.  The department
   53-5  shall assist a local mental health or mental retardation authority
   53-6  <designated provider> in developing a peer review organization to
   53-7  provide self-assessment of programs and to supplement department
   53-8  reviews under Section 534.060.
   53-9        SECTION 6.38.  Subchapter B, Chapter 534, Health and Safety
  53-10  Code, is amended to conform to Section 10, Chapter 569, Acts of the
  53-11  72nd Legislature, Regular Session, 1991, by amending Sections
  53-12  534.064, 534.066, and 534.067 and adding Section 534.0675 to read
  53-13  as follows:
  53-14        Sec. 534.064.  CONTRACT RENEWAL.  The commissioner may
  53-15  <shall> refuse to renew a contract with a local mental health or
  53-16  mental retardation authority <designated provider> and may <shall>
  53-17  select other agencies, providers, or organizations to be the local
  53-18  mental health or mental retardation authority <a new designated
  53-19  provider> if the department's evaluation of the authority's
  53-20  <provider's> performance indicates that the authority <provider>
  53-21  cannot ensure the availability of the specific services to priority
  53-22  populations required by the department and this subtitle.
  53-23        Sec. 534.066.  Local Match Requirement.  (a)  The department
  53-24  shall <may> include in a contract with a local mental health or
  53-25  mental retardation authority <designated provider> a requirement
  53-26  that some or all of the state funds the authority <provider>
  53-27  receives be matched by local support in an amount or proportion
  53-28  jointly agreed to by the department and the authority's board of
  53-29  trustees and based on the authority's financial capability and its
  53-30  overall commitment to other mental health or mental retardation
  53-31  programs, as appropriate <determined by the department>.
  53-32        (b)  The department shall establish, for department facility
  53-33  outreach programs that provide community-based services required
  53-34  under this subchapter, a local match requirement that is consistent
  53-35  with the requirements applied to other local mental health or
  53-36  mental retardation authorities <designated providers>.
  53-37        (c)  <A requirement of a local match under this section must
  53-38  apply uniformly to each provider or contractor in a service area.>
  53-39        <(d)>  Patient fee income, third-party insurance income,
  53-40  services and facilities contributed by the local mental health or
  53-41  mental retardation authority <provider>, contributions by a county
  53-42  or municipality, and other locally generated contributions,
  53-43  including local tax funds, may be counted <as local support> when
  53-44  calculating the local support for a local mental health or mental
  53-45  retardation authority <share of the operating costs of a department
  53-46  facility outreach program or a designated provider>.  The
  53-47  department may disallow or reduce the value of services claimed as
  53-48  support.
  53-49        Sec. 534.067.  Fee Collection Policy.  The department shall
  53-50  establish a uniform fee collection policy for all local mental
  53-51  health or mental retardation authorities <community centers and
  53-52  other designated providers> that is equitable, provides for
  53-53  collections, and maximizes contributions to local revenue.
  53-54        Sec. 534.0675.  NOTICE OF DENIAL, REDUCTION, OR TERMINATION
  53-55  OF SERVICES.  The board by rule, in cooperation with local mental
  53-56  health and mental retardation authorities, consumers, consumer
  53-57  advocates, and service providers, shall establish a uniform
  53-58  procedure that each local mental health or mental retardation
  53-59  authority shall use to notify consumers in writing of the denial,
  53-60  involuntary reduction, or termination of services and of the right
  53-61  to appeal those decisions.
  53-62        SECTION 6.39.  Section 534.068, Health and Safety Code, is
  53-63  amended to conform to Section 12, Chapter 569, and Section 24,
  53-64  Chapter 599, Acts of the 72nd Legislature, Regular Session, 1991,
  53-65  to read as follows:
  53-66        Sec. 534.068.  Audits.  (a)  As a condition to receiving
  53-67  <contract> funds under this subtitle, a local mental health and
  53-68  mental retardation authority <the board of trustees of a community
  53-69  center or the administrative authority of a designated provider>
  53-70  other than a state facility designated as an authority <center>
   54-1  must annually submit to the department a financial and compliance
   54-2  audit prepared <have the center's or provider's accounts audited>
   54-3  by a certified public accountant or public accountant licensed by
   54-4  the Texas State Board of Public Accountancy.  To ensure the highest
   54-5  degree of independence and quality, the local mental health or
   54-6  mental retardation authority shall use an invitation-for-proposal
   54-7  process as prescribed by the department to select the auditor.
   54-8        (b)  The audit must meet the minimum requirements as shall
   54-9  be, and be in the form and in the number of copies as may be,
  54-10  prescribed by the department, subject to review and comment <and
  54-11  approved> by the state auditor.
  54-12        (c)  The local mental health or mental retardation authority
  54-13  <community center or other designated provider> shall file the
  54-14  required number of copies <a copy> of the audit report with the
  54-15  department by the date prescribed by the department.  From the
  54-16  copies filed with the department, <The center or provider shall
  54-17  also submit> copies of the report shall be submitted to the
  54-18  governor and<,> Legislative Budget Board<, and Legislative Audit
  54-19  Committee>.
  54-20        (d)  The local mental health or mental retardation authority
  54-21  <board of trustees or administrative authority> shall either
  54-22  approve or refuse to approve the audit report.  If the <board or>
  54-23  authority refuses to approve the report, the <board or> authority
  54-24  shall include with the department's copies <copy> a statement
  54-25  detailing the reasons for refusal.
