By:  Haley                                       S.B. No. 248
       73R3011 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the adoption of a nonsubstantive revision of statutes
    1-3  relating to areas of government that affect or involve both state
    1-4  and local entities, including the operation of government and
    1-5  governmental bodies, public officers and employees, and fiscal
    1-6  affairs and including conforming amendments, repeals, and
    1-7  penalties.
    1-8        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-9        SECTION 1.  ADOPTION OF TITLES 5, 6, AND 10, GOVERNMENT CODE.
   1-10  The Government Code is amended by adding Titles 5, 6, and 10 to
   1-11  read as follows:
   1-12                   TITLE 5.  OPEN GOVERNMENT; ETHICS
   1-13                     SUBTITLE A.  OPEN GOVERNMENT
   1-14  Chapter 551.  OPEN MEETINGS
   1-15  Chapter 552.  OPEN RECORDS
   1-16  Chapter 553.  PUBLIC DISCLOSURE
   1-17  Chapter 554.  PROTECTION FOR REPORTING VIOLATIONS OF LAW
   1-18  Chapter 555.  STATE AGENCY RECORDS RELATING TO
   1-19                  LICENSE HOLDERS
   1-20  Chapter 556.  POLITICAL ACTIVITIES BY STATE EMPLOYEES
   1-21  Chapter 557.  SEDITION, SABOTAGE, AND COMMUNISM
   1-22  Chapter 558.  INTERPRETERS FOR DEAF OR HEARING
   1-23                  IMPAIRED PERSONS
   1-24               (Chapters 559-570 reserved for expansion)
    2-1                          SUBTITLE B.  ETHICS
    2-2  Chapter 571.  TEXAS ETHICS COMMISSION
    2-3  Chapter 572.  PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF
    2-4                  CONDUCT, AND CONFLICT OF INTEREST
    2-5  Chapter 573.  DEGREES OF RELATIONSHIP; NEPOTISM PROHIBITIONS
    2-6  Chapter 574.  DUAL OFFICEHOLDING
    2-7                   TITLE 5.  OPEN GOVERNMENT; ETHICS
    2-8                     SUBTITLE A.  OPEN GOVERNMENT
    2-9                      CHAPTER 551.  OPEN MEETINGS
   2-10                   SUBCHAPTER A.  GENERAL PROVISIONS
   2-11  Sec. 551.001.  DEFINITIONS
   2-12  Sec. 551.002.  OPEN MEETINGS REQUIREMENT
   2-13  Sec. 551.003.  LEGISLATURE
   2-14  Sec. 551.004.  OPEN MEETINGS REQUIRED BY CHARTER
   2-15           (Sections 551.005-551.020 reserved for expansion)
   2-16                 SUBCHAPTER B.  RECORD OF OPEN MEETING
   2-17  Sec. 551.021.  MINUTES OR TAPE RECORDING OF OPEN MEETING
   2-18                   REQUIRED
   2-19  Sec. 551.022.  MINUTES AND TAPE RECORDINGS OF OPEN MEETING:  PUBLIC
   2-20                   RECORD
   2-21  Sec. 551.023.  RECORDING OF MEETING BY PERSON IN ATTENDANCE
   2-22           (Sections 551.024-551.040 reserved for expansion)
   2-23                   SUBCHAPTER C.  NOTICE OF MEETINGS
   2-24  Sec. 551.041.  NOTICE OF MEETING REQUIRED
   2-25  Sec. 551.042.  INQUIRY MADE AT MEETING
   2-26  Sec. 551.043.  TIME AND ACCESSIBILITY OF NOTICE;
   2-27                   GENERAL RULE
    3-1  Sec. 551.044.  EXCEPTION TO GENERAL RULE:  GOVERNMENTAL BODY WITH
    3-2                   STATEWIDE JURISDICTION
    3-3  Sec. 551.045.  EXCEPTION TO GENERAL RULE:  NOTICE OF EMERGENCY
    3-4                   MEETING OR EMERGENCY ADDITION TO AGENDA
    3-5  Sec. 551.046.  EXCEPTION TO GENERAL RULE:  COMMITTEE OF
    3-6                   LEGISLATURE
    3-7  Sec. 551.047.  SPECIAL NOTICE TO NEWS MEDIA OF EMERGENCY MEETING
    3-8                   OR EMERGENCY ADDITION TO AGENDA
    3-9  Sec. 551.048.  STATE GOVERNMENTAL BODY:  NOTICE TO SECRETARY OF
   3-10                   STATE; PLACE OF POSTING NOTICE
   3-11  Sec. 551.049.  COUNTY GOVERNMENTAL BODY:  PLACE OF POSTING
   3-12                   NOTICE
   3-13  Sec. 551.050.  MUNICIPAL GOVERNMENTAL BODY:  PLACE OF POSTING
   3-14                   NOTICE
   3-15  Sec. 551.051.  SCHOOL DISTRICT:  PLACE OF POSTING NOTICE
   3-16  Sec. 551.052.  SCHOOL DISTRICT:  SPECIAL NOTICE
   3-17                   TO NEWS MEDIA
   3-18  Sec. 551.053.  DISTRICT OR POLITICAL SUBDIVISION EXTENDING INTO
   3-19                   FOUR OR MORE COUNTIES:  NOTICE TO PUBLIC,
   3-20                   SECRETARY OF STATE, AND COUNTY CLERK; PLACE
   3-21                   OF POSTING NOTICE
   3-22  Sec. 551.054.  DISTRICT OR POLITICAL SUBDIVISION EXTENDING INTO
   3-23                   FEWER THAN FOUR COUNTIES:  NOTICE TO PUBLIC AND
   3-24                   COUNTY CLERKS; PLACE OF POSTING NOTICE
   3-25           (Sections 551.055-551.070 reserved for expansion)
   3-26    SUBCHAPTER D.  EXCEPTIONS TO REQUIREMENT THAT MEETINGS BE OPEN
   3-27  Sec. 551.071.  CONSULTATION WITH ATTORNEY; CLOSED MEETING
    4-1  Sec. 551.072.  DELIBERATION REGARDING REAL PROPERTY; CLOSED
    4-2                   MEETING
    4-3  Sec. 551.073.  DELIBERATION REGARDING PROSPECTIVE GIFT; CLOSED
    4-4                   MEETING
    4-5  Sec. 551.074.  PERSONNEL MATTERS; CLOSED MEETING
    4-6  Sec. 551.075.  CONFERENCE WITH EMPLOYEES; CLOSED MEETING
    4-7  Sec. 551.076.  DELIBERATION REGARDING SECURITY DEVICES; CLOSED
    4-8                   MEETING
    4-9  Sec. 551.077.  AGENCY FINANCED BY FEDERAL GOVERNMENT
   4-10  Sec. 551.078.  MEDICAL BOARD OR MEDICAL COMMITTEE
   4-11  Sec. 551.079.  STATE BOARD OF INSURANCE
   4-12  Sec. 551.080.  BOARD OF PARDONS AND PAROLES
   4-13  Sec. 551.081.  CREDIT UNION COMMISSION
   4-14  Sec. 551.082.  SCHOOL CHILDREN; SCHOOL DISTRICT EMPLOYEES;
   4-15                   DISCIPLINARY MATTER OR COMPLAINT
   4-16  Sec. 551.083.  CERTAIN SCHOOL BOARDS; CLOSED MEETING REGARDING
   4-17                   CONSULTATION WITH REPRESENTATIVE OF EMPLOYEE
   4-18                   GROUP
   4-19  Sec. 551.084.  INVESTIGATION; EXCLUSION OF WITNESS FROM
   4-20                   HEARING
   4-21           (Sections 551.085-551.100 reserved for expansion)
   4-22         SUBCHAPTER E.  PROCEDURES RELATING TO CLOSED MEETING
   4-23  Sec. 551.101.  REQUIREMENT TO FIRST CONVENE IN OPEN MEETING
   4-24  Sec. 551.102.  REQUIREMENT TO VOTE OR TAKE FINAL ACTION IN OPEN
   4-25                   MEETING
   4-26  Sec. 551.103.  CERTIFIED AGENDA OR TAPE RECORDING REQUIRED
   4-27  Sec. 551.104.  CERTIFIED AGENDA OR TAPE; PRESERVATION;
    5-1                   DISCLOSURE
    5-2           (Sections 551.105-551.120 reserved for expansion)
    5-3         SUBCHAPTER F.  MEETINGS BY TELEPHONE CONFERENCE CALL
    5-4  Sec. 551.121.  GOVERNING BOARD OF INSTITUTION OF HIGHER
    5-5                   EDUCATION
    5-6  Sec. 551.122.  TEXAS HIGH-SPEED RAIL AUTHORITY
    5-7  Sec. 551.123.  TEXAS BOARD OF CRIMINAL JUSTICE
    5-8  Sec. 551.124.  BOARD OF PARDONS AND PAROLES
    5-9           (Sections 551.125-551.140 reserved for expansion)
   5-10     SUBCHAPTER G.  ENFORCEMENT AND REMEDIES; CRIMINAL VIOLATIONS
   5-11  Sec. 551.141.  ACTION VOIDABLE
   5-12  Sec. 551.142.  MANDAMUS; INJUNCTION
   5-13  Sec. 551.143.  CONSPIRACY TO CIRCUMVENT CHAPTER; OFFENSE;
   5-14                   PENALTY
   5-15  Sec. 551.144.  CLOSED MEETING; OFFENSE; PENALTY
   5-16  Sec. 551.145.  CLOSED MEETING WITHOUT CERTIFIED AGENDA OR TAPE
   5-17                   RECORDING; OFFENSE; PENALTY
   5-18  Sec. 551.146.  DISCLOSURE OF CERTIFIED AGENDA OR TAPE RECORDING OF
   5-19                   CLOSED MEETING; OFFENSE; PENALTY; CIVIL
   5-20                   LIABILITY
   5-21                   TITLE 5.  OPEN GOVERNMENT; ETHICS
   5-22                     SUBTITLE A.  OPEN GOVERNMENT
   5-23                      CHAPTER 551.  OPEN MEETINGS
   5-24                   SUBCHAPTER A.  GENERAL PROVISIONS
   5-25        Sec. 551.001.  DEFINITIONS.  In this chapter:
   5-26              (1)  "Closed meeting" means a meeting to which the
   5-27  public does not have access.
    6-1              (2)  "Deliberation" means a verbal exchange during a
    6-2  meeting between a quorum of a governmental body, or between a
    6-3  quorum of a governmental body and another person, about an issue
    6-4  within the jurisdiction of the governmental body or any public
    6-5  business.
    6-6              (3)  "Governmental body" means:
    6-7                    (A)  a board, commission, department, committee,
    6-8  or agency within the executive or legislative branch of state
    6-9  government that is directed by one or more elected or appointed
   6-10  members;
   6-11                    (B)  a county commissioners court in the state;
   6-12                    (C)  a municipal governing body in the state;
   6-13                    (D)  a deliberative body that has rulemaking or
   6-14  quasi-judicial power and that is classified as a department,
   6-15  agency, or political subdivision of a county or municipality;
   6-16                    (E)  a school district board of trustees;
   6-17                    (F)  a county board of school trustees;
   6-18                    (G)  a county board of education;
   6-19                    (H)  the governing board of a special district
   6-20  created by law; and
   6-21                    (I)  a nonprofit corporation organized under
   6-22  Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
   6-23  (Article 1434a, Vernon's Texas Civil Statutes), that provides a
   6-24  water supply or wastewater service, or both, and is exempt from ad
   6-25  valorem taxation under Section 11.30, Tax Code.
   6-26              (4)  "Meeting" means a deliberation between a quorum of
   6-27  a governmental body, or between a quorum of a governmental body and
    7-1  another person, during which public business or public policy over
    7-2  which the governmental body has supervision or control is discussed
    7-3  or considered or during which the governmental body takes formal
    7-4  action.  The term does not include the gathering of a quorum of a
    7-5  governmental body at a social function unrelated to the public
    7-6  business that is conducted by the body, or the attendance by a
    7-7  quorum of a governmental body at a regional, state, or national
    7-8  convention or workshop, if formal action is not taken and any
    7-9  discussion of public business is incidental to the social function,
   7-10  convention, or workshop.  The term includes a session of a
   7-11  governmental body.
   7-12              (5)  "Open" means open to the public.
   7-13              (6)  "Quorum" means a majority of a governmental body,
   7-14  unless defined differently by applicable law or rule or the charter
   7-15  of the governmental body.  (V.A.C.S. Art. 6252-17, Sec. 1; New.)
   7-16        Sec. 551.002.  OPEN MEETINGS REQUIREMENT.  Every regular,
   7-17  special, or called meeting of a governmental body shall be open to
   7-18  the public, except as provided by this chapter.  (V.A.C.S. Art.
   7-19  6252-17, Sec. 2(a) (part).)
   7-20        Sec. 551.003.  LEGISLATURE.  In this chapter, the legislature
   7-21  is exercising its powers to adopt rules to prohibit secret meetings
   7-22  of the legislature, committees of the legislature, and other bodies
   7-23  associated with the legislature, except as specifically permitted
   7-24  in the constitution.  (V.A.C.S. Art. 6252-17, Sec. 2(b).)
   7-25        Sec. 551.004.  OPEN MEETINGS REQUIRED BY CHARTER.  This
   7-26  chapter does not authorize a governmental body to close a meeting
   7-27  that a charter of the governmental body:
    8-1              (1)  prohibits from being closed; or
    8-2              (2)  requires to be open.  (V.A.C.S. Art. 6252-17, Sec.
    8-3  2(k).)
    8-4           (Sections 551.005-551.020 reserved for expansion)
    8-5                 SUBCHAPTER B.  RECORD OF OPEN MEETING
    8-6        Sec. 551.021.  MINUTES OR TAPE RECORDING OF OPEN MEETING
    8-7  REQUIRED.  (a)  A governmental body shall prepare and keep minutes
    8-8  or make a tape recording of each open meeting of the body.
    8-9        (b)  The minutes must:
   8-10              (1)  state the subject of each deliberation; and
   8-11              (2)  indicate each vote, order, decision, or other
   8-12  action taken.  (V.A.C.S. Art. 6252-17, Sec. 3B (part).)
   8-13        Sec. 551.022.  MINUTES AND TAPE RECORDINGS OF OPEN MEETING:
   8-14  PUBLIC RECORD.  The minutes and tape recordings of an open meeting
   8-15  are public records and shall be available for public inspection and
   8-16  copying on request to the governmental body's chief administrative
   8-17  officer or the officer's designee.  (V.A.C.S. Art. 6252-17, Sec. 3B
   8-18  (part).)
   8-19        Sec. 551.023.  RECORDING OF MEETING BY PERSON IN ATTENDANCE.
   8-20  (a)  A person in attendance may record all or any part of an open
   8-21  meeting of a governmental body by means of a tape recorder, video
   8-22  camera, or other means of aural or visual reproduction.
   8-23        (b)  A governmental body may adopt reasonable rules to
   8-24  maintain order at a meeting, including rules relating to:
   8-25              (1)  the location of recording equipment; and
   8-26              (2)  the manner in which the recording is conducted.
   8-27        (c)  A rule adopted under Subsection (b) may not prevent or
    9-1  unreasonably impair a person from exercising a right granted under
    9-2  Subsection (a).  (V.A.C.S. Art. 6252-17, Sec. 2(i).)
    9-3           (Sections 551.024-551.040 reserved for expansion)
    9-4                   SUBCHAPTER C.  NOTICE OF MEETINGS
    9-5        Sec. 551.041.  NOTICE OF MEETING REQUIRED.  A governmental
    9-6  body shall give written notice of the date, hour, place, and
    9-7  subject of each meeting held by the governmental body.  (V.A.C.S.
    9-8  Art. 6252-17, Sec. 3A(a) (part).)
    9-9        Sec. 551.042.  INQUIRY MADE AT MEETING.  (a)  If, at a
   9-10  meeting of a governmental body, a member of the public or of the
   9-11  governmental body inquires about a subject for which notice has not
   9-12  been given as required by this subchapter, the notice provisions of
   9-13  this subchapter do not apply to:
   9-14              (1)  a statement of specific factual information given
   9-15  in response to the inquiry; or
   9-16              (2)  a recitation of existing policy in response to the
   9-17  inquiry.
   9-18        (b)  Any deliberation of or decision about the subject of the
   9-19  inquiry shall be limited to a proposal to place the subject on the
   9-20  agenda for a subsequent meeting.  (V.A.C.S. Art. 6252-17, Sec.
   9-21  3A(a) (part).)
   9-22        Sec. 551.043.  TIME AND ACCESSIBILITY OF NOTICE; GENERAL
   9-23  RULE.  The notice of a meeting of a governmental body must be
   9-24  posted in a place readily accessible to the general public at all
   9-25  times for at least 72 hours before the scheduled time of the
   9-26  meeting, except as provided by Sections 551.044-551.046.  (V.A.C.S.
   9-27  Art. 6252-17, Secs. 3A(a) (part) and (h) (part).)
   10-1        Sec. 551.044.  EXCEPTION TO GENERAL RULE:  GOVERNMENTAL BODY
   10-2  WITH STATEWIDE JURISDICTION.  (a)  The secretary of state must post
   10-3  notice of a meeting of a state board, commission, department, or
   10-4  officer having statewide jurisdiction for at least seven days
   10-5  before the day of the meeting.
   10-6        (b)  Subsection (a) does not apply to:
   10-7              (1)  the Texas Workers' Compensation Commission; or
   10-8              (2)  the governing board of an institution of higher
   10-9  education.  (V.A.C.S. Art. 6252-17, Sec. 3A(h) (part).)
  10-10        Sec. 551.045.  EXCEPTION TO GENERAL RULE:  NOTICE OF
  10-11  EMERGENCY MEETING OR EMERGENCY ADDITION TO AGENDA.  (a)  In an
  10-12  emergency or when there is an urgent public necessity, the notice
  10-13  of a meeting or the supplemental notice of a subject added as an
  10-14  item to the agenda for a meeting for which notice has been posted
  10-15  in accordance with this subchapter is sufficient if it is posted
  10-16  for at least two hours before the meeting is convened.
  10-17        (b)  An emergency or an urgent public necessity exists only
  10-18  if immediate action is required of a governmental body because of:
  10-19              (1)  an imminent threat to public health and safety; or
  10-20              (2)  a reasonably unforeseeable situation.
  10-21        (c)  The governmental body shall clearly identify the
  10-22  emergency or urgent public necessity in the notice or supplemental
  10-23  notice under this section.
  10-24        (d)  A person who is designated or authorized to post notice
  10-25  of a meeting by a governmental body under this subchapter shall
  10-26  post the notice taking at face value the governmental body's stated
  10-27  reason for the emergency or urgent public necessity.  (V.A.C.S.
   11-1  Art. 6252-17, Sec. 3A(h) (part).)
   11-2        Sec. 551.046.  EXCEPTION TO GENERAL RULE:  COMMITTEE OF
   11-3  LEGISLATURE.  The notice of a legislative committee meeting shall
   11-4  be as provided by the rules of the house of representatives or of
   11-5  the senate.  (V.A.C.S. Art. 6252-17, Sec. 3A(h) (part).)
   11-6        Sec. 551.047.  SPECIAL NOTICE TO NEWS MEDIA OF EMERGENCY
   11-7  MEETING OR EMERGENCY ADDITION TO AGENDA.  (a)  The presiding
   11-8  officer of a governmental body, or the member of a governmental
   11-9  body who calls an emergency meeting of the governmental body or
  11-10  adds an emergency item to the agenda of a meeting of the
  11-11  governmental body, shall notify the news media of the emergency
  11-12  meeting or emergency item as required by this section.
  11-13        (b)  The presiding officer or member is required to notify
  11-14  only those members of the news media that have previously:
  11-15              (1)  filed at the headquarters of the governmental body
  11-16  a request containing all pertinent information for the special
  11-17  notice; and
  11-18              (2)  agreed to reimburse the governmental body for the
  11-19  cost of providing the special notice.
  11-20        (c)  The presiding officer or member shall give the notice by
  11-21  telephone or telegraph.  (V.A.C.S. Art. 6252-17, Sec. 3A(h)
  11-22  (part).)
  11-23        Sec. 551.048.  STATE GOVERNMENTAL BODY:  NOTICE TO SECRETARY
  11-24  OF STATE; PLACE OF POSTING NOTICE.  (a)  A state governmental body
  11-25  shall provide notice of each meeting to the secretary of state.
  11-26        (b)  The secretary of state shall post the notice on a
  11-27  bulletin board at a place convenient to the public in the main
   12-1  office of the secretary of state.  (V.A.C.S. Art. 6252-17, Sec.
   12-2  3A(b).)
   12-3        Sec. 551.049.  COUNTY GOVERNMENTAL BODY:  PLACE OF POSTING
   12-4  NOTICE.  A county governmental body shall post notice of each
   12-5  meeting on a bulletin board at a place convenient to the public in
   12-6  the county courthouse.  (V.A.C.S. Art. 6252-17, Sec. 3A(d).)
   12-7        Sec. 551.050.  MUNICIPAL GOVERNMENTAL BODY:  PLACE OF POSTING
   12-8  NOTICE.  A municipal governmental body shall post notice of each
   12-9  meeting on a bulletin board at a place convenient to the public in
  12-10  the city hall.  (V.A.C.S. Art. 6252-17, Sec. 3A(c).)
  12-11        Sec. 551.051.  SCHOOL DISTRICT:  PLACE OF POSTING NOTICE.  A
  12-12  school district shall post notice of each meeting on a bulletin
  12-13  board at a place convenient to the public in the central
  12-14  administrative office of the district.  (V.A.C.S. Art. 6252-17,
  12-15  Sec. 3A(e) (part).)
  12-16        Sec. 551.052.  SCHOOL DISTRICT:  SPECIAL NOTICE TO NEWS
  12-17  MEDIA.  (a)  A school district shall provide special notice of each
  12-18  meeting to any news media that has:
  12-19              (1)  requested special notice; and
  12-20              (2)  agreed to reimburse the district for the cost of
  12-21  providing the special notice.
  12-22        (b)  The notice shall be by telephone or telegraph.
  12-23  (V.A.C.S. Art. 6252-17, Sec. 3A(e) (part).)
  12-24        Sec. 551.053.  DISTRICT OR POLITICAL SUBDIVISION EXTENDING
  12-25  INTO FOUR OR MORE COUNTIES:  NOTICE TO PUBLIC, SECRETARY OF STATE,
  12-26  AND COUNTY CLERK; PLACE OF POSTING NOTICE.  (a)  The governing body
  12-27  of a water district or other district or political subdivision that
   13-1  extends into four or more counties shall:
   13-2              (1)  post notice of each meeting at a place convenient
   13-3  to the public in the administrative office of the district or
   13-4  political subdivision;
   13-5              (2)  provide notice of each meeting to the secretary of
   13-6  state; and
   13-7              (3)  provide notice of each meeting to the county clerk
   13-8  of the county in which the administrative office of the district or
   13-9  political subdivision is located.
  13-10        (b)  The secretary of state shall post the notice provided
  13-11  under Subsection (a)(2) on a bulletin board at a place convenient
  13-12  to the public in the main office of the secretary of state.
  13-13        (c)  A county clerk shall post the notice provided under
  13-14  Subsection (a)(3) on a bulletin board at a place convenient to the
  13-15  public in the county courthouse.  (V.A.C.S. Art. 6252-17, Sec.
  13-16  3A(f).)
  13-17        Sec. 551.054.  DISTRICT OR POLITICAL SUBDIVISION EXTENDING
  13-18  INTO FEWER THAN FOUR COUNTIES:  NOTICE TO PUBLIC AND COUNTY CLERKS;
  13-19  PLACE OF POSTING NOTICE.  (a)  The governing body of a water
  13-20  district or other district or political subdivision that extends
  13-21  into fewer than four counties shall:
  13-22              (1)  post notice of each meeting at a place convenient
  13-23  to the public in the administrative office of the district or
  13-24  political subdivision; and
  13-25              (2)  provide notice of each meeting to the county clerk
  13-26  of each county in which the district or political subdivision is
  13-27  located.
   14-1        (b)  A county clerk shall post the notice provided under
   14-2  Subsection (a)(2) on a bulletin board at a place convenient to the
   14-3  public in the county courthouse.  (V.A.C.S. Art. 6252-17, Sec.
   14-4  3A(g).)
   14-5           (Sections 551.055-551.070 reserved for expansion)
   14-6    SUBCHAPTER D.  EXCEPTIONS TO REQUIREMENT THAT MEETINGS BE OPEN
   14-7        Sec. 551.071.  CONSULTATION WITH ATTORNEY; CLOSED MEETING.  A
   14-8  governmental body may not conduct a private consultation with its
   14-9  attorney except:
  14-10              (1)  when the governmental body seeks the advice of its
  14-11  attorney about:
  14-12                    (A)  pending or contemplated litigation; or
  14-13                    (B)  a settlement offer; or
  14-14              (2)  on a matter in which the duty of the attorney to
  14-15  the governmental body under the Texas Disciplinary Rules of
  14-16  Professional Conduct of the State Bar of Texas clearly conflicts
  14-17  with this chapter.  (V.A.C.S. Art. 6252-17, Sec. 2(e).)
  14-18        Sec. 551.072.  DELIBERATION REGARDING REAL PROPERTY; CLOSED
  14-19  MEETING.  A governmental body may conduct a closed meeting to
  14-20  deliberate the purchase, exchange, lease, or value of real property
  14-21  if deliberation in an open meeting would have a detrimental effect
  14-22  on the position of the governmental body in negotiations with a
  14-23  third person.  (V.A.C.S. Art. 6252-17, Sec. 2(f) (part).)
  14-24        Sec. 551.073.  DELIBERATION REGARDING PROSPECTIVE GIFT;
  14-25  CLOSED MEETING.  A governmental body may conduct a closed meeting
  14-26  to deliberate a negotiated contract for a prospective gift or
  14-27  donation to the state or the governmental body if deliberation in
   15-1  an open meeting would have a detrimental effect on the position of
   15-2  the governmental body in negotiations with a third person.
   15-3  (V.A.C.S. Art. 6252-17, Sec. 2(f) (part).)
   15-4        Sec. 551.074.  PERSONNEL MATTERS; CLOSED MEETING.  (a)  This
   15-5  chapter does not require a governmental body to conduct an open
   15-6  meeting:
   15-7              (1)  to deliberate the appointment, employment,
   15-8  evaluation, reassignment, duties, discipline, or dismissal of a
   15-9  public officer or employee; or
  15-10              (2)  to hear a complaint or charge against an officer
  15-11  or employee.
  15-12        (b)  Subsection (a) does not apply if the officer or employee
  15-13  who is the subject of the deliberation or hearing requests a public
  15-14  hearing.  (V.A.C.S. Art. 6252-17, Sec. 2(g).)
  15-15        Sec. 551.075.  CONFERENCE WITH EMPLOYEES; CLOSED MEETING.
  15-16  (a)  This chapter does not require a governmental body to confer
  15-17  with one or more employees of the governmental body in an open
  15-18  meeting if the only purpose of the conference is to:
  15-19              (1)  receive information from the employees; or
  15-20              (2)  question the employees.
  15-21        (b)  During a conference under Subsection (a), members of the
  15-22  governmental body may not deliberate public business or agency
  15-23  policy that affects public business.  (V.A.C.S. Art. 6252-17, Sec.
  15-24  2(r), as added by Sec. 2, Ch. 549, Acts of the 70th Leg., R.S.,
  15-25  1987.)
  15-26        Sec. 551.076.  DELIBERATION REGARDING SECURITY DEVICES;
  15-27  CLOSED MEETING.  This chapter does not require a governmental body
   16-1  to conduct an open meeting to deliberate the deployment, or
   16-2  specific occasions for implementation, of security personnel or
   16-3  devices.  (V.A.C.S. Art. 6252-17, Sec. 2(j).)
   16-4        Sec. 551.077.  AGENCY FINANCED BY FEDERAL GOVERNMENT.  This
   16-5  chapter does not require an agency financed entirely by federal
   16-6  money to conduct an open meeting.  (V.A.C.S. Art. 6252-17, Sec.
   16-7  2(n).)
   16-8        Sec. 551.078.  MEDICAL BOARD OR MEDICAL COMMITTEE.  This
   16-9  chapter does not require a medical board or medical committee to
  16-10  conduct an open meeting to deliberate the medical or psychiatric
  16-11  records of an individual applicant for a disability benefit from a
  16-12  public retirement system.  (V.A.C.S. Art. 6252-17, Sec. 2(o).)
  16-13        Sec. 551.079.  STATE BOARD OF INSURANCE.  (a)  The
  16-14  requirements of this chapter do not apply to a meeting of the State
  16-15  Board of Insurance in the discharge of responsibilities to regulate
  16-16  and maintain the solvency of a person regulated by the board.
  16-17        (b)  The board may deliberate and determine the appropriate
  16-18  action to be taken concerning the solvency of a person regulated by
  16-19  the board in a closed meeting with persons in one or more of the
  16-20  following categories:
  16-21              (1)  staff of the board;
  16-22              (2)  a regulated person; or
  16-23              (3)  representatives of a regulated person.  (V.A.C.S.
  16-24  Art. 6252-17, Sec. 2(q).)
  16-25        Sec. 551.080.  BOARD OF PARDONS AND PAROLES.  This chapter
  16-26  does not require the Board of Pardons and Paroles to conduct an
  16-27  open meeting to interview or counsel an inmate of a facility of the
   17-1  institutional division of the Texas Department of Criminal Justice.
   17-2  (V.A.C.S. Art. 6252-17, Sec. 2(p).)
   17-3        Sec. 551.081.  CREDIT UNION COMMISSION.  This chapter does
   17-4  not require the Credit Union Commission to conduct an open meeting
   17-5  to deliberate a matter made confidential by law.  (V.A.C.S. Art.
   17-6  6252-17, Sec. 2(t).)
   17-7        Sec. 551.082.  SCHOOL CHILDREN; SCHOOL DISTRICT EMPLOYEES;
   17-8  DISCIPLINARY MATTER OR COMPLAINT.  (a)  This chapter does not
   17-9  require a school board to conduct an open meeting to deliberate in
  17-10  a case:
  17-11              (1)  involving discipline of a public school child; or
  17-12              (2)  in which a complaint or charge is brought against
  17-13  an employee of the school district by another employee and the
  17-14  complaint or charge directly results in a need for a hearing.
  17-15        (b)  Subsection (a) does not apply if an open hearing is
  17-16  requested in writing by a parent or guardian of the child or by the
  17-17  employee against whom the complaint or charge is brought.
  17-18  (V.A.C.S. Art. 6252-17, Sec. 2(h).)
  17-19        Sec. 551.083.  CERTAIN SCHOOL BOARDS; CLOSED MEETING
  17-20  REGARDING CONSULTATION WITH REPRESENTATIVE OF EMPLOYEE GROUP.  This
  17-21  chapter does not require a school board operating under a
  17-22  consultation agreement authorized by Section 13.901, Education
  17-23  Code, to conduct an open meeting to deliberate the standards,
  17-24  guidelines, terms, or conditions the board will follow, or instruct
  17-25  its representatives to follow, in a consultation with a
  17-26  representative of an employee group.  (V.A.C.S. Art. 6252-17, Sec.
  17-27  2(m).)
   18-1        Sec. 551.084.  INVESTIGATION; EXCLUSION OF WITNESS FROM
   18-2  HEARING.  A governmental body that is investigating a matter may
   18-3  exclude a witness from a hearing during the examination of another
   18-4  witness in the investigation.  (V.A.C.S. Art. 6252-17, Sec. 2(c).)
   18-5           (Sections 551.085-551.100 reserved for expansion)
   18-6         SUBCHAPTER E.  PROCEDURES RELATING TO CLOSED MEETING
   18-7        Sec. 551.101.  REQUIREMENT TO FIRST CONVENE IN OPEN MEETING.
   18-8  If a closed meeting is allowed under this chapter, a governmental
   18-9  body may not conduct the closed meeting unless a quorum of the
  18-10  governmental body first convenes in an open meeting for which
  18-11  notice has been given as provided by this chapter and during which
  18-12  the presiding officer publicly:
  18-13              (1)  announces that a closed meeting will be held; and
  18-14              (2)  identifies the section or sections of this chapter
  18-15  under which the closed meeting is held.  (V.A.C.S. Art. 6252-17,
  18-16  Sec. 2(a) (part).)
  18-17        Sec. 551.102.  REQUIREMENT TO VOTE OR TAKE FINAL ACTION IN
  18-18  OPEN MEETING.  A final action, decision, or vote on a matter
  18-19  deliberated in a closed meeting under this chapter may only be made
  18-20  in an open meeting that is held in compliance with the notice
  18-21  provisions of this chapter.  (V.A.C.S. Art. 6252-17, Sec. 2(l).)
  18-22        Sec. 551.103.  CERTIFIED AGENDA OR TAPE RECORDING REQUIRED.
  18-23  (a)  A governmental body shall either keep a certified agenda or
  18-24  make a tape recording of the proceedings of each closed meeting,
  18-25  except for a private consultation permitted under Section 551.071.
  18-26        (b)  The presiding officer shall certify that an agenda kept
  18-27  under Subsection (a) is a true and correct record of the
   19-1  proceedings.
   19-2        (c)  The certified agenda must include:
   19-3              (1)  a statement of the subject matter of each
   19-4  deliberation;
   19-5              (2)  a record of any further action taken; and
   19-6              (3)  an announcement by the presiding officer at the
   19-7  beginning and the end of the meeting indicating the date and time.
   19-8        (d)  A tape recording made under Subsection (a) must include
   19-9  announcements by the presiding officer at the beginning and the end
  19-10  of the meeting indicating the date and time.  (V.A.C.S. Art.
  19-11  6252-17, Secs. 2A(a), (b), (c) (part), (d).)
  19-12        Sec. 551.104.  CERTIFIED AGENDA OR TAPE; PRESERVATION;
  19-13  DISCLOSURE.  (a)  A governmental body shall preserve the certified
  19-14  agenda or tape recording of a closed meeting for at least two years
  19-15  after the date of the meeting.  If an action involving the meeting
  19-16  is brought within that period, the governmental body shall preserve
  19-17  the certified agenda or tape while the action is pending.
  19-18        (b)  In litigation in a district court involving an alleged
  19-19  violation of this chapter, the court:
  19-20              (1)  is entitled to make an in camera inspection of the
  19-21  certified agenda or tape;
  19-22              (2)  may admit all or part of the certified agenda or
  19-23  tape as evidence, on entry of a final judgment; and
  19-24              (3)  may grant legal or equitable relief it considers
  19-25  appropriate, including an order that the governmental body make
  19-26  available to the public the certified agenda or tape of any part of
  19-27  a meeting that was required to be open under this chapter.
   20-1        (c)  The certified agenda or tape of a closed meeting is
   20-2  available for public inspection and copying only under a court
   20-3  order issued under Subsection (b)(3).  (V.A.C.S. Art. 6252-17,
   20-4  Secs. 2A(c) (part), (e), (f).)
   20-5           (Sections 551.105-551.120 reserved for expansion)
   20-6         SUBCHAPTER F.  MEETINGS BY TELEPHONE CONFERENCE CALL
   20-7        Sec. 551.121.  GOVERNING BOARD OF INSTITUTION OF HIGHER
   20-8  EDUCATION.  (a)  In this section, "governing board," "institution
   20-9  of higher education," and "university system" have the meanings
  20-10  assigned by Section 61.003, Education Code.
  20-11        (b)  This chapter does not prohibit the governing board of an
  20-12  institution of higher education from holding an open or closed
  20-13  meeting by telephone conference call.
  20-14        (c)  A meeting held by telephone conference call may be held
  20-15  only if:
  20-16              (1)  the meeting is a special called meeting and
  20-17  immediate action is required; and
  20-18              (2)  the convening at one location of a quorum of the
  20-19  governing board is difficult or impossible.
  20-20        (d)  The telephone conference call meeting is subject to the
  20-21  notice requirements applicable to other meetings.
  20-22        (e)  The notice of the telephone conference call meeting must
  20-23  specify as the location of the meeting the location where meetings
  20-24  of the governing board are usually held.  For a meeting of the
  20-25  governing board of a university system, the notice must specify as
  20-26  the location of the meeting the board's conference room at the
  20-27  university system office.
   21-1        (f)  Each part of the telephone conference call meeting that
   21-2  is required to be open to the public shall be audible to the public
   21-3  at the location specified in the notice of the meeting as the
   21-4  location of the meeting and shall be tape recorded.  The tape
   21-5  recording shall be made available to the public.  (V.A.C.S. Art.
   21-6  6252-17, Sec. 2(r), as added by Sec. 4, Ch. 964, Acts of the 70th
   21-7  Leg., R.S., 1987; New.)
   21-8        Sec. 551.122.  TEXAS HIGH-SPEED RAIL AUTHORITY.  The Texas
   21-9  High-Speed Rail Authority may conduct an open or closed meeting by
  21-10  telephone conference call using the procedures described in Section
  21-11  551.121.  (V.A.C.S. Art. 6674v.2, Sec. 5(c).)
  21-12        Sec. 551.123.  TEXAS BOARD OF CRIMINAL JUSTICE.  (a)  The
  21-13  Texas Board of Criminal Justice may hold an open or closed
  21-14  emergency meeting by telephone conference call.
  21-15        (b)  The portion of the telephone conference call meeting
  21-16  that is open shall be recorded.  The recording shall be made
  21-17  available to be heard by the public at one or more places
  21-18  designated by the board.  (Government Code, Sec. 492.006(c).)
  21-19        Sec. 551.124.  BOARD OF PARDONS AND PAROLES.  At the call of
  21-20  the presiding officer of the Board of Pardons and Paroles, the
  21-21  board may hold a hearing on clemency matters by telephone
  21-22  conference call.  The portion of a meeting that is public is
  21-23  subject to the provisions of Section 7(f), Article 42.18, Code of
  21-24  Criminal Procedure.  (Code of Criminal Procedure, Art. 42.18, Sec.
  21-25  7(f) (part); New.)
  21-26           (Sections 551.125-551.140 reserved for expansion)
  21-27     SUBCHAPTER G.  ENFORCEMENT AND REMEDIES; CRIMINAL VIOLATIONS
   22-1        Sec. 551.141.  ACTION VOIDABLE.  An action taken by a
   22-2  governmental body in violation of this chapter is voidable.
   22-3  (V.A.C.S. Art. 6252-17, Sec. 3(a) (part).)
   22-4        Sec. 551.142.  MANDAMUS; INJUNCTION.  (a)  An interested
   22-5  person, including a member of the news media, may bring an action
   22-6  by mandamus or injunction to stop, prevent, or reverse a violation
   22-7  or threatened violation of this chapter by members of a
   22-8  governmental body.
   22-9        (b)  The court may assess costs of litigation and reasonable
  22-10  attorney's fees incurred by a plaintiff or defendant who
  22-11  substantially prevails in an action under Subsection (a).  In
  22-12  exercising its discretion, the court shall consider whether the
  22-13  action was brought in good faith and whether the conduct of the
  22-14  governmental body had a reasonable basis in law.  (V.A.C.S. Art.
  22-15  6252-17, Sec. 3(a) (part), (b).)
  22-16        Sec. 551.143.  CONSPIRACY TO CIRCUMVENT CHAPTER; OFFENSE;
  22-17  PENALTY.  (a)  A member or group of members of a governmental body
  22-18  commits an offense if the member or group of members knowingly
  22-19  conspires to circumvent this chapter by meeting in numbers less
  22-20  than a quorum for the purpose of secret deliberations in violation
  22-21  of this chapter.
  22-22        (b)  An offense under Subsection (a) is a misdemeanor
  22-23  punishable by:
  22-24              (1)  a fine of not less than $100 or more than $500;
  22-25              (2)  confinement in the county jail for not less than
  22-26  one month or more than six months; or
  22-27              (3)  both the fine and confinement.  (V.A.C.S. Art.
   23-1  6252-17, Sec. 4(b).)
   23-2        Sec. 551.144.  CLOSED MEETING; OFFENSE; PENALTY.  (a)  A
   23-3  member of a governmental body commits an offense if a closed
   23-4  meeting is not permitted under this chapter and the member
   23-5  knowingly:
   23-6              (1)  calls or aids in calling or organizing the closed
   23-7  meeting, whether it is a special or called closed meeting;
   23-8              (2)  closes or aids in closing a regular meeting to the
   23-9  public; or
  23-10              (3)  participates in the closed meeting, whether it is
  23-11  a regular, special, or called meeting.
  23-12        (b)  An offense under Subsection (a) is a misdemeanor
  23-13  punishable by:
  23-14              (1)  a fine of not less than $100 or more than $500;
  23-15              (2)  confinement in the county jail for not less than
  23-16  one month or more than six months; or
  23-17              (3)  both the fine and confinement.  (V.A.C.S. Art.
  23-18  6252-17, Sec. 4(a).)
  23-19        Sec. 551.145.  CLOSED MEETING WITHOUT CERTIFIED AGENDA OR
  23-20  TAPE RECORDING; OFFENSE; PENALTY.  (a)  A member of a governmental
  23-21  body commits an offense if the member participates in a closed
  23-22  meeting of the governmental body knowing that a certified agenda of
  23-23  the closed meeting is not being kept or that a tape recording of
  23-24  the closed meeting is not being made.
  23-25        (b)  An offense under Subsection (a) is a Class C
  23-26  misdemeanor.  (V.A.C.S. Art. 6252-17, Sec. 2A(g).)
  23-27        Sec. 551.146.  DISCLOSURE OF CERTIFIED AGENDA OR TAPE
   24-1  RECORDING OF CLOSED MEETING; OFFENSE; PENALTY; CIVIL LIABILITY.
   24-2  (a)  An individual, corporation, or partnership that without lawful
   24-3  authority knowingly discloses to a member of the public the
   24-4  certified agenda or tape recording of a meeting that was lawfully
   24-5  closed to the public under this chapter:
   24-6              (1)  commits an offense; and
   24-7              (2)  is liable to a person injured or damaged by the
   24-8  disclosure for:
   24-9                    (A)  actual damages, including damages for
  24-10  personal injury or damage, lost wages, defamation, or mental or
  24-11  other emotional distress;
  24-12                    (B)  reasonable attorney's fees and court costs;
  24-13  and
  24-14                    (C)  at the discretion of the trier of fact,
  24-15  exemplary damages.
  24-16        (b)  An offense under Subsection (a)(1) is a Class B
  24-17  misdemeanor.
  24-18        (c)  It is a defense to prosecution under Subsection (a)(1)
  24-19  and an affirmative defense to a civil action under Subsection
  24-20  (a)(2) that:
  24-21              (1)  the defendant had good reason to believe the
  24-22  disclosure was lawful; or
  24-23              (2)  the disclosure was the result of a mistake of fact
  24-24  concerning the nature or content of the certified agenda or tape
  24-25  recording.  (V.A.C.S. Art. 6252-17, Secs. 2A(h), (i), (j).)
  24-26                      CHAPTER 552.  OPEN RECORDS
  24-27                   SUBCHAPTER A.  GENERAL PROVISIONS
   25-1  Sec. 552.001.  POLICY; CONSTRUCTION
   25-2  Sec. 552.002.  DEFINITION OF PUBLIC RECORD
   25-3  Sec. 552.003.  DEFINITION OF GOVERNMENTAL BODY
   25-4  Sec. 552.004.  PRESERVATION OF RECORDS
   25-5  Sec. 552.005.  EFFECT OF CHAPTER ON SCOPE OF CIVIL
   25-6                   DISCOVERY
   25-7  Sec. 552.006.  EFFECT OF CHAPTER ON WITHHOLDING INFORMATION
   25-8  Sec. 552.007.  VOLUNTARY DISCLOSURE OF CERTAIN RECORDS WHEN
   25-9                   DISCLOSURE NOT REQUIRED
  25-10  Sec. 552.008.  INFORMATION FOR LEGISLATIVE PURPOSES
  25-11           (Sections 552.009-552.020 reserved for expansion)
  25-12         SUBCHAPTER B.  RIGHT OF ACCESS TO PUBLIC INFORMATION
  25-13  Sec. 552.021.  PUBLIC INFORMATION
  25-14  Sec. 552.022.  CATEGORIES OF PUBLIC INFORMATION; EXAMPLES
  25-15  Sec. 552.023.  SPECIAL RIGHT OF ACCESS TO CONFIDENTIAL
  25-16                   INFORMATION
  25-17  Sec. 552.024.  ELECTING TO DISCLOSE ADDRESS AND TELEPHONE
  25-18                   NUMBER
  25-19  Sec. 552.025.  TAX RULINGS AND OPINIONS
  25-20  Sec. 552.026.  EDUCATION RECORDS
  25-21           (Sections 552.027-552.100 reserved for expansion)
  25-22     SUBCHAPTER C.  INFORMATION EXCEPTED FROM REQUIRED DISCLOSURE
  25-23  Sec. 552.101.  EXCEPTION:  CONFIDENTIAL INFORMATION
  25-24  Sec. 552.102.  EXCEPTION:  PERSONNEL INFORMATION
  25-25  Sec. 552.103.  EXCEPTION:  LITIGATION OR SETTLEMENT NEGOTIATIONS
  25-26                   INVOLVING THE STATE OR A POLITICAL
  25-27                   SUBDIVISION
   26-1  Sec. 552.104.  EXCEPTION:  INFORMATION RELATED TO COMPETITION
   26-2                   OR BIDDING
   26-3  Sec. 552.105.  EXCEPTION:  INFORMATION RELATED TO LOCATION
   26-4                   OR PRICE OF PROPERTY
   26-5  Sec. 552.106.  EXCEPTION:  CERTAIN LEGISLATIVE DOCUMENTS
   26-6  Sec. 552.107.  EXCEPTION:  CERTAIN LEGAL MATTERS
   26-7  Sec. 552.108.  EXCEPTION:  CERTAIN LAW ENFORCEMENT AND
   26-8                   PROSECUTORIAL RECORDS
   26-9  Sec. 552.109.  EXCEPTION:  CERTAIN PRIVATE COMMUNICATIONS OF
  26-10                   AN ELECTED OFFICE HOLDER
  26-11  Sec. 552.110.  EXCEPTION:  TRADE SECRETS, COMMERCIAL INFORMATION,
  26-12                   OR FINANCIAL INFORMATION
  26-13  Sec. 552.111.  EXCEPTION:  AGENCY MEMORANDA
  26-14  Sec. 552.112.  EXCEPTION:  CERTAIN INFORMATION RELATING TO
  26-15                   REGULATION OF FINANCIAL INSTITUTIONS OR
  26-16                   SECURITIES
  26-17  Sec. 552.113.  EXCEPTION:  GEOLOGICAL OR GEOPHYSICAL
  26-18                   INFORMATION
  26-19  Sec. 552.114.  EXCEPTION:  STUDENT RECORDS
  26-20  Sec. 552.115.  EXCEPTION:  BIRTH AND DEATH RECORDS
  26-21  Sec. 552.116.  EXCEPTION:  STATE AUDITOR WORKING PAPERS
  26-22  Sec. 552.117.  EXCEPTION:  CERTAIN ADDRESSES, TELEPHONE NUMBERS,
  26-23                   AND SOCIAL SECURITY NUMBERS
  26-24  Sec. 552.118.  EXCEPTION:  TRIPLICATE PRESCRIPTION FORM
  26-25  Sec. 552.119.  EXCEPTION:  PHOTOGRAPH OF PEACE OFFICER OR
  26-26                   CERTAIN SECURITY GUARDS
  26-27  Sec. 552.120.  EXCEPTION:  CERTAIN RARE BOOKS AND ORIGINAL
   27-1                   MANUSCRIPTS
   27-2  Sec. 552.121.  EXCEPTION:  CERTAIN DOCUMENTS HELD FOR HISTORICAL
   27-3                   RESEARCH
   27-4  Sec. 552.122.  EXCEPTION:  CURRICULUM OBJECTIVES AND TEST
   27-5                   ITEMS
   27-6  Sec. 552.123.  EXCEPTION:  NAME OF APPLICANT FOR CHIEF EXECUTIVE
   27-7                   OFFICER OF INSTITUTION OF HIGHER EDUCATION
   27-8           (Sections 552.124-552.200 reserved for expansion)
   27-9               SUBCHAPTER D.  OFFICER FOR PUBLIC RECORDS
  27-10  Sec. 552.201.  IDENTITY OF OFFICER FOR PUBLIC RECORDS
  27-11  Sec. 552.202.  DEPARTMENT HEADS
  27-12  Sec. 552.203.  GENERAL DUTIES OF OFFICER FOR PUBLIC RECORDS
  27-13           (Sections 552.204-552.220 reserved for expansion)
  27-14              SUBCHAPTER E.  PROCEDURES RELATED TO ACCESS
  27-15  Sec. 552.221.  APPLICATION FOR PUBLIC INFORMATION
  27-16  Sec. 552.222.  PERMISSIBLE INQUIRY OF PERSON APPLYING FOR
  27-17                   INSPECTION OF RECORDS
  27-18  Sec. 552.223.  UNIFORM TREATMENT OF REQUESTS FOR INFORMATION
  27-19  Sec. 552.224.  COMFORT AND FACILITY
  27-20  Sec. 552.225.  TIME FOR EXAMINATION
  27-21  Sec. 552.226.  REMOVAL OF ORIGINAL RECORD
  27-22  Sec. 552.227.  RESEARCH OF STATE LIBRARY HOLDINGS NOT
  27-23                   REQUIRED
  27-24  Sec. 552.228.  PROVIDING SUITABLE COPY OF RECORD WITHIN
  27-25                   REASONABLE TIME
  27-26  Sec. 552.229.  CONSENT TO RELEASE INFORMATION UNDER SPECIAL
  27-27                   RIGHT OF ACCESS
   28-1  Sec. 552.230.  RULES OF PROCEDURE FOR INSPECTION OF PUBLIC
   28-2                   RECORDS
   28-3           (Sections 552.231-552.260 reserved for expansion)
   28-4                     SUBCHAPTER F.  COST OF COPIES
   28-5  Sec. 552.261.  DETERMINING COST OF COPIES
   28-6  Sec. 552.262.  COST FOR NONSTANDARD RECORDS
   28-7  Sec. 552.263.  BOND FOR PAYMENT OF COSTS OR CASH PREPAYMENT FOR
   28-8                   PREPARATION OF PUBLIC RECORDS
   28-9  Sec. 552.264.  COPY OF PUBLIC RECORD REQUESTED BY MEMBER OF
  28-10                   LEGISLATURE
  28-11  Sec. 552.265.  CERTIFIED RECORD PROVIDED BY DISTRICT OR
  28-12                   COUNTY CLERK
  28-13  Sec. 552.266.  COPY OF PUBLIC RECORD PROVIDED BY MUNICIPAL
  28-14                   COURT CLERK
  28-15  Sec. 552.267.  WAIVER OR REDUCTION OF FEE FOR COPY OF
  28-16                   PUBLIC RECORD
  28-17  Sec. 552.268.  EFFICIENT USE OF PUBLIC RECORDS
  28-18  Sec. 552.269.  RECOVERY OF OVERPAYMENT FOR PUBLIC RECORD
  28-19           (Sections 552.270-552.300 reserved for expansion)
  28-20               SUBCHAPTER G.  ATTORNEY GENERAL DECISIONS
  28-21  Sec. 552.301.  REQUEST FOR ATTORNEY GENERAL DECISION
  28-22  Sec. 552.302.  FAILURE TO MAKE TIMELY REQUEST FOR ATTORNEY
  28-23                   GENERAL DECISION; PRESUMPTION THAT INFORMATION
  28-24                   IS PUBLIC
  28-25  Sec. 552.303.  DELIVERY OF REQUESTED INFORMATION TO ATTORNEY
  28-26                   GENERAL; DISCLOSURE OF REQUESTED
  28-27                   INFORMATION
   29-1  Sec. 552.304.  SUBMISSION OF PUBLIC COMMENTS
   29-2  Sec. 552.305.  INFORMATION INVOLVING PRIVACY OR PROPERTY
   29-3                   INTERESTS OF THIRD PARTY
   29-4  Sec. 552.306.  RENDITION OF ATTORNEY GENERAL DECISION; ISSUANCE
   29-5                   OF WRITTEN OPINION
   29-6  Sec. 552.307.  SPECIAL RIGHT OF ACCESS; ATTORNEY GENERAL
   29-7                   DECISIONS
   29-8           (Sections 552.308-552.320 reserved for expansion)
   29-9                   SUBCHAPTER H.  CIVIL ENFORCEMENT
  29-10  Sec. 552.321.  APPLICATION FOR WRIT OF MANDAMUS
  29-11  Sec. 552.322.  DISCOVERY OF INFORMATION UNDER PROTECTIVE ORDER
  29-12                   PENDING FINAL DETERMINATION
  29-13  Sec. 552.323.  ASSESSMENT OF COSTS OF LITIGATION AND REASONABLE
  29-14                   ATTORNEY'S FEES
  29-15           (Sections 552.324-552.350 reserved for expansion)
  29-16                  SUBCHAPTER I.  CRIMINAL VIOLATIONS
  29-17  Sec. 552.351.  DESTRUCTION, REMOVAL, OR ALTERATION OF PUBLIC
  29-18                   RECORD
  29-19  Sec. 552.352.  DISTRIBUTION OF CONFIDENTIAL INFORMATION
  29-20  Sec. 552.353.  FAILURE OR REFUSAL OF OFFICER FOR PUBLIC RECORDS
  29-21                   TO PROVIDE ACCESS TO OR COPYING OF PUBLIC
  29-22                   RECORD
  29-23                      CHAPTER 552.  OPEN RECORDS
  29-24                   SUBCHAPTER A.  GENERAL PROVISIONS
  29-25        Sec. 552.001.  POLICY; CONSTRUCTION.  (a)  Under the
  29-26  fundamental philosophy of the American constitutional form of
  29-27  representative government that adheres to the principle that
   30-1  government is the servant and not the master of the people, it is
   30-2  the policy of this state that each person is entitled, unless
   30-3  otherwise expressly provided by law, at all times to complete
   30-4  information about the affairs of government and the official acts
   30-5  of public officials and employees.  The people, in delegating
   30-6  authority, do not give their public servants the right to decide
   30-7  what is good for the people to know and what is not good for them
   30-8  to know.  The people insist on remaining informed so that they may
   30-9  retain control over the instruments they have created.  The
  30-10  provisions of this chapter shall be liberally construed to
  30-11  implement this policy.
  30-12        (b)  This chapter shall be liberally construed in favor of
  30-13  granting a request for information.  (V.A.C.S. Art. 6252-17a, Secs.
  30-14  1, 14(d).)
  30-15        Sec. 552.002.  DEFINITION OF PUBLIC RECORD.  "Public record"
  30-16  means the portion of a document, writing, letter, memorandum or
  30-17  other written, printed, typed, copied, or developed material that
  30-18  contains public information.  (V.A.C.S. Art. 6252-17a, Sec. 2
  30-19  (part).)
  30-20        Sec. 552.003.  DEFINITION OF GOVERNMENTAL BODY.  (a)  In this
  30-21  chapter, "governmental body" means:
  30-22              (1)  a board, commission, department, committee,
  30-23  institution, agency, or office that is within or is created by the
  30-24  executive or legislative branch of state government and that is
  30-25  directed by one or more elected or appointed members;
  30-26              (2)  a county commissioners court in the state;
  30-27              (3)  a municipal governing body in the state;
   31-1              (4)  a deliberative body that has rulemaking or
   31-2  quasi-judicial power and that is classified as a department,
   31-3  agency, or political subdivision of a county or municipality;
   31-4              (5)  a school district board of trustees;
   31-5              (6)  a county board of school trustees;
   31-6              (7)  a county board of education;
   31-7              (8)  the governing board of a special district;
   31-8              (9)  the governing body of a nonprofit corporation
   31-9  organized under Chapter 76, Acts of the 43rd Legislature, 1st
  31-10  Called Session, 1933 (Article 1434a, Vernon's Texas Civil
  31-11  Statutes), that provides a water supply or wastewater service, or
  31-12  both, and is exempt from ad valorem taxation under Section 11.30,
  31-13  Tax Code; and
  31-14              (10)  the part, section, or portion of an organization,
  31-15  corporation, commission, committee, institution, or agency that
  31-16  spends or that is supported in whole or in part by public funds.
  31-17        (b)  In this chapter, "governmental body" does not include
  31-18  the judiciary.
  31-19        (c)  In this section, "public funds" means funds of the state
  31-20  or of a governmental subdivision of the state.  (V.A.C.S. Art.
  31-21  6252-17a, Sec. 2 (part).)
  31-22        Sec. 552.004.  PRESERVATION OF RECORDS.  A governmental body
  31-23  or, for records of an elective county office, the elected county
  31-24  officer, may determine a time for which records that are not
  31-25  currently in use will be preserved, subject to state laws governing
  31-26  the destruction and other disposition of state and local government
  31-27  records.  (V.A.C.S. Art. 6252-17a, Sec. 5(a) (part).)
   32-1        Sec. 552.005.  EFFECT OF CHAPTER ON SCOPE OF CIVIL DISCOVERY.
   32-2  (a)  This chapter does not affect the scope of civil discovery
   32-3  under the Texas Rules of Civil Procedure.
   32-4        (b)  Exceptions from disclosure under this chapter do not
   32-5  create new privileges from discovery.  (V.A.C.S. Art. 6252-17a,
   32-6  Sec. 14(f).)
   32-7        Sec. 552.006.  EFFECT OF CHAPTER ON WITHHOLDING INFORMATION.
   32-8  This chapter does not authorize withholding of information or limit
   32-9  the availability of public records to the public, except as
  32-10  expressly provided by this chapter.  (V.A.C.S. Art. 6252-17a, Secs.
  32-11  3(a) (part); 3(b) (part); 14(b).)
  32-12        Sec. 552.007.  VOLUNTARY DISCLOSURE OF CERTAIN RECORDS WHEN
  32-13  DISCLOSURE NOT REQUIRED.  (a)  This chapter does not prohibit a
  32-14  governmental body or its officer for public records from
  32-15  voluntarily making part or all of its records available to the
  32-16  public, unless the disclosure is expressly prohibited by law or the
  32-17  records are confidential under law.
  32-18        (b)  Records made available under Subsection (a) must be made
  32-19  available to any person.  (V.A.C.S. Art. 6252-17a, Secs. 3(c)
  32-20  (part); 14(a).)
  32-21        Sec. 552.008.  INFORMATION FOR LEGISLATIVE PURPOSES.  This
  32-22  chapter does not grant authority to withhold information from
  32-23  individual members or committees of the legislature to use for
  32-24  legislative purposes.  (V.A.C.S. Art. 6252-17a, Secs. 3(b) (part);
  32-25  14(c).)
  32-26           (Sections 552.009-552.020 reserved for expansion)
  32-27         SUBCHAPTER B.  RIGHT OF ACCESS TO PUBLIC INFORMATION
   33-1        Sec. 552.021.  PUBLIC INFORMATION.  (a)  Information is
   33-2  public information if, under a law or ordinance or in connection
   33-3  with the transaction of official business, it is collected,
   33-4  assembled, or maintained:
   33-5              (1)  by a governmental body; or
   33-6              (2)  for a governmental body and the governmental body
   33-7  owns the information or has a right of access to it.
   33-8        (b)  Public information is available to the public during
   33-9  normal business hours of the governmental body.  (V.A.C.S. Art.
  33-10  6252-17a, Sec. 3(a) (part).)
  33-11        Sec. 552.022.  CATEGORIES OF PUBLIC INFORMATION; EXAMPLES.
  33-12  Without limiting the meaning of other sections of this chapter, the
  33-13  following categories of information are public information:
  33-14              (1)  a completed report, audit, evaluation, or
  33-15  investigation made of, for, or by a governmental body;
  33-16              (2)  the name, sex, ethnicity, salary, title, and dates
  33-17  of employment of each employee and officer of a governmental body;
  33-18              (3)  information in an account, voucher, or contract
  33-19  relating to the receipt or expenditure of public or other funds by
  33-20  a governmental body, if the information is not otherwise made
  33-21  confidential by law;
  33-22              (4)  the name of each official and the final record of
  33-23  voting on all proceedings in a governmental body;
  33-24              (5)  all working papers, research material, and
  33-25  information used to estimate the need for, or expenditure of,
  33-26  public funds or taxes by a governmental body, on completion of the
  33-27  estimate;
   34-1              (6)  the name, place of business, and the name of the
   34-2  municipality to which local sales and use taxes are credited, if
   34-3  any, for the named person, of a person reporting or paying sales
   34-4  and use taxes under Chapter 151, Tax Code;
   34-5              (7)  a description of an agency's central and field
   34-6  organization, including:
   34-7                    (A)  the established places at which the public
   34-8  may obtain information, submit information or requests, or obtain
   34-9  decisions;
  34-10                    (B)  the employees from whom the public may
  34-11  obtain information, submit information or requests, or obtain
  34-12  decisions;
  34-13                    (C)  in the case of a uniformed service, the
  34-14  members from whom the public may obtain information, submit
  34-15  information or requests, or obtain decisions; and
  34-16                    (D)  the methods by which the public may obtain
  34-17  information, submit information or requests, or obtain decisions;
  34-18              (8)  a statement of the general course and method by
  34-19  which an agency's functions are channeled and determined, including
  34-20  the nature and requirements of all formal and informal procedures;
  34-21              (9)  a rule of procedure, a description of forms
  34-22  available or the places at which forms may be obtained, and
  34-23  instructions relating to the scope and content of all papers,
  34-24  reports, or examinations;
  34-25              (10)  a substantive rule of general applicability
  34-26  adopted by an agency as authorized by law, and a statement of
  34-27  general policy or interpretation of general applicability
   35-1  formulated and adopted by an agency;
   35-2              (11)  each amendment, revision, or repeal of
   35-3  information described by Subdivisions (7)-(10);
   35-4              (12)  final opinions, including concurring and
   35-5  dissenting opinions, and orders issued in the adjudication of
   35-6  cases;
   35-7              (13)  a policy statement or interpretation that has
   35-8  been adopted by an agency;
   35-9              (14)  administrative staff manuals and instructions to
  35-10  staff that affect a member of the public; and
  35-11              (15)  information regarded as open to the public under
  35-12  an agency's policies.  (V.A.C.S. Art. 6252-17a, Sec. 6.)
  35-13        Sec. 552.023.  SPECIAL RIGHT OF ACCESS TO CONFIDENTIAL
  35-14  INFORMATION.  (a)  A person or a person's authorized representative
  35-15  has a special right of access, beyond the right of the general
  35-16  public, to records and copies of records held by a governmental
  35-17  body that contain information relating to the person that is
  35-18  protected from public disclosure by laws intended to protect that
  35-19  person's privacy interests.
  35-20        (b)  A governmental body may not deny access to information
  35-21  to the person, or the person's representative, to whom the
  35-22  information relates on the grounds that the information is
  35-23  considered confidential by privacy principles under this chapter,
  35-24  but may assert as grounds for denial of access other provisions of
  35-25  this chapter or other law that are not intended to protect the
  35-26  person's privacy interests.
  35-27        (c)  A release of information under Subsections (a) and (b)
   36-1  is not an offense under Section 552.352.
   36-2        (d)  A person who receives information under this section may
   36-3  disclose the information to others only to the extent consistent
   36-4  with the authorized purposes for which consent to release the
   36-5  information was obtained.
   36-6        (e)  Access to information under this section shall be
   36-7  provided in the manner prescribed by Sections 552.229 and 552.307.
   36-8  (V.A.C.S. Art. 6252-17a, Secs. 3B(a), (c), (d); New.)
   36-9        Sec. 552.024.  ELECTING TO DISCLOSE ADDRESS AND TELEPHONE
  36-10  NUMBER.  (a)  Each employee or official of a governmental body and
  36-11  each former employee or official of a governmental body shall
  36-12  choose whether to allow public access to the information in the
  36-13  custody of the governmental body relating to the person's home
  36-14  address and home telephone number.
  36-15        (b)  Each employee and official and each former employee and
  36-16  official shall state that person's choice under Subsection (a) to
  36-17  the main personnel officer of the governmental body in a signed
  36-18  writing not later than the 14th day after the date on which:
  36-19              (1)  the employee begins employment with the
  36-20  governmental body;
  36-21              (2)  the official is elected or appointed; or
  36-22              (3)  the former employee or official ends service with
  36-23  the governmental body.
  36-24        (c)  If the employee or official or former employee or
  36-25  official chooses not to allow public access to the information, the
  36-26  information is protected under Subchapter C.
  36-27        (d)  If an employee or official or a former employee or
   37-1  official fails to state the person's choice within the period
   37-2  established by this section, the information is subject to public
   37-3  access.
   37-4        (e)  An employee or official or former employee or official
   37-5  of a governmental body who wishes to close or open public access to
   37-6  the information may request in writing that the main personnel
   37-7  officer of the governmental body close or open access.  (V.A.C.S.
   37-8  Art. 6252-17a, Sec. 3A.)
   37-9        Sec. 552.025.  TAX RULINGS AND OPINIONS.  (a)  A governmental
  37-10  body with taxing authority that issues a written determination
  37-11  letter, technical advice memorandum, or ruling that concerns a tax
  37-12  matter shall index the letter, memorandum, or ruling by subject
  37-13  matter.
  37-14        (b)  On request, the governmental body shall make the index
  37-15  prepared under Subsection (a) and the document itself available to
  37-16  the public, subject to the provisions of this chapter.
  37-17        (c)  Subchapter C does not authorize withholding from the
  37-18  public or limiting the availability to the public of a written
  37-19  determination letter, technical advice memorandum, or ruling that
  37-20  concerns a tax matter and that is issued by a governmental body
  37-21  with taxing authority.  (V.A.C.S. Art. 6252-17a, Secs. 3(f); 6A.)
  37-22        Sec. 552.026.  EDUCATION RECORDS.  This chapter does not
  37-23  require the release of information contained in education records
  37-24  of an educational agency or institution, except in conformity with
  37-25  the Family Educational Rights and Privacy Act of 1974, Sec.  513,
  37-26  Pub. L. No. 93-380, 20 U.S.C. Sec. 1232g.  (V.A.C.S. Art. 6252-17a,
  37-27  Sec. 14(e).)
   38-1           (Sections 552.027-552.100 reserved for expansion)
   38-2     SUBCHAPTER C.  INFORMATION EXCEPTED FROM REQUIRED DISCLOSURE
   38-3        Sec. 552.101.  EXCEPTION:  CONFIDENTIAL INFORMATION.
   38-4  Information is excepted from the requirements of Section 552.021 if
   38-5  it is information considered to be confidential by law, either
   38-6  constitutional, statutory, or by judicial decision.  (V.A.C.S. Art.
   38-7  6252-17a, Sec. 3(a) (part).)
   38-8        Sec. 552.102.  EXCEPTION:  PERSONNEL INFORMATION.  (a)
   38-9  Information is excepted from the requirements of Section 552.021 if
  38-10  it is information in a personnel file, the disclosure of which
  38-11  would constitute a clearly unwarranted invasion of personal
  38-12  privacy, except that all information in the personnel file of an
  38-13  employee of a governmental body is to be made available to that
  38-14  employee or the employee's designated representative as public
  38-15  information is made available under this chapter.
  38-16        (b)  Information is excepted from the requirements of Section
  38-17  552.021 if it is a transcript from an institution of higher
  38-18  education maintained in the personnel file of a professional public
  38-19  school employee, except that this section does not exempt from
  38-20  disclosure the degree obtained or the curriculum on a transcript in
  38-21  the personnel file of the employee.  (V.A.C.S. Art. 6252-17a, Sec.
  38-22  3(a) (part).)
  38-23        Sec. 552.103.  EXCEPTION:  LITIGATION OR SETTLEMENT
  38-24  NEGOTIATIONS INVOLVING THE STATE OR A POLITICAL SUBDIVISION.  (a)
  38-25  Information is excepted from the requirements of Section 552.021 if
  38-26  it is information:
  38-27              (1)  relating to litigation of a civil or criminal
   39-1  nature or settlement negotiations, to which the state or a
   39-2  political subdivision is or may be a party or to which an officer
   39-3  or employee of the state or a political subdivision, as a
   39-4  consequence of the person's office or employment, is or may be a
   39-5  party; and
   39-6              (2)  that the attorney general or the attorney of the
   39-7  political subdivision respectively has determined should be
   39-8  withheld from public inspection.
   39-9        (b)  For purposes of this section, the state or a political
  39-10  subdivision is considered to be a party to litigation of a criminal
  39-11  nature until the applicable statute of limitations has expired or
  39-12  until the defendant has exhausted all appellate and postconviction
  39-13  remedies in state and federal court.  (V.A.C.S. Art. 6252-17a,
  39-14  Secs. 3(a) (part); 3(e).)
  39-15        Sec. 552.104.  EXCEPTION:  INFORMATION RELATED TO COMPETITION
  39-16  OR BIDDING.  Information is excepted from the requirements of
  39-17  Section 552.021 if it is information that, if released, would give
  39-18  advantage to a competitor or bidder.  (V.A.C.S. Art. 6252-17a, Sec.
  39-19  3(a) (part).)
  39-20        Sec. 552.105.  EXCEPTION:  INFORMATION RELATED TO LOCATION OR
  39-21  PRICE OF PROPERTY.  Information is excepted from the requirements
  39-22  of Section 552.021 if it is information relating to:
  39-23              (1)  the location of real or personal property for a
  39-24  public purpose before public announcement of the project; or
  39-25              (2)  appraisals or purchase price of real or personal
  39-26  property for a public purpose before the formal award of contracts
  39-27  for the property.  (V.A.C.S. Art. 6252-17a, Sec. 3(a) (part).)
   40-1        Sec. 552.106.  EXCEPTION:  CERTAIN LEGISLATIVE DOCUMENTS.  A
   40-2  draft or working paper involved in the preparation of proposed
   40-3  legislation is excepted from the requirements of Section 552.021.
   40-4  (V.A.C.S. Art. 6252-17a, Sec. 3(a) (part).)
   40-5        Sec. 552.107.  EXCEPTION:  CERTAIN LEGAL MATTERS.
   40-6  Information is excepted from the requirements of Section 552.021
   40-7  if:
   40-8              (1)  it is information that the attorney general or an
   40-9  attorney of a political subdivision is prohibited from disclosing
  40-10  because of a duty to the client under the Rules of the State Bar of
  40-11  Texas; or
  40-12              (2)  a court by order has prohibited disclosure of the
  40-13  information.  (V.A.C.S. Art. 6252-17a, Sec. 3(a) (part).)
  40-14        Sec. 552.108.  EXCEPTION:  CERTAIN LAW ENFORCEMENT AND
  40-15  PROSECUTORIAL RECORDS.  (a)  A record of a law enforcement agency
  40-16  or prosecutor that deals with the detection, investigation, or
  40-17  prosecution of crime is excepted from the requirements of Section
  40-18  552.021.
  40-19        (b)  An internal record or notation of a law enforcement
  40-20  agency or prosecutor that is maintained for internal use in matters
  40-21  relating to law enforcement or prosecution is excepted from the
  40-22  requirements of Section 552.021.  (V.A.C.S. Art. 6252-17a, Sec.
  40-23  3(a) (part).)
  40-24        Sec. 552.109.  EXCEPTION:  CERTAIN PRIVATE COMMUNICATIONS OF
  40-25  AN ELECTED OFFICE HOLDER.  Private correspondence or communications
  40-26  of an elected office holder relating to matters the disclosure of
  40-27  which would constitute an invasion of privacy are excepted from the
   41-1  requirements of Section 552.021.  (V.A.C.S. Art. 6252-17a, Sec.
   41-2  3(a) (part).)
   41-3        Sec. 552.110.  EXCEPTION:  TRADE SECRETS, COMMERCIAL
   41-4  INFORMATION, OR FINANCIAL INFORMATION.  A trade secret or
   41-5  commercial or financial information obtained from a person and
   41-6  privileged or confidential by statute or judicial decision is
   41-7  excepted from the requirements of Section 552.021.  (V.A.C.S. Art.
   41-8  6252-17a, Sec. 3(a) (part).)
   41-9        Sec. 552.111.  EXCEPTION:  AGENCY MEMORANDA.  An inter-agency
  41-10  or intra-agency memorandum or letter that would not be available by
  41-11  law to a party in litigation with the agency is excepted from the
  41-12  requirements of Section 552.021.  (V.A.C.S. Art. 6252-17a, Sec.
  41-13  3(a) (part).)
  41-14        Sec. 552.112.  EXCEPTION:  CERTAIN INFORMATION RELATING TO
  41-15  REGULATION OF FINANCIAL INSTITUTIONS OR SECURITIES.  (a)
  41-16  Information is excepted from the requirements of Section 552.021 if
  41-17  it is information contained in or relating to examination,
  41-18  operating, or condition reports prepared by or for an agency
  41-19  responsible for the regulation or supervision of financial
  41-20  institutions or securities, or both.
  41-21        (b)  In this section, "securities" has the meaning assigned
  41-22  by The Securities Act (Article 581-1 et seq., Vernon's Texas Civil
  41-23  Statutes).  (V.A.C.S. Art. 6252-17a, Sec. 3(a) (part).)
  41-24        Sec. 552.113.  EXCEPTION:  GEOLOGICAL OR GEOPHYSICAL
  41-25  INFORMATION.  Information is excepted from the requirements of
  41-26  Section 552.021 if it is:
  41-27              (1)  an electric log confidential under Subchapter M,
   42-1  Chapter 91, Natural Resources Code; or
   42-2              (2)  geological or geophysical information or data,
   42-3  including maps concerning wells, except information filed in
   42-4  connection with an application or proceeding before an agency.
   42-5  (V.A.C.S. Art. 6252-17a, Sec. 3(a) (part).)
   42-6        Sec. 552.114.  EXCEPTION:  STUDENT RECORDS.  (a)  Information
   42-7  is excepted from the requirements of Section 552.021 if it is
   42-8  information in a student record at an educational institution
   42-9  funded wholly or partly by state revenue.