  54-26        (e)  The commissioner and state auditor have access to all
  54-27  vouchers, receipts, journals, or other records the commissioner or
  54-28  auditor considers necessary to review and analyze the audit report.
  54-29        (f)  The department shall annually submit to the governor,
  54-30  Legislative Budget Board, and Legislative Audit Committee a summary
  54-31  of the significant findings identified during the department's
  54-32  reviews of fiscal audit activities.
  54-33        SECTION 6.40.  Section 534.051, Health and Safety Code, is
  54-34  repealed to conform to Section 13, Chapter 569, Acts of the 72nd
  54-35  Legislature, Regular Session, 1991.
  54-36        SECTION 6.41.  (a)  Subchapter B, Chapter 535, Health and
  54-37  Safety Code, is repealed to conform to the repeal of the law from
  54-38  which it was derived by Section 1, Article 3, Chapter 637, Acts of
  54-39  the 72nd Legislature, Regular Session, 1991.
  54-40        (b)  The subchapter heading to Subchapter A, Chapter 535,
  54-41  Health and Safety Code, is repealed to conform to Section 1,
  54-42  Article 3, Chapter 637, Acts of the 72nd Legislature, Regular
  54-43  Session, 1991.
  54-44        SECTION 6.42.  Section 571.014, Health and Safety Code, is
  54-45  amended to conform to Section 1, Chapter 567, Acts of the 72nd
  54-46  Legislature, Regular Session, 1991, by amending Subsection (c) and
  54-47  adding Subsection (d) to read as follows:
  54-48        (c)  A person may initially file a paper with the county
  54-49  clerk by the use of reproduced, photocopied, or electronically
  54-50  transmitted paper if the person files the original signed copies of
  54-51  the paper with the clerk not later than the 72nd hour after the
  54-52  hour on which the initial filing is made.  If the 72-hour period
  54-53  ends on a Saturday, Sunday, or legal holiday, the filing period is
  54-54  extended until 4 p.m. on the first succeeding business day.  If
  54-55  extremely hazardous weather conditions exist or a disaster occurs,
  54-56  the presiding judge or magistrate may by written order made each
  54-57  day extend the filing period until 4 p.m. on the first succeeding
  54-58  business day.  The written order must declare that an emergency
  54-59  exists because of the weather or the occurrence of a disaster.  If
  54-60  a person detained under this subtitle would otherwise be released
  54-61  because the original signed copy of a paper is not filed within the
  54-62  72-hour period but for the extension of the filing period under
  54-63  this section, the person may be detained until the expiration of
  54-64  the extended filing period.  This subsection does not affect
  54-65  another provision of this subtitle requiring the release or
  54-66  discharge of a person <third working day after the date on which
  54-67  the initial filing is made>.
  54-68        (d)  If the clerk does not receive the original signed copy
  54-69  of a paper within the period prescribed by this section, the judge
  54-70  may dismiss the proceeding on the court's own motion or on the
   55-1  motion of a party and, if the proceeding is dismissed, shall order
   55-2  the immediate release of a proposed patient who is not at liberty.
   55-3        SECTION 6.43.  Chapter 571, Health and Safety Code, is
   55-4  amended to conform to Section 5, Chapter 567, Acts of the 72nd
   55-5  Legislature, Regular Session, 1991, by adding Section 571.0165 to
   55-6  read as follows:
   55-7        Sec. 571.0165.  EXTENSION OF DETENTION PERIOD.  (a)  If
   55-8  extremely hazardous weather conditions exist or a disaster occurs,
   55-9  the judge of a court having jurisdiction of a proceeding under
  55-10  Chapters 572, 573, 574, and 575 or a magistrate appointed by the
  55-11  judge may by written order made each day extend the period during
  55-12  which the person may be detained under those chapters until 4 p.m.
  55-13  on the first succeeding business day.
  55-14        (b)  The written order must declare that an emergency exists
  55-15  because of the weather or the occurrence of a disaster.
  55-16        (c)  This section does not apply to a situation for which a
  55-17  specific procedure is prescribed by this subtitle for extending the
  55-18  detention period because of extremely hazardous weather conditions
  55-19  or the occurrence of a disaster.
  55-20        SECTION 6.44.  Section 571.018(g), Health and Safety Code, is
  55-21  amended to conform to Section 2, Chapter 567, Acts of the 72nd
  55-22  Legislature, Regular Session, 1991, to read as follows:
  55-23        (g)  The state or a county may not pay any costs for a
  55-24  patient committed to a private mental hospital unless:
  55-25              (1)  a public facility is not available; and
  55-26              (2)  the commissioners court of the county authorizes
  55-27  the payment, if appropriate.
  55-28        SECTION 6.45.  Section 571.020(a), Health and Safety Code, is
  55-29  amended to conform to Section 3, Chapter 567, Acts of the 72nd
  55-30  Legislature, Regular Session, 1991, to read as follows:
  55-31        (a)  A person commits an offense if the person intentionally
  55-32  causes, conspires with another to cause, or assists another to
  55-33  cause the unwarranted commitment of a person to a mental health
  55-34  facility.  An offense under this subsection is a misdemeanor
  55-35  punishable by a fine of not more than $5,000, confinement in the
  55-36  county jail for not more than one year <two years>, or both.
  55-37        SECTION 6.46.  Section 572.004, Health and Safety Code, is
  55-38  amended to conform to Section 4, Chapter 567, Acts of the 72nd
  55-39  Legislature, Regular Session, 1991, by amending Subsection (a) and
  55-40  adding Subsection (e) to read as follows:
  55-41        (a)  Except as provided by Subsections <Subsection> (b) and
  55-42  (e), a voluntary patient is entitled to leave an inpatient mental
  55-43  health facility within 96 hours after the time a written request
  55-44  for release is filed with the facility administrator or the
  55-45  administrator's designee.  The request must be signed by the
  55-46  patient or a person responsible for the patient's admission.
  55-47        (e)  If extremely hazardous weather conditions exist or a
  55-48  disaster occurs, the facility administrator may request the judge
  55-49  of a court that has jurisdiction over proceedings brought under
  55-50  Chapter 574 to extend the period during which the patient may be
  55-51  detained.  The judge or a magistrate appointed by the judge may by
  55-52  written order made each day extend the period during which the
  55-53  patient may be detained until 4 p.m. on the first succeeding
  55-54  business day.  The written order must declare that an emergency
  55-55  exists because of the weather or the occurrence of a disaster.
  55-56        SECTION 6.47.  Subchapter A, Chapter 574, Health and Safety
  55-57  Code, is amended to conform to Section 1, Chapter 619, Acts of the
  55-58  72nd Legislature, Regular Session, 1991, by adding Section 574.0085
  55-59  to read as follows:
  55-60        Sec. 574.0085.  MASTERS.  (a)  The county judge may appoint a
  55-61  full-time or a part-time master to preside over the proceedings for
  55-62  court-ordered mental health services if the commissioners court of
  55-63  a county in which the court has jurisdiction authorizes the
  55-64  employment of a master.
  55-65        (b)  To be eligible for appointment as a master, a person
  55-66  must be a resident of this state and have been licensed to practice
  55-67  law in this state for at least four years.
  55-68        (c)  A master shall be paid as determined by the
  55-69  commissioners court of the county in which the master serves.  If a
  55-70  master serves in more than one county, the master shall be paid as
   56-1  determined by agreement of the commissioners courts of the counties
   56-2  in which the master serves.  The master may be paid from county
   56-3  funds available for payment of officers' salaries.
   56-4        (d)  A master who serves a single court serves at the will of
   56-5  the judge of that court.  The services of a master who serves more
   56-6  than two courts may be terminated by a majority vote of all the
   56-7  judges of the courts the master serves.  The services of a master
   56-8  who serves two courts may be terminated by either of the judges of
   56-9  the courts the master serves.
  56-10        (e)  To refer cases to a master, the referring court must
  56-11  issue an order of referral.  The order of referral may limit the
  56-12  power or duties of a master.
  56-13        (f)  Except as limited by an order of referral, masters
  56-14  appointed under this section have all the powers and duties set
  56-15  forth in Section 54.007, Government Code.
  56-16        (g)  A bailiff may attend a hearing held by a master if
  56-17  directed by the referring court.
  56-18        (h)  A witness appearing before a master is subject to the
  56-19  penalties for perjury provided by law.  A referring court may issue
  56-20  attachment against and may fine or imprison a witness whose failure
  56-21  to appear before a master after being summoned or whose refusal to
  56-22  answer questions has been certified to the court.
  56-23        (i)  At the conclusion of any hearing conducted by a master
  56-24  and on the preparation of a master's report, the master shall
  56-25  transmit to the referring court all papers relating to the case,
  56-26  with the master's signed and dated report.  After the master's
  56-27  report has been signed, the master shall give to the parties
  56-28  participating in the hearing notice of the substance of the report.
  56-29  The master's report may contain the master's findings, conclusions,
  56-30  or recommendations.  The master's report must be in writing in a
  56-31  form as the referring court may direct.  The form may be a notation
  56-32  on the referring court's docket sheet.  After the master's report
  56-33  is filed, the referring court may adopt, approve, or reject the
  56-34  master's report, hear further evidence, or recommit the matter for
  56-35  further proceedings as the referring court considers proper and
  56-36  necessary in the particular circumstances of the case.
  56-37        (j)  If a jury trial is demanded or required, the master
  56-38  shall refer the entire matter back to the referring court for
  56-39  trial.
  56-40        (k)  A master appointed under this section has the judicial
  56-41  immunity of a county judge.
  56-42        (l)  A master appointed in accordance with this section shall
  56-43  comply with the Code of Judicial Conduct in the same manner as the
  56-44  county judge.
  56-45        SECTION 6.48.  Section 574.009(d), Health and Safety Code, is
  56-46  amended to conform to Section 6, Chapter 567, Acts of the 72nd
  56-47  Legislature, Regular Session, 1991, to read as follows:
  56-48        (d)  If the certificates required under this section are not
  56-49  on file at the time set for the hearing on the application, the
  56-50  judge shall dismiss the application and order the immediate release
  56-51  of the proposed patient if that person is not at liberty.  If
  56-52  extremely hazardous weather conditions exist or a disaster occurs,
  56-53  the presiding judge or magistrate may by written order made each
  56-54  day extend the period during which the two certificates of medical
  56-55  examination for mental illness may be filed, and the person may be
  56-56  detained until 4 p.m. on the first succeeding business day.  The
  56-57  written order must declare that an emergency exists because of the
  56-58  weather or the occurrence of a disaster.