  42-10        (b)  A record under Subsection (a) shall be made available on
  42-11  the request of:
  42-12              (1)  educational institution personnel;
  42-13              (2)  the student involved or the student's parent,
  42-14  legal guardian, or spouse; or
  42-15              (3)  a person conducting a child abuse investigation
  42-16  required by Section 34.05, Family Code.  (V.A.C.S. Art. 6252-17a,
  42-17  Sec. 3(a) (part).)
  42-18        Sec. 552.115.  EXCEPTION:  BIRTH AND DEATH RECORDS.  A birth
  42-19  or death record maintained by the bureau of vital statistics of the
  42-20  Texas Department of Health is excepted from the requirements of
  42-21  Section 552.021, except that:
  42-22              (1)  a birth record is public information and available
  42-23  to the public on and after the 50th anniversary of the date on
  42-24  which the record is filed with the bureau of vital statistics or
  42-25  local registration official; and
  42-26              (2)  a death record is public information and available
  42-27  to the public on and after the 25th anniversary of the date on
   43-1  which the record is filed with the bureau of vital statistics or
   43-2  local registration official.  (V.A.C.S. Art. 6252-17a, Sec. 3(a)
   43-3  (part).)
   43-4        Sec. 552.116.  EXCEPTION:  STATE AUDITOR WORKING PAPERS.  An
   43-5  audit working paper of the state auditor is excepted from the
   43-6  requirements of Section 552.021.  (V.A.C.S. Art. 6252-17a, Sec.
   43-7  3(a) (part).)
   43-8        Sec. 552.117.  EXCEPTION:  CERTAIN ADDRESSES, TELEPHONE
   43-9  NUMBERS, AND SOCIAL SECURITY NUMBERS.  Information is excepted from
  43-10  the requirements of Section 552.021 if it is information relating
  43-11  to:
  43-12              (1)  the home address or home telephone number of:
  43-13                    (A)  a current or former official or employee of
  43-14  a governmental body, except as otherwise provided by Section
  43-15  552.024; or
  43-16                    (B)  a peace officer as defined by Article 2.12,
  43-17  Code of Criminal Procedure, or a security officer commissioned
  43-18  under Section 51.212, Education Code; or
  43-19              (2)  the home address, home telephone number, or social
  43-20  security number of an employee of the Texas Department of Criminal
  43-21  Justice, or the home or employment address or telephone number,
  43-22  name, or social security number of a family member of the employee.
  43-23  (V.A.C.S. Art. 6252-17a, Sec. 3(a) (part).)
  43-24        Sec. 552.118.  EXCEPTION:  TRIPLICATE PRESCRIPTION FORM.
  43-25  Information is excepted from the requirements of Section 552.021 if
  43-26  it is information on or derived from a triplicate prescription form
  43-27  filed with the Department of Public Safety under Section 481.075,
   44-1  Health and Safety Code.  (V.A.C.S. Art. 6252-17a, Sec. 3(a)
   44-2  (part).)
   44-3        Sec. 552.119.  EXCEPTION:  PHOTOGRAPH OF PEACE OFFICER OR
   44-4  CERTAIN SECURITY GUARDS.  (a)  A photograph that depicts a peace
   44-5  officer as defined by Article 2.12, Code of Criminal Procedure, or
   44-6  a security officer commissioned under Section 51.212, Education
   44-7  Code, the release of which would endanger the life or physical
   44-8  safety of the officer, is excepted from the requirements of Section
   44-9  552.021 unless:
  44-10              (1)  the officer is under indictment or charged with an
  44-11  offense by information;
  44-12              (2)  the officer is a party in a fire or police civil
  44-13  service hearing or a case in arbitration; or
  44-14              (3)  the photograph is introduced as evidence in a
  44-15  judicial proceeding.
  44-16        (b)  A photograph exempt from disclosure under Subsection (a)
  44-17  may be made public only if the peace officer or security officer
  44-18  gives written consent to the disclosure.  (V.A.C.S. Art. 6252-17a,
  44-19  Secs. 3(a) (part); 3(c) (part).)
  44-20        Sec. 552.120.  EXCEPTION:  CERTAIN RARE BOOKS AND ORIGINAL
  44-21  MANUSCRIPTS.  A rare book or original manuscript that was not
  44-22  created or maintained in the conduct of official business of a
  44-23  governmental body and that is held by a private or public archival
  44-24  and manuscript repository for the purpose of historical research is
  44-25  excepted from the requirements of Section 552.021.  (V.A.C.S. Art.
  44-26  6252-17a, Sec. 3(a) (part).)
  44-27        Sec. 552.121.  EXCEPTION:  CERTAIN DOCUMENTS HELD FOR
   45-1  HISTORICAL RESEARCH.  An oral history interview, personal paper,
   45-2  unpublished letter, or organizational record of a nongovernmental
   45-3  entity that was not created or maintained in the conduct of
   45-4  official business of a governmental body and that is held by a
   45-5  private or public archival and manuscript repository for the
   45-6  purpose of historical research is excepted from the requirements of
   45-7  Section 552.021 to the extent that the archival and manuscript
   45-8  repository and the donor of the interview, paper, letter, or record
   45-9  agree to limit disclosure of the item.  (V.A.C.S. Art. 6252-17a,
  45-10  Sec. 3(a) (part).)
  45-11        Sec. 552.122.  EXCEPTION:  CURRICULUM OBJECTIVES AND TEST
  45-12  ITEMS.  (a)  A curriculum objective or test item developed by an
  45-13  educational institution that is funded wholly or in part by state
  45-14  revenue is excepted from the requirements of Section 552.021.
  45-15        (b)  A test item developed by a licensing agency or
  45-16  governmental body is excepted from the requirements of Section
  45-17  552.021.  (V.A.C.S. Art. 6252-17a, Sec. 3(a) (part).)
  45-18        Sec. 552.123.  EXCEPTION:  NAME OF APPLICANT FOR CHIEF
  45-19  EXECUTIVE OFFICER OF INSTITUTION OF HIGHER EDUCATION.  The name of
  45-20  an applicant for the position of chief executive officer of an
  45-21  institution of higher education is excepted from the requirements
  45-22  of Section 552.021, except that the governing body of the
  45-23  institution must give public notice of the name or names of the
  45-24  finalists being considered for the position at least 21 days before
  45-25  the date of the meeting at which final action or vote is to be
  45-26  taken on the employment of the person.  (V.A.C.S. Art. 6252-17a,
  45-27  Sec. 3(a)(23).)
   46-1           (Sections 552.124-552.200 reserved for expansion)
   46-2               SUBCHAPTER D.  OFFICER FOR PUBLIC RECORDS
   46-3        Sec. 552.201.  IDENTITY OF OFFICER FOR PUBLIC RECORDS.  (a)
   46-4  The chief administrative officer of a governmental body is the
   46-5  officer for public records, except as provided by Subsection (b).
   46-6        (b)  Each elected county officer is the officer for public
   46-7  records and the custodian, as defined by Section 201.003, Local
   46-8  Government Code, of the records created or received by that county
   46-9  officer's office.  (V.A.C.S. Art. 6252-17a, Sec. 5(a) (part).)
  46-10        Sec. 552.202.  DEPARTMENT HEADS.  Each department head is an
  46-11  agent of the officer for public records for the purposes of
  46-12  complying with this chapter.  (V.A.C.S. Art. 6252-17a, Sec. 5(a)
  46-13  (part).)
  46-14        Sec. 552.203.  GENERAL DUTIES OF OFFICER FOR PUBLIC RECORDS.
  46-15  Each officer for public records, subject to penalties provided in
  46-16  this chapter, shall:
  46-17              (1)  make public records available for public
  46-18  inspection and copying;
  46-19              (2)  carefully protect public records from
  46-20  deterioration, alteration, mutilation, loss, or unlawful removal;
  46-21  and
  46-22              (3)  repair, renovate, or rebind public records as
  46-23  necessary to maintain them properly.  (V.A.C.S. Art. 6252-17a, Sec.
  46-24  5(a) (part).)
  46-25           (Sections 552.204-552.220 reserved for expansion)
  46-26              SUBCHAPTER E.  PROCEDURES RELATED TO ACCESS
  46-27        Sec. 552.221.  APPLICATION FOR PUBLIC INFORMATION.  (a)  An
   47-1  officer for public records of a governmental body shall promptly
   47-2  produce public information for inspection, duplication, or both, in
   47-3  the offices of the governmental body on application by any person
   47-4  to the officer.
   47-5        (b)  If the requested information is unavailable at the time
   47-6  of the request to examine because it is in active use or in
   47-7  storage, the officer for public records shall certify this fact in
   47-8  writing to the applicant and set a date and hour within a
   47-9  reasonable time when the record will be available for inspection or
  47-10  duplication.  (V.A.C.S. Art. 6252-17a, Sec. 4 (part).)
  47-11        Sec. 552.222.  PERMISSIBLE INQUIRY OF PERSON APPLYING FOR
  47-12  INSPECTION OF RECORDS.  The officer for public records and the
  47-13  officer's agent may not make an inquiry of a person who applies for
  47-14  inspection or copying of a public record except to establish proper
  47-15  identification and the public records requested.  (V.A.C.S. Art.
  47-16  6252-17a, Sec. 5(b) (part).)
  47-17        Sec. 552.223.  UNIFORM TREATMENT OF REQUESTS FOR INFORMATION.
  47-18  The officer for public records or the officer's agent shall treat
  47-19  all requests for information uniformly without regard to the
  47-20  position or occupation of the person making the request, the person
  47-21  on whose behalf the request is made, or the status of the
  47-22  individual as a member of the media.  (V.A.C.S. Art. 6252-17a, Sec.
  47-23  5(c).)
  47-24        Sec. 552.224.  COMFORT AND FACILITY.  The officer for public
  47-25  records or the officer's agent shall give to a person requesting
  47-26  public records all reasonable comfort and facility for the full
  47-27  exercise of the right granted by this chapter.  (V.A.C.S. Art.
   48-1  6252-17a, Sec. 5(b) (part).)
   48-2        Sec. 552.225.  TIME FOR EXAMINATION.  (a)  A person
   48-3  requesting public information must complete the examination of the
   48-4  information not later than the 10th day after the date the
   48-5  custodian of the information makes it available to the person.
   48-6        (b)  The officer for public records shall extend the initial
   48-7  examination period by an additional 10 days if, within the initial
   48-8  period, the person requesting the information files with the
   48-9  officer for public records a written request for additional time.
  48-10  The officer for public records shall extend an additional
  48-11  examination period by another 10 days if, within the additional
  48-12  period, the person requesting the information files with the
  48-13  officer for public records a written request for more additional
  48-14  time.
  48-15        (c)  The time during which a person may examine information
  48-16  may be interrupted by the officer for public records if the
  48-17  information is needed for use by the governmental body.  The period
  48-18  of interruption is not considered to be a part of the time during
  48-19  which the person may examine the information.  (V.A.C.S. Art.
  48-20  6252-17a, Sec. 4A.)
  48-21        Sec. 552.226.  REMOVAL OF ORIGINAL RECORD.  This chapter does
  48-22  not authorize a person to remove an original copy of a public
  48-23  record from the office of a governmental body.  (V.A.C.S. Art.
  48-24  6252-17a, Sec. 4 (part).)
  48-25        Sec. 552.227.  RESEARCH OF STATE LIBRARY HOLDINGS NOT
  48-26  REQUIRED.  An officer for public records or the officer's agent is
  48-27  not required to perform general research within the reference and
   49-1  research archives and holdings of state libraries.  (V.A.C.S. Art.
   49-2  6252-17a, Sec. 3(d).)
   49-3        Sec. 552.228.  PROVIDING SUITABLE COPY OF RECORD WITHIN
   49-4  REASONABLE TIME.  It shall be a policy of a governmental body to
   49-5  provide a suitable copy of a public record within a reasonable time
   49-6  after the date on which the copy is requested.  (V.A.C.S. Art.
   49-7  6252-17a, Sec. 9(c) (part).)
   49-8        Sec. 552.229.  CONSENT TO RELEASE INFORMATION UNDER SPECIAL
   49-9  RIGHT OF ACCESS.  (a)  Consent for the release of information
  49-10  excepted from disclosure to the general public but available to a
  49-11  specific person under Sections 552.023 and 552.307 must be in
  49-12  writing and signed by the specific person or the person's
  49-13  authorized representative.
  49-14        (b)  An individual under 18 years of age may consent to the
  49-15  release of information under this section only with the additional
  49-16  written authorization of the individual's parent or guardian.
  49-17        (c)  An individual who has been adjudicated incompetent to
  49-18  manage the individual's personal affairs or for whom an attorney ad
  49-19  litem has been appointed may consent to the release of information
  49-20  under this section only by the written authorization of the
  49-21  designated legal guardian or attorney ad litem.  (V.A.C.S. Art.
  49-22  6252-17a, Sec. 3B(b).)
  49-23        Sec. 552.230.  RULES OF PROCEDURE FOR INSPECTION OF PUBLIC
  49-24  RECORDS.  A governmental body may adopt reasonable rules of
  49-25  procedure under which public records may be inspected efficiently,
  49-26  safely, and without delay.  (V.A.C.S. Art. 6252-17a, Sec. 13.)
  49-27           (Sections 552.231-552.260 reserved for expansion)
   50-1                     SUBCHAPTER F.  COST OF COPIES
   50-2        Sec. 552.261.  DETERMINING COST OF COPIES.  (a)  A
   50-3  governmental body may not charge an excessive amount for
   50-4  noncertified, photographic reproductions of public records
   50-5  comprised of pages that are legal size or smaller.
   50-6        (b)  The cost of obtaining a standard or legal size
   50-7  photographic reproduction shall be an amount that reasonably
   50-8  includes all costs related to reproducing the record, including
   50-9  costs of materials, labor, and overhead, unless the request is for
  50-10  50 or fewer pages of readily available information.
  50-11        (c)  The General Services Commission shall periodically
  50-12  determine guidelines for the actual cost of standard size
  50-13  reproductions and shall periodically publish these cost figures for
  50-14  use by governmental bodies in determining charges under this
  50-15  subchapter.  (V.A.C.S. Art. 6252-17a, Sec. 9(a).)
  50-16        Sec. 552.262.  COST FOR NONSTANDARD RECORDS.  The charge for
  50-17  access to public records that are comprised in a form other than
  50-18  standard or smaller sized pages or that are in computer record
  50-19  banks, microfilm records, or other similar record keeping systems
  50-20  shall be set:
  50-21              (1)  making every effort to match the charge with the
  50-22  actual cost of providing the record;
  50-23              (2)  after consultation between a governmental body's
  50-24  officer for public records and the General Services Commission; and
  50-25              (3)  in an amount that reasonably includes all costs
  50-26  related to providing the record, including costs of materials,
  50-27  labor, and overhead.  (V.A.C.S. Art. 6252-17a, Sec. 9(b).)
   51-1        Sec. 552.263.  BOND FOR PAYMENT OF COSTS OR CASH PREPAYMENT
   51-2  FOR PREPARATION OF PUBLIC RECORDS.  An officer for public records
   51-3  or the officer's agent may require a bond for payment of costs or
   51-4  cash prepayment of anticipated costs for the preparation of a
   51-5  public record if the preparation of the record would be unduly
   51-6  costly and its reproduction would cause undue hardship to the
   51-7  department or agency if the costs were not paid.  (V.A.C.S.
   51-8  Art. 6252-17a, Sec. 11.)
   51-9        Sec. 552.264.  COPY OF PUBLIC RECORD REQUESTED BY MEMBER OF
  51-10  LEGISLATURE.  One copy of a public record that is requested from a
  51-11  state agency by a member of the legislature in the performance of
  51-12  the member's duties shall be provided without charge.  (V.A.C.S.
  51-13  Art. 6252-17a, Sec. 9(e).)
  51-14        Sec. 552.265.  CERTIFIED RECORD PROVIDED BY DISTRICT OR
  51-15  COUNTY CLERK.  The charge for a copy made in a district or county
  51-16  clerk's office may be more than the actual cost of copies, as
  51-17  provided by Sections 552.261 and 552.262, only if a certified
  51-18  record, the cost of which is set by law, is requested.  (V.A.C.S.
  51-19  Art. 6252-17a, Sec. 9(d).)
  51-20        Sec. 552.266.  COPY OF PUBLIC RECORD PROVIDED BY MUNICIPAL
  51-21  COURT CLERK.  The charge for a copy made by a municipal court clerk
  51-22  shall be the charge provided by municipal ordinance.  (V.A.C.S.
  51-23  Art. 6252-17a, Sec. 9(f).)
  51-24        Sec. 552.267.  WAIVER OR REDUCTION OF FEE FOR COPY OF PUBLIC
  51-25  RECORD.  A governmental body shall furnish public records without
  51-26  charge or at a reduced charge if the governmental body determines
  51-27  that waiver or reduction of the fee is in the public interest
   52-1  because furnishing the information primarily benefits the general
   52-2  public.  (V.A.C.S. Art. 6252-17a, Sec. 9(g).)
   52-3        Sec. 552.268.  EFFICIENT USE OF PUBLIC RECORDS.  A
   52-4  governmental body shall make reasonably efficient use of each page
   52-5  of a public record to avoid excessive reproduction costs.
   52-6  (V.A.C.S. Art. 6252-17a, Sec. 9(c) (part).)
   52-7        Sec. 552.269.  RECOVERY OF OVERPAYMENT FOR PUBLIC RECORD.  A
   52-8  person who overpays for a copy of a public record because a
   52-9  governmental body refuses or fails to provide the copy at the
  52-10  actual cost of reproducing the record as provided by Sections
  52-11  552.261 and 552.262 is entitled to recover three times the amount
  52-12  of the overcharge if the governmental body did not act in good
  52-13  faith in computing the costs.  (V.A.C.S. Art. 6252-17a, Sec. 9(h).)
  52-14           (Sections 552.270-552.300 reserved for expansion)
  52-15               SUBCHAPTER G.  ATTORNEY GENERAL DECISIONS
  52-16        Sec. 552.301.  REQUEST FOR ATTORNEY GENERAL DECISION.  (a)  A
  52-17  governmental body that receives a written request for information
  52-18  that it considers to be within one of the exceptions under
  52-19  Subchapter C must ask for a decision from the attorney general
  52-20  about whether the information is within that exception if there has
  52-21  not been a previous determination about whether the information
  52-22  falls within one of the exceptions.  The governmental body must ask
  52-23  for the attorney general's decision within a reasonable time but
  52-24  not later than the 10th calendar day after the date of receiving
  52-25  the written request.
  52-26        (b)  A governmental body that wishes to withhold information
  52-27  must submit written comments stating the reasons why the
   53-1  information should be withheld.  (V.A.C.S. Art. 6252-17a, Secs.
   53-2  7(a) (part), (b) (part).)
   53-3        Sec. 552.302.  FAILURE TO MAKE TIMELY REQUEST FOR ATTORNEY
   53-4  GENERAL DECISION; PRESUMPTION THAT INFORMATION IS PUBLIC.  If a
   53-5  governmental body does not request an attorney general decision as
   53-6  provided by Section 552.301(a), the information requested in
   53-7  writing is presumed to be public information.  (V.A.C.S. Art.
   53-8  6252-17a, Sec. 7(a) (part).)
   53-9        Sec. 552.303.  DELIVERY OF REQUESTED INFORMATION TO ATTORNEY
  53-10  GENERAL; DISCLOSURE OF REQUESTED INFORMATION.  A governmental body
  53-11  that requests an attorney general decision under this subchapter
  53-12  shall supply to the attorney general the specific information
  53-13  requested and shall not disclose the information to the public or
  53-14  to the party requesting the information until the attorney general
  53-15  makes a final determination or, if suit is filed under this
  53-16  chapter, until a final decision has been made by the court with
  53-17  jurisdiction over the suit.  (V.A.C.S. Art. 6252-17a, Sec. 7(b)
  53-18  (part).)
  53-19        Sec. 552.304.  SUBMISSION OF PUBLIC COMMENTS.  A member of
  53-20  the public may submit written comments stating reasons why the
  53-21  information at issue in a request for an attorney general decision
  53-22  should or should not be released.  (V.A.C.S. Art. 6252-17a, Sec.
  53-23  7(b) (part).)
  53-24        Sec. 552.305.  INFORMATION INVOLVING PRIVACY OR PROPERTY
  53-25  INTERESTS OF THIRD PARTY.  (a)  In a case in which information is
  53-26  requested under this chapter and a third party's privacy or
  53-27  property interests may be involved, including a case under Section
   54-1  552.101, 552.104, 552.110, or 552.114, a governmental body may
   54-2  decline to release the information for the purpose of requesting an
   54-3  attorney general decision.
   54-4        (b)  A person whose interests may be involved under
   54-5  Subsection (a), or any other person, may submit in writing to the
   54-6  attorney general the person's reasons why the information should be
   54-7  withheld or released.
   54-8        (c)  The governmental body may, but is not required to,
   54-9  submit its reasons why the information should be withheld or
  54-10  released.  (V.A.C.S. Art. 6252-17a, Sec. 7(c).)
  54-11        Sec. 552.306.  RENDITION OF ATTORNEY GENERAL DECISION;
  54-12  ISSUANCE OF WRITTEN OPINION.  (a)  The attorney general shall
  54-13  promptly render a decision requested under this subchapter,
  54-14  consistent with the standards of due process, determining whether
  54-15  the requested information is a public record or is within one of
  54-16  the exceptions of Subchapter C.
  54-17        (b)  The attorney general shall issue a written opinion of
  54-18  the determination.  (V.A.C.S. Art. 6252-17a, Sec. 7(b) (part).)
  54-19        Sec. 552.307.  SPECIAL RIGHT OF ACCESS; ATTORNEY GENERAL
  54-20  DECISIONS.  (a)  If a governmental body determines that information
  54-21  subject to a special right of access under Section 552.023 is
  54-22  exempt from disclosure under an exception of Subchapter C, other
  54-23  than an exception intended to protect the privacy interest of the
  54-24  requestor or the person whom the requestor is authorized to
  54-25  represent, the governmental body shall, before disclosing the
  54-26  information, submit a written request for a decision to the
  54-27  attorney general under the procedures of this subchapter.
   55-1        (b)  If a decision is not requested under Subsection (a), the
   55-2  governmental body shall release the information to the person with
   55-3  a special right of access under Section 552.023 not later than the
   55-4  10th day after the date of receiving the request for information.
   55-5  (V.A.C.S. Art. 6252-17a, Sec. 3B(e).)
   55-6           (Sections 552.308-552.320 reserved for expansion)
   55-7                   SUBCHAPTER H.  CIVIL ENFORCEMENT
   55-8        Sec. 552.321.  APPLICATION FOR WRIT OF MANDAMUS.  A person
   55-9  requesting information or the attorney general may apply for a writ
  55-10  of mandamus compelling a governmental body to make information
  55-11  available for public inspection if the governmental body refuses to
  55-12  request an attorney general's decision as provided by Subchapter G
  55-13  or refuses to supply public information or information that the
  55-14  attorney general has determined is a public record.  (V.A.C.S. Art.
  55-15  6252-17a, Sec. 8(a).)
  55-16        Sec. 552.322.  DISCOVERY OF INFORMATION UNDER PROTECTIVE
  55-17  ORDER PENDING FINAL DETERMINATION.  In a suit filed under this
  55-18  chapter, the court may order that the information at issue may be
  55-19  discovered only under a protective order until a final
  55-20  determination is made.  (V.A.C.S. Art. 6252-17a, Sec. 7(b) (part).)
  55-21        Sec. 552.323.  ASSESSMENT OF COSTS OF LITIGATION AND
  55-22  REASONABLE ATTORNEY'S FEES.  (a)  In an action brought under
  55-23  Section 552.321 or Section 552.353(b)(3), the court may assess
  55-24  costs of litigation and reasonable attorney's fees incurred by a
  55-25  plaintiff or defendant who substantially prevails.
  55-26        (b)  In exercising its discretion under this section, the
  55-27  court shall consider whether the conduct of the governmental body
   56-1  had a reasonable basis in law and whether the litigation was
   56-2  brought in good faith.  (V.A.C.S. Art. 6252-17a, Sec. 8(b).)
   56-3           (Sections 552.324-552.350 reserved for expansion)
   56-4                  SUBCHAPTER I.  CRIMINAL VIOLATIONS
   56-5        Sec. 552.351.  DESTRUCTION, REMOVAL, OR ALTERATION OF PUBLIC
   56-6  RECORD.  (a)  A person commits an offense if the person wilfully
   56-7  destroys, mutilates, removes without permission as provided by this
   56-8  chapter, or alters a public record.
   56-9        (b)  An offense under this section is a misdemeanor
  56-10  punishable by:
  56-11              (1)  a fine of not less than $25 or more than $4,000;
  56-12              (2)  confinement in the county jail for not less than
  56-13  three days or more than three months; or
  56-14              (3)  both the fine and confinement.  (V.A.C.S. Art.
  56-15  6252-17a, Sec. 12.)
  56-16        Sec. 552.352.  DISTRIBUTION OF CONFIDENTIAL INFORMATION.  (a)
  56-17  A person commits an offense if the person distributes information
  56-18  considered confidential under the terms of this chapter.
  56-19        (b)  An offense under this section is a misdemeanor
  56-20  punishable by:
  56-21              (1)  a fine of not more than $1,000;
  56-22              (2)  confinement in the county jail for not more than
  56-23  six months; or
  56-24              (3)  both the fine and confinement.
  56-25        (c)  A violation under this section constitutes official
  56-26  misconduct.  (V.A.C.S. Art. 6252-17a, Secs. 10(a), (f) (part).)
  56-27        Sec. 552.353.  FAILURE OR REFUSAL OF OFFICER FOR PUBLIC
   57-1  RECORDS TO PROVIDE ACCESS TO OR COPYING OF PUBLIC RECORD.  (a)  An
   57-2  officer for public records, or the officer's agent, commits an
   57-3  offense if, with criminal negligence, the officer or the officer's
   57-4  agent fails or refuses to give access to, or to permit or provide
   57-5  copying of, public records to a person on request as provided by
   57-6  this chapter.
   57-7        (b)  It is an affirmative defense to prosecution under
   57-8  Subsection (a) that the officer for public records reasonably
   57-9  believed that public access to the requested records was not
  57-10  required and that the officer:
  57-11              (1)  acted in reasonable reliance on a court order or a
  57-12  written interpretation of this chapter contained in an opinion of a
  57-13  court of record or of the attorney general issued under Subchapter
  57-14  G;
  57-15              (2)  requested a decision from the attorney general in
  57-16  accordance with Subchapter G, and the decision is pending; or
  57-17              (3)  not later than the 10th calendar day after the
  57-18  date of receipt of a decision by the attorney general that the
  57-19  information is public, filed a petition for a declaratory judgment,
  57-20  a writ of mandamus, or both, against the attorney general in a
  57-21  Travis County district court seeking relief from compliance with
  57-22  the decision of the attorney general, and a petition is pending.
  57-23        (c)  It is an affirmative defense to prosecution under
  57-24  Subsection (a)  that a person or entity has, not later than the
  57-25  10th calendar day after the date of receipt by a governmental body
  57-26  of a decision by the attorney general that the information is
  57-27  public, filed a cause of action seeking relief from compliance with
   58-1  the decision of the attorney general, and the cause is pending.
   58-2        (d)  It is an affirmative defense to prosecution under
   58-3  Subsection (a) that the defendant is the agent of an officer for
   58-4  public records and that the agent reasonably relied on the written
   58-5  instruction of the officer for public records not to disclose the
   58-6  public records requested.
   58-7        (e)  An offense under this section is a misdemeanor
   58-8  punishable by:
   58-9              (1)  a fine of not more than $1,000;
  58-10              (2)  confinement in the county jail for not more than
  58-11  six months; or
  58-12              (3)  both the fine and confinement.
  58-13        (f)  A violation under this section constitutes official
  58-14  misconduct.  (V.A.C.S. Art. 6252-17a, Secs. 10(b), (c), (d), (e),
  58-15  (f) (part).)
  58-16                    CHAPTER 553.  PUBLIC DISCLOSURE
  58-17  SUBCHAPTER A.  DISCLOSURE BY PUBLIC SERVANT OF INTEREST IN PROPERTY
  58-18                   TO BE ACQUIRED WITH PUBLIC FUNDS
  58-19  Sec. 553.001.  DEFINITIONS
  58-20  Sec. 553.002.  DISCLOSURE OF INTEREST IN PROPERTY
  58-21  Sec. 553.003.  CRIMINAL PENALTY; PRESUMPTION
  58-22           (Sections 553.004-553.020 reserved for expansion)
  58-23  SUBCHAPTER B.  FAILURE BY PUBLIC OFFICER TO PUBLISH LEGAL NOTICE OR
  58-24                          FINANCIAL STATEMENT
  58-25  Sec. 553.021.  DEFINITION
  58-26  Sec. 553.022.  FAILURE TO PUBLISH LEGAL NOTICE OR FINANCIAL
  58-27                   STATEMENT; CIVIL PENALTY
   59-1  Sec. 553.023.  ENFORCEMENT
   59-2                    CHAPTER 553.  PUBLIC DISCLOSURE
   59-3  SUBCHAPTER A.  DISCLOSURE BY PUBLIC SERVANT OF INTEREST IN PROPERTY
   59-4                   TO BE ACQUIRED WITH PUBLIC FUNDS
   59-5        Sec. 553.001.  DEFINITIONS.  In this subchapter:
   59-6              (1)  "Public funds" includes only funds collected by or
   59-7  through a government.
   59-8              (2)  "Public servant" means a person who is elected,
   59-9  appointed, employed, or designated, even if not yet qualified for
  59-10  or having assumed the duties of office, as:
  59-11                    (A)  a candidate for nomination or election to
  59-12  public office; or
  59-13                    (B)  an officer of government.  (V.A.C.S. Art.
  59-14  6252-9e, Secs. (a)(1), (5).)
  59-15        Sec. 553.002.  DISCLOSURE OF INTEREST IN PROPERTY.  (a)  A
  59-16  public servant who has a legal or equitable interest in property
  59-17  that is to be acquired with public funds shall file an affidavit
  59-18  within 10 days before the date on which the property is to be
  59-19  acquired by purchase or condemnation.
  59-20        (b)  The affidavit must:
  59-21              (1)  state the name of the public servant;
  59-22              (2)  state the public servant's office, public title,
  59-23  or job designation;
  59-24              (3)  fully describe the property;
  59-25              (4)  fully describe the nature, type, and amount of
  59-26  interest in the property, including the percentage of ownership
  59-27  interest;
   60-1              (5)  state the date when the person acquired an
   60-2  interest in the property;
   60-3              (6)  include a verification as follows:  "I swear that
   60-4  the information in this affidavit is personally known by me to be
   60-5  correct, and contains the information required by Section 553.002,
   60-6  Government Code"; and
   60-7              (7)  contain an acknowledgement of the same type
   60-8  required for recording a deed in the deed records of the county.
   60-9        (c)  The affidavit must be filed with:
  60-10              (1)  the county clerk of the county in which the public
  60-11  servant resides; and
  60-12              (2)  the county clerk of each county in which the
  60-13  property is located.  (V.A.C.S. Art. 6252-9e, Secs. (a)(2), (4);
  60-14  (b) (part); (c) (part).)
  60-15        Sec. 553.003.  CRIMINAL PENALTY; PRESUMPTION.  (a)  A person
  60-16  commits an offense if the person violates Section 553.002 and the
  60-17  person has actual notice of the acquisition or intended acquisition
  60-18  of the legal or equitable interest in the property.
  60-19        (b)  A person who violates Section 553.002 by not filing the
  60-20  affidavit required by that section is presumed to have the intent
  60-21  to commit an offense under this section.
  60-22        (c)  An offense under this section is a Class A misdemeanor.
  60-23  (V.A.C.S. Art. 6252-9e, Secs. (b) (part), (c) (part), (d).)
  60-24           (Sections 553.004-553.020 reserved for expansion)
  60-25   SUBCHAPTER B.  FAILURE BY PUBLIC OFFICER TO PUBLISH LEGAL NOTICE
  60-26                        OR FINANCIAL STATEMENT
  60-27        Sec. 553.021.  DEFINITION.  In this subchapter, "public
   61-1  officer" means an officer of the state or of a county,
   61-2  municipality, or school district of the state.  (New.)
   61-3        Sec. 553.022.  FAILURE TO PUBLISH LEGAL NOTICE OR FINANCIAL
   61-4  STATEMENT; CIVIL PENALTY.  (a)  A public officer who is required by
   61-5  law to publish a legal notice or financial statement commits
   61-6  nonfeasance of office if the officer fails to make the publication.
   61-7        (b)  A public officer who commits nonfeasance of office:
   61-8              (1)  is subject to forfeiture of salary for the month
   61-9  in which the notice or statement is not published; and
  61-10              (2)  may be removed from office if the officer wilfully
  61-11  continues to commit nonfeasance of office under Subsection (a).
  61-12  (V.A.C.S. Art. 6252-2, Sec. 1.)
  61-13        Sec. 553.023.  ENFORCEMENT.  (a)  The county or district
  61-14  attorney of the county in which a public officer who commits
  61-15  nonfeasance of office under Section 553.022 resides may file an
  61-16  action to enjoin or recover payment of salary or to remove the
  61-17  person from office.
  61-18        (b)  An action under this section must be filed in the
  61-19  appropriate district court.  (V.A.C.S. Art. 6252-2, Sec. 2.)
  61-20       CHAPTER 554.  PROTECTION FOR REPORTING VIOLATIONS OF LAW
  61-21  Sec. 554.001.  DEFINITIONS
  61-22  Sec. 554.002.  RETALIATION PROHIBITED FOR REPORTING VIOLATION
  61-23                   OF LAW
  61-24  Sec. 554.003.  RELIEF AVAILABLE TO PUBLIC EMPLOYEE
  61-25  Sec. 554.004.  BURDEN OF PROOF; PRESUMPTION
  61-26  Sec. 554.005.  LIMITATION PERIOD
  61-27  Sec. 554.006.  EXHAUSTION OF GRIEVANCE OR APPEAL PROCEDURES
   62-1  Sec. 554.007.  WHERE SUIT BROUGHT
   62-2  Sec. 554.008.  CIVIL PENALTY
   62-3  Sec. 554.009.  NOTICE TO EMPLOYEES
   62-4       CHAPTER 554.  PROTECTION FOR REPORTING VIOLATIONS OF LAW
   62-5        Sec. 554.001.  DEFINITIONS.  In this chapter:
   62-6              (1)  "Law" means:
   62-7                    (A)  a state or federal statute;
   62-8                    (B)  an ordinance of a local governmental body;
   62-9  or
  62-10                    (C)  a rule adopted under a statute or ordinance.
  62-11              (2)  "Local government" means:
  62-12                    (A)  a county;
  62-13                    (B)  a municipality;
  62-14                    (C)  a public school district; or
  62-15                    (D)  a special-purpose district or authority.
  62-16              (3)  "Public employee" means a person other than an
  62-17  independent contractor who, for compensation, performs services for
  62-18  a state or local governmental body under a written or oral
  62-19  contract.
  62-20              (4)  "State agency" means:
  62-21                    (A)  a board, commission, department, office, or
  62-22  other agency in the executive branch of state government, created
  62-23  under the constitution or a statute of the state, including an
  62-24  institution of higher education, as defined by Section 61.003,
  62-25  Education Code;
  62-26                    (B)  the legislature or a legislative agency; or
  62-27                    (C)  the Texas Supreme Court, the Texas Court of
   63-1  Criminal Appeals, a court of appeals, a state judicial agency, or
   63-2  the State Bar of Texas.  (V.A.C.S. Art. 6252-16a, Sec. 1.)
   63-3        Sec. 554.002.  RETALIATION PROHIBITED FOR REPORTING VIOLATION
   63-4  OF LAW.  A state agency or local government may not suspend or
   63-5  terminate the employment of or discriminate against a public
   63-6  employee who in good faith reports a violation of law to an
   63-7  appropriate law enforcement authority.  (V.A.C.S. Art. 6252-16a,
   63-8  Sec. 2.)
   63-9        Sec. 554.003.  RELIEF AVAILABLE TO PUBLIC EMPLOYEE.  (a)  A
  63-10  public employee whose employment is suspended or terminated or who
  63-11  is discriminated against in violation of Section 554.002 is
  63-12  entitled to sue for:
  63-13              (1)  injunctive relief;
  63-14              (2)  actual damages;
  63-15              (3)  exemplary damages;
  63-16              (4)  court costs; and
  63-17              (5)  reasonable attorney's fees.
  63-18        (b)  In addition to relief under Subsection (a), a public
  63-19  employee whose employment is suspended or terminated in violation
  63-20  of this chapter is entitled to:
  63-21              (1)  reinstatement to the employee's former position;
  63-22              (2)  compensation for wages lost during the period of
  63-23  suspension or termination; and
  63-24              (3)  reinstatement of fringe benefits and seniority
  63-25  rights lost because of the suspension or termination.  (V.A.C.S.
  63-26  Art. 6252-16a, Secs. 3(a) (part), 4.)
  63-27        Sec. 554.004.  BURDEN OF PROOF; PRESUMPTION.  A public
   64-1  employee who sues under this chapter has the burden of proof,
   64-2  except that if the suspension or termination of a public employee
   64-3  occurs not later than the 90th day after the date on which the
   64-4  employee reports a violation of law, the suspension or termination
   64-5  is presumed, subject to rebuttal, to be because the employee made
   64-6  the report.  (V.A.C.S. Art. 6252-16a, Sec. 3(b).)
   64-7        Sec. 554.005.  LIMITATION PERIOD.  Except as provided by
   64-8  Section 554.006, a public employee who seeks relief under this
   64-9  chapter must sue not later than the 90th day after the date on
  64-10  which the alleged violation of this chapter:
  64-11              (1)  occurred; or
  64-12              (2)  was discovered by the employee through reasonable
  64-13  diligence.  (V.A.C.S. Art. 6252-16a, Sec. 3(a) (part).)
  64-14        Sec. 554.006.  EXHAUSTION OF GRIEVANCE OR APPEAL PROCEDURES.
  64-15  (a)  An employee of a local government must exhaust that
  64-16  government's grievance or appeal procedures relating to suspension
  64-17  or termination of employment or unlawful discrimination before
  64-18  suing under this chapter.
  64-19        (b)  The employee must invoke the grievance or appeal
  64-20  procedures not later than the 90th day after the date on which the
  64-21  alleged violation of this chapter:
  64-22              (1)  occurred; or
  64-23              (2)  was discovered by the employee through reasonable
  64-24  diligence.
  64-25        (c)  Time used by the employee in exhausting the grievance or
  64-26  appeal procedures is excluded from the period established by
  64-27  Section 554.005.
   65-1        (d)  This section does not apply if a final decision is not
   65-2  rendered before the 31st day after the date on which the employee
   65-3  initiated the grievance or appeal.  (V.A.C.S. Art. 6252-16a, Secs.
   65-4  3(d), (e).)
   65-5        Sec. 554.007.  WHERE SUIT BROUGHT.  A public employee may sue
   65-6  under this chapter in a district court of the county in which the
   65-7  employee resides or in a district court of Travis County.
   65-8  (V.A.C.S. Art. 6252-16a, Sec. 3(c).)
   65-9        Sec. 554.008.  CIVIL PENALTY.  (a)  A supervisor who suspends
  65-10  or terminates the employment of a public employee in violation of
  65-11  this chapter is liable for a civil penalty not to exceed $1,000.
  65-12        (b)  The attorney general or appropriate prosecuting attorney
  65-13  may sue to collect a civil penalty under this section.
  65-14        (c)  A civil penalty collected under this section shall be
  65-15  deposited in the state treasury.  (V.A.C.S. Art. 6252-16a, Sec. 5.)
  65-16        Sec. 554.009.  NOTICE TO EMPLOYEES.  (a)  A state agency or
  65-17  local government shall inform its employees of their rights under
  65-18  this chapter by posting a sign in a prominent location in the
  65-19  workplace.
  65-20        (b)  The attorney general shall prescribe the design and
  65-21  content of the sign required by this section.  (V.A.C.S.
  65-22  Art. 6252-16a, Sec. 6.)
  65-23    CHAPTER 555.  STATE AGENCY RECORDS RELATING TO LICENSE HOLDERS
  65-24                   SUBCHAPTER A.  GENERAL PROVISIONS
  65-25  Sec. 555.001.  DEFINITIONS
  65-26  Sec. 555.002.  RULES
  65-27  Sec. 555.003.  EXCEPTION
   66-1           (Sections 555.004-555.020 reserved for expansion)
   66-2         SUBCHAPTER B.  PROCEDURES RELATING TO LICENSE RECORDS
   66-3  Sec. 555.021.  MAINTENANCE AND ACCESSIBILITY OF LICENSE
   66-4                   RECORDS
   66-5  Sec. 555.022.  REMOVAL OF RECORDS FROM FILE
   66-6  Sec. 555.023.  AGENCY FILE DIVERSIFICATION PERMITTED
   66-7    CHAPTER 555.  STATE AGENCY RECORDS RELATING TO LICENSE HOLDERS
   66-8                   SUBCHAPTER A.  GENERAL PROVISIONS
   66-9        Sec. 555.001.  DEFINITIONS.  In this chapter, "state agency,"
  66-10  "license," and "contested case" have the meanings assigned by
  66-11  Section 2001.003.  (V.A.C.S. Art. 6252-17b, Sec. 1.)
  66-12        Sec. 555.002.  RULES.  A state agency may adopt fair and
  66-13  reasonable rules, minimum standards, and limitations that are
  66-14  appropriate for implementing this chapter.  (V.A.C.S. Art.
  66-15  6252-17b, Sec. 5.)
  66-16        Sec. 555.003.  EXCEPTION.  This chapter does not apply to
  66-17  files that relate to drivers of motor vehicles and that are
  66-18  maintained by the Department of Public Safety under Section 21,
  66-19  Chapter 173, Acts of the 47th Legislature, Regular Session, 1941
  66-20  (Article 6687b, Vernon's Texas Civil Statutes).  (V.A.C.S. Art.
  66-21  6252-17b, Sec. 6.)
  66-22           (Sections 555.004-555.020 reserved for expansion)
  66-23         SUBCHAPTER B.  PROCEDURES RELATING TO LICENSE RECORDS
  66-24        Sec. 555.021.  MAINTENANCE AND ACCESSIBILITY OF LICENSE
  66-25  RECORDS.  (a)  Each state agency that issues a license shall keep
  66-26  in its files records relating to each license holder regulated by
  66-27  the agency.
   67-1        (b)  The agency shall maintain the files in a manner that
   67-2  permits public access to:
   67-3              (1)  all information in the files relating to a license
   67-4  holder regulated by the agency, including information about a
   67-5  contested case, unless the information is excepted by law from
   67-6  public disclosure; and
   67-7              (2)  notice of information in the file as described by
   67-8  Section 555.022.  (V.A.C.S. Art. 6252-17b, Sec. 2.)
   67-9        Sec. 555.022.  REMOVAL OF RECORDS FROM FILE.  (a)  On removal
  67-10  from a state agency file of information relating to the license
  67-11  status of one or more license holders, the agency shall:
  67-12              (1)  describe the content of the removed record;
  67-13              (2)  indicate the reason the particular record is not
  67-14  any longer part of the agency file; and
  67-15              (3)  state the date and time the record was removed.
  67-16        (b)  This section does not apply to a record that is removed
  67-17  for destruction as permitted by law.  (V.A.C.S. Art. 6252-17b, Sec.
  67-18  3.)
  67-19        Sec. 555.023.  AGENCY FILE DIVERSIFICATION PERMITTED.  (a)  A
  67-20  state agency is not required to discontinue or convert its records
  67-21  management procedures or systems in existence before June 14, 1989,
  67-22  to comply with this chapter.  An agency may continue to use those
  67-23  procedures and systems in conjunction with any changes made to
  67-24  comply with this chapter.
  67-25        (b)  A state agency may not impede public access to records
  67-26  through use of a records management procedure or system that
  67-27  existed before June 14, 1989, if the public is entitled by law to
   68-1  access.  (V.A.C.S. Art. 6252-17b, Sec. 4.)
   68-2         CHAPTER 556.  POLITICAL ACTIVITIES BY STATE EMPLOYEES
   68-3  Sec. 556.001.  DEFINITIONS
   68-4  Sec. 556.002.  EXCEPTION
   68-5  Sec. 556.003.  STATE EMPLOYEES' RIGHTS
   68-6  Sec. 556.004.  PROHIBITED ACTS OF STATE EMPLOYEES
   68-7  Sec. 556.005.  VIOLATION
   68-8         CHAPTER 556.  POLITICAL ACTIVITIES BY STATE EMPLOYEES
   68-9        Sec. 556.001.  DEFINITIONS.  In this chapter:
  68-10              (1)  "State agency" means:
  68-11                    (A)  a department, commission, board, office, or
  68-12  other agency in the executive branch of state government, created
  68-13  under the constitution or a statute, with statewide authority;
  68-14                    (B)  a university system or an institution of
  68-15  higher education as defined by Section 61.003, Education Code; or
  68-16                    (C)  the supreme court, the court of criminal
  68-17  appeals, a court of appeals, or the Texas Judicial Council.
  68-18              (2)  "State employee" means an individual who is
  68-19  employed by a state agency.  The term does not include an elected
  68-20  official or an individual appointed to office by the governor
  68-21  subject to approval by the senate.  (V.A.C.S. Art. 6252-9f, Sec.
  68-22  1.)
  68-23        Sec. 556.002.  EXCEPTION.  This chapter does not apply to an
  68-24  individual employed by the Department of Public Safety.  (V.A.C.S.
  68-25  Art. 6252-9f, Sec. 5.)
  68-26        Sec. 556.003.  STATE EMPLOYEES' RIGHTS.  A state employee has
  68-27  the rights of freedom of association and political participation
   69-1  guaranteed by the state and federal constitutions except as
   69-2  provided by Section 556.004.  (V.A.C.S. Art. 6252-9f, Sec. 2.)
   69-3        Sec. 556.004.  PROHIBITED ACTS OF STATE EMPLOYEES.  (a)  A
   69-4  state employee may not:
   69-5              (1)  use official authority or influence, or permit the
   69-6  use of a program administered by the state, to interfere with or
   69-7  affect the result of an election or nomination of a candidate or to
   69-8  achieve any other political purpose; or
   69-9              (2)  coerce, attempt to coerce, command, restrict,
  69-10  attempt to restrict, or prevent the payment, loan, or contribution
  69-11  of any thing of value to a person or political organization for a
  69-12  political purpose.
  69-13        (b)  For purposes of this section, a state employee does not
  69-14  interfere with or affect the results of an election or nomination
  69-15  if the employee's conduct is permitted by a law relating to the
  69-16  individual's office or employment and is not otherwise unlawful.
  69-17  (V.A.C.S. Art. 6252-9f, Sec. 3.)
  69-18        Sec. 556.005.  VIOLATION.  A state employee who violates
  69-19  Section 556.004 is subject to immediate termination of employment.
  69-20  (V.A.C.S. Art. 6252-9f, Sec. 4.)
  69-21            CHAPTER 557.  SEDITION, SABOTAGE, AND COMMUNISM
  69-22                        SUBCHAPTER A.  SEDITION
  69-23  Sec. 557.001.  SEDITION
  69-24  Sec. 557.002.  DISQUALIFICATION
  69-25  Sec. 557.003.  SEDITIOUS ORGANIZATIONS
  69-26  Sec. 557.004.  ENFORCEMENT
  69-27  Sec. 557.005.  JUDICIAL POWERS IN LABOR DISPUTES
   70-1           (Sections 557.006-557.010 reserved for expansion)
   70-2                        SUBCHAPTER B.  SABOTAGE
   70-3  Sec. 557.011.  SABOTAGE
   70-4  Sec. 557.012.  CAPITAL SABOTAGE
   70-5  Sec. 557.013.  ENFORCEMENT
   70-6           (Sections 557.014-557.020 reserved for expansion)
   70-7                       SUBCHAPTER C.  COMMUNISM
   70-8  Sec. 557.021.  DEFINITIONS
   70-9  Sec. 557.022.  RESTRICTIONS
  70-10  Sec. 557.023.  ENFORCEMENT
  70-11            CHAPTER 557.  SEDITION, SABOTAGE, AND COMMUNISM
  70-12                        SUBCHAPTER A.  SEDITION
  70-13        Sec. 557.001.  SEDITION.  (a)  A person commits an offense if
  70-14  the person knowingly:
  70-15              (1)  commits, attempts to commit, or conspires with one
  70-16  or more persons to commit an act intended to overthrow, destroy, or
  70-17  alter the constitutional form of government of this state or of any
  70-18  political subdivision of this state by force or violence;
  70-19              (2)  under circumstances that constitute a clear and
  70-20  present danger to the security of this state or a political
  70-21  subdivision of this state, advocates, advises, or teaches or
  70-22  conspires with one or more persons to advocate, advise, or teach a
  70-23  person to commit or attempt to commit an act described in
  70-24  Subdivision (1); or
  70-25              (3)  participates, with knowledge of the nature of the
  70-26  organization, in the management of an organization that engages in
  70-27  or attempts to engage in an act intended to overthrow, destroy, or
   71-1  alter the constitutional form of government of this state or of any
   71-2  political subdivision of this state by force or violence.
   71-3        (b)  An offense under this section is a felony punishable by:
   71-4              (1)  a fine not to exceed $20,000;
   71-5              (2)  confinement in the institutional division of the
   71-6  Texas Department of Criminal Justice for a term of not less than
   71-7  one year or more than 20 years; or
   71-8              (3)  both fine and imprisonment.
   71-9        (c)  A person convicted of an offense under this section may
  71-10  not receive probation under Article 42.12, Code of Criminal
  71-11  Procedure.  (V.A.C.S. Art. 6889-3A, Secs. 5 (part), 6 (part).)
  71-12        Sec. 557.002.  DISQUALIFICATION.  A person who is finally
  71-13  convicted of an offense under Section 557.001 may not hold office
  71-14  or a position of profit, trust, or employment with the state or any
  71-15  political subdivision of the state.  (V.A.C.S. Art. 6889-3A, Sec.
  71-16  7.)
  71-17        Sec. 557.003.  SEDITIOUS ORGANIZATIONS.  (a)  An
  71-18  organization, either incorporated or unincorporated, may not engage
  71-19  in or have as a purpose activities intended to overthrow, destroy,
  71-20  or alter the constitutional form of government of this state or a
  71-21  political subdivision of this state by force or violence.
  71-22        (b)  An organization that violates Subsection (a):
  71-23              (1)  may not lawfully exist, function, or operate in
  71-24  this state; and
  71-25              (2)  is not entitled to the rights, privileges, and
  71-26  immunities granted to organizations under the law of this state.
  71-27        (c)  A district attorney, criminal district attorney, or
   72-1  county attorney may bring an action against an organization in a
   72-2  court of competent jurisdiction.  If the court finds that the
   72-3  organization has violated Subsection (a), the court shall order:
   72-4              (1)  the organization dissolved;
   72-5              (2)  if the organization is incorporated in the state
   72-6  or has a permit to do business in the state, the organization's
   72-7  charter or permit revoked;
   72-8              (3)  all funds, records, and property of the
   72-9  organization forfeited to the state; and
  72-10              (4)  all books, records, and files of the organization
  72-11  turned over to the attorney general.
  72-12        (d)  It is prima facie evidence that an organization engages
  72-13  in or has as a purpose engaging in activities intended to
  72-14  overthrow, destroy, or alter the constitutional form of the
  72-15  government of this state or a political subdivision of this state
  72-16  by force or violence if it is shown that the organization has a
  72-17  parent or superior organization that engages in or has as a purpose
  72-18  engaging in activities intended to overthrow, destroy, or alter the
  72-19  constitutional form of the government of this state or a political
  72-20  subdivision of this state by force or violence.  (V.A.C.S.
  72-21  Art. 6889-3A, Secs. 2, 4.)
  72-22        Sec. 557.004.  ENFORCEMENT.  (a)  A district court may, on
  72-23  application by a district attorney, criminal district attorney, or
  72-24  county attorney, order injunctive or other equitable relief
  72-25  appropriate to enforce this subchapter.
  72-26        (b)  The procedure for relief sought under Subsection (a) of
  72-27  this section is the same as that for other similar relief in the
   73-1  district court except that the proceeding may not be instituted
   73-2  unless the director of the Department of Public Safety of the State
   73-3  of Texas or the director's assistant in charge is notified by
   73-4  telephone, telegraph, or in person that injunctive or other
   73-5  equitable relief will be sought.
   73-6        (c)  An affidavit that states that the notice described in
   73-7  Subsection (b) was given and that accompanies the application for
   73-8  relief is sufficient to permit filing of the application.
   73-9        (d)  Injunctive or other equitable relief sought to enforce
  73-10  this subchapter may not be granted in a labor dispute.
  73-11        (e)  The internal security section of the Department of
  73-12  Public Safety of the State of Texas shall assist in the enforcement
  73-13  of this subchapter.  (V.A.C.S. Art. 6889-3A, Secs. 8 (part), 9a
  73-14  (part).)
  73-15        Sec. 557.005.  JUDICIAL POWERS IN LABOR DISPUTES.  This
  73-16  subchapter does not affect the powers of the courts of this state
  73-17  or of the United States under the law of this state in a labor
  73-18  dispute.  (V.A.C.S. Art. 6889-3A, Sec. 8 (part).)
  73-19           (Sections 557.006-557.010 reserved for expansion)
  73-20                        SUBCHAPTER B.  SABOTAGE
  73-21        Sec. 557.011.  SABOTAGE.  (a)  A person commits an offense if
  73-22  the person, with the intent to injure the United States, this
  73-23  state, or any facility or property used for national defense
  73-24  sabotages or attempts to sabotage any property or facility used or
  73-25  to be used for national defense.
  73-26        (b)  An offense under this section is a felony punishable by
  73-27  confinement in the institutional division of the Texas Department
   74-1  of Criminal Justice for a term of not less than 2 years or more
   74-2  than 20 years.
   74-3        (c)  If conduct constituting an offense under this section
   74-4  also constitutes an offense under another provision of law, the
   74-5  actor may be prosecuted under both sections.
   74-6        (d)  In this section, "sabotage" means to wilfully and
   74-7  maliciously damage or destroy property.  (V.A.C.S. Art. 6889-3,
   74-8  Sec. 5 (part).)
   74-9        Sec. 557.012.  CAPITAL SABOTAGE.  (a)  A person commits an
  74-10  offense if the person commits an offense under Section 557.011(a)
  74-11  and the sabotage or attempted sabotage causes the death of an
  74-12  individual.
  74-13        (b)  An offense under this section is punishable by:
  74-14              (1)  death; or
  74-15              (2)  confinement in the institutional division of the
  74-16  Texas Department of Criminal Justice for:
  74-17                    (A)  life; or
  74-18                    (B)  a term of not less than two years.
  74-19        (c)  If conduct constituting an offense under this section
  74-20  also constitutes an offense under other law, the actor may be
  74-21  prosecuted under both sections.  (V.A.C.S. Art. 6889-3, Sec. 5
  74-22  (part).)
  74-23        Sec. 557.013.  ENFORCEMENT.  The attorney general, a district
  74-24  or county attorney, the department, and any law enforcement officer
  74-25  of this state shall enforce this subchapter.  (V.A.C.S. Art.
  74-26  6889-3, Sec. 8.)
  74-27           (Sections 557.014-557.020 reserved for expansion)
   75-1                       SUBCHAPTER C.  COMMUNISM
   75-2        Sec. 557.021.  DEFINITIONS.  In this subchapter:
   75-3              (1)  "Communist" means a person who commits an act
   75-4  reasonably calculated to further the overthrow of the government:
   75-5                    (A)  by force or violence; or
   75-6                    (B)  by unlawful or unconstitutional means and
   75-7  replace it with a communist government.
   75-8              (2)  "Department" means the Department of Public Safety
   75-9  of the State of Texas.
  75-10              (3)  "Government" means the government of this state or
  75-11  any of its political subdivisions.  (V.A.C.S. Art. 6889-3, Sec. 1
  75-12  (part).)
  75-13        Sec. 557.022.  RESTRICTIONS.  (a)  The name of a communist
  75-14  may not be printed on the ballot for any primary or general
  75-15  election in this state or a political subdivision of this state.
  75-16        (b)  A person may not hold a nonelected office or position
  75-17  with the state or any political subdivision of the state if:
  75-18              (1)  any of the compensation for the office or position
  75-19  comes from public funds of this state or a political subdivision of
  75-20  this state; and
  75-21              (2)  the employer or superior of the person has
  75-22  reasonable grounds to believe that the person is a communist.
  75-23  (V.A.C.S. Art. 6889-3, Secs. 6, 7.)
  75-24        Sec. 557.023.  ENFORCEMENT.  The attorney general, a district
  75-25  or county attorney, the department, and any law enforcement officer
  75-26  of this state shall enforce this subchapter.  (V.A.C.S. Art.
  75-27  6889-3, Sec. 8.)
   76-1    CHAPTER 558.  INTERPRETERS FOR DEAF OR HEARING IMPAIRED PERSONS
   76-2  Sec. 558.001.  DEFINITION
   76-3  Sec. 558.002.  STATE EXAMINATIONS
   76-4  Sec. 558.003.  PROCEEDINGS BEFORE POLITICAL SUBDIVISIONS
   76-5    CHAPTER 558.  INTERPRETERS FOR DEAF OR HEARING IMPAIRED PERSONS
   76-6        Sec. 558.001.  DEFINITION.  In this chapter, "deaf or hearing
   76-7  impaired" means having a hearing impairment, regardless of the
   76-8  existence of a speech impairment, that inhibits:
   76-9              (1)  comprehension of an examination or proceeding; or
  76-10              (2)  communication with others.  (V.A.C.S. Art.
  76-11  6252-18a(b)(1).)
  76-12        Sec. 558.002.  STATE EXAMINATIONS.  (a)  A deaf or hearing
  76-13  impaired person taking a state examination required for state
  76-14  employment or issuance of a state license is entitled, on request,
  76-15  to an interpreter.
  76-16        (b)  The interpreter may be paid for not more than eight
  76-17  hours for interpreting in a calendar day and is entitled to $5 for
  76-18  each hour of interpreting, except that the interpreter is entitled
  76-19  to $15 for the first hour, in a calendar day.   (V.A.C.S. Art.
  76-20  6252-18.)
  76-21        Sec. 558.003.  PROCEEDINGS BEFORE POLITICAL SUBDIVISIONS.
  76-22  (a)  In a proceeding before the governing body of a political
  76-23  subdivision in which the legal rights, duties, or privileges of a
  76-24  party are to be determined by the governing body after an
  76-25  adjudicative hearing, the governing body shall supply for a party
  76-26  who is deaf or hearing impaired an interpreter who has
  76-27  qualifications approved by the Texas Commission for the Deaf and
   77-1  Hearing Impaired.
   77-2        (b)  In this section, "political subdivision" means a county,
   77-3  municipality, school district, special purpose district, or other
   77-4  subdivision of state government that has jurisdiction limited to a
   77-5  geographic portion of the state.  (V.A.C.S. Art. 6252-18a(a),
   77-6  (b)(2).)
   77-7               (Chapters 559-570 reserved for expansion)
   77-8                          SUBTITLE B.  ETHICS
   77-9                 CHAPTER 571.  TEXAS ETHICS COMMISSION
  77-10                   SUBCHAPTER A.  GENERAL PROVISIONS
  77-11  Sec. 571.001.  PURPOSE
  77-12  Sec. 571.002.  DEFINITIONS
  77-13           (Sections 571.003-571.020 reserved for expansion)
  77-14               SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
  77-15  Sec. 571.021.  TEXAS ETHICS COMMISSION
  77-16  Sec. 571.022.  SUNSET PROVISION
  77-17  Sec. 571.023.  PRESIDING OFFICER
  77-18  Sec. 571.024.  EXPENSES
  77-19  Sec. 571.025.  MEETINGS
  77-20  Sec. 571.026.  QUORUM; VOTE REQUIRED
  77-21  Sec. 571.027.  PROHIBITED PARTICIPATION
  77-22  Sec. 571.028.  PROHIBITED CANDIDACY
  77-23  Sec. 571.029.  STAFF
  77-24  Sec. 571.030.  STATE ETHICS FUND
  77-25  Sec. 571.031.  RECORDS
  77-26  Sec. 571.032.  MAILING OF NOTICES, DECISIONS, AND REPORTS
  77-27  Sec. 571.033.  DISCRIMINATION PROHIBITED
   78-1           (Sections 571.034-571.060 reserved for expansion)
   78-2               SUBCHAPTER C.  GENERAL POWERS AND DUTIES
   78-3  Sec. 571.061.  LAWS ADMINISTERED AND ENFORCED BY COMMISSION
   78-4  Sec. 571.062.  RULES
   78-5  Sec. 571.063.  RULES CONCERNING GIFTS TO REGULATORY AGENCY
   78-6                   OFFICERS AND EMPLOYEES
   78-7  Sec. 571.064.  REPORTING AND REGISTRATION THRESHOLDS
   78-8  Sec. 571.065.  FORMS
   78-9  Sec. 571.066.  ELECTRONIC DATA BASE
  78-10  Sec. 571.067.  COMPUTER SOFTWARE
  78-11  Sec. 571.068.  ACCOUNT NUMBERS
  78-12  Sec. 571.069.  REVIEW OF STATEMENTS AND REPORTS; AUDITS
  78-13  Sec. 571.070.  MANUAL
  78-14  Sec. 571.071.  TRAINING; GUIDELINES
  78-15  Sec. 571.072.  PUBLIC ACCESS
  78-16  Sec. 571.073.  REPORT
  78-17  Sec. 571.074.  GIFTS AND GRANTS
  78-18  Sec. 571.075.  DELEGATION OF AUTHORITY
  78-19  Sec. 571.076.  CONTRACT FOR ADMINISTRATION
  78-20           (Sections 571.077-571.090 reserved for expansion)
  78-21                   SUBCHAPTER D.  ADVISORY OPINIONS
  78-22  Sec. 571.091.  OPINION TO BE GIVEN ON REQUEST
  78-23  Sec. 571.092.  DEADLINE FOR OPINION; EXTENSION
  78-24  Sec. 571.093.  PROTECTION OF IDENTITY OF REQUESTOR OR
  78-25                   AFFECTED PERSON
  78-26  Sec. 571.094.  OPINION ISSUED ON INITIATIVE OF COMMISSION
  78-27  Sec. 571.095.  MAINTENANCE OF OPINIONS; SUMMARY
   79-1  Sec. 571.096.  OPINION BY OTHER GOVERNMENTAL ENTITY
   79-2  Sec. 571.097.  DEFENSE FOR RELIANCE ON ADVISORY OPINION
   79-3  Sec. 571.098.  CONVERSION OF CONTRIBUTION TO PERSONAL USE
   79-4           (Sections 571.099-571.120 reserved for expansion)
   79-5           SUBCHAPTER E.  COMPLAINT PROCEDURES AND HEARINGS
   79-6  Sec. 571.121.  GENERAL POWERS
   79-7  Sec. 571.122.  FILING OF COMPLAINT; CONTENTS
   79-8  Sec. 571.123.  PROCESSING OF COMPLAINT
   79-9  Sec. 571.124.  PRELIMINARY REVIEW:  INITIATION
  79-10  Sec. 571.125.  PRELIMINARY REVIEW:  PROCEDURE
  79-11  Sec. 571.126.  PRELIMINARY REVIEW:  RESOLUTION
  79-12  Sec. 571.127.  INFORMAL HEARING:  PROCEDURE
  79-13  Sec. 571.128.  INFORMAL HEARING:  RESOLUTION
  79-14  Sec. 571.129.  FORMAL HEARING:  STANDARD OF EVIDENCE
  79-15  Sec. 571.130.  FORMAL HEARING:  SUBPOENAS AND WITNESSES
  79-16  Sec. 571.131.  FORMAL HEARING:  PROCEDURE
  79-17  Sec. 571.132.  FORMAL HEARING:  RESOLUTION
  79-18  Sec. 571.133.  APPEAL OF FINAL DECISION
  79-19  Sec. 571.134.  DELAY OF REFERRAL
  79-20  Sec. 571.135.  PUBLIC INTEREST INFORMATION;
  79-21                   STATUS OF COMPLAINT
  79-22  Sec. 571.136.  EXTENSION OF DEADLINE
  79-23  Sec. 571.137.  SUBPOENA
  79-24  Sec. 571.138.  STATUS OF COMPLAINANT
  79-25  Sec. 571.139.  APPLICABILITY OF OTHER ACTS
  79-26  Sec. 571.140.  CONFIDENTIALITY; OFFENSE
  79-27           (Sections 571.141-571.170 reserved for expansion)
   80-1                      SUBCHAPTER F.  ENFORCEMENT
   80-2  Sec. 571.171.  INITIATION AND REFERRAL
   80-3  Sec. 571.172.  ORDER
   80-4  Sec. 571.173.  CIVIL PENALTY FOR DELAY OR VIOLATION
   80-5  Sec. 571.174.  DENIAL, SUSPENSION, OR REVOCATION OF
   80-6                   LOBBYIST REGISTRATION
   80-7  Sec. 571.175.  NOTIFICATION OF REGULATORY OR
   80-8                   SUPERVISORY ENTITY
   80-9  Sec. 571.176.  CIVIL PENALTY FOR FRIVOLOUS OR BAD-FAITH
  80-10                   COMPLAINT
  80-11  Sec. 571.177.  FACTORS CONSIDERED FOR ASSESSMENT OF SANCTION
  80-12                          SUBTITLE B.  ETHICS
  80-13                 CHAPTER 571.  TEXAS ETHICS COMMISSION
  80-14                   SUBCHAPTER A.  GENERAL PROVISIONS
  80-15        Sec. 571.001.  PURPOSE.  It is the policy of the legislature
  80-16  to protect the constitutional privilege of free suffrage by
  80-17  regulating elections and prohibiting undue influence, while also
  80-18  protecting the constitutional right of the governed to apply to
  80-19  their government for the redress of grievances.  This chapter is
  80-20  intended to achieve those purposes, and shall be construed to
  80-21  achieve the following objectives:
  80-22              (1)  to control and reduce the cost of elections;
  80-23              (2)  to eliminate opportunities for undue influence
  80-24  over elections and governmental actions;
  80-25              (3)  to disclose fully information related to
  80-26  expenditures and contributions for elections and for petitioning
  80-27  the government;
   81-1              (4)  to enhance the potential for individual
   81-2  participation in electoral and governmental processes; and
   81-3              (5)  to ensure the public's confidence and trust in its
   81-4  government.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.01.)
   81-5        Sec. 571.002.  DEFINITIONS.  In this chapter:
   81-6              (1)  "Commission" means the Texas Ethics Commission.
   81-7              (2)  "Complainant" means an individual who files a
   81-8  sworn complaint with the commission.
   81-9              (3)  "Political party" includes only a political party
  81-10  required to hold a primary election under Section 172.001, Election
  81-11  Code.
  81-12              (4)  "Respondent" means a person who is alleged to have
  81-13  committed a violation of a rule adopted by or a law administered
  81-14  and enforced by the commission.  (V.A.C.S. Art. 6252-9d.1, Sec.
  81-15  1.02.)
  81-16           (Sections 571.003-571.020 reserved for expansion)
  81-17               SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
  81-18        Sec. 571.021.  TEXAS ETHICS COMMISSION.  This chapter applies
  81-19  to the Texas Ethics Commission created under Article III, Section
  81-20  24a, of the Texas Constitution.  (New.)
  81-21        Sec. 571.022.  SUNSET PROVISION.  The commission is subject
  81-22  to review under Chapter 325 (Texas Sunset Act), but is not
  81-23  abolished under that chapter.  The commission shall be reviewed
  81-24  during the periods in which state agencies abolished in 2001 and
  81-25  every 12th year after 2001 are reviewed.  (V.A.C.S. Art. 6252-9d.1,
  81-26  Sec. 1.36(d).)
  81-27        Sec. 571.023.  PRESIDING OFFICER.  The members of the
   82-1  commission shall elect annually the presiding officer of the
   82-2  commission.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.07(a).)
   82-3        Sec. 571.024.  EXPENSES.  A member of the commission is
   82-4  entitled to travel expenses incurred in performing official duties
   82-5  and to a per diem equal to the maximum amount allowed on January 1
   82-6  of that year for federal employees per diem for federal income tax
   82-7  purposes, subject to the same limitations for members of state
   82-8  boards and commissions in the General Appropriations Act.
   82-9  (V.A.C.S. Art. 6252-9d.1, Sec. 1.08.)
  82-10        Sec. 571.025.  MEETINGS.  The commission shall meet at least
  82-11  once each calendar quarter and at other times at the call of the
  82-12  presiding officer.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.07(b).)
  82-13        Sec. 571.026.  QUORUM; VOTE REQUIRED.  (a)  A majority of the
  82-14  membership of the commission constitutes a quorum.
  82-15        (b)  A vacancy on the commission may not be considered in
  82-16  determining the membership of the commission for the purpose of a
  82-17  quorum.
  82-18        (c)  Except as otherwise provided by this chapter, an action
  82-19  or recommendation of the commission requiring a vote of the
  82-20  commission is not valid unless:
  82-21              (1)  the vote is taken at a meeting of the commission
  82-22  with a quorum present; and
  82-23              (2)  the action or recommendation receives an
  82-24  affirmative vote of a majority of the membership of the commission.
  82-25  (V.A.C.S. Art. 6252-9d.1, Sec. 1.06.)
  82-26        Sec. 571.027.  PROHIBITED PARTICIPATION.  (a)  A member of
  82-27  the commission may not participate in a commission proceeding
   83-1  relating to any of the following actions if the member is the
   83-2  subject of the action:
   83-3              (1)  a formal investigation by the commission;
   83-4              (2)  a sworn complaint filed with the commission; or
   83-5              (3)  a motion by an affirmative record vote of at least
   83-6  six members of the commission.
   83-7        (b)  A member of the commission may not participate in or
   83-8  vote on any matter before the commission if the matter concerns the
   83-9  member directly or an individual related to the member within the
  83-10  second degree by affinity or consanguinity.  (V.A.C.S. Art.
  83-11  6252-9d.1, Sec. 1.31.)
  83-12        Sec. 571.028.  PROHIBITED CANDIDACY.  A member of the
  83-13  commission may not be a candidate for an elective public office for
  83-14  12 months after the date on which the member ends service on the
  83-15  commission.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.32.)
  83-16        Sec. 571.029.  STAFF.  (a)  The commission may employ staff,
  83-17  including an executive director and a general counsel, necessary to
  83-18  administer the commission's functions.
  83-19        (b)  The commission may not employ a person, and an employee
  83-20  of the commission may not continue in employment with the
  83-21  commission, if the person at the time of employment or while
  83-22  employed by the commission is:
  83-23              (1)  an officer of a political party, a political
  83-24  subdivision, or a political committee;
  83-25              (2)  a person required to be registered under Chapter
  83-26  305;
  83-27              (3)  a candidate or campaign treasurer subject to Title
   84-1  15, Election Code; or
   84-2              (4)  a member of the legislature.  (V.A.C.S. Art.
   84-3  6252-9d.1, Sec. 1.10.)
   84-4        Sec. 571.030.  STATE ETHICS FUND.  (a)  The state ethics
   84-5  fund, in the state treasury, consists of that part of the unclaimed
   84-6  money fund as provided by Section 74.602, Property Code, and fees
   84-7  collected under Section 305.005.
   84-8        (b)  Money in the fund may be appropriated only to the
   84-9  commission to administer and enforce:
  84-10              (1)  this chapter;
  84-11              (2)  Chapters 302, 305, and 572; and
  84-12              (3)  Title 15, Election Code.
  84-13        (c)  At the request of the commission, the state treasurer
  84-14  shall transfer funds to the commission under Section 74.602(b)(2),
  84-15  Property Code.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.35.)
  84-16        Sec. 571.031.  RECORDS.  Except as provided by Sections
  84-17  571.139(a) and 571.140, Chapter 552 applies to all records of the
  84-18  commission.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.36(c).)
  84-19        Sec. 571.032.  MAILING OF NOTICES, DECISIONS, AND REPORTS.
  84-20  Each written notice, decision, and report required to be sent under
  84-21  this chapter shall be sent by registered or certified mail,
  84-22  restricted delivery, return receipt requested.  (V.A.C.S. Art.
  84-23  6252-9d.1, Sec. 1.25(a).)
  84-24        Sec. 571.033.  DISCRIMINATION PROHIBITED.  This chapter may
  84-25  not be applied to discriminate on the basis of race, sex, national
  84-26  origin, or religion.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.33.)
  84-27           (Sections 571.034-571.060 reserved for expansion)
   85-1               SUBCHAPTER C.  GENERAL POWERS AND DUTIES
   85-2        Sec. 571.061.  LAWS ADMINISTERED AND ENFORCED BY COMMISSION.
   85-3  (a)  The commission shall administer and enforce:
   85-4              (1)  Chapters 302, 305, and 572; and
   85-5              (2)  Title 15, Election Code.
   85-6        (b)  The commission shall perform any other powers or duties
   85-7  given to the commission under a law listed in Subsection (a).
   85-8  (V.A.C.S. Art. 6252-9d.1, Sec. 1.11(a)(1).)
   85-9        Sec. 571.062.  RULES.  (a)  The commission, on the
  85-10  affirmative vote of at least six members of the commission, may
  85-11  adopt rules to administer this chapter or any other law
  85-12  administered and enforced by the commission.
  85-13        (b)  Chapter 2001, relating to rules and rulemaking, applies
  85-14  to the commission to the extent consistent with this chapter.
  85-15  (V.A.C.S. Art. 6252-9d.1, Secs. 1.11(b)(9), 1.36(a) (part).)
  85-16        Sec. 571.063.  RULES CONCERNING GIFTS TO REGULATORY AGENCY
  85-17  OFFICERS AND EMPLOYEES.  (a)  The commission shall require each
  85-18  regulatory agency in the executive branch to develop rules limiting
  85-19  the acceptance of gifts or other benefits from persons appearing
  85-20  before or regulated by the agency.  The rules must be at least as
  85-21  restrictive as the rules of the commission.
  85-22        (b)  The commission shall provide for the submission of those
  85-23  rules to the commission for approval.  (V.A.C.S. Art. 6252-9d.1,
  85-24  Sec. 1.11(a)(7).)
  85-25        Sec. 571.064.  REPORTING AND REGISTRATION THRESHOLDS.  (a)
  85-26  If a law administered and enforced by the commission authorizes the
  85-27  commission to determine dollar amounts as reporting or registration
   86-1  thresholds, the commission shall set those thresholds in amounts
   86-2  that are reasonable, are in the public interest, and further the
   86-3  purposes of the reporting or registration law involved.
   86-4        (b)  If a law administered and enforced by the commission
   86-5  sets dollar amounts or categories of amounts as reporting
   86-6  thresholds or if the commission sets those amounts, the commission
   86-7  annually shall adjust those thresholds upward to the nearest
   86-8  multiple of $10 in accordance with the percentage increase for the
   86-9  previous year in the Consumer Price Index for Urban Consumers,
  86-10  published by the Bureau of Labor Statistics of the United States
  86-11  Department of Labor.  (V.A.C.S. Art. 6252-9d.1, Secs. 1.11(c),
  86-12  (d).)
  86-13        Sec. 571.065.  FORMS.  (a)  The commission shall prescribe
  86-14  forms for statements and reports required to be filed with the
  86-15  commission.
  86-16        (b)  The commission shall provide for the distribution of the
  86-17  forms.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.11(a)(2).)
  86-18        Sec. 571.066.  ELECTRONIC DATA BASE.  (a)  The Department of
  86-19  Information Resources shall study the implementation of the most
  86-20  appropriate electronic data base to enhance the commission's
  86-21  abilities to administer this chapter.
  86-22        (b)  The commission shall:
  86-23              (1)  establish an electronic data base composed of
  86-24  statements and reports filed with the commission;
  86-25              (2)  provide the public with access to that data;
  86-26              (3)  establish a system to provide access by electronic
  86-27  data transmittal processes to that data;
   87-1              (4)  set and charge a fee for electronic access to the
   87-2  data base in an amount reasonable and necessary to cover the costs
   87-3  of access; and
   87-4              (5)  ensure that entries entered on multiple reports
   87-5  may be electronically cross-referenced in the data base.  (V.A.C.S.
   87-6  Art. 6252-9d.1, Sec. 1.12.)
   87-7        Sec. 571.067.  COMPUTER SOFTWARE.  The commission may develop
   87-8  computer software to facilitate the discharge of its statutory
   87-9  duties.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.11(b)(6).)
  87-10        Sec. 571.068.  ACCOUNT NUMBERS.  The commission shall assign
  87-11  an account number to each person required to file a statement or
  87-12  report with the commission under a law administered and enforced by
  87-13  the commission.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.11(a)(8).)
  87-14        Sec. 571.069.  REVIEW OF STATEMENTS AND REPORTS; AUDITS.  (a)
  87-15  The commission may review for facial compliance a statement or
  87-16  report filed with the commission and may review any available
  87-17  documents.  The commission may return for resubmission with
  87-18  corrections or additional documentation a statement or report that
  87-19  does not, in the opinion of the commission, comply with the law
  87-20  requiring the statement or report.
  87-21        (b)  The commission may by an affirmative record vote of at
  87-22  least six commission members perform a complete audit only at an
  87-23  informal or formal hearing.
  87-24        (c)  Any audited statement, report, document, or other
  87-25  material is confidential and may not be disclosed unless the
  87-26  statement, report, document, or other material:
  87-27              (1)  was previously public information; or
   88-1              (2)  is entered into the record of a formal hearing or
   88-2  a judicial proceeding.
   88-3        (d)  The party who is the subject of the audit may waive
   88-4  confidentiality by sending written notice to the commission.
   88-5        (e)  The commission may not audit a statement or report filed
   88-6  before January 1, 1992, under a law administered and enforced
   88-7  before that date by the secretary of state.  (V.A.C.S. Art.
   88-8  6252-9d.1, Sec. 1.13.)
   88-9        Sec. 571.070.  MANUAL.  The commission shall adopt by rule
  88-10  and publish a manual that establishes uniform methods of accounting
  88-11  and reporting for use by persons required to file statements and
  88-12  reports with the commission and that includes a digest of each
  88-13  advisory opinion issued by the commission under Subchapter D.
  88-14  (V.A.C.S. Art. 6252-9d.1, Sec. 1.11(a)(3).)
  88-15        Sec. 571.071.  TRAINING; GUIDELINES.  (a)  The commission
  88-16  shall:
  88-17              (1)  provide training by January of each odd-numbered
  88-18  year for members and members-elect of the legislature concerning
  88-19  compliance with the laws administered and enforced by the
  88-20  commission; and
  88-21              (2)  provide, in cooperation with state agencies,  a
  88-22  program of ethics training for state employees.
  88-23        (b)  The commission may disseminate, through pamphlets and
  88-24  seminars, explanations and compliance guidelines concerning any law
  88-25  administered and enforced by the commission.  (V.A.C.S. Art.
  88-26  6252-9d.1, Secs. 1.11(a)(5), (6); (b)(5).)
  88-27        Sec. 571.072.  PUBLIC ACCESS.  (a)  The commission shall
   89-1  develop and implement policies that provide the public with a
   89-2  reasonable opportunity to appear before the commission and to speak
   89-3  on issues under the general jurisdiction of the commission.
   89-4        (b)  The commission shall prepare and maintain a written plan
   89-5  that describes how a person who does not speak English or who has a
   89-6  physical, mental, or developmental disability may be provided
   89-7  reasonable access to commission proceedings.  (V.A.C.S. Art.
   89-8  6252-9d.1, Sec. 1.34.)
   89-9        Sec. 571.073.  REPORT.  On or before December 31 of each
  89-10  even-numbered year, the commission shall report to the governor and
  89-11  legislature.  The report must include each advisory opinion issued
  89-12  by the commission under Subchapter D in the preceding two years and
  89-13  recommendations for any necessary statutory changes.  (V.A.C.S.
  89-14  Art. 6252-9d.1, Sec. 1.11(a)(4).)
  89-15        Sec. 571.074.  GIFTS AND GRANTS.  The commission may accept
  89-16  gifts and grants for the administration of its duties.  (V.A.C.S.
  89-17  Art. 6252-9d.1, Sec. 1.11(b)(8).)
  89-18        Sec. 571.075.  DELEGATION OF AUTHORITY.  The commission by
  89-19  rule may delegate a power conferred on it by this chapter or
  89-20  another law administered by the commission, except:
  89-21              (1)  any power requiring a vote of the commission;
  89-22              (2)  rulemaking authority; or
  89-23              (3)  authority to issue an advisory opinion under
  89-24  Subchapter D.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.11(e).)
  89-25        Sec. 571.076.  CONTRACT FOR ADMINISTRATION.  The commission
  89-26  may contract with persons to administer and carry out this chapter
  89-27  and rules, standards, and orders adopted under this chapter,
   90-1  excluding any enforcement authority.  (V.A.C.S. Art. 6252-9d.1,
   90-2  Sec. 1.11(b)(7).)
   90-3           (Sections 571.077-571.090 reserved for expansion)
   90-4                   SUBCHAPTER D.  ADVISORY OPINIONS
   90-5        Sec. 571.091.  OPINION TO BE GIVEN ON REQUEST.  (a)  The
   90-6  commission shall prepare a written opinion answering the request of
   90-7  a person subject to any of the following laws for an opinion about
   90-8  the application of any of these laws to the person in regard to a
   90-9  specified existing or hypothetical factual situation:
  90-10              (1)  Chapter 302;
  90-11              (2)  Chapter 305;
  90-12              (3)  Chapter 572;
  90-13              (4)  Title 15, Election Code;
  90-14              (5)  Chapter 36, Penal Code; or
  90-15              (6)  Chapter 39, Penal Code.
  90-16        (b)  An opinion request under Subsection (a) must be in
  90-17  writing to the commission.  (V.A.C.S. Art. 6252-9d.1, Sec.
  90-18  1.29(a).)
  90-19        Sec. 571.092.  DEADLINE FOR OPINION; EXTENSION.  (a)  The
  90-20  commission shall issue the advisory opinion not later than the 60th
  90-21  day after the date the commission receives the request.
  90-22        (b)  The commission by vote may extend the time available to
  90-23  issue an opinion by 30 days.  The commission may not grant more
  90-24  than two extensions.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.29(b).)
  90-25        Sec. 571.093.  PROTECTION OF IDENTITY OF REQUESTOR OR
  90-26  AFFECTED PERSON.  (a)  The commission shall maintain the
  90-27  confidentiality of the name of the person requesting an advisory
   91-1  opinion and shall issue opinions in a form necessary to maintain
   91-2  that confidentiality.
   91-3        (b)  The commission may not issue an opinion that includes
   91-4  the name of any person who may be affected by the opinion.
   91-5        (c)  Subsections (a) and (b) do not apply to a person who
   91-6  requests an opinion and files written notice with the commission
   91-7  waiving the confidentiality of the person's identity.  (V.A.C.S.
   91-8  Art. 6252-9d.1, Secs. 1.29(c), (d) (part).)
   91-9        Sec. 571.094.  OPINION ISSUED ON INITIATIVE OF COMMISSION.
  91-10  On its own initiative, the commission may issue a written advisory
  91-11  opinion about the application of a law listed in Section 571.091 if
  91-12  a majority of the commission determines that an opinion would be in
  91-13  the public interest or in the interest of any person under the
  91-14  jurisdiction of the commission.  (V.A.C.S. Art. 6252-9d.1, Sec.
  91-15  1.29(d) (part).)
  91-16        Sec. 571.095.  MAINTENANCE OF OPINIONS; SUMMARY.  The
  91-17  commission shall number and categorize each advisory opinion issued
  91-18  and annually shall compile a summary of its opinions in a single
  91-19  reference document.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.29(e).)
  91-20        Sec. 571.096.  OPINION BY OTHER GOVERNMENTAL ENTITY.  (a)
  91-21  The authority of the commission to issue an advisory opinion does
  91-22  not affect the authority of the attorney general to issue an
  91-23  opinion as authorized by law.
  91-24        (b)  In issuing an opinion under this subchapter, the
  91-25  commission shall consider the opinions issued by the State Ethics
  91-26  Advisory Commission and the secretary of state that are not
  91-27  overruled by statute or rule of the commission.
   92-1        (c)  The commission shall rely on opinions issued by the
   92-2  attorney general and the courts of this state.  (V.A.C.S. Art.
   92-3  6252-9d.1, Secs. 1.29(f), (g).)
   92-4        Sec. 571.097.  DEFENSE FOR RELIANCE ON ADVISORY OPINION.  It
   92-5  is a defense to prosecution or to imposition of a civil penalty
   92-6  that the person reasonably relied on a written advisory opinion of
   92-7  the commission relating to the provision of the law the person is
   92-8  alleged to have violated or relating to a fact situation that is
   92-9  substantially similar to the fact situation in which the person is
  92-10  involved.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.30(a).)
  92-11        Sec. 571.098.  CONVERSION OF CONTRIBUTION TO PERSONAL USE.  A
  92-12  person involved in a transaction or activity that the commission
  92-13  concludes in an advisory opinion to be a conversion of a
  92-14  contribution to personal use in violation of Section 253.035,
  92-15  Election Code, is not civilly liable to the state if:
  92-16              (1)  before receiving the opinion, the person
  92-17  reasonably believed the transaction or activity did not constitute
  92-18  a conversion, taking into account prior opinions and rules of the
  92-19  commission; and
  92-20              (2)  on or before the 30th day after the date the
  92-21  opinion is published, the person:
  92-22                    (A)  returns to the political fund from which it
  92-23  was removed an amount equal to the amount converted; and
  92-24                    (B)  notifies the commission by certified mail
  92-25  that the person has returned the converted contribution as required
  92-26  by this section.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.30(b).)
  92-27           (Sections 571.099-571.120 reserved for expansion)
   93-1           SUBCHAPTER E.  COMPLAINT PROCEDURES AND HEARINGS
   93-2        Sec. 571.121.  GENERAL POWERS.  (a)  The commission may:
   93-3              (1)  hold hearings, on its own motion adopted by an
   93-4  affirmative record vote of at least six commission members or on a
   93-5  sworn complaint, and render decisions on complaints or reports of
   93-6  violations as provided by this chapter; and
   93-7              (2)  agree to the settlement of issues.
   93-8        (b)  The commission may not consider a complaint or vote to
   93-9  investigate a matter outside the commission's jurisdiction.
  93-10  (V.A.C.S. Art. 6252-9d.1, Secs. 1.11(b)(2), (3); (f).)
  93-11        Sec. 571.122.  FILING OF COMPLAINT; CONTENTS.  (a)  An
  93-12  individual may file with the commission a sworn complaint, on a
  93-13  form prescribed by the commission, alleging that a person subject
  93-14  to a law administered and enforced by the commission has violated a
  93-15  rule adopted by or a law administered and enforced by the
  93-16  commission.
  93-17        (b)  A complaint filed under this section must be in writing
  93-18  and under oath and must set forth in simple, concise, and direct
  93-19  statements:
  93-20              (1)  the name of the complainant;
  93-21              (2)  the street or mailing address of the complainant;
  93-22              (3)  the name of each respondent;
  93-23              (4)  the position or title of each respondent;
  93-24              (5)  the nature of the alleged violation, including if
  93-25  possible the specific rule or provision of law alleged to have been
  93-26  violated;
  93-27              (6)  a statement of the facts constituting the alleged
   94-1  violation and the dates on which or period of time in which the
   94-2  alleged violation occurred; and
   94-3              (7)  all documents or other material available to the
   94-4  complainant that are relevant to the allegation, a list of all
   94-5  documents or other material within the knowledge of the complainant
   94-6  and available to the complainant that are relevant to the
   94-7  allegation but that are not in the possession of the complainant,
   94-8  including the location of the documents, if known, and a list of
   94-9  all documents or other material within the knowledge of the
  94-10  complainant that are unavailable to the complainant and that are
  94-11  relevant to the complaint, including the location of the documents,
  94-12  if known.
  94-13        (c)  The complaint must be accompanied by an affidavit
  94-14  stating that the information contained in the complaint is either
  94-15  correct or that the complainant has good reason to believe and does
  94-16  believe that the violation occurred.  If the complaint is based on
  94-17  information and belief, the complaint shall state the source and
  94-18  basis of the information and belief.  The complainant may swear to
  94-19  the facts by oath before a notary public or other authorized
  94-20  official.
  94-21        (d)  The complaint must state on its face an allegation that,
  94-22  if true, constitutes a violation of a rule adopted by or a law
  94-23  administered and enforced by the commission.  (V.A.C.S. Art.
  94-24  6252-9d.1, Sec. 1.15.)
  94-25        Sec. 571.123.  PROCESSING OF COMPLAINT.  (a)  The commission
  94-26  shall determine whether a sworn complaint filed with the commission
  94-27  complies with the form requirements of Section 571.122.
   95-1        (b)  Not later than the 14th business day after the date a
   95-2  complaint is filed, the commission shall send written notice to the
   95-3  complainant and the respondent.  The notice must state whether the
   95-4  complaint complies with the form requirements of Section 571.122.
   95-5        (c)  If the commission determines that the complaint does not
   95-6  comply with the form requirements, the commission shall send the
   95-7  complaint to the complainant with the written notice, a statement
   95-8  explaining how the complaint fails to comply, and a copy of the
   95-9  rules for filing sworn complaints.  The complainant may resubmit
  95-10  the complaint not later than the 21st day after the date the notice
  95-11  under Subsection (b) is mailed.  If the commission determines that
  95-12  the complaint is not resubmitted within the 21-day period, the
  95-13  commission shall:
  95-14              (1)  dismiss the complaint; and
  95-15              (2)  not later than the fifth business day after the
  95-16  date of the dismissal, send written notice to the complainant and
  95-17  the respondent of the dismissal and the grounds for dismissal.
  95-18        (d)  If the commission determines that a complaint is
  95-19  resubmitted under Subsection (c) within the 21-day period but is
  95-20  not in proper form, the commission shall send the notice required
  95-21  under Subsection (c), and the complainant may resubmit the
  95-22  complaint under that subsection.
  95-23        (e)  If the commission determines that a complaint returned
  95-24  to the complainant under Subsection (c) or (d) is resubmitted
  95-25  within the 21-day period and that the complaint complies with the
  95-26  form requirements, the commission shall send the written notice
  95-27  under Subsection (b).  (V.A.C.S. Art. 6252-9d.1, Secs. 1.16(a)-(d),
   96-1  (e) (part).)
   96-2        Sec. 571.124.  PRELIMINARY REVIEW: INITIATION.  (a)  The
   96-3  commission promptly shall conduct a preliminary review on receipt
   96-4  of a written complaint that is in compliance with the form
   96-5  requirements of Section 571.122.
   96-6        (b)  On a motion by an affirmative record vote of at least
   96-7  six commission members, the commission, without a sworn complaint,
   96-8  may initiate a preliminary review of the matter that is the subject
   96-9  of the motion.
  96-10        (c)  The commission by record vote shall determine whether
  96-11  the commission has jurisdiction over the violation of law alleged
  96-12  in a sworn complaint processed under Section 571.123.
  96-13        (d)  Not later than the fifth business day after the date of
  96-14  the commission's determination under Subsection (c), the commission
  96-15  shall send written notice to the complainant and the respondent
  96-16  stating whether the commission has jurisdiction over the violation
  96-17  alleged in the complaint.
  96-18        (e)  If the commission determines that the commission has
  96-19  jurisdiction, the notice must include:
  96-20              (1)  a copy of the complaint and the rules of procedure
  96-21  of the commission;
  96-22              (2)  a statement of the rights of the respondent;
  96-23              (3)  a statement inviting the respondent to provide to
  96-24  the commission any information relevant to the complaint; and
  96-25              (4)  the date the commission will begin a preliminary
  96-26  review of the complaint.
  96-27        (f)  If the commission determines that the commission does
   97-1  not have jurisdiction over the violation alleged in the complaint,
   97-2  the commission shall:
   97-3              (1)  dismiss the complaint; and
   97-4              (2)  not later than the fifth business day after the
   97-5  date of the dismissal, send to the complainant and the respondent
   97-6  written notice of the dismissal and the grounds for the dismissal.
   97-7  (V.A.C.S. Art. 6252-9d.1, Secs. 1.16(e) (part), 1.17(a)-(e).)
   97-8        Sec. 571.125.  PRELIMINARY REVIEW:  PROCEDURE.  (a)  During a
   97-9  preliminary review, the commission:
  97-10              (1)  may consider all submitted evidence related to the
  97-11  complaint or to the subject matter of a motion under Section
  97-12  571.124(b);
  97-13              (2)  may review any documents or material related to
  97-14  the complaint or to the motion; and
  97-15              (3)  shall determine whether there is credible evidence
  97-16  that provides cause for the commission to conclude that a violation
  97-17  within the jurisdiction of the commission has occurred.
  97-18        (b)  During a preliminary review, the respondent may appear
  97-19  before the commission with the assistance of counsel, if desired by
  97-20  the respondent, and present any relevant evidence, including a
  97-21  written statement.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.17(f).)
  97-22        Sec. 571.126.  PRELIMINARY REVIEW:  RESOLUTION.  (a)  As soon
  97-23  as practicable after the completion of a preliminary review, the
  97-24  commission by record vote shall issue a decision stating:
  97-25              (1)  whether there is credible evidence for the
  97-26  commission to determine that a violation within the jurisdiction of
  97-27  the commission has occurred; or
   98-1              (2)  that there is insufficient evidence for the
   98-2  commission to determine whether a violation within the jurisdiction
   98-3  of the commission has occurred.
   98-4        (b)  If the commission determines that there is credible
   98-5  evidence for the commission to determine that a violation has
   98-6  occurred, the commission shall resolve and settle the complaint or
   98-7  motion to the extent possible.  If the commission successfully
   98-8  resolves and settles the complaint or motion, not later than the
   98-9  fifth business day after the date of the final resolution of the
  98-10  complaint or motion, the commission shall send to the complainant,
  98-11  if any, and the respondent a copy of the decision stating the
  98-12  commission's determination and written notice of the resolution and
  98-13  the terms of the resolution.  If the commission is unsuccessful in
  98-14  resolving and settling the complaint or motion, the commission in
  98-15  its discretion shall:
  98-16              (1)  order an informal hearing to be held in accordance
  98-17  with Section 571.127; and
  98-18              (2)  not later than the fifth business day after the
  98-19  date of the decision, send to the complainant, if any, and the
  98-20  respondent a copy of the decision and written notice of the date,
  98-21  time, and place of the informal hearing.
  98-22        (c)  If the commission determines that there is credible
  98-23  evidence for the commission to determine that a violation within
  98-24  the jurisdiction of the commission has not occurred, the commission
  98-25  shall:
  98-26              (1)  dismiss the complaint or motion; and
  98-27              (2)  not later than the fifth business day after the
   99-1  date of the dismissal, send to the complainant, if any, and the
   99-2  respondent a copy of the decision stating the commission's
   99-3  determination and written notice of the dismissal and the grounds
   99-4  for dismissal.
   99-5        (d)  If the commission determines that there is insufficient
   99-6  credible evidence for the commission to determine that a violation
   99-7  within the jurisdiction of the commission has occurred, the
   99-8  commission may dismiss the complaint or motion or promptly conduct
   99-9  an informal hearing under Section 571.127.  Not later than the
  99-10  fifth business day after the date of the commission's determination
  99-11  under this subsection, the commission shall send to the
  99-12  complainant, if any, and the respondent a copy of the decision
  99-13  stating the commission's determination and written notice of the
  99-14  grounds for the determination.  (V.A.C.S. Art. 6252-9d.1, Sec.
  99-15  1.18.)
  99-16        Sec. 571.127.  INFORMAL HEARING:  PROCEDURE.  (a)  During an
  99-17  informal hearing, the commission:
  99-18              (1)  may consider all evidence related to a sworn
  99-19  complaint or to a motion under Section 571.124(b);
  99-20              (2)  may review any documents or materials related to
  99-21  the sworn complaint or motion;
  99-22              (3)  may submit written questions and require those
  99-23  questions to be answered under oath;
  99-24              (4)  may subpoena documents or materials related to the
  99-25  sworn complaint or motion; and
  99-26              (5)  shall determine by credible evidence for the
  99-27  commission to determine whether a violation within the jurisdiction
  100-1  of the commission has occurred.
  100-2        (b)  During an informal hearing, the respondent may appear
  100-3  before the commission with the assistance of counsel, if desired by
  100-4  the respondent, and present any relevant evidence, including a
  100-5  written statement.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.19.)
  100-6        Sec. 571.128.  INFORMAL HEARING:  RESOLUTION.  (a)  As soon
  100-7  as practicable after the completion of an informal hearing, the
  100-8  commission by record vote shall issue a decision stating whether
  100-9  there is credible evidence for the commission to determine that a
 100-10  violation has occurred and whether the violation is technical or de
 100-11  minimis.
 100-12        (b)  If the commission determines that there is credible
 100-13  evidence for the commission to determine that a violation has not
 100-14  occurred, the commission shall:
 100-15              (1)  dismiss the complaint or motion; and
 100-16              (2)  not later than the fifth business day after the
 100-17  date of the dismissal, send to the complainant, if any, and the
 100-18  respondent a copy of the decision stating the commission's
 100-19  determination and written notice of the dismissal and the grounds
 100-20  for dismissal.
 100-21        (c)  If the commission determines that there is credible
 100-22  evidence for the commission to determine that a violation has
 100-23  occurred, the commission shall resolve and settle the complaint or
 100-24  motion to the extent possible.  If the commission successfully
 100-25  resolves and settles the complaint or motion, not later than the
 100-26  fifth business day after the date of the final resolution of the
 100-27  complaint or motion, the commission shall send to the complainant,
  101-1  if any, and the respondent a copy of the decision stating the
  101-2  commission's determination and written notice of the resolution and
  101-3  the terms of the resolution.  If the commission is unsuccessful in
  101-4  resolving and settling the complaint or motion, the commission
  101-5  shall:
  101-6              (1)  order a formal hearing to be held in accordance
  101-7  with Sections 571.129-571.131; and
  101-8              (2)  not later than the fifth business day after the
  101-9  date of the decision, send to the complainant, if any, and the
 101-10  respondent a copy of the decision and written notice of the date,
 101-11  time, and place of the formal hearing, a statement of the nature of
 101-12  the alleged violation, and a description of the evidence of the
 101-13  alleged violation.
 101-14        (d)  A copy of the complaint or motion, the rules of
 101-15  procedure of the commission, and a statement of the rights of the
 101-16  respondent shall be sent with the notice required under Subsection
 101-17  (c)(2).  (V.A.C.S. Art. 6252-9d.1, Sec. 1.20.)
 101-18        Sec. 571.129.  FORMAL HEARING:  STANDARD OF EVIDENCE.  During
 101-19  a formal hearing, the commission shall determine by clear and
 101-20  convincing evidence whether a violation within the jurisdiction of
 101-21  the commission has occurred.  (V.A.C.S. Art. 6252-9d.1, Sec.
 101-22  1.22(a).)
 101-23        Sec. 571.130.  FORMAL HEARING:  SUBPOENAS AND WITNESSES.  (a)
 101-24  A subpoena or other request to testify shall be served sufficiently
 101-25  in advance of the scheduled appearance at a formal hearing to allow
 101-26  a reasonable period, as determined by the commission, for the
 101-27  person subpoenaed to prepare for the hearing and to employ counsel
  102-1  if desired.
  102-2        (b)  Except as provided by Section 571.131(a)(1), the
  102-3  commission may order that a person may not, except as specifically
  102-4  authorized by the presiding officer, make public the name of a
  102-5  witness subpoenaed by the commission before the date of that
  102-6  witness's scheduled appearance.
  102-7        (c)  A witness may read a written statement or present a
  102-8  brief oral opening statement at a formal hearing.
  102-9        (d)  A person whose name is mentioned or who is identified or
 102-10  referred to in testimony or in statements made by a commission
 102-11  member, staff member, or witness and who reasonably believes that
 102-12  the statement tends to adversely affect the person's reputation
 102-13  may:
 102-14              (1)  request to appear personally before the commission
 102-15  to testify in the person's own behalf; or
 102-16              (2)  file a sworn statement of facts relevant to the
 102-17  testimony or statement that the person believes adversely affects
 102-18  the person's reputation.
 102-19        (e)  A witness who testifies at a formal hearing must be
 102-20  sworn.  (V.A.C.S. Art. 6252-9d.1, Secs. 1.22(b)-(e), (h).)
 102-21        Sec. 571.131.  FORMAL HEARING:  PROCEDURE.  (a)  Not later
 102-22  than the fifth business day before the date of a scheduled formal
 102-23  hearing or on the granting of a motion for discovery by the
 102-24  respondent, the commission shall provide to the complainant, if
 102-25  any, and to the respondent:
 102-26              (1)  a list of proposed witnesses to be called at the
 102-27  hearing;
  103-1              (2)  copies of all documents expected to be introduced
  103-2  as exhibits at the hearing; and
  103-3              (3)  a brief statement as to the nature of the
  103-4  testimony expected to be given by each witness to be called at the
  103-5  hearing.
  103-6        (b)  The respondent may not be compelled to give evidence or
  103-7  testimony that violates the respondent's right against
  103-8  self-incrimination under the United States Constitution or the
  103-9  Texas Constitution.
 103-10        (c)  The commission shall adopt rules governing discovery,
 103-11  hearings, and related procedures consistent with this chapter and
 103-12  Chapter 2001.  (V.A.C.S. Art. 6252-9d.1, Secs. 1.22(f), (g), (i).)
 103-13        Sec. 571.132.  FORMAL HEARING:  RESOLUTION.  (a)  Not later
 103-14  than the 30th business day after the date the formal hearing is
 103-15  completed, the commission by motion shall issue:
 103-16              (1)  a final decision stating the resolution of the
 103-17  formal hearing; and
 103-18              (2)  a written report stating in detail the
 103-19  commission's findings of fact, conclusions of law, and
 103-20  recommendation of criminal referral or imposition of a civil
 103-21  penalty, if any.
 103-22        (b)  The motion must be adopted by record vote of at least
 103-23  six members if the final decision is that a violation has occurred
 103-24  or by five members if the final decision is that a violation has
 103-25  not occurred.
 103-26        (c)  Not later than the fifth business day after the date the
 103-27  commission issues the final decision and written report, the
  104-1  commission shall:
  104-2              (1)  send a copy of the decision and report to the
  104-3  complainant, if any, and to the respondent; and
  104-4              (2)  make a copy of the decision and report available
  104-5  to the public during reasonable business hours.  (V.A.C.S. Art.
  104-6  6252-9d.1, Sec. 1.23.)
  104-7        Sec. 571.133.  APPEAL OF FINAL DECISION.  (a)  To appeal a
  104-8  final decision of the commission, a person may file a petition in a
  104-9  district court in Travis County or in the county in which the
 104-10  respondent resides.
 104-11        (b)  The petition must be filed not later than the 30th
 104-12  business day after the date the person received the decision.
 104-13        (c)  Not later than the 30th day after the date on which the
 104-14  petition is filed, the respondent may request that the appeal be
 104-15  transferred to a district court in Travis County or in the county
 104-16  in which the respondent resides, as appropriate.  The court in
 104-17  which the appeal is originally filed shall transfer the appeal to a
 104-18  district court in the other county on receipt of the request.
 104-19        (d)  An appeal brought under this section is not limited to
 104-20  questions of law, and the substantial evidence rule does not apply.
 104-21  The action shall be determined by trial de novo.  The reviewing
 104-22  court shall try all issues of fact and law in the manner applicable
 104-23  to other civil suits in this state but may not admit in evidence
 104-24  the fact of prior action by the commission or the nature of that
 104-25  action, except to the limited extent necessary to show compliance
 104-26  with statutory provisions that vest jurisdiction in the court.  A
 104-27  party is entitled, on demand, to a jury determination of any issue
  105-1  of fact on which a jury determination is available in other civil
  105-2  suits in this state.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.24.)
  105-3        Sec. 571.134.  DELAY OF REFERRAL.  If an alleged violation
  105-4  involves an election in which the alleged violator is a candidate,
  105-5  a candidate's campaign treasurer, or the campaign treasurer of a
  105-6  political committee supporting or opposing a candidate and the
  105-7  complaint is filed within 60 days before the date of the election,
  105-8  the commission shall delay referral until:
  105-9              (1)  the day after election day;
 105-10              (2)  the day after runoff election day if an ensuing
 105-11  runoff involving the alleged violator is held; or
 105-12              (3)  the day after general election day if the election
 105-13  involved in the violation is a primary election and the alleged
 105-14  violator is involved in the succeeding general election.  (V.A.C.S.
 105-15  Art. 6252-9d.1, Sec. 1.26.)
 105-16        Sec. 571.135.  PUBLIC INTEREST INFORMATION; STATUS OF
 105-17  COMPLAINT.   (a)  The commission shall prepare information of
 105-18  public interest describing the functions of the commission and the
 105-19  procedures by which sworn or other complaints are filed with and
 105-20  resolved by the commission.  The commission shall make the
 105-21  information available to the public and appropriate state agencies.
 105-22        (b)  The commission shall keep an information file about each
 105-23  sworn or other complaint filed with the commission.  In addition to
 105-24  the notice required by Sections 571.124-571.132, the commission, at
 105-25  least quarterly and until final disposition of a complaint, shall
 105-26  notify the complainant and the respondent, if any, of the status of
 105-27  the sworn or other complaint.  (V.A.C.S. Art. 6252-9d.1, Sec.
  106-1  1.27.)
  106-2        Sec. 571.136.  EXTENSION OF DEADLINE.  The commission may, on
  106-3  its own motion or on the reasonable request of a respondent, extend
  106-4  any deadline for action relating to a sworn complaint, motion,
  106-5  preliminary review, informal hearing, or formal hearing.  (V.A.C.S.
  106-6  Art. 6252-9d.1, Sec. 1.25(b).)
  106-7        Sec. 571.137.  SUBPOENA.   (a)  In connection with an
  106-8  informal or a formal hearing, the commission, as authorized by this
  106-9  chapter, may subpoena and examine witnesses and documents that
 106-10  directly relate to a sworn complaint.  A copy of a subpoena of the
 106-11  commission must be delivered to the respondent.
 106-12        (b)  At the written request of at least six members of the
 106-13  commission, a peace officer shall serve a subpoena of the
 106-14  commission in the manner prescribed for service of a district court
 106-15  subpoena.
 106-16        (c)  If a person to whom a subpoena is directed refuses to
 106-17  appear, refuses to answer inquiries, or fails or refuses to produce
 106-18  books, records, or other documents that were under the person's
 106-19  control when the demand was made, the commission shall report that
 106-20  fact to a district court in Travis County.  The district court
 106-21  shall enforce the subpoena by attachment proceedings for contempt
 106-22  in the same manner as the court enforces a subpoena issued by the
 106-23  court.
 106-24        (d)  A respondent has the right to quash a subpoena as
 106-25  provided by law.
 106-26        (e)  A subpoenaed witness who attends a commission hearing is
 106-27  entitled to the same mileage and per diem payments as a witness who
  107-1  appears before a grand jury.  (V.A.C.S. Art. 6252-9d.1, Secs.
  107-2  1.11(b)(1), 1.14.)
  107-3        Sec. 571.138.  STATUS OF COMPLAINANT.  The complainant is not
  107-4  a party to a preliminary review, informal hearing, or formal
  107-5  hearing under this subchapter.  (V.A.C.S. Art. 6252-9d.1, Sec.
  107-6  1.25(c).)
  107-7        Sec. 571.139.  APPLICABILITY OF OTHER ACTS.  (a)  Except as
  107-8  provided by Section 571.140(b), Chapter 552 does not apply to
  107-9  documents or any additional evidence relating to the processing,
 107-10  preliminary review, informal hearing, or resolution of a sworn
 107-11  complaint or motion.
 107-12        (b)  Chapter 551 does not apply to the processing,
 107-13  preliminary review, informal hearing, or resolution of a sworn
 107-14  complaint or motion, but does apply to a formal hearing held under
 107-15  Sections 571.129-571.131.
 107-16        (c)  Subchapters C-H, Chapter 2001, apply only to a formal
 107-17  hearing under this subchapter, the resolution of a formal hearing,
 107-18  and the appeal of a final order of the commission, and only to the
 107-19  extent consistent with this chapter.  (V.A.C.S. Art. 6252-9d.1,
 107-20  Secs. 1.21(b); 1.36(a) (part), (b).)
 107-21        Sec. 571.140.  CONFIDENTIALITY; OFFENSE.  (a)  Except as
 107-22  provided by Subsection (b), proceedings at a preliminary review or
 107-23  informal hearing performed by the commission, a sworn complaint,
 107-24  and documents and any additional evidence relating to the
 107-25  processing, preliminary review, informal hearing, or resolution of
 107-26  a sworn complaint or motion are confidential and may not be
 107-27  disclosed unless entered into the record of a formal hearing or a
  108-1  judicial proceeding, except that a document or statement that was
  108-2  previously public information remains public information.
  108-3        (b)  An order issued by the commission after the completion
  108-4  of a preliminary review or an informal hearing determining that a
  108-5  violation other than a technical or de minimis violation has
  108-6  occurred is not confidential.
  108-7        (c)  A person commits an offense if the person discloses
  108-8  information made confidential by this section.  An offense under
  108-9  this subsection is a Class A misdemeanor.
 108-10        (d)  In addition to other penalties, a person who discloses
 108-11  information made confidential by this section is civilly liable to
 108-12  the respondent in an amount equal to the greater of $10,000 or the
 108-13  amount of actual damages incurred by the respondent, including
 108-14  court costs and attorney fees.  (V.A.C.S. Art. 6252-9d.1, Secs.
 108-15  1.21(a), (c), (d), (e) (part).)
 108-16           (Sections 571.141-571.170 reserved for expansion)
 108-17                      SUBCHAPTER F.  ENFORCEMENT
 108-18        Sec. 571.171.  INITIATION AND REFERRAL.  On a motion adopted
 108-19  by an affirmative record vote of at least six commission members,
 108-20  the commission may initiate civil enforcement actions and refer
 108-21  matters to the appropriate prosecuting attorney for criminal
 108-22  prosecution.  (V.A.C.S. Art. 6252-9d.1, Sec. 1.11(b)(4).)
 108-23        Sec. 571.172.  ORDER.  The commission may:
 108-24              (1)  issue and enforce a cease and desist order to stop
 108-25  a violation; and
 108-26              (2)  issue an affirmative order to require compliance
 108-27  with the laws administered and enforced by the commission.
  109-1  (V.A.C.S. Art. 6252-9d.1, Secs. 1.28(a)(5), (6).)
  109-2        Sec. 571.173.  CIVIL PENALTY FOR DELAY OR VIOLATION.  The
  109-3  commission may impose a civil penalty of not more than $5,000 or
  109-4  triple the amount at issue under a law administered and enforced by
  109-5  the commission, whichever amount is more, for a delay in complying
  109-6  with a commission order or for a violation of a law administered
  109-7  and enforced by the commission.  (V.A.C.S. Art. 6252-9d.1, Sec.
  109-8  1.28(a)(1).)
  109-9        Sec. 571.174.  DENIAL, SUSPENSION, OR REVOCATION OF LOBBYIST
 109-10  REGISTRATION.  After a criminal conviction for an offense under
 109-11  Chapter 36 of the Penal Code or under Chapter 305, the commission
 109-12  may deny, suspend, or revoke the registration of a person required
 109-13  to be registered under Chapter 305.  (V.A.C.S. Art. 6252-9d.1, Sec.
 109-14  1.28(a)(3).)
 109-15        Sec. 571.175.  NOTIFICATION OF REGULATORY OR SUPERVISORY
 109-16  ENTITY.  The commission may notify the appropriate regulatory or
 109-17  supervisory entity, including any agency, the State Commission on
 109-18  Judicial Conduct, the senate, the house of representatives, or the
 109-19  State Bar of Texas, of a violation of a law administered and
 109-20  enforced by the commission.  (V.A.C.S. Art. 6252-9d.1, Sec.
 109-21  1.28(a)(4).)
 109-22        Sec. 571.176.  CIVIL PENALTY FOR FRIVOLOUS OR BAD-FAITH
 109-23  COMPLAINT.  (a)  The commission may impose a civil penalty of not
 109-24  more than $10,000 for the filing of a frivolous or bad-faith
 109-25  complaint.  In this subsection, "frivolous complaint" means a
 109-26  complaint that is groundless and  brought in bad faith or is
 109-27  groundless and brought for the purpose of harassment.
  110-1        (b)  In addition to other penalties, a person who files a
  110-2  frivolous complaint is civilly liable to the respondent in an
  110-3  amount equal to the greater of $10,000 or the amount of actual
  110-4  damages incurred by the respondent, including court costs and
  110-5  attorney fees.  (V.A.C.S. Art. 6252-9d.1, Secs. 1.21(e) (part);
  110-6  1.28(a)(2), (b).)
  110-7        Sec. 571.177.  FACTORS CONSIDERED FOR ASSESSMENT OF SANCTION.
  110-8  The commission shall consider the following factors in assessing a
  110-9  sanction:
 110-10              (1)  the seriousness of the violation, including the
 110-11  nature, circumstances, consequences, extent, and gravity of the
 110-12  violation;
 110-13              (2)  the history and extent of previous violations;
 110-14              (3)  the demonstrated good faith of the violator,
 110-15  including actions taken to rectify the consequences of the
 110-16  violation;
 110-17              (4)  the penalty necessary to deter future violations;
 110-18  and
 110-19              (5)  any other matters that justice may require.
 110-20  (V.A.C.S. Art. 6252-9d.1, Sec. 1.28(c).)
 110-21       CHAPTER 572.  PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF
 110-22                   CONDUCT, AND CONFLICT OF INTEREST
 110-23                   SUBCHAPTER A.  GENERAL PROVISIONS
 110-24  Sec. 572.001.  POLICY; LEGISLATIVE INTENT
 110-25  Sec. 572.002.  GENERAL DEFINITIONS
 110-26  Sec. 572.003.  DEFINITION:  APPOINTED OFFICER OF MAJOR
 110-27                   STATE AGENCY
  111-1  Sec. 572.004.  DEFINITION:  REGULATION
  111-2  Sec. 572.005.  DETERMINATION OF SUBSTANTIAL INTEREST
  111-3  Sec. 572.006.  DETERMINATION OF DEPENDENT CHILD
  111-4  Sec. 572.007.  PENALTIES IMPOSED BY COMMISSION
  111-5  Sec. 572.008.  VENUE
  111-6           (Sections 572.009-572.020 reserved for expansion)
  111-7              SUBCHAPTER B.  PERSONAL FINANCIAL STATEMENT
  111-8  Sec. 572.021.  FINANCIAL STATEMENT REQUIRED
  111-9  Sec. 572.022.  REPORTING CATEGORIES
 111-10  Sec. 572.023.  CONTENTS OF FINANCIAL STATEMENT
 111-11                   IN GENERAL
 111-12  Sec. 572.024.  INFORMATION ABOUT SERVICES FOR LOBBYISTS
 111-13                   OR LOBBYIST EMPLOYERS
 111-14  Sec. 572.025.  INFORMATION ABOUT LEGISLATORS' REPRESENTATION
 111-15                   BEFORE EXECUTIVE STATE AGENCIES
 111-16  Sec. 572.026.  FILING DATES FOR STATE OFFICERS AND PARTY
 111-17                   CHAIRMEN
 111-18  Sec. 572.027.  FILING DATES FOR CANDIDATES
 111-19  Sec. 572.028.  DUPLICATE STATEMENTS
 111-20  Sec. 572.029.  TIMELINESS OF FILING
 111-21  Sec. 572.030.  PREPARATION AND MAILING OF FORMS
 111-22  Sec. 572.031.  DETERMINATION OF COMPLIANCE WITH SUBCHAPTER
 111-23  Sec. 572.032.  PUBLIC ACCESS TO STATEMENTS
 111-24  Sec. 572.033.  CIVIL PENALTY
 111-25  Sec. 572.034.  CRIMINAL PENALTY
 111-26           (Sections 572.035-572.050 reserved for expansion)
 111-27     SUBCHAPTER C.  STANDARDS OF CONDUCT AND CONFLICT OF INTEREST
  112-1                              PROVISIONS
  112-2  Sec. 572.051.  STANDARDS OF CONDUCT
  112-3  Sec. 572.052.  REPRESENTATION BY LEGISLATORS BEFORE STATE
  112-4                   AGENCIES; CRIMINAL OFFENSE
  112-5  Sec. 572.053.  VOTING BY LEGISLATORS ON CERTAIN MEASURES OR
  112-6                   BILLS; CRIMINAL OFFENSE
  112-7  Sec. 572.054.  REPRESENTATION BY FORMER OFFICER OR EMPLOYEE OF
  112-8                   REGULATORY AGENCY RESTRICTED;
  112-9                   CRIMINAL OFFENSE
 112-10  Sec. 572.055.  CERTAIN SOLICITATIONS OF REGULATED BUSINESS
 112-11                   ENTITIES PROHIBITED; CRIMINAL OFFENSE
 112-12  Sec. 572.056.  CONTRACTS BY STATE OFFICERS WITH GOVERNMENTAL
 112-13                   ENTITIES; CRIMINAL OFFENSE
 112-14  Sec. 572.057.  CERTAIN LEASES PROHIBITED
 112-15  Sec. 572.058.  PRIVATE INTEREST IN MEASURE OR DECISION;
 112-16                   DISCLOSURE; REMOVAL FROM OFFICE FOR
 112-17                   VIOLATION
 112-18       CHAPTER 572.  PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF
 112-19                   CONDUCT, AND CONFLICT OF INTEREST
 112-20                   SUBCHAPTER A.  GENERAL PROVISIONS
 112-21        Sec. 572.001.  POLICY; LEGISLATIVE INTENT.  (a)  It is the
 112-22  policy of this state that a state officer or state employee may not
 112-23  have a direct or indirect interest, including financial and other
 112-24  interests, or engage in a business transaction or professional
 112-25  activity, or incur any obligation of any nature that is in
 112-26  substantial conflict with the proper discharge of the officer's or
 112-27  employee's duties in the public interest.
  113-1        (b)  To implement this policy and to strengthen the faith and
  113-2  confidence of the people of this state in state government, this
  113-3  chapter provides standards of conduct and disclosure requirements
  113-4  to be observed by persons owing a responsibility to the people and
  113-5  government of this state in the performance of their official
  113-6  duties.
  113-7        (c)  It is the intent of the legislature that this chapter
  113-8  serve not only as a guide for official conduct of those persons but
  113-9  also as a basis for discipline of those who refuse to abide by its
 113-10  terms.  (V.A.C.S. Art. 6252-9b, Sec. 1.)
 113-11        Sec. 572.002.  GENERAL DEFINITIONS.  In this chapter:
 113-12              (1)  "Appointed officer" means:
 113-13                    (A)  the secretary of state;
 113-14                    (B)  an individual appointed with the advice and
 113-15  consent of the senate to the governing board of a state-supported
 113-16  institution of higher education;
 113-17                    (C)  an officer of a state agency who is
 113-18  appointed for a  term of office specified by the Texas Constitution
 113-19  or a statute of this state, excluding an appointee to a vacated
 113-20  elective office; or
 113-21                    (D)  an individual who is a member of the
 113-22  governing board or commission of a state agency, who is not
 113-23  appointed, and who is not otherwise:
 113-24                          (i)  an elected officer;
 113-25                          (ii)  an officer described by Paragraphs
 113-26  (A)-(C); or
 113-27                          (iii)  an executive head of a state agency.
  114-1              (2)  "Business entity" means any entity recognized by
  114-2  law through which business for profit is conducted, including a
  114-3  sole proprietorship, partnership, firm, corporation, holding
  114-4  company, joint stock company, receivership, or trust.
  114-5              (3)  "Commission" means the Texas Ethics Commission.
  114-6              (4)  "Elected officer" means:
  114-7                    (A)  a member of the legislature;
  114-8                    (B)  an executive or judicial officer elected in
  114-9  a statewide election;
 114-10                    (C)  a judge of a court of appeals or of a
 114-11  district court;
 114-12                    (D)  a member of the State Board of Education; or
 114-13                    (E)  an individual appointed to fill a vacancy in
 114-14  an office or appointed to a newly created office who, if elected to
 114-15  the office instead of appointed, would be an elected officer under
 114-16  this subdivision.
 114-17              (5)  "Executive head of a state agency" means the
 114-18  director, executive director, commissioner, administrator, chief
 114-19  clerk, or other individual who is appointed by the governing body
 114-20  or highest officer of the state agency to act as the chief
 114-21  executive or administrative officer of the agency and who is not an
 114-22  appointed officer.  The term includes the chancellor or highest
 114-23  executive officer of a university system and the president of a
 114-24  public senior college or university as defined by Section 61.003,
 114-25  Education Code.
 114-26              (6)  "Party chairman" means the state chairman of any
 114-27  political party receiving more than two percent of the vote for
  115-1  governor in the most recent general election.
  115-2              (7)  "Person" means an individual or a business entity.
  115-3              (8)  "Regulatory agency" means any department,
  115-4  commission, board, or other agency, except the secretary of state
  115-5  and the comptroller, that:
  115-6                    (A)  is in the executive branch of state
  115-7  government;
  115-8                    (B)  has authority that is not limited to a
  115-9  geographical portion of the state;
 115-10                    (C)  was created by the Texas Constitution or a
 115-11  statute of this state; and
 115-12                    (D)  has constitutional or statutory authority to
 115-13  engage in regulation.
 115-14              (9)  "Salaried appointed officer" means an appointed
 115-15  officer who receives or is authorized to receive a salary for state
 115-16  service but not a per diem or other form of compensation.
 115-17              (10)  "State agency" means:
 115-18                    (A)  a department, commission, board, office, or
 115-19  other agency that:
 115-20                          (i)  is in the executive branch of state
 115-21  government;
 115-22                          (ii)  has authority that is not limited to
 115-23  a geographical portion of the state; and
 115-24                          (iii)  was created by the Texas
 115-25  Constitution or a statute of this state;
 115-26                    (B)  a university system or an institution of
 115-27  higher education as defined by Section 61.003, Education Code,
  116-1  other than a public junior college; or
  116-2                    (C)  a river authority created under the Texas
  116-3  Constitution or a  statute of this state.
  116-4              (11)  "State employee" means an individual, other than
  116-5  a state officer, who is employed by:
  116-6                    (A)  a state agency;
  116-7                    (B)  the Supreme Court of Texas, the Court of
  116-8  Criminal Appeals of Texas, a court of appeals, or the Texas
  116-9  Judicial Council; or
 116-10                    (C)  either house of the legislature or a
 116-11  legislative agency, council, or committee, including the
 116-12  Legislative Budget Board, the Texas Legislative Council, the State
 116-13  Auditor's Office, and the Legislative Reference Library.
 116-14              (12)  "State officer" means an elected officer, an
 116-15  appointed officer, a salaried appointed officer, an appointed
 116-16  officer of a major state agency, or the executive head of a state
 116-17  agency.  (V.A.C.S. Art. 6252-9b, Secs. 2(1), (2), (3), (4), (6),
 116-18  (7), (8), (9), (11), (13), (15), (16).)
 116-19        Sec. 572.003.  DEFINITION:  APPOINTED OFFICER OF MAJOR STATE
 116-20  AGENCY.  (a)  In this chapter, "appointed officer of a major state
 116-21  agency" means an individual listed in Subsection (b) or (c).
 116-22        (b)  The term means:
 116-23              (1)  the banking commissioner of the Banking Department
 116-24  of Texas;
 116-25              (2)  the fire fighters' pension commissioner;
 116-26              (3)  the director of the Office of Court Administration
 116-27  of the Texas Judicial System;
  117-1              (4)  the chief executive of the Office of Public
  117-2  Utility Counsel;
  117-3              (5)  the executive director of the State Bar of Texas;
  117-4              (6)  the director of the lottery division in the office
  117-5  of the comptroller;
  117-6              (7)  the deputy in charge of the department of security
  117-7  in the lottery division in the office of the comptroller; or
  117-8              (8)  the secretary of state.
  117-9        (c)  The term means a member of:
 117-10              (1)  the Public Utility Commission of Texas;
 117-11              (2)  the Texas Department of Commerce;
 117-12              (3)  the Texas Natural Resource Conservation
 117-13  Commission;
 117-14              (4)  the Texas Alcoholic Beverage Commission;
 117-15              (5)  the Finance Commission of Texas;
 117-16              (6)  the General Services Commission;
 117-17              (7)  the Texas Board of Criminal Justice;
 117-18              (8)  the board of trustees of the Employees Retirement
 117-19  System of Texas;
 117-20              (9)  the Texas Transportation Commission;
 117-21              (10)  the Texas Workers' Compensation Commission;
 117-22              (11)  the State Board of Insurance;
 117-23              (12)  the Parks and Wildlife Commission;
 117-24              (13)  the Public Safety Commission;
 117-25              (14)  the Texas Ethics Commission;
 117-26              (15)  the State Securities Board;
 117-27              (16)  the Texas Water Development Board;
  118-1              (17)  the governing board of a public senior college or
  118-2  university as defined by Section 61.003, Education Code, or of The
  118-3  University of Texas Southwestern Medical Center at Dallas, The
  118-4  University of Texas Medical Branch at Galveston, The University of
  118-5  Texas Health Science Center at Houston, The University of Texas
  118-6  Health Science Center at San Antonio, The University of Texas
  118-7  System Cancer Center, The University of Texas Health Science Center
  118-8  at Tyler, Texas College of Osteopathic Medicine, Texas Tech
  118-9  University Health Sciences Center, Texas State Technical
 118-10  Institute--Amarillo, Texas State Technical Institute--Harlingen,
 118-11  Texas State Technical Institute--Sweetwater, or Texas State
 118-12  Technical Institute--Waco;
 118-13              (18)  the Texas Higher Education Coordinating Board;
 118-14              (19)  the Texas Employment Commission;
 118-15              (20)  the State Banking Board;
 118-16              (21)  the board of trustees of the Teachers Retirement
 118-17  System of Texas;
 118-18              (22)  the Credit Union Commission;
 118-19              (23)  the School Land Board;
 118-20              (24)  the board of the Texas Department of Housing and
 118-21  Community Affairs;
 118-22              (25)  the Texas Racing Commission;
 118-23              (26)  the State Board of Dental Examiners;
 118-24              (27)  the Texas Board of Licensure for Nursing Home
 118-25  Administrators;
 118-26              (28)  the Texas State Board of Medical Examiners;
 118-27              (29)  the Board of Pardons and Paroles;
  119-1              (30)  the Texas State Board of Pharmacy;
  119-2              (31)  the Department of Information Resources governing
  119-3  board;
  119-4              (32)  the Motor Vehicle Board;
  119-5              (33)  the Texas Real Estate Commission;
  119-6              (34)  the board of directors of the State Bar of Texas;
  119-7              (35)  the Bond Review Board;
  119-8              (36)  the Texas Board of Health;
  119-9              (37)  the Texas Board of Mental Health and Mental
 119-10  Retardation;
 119-11              (38)  the Texas Board on Aging;
 119-12              (39)  the Texas Board of Human Services;
 119-13              (40)  the Texas Funeral Service Commission; or
 119-14              (41)  the board of directors of a river authority
 119-15  created under the Texas Constitution or a statute of this state.
 119-16        (d)  The term includes the successor in function as provided
 119-17  by law to an office listed in Subsection (b) or (c) if that office
 119-18  is abolished.  (V.A.C.S. Art. 6252-9b, Secs. 2(5)(A), (B).)
 119-19        Sec. 572.004.  DEFINITION:  REGULATION.  In this chapter,
 119-20  "regulation" means rulemaking, adjudication, or licensing.  In this
 119-21  definition:
 119-22              (1)  "Adjudication" means the process of an agency for
 119-23  formulating an order.
 119-24              (2)  "License" includes all or part of an agency
 119-25  permit, certificate, approval, registration, charter, membership,
 119-26  statutory exemption, or other form of permission.
 119-27              (3)  "Licensing" includes the process of an agency
  120-1  concerning the grant, renewal, denial, revocation, suspension,
  120-2  annulment, withdrawal, limitation, amendment, modification, or
  120-3  conditioning of a license.
  120-4              (4)  "Order" means all or part of a final disposition,
  120-5  whether affirmative, negative, injunctive, or declaratory in form,
  120-6  of an agency in a matter other than rulemaking but including
  120-7  licensing.
  120-8              (5)  "Rule" means all or part of an agency statement of
  120-9  general or particular applicability and future effect designed to
 120-10  implement, interpret, or prescribe law or policy or to describe the
 120-11  organization, procedure, or practice requirements of an agency.
 120-12  (V.A.C.S. Art. 6252-9b, Sec. 2(10).)
 120-13        Sec. 572.005.  DETERMINATION OF SUBSTANTIAL INTEREST.  An
 120-14  individual has a substantial interest in a business entity if the
 120-15  individual:
 120-16              (1)  has a controlling interest in the business entity;
 120-17              (2)  owns more than 10 percent of the voting interest
 120-18  in the business entity;
 120-19              (3)  owns more than $25,000 of the fair market value of
 120-20  the business entity;
 120-21              (4)  has a direct or indirect participating interest by
 120-22  shares, stock, or otherwise, regardless of whether voting rights
 120-23  are included, in more than 10 percent of the profits, proceeds, or
 120-24  capital gains of the business entity;
 120-25              (5)  is a member of the board of directors or other
 120-26  governing board of the business entity;
 120-27              (6)  serves as an elected officer of the business
  121-1  entity; or
  121-2              (7)  is an employee of the business entity.  (V.A.C.S.
  121-3  Art. 6252-9b, Sec. 2(12).)
  121-4        Sec. 572.006.  DETERMINATION OF DEPENDENT CHILD.  An
  121-5  individual's child, including an adopted child or stepchild, is the
  121-6  individual's dependent during a calendar year in which the
  121-7  individual provides more than 50 percent of the child's support.
  121-8  (V.A.C.S. Art. 6252-9b, Sec. 2(14).)
  121-9        Sec. 572.007.  PENALTIES IMPOSED BY COMMISSION.  This chapter
 121-10  does not prohibit the imposition of civil penalties by the
 121-11  commission in addition to criminal penalties or other sanctions
 121-12  imposed by law.  (V.A.C.S. Art. 6252-9b, Sec. 12B.)
 121-13        Sec. 572.008.  VENUE.  An offense under this chapter,
 121-14  including perjury, may be prosecuted in Travis County or in any
 121-15  other county in which it may be prosecuted under the Code of
 121-16  Criminal Procedure.  (V.A.C.S. Art. 6252-9b, Sec. 11.)
 121-17           (Sections 572.009-572.020 reserved for expansion)
 121-18              SUBCHAPTER B.  PERSONAL FINANCIAL STATEMENT
 121-19        Sec. 572.021.  FINANCIAL STATEMENT REQUIRED.  A state
 121-20  officer, a partisan or independent candidate for an office as an
 121-21  elected officer, and a party chairman shall file with the
 121-22  commission a verified financial statement complying with Sections
 121-23  572.022-572.025.  (V.A.C.S. Art. 6252-9b, Secs. 3(a) (part), (d)
 121-24  (part); 4(d).)
 121-25        Sec. 572.022.  REPORTING CATEGORIES.  (a)  If an amount in a
 121-26  financial statement is required to be reported by category, the
 121-27  individual filing the statement shall report whether the amount is:
  122-1              (1)  less than $5,000;
  122-2              (2)  at least $5,000 but less than $10,000;
  122-3              (3)  at least $10,000 but less than $25,000; or
  122-4              (4)  $25,000 or more.
  122-5        (b)  The individual filing the statement shall report an
  122-6  amount of stock by category of number of shares instead of by
  122-7  category of dollar value and shall report whether the amount is:
  122-8              (1)  less than 100 shares;
  122-9              (2)  at least 100 but less than 500 shares;
 122-10              (3)  at least 500 but less than 1,000 shares;
 122-11              (4)  at least 1,000 but less than 5,000 shares;
 122-12              (5)  at least 5,000 but less than 10,000 shares; or
 122-13              (6)  10,000 shares or more.
 122-14        (c)  The individual filing the statement shall report a
 122-15  description of real property by the number of lots or number of
 122-16  acres, as applicable, in each county, the name of the county, and
 122-17  the names of all persons retaining an interest in the property,
 122-18  excluding an interest that is a severed mineral interest.
 122-19  (V.A.C.S. Art. 6252-9b, Sec. 4(b).)
 122-20        Sec. 572.023.  CONTENTS OF FINANCIAL STATEMENT IN GENERAL.
 122-21  (a)  A financial statement must include an account of the financial
 122-22  activity of the individual required by this subchapter to file a
 122-23  financial statement and an account of the financial activity of the
 122-24  individual's spouse and dependent children if the individual had
 122-25  actual control over that activity for the preceding calendar year.
 122-26        (b)  The account of financial activity consists of:
 122-27              (1)  a list of all sources of occupational income,
  123-1  identified by employer, or if self-employed, by the nature of the
  123-2  occupation, including identification of a person or other
  123-3  organization from which the individual or a business in which the
  123-4  individual has a substantial interest received a fee as a retainer
  123-5  for a claim on future services in case of need, as distinguished
  123-6  from a fee for services on a matter specified at the time of
  123-7  contracting for or receiving the fee, if professional or
  123-8  occupational services are not actually performed during the
  123-9  reporting period equal to or in excess of the amount of the
 123-10  retainer, and the category of the amount of the fee;
 123-11              (2)  identification by name and the category of the
 123-12  number of shares of stock of any business entity held or acquired,
 123-13  and if sold, the category of the amount of net gain or loss
 123-14  realized from the sale;
 123-15              (3)  a list of all bonds, notes, and other commercial
 123-16  paper held or acquired, and if sold, the category of the amount of
 123-17  net gain or loss realized from the sale;
 123-18              (4)  identification of each source and the category of
 123-19  the amount of income in excess of $500 derived from each source
 123-20  from interest, dividends, royalties, and rents;
 123-21              (5)  identification of each guarantor of a loan and
 123-22  identification of each person or financial institution to whom a
 123-23  personal note or notes or lease agreement for a total financial
 123-24  liability in excess of $1,000 existed at any time during the year,
 123-25  and the category of the amount of the liability;
 123-26              (6)  identification by description of all beneficial
 123-27  interests in real property and business entities held or acquired,
  124-1  and if sold, the category of the amount of the net gain or loss
  124-2  realized from the sale;
  124-3              (7)  identification of a person or other organization
  124-4  from which the individual or the individual's spouse or dependent
  124-5  children received a gift of anything of value in excess of $250 and
  124-6  a description of each gift, except:
  124-7                    (A)  a gift received from an individual related
  124-8  to the individual at any time within the second degree by
  124-9  consanguinity or affinity, as determined under Subchapter A,
 124-10  Chapter 573;
 124-11                    (B)  a political contribution that was reported
 124-12  as required by law; and
 124-13                    (C)  an expenditure required to be reported by a
 124-14  person required to be registered under Chapter 305;
 124-15              (8)  identification of the source and the category of
 124-16  the amount of all income received as beneficiary of a trust and
 124-17  identification of each asset, if known to the beneficiary, from
 124-18  which income was received by the beneficiary in excess of $500;
 124-19              (9)  identification by description and the category of
 124-20  the amount of all assets and liabilities of a corporation or
 124-21  partnership in which 50 percent or more of the outstanding
 124-22  ownership was held, acquired, or sold;
 124-23              (10)  a list of all boards of directors of which the
 124-24  individual is a member and executive positions that the individual
 124-25  holds in corporations, firms, partnerships, or proprietorships,
 124-26  stating the name of each corporation, firm, partnership, or
 124-27  proprietorship and the position held;
  125-1              (11)  identification of any person providing
  125-2  transportation, meals, or lodging expenses permitted under Section
  125-3  36.07(b), Penal Code, and the amount of those expenses, other than
  125-4  expenditures required to be reported under Chapter 305; and
  125-5              (12)  any partnership, joint venture, or other business
  125-6  association, excluding a publicly held corporation, in which both
  125-7  the state officer and a person registered under Chapter 305 have an
  125-8  interest.  (V.A.C.S. Art. 6252-9b, Secs. 4(a), (c).)
  125-9        Sec. 572.024.  INFORMATION ABOUT SERVICES FOR LOBBYISTS OR
 125-10  LOBBYIST EMPLOYERS.  A state officer who receives a fee for
 125-11  services rendered by the officer to or on behalf of a person
 125-12  required to be registered under Chapter 305, or to or on behalf of
 125-13  a person or entity that the officer actually knows directly
 125-14  compensates or reimburses a person required to be registered under
 125-15  Chapter 305, shall report on the financial statement the name of
 125-16  each person or entity for which the services were rendered and the
 125-17  category of the amount of each fee.  (V.A.C.S. Art. 6252-9b, Sec.
 125-18  4(f).)
 125-19        Sec. 572.025.  INFORMATION ABOUT LEGISLATORS' REPRESENTATION
 125-20  BEFORE EXECUTIVE STATE AGENCIES.  A member of the legislature who
 125-21  represents another person for compensation before an executive
 125-22  state agency shall report on the financial statement:
 125-23              (1)  the name of the agency;
 125-24              (2)  the person represented by the member; and
 125-25              (3)  the category of the amount of compensation
 125-26  received by the member for that representation.  (V.A.C.S. Art.
 125-27  6252-9b, Sec. 4(g).)
  126-1        Sec. 572.026.  FILING DATES FOR STATE OFFICERS AND PARTY
  126-2  CHAIRMEN.  (a)  Not later than April 30 each year, a state officer
  126-3  or a party chairman shall file the financial statement as required
  126-4  by this subchapter.
  126-5        (b)  An individual who is appointed to serve as a salaried
  126-6  appointed officer or an appointed officer of a major state agency
  126-7  or who is appointed to fill a vacancy in an elective office shall
  126-8  file a financial statement not later than the 30th day after the
  126-9  date of appointment or the date of qualification for the office, or
 126-10  if confirmation by the senate is required, before the confirmation,
 126-11  whichever date is earlier.
 126-12        (c)  An individual who is appointed or employed as the
 126-13  executive head of a state agency shall file a financial statement
 126-14  not later than the 45th day after the date on which the individual
 126-15  assumes the duties of the position.  A state agency shall
 126-16  immediately notify the commission of the appointment or employment
 126-17  of an executive head of the agency.
 126-18        (d)  An individual required to file a financial statement
 126-19  under Subsection (a) may request the commission to grant an
 126-20  extension of not more than 60 days for filing the statement.  The
 126-21  commission shall grant the request if it is received before the
 126-22  filing deadline or if a timely filing or request for extension is
 126-23  prevented because of physical or mental incapacity.  The commission
 126-24  may not grant more than one extension to an individual in one year
 126-25  except for good cause shown.  (V.A.C.S. Art. 6252-9b, Secs. 3(a),
 126-26  (b), (c), (h).)
 126-27        Sec. 572.027.  FILING DATES FOR CANDIDATES.  (a)  Not later
  127-1  than the 40th day after the date of the regular filing deadline for
  127-2  an application for a place on the ballot in the general primary
  127-3  election, an individual who is a partisan or independent candidate
  127-4  for an office as an elected officer shall file the financial
  127-5  statement required by this subchapter.
  127-6        (b)  If the deadline under which a candidate files an
  127-7  application for a place on the ballot, other than the regular
  127-8  filing deadline for an independent candidate, or files a
  127-9  declaration of write-in candidacy falls after the date of the
 127-10  regular filing deadline for candidates in the general primary
 127-11  election, the candidate shall file the financial statement not
 127-12  later than the 30th day after that later deadline.  However, if
 127-13  that deadline falls not later than the 35th day after the date on
 127-14  which the election in which the candidate is running, the candidate
 127-15  shall file the statement not later than the fifth day before the
 127-16  date of that election.
 127-17        (c)  An individual who is a candidate in a special election
 127-18  for an office as an elected officer shall file the financial
 127-19  statement not later than the fifth day before the date of that
 127-20  election.
 127-21        (d)  An individual nominated to fill a vacancy in a
 127-22  nomination as a candidate for a position as an elected officer
 127-23  under Chapter 145, Election Code, shall file the financial
 127-24  statement not later than the 15th day after the date the
 127-25  certificate of nomination required by Section 145.037 or 145.038,
 127-26  Election Code, is filed.  (V.A.C.S. Art. 6252-9b, Secs. 3(d)
 127-27  (part), (f) (part).)
  128-1        Sec. 572.028.  DUPLICATE STATEMENTS.  If an individual has
  128-2  filed a financial statement under one provision of this subchapter
  128-3  covering the preceding calendar year, the individual is not
  128-4  required to file a financial statement required under another
  128-5  provision of this subchapter to cover that same year if, before the
  128-6  deadline for filing the statement under the other provision, the
  128-7  individual notifies the commission in writing that the individual
  128-8  has already filed a financial statement under the provision
  128-9  specified.  (V.A.C.S. Art. 6252-9b, Sec. 3(g).)
 128-10        Sec. 572.029.  TIMELINESS OF FILING.  (a)  The deadline for
 128-11  filing a financial statement required by this subchapter is 5 p.m.
 128-12  of the last day designated in the applicable provision for filing
 128-13  the statement.
 128-14        (b)  If the last day for filing the financial statement is a
 128-15  Saturday, Sunday, or holiday included under Subchapter B, Chapter
 128-16  662, the statement is timely if filed on the next day that is not a
 128-17  Saturday, Sunday, or listed holiday.
 128-18        (c)  A financial statement is timely filed if it is properly
 128-19  addressed and placed in the United States Post Office or in the
 128-20  hands of a common or contract carrier not later than the last day
 128-21  for filing the financial statement.  The post office cancellation
 128-22  mark or the receipt mark of a common or contract carrier is prima
 128-23  facie evidence of the date the statement was deposited with the
 128-24  post office or carrier.  The individual filing the statement may
 128-25  show by competent evidence that the actual date of posting was
 128-26  different from that shown by the marks.  (V.A.C.S. Art. 6252-9b,
 128-27  Sec. 3(i).)
  129-1        Sec. 572.030.  PREPARATION AND MAILING OF FORMS.  (a)  The
  129-2  commission shall design forms that may be used for filing the
  129-3  financial statement under this subchapter.
  129-4        (b)  The commission shall mail two copies of the financial
  129-5  statement form to each individual required to file under this
  129-6  subchapter.
  129-7        (c)  The copies must be mailed:
  129-8              (1)  before the 30th day before the deadline for filing
  129-9  the financial statement under Section 572.026(a) or (c), except as
 129-10  otherwise provided by this subsection;
 129-11              (2)  not later than the 15th day after the applicable
 129-12  filing deadline for candidates required to file under Section
 129-13  572.027(a), (b), or (c);
 129-14              (3)  not later than the the seventh day after the date
 129-15  of appointment for individuals required to file under Section
 129-16  572.026(b), or if the legislature is in session, sooner if
 129-17  possible; and
 129-18              (4)  not later than the fifth day after the date the
 129-19  certificate of nomination is filed for candidates required to file
 129-20  under Section 574.027(d).  (V.A.C.S. Art. 6252-9b, Secs. 3(e), (f)
 129-21  (part); 4(e).)
 129-22        Sec. 572.031.  DETERMINATION OF COMPLIANCE WITH SUBCHAPTER.
 129-23  (a)  The commission shall conduct a continuing survey to determine
 129-24  whether all individuals required to file financial statements under
 129-25  this subchapter have filed statements in compliance with this
 129-26  subchapter.
 129-27        (b)  If the commission determines that an individual has
  130-1  failed to file the statement in compliance with this subchapter,
  130-2  the commission shall send a written statement of the determination
  130-3  to the appropriate prosecuting attorneys of the state.  (V.A.C.S.
  130-4  Art. 6252-9b, Sec. 12.)
  130-5        Sec. 572.032.  PUBLIC ACCESS TO STATEMENTS.  (a)  Financial
  130-6  statements filed under this subchapter are public records.  The
  130-7  commission shall maintain the statements in separate alphabetical
  130-8  files and in a manner that is accessible to the public during
  130-9  regular office hours.
 130-10        (b)  During the one-year period following the filing of a
 130-11  financial statement, each time a person requests to see the
 130-12  financial statement, excluding the commission or a commission
 130-13  employee acting on official business, the commission shall place in
 130-14  the file a statement of the person's name and address, whom the
 130-15  person represents, and the date of the request.  The commission
 130-16  shall retain that statement in the file for one year after the date
 130-17  the requested financial statement is filed.
 130-18        (c)  After the second anniversary of the date the individual
 130-19  ceases to be a state officer, the commission may, and on
 130-20  notification from the former state officer shall, destroy each
 130-21  financial statement filed by the state officer.  (V.A.C.S. Art.
 130-22  6252-9b, Sec. 9.)
 130-23        Sec. 572.033.  CIVIL PENALTY.  (a)  The commission shall
 130-24  determine from any available evidence whether a statement required
 130-25  to be filed under this subchapter is late.  On making a
 130-26  determination that the statement is late, the commission shall
 130-27  immediately mail a notice of the determination to the individual
  131-1  responsible for filing the statement and to the appropriate
  131-2  attorney for the state.
  131-3        (b)  If a statement is determined to be late, the individual
  131-4  responsible for filing the statement is civilly liable to the state
  131-5  for an amount determined by commission rule, but not to exceed $100
  131-6  for each day that the statement is late.  If a statement is more
  131-7  than 30 days late, the commission shall issue a warning of
  131-8  liability by registered mail to the individual responsible for the
  131-9  filing.  If the penalty is not paid before the 10th day after the
 131-10  date on which the warning is received, the individual is liable for
 131-11  a civil penalty in an amount determined by commission rule, but not
 131-12  to exceed $10,000.
 131-13        (c)  This section is cumulative of any other available
 131-14  sanction for a late filing of a sworn statement.  (V.A.C.S. Art.
 131-15  6252-9b, Secs. 12A(a), (b), (d).)
 131-16        Sec. 572.034.  CRIMINAL PENALTY.  (a)  An individual commits
 131-17  an offense if the individual is a state officer, candidate, or
 131-18  party chairman and knowingly and wilfully fails to file a financial
 131-19  statement as required by this subchapter.
 131-20        (b)  An offense under this section is a Class B misdemeanor.
 131-21        (c)  In a prosecution for failure to file a financial
 131-22  statement under this section, it is a defense that the individual
 131-23  did not receive copies of the financial statement form required by
 131-24  this subchapter to be mailed to the individual.  (V.A.C.S. Art.
 131-25  6252-9b, Sec. 10.)
 131-26           (Sections 572.035-572.050 reserved for expansion)
 131-27           SUBCHAPTER C.  STANDARDS OF CONDUCT AND CONFLICT
  132-1                        OF INTEREST PROVISIONS
  132-2        Sec. 572.051.  STANDARDS OF CONDUCT.  A state officer or
  132-3  employee should not:
  132-4              (1)  accept or solicit any gift, favor, or service that
  132-5  might reasonably tend to influence the officer or employee in the
  132-6  discharge of official duties or that the officer or employee knows
  132-7  or should know is being offered with the intent to influence the
  132-8  officer's or employee's official conduct;
  132-9              (2)  accept other employment or engage in a business or
 132-10  professional activity that the officer or employee might reasonably
 132-11  expect would require or induce the officer or employee to disclose
 132-12  confidential information acquired by reason of the official
 132-13  position;
 132-14              (3)  accept other employment or compensation that could
 132-15  reasonably be expected to impair the officer's or employee's
 132-16  independence of judgment in the performance of the officer's or
 132-17  employee's official duties;
 132-18              (4)  make personal investments that could reasonably be
 132-19  expected to create a substantial conflict between the officer's or
 132-20  employee's private interest and the public interest; or
 132-21              (5)  intentionally or knowingly solicit, accept, or
 132-22  agree to accept any benefit for having exercised the officer's or
 132-23  employee's official powers or performed the officer's or employee's
 132-24  official duties in favor of another.  (V.A.C.S. Art. 6252-9b, Sec.