  56-59        SECTION 6.49.  Section 574.034(d), Health and Safety Code, is
  56-60  amended to conform to Section 7, Chapter 567, Acts of the 72nd
  56-61  Legislature, Regular Session, 1991, and to conform more closely to
  56-62  the source law from which it was derived to read as follows:
  56-63        (d)  The proposed patient and <or> the proposed patient's
  56-64  attorney, by a written document filed with the court, may waive the
  56-65  right to cross-examine witnesses, and, if that right is waived, the
  56-66  court may admit, as evidence, the certificates of medical
  56-67  examination for mental illness.  The certificates admitted under
  56-68  this subsection constitute competent medical or psychiatric
  56-69  testimony, and the court may make its findings solely from the
  56-70  certificates.  If the proposed patient and the proposed patient's
   57-1  attorney do not waive in writing the right to cross-examine
   57-2  witnesses, the court shall proceed to hear testimony.  The
   57-3  testimony must include competent medical or psychiatric testimony.
   57-4  In addition, the court may consider the testimony of a nonphysician
   57-5  mental health professional as provided by Section 574.031(f).
   57-6        SECTION 6.50.  Section 574.044, Health and Safety Code, is
   57-7  amended to correct a reference to read as follows:
   57-8        Sec. 574.044.  COMMITMENT TO FACILITY OF THE INSTITUTIONAL
   57-9  DIVISION OF THE TEXAS DEPARTMENT OF CRIMINAL JUSTICE.  The court
  57-10  shall commit an inmate patient to an inpatient mental health
  57-11  facility of the institutional division of the Texas Department of
  57-12  Criminal Justice if the court enters an order requiring temporary
  57-13  mental health services for the inmate patient under an application
  57-14  filed by a psychiatrist for the institutional division under
  57-15  Section 501.057 <500.057>, Government Code.
  57-16        SECTION 6.51.  Section 576.008, Health and Safety Code, is
  57-17  amended to conform more closely to the source law from which it was
  57-18  derived to read as follows:
  57-19        Sec. 576.008.  NOTIFICATION OF PROTECTION AND ADVOCACY
  57-20  SYSTEM.  A patient shall be informed in writing, at the time of
  57-21  admission and <or> discharge, of the existence, purpose, telephone
  57-22  number, and address of the protection and advocacy system
  57-23  established in this state under the federal Protection and Advocacy
  57-24  for Mentally Ill Individuals Act of 1986 (42 U.S.C. Sec. 10801, et
  57-25  seq.).
  57-26        SECTION 6.52.  Sections 614.001(4)-(8), Health and Safety
  57-27  Code, are amended to conform to Section 1, Chapter 566, Acts of the
  57-28  72nd Legislature, Regular Session, 1991, to read as follows:
  57-29              (4)  "Developmental disability" means a <condition of>
  57-30  severe, chronic disability that:
  57-31                    (A)  is attributable to a mental or physical
  57-32  impairment or a combination of physical and mental impairments;
  57-33                    (B)  is manifested before the person reaches 22
  57-34  years of age;
  57-35                    (C)  is likely to continue indefinitely;
  57-36                    (D)  results in substantial functional
  57-37  limitations in three or more of the following areas of major life
  57-38  activity:
  57-39                          (i)  self-care;
  57-40                          (ii)  self-direction;
  57-41                          (iii)  learning;
  57-42                          (iv)  receptive and expressive language;
  57-43                          (v)  mobility;
  57-44                          (vi)  capacity for independent living; or
  57-45                          (vii)  economic self-sufficiency; and
  57-46                    (E)  reflects the person's need for a combination
  57-47  and sequence of special, interdisciplinary, or generic care,
  57-48  treatment, or other services of extended or lifelong duration that
  57-49  are individually planned and coordinated.
  57-50              (5)  "Mental illness" has the meaning assigned by
  57-51  Section 571.003 <means an illness, disease, or condition that:>
  57-52                    <(A)  substantially impairs a person's thought,
  57-53  perception of reality, emotional process, or judgment; or>
  57-54                    <(B)  grossly impairs a person's behavior, as
  57-55  shown by recent disturbed behavior>.
  57-56              (6)  "Mental retardation" has the meaning assigned by
  57-57  Section 591.003 <means significantly subaverage intellectual
  57-58  functioning that originated during the developmental period and
  57-59  exists concurrently with deficits in adaptive behavior>.
  57-60              (7)  "Offender with a mental impairment" means a
  57-61  juvenile or adult <person> with mental illness, mental retardation,
  57-62  or a developmental disability who is arrested or charged with a
  57-63  criminal offense.
  57-64              (8)  "Person with mental retardation" means a juvenile
  57-65  or adult <person> with mental retardation that is not a mental
  57-66  disorder who, because of the mental deficit, requires special
  57-67  training, education, supervision, treatment, care, or control in
  57-68  the person's home or community or in a private or state school for
  57-69  persons with mental retardation.
  57-70        SECTION 6.53.  (a)  Sections 614.002, 614.005, 614.007, and
   58-1  614.008, Health and Safety Code, are amended to conform to Section
   58-2  1, Chapter 566, Acts of the 72nd Legislature, Regular Session,
   58-3  1991, and Section 1.03, Chapter 10, Acts of the 72nd Legislature,
   58-4  2nd Called Session, 1991, to read as follows:
   58-5        Sec. 614.002.  COMPOSITION OF COUNCIL.  (a)  The Texas
   58-6  Council on Offenders with Mental Impairments is composed of 29 <28>
   58-7  members.
   58-8        (b)  The governor shall appoint, with the advice and consent
   58-9  of the senate: <nine at-large members to serve on the council.>
  58-10              (1)  four at-large members who have expertise in mental
  58-11  health, mental retardation, or developmental disabilities, one of
  58-12  whom must be a psychiatrist;
  58-13              (2)  one at-large member who is the judge of a court
  58-14  with criminal jurisdiction;
  58-15              (3)  one at-large member who is a prosecuting attorney;
  58-16              (4)  one at-large member who is a criminal defense
  58-17  attorney;
  58-18              (5)  one at-large member from an established pretrial
  58-19  services agency; and
  58-20              (6)  one at-large member who has expertise in the
  58-21  criminal justice system.
  58-22        (c)  The executive head of each of the following agencies,
  58-23  divisions of agencies, or associations, or that person's designated
  58-24  representative, shall serve as a member of the council:
  58-25              (1)  the institutional division of the Texas Department
  58-26  of Criminal Justice;
  58-27              (2)  the Texas Department of Mental Health and Mental
  58-28  Retardation;
  58-29              (3)  the pardons and paroles division of the Texas
  58-30  Department of Criminal Justice;
  58-31              (4)  the community justice assistance division of the
  58-32  Texas Department of Criminal Justice;
  58-33              (5)  the Texas Juvenile Probation Commission;
  58-34              (6)  the Texas Youth Commission;
  58-35              (7)  the Texas Rehabilitation Commission;
  58-36              (8)  the Central Education Agency;
  58-37              (9)  the Criminal Justice Policy Council;
  58-38              (10)  the Mental Health Association in Texas;
  58-39              (11)  the Texas Commission on Alcohol and Drug Abuse;
  58-40              (12)  the Commission on Law Enforcement Officer
  58-41  Standards and Education;
  58-42              (13)  the Texas Council of Community Mental Health and
  58-43  Mental Retardation Centers;
  58-44              (14)  the Commission on Jail Standards;
  58-45              (15)  the Texas Planning Council for Developmental
  58-46  Disabilities;
  58-47              (16)  the Texas Association for Retarded Citizens;
  58-48              (17)  the Texas Alliance for the Mentally Ill;
  58-49              (18)  the Parent Association for the Retarded of Texas,
  58-50  Inc.; <and>
  58-51              (19)  the Texas Department of Human Services; and
  58-52              (20)  the Texas Department on Aging.
  58-53        (d)  In making the appointments under Subsection (b), the
  58-54  governor shall attempt to reflect the geographic and economic
  58-55  diversity of the state.
  58-56        (e)  It is a ground for removal if an at-large member:
  58-57              (1)  is not eligible for appointment at the time of
  58-58  appointment as provided by Subsections (b) and (g);
  58-59              (2)  is absent from more than half of the regularly
  58-60  scheduled council meetings that the member is eligible to attend
  58-61  during each calendar year; or
  58-62              (3)  is absent from more than two consecutive regularly
  58-63  scheduled council meetings that the member is eligible to attend.
  58-64        (f)  A representative designated by the executive head of a
  58-65  state agency must be an officer or employee of the agency when
  58-66  designated and while serving on the council, except the
  58-67  representative designated by the director of the Criminal Justice
  58-68  Policy Council must be an employee of that council.
  58-69        (g)  Members who are not associated with a state agency or
  58-70  division <(e)  At-large members of the council and members
   59-1  representing associations> must have expertise in the
   59-2  rehabilitation of persons with mental illness, mental retardation,
   59-3  or a developmental disability when appointed or designated and
   59-4  while serving on the council.
   59-5        Sec. 614.005.  OFFICERS; MEETINGS.  (a)  The council shall
   59-6  elect a presiding officer <chairman> from its members at the first
   59-7  meeting of each calendar year.
   59-8        (b)  The council shall meet at least four times each year and
   59-9  may meet at other times at the call of the presiding officer
  59-10  <chairman> or as provided by council rule.
  59-11        Sec. 614.007.  POWERS AND DUTIES.  The council shall:
  59-12              (1)  determine the status of offenders with mental
  59-13  impairments in the state criminal justice system;
  59-14              (2)  identify needed services for offenders with mental
  59-15  impairments;
  59-16              (3)  develop a plan for meeting the treatment,
  59-17  rehabilitative, and educational needs of offenders with mental
  59-18  impairments that includes a case management system and the
  59-19  development of community-based alternatives to incarceration;
  59-20              (4)  cooperate in coordinating procedures of
  59-21  represented agencies for the orderly provision of services for
  59-22  offenders with mental impairments;
  59-23              (5)  evaluate programs in this state and outside this
  59-24  state for offenders with mental impairments and recommend to the
  59-25  directors of state programs methods of improving the programs;
  59-26              (6)  collect and disseminate information about
  59-27  available programs to judicial officers, law enforcement officers,
  59-28  probation and parole officers, providers of social services or
  59-29  treatment, and the public;
  59-30              (7)  provide technical assistance to represented
  59-31  agencies and organizations in the development of appropriate
  59-32  training programs;
  59-33              (8)  apply for and receive money made available by the
  59-34  federal or state government or by any other public or private
  59-35  source to be used by the council to perform its duties;
  59-36              (9)  distribute to political subdivisions, private
  59-37  organizations, or other persons money appropriated by the
  59-38  legislature to be used for the development, operation, or
  59-39  evaluation of programs for offenders with mental impairments;
  59-40              (10)  develop and implement pilot projects to
  59-41  demonstrate a cooperative program to identify, evaluate, and manage
  59-42  outside of incarceration offenders with mental impairments who do
  59-43  not have an instant offense that is an offense described in Section
  59-44  3g, Article 42.12, Code of Criminal Procedure; and
  59-45              (11)  assess the need for demonstration projects and
  59-46  provide management for approved projects.