 132-25  8.)
 132-26        Sec. 572.052.  REPRESENTATION BY LEGISLATORS BEFORE STATE
 132-27  AGENCIES; CRIMINAL OFFENSE.  (a)  A member of the legislature may
  133-1  not, for compensation, represent another person before a state
  133-2  agency in the executive branch of state government unless:
  133-3              (1)  the representation is made in a proceeding that is
  133-4  adversary in nature or in another public hearing that is a matter
  133-5  of record; or
  133-6              (2)  the representation involves the filing of
  133-7  documents, contacts with the agency, or other relations, that
  133-8  involve only ministerial acts on the part of the commission,
  133-9  agency, board, department, or officer.
 133-10        (b)  A member of the legislature commits an offense if the
 133-11  member violates this section.  An offense under this subsection is
 133-12  a Class A misdemeanor.  (V.A.C.S. Art. 6252-9b, Secs. 7(a), (e).)
 133-13        Sec. 572.053.  VOTING BY LEGISLATORS ON CERTAIN MEASURES OR
 133-14  BILLS; CRIMINAL OFFENSE.  (a)  A member of the legislature may not
 133-15  vote on a measure or a bill, other than a measure that will affect
 133-16  an entire class of business entities, that will directly benefit a
 133-17  specific business transaction of a business entity in which the
 133-18  member has a controlling interest.
 133-19        (b)  In this section, "controlling interest" includes:
 133-20              (1)  an ownership interest or participating interest by
 133-21  virtue of shares, stock, or otherwise that exceeds 10 percent;
 133-22              (2)  membership on the board of directors or other
 133-23  governing body of the business entity; or
 133-24              (3)  service as an officer of the business entity.
 133-25        (c)  A member of the legislature commits an offense if the
 133-26  member violates this section.  An offense under this subsection is
 133-27  a Class A misdemeanor.  (V.A.C.S. Art. 6252-9b, Secs. 7(b), (c),
  134-1  (d), (e).)
  134-2        Sec. 572.054.  REPRESENTATION BY FORMER OFFICER OR EMPLOYEE
  134-3  OF REGULATORY AGENCY RESTRICTED; CRIMINAL OFFENSE.  (a)  A former
  134-4  member of the governing body or a former executive head of a
  134-5  regulatory agency may not make any communication to or appearance
  134-6  before an officer or employee of the agency in which the member or
  134-7  executive head served before the second anniversary of the date the
  134-8  member or executive head ceased to be a member of the governing
  134-9  body or the executive head of the agency if the communication or
 134-10  appearance is made:
 134-11              (1)  with the intent to influence; and
 134-12              (2)  on behalf of any person in connection with any
 134-13  matter on which the person seeks official action.
 134-14        (b)  A former state officer or employee of a regulatory
 134-15  agency who ceases service or employment with that agency on or
 134-16  after January 1, 1992, may not represent any person or receive
 134-17  compensation for services rendered on behalf of any person
 134-18  regarding a particular matter in which the former officer or
 134-19  employee participated during the period of state service or
 134-20  employment, either through personal involvement or because the case
 134-21  or proceeding was a matter within the officer's or employee's
 134-22  official responsibility.
 134-23        (c)  Subsection (b) applies only to:
 134-24              (1)  a state officer of a regulatory agency; or
 134-25              (2)  a state employee of a regulatory agency who is
 134-26  compensated, as of the last date of state employment, at or above
 134-27  the amount prescribed by the General Appropriations Act for step 1,
  135-1  salary group 17, of the position classification salary schedule,
  135-2  including an employee who is exempt from the state's position
  135-3  classification plan.
  135-4        (d)  Subsection (b) does not apply to a rulemaking proceeding
  135-5  that was concluded before the officer's or employee's service or
  135-6  employment ceased.
  135-7        (e)  Other law that restricts the representation of a person
  135-8  before a particular state agency by a former state officer or
  135-9  employee of that agency prevails over this section.
 135-10        (f)  An individual commits an offense if the individual
 135-11  violates this section.  An offense under this subsection is a Class
 135-12  A misdemeanor.
 135-13        (g)  In this section, the comptroller and the secretary of
 135-14  state are not excluded from the definition of "regulatory agency."
 135-15        (h)  In this section:
 135-16              (1)  "Participated" means to have taken action as an
 135-17  officer or employee through decision, approval, disapproval,
 135-18  recommendation, giving advice, investigation, or similar action.
 135-19              (2)  "Particular matter" means a specific
 135-20  investigation, application, request for a ruling or determination,
 135-21  rulemaking proceeding, contract, claim, charge, accusation, arrest,
 135-22  or judicial or other proceeding.   (V.A.C.S. Art. 6252-9b, Sec.
 135-23  7A.)
 135-24        Sec. 572.055.  CERTAIN SOLICITATIONS OF REGULATED BUSINESS
 135-25  ENTITIES PROHIBITED; CRIMINAL OFFENSE.  (a)  An association or
 135-26  organization of employees of a regulatory agency may not solicit,
 135-27  accept, or agree to accept anything of value from a business entity
  136-1  regulated by that agency and from which the business entity must
  136-2  obtain a permit to operate that business in this state or from an
  136-3  individual directly or indirectly connected with that business
  136-4  entity.
  136-5        (b)  A business entity regulated by a regulatory agency and
  136-6  from which the business entity must obtain a permit to operate that
  136-7  business in this state, or an individual directly or indirectly
  136-8  connected with that business entity, may not offer, confer, or
  136-9  agree to confer on an association or organization of employees of
 136-10  that agency anything of value.
 136-11        (c)  This section does not apply to an agency regulating the
 136-12  operation or inspection of motor vehicles or an agency charged with
 136-13  enforcing the parks and wildlife laws of this state.
 136-14        (d)  A person commits an offense if the person intentionally
 136-15  or knowingly violates this section.  An offense under this
 136-16  subsection is a Class A misdemeanor.  (V.A.C.S. Art. 6252-9b, Sec.
 136-17  7B.)
 136-18        Sec. 572.056.  CONTRACTS BY STATE OFFICERS WITH GOVERNMENTAL
 136-19  ENTITIES; CRIMINAL OFFENSE.  (a)  A state officer may not solicit
 136-20  or accept from a governmental entity a commission, fee, bonus,
 136-21  retainer, or rebate that is compensation for the officer's personal
 136-22  solicitation for the award of a contract for services or sale of
 136-23  goods to a governmental entity.
 136-24        (b)  This section does not apply to:
 136-25              (1)  a contract that is awarded by competitive bid as
 136-26  provided by law and that is not otherwise prohibited by law; or
 136-27              (2)  a court appointment.
  137-1        (c)  In this section, "governmental entity" means the state,
  137-2  a political subdivision of the state, or a governmental entity
  137-3  created under the Texas Constitution or a statute of this state.
  137-4        (d)  A state officer who violates this section commits an
  137-5  offense.  An offense under this subsection is a Class A
  137-6  misdemeanor.  (V.A.C.S. Art. 6252-9b, Secs. 7C(a), (b).)
  137-7        Sec. 572.057.  CERTAIN LEASES PROHIBITED.  (a)  A member of
  137-8  the legislature, an executive or judicial officer elected in a
  137-9  statewide election, or a business entity in which the legislator or
 137-10  officer has a substantial interest may not lease any office space
 137-11  or other real property to the state, a state agency, the
 137-12  legislature or a legislative agency, the Supreme Court of Texas,
 137-13  the Court of Criminal Appeals, or a state judicial agency.
 137-14        (b)  A lease made in violation of Subsection (a) is void.
 137-15        (c)  This section does not apply to an individual who is an
 137-16  elected officer on June 16, 1989, for as long as the officer holds
 137-17  that office.  (V.A.C.S. Art. 6252-9b, Sec. 8A.)
 137-18        Sec. 572.058.  PRIVATE INTEREST IN MEASURE OR DECISION;
 137-19  DISCLOSURE; REMOVAL FROM OFFICE FOR VIOLATION.  (a)  An elected or
 137-20  appointed officer, other than an officer subject to impeachment
 137-21  under Article XV, Section 2, of the Texas Constitution, who is a
 137-22  member of a board or commission having policy direction over a
 137-23  state agency and who has a personal or private interest in a
 137-24  measure, proposal, or decision pending before the board or
 137-25  commission shall publicly disclose the fact to the board or
 137-26  commission in a meeting called and held in compliance with Chapter
 137-27  551.  The officer may not vote or otherwise participate in the
  138-1  decision.  The disclosure shall be entered in the minutes of the
  138-2  meeting.
  138-3        (b)  An individual who violates this section is subject to
  138-4  removal from office on the petition of the attorney general on the
  138-5  attorney general's own initiative or on the relation of a resident
  138-6  or of any other member of the board or commission.  The suit must
  138-7  be brought in a district court of Travis County or of the county
  138-8  where the violation is alleged to have been committed.
  138-9        (c)  If the court or jury finds from a preponderance of the
 138-10  evidence that the defendant violated this section and that an
 138-11  ordinary prudent person would have known the individual's conduct
 138-12  to be a violation of this section, the court shall enter judgment
 138-13  removing the defendant from office.
 138-14        (d)  A suit under this section must be brought before the
 138-15  second anniversary of the date the violation is alleged to have
 138-16  been committed, or the suit is barred.
 138-17        (e)  The remedy provided by this section is cumulative of
 138-18  other methods of removal from office provided by the Texas
 138-19  Constitution or a statute of this state.
 138-20        (f)  In this section, "personal or private interest" has the
 138-21  same meaning as is given to it under Article III, Section 22, of
 138-22  the Texas Constitution, governing the conduct of members of the
 138-23  legislature.  For purposes of this section, an individual does not
 138-24  have a "personal or private interest" in a measure, proposal, or
 138-25  decision if the individual is engaged in a profession, trade, or
 138-26  occupation and the individual's interest is the same as all others
 138-27  similarly engaged in the profession, trade, or occupation.
  139-1  (V.A.C.S. Art. 6252-9b, Sec. 6.)
  139-2     CHAPTER 573.  DEGREES OF RELATIONSHIP; NEPOTISM PROHIBITIONS
  139-3                   SUBCHAPTER A.  GENERAL PROVISIONS
  139-4  Sec. 573.001.  DEFINITIONS
  139-5  Sec. 573.002.  DEGREES OF RELATIONSHIP
  139-6           (Sections 573.003-573.020 reserved for expansion)
  139-7     SUBCHAPTER B.  RELATIONSHIPS BY CONSANGUINITY OR BY AFFINITY
  139-8  Sec. 573.021.  METHOD OF COMPUTING DEGREE OF RELATIONSHIP
  139-9  Sec. 573.022.  DETERMINATION OF CONSANGUINITY
 139-10  Sec. 573.023.  COMPUTATION OF DEGREE OF CONSANGUINITY
 139-11  Sec. 573.024.  DETERMINATION OF AFFINITY
 139-12  Sec. 573.025.  COMPUTATION OF DEGREE OF AFFINITY
 139-13           (Sections 573.026-573.040 reserved for expansion)
 139-14                 SUBCHAPTER C.  NEPOTISM PROHIBITIONS
 139-15  Sec. 573.041.  PROHIBITION APPLICABLE TO PUBLIC OFFICIAL
 139-16  Sec. 573.042.  PROHIBITION APPLICABLE TO CANDIDATE
 139-17  Sec. 573.043.  PROHIBITION APPLICABLE TO DISTRICT JUDGE
 139-18  Sec. 573.044.  PROHIBITION APPLICABLE TO TRADING
 139-19           (Sections 573.045-573.060 reserved for expansion)
 139-20                       SUBCHAPTER D.  EXCEPTIONS
 139-21  Sec. 573.061.  GENERAL EXCEPTIONS
 139-22  Sec. 573.062.  CONTINUOUS EMPLOYMENT
 139-23           (Sections 573.063-573.080 reserved for expansion)
 139-24                      SUBCHAPTER E.  ENFORCEMENT
 139-25  Sec. 573.081.  REMOVAL IN GENERAL
 139-26  Sec. 573.082.  REMOVAL BY QUO WARRANTO PROCEEDING
 139-27  Sec. 573.083.  WITHHOLDING PAYMENT OF COMPENSATION
  140-1  Sec. 573.084.  CRIMINAL PENALTY
  140-2     CHAPTER 573.  DEGREES OF RELATIONSHIP; NEPOTISM PROHIBITIONS
  140-3                   SUBCHAPTER A.  GENERAL PROVISIONS
  140-4        Sec. 573.001.  DEFINITIONS.  In this chapter:
  140-5              (1)  "Candidate" has the meaning assigned by Section
  140-6  251.001, Election Code.
  140-7              (2)  "Position" includes an office, clerkship,
  140-8  employment, or duty.
  140-9              (3)  "Public official" means:
 140-10                    (A)  an officer of this state or of a district,
 140-11  county, municipality, precinct, school district, or other political
 140-12  subdivision of this state;
 140-13                    (B)  an officer or member of a board of this
 140-14  state or of a district, county, municipality, school district, or
 140-15  other political subdivision of this state; or
 140-16                    (C)  a judge of a court created by or under a
 140-17  statute of this state.  (V.A.C.S. Art. 5996a, Secs. 1(a) (part),
 140-18  2(a) (part); New.)
 140-19        Sec. 573.002.  DEGREES OF RELATIONSHIP.  Except as provided
 140-20  by Section 573.043, this chapter applies to relationships within
 140-21  the third degree by consanguinity or within the second degree by
 140-22  affinity.  (V.A.C.S. Art. 5996a, Sec. 1(a) (part).)
 140-23           (Sections 573.003-573.020 reserved for expansion)
 140-24     SUBCHAPTER B.  RELATIONSHIPS BY CONSANGUINITY OR BY AFFINITY
 140-25        Sec. 573.021.  METHOD OF COMPUTING DEGREE OF RELATIONSHIP.
 140-26  The degree of a relationship is computed by the civil law method.
 140-27  (V.A.C.S. Art. 5996h, Sec. 1.)
  141-1        Sec. 573.022.  DETERMINATION OF CONSANGUINITY.  (a)  Two
  141-2  individuals are related to each other by consanguinity if:
  141-3              (1)  one is a descendant of the other; or
  141-4              (2)  they share a common ancestor.
  141-5        (b)  An adopted child is considered to be a child of the
  141-6  adoptive parent for this purpose.  (V.A.C.S. Art. 5996h,
  141-7  Sec. 2(a).)
  141-8        Sec. 573.023.  COMPUTATION OF DEGREE OF CONSANGUINITY.
  141-9  (a)  The degree of relationship by consanguinity between an
 141-10  individual and the individual's descendant is determined by the
 141-11  number of generations that separate them.  A parent and child are
 141-12  related in the first degree, a grandparent and grandchild in the
 141-13  second degree, a great-grandparent and great-grandchild in the
 141-14  third degree and so on.
 141-15        (b)  If an individual and the individual's relative are
 141-16  related by consanguinity, but neither is descended from the other,
 141-17  the degree of relationship is determined by adding:
 141-18              (1)  the number of generations between the individual
 141-19  and the nearest common ancestor of the individual and the
 141-20  individual's relative; and
 141-21              (2)  the number of generations between the relative and
 141-22  the nearest common ancestor.
 141-23        (c)  An individual's relatives within the third degree by
 141-24  consanguinity are the individual's:
 141-25              (1)  parent or child (relatives in the first degree);
 141-26              (2)  brother, sister, grandparent, or grandchild
 141-27  (relatives in the second degree); and
  142-1              (3)  great-grandparent, great-grandchild, aunt who is a
  142-2  sister of a parent of the individual, uncle who is a brother of a
  142-3  parent of the individual, nephew who is a child of a brother or
  142-4  sister of the individual, or niece who is a child of a brother or
  142-5  sister of the individual (relatives in the third degree).
  142-6  (V.A.C.S. Art. 5996h, Secs. 2(b), (c), 4(a).)
  142-7        Sec. 573.024.  DETERMINATION OF AFFINITY.  (a)  Two
  142-8  individuals are related to each other by affinity if:
  142-9              (1)  they are married to each other; or
 142-10              (2)  the spouse of one of the individuals is related by
 142-11  consanguinity to the other individual.
 142-12        (b)  The ending of a marriage by divorce or the death of a
 142-13  spouse ends relationships by affinity created by that marriage
 142-14  unless a child of that marriage is living, in which case the
 142-15  marriage is considered to continue as long as a child of that
 142-16  marriage lives.  (V.A.C.S. Art. 5996h, Secs. 3(a), (b).)
 142-17        Sec. 573.025.  COMPUTATION OF DEGREE OF AFFINITY.  (a)  A
 142-18  husband and wife are related to each other in the first degree by
 142-19  affinity.  For other relationships by affinity, the degree of
 142-20  relationship is the same as the degree of the underlying
 142-21  relationship by consanguinity.  For example:  if two individuals
 142-22  are related to each other in the second degree by consanguinity,
 142-23  the spouse of one of the individuals is related to the other
 142-24  individual in the second degree by affinity.
 142-25        (b)  An individual's relatives within the third degree by
 142-26  affinity are:
 142-27              (1)  anyone related by consanguinity to the
  143-1  individual's spouse in one of the ways named in Section 573.023(c);
  143-2  and
  143-3              (2)  the spouse of anyone related to the individual by
  143-4  consanguinity in one of the ways named in Section 573.023(c).
  143-5  (V.A.C.S. Art. 5996h, Secs. 3(c), 4(b).)
  143-6           (Sections 573.026-573.040 reserved for expansion)
  143-7                 SUBCHAPTER C.  NEPOTISM PROHIBITIONS
  143-8        Sec. 573.041.  PROHIBITION APPLICABLE TO PUBLIC OFFICIAL.  A
  143-9  public official may not appoint, confirm the appointment of, or
 143-10  vote for the appointment or confirmation of the appointment of an
 143-11  individual to a position that is to be directly or indirectly
 143-12  compensated from public funds or fees of office if:
 143-13              (1)  the individual is related to the public official
 143-14  within a degree described by Section 573.002; or
 143-15              (2)  the public official holds the appointment or
 143-16  confirmation authority as a member of a state or local board, the
 143-17  legislature, or a court and the individual is related to another
 143-18  member of that board, legislature, or court within a degree
 143-19  described by Section 573.002.  (V.A.C.S. Art. 5996a, Sec. 1(a).)
 143-20        Sec. 573.042.  PROHIBITION APPLICABLE TO CANDIDATE.  (a)  A
 143-21  candidate may not take an affirmative action to influence the
 143-22  following individuals regarding the appointment, reappointment,
 143-23  confirmation of the appointment or reappointment, employment,
 143-24  reemployment, change in status, compensation, or dismissal of
 143-25  another individual related to the candidate within a degree
 143-26  described by Section 573.002:
 143-27              (1)  an employee of the office to which the candidate
  144-1  seeks election; or
  144-2              (2)  an employee or another officer of the governmental
  144-3  body to which the candidate seeks election, if the office the
  144-4  candidate seeks is one office of a multimember governmental body.
  144-5        (b)  The prohibition imposed by this section does not apply
  144-6  to a candidate's actions taken regarding a bona fide class or
  144-7  category of employees or prospective employees.  (V.A.C.S. Art.
  144-8  5996a, Sec. 2.)
  144-9        Sec. 573.043.  PROHIBITION APPLICABLE TO DISTRICT JUDGE.  A
 144-10  district judge may not appoint as official stenographer of the
 144-11  judge's district an individual related to the judge or to the
 144-12  district attorney of the district within the third degree.
 144-13  (V.A.C.S. Art. 5996e.)
 144-14        Sec. 573.044.  PROHIBITION APPLICABLE TO TRADING.  A public
 144-15  official may not appoint, confirm the appointment of, or vote for
 144-16  the appointment or confirmation of the appointment of an individual
 144-17  to a position in which the individual's services are under the
 144-18  public official's direction or control and that is to be
 144-19  compensated directly or indirectly from public funds or fees of
 144-20  office if:
 144-21              (1)  the individual is related to another public
 144-22  official within a degree described by Section 573.002; and
 144-23              (2)  the appointment, confirmation of the appointment,
 144-24  or vote for appointment or confirmation of the appointment would be
 144-25  carried out in whole or partial consideration for the other public
 144-26  official appointing, confirming the appointment, or voting for the
 144-27  appointment or confirmation of the appointment of an individual who
  145-1  is related to the first public official within a degree described
  145-2  by Section 573.002.  (V.A.C.S. Art. 5996c.)
  145-3           (Sections 573.045-573.060 reserved for expansion)
  145-4                       SUBCHAPTER D.  EXCEPTIONS
  145-5        Sec. 573.061.  GENERAL EXCEPTIONS.  Section 573.041 does not
  145-6  apply to:
  145-7              (1)  an appointment to the office of a notary public or
  145-8  to the confirmation of that appointment;
  145-9              (2)  an appointment of a page, secretary, attendant, or
 145-10  other employee by the legislature for attendance on any member of
 145-11  the legislature who, because of physical infirmities, is required
 145-12  to have a personal attendant;
 145-13              (3)  a confirmation of the appointment of an appointee
 145-14  appointed to a first term on a date when no individual related to
 145-15  the appointee within a degree described by Section 573.002 was a
 145-16  member of or a candidate for the legislature, or confirmation on
 145-17  reappointment of the appointee to any subsequent consecutive term;
 145-18  or
 145-19              (4)  an appointment or employment of a substitute
 145-20  teacher or bus driver by a school district if:
 145-21                    (A)  the district is located wholly in a county
 145-22  with a population of less than 35,000; or
 145-23                    (B)  the district is located in more than one
 145-24  county and the county in which the largest part of the district is
 145-25  located has a population of less than 35,000.  (V.A.C.S. Art.
 145-26  5996g, Sec. 1.)
 145-27        Sec. 573.062.  CONTINUOUS EMPLOYMENT.  (a)  A nepotism
  146-1  prohibition prescribed by Section 573.041 or by a municipal charter
  146-2  or ordinance does not apply to an appointment, confirmation of an
  146-3  appointment, or vote for an appointment or confirmation of an
  146-4  appointment of an individual to a position if:
  146-5              (1)  the individual is employed in the position
  146-6  immediately before the election or appointment of the public
  146-7  official to whom the individual is related in a prohibited degree;
  146-8  and
  146-9              (2)  that prior employment of the individual is
 146-10  continuous for at least:
 146-11                    (A)  30 days, if the public official is
 146-12  appointed;
 146-13                    (B)  six months, if the public official is
 146-14  elected at an election other than the general election for state
 146-15  and county officers; or
 146-16                    (C)  one year, if the public official is elected
 146-17  at the general election for state and county officers.
 146-18        (b)  If, under Subsection (a), an individual continues in a
 146-19  position, the public official to whom the individual is related in
 146-20  a prohibited degree may not participate in any deliberation or
 146-21  voting on the appointment, reappointment, confirmation of the
 146-22  appointment or reappointment, employment, reemployment, change in
 146-23  status, compensation, or dismissal of the individual if that action
 146-24  applies only to the individual and is not taken regarding a bona
 146-25  fide class or category of employees.  (V.A.C.S. Art. 5996a, Secs.
 146-26  1(b), (c).)
 146-27           (Sections 573.063-573.080 reserved for expansion)
  147-1                      SUBCHAPTER E.  ENFORCEMENT
  147-2        Sec. 573.081.  REMOVAL IN GENERAL.  (a)  An individual who
  147-3  violates Subchapter C or Section 573.062(b) shall be removed from
  147-4  the individual's position.  The removal must be made in accordance
  147-5  with the removal provisions in the constitution of this state, if
  147-6  applicable.  If a provision of the constitution does not govern the
  147-7  removal, the removal must be by a quo warranto proceeding.
  147-8        (b)  A removal from a position shall be made immediately and
  147-9  summarily by the original appointing authority if a criminal
 147-10  conviction against the appointee for a violation of Subchapter C or
 147-11  Section 573.062(b) becomes final.  If the removal is not made
 147-12  within 30 days after the date the conviction becomes final, the
 147-13  individual holding the position may be removed under Subsection
 147-14  (a).  (V.A.C.S. Art. 5996i.)
 147-15        Sec. 573.082.  REMOVAL BY QUO WARRANTO PROCEEDING.  (a)  A
 147-16  quo warranto proceeding under this chapter must be brought by the
 147-17  attorney general in a district court in Travis County or in a
 147-18  district court of the county in which the defendant resides.
 147-19        (b)  The district or county attorney of the county in which a
 147-20  suit is filed under this section shall assist the attorney general
 147-21  at the attorney general's discretion.  (V.A.C.S. Art. 5997.)
 147-22        Sec. 573.083.  WITHHOLDING PAYMENT OF COMPENSATION.  A public
 147-23  official may not approve an account or draw or authorize the
 147-24  drawing of a warrant or order to pay the compensation of an
 147-25  ineligible individual if the official knows the individual is
 147-26  ineligible.  (V.A.C.S. Art. 5996d.)
 147-27        Sec. 573.084.  CRIMINAL PENALTY.  (a)  An individual commits
  148-1  an offense involving official misconduct if the individual violates
  148-2  Subchapter C or Section 573.062(b) or 573.083.
  148-3        (b)  An offense under this section is a misdemeanor
  148-4  punishable by a fine not less than $100 or more than $1,000.
  148-5  (V.A.C.S. Art. 5996f.)
  148-6                   CHAPTER 574.  DUAL OFFICEHOLDING
  148-7  Sec. 574.001.  FINDING OF CONSTITUTIONAL COMPLIANCE
  148-8  Sec. 574.002.  RECORD
  148-9  Sec. 574.003.  RULES
 148-10                   CHAPTER 574.  DUAL OFFICEHOLDING
 148-11        Sec. 574.001.  FINDING OF CONSTITUTIONAL COMPLIANCE.  A
 148-12  nonelective state officer may not accept an offer to serve in
 148-13  another nonelective office unless the officer obtains from the
 148-14  governing body or, if there is not a governing body, the executive
 148-15  head of the agency, division, department, or institution with which
 148-16  the officer is associated, a finding that the officer has satisfied
 148-17  Article XVI, Section 40, of the Texas Constitution.  (V.A.C.S. Art.
 148-18  6252-9a, Sec. 2 (part).)
 148-19        Sec. 574.002.  RECORD.  A governing body or executive head
 148-20  shall make a record of:
 148-21              (1)  a finding under Section 574.001; and
 148-22              (2)  any compensation that the nonelective officer is
 148-23  to receive from holding the additional office, including salary,
 148-24  bonus, or per diem payment.  (V.A.C.S. Art. 6252-9a, Sec. 2
 148-25  (part).)
 148-26        Sec. 574.003.  RULES.  A governing body or executive head
 148-27  shall adopt rules to implement this chapter.  (V.A.C.S. Art.
  149-1  6252-9a, Sec. 3.)
  149-2                TITLE 6.  PUBLIC OFFICERS AND EMPLOYEES
  149-3        SUBTITLE A.  PROVISIONS GENERALLY APPLICABLE TO PUBLIC
  149-4                        OFFICERS AND EMPLOYEES
  149-5  Chapter 601.  ELECTION AND OFFICE HOLDING
  149-6  Chapter 602.  ADMINISTRATION OF OATHS
  149-7  Chapter 603.  PROVISION OF DOCUMENTS AND FEES OF OFFICE
  149-8  Chapter 604.  OFFICIAL BONDS
  149-9  Chapter 605.  EIGHT-HOUR WORKDAY
 149-10  Chapter 606.  SOCIAL SECURITY
 149-11  Chapter 607.  BENEFITS RELATING TO CERTAIN CONTAGIOUS DISEASES
 149-12  Chapter 608.  PAYROLL DEDUCTION FOR SAVINGS BONDS
 149-13  Chapter 609.  DEFERRED COMPENSATION PLANS
 149-14  Chapter 610.  CHILD CARE EXPENSE SALARY REDUCTIONS
 149-15  Chapter 611.  LODGING, MEAL, AND TRAVEL REIMBURSEMENT
 149-16  Chapter 612.  LIABILITY INSURANCE
 149-17  Chapter 613.  REEMPLOYMENT FOLLOWING MILITARY SERVICE
 149-18  Chapter 614.  PEACE OFFICERS AND FIRE FIGHTERS
 149-19  Chapter 615.  FINANCIAL ASSISTANCE TO SURVIVORS OF CERTAIN LAW
 149-20                  ENFORCEMENT OFFICERS, FIRE FIGHTERS, AND OTHERS
 149-21  Chapter 616.  EMERGENCY INTERIM PUBLIC OFFICE SUCCESSION
 149-22  Chapter 617.  COLLECTIVE BARGAINING AND STRIKES
 149-23               (Chapters 618-650 reserved for expansion)
 149-24               SUBTITLE B.  STATE OFFICERS AND EMPLOYEES
 149-25  Chapter 651.  GENERAL PROVISIONS
 149-26  Chapter 652.  VACANCIES
 149-27  Chapter 653.  BONDS COVERING CERTAIN STATE OFFICERS AND EMPLOYEES
  150-1  Chapter 654.  POSITION CLASSIFICATION
  150-2  Chapter 655.  MERIT SELECTION
  150-3  Chapter 656.  JOB NOTICES AND TRAINING
  150-4  Chapter 657.  VETERAN'S EMPLOYMENT PREFERENCES
  150-5  Chapter 658.  HOURS OF LABOR
  150-6  Chapter 659.  COMPENSATION
  150-7  Chapter 660.  TRAVEL EXPENSES
  150-8  Chapter 661.  LEAVE
  150-9  Chapter 662.  HOLIDAYS AND RECOGNITION DAYS
 150-10  Chapter 663.  CHILD CARE SERVICES FOR STATE EMPLOYEES
 150-11  Chapter 664.  STATE EMPLOYEES HEALTH FITNESS AND EDUCATION
 150-12  Chapter 665.  IMPEACHMENT AND REMOVAL
 150-13                TITLE 6.  PUBLIC OFFICERS AND EMPLOYEES
 150-14        SUBTITLE A.  PROVISIONS GENERALLY APPLICABLE TO PUBLIC
 150-15                        OFFICERS AND EMPLOYEES
 150-16               CHAPTER 601.  ELECTION AND OFFICE HOLDING
 150-17  Sec. 601.001.  DELIVERY OF CERTAIN BOOKS, PAPERS, AND DOCUMENTS
 150-18                   TO SUCCESSOR
 150-19  Sec. 601.002.  PERFORMANCE OF DUTIES BY FIRST ASSISTANT OR
 150-20                   CHIEF DEPUTY
 150-21  Sec. 601.003.  REGULAR TERM OF STATE, DISTRICT, COUNTY, OR
 150-22                   PRECINCT OFFICE
 150-23  Sec. 601.004.  PERSON ELECTED TO UNEXPIRED TERM OF STATE,
 150-24                   DISTRICT, COUNTY, OR PRECINCT OFFICE
 150-25  Sec. 601.005.  GOVERNOR TO COMMISSION STATE OR COUNTY
 150-26                   OFFICERS
 150-27  Sec. 601.006.  CERTIFIED STATEMENT OF PERSONS ELECTED TO COUNTY
  151-1                   OR PRECINCT OFFICES
  151-2  Sec. 601.007.  EVIDENCE OF QUALIFICATION FOR OFFICE
  151-3  Sec. 601.008.  UNAUTHORIZED OFFICERS
  151-4                TITLE 6.  PUBLIC OFFICERS AND EMPLOYEES
  151-5        SUBTITLE A.  PROVISIONS GENERALLY APPLICABLE TO PUBLIC
  151-6                        OFFICERS AND EMPLOYEES
  151-7               CHAPTER 601.  ELECTION AND OFFICE HOLDING
  151-8        Sec. 601.001.  DELIVERY OF CERTAIN BOOKS, PAPERS, AND
  151-9  DOCUMENTS TO SUCCESSOR.  (a)  On leaving office, an officer shall
 151-10  deliver all books, papers, and documents relating to the office to
 151-11  the officer's successor.
 151-12        (b)  In this section, "officer" includes:
 151-13              (1)  each officer selected under the laws of this
 151-14  state; and
 151-15              (2)  a member of a board or commission created by state
 151-16  law.  (V.A.C.S. Art. 18 (part).)
 151-17        Sec. 601.002.  PERFORMANCE OF DUTIES BY FIRST ASSISTANT OR
 151-18  CHIEF DEPUTY.  (a)  The first assistant or chief deputy of a public
 151-19  office in which a physical vacancy occurs shall conduct the affairs
 151-20  of the office until a successor qualifies for the office.
 151-21        (b)  The authority of a first assistant or chief deputy to
 151-22  discharge the duties of an office under Subsection (a) ceases on
 151-23  the earliest of:
 151-24              (1)  the time the successor to the office qualifies for
 151-25  the office;
 151-26              (2)  the end of the last day of any session of the
 151-27  legislature occurring during the vacancy if the successor to the
  152-1  office is subject to senate confirmation; or
  152-2              (3)  the end of the 21st day after the day the person
  152-3  began discharging the duties of the office if the legislature is in
  152-4  session on that day and the successor to the office is subject to
  152-5  senate confirmation.
  152-6        (c)  This section does not apply to a vacancy on a board or
  152-7  commission.  (V.A.C.S. Art. 6252-1.)
  152-8        Sec. 601.003.  REGULAR TERM OF STATE, DISTRICT, COUNTY, OR
  152-9  PRECINCT OFFICE.  (a)  The regular term of an elective state,
 152-10  district, county, or precinct office begins on January 1 of the
 152-11  year following the general election for state and county officers.
 152-12        (b)  A person elected to a regular term of office shall
 152-13  qualify and assume the duties of the office on, or as soon as
 152-14  possible after, January 1 of the year following the person's
 152-15  election.
 152-16        (c)  This section does not apply to the office of governor,
 152-17  lieutenant governor, state senator, or state representative.
 152-18  (V.A.C.S. Art. 17 (part).)
 152-19        Sec. 601.004.  PERSON ELECTED TO UNEXPIRED TERM OF STATE,
 152-20  DISTRICT, COUNTY, OR PRECINCT OFFICE.  A person who receives a
 152-21  certificate of election to an unexpired term of an office is
 152-22  entitled to qualify for and assume the duties of the office
 152-23  immediately and shall take office as soon as possible after the
 152-24  receipt of the certificate of election.  (V.A.C.S. Art. 17 (part).)
 152-25        Sec. 601.005.  GOVERNOR TO COMMISSION STATE OR COUNTY
 152-26  OFFICERS.  (a)  The governor shall issue a commission to each state
 152-27  or county officer, other than the governor, the lieutenant
  153-1  governor, a state senator, or a state representative, who qualifies
  153-2  for office.
  153-3        (b)  The secretary of state shall perform ministerial duties
  153-4  incidental to administer this section.  (V.A.C.S. Art. 16b.)
  153-5        Sec. 601.006.  CERTIFIED STATEMENT OF PERSONS ELECTED TO
  153-6  COUNTY OR PRECINCT OFFICES.  (a)  On or immediately after January 1
  153-7  after a general election for state and county officers, each county
  153-8  clerk shall deliver to the secretary of state a certified statement
  153-9  that contains for each person elected to a county or precinct
 153-10  office in the election:
 153-11              (1)  the name of the person;
 153-12              (2)  the office to which the person was elected; and
 153-13              (3)  the date the person qualified for the office.
 153-14        (b)  The secretary of state shall prescribe necessary forms
 153-15  for the statement and instructions for delivery of the statement.
 153-16  (V.A.C.S. Art. 16a.)
 153-17        Sec. 601.007.  EVIDENCE OF QUALIFICATION FOR OFFICE.  On
 153-18  demand of a citizen of this state, the comptroller, the treasurer,
 153-19  a commissioners court, a county treasurer, or any other officer of
 153-20  the state or of a municipality who is authorized by law to make,
 153-21  order, or audit payment to an officer of the state, of a county, or
 153-22  of a municipality of compensation, fees, or perquisites for
 153-23  official services shall, before making, ordering, or auditing the
 153-24  payment, require the officer to produce:
 153-25              (1)  the certificate of election or of appointment to
 153-26  the office that is required by law to be issued to the officer; or
 153-27              (2)  a certified copy of the judgment or decree that:
  154-1                    (A)  was issued by a court of competent
  154-2  jurisdiction; and
  154-3                    (B)  determined the officer's claim to the
  154-4  office.  (V.A.C.S. Art. 6827.)
  154-5        Sec. 601.008.  UNAUTHORIZED OFFICERS.  (a)  An officer or
  154-6  court of this state or of a municipality may not make, order,
  154-7  allow, or audit payment of a person's claim for compensation, fees,
  154-8  perquisites, or services as an officer of the state or of the
  154-9  municipality unless the person:
 154-10              (1)  has been:
 154-11                    (A)  lawfully elected as the officer and
 154-12  determined to be elected to the office by the canvass conducted of
 154-13  the election for the office;
 154-14                    (B)  appointed as the officer by the lawful
 154-15  appointing authority; or
 154-16                    (C)  adjudged to be the officer by a state court
 154-17  of competent jurisdiction; and
 154-18              (2)  has qualified as the officer under law.
 154-19        (b)  A person who has not been elected or appointed to an
 154-20  office or has not qualified for office, as prescribed by Subsection
 154-21  (a), is not entitled to:
 154-22              (1)  receive payment for services as the officer; or
 154-23              (2)  exercise the powers or jurisdiction of the office.
 154-24        (c)  The official acts of a person who claims a right to
 154-25  exercise the power or jurisdiction of an office contrary to this
 154-26  section are void.  (V.A.C.S. Art. 6828.)
 154-27                 CHAPTER 602.  ADMINISTRATION OF OATHS
  155-1  Sec. 602.001.  DEFINITION
  155-2  Sec. 602.002.  OATH MADE IN TEXAS
  155-3  Sec. 602.003.  OATH MADE OUTSIDE TEXAS BUT
  155-4                   INSIDE UNITED STATES
  155-5  Sec. 602.004.  OATH MADE OUTSIDE UNITED STATES
  155-6  Sec. 602.005.  OATH MADE BY MEMBER OF ARMED FORCES
  155-7                   OR BY MEMBER'S SPOUSE
  155-8  Sec. 602.006.  OATH OF OFFICE
  155-9                 CHAPTER 602.  ADMINISTRATION OF OATHS
 155-10        Sec. 602.001.  DEFINITION.  In this chapter, "oath" includes
 155-11  the oath in an affidavit.  (New.)
 155-12        Sec. 602.002.  Oath Made in Texas.  An oath made in this
 155-13  state may be administered and a certificate of the fact given by:
 155-14              (1)  a judge, clerk, or commissioner of a court of
 155-15  record;
 155-16              (2)  a justice of the peace or a clerk of a justice
 155-17  court;
 155-18              (3)  a notary public;
 155-19              (4)  a member of a board or commission created by a law
 155-20  of this state, in a matter pertaining to a duty of the board or
 155-21  commission;
 155-22              (5)  a person employed by the Texas Ethics Commission
 155-23  who has a duty related to a report required by Title 15, Election
 155-24  Code, in a matter pertaining to that duty;
 155-25              (6)  the secretary of state;
 155-26              (7)  the lieutenant governor;
 155-27              (8)  the speaker of the house of representatives; or
  156-1              (9)  the governor.  (V.A.C.S. Art. 26, Sec. 1.)
  156-2        Sec. 602.003.  Oath Made Outside Texas but Inside United
  156-3  States.  An oath made outside this state but inside the United
  156-4  States or its territories may be administered and a certificate of
  156-5  the fact given by:
  156-6              (1)  a clerk of a court of record having a seal;
  156-7              (2)  a commissioner of deeds appointed under a law of
  156-8  this state; or
  156-9              (3)  a notary public.  (V.A.C.S. Art. 26, Sec. 2.)
 156-10        Sec. 602.004.  Oath Made Outside United States.  An oath made
 156-11  outside the United States and its territories may be administered
 156-12  and a certificate of the fact given by:
 156-13              (1)  a minister, commissioner, or charge d'affaires of
 156-14  the United States who resides in and is accredited to the country
 156-15  where the oath or affidavit is made;
 156-16              (2)  a consul-general, consul, vice-consul, commercial
 156-17  agent, vice-commercial agent, deputy consul, or consular agent of
 156-18  the United States who resides in the country where the oath or
 156-19  affidavit is made; or
 156-20              (3)  a notary public.  (V.A.C.S. Art. 26, Sec. 3.)
 156-21        Sec. 602.005.  Oath Made by Member of Armed Forces or by
 156-22  Member's Spouse.  (a)  A commissioned officer of the United States
 156-23  armed forces or of a United States armed forces auxiliary may
 156-24  administer an oath made by a member of the armed forces, a member
 156-25  of an armed forces auxiliary, or a member's spouse and may give a
 156-26  certificate of the fact.
 156-27        (b)  Unless there is pleading or evidence to the contrary, a
  157-1  certificate signed under this section that is offered in evidence
  157-2  establishes that:
  157-3              (1)  the commissioned officer who signed was a
  157-4  commissioned officer on the date the officer signed; and
  157-5              (2)  the person who made the oath or affidavit was a
  157-6  member of the armed forces or an armed forces auxiliary or was a
  157-7  member's spouse when the oath was made.
  157-8        (c)  An oath is not invalid because the commissioned officer
  157-9  who certified the oath did not attach an official seal to the
 157-10  certificate.  (V.A.C.S. Art. 26, Sec. 4.)
 157-11        Sec. 602.006.  Oath of Office.  An oath of office may be
 157-12  administered and a certificate of the fact given by a member of the
 157-13  legislature.  (V.A.C.S. Art. 26, Sec. 5.)
 157-14        CHAPTER 603.  PROVISION OF DOCUMENTS AND FEES OF OFFICE
 157-15  Sec. 603.001.  DEFINITION
 157-16  Sec. 603.002.  COPIES OF DOCUMENTS AVAILABLE TO PUBLIC
 157-17  Sec. 603.003.  COPIES FOR CLAIMS RELATING TO MILITARY
 157-18                   SERVICE
 157-19  Sec. 603.004.  FEES FOR CERTIFICATES OR COPIES OF DOCUMENTS
 157-20  Sec. 603.005.  FEE FOR ACKNOWLEDGMENT
 157-21  Sec. 603.006.  FEE BOOK
 157-22  Sec. 603.007.  BILL FOR FEES
 157-23  Sec. 603.008.  POSTING OF FEES REQUIRED
 157-24  Sec. 603.009.  DISPOSITION OF FEES
 157-25  Sec. 603.010.  OVERCHARGING OF FEES; PENALTY
 157-26        CHAPTER 603.  PROVISION OF DOCUMENTS AND FEES OF OFFICE
 157-27        Sec. 603.001.  DEFINITION.  In this chapter, "document"
  158-1  includes any instrument, paper, or other record.  (New.)
  158-2        Sec. 603.002.  COPIES OF DOCUMENTS AVAILABLE TO PUBLIC.  The
  158-3  secretary of state, land commissioner, comptroller, state
  158-4  treasurer, commissioner of agriculture, banking commissioner, state
  158-5  librarian, or attorney general:
  158-6              (1)  shall furnish to a person on request a certified
  158-7  copy, under seal, of any document in the officer's office that is
  158-8  available under law to that person; and
  158-9              (2)  may not demand or collect a fee from an officer of
 158-10  the state for a copy of any document in the respective offices or
 158-11  for a certificate in relation to a matter in the respective offices
 158-12  if the copy is required in the performance of an official duty of
 158-13  the office of the state officer requesting the copy.  (V.A.C.S.
 158-14  Art. 3913 (part).)
 158-15        Sec. 603.003.  COPIES FOR CLAIMS RELATING TO MILITARY
 158-16  SERVICE.  (a)  A county clerk, district clerk, or other public
 158-17  official on request shall furnish without cost to a person or the
 158-18  person's guardian, dependent, or heir one or more certified copies
 158-19  of a document that is in the custody of or on file in the county
 158-20  clerk's, district clerk's, or other public official's office if:
 158-21              (1)  the person or the person's guardian, dependent, or
 158-22  heir is eligible to make a claim against the United States
 158-23  government because of service in the United States armed forces or
 158-24  an auxiliary service, including the maritime service or the
 158-25  merchant marine; and
 158-26              (2)  the document is necessary to prove the claim.
 158-27        (b)  The issuance of a certified copy under this section may
  159-1  not be considered in determining the maximum fee of the office.
  159-2  (V.A.C.S. Art. 1939a, Art. 1.)
  159-3        Sec. 603.004.  FEES FOR CERTIFICATES OR COPIES OF DOCUMENTS.
  159-4  (a)  Except as otherwise provided by law, the secretary of state,
  159-5  land commissioner, comptroller, commissioner of agriculture,
  159-6  banking commissioner, state librarian, attorney general, or other
  159-7  officer of the state or a head of a state department shall collect
  159-8  the following fees for the following services:
  159-9              (1)  a copy, other than a photographic copy, of a
 159-10  document in an office in English, for each page or fraction of a
 159-11  page, $1.50;
 159-12              (2)  a copy, other than a photographic copy, of a
 159-13  document in an office in a language other than English, for each
 159-14  page or fraction of a page, $2;
 159-15              (3)  a translated copy of a document in an office, the
 159-16  greater of $.03 for each word or $5;
 159-17              (4)  a copy of a plat or map in an office, a fee the
 159-18  officer of the office in which the copy is made may establish with
 159-19  reference to the amount of labor, supplies, and materials required;
 159-20  or
 159-21              (5)  a sealed certificate affixed to a copy, including
 159-22  a certificate affixed to a photographic copy, $1.
 159-23        (b)  The state librarian may charge, for a photographic copy,
 159-24  a fee determined by the Texas State Library and Archives Commission
 159-25  with reference to the amount of labor, supplies, and materials
 159-26  required.  (V.A.C.S. Art. 3913 (part).)
 159-27        Sec. 603.005.  FEE FOR ACKNOWLEDGMENT.  An officer who is
  160-1  authorized by law to take acknowledgment or proof of a deed or
  160-2  other written instrument shall receive the same fee a notary public
  160-3  may receive for the same service.  (V.A.C.S. Art. 3905.)
  160-4        Sec. 603.006.  FEE BOOK.  An officer who by law may charge a
  160-5  fee for a service shall keep a fee book and shall enter in the book
  160-6  all fees charged for services rendered.  (V.A.C.S. Art. 3907
  160-7  (part).)
  160-8        Sec. 603.007.  BILL FOR FEES.  A fee under this chapter is
  160-9  not payable to a person until a clerk or officer produces, or is
 160-10  ready to produce, a bill in writing containing the details of the
 160-11  fee to the person who owes the fee.  The bill must be signed by the
 160-12  clerk or officer to whom the fee is due or who charges the fee or
 160-13  by the successor in office or legal representative of the clerk or
 160-14  officer.  (V.A.C.S. Art. 3908 (part).)
 160-15        Sec. 603.008.  POSTING OF FEES REQUIRED.  A county judge,
 160-16  clerk of a district or county court, sheriff, justice of the peace,
 160-17  constable, or notary public shall keep posted at all times in a
 160-18  conspicuous place in the respective offices a complete list of fees
 160-19  the person may charge by law.  (V.A.C.S. Art. 3910.)
 160-20        Sec. 603.009.  DISPOSITION OF FEES.  (a)  Except as provided
 160-21  by this section, an officer required to collect a fee under Section
 160-22  603.004 shall deposit the fee in the state treasury to the credit
 160-23  of the general revenue fund.
 160-24        (b)  The banking commissioner shall deposit fees as provided
 160-25  by Section 8, Chapter 139, Acts of the 52nd Legislature, Regular
 160-26  Session, 1951 (Article 3921a, Vernon's Texas Civil Statutes).
 160-27        (c)  The Texas Employment Commission shall deposit fees in
  161-1  accordance with federal law.
  161-2        (d)  The Texas State Library and Archives Commission shall
  161-3  retain fees collected under this chapter by the state librarian.
  161-4  (V.A.C.S. Art. 3913 (part).)
  161-5        Sec. 603.010.  OVERCHARGING OF FEES; PENALTY.  An officer
  161-6  named in this chapter who demands and receives a higher fee than
  161-7  authorized under this chapter or a fee that is not authorized under
  161-8  this chapter is liable to the aggrieved person for four times the
  161-9  amount unlawfully demanded and received.  (V.A.C.S. Art. 3909
 161-10  (part).)
 161-11                     CHAPTER 604.  OFFICIAL BONDS
 161-12  Sec. 604.001.  FILING OF OFFICIAL BOND
 161-13  Sec. 604.002.  SURETIES
 161-14  Sec. 604.003.  DEPOSITORY OF BOND OF CERTAIN OFFICERS
 161-15  Sec. 604.004.  COPY OF CERTAIN BONDS TO BE FILED WITH
 161-16                   SECRETARY OF STATE
 161-17  Sec. 604.005.  BOND NOT VOID ON FIRST RECOVERY
 161-18  Sec. 604.006.  BOND INURES TO PERSONS AGGRIEVED
 161-19  Sec. 604.007.  LIMITATION
 161-20                     CHAPTER 604.  OFFICIAL BONDS
 161-21        Sec. 604.001.  FILING OF OFFICIAL BOND.  An officer required
 161-22  by law to give an official bond shall file the bond with the
 161-23  officer's oath of office.  (V.A.C.S. Art. 16 (part).)
 161-24        Sec. 604.002.  SURETIES.  An officer shall execute the
 161-25  officer's official bond with:
 161-26              (1)  two or more good and sufficient sureties; or
 161-27              (2)  a solvent surety company authorized to do business
  162-1  in this state.  (V.A.C.S. Art. 5998.)
  162-2        Sec. 604.003.  DEPOSITORY OF BOND OF CERTAIN OFFICERS.  (a)
  162-3  Except as provided by Subsection (b), the officer approving the
  162-4  bond of an officer required by law to give an official bond payable
  162-5  to the governor or the state shall deposit the bond with the
  162-6  comptroller.
  162-7        (b)  The governor shall deposit the official bond of the
  162-8  comptroller with the secretary of state.  (V.A.C.S. Art. 5999.)
  162-9        Sec. 604.004.  COPY OF CERTAIN BONDS TO BE FILED WITH
 162-10  SECRETARY OF STATE.  A member of the governing body of a political
 162-11  subdivision created under Article III, Section 52, or Article XVI,
 162-12  Section 59, of the Texas Constitution, who is required by law to
 162-13  file an official bond shall file a copy of the individual's bond
 162-14  with the secretary of state not later than the 10th day after the
 162-15  date the bond is required by law to be filed.  (V.A.C.S. Art.
 162-16  6003c, Sec. 1.)
 162-17        Sec. 604.005.  BOND NOT VOID ON FIRST RECOVERY.  (a)  The
 162-18  official bond of a state, county, or precinct officer is not void
 162-19  on first recovery.
 162-20        (b)  An injured party may sue separately on a bond until the
 162-21  bond is exhausted.  (V.A.C.S. Art. 6003.)
 162-22        Sec. 604.006.  BOND INURES TO PERSONS AGGRIEVED.  In a suit
 162-23  arising from the defalcation of a public officer or the
 162-24  misapplication or misappropriation of money by a public officer,
 162-25  the official bond of the officer inures to a person aggrieved by
 162-26  the defalcation or misapplication or misappropriation occurring in
 162-27  the period covered by the bond.  (V.A.C.S. Art. 6003a (part).)
  163-1        Sec. 604.007.  LIMITATION.  For purposes of limitation, a
  163-2  suit on an official bond of a public officer arising from the
  163-3  defalcation of the officer or the misapplication or
  163-4  misappropriation of money by the officer is an action for debt
  163-5  founded on a contract in writing governed by Section 16.004, Civil
  163-6  Practice and Remedies Code.  (V.A.C.S. Art. 6003a (part).)
  163-7                   CHAPTER 605.  EIGHT-HOUR WORKDAY
  163-8  Sec. 605.001.  EIGHT-HOUR WORKDAY FOR CERTAIN PUBLIC WORKS
  163-9  Sec. 605.002.  LENGTH OF WORKDAY; EMERGENCY WORK
 163-10  Sec. 605.003.  CRIMINAL OFFENSE
 163-11  Sec. 605.004.  FEDERAL LABOR STANDARDS ACT EXEMPTION
 163-12                   CHAPTER 605.  EIGHT-HOUR WORKDAY
 163-13        Sec. 605.001.  EIGHT-HOUR WORKDAY FOR CERTAIN PUBLIC WORKS.
 163-14  Eight hours of work in a calendar day constitute a day's work for a
 163-15  laborer, worker, or mechanic employed by or on behalf of the state
 163-16  or a political subdivision of the state for the construction,
 163-17  repair, or improvement of a building, bridge, road, highway,
 163-18  stream, or levee or for other similar work.  (V.A.C.S. Arts. 5165,
 163-19  5165.1.)
 163-20        Sec. 605.002.  LENGTH OF WORKDAY; EMERGENCY WORK.  (a)  In a
 163-21  contract for any work made by or on behalf of the state or a legal
 163-22  or political subdivision of the state eight hours constitutes a
 163-23  day's work.
 163-24        (b)  The time spent by a worker in going to and from the
 163-25  workplace is not a part of the hours of work.
 163-26        (c)  A person having a contract with the state or a legal or
 163-27  political subdivision of the state may not require or permit a
  164-1  laborer, worker, or mechanic to work more than eight hours in a
  164-2  calendar day, except:
  164-3              (1)  in employment to which the Fair Labor Standards
  164-4  Act of 1938 (29 U.S.C. Section 201 et seq.) applies;
  164-5              (2)  in an emergency that may arise in a time of war;
  164-6              (3)  to protect property or human life;
  164-7              (4)  for the housing of inmates of a public institution
  164-8  in case of fire or destruction by the elements; or
  164-9              (5)  for work financed in whole or part by the federal
 164-10  government or any of its agencies in which the total number of
 164-11  hours a week required or permitted of a worker does not exceed the
 164-12  number of hours a week allowed by federal regulation.
 164-13        (d)  A laborer, worker, or mechanic who works in an emergency
 164-14  described by Subsection (c) more than eight hours in a calendar day
 164-15  is entitled to be paid according to the workday provided by
 164-16  Subsection (a).  (V.A.C.S. Art. 5165.2 (part).)
 164-17        Sec. 605.003.  CRIMINAL OFFENSE.  (a)  A person, or officer,
 164-18  agent, or employee of the person, commits an offense if the person,
 164-19  or officer, agent, or employee of the person, violates any
 164-20  provision of this chapter.
 164-21        (b)  An offense under this section is a misdemeanor
 164-22  punishable by a fine of not less than $50 or more than $1,000 and
 164-23  confinement in jail for not more than six months, or both a fine
 164-24  and confinement.
 164-25        (c)  Each day a person violates a provision of this chapter
 164-26  is a separate offense.  (V.A.C.S. Art. 5165.3.)
 164-27        Sec. 605.004.  FEDERAL LABOR STANDARDS ACT EXEMPTION.  An
  165-1  employer who complies with the overtime provisions of the Fair
  165-2  Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) is
  165-3  considered to comply with the eight-hour day requirements of this
  165-4  chapter and is not civilly or criminally liable for a violation of
  165-5  the requirements.  (V.A.C.S. Art. 5165.6.)
  165-6                     CHAPTER 606.  SOCIAL SECURITY
  165-7                   SUBCHAPTER A.  GENERAL PROVISIONS
  165-8  Sec. 606.001.  DEFINITIONS
  165-9  Sec. 606.002.  ADMINISTRATION OF CHAPTER
 165-10  Sec. 606.003.  AGREEMENTS WITH SECRETARY
 165-11           (Sections 606.004-606.020 reserved for expansion)
 165-12    SUBCHAPTER B.  COVERAGE FOR EMPLOYEES OF POLITICAL SUBDIVISIONS
 165-13  Sec. 606.021.  DEFINITIONS
 165-14  Sec. 606.022.  AGREEMENTS WITH POLITICAL SUBDIVISIONS
 165-15  Sec. 606.023.  RULES
 165-16  Sec. 606.024.  PLAN FOR COVERAGE
 165-17  Sec. 606.025.  GUARANTEES FOR PAYMENT
 165-18  Sec. 606.026.  CONTRIBUTIONS BY POLITICAL SUBDIVISION
 165-19  Sec. 606.027.  PROCEDURE FOR MAKING CONTRIBUTIONS
 165-20  Sec. 606.028.  ADMINISTRATIVE EXPENSES
 165-21  Sec. 606.029.  DELINQUENT PAYMENTS
 165-22  Sec. 606.030.  SOCIAL SECURITY ADMINISTRATION FUND
 165-23  Sec. 606.031.  EXPENDITURES
 165-24           (Sections 606.032-606.060 reserved for expansion)
 165-25              SUBCHAPTER C.  COVERAGE FOR STATE EMPLOYEES
 165-26  Sec. 606.061.  DEFINITIONS
 165-27  Sec. 606.062.  DUTY OF EXECUTIVE DIRECTOR
  166-1  Sec. 606.063.  CONTRIBUTIONS BY STATE AGENCY
  166-2  Sec. 606.064.  EMPLOYEE CONTRIBUTIONS BY STATE AGENCY
  166-3  Sec. 606.065.  CONTRIBUTIONS FOR JUDGES
  166-4  Sec. 606.066.  COLLECTION OF EMPLOYEE'S CONTRIBUTION
  166-5  Sec. 606.067.  COLLECTION OF STATE CONTRIBUTION FOR EMPLOYEES
  166-6                   PAID FROM TREASURY
  166-7  Sec. 606.068.  COLLECTION OF STATE CONTRIBUTION FOR EMPLOYEES
  166-8                   NOT PAID FROM TREASURY
  166-9  Sec. 606.069.  METHOD OF MAKING CONTRIBUTIONS TO FEDERAL
 166-10                   GOVERNMENT
 166-11  Sec. 606.070.  RULES AND REPORTS
 166-12  Sec. 606.071.  EXPENDITURES
 166-13  Sec. 606.072.  BENEFITS FOR STATE EMPLOYEES UNDER BOTH STATE
 166-14                   AND FEDERAL LAW
 166-15           (Sections 606.073-606.100 reserved for expansion)
 166-16  SUBCHAPTER D.  COVERAGE FOR STATE EMPLOYEES PAID FROM FEDERAL FUNDS
 166-17  Sec. 606.101.  COVERAGE
 166-18                     CHAPTER 606.  SOCIAL SECURITY
 166-19                   SUBCHAPTER A.  GENERAL PROVISIONS
 166-20        Sec. 606.001.  DEFINITIONS.  In this chapter:
 166-21              (1)  "Social security coverage" means federal old-age,
 166-22  survivors, and disability insurance benefits under 42 U.S.C.
 166-23  Chapter 7, Subchapter II.
 166-24              (2)  "Federal Insurance Contributions Act" means 26
 166-25  U.S.C. Chapter 21.
 166-26              (3)  "Political subdivision" includes:
 166-27                    (A)  a county;
  167-1                    (B)  a municipality; or
  167-2                    (C)  an instrumentality of the state, of another
  167-3  political subdivision, or of the state and another political
  167-4  subdivision:
  167-5                          (i)  that is a juristic entity that is
  167-6  legally separate and distinct from the state or political
  167-7  subdivision; and
  167-8                          (ii)  whose employees are not employees of
  167-9  the state or political subdivision.
 167-10              (4)  "Retirement system" means the Employees Retirement
 167-11  System of Texas.
 167-12              (5)  "Secretary" means the United States Secretary of
 167-13  Health and Human Services or an individual designated by the
 167-14  secretary to administer coverage of the Social Security Act to
 167-15  employees of a state and its political subdivisions.
 167-16              (6)  "Social Security Act" means 42 U.S.C. Chapter 7,
 167-17  including regulations and requirements adopted under that chapter.
 167-18  (V.A.C.S. Arts. 695g, Secs. 1(d), (e), (g), (h); 695h, Secs. 1(d),
 167-19  (e), (f), (g) (part); New.)
 167-20        Sec. 606.002.  ADMINISTRATION OF CHAPTER.  The executive
 167-21  director of the retirement system shall direct and administer the
 167-22  functions of the retirement system under this chapter.  (V.A.C.S.
 167-23  Arts. 695g, Sec. 2; 695h, Sec. 2 (part).)
 167-24        Sec. 606.003.  AGREEMENTS WITH SECRETARY.  (a)  The
 167-25  retirement system may enter into agreements with the secretary to
 167-26  obtain social security coverage for employees of the state or a
 167-27  political subdivision.
  168-1        (b)  An agreement between the retirement system and the
  168-2  secretary may contain any appropriate provision, including a
  168-3  provision relating to coverage, benefits, contributions, effective
  168-4  date, modification, and administration.  (V.A.C.S. Arts. 695g, Sec.
  168-5  3; 695h, Sec. 3.)
  168-6           (Sections 606.004-606.020 reserved for expansion)
  168-7    SUBCHAPTER B.  COVERAGE FOR EMPLOYEES OF POLITICAL SUBDIVISIONS
  168-8        Sec. 606.021.  DEFINITIONS.  In this subchapter:
  168-9              (1)  "Employee" includes an officer of a political
 168-10  subdivision.
 168-11              (2)  "Employment" means service performed by an
 168-12  employee of a political subdivision except service:
 168-13                    (A)  that in the absence of an agreement under
 168-14  this subchapter would constitute employment under the Social
 168-15  Security Act;
 168-16                    (B)  that under the Social Security Act may not
 168-17  be included in an agreement between the retirement system and the
 168-18  secretary; or
 168-19                    (C)  as a police officer in a position that, at
 168-20  the time the agreement is made, is subject to another retirement
 168-21  system of a municipality with a population of 250,000 or more,
 168-22  according to the most recent federal census before the date of the
 168-23  agreement.
 168-24              (3)  "Wages" means all remuneration for employment,
 168-25  including the cash value of all remuneration paid other than by
 168-26  cash.  The term does not include remuneration that does not
 168-27  constitute "wages" under the Federal Insurance Contributions Act.
  169-1  (V.A.C.S. Art. 695g, Secs. 1(a), (b), (c) (part).)
  169-2        Sec. 606.022.  AGREEMENTS WITH POLITICAL SUBDIVISIONS.  (a)
  169-3  The retirement system and the governing body of a political
  169-4  subdivision that is eligible under the Social Security Act may
  169-5  enter into an agreement to obtain social security coverage for the
  169-6  employees of the political subdivision.
  169-7        (b)  An agreement between the retirement system and the
  169-8  governing body:
  169-9              (1)  must include a provision that an action of the
 169-10  federal government may not impair or impede a retirement program of
 169-11  this state or a political subdivision; and
 169-12              (2)  may include any other appropriate provision,
 169-13  including a provision relating to coverage benefits, contributions,
 169-14  effective date, modification of the agreement, and administration.
 169-15        (c)  The retirement system shall prescribe the terms of
 169-16  agreements necessary to:
 169-17              (1)  carry out this subchapter; and
 169-18              (2)  insure the financial responsibility of the
 169-19  participating political subdivisions.  (V.A.C.S. Art. 695g, Secs. 4
 169-20  (part), 5 (part), 6 (part).)
 169-21        Sec. 606.023.  RULES.  The retirement system shall adopt
 169-22  rules that it finds necessary to govern the application for and the
 169-23  eligibility of employees of a political subdivision to obtain
 169-24  social security coverage.  (V.A.C.S. Art. 695g, Sec. 5 (part).)
 169-25        Sec. 606.024.  PLAN FOR COVERAGE.  (a)  To obtain social
 169-26  security coverage for its employees, a political subdivision must
 169-27  submit a plan for approval by the retirement system.
  170-1        (b)  The retirement system shall approve a plan if the
  170-2  retirement system finds that the plan:
  170-3              (1)  conforms to the retirement system's rules;
  170-4              (2)  conforms to federal law and agreements made
  170-5  between the federal government and the states;
  170-6              (3)  specifies the source of funds from which payments
  170-7  will be made and guarantees that this source will be adequate;
  170-8              (4)  provides methods for proper and efficient
  170-9  administration by the political subdivision that are found by the
 170-10  retirement system to be necessary;
 170-11              (5)  provides that the political subdivision will:
 170-12                    (A)  report information at a time and in a form
 170-13  required by the retirement system; and
 170-14                    (B)  comply with requirements of the retirement
 170-15  system or federal authorities for the receipt, correctness, and
 170-16  verification of reports; and
 170-17              (6)  specifies the personnel of the political
 170-18  subdivision who are responsible for making assessments,
 170-19  collections, and reports.
 170-20        (c)  The retirement system may not refuse to approve a
 170-21  submitted plan unless the retirement system gives the submitting
 170-22  political subdivision reasonable notice and an opportunity for a
 170-23  hearing.  (V.A.C.S. Art. 695g, Secs. 7 (part), 9 (part).)
 170-24        Sec. 606.025.  GUARANTEES FOR PAYMENT.  The retirement system
 170-25  by rule may require guarantees to create adequate security that a
 170-26  political subdivision will be financially responsible for its
 170-27  payments for at least the minimum period required by federal
  171-1  requirements to precede social security coverage cancellation.  The
  171-2  guarantees may be in the form of:
  171-3              (1)  surety bonds;
  171-4              (2)  advance payments into an escrow account;
  171-5              (3)  detailed representations and assurances of
  171-6  priority dedication; or
  171-7              (4)  another legal undertaking.  (V.A.C.S. Art. 695g,
  171-8  Sec. 7 (part).)
  171-9        Sec. 606.026.  CONTRIBUTIONS BY POLITICAL SUBDIVISION.  (a)
 171-10  The governing body of a political subdivision may make
 171-11  contributions under an agreement to obtain social security
 171-12  coverage.
 171-13        (b)  The maximum compensation provided by statute for a
 171-14  county employee is not exceeded by the payment of a matching
 171-15  contribution by a political subdivision to obtain social security
 171-16  coverage for the employee.
 171-17        (c)  An instrumentality of the state that receives a direct
 171-18  legislative appropriation may contribute, for employees covered
 171-19  under Subtitle C, Title 8, only funds specifically appropriated for
 171-20  social security coverage.  (V.A.C.S. Art. 695g, Secs. 4 (part), 6
 171-21  (part).)
 171-22        Sec. 606.027.  PROCEDURE FOR MAKING CONTRIBUTIONS.  (a)  In
 171-23  accordance with state and federal requirements, a political
 171-24  subdivision that has an approved plan for social security coverage
 171-25  shall:
 171-26              (1)  make deductions from wages of employees whose
 171-27  services are covered by the plan; and
  172-1              (2)  pay matching contributions from the funds from
  172-2  which covered employees receive their compensation.
  172-3        (b)  The employment or continued employment of an employee
  172-4  covered by an approved plan of a political subdivision is
  172-5  consideration for the deductions.
  172-6        (c)  An employee or a political subdivision is not relieved
  172-7  from liability for a contribution if the political subdivision
  172-8  fails to deduct the contribution from the employee's wages.
  172-9        (d)  The county treasurer, or the person who acts as
 172-10  treasurer in a political subdivision other than a county, shall
 172-11  assess and collect the required contributions and transmit the
 172-12  contributions in accordance with federal requirements for the
 172-13  filing of reports and the payment of contributions.  (V.A.C.S. Art.
 172-14  695g, Secs. 6 (part), 8(a), (c), 9 (part).)
 172-15        Sec. 606.028.  ADMINISTRATIVE EXPENSES.  (a)  As agreed by
 172-16  the retirement system and the governing body of a political
 172-17  subdivision that has an approved plan, the retirement system shall
 172-18  require the political subdivision to pay the subdivision's
 172-19  proportionate share of the state administrative expenses for this
 172-20  subchapter by:
 172-21              (1)  an annual fee for the political subdivision;
 172-22              (2)  an annual fee for each employee covered;
 172-23              (3)  an amount equal to a percentage of the
 172-24  contributions made to federal authorities; or
 172-25              (4)  any other equitable measure.
 172-26        (b)  A political subdivision may make payment for
 172-27  administrative expenses under this section from any available fund
  173-1  not otherwise dedicated.  (V.A.C.S. Art. 695g, Sec. 10 (part).)
  173-2        Sec. 606.029.  DELINQUENT PAYMENTS.  (a)  The retirement
  173-3  system may require in an agreement with a political subdivision
  173-4  that interest be paid on delinquent payments.
  173-5        (b)  The retirement system may bring suit to collect a
  173-6  delinquent payment and interest on the payment.
  173-7        (c)  The retirement system may direct the comptroller or the
  173-8  state treasurer to deduct a delinquent payment and interest from
  173-9  funds payable by the state to the delinquent political subdivision
 173-10  that are expressly subject to deduction.  The comptroller or the
 173-11  state treasurer shall send to the retirement system in trust the
 173-12  amount deducted for the contribution of the delinquent political
 173-13  subdivision.  (V.A.C.S. Art. 695g, Sec. 11.)
 173-14        Sec. 606.030.  SOCIAL SECURITY ADMINISTRATION FUND.  (a)  The
 173-15  social security administration fund is  outside the treasury.  The
 173-16  state treasurer is the custodian of the fund and shall administer
 173-17  the fund separately from other funds as directed by the retirement
 173-18  system.  Credits of money in the fund are not state funds or
 173-19  subject to legislative appropriation.
 173-20        (b)  The retirement system shall deposit in the fund all
 173-21  money collected for administrative expenses under Section 606.028.
 173-22        (c)  The comptroller shall issue warrants for disbursements
 173-23  from the fund under sworn vouchers executed by the executive
 173-24  director of the retirement system or a person designated by the
 173-25  director.
 173-26        (d)  The fund may be used to pay:
 173-27              (1)  interest assessed as a penalty by the United
  174-1  States secretary of the treasury because of delinquent payment of
  174-2  contributions under this subchapter; or
  174-3              (2)  any expense necessary for the retirement system to
  174-4  administer this subchapter.
  174-5        (e)  A salary or expenditure paid from the fund shall be
  174-6  consistent with a comparable item in and the general provisions of
  174-7  the General Appropriations Act.
  174-8        (f)  The retirement system, at the end of each fiscal year,
  174-9  shall pay from the social security administration fund to the state
 174-10  treasurer for deposit in the general revenue fund at least 10
 174-11  percent of the contributions collected for administrative expenses
 174-12  in the preceding year.  Payment under this subsection may continue
 174-13  only until the amount appropriated to the retirement system from
 174-14  the state for administering this subchapter has been reimbursed in
 174-15  full.  (V.A.C.S. Art. 695g, Secs. 10 (part), 12(b), 13 (part).)
 174-16        Sec. 606.031.  EXPENDITURES.  The retirement system may
 174-17  employ personnel, purchase equipment, and make other expenditures
 174-18  as necessary to administer this subchapter.  (V.A.C.S. Art. 695g,
 174-19  Sec. 13 (part).)
 174-20           (Sections 606.032-606.060 reserved for expansion)
 174-21              SUBCHAPTER C.  COVERAGE FOR STATE EMPLOYEES
 174-22        Sec. 606.061.  DEFINITIONS.  In this subchapter:
 174-23              (1)  "Employee tax" means the tax imposed by 26 U.S.C.
 174-24  Section 3101.
 174-25              (2)  "Employment" means service performed by a state
 174-26  employee except service:
 174-27                    (A)  that in the absence of an agreement under
  175-1  this subchapter would constitute employment under the Social
  175-2  Security Act; or
  175-3                    (B)  that under the Social Security Act may not
  175-4  be included in an agreement between the retirement system and the
  175-5  secretary.
  175-6              (3)  "State agency" means:
  175-7                    (A)  a department, commission, board, office, or
  175-8  other agency in the executive or legislative branch created by the
  175-9  constitution or a statute of this state;
 175-10                    (B)  the supreme court, the court of criminal
 175-11  appeals, a court of appeals, or the Texas Judicial Council; or
 175-12                    (C)  a university system or an institution of
 175-13  higher education as defined by Section 61.003, Education Code.
 175-14              (4)  "State employee" includes an elected or appointed
 175-15  state officer but does not include an individual who:
 175-16                    (A)  is compensated by fees; or
 175-17                    (B)  is in a position eligible for membership in
 175-18  the Teacher Retirement System of Texas, unless the person is
 175-19  employed by a state department, agency, or institution.
 175-20              (5)  "Wages" means all remuneration for employment,
 175-21  including the cash value of all remuneration paid other than by
 175-22  cash, except for remuneration that does not constitute "wages"
 175-23  under the Federal Insurance Contributions Act.  (V.A.C.S. Art.
 175-24  695h, Secs. 1(a), (b), (c), (g) (part), (i).)
 175-25        Sec. 606.062.  DUTY OF EXECUTIVE DIRECTOR.  The executive
 175-26  director of the retirement system shall negotiate the best possible
 175-27  contract for social security coverage for state employees.
  176-1  (V.A.C.S. Art. 695h, Sec. 2 (part).)
  176-2        Sec. 606.063.  CONTRIBUTIONS BY STATE AGENCY.  A state agency
  176-3  may pay contributions on social security coverage of the agency's
  176-4  state employees who are paid from the state treasury as required by
  176-5  an agreement with the secretary from funds appropriated to the
  176-6  comptroller for that purpose.  A contribution made under this
  176-7  section is not considered compensation to the employee under any
  176-8  state law.  (V.A.C.S. Art. 695h, Sec. 4 (part).)
  176-9        Sec. 606.064.  EMPLOYEE CONTRIBUTIONS BY STATE AGENCY.  (a)
 176-10  The state shall pay all contributions on wages for social security
 176-11  coverage of a state employee except:
 176-12              (1)  as provided by Section 606.065; or
 176-13              (2)  the amount of the employee tax in excess of 5.85
 176-14  percent of wages computed on a wage base of $16,500 in a calendar
 176-15  year.
 176-16        (b)  The legislature may provide in the General
 176-17  Appropriations Act for a state contribution in excess of the amount
 176-18  provided in Subsection (a)(2).
 176-19        (c)  A state employee is obligated to pay only the difference
 176-20  between the amount the legislature provides and the amount required
 176-21  by federal law.
 176-22        (d)  The contribution made by the state shall be paid from
 176-23  the same fund from which an employee receives compensation.