  59-47        Sec. 614.008.  PILOT PROGRAM.  (a)  The council shall
  59-48  establish a pilot program in a county selected by the council to
  59-49  implement a cooperative community-based alternative system to
  59-50  divert <nonviolent mentally or emotionally impaired offenders> from
  59-51  the state criminal justice system offenders with mental impairments
  59-52  who do not have an instant offense that is an offense described in
  59-53  Section 3g, Article 42.12, Code of Criminal Procedure, and to
  59-54  rehabilitate those offenders.
  59-55        (b)  The program must conform to the report and
  59-56  recommendations made by the Texas Department of Mental Health and
  59-57  Mental Retardation and the Texas Department of Corrections to the
  59-58  70th Legislature as directed by S.C.R. No.  128, 69th Legislature,
  59-59  Regular Session, 1985.
  59-60        (c)  The council may contract for or employ and train a case
  59-61  management team to carry out the purposes of the program and to
  59-62  coordinate the joint efforts of agencies represented on the
  59-63  council.
  59-64        (d)  The agencies represented on the council shall perform
  59-65  duties and offer services as required by the council to further the
  59-66  purposes of the pilot program and the council.
  59-67        (b)  Section 614.010, Health and Safety Code, is repealed.
  59-68        SECTION 6.54.  The following provisions of the Acts of the
  59-69  72nd Legislature, Regular Session, 1991, are repealed:
  59-70              (1)  Chapter 248;
   60-1              (2)  Chapter 379;
   60-2              (3)  Chapter 566;
   60-3              (4)  Sections 1-7, Chapter 567;
   60-4              (5)  Chapter 569;
   60-5              (6)  Chapter 596;
   60-6              (7)  Section 24, Chapter 599;
   60-7              (8)  Chapter 619; and
   60-8              (9)  Section 6, Chapter 627.
   60-9         ARTICLE 7.  CHANGES RELATING TO HUMAN RESOURCES CODE
  60-10        SECTION 7.01.  (a)  Title 9, Human Resources Code, is amended
  60-11  to codify Section 5.04, Chapter 15, Acts of the 72nd Legislature,
  60-12  1st Called Session, 1991 (Article 4413(701), Revised Statutes), by
  60-13  adding Chapter 131 to read as follows:
  60-14        CHAPTER 131.  HEALTH AND HUMAN SERVICES TRANSPORTATION
  60-15                          AND PLANNING OFFICE
  60-16        Sec. 131.001.  OFFICE.  The Health and Human Services
  60-17  Transportation and Planning Office is in the governor's office.
  60-18        Sec. 131.002.  POWERS AND DUTIES.  The office shall:
  60-19              (1)  collect data on health and human services client
  60-20  transportation needs, services, and expenditures;
  60-21              (2)  create a statewide coordination plan regarding a
  60-22  system of transportation for clients of health and human services
  60-23  agencies, including the designation of local transportation
  60-24  coordinators;
  60-25              (3)  establish standards of reporting and accounting
  60-26  methods for all agencies providing health and human services client
  60-27  transportation;
  60-28              (4)  maximize federal funds for client transportation
  60-29  through the use of available state funds for matching purposes and
  60-30  the possible use of oil overcharge money and planning funds
  60-31  available through the federal department of transportation;
  60-32              (5)  evaluate the effectiveness of pooling client
  60-33  transportation resources for capital acquisition and the joint
  60-34  purchase of liability insurance;
  60-35              (6)  assist state agencies in coordinating
  60-36  transportation resources;
  60-37              (7)  ensure coordination between the office and the
  60-38  Texas Department of Transportation with regard to the use of funds
  60-39  received by the department under 49 U.S.C. Section 1612(b)(1);
  60-40              (8)  examine the feasibility of consolidating all
  60-41  funding for health and human services client transportation and
  60-42  creating a transportation system through which clients of a state
  60-43  or local agency or program could be matched with the most
  60-44  cost-effective and appropriate transportation services for their
  60-45  needs; and
  60-46              (9)  evaluate the use of existing computer software for
  60-47  use at the local level in client transportation services.
  60-48        Sec. 131.003.  OFFICE STAFF.  The governor shall employ staff
  60-49  needed to carry out the duties of the office.
  60-50        (b)  Article 4413(701), Revised Statutes, is repealed.
  60-51         ARTICLE 8.  CHANGES RELATING TO LOCAL GOVERNMENT CODE
  60-52        SECTION 8.01.  (a)  Subtitle B, Title 7, Local Government
  60-53  Code, is amended to codify Section 1, Chapter 881, Acts of the 72nd
  60-54  Legislature, Regular Session, 1991 (Article 2372dd-2, Revised
  60-55  Statutes), by adding Chapter 238 to read as follows:
  60-56     CHAPTER 238.  COUNTY REGULATION OF CERTAIN OUTDOOR BUSINESSES
  60-57        Sec. 238.001.  DEFINITIONS.  In this chapter:
  60-58              (1)  "Automotive wrecking and salvage yard" means a
  60-59  business that stores three or more wrecked vehicles outdoors for
  60-60  the purpose of dismantling or otherwise wrecking the vehicles to
  60-61  remove parts for sale or for use in an automotive repair or
  60-62  rebuilding business.