 176-24        (e)  The comptroller may prorate the state's expected
 176-25  contribution for an employee's employee tax over the portion of the
 176-26  calendar year that the employee's salary is subject to the Federal
 176-27  Insurance Contributions Act to equalize the employee's monthly
  177-1  contributions during the portion of the year that the employee's
  177-2  salary is subject to Federal Insurance Contributions Act taxes.
  177-3  (V.A.C.S. Art. 695h, Secs. 5(a) (part), (c), (d).)
  177-4        Sec. 606.065.  CONTRIBUTIONS FOR JUDGES.  (a)  A judge who is
  177-5  paid by the state and for whom the retirement system and the
  177-6  secretary have an agreement for social security coverage shall
  177-7  contribute the entire amount of the employee tax, unless the
  177-8  legislature provides in the General Appropriations Act for payment
  177-9  at any rate and on any amount of the employee tax.
 177-10        (b)  If the state makes a contribution under Subsection (a):
 177-11              (1)  the judge is obligated to pay only the difference
 177-12  between the amount the legislature provides and the amount required
 177-13  by the Federal Insurance Contributions Act;
 177-14              (2)  the contribution shall be paid from the same fund
 177-15  from which the judge receives compensation; and
 177-16              (3)  the comptroller may prorate the state's expected
 177-17  contribution for an employee's tax over the portion of the calendar
 177-18  year that the judge's salary is subject to the Federal Insurance
 177-19  Contributions Act to equalize the judge's monthly contributions
 177-20  during the portion of the year that the judge's salary is subject
 177-21  to Federal Insurance Contributions Act taxes.  (V.A.C.S. Art. 695h,
 177-22  Secs. 5(a) (part), (b), (c), (d).)
 177-23        Sec. 606.066.  COLLECTION OF EMPLOYEE'S CONTRIBUTION.  (a)
 177-24  On the authorization of the head of a state agency, the disbursing
 177-25  officer of the department shall deduct from each payroll of a state
 177-26  employee with social security coverage the amount of the employee's
 177-27  contribution paid by the employee under this subchapter.  The total
  178-1  amount deducted shall be paid in accordance with federal
  178-2  requirements.
  178-3        (b)  The head of a state agency shall, for each payroll:
  178-4              (1)  certify to the comptroller in the manner
  178-5  prescribed by the comptroller:
  178-6                    (A)  the amount of a state employee's
  178-7  contribution to be deducted from the employee's salary; and
  178-8                    (B)  the total amount to be deducted from all
  178-9  salaries; and
 178-10              (2)  include the total amount in the payroll voucher.
 178-11        (c)  If an amount less than the amount of the employee's
 178-12  contribution under this subchapter is deducted from a state
 178-13  employee's salary for the employee's contribution, the employee is
 178-14  liable for the  difference between the amount deducted and the
 178-15  correct amount of the contribution.  (V.A.C.S. Art. 695h, Secs.
 178-16  6(a)(1) (part), (2) (part), (3).)
 178-17        Sec. 606.067.  COLLECTION OF STATE CONTRIBUTION FOR EMPLOYEES
 178-18  PAID FROM TREASURY.  (a)  For a state employee who is paid from the
 178-19  state treasury, the legislature shall appropriate, from the same
 178-20  fund from which the employee is paid, an amount equal to the total
 178-21  of the state's contributions under Section 606.063 and Section
 178-22  606.064 or 606.065.
 178-23        (b)  The state agency shall certify at the end of each
 178-24  payroll period to the comptroller in a manner prescribed by the
 178-25  comptroller the total amount of the department's state
 178-26  contributions for that period for employees paid from the state
 178-27  treasury.
  179-1        (c)  A state agency having employees paid from the state
  179-2  treasury shall include in the budget information the department
  179-3  submits to the Legislative Budget Board and the budget division of
  179-4  the governor's office a certification of the amount necessary to
  179-5  pay contributions of the state for the following biennium.  The
  179-6  governor shall include this amount in the budget that the governor
  179-7  submits to the legislature.
  179-8        (d)  All money appropriated to the comptroller for the
  179-9  contributions of the state shall be allocated to the state agency
 179-10  according to rules adopted by the comptroller.  (V.A.C.S. Art.
 179-11  695h, Secs. 6(b)(1) (part), (2), (3) (part).)
 179-12        Sec. 606.068.  COLLECTION OF STATE CONTRIBUTION FOR EMPLOYEES
 179-13  NOT PAID FROM TREASURY.  (a)  For state employees who are paid from
 179-14  funds not in the state treasury, the head of a state agency shall
 179-15  certify to the department's disbursing officer the total amount of
 179-16  the state's contributions based on compensation paid the employees.
 179-17        (b)  The disbursing officer of a state agency that has state
 179-18  employees who are paid from funds not in the state treasury shall
 179-19  pay the total amount of contributions of the state for employees in
 179-20  accordance with federal requirements.  (V.A.C.S. Art. 695h, Sec.
 179-21  6(b)(4) (part).)
 179-22        Sec. 606.069.  METHOD OF MAKING CONTRIBUTIONS TO FEDERAL
 179-23  GOVERNMENT.  A state agency shall comply with federal requirements
 179-24  for filing reports and paying contributions.  (V.A.C.S. Art. 695h,
 179-25  Sec. 6(c) (part).)
 179-26        Sec. 606.070.  RULES AND REPORTS.  (a)  The retirement system
 179-27  may, as it finds necessary to the efficient administration of this
  180-1  subchapter, adopt rules and require state agencies to file reports.
  180-2        (b)  The retirement system shall certify to the comptroller
  180-3  any state agency that has not filed a required report within the
  180-4  specified time.
  180-5        (c)  The comptroller shall withhold salary or expense
  180-6  reimbursement warrants to the head or an employee of a state agency
  180-7  that the retirement system certifies under Subsection (b).  On
  180-8  notification from the retirement system that the report has been
  180-9  filed, the comptroller shall release the warrants.
 180-10        (d)  If a state agency whose employees are not paid from
 180-11  funds in the state treasury is notified that a required report is
 180-12  delinquent, the disbursing officer may not pay a salary or an
 180-13  expense reimbursement.  A disbursing officer is liable both
 180-14  personally and on the officer's official bond if the officer pays a
 180-15  salary or an expense reimbursement after notification of a
 180-16  delinquent report by the retirement system.  (V.A.C.S. Art. 695h,
 180-17  Sec. 7.)
 180-18        Sec. 606.071.  EXPENDITURES.  The retirement system may
 180-19  employ personnel, including accountants and attorneys, purchase
 180-20  equipment, and make other expenditures as necessary to administer
 180-21  this subchapter.  (V.A.C.S. Art. 695h, Sec. 9 (part).)
 180-22        Sec. 606.072.  BENEFITS FOR STATE EMPLOYEES UNDER BOTH STATE
 180-23  AND FEDERAL LAW.  A state employee may receive benefits under both
 180-24  Chapters 811-815 and the Social Security Act.  (V.A.C.S. Art. 695h,
 180-25  Sec. 11.)
 180-26           (Sections 606.073-606.100 reserved for expansion)
 180-27  SUBCHAPTER D.  COVERAGE FOR STATE EMPLOYEES PAID FROM FEDERAL FUNDS
  181-1        Sec. 606.101.  COVERAGE.  Subchapter B applies to a state
  181-2  employee or officer who is paid entirely from federal funds but is
  181-3  classified as a state employee by the federal government.
  181-4  (V.A.C.S. Art. 695g, Sec. 1(c) (part).)
  181-5    CHAPTER 607.  BENEFITS RELATING TO CERTAIN CONTAGIOUS DISEASES
  181-6  Sec. 607.001.  DEFINITION
  181-7  Sec. 607.002.  REIMBURSEMENT
  181-8  Sec. 607.003.  PHYSICIAN OF CHOICE
  181-9  Sec. 607.004.  PREVENTATIVE IMMUNIZATIONS AND VACCINATIONS
 181-10    CHAPTER 607.  BENEFITS RELATING TO CERTAIN CONTAGIOUS DISEASES
 181-11        Sec. 607.001.  DEFINITION.  In this chapter, "public safety
 181-12  employee" means a peace officer, fire fighter, or emergency medical
 181-13  services employee of the state or a political subdivision of the
 181-14  state.  (V.A.C.S. Art. 1269t, Subsec. (a).)
 181-15        Sec. 607.002.  REIMBURSEMENT.  A public safety employee who
 181-16  is exposed to a contagious disease is entitled to reimbursement
 181-17  from the employing governmental entity for reasonable medical
 181-18  expenses incurred in treatment for the prevention of the disease
 181-19  if:
 181-20              (1)  the disease is not an "ordinary disease of life"
 181-21  as that term is used in the context of a workers' compensation
 181-22  claim;
 181-23              (2)  the exposure to the disease occurs during the
 181-24  course of the employment; and
 181-25              (3)  the employee requires preventative medical
 181-26  treatment because of exposure to the disease.  (V.A.C.S. Art.
 181-27  1269t, Subsec. (b).)
  182-1        Sec. 607.003.  PHYSICIAN OF CHOICE.  A public safety employee
  182-2  who is exposed to a disease described by Section 607.002 is
  182-3  entitled to be treated for the prevention of that disease by the
  182-4  physician of the employee's choice.  (V.A.C.S. Art. 1269t, Subsec.
  182-5  (c).)
  182-6        Sec. 607.004.  PREVENTATIVE IMMUNIZATIONS AND VACCINATIONS.
  182-7  (a)  A certified fire fighter or other governmental employee who
  182-8  operates an ambulance or who responds to emergency medical calls is
  182-9  entitled to preventative immunization for any disease to which the
 182-10  fire fighter or other governmental employee may be exposed in
 182-11  performing official duties and for which immunization is possible.
 182-12        (b)  The employee and any member of the employee's immediate
 182-13  family are entitled to vaccination for a contagious disease to
 182-14  which the employee is exposed during the course of employment.
 182-15        (c)  The employing governmental entity may satisfy the
 182-16  requirements of this section by:
 182-17              (1)  providing the immunization or vaccination without
 182-18  charge; or
 182-19              (2)  reimbursing the employee for any necessary and
 182-20  reasonable expenses incurred by the employee for the immunization
 182-21  or vaccination.  (V.A.C.S. Art. 1269t, Subsec. (d).)
 182-22           CHAPTER 608.  PAYROLL DEDUCTION FOR SAVINGS BONDS
 182-23  Sec. 608.001.  DEFINITIONS
 182-24  Sec. 608.002.  AUTHORIZATION FOR PAYROLL DEDUCTION
 182-25  Sec. 608.003.  WITHHOLDING; DEDUCTION FROM PAYROLL
 182-26  Sec. 608.004.  ISSUANCE OF WARRANT TO OFFICER OR EMPLOYEE
 182-27  Sec. 608.005.  ISSUANCE OF WARRANT TO DEPARTMENT ADMINISTRATOR
  183-1                   OR DISBURSING OFFICER
  183-2  Sec. 608.006.  FORM OF PAYROLL
  183-3  Sec. 608.007.  TRUST ACCOUNT
  183-4  Sec. 608.008.  PURCHASE OF SAVINGS BONDS
  183-5  Sec. 608.009.  RECORDS
  183-6  Sec. 608.010.  TERMINATION OF DEDUCTION
  183-7  Sec. 608.011.  NO LIABILITY ON OFFICIAL BOND
  183-8           CHAPTER 608.  PAYROLL DEDUCTION FOR SAVINGS BONDS
  183-9        Sec. 608.001.  DEFINITIONS.  In this chapter:
 183-10              (1)  "Department administrator" means the chief
 183-11  administrator of a department of state government of which an
 183-12  individual executing an authorization is an officer or employee.
 183-13              (2)  "Disbursing officer" means the disbursing officer
 183-14  of a political subdivision of which an individual executing an
 183-15  authorization is an officer or employee.
 183-16              (3)  "Political subdivision" means a county,
 183-17  municipality, or other political subdivision of this state.
 183-18              (4)  "Savings bonds" means United States savings bonds.
 183-19  (New.)
 183-20        Sec. 608.002.  AUTHORIZATION FOR PAYROLL DEDUCTION.  (a)  An
 183-21  officer or employee of this state or of a political subdivision may
 183-22  voluntarily authorize the individual's department administrator or
 183-23  disbursing officer, as appropriate, to deduct from the individual's
 183-24  compensation an amount to be used to purchase savings bonds.
 183-25        (b)  An authorization must be in writing and must state:
 183-26              (1)  the period for which the authorization is to be in
 183-27  effect; and
  184-1              (2)  the amount to be deducted.  (V.A.C.S. Art. 6252-3,
  184-2  Sec. 1 (part).)
  184-3        Sec. 608.003.  WITHHOLDING; DEDUCTION FROM PAYROLL.  (a)  A
  184-4  department administrator or disbursing agent, as appropriate, may
  184-5  withhold the amount authorized under Section 608.002 from an
  184-6  individual's compensation each payday.
  184-7        (b)  If a withholding is made, the department administrator
  184-8  or disbursing officer shall make a deduction when the payroll of a
  184-9  state department or a political subdivision is presented to the
 184-10  comptroller or disbursing officer, as appropriate, for the issuance
 184-11  of warrants for payment.  (V.A.C.S. Art. 6252-3, Sec. 1 (part).)
 184-12        Sec. 608.004.  ISSUANCE OF WARRANT TO OFFICER OR EMPLOYEE.
 184-13  (a)  When the payroll of a state department is presented to the
 184-14  comptroller for payment, the comptroller shall issue to each
 184-15  officer or employee named in the payroll a warrant for the full
 184-16  amount of the officer's or employee's compensation, less:
 184-17              (1)  the amount deducted to purchase savings bonds; and
 184-18              (2)  the amount of other authorized deductions.
 184-19        (b)  When the payroll of a political subdivision is presented
 184-20  to the disbursing officer for payment, the disbursing officer shall
 184-21  issue to each officer or employee named in the payroll a warrant
 184-22  for the full amount of the officer's or employee's compensation,
 184-23  less:
 184-24              (1)  the amount deducted to purchase savings bonds; and
 184-25              (2)  the amount of other authorized deductions.
 184-26  (V.A.C.S. Art. 6252-3, Sec. 2 (part).)
 184-27        Sec. 608.005.  ISSUANCE OF WARRANT TO DEPARTMENT
  185-1  ADMINISTRATOR OR DISBURSING OFFICER.  (a)  When the payroll of a
  185-2  state department is presented to the comptroller for payment, the
  185-3  comptroller shall issue to the department administrator a warrant
  185-4  for the full amount deducted from the department's payroll for the
  185-5  payroll period to purchase savings bonds on behalf of department
  185-6  officers and employees.
  185-7        (b)  When the payroll of a political subdivision is presented
  185-8  to the disbursing officer for payment, the disbursing officer shall
  185-9  issue to the disbursing officer a warrant for the full amount
 185-10  deducted from the political subdivision's payroll for the payroll
 185-11  period to purchase savings bonds on behalf of officers and
 185-12  employees of the political subdivision.  (V.A.C.S. Art. 6252-3,
 185-13  Sec. 2 (part).)
 185-14        Sec. 608.006.  FORM OF PAYROLL.  (a)  The comptroller shall
 185-15  prescribe the proper form of payroll for state officers and
 185-16  employees to comply with this chapter.
 185-17        (b)  A disbursing officer shall prescribe the proper form of
 185-18  payroll for officers and employees of the disbursing officer's
 185-19  political subdivision to comply with this chapter.  (V.A.C.S. Art.
 185-20  6252-3, Sec. 2 (part).)
 185-21        Sec. 608.007.  TRUST ACCOUNT.  (a)  A department
 185-22  administrator shall deposit a warrant issued under Section
 185-23  608.005(a) with the state treasurer to be held in trust by the
 185-24  treasurer until disbursed by the department administrator to
 185-25  purchase savings bonds for an individual designated in an
 185-26  authorization under Section 608.002 filed with the department
 185-27  administrator.
  186-1        (b)  A disbursing officer shall deposit a warrant issued
  186-2  under Section 608.005(b) with the treasurer of the political
  186-3  subdivision to be held in trust by the treasurer until disbursed by
  186-4  the disbursing officer to purchase savings bonds for an individual
  186-5  designated in an authorization under Section 608.002 filed with the
  186-6  disbursing officer.
  186-7        (c)  A warrant held in trust under this section shall be
  186-8  deposited in an account designated as the savings bond payroll
  186-9  savings account.  The treasurer shall pay out money deposited in
 186-10  the account on proper warrants drawn by the department
 186-11  administrator or disbursing officer, as appropriate.  (V.A.C.S.
 186-12  Art. 6252-3, Sec. 2 (part).)
 186-13        Sec. 608.008.  PURCHASE OF SAVINGS BONDS.  (a)  A department
 186-14  administrator and a disbursing officer shall use money deducted and
 186-15  held in trust under this chapter to purchase savings bonds on
 186-16  behalf of an individual who has executed an authorization under
 186-17  Section 608.002, in the denomination designated and authorized in
 186-18  the individual's authorization, when an amount sufficient to make a
 186-19  purchase has been withheld.
 186-20        (b)  A department administrator or disbursing officer, on
 186-21  receipt of a savings bond purchased under Subsection (a), shall
 186-22  immediately deliver the bond to the individual entitled to it or
 186-23  shall mail the bond to the address designated by the individual in
 186-24  the authorization.  (V.A.C.S. Art. 6252-3, Sec. 3 (part).)
 186-25        Sec. 608.009.  RECORDS.  A department administrator and
 186-26  disbursing officer shall keep records at all times, itemizing money
 186-27  deducted and disbursed by the department administrator or
  187-1  disbursing officer under this chapter.  (V.A.C.S. Art. 6252-3, Sec.
  187-2  3 (part).)
  187-3        Sec. 608.010.  TERMINATION OF DEDUCTION.  (a)  A department
  187-4  administrator or disbursing officer shall stop deducting money
  187-5  under this chapter from the compensation of an officer or employee
  187-6  if:
  187-7              (1)  the individual stops being an officer or employee
  187-8  of the department or political subdivision;
  187-9              (2)  the individual in writing notifies the department
 187-10  administrator or disbursing officer that the individual elects to
 187-11  cancel the authorization; or
 187-12              (3)  the arrangement for deducting money by department
 187-13  administrators or disbursing officers is terminated.
 187-14        (b)  On termination as provided by Subsection (a), any money
 187-15  that has been deducted from an officer's or employee's compensation
 187-16  but has not been used to purchase savings bonds shall be remitted
 187-17  immediately by proper warrant to the individual from whose
 187-18  compensation the money has been deducted.  (V.A.C.S. Art. 6252-3,
 187-19  Sec. 4.)
 187-20        Sec. 608.011.  NO LIABILITY ON OFFICIAL BOND.  A department
 187-21  administrator or disbursing officer is not liable on a bond
 187-22  required of the individual as an official because of a duty imposed
 187-23  on the individual by this chapter.  (V.A.C.S. Art. 6252-3, Sec. 5.)
 187-24               CHAPTER 609.  DEFERRED COMPENSATION PLANS
 187-25                   SUBCHAPTER A.  GENERAL PROVISIONS
 187-26  Sec. 609.001.  DEFINITIONS
 187-27  Sec. 609.002.  QUALIFICATIONS FOR QUALIFIED VENDOR
  188-1  Sec. 609.003.  QUALIFIED INVESTMENT PRODUCT
  188-2  Sec. 609.004.  PERMISSIBLE USE OF PUBLIC FUNDS
  188-3  Sec. 609.005.  PLAN AS COMPENSATION
  188-4  Sec. 609.006.  CONFORMANCE TO OR CONFLICT WITH FEDERAL LAW
  188-5  Sec. 609.007.  CONTRACT FOR DEFERMENT OF COMPENSATION
  188-6  Sec. 609.008.  CREDITING TRUST FUND INTEREST
  188-7  Sec. 609.009.  OWNERSHIP UNDER 457 PLAN
  188-8  Sec. 609.010.  LIABILITY; RESPONSIBILITY FOR MONITORING
  188-9  Sec. 609.011.  NOTIFICATION BY 457 PLAN ADMINISTRATOR
 188-10  Sec. 609.012.  TRANSFER FROM A 457 PLAN VENDOR
 188-11  Sec. 609.013.  INABILITY TO DISTRIBUTE
 188-12           (Sections 609.014-609.100 reserved for expansion)
 188-13      SUBCHAPTER B.  DEFERRED COMPENSATION PLANS FOR EMPLOYEES OF
 188-14                        POLITICAL SUBDIVISIONS
 188-15  Sec. 609.101.  DEFINITIONS
 188-16  Sec. 609.102.  CREATION OF PLAN
 188-17  Sec. 609.103.  DESIGNATION OF PLAN ADMINISTRATOR
 188-18  Sec. 609.104.  REMOVAL OF PLAN ADMINISTRATOR
 188-19  Sec. 609.105.  DELEGATION OF 401(k) PLAN ADMINISTRATOR'S
 188-20                   AUTHORITY AND RESPONSIBILITIES
 188-21  Sec. 609.106.  OVERSIGHT COMMITTEE
 188-22  Sec. 609.107.  AUTHORITY OF PLAN ADMINISTRATOR
 188-23  Sec. 609.108.  INVESTMENT AND TRANSFER OF DEFERRED AMOUNTS
 188-24                   AND INCOME
 188-25  Sec. 609.109.  PARTICIPATION OF INDEPENDENT CONTRACTORS
 188-26  Sec. 609.110.  CHANGING AMOUNT DEFERRED
 188-27  Sec. 609.111.  DISTRIBUTION
  189-1  Sec. 609.112.  FEE
  189-2  Sec. 609.113.  EVALUATION AND APPROVAL OF
  189-3                   QUALIFIED VENDOR
  189-4  Sec. 609.114.  NUMBER OF VENDORS UNDER 457 PLAN
  189-5  Sec. 609.115.  CONTRACT WITH QUALIFIED VENDOR
  189-6  Sec. 609.116.  REGULATION OF QUALIFIED VENDORS
  189-7  Sec. 609.117.  LOANS UNDER 401(k) PLAN
  189-8  Sec. 609.118.  TRUST FOR 401(k) PLAN
  189-9  Sec. 609.119.  TRANSFER ON VENDOR'S FAILURE
 189-10           (Sections 609.120-609.500 reserved for expansion)
 189-11      SUBCHAPTER C.  DEFERRED COMPENSATION PLANS FOR EMPLOYEES OF
 189-12                            STATE AGENCIES
 189-13  Sec. 609.501.  DEFINITION
 189-14  Sec. 609.502.  CREATION OF PLAN; PARTICIPATION
 189-15  Sec. 609.503.  CHANGING AMOUNT DEFERRED
 189-16  Sec. 609.504.  INVESTMENT AND TRANSFER OF DEFERRED AMOUNTS
 189-17                   AND INCOME
 189-18  Sec. 609.505.  QUALIFIED VENDOR
 189-19  Sec. 609.506.  INSURANCE COMPANY AS QUALIFIED VENDOR
 189-20  Sec. 609.507.  FINANCIAL INSTITUTION AS QUALIFIED VENDOR
 189-21  Sec. 609.508.  RULES
 189-22  Sec. 609.509.  CONTRACTS FOR GOODS AND SERVICES
 189-23  Sec. 609.510.  EXEMPTION FOR CERTAIN CONTRACTS
 189-24  Sec. 609.511.  FEE
 189-25  Sec. 609.512.  DEFERRED COMPENSATION PLAN TRUST FUNDS
 189-26  Sec. 609.513.  DISCRETIONARY TRANSFER
 189-27  Sec. 609.514.  ALTERNATIVE TO FUND DEPOSIT
  190-1  Sec. 609.515.  FIDUCIARY INSURANCE
  190-2               CHAPTER 609.  DEFERRED COMPENSATION PLANS
  190-3                   SUBCHAPTER A.  GENERAL PROVISIONS
  190-4        Sec. 609.001.  DEFINITIONS.  In this chapter:
  190-5              (1)  "Board of trustees" means the board of trustees of
  190-6  the Employees Retirement System of Texas.
  190-7              (2)  "Employee" means an individual who is an officer
  190-8  or employee of a state agency or political subdivision, as
  190-9  appropriate.
 190-10              (3)  "Investment income" means the amount earned from
 190-11  the investment in a qualified investment product of compensation
 190-12  deferred under a deferred compensation plan.
 190-13              (4)  "Participating employee" means an employee who
 190-14  contracts to participate in a deferred compensation plan.
 190-15              (5)  "Plan administrator" means the person responsible
 190-16  for administering a deferred compensation plan.
 190-17              (6)  "Political subdivision" means a governmental
 190-18  entity in the state that is not a state agency and includes a
 190-19  county, municipality, school district, river authority, other
 190-20  special purpose district or authority, and junior college district.
 190-21              (7)  "Qualified vendor" means a vendor approved by a
 190-22  plan administrator or with whom a plan administrator has contracted
 190-23  for participation in the deferred compensation plan.
 190-24              (8)  "State agency" means a board, commission, office,
 190-25  department, or other agency in the executive, judicial, or
 190-26  legislative branch of state government, including an institution of
 190-27  higher education as defined by Section 61.003, Education Code, but
  191-1  does not include a public junior college.
  191-2              (9)  "Vendor" means a private entity that sells
  191-3  investment products.
  191-4              (10)  "401(k) plan" means an employees' deferred
  191-5  compensation plan, the federal income tax treatment of which is
  191-6  governed by Section 401(k) of the Internal Revenue Code of 1986 (26
  191-7  U.S.C.  Section 401(k)).
  191-8              (11)  "457 plan" means an employees' deferred
  191-9  compensation plan, the federal income tax treatment of which is
 191-10  governed by Section 457 of the Internal Revenue Code of 1986 (26
 191-11  U.S.C.  Section 457).  (V.A.C.S. Art. 6252-3g, Secs. 1.01(4), (5),
 191-12  (6), (7), (9), (10), (11), (12), (14), 2.01(4), (5), (6), (7), (9),
 191-13  (10), (12), (13), (15); New.)
 191-14        Sec. 609.002.  QUALIFICATIONS FOR QUALIFIED VENDOR.  A vendor
 191-15  may be a qualified vendor for a 457 plan or a 401(k) plan created
 191-16  by a political subdivision or group of political subdivisions only
 191-17  if the vendor satisfies the requirements for participation in the
 191-18  deferred compensation plan provided by:
 191-19              (1)  this chapter; and
 191-20              (2)  the plan administrator. (V.A.C.S. Art. 6252-3g,
 191-21  Secs. 1.22 (part), 2.05 (part).)
 191-22        Sec. 609.003.  QUALIFIED INVESTMENT PRODUCT.  (a)  To be
 191-23  classified as a qualified investment product for a deferred
 191-24  compensation plan, an investment product must be approved by the
 191-25  plan administrator to receive investments under the plan.  The
 191-26  approval of an investment product for a 457 plan must be in
 191-27  writing.
  192-1        (b)  The approval of an investment product for a 401(k) plan
  192-2  of a political subdivision or group of political subdivisions must
  192-3  be in accordance with a contract between the plan administrator and
  192-4  a qualified vendor.
  192-5        (c)  A qualified investment product may be offered only by a
  192-6  qualified vendor of the deferred compensation plan.  (V.A.C.S.
  192-7  Art. 6252-3g, Secs. 1.11(2), 1.31, 2.01(11), 2.04 (part).)
  192-8        Sec. 609.004.  PERMISSIBLE USE OF PUBLIC FUNDS.  A deferred
  192-9  compensation plan governed by this chapter is a permissible use of
 192-10  the funds of a state agency or political subdivision.  (V.A.C.S.
 192-11  Art. 6252-3g, Secs. 1.02 (part), 2.02 (part).)
 192-12        Sec. 609.005.  PLAN AS COMPENSATION.  (a)  A deferred
 192-13  compensation plan is a part of an employee's compensation and is in
 192-14  addition to a retirement, pension, or benefit system established by
 192-15  law.
 192-16        (b)  The deferral of compensation does not reduce retirement,
 192-17  pension, or other benefits provided by law unless the reduction is
 192-18  required by federal law.  (V.A.C.S. Art. 6252-3g, Secs. 1.02
 192-19  (part), 2.02 (part).)
 192-20        Sec. 609.006.  CONFORMANCE TO OR CONFLICT WITH FEDERAL LAW.
 192-21  (a)  A deferred compensation plan must conform to federal law to
 192-22  provide that deferred amounts and investment income are not
 192-23  includable, for federal income tax purposes, in the gross income of
 192-24  a participating employee until distributed to the employee.
 192-25        (b)  Federal law controls to the extent that this chapter
 192-26  materially conflicts with:
 192-27              (1)  Section 401(k), Internal Revenue Code of 1986 (26
  193-1  U.S.C. Section 401(k));
  193-2              (2)  Section 457, Internal Revenue Code of 1986 (26
  193-3  U.S.C. Section 457); or
  193-4              (3)  other federal law, including a federal rule
  193-5  governing deferred compensation plans.
  193-6        (c)  For the purposes of Subsection (b), a conflict is
  193-7  material only if, for federal income tax purposes, it is reasonably
  193-8  certain to result in the inclusion of an employee's deferred
  193-9  amounts or investment income in the employee's gross income before
 193-10  the amounts or income are distributed to the employee.
 193-11        (d)  The board of trustees of the Employees Retirement System
 193-12  of Texas may adopt rules necessary to make a deferred compensation
 193-13  plan established under Subchapter C a qualified plan under federal
 193-14  law, including federal rules and regulations.  (V.A.C.S.
 193-15  Art. 6252-3g, Secs. 1.03, 1.05, 1.48, 2.03, 2.11, 2.54.)
 193-16        Sec. 609.007.  CONTRACT FOR DEFERMENT OF COMPENSATION.  (a)
 193-17  A political subdivision may contract with an employee of the
 193-18  political subdivision for the deferment of any part of the
 193-19  employee's compensation.
 193-20        (b)  The board of trustees of the Employees Retirement System
 193-21  of Texas may contract with an employee of a state agency
 193-22  participating in a deferred compensation plan for the deferment of
 193-23  any part of the employee's compensation.
 193-24        (c)  To participate in a deferred compensation plan, an
 193-25  employee must consent in the contract to automatic payroll
 193-26  deductions in an amount equal to the deferred amount.  (V.A.C.S.
 193-27  Art. 6252-3g, Secs. 1.16 (part), 1.42 (part), 2.25 (part), 2.50
  194-1  (part).)
  194-2        Sec. 609.008.  CREDITING TRUST FUND INTEREST.  Interest
  194-3  earned on an employee's deferred amounts and investment income
  194-4  deposited in the deferred compensation trust fund, as defined by
  194-5  Section 609.101, or in the TexaSaver trust fund or the other
  194-6  deferred compensation trust fund to which Section 609.512 applies
  194-7  is credited to the employee.  (V.A.C.S. Art. 6252-3g, Secs. 1.24,
  194-8  1.45, 2.10.)
  194-9        Sec. 609.009.  OWNERSHIP UNDER 457 PLAN.  An employee's
 194-10  deferred amounts and investment income under a 457 plan and the
 194-11  qualified investment products in which the amounts are invested are
 194-12  the property of the employing political subdivision or state
 194-13  agency, as appropriate, until the deferred amounts and investment
 194-14  income are distributed to the employee.  (V.A.C.S. Art. 6252-3g,
 194-15  Sec. 2.06.)
 194-16        Sec. 609.010.  LIABILITY; RESPONSIBILITY FOR MONITORING.  (a)
 194-17  The board of trustees, a state agency, a political subdivision, a
 194-18  plan administrator, or an employee of any of those persons is not
 194-19  liable to a participating employee for the diminution in value or
 194-20  loss of all or part of the participating employee's deferred
 194-21  amounts or investment income because of market conditions or the
 194-22  failure, insolvency, or bankruptcy of a qualified vendor.
 194-23        (b)  A participating employee is responsible for monitoring:
 194-24              (1)  the financial status of the qualified vendor in
 194-25  whose products the employee's deferred amounts and investment
 194-26  income are invested;
 194-27              (2)  market conditions; and
  195-1              (3)  the amount of the employee's deferred amounts and
  195-2  investment income that is invested in the qualified vendor's
  195-3  product.  (V.A.C.S. Art. 6252-3g, Secs.  1.04, 2.07.)
  195-4        Sec. 609.011.  NOTIFICATION BY 457 PLAN ADMINISTRATOR.  (a)
  195-5  The plan administrator of a 457 plan may notify an employee
  195-6  participating in the plan that the administrator believes that:
  195-7              (1)  a qualified vendor is having significant financial
  195-8  difficulties; or
  195-9              (2)  the amount of the employee's deferred amounts and
 195-10  investment income invested with a qualified vendor exceeds an
 195-11  insured or guaranteed level.
 195-12        (b)  A plan administrator is not liable to an employee for a
 195-13  loss resulting from the failure to notify the employee under this
 195-14  section.  (V.A.C.S. Art. 6252-3g, Sec. 2.08.)
 195-15        Sec. 609.012.  TRANSFER FROM A 457 PLAN VENDOR.  The plan
 195-16  administrator of a 457 plan may immediately transfer to the plan's
 195-17  deferred compensation trust fund all deferred amounts and
 195-18  investment income from a vendor who at any time fails to satisfy
 195-19  the requirements of this chapter or the plan administrator.
 195-20  Immediately after making the transfer, the plan administrator shall
 195-21  give to each employee whose deferred amounts and investment income
 195-22  were transferred a notice that states that:
 195-23              (1)  the vendor's investment products are ineligible to
 195-24  receive additional deferred amounts;
 195-25              (2)  the amounts have been transferred from the vendor
 195-26  to the deferred compensation trust fund; and
 195-27              (3)  the employee is required to promptly designate
  196-1  another qualified investment product to receive the transferred
  196-2  amount.  (V.A.C.S. Art. 6252-3g, Sec. 2.05 (part).)
  196-3        Sec. 609.013.  INABILITY TO DISTRIBUTE.  If a plan
  196-4  administrator cannot distribute promptly an employee's deferred
  196-5  amounts and investment income when a distribution is due and
  196-6  permissible under federal law, the plan administrator shall deposit
  196-7  the amount to be distributed in the deferred compensation trust
  196-8  fund defined by Section 609.101 or described by Section 609.512, as
  196-9  appropriate.  (V.A.C.S. Art. 6252-3g, Secs. 1.23, 1.44, 2.09.)
 196-10           (Sections 609.014-609.100 reserved for expansion)
 196-11            SUBCHAPTER B.  DEFERRED COMPENSATION PLANS FOR
 196-12                  EMPLOYEES OF POLITICAL SUBDIVISIONS
 196-13        Sec. 609.101.  DEFINITIONS.  In this subchapter:
 196-14              (1)  "Deferred compensation plan" means a plan
 196-15  established under this subchapter.
 196-16              (2)  "Deferred compensation trust fund" means the fund
 196-17  in which deferred amounts and investment income of participating
 196-18  employees are temporarily held.
 196-19              (3)  "Investment product" includes a life insurance
 196-20  policy, fixed or variable rate annuity, mutual fund, certificate of
 196-21  deposit, money market account, and passbook savings account.
 196-22  (V.A.C.S. Art. 6252-3g, Secs. 1.01(3), 1.11(1), 2.01(3), 2.21;
 196-23  New.)
 196-24        Sec. 609.102.  CREATION OF PLAN.  (a)  A political
 196-25  subdivision may create and administer for its employees a 401(k)
 196-26  plan under this subchapter.
 196-27        (b)  A political subdivision may create and administer for
  197-1  its employees a 457 plan under this subchapter.
  197-2        (c)  A political subdivision may contract with other
  197-3  political subdivisions to create a single deferred compensation
  197-4  plan for their employees under Subsection (a) or (b).  (V.A.C.S.
  197-5  Art. 6252-3g, Secs. 1.01(2), 1.12, 1.15, 2.01(2), 2.22, 2.24.)
  197-6        Sec. 609.103.  DESIGNATION OF PLAN ADMINISTRATOR.  (a)  A
  197-7  political subdivision that creates a deferred compensation plan
  197-8  shall designate a plan administrator for the plan.
  197-9        (b)  Political subdivisions that create a single plan shall
 197-10  designate jointly a plan administrator for the plan.
 197-11        (c)  A plan administrator may be an employee, a nonprofit
 197-12  corporation, an individual, a trustee, a private entity, another
 197-13  political subdivision, or an association of political subdivisions.
 197-14  (V.A.C.S. Art. 6252-3g, Secs. 1.17(a), (b), (c), 2.26.)
 197-15        Sec. 609.104.  REMOVAL OF PLAN ADMINISTRATOR.  A political
 197-16  subdivision or group of political subdivisions that designates a
 197-17  plan administrator may remove the plan administrator at any time
 197-18  unless specifically provided otherwise by contract.  (V.A.C.S. Art.
 197-19  6252-3g, Secs. 1.18(b), 2.27(b).)
 197-20        Sec. 609.105.  DELEGATION OF 401(k) PLAN ADMINISTRATOR'S
 197-21  AUTHORITY AND RESPONSIBILITIES.  A plan administrator of a 401(k)
 197-22  plan may delegate the administrator's authority and
 197-23  responsibilities under this subchapter to another person.
 197-24  (V.A.C.S. Art. 6252-3g, Sec. 1.17(d).)
 197-25        Sec. 609.106.  OVERSIGHT COMMITTEE.  (a)  A political
 197-26  subdivision or group of political subdivisions that creates a
 197-27  deferred compensation plan may direct and supervise the activities
  198-1  of the plan administrator through an oversight committee.
  198-2        (b)  The political subdivision or group shall determine the
  198-3  authority, activities, and composition of an oversight committee
  198-4  created under this section.  (V.A.C.S. Art. 6252-3g, Secs. 1.18(a),
  198-5  (c) (part), 2.27(a), (c) (part).)
  198-6        Sec. 609.107.  AUTHORITY OF PLAN ADMINISTRATOR.  (a)  A plan
  198-7  administrator shall execute necessary contracts for the
  198-8  administration of the deferred compensation plan, subject to any
  198-9  prior approval required by the political subdivision or group of
 198-10  political subdivisions that created the plan.
 198-11        (b)  A plan administrator shall develop and implement
 198-12  criteria and procedures for any matter not covered by this
 198-13  subchapter that the plan administrator considers appropriate for
 198-14  the operation of the deferred compensation plan.  (V.A.C.S.
 198-15  Art. 6252-3g, Secs. 1.18(c)(3), (11), 2.27(c)(4), (11).)
 198-16        Sec. 609.108.  INVESTMENT AND TRANSFER OF DEFERRED AMOUNTS
 198-17  AND INCOME.  The plan administrator shall:
 198-18              (1)  invest the deferred amounts and investment income
 198-19  of a participating employee in the qualified investment products
 198-20  designated by the employee; and
 198-21              (2)  transfer the deferred amounts and investment
 198-22  income of a participating employee from one qualified investment
 198-23  product to another on the employee's request.  (V.A.C.S. Art.
 198-24  6252-3g, Secs. 1.18(c)(1), (2), 2.04 (part), 2.27(c)(1), (2).)
 198-25        Sec. 609.109.  PARTICIPATION OF INDEPENDENT CONTRACTORS.  (a)
 198-26  The plan administrator shall determine whether a person who
 198-27  provides services as an independent contractor to a political
  199-1  subdivision that created the plan may participate in the deferred
  199-2  compensation plan.
  199-3        (b)  For the purposes of Subchapter A and this subchapter, an
  199-4  independent contractor that is authorized to participate in a
  199-5  deferred compensation plan is treated as an employee of the
  199-6  political subdivision creating the plan.  (V.A.C.S. Art. 6252-3g,
  199-7  Secs. 1.01(4) (part), 1.18(c)(10), 2.01(4) (part), 2.27(c)(10).)
  199-8        Sec. 609.110.  CHANGING AMOUNT DEFERRED.  An employee may
  199-9  change the amount to be deferred by notifying the plan
 199-10  administrator of the change in accordance with the requirements of
 199-11  the administrator.  (V.A.C.S. Art. 6252-3g, Secs. 1.16 (part), 2.25
 199-12  (part).)
 199-13        Sec. 609.111.  DISTRIBUTION.  A plan administrator shall
 199-14  develop and implement procedures for:
 199-15              (1)  the designation by a participating employee of a
 199-16  beneficiary to receive the employee's deferred amounts and
 199-17  investment income after the employee's death; and
 199-18              (2)  the distribution of a participating employee's
 199-19  deferred amounts and investment income to the employee or the
 199-20  employee's beneficiary, as appropriate, because of the employee's
 199-21  death or termination of employment, a financial hardship, or
 199-22  another reason permissible under federal law.  (V.A.C.S. Art.
 199-23  6252-3g, Secs. 1.18(c)(8), (9), 2.27(c)(8), (9).)
 199-24        Sec. 609.112.  FEE.  (a)  A political subdivision or group of
 199-25  political subdivisions that creates a deferred compensation plan
 199-26  may assess a fee for the administration of the plan against each
 199-27  participating employee.
  200-1        (b)  The political subdivision or group of political
  200-2  subdivisions shall determine the method for computing and assessing
  200-3  the fee.  (V.A.C.S. Art. 6252-3g, Secs. 1.14, 2.23.)
  200-4        Sec. 609.113.  EVALUATION AND APPROVAL OF QUALIFIED VENDOR.
  200-5  (a)  A plan administrator shall develop and implement criteria and
  200-6  procedures for evaluating a vendor's application to become a
  200-7  qualified vendor.
  200-8        (b)  A plan administrator may not approve a vendor's
  200-9  application if the vendor is:
 200-10              (1)  a state or national bank or savings and loan
 200-11  association, the deposits of which are not insured by the Federal
 200-12  Deposit Insurance Corporation;
 200-13              (2)  a credit union, the deposits of which are not
 200-14  insured by the National Credit Union Administration Board or the
 200-15  Texas Share Guaranty Credit Union; or
 200-16              (3)  an insurance company that:
 200-17                    (A)  is not a member of the Life, Accident,
 200-18  Health, and Hospital Service Insurance Guaranty Association; or
 200-19                    (B)  is an impaired or insolvent insurer under
 200-20  Article 21.28-D, Insurance Code.
 200-21        (c)  On written request, the Texas Department of Insurance
 200-22  shall certify in writing to a plan administrator whether an
 200-23  insurance company is prohibited from being approved as a qualified
 200-24  vendor under Subsection (b)(3).  The plan administrator may rely on
 200-25  the certification.  (V.A.C.S. Art. 6252-3g, Secs. 1.18(c)(4), 1.19,
 200-26  1.20, 2.27(c)(5), 2.28, 2.29, 2.31 (part).)
 200-27        Sec. 609.114.  NUMBER OF VENDORS UNDER 457 PLAN.  The plan
  201-1  administrator of a 457 plan shall determine the minimum and maximum
  201-2  number of vendors that may be qualified vendors for the plan at any
  201-3  given time.  (V.A.C.S. Art. 6252-3g, Sec. 2.27(c)(3).)
  201-4        Sec. 609.115.  CONTRACT WITH QUALIFIED VENDOR.  (a)  After a
  201-5  plan administrator approves an application of a vendor to become a
  201-6  qualified vendor or, under a 401(k) plan, after the plan
  201-7  administrator approves an application of a vendor to become a
  201-8  qualified vendor and approves the vendor's investment products, the
  201-9  plan administrator shall execute a written contract with the vendor
 201-10  to participate in the deferred compensation plan.
 201-11        (b)  A plan administrator shall develop and implement
 201-12  criteria and procedures for evaluating a qualified vendor's
 201-13  investment products to determine whether those products are
 201-14  acceptable as qualified investment products.
 201-15        (c)  A qualified vendor may offer to employees participating
 201-16  in a 457 plan only qualified investment products.  (V.A.C.S. Art.
 201-17  6252-3g, Secs. 1.18(c)(6), 1.21, 2.27(c)(7), 2.30.)
 201-18        Sec. 609.116.  REGULATION OF QUALIFIED VENDORS.  A plan
 201-19  administrator shall develop and implement requirements for
 201-20  qualified vendors and their employees concerning disclosure,
 201-21  reporting, standards of conduct, solicitation, advertising,
 201-22  relationships with participating employees, the nature and quality
 201-23  of services provided to those employees, and other matters.
 201-24  (V.A.C.S. Art. 6252-3g, Secs. 1.18(c)(5), 2.27(c)(6).)
 201-25        Sec. 609.117.  LOANS UNDER 401(k) PLAN.  The plan
 201-26  administrator of a 401(k) plan shall develop and implement
 201-27  procedures to efficiently administer a program that allows a
  202-1  qualified vendor to lend money to a participating employee.
  202-2  (V.A.C.S. Art. 6252-3g, Sec. 1.18(c)(7).)
  202-3        Sec. 609.118.  TRUST FOR 401(k) PLAN.  A political
  202-4  subdivision or group of political subdivisions that creates a
  202-5  401(k) plan may:
  202-6              (1)  establish a trust to hold deferred amounts and
  202-7  investment income for the benefit of participating employees; and
  202-8              (2)  act as trustee of the trust.  (V.A.C.S. Art.
  202-9  6252-3g, Sec. 1.13.)
 202-10        Sec. 609.119.  TRANSFER ON VENDOR'S FAILURE.  A political
 202-11  subdivision or group of subdivisions that creates a deferred
 202-12  compensation plan may authorize or require as a part of the plan
 202-13  that the plan administrator immediately transfer to the deferred
 202-14  compensation trust fund all deferred amounts and investment income
 202-15  from a vendor who fails to satisfy the requirements of this
 202-16  subchapter or the plan administrator.  (V.A.C.S. Art. 6252-3g,
 202-17  Secs. 1.22 (part), 2.31 (part).)
 202-18           (Sections 609.120-609.500 reserved for expansion)
 202-19            SUBCHAPTER C.  DEFERRED COMPENSATION PLANS FOR
 202-20                      EMPLOYEES OF STATE AGENCIES
 202-21        Sec. 609.501.  DEFINITION.  In this subchapter, "deferred
 202-22  compensation plan" means a plan established under this subchapter.
 202-23  (New.)
 202-24        Sec. 609.502.  CREATION OF PLAN; PARTICIPATION.  (a)  The
 202-25  board of trustees of the Employees Retirement System of Texas is
 202-26  the plan administrator of a 401(k) plan known as TexaSaver
 202-27  established under this subchapter.
  203-1        (b)  The board of trustees is the plan administrator of a 457
  203-2  plan established under this subchapter.
  203-3        (c)  The board of trustees shall administer all aspects of
  203-4  each plan.
  203-5        (d)  The board of trustees may designate a person to assist
  203-6  in the execution of the board's authority and responsibilities as
  203-7  plan administrator.
  203-8        (e)  A state agency may participate in either or both plans.
  203-9  (V.A.C.S. Art. 6252-3g, Secs. 1.01(2), 1.32, 1.35, 2.01(2), 2.41,
 203-10  2.44.)
 203-11        Sec. 609.503.  CHANGING AMOUNT DEFERRED.  An employee may
 203-12  change the amount to be deferred by giving written notification of
 203-13  the change to the board of trustees.  (V.A.C.S. Art. 6252-3g, Secs.
 203-14  1.42 (part), 2.50 (part).)
 203-15        Sec. 609.504.  INVESTMENT AND TRANSFER OF DEFERRED AMOUNTS
 203-16  AND INCOME.  After execution of a contract under Section 609.007,
 203-17  the board of trustees shall:
 203-18              (1)  invest the deferred amounts and investment income
 203-19  of the employee in the qualified investment products designated in
 203-20  writing by the employee; and
 203-21              (2)  promptly transfer the deferred amounts and
 203-22  investment income of the employee from one qualified investment
 203-23  product to another on the employee's written request.  (V.A.C.S.
 203-24  Art. 6252-3g, Secs. 1.43, 2.04 (part), 2.51.)
 203-25        Sec. 609.505.  QUALIFIED VENDOR.  (a)  The board of trustees,
 203-26  in accordance with rules adopted under this subchapter, may
 203-27  contract with a qualified vendor to participate in a deferred
  204-1  compensation plan.
  204-2        (b)  In a contract under Subsection (a), the board of
  204-3  trustees may require the vendor to be audited annually by an
  204-4  independent auditor paid by the vendor.   (V.A.C.S. Art. 6252-3g,
  204-5  Secs. 1.39, 2.48.)
  204-6        Sec. 609.506.  INSURANCE COMPANY AS QUALIFIED VENDOR.  On
  204-7  written request, the Texas Department of Insurance shall certify in
  204-8  writing to the board of trustees whether an insurance company is
  204-9  eligible to be a qualified vendor under rules adopted by the board.
 204-10  The board is entitled to rely on the certification.  (V.A.C.S. Art.
 204-11  6252-3g, Secs. 1.38, 2.47.)
 204-12        Sec. 609.507.  FINANCIAL INSTITUTION AS QUALIFIED VENDOR.
 204-13  (a)  Each bank or savings and loan association that is a qualified
 204-14  vendor shall:
 204-15              (1)  treat deferred amounts and investment income as
 204-16  state funds; and
 204-17              (2)  comply with Chapter 404.
 204-18        (b)  The state treasurer shall monitor each bank or savings
 204-19  and loan association that is a qualified vendor for compliance with
 204-20  Chapter 404.  The state treasurer shall immediately notify the
 204-21  board of trustees of a violation of that chapter that the treasurer
 204-22  observes.
 204-23        (c)  The board of trustees is entitled to rely on the
 204-24  supervision of the state treasurer.  (V.A.C.S. Art. 6252-3g, Secs.
 204-25  1.37, 2.46.)
 204-26        Sec. 609.508.  RULES.  The board of trustees may adopt rules,
 204-27  including plans and procedures, and orders necessary to carry out
  205-1  the purposes of this subchapter, including rules or orders relating
  205-2  to:
  205-3              (1)  the selection and regulation of vendors for a
  205-4  deferred compensation plan;
  205-5              (2)  the regulation of the practices of agents employed
  205-6  by vendors;
  205-7              (3)  the disclosure of information concerning
  205-8  investment products;
  205-9              (4)  the regulation of advertising materials to be used
 205-10  by vendors; and
 205-11              (5)  the submission of financial information by a
 205-12  vendor.  (V.A.C.S. Art. 6252-3g, Secs. 1.36, 2.45.)
 205-13        Sec. 609.509.  CONTRACTS FOR GOODS AND SERVICES.  (a)  The
 205-14  board of trustees may contract for necessary goods and consolidated
 205-15  billing, accounting, and other services to be provided in
 205-16  connection with a deferred compensation plan.
 205-17        (b)  In a contract under Subsection (a), the board of
 205-18  trustees may provide for the board to audit periodically the person
 205-19  with whom the contract is made.  The audit may cover:
 205-20              (1)  the proper handling and accounting of state funds;
 205-21  and
 205-22              (2)  other matters related to the proper performance of
 205-23  the contract.
 205-24        (c)  The board of trustees may contract with a private entity
 205-25  to conduct the audit under Subsection (b).  (V.A.C.S. Art. 6252-3g,
 205-26  Secs. 1.40, 2.49(a), (b).)
 205-27        Sec. 609.510.  EXEMPTION FOR CERTAIN CONTRACTS.  A contract
  206-1  authorized by Section 609.505 for TexaSaver or by Section 609.509
  206-2  for either deferred compensation plan is exempt from:
  206-3              (1)  the State Purchasing and General Services Act
  206-4  (Article 601b, Vernon's Texas Civil Statutes);
  206-5              (2)  Chapter 463; and
  206-6              (3)  Chapter 2254.  (V.A.C.S. Art. 6252-3g, Secs. 1.41,
  206-7  2.49(c).)
  206-8        Sec. 609.511.  FEE.  (a)  The board of trustees may assess a
  206-9  fee against participating employees or qualified vendors, or both
 206-10  the employees and the qualified vendors, in the manner and to the
 206-11  extent it determines necessary to cover the costs of administering
 206-12  the plan.
 206-13        (b)  The board of trustees shall determine the method for
 206-14  computing and assessing a fee under this section.  (V.A.C.S. Art.
 206-15  6252-3g, Secs. 1.34(a), 2.43(a).)
 206-16        Sec. 609.512.  DEFERRED COMPENSATION PLAN TRUST FUNDS.  (a)
 206-17  The TexaSaver trust fund is in the state treasury.  The fund is for
 206-18  the benefit of TexaSaver.
 206-19        (b)  The deferred compensation trust fund is in the state
 206-20  treasury.  The fund is for the benefit of the deferred compensation
 206-21  plan described by Section 609.502(a).
 206-22        (c)  The board of trustees shall administer each trust fund.
 206-23        (d)  Deferred amounts, fees collected under Section 609.511,
 206-24  and state appropriations for the administration of a deferred
 206-25  compensation plan shall be credited to the appropriate trust fund.
 206-26        (e)  The interest on and earnings of amounts in a trust fund
 206-27  and the proceeds from the sale of investments shall be credited to
  207-1  the fund.
  207-2        (f)  The amounts credited to a trust fund are available
  207-3  without fiscal year limitation:
  207-4              (1)  to pay expenses for administering the deferred
  207-5  compensation plan for which the trust fund was established; and
  207-6              (2)  to purchase qualified investment products for
  207-7  participants of the appropriate plan.
  207-8        (g)  The board of trustees may establish accounts in a trust
  207-9  fund that it considers necessary, including an account for the
 207-10  administration of the deferred compensation plan for which the
 207-11  trust fund was established.
 207-12        (h)  The board of trustees may transfer assets from one
 207-13  account of a trust fund to another account of the fund for
 207-14  financial management purposes if adequate arrangements are made to:
 207-15              (1)  reimburse the account from which the transfer is
 207-16  made; and
 207-17              (2)  pay administrative expenses.
 207-18        (i)  The board of trustees may invest and reinvest money in a
 207-19  trust fund subject only to the duty of care provided by Section
 207-20  815.307 that would apply if the investments were being made for the
 207-21  Employees Retirement System of Texas.  (V.A.C.S. Art. 6252-3g,
 207-22  Secs. 1.33, 1.34(b) (part), 2.42, 2.43(b).)
 207-23        Sec. 609.513.  DISCRETIONARY TRANSFER.  (a)  The board of
 207-24  trustees may transfer an employee's deferred amounts and investment
 207-25  income from a qualified investment product to the trust fund of the
 207-26  deferred compensation plan in which the employee participates if
 207-27  the board of trustees determines that the transfer is in the best
  208-1  interest of the plan and the employee.
  208-2        (b)  The board of trustees is not required to give notice of
  208-3  a transfer under Subsection (a) to the employee before the transfer
  208-4  occurs.
  208-5        (c)  Promptly after a transfer under Subsection (a) occurs,
  208-6  the board of trustees shall give to the employee a notice that:
  208-7              (1)  states the reason for the transfer; and
  208-8              (2)  requests that the employee promptly designate
  208-9  another qualified investment product to receive the transferred
 208-10  amount.  (V.A.C.S. Art. 6252-3g, Secs. 1.46, 2.52.)
 208-11        Sec. 609.514.  ALTERNATIVE TO FUND DEPOSIT.  Instead of
 208-12  depositing deferred amounts and investment income in the trust fund
 208-13  of the deferred compensation plan, the board of trustees may invest
 208-14  them in a qualified investment product specifically designated by
 208-15  the board for that purpose.  (V.A.C.S. Art. 6252-3g, Secs. 1.47,
 208-16  2.53.)
 208-17        Sec. 609.515.  FIDUCIARY INSURANCE.  In the administration of
 208-18  a deferred compensation plan, the board of trustees may purchase
 208-19  liability insurance for the coverage of the trustees, employees,
 208-20  and agents of the board in the amounts that the board, in its sole
 208-21  discretion, considers reasonable and necessary.  (V.A.C.S. Art.
 208-22  6252-3g, Sec. 2.55.)
 208-23          CHAPTER 610.  CHILD CARE EXPENSE SALARY REDUCTIONS
 208-24                   SUBCHAPTER A.  GENERAL PROVISIONS
 208-25  Sec. 610.001.  DEFINITIONS
 208-26  Sec. 610.002.  ELIGIBLE EXPENSES
 208-27           (Sections 610.003-610.010 reserved for expansion)
  209-1                    SUBCHAPTER B.  STATE EMPLOYEES
  209-2  Sec. 610.011.  SALARY REDUCTION AGREEMENTS FOR STATE
  209-3                   EMPLOYEES
  209-4  Sec. 610.012.  STATE EMPLOYEES PAID THROUGH COMPTROLLER
  209-5  Sec. 610.013.  STATE EMPLOYEES NOT PAID THROUGH COMPTROLLER
  209-6  Sec. 610.014.  RULES
  209-7           (Sections 610.015-610.020 reserved for expansion)
  209-8                 SUBCHAPTER C.  OTHER PUBLIC EMPLOYEES
  209-9  Sec. 610.021.  SALARY REDUCTION AGREEMENTS FOR SCHOOL DISTRICT
 209-10                   EMPLOYEES
 209-11          CHAPTER 610.  CHILD CARE EXPENSE SALARY REDUCTIONS
 209-12                   SUBCHAPTER A.  GENERAL PROVISIONS
 209-13        Sec. 610.001.  DEFINITIONS.  In this chapter:
 209-14              (1)  "School district" has the meaning assigned by
 209-15  Section 11.13, Tax Code.
 209-16              (2)  "School district employee" means a person who
 209-17  receives compensation for service performed, other than as an
 209-18  independent contractor, for a school district.
 209-19              (3)  "State agency" means:
 209-20                    (A)  a board, commission, department, office, or
 209-21  other agency that is in the executive branch of state government
 209-22  and that was created by the constitution or a statute of the state,
 209-23  including an institution of higher education as defined by Section
 209-24  61.003, Education Code;
 209-25                    (B)  the legislature or a legislative agency; or
 209-26                    (C)  the Supreme Court of Texas, the Texas Court
 209-27  of Criminal Appeals, a court of appeals, or a state judicial
  210-1  agency.
  210-2              (4)  "State employee" means:
  210-3                    (A)  a person who receives compensation for
  210-4  service performed, other than as an independent contractor, for a
  210-5  state agency; or
  210-6                    (B)  a district judge.  (V.A.C.S. Art. 6252-3d,
  210-7  Sec. 1.)
  210-8        Sec. 610.002.  ELIGIBLE EXPENSES.  Child care expenses are
  210-9  eligible for payment under a salary reduction agreement entered
 210-10  into under this chapter only if the expenses meet the requirements
 210-11  for exclusion from gross income as provided by Section 129 of the
 210-12  federal Internal Revenue Code of 1986 (26 U.S.C. Section 129).
 210-13  (V.A.C.S. Art. 6252-3d, Secs. 2(a) (part), 3 (part).)
 210-14           (Sections 610.003-610.010 reserved for expansion)
 210-15                    SUBCHAPTER B.  STATE EMPLOYEES
 210-16        Sec. 610.011.  SALARY REDUCTION AGREEMENTS FOR STATE
 210-17  EMPLOYEES.  (a)  The state may enter into an agreement with a state
 210-18  employee to reduce the employee's periodic compensation paid by the
 210-19  state by an amount to be paid for child care expenses.
 210-20        (b)  A state employee may request the salary reduction
 210-21  agreement by filing a written request for the reduction, on a form
 210-22  prescribed by the comptroller, with the payroll officer of the
 210-23  state agency with which the employee is employed.
 210-24        (c)  A state employee is entitled to select the recipient of
 210-25  payments under the salary reduction agreement.  (V.A.C.S. Art.
 210-26  6252-3d, Secs. 2(a) (part), (e).)
 210-27        Sec. 610.012.  STATE EMPLOYEES PAID THROUGH COMPTROLLER.  (a)
  211-1  The payroll officer of a state agency having employees who are paid
  211-2  by warrant issued by the comptroller shall send to the comptroller
  211-3  a copy of each request filed by an employee of the agency under
  211-4  Section 610.011.
  211-5        (b)  If the comptroller determines that an employee's request
  211-6  meets the applicable requirements for exclusion from gross income
  211-7  for federal tax purposes, the comptroller, on the state's behalf,
  211-8  shall enter into a salary reduction agreement with the requesting
  211-9  employee.
 211-10        (c)  The comptroller shall make payments in the amount by
 211-11  which an employee's compensation is reduced in the manner specified
 211-12  by the employee's salary reduction agreement.  (V.A.C.S. Art.
 211-13  6252-3d, Sec. 2(c).)
 211-14        Sec. 610.013.  STATE EMPLOYEES NOT PAID THROUGH COMPTROLLER.
 211-15  (a)  The payroll officer of a state agency having employees who are
 211-16  not paid by warrant issued by the comptroller may enter into a
 211-17  salary reduction agreement with a requesting employee of the
 211-18  agency.
 211-19        (b)  A payroll officer who enters into the salary reduction
 211-20  agreement shall make payments in the amount by which an employee's
 211-21  compensation is reduced in the manner specified by the agreement.
 211-22        (c)  A payroll officer's actions under this section are
 211-23  subject to applicable rules adopted by the comptroller under this
 211-24  subchapter.  (V.A.C.S. Art. 6252-3d, Sec. 2(d).)
 211-25        Sec. 610.014.  RULES.  The comptroller shall adopt rules for
 211-26  administering the program authorized by Section 610.011, including
 211-27  rules for determining eligibility for exclusion from gross income
  212-1  for federal tax purposes of amounts by which a state employee's
  212-2  salary may be reduced.  (V.A.C.S. Art. 6252-3d, Sec. 2(b).)
  212-3           (Sections 610.015-610.020 reserved for expansion)
  212-4                 SUBCHAPTER C.  OTHER PUBLIC EMPLOYEES
  212-5        Sec. 610.021.  SALARY REDUCTION AGREEMENTS FOR SCHOOL
  212-6  DISTRICT EMPLOYEES.  (a)  The governing body of a school district
  212-7  may authorize a school district employee to enter into an agreement
  212-8  with the school district to reduce the periodic compensation paid
  212-9  the employee by the school district by an amount to be paid for
 212-10  child care expenses.
 212-11        (b)  The governing body of a school district may adopt rules
 212-12  for participating in and administering the program authorized by
 212-13  this section.  (V.A.C.S. Art. 6252-3d, Sec. 3 (part).)
 212-14         CHAPTER 611.  LODGING, MEAL, AND TRAVEL REIMBURSEMENT
 212-15  Sec. 611.001.  LODGING AND MEAL EXPENSES
 212-16  Sec. 611.002.  COMMON CARRIER FARES
 212-17         CHAPTER 611.  LODGING, MEAL, AND TRAVEL REIMBURSEMENT
 212-18        Sec. 611.001.  LODGING AND MEAL EXPENSES.  (a)  An officer or
 212-19  employee of the state or of a political subdivision, including any
 212-20  special-purpose district or authority, may be reimbursed with
 212-21  public funds for lodging or meal expenses only to the extent the
 212-22  expenses are reasonable and necessary under guidelines issued by
 212-23  the Texas Ethics Commission.
 212-24        (b)  This section does not apply if the expenses are
 212-25  restricted by other law.  (V.A.C.S. Art. 6823b, Sec. 1.)
 212-26        Sec. 611.002.  COMMON CARRIER FARES.  An officer or employee
 212-27  described by Section 611.001 may not be reimbursed for
  213-1  transportation expenses on a common carrier in an amount exceeding
  213-2  the lowest available fare.  (V.A.C.S. Art. 6823b, Sec. 2.)
  213-3                   CHAPTER 612.  LIABILITY INSURANCE
  213-4  Sec. 612.001.  MOTOR VEHICLE LIABILITY INSURANCE FOR PEACE
  213-5                   OFFICERS AND FIRE FIGHTERS
  213-6  Sec. 612.002.  LIABILITY INSURANCE FOR CERTAIN STATE
  213-7                   EMPLOYEES
  213-8  Sec. 612.003.  LIABILITY INSURANCE FOR CERTAIN STATE PROGRAMS
  213-9                   CHAPTER 612.  LIABILITY INSURANCE
 213-10        Sec. 612.001.  Motor Vehicle Liability Insurance for Peace
 213-11  Officers and Fire Fighters.  (a)  The state shall provide for
 213-12  insuring each peace officer and fire fighter in its employ against
 213-13  liability to third persons arising out of the operation,
 213-14  maintenance, or use of a motor vehicle owned or leased by the
 213-15  state.
 213-16        (b)  The liability coverage provided under this section must
 213-17  be in amounts not less than those required by the Texas Motor
 213-18  Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
 213-19  Civil Statutes) to provide proof of financial responsibility.
 213-20        (c)  The state may elect to be self-insured or to reimburse
 213-21  the actual cost of an extended automobile liability insurance
 213-22  endorsement obtained by a peace officer or fire fighter on an
 213-23  individually owned automobile liability insurance policy.  The
 213-24  extended endorsement must:
 213-25              (1)  be in the amount required by Subsection (b); and
 213-26              (2)  extend the coverage to include the operation and
 213-27  use of vehicles by a peace officer or fire fighter in the scope of
  214-1  the officer's or fire fighter's employment.
  214-2        (d)  If the reimbursement method is used, the state may
  214-3  require a peace officer or fire fighter who operates and uses a
  214-4  motor vehicle to present proof that an extended coverage
  214-5  endorsement has been purchased and is in effect for the period of
  214-6  reimbursement.
  214-7        (e)  In this section, "motor vehicle" means any motor vehicle
  214-8  for which motor vehicle automobile insurance may be written under
  214-9  Subchapter A, Chapter 5, Insurance Code.  (V.A.C.S. Art. 999e.)
 214-10        Sec. 612.002.  LIABILITY INSURANCE FOR CERTAIN STATE
 214-11  EMPLOYEES.  (a)  A state agency that owns and operates a motor
 214-12  vehicle, an item of power equipment, an aircraft, or a motorboat or
 214-13  other watercraft of any type or size may insure its employees
 214-14  against liability arising out of the operation, maintenance, or use
 214-15  of the motor vehicle, item of power equipment, aircraft, or
 214-16  motorboat or other watercraft.
 214-17        (b)  A state agency that elects to provide insurance under
 214-18  this section shall purchase one or more policies from a liability
 214-19  insurance company authorized to transact business in this state.
 214-20  The liability insurance purchased under this section must be
 214-21  provided on policy forms approved by the State Board of Insurance
 214-22  as to form and by the attorney general as to liability coverage.
 214-23        (c)  An employee of a state agency that elects not to insure
 214-24  its employees against liability under Subsection (a) is entitled to
 214-25  reimbursement, from maintenance funds of the agency, for any amount
 214-26  spent by the employee for liability insurance that is required by
 214-27  the agency.
  215-1        (d)  The comptroller shall provide forms for claims of
  215-2  employee reimbursement under Subsection (c).  The forms shall
  215-3  require a certification from the head of the state agency that:
  215-4              (1)  a regular part of the employee's duties is the
  215-5  operation of a state-owned motor vehicle, item of power equipment,
  215-6  aircraft, or motorboat or other watercraft; and
  215-7              (2)  the agency requires the employee to maintain
  215-8  liability insurance as a prerequisite to the operation of a
  215-9  state-owned motor vehicle, item of power equipment, aircraft, or
 215-10  motorboat or other watercraft.
 215-11        (e)  This section does not waive state immunity from
 215-12  liability for the torts of negligence of its employees.
 215-13        (f)  In this section:
 215-14              (1)  "Employee" includes an officer of a state agency.
 215-15              (2)  "State agency" means an agency, a department,
 215-16  board, commission, or other entity in the executive, legislative,
 215-17  or judicial branch of state government.  (V.A.C.S. Art. 6252-19a,
 215-18  Secs. 1 (part), 2-5; New.)
 215-19        Sec. 612.003.  LIABILITY INSURANCE FOR CERTAIN STATE
 215-20  PROGRAMS.  (a)  A state agency that receives federal grant funds
 215-21  for a foster grandparent program may spend those funds to insure
 215-22  the persons and property of the foster grandparents as required by
 215-23  the grant.
 215-24        (b)  A state agency that operates an integrated day-care
 215-25  program that serves children with mental illness or developmental
 215-26  disabilities or who participate in an early childhood intervention
 215-27  program, as well as other children, may purchase insurance to cover
  216-1  liability arising from the operation of the program.  (V.A.C.S.
  216-2  Art. 6252-19a, Sec. 1 (part).)
  216-3         CHAPTER 613.  REEMPLOYMENT FOLLOWING MILITARY SERVICE
  216-4                      SUBCHAPTER A.  REEMPLOYMENT
  216-5  Sec. 613.001.  DEFINITIONS
  216-6  Sec. 613.002.  REEMPLOYMENT TO SAME POSITION FOLLOWING
  216-7                   MILITARY SERVICE
  216-8  Sec. 613.003.  REEMPLOYMENT TO ANOTHER POSITION FOLLOWING
  216-9                   MILITARY SERVICE
 216-10  Sec. 613.004.  APPLICATION FOR REEMPLOYMENT
 216-11  Sec. 613.005.  DISCHARGE FOLLOWING REEMPLOYMENT
 216-12  Sec. 613.006.  ENTITLEMENT TO RETIREMENT OR OTHER BENEFITS
 216-13           (Sections 613.007-613.020 reserved for expansion)
 216-14                      SUBCHAPTER B.  ENFORCEMENT
 216-15  Sec. 613.021.  COMPLIANCE WITH LAW; HEARING
 216-16  Sec. 613.022.  DISTRICT ATTORNEY
 216-17  Sec. 613.023.  COURT COSTS AND FEES
 216-18         CHAPTER 613.  REEMPLOYMENT FOLLOWING MILITARY SERVICE
 216-19                      SUBCHAPTER A.  REEMPLOYMENT
 216-20        Sec. 613.001.  DEFINITIONS.  In this subchapter:
 216-21              (1)  "Local governmental entity" means a  county,
 216-22  municipality, or other political subdivision of this state.
 216-23              (2)  "Military service" means service as a member of:
 216-24                    (A)  the Armed Forces of the United States;
 216-25                    (B)  the Texas National Guard;
 216-26                    (C)  the Texas State Guard; or
 216-27                    (D)  a reserve component of the Armed Forces of
  217-1  the United States.
  217-2              (3)  "Public employee" means an employee of the state,
  217-3  a state institution, or a local governmental entity.  The term does
  217-4  not include a temporary employee, an elected official, or an
  217-5  individual serving under an appointment that requires confirmation
  217-6  by the senate.  (New.)
  217-7        Sec. 613.002.  REEMPLOYMENT TO SAME POSITION FOLLOWING
  217-8  MILITARY SERVICE.  (a)  A public employee who leaves a state
  217-9  position or a position with a  local governmental entity to enter
 217-10  active military service is entitled to be reemployed:
 217-11              (1)  by the state or the local governmental entity;
 217-12              (2)  in the same department, office, commission, or
 217-13  board of this state, a state institution, or local governmental
 217-14  entity in which the employee was employed at the time of the
 217-15  employee's induction or enlistment in, or order to, active military
 217-16  service; and
 217-17              (3)  in:
 217-18                    (A)  the same position held at the time of the
 217-19  induction, enlistment, or order; or
 217-20                    (B)  a position of similar seniority, status, and
 217-21  pay.
 217-22        (b)  To be entitled to reemployment under Subsection (a), the
 217-23  employee must be:
 217-24              (1)  discharged, separated, or released from active
 217-25  military service under honorable conditions not later than the
 217-26  fifth anniversary of the date of induction, enlistment, or call to
 217-27  active military service; and
  218-1              (2)  physically and mentally qualified to perform the
  218-2  duties of that position.  (V.A.C.S. Art. 6252-4a, Sec. 1.)
  218-3        Sec. 613.003.  REEMPLOYMENT TO ANOTHER POSITION FOLLOWING
  218-4  MILITARY SERVICE.  A public employee who cannot perform the duties
  218-5  of a position to which the employee is otherwise entitled under
  218-6  Section 613.002 because of a disability the employee sustained
  218-7  during military service is entitled to be reemployed in the
  218-8  department, office, commission, or board of the state, a state
  218-9  institution, or a local governmental entity in a position that the
 218-10  employee can perform and that has:
 218-11              (1)  like seniority, status, and pay as the former
 218-12  position; or
 218-13              (2)  the nearest possible seniority, status, and pay to
 218-14  the former position.  (V.A.C.S. Art. 6252-4a, Sec. 2.)
 218-15        Sec. 613.004.  APPLICATION FOR REEMPLOYMENT.  (a)  A veteran
 218-16  eligible for reemployment under this chapter must apply for
 218-17  reemployment not later than the 90th day after the date the veteran
 218-18  is discharged or released from active military service.
 218-19        (b)  An application for reemployment must:
 218-20              (1)  be made to the head of the department, office,
 218-21  commission, or board of this state, the state institution, or the
 218-22  local governmental entity that employed the veteran before the
 218-23  veteran entered military service;
 218-24              (2)  be in writing; and
 218-25              (3)  have attached to it evidence of the veteran's
 218-26  discharge, separation, or release from military service under
 218-27  honorable conditions.  (V.A.C.S. Art. 6252-4a, Sec. 4.)
  219-1        Sec. 613.005.  DISCHARGE FOLLOWING REEMPLOYMENT.  An
  219-2  individual reemployed under this chapter may not be discharged from
  219-3  the position without cause before the first anniversary of the date
  219-4  of reemployment.  (V.A.C.S. Art. 6252-4a, Sec. 3 (part).)
  219-5        Sec. 613.006.  ENTITLEMENT TO RETIREMENT OR OTHER BENEFITS.
  219-6  An individual reemployed under this chapter is considered to have
  219-7  been on furlough or leave of absence during the time the individual
  219-8  was in military service and may participate in retirement or other
  219-9  benefits to which a public employee is or may be entitled.
 219-10  (V.A.C.S. Art. 6252-4a, Sec. 3 (part).)
 219-11           (Sections 613.007-613.020 reserved for expansion)
 219-12                      SUBCHAPTER B.  ENFORCEMENT
 219-13        Sec. 613.021.  COMPLIANCE WITH LAW; HEARING.  (a)  If a
 219-14  public official fails to comply with a provision of Subchapter A, a
 219-15  district court in the district in which the individual is a public
 219-16  official may require the public official to comply with the
 219-17  provision on the filing of a motion, petition, or other appropriate
 219-18  pleading by an individual entitled to a benefit under the
 219-19  provision.