  60-63              (2)  "Demolition business" means a business that
  60-64  demolishes structures, including houses and other buildings, in
  60-65  order to salvage building materials and that stores those materials
  60-66  before disposing of them.
  60-67              (3)  "Flea market" means an outdoor market for selling
  60-68  secondhand articles or antiques.
  60-69              (4)  "Junkyard" means a business that stores, buys, or
  60-70  sells materials that have been discarded or sold at a nominal price
   61-1  by a previous owner and that keeps all or part of the materials
   61-2  outdoors until disposing of them.
   61-3              (5)  "Outdoor resale business" means a business that
   61-4  sells used merchandise, other than automobiles, logging equipment,
   61-5  or other agricultural equipment, and stores or displays the
   61-6  merchandise outdoors.
   61-7              (6)  "Recycling business" means a business that is
   61-8  primarily engaged in:
   61-9                    (A)  converting ferrous or nonferrous metals or
  61-10  other materials into raw material products having prepared grades
  61-11  and having an existing or potential economic value;
  61-12                    (B)  using raw material products of that kind in
  61-13  the production of new products; or
  61-14                    (C)  obtaining or storing ferrous or nonferrous
  61-15  metals or other materials for a purpose described by Paragraph (A)
  61-16  or (B).
  61-17        Sec. 238.002.  AUTHORITY TO REGULATE; ADOPTION OF RULE.
  61-18  (a)  The commissioners court of a county by order may establish
  61-19  visual aesthetic standards for automotive wrecking and salvage
  61-20  yards, junkyards, recycling businesses, flea markets, demolition
  61-21  businesses, and outdoor resale businesses in the unincorporated
  61-22  area of the county.
  61-23        (b)  The commissioners court may not include in an order
  61-24  adopted under this section a screening requirement for an
  61-25  automotive wrecking and salvage yard or a junkyard that is less
  61-26  restrictive than the screening requirement under Chapter 953, Acts
  61-27  of the 70th Legislature, Regular Session, 1987 (Article 2372dd-1,
  61-28  Vernon's Texas Civil Statutes).
  61-29        (c)  An order adopted under this section must provide a
  61-30  reasonable period of time not to exceed 12 months for a business
  61-31  operating on the effective date of the order to comply with the
  61-32  visual aesthetic standards.
  61-33        Sec. 238.003.  EXCEPTIONS.  (a)  A commissioners court may
  61-34  not regulate under this chapter farm machinery owned or operated by
  61-35  the person on whose property the machinery is located and kept on
  61-36  that property for purposes other than sale.
  61-37        (b)  A business subject to a screening requirement under
  61-38  Chapter 886, Acts of the 68th Legislature, Regular Session, 1983
  61-39  (Article 2372dd, Vernon's Texas Civil Statutes), Chapter 953, Acts
  61-40  of the 70th Legislature, Regular Session, 1987 (Article 2372dd-1,
  61-41  Vernon's Texas Civil Statutes), or Section 4.08, Chapter 741, Acts
  61-42  of the 67th Legislature, Regular Session, 1981 (Article 4477-9a,
  61-43  Vernon's Texas Civil Statutes), that was in compliance with that
  61-44  screening requirement on August 26, 1991, is exempt from a
  61-45  screening requirement adopted under this chapter.
  61-46        Sec. 238.004.  CIVIL PENALTY.  (a)  The appropriate attorney
  61-47  representing the county in civil cases may file a civil action to
  61-48  recover a civil penalty from a business that violates a visual
  61-49  aesthetic standard  established under this chapter.  The penalty
  61-50  may not exceed $50 each day for the first 10 days of the violation,
  61-51  $100 each day for the next 10 days, $250 each day for the next 10
  61-52  days, and $1,000 for each day thereafter.  In determining the
  61-53  amount of the penalty, the court shall consider the seriousness of
  61-54  the violation.
  61-55        (b)  A penalty recovered under this section shall be
  61-56  deposited in the general fund of the county.
  61-57        (b)  Article 2372dd-2, Revised Statutes, is repealed.
  61-58        SECTION 8.02.  Section 332.004(c), Local Government Code, as
  61-59  added by Chapter 807, Acts of the 72nd Legislature, Regular
  61-60  Session, 1991, is renumbered as Section 445.022, Local Government
  61-61  Code, to relocate that law to a more appropriate chapter of the
  61-62  Local Government Code.
  61-63                         ARTICLE 9.  REPEALER
  61-64        SECTION 9.01.  Section 9, Chapter 114, Acts of the 69th
  61-65  Legislature, Regular Session, 1985 (Article 326k-89, Vernon's Texas
  61-66  Civil Statutes), is repealed as duplicative of Section 46.005,
  61-67  Government Code, which applies to the Anderson County criminal
  61-68  district attorney.
  61-69        SECTION 9.02.  Chapter 1, page 328, General Laws, Acts of the
  61-70  46th Legislature, 1939 (Article 3923a, Vernon's Texas Civil
   62-1  Statutes), is repealed as impliedly repealed by subsequent
   62-2  amendments to former Article 3923, Revised Statutes, codified as
   62-3  Section 51.005, Government Code.