 219-20        (b)  The court shall order a speedy hearing and shall advance
 219-21  the hearing on the calendar.  (V.A.C.S. Art. 6252-4a, Sec. 5
 219-22  (part).)
 219-23        Sec. 613.022.  DISTRICT ATTORNEY.  On application to the
 219-24  district attorney of the appropriate district by an individual who
 219-25  the district attorney reasonably believes is entitled to the
 219-26  benefit of a provision of Subchapter A, the district attorney
 219-27  shall:
  220-1              (1)  appear and act as attorney for the individual in
  220-2  an amicable adjustment of the claim; or
  220-3              (2)  file or prosecute a motion, petition, or other
  220-4  appropriate pleading to specifically require compliance with the
  220-5  provision.  (V.A.C.S. Art. 6252-4a, Sec. 5 (part).)
  220-6        Sec. 613.023.  COURT COSTS AND FEES.  A person applying for
  220-7  benefits under Subchapter A may not be charged court costs or fees
  220-8  for a claim, motion, petition, or other pleading filed under
  220-9  Section 613.021.  (V.A.C.S. Art. 6252-4a, Sec. 5 (part).)
 220-10            CHAPTER 614.  PEACE OFFICERS AND FIRE FIGHTERS
 220-11  SUBCHAPTER A.  LEGISLATIVE LEAVE FOR PEACE OFFICER OR FIRE FIGHTER
 220-12  Sec. 614.001.  DEFINITIONS
 220-13  Sec. 614.002.  APPLICABILITY OF SUBCHAPTER
 220-14  Sec. 614.003.  ENTITLEMENT TO LEGISLATIVE LEAVE
 220-15  Sec. 614.004.  ELIGIBILITY FOR LEGISLATIVE LEAVE
 220-16  Sec. 614.005.  MONEY REQUIRED TO OFFSET COSTS OF LEGISLATIVE
 220-17                   LEAVE
 220-18  Sec. 614.006.  EMPLOYER TO GRANT LEGISLATIVE LEAVE;
 220-19                   EXCEPTIONS
 220-20  Sec. 614.007.  INSUFFICIENCY IN NUMBER OF EMPLOYEES; EXCHANGE OF
 220-21                   TIME BY OTHER EMPLOYEES
 220-22  Sec. 614.008.  LEGISLATIVE LEAVE NOT A BREAK IN SERVICE
 220-23  Sec. 614.009.  LEGISLATIVE LEAVE TO ATTEND SESSION OF
 220-24                   CONGRESS
 220-25  Sec. 614.010.  EMPLOYEES' ASSOCIATION MAY NOT REIMBURSE CERTAIN
 220-26                   COSTS
 220-27           (Sections 614.011-614.020 reserved for expansion)
  221-1      SUBCHAPTER B.  COMPLAINT AGAINST LAW ENFORCEMENT OFFICER OR
  221-2                             FIRE FIGHTER
  221-3  Sec. 614.021.  APPLICABILITY OF SUBCHAPTER
  221-4  Sec. 614.022.  COMPLAINT TO BE IN WRITING AND SIGNED BY
  221-5                   COMPLAINANT
  221-6  Sec. 614.023.  COPY OF COMPLAINT TO BE GIVEN TO OFFICER OR
  221-7                   EMPLOYEE
  221-8           (Sections 614.024-614.040 reserved for expansion)
  221-9    SUBCHAPTER C.  PROHIBITION AGAINST COLLECTING DEBT FOR ANOTHER
 221-10  Sec. 614.041.  COLLECTING DEBT FOR ANOTHER; OFFENSE
 221-11           (Sections 614.042-614.050 reserved for expansion)
 221-12     SUBCHAPTER D.  PURCHASE OF AGENCY-ISSUED FIREARM OF HONORABLY
 221-13                   RETIRED OR DECEASED PEACE OFFICER
 221-14  Sec. 614.051.  PURCHASE OF FIREARM BY HONORABLY RETIRED PEACE
 221-15                   OFFICER
 221-16  Sec. 614.052.  PURCHASE OF FIREARM BY SURVIVING SPOUSE, CHILD, OR
 221-17                   PARENT OF DECEASED PEACE OFFICER
 221-18  Sec. 614.053.  PURCHASE PRICE OF FIREARM
 221-19  Sec. 614.054.  WHEN FIREARM MAY BE PURCHASED FROM STATE AGENCY;
 221-20                   DELAY OF SALE BY AGENCY
 221-21            CHAPTER 614.  PEACE OFFICERS AND FIRE FIGHTERS
 221-22  SUBCHAPTER A.  LEGISLATIVE LEAVE FOR PEACE OFFICER OR FIRE FIGHTER
 221-23        Sec. 614.001.  DEFINITIONS.  In this subchapter:
 221-24              (1)  "Employer" means the governmental entity that
 221-25  employs or appoints a peace officer or fire fighter or that the
 221-26  peace officer or fire fighter is elected to serve.
 221-27              (2)  "Fire fighter" means a member of a fire department
  222-1  who performs a function listed in Section 143.003(4), Local
  222-2  Government Code, without regard to whether the individual is
  222-3  subject to a civil service system or program.
  222-4              (3)  "Peace officer" means an individual elected,
  222-5  appointed, or employed to serve as a peace officer for a
  222-6  governmental entity under Article 2.12, Code of Criminal Procedure,
  222-7  or other law.  (V.A.C.S. Art. 6252-4c, Sec. 2.)
  222-8        Sec. 614.002.  APPLICABILITY OF SUBCHAPTER.  This subchapter
  222-9  applies only to a peace officer or fire fighter employed by:
 222-10              (1)  the state;
 222-11              (2)  a municipality with a population of 200,000 or
 222-12  more; or
 222-13              (3)  a county with a population of 500,000 or more.
 222-14  (V.A.C.S. Art. 6252-4c, Sec. 1.)
 222-15        Sec. 614.003.  ENTITLEMENT TO LEGISLATIVE LEAVE.  A peace
 222-16  officer or fire fighter is entitled as provided by this subchapter
 222-17  to legislative leave to serve in, appear before, or petition a
 222-18  governmental body during a regular or special session of the body.
 222-19  (V.A.C.S. Art. 6252-4c, Sec. 3(a).)
 222-20        Sec. 614.004.  ELIGIBILITY FOR LEGISLATIVE LEAVE.  (a)  To be
 222-21  eligible for legislative leave, a peace officer or fire fighter
 222-22  must submit a written application to the individual's employer on
 222-23  or before the 30th day before the date the individual intends to
 222-24  begin the legislative leave.
 222-25        (b)  The application must state the length of the requested
 222-26  leave and that the peace officer or fire fighter is willing to
 222-27  reimburse the employer for any wages, pension, or other costs the
  223-1  employer will incur as a result of the leave.
  223-2        (c)  The length of requested leave may not exceed the length
  223-3  of the session.  (V.A.C.S. Art. 6252-4c, Sec. 3(b).)
  223-4        Sec. 614.005.  MONEY REQUIRED TO OFFSET COSTS OF LEGISLATIVE
  223-5  LEAVE.  (a)  An employer may require reimbursement of all costs
  223-6  associated with legislative leave under this subchapter.
  223-7        (b)  Within 30 days after the date an employer receives an
  223-8  application, the employer shall notify the peace officer or fire
  223-9  fighter in writing of the actual amount of money required to offset
 223-10  the costs the employer will incur.
 223-11        (c)  An employer may require a peace officer or fire fighter
 223-12  to post the money before granting the leave.
 223-13        (d)  A peace officer or fire fighter shall give to the
 223-14  employer a sworn statement identifying the source of the money
 223-15  posted.  (V.A.C.S. Art. 6252-4c, Secs. 3(c), (f) (part).)
 223-16        Sec. 614.006.  EMPLOYER TO GRANT LEGISLATIVE LEAVE;
 223-17  EXCEPTIONS.  An employer shall grant legislative leave to a peace
 223-18  officer or fire fighter who submits an application as prescribed by
 223-19  this subchapter and who complies with any requirement relating to
 223-20  payment of costs:
 223-21              (1)  except in an emergency; or
 223-22              (2)  unless granting the leave will result in having an
 223-23  insufficient number of employees to carry out the normal functions
 223-24  of the employer.  (V.A.C.S. Art. 6252-4c, Sec. 3(d).)
 223-25        Sec. 614.007.  INSUFFICIENCY IN NUMBER OF EMPLOYEES; EXCHANGE
 223-26  OF TIME BY OTHER EMPLOYEES.  (a)  If an employer determines that
 223-27  granting a legislative leave will result in having an insufficient
  224-1  number of employees to carry out the normal functions of the
  224-2  employer, another peace officer or fire fighter of equal rank may
  224-3  volunteer to exchange time of work with the applicant if overtime
  224-4  does not result.
  224-5        (b)  The employer shall allow a volunteer under Subsection
  224-6  (a) to work for the applicant, and shall grant the legislative
  224-7  leave, if overtime will not result and if the volunteer work will
  224-8  result in having a sufficient number of employees.  (V.A.C.S. Art.
  224-9  6252-4c, Sec. 3(e).)
 224-10        Sec. 614.008.  LEGISLATIVE LEAVE NOT A BREAK IN SERVICE.
 224-11  Legislative leave under this subchapter is not a break in service
 224-12  for any purpose and is treated as any other paid leave, except as
 224-13  provided by Section 614.005.  (V.A.C.S. Art. 6252-4c, Sec. 3(f).)
 224-14        Sec. 614.009.  LEGISLATIVE LEAVE TO ATTEND SESSION OF
 224-15  CONGRESS.  Legislative leave granted under this subchapter to a
 224-16  peace officer or fire fighter to attend a session of the Congress
 224-17  of the United States shall be granted for not longer than 30
 224-18  percent of the applicant's total annual working days during each
 224-19  year in which leave is requested.  (V.A.C.S. Art. 6252-4c, Sec.
 224-20  3(g).)
 224-21        Sec. 614.010.  EMPLOYEES' ASSOCIATION MAY NOT REIMBURSE
 224-22  CERTAIN COSTS.  A peace officers' or fire fighters' association may
 224-23  not reimburse a member of the legislature or an employer of a peace
 224-24  officer or fire fighter who serves as a member of the legislature
 224-25  for wages, pension contributions, or other costs incurred as a
 224-26  result of legislative leave taken under this subchapter.  (V.A.C.S.
 224-27  Art. 6252-4c, Sec. 3(h).)
  225-1           (Sections 614.011-614.020 reserved for expansion)
  225-2       SUBCHAPTER B.  COMPLAINT AGAINST LAW ENFORCEMENT OFFICER
  225-3                            OR FIRE FIGHTER
  225-4        Sec. 614.021.  APPLICABILITY OF SUBCHAPTER.  This subchapter
  225-5  applies only to a complaint against:
  225-6              (1)  a law enforcement officer of the State of Texas,
  225-7  including an officer of the Department of Public Safety or of the
  225-8  Texas Alcoholic Beverage Commission;
  225-9              (2)  a fire fighter who is not covered by a civil
 225-10  service statute; or
 225-11              (3)  a police officer who is not covered by a civil
 225-12  service statute.  (V.A.C.S. Art. 6252-20 (part).)
 225-13        Sec. 614.022.  COMPLAINT TO BE IN WRITING AND SIGNED BY
 225-14  COMPLAINANT.  To be considered by the head of a state agency or by
 225-15  the head of a fire or police department, the complaint must be:
 225-16              (1)  in writing; and
 225-17              (2)  signed by the person making the complaint.
 225-18  (V.A.C.S. Art. 6252-20 (part).)
 225-19        Sec. 614.023.  COPY OF COMPLAINT TO BE GIVEN TO OFFICER OR
 225-20  EMPLOYEE.  (a)  A copy of a signed complaint against a law
 225-21  enforcement officer, fire fighter, or police officer shall be given
 225-22  to the officer or employee within a reasonable time after the
 225-23  complaint is filed.
 225-24        (b)  Disciplinary action may not be taken against the officer
 225-25  or employee unless a copy of the signed complaint is given to the
 225-26  officer or employee.  (V.A.C.S. Art. 6252-20 (part).)
 225-27           (Sections 614.024-614.040 reserved for expansion)
  226-1          SUBCHAPTER C.  PROHIBITION AGAINST COLLECTING DEBT
  226-2                              FOR ANOTHER
  226-3        Sec. 614.041.  COLLECTING DEBT FOR ANOTHER; OFFENSE.  (a)  A
  226-4  peace officer commits an offense if the officer:
  226-5              (1)  accepts for collection or undertakes the
  226-6  collection of a claim for debt for another, unless the officer acts
  226-7  under a law that prescribes the duties of the officer; or
  226-8              (2)  accepts compensation not prescribed by law for
  226-9  accepting for collection or undertaking the collection of a claim
 226-10  for debt for another.
 226-11        (b)  An offense under Subsection (a) is a misdemeanor
 226-12  punishable by a fine of not less than $200 or more than $500.
 226-13        (c)  In addition to the fine, the peace officer may be
 226-14  removed from office.  (V.A.C.S. Art. 6252-24 (part).)
 226-15           (Sections 614.042-614.050 reserved for expansion)
 226-16     SUBCHAPTER D.  PURCHASE OF AGENCY-ISSUED FIREARM OF HONORABLY
 226-17                   RETIRED OR DECEASED PEACE OFFICER
 226-18        Sec. 614.051.  PURCHASE OF FIREARM BY HONORABLY RETIRED PEACE
 226-19  OFFICER.  (a)  An individual may purchase a firearm from a state
 226-20  agency if:
 226-21              (1)  the individual was a peace officer commissioned by
 226-22  the agency;
 226-23              (2)  the individual was honorably retired from the
 226-24  individual's commission by the state;
 226-25              (3)  the firearm had been previously issued to the
 226-26  individual by the agency; and
 226-27              (4)  the firearm is not a prohibited weapon under
  227-1  Section 46.06, Penal Code.
  227-2        (b)  An individual may purchase only one firearm from a state
  227-3  agency under this section.  (V.A.C.S. Art. 4413(29aa-3), Sec. 1(a)
  227-4  (part).)
  227-5        Sec. 614.052.  PURCHASE OF FIREARM BY SURVIVING SPOUSE,
  227-6  CHILD, OR PARENT OF DECEASED PEACE OFFICER.  (a)  An individual
  227-7  listed under Subsection (b) may purchase a firearm from a state
  227-8  agency if:
  227-9              (1)  the firearm had been previously issued by the
 227-10  agency to a peace officer commissioned by the agency who died while
 227-11  commissioned, without regard to whether the officer died while
 227-12  discharging the officer's official duties; and
 227-13              (2)  the firearm is not a prohibited weapon under
 227-14  Section 46.06, Penal Code.
 227-15        (b)  Individuals who may purchase the firearm under
 227-16  Subsection (a) are, in order of precedence:
 227-17              (1)  the surviving spouse of the deceased peace
 227-18  officer;
 227-19              (2)  a child of the deceased peace officer; and
 227-20              (3)  a parent of the deceased peace officer.  (V.A.C.S.
 227-21  Art. 4413(29aa-3), Sec. 2.)
 227-22        Sec. 614.053.  PURCHASE PRICE OF FIREARM.  A state agency
 227-23  shall establish the amount, which may not exceed fair market value,
 227-24  for which a firearm may be purchased under this subchapter.
 227-25  (V.A.C.S. Art. 4413(29aa-3), Secs. 1(a) (part), 2 (part).)
 227-26        Sec. 614.054.  WHEN FIREARM MAY BE PURCHASED FROM STATE
 227-27  AGENCY; DELAY OF SALE BY AGENCY.  (a)  Except as provided by
  228-1  Subsection (b), an individual must purchase a firearm under Section
  228-2  614.051 before the second anniversary of the date of the person's
  228-3  retirement or under Section 614.052 before the second anniversary
  228-4  of the date of the officer's death.
  228-5        (b)  A state agency that cannot immediately replace the
  228-6  firearm may delay the sale of the firearm until the agency can
  228-7  replace the firearm.  (V.A.C.S. Art. 4413(29aa-3), Secs. 1(a)
  228-8  (part), (b), 2 (part).)
  228-9      CHAPTER 615.  FINANCIAL ASSISTANCE TO SURVIVORS OF CERTAIN
 228-10          LAW ENFORCEMENT OFFICERS, FIRE FIGHTERS, AND OTHERS
 228-11                   SUBCHAPTER A.  GENERAL PROVISIONS
 228-12  Sec. 615.001.  DEFINITION
 228-13  Sec. 615.002.  ADMINISTRATION OF CHAPTER
 228-14  Sec. 615.003.  APPLICABILITY
 228-15  Sec. 615.004.  EFFECT OF AWARD
 228-16  Sec. 615.005.  ASSISTANCE NOT ASSIGNABLE; PAYMENTS EXEMPT
 228-17  Sec. 615.006.  DESIGNATION OF CUSTODIAL PERSONNEL
 228-18  Sec. 615.007.  CERTAIN VOLUNTEER FIRE-FIGHTING UNITS CONSIDERED
 228-19                   AGENTS OF POLITICAL SUBDIVISION
 228-20  Sec. 615.008.  CERTAIN POLICE RESERVE OR AUXILIARY UNITS
 228-21                   CONSIDERED AGENTS OF POLITICAL SUBDIVISION
 228-22           (Sections 615.009-615.020 reserved for expansion)
 228-23             SUBCHAPTER B.  PAYMENTS TO ELIGIBLE SURVIVORS
 228-24  Sec. 615.021.  ELIGIBLE SURVIVORS
 228-25  Sec. 615.022.  PAYMENT TO SURVIVING SPOUSE
 228-26  Sec. 615.023.  PAYMENT TO SURVIVING MINOR CHILD
 228-27  Sec. 615.024.  PAYMENT TO SURVIVING DEPENDENT PARENT
  229-1  Sec. 615.025.  PAYMENT TO SURVIVING DEPENDENT SIBLING
  229-2           (Sections 615.026-615.040 reserved for expansion)
  229-3              SUBCHAPTER C.  ADMINISTRATION AND PROCEDURE
  229-4  Sec. 615.041.  PROOF OF CLAIM
  229-5  Sec. 615.042.  AWARD AND PAYMENT OF ASSISTANCE
  229-6  Sec. 615.043.  DENIAL OF CLAIM
  229-7  Sec. 615.044.  APPEALS
  229-8      CHAPTER 615.  FINANCIAL ASSISTANCE TO SURVIVORS OF CERTAIN
  229-9          LAW ENFORCEMENT OFFICERS, FIRE FIGHTERS, AND OTHERS
 229-10                   SUBCHAPTER A.  GENERAL PROVISIONS
 229-11        Sec. 615.001.  DEFINITION.  In this chapter, "minor child"
 229-12  means a child who, on the date of the death of an individual listed
 229-13  under Section 615.003, is younger than 21 years of age.  (V.A.C.S.
 229-14  Art. 6228f, Sec. 2(a) (part).)
 229-15        Sec. 615.002.  ADMINISTRATION OF CHAPTER.  The board of
 229-16  trustees of the Employees Retirement System of Texas shall
 229-17  administer this chapter under rules adopted by the board.
 229-18  (V.A.C.S. Art. 6228f, Sec. 4 (part).)
 229-19        Sec. 615.003.  APPLICABILITY.  This chapter applies only to
 229-20  eligible survivors of the following individuals:
 229-21              (1)  a peace officer as defined by Article 2.12, Code
 229-22  of Criminal Procedure;
 229-23              (2)  a paid probation officer appointed by the director
 229-24  of a community supervision and corrections department who has the
 229-25  duties set out in Section 2 and the qualifications set out in
 229-26  Section 5, Article 42.131, Code of Criminal Procedure, or who was
 229-27  appointed in accordance with prior law;
  230-1              (3)  a parole officer employed by the pardons and
  230-2  paroles division of the Texas Department of Criminal Justice who
  230-3  has the duties set out in Section 2 and the qualifications set out
  230-4  in Section 19, Article 42.18, Code of Criminal Procedure;
  230-5              (4)  a paid jailer;
  230-6              (5)  a member of an organized police reserve or
  230-7  auxiliary unit who regularly assists peace officers in enforcing
  230-8  criminal laws;
  230-9              (6)  a member of the class of employees of the
 230-10  institutional division of the Texas Department of Criminal Justice
 230-11  formally designated as custodial personnel under Section 615.006 by
 230-12  the Texas Board of Criminal Justice or its predecessor in function;
 230-13              (7)  a jailer or guard of a county jail who is
 230-14  appointed by the sheriff and who:
 230-15                    (A)  performs a security, custodial, or
 230-16  supervisory function over the admittance, confinement, or discharge
 230-17  of prisoners; and
 230-18                    (B)  is certified by the Texas Commission on Law
 230-19  Enforcement Officer Standards and Education;
 230-20              (8)  a juvenile correctional employee of the Texas
 230-21  Youth Commission;
 230-22              (9)  an employee of the maximum security unit of the
 230-23  Texas Department of Mental Health and Mental Retardation;
 230-24              (10)  an individual who is employed by the state or a
 230-25  political or legal subdivision and is subject to certification by
 230-26  the Texas Commission on Fire Protection;
 230-27              (11)  an individual employed by the state or a
  231-1  political or legal subdivision whose principal duties are aircraft
  231-2  crash and rescue fire fighting;
  231-3              (12)  a member of an organized volunteer fire-fighting
  231-4  unit that:
  231-5                    (A)  renders fire-fighting services without
  231-6  remuneration;
  231-7                    (B)  consists of not fewer than 20 active
  231-8  members, a majority of which are present at each meeting; and
  231-9                    (C)  conducts a minimum of two drills each month,
 231-10  each two hours long; or
 231-11              (13)  a game warden who is an employee of the state and
 231-12  who receives full-time pay for the enforcement of game laws and
 231-13  rules.  (V.A.C.S. Art. 6228f, Secs. 2(a) (part); 3(a) (part), (b)
 231-14  (part).)
 231-15        Sec. 615.004.  EFFECT OF AWARD.  (a)  A finding that
 231-16  assistance is payable to an eligible survivor of an individual
 231-17  listed under Section 615.003 is not a declaration of the cause,
 231-18  nature, or effect of a death for any other purpose.
 231-19        (b)  A finding that a death is within the provisions of this
 231-20  chapter does not affect another claim or cause of action arising
 231-21  from or connected to the death.  (V.A.C.S. Art. 6228f, Sec. 7.)
 231-22        Sec. 615.005.  ASSISTANCE NOT ASSIGNABLE; PAYMENTS EXEMPT.
 231-23  (a)  Assistance payable under this chapter is not transferable or
 231-24  assignable at law or in equity.
 231-25        (b)  Money paid or payable under this chapter is not subject
 231-26  to execution, levy, attachment, garnishment, or other legal
 231-27  process, or to the operation of any insolvency law.  (V.A.C.S. Art.
  232-1  6228f, Sec. 8.)
  232-2        Sec. 615.006.  DESIGNATION OF CUSTODIAL PERSONNEL.  The Texas
  232-3  Board of Criminal Justice shall adopt and include in its minutes a
  232-4  formal designation identifying the classes of persons who are
  232-5  custodial personnel of the agency  so that there is no uncertainty
  232-6  about which persons are custodial personnel.  (V.A.C.S. Art. 6228f,
  232-7  Sec. 9.)
  232-8        Sec.  615.007.  CERTAIN VOLUNTEER FIRE-FIGHTING UNITS
  232-9  CONSIDERED AGENTS OF POLITICAL SUBDIVISION.  For the purposes of
 232-10  this chapter, an organized volunteer fire-fighting unit described
 232-11  by Section 615.003(12) is considered an agent of a political
 232-12  subdivision, including a municipality, county, or district, that
 232-13  the unit serves if:
 232-14              (1)  the unit receives any financial aid from the
 232-15  political subdivision for the maintenance, upkeep, or storage of
 232-16  equipment; or
 232-17              (2)  the governing body of the political subdivision
 232-18  designates the unit as an agent of the political subdivision.
 232-19  (V.A.C.S. Art. 6228f, Sec. 2(b) (part).)
 232-20        Sec. 615.008.  CERTAIN POLICE RESERVE OR AUXILIARY UNITS
 232-21  CONSIDERED AGENTS OF POLITICAL SUBDIVISION.  For the purposes of
 232-22  this chapter, an organized police reserve or auxiliary unit is
 232-23  considered an agent of a political subdivision, including a
 232-24  municipality, county, or district, that the unit serves if the
 232-25  governing body of the political subdivision designates the unit as
 232-26  an agent of the political subdivision.  (V.A.C.S. Art. 6228f, Sec.
 232-27  2(b) (part).)
  233-1           (Sections 615.009-615.020 reserved for expansion)
  233-2             SUBCHAPTER B.  PAYMENTS TO ELIGIBLE SURVIVORS
  233-3        Sec. 615.021.  ELIGIBLE SURVIVORS.  A survivor of an
  233-4  individual listed under Section 615.003 is eligible for the payment
  233-5  of assistance under this chapter if:
  233-6              (1)  the listed individual died in the course of the
  233-7  individual's duty  performed in the individual's position as
  233-8  described by Section 615.003 as a result of exposure to a risk:
  233-9                    (A)  that is inherent in the duty; and
 233-10                    (B)  to which the general public is not
 233-11  customarily exposed; and
 233-12              (2)  the survivor is:
 233-13                    (A)  the surviving spouse of the listed
 233-14  individual;
 233-15                    (B)  a minor child of the listed individual;
 233-16                    (C)  a surviving parent of the listed individual,
 233-17  if:
 233-18                          (i)  there is no surviving spouse or minor
 233-19  child; and
 233-20                          (ii)  the parent was claimed as a dependent
 233-21  on the income tax return filed with the Internal Revenue Service by
 233-22  the listed individual in the year preceding the year in which the
 233-23  listed individual died; or
 233-24                    (D)  a surviving sibling of the listed individual
 233-25  and is younger than 18 years of age, if:
 233-26                          (i)  there is no surviving spouse or minor
 233-27  child; and
  234-1                          (ii)  the sibling was claimed as a
  234-2  dependent on the income tax return filed with the Internal Revenue
  234-3  Service by the listed individual in the year preceding the year in
  234-4  which the listed individual died.  (V.A.C.S. Art. 6228f, Secs. 2(a)
  234-5  (part); 3(a) (part), (b) (part).)
  234-6        Sec. 615.022.  PAYMENT TO SURVIVING SPOUSE.  The state shall
  234-7  pay $20,000 to an eligible surviving spouse.  (V.A.C.S. Art. 6228f,
  234-8  Sec. 3(a) (part).)
  234-9        Sec. 615.023.  PAYMENT TO SURVIVING MINOR CHILD.  (a)  The
 234-10  state shall pay to the duly appointed or qualified guardian or
 234-11  other legal representative of an eligible surviving minor child:
 234-12              (1)  $200 each month, if there is one surviving minor
 234-13  child;
 234-14              (2)  $300 each month, if there are two surviving minor
 234-15  children; or
 234-16              (3)  $400 each month, if there are three or more
 234-17  surviving minor children.
 234-18        (b)  A child's entitlement to assistance payable under this
 234-19  section ends on the child's 21st birthday.  At that time, payments
 234-20  to any other surviving minor children shall be adjusted, as
 234-21  necessary, to conform to the amounts payable under Subsection (a).
 234-22        (c)  A payment under this section is in addition to any
 234-23  payment made under Section 615.022.  (V.A.C.S. Art. 6228f, Sec.
 234-24  3(a) (part).)
 234-25        Sec. 615.024.  PAYMENT TO SURVIVING DEPENDENT PARENT.  The
 234-26  state shall pay an eligible surviving dependent parent:
 234-27              (1)  $20,000, if there is only one eligible surviving
  235-1  dependent parent; or
  235-2              (2)  $10,000 each, if there are two eligible surviving
  235-3  dependent parents.  (V.A.C.S. Art. 6228f, Sec. 3(b) (part).)
  235-4        Sec. 615.025.  PAYMENT TO SURVIVING DEPENDENT SIBLING.  (a)
  235-5  The state shall pay to an eligible surviving dependent sibling or
  235-6  to the sibling's duly appointed or qualified guardian or other
  235-7  legal representative:
  235-8              (1)  $200 each month, if there is one eligible
  235-9  surviving dependent sibling;
 235-10              (2)  $300 each month, if there are two eligible
 235-11  surviving dependent siblings; or
 235-12              (3)  $400 each month, if there are three or more
 235-13  eligible surviving dependent siblings.
 235-14        (b)  A sibling's entitlement to assistance payable under this
 235-15  section ends on the sibling's 18th birthday.  At that time,
 235-16  payments to any other eligible surviving dependent siblings shall
 235-17  be adjusted, if necessary, to conform with the amounts specified by
 235-18  Subsection (a).
 235-19        (c)  A payment under this section is in addition to any
 235-20  payment made under Section 615.024.  (V.A.C.S. Art. 6228f, Sec.
 235-21  3(b) (part).)
 235-22           (Sections 615.026-615.040 reserved for expansion)
 235-23              SUBCHAPTER C.  ADMINISTRATION AND PROCEDURE
 235-24        Sec. 615.041.  PROOF OF CLAIM.  Proof of the death of an
 235-25  individual listed under Section 615.003 that is claimed to meet the
 235-26  requirements of Section 615.021(1) shall be furnished to the board
 235-27  of trustees of the Employees Retirement System of Texas in the form
  236-1  and with additional evidence and information required by the board.
  236-2  (V.A.C.S. Art. 6228f, Sec. 4 (part).)
  236-3        Sec. 615.042.  AWARD AND PAYMENT OF ASSISTANCE.  (a)  The
  236-4  board of trustees of the Employees Retirement System of Texas shall
  236-5  notify the comptroller of the board's determination that a claim
  236-6  under this chapter is valid and justifies payment.
  236-7        (b)  On receipt of the notice, the comptroller shall issue a
  236-8  warrant to each claimant in the proper amount from the fund
  236-9  appropriated for that purpose.
 236-10        (c)  Payments under this chapter on behalf of a surviving
 236-11  child or dependent sibling are payable beginning on the first day
 236-12  of the first month after the death of the individual listed in
 236-13  Section 615.003.  (V.A.C.S. Art. 6228f, Sec. 5 (part).)
 236-14        Sec. 615.043.  DENIAL OF CLAIM.  If the board of trustees of
 236-15  the Employees Retirement System of Texas denies a claim, the board
 236-16  shall send a notice of the denial to:
 236-17              (1)  the person making the claim; or
 236-18              (2)  the duly qualified guardian or legal
 236-19  representative of a surviving minor child or dependent sibling, if
 236-20  a claim is being made on behalf of the child or sibling.  (V.A.C.S.
 236-21  Art. 6228f, Sec. 5 (part).)
 236-22        Sec. 615.044.  APPEALS.  (a)  A person whose claim for
 236-23  payment to a surviving spouse, minor child, or dependent parent or
 236-24  sibling is denied or the person's legal representative may appeal
 236-25  the denial to a district court of the residence of the surviving
 236-26  spouse, minor child, or dependent parent or sibling, or to a
 236-27  district court in Travis County.
  237-1        (b)  An appeal under this section must be made not later than
  237-2  the 20th day after the date the claimant or legal representative
  237-3  receives notice of the denial.
  237-4        (c)  Proceedings on the appeal are by trial de novo, as that
  237-5  term is used in an appeal from a justice court to the county court.
  237-6  (V.A.C.S. Art. 6228f, Sec. 6.)
  237-7       CHAPTER 616.  EMERGENCY INTERIM PUBLIC OFFICE SUCCESSION
  237-8                   SUBCHAPTER A.  GENERAL PROVISIONS
  237-9  Sec. 616.001.  SHORT TITLE
 237-10  Sec. 616.002.  DEFINITIONS
 237-11  Sec. 616.003.  DISPUTES
 237-12           (Sections 616.004-616.020 reserved for expansion)
 237-13              SUBCHAPTER B.  EMERGENCY INTERIM SUCCESSORS
 237-14  Sec. 616.021.  POWERS AND DUTIES OF EMERGENCY INTERIM
 237-15                   SUCCESSOR
 237-16  Sec. 616.022.  DESIGNATION OF EMERGENCY INTERIM SUCCESSOR
 237-17                   TO STATE OR POLITICAL SUBDIVISION
 237-18                   OFFICER
 237-19  Sec. 616.023.  DESIGNATION OF EMERGENCY INTERIM
 237-20                   SUCCESSOR TO LOCAL OFFICER
 237-21  Sec. 616.024.  TERM OF DESIGNATION
 237-22  Sec. 616.025.  OATH; BOND
 237-23  Sec. 616.026.  TERMINATION OF POWERS AND DUTIES BY
 237-24                   LEGISLATURE
 237-25       CHAPTER 616.  EMERGENCY INTERIM PUBLIC OFFICE SUCCESSION
 237-26                   SUBCHAPTER A.  GENERAL PROVISIONS
 237-27        Sec. 616.001.  SHORT TITLE.  This chapter may be cited as the
  238-1  Emergency Interim Public Office Succession Act.  (V.A.C.S.
  238-2  Art. 6252-10a, Sec. 1.)
  238-3        Sec. 616.002.  DEFINITIONS.  In this chapter:
  238-4              (1)  "Emergency interim successor" means an individual
  238-5  designated under this chapter to exercise the powers and perform
  238-6  the duties of an office.
  238-7              (2)  "Office" includes:
  238-8                    (A)  a state office, the powers and duties of
  238-9  which are defined by the constitution or laws of this state, except
 238-10  the governor, a member of the judiciary, and a member of the
 238-11  legislature; and
 238-12                    (B)  a local office, the powers and duties of
 238-13  which are defined by the constitution or laws of this state or by a
 238-14  charter or an ordinance.
 238-15              (3)  "Political subdivision" includes a municipality, a
 238-16  county, and a fire, power, or drainage district that is not
 238-17  included under Section 616.023.  (V.A.C.S. Art. 6252-10a, Secs. 2
 238-18  (part), 5 (part).)
 238-19        Sec. 616.003.  DISPUTES.  (a)  A dispute of fact under this
 238-20  chapter that relates to an office in the executive branch of state
 238-21  government, except a dispute of fact relating to the governor,
 238-22  shall be resolved by the governor or other official authorized to
 238-23  exercise the powers and perform the duties of the governor.
 238-24        (b)  A decision made by the governor or the official under
 238-25  this section is final.  (V.A.C.S. Art. 6252-10a, Sec. 9.)
 238-26           (Sections 616.004-616.020 reserved for expansion)
 238-27              SUBCHAPTER B.  EMERGENCY INTERIM SUCCESSORS
  239-1        Sec. 616.021.  POWERS AND DUTIES OF EMERGENCY INTERIM
  239-2  SUCCESSOR.  (a)  The powers and duties of an office of the state or
  239-3  of a political subdivision may be exercised by an emergency interim
  239-4  successor under this chapter only if there has been an attack or
  239-5  series of attacks on the United States by an enemy of the United
  239-6  States that causes or may cause substantial damage or injury to
  239-7  civilian property or individuals in the United States by:
  239-8              (1)  sabotage;
  239-9              (2)  the use of bombs, missiles, shell fire, or atomic,
 239-10  radiological, chemical, bacteriological, or biological means; or
 239-11              (3)  the use of other weapons or processes.
 239-12        (b)  The designated emergency interim successor to an officer
 239-13  of the state or of a political subdivision, in the order specified,
 239-14  shall exercise the powers and perform the duties of the office if:
 239-15              (1)  the officer and the officer's deputy are absent or
 239-16  unable to exercise the powers and perform the duties of the office;
 239-17  or
 239-18              (2)  the office is vacant and a deputy is not
 239-19  authorized to perform the duties of the office.
 239-20        (c)  The emergency interim successor to a state officer shall
 239-21  exercise the powers and perform the duties of the office until:
 239-22              (1)  the governor or other official authorized to
 239-23  exercise the powers and perform the duties of the governor appoints
 239-24  a successor to fill the vacancy;
 239-25              (2)  a successor is otherwise appointed or elected and
 239-26  qualifies; or
 239-27              (3)  the officer, the officer's deputy, or a preceding
  240-1  named emergency interim successor is available to exercise the
  240-2  powers and perform the duties of the office.
  240-3        (d)  The emergency interim successor to an officer of a
  240-4  political subdivision shall exercise the powers and perform the
  240-5  duties of the office until:
  240-6              (1)  the vacancy is filled; or
  240-7              (2)  the officer, the officer's deputy, or a preceding
  240-8  emergency interim successor is available to exercise the powers and
  240-9  perform the duties of the office.  (V.A.C.S. Art. 6252-10a, Secs. 2
 240-10  (part), 3 (part), 5 (part), 7 (part).)
 240-11        Sec. 616.022.  DESIGNATION OF EMERGENCY INTERIM SUCCESSOR TO
 240-12  STATE OR POLITICAL SUBDIVISION OFFICER.  (a)  An officer of the
 240-13  state or of a political subdivision shall:
 240-14              (1)  designate by title emergency interim successors,
 240-15  if the officer is a state officer;
 240-16              (2)  designate by title or, if designation by title is
 240-17  not feasible, by name, emergency interim successors, if the officer
 240-18  is an officer of a political subdivision;
 240-19              (3)  specify the order of succession; and
 240-20              (4)  review and revise, as necessary, the designations
 240-21  to ensure their current status.
 240-22        (b)  The officer shall designate a sufficient number of
 240-23  emergency interim successors, in addition to deputies authorized by
 240-24  law to exercise the powers and perform the duties of the office, so
 240-25  that there is a total of at least three and not more than seven
 240-26  emergency interim successors and deputies.
 240-27        (c)  The governor or an official authorized to exercise the
  241-1  powers and perform the duties of governor may adopt regulations
  241-2  governing designations made by state officers under this section.
  241-3        (d)  The chief executive of a political subdivision may adopt
  241-4  regulations governing designations made by officers of the
  241-5  subdivision under this section.   (V.A.C.S. Art. 6252-10a, Secs. 3
  241-6  (part), 5 (part).)
  241-7        Sec. 616.023.  DESIGNATION OF EMERGENCY INTERIM SUCCESSOR TO
  241-8  LOCAL OFFICER.  (a)  This section applies only to a local office
  241-9  for which the governing body of the local governmental entity may
 241-10  determine by ordinance or resolution the manner in which a vacancy
 241-11  is filled or temporary appointment is made.
 241-12        (b)  The governing body of the local governmental entity may
 241-13  enact a resolution or an ordinance providing for the designation
 241-14  under this chapter of emergency interim successors to local
 241-15  officers.
 241-16        (c)  In this section, "local governmental entity" includes a
 241-17  municipality or county.  (V.A.C.S. Art.  6252-10a, Sec. 4.)
 241-18        Sec. 616.024.  TERM OF DESIGNATION.  The designation of an
 241-19  individual as an emergency interim successor continues at the
 241-20  pleasure of the designating authority and may be terminated with or
 241-21  without cause until the individual is authorized to exercise the
 241-22  powers and perform the duties of office in accordance with this
 241-23  chapter.  (V.A.C.S. Art. 6252-10a, Sec. 8.)
 241-24        Sec. 616.025.  OATH; BOND.  (a)  An emergency interim
 241-25  successor at the time of designation shall take the oath required
 241-26  to exercise the powers and perform the duties of office.
 241-27        (b)  An individual, before exercising the powers or
  242-1  performing the duties of an office to which that individual
  242-2  succeeds, shall comply with the law relating to taking office,
  242-3  including provisions for a bond and an oath.  (V.A.C.S. Art.
  242-4  6252-10a, Sec. 6.)
  242-5        Sec. 616.026.  TERMINATION OF POWERS AND DUTIES BY
  242-6  LEGISLATURE.  The legislature, by concurrent resolution, may
  242-7  terminate the authority of emergency interim successors to exercise
  242-8  the powers and perform the duties of office.  (V.A.C.S.
  242-9  Art. 6252-10a, Sec. 7 (part).)
 242-10            CHAPTER 617.  COLLECTIVE BARGAINING AND STRIKES
 242-11  Sec. 617.001.  DEFINITION
 242-12  Sec. 617.002.  COLLECTIVE BARGAINING BY PUBLIC EMPLOYEES
 242-13                   PROHIBITED
 242-14  Sec. 617.003.  PROHIBITION ON STRIKES BY PUBLIC EMPLOYEES
 242-15  Sec. 617.004.  RIGHT TO WORK
 242-16  Sec. 617.005.  EFFECT OF CHAPTER
 242-17            CHAPTER 617.  COLLECTIVE BARGAINING AND STRIKES
 242-18        Sec. 617.001.  DEFINITION.  In this chapter, "labor
 242-19  organization" means any organization in which employees participate
 242-20  and that exists in whole or in part to deal with one or more
 242-21  employers concerning grievances, labor disputes, wages, hours of
 242-22  employment, or working conditions.  (V.A.C.S. Art. 5154c, Sec. 5.)
 242-23        Sec. 617.002.  COLLECTIVE BARGAINING BY PUBLIC EMPLOYEES
 242-24  PROHIBITED.  (a)  An official of the state or of a political
 242-25  subdivision of the state may not enter into a collective bargaining
 242-26  contract with a labor organization regarding wages, hours, or
 242-27  conditions of employment of public employees.
  243-1        (b)  A contract entered into in violation of Subsection (a)
  243-2  is void.
  243-3        (c)  An official of the state or of a political subdivision
  243-4  of the state may not recognize a labor organization as the
  243-5  bargaining agent for a group of public employees.  (V.A.C.S.
  243-6  Art. 5154c, Secs. 1, 2.)
  243-7        Sec. 617.003.  PROHIBITION ON STRIKES BY PUBLIC EMPLOYEES.
  243-8  (a)  Public employees may not strike or engage in an organized work
  243-9  stoppage against the state or a political subdivision of the state.
 243-10        (b)  A public employee who violates Subsection (a) forfeits
 243-11  all civil service rights, reemployment rights, and any other
 243-12  rights, benefits, and privileges the employee enjoys as a result of
 243-13  public employment or former public employment.
 243-14        (c)  The right of an individual to cease work may not be
 243-15  abridged if the individual is not acting in concert with others in
 243-16  an organized work stoppage.   (V.A.C.S. Art. 5154c, Sec. 3.)
 243-17        Sec. 617.004.  RIGHT TO WORK.  An individual may not be
 243-18  denied public employment because of the individual's membership or
 243-19  nonmembership in a labor organization.  (V.A.C.S. Art. 5154c,
 243-20  Sec. 4.)
 243-21        Sec. 617.005.  EFFECT OF CHAPTER.  This chapter does not
 243-22  impair the right of public employees to present grievances
 243-23  concerning their wages, hours of employment, or conditions of work
 243-24  either individually or through a representative that does not claim
 243-25  the right to strike.  (V.A.C.S. Art. 5154c, Sec. 6.)
 243-26               (Chapters 618-650 reserved for expansion)
 243-27               SUBTITLE B.  STATE OFFICERS AND EMPLOYEES
  244-1                   CHAPTER 651.  GENERAL PROVISIONS
  244-2  Sec. 651.001.  DEFINITION
  244-3  Sec. 651.002.  BENEFITS OF AND RESTRICTIONS ON STATE EMPLOYEES
  244-4                   WORKING OUT OF STATE
  244-5  Sec. 651.003.  WRITTEN STATEMENT OF DISSENTING BOARD MEMBER
  244-6               SUBTITLE B.  STATE OFFICERS AND EMPLOYEES
  244-7                   CHAPTER 651.  GENERAL PROVISIONS
  244-8        Sec. 651.001.  DEFINITION.  In any state statute, "officer"
  244-9  means an officer of this state unless otherwise expressly provided.
 244-10  (V.A.C.S. Art. 22.)
 244-11        Sec. 651.002.  BENEFITS OF AND RESTRICTIONS ON STATE
 244-12  EMPLOYEES WORKING OUT OF STATE.  A state employee who is required
 244-13  to work outside of this state is entitled to the same benefits and
 244-14  is subject to the same restrictions provided by law for other state
 244-15  employees, including vacation, leave from employment, and the
 244-16  employment policies and restrictions provided by the General
 244-17  Appropriations Act.  (V.A.C.S. Art. 6252-8c.)
 244-18        Sec. 651.003.  WRITTEN STATEMENT OF DISSENTING BOARD MEMBER.
 244-19  A member of the governing board of an agency in the executive
 244-20  branch of state government may dissent from an action taken by the
 244-21  board and is entitled to enter a written statement of dissent into
 244-22  the minutes of the meeting.  (V.A.C.S. Art. 6252-17c.)
 244-23                        CHAPTER 652.  VACANCIES
 244-24                   SUBCHAPTER A.  GENERAL PROVISIONS
 244-25  Sec. 652.001.  TERM OF APPOINTMENT TO VACANCY
 244-26           (Sections 652.002-652.020 reserved for expansion)
 244-27           SUBCHAPTER B.  PROHIBITIONS ON FILLING VACANCIES
  245-1  Sec. 652.021.  SCOPE OF SUBCHAPTER
  245-2  Sec. 652.022.  DEFINITION
  245-3  Sec. 652.023.  PROHIBITION AGAINST FILLING CERTAIN VACANCIES
  245-4  Sec. 652.024.  EXCEPTIONS
  245-5  Sec. 652.025.  APPOINTMENT VOID
  245-6  Sec. 652.026.  VACANCY DURING TRANSITION PERIOD
  245-7                        CHAPTER 652.  VACANCIES
  245-8                   SUBCHAPTER A.  GENERAL PROVISIONS
  245-9        Sec. 652.001.  TERM OF APPOINTMENT TO VACANCY.  An
 245-10  appointment made by the governor to a vacancy in the office of a
 245-11  commissioner, commission, or board created by law is for the
 245-12  unexpired term, unless otherwise provided by law.  (V.A.C.S.
 245-13  Art. 21.)
 245-14           (Sections 652.002-652.020 reserved for expansion)
 245-15           SUBCHAPTER B.  PROHIBITIONS ON FILLING VACANCIES
 245-16        Sec. 652.021.  SCOPE OF SUBCHAPTER.  (a)  This subchapter
 245-17  applies to a vacancy in a state or district office that is to be
 245-18  filled by appointment by the governor.
 245-19        (b)  For purposes of this subchapter, the expiration of a
 245-20  state or district officer's term of office creates a vacancy in the
 245-21  office.  (V.A.C.S. Art. 19a, Sec. 1.)
 245-22        Sec. 652.022.  DEFINITION.  In this subchapter, "transition
 245-23  period" means the period beginning on November 1 in a year of a
 245-24  general election for the office of governor and ending on the day
 245-25  the individual elected governor, or the individual's successor if
 245-26  the individual elected governor is unable to serve, takes office as
 245-27  governor.  (V.A.C.S. Art. 19a, Sec. 2(a) (part); New.)
  246-1        Sec. 652.023.  PROHIBITION AGAINST FILLING CERTAIN VACANCIES.
  246-2  An incumbent governor may not, during the transition period,
  246-3  appoint an individual to fill a vacancy that occurred before the
  246-4  beginning of the transition period.  (V.A.C.S. Art. 19a, Sec. 2(a)
  246-5  (part).)
  246-6        Sec. 652.024.  EXCEPTIONS.  Section 652.023 does not apply
  246-7  to:
  246-8              (1)  an incumbent governor if the secretary of state
  246-9  proclaims that, according to the secretary's count of returns from
 246-10  the general election, the governor is reelected; or
 246-11              (2)  a vacancy that:
 246-12                    (A)  first occurs after October 1 preceding the
 246-13  transition period and before the transition period begins;
 246-14                    (B)  is caused by the death of the officeholder;
 246-15  and
 246-16                    (C)  would not have occurred during the period
 246-17  described by Paragraph (A).  (V.A.C.S. Art. 19a, Secs. 2(a) (part),
 246-18  (b), (d).)
 246-19        Sec. 652.025.  APPOINTMENT VOID.  An appointment made in
 246-20  violation of Section 652.023 is void.  (V.A.C.S. Art. 19a, Sec.
 246-21  2(c).)
 246-22        Sec. 652.026.  VACANCY DURING TRANSITION PERIOD.  (a)  If a
 246-23  vacancy first occurs during the transition period, the incumbent
 246-24  governor may appoint an individual to fill the vacancy only for a
 246-25  partial term expiring February 1 following the occurrence of the
 246-26  vacancy.
 246-27        (b)  This section does not apply to:
  247-1              (1)  a vacancy for which Article V of the Texas
  247-2  Constitution prescribes a different term; or
  247-3              (2)  an appointee of an incumbent governor if the
  247-4  secretary of state proclaims that, according to the secretary's
  247-5  count of the returns from the general election, the governor is
  247-6  reelected.  (V.A.C.S. Art. 19a, Secs. 3(a), (b).)
  247-7          CHAPTER 653.  BONDS COVERING CERTAIN STATE OFFICERS
  247-8                             AND EMPLOYEES
  247-9  Sec. 653.001.  SHORT TITLE
 247-10  Sec. 653.002.  LEGISLATIVE INTENT
 247-11  Sec. 653.003.  DEFINITIONS
 247-12  Sec. 653.004.  AUTHORITY TO PURCHASE BONDS
 247-13  Sec. 653.005.  AMOUNT OF BOND COVERAGE
 247-14  Sec. 653.006.  TERMS OF BONDS
 247-15  Sec. 653.007.  WRITING OF BONDS
 247-16  Sec. 653.008.  FILING AND CUSTODY OF BONDS
 247-17  Sec. 653.009.  PAYMENT OF PREMIUMS
 247-18  Sec. 653.010.  ATTORNEY GENERAL AUTHORIZED TO RECOVER LOSS
 247-19  Sec. 653.011.  DEPOSIT OF RECOVERY
 247-20          CHAPTER 653.  BONDS COVERING CERTAIN STATE OFFICERS
 247-21                             AND EMPLOYEES
 247-22        Sec. 653.001.  SHORT TITLE.  This chapter may be cited as the
 247-23  State Employee Bonding Act.  (V.A.C.S. Art. 6003b, Sec. 1.)
 247-24        Sec. 653.002.  LEGISLATIVE INTENT.  The intent of the
 247-25  legislature in enacting this chapter is to prescribe:
 247-26              (1)  uniform standards for the bonding of officers and
 247-27  employees of state agencies to provide protection against loss; and
  248-1              (2)  a uniform bond to cover those officers and
  248-2  employees.  (V.A.C.S. Art. 6003b, Sec. 2.)
  248-3        Sec. 653.003.  DEFINITIONS.  In this chapter:
  248-4              (1)  "Bond" means an agreement obligating an insurance
  248-5  company, as a surety, to pay within certain limits a loss caused by
  248-6  a:
  248-7                    (A)  dishonest act of an officer or employee of a
  248-8  state agency; or
  248-9                    (B)  failure of an officer or employee of a state
 248-10  agency to faithfully perform a duty of the officer's or employee's
 248-11  office or position.
 248-12              (2)  "Faithful performance blanket position bond" means
 248-13  a bond that:
 248-14                    (A)  covers all positions in a state agency; and
 248-15                    (B)  is conditioned on the faithful performance
 248-16  of the officers' and employees' duties.
 248-17              (3)  "Honesty blanket position bond" means a bond that
 248-18  covers all positions in a state agency for a specific amount for
 248-19  each position.
 248-20              (4)  "Position schedule honesty bond" means a bond that
 248-21  covers, for a specific amount for each position, the honesty of an
 248-22  employee of a state agency who occupies and performs the duties of
 248-23  a position listed in a schedule attached to the bond.
 248-24              (5)  "Specific excess indemnity" means additional bond
 248-25  coverage that exceeds the coverage specified in a faithful
 248-26  performance blanket position bond, honesty blanket position bond,
 248-27  or position schedule honesty bond.
  249-1              (6)  "State agency" means a state department,
  249-2  commission, board, institution, court, or institution of higher
  249-3  education.  The term also includes a soil conservation district of
  249-4  the state but does not include any other political subdivision of
  249-5  the state.  (V.A.C.S. Art. 6003b, Sec. 3.)
  249-6        Sec. 653.004.  AUTHORITY TO PURCHASE BONDS.  (a)  The head of
  249-7  a state agency may contract for:
  249-8              (1)  a position schedule honesty bond covering not more
  249-9  than 10 offices or positions of the state agency; or
 249-10              (2)  a blanket position bond for more than two offices
 249-11  or positions of the state agency.
 249-12        (b)  The head of a state agency may not contract for coverage
 249-13  of the same office or position under more than one type of bond,
 249-14  other than for specific excess indemnity authorized under
 249-15  Subsection (c).
 249-16        (c)  The head of a state agency, other than the comptroller
 249-17  or the state treasurer, may contract for specific excess indemnity
 249-18  coverage in addition to a blanket bond.  The comptroller or the
 249-19  state treasurer may contract for:
 249-20              (1)  specific excess indemnity coverage in addition to
 249-21  an honesty blanket position bond or to a position schedule honesty
 249-22  bond; and
 249-23              (2)  a faithful performance blanket position bond.
 249-24        (d)  A bond covers the office or position rather than the
 249-25  officer or employee in the office or position.  (V.A.C.S. Art.
 249-26  6003b, Secs. 4 (part), 5(b), 6(d) (part).)
 249-27        Sec. 653.005.  AMOUNT OF BOND COVERAGE.  (a)  The head of a
  250-1  state agency shall determine the necessary amount of bond coverage
  250-2  for the agency within the maximum bond coverage limit.
  250-3        (b)  The maximum bond coverage on a state officer or
  250-4  employee, including specific excess indemnity coverage, may not
  250-5  exceed $10,000 unless the state auditor recommends and approves
  250-6  specific excess indemnity coverage of more than $10,000 as
  250-7  necessary to protect the state.  (V.A.C.S. Art. 6003b, Secs. 4
  250-8  (part), 5(a), (c).)
  250-9        Sec. 653.006.  TERMS OF BONDS.  A bond may be purchased for
 250-10  three-year coverage.  (V.A.C.S. Art. 6003b, Sec. 6(d) (part).)
 250-11        Sec. 653.007.  WRITING OF BONDS.  (a)  Only an insurance
 250-12  company authorized to act as surety in this state may write a bond
 250-13  under this chapter.
 250-14        (b)  A bond under this chapter must be written in triplicate
 250-15  originals on a form approved by the State Board of Insurance.
 250-16  (V.A.C.S. Art. 6003b, Secs. 4 (part), 6(a), (c) (part).)
 250-17        Sec. 653.008.  FILING AND CUSTODY OF BONDS.  (a)  One
 250-18  original of each bond shall be filed with the secretary of state.
 250-19        (b)  One original of each bond shall be filed with the
 250-20  comptroller.
 250-21        (c)  One original of each bond shall be filed with the state
 250-22  agency covered by the bond.
 250-23        (d)  Each state agency is responsible for custody of the
 250-24  bond.  (V.A.C.S. Art. 6003b, Sec. 6(c) (part).)
 250-25        Sec. 653.009.  PAYMENT OF PREMIUMS.  The state, as
 250-26  beneficiary, shall pay premiums on bonds under this chapter from:
 250-27              (1)  money appropriated by the legislature for that
  251-1  purpose;
  251-2              (2)  money appropriated by the legislature to a state
  251-3  agency for:
  251-4                    (A)  administration or administration expense;
  251-5                    (B)  operation expense;
  251-6                    (C)  general operation expense;
  251-7                    (D)  maintenance;
  251-8                    (E)  miscellaneous expense; or
  251-9                    (F)  contingencies; or
 251-10              (3)  money of a state agency that:
 251-11                    (A)  is outside the state treasury; and
 251-12                    (B)  may be used by the agency for operational
 251-13  expenses of the agency.  (V.A.C.S. Art. 6003b, Sec. 6(b).)
 251-14        Sec. 653.010.  ATTORNEY GENERAL AUTHORIZED TO RECOVER LOSS.
 251-15  The attorney general, on notice by an agency of a loss covered by a
 251-16  bond under this chapter, may:
 251-17              (1)  immediately bring an action to recover the loss;
 251-18  and
 251-19              (2)  take any action necessary for recovery of the
 251-20  obligation of the surety.  (V.A.C.S. Art. 6003b, Sec. 7 (part).)
 251-21        Sec. 653.011.  DEPOSIT OF RECOVERY.  A recovery of a loss or
 251-22  a recovery on a bond under this chapter shall be deposited to the
 251-23  credit of the fund from which the loss occurred.  (V.A.C.S. Art.
 251-24  6003b, Sec. 7 (part).)
 251-25                 CHAPTER 654.  POSITION CLASSIFICATION
 251-26                   SUBCHAPTER A.  GENERAL PROVISIONS
 251-27  Sec. 654.001.  SHORT TITLE
  252-1  Sec. 654.002.  POSITION CLASSIFICATION PLAN
  252-2           (Sections 654.003-654.010 reserved for expansion)
  252-3              SUBCHAPTER B.  POSITION CLASSIFICATION PLAN
  252-4  Sec. 654.011.  APPLICATION OF POSITION CLASSIFICATION PLAN
  252-5  Sec. 654.012.  EXCEPTIONS FROM POSITION CLASSIFICATION PLAN
  252-6  Sec. 654.013.  DEFERRAL FROM POSITION CLASSIFICATION PLAN
  252-7  Sec. 654.014.  APPOINTMENTS TO CONFORM WITH POSITION
  252-8                   CLASSIFICATION PLAN AND GENERAL
  252-9                   APPROPRIATIONS ACT
 252-10  Sec. 654.015.  QUALIFICATION REQUIREMENTS AND SPECIFICATIONS IN
 252-11                   POSITION CLASSIFICATION PLAN
 252-12  Sec. 654.016.  NEW CLASS OR KIND OF WORK
 252-13           (Sections 654.017-654.030 reserved for expansion)
 252-14                 SUBCHAPTER C.  CLASSIFICATION OFFICER
 252-15  Sec. 654.031.  POSITION OF CLASSIFICATION OFFICER
 252-16  Sec. 654.032.  APPOINTMENT OF CLASSIFICATION OFFICER
 252-17  Sec. 654.033.  QUALIFICATIONS OF CLASSIFICATION OFFICER
 252-18  Sec. 654.034.  SALARY OF CLASSIFICATION OFFICER
 252-19  Sec. 654.035.  FIRST ASSISTANT CLASSIFICATION OFFICER
 252-20  Sec. 654.036.  GENERAL DUTIES OF CLASSIFICATION OFFICER
 252-21  Sec. 654.037.  SALARY STUDIES AND RECOMMENDATIONS
 252-22  Sec. 654.038.  PERSONNEL AUDITS; NOTIFICATION AND VOLUNTARY
 252-23                   CORRECTION OF NONCONFORMITY
 252-24  Sec. 654.039.  REPORT OF INACTION
 252-25  Sec. 654.040.  ACTION BY GOVERNOR
 252-26  Sec. 654.041.  EXAMINATION FOR COMPLIANCE BY STATE AUDITOR;
 252-27                   REPORTS
  253-1  Sec. 654.042.  ASSISTANCE FROM STATE AUDITOR
  253-2  Sec. 654.043.  FREE USE OF COMPTROLLER'S DATA PROCESSING
  253-3                   CENTER
  253-4           (Sections 654.044-654.060 reserved for expansion)
  253-5                       SUBCHAPTER D.  OTHER LAWS
  253-6  Sec. 654.061.  CONSTRUCTION WITH OTHER LAWS
  253-7  Sec. 654.062.  CONFLICT WITH LAWS RELATING TO EMPLOYEE MERIT
  253-8                   SYSTEMS IN CERTAIN AGENCIES
  253-9                 CHAPTER 654.  POSITION CLASSIFICATION
 253-10                   SUBCHAPTER A.  GENERAL PROVISIONS
 253-11        Sec. 654.001.  SHORT TITLE.  This chapter may be cited as the
 253-12  Position Classification Act.  (V.A.C.S. Art. 6252-11, Sec. 1.)
 253-13        Sec. 654.002.  POSITION CLASSIFICATION PLAN.  In this
 253-14  chapter, the position classification plan is the Texas Position
 253-15  Classification Plan, 1961, that was filed with the governor, as
 253-16  changed under this chapter, and that provides the salary structure
 253-17  for specified state employments.  (V.A.C.S. Art. 6252-11, Sec. 3.)
 253-18           (Sections 654.003-654.010 reserved for expansion)
 253-19              SUBCHAPTER B.  POSITION CLASSIFICATION PLAN
 253-20        Sec. 654.011.  APPLICATION OF POSITION CLASSIFICATION PLAN.
 253-21  (a)  The position classification plan and the salary rates and
 253-22  provisions in the General Appropriations Act apply to all regular,
 253-23  full-time salaried employments in the state departments, agencies,
 253-24  or judicial entities specified in the articles of the General
 253-25  Appropriations Act that appropriate money to:
 253-26              (1)  executive and administrative departments and
 253-27  agencies;
  254-1              (2)  health, welfare, and rehabilitation agencies;
  254-2              (3)  the judiciary, except for judges, district
  254-3  attorneys, and assistant district attorneys; and
  254-4              (4)  agencies of public education, but only the Central
  254-5  Education Agency, the Texas School for the Blind and Visually
  254-6  Impaired, and the Texas School for the Deaf.
  254-7        (b)  Except as provided by this chapter, the position
  254-8  classification plan and the salary rates and provisions in the
  254-9  General Appropriations Act apply to all regular, full-time salaried
 254-10  employments in executive and administrative agencies of the state,
 254-11  without regard to whether the money of the agency is kept in the
 254-12  state treasury.  (V.A.C.S. Art. 6252-11, Sec. 2 (part).)
 254-13        Sec. 654.012.  EXCEPTIONS FROM POSITION CLASSIFICATION PLAN.
 254-14  The position classification plan does not apply to:
 254-15              (1)  a constitutional officer or official;
 254-16              (2)  an elected officer or official;
 254-17              (3)  an officer appointed by the governor;
 254-18              (4)  the chief executive of a state agency;
 254-19              (5)  a teacher in a public school, special school of
 254-20  the state, or state institution of higher education;
 254-21              (6)  research personnel in state institutions of higher
 254-22  education;
 254-23              (7)  a medical doctor;
 254-24              (8)  a professional compensated for services on a fee
 254-25  basis;
 254-26              (9)  an hourly employee;
 254-27              (10)  a part-time employee;
  255-1              (11)  a temporary employee; and
  255-2              (12)  an employment excluded from the plan:
  255-3                    (A)  by executive order of the governor; or
  255-4                    (B)  at the direction of the legislature.
  255-5  (V.A.C.S. Art. 6252-11, Sec. 2 (part).)
  255-6        Sec. 654.013.  DEFERRAL FROM POSITION CLASSIFICATION PLAN.
  255-7  Nonacademic employments in state institutions of higher education
  255-8  are deferred from the application of the position classification
  255-9  plan until the governor orders or the legislature directs
 255-10  otherwise.  (V.A.C.S. Art. 6252-11, Sec. 2 (part).)
 255-11        Sec. 654.014.  APPOINTMENTS TO CONFORM WITH POSITION
 255-12  CLASSIFICATION PLAN AND GENERAL APPROPRIATIONS ACT.  Each
 255-13  employment to which this subchapter applies shall conform to:
 255-14              (1)  the classes of work described in the position
 255-15  classification plan;
 255-16              (2)  the titles authorized by the plan; and
 255-17              (3)  the salary rates and provisions in the General
 255-18  Appropriations Act.  (V.A.C.S. Art. 6252-11, Secs. 2 (part), 4
 255-19  (part).)
 255-20        Sec. 654.015.  QUALIFICATION REQUIREMENTS AND SPECIFICATIONS
 255-21  IN POSITION CLASSIFICATION PLAN.  General qualification
 255-22  requirements in the position classification plan, including
 255-23  specifications for experience, training, education, knowledge,
 255-24  skills, abilities, and physical conditions:
 255-25              (1)  are only meant to represent the qualifications
 255-26  commonly wanted by employing officers of the state; and
 255-27              (2)  do not have the force of law.  (V.A.C.S.
  256-1  Art. 6252-11, Sec. 5 (part).)
  256-2        Sec. 654.016.  NEW CLASS OR KIND OF WORK.  (a)  A governing
  256-3  board or a chief executive of an agency needing to employ a person
  256-4  in a class or kind of work that is subject to but not described in
  256-5  the position classification plan shall notify the classification
  256-6  officer of the situation.
  256-7        (b)  The classification officer shall, to permit the needed
  256-8  employment, promptly:
  256-9              (1)  include the employment in an existing class
 256-10  description of work or provide a new class description of work for
 256-11  the employment; and
 256-12              (2)  set a salary range for the class.
 256-13        (c)  The classification officer shall notify the comptroller
 256-14  of the actions.
 256-15        (d)  An action of the classification officer under this
 256-16  section is subject to:
 256-17              (1)  any limitation established for the agency in the
 256-18  General Appropriations Act, including limitations on the number of
 256-19  positions and amount of appropriations; and
 256-20              (2)  the approval of the state auditor with advice from
 256-21  the Legislative Audit Committee.  (V.A.C.S. Art. 6252-11, Sec. 5
 256-22  (part).)
 256-23           (Sections 654.017-654.030 reserved for expansion)
 256-24                 SUBCHAPTER C.  CLASSIFICATION OFFICER
 256-25        Sec. 654.031.  POSITION OF CLASSIFICATION OFFICER.  The
 256-26  position of classification officer is in the office of the state
 256-27  auditor.  (V.A.C.S. Art. 6252-11, Sec. 6(a) (part).)
  257-1        Sec. 654.032.  APPOINTMENT OF CLASSIFICATION OFFICER.  The
  257-2  state auditor shall appoint the classification officer, subject to
  257-3  the advice and approval of the Legislative Audit Committee.
  257-4  (V.A.C.S. Art. 6252-11, Sec. 6(a) (part).)
  257-5        Sec. 654.033.  QUALIFICATIONS OF CLASSIFICATION OFFICER.  To
  257-6  be eligible for appointment as classification officer, an
  257-7  individual must have:
  257-8              (1)  at least six years' experience in position
  257-9  classification or personnel management; or
 257-10              (2)  a period of experience equivalent to that
 257-11  described in Subdivision (1) in related work in state employment
 257-12  that specially qualifies the person for the position.  (V.A.C.S.
 257-13  Art. 6252-11, Sec. 6(a) (part).)
 257-14        Sec. 654.034.  SALARY OF CLASSIFICATION OFFICER.  The
 257-15  classification officer is entitled to the salary set by the General
 257-16  Appropriations Act.  (V.A.C.S. Art. 6252-11, Sec. 6(a) (part).)
 257-17        Sec. 654.035.  FIRST ASSISTANT CLASSIFICATION OFFICER.  The
 257-18  classification officer, subject to the approval of the state
 257-19  auditor and the Legislative Audit Committee, may appoint a first
 257-20  assistant classification officer to whom the classification officer
 257-21  may delegate the statutory powers and duties of the classification
 257-22  officer when the classification officer is absent.  (V.A.C.S. Art.
 257-23  6252-11, Sec. 6(b).)
 257-24        Sec. 654.036.  GENERAL DUTIES OF CLASSIFICATION OFFICER.  The
 257-25  classification officer shall:
 257-26              (1)  maintain and keep current the position
 257-27  classification plan;
  258-1              (2)  advise and assist state agencies in equitably and
  258-2  uniformly applying the plan;
  258-3              (3)  assist in personnel audits to ensure conformity
  258-4  with the plan; and
  258-5              (4)  make necessary and desirable recommendations about
  258-6  the operation and for improvement of the plan to the governor and
  258-7  the legislature.  (V.A.C.S. Art. 6252-11, Sec. 6(d) (part).)
  258-8        Sec. 654.037.  SALARY STUDIES AND RECOMMENDATIONS.  The
  258-9  classification officer shall:
 258-10              (1)  make periodic studies of salary rates in other
 258-11  governmental units and in industry for similar work performed in
 258-12  state government; and
 258-13              (2)  report the officer's findings and recommendations
 258-14  for adjusting state salary ranges to the governor's budget office
 258-15  and the Legislative Budget Board not later than October 1 in each
 258-16  even-numbered year.  (V.A.C.S. Art. 6252-11, Sec. 6(d) (part).)
 258-17        Sec. 654.038.  PERSONNEL AUDITS; NOTIFICATION AND VOLUNTARY
 258-18  CORRECTION OF NONCONFORMITY.  (a)  The classification officer shall
 258-19  notify the chief executive of the agency in writing when a
 258-20  personnel audit reveals nonconformity with the position
 258-21  classification plan or with prescribed salary ranges.  The
 258-22  notification shall specify the points of nonconformity.
 258-23        (b)  The chief executive is entitled to a reasonable
 258-24  opportunity to resolve the nonconformity by:
 258-25              (1)  reassigning the employee to a position title or
 258-26  class consistent with the work performed;
 258-27              (2)  changing the employee's title or salary rate to
  259-1  conform to the plan and salary range; or
  259-2              (3)  obtaining a new class description of work and
  259-3  salary range.  (V.A.C.S. Art. 6252-11, Sec. 6(e).)
  259-4        Sec. 654.039.  REPORT OF INACTION.  The classification
  259-5  officer shall make a written report of the facts to the governor
  259-6  and the Legislative Budget Board if the chief executive of an
  259-7  agency does not comply with Section 654.038(b) before the 21st day
  259-8  after the date of the classification officer's written
  259-9  notification.  (V.A.C.S. Art. 6252-11, Sec. 6(f) (part).)
 259-10        Sec. 654.040.  ACTION BY GOVERNOR.  In response to a report
 259-11  under Section 654.039, the governor:
 259-12              (1)  may determine, with the advice of the Legislative
 259-13  Audit Committee, the action to be taken to resolve a nonconformity;
 259-14  and
 259-15              (2)  may direct the comptroller to not issue a payroll
 259-16  warrant for the appropriate employee or position until the
 259-17  nonconformity is corrected.  (V.A.C.S Art. 6252-11, Sec. 6(f)
 259-18  (part).)
 259-19        Sec. 654.041.  EXAMINATION FOR COMPLIANCE BY STATE AUDITOR;
 259-20  REPORTS.  The state auditor shall:
 259-21              (1)  examine, in periodic post-audits of their
 259-22  expenditures and by methods the auditor considers appropriate and
 259-23  adequate, whether departments and agencies are in compliance with
 259-24  this chapter; and
 259-25              (2)  report the findings to the governor, the
 259-26  comptroller, and the Legislative Audit Committee.  (V.A.C.S. Art.
 259-27  6252-11, Sec. 4 (part).)
  260-1        Sec. 654.042.  ASSISTANCE FROM STATE AUDITOR.  The state
  260-2  auditor may provide assistance to the classification officer using
  260-3  money appropriated for that purpose.  (V.A.C.S. Art. 6252-11, Sec.
  260-4  6(a) (part).)
  260-5        Sec. 654.043.  FREE USE OF COMPTROLLER'S DATA PROCESSING
  260-6  CENTER.  The classification officer may use, without charge, the
  260-7  comptroller's data processing center to process position
  260-8  classification information when the center is available.  (V.A.C.S.
  260-9  Art. 6252-11, Sec. 6(c).)
 260-10           (Sections 654.044-654.060 reserved for expansion)
 260-11                       SUBCHAPTER D.  OTHER LAWS
 260-12        Sec. 654.061.  CONSTRUCTION WITH OTHER LAWS.  (a)  This
 260-13  chapter does not affect the authority of a governing body or a
 260-14  chief executive of an agency under another law to employ persons or
 260-15  promote or dismiss employees.
 260-16        (b)  This chapter does not authorize an increase in the
 260-17  number of positions in an agency or the amount of appropriations to
 260-18  an agency set by the General Appropriations Act.  (V.A.C.S. Art.
 260-19  6252-11, Sec. 5 (part).)
 260-20        Sec. 654.062.  CONFLICT WITH LAWS RELATING TO EMPLOYEE MERIT
 260-21  SYSTEMS IN CERTAIN AGENCIES.  Sections 654.015 and 654.061 do not
 260-22  abrogate statutory authorization for a state agency to operate
 260-23  under an employee merit system as a condition for qualifying for
 260-24  federal grants-in-aid.  A merit system agreed to by a state agency
 260-25  and an agency of the federal government shall continue in effect,
 260-26  subject to applicable state law.  (V.A.C.S. Art. 6252-11, Sec. 5
 260-27  (part).)
  261-1                     CHAPTER 655.  MERIT SELECTION
  261-2  Sec. 655.001.  APPLICABILITY
  261-3  Sec. 655.002.  MERIT SELECTION PRINCIPLES
  261-4  Sec. 655.003.  ADDITIONAL MERIT SELECTION PRINCIPLES
  261-5  Sec. 655.004.  ADMINISTRATION OF MERIT SELECTION
  261-6                     CHAPTER 655.  MERIT SELECTION
  261-7        Sec. 655.001.  APPLICABILITY.  This chapter applies only to a
  261-8  state agency that is required by federal law or regulation to use a
  261-9  merit system of personnel administration for the agency or for a
 261-10  program administered under the agency.  (V.A.C.S. Art. 6252-11g,
 261-11  Sec. 1(a) (part).)
 261-12        Sec. 655.002.  MERIT SELECTION PRINCIPLES.  (a)  A state
 261-13  agency by rule shall establish intra-agency policies and procedures
 261-14  to ensure:
 261-15              (1)  compliance with the federal requirements; and
 261-16              (2)  the recruitment, selection, and advancement of
 261-17  highly competent agency personnel.
 261-18        (b)  A rule adopted under this section must ensure that the
 261-19  state agency:
 261-20              (1)  recruits, selects, and promotes its employees
 261-21  according to the relative abilities, knowledge, and skills of the
 261-22  applicants or employees;
 261-23              (2)  provides equitable and adequate compensation to an
 261-24  employee;
 261-25              (3)  provides any employee training necessary to ensure
 261-26  performance of a high quality;
 261-27              (4)  uses the adequacy of an employee's job performance
  262-1  to determine whether the employee will be retained;
  262-2              (5)  treats a job applicant or employee fairly in all
  262-3  aspects of personnel administration;
  262-4              (6)  complies fully with state and federal equal
  262-5  opportunity and nondiscrimination laws; and
  262-6              (7)  protects an employee against coercion for partisan
  262-7  political purposes and prohibits the employee from using employment
  262-8  status to interfere with, or affect the result of, an election or
  262-9  nomination for office.  (V.A.C.S. Art. 6252-11g, Secs. 1(a) (part),
 262-10  2(a).)
 262-11        Sec. 655.003.  ADDITIONAL MERIT SELECTION PRINCIPLES.  A
 262-12  state agency shall implement any additional merit principles
 262-13  required by federal law or regulation.  (V.A.C.S. Art. 6252-11g,
 262-14  Sec. 2(b).)
 262-15        Sec. 655.004.  ADMINISTRATION OF MERIT SELECTION.  A state
 262-16  agency may create a separate division within the agency to
 262-17  administer merit selection policies and procedures if the chief
 262-18  executive of the agency considers the creation necessary.
 262-19  (V.A.C.S. Art. 6252-11g, Sec. 1(b).)
 262-20                CHAPTER 656.  JOB NOTICES AND TRAINING
 262-21                  SUBCHAPTER A.  EMPLOYMENT OPENINGS
 262-22  Sec. 656.001.  STATE AGENCY EMPLOYMENT OPENINGS
 262-23           (Sections 656.002-656.020 reserved for expansion)
 262-24                      SUBCHAPTER B.  JOB NOTICES
 262-25  Sec. 656.021.  DEFINITIONS
 262-26  Sec. 656.022.  SUBMISSION OF JOB INFORMATION FORMS
 262-27  Sec. 656.023.  JOB INFORMATION FORMS
  263-1  Sec. 656.024.  PUBLIC NOTICE OF JOB VACANCIES
  263-2  Sec. 656.025.  OTHER EFFORTS TO INFORM SOURCES OF VACANCIES
  263-3           (Sections 656.026-656.040 reserved for expansion)
  263-4                        SUBCHAPTER C.  TRAINING
  263-5  Sec. 656.041.  SHORT TITLE
  263-6  Sec. 656.042.  DEFINITION
  263-7  Sec. 656.043.  PUBLIC FUNDS FOR TRAINING AND EDUCATION
  263-8  Sec. 656.044.  REQUIRED ATTENDANCE AT PROGRAM
  263-9  Sec. 656.045.  PURPOSES OF PROGRAM
 263-10  Sec. 656.046.  PAYMENT OF PROGRAM EXPENSES
 263-11  Sec. 656.047.  RULES RELATING TO TRAINING AND EDUCATION
 263-12  Sec. 656.048.  AUTHORITY TO CONTRACT
 263-13                CHAPTER 656.  JOB NOTICES AND TRAINING
 263-14                  SUBCHAPTER A.  EMPLOYMENT OPENINGS
 263-15        Sec. 656.001.  STATE AGENCY EMPLOYMENT OPENINGS.  Any agency,
 263-16  board, bureau, commission, committee, council, court, department,
 263-17  institution, or office in the executive or judicial branch of state
 263-18  government that has an employment opening for which persons from
 263-19  outside the agency will be considered shall list the opening with
 263-20  the Texas Employment Commission.  (V.A.C.S. Art. 5221g-2.)
 263-21           (Sections 656.002-656.020 reserved for expansion)
 263-22                      SUBCHAPTER B.  JOB NOTICES
 263-23        Sec. 656.021.  DEFINITIONS.  In this subchapter:
 263-24              (1)  "Commission" means the Texas Employment
 263-25  Commission.
 263-26              (2)  "State agency" means:
 263-27                    (A)  a department, commission, board, office,
  264-1  institution, or other agency that:
  264-2                          (i)  is in the executive branch of state
  264-3  government;
  264-4                          (ii)  has authority that is not limited to
  264-5  a geographical portion of this state; and
  264-6                          (iii)  was created by the constitution or a
  264-7  statute of this state; or
  264-8                    (B)  a university system or an institution of
  264-9  higher education as defined by Section 61.003, Education Code,
 264-10  other than a public junior college.  (V.A.C.S. Art. 6252-11b,
 264-11  Sec. 1 (part).)
 264-12        Sec. 656.022.  SUBMISSION OF JOB INFORMATION FORMS.  As soon
 264-13  as possible after a job vacancy occurs or is filled in Travis
 264-14  County in a state agency, the agency shall complete and deliver to
 264-15  the commission and to the Equal Employment Opportunity Office in
 264-16  the governor's office the appropriate information form prescribed
 264-17  by the commission and pertaining to the job vacancy or placement.
 264-18  (V.A.C.S. Art. 6252-11b, Secs. 1 (part); 2(a).)
 264-19        Sec. 656.023.  JOB INFORMATION FORMS.  The commission shall
 264-20  prescribe the forms for information from state agencies necessary
 264-21  for the commission to serve as a central processing agency for
 264-22  state agency job opportunities in Travis County.  (V.A.C.S.
 264-23  Art. 6252-11b, Sec. 3.)
 264-24        Sec. 656.024.  PUBLIC NOTICE OF JOB VACANCIES.  The
 264-25  commission shall publicly list, in accordance with the commission's
 264-26  procedures, for at least 10 working days, each notice of a job
 264-27  vacancy delivered under Section 656.022 unless the commission is
  265-1  sooner notified by the state agency having the vacancy that the
  265-2  vacancy has been filled.  (V.A.C.S. Art. 6252-11b, Sec. 4(a).)
  265-3        Sec. 656.025.  OTHER EFFORTS TO INFORM SOURCES OF VACANCIES.
  265-4  A state agency is encouraged to continue other efforts used to
  265-5  inform outside applicant recruitment sources of job vacancies.
  265-6  (V.A.C.S. Art. 6252-11b, Sec. 5.)
  265-7           (Sections 656.026-656.040 reserved for expansion)
  265-8                        SUBCHAPTER C.  TRAINING
  265-9        Sec. 656.041.  SHORT TITLE.  This subchapter may be cited as
 265-10  the State Employees Training Act.  (V.A.C.S. Art. 6252-11a, Sec.
 265-11  1.)
 265-12        Sec. 656.042.  DEFINITION.  In this subchapter, "state
 265-13  agency" means a department, agency, or institution of this state,
 265-14  including an institution of higher education, as defined by Section
 265-15  61.003, Education Code.  (V.A.C.S. Art. 6252-11a, Sec. 3(b); New.)
 265-16        Sec. 656.043.  PUBLIC FUNDS FOR TRAINING AND EDUCATION.  A
 265-17  state agency may use public funds to provide training and education
 265-18  for its administrators and employees.  The training or education
 265-19  must be related to the duties or prospective duties of the
 265-20  administrator or employee.  (V.A.C.S. Art. 6252-11a, Secs. 3(a)
 265-21  (part), 4 (part).)
 265-22        Sec. 656.044.  REQUIRED ATTENDANCE AT PROGRAM.  A state
 265-23  agency may require an administrator or employee of the agency to
 265-24  attend, as all or part of the administrator's or employee's duties,
 265-25  a training or education program if the training or education is
 265-26  related to the administrator's or employee's duties or prospective
 265-27  duties.  (V.A.C.S. Art. 6252-11a, Sec. 4 (part).)
  266-1        Sec. 656.045.  PURPOSES OF PROGRAM.  A state agency's
  266-2  training and educational program may include:
  266-3              (1)  preparing for technological and legal
  266-4  developments;
  266-5              (2)  increasing work capabilities;
  266-6              (3)  increasing the number of qualified employees in
  266-7  areas designated by institutions of higher education as having an
  266-8  acute faculty shortage; and
  266-9              (4)  increasing the competence of state employees.
 266-10  (V.A.C.S. Art. 6252-11a, Sec. 3(a) (part).)
 266-11        Sec. 656.046.  PAYMENT OF PROGRAM EXPENSES.  A state agency
 266-12  may spend public funds as appropriate to pay the salary, tuition
 266-13  and other fees, travel and living expenses, training stipend,
 266-14  expense of training materials, and other necessary expenses of an
 266-15  instructor, student, or other participant in a training or
 266-16  education program.  (V.A.C.S. Art. 6252-11a, Sec. 3(a) (part).)
 266-17        Sec. 656.047.  RULES RELATING TO TRAINING AND EDUCATION.  (a)
 266-18  A state agency shall adopt rules relating to:
 266-19              (1)  the eligibility of the agency's administrators and
 266-20  employees for training and education supported by the agency; and
 266-21              (2)  the obligations assumed by the administrators and
 266-22  employees on receiving the training and education.
 266-23        (b)  A rule adopted under this section is not effective, and
 266-24  public funds may not be spent under the rule, until the governor
 266-25  approves the rule in writing.  (V.A.C.S. Art. 6252-11a, Sec. 5.)
 266-26        Sec. 656.048.  AUTHORITY TO CONTRACT.  A state agency may
 266-27  contract with another state, local, or federal department, agency,
  267-1  or institution, including a state-supported college or university,
  267-2  to train or educate its administrators and employees, including
  267-3  joint training or education.  (V.A.C.S. Art. 6252-11a, Sec. 3(a)
  267-4  (part).)
  267-5            CHAPTER 657.  VETERAN'S EMPLOYMENT PREFERENCES
  267-6  Sec. 657.001.  DEFINITIONS
  267-7  Sec. 657.002.  INDIVIDUALS ENTITLED TO VETERAN'S EMPLOYMENT
  267-8                   PREFERENCE
  267-9  Sec. 657.003.  VETERAN'S EMPLOYMENT PREFERENCE
 267-10  Sec. 657.004.  QUOTAS FOR PUBLIC ENTITIES AND PUBLIC WORKS
 267-11  Sec. 657.005.  EMPLOYMENT INVESTIGATION
 267-12  Sec. 657.006.  FEDERAL LAW AND GRANTS
 267-13            CHAPTER 657.  VETERAN'S EMPLOYMENT PREFERENCES
 267-14        Sec. 657.001.  DEFINITIONS.  In this chapter:
 267-15              (1)  "Established service-connected disability" means a
 267-16  disability that has been or may be established by official records.
 267-17              (2)  "Public entity" means a public department,
 267-18  commission, board, or agency.  (V.A.C.S. Art. 4413(31), Sec. 3
 267-19  (part); New.)
 267-20        Sec. 657.002.  INDIVIDUALS ENTITLED TO VETERAN'S EMPLOYMENT
 267-21  PREFERENCE.  (a)  A veteran or the widow or orphan of a veteran
 267-22  qualifies for a veteran's employment preference if the veteran:
 267-23              (1)  served in the military during:
 267-24                    (A)  the Spanish-American War;
 267-25                    (B)  the Philippine Insurrection;
 267-26                    (C)  the China Relief Expedition;
 267-27                    (D)  World War I;
  268-1                    (E)  World War II;
  268-2                    (F)  any other military conflict in which the
  268-3  United States was a participant before June 18, 1945;
  268-4                    (G)  the Korean War after June 24, 1950; or
  268-5                    (H)  the Vietnam conflict after July 1953;
  268-6              (2)  was honorably discharged from military service;
  268-7  and
  268-8              (3)  is competent.
  268-9        (b)  This chapter does not apply to a veteran who:
 268-10              (1)  was a conscientious objector at the time of the
 268-11  veteran's discharge from military service; or
 268-12              (2)  is receiving or entitled to receive military
 268-13  retirement pay, other than disability retirement pay, from the
 268-14  United States.
 268-15        (c)  In this section, "veteran" means an individual who
 268-16  served in the army, navy, air force, marine corps, or coast guard
 268-17  of the United States, or in an auxiliary service of one of those
 268-18  branches of the armed forces.  (V.A.C.S. Art. 4413(31), Secs. 1
 268-19  (part), 3(a); New.)
 268-20        Sec. 657.003.  VETERAN'S EMPLOYMENT PREFERENCE.  (a)  An
 268-21  individual who qualifies for a veteran's employment preference is
 268-22  entitled to a preference in employment with or appointment to a
 268-23  public entity or for a public work of this state over other
 268-24  applicants for the same position who do not have a greater
 268-25  qualification.
 268-26        (b)  An individual who has an established service-connected
 268-27  disability and is entitled to a veteran's employment preference is
  269-1  entitled to preference for employment or appointment in a position
  269-2  for which a competition examination is not held over all other
  269-3  applicants for the same position without a service-connected
  269-4  disability and who do not have a greater qualification.
  269-5        (c)  If a public entity or public work of this state requires
  269-6  a competitive examination under a merit system or civil service
  269-7  plan for selecting or promoting employees, an individual entitled
  269-8  to a veteran's employment preference who otherwise is qualified for
  269-9  that position and who has received at least the minimum required
 269-10  score for the test is entitled to have a service credit of 10
 269-11  points added to the test score.  An individual who has an
 269-12  established service-connected disability is entitled to have a
 269-13  service credit of five additional points added to the individual's
 269-14  test score.
 269-15        (d)  An individual entitled to a veteran's employment
 269-16  preference is not disqualified from holding a position with a
 269-17  public entity or public work of this state because of age or an
 269-18  established service-connected disability if the age or disability
 269-19  does not make the individual incompetent to perform the duties of
 269-20  the position.
 269-21        (e)  This chapter does not apply to:
 269-22              (1)  the position of private secretary or deputy of an
 269-23  official or department; or
 269-24              (2)  a person holding a strictly confidential relation
 269-25  to the appointing or employing officer.  (V.A.C.S. Art. 4413(31),
 269-26  Secs. 1 (part), 3 (part), 6.)
 269-27        Sec. 657.004.  QUOTAS FOR PUBLIC ENTITIES AND PUBLIC WORKS.
  270-1  (a)  An individual whose duty is to appoint or employ individuals
  270-2  for a public entity or public work of this state shall give
  270-3  preference in hiring to individuals entitled to a veteran's
  270-4  employment preference so that at least 40 percent of the employees
  270-5  of the public entity or public work are selected from individuals
  270-6  given that preference.  A public entity or public work that does
  270-7  not have 40 percent of its employees who are entitled to the
  270-8  preference shall, in filling vacancies, give preferences to
  270-9  individuals entitled to a veteran's employment preference until it
 270-10  has reached the 40 percent quota.
 270-11        (b)  In reaching the 40 percent quota, a public entity or
 270-12  public work shall, when possible, give 10 percent of the
 270-13  preferences granted under this chapter to qualified veterans
 270-14  discharged from the armed services of the United States within the
 270-15  preceding 18 months.
 270-16        (c)  A public entity or public work that meets the percentage
 270-17  quota in this section is exempt from the requirements of
 270-18  Subsections (a) and (b).  (V.A.C.S. Art. 4413(31), Secs. 2, 4
 270-19  (part).)
 270-20        Sec. 657.005.  EMPLOYMENT INVESTIGATION.  (a)  The individual
 270-21  whose duty is to appoint or employ an applicant for a position with
 270-22  a public entity or public work of this state or an officer or the
 270-23  chief administrator of the entity or work who receives an
 270-24  application for appointment or employment by an individual entitled
 270-25  to a veteran's employment preference, before appointing or
 270-26  employing any individual, shall investigate the qualifications of
 270-27  the applicant for the position.  If the applicant is of good moral
  271-1  character and can perform the duties of the position, the officer,
  271-2  chief executive, or individual whose duty is to appoint or employ
  271-3  shall appoint or employ the applicant for the position.
  271-4        (b)  An applicant with an established service-connected
  271-5  disability shall furnish the official records to the individual
  271-6  whose duty is to fill the position.  (V.A.C.S. Art. 4413(31),
  271-7  Secs. 3 (part), 4 (part).)
  271-8        Sec. 657.006.  FEDERAL LAW AND GRANTS.  To the extent that
  271-9  this chapter conflicts with federal law or a limitation provided by
 271-10  a federal grant to a public entity, this chapter shall be construed
 271-11  to operate in harmony with the federal law or limitation of the
 271-12  federal grant.  (V.A.C.S. Art. 4413(31), Sec. 5.)
 271-13                     CHAPTER 658.  HOURS OF LABOR
 271-14  Sec. 658.001.  DEFINITIONS
 271-15  Sec. 658.002.  WORK HOURS REQUIRED FOR SALARIED EMPLOYEES
 271-16  Sec. 658.003.  VOLUNTARY WORK REDUCTION PROGRAM
 271-17  Sec. 658.004.  NOTICE OF WORK REDUCTION PROGRAM
 271-18  Sec. 658.005.  REGULAR OFFICE HOURS FOR STATE EMPLOYEES
 271-19  Sec. 658.006.  STAGGERED WORKING HOURS; CAPITOL AREA IN
 271-20                   AUSTIN
 271-21  Sec. 658.007.  WORKING HOURS FOR EMPLOYEES OF INSTITUTIONS OF
 271-22                   HIGHER EDUCATION
 271-23                     CHAPTER 658.  HOURS OF LABOR
 271-24        Sec. 658.001.  DEFINITIONS.  In this chapter:
 271-25              (1)  "Full-time state employee" means a person employed
 271-26  by a state agency who, if not participating in a voluntary work
 271-27  reduction program under Section 658.003, is required to work for
  272-1  the agency not less than 40 hours a week.
  272-2              (2)  "State agency" means:
  272-3                    (A)  a board, commission, department,
  272-4  institution, office, or other agency in the executive branch of
  272-5  state government that is created by the constitution or a statute
  272-6  of this state; or
  272-7                    (B)  the Supreme Court of Texas, the Texas Court
  272-8  of Criminal Appeals, a court of appeals, or other agency in the
  272-9  judicial branch.  (V.A.C.S. Art. 5165a, Sec. 1.)
 272-10        Sec. 658.002.  WORK HOURS REQUIRED FOR SALARIED EMPLOYEES.
 272-11  (a)  A state employee paid a full-time salary  shall work not less
 272-12  than 40 hours a week.
 272-13        (b)  The chief administrator of a state agency that must
 272-14  maintain certain services 24 hours a day may require essential
 272-15  employees who perform those services to be on duty for a workweek
 272-16  that exceeds 40 hours in necessary or emergency situations.
 272-17        (c)  This section does not apply to a houseparent who is
 272-18  employed by and lives at a Texas Youth Commission facility.
 272-19  (V.A.C.S. Art. 5165a, Sec. 2.)
 272-20        Sec. 658.003.  VOLUNTARY WORK REDUCTION PROGRAM.  (a)  To
 272-21  increase state efficiency while reducing the cost of state
 272-22  government, a state agency may create a work reduction program in
 272-23  which a full-time state employee of the agency agrees to accept
 272-24  reduced wages and benefits for a proportionate reduction in work
 272-25  hours.
 272-26        (b)  Employee participation in a work reduction program
 272-27  created under this section is voluntary.
  273-1        (c)  An employee who elects to participate in a work
  273-2  reduction program must agree to participate in the program for at
  273-3  least six calendar months.  The agreement must be in writing and
  273-4  signed by the employee.
  273-5        (d)  A temporary or exempt employee is not eligible to
  273-6  participate in the program.  (V.A.C.S. Art. 5165a, Sec. 2A.)
  273-7        Sec. 658.004.  NOTICE OF WORK REDUCTION PROGRAM.  (a)  The
  273-8  chief administrator of a state agency that has created a work
  273-9  reduction program under Section 658.003 shall place notice of the
 273-10  program's availability in common areas of the agency.
 273-11        (b)  The chief administrator of a state agency may not
 273-12  discuss, initiate discussion of, or orally inform an employee of
 273-13  the work reduction program unless the employee first approaches the
 273-14  chief administrator about the availability of the program.
 273-15  (V.A.C.S. Art. 5165a, Sec. 2B.)
 273-16        Sec. 658.005.  REGULAR OFFICE HOURS FOR STATE EMPLOYEES.  (a)
 273-17  Normal office hours of a state agency are from 8 a.m. to 5 p.m.,
 273-18  Monday through Friday.  These hours are the regular working hours
 273-19  for a full-time state employee.
 273-20        (b)  If a chief administrator of a state agency considers it
 273-21  necessary or advisable, offices also may be kept open during other
 273-22  hours and on other days, and the time worked counts toward the 40
 273-23  hours a week that are required under Section 658.002.
 273-24        (c)  The chief administrator of a state agency may make
 273-25  exceptions to the minimum length of the workweek established by
 273-26  this chapter to take care of any emergency or public necessity that
 273-27  the chief administrator finds to exist.
  274-1        (d)  This section does not apply to an employee paid by the
  274-2  hour.  (V.A.C.S. Art. 5165a, Sec. 2C (part).)
  274-3        Sec. 658.006.  STAGGERED WORKING HOURS; CAPITOL AREA IN
  274-4  AUSTIN.  Normal working hours for employees of a state agency in
  274-5  the Capitol area in Austin may be staggered as authorized by the
  274-6  General Appropriations Act for traffic regulation or public safety.
  274-7  (V.A.C.S. Art. 5165a, Sec. 2C (part).)
  274-8        Sec. 658.007.  WORKING HOURS FOR EMPLOYEES OF INSTITUTIONS OF
  274-9  HIGHER EDUCATION.  (a)  The governing board of an institution of
 274-10  higher education or a university system, as those terms are defined
 274-11  in Section 61.003, Education Code, may make exceptions to the
 274-12  minimum length of the workweek and the maximum length of a workday
 274-13  established by this chapter to achieve and maintain operational
 274-14  efficiency at the institution of higher education, university
 274-15  system, or an office, department, or division of either.
 274-16        (b)  A full-time salaried employee may not be authorized
 274-17  under this section to work less than 40 hours in a calendar week.
 274-18  (V.A.C.S. Art. 5165a, Sec. 2D.)
 274-19                      CHAPTER 659.  COMPENSATION
 274-20                   SUBCHAPTER A.  GENERAL PROVISIONS
 274-21  Sec. 659.001.  EQUAL WORK, EQUAL PAY
 274-22  Sec. 659.002.  DEDUCTIONS
 274-23           (Sections 659.003-659.010 reserved for expansion)
 274-24                     SUBCHAPTER B.  SALARY AMOUNTS
 274-25  Sec. 659.011.  SALARIES SET IN APPROPRIATIONS ACT
 274-26  Sec. 659.012.  JUDICIAL SALARIES
 274-27  Sec. 659.013.  STATUTORY SALARIES SUSPENDED
  275-1  Sec. 659.014.  SUSPENDED LAWS CONTINUED IN EFFECT
  275-2           (Sections 659.015-659.030 reserved for expansion)
  275-3                 SUBCHAPTER C.  COMPENSATORY PER DIEM
  275-4  Sec. 659.031.  DEFINITION
  275-5  Sec. 659.032.  PER DIEM ENTITLEMENT
  275-6  Sec. 659.033.  STATUTORY PER DIEM SUSPENDED
  275-7           (Sections 659.034-659.040 reserved for expansion)
  275-8                     SUBCHAPTER D.  LONGEVITY PAY
  275-9  Sec. 659.041.  DEFINITIONS
 275-10  Sec. 659.042.  EXCLUSIONS
 275-11  Sec. 659.043.  ENTITLEMENT
 275-12  Sec. 659.044.  AMOUNT
 275-13  Sec. 659.045.  CHANGE IN STATUS
 275-14  Sec. 659.046.  ACCRUAL OF LIFETIME SERVICE CREDIT
 275-15  Sec. 659.047.  COMPTROLLER RULES
 275-16           (Sections 659.048-659.060 reserved for expansion)
 275-17          SUBCHAPTER E.  ADDITIONAL COMPENSATION AND EXPENSES
 275-18  Sec. 659.061.  EXPENSES OF EMPLOYEES INJURED OR KILLED WHILE
 275-19                   ON DUTY
 275-20  Sec. 659.062.  HAZARDOUS DUTY PAY
 275-21           (Sections 659.063-659.080 reserved for expansion)
 275-22            SUBCHAPTER F.  METHOD AND FREQUENCY OF PAYMENT
 275-23  Sec. 659.081.  PAYMENT ONCE A MONTH
 275-24  Sec. 659.082.  PAYMENT TWICE A MONTH
 275-25  Sec. 659.083.  PAYDAY
 275-26  Sec. 659.084.  ELECTRONIC FUNDS TRANSFER
 275-27                      CHAPTER 659.  COMPENSATION
  276-1                   SUBCHAPTER A.  GENERAL PROVISIONS
  276-2        Sec. 659.001.  EQUAL WORK, EQUAL PAY.  A woman who performs
  276-3  public service for this state is entitled to be paid the same
  276-4  compensation for her service as is paid to a man who performs the
  276-5  same kind, grade, and quantity of service, and a distinction in
  276-6  compensation may not be made because of sex.  (V.A.C.S. Art. 6825.)
  276-7        Sec. 659.002.  DEDUCTIONS.  (a)  A state agency may not make
  276-8  a deduction from the compensation paid to an officer or employee
  276-9  whose compensation is paid in full or in part from state funds
 276-10  unless the deduction is authorized by law.
 276-11        (b)  In this section, "state agency" means:
 276-12              (1)  a board, commission, department, office, or other
 276-13  agency that is in the executive branch of state government and that
 276-14  was created by the constitution or a statute of this state,
 276-15  including an institution of higher education as defined by Section
 276-16  61.003, Education Code;
 276-17              (2)  the legislature or a legislative agency; or
 276-18              (3)  the supreme court, the court of criminal appeals,
 276-19  a court of appeals, the state bar, or another state judicial
 276-20  agency.  (V.A.C.S. Art. 6813e.)
 276-21           (Sections 659.003-659.010 reserved for expansion)
 276-22                     SUBCHAPTER B.  SALARY AMOUNTS
 276-23        Sec. 659.011.  SALARIES SET IN APPROPRIATIONS ACT.  The
 276-24  salaries of all state officers and employees are in the amounts
 276-25  provided by the biennial appropriations act.  (V.A.C.S. Arts.
 276-26  6813b, Sec. 1 (part), 6822 (part).)
 276-27        Sec. 659.012.  JUDICIAL SALARIES.  (a)  A justice of a court
  277-1  of appeals other than the chief justice is entitled to an annual
  277-2  salary from the state that is five percent less than the salary
  277-3  provided by the General Appropriations Act for a justice of the
  277-4  supreme court.  The combined salary of a justice of the court of
  277-5  appeals other than the chief justice from all state and county
  277-6  sources may not exceed the amount that is $1,000 less than the
  277-7  salary provided for a justice of the supreme court.
  277-8        (b)  The chief justice of a court of appeals is entitled to
  277-9  an annual salary from the state that is $500 more than the salary
 277-10  provided for the other justices of the court of appeals.  The
 277-11  combined salary of the chief justice of a court of appeals may not
 277-12  exceed the amount that is $500 less than the salary provided for a
 277-13  justice of the supreme court.
 277-14        (c)  A judge of a district court is entitled to an annual
 277-15  salary from the state that is 10 percent less than the salary
 277-16  provided in the General Appropriations Act for a justice of the
 277-17  supreme court.  Unless otherwise provided by law, the combined
 277-18  salary of a district judge from state and county sources may not
 277-19  exceed the amount that is $2,000 less than the salary provided for
 277-20  a justice of the supreme court.  To the extent of any conflict, the
 277-21  salary differential provided by this section for the combined
 277-22  salary of a district judge prevails over any differential set by
 277-23  Chapter 32.
 277-24        (d)  For the purpose of salary payments by the state, the
 277-25  comptroller shall determine from sworn statements filed by the
 277-26  justices of the courts of appeals and district judges that the
 277-27  required salary differentials provided by this section are
  278-1  maintained.  If a salary combined with a county supplement would be
  278-2  in excess of the differential provided by this section, the
  278-3  comptroller shall reduce the state salary by the amount of the
  278-4  excess.  (V.A.C.S. Art. 6813b, Sec. 3.)
  278-5        Sec. 659.013.  STATUTORY SALARIES SUSPENDED.  (a)  Except as
  278-6  provided by this section, a law setting the salary of a state
  278-7  officer or employee is suspended to the extent that the law
  278-8  conflicts with this subchapter.
  278-9        (b)  The suspension does not apply to:
 278-10              (1)  a law specifying or regulating the salary or
 278-11  compensation of an officer or employee for whom the biennial
 278-12  appropriations act does not specify or regulate the salary or
 278-13  compensation; and
 278-14              (2)  Chapter 654.  (V.A.C.S. Arts. 6813b, Secs. 1
 278-15  (part), 2 (part); 6822 (part).)
 278-16        Sec. 659.014.  SUSPENDED LAWS CONTINUED IN EFFECT.  Those
 278-17  laws suspended by the operation of Section 659.013 are continued in
 278-18  effect, although suspended, as those laws existed September 1,
 278-19  1993, including:
 278-20              (1)  Article 6813, Revised Statutes (setting annual
 278-21  salaries for named officers and employees);
 278-22              (2)  Chapter 277, Acts of the 40th Legislature, Regular
 278-23  Session, 1927 (Article 6813a, Vernon's Texas Civil Statutes)
 278-24  (setting and regulating the salary of members of the Railroad
 278-25  Commission of Texas); and
 278-26              (3)  Article 6824, Revised Statutes (prohibiting an
 278-27  increase or decrease of salary during an officer's term of office).
  279-1  (New.)
  279-2           (Sections 659.015-659.030 reserved for expansion)
  279-3                 SUBCHAPTER C.  COMPENSATORY PER DIEM
  279-4        Sec. 659.031.  DEFINITION.  In this subchapter, "state board"
  279-5  means a board, commission, committee, council, or similar agency in
  279-6  the executive or judicial branch of state government that is
  279-7  composed of two or more members.  (V.A.C.S. Art. 6813f, Sec. 1.)
  279-8        Sec. 659.032.  PER DIEM ENTITLEMENT.  (a)  A member of a
  279-9  state board is entitled to a per diem in an amount set by the
 279-10  General Appropriations Act for the member's service on the board.
 279-11        (b)  This section does not apply to a member of the
 279-12  legislature who serves on a board by virtue of the member's office
 279-13  as a legislator.  (V.A.C.S. Art. 6813f, Sec. 2.)
 279-14        Sec. 659.033.  STATUTORY PER DIEM SUSPENDED.  (a)  A law
 279-15  setting the amount of per diem for members of a state board is
 279-16  suspended to the extent of conflict with this subchapter.
 279-17        (b)  The law setting the amount of per diem for a member of a
 279-18  state board is not suspended if the General Appropriations Act does
 279-19  not set the amount of per diem to which the member is entitled.
 279-20        (c)  A law setting a limit on the number of days for which a
 279-21  state board member is entitled to a per diem is not suspended by
 279-22  this subchapter.  (V.A.C.S. Art. 6813f, Sec. 3.)
 279-23           (Sections 659.034-659.040 reserved for expansion)
 279-24                     SUBCHAPTER D.  LONGEVITY PAY
 279-25        Sec. 659.041.  DEFINITIONS.  In this subchapter:
 279-26              (1)  "Full-time state employee" means:
 279-27                    (A)  a state employee who works in the executive
  280-1  or judicial branch of state government and who is normally
  280-2  scheduled to work at least 40 hours a week in one position; or
  280-3                    (B)  a state employee who works in the
  280-4  legislative branch of state government and who is normally
  280-5  scheduled to work a total of 40 or more hours a week in all
  280-6  positions held in the legislative branch.
  280-7              (2)  "Part-time state employee" means a state employee
  280-8  who is not a full-time state employee.
  280-9              (3)  "State employee" means an individual who:
 280-10                    (A)  is covered by Chapter 654;
 280-11                    (B)  holds a line item or exempt position;
 280-12                    (C)  works in a nonacademic position at a state
 280-13  institution of higher education at least 20 hours a week for at
 280-14  least 4.5 consecutive months; or
 280-15                    (D)  is an hourly employee of the state.
 280-16  (V.A.C.S. Art. 6813d-1, Secs. 1(1), (2), (3), (4).)
 280-17        Sec. 659.042.  EXCLUSIONS.  The following are not entitled to
 280-18  longevity pay under this subchapter:
 280-19              (1)  a member of the legislature;
 280-20              (2)  an individual who holds a statewide office that is
 280-21  normally filled by vote of the people;
 280-22              (3)  an independent contractor or an employee of an
 280-23  independent contractor;
 280-24              (4)  a temporary employee;
 280-25              (5)  an officer or employee of a public junior college;
 280-26  or
 280-27              (6)  an academic employee of a state institution of
  281-1  higher education.  (V.A.C.S. Art. 6813d-1, Sec. 1(5).)
  281-2        Sec. 659.043.  ENTITLEMENT.  A state employee is entitled to
  281-3  longevity pay to be included in the employee's monthly compensation
  281-4  if the employee:
  281-5              (1)  is a full-time state employee on the first workday
  281-6  of the month;
  281-7              (2)  is not on leave without pay on the first workday
  281-8  of the month; and
  281-9              (3)  has accrued at least five years of lifetime
 281-10  service credit not later than the last day of the preceding month.
 281-11  (V.A.C.S. Art. 6813d-1, Sec. 2.)
 281-12        Sec. 659.044.  AMOUNT.  (a)  The monthly amount of longevity
 281-13  pay is $4 for each year of lifetime service credit.
 281-14        (b)  The amount increases when the 10th, 15th, 20th, and 25th
 281-15  years of lifetime service credit are accrued.
 281-16        (c)  An increase is effective beginning with the month
 281-17  following the month in which the 10th, 15th, 20th, and 25th years
 281-18  of lifetime service credit are accrued.
 281-19        (d)  An employee may not receive from the state as longevity
 281-20  pay more than $4 for each year of lifetime service credit,
 281-21  regardless of the number of positions the employee holds or the
 281-22  number of hours the employee works each week.  (V.A.C.S. Art.
 281-23  6813d-1, Sec. 3.)
 281-24        Sec. 659.045.  CHANGE IN STATUS.  If a state employee ceases
 281-25  being a full-time state employee after the first workday of a month
 281-26  but otherwise qualifies for longevity pay, the employee's
 281-27  compensation for the month includes full longevity pay.  (V.A.C.S.
  282-1  Art. 6813d-1, Sec. 4.)
  282-2        Sec. 659.046.  ACCRUAL OF LIFETIME SERVICE CREDIT.  (a)  An
  282-3  employee accrues lifetime service credit for the period in which
  282-4  the employee:
  282-5              (1)  serves as a full-time, part-time, or temporary
  282-6  state employee or otherwise serves as an employee of the state;
  282-7              (2)  serves as a member of the legislature;
  282-8              (3)  holds a statewide office that is normally filled
  282-9  by vote of the people; or
 282-10              (4)  serves as an academic employee of a state
 282-11  institution of higher education.
 282-12        (b)  An employee who is on leave without pay for an entire
 282-13  calendar month does not accrue lifetime service credit for the
 282-14  month.  An employee who is on leave without pay for less than an
 282-15  entire calendar month accrues lifetime service credit for the month
 282-16  if the employee otherwise qualifies to accrue credit under
 282-17  Subsection (a).
 282-18        (c)  An employee who simultaneously holds two or more
 282-19  positions that each accrue lifetime service credit accrues credit
 282-20  for only one of the positions.
 282-21        (d)  An employee who begins working on the first workday of a
 282-22  month in a position that accrues lifetime service credit is
 282-23  considered to have begun working on the first day of the month.
 282-24        (e)  An employee does not accrue lifetime service credit for
 282-25  a period in which the employee serves as an officer or employee of
 282-26  a public junior college.  (V.A.C.S. Art. 6813d-1, Sec. 5.)
 282-27        Sec. 659.047.  COMPTROLLER RULES.  The comptroller shall
  283-1  adopt rules to administer this subchapter.  (V.A.C.S. Art. 6813d-1,
  283-2  Sec. 6.)
  283-3           (Sections 659.048-659.060 reserved for expansion)
  283-4          SUBCHAPTER E.  ADDITIONAL COMPENSATION AND EXPENSES
  283-5        Sec. 659.061.  EXPENSES OF EMPLOYEES INJURED OR KILLED WHILE
  283-6  ON DUTY.  In addition to other benefits of employment provided by
  283-7  law, a state agency may, to the extent authorized by an
  283-8  appropriation for the purpose, spend appropriated funds to pay for
  283-9  drugs and medical, hospital, laboratory, and funeral expenses of an
 283-10  employee under the jurisdiction and control of the agency:
 283-11              (1)  who is injured or killed while engaged in the
 283-12  performance of a necessary governmental function assigned to the
 283-13  employee; or
 283-14              (2)  whose duties require the employee to be exposed to
 283-15  unavoidable dangers peculiar to the performance of a necessary
 283-16  governmental function.  (V.A.C.S. Art. 6822a.)
 283-17        Sec. 659.062.  HAZARDOUS DUTY PAY.  (a)  An eligible employee
 283-18  is entitled to hazardous duty pay of $7 a month for each year of
 283-19  service as an employee of this state in a position that requires
 283-20  the performance of hazardous duty, not to exceed 30 years of such
 283-21  service.  Except as provided by Subsection (c), this hazardous duty
 283-22  pay is instead of other hazardous duty or longevity pay.
 283-23        (b)  The following employees are eligible for hazardous duty
 283-24  pay under this section:
 283-25              (1)  commissioned law enforcement personnel of the
 283-26  Department of Public Safety;
 283-27              (2)  commissioned law enforcement personnel of the
  284-1  General Services Commission;
  284-2              (3)  a commissioned security officer of the state
  284-3  treasury;
  284-4              (4)  commissioned law enforcement personnel of the
  284-5  Texas Alcoholic Beverage Commission;
  284-6              (5)  a law enforcement officer commissioned by the
  284-7  Parks and Wildlife Commission;
  284-8              (6)  a commissioned peace officer of a state
  284-9  institution of higher education;
 284-10              (7)  commissioned law enforcement personnel of the
 284-11  institutional division of the Texas Department of Criminal Justice;
 284-12              (8)  an employee or official of the Board of Pardons
 284-13  and Paroles or the pardons and paroles division of the Texas
 284-14  Department of Criminal Justice who has routine direct contact with
 284-15  inmates of any penal or correctional institution or with
 284-16  administratively released prisoners subject to the board's
 284-17  jurisdiction; and
 284-18              (9)  an employee certified to the Employees Retirement
 284-19  System of Texas under Section 815.505 as having performed as a law
 284-20  enforcement officer or custodial officer during a fiscal year.
 284-21        (c)  A state employee who has received longevity pay under
 284-22  Subchapter D for service in a position that does not require the
 284-23  performance of hazardous duty and who transfers to a position for
 284-24  which the employee is eligible to receive hazardous duty pay is
 284-25  entitled to continue to receive longevity pay for the years of
 284-26  service to the state performed in the prior position.  The employee
 284-27  is not entitled to additional longevity pay for the period in which
  285-1  the employee receives hazardous duty pay, but that period is
  285-2  included in computing the employee's total years of service as an
  285-3  employee of the state.
  285-4        (d)  A state employee who, after performance in a position
  285-5  that requires the performance of hazardous duty, transfers to a
  285-6  position that does not require the performance of hazardous duty is
  285-7  not entitled to a continuation of the hazardous duty pay earned in
  285-8  the prior position but is entitled to longevity pay for each year
  285-9  of service as an employee of the state, including the years of
 285-10  service in a position for which the employee was entitled to
 285-11  hazardous duty pay.  (V.A.C.S. Art. 6252-20b.)
 285-12           (Sections 659.063-659.080 reserved for expansion)
 285-13            SUBCHAPTER F.  METHOD AND FREQUENCY OF PAYMENT
 285-14        Sec. 659.081.  PAYMENT ONCE A MONTH.  Except as provided by
 285-15  this subchapter, annual salaries for state officers and employees
 285-16  shall be paid once a month.  (V.A.C.S. Art. 6826, Sec. 1 (part).)
 285-17        Sec. 659.082.  PAYMENT TWICE A MONTH.  An employee is
 285-18  entitled to be paid employment compensation twice a month if:
 285-19              (1)  the employee is employed by:
 285-20                    (A)  the Texas Department of Mental Health and
 285-21  Mental Retardation;
 285-22                    (B)  the Texas Department of Transportation;
 285-23                    (C)  the Texas Department of Human Services;
 285-24                    (D)  the Texas Employment Commission; or
 285-25                    (E)  any other state agency designated by the
 285-26  comptroller;
 285-27              (2)  the employee holds a classified position under the
  286-1  state's position classification plan;
  286-2              (3)  the employee's position is classified below salary
  286-3  group 12 under the classification salary schedule in the General
  286-4  Appropriations Act;
  286-5              (4)  the employing state agency satisfies the
  286-6  comptroller's requirements relating to the payment of compensation
  286-7  twice a month; and
  286-8              (5)  at least 30 percent of the eligible employees of
  286-9  the agency choose to be paid twice a month.  (V.A.C.S. Art. 6826,
 286-10  Sec. 2.)
 286-11        Sec. 659.083.  PAYDAY.  (a)  Except as provided by Subsection
 286-12  (b), the treasurer may not pay the salary of a state officer or
 286-13  employee before the first working day of the month following the
 286-14  payroll period.
 286-15        (b)  The treasurer shall pay an employee who is paid twice a
 286-16  month under Section 659.082 on:
 286-17              (1)  the first working day of the month following the
 286-18  payroll period that covers the last half of the preceding month;
 286-19  and
 286-20              (2)  the 15th day of the month or the first working day
 286-21  after the 15th for the payroll period that covers the first half of
 286-22  the month.
 286-23        (c)  In this section, "working day" means a day other than
 286-24  Saturday, Sunday, a national holiday, or a state holiday as listed
 286-25  in the General Appropriations Act or Chapter 662.  A day does not
 286-26  cease to be a holiday because a state agency maintains or is
 286-27  required to maintain a minimum working staff on the holiday.
  287-1  (V.A.C.S. Art. 6826, Sec. 3.)
  287-2        Sec. 659.084.  ELECTRONIC FUNDS TRANSFER.  Salaries for state
  287-3  officers and employees paid once a month shall be paid through
  287-4  electronic funds transfer under Section 403.016 unless paid on
  287-5  warrant as permitted under that section.  (V.A.C.S. Art. 6826, Sec.
  287-6  1 (part).)
  287-7                     CHAPTER 660.  TRAVEL EXPENSES
  287-8                   SUBCHAPTER A.  GENERAL PROVISIONS
  287-9  Sec. 660.001.  SHORT TITLE
 287-10  Sec. 660.002.  DEFINITIONS
 287-11  Sec. 660.003.  APPLICABILITY
 287-12  Sec. 660.004.  EXPENSES INCURRED BY OFFICIALS OR EMPLOYEES OF
 287-13                   INSTITUTIONS OF HIGHER EDUCATION
 287-14  Sec. 660.005.  TRAVEL BY PUBLIC CONVEYANCE
 287-15           (Sections 660.006-660.020 reserved for expansion)
 287-16               SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
 287-17  Sec. 660.021.  RULES
 287-18  Sec. 660.022.  APPROVAL OF RULES BY ATTORNEY GENERAL
 287-19  Sec. 660.023.  FILING OF RULES
 287-20  Sec. 660.024.  ADVANCE APPROVAL FOR CERTAIN INTERNATIONAL
 287-21                   TRAVEL
 287-22  Sec. 660.025.  ADVANCE PAYMENT PROCEDURE
 287-23  Sec. 660.026.  REVOLVING PETTY CASH FUND
 287-24           (Sections 660.027-660.040 reserved for expansion)
 287-25                    SUBCHAPTER C.  TRAVEL EXPENSES
 287-26  Sec. 660.041.  TRAVEL EXPENSE FORM
 287-27  Sec. 660.042.  USE OF TRAVEL EXPENSE FORM
  288-1  Sec. 660.043.  AMOUNT OF REIMBURSEMENT OR ADVANCE
  288-2  Sec. 660.044.  RATE OF AND METHOD OF COMPUTING PER DIEM AND
  288-3                   TRANSPORTATION ALLOWANCE
  288-4  Sec. 660.045.  PROHIBITION APPLICABLE TO PER DIEM ALLOWANCE
  288-5  Sec. 660.046.  APPROVAL AND PAYMENT OF CLAIM
  288-6  Sec. 660.047.  PROHIBITION APPLICABLE TO ACCEPTANCE OF MONEY
  288-7                   FROM CERTAIN PERSONS
  288-8  Sec. 660.048.  OVERPAYMENT
  288-9  Sec. 660.049.  PROHIBITION APPLICABLE TO TRAVEL COMPENSATION BY
 288-10                   OTHER PERSONS
 288-11  Sec. 660.050.  LOCAL TRANSPORTATION ALLOWANCE
 288-12  Sec. 660.051.  COURTESY CARD
 288-13  Sec. 660.052.  DETERMINATION OF MILEAGE FOR TRAVEL BY PRIVATELY
 288-14                   OWNED CONVEYANCE
 288-15  Sec. 660.053.  DETERMINATION OF MILEAGE FOR TRAVEL BY PERSONAL
 288-16                   CAR
 288-17  Sec. 660.054.  MULTIPLE USE OF SINGLE PRIVATELY OWNED CONVEYANCE
 288-18                   BY STATE EMPLOYEES
 288-19  Sec. 660.055.  MULTIPLE USE OF SINGLE PRIVATELY OWNED CAR
 288-20                     CHAPTER 660.  TRAVEL EXPENSES
 288-21                   SUBCHAPTER A.  GENERAL PROVISIONS
 288-22        Sec. 660.001.  SHORT TITLE.  This chapter may be cited as the
 288-23  Travel Regulations Act.  (V.A.C.S. Art. 6823a, Sec. 1.)
 288-24        Sec. 660.002.  DEFINITIONS.  In this chapter:
 288-25              (1)  "Chief administrator of a state agency" means:
 288-26                    (A)  an elected state official, excluding a
 288-27  member of the legislature;
  289-1                    (B)  an appointed state official, including an
  289-2  official whose appointment is subject to senate confirmation;
  289-3                    (C)  the director of a legislative interim
  289-4  committee or board;
  289-5                    (D)  the chief administrator of a state hospital
  289-6  or special school; and
  289-7                    (E)  the chief administrator of a state
  289-8  institution of higher education.
  289-9              (2)  "Per diem allowance" means a flat daily rate that
 289-10  is paid instead of actual expenses for meals and lodging and is
 289-11  compensation for official travel purposes only.  (V.A.C.S. Art.
 289-12  6823a, Secs. 2 (part), 3.a (part).)
 289-13        Sec. 660.003.  APPLICABILITY.  This chapter applies to:
 289-14              (1)  a state officer;
 289-15              (2)  a chief administrator of a state agency;
 289-16              (3)  a state employee; and
 289-17              (4)  a prospective state employee who incurs expenses
 289-18  when required to visit a state agency, department, or institution
 289-19  of higher education for an employment interview and evaluation.
 289-20  (V.A.C.S. Art. 6823a, Sec. 2 (part).)
 289-21        Sec. 660.004.  EXPENSES INCURRED BY OFFICIALS OR EMPLOYEES OF
 289-22  INSTITUTIONS OF HIGHER EDUCATION.  (a)  This chapter does not apply
 289-23  to the reimbursement for travel expenses that are:
 289-24              (1)  incurred by an official or employee of the
 289-25  athletic department of an institution of higher education;
 289-26              (2)  paid an official or employee of an institution of
 289-27  higher education from a gift or bequest; or
  290-1              (3)  paid or reimbursed to an institution of higher
  290-2  education for travel by an officer or employee of the institution
  290-3  under a contract between the institution and the federal government
  290-4  or another contracting agency.
  290-5        (b)  The governing board of each institution of higher
  290-6  education shall adopt necessary rules for the administration and
  290-7  control of travel by an official or employee exempted by this
  290-8  section.  (V.A.C.S. Art. 6823a, Sec. 11.)
  290-9        Sec. 660.005.  TRAVEL BY PUBLIC CONVEYANCE.  This chapter
 290-10  does not prohibit the reimbursement of a claim, or a request for an
 290-11  advance payment, by a state officer or employee for using a public
 290-12  conveyance.   (V.A.C.S. Art. 6823a, Sec. 10 (part).)
 290-13           (Sections 660.006-660.020 reserved for expansion)
 290-14               SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
 290-15        Sec. 660.021.  RULES.  The comptroller shall adopt rules to
 290-16  administer the travel regulations of this chapter and of the
 290-17  General Appropriations Act.  (V.A.C.S. Art. 6823a, Sec. 6(a)
 290-18  (part).)
 290-19        Sec. 660.022.  APPROVAL OF RULES BY ATTORNEY GENERAL.  A rule
 290-20  adopted by the comptroller under this chapter is subject to final
 290-21  approval of the attorney general.  (V.A.C.S. Art. 6823a, Sec. 6(a)
 290-22  (part).)
 290-23        Sec. 660.023.  FILING OF RULES.  Official copies of rules,
 290-24  including administrative policies or interpretations of the rules,
 290-25  shall be filed with the secretary of state after approval of the
 290-26  rules by the attorney general.  (V.A.C.S. Art. 6823a, Sec. 6(a)
 290-27  (part).)
  291-1        Sec. 660.024.  ADVANCE APPROVAL FOR CERTAIN INTERNATIONAL
  291-2  TRAVEL.  (a)  Travel related to official state business for which a
  291-3  reimbursement for travel expenses is claimed or for which an
  291-4  advance for travel expenses to be incurred is sought must have the
  291-5  advance written approval of the governor.
  291-6        (b)  Subsection (a) does not apply to travel:
  291-7              (1)  in this state; or
  291-8              (2)  to, in, and from another state, Mexico, or Canada.
  291-9        (c)  The governor may give blanket authority for travel by:
 291-10              (1)  personnel of the International Trade Commission of
 291-11  the Texas Department of Commerce; and
 291-12              (2)  law enforcement personnel of the Department of
 291-13  Public Safety.  (V.A.C.S. Art. 6823a, Sec. 5.)
 291-14        Sec. 660.025.  ADVANCE PAYMENT PROCEDURE.  (a)  The
 291-15  comptroller by rule shall establish a procedure by which a state
 291-16  officer or employee may receive an advance payment for projected
 291-17  travel expenses for a particular exercise of official duty.
 291-18        (b)  The comptroller shall require a final accounting after
 291-19  actual travel expense has been determined to provide for any
 291-20  necessary reimbursement or adjustment to reconcile an advance and
 291-21  the actual expense incurred.  (V.A.C.S. Art. 6823a, Sec. 6.g.)
 291-22        Sec. 660.026.  REVOLVING PETTY CASH FUND.  (a)  A state
 291-23  agency, board, commission, department, or institution may establish
 291-24  from money in the state treasury or from local funds a revolving
 291-25  petty cash fund to be used only to advance projected travel
 291-26  expenses in accordance with Section 660.025.
 291-27        (b)  The revolving petty cash fund shall be reimbursed by:
  292-1              (1)  warrants drawn and approved by the comptroller
  292-2  from money in the state treasury; or
  292-3              (2)  checks drawn against money held outside the state
  292-4  treasury.  (V.A.C.S. Art. 6823a, Sec. 3.c.)
  292-5           (Sections 660.027-660.040 reserved for expansion)
  292-6                    SUBCHAPTER C.  TRAVEL EXPENSES
  292-7        Sec. 660.041.  TRAVEL EXPENSE FORM.  The comptroller shall
  292-8  prescribe the form on which a travel expense is to be submitted.
  292-9  (V.A.C.S. Art. 6823a, Sec. 6(a) (part).)
 292-10        Sec. 660.042.  USE OF TRAVEL EXPENSE FORM.  (a)  A state
 292-11  agency shall use the standard travel expense form prescribed by the
 292-12  comptroller in preparing an expense account for a traveling state
 292-13  employee.
 292-14        (b)  The travel expense form must state:
 292-15              (1)  the point of origin and the point of destination
 292-16  for each trip;
 292-17              (2)  the reimbursable mileage, including intra-city
 292-18  mileage, that is traveled or projected between each point;
 292-19              (3)  the time that the employee is away, or plans to be
 292-20  away, from designated headquarters for which the employee is, or
 292-21  will be, entitled to travel expenses; and
 292-22              (4)  briefly and clearly the purpose of the trip and
 292-23  the character of official business performed or to be performed.
 292-24  (V.A.C.S. Art. 6823a, Sec. 6.b.)
 292-25        Sec. 660.043.  AMOUNT OF REIMBURSEMENT OR ADVANCE.  A
 292-26  reimbursement or advance from money appropriated by the legislature
 292-27  for travel and other necessary expenses incurred by a state
  293-1  officer, chief administrator of a state agency, or a state employee
  293-2  in the active discharge of the person's duties is in the amount
  293-3  provided by the General Appropriations Act as a per diem or actual
  293-4  expenses as provided by the General Appropriations Act.  (V.A.C.S.
  293-5  Arts. 6813c; 6823a, Sec. 3.a (part).)
  293-6        Sec. 660.044.  RATE OF AND METHOD OF COMPUTING PER DIEM AND
  293-7  TRANSPORTATION ALLOWANCE.  The rate of and method of computing a
  293-8  per diem or transportation allowance are those provided by the
  293-9  General Appropriations Act.  (V.A.C.S. Art. 6823a, Sec. 3.b.)
 293-10        Sec. 660.045.  PROHIBITION APPLICABLE TO PER DIEM ALLOWANCE.
 293-11  (a)  A state employee may not receive a per diem allowance or a
 293-12  partial per diem allowance provided by the General Appropriations
 293-13  Act for time during which the employee is:
 293-14              (1)  at the employee's official designated
 293-15  headquarters;
 293-16              (2)  absent from the employee's place of employment for
 293-17  a reason not connected with the duties of the employee's agency,
 293-18  including absence for a personal reason; or
 293-19              (3)  away from the employee's designated headquarters
 293-20  for less than six consecutive hours.
 293-21        (b)  A state employee who leaves the employee's place of
 293-22  employment for a reason not related to the duties of the employee's
 293-23  agency shall clearly indicate on the required travel expense form
 293-24  the absence and the hour and date of departure from and return to
 293-25  the employee's place of employment.  (V.A.C.S. Art. 6823a, Sec. 9.)
 293-26        Sec. 660.046.  APPROVAL AND PAYMENT OF CLAIM.  (a)  The
 293-27  comptroller shall approve or disapprove a claim for travel expense.
  294-1        (b)  The comptroller shall issue a warrant for payment of an
  294-2  approved claim for travel expense.  (V.A.C.S. Art. 6823a, Sec. 6(a)
  294-3  (part).)
  294-4        Sec. 660.047.  PROHIBITION APPLICABLE TO ACCEPTANCE OF MONEY
  294-5  FROM CERTAIN PERSONS.  (a)  A state officer or employee who is
  294-6  traveling to perform an official duty may not accept money for
  294-7  wages or expenses from a person who is, or who may be, audited,
  294-8  examined, inspected, or investigated by the state.
  294-9        (b)  A state officer or employee who is traveling to perform
 294-10  an official duty may receive travel expenses only from amounts
 294-11  appropriated by the General Appropriations Act.
 294-12        (c)  The comptroller may not pay the salary of a state
 294-13  employee who violates this section.  (V.A.C.S. Art. 6823a, Sec. 4.)
 294-14        Sec. 660.048.  OVERPAYMENT.  A state officer or employee who
 294-15  receives an overpayment for a travel expense from money
 294-16  appropriated by the General Appropriations Act shall reimburse the
 294-17  state for the overpayment.  (V.A.C.S. Art. 6823a, Sec. 6.f.)
 294-18        Sec. 660.049.  PROHIBITION APPLICABLE TO TRAVEL COMPENSATION
 294-19  BY OTHER PERSONS.  (a)  A state officer or employee may not receive
 294-20  a double travel expense payment.
 294-21        (b)  A state employee who is to be compensated for travel
 294-22  expenses from a person other than a state agency may not seek an
 294-23  advance payment or receive a reimbursement for the travel from
 294-24  money authorized by the General Appropriations Act.  (V.A.C.S. Art.
 294-25  6823a, Sec. 7.)
 294-26        Sec. 660.050.  LOCAL TRANSPORTATION ALLOWANCE.  (a)  A state
 294-27  employee whose duties customarily require travel within the
  295-1  employee's designated headquarters may be paid a local
  295-2  transportation allowance for the travel.
  295-3        (b)  The allowance may not exceed the transportation
  295-4  allowance for use of a privately owned automobile under the General
  295-5  Appropriations Act.
  295-6        (c)  Notwithstanding the General Appropriations Act, a state
  295-7  employee with a physical disability that precludes the personal
  295-8  operation of a privately owned automobile may receive a reasonable
  295-9  local transportation allowance not to exceed the amount to which
 295-10  the employee would be entitled for similar travel outside the
 295-11  employee's designated headquarters.  (V.A.C.S. Art. 6823a, Sec. 8.)
 295-12        Sec. 660.051.  COURTESY CARD.  A state officer or employee
 295-13  may use a courtesy card for travel by air, rail, or bus.  (V.A.C.S.
 295-14  Art. 6823a, Sec. 10 (part).)
 295-15        Sec. 660.052.  DETERMINATION OF MILEAGE FOR TRAVEL BY
 295-16  PRIVATELY OWNED CONVEYANCE.  The comptroller shall determine
 295-17  mileage for the purpose of a reimbursement or advance payment for
 295-18  travel by a privately owned conveyance by:
 295-19              (1)  computing the shortest highway distance between
 295-20  the point of origin and the destination using intermediate points
 295-21  at which official state business is conducted; and
 295-22              (2)  adding other necessary mileage at points at which
 295-23  official state business is conducted.  (V.A.C.S. Art. 6823a, Sec.
 295-24  6.c (part).)
 295-25        Sec. 660.053.  DETERMINATION OF MILEAGE FOR TRAVEL BY
 295-26  PERSONAL CAR.  In determining the amount of a reimbursement or
 295-27  advance payment for travel by privately owned car in the state, the
  296-1  comptroller shall:
  296-2              (1)  compute all distances according to the shortest
  296-3  route between points;
  296-4              (2)  adopt a mileage guide that includes a chart of
  296-5  distances showing the shortest route between points in the state,
  296-6  including any farm-to-market road; and
  296-7              (3)  annually reissue the mileage guide.  (V.A.C.S.
  296-8  Art. 6823a, Sec. 6.c (part).)
  296-9        Sec. 660.054.  MULTIPLE USE OF SINGLE PRIVATELY OWNED
 296-10  CONVEYANCE BY STATE EMPLOYEES.  (a)  If two or more state employees
 296-11  travel in a single privately owned conveyance, only one employee
 296-12  may receive a transportation allowance.
 296-13        (b)  This section does not prohibit each state employee
 296-14  traveling in a privately owned conveyance from receiving a per diem
 296-15  allowance.  (V.A.C.S. Art. 6823a, Sec. 6.d.)
 296-16        Sec. 660.055.  MULTIPLE USE OF SINGLE PRIVATELY OWNED CAR.
 296-17  (a)  If two, three, or four state officers or employees travel in a
 296-18  privately owned car, only one reimbursement or advance payment for
 296-19  the car's mileage may be claimed and allowed.
 296-20        (b)  The comptroller shall consider the travel claims of the
 296-21  officers and employees as multiple claims and may pay only one
 296-22  claim to the extent of mileage claimed.
 296-23        (c)  If more than four employees travel in more than one car,
 296-24  full mileage is allowed for one car for each four employees and for
 296-25  any fraction in excess of a multiple of four employees.
 296-26        (d)  A state officer or employee must obtain the advance
 296-27  approval of the chief administrator of the officer's or employee's
  297-1  state agency if it is not feasible for the officer or employee to
  297-2  travel in the same car.  Approval under this subsection authorizes
  297-3  reimbursement or advance payment for travel by the officer or
  297-4  employee using the officer's or employee's privately owned car.
  297-5        (e)  This section applies only to state officers or employees
  297-6  who:
  297-7              (1)  are employed by the same state agency;
  297-8              (2)  are required to travel on the same official state
  297-9  business;
 297-10              (3)  have the same itinerary; and
 297-11              (4)  travel on the same dates.  (V.A.C.S. Art. 6823a,
 297-12  Sec. 6.e.)
 297-13                          CHAPTER 661.  LEAVE
 297-14             SUBCHAPTER A.  STATE EMPLOYEE SICK LEAVE POOL
 297-15  Sec. 661.001.  DEFINITIONS
 297-16  Sec. 661.002.  SICK LEAVE POOL
 297-17  Sec. 661.003.  CONTRIBUTION TO POOL
 297-18  Sec. 661.004.  USE OF TIME IN POOL
 297-19  Sec. 661.005.  WITHDRAWAL OF TIME FROM POOL
 297-20  Sec. 661.006.  LIMITATION ON WITHDRAWALS
 297-21  Sec. 661.007.  EQUAL TREATMENT
 297-22  Sec. 661.008.  NO ENTITLEMENT TO ESTATE
 297-23           (Sections 661.009-661.030 reserved for expansion)
 297-24     SUBCHAPTER B.  PAYMENT FOR VACATION AND SICK LEAVE TO ESTATES
 297-25                      OF DECEASED STATE EMPLOYEES
 297-26  Sec. 661.031.  DEFINITIONS
 297-27  Sec. 661.032.  APPLICABILITY OF SUBCHAPTER
  298-1  Sec. 661.033.  PAYMENT FOR VACATION AND SICK LEAVE
  298-2  Sec. 661.034.  COMPUTATION OF PAYMENT
  298-3  Sec. 661.035.  COMPUTATION OF TOTAL ACCUMULATED LEAVE;
  298-4                   HOLIDAY TIME
  298-5  Sec. 661.036.  PAYMENT CHARGED TO CERTAIN FISCAL YEAR
  298-6  Sec. 661.037.  PAYMENT WITH FUNDS APPROPRIATED FOR SALARIES
  298-7           (Sections 661.038-661.060 reserved for expansion)
  298-8    SUBCHAPTER C.  PAYMENT FOR VACATION TIME TO STATE EMPLOYEES WHO
  298-9                    SEPARATE FROM STATE EMPLOYMENT
 298-10  Sec. 661.061.  DEFINITIONS
 298-11  Sec. 661.062.  ENTITLEMENT TO PAYMENT FOR VACATION TIME
 298-12  Sec. 661.063.  COMPUTATION OF PAYMENT
 298-13  Sec. 661.064.  COMPUTATION OF TOTAL ACCUMULATED LEAVE;
 298-14                   HOLIDAY TIME
 298-15  Sec. 661.065.  LUMP-SUM PAYMENT
 298-16  Sec. 661.066.  PAYMENT CHARGED TO CERTAIN FISCAL YEAR
 298-17  Sec. 661.067.  AGREEMENT FOR STATE EMPLOYEE TO REMAIN ON
 298-18                   AGENCY PAYROLL
 298-19           (Sections 661.068-661.090 reserved for expansion)
 298-20       SUBCHAPTER D.  PAYMENTS FOR VACATION TIME TO CONTRIBUTING
 298-21           MEMBERS OF EMPLOYEES RETIREMENT SYSTEM WHO RETIRE
 298-22  Sec. 661.091.  PAYMENT FOR VACATION TIME ON RETIREMENT
 298-23  Sec. 661.092.  COMPUTATION OF PAYMENT
 298-24  Sec. 661.093.  CONFLICT WITH OTHER SUBCHAPTER
 298-25           (Sections 661.094-661.120 reserved for expansion)
 298-26      SUBCHAPTER E.  VACATION FOR HOURLY AND DAILY STATE EMPLOYEE
 298-27  Sec. 661.121.  VACATION FOR HOURLY OR DAILY EMPLOYEE
  299-1                          CHAPTER 661.  LEAVE
  299-2             SUBCHAPTER A.  STATE EMPLOYEE SICK LEAVE POOL
  299-3        Sec. 661.001.  DEFINITIONS.  In this subchapter:
  299-4              (1)  "Employee" means an individual, other than a state
  299-5  officer, employed by a state agency.
  299-6              (2)  "Executive director" means the individual
  299-7  appointed by the governing body of a state agency as chief
  299-8  administrative officer of the agency, and includes the chancellor
  299-9  or highest executive officer of a university system and the
 299-10  president of a public senior college or university as defined by
 299-11  Section 61.003, Education Code.
 299-12              (3)  "Pool administrator" means the individual
 299-13  appointed by the governing body of a state agency to administer the
 299-14  agency's sick leave pool.
 299-15              (4)  "State agency" means:
 299-16                    (A)  a board, commission, department, or other
 299-17  agency in the executive branch of state government created by the
 299-18  constitution or a statute of the state;
 299-19                    (B)  an institution of higher education as
 299-20  defined by Section 61.003, Education Code;
 299-21                    (C)  a river authority;
 299-22                    (D)  a legislative agency, but not either house
 299-23  or a member of the legislature; or
 299-24                    (E)  the supreme court, the court of criminal
 299-25  appeals, a court of appeals, or a state judicial agency.
 299-26              (5)  "State officer" means an elected or appointed
 299-27  officer of a state agency or an executive director.  (V.A.C.S. Art.
  300-1  6252-8e, Sec. 1.)
  300-2        Sec. 661.002.  SICK LEAVE POOL.  (a)  The governing body of a
  300-3  state agency shall, through the establishment of a program, allow
  300-4  an agency employee to voluntarily transfer to a sick leave pool
  300-5  sick leave earned by the employee.
  300-6        (b)  The executive director of the agency or another
  300-7  individual appointed by the governing body shall administer the
  300-8  sick leave pool.
  300-9        (c)  The governing body of the state agency shall adopt rules
 300-10  and prescribe procedures relating to the operation of the agency
 300-11  sick leave pool.  (V.A.C.S. Art. 6252-8e, Secs. 3(a), (b).)
 300-12        Sec. 661.003.  CONTRIBUTION TO POOL.  (a)  To contribute to
 300-13  the sick leave pool, an employee must apply to the pool
 300-14  administrator in the manner prescribed by the governing body of the
 300-15  state agency.
 300-16        (b)  On approval by the pool administrator, an employee may
 300-17  contribute in a fiscal year at least one but not more than three
 300-18  days of the employee's accrued sick leave.
 300-19        (c)  The pool administrator shall credit the sick leave pool
 300-20  with the amount of time contributed by an employee and deduct a
 300-21  corresponding amount of time from the  employee's earned sick leave
 300-22  as if the employee had used the time for personal purposes.
 300-23  (V.A.C.S. Art. 6252-8e, Sec. 5.)
 300-24        Sec. 661.004.  USE OF TIME IN POOL.  (a)  An employee is
 300-25  eligible to use time contributed to the sick leave pool of the
 300-26  agency if the employee has exhausted the employee's sick leave
 300-27  because of:
  301-1              (1)  a catastrophic illness or injury; or
  301-2              (2)  a previous donation of time to the pool.
  301-3        (b)  The trustee of the state employee uniform group
  301-4  insurance benefits program established under the Texas Employees
  301-5  Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
  301-6  Texas Insurance Code), shall:
  301-7              (1)  classify, for the purposes of this subchapter,
  301-8  those injuries and illnesses that are catastrophic; and
  301-9              (2)  provide a written statement of the classification
 301-10  to the governing body of each state agency.  (V.A.C.S. Art.
 301-11  6252-8e, Secs. 2(b), 3(c), 4.)
 301-12        Sec. 661.005.  WITHDRAWAL OF TIME FROM POOL.  (a)  An
 301-13  employee may apply to the pool administrator for permission to
 301-14  withdraw time from the sick leave pool.
 301-15        (b)  If the pool administrator determines that the employee
 301-16  is eligible, the administrator shall:
 301-17              (1)  approve the transfer of time from the pool to the
 301-18  employee; and
 301-19              (2)  credit the time to the employee.  (V.A.C.S. Art.
 301-20  6252-8e, Sec. 6(a) (part).)
 301-21        Sec. 661.006.  LIMITATION ON WITHDRAWALS.  (a)  An employee
 301-22  may not withdraw time from the sick leave pool in an amount that
 301-23  exceeds the lesser of:
 301-24              (1)  one-third of the total time in the pool; or
 301-25              (2)  90 days.
 301-26        (b)  The pool administrator shall determine the amount of
 301-27  time that an employee may withdraw from the pool.  (V.A.C.S. Art.
  302-1  6252-8e, Sec. 6(b).)
  302-2        Sec. 661.007.  EQUAL TREATMENT.  An employee absent on time
  302-3  withdrawn from the sick leave pool may use the time as sick leave
  302-4  earned by the employee, and the employee is treated for all
  302-5  purposes as if the employee were absent on earned sick leave.
  302-6  (V.A.C.S. Art. 6252-8e, Secs. 6(a) (part), 7.)
  302-7        Sec. 661.008.  NO ENTITLEMENT TO ESTATE.  The estate of a
  302-8  deceased employee is not entitled to payment for unused time
  302-9  withdrawn by the employee from the sick leave pool.  (V.A.C.S. Art.
 302-10  6252-8e, Sec. 8.)
 302-11           (Sections 661.009-661.030 reserved for expansion)
 302-12     SUBCHAPTER B.  PAYMENT FOR VACATION AND SICK LEAVE TO ESTATES
 302-13                      OF DECEASED STATE EMPLOYEES
 302-14        Sec. 661.031.  DEFINITIONS.  In this subchapter:
 302-15              (1)  "National holiday" includes only those days listed
 302-16  under Section 662.003(a).
 302-17              (2)  "State employee" means an individual who is an
 302-18  appointed officer or employee of a state agency and who normally
 302-19  works 900 hours or more a year.  The term includes:
 302-20                    (A)  an hourly employee;
 302-21                    (B)  a temporary employee;
 302-22                    (C)  a person employed by:
 302-23                          (i)  the Teacher Retirement System;
 302-24                          (ii)  the Central Education Agency;
 302-25                          (iii)  the Texas Higher Education
 302-26  Coordinating Board;
 302-27                          (iv)  the Texas National Research
  303-1  Laboratory Commission;
  303-2                          (v)  the Texas School for the Blind and
  303-3  Visually Impaired;
  303-4                          (vi)  the Texas School for the Deaf;
  303-5                          (vii)  the Texas Youth Commission;
  303-6                          (viii)  the Windham School District of the
  303-7  Texas Department of Criminal Justice; or
  303-8                          (ix)  the Texas Rehabilitation Commission;
  303-9  and
 303-10                    (D)  a classified, administrative, faculty, or
 303-11  professional employee of a state institution or agency of higher
 303-12  education who has accumulated vacation leave, sick leave, or both,
 303-13  during the employment.
 303-14              (3)  "State holiday" includes only those days listed
 303-15  under Section 662.003(b).
 303-16              (4)  "Workday" includes a state or national holiday.
 303-17  (V.A.C.S. Art. 6252-8a, Secs. 1(a), (c); 2(e).)
 303-18        Sec. 661.032.  APPLICABILITY OF SUBCHAPTER.  (a)  This
 303-19  subchapter applies only to a state employee who, at any time during
 303-20  the employee's lifetime, has accrued six months of continuous state
 303-21  employment.  State employment is continuous while the employee is
 303-22  entitled to be paid a regular salary, except that the continuity of
 303-23  state employment is not interrupted while the employee is on a
 303-24  leave of absence without pay for less than one calendar month.
 303-25        (b)  The estates of the following are not entitled to
 303-26  payments under this subchapter:
 303-27              (1)  an individual employed on a piecework basis;
  304-1              (2)  an individual who holds an office that is normally
  304-2  filled by vote of the people;
  304-3              (3)  an independent contractor or an employee of an
  304-4  independent contractor;
  304-5              (4)  an operator of equipment or a driver of a team
  304-6  whose wages are included in the rental paid by a state agency to
  304-7  the owner of the equipment or team; or
  304-8              (5)  an individual covered by:
  304-9                    (A)  the Judicial Retirement System of Texas Plan
 304-10  One;
 304-11                    (B)  the Judicial Retirement System of Texas Plan
 304-12  Two; or
 304-13                    (C)  the Teacher Retirement System of Texas,
 304-14  other than an individual described by Section 661.031(2)(C).
 304-15  (V.A.C.S. Art. 6252-8a, Secs. 1(b) (part); 3A(a), (b), (c).)
 304-16        Sec. 661.033.  PAYMENT FOR VACATION AND SICK LEAVE.  (a)
 304-17  When a state employee dies, the state shall pay the employee's
 304-18  estate for the balances of the employee's:
 304-19              (1)  vacation leave; and
 304-20              (2)  sick leave.
 304-21        (b)  Payment under this section shall comply with any limits
 304-22  in the General Appropriations Act, except as provided by Subsection
 304-23  (c).
 304-24        (c)  Payment under this section may not be for more than:
 304-25              (1)  all of the state employee's accumulated vacation
 304-26  leave; and
 304-27              (2)  one-half of the state employee's accumulated sick
  305-1  leave.  (V.A.C.S. Art. 6252-8a, Sec. 2(a).)
  305-2        Sec. 661.034.  COMPUTATION OF PAYMENT.  (a)  The payment to
  305-3  the estate of the deceased state employee shall be computed by
  305-4  multiplying the employee's hourly rate of compensation at the time
  305-5  of death by the total number of leave hours determined under
  305-6  Section 661.035.
  305-7        (b)  Under this section, rate of compensation:
  305-8              (1)  includes an emolument in lieu of base pay for
  305-9  which the state employee was eligible on the last day of
 305-10  employment; and
 305-11              (2)  does not include longevity or hazardous duty pay.
 305-12  (V.A.C.S. Art. 6252-8a, Sec. 2(b).)
 305-13        Sec. 661.035.  COMPUTATION OF TOTAL ACCUMULATED LEAVE;
 305-14  HOLIDAY TIME.  (a)  For a state employee who at the time of death
 305-15  is normally scheduled to work at least 40 hours a week, eight hours
 305-16  is to be added to the employee's sick and vacation leave under
 305-17  Section 661.034 for each state or national holiday that is
 305-18  scheduled to fall within the period after the date of death and
 305-19  during which the employee could have used leave.  To determine the
 305-20  period during which leave could have been used and the number of
 305-21  state or national holidays, the employee's leave is allocated over
 305-22  the workdays after the employee's death and eight hours is added as
 305-23  a state or national holiday occurs during the period.
 305-24        (b)  For a state employee who at the time of death is
 305-25  normally scheduled to work fewer than 40 hours a week, the number
 305-26  of hours that is to be added to the employee's accumulated sick and
 305-27  vacation leave for each state or national holiday is computed as
  306-1  provided by Subsection (a), but is to be proportionally reduced
  306-2  according to the fewer number of the employee's normally scheduled
  306-3  weekly work hours.  (V.A.C.S. Art. 6252-8a, Sec. 2(c).)