   62-4                       ARTICLE 10.  RENUMBERING
   62-5        SECTION 10.01.  The following provisions of enacted codes are
   62-6  renumbered or relettered and appropriate cross-references are
   62-7  changed in order to eliminate duplicate citations or to relocate
   62-8  misplaced provisions:
   62-9              (1)  Subsection (c), Section 11, Article 42.12, Code of
  62-10  Criminal Procedure, as added by Section 1, Chapter 285, Acts of the
  62-11  72nd Legislature, Regular Session, 1991, is relettered as
  62-12  Subsection (d), Section 11, Article 42.12, Code of Criminal
  62-13  Procedure.
  62-14              (2)  Section 2.09a, Education Code, is renumbered as
  62-15  Section 2.091, Education Code.
  62-16              (3)  Subchapter N, Chapter 51, Education Code, as added
  62-17  by Chapter 772, Acts of the 70th Legislature, Regular Session,
  62-18  1987, is relettered as Subchapter O, Chapter 51, Education Code.
  62-19              (4)  Subchapter N, Chapter 51, Education Code, as added
  62-20  by Chapter 44, Acts of the 70th Legislature, Regular Session, 1987,
  62-21  is relettered as Subchapter P, Chapter 51, Education Code.
  62-22              (5)  Subchapter O, Chapter 51, Education Code, as added
  62-23  by Chapter 1084, Acts of the 71st Legislature, Regular Session,
  62-24  1989, is relettered as Subchapter Q, Chapter 51, Education Code.
  62-25              (6)  Subsection (i), Section 53.009, Government Code,
  62-26  as added by Section 5, Chapter 819, Acts of the 72nd Legislature,
  62-27  Regular Session, 1991, is relettered as Subsection (j), Section
  62-28  53.009, Government Code.
  62-29              (7)  Subchapter L, Chapter 403, Government Code, as
  62-30  added by Section 3.061(a), Chapter 5, Acts of the 72nd Legislature,
  62-31  1st Called Session, 1991, is relettered as Subchapter M, Chapter
  62-32  403, Government Code.
  62-33              (8)  Section 825.507, Government Code, as added by
  62-34  Section 29, Chapter 13, Acts of the 72nd Legislature, 1st Called
  62-35  Session, 1991, is renumbered as Section 825.508, Government Code.
  62-36              (9)  Subchapter I, Chapter 161, Health and Safety Code,
  62-37  as added by Chapter 695, Acts of the 72nd Legislature, Regular
  62-38  Session, 1991, is relettered as Subchapter J, Chapter 161, Health
  62-39  and Safety Code.
  62-40              (10)  Section 91.110, Natural Resources Code, as added
  62-41  by Section 13, Chapter 603, Acts of the 72nd Legislature, Regular
  62-42  Session, 1991, is renumbered as Section 91.114, Natural Resources
  62-43  Code.
  62-44              (11)  Subchapter L, Chapter 43, Parks and Wildlife
  62-45  Code, as added by Chapter 640, Acts of the 69th Legislature,
  62-46  Regular Session, 1985, is relettered as Subchapter M, Chapter 43,
  62-47  Parks and Wildlife Code.
  62-48              (12)  Subchapter M, Chapter 43, Parks and Wildlife
  62-49  Code, is relettered as Subchapter N, Chapter 43, Parks and Wildlife
  62-50  Code.
  62-51              (13)  Subchapter N, Chapter 43, Parks and Wildlife
  62-52  Code, as added by Chapter 883, Acts of the 72nd Legislature,
  62-53  Regular Session, 1991, is relettered as Subchapter O, Chapter 43,
  62-54  Parks and Wildlife Code.
  62-55              (14)  Subchapter N, Chapter 43, Parks and Wildlife
  62-56  Code, as added by Chapter 586, Acts of the 72nd Legislature,
  62-57  Regular Session, 1991, is relettered as Subchapter P, Chapter 43,
  62-58  Parks and Wildlife Code.
  62-59        SECTION 10.02.  If the number, letter, or designation
  62-60  assigned by this article conflicts with a number, letter, or
  62-61  designation assigned by another Act of the 73rd Legislature, the
  62-62  other Act controls, and the number, letter, or designation assigned
  62-63  by this article has no effect.
  62-64                        ARTICLE 11.  EMERGENCY
  62-65        SECTION 11.01.  The importance of this legislation and the
  62-66  crowded condition of the calendars in both houses create an
  62-67  emergency   and   an   imperative   public   necessity   that   the
  62-68  constitutional rule requiring bills to be read on three several
  62-69  days in each house be suspended, and this rule is hereby suspended.
  62-70                               * * * * *
   63-1                                                         Austin,
   63-2  Texas
   63-3                                                         April 7, 1993
   63-4  Hon. Bob Bullock
   63-5  President of the Senate
   63-6  Sir:
   63-7  We, your Committee on Administration to which was referred H.B.
   63-8  No. 947, have had the same under consideration, and I am instructed
   63-9  to report it back to the Senate with the recommendation that it do
  63-10  pass and be printed.
  63-11                                                         Haley,
  63-12  Chairman
  63-13                               * * * * *
  63-14                               WITNESSES
  63-15                                                  FOR   AGAINST  ON
  63-16  ___________________________________________________________________
  63-17  Name:  Jim Nance                                               x
  63-18  Representing:  Legislative Council
  63-19  City:  Austin
  63-20  -------------------------------------------------------------------