  306-4        Sec. 661.036.  PAYMENT CHARGED TO CERTAIN FISCAL YEAR.  A
  306-5  state agency shall charge a payment required by Section 661.033 to
  306-6  the fiscal year in which the state employee dies.  (V.A.C.S. Art.
  306-7  6252-8a, Sec. 3 (part).)
  306-8        Sec. 661.037.  PAYMENT WITH FUNDS APPROPRIATED FOR SALARIES.
  306-9  A state agency shall use funds appropriated to the agency for
 306-10  salaries to make a payment required by Section 661.033.  (V.A.C.S.
 306-11  Art. 6252-8a, Sec. 3 (part).)
 306-12           (Sections 661.038-661.060 reserved for expansion)
 306-13      SUBCHAPTER C.  PAYMENT FOR VACATION TIME TO STATE EMPLOYEES
 306-14                  WHO SEPARATE FROM STATE EMPLOYMENT
 306-15        Sec. 661.061.  DEFINITIONS.  In this subchapter:
 306-16              (1)  "National holiday" includes only those days listed
 306-17  under Section 662.003(a).
 306-18              (2)  "State employee" means an employee or appointed
 306-19  officer of a state agency.  The term includes:
 306-20                    (A)  a full-time employee or officer;
 306-21                    (B)  a part-time employee or officer;
 306-22                    (C)  an hourly employee;
 306-23                    (D)  a temporary employee;
 306-24                    (E)  a person employed by:
 306-25                          (i)  the Teacher Retirement System;
 306-26                          (ii)  the Central Education Agency;
 306-27                          (iii)  the Texas Higher Education
  307-1  Coordinating Board;
  307-2                          (iv)  the Texas National Research
  307-3  Laboratory Commission;
  307-4                          (v)  the Texas School for the Blind and
  307-5  Visually Impaired;
  307-6                          (vi)  the Texas School for the Deaf;
  307-7                          (vii)  the Texas Youth Commission;
  307-8                          (viii)  the Windham School District of the
  307-9  Texas Department of Criminal Justice;
 307-10                          (ix)  the Texas Rehabilitation Commission;
 307-11  or
 307-12                    (F)  a classified, administrative, faculty, or
 307-13  professional employee of a state institution or agency of higher
 307-14  education who has accumulated vacation leave during the employment.
 307-15              (3)  "State holiday" includes only those days listed
 307-16  under Section 662.003(b).
 307-17              (4)  "Workday" includes a state or national holiday.
 307-18  (V.A.C.S. Art. 6252-8b, Secs. 1(b) (part), (d) (part).)
 307-19        Sec. 661.062.  ENTITLEMENT TO PAYMENT FOR VACATION TIME.  (a)
 307-20  A state employee who, at any time during the employee's lifetime,
 307-21  has accrued six months of continuous state employment and who for
 307-22  any reason separates from state employment is entitled to be paid
 307-23  for the accrued balance of the employee's vacation time on the date
 307-24  of separation.
 307-25        (b)  A separation from state employment includes a separation
 307-26  in which the employee:
 307-27              (1)  leaves one state agency to begin working for
  308-1  another state agency, if one or more workdays occur between the two
  308-2  employments;
  308-3              (2)  moves from a position in a state agency that
  308-4  accrues vacation time to a position in that agency that does not
  308-5  accrue vacation time, if the agency agrees to pay the employee for
  308-6  the accrued balance of the employee's vacation time;
  308-7              (3)  moves from a position in a state agency that
  308-8  accrues vacation time to a position in another state agency that
  308-9  does not accrue vacation time, if the other state agency refuses to
 308-10  credit the employee for the balance of the employee's vacation on
 308-11  the date of the move; or
 308-12              (4)  holds two or more positions, and separates from
 308-13  one that accrues vacation time.
 308-14        (c)  A separation under Subsection (b)(4) applies only with
 308-15  respect to the position from which the separation occurs.
 308-16        (d)  State employment is continuous for purposes of
 308-17  Subsection (a) while the employee is entitled to be paid a regular
 308-18  state salary, except that continuity of state employment is not
 308-19  interrupted while the employee is on a leave of absence without pay
 308-20  for less than one calendar month.
 308-21        (e)  The following are not entitled to payments under this
 308-22  subchapter:
 308-23              (1)  an individual who holds an office that is normally
 308-24  filled by vote of the people;
 308-25              (2)  an independent contractor or an employee of an
 308-26  independent contractor;
 308-27              (3)  an operator of equipment or a driver of a team
  309-1  whose wages are included in the rental paid by a state agency to
  309-2  the owner of the equipment or team;
  309-3              (4)  an individual employed on a piecework basis; or
  309-4              (5)  an individual covered by:
  309-5                    (A)  the Judicial Retirement System of Texas Plan
  309-6  One;
  309-7                    (B)  the Judicial Retirement System of Texas Plan
  309-8  Two; or
  309-9                    (C)  the Teacher Retirement System of Texas,
 309-10  other than an individual described by Section 661.061(2)(E).
 309-11  (V.A.C.S. Art. 6252-8b, Secs. 1(a), (b) (part), (c), (f), (g)
 309-12  (part).)
 309-13        Sec. 661.063.  COMPUTATION OF PAYMENT.  (a)  The payment to a
 309-14  state employee under this subchapter shall be computed by
 309-15  multiplying the employee's rate of compensation on the date of
 309-16  separation from state employment by the total number of hours of
 309-17  vacation time determined under Section 661.064.
 309-18        (b)  Under this section, rate of compensation:
 309-19              (1)  includes an emolument in lieu of base pay for
 309-20  which the state employee was eligible on the last day of
 309-21  employment; and
 309-22              (2)  does not include longevity or hazardous duty pay.
 309-23  (V.A.C.S. Art. 6252-8b, Sec. 1(d)(2).)
 309-24        Sec. 661.064.  COMPUTATION OF TOTAL ACCUMULATED LEAVE;
 309-25  HOLIDAY TIME.  (a)  For a state employee who on the date of
 309-26  separation is normally scheduled to work at least 40 hours a week,
 309-27  eight hours are to be added to the employee's accrued vacation time
  310-1  for each state or national holiday that is scheduled to fall within
  310-2  the period after the date of separation and during which the
  310-3  employee could have used the time.  To determine the period during
  310-4  which vacation time could have been used and the number of state or
  310-5  national holidays, the employee's vacation time is allocated over
  310-6  the workdays after the employee's separation and eight hours are
  310-7  added as a state or national holiday occurs during the period.
  310-8        (b)  For a state employee who on the date of separation is
  310-9  normally scheduled to work fewer than 40 hours a week, the number
 310-10  of hours that is to be added to the employee's accrued vacation
 310-11  time for each state or national holiday is computed as provided by
 310-12  Subsection (a), but is to be proportionally reduced according to
 310-13  the fewer number of the employee's normally scheduled weekly work
 310-14  hours.  (V.A.C.S. Art. 6252-8b, Sec. 1(d)(3).)
 310-15        Sec. 661.065.  LUMP-SUM PAYMENT.  A state agency shall make a
 310-16  payment required by this subchapter in a lump sum, except as
 310-17  provided by Section 661.067.  (V.A.C.S. Art. 6252-8b, Sec.
 310-18  1(d)(1).)
 310-19        Sec. 661.066.  PAYMENT CHARGED TO CERTAIN FISCAL YEAR.  A
 310-20  state agency shall charge a lump-sum payment required by this
 310-21  subchapter to the fiscal year in which the state employee's
 310-22  separation from state employment becomes effective.  (V.A.C.S. Art.
 310-23  6252-8b, Sec. 1(h).)
 310-24        Sec. 661.067.  AGREEMENT FOR STATE EMPLOYEE TO REMAIN ON
 310-25  AGENCY PAYROLL.  (a)  A state agency may agree to permit an
 310-26  employee entitled to payment under this subchapter to remain on the
 310-27  agency's payroll to exhaust the employee's accrued vacation time.
  311-1        (b)  A state employee who remains on the payroll of a state
  311-2  agency under this section:
  311-3              (1)  is entitled to continue to receive all
  311-4  compensation and benefits that the state employee was receiving on
  311-5  the employee's last day of duty, including paid holidays, longevity
  311-6  pay, and hazardous duty pay;
  311-7              (2)  is entitled to a general salary increase for state
  311-8  employees that takes effect before the employee's accrued vacation
  311-9  time is exhausted;
 311-10              (3)  may not use sick leave or accrue sick leave or
 311-11  vacation time.  (V.A.C.S. Art. 6252-8b, Sec. 1(e).)
 311-12           (Sections 661.068-661.090 reserved for expansion)
 311-13   SUBCHAPTER D.  PAYMENTS FOR VACATION TIME TO CONTRIBUTING MEMBERS
 311-14               OF EMPLOYEES RETIREMENT SYSTEM WHO RETIRE
 311-15        Sec. 661.091.  PAYMENT FOR VACATION TIME ON RETIREMENT.  (a)
 311-16  A contributing member of the Employees Retirement System of Texas
 311-17  who retires is entitled to be paid in a lump sum, from funds of the
 311-18  agency or department from which the member retires, for the
 311-19  member's accrued vacation time as of the date of retirement.
 311-20        (b)  A payment required by this section is payable on the
 311-21  date of retirement.   (V.A.C.S. Art. 6252-8b, Sec. 1A (part).)
 311-22        Sec. 661.092.  COMPUTATION OF PAYMENT.  A payment required by
 311-23  this subchapter shall be computed as if the member had taken
 311-24  vacation time, using the member's rate of compensation as of the
 311-25  date of retirement.  (V.A.C.S. Art. 6252-8b, Sec. 1A (part).)
 311-26        Sec. 661.093.  CONFLICT WITH OTHER SUBCHAPTER.  Subchapter C
 311-27  of this chapter controls if there is a conflict between Subchapter
  312-1  C and this subchapter.  (V.A.C.S. Art. 6252-8b, Sec. 1A (part).)
  312-2           (Sections 661.094-661.120 reserved for expansion)
  312-3      SUBCHAPTER E.  VACATION FOR HOURLY AND DAILY STATE EMPLOYEE
  312-4        Sec. 661.121.  VACATION FOR HOURLY OR DAILY EMPLOYEE.  (a)  A
  312-5  state department, institution, or agency may grant a vacation with
  312-6  full pay to an employee:
  312-7              (1)  whose pay is computed by the hour or by the day;
  312-8  and
  312-9              (2)  who has been continuously employed by the state
 312-10  for six months.
 312-11        (b)  The vacation authorized by this section is for the same
 312-12  time as that granted to employees whose pay is computed monthly.
 312-13  (V.A.C.S. Art. 6252-8.)
 312-14              CHAPTER 662.  HOLIDAYS AND RECOGNITION DAYS
 312-15              SUBCHAPTER A.  HOLIDAYS FOR STATE EMPLOYEES
 312-16  Sec. 662.001.  DEFINITIONS
 312-17  Sec. 662.002.  APPLICABILITY TO EMPLOYEE OF THE HOUSE
 312-18                   OR SENATE
 312-19  Sec. 662.003.  DATES AND DESCRIPTIONS OF HOLIDAYS
 312-20  Sec. 662.004.  MINIMUM NUMBER OF EMPLOYEES NEEDED TO CONDUCT
 312-21                   BUSINESS
 312-22  Sec. 662.005.  ENTITLEMENT TO PAID DAY OFF
 312-23  Sec. 662.006.  OPTIONAL HOLIDAY
 312-24  Sec. 662.007.  COMPENSATORY TIME
 312-25  Sec. 662.008.  PART-TIME STATE EMPLOYEES
 312-26  Sec. 662.009.  EMPLOYEE WORKING OTHER THAN MONDAY THROUGH
 312-27                   FRIDAY
  313-1  Sec. 662.010.  HOLIDAY BEFORE WORK BEGINS OR AFTER
  313-2                   WORK ENDS
  313-3  Sec. 662.011.  HOLIDAYS FOR INSTITUTIONS OF HIGHER
  313-4                   EDUCATION
  313-5           (Sections 662.012-662.020 reserved for expansion)
  313-6                     SUBCHAPTER B.  LEGAL HOLIDAYS
  313-7  Sec. 662.021.  DATES OF HOLIDAYS
  313-8  Sec. 662.022.  CLOSURE OF PUBLIC OFFICES
  313-9  Sec. 662.023.  PRESENTMENT, NOTICE OF DISHONOR, AND PROTEST
 313-10                   OF CERTAIN COMMERCIAL PAPER
 313-11           (Sections 662.024-662.040 reserved for expansion)
 313-12                    SUBCHAPTER C.  RECOGNITION DAYS
 313-13  Sec. 662.041.  SAM RAYBURN DAY
 313-14  Sec. 662.042.  FORMER PRISONERS OF WAR RECOGNITION DAY
 313-15  Sec. 662.043.  INTERNATIONAL TRADE AWARENESS WEEK
 313-16  Sec. 662.044.  COLUMBUS DAY
 313-17  Sec. 662.045.  FATHER OF TEXAS DAY
 313-18              CHAPTER 662.  HOLIDAYS AND RECOGNITION DAYS
 313-19              SUBCHAPTER A.  HOLIDAYS FOR STATE EMPLOYEES
 313-20        Sec. 662.001.  DEFINITIONS.  In this subchapter:
 313-21              (1)  "Part-time state employee" means an hourly or
 313-22  temporary state employee who normally works fewer than 40 hours
 313-23  each week.
 313-24              (2)  "State agency" means a unit of state government,
 313-25  including a state board, commission, council, department,
 313-26  committee, agency, or office that was created by the constitution
 313-27  or a statute of this state and is in any branch of state
  314-1  government.  The term does not include a local government, a river
  314-2  authority, a special district, any other political subdivision, or
  314-3  an institution of higher education as defined by Section 61.003,
  314-4  Education Code.
  314-5              (3)  "State employee" means an employee of a state
  314-6  agency or an appointed officer whose office is not created by the
  314-7  state constitution.  The term includes a part-time, hourly, or
  314-8  temporary state employee.  (V.A.C.S. Art. 4591.2, Secs. 1 (part), 7
  314-9  (part).)
 314-10        Sec. 662.002.  APPLICABILITY TO EMPLOYEE OF THE HOUSE OR
 314-11  SENATE.  This subchapter applies to a state employee of the house
 314-12  of representatives or the senate only at the discretion of the
 314-13  presiding officer or the administration committee of each
 314-14  respective house.  (V.A.C.S. Art. 4591.2, Sec. 9.)
 314-15        Sec. 662.003.  DATES AND DESCRIPTIONS OF HOLIDAYS.  (a)  A
 314-16  national holiday includes only the following days:
 314-17              (1)  the first day of January, "New Year's Day";
 314-18              (2)  the third Monday in January, "Martin Luther King,
 314-19  Jr., Day" in observance of the birthday of Dr. Martin Luther King,
 314-20  Jr.;
 314-21              (3)  the third Monday in February, "Presidents' Day";
 314-22              (4)  the last Monday in May, "Memorial Day";
 314-23              (5)  the fourth day of July, "Independence Day";
 314-24              (6)  the first Monday in September, "Labor Day";
 314-25              (7)  the 11th day of November, "Veteran's Day,"
 314-26  dedicated to the cause of world peace and to honoring the veterans
 314-27  of all wars in which Texans and other Americans have fought;
  315-1              (8)  the fourth Thursday in November, "Thanksgiving
  315-2  Day"; and
  315-3              (9)  the 25th day of December, "Christmas Day."
  315-4        (b)  A state holiday includes only the following days:
  315-5              (1)  the 19th day of January, "Confederate Heroes Day,"
  315-6  in honor of Jefferson Davis, Robert E. Lee, and other Confederate
  315-7  heroes;
  315-8              (2)  the second day of March, "Texas Independence Day";
  315-9              (3)  the 21st day of April, "San Jacinto Day";
 315-10              (4)  the 19th day of June, "Emancipation Day in Texas,"
 315-11  in honor of the emancipation of the slaves in Texas in 1865;
 315-12              (5)  the 27th day of August, "Lyndon Baines Johnson
 315-13  Day," in observance of the birthday of Lyndon Baines Johnson;
 315-14              (6)  every day on which an election is held throughout
 315-15  the state;
 315-16              (7)  the Friday after Thanksgiving Day;
 315-17              (8)  the 24th day of December; and
 315-18              (9)  the 26th day of December.
 315-19        (c)  An "optional holiday" includes only the days on which
 315-20  Rosh Hashanah, Yom Kippur, or Good Friday falls.  (V.A.C.S. Arts.
 315-21  4591 (part); 4591.2, Sec. 1 (part); 4591e.)
 315-22        Sec. 662.004.  MINIMUM NUMBER OF EMPLOYEES NEEDED TO CONDUCT
 315-23  BUSINESS.  (a)  A state agency shall have enough employees on duty
 315-24  during a state holiday to conduct the public business of the
 315-25  agency.
 315-26        (b)  This section does not apply to a state holiday that
 315-27  falls on a Saturday or Sunday, the Friday after Thanksgiving Day,
  316-1  or the 24th or 26th day of December.   (V.A.C.S. Art. 4591.2, Sec.
  316-2  3.)
  316-3        Sec. 662.005.  ENTITLEMENT TO PAID DAY OFF.  (a)  A state
  316-4  employee is entitled to a paid day off from work on each national
  316-5  or state holiday that does not fall on a Saturday or Sunday.
  316-6        (b)  This section does not apply to a holiday that the
  316-7  General Appropriations Act prohibits state agencies from observing.
  316-8  (V.A.C.S. Art. 4591.2, Sec. 2.)
  316-9        Sec. 662.006.  OPTIONAL HOLIDAY.  (a)  A state employee is
 316-10  entitled to a paid day off on each day of an optional holiday that
 316-11  does not fall on a Saturday or Sunday if the employee agrees to
 316-12  give up, during the same fiscal year, a state holiday that does not
 316-13  fall on a Saturday or Sunday.
 316-14        (b)  A state employee is entitled to a paid day off on each
 316-15  day of an optional holiday that extends for more than one day if
 316-16  the employee agrees to give up an equivalent number of state
 316-17  holidays.
 316-18        (c)  A state employee may not agree to give up the Friday
 316-19  after Thanksgiving Day or the 24th or 26th day of December.
 316-20  (V.A.C.S. Art. 4591.2, Sec. 6.)
 316-21        Sec. 662.007.  COMPENSATORY TIME.  (a)  A state employee who
 316-22  is required to work on a national or state holiday that does not
 316-23  fall on a Saturday or Sunday is entitled to compensatory time off
 316-24  during the 12 months after the holiday.
 316-25        (b)  A state employee must give reasonable notice of the
 316-26  employee's intention to use the compensatory time but is not
 316-27  required to say how the compensatory time will be used.  (V.A.C.S.
  317-1  Art. 4591.2, Sec. 4.)
  317-2        Sec. 662.008.  PART-TIME STATE EMPLOYEES.  The pay of a
  317-3  part-time state employee for a paid day off to which the employee
  317-4  is entitled under this subchapter must be proportionally reduced to
  317-5  account for the fewer hours the employee normally works.  (V.A.C.S.
  317-6  Art. 4591.2, Sec. 7 (part).)
  317-7        Sec. 662.009.  EMPLOYEE WORKING OTHER THAN MONDAY THROUGH
  317-8  FRIDAY.  (a)  A state employee who normally works 40 hours a week
  317-9  on a schedule other than Monday through Friday is entitled to paid
 317-10  holiday time off during the fiscal year equal to eight hours
 317-11  multiplied by the number of national and state holidays in the
 317-12  fiscal year as determined under Section 662.005.
 317-13        (b)  A state employee to whom Subsection (a) applies who
 317-14  works less than the entire fiscal year is entitled to paid holiday
 317-15  time off during the fiscal year equal to eight hours multiplied by
 317-16  the number of national and state holidays that occur during the
 317-17  period worked by the employee under Section 662.005.
 317-18        (c)  The paid holiday time off of a part-time state employee
 317-19  who works on a schedule other than Monday through Friday must be
 317-20  proportionally reduced to account for the fewer hours the employee
 317-21  normally works.  (V.A.C.S. Art. 4591.2, Secs. 5, 7 (part).)
 317-22        Sec. 662.010.  HOLIDAY BEFORE WORK BEGINS OR AFTER WORK ENDS.
 317-23  (a)  A state employee who begins working for a state agency on the
 317-24  first workday of a month is entitled to be paid for a state or
 317-25  national holiday that occurs before the first workday if the
 317-26  holiday:
 317-27              (1)  occurs during the month; and
  318-1              (2)  does not fall on a Saturday or Sunday.
  318-2        (b)  A state employee who stops working for a state agency on
  318-3  the last workday of a month is entitled to be paid for a state or
  318-4  national holiday that occurs after the last workday if the holiday:
  318-5              (1)  occurs during the month; and
  318-6              (2)  does not fall on a Saturday or Sunday.
  318-7        (c)  In this section, "workday" means a day on which a state
  318-8  employee is normally scheduled to work.  (V.A.C.S. Art. 4591.2,
  318-9  Sec. 8.)
 318-10        Sec. 662.011.  HOLIDAYS FOR INSTITUTIONS OF HIGHER EDUCATION.
 318-11  (a)  The governing body of an institution of higher education, as
 318-12  defined by Section 61.003, Education Code, other than a public
 318-13  junior college as defined by that section, may establish the
 318-14  holiday schedule for the institution.
 318-15        (b)  The number of holidays to be observed by the institution
 318-16  may not exceed the number of holidays on which an employee of a
 318-17  state agency is entitled to a day off.  (V.A.C.S. Art. 4591.3.)
 318-18           (Sections 662.012-662.020 reserved for expansion)
 318-19                     SUBCHAPTER B.  LEGAL HOLIDAYS
 318-20        Sec. 662.021.  DATES OF HOLIDAYS.  A legal holiday includes
 318-21  only the following days:
 318-22              (1)  a national holiday under Section 662.003(a); and
 318-23              (2)  a state holiday under Sections 662.003(b)(1)-(6).
 318-24  (V.A.C.S. Art. 4591 (part).)
 318-25        Sec. 662.022.  CLOSURE OF PUBLIC OFFICES.  A public office of
 318-26  this state may be closed on a legal holiday, except as provided by
 318-27  Section 662.004.  (V.A.C.S. Art. 4591 (part).)
  319-1        Sec. 662.023.  PRESENTMENT, NOTICE OF DISHONOR, AND PROTEST
  319-2  OF CERTAIN COMMERCIAL PAPER.  A legal holiday is treated as a
  319-3  Sunday for presenting for payment or acceptance, protesting, and
  319-4  giving notice of the dishonor of a draft or promissory note.
  319-5  (V.A.C.S. Art. 4591 (part).)
  319-6           (Sections 662.024-662.040 reserved for expansion)
  319-7                    SUBCHAPTER C.  RECOGNITION DAYS
  319-8        Sec. 662.041.  SAM RAYBURN DAY.  (a)  January 6 is Sam
  319-9  Rayburn Day in memory of that great Texas and American statesman,
 319-10  Sam Rayburn.
 319-11        (b)  Sam Rayburn Day shall be regularly observed by
 319-12  appropriate programs in the public schools and other places to
 319-13  commemorate the birthday of Sam Rayburn.  (V.A.C.S. Art. 4591b-1.)
 319-14        Sec. 662.042.  FORMER PRISONERS OF WAR RECOGNITION DAY.  (a)
 319-15  April 9 is Former Prisoners of War Recognition Day in honor of the
 319-16  courage of those Americans who suffered sacrifices and tribulations
 319-17  as prisoners of war in the course of their military service on
 319-18  behalf of this nation.
 319-19        (b)  Former Prisoners of War Recognition Day shall be
 319-20  regularly observed by appropriate ceremonies.  (V.A.C.S.
 319-21  Art. 4591b-2.)
 319-22        Sec. 662.043.  INTERNATIONAL TRADE AWARENESS WEEK.  (a)  May
 319-23  22 through May 26 is International Trade Awareness Week to
 319-24  encourage Texas businesses to engage effectively in the promotion
 319-25  and development of international trade.
 319-26        (b)  International Trade Awareness Week shall be observed by
 319-27  appropriate ceremonies and activities.  (V.A.C.S. Art. 4591.5.)
  320-1        Sec. 662.044.  COLUMBUS DAY.  (a)  The second Monday of
  320-2  October is Columbus Day in honor of Christopher Columbus.
  320-3        (b)  Columbus Day shall be regularly observed by appropriate
  320-4  ceremonies.
  320-5        (c)  Public offices of this state shall remain open on
  320-6  Columbus Day.  (V.A.C.S. Art. 4591.6.)
  320-7        Sec. 662.045.  FATHER OF TEXAS DAY.  (a)  November 3 is
  320-8  Father of Texas Day in memory of Stephen F. Austin, the great
  320-9  pioneer patriot and the real and true Father of Texas.
 320-10        (b)  Father of Texas Day shall be regularly observed by
 320-11  appropriate and patriotic programs in the public schools and other
 320-12  places to properly commemorate the birthday of Stephen F. Austin
 320-13  and to inspire a greater love for this beloved state.  (V.A.C.S.
 320-14  Art. 4591b.)
 320-15         CHAPTER 663.  CHILD CARE SERVICES FOR STATE EMPLOYEES
 320-16                   SUBCHAPTER A.  GENERAL PROVISIONS
 320-17  Sec. 663.001.  DEFINITIONS
 320-18  Sec. 663.002.  DUTIES AND RESPONSIBILITIES NOT AFFECTED
 320-19  Sec. 663.003.  GOOD FAITH STANDARD
 320-20           (Sections 663.004-663.050 reserved for expansion)
 320-21              SUBCHAPTER B.  CHILD CARE DEVELOPMENT BOARD
 320-22  Sec. 663.051.  CHILD CARE DEVELOPMENT BOARD
 320-23  Sec. 663.052.  COMPOSITION OF BOARD
 320-24  Sec. 663.053.  STAFF, EQUIPMENT, AND SUPPLIES
 320-25  Sec. 663.054.  ADVISORY COMMITTEE
 320-26  Sec. 663.055.  REPORT OF BOARD
 320-27           (Sections 663.056-663.100 reserved for expansion)
  321-1           SUBCHAPTER C.  CHILD CARE PROGRAM AND FACILITIES
  321-2  Sec. 663.101.  ADMINISTRATION OF CHILD CARE PROGRAM
  321-3  Sec. 663.102.  STANDARDS OF CHILD CARE PROGRAM
  321-4  Sec. 663.103.  SPECIFICATIONS FOR CHILD CARE FACILITY SITES
  321-5  Sec. 663.104.  ESTABLISHMENT OF CHILD CARE FACILITIES
  321-6  Sec. 663.105.  CONTRACTS
  321-7  Sec. 663.106.  LEASE TO CHILD CARE PROVIDER
  321-8  Sec. 663.107.  NUMBER OF CHILDREN SERVED BY CHILD CARE
  321-9                   FACILITY
 321-10  Sec. 663.108.  DUTIES OF CHILD CARE PROVIDER
 321-11  Sec. 663.109.  MONITORING OF CHILD CARE FACILITIES
 321-12  Sec. 663.110.  ENROLLMENT IN CHILD CARE FACILITY
 321-13  Sec. 663.111.  ADDITIONAL CHILD CARE FACILITIES
 321-14  Sec. 663.112.  CHILD CARE FACILITY ACCOUNT
 321-15  Sec. 663.113.  PRIVATE DONATIONS
 321-16         CHAPTER 663.  CHILD CARE SERVICES FOR STATE EMPLOYEES
 321-17                   SUBCHAPTER A.  GENERAL PROVISIONS
 321-18        Sec. 663.001.  DEFINITIONS.  In this chapter:
 321-19              (1)  "Board" means the Child Care Development Board.
 321-20              (2)  "Child care facility" includes only a child care
 321-21  facility established under this chapter.
 321-22              (3)  "Child care program" means the program developed
 321-23  by the board to provide child care services for state employees.
 321-24              (4)  "Commission" means the General Services
 321-25  Commission.
 321-26              (5)  "Committee" means the Child Care Advisory
 321-27  Committee.  (V.A.C.S. Art. 6252-3e, Sec. 1; New.)
  322-1        Sec. 663.002.  DUTIES AND RESPONSIBILITIES NOT AFFECTED.
  322-2  This chapter does not affect the duties or responsibilities of the
  322-3  board or commission under Section 5.01(b), State Purchasing and
  322-4  General Services Act (Article 601b, Vernon's Texas Civil Statutes).
  322-5  (V.A.C.S. Art. 6252-3e, Sec. 5(e).)
  322-6        Sec. 663.003.  GOOD FAITH STANDARD.  The commission and the
  322-7  executive director of the commission shall carry out their
  322-8  responsibilities under this chapter in good faith.  (V.A.C.S.
  322-9  Art. 6252-3e, Sec. 5(d) (part).)
 322-10           (Sections 663.004-663.050 reserved for expansion)
 322-11              SUBCHAPTER B.  CHILD CARE DEVELOPMENT BOARD
 322-12        Sec. 663.051.  CHILD CARE DEVELOPMENT BOARD.  The Child Care
 322-13  Development Board is an agency of the state.  (V.A.C.S. Art.
 322-14  6252-3e, Sec. 2(a).)
 322-15        Sec. 663.052.  COMPOSITION OF BOARD.  (a)  The board is
 322-16  composed of:
 322-17              (1)  the governor;
 322-18              (2)  the lieutenant governor;
 322-19              (3)  the attorney general;
 322-20              (4)  the state treasurer;
 322-21              (5)  the comptroller; and
 322-22              (6)  the commissioner of the General Land Office.
 322-23        (b)  An officer listed in Subsection (a) may designate a
 322-24  representative to serve for the officer.  (V.A.C.S. Art. 6252-3e,
 322-25  Sec. 2(b).)
 322-26        Sec. 663.053.  STAFF, EQUIPMENT, AND SUPPLIES.  The board may
 322-27  use the staff, equipment, and supplies of an agency represented on
  323-1  the board to assist the board as necessary in performing its duties
  323-2  under this chapter.  (V.A.C.S. Art. 6252-3e, Sec. 2(c).)
  323-3        Sec. 663.054.  ADVISORY COMMITTEE.  (a)  The board shall
  323-4  appoint a child care advisory committee composed of individuals who
  323-5  are interested in child care services for state employees.
  323-6        (b)  The board may appoint to the committee:
  323-7              (1)  the executive directors of:
  323-8                    (A)  the commission; and
  323-9                    (B)  the Texas Department of Housing and
 323-10  Community Affairs;
 323-11              (2)  a representative of the child care working group
 323-12  of the United Way of Texas;
 323-13              (3)  a representative of the Texas Association for the
 323-14  Education of Young Children;
 323-15              (4)  a representative of the corporate child
 323-16  development fund;
 323-17              (5)  a representative of child care providers;
 323-18              (6)  one or more state employees subject to the state
 323-19  classification plan, each of whom has at least one child in a child
 323-20  care facility; and
 323-21              (7)  one or more individuals knowledgeable in child
 323-22  care services or the need of working individuals for child care
 323-23  services.
 323-24        (c)  The committee shall advise the board on the:
 323-25              (1)  location, size, and design of the child care
 323-26  facilities; and
 323-27              (2)  curriculum a child care facility must provide to
  324-1  ensure the provision of developmentally appropriate services of a
  324-2  high quality.  (V.A.C.S. Art. 6252-3e, Sec. 4, as amended by
  324-3  Chapters 505 and 762, Acts of the 72nd Legislature, Regular
  324-4  Session, 1991.)
  324-5        Sec. 663.055.  REPORT OF BOARD.  (a)  The board or the
  324-6  board's designated representative shall report to the legislature
  324-7  each legislative session.
  324-8        (b)  The report must:
  324-9              (1)  summarize the development and progress of the
 324-10  child care program; and
 324-11              (2)  describe additional child care services needed by
 324-12  state employees.  (V.A.C.S. Art. 6252-3e, Sec. 3 (part).)
 324-13           (Sections 663.056-663.100 reserved for expansion)
 324-14           SUBCHAPTER C.  CHILD CARE PROGRAM AND FACILITIES
 324-15        Sec. 663.101.  ADMINISTRATION OF CHILD CARE PROGRAM.  (a)
 324-16  The board shall provide child care services for state employees by
 324-17  the development and administration of the child care program.
 324-18        (b)  The board by rule may establish methods to administer
 324-19  and supervise the child care program.  (V.A.C.S. Art. 6252-3e,
 324-20  Sec. 3 (part).)
 324-21        Sec. 663.102.  STANDARDS OF CHILD CARE PROGRAM.  The board
 324-22  shall set specific performance standards for child care services
 324-23  under the child care program that conform to the standards of
 324-24  quality child care set by the National Association for the
 324-25  Education of Young Children.  (V.A.C.S. Art. 6252-3e, Sec. 6
 324-26  (part).)
 324-27        Sec. 663.103.  SPECIFICATIONS FOR CHILD CARE FACILITY SITES.
  325-1  The board shall give the commission the specifications for each
  325-2  child care facility site, including the location, size, and design
  325-3  for the facility.  (V.A.C.S. Art. 6252-3e, Sec. 5(a).)
  325-4        Sec. 663.104.  ESTABLISHMENT OF CHILD CARE FACILITIES.  (a)
  325-5  To establish a child care facility, the commission, at the
  325-6  direction of the board, shall:
  325-7              (1)  acquire necessary real and personal property,
  325-8  including mobile and prefabricated buildings; or
  325-9              (2)  build, renovate, repair, or equip a building,
 325-10  including constructing or placing a new building on real property
 325-11  the state owns.
 325-12        (b)  The board, in establishing a child care facility, must
 325-13  specify the terms or conditions under which the commission is
 325-14  required to act and may adopt a schedule for implementation of the
 325-15  activity.  The board may request, add to, or delete a term or
 325-16  condition and may request a progress report from the commission.
 325-17        (c)  If activity is delayed or cannot be implemented under
 325-18  the board's terms and conditions, the commission immediately shall
 325-19  advise the board and may postpone further action until the
 325-20  commission receives an instruction from the board.  (V.A.C.S.
 325-21  Art. 6252-3e, Secs. 5(b), (d) (part).)
 325-22        Sec. 663.105.  CONTRACTS.  (a)  The commission shall make any
 325-23  contract necessary to establish a child care facility.
 325-24        (b)  The contract must comply with the State Purchasing and
 325-25  General Services Act (Article 601b, Vernon's Texas Civil Statutes).
 325-26  (V.A.C.S. Art. 6252-3e, Sec. 5(c).)
 325-27        Sec. 663.106.  LEASE TO CHILD CARE PROVIDER.  (a)  The
  326-1  commission shall lease to a child care provider selected by the
  326-2  board a site for a child care facility at a reasonable rate set by
  326-3  the board.
  326-4        (b)  The board by rule may require, or prohibit the inclusion
  326-5  of, specified provisions in a lease.  (V.A.C.S. Art. 6252-3e,
  326-6  Sec. 7(a).)
  326-7        Sec. 663.107.  NUMBER OF CHILDREN SERVED BY CHILD CARE
  326-8  FACILITY.  The board shall set the number of children a child care
  326-9  facility may serve.  (V.A.C.S. Art. 6252-3e, Sec. 6 (part).)
 326-10        Sec. 663.108.  DUTIES OF CHILD CARE PROVIDER.  A provider for
 326-11  a child care facility shall:
 326-12              (1)  obtain for the facility a license under Chapter
 326-13  42, Human Resources Code;
 326-14              (2)  maintain liability insurance coverage by an
 326-15  insurance company approved by the State Board of Insurance in an
 326-16  amount approved by the board;
 326-17              (3)  indemnify the state, members of the board, and the
 326-18  commission from:
 326-19                    (A)  a claim, demand, or cause of action asserted
 326-20  by a person as a result of the facility's operation; and
 326-21                    (B)  an act or omission of the provider or the
 326-22  facility's personnel;
 326-23              (4)  provide furniture, equipment, toys, and other
 326-24  materials necessary for  the facility;
 326-25              (5)  keep a list of child care applicants who are
 326-26  waiting for enrollment in the facility; and
 326-27              (6)  pay salaries and provide insurance for the
  327-1  employees of the facility.   (V.A.C.S. Art. 6252-3e, Secs. 7(b),
  327-2  8(b) (part).)
  327-3        Sec. 663.109.  MONITORING OF CHILD CARE FACILITIES.  The
  327-4  board shall monitor the activities and operations of a child care
  327-5  facility by conducting regular visits to the facility during
  327-6  operating hours to investigate, inspect, and evaluate the services
  327-7  provided.  (V.A.C.S. Art. 6252-3e, Sec. 6 (part).)
  327-8        Sec. 663.110.  ENROLLMENT IN CHILD CARE FACILITY.  (a)  The
  327-9  board shall establish procedures for application for enrollment in
 327-10  a child care facility established under this chapter.
 327-11        (b)  A provider for a child care facility shall give
 327-12  preference in enrollment to the individual whose application date
 327-13  is the earliest, except that the board may permit enrollment
 327-14  because of a special circumstance as defined by the board,
 327-15  including financial need or other hardship.  (V.A.C.S.
 327-16  Art. 6252-3e, Secs. 8(a), (b) (part), (c).)
 327-17        Sec. 663.111.  ADDITIONAL CHILD CARE FACILITIES.  (a)  The
 327-18  board may begin procedures to establish another child care facility
 327-19  when the number of applicants on a waiting list to enroll in a
 327-20  facility is 50 or more.
 327-21        (b)  The commission shall provide the board with a list of
 327-22  sites available for a new or expanded child care facility not later
 327-23  than the 120th day after the date on which the commission receives
 327-24  from the board the specifications for a child care facility under
 327-25  Section 663.103.
 327-26        (c)  If the commission cannot provide the board with a
 327-27  suitable site, the board shall select a site that the board
  328-1  considers suitable.
  328-2        (d)  After a site has been selected, the commission shall
  328-3  give priority to implementing the plan to prepare the child care
  328-4  facility over other building construction, repairs, or renovations.
  328-5  (V.A.C.S. Art. 6252-3e, Sec. 10.)
  328-6        Sec. 663.112.  CHILD CARE FACILITY ACCOUNT.  (a)  The
  328-7  legislature may appropriate money from the Texas capital trust fund
  328-8  established under Chapter 2201 to establish and operate a child
  328-9  care facility under this chapter.
 328-10        (b)  On the first day of each biennium or from the first
 328-11  amounts deposited to the credit of the Texas capital trust fund
 328-12  during each biennium, the comptroller shall set aside in a special
 328-13  account within the fund the amount of an appropriation for this
 328-14  chapter.
 328-15        (c)  An unexpended and unobligated portion of an
 328-16  appropriation made from the fund for this chapter remains in the
 328-17  special account at the end of the period for which it is
 328-18  appropriated.  (V.A.C.S. Art. 6252-3e, Sec. 9(a).)
 328-19        Sec. 663.113.  PRIVATE DONATIONS.  (a)  The board may solicit
 328-20  a private donation of property or money for renovations, equipment,
 328-21  or other items necessary to provide child care services.
 328-22        (b)  The commission shall accept and use the donations only
 328-23  for the child care program.  (V.A.C.S. Art. 6252-3e, Sec. 9(b).)
 328-24      CHAPTER 664.  STATE EMPLOYEES HEALTH FITNESS AND EDUCATION
 328-25  Sec. 664.001.  SHORT TITLE
 328-26  Sec. 664.002.  DEFINITION
 328-27  Sec. 664.003.  FUNDS AND FACILITIES FOR HEALTH
  329-1                   FITNESS PROGRAMS
  329-2  Sec. 664.004.  AGREEMENTS WITH OTHER STATE, LOCAL,
  329-3                   OR FEDERAL AGENCIES
  329-4  Sec. 664.005.  PLANS; APPROVAL
  329-5      CHAPTER 664.  STATE EMPLOYEES HEALTH FITNESS AND EDUCATION
  329-6        Sec. 664.001.  SHORT TITLE.  This chapter may be cited as the
  329-7  State Employees Health Fitness and Education Act of 1983.
  329-8  (V.A.C.S. Art. 6252-27, Sec. 1.)
  329-9        Sec. 664.002.  DEFINITION.  In this chapter, "state agency"
 329-10  means a department, institution, commission, or other agency of the
 329-11  state.  (New.)
 329-12        Sec. 664.003.  FUNDS AND FACILITIES FOR HEALTH FITNESS
 329-13  PROGRAMS.  (a)  A state agency may use available public funds for:
 329-14              (1)  health fitness education and activities; or
 329-15              (2)  other costs related to health fitness.
 329-16        (b)  A state agency may use available facilities for health
 329-17  fitness programs.   (V.A.C.S. Art. 6252-27, Sec. 3.)
 329-18        Sec. 664.004.  AGREEMENTS WITH OTHER STATE, LOCAL, OR FEDERAL
 329-19  AGENCIES.  A state agency may, and is encouraged to, enter into an
 329-20  agreement with another state agency, including a state-supported
 329-21  college or university, or with a local or federal department,
 329-22  institution, commission, or agency, to present, join in presenting,
 329-23  or participate jointly in health fitness education or activity
 329-24  programs for the state agency's administrators and employees.
 329-25  (V.A.C.S. Art. 6252-27, Sec. 4.)
 329-26        Sec. 664.005.  PLANS; APPROVAL.  Before implementing a health
 329-27  fitness program, a state agency must:
  330-1              (1)  develop a plan that addresses the purpose, nature,
  330-2  duration, costs, participants in, and expected results of the
  330-3  program; and
  330-4              (2)  obtain written approval of the plan from:
  330-5                    (A)  the Texas Department of Health; and
  330-6                    (B)  if implementing the program requires the
  330-7  expenditure of public money, the governor or the governor's
  330-8  designated representative.  (V.A.C.S. Art. 6252-27, Sec. 5.)
  330-9                 CHAPTER 665.  IMPEACHMENT AND REMOVAL
 330-10                  SUBCHAPTER A.  IMPEACHMENT BY HOUSE
 330-11  Sec. 665.001.  IMPEACHMENT PROCEEDING
 330-12  Sec. 665.002.  INDIVIDUALS WHO MAY BE IMPEACHED
 330-13  Sec. 665.003.  IMPEACHMENT WHEN HOUSE IS IN SESSION
 330-14  Sec. 665.004.  CONVENING HOUSE FOR IMPEACHMENT PURPOSES WHEN
 330-15                   HOUSE IS NOT IN SESSION
 330-16  Sec. 665.005.  POWERS OF HOUSE DURING IMPEACHMENT PROCEEDING
 330-17  Sec. 665.006.  PER DIEM AND MILEAGE DURING IMPEACHMENT
 330-18                   PROCEEDING
 330-19  Sec. 665.007.  CUMULATIVE REMEDY
 330-20           (Sections 665.008-665.020 reserved for expansion)
 330-21               SUBCHAPTER B.  REMOVAL AFTER IMPEACHMENT
 330-22  Sec. 665.021.  SENATE MEETS AS COURT OF IMPEACHMENT
 330-23  Sec. 665.022.  PROCEDURE WHEN SENATE IS IN SESSION
 330-24  Sec. 665.023.  PROCEDURE WHEN SENATE IS NOT IN SESSION
 330-25  Sec. 665.024.  ADOPTION OF RULES
 330-26  Sec. 665.025.  CONVENING AND ADJOURNING SENATE
 330-27  Sec. 665.026.  ATTENDANCE OF SENATORS
  331-1  Sec. 665.027.  POWERS OF SENATE MEETING AS A COURT OF
  331-2                   IMPEACHMENT
  331-3  Sec. 665.028.  PER DIEM WHILE SENATE IS MEETING AS A COURT
  331-4                   OF IMPEACHMENT
  331-5           (Sections 665.029-665.050 reserved for expansion)
  331-6                   SUBCHAPTER C.  REMOVAL BY ADDRESS
  331-7  Sec. 665.051.  INDIVIDUALS SUBJECT TO REMOVAL
  331-8  Sec. 665.052.  CAUSES FOR REMOVAL
  331-9  Sec. 665.053.  NOTICE AND HEARING
 331-10  Sec. 665.054.  REMOVAL VOTE
 331-11           (Sections 665.055-665.080 reserved for expansion)
 331-12                SUBCHAPTER D.  OTHER REMOVAL PROVISIONS
 331-13  Sec. 665.081.  NO REMOVAL FOR ACTS COMMITTED BEFORE
 331-14                   ELECTION TO OFFICE
 331-15                 CHAPTER 665.  IMPEACHMENT AND REMOVAL
 331-16                  SUBCHAPTER A.  IMPEACHMENT BY HOUSE
 331-17        Sec. 665.001.  IMPEACHMENT PROCEEDING.  In this subchapter,
 331-18  "impeachment proceeding" includes:
 331-19              (1)  presenting an article of impeachment;
 331-20              (2)  investigating a matter relating to a contemplated
 331-21  impeachment; and
 331-22              (3)  acting on an article of impeachment.  (New.)
 331-23        Sec. 665.002.  INDIVIDUALS WHO MAY BE IMPEACHED.  An
 331-24  individual may be removed from an office or a position by
 331-25  impeachment in the manner provided by the constitution and this
 331-26  chapter if the individual is:
 331-27              (1)  a state officer;
  332-1              (2)  a head of a state department or state institution;
  332-2  or
  332-3              (3)  a member, regent, trustee, or commissioner having
  332-4  control or management of a state institution or enterprise.
  332-5  (V.A.C.S. Art. 5961 (part).)
  332-6        Sec. 665.003.  IMPEACHMENT WHEN HOUSE IS IN SESSION.  (a)
  332-7  The house of representatives may conduct an impeachment proceeding
  332-8  at a regular or called session at its pleasure without further call
  332-9  or action.
 332-10        (b)  If the house is conducting an impeachment proceeding at
 332-11  the time a session expires or ends by house or senate adjournment
 332-12  on legislative matters, the house may:
 332-13              (1)  continue in session to conduct the impeachment
 332-14  proceeding; or
 332-15              (2)  adjourn to a later time to conclude the
 332-16  impeachment proceeding.
 332-17        (c)  If the house adjourns under Subsection (b)(2), it may
 332-18  continue the impeachment proceeding through committees or agents.
 332-19  (V.A.C.S. Art. 5962 (part).)
 332-20        Sec. 665.004.  CONVENING HOUSE FOR IMPEACHMENT PURPOSES WHEN
 332-21  HOUSE IS NOT IN SESSION.  (a)  When the house is not in session it
 332-22  may be convened to conduct an impeachment proceeding:
 332-23              (1)  by proclamation of the governor;
 332-24              (2)  by proclamation of the speaker of the house if the
 332-25  speaker is petitioned in writing by 50 or more members of the
 332-26  house; or
 332-27              (3)  by proclamation in writing signed by a majority of
  333-1  the members of the house.
  333-2        (b)  Each member of the house who is in the state and
  333-3  accessible must be given a copy of the proclamation in person or by
  333-4  registered mail by:
  333-5              (1)  the speaker of the house or under the direction of
  333-6  the speaker; or
  333-7              (2)  the members signing the proclamation or one or
  333-8  more individuals who signed the proclamation designated by the
  333-9  members that signed the proclamation if the proclamation was issued
 333-10  under Subsection (a)(3).
 333-11        (c)  The proclamation must:
 333-12              (1)  state in general terms the reason for convening
 333-13  the house;
 333-14              (2)  state a time for the house to convene; and
 333-15              (3)  be published in at least three daily newspapers of
 333-16  general circulation.  (V.A.C.S. Art. 5962 (part).)
 333-17        Sec. 665.005.  POWERS OF HOUSE DURING IMPEACHMENT PROCEEDING.
 333-18  When conducting an impeachment proceeding, the house or a house
 333-19  committee may:
 333-20              (1)  send for persons or papers;
 333-21              (2)  compel the giving of testimony; and
 333-22              (3)  punish for contempt to the same extent as a
 333-23  district court of this state.  (V.A.C.S. Art. 5962 (part).)
 333-24        Sec. 665.006.  PER DIEM AND MILEAGE DURING IMPEACHMENT
 333-25  PROCEEDING.  (a)  A member of the house is entitled to a per diem
 333-26  when the house is in session for an impeachment proceeding but not
 333-27  for legislative purposes.
  334-1        (b)  A member of a house committee is entitled to a per diem
  334-2  when the committee is meeting for an impeachment proceeding and the
  334-3  house is not in session.
  334-4        (c)  A member of the house is entitled to mileage when the
  334-5  house is convened by proclamation under Section 665.004.
  334-6        (d)  The amount of a per diem and the mileage authorized by
  334-7  this section is the same as the amounts for those items fixed for
  334-8  members of the legislature when in legislative session.
  334-9        (e)  The house may pay agents to assist in conducting an
 334-10  impeachment proceeding.  (V.A.C.S. Art. 5962 (part).)
 334-11        Sec. 665.007.  CUMULATIVE REMEDY.  The remedy of impeachment
 334-12  as provided in this chapter is cumulative of all other remedies
 334-13  regarding the impeachment or removal of public officers.  (V.A.C.S.
 334-14  Art. 5961 (part).)
 334-15           (Sections 665.008-665.020 reserved for expansion)
 334-16               SUBCHAPTER B.  REMOVAL AFTER IMPEACHMENT
 334-17        Sec. 665.021.  SENATE MEETS AS COURT OF IMPEACHMENT.  If the
 334-18  house prefers articles of impeachment against an individual, the
 334-19  senate shall meet as a court of impeachment in a trial of the
 334-20  individual in the manner provided by Article XV of the Texas
 334-21  Constitution.  (V.A.C.S. Art. 5963(a).)
 334-22        Sec. 665.022.  PROCEDURE WHEN SENATE IS IN SESSION.  (a)  If
 334-23  the senate is in a regular or called session when articles of
 334-24  impeachment are preferred by the house, the senate shall receive
 334-25  the articles when they are presented.  The senate shall set a day
 334-26  and time to resolve into a court of impeachment to consider the
 334-27  articles.
  335-1        (b)  The senate may continue in session as a court of
  335-2  impeachment beyond the end of the session for legislative purposes
  335-3  or may adjourn as a court of impeachment to a day and time set by
  335-4  the senate.  (V.A.C.S. Art. 5963(b).)
  335-5        Sec. 665.023.  PROCEDURE WHEN SENATE IS NOT IN SESSION.  (a)
  335-6  If the senate is not in a regular or called session when articles
  335-7  of impeachment are preferred by the house, the house shall deliver
  335-8  by personal messenger or certified or registered mail a certified
  335-9  copy of the articles of impeachment to the governor, lieutenant
 335-10  governor, and each member of the senate.  A record of the
 335-11  deliveries and a copy of the record shall be delivered to the
 335-12  lieutenant governor and the president pro tempore of the senate.
 335-13        (b)  After the deliveries are made as required by Subsection
 335-14  (a), the senate shall be convened to consider the articles of
 335-15  impeachment:
 335-16              (1)  by proclamation of the governor; or
 335-17              (2)  if the governor fails to issue the proclamation
 335-18  within 10 days from the date the articles of impeachment are
 335-19  preferred by the house, by proclamation of the lieutenant governor;
 335-20  or
 335-21              (3)  if the lieutenant governor fails to issue the
 335-22  proclamation within 15 days from the date the articles of
 335-23  impeachment are preferred by the house, by proclamation of the
 335-24  president pro tempore of the senate; or
 335-25              (4)  if the president pro tempore of the senate fails
 335-26  to issue the proclamation within 20 days from the date the articles
 335-27  of impeachment are preferred by the house, by proclamation signed
  336-1  by a majority of the members of the senate.
  336-2        (c)  A proclamation issued under Subsection (b) must:
  336-3              (1)  be in writing;
  336-4              (2)  state the purposes for which the senate is to be
  336-5  convened;
  336-6              (3)  fix a date not later than the 20th day after the
  336-7  date of the issuance of the proclamation for convening the senate;
  336-8  and
  336-9              (4)  be published in at least three daily newspapers of
 336-10  general circulation.
 336-11        (d)  A copy of the proclamation shall be sent by registered
 336-12  or certified mail to each member of the senate and the lieutenant
 336-13  governor.
 336-14        (e)  The senate shall convene on the day set in the
 336-15  proclamation and receive the articles of impeachment.  The senate
 336-16  shall then act as a court of impeachment to consider the articles
 336-17  of impeachment.  (V.A.C.S. Art. 5963, Secs. (c), (d).)
 336-18        Sec. 665.024.  ADOPTION OF RULES.  The senate shall adopt
 336-19  rules of procedure when it resolves into a court of impeachment.
 336-20  After the senate has adopted the rules it shall consider the
 336-21  articles of impeachment.  (V.A.C.S. Art. 5963(e) (part).)
 336-22        Sec. 665.025.  CONVENING AND ADJOURNING SENATE.  The senate
 336-23  may recess or adjourn during the impeachment trial to a time to be
 336-24  set by the senate.  The senate may condition reconvening on the
 336-25  occurrence of an event specified in the motion.  (V.A.C.S. Art.
 336-26  5963(e) (part).)
 336-27        Sec. 665.026.  ATTENDANCE OF SENATORS.  Each member of the
  337-1  senate shall be in attendance when the senate is meeting as a court
  337-2  of impeachment.  (V.A.C.S. Art. 5963(e) (part).)
  337-3        Sec. 665.027.  POWERS OF SENATE MEETING AS A COURT OF
  337-4  IMPEACHMENT.  (a)  The senate may:
  337-5              (1)  send for persons, papers, books, and other
  337-6  documents;
  337-7              (2)  compel the giving of testimony;
  337-8              (3)  punish for contempt to the same extent as a
  337-9  district court;
 337-10              (4)  meet in closed session for purposes of
 337-11  deliberation; and
 337-12              (5)  exercise any other power necessary to carry out
 337-13  its duties under Article XV of the Texas Constitution.
 337-14        (b)  The senate may employ assistance to enforce and execute
 337-15  the lawful orders, mandates, writs, process, and precepts of the
 337-16  senate meeting as a court of impeachment.  (V.A.C.S. Art. 5963(f).)
 337-17        Sec. 665.028.  PER DIEM WHILE SENATE IS MEETING AS A COURT OF
 337-18  IMPEACHMENT.  (a)  When meeting as a court of impeachment the
 337-19  members of the senate and the lieutenant governor receive the same
 337-20  mileage and per diem as is provided for members of the legislature
 337-21  when it is in legislative session.
 337-22        (b)  If the senate is not in session as a court of
 337-23  impeachment for more than four consecutive days because of recess
 337-24  or adjournment, the members of the senate and the lieutenant
 337-25  governor are not entitled to the per diem for those days.
 337-26  (V.A.C.S. Art. 5963(g) (part).)
 337-27           (Sections 665.029-665.050 reserved for expansion)
  338-1                   SUBCHAPTER C.  REMOVAL BY ADDRESS
  338-2        Sec. 665.051.  INDIVIDUALS SUBJECT TO REMOVAL.  Only the
  338-3  following individuals are subject to removal from office by address
  338-4  under this subchapter:
  338-5              (1)  a justice of the supreme court;
  338-6              (2)  a judge of the court of criminal appeals;
  338-7              (3)  a justice of a court of appeals;
  338-8              (4)  a judge of a district court;
  338-9              (5)  a judge of a criminal district court;
 338-10              (6)  the commissioner of agriculture;
 338-11              (7)  the commissioner of insurance; and
 338-12              (8)  the banking commissioner.  (V.A.C.S. Art. 5964
 338-13  (part).)
 338-14        Sec. 665.052.  CAUSES FOR REMOVAL.  (a)  An individual may be
 338-15  removed from office by address for:
 338-16              (1)  wilful neglect of duty;
 338-17              (2)  incompetency;
 338-18              (3)  habitual drunkenness;
 338-19              (4)  oppression in office;
 338-20              (5)  breach of trust; or
 338-21              (6)  any other reasonable cause that is not a
 338-22  sufficient ground for impeachment.
 338-23        (b)  In this section, "incompetency" means:
 338-24              (1)  gross ignorance of official duties;
 338-25              (2)  gross carelessness in the discharge of official
 338-26  duties; or
 338-27              (3)  inability or unfitness to discharge promptly and
  339-1  properly official duties because of a serious physical or mental
  339-2  defect that did not exist at the time of the officer's election.
  339-3  (V.A.C.S. Arts. 5964 (part), 5972.)
  339-4        Sec. 665.053.  NOTICE AND HEARING.  (a)  Notice of the reason
  339-5  for removal by address must be given to the officer who is to be
  339-6  removed.
  339-7        (b)  The officer must be allowed to appear at a hearing in
  339-8  the officer's defense before the vote for removal by address is
  339-9  taken.
 339-10        (c)  The cause for removal shall be stated at length in the
 339-11  address and entered in the journal of each house.  (V.A.C.S. Art.
 339-12  5964 (part).)
 339-13        Sec. 665.054.  REMOVAL VOTE.  (a)  The governor shall remove
 339-14  from office a person on the address of two-thirds of each house of
 339-15  the legislature.
 339-16        (b)  The vote of each member shall be recorded in the journal
 339-17  of each house.  (V.A.C.S. Art. 5964 (part).)
 339-18           (Sections 665.055-665.080 reserved for expansion)
 339-19                SUBCHAPTER D.  OTHER REMOVAL PROVISIONS
 339-20        Sec. 665.081.  NO REMOVAL FOR ACTS COMMITTED BEFORE ELECTION
 339-21  TO OFFICE.  (a)  An officer in this state may not be removed from
 339-22  office for an act the officer may have committed before the
 339-23  officer's election to office.
 339-24        (b)  The prohibition against the removal from office for an
 339-25  act the officer commits before the officer's election is covered
 339-26  by:
 339-27              (1)  Section 21.002, Local Government Code, for a mayor
  340-1  or alderman of a general law municipality; or
  340-2              (2)  Chapter 87, Local Government Code, for a county or
  340-3  precinct officer.  (V.A.C.S. Art. 5986.)
  340-4                     TITLE 10.  GENERAL GOVERNMENT
  340-5          SUBTITLE A.  ADMINISTRATIVE PROCEDURE AND PRACTICE
  340-6  Chapter 2001.  ADMINISTRATIVE PROCEDURE
  340-7  Chapter 2002.  TEXAS REGISTER AND ADMINISTRATIVE CODE
  340-8  Chapter 2003.  STATE OFFICE OF ADMINISTRATIVE HEARINGS
  340-9  Chapter 2004.  REPRESENTATION BEFORE STATE AGENCIES
 340-10  Chapter 2005.  PERMIT PROCESSING
 340-11  Chapter 2006.  AGENCY ACTIONS AFFECTING SMALL BUSINESSES
 340-12              (Chapters 2007-2050 reserved for expansion)
 340-13                 SUBTITLE B.  INFORMATION AND PLANNING
 340-14  Chapter 2051.  GOVERNMENT DOCUMENTS, PUBLICATIONS, AND NOTICES
 340-15  Chapter 2052.  STATE AGENCY REPORTS AND PUBLICATIONS
 340-16  Chapter 2053.  REPORT BY GOVERNOR ON ORGANIZATION AND EFFICIENCY OF
 340-17                   STATE AGENCIES
 340-18  Chapter 2054.  INFORMATION RESOURCES
 340-19  Chapter 2055.  FACULTY INFORMATION AND RESEARCH SERVICE FOR TEXAS
 340-20                   COMMITTEE
 340-21  Chapter 2056.  STRATEGIC PLANS OF OPERATION
 340-22  Chapter 2057.  CAPITAL IMPROVEMENT PLAN
 340-23  Chapter 2058.  RECOGNITION OF FEDERAL CENSUS
 340-24              (Chapters 2059-2100 reserved for expansion)
 340-25  SUBTITLE C.  STATE ACCOUNTING, FISCAL MANAGEMENT, AND PRODUCTIVITY
 340-26  Chapter 2101.  ACCOUNTING PROCEDURES
 340-27  Chapter 2102.  INTERNAL AUDITING
  341-1  Chapter 2103.  EXPENDITURES BY STATE AGENCIES
  341-2  Chapter 2104.  CONSERVATORSHIP AS A RESULT OF FISCAL MISMANAGEMENT
  341-3  Chapter 2105.  ADMINISTRATION OF BLOCK GRANTS
  341-4  Chapter 2106.  INDIRECT COST RECOVERY PROGRAM
  341-5  Chapter 2107.  COLLECTION OF DELINQUENT OBLIGATIONS TO STATE
  341-6  Chapter 2108.  EMPLOYEE INCENTIVE AND AGENCY PRODUCTIVITY
  341-7  Chapter 2109.  VOLUNTEERS
  341-8              (Chapters 2110-2150 reserved for expansion)
  341-9          SUBTITLE D.  STATE PURCHASING AND GENERAL SERVICES
 341-10              (Chapters 2151-2200 reserved for expansion)
 341-11                   SUBTITLE E.  GOVERNMENT PROPERTY
 341-12  Chapter 2201.  TEXAS CAPITAL TRUST FUND
 341-13  Chapter 2202.  SURPLUS PROPERTY AGENCY
 341-14  Chapter 2203.  USE OF STATE PROPERTY
 341-15  Chapter 2204.  ACQUISITION OF LAND FOR STATE AND FEDERAL PURPOSES
 341-16  Chapter 2205.  AIRCRAFT POOLING
 341-17              (Chapters 2206-2250 reserved for expansion)
 341-18      SUBTITLE F.  STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT
 341-19  Chapter 2251.  PAYMENT FOR GOODS AND SERVICES
 341-20  Chapter 2252.  CONTRACTS WITH GOVERNMENTAL ENTITY
 341-21  Chapter 2253.  PUBLIC WORK PERFORMANCE AND PAYMENT BONDS
 341-22  Chapter 2254.  PROFESSIONAL AND CONSULTING SERVICES
 341-23  Chapter 2255.  PRIVATE DONORS OR ORGANIZATIONS
 341-24  Chapter 2256.  PUBLIC FUNDS INVESTMENT
 341-25  Chapter 2257.  COLLATERAL FOR PUBLIC FUNDS
 341-26              (Chapters 2258-2300 reserved for expansion)
 341-27    SUBTITLE G.  ECONOMIC DEVELOPMENT PROGRAMS INVOLVING BOTH STATE
  342-1                         AND LOCAL GOVERNMENTS
  342-2  Chapter 2301.  SUPERCONDUCTING SUPER COLLIDER FACILITY RESEARCH
  342-3                    AUTHORITY
  342-4  Chapter 2302.  COGENERATION
  342-5  Chapter 2303.  ENTERPRISE ZONES
  342-6  Chapter 2304.  HOUSING REHABILITATION
  342-7  Chapter 2305.  RESTITUTION FOR OIL OVERCHARGES
  342-8  Chapter 2306.  TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
  342-9                CHAPTER 2001.  ADMINISTRATIVE PROCEDURE
 342-10                   SUBCHAPTER A.  GENERAL PROVISIONS
 342-11  Sec. 2001.001.  PURPOSE
 342-12  Sec. 2001.002.  SHORT TITLE
 342-13  Sec. 2001.003.  DEFINITIONS
 342-14  Sec. 2001.004.  REQUIREMENT TO ADOPT RULES OF PRACTICE
 342-15                    AND INDEX RULES, ORDERS, AND DECISIONS
 342-16  Sec. 2001.005.  RULE, ORDER, OR DECISION NOT EFFECTIVE UNTIL
 342-17                    INDEXED
 342-18          (Sections 2001.006-2001.020 reserved for expansion)
 342-19                       SUBCHAPTER B.  RULEMAKING
 342-20  Sec. 2001.021.  PETITION FOR ADOPTION OF RULES
 342-21  Sec. 2001.022.  LOCAL EMPLOYMENT IMPACT STATEMENTS
 342-22  Sec. 2001.023.  NOTICE OF PROPOSED RULE
 342-23  Sec. 2001.024.  CONTENT OF NOTICE
 342-24  Sec. 2001.025.  EFFECTIVE DATE OF NOTICE
 342-25  Sec. 2001.026.  NOTICE TO PERSONS REQUESTING ADVANCE NOTICE OF
 342-26                    PROPOSED RULES
 342-27  Sec. 2001.027.  WITHDRAWAL OF PROPOSED RULE
  343-1  Sec. 2001.028.  NOTICE OF PROPOSED LAW ENFORCEMENT RULES
  343-2  Sec. 2001.029.  PUBLIC COMMENT
  343-3  Sec. 2001.030.  STATEMENT OF REASONS FOR OR AGAINST ADOPTION
  343-4  Sec. 2001.031.  INFORMAL CONFERENCES AND ADVISORY COMMITTEES
  343-5  Sec. 2001.032.  LEGISLATIVE REVIEW
  343-6  Sec. 2001.033.  STATE AGENCY ORDER ADOPTING RULE
  343-7  Sec. 2001.034.  EMERGENCY RULEMAKING
  343-8  Sec. 2001.035.  SUBSTANTIAL COMPLIANCE REQUIREMENT; TIME LIMIT
  343-9                    ON PROCEDURAL CHALLENGE
 343-10  Sec. 2001.036.  EFFECTIVE DATE OF RULES; EFFECT OF FILING WITH
 343-11                    SECRETARY OF STATE
 343-12  Sec. 2001.037.  OFFICIAL TEXT OF RULE
 343-13  Sec. 2001.038.  DECLARATORY JUDGMENT
 343-14          (Sections 2001.039-2001.050 reserved for expansion)
 343-15    SUBCHAPTER C.  CONTESTED CASES:  GENERAL RIGHTS AND PROCEDURES
 343-16  Sec. 2001.051.  OPPORTUNITY FOR HEARING AND PARTICIPATION;
 343-17                    NOTICE OF HEARING
 343-18  Sec. 2001.052.  CONTENTS OF NOTICE
 343-19  Sec. 2001.053.  RIGHT TO COUNSEL
 343-20  Sec. 2001.054.  LICENSES
 343-21  Sec. 2001.055.  INTERPRETERS FOR DEAF OR HEARING IMPAIRED
 343-22                    PARTIES AND WITNESSES
 343-23  Sec. 2001.056.  INFORMAL DISPOSITION OF CONTESTED CASE
 343-24  Sec. 2001.057.  CONTINUANCES
 343-25  Sec. 2001.058.  HEARING CONDUCTED BY STATE OFFICE OF
 343-26                    ADMINISTRATIVE HEARINGS
 343-27  Sec. 2001.059.  TRANSCRIPT
  344-1  Sec. 2001.060.  RECORD
  344-2  Sec. 2001.061.  EX PARTE CONSULTATIONS
  344-3  Sec. 2001.062.  EXAMINATION OF RECORD BY STATE AGENCY; PROPOSAL
  344-4                    FOR DECISION
  344-5          (Sections 2001.063-2001.080 reserved for expansion)
  344-6  SUBCHAPTER D.  CONTESTED CASES:  EVIDENCE, WITNESSES, AND DISCOVERY
  344-7  Sec. 2001.081.  RULES OF EVIDENCE
  344-8  Sec. 2001.082.  EXCLUSION OF EVIDENCE
  344-9  Sec. 2001.083.  PRIVILEGE
 344-10  Sec. 2001.084.  OBJECTIONS TO EVIDENCE
 344-11  Sec. 2001.085.  WRITTEN EVIDENCE
 344-12  Sec. 2001.086.  DOCUMENTARY EVIDENCE
 344-13  Sec. 2001.087.  CROSS-EXAMINATION
 344-14  Sec. 2001.088.  WITNESSES
 344-15  Sec. 2001.089.  ISSUANCE OF SUBPOENA
 344-16  Sec. 2001.090.  OFFICIAL NOTICE; STATE AGENCY EVALUATION OF
 344-17                    EVIDENCE
 344-18  Sec. 2001.091.  DISCOVERY FROM PARTIES:  ORDERS FOR PRODUCTION
 344-19                    OR INSPECTION
 344-20  Sec. 2001.092.  DISCOVERY FROM PARTIES:  IDENTITY OF WITNESS OR
 344-21                    POTENTIAL PARTY; EXPERT REPORTS
 344-22  Sec. 2001.093.  DISCOVERY FROM PARTIES:  COPY OF
 344-23                    PREVIOUS STATEMENT
 344-24  Sec. 2001.094.  ISSUANCE OF COMMISSION REQUIRING DEPOSITION
 344-25  Sec. 2001.095.  DEPOSITION OF STATE AGENCY BOARD MEMBER
 344-26  Sec. 2001.096.  PLACE OF DEPOSITION
 344-27  Sec. 2001.097.  OBJECTIONS TO DEPOSITION TESTIMONY
  345-1  Sec. 2001.098.  PREPARATION OF DEPOSITION
  345-2  Sec. 2001.099.  SUBMISSION OF DEPOSITION TO WITNESS;
  345-3                    SIGNATURE
  345-4  Sec. 2001.100.  RETURN OF DEPOSITION TO STATE AGENCY
  345-5  Sec. 2001.101.  OPENING OF DEPOSITION BY STATE AGENCY
  345-6                    EMPLOYEE
  345-7  Sec. 2001.102.  USE OF DEPOSITION
  345-8  Sec. 2001.103.  MILEAGE AND PER DIEM OF WITNESS OR DEPONENT
  345-9          (Sections 2001.104-2001.120 reserved for expansion)
 345-10          SUBCHAPTER E.  CONTESTED CASES:  TESTIMONY OF CHILD
 345-11  Sec. 2001.121.  STATEMENT OR TESTIMONY BY CERTAIN CHILD ABUSE
 345-12                    VICTIMS
 345-13  Sec. 2001.122.  HEARSAY STATEMENT OF CHILD ABUSE VICTIM
 345-14          (Sections 2001.123-2001.140 reserved for expansion)
 345-15     SUBCHAPTER F.  CONTESTED CASES:  FINAL DECISIONS AND ORDERS;
 345-16                         MOTIONS FOR REHEARING
 345-17  Sec. 2001.141.  FORM OF DECISION; FINDINGS OF FACT AND
 345-18                    CONCLUSIONS OF LAW
 345-19  Sec. 2001.142.  NOTIFICATION OF DECISIONS AND ORDERS
 345-20  Sec. 2001.143.  TIME OF RENDERING DECISION
 345-21  Sec. 2001.144.  DECISIONS; WHEN FINAL
 345-22  Sec. 2001.145.  MOTIONS FOR REHEARING:  PREREQUISITES TO
 345-23                    APPEAL
 345-24  Sec. 2001.146.  MOTIONS FOR REHEARING:  PROCEDURES
 345-25  Sec. 2001.147.  AGREEMENT TO MODIFY TIME LIMITS
 345-26          (Sections 2001.148-2001.170 reserved for expansion)
 345-27           SUBCHAPTER G.  CONTESTED CASES:  JUDICIAL REVIEW
  346-1  Sec. 2001.171.  JUDICIAL REVIEW
  346-2  Sec. 2001.172.  SCOPE OF JUDICIAL REVIEW
  346-3  Sec. 2001.173.  TRIAL DE NOVO REVIEW
  346-4  Sec. 2001.174.  REVIEW UNDER SUBSTANTIAL EVIDENCE RULE OR
  346-5                    UNDEFINED SCOPE OF REVIEW
  346-6  Sec. 2001.175.  PROCEDURES FOR REVIEW UNDER SUBSTANTIAL EVIDENCE
  346-7                    RULE OR UNDEFINED SCOPE OF REVIEW
  346-8  Sec. 2001.176.  PETITION INITIATING JUDICIAL REVIEW
  346-9  Sec. 2001.177.  COST OF PREPARING AGENCY RECORD
 346-10  Sec. 2001.178.  CUMULATIVE EFFECT
 346-11          (Sections 2001.179-2001.200 reserved for expansion)
 346-12                   SUBCHAPTER H.  COURT ENFORCEMENT
 346-13  Sec. 2001.201.  COURT ENFORCEMENT OF SUBPOENA OR COMMISSION
 346-14  Sec. 2001.202.  COURT ENFORCEMENT OF FINAL ORDERS, DECISIONS,
 346-15                    AND RULES
 346-16          (Sections 2001.203-2001.220 reserved for expansion)
 346-17                       SUBCHAPTER I.  EXCEPTIONS
 346-18  Sec. 2001.221.  DRIVER'S LICENSES
 346-19  Sec. 2001.222.  STATE AGENCY PERSONNEL RULES AND PRACTICES
 346-20  Sec. 2001.223.  EXCEPTIONS FROM DECLARATORY JUDGMENT, COURT
 346-21                    ENFORCEMENT, AND CONTESTED CASE PROVISIONS
 346-22  Sec. 2001.224.  TEXAS EMPLOYMENT COMMISSION
 346-23  Sec. 2001.225.  CERTAIN ALCOHOLIC BEVERAGE CODE APPEALS
 346-24          (Sections 2001.226-2001.900 reserved for expansion)
 346-25                     SUBCHAPTER Z.  MISCELLANEOUS
 346-26  Sec. 2001.901.  APPEAL FROM DISTRICT COURT
 346-27  Sec. 2001.902.  SAVINGS CLAUSE
  347-1                     TITLE 10.  GENERAL GOVERNMENT
  347-2          SUBTITLE A.  ADMINISTRATIVE PROCEDURE AND PRACTICE
  347-3                CHAPTER 2001.  ADMINISTRATIVE PROCEDURE
  347-4                   SUBCHAPTER A.  GENERAL PROVISIONS
  347-5        Sec. 2001.001.  PURPOSE.  It is the public policy of the
  347-6  state through this chapter to:
  347-7              (1)  provide minimum standards of uniform practice and
  347-8  procedure for state agencies;
  347-9              (2)  provide for public participation in the rulemaking
 347-10  process; and
 347-11              (3)  restate the law of judicial review of state agency
 347-12  action.  (V.A.C.S. Art. 6252-13a, Sec. 1.)
 347-13        Sec. 2001.002.  SHORT TITLE.  This chapter may be cited as
 347-14  the Administrative Procedure Act.  (V.A.C.S. Art. 6252-13a, Sec.
 347-15  2.)
 347-16        Sec. 2001.003.  DEFINITIONS.  In this chapter:
 347-17              (1)  "Contested case" means a proceeding, including a
 347-18  ratemaking or licensing proceeding, in which the legal rights,
 347-19  duties, or privileges of a party are to be determined by a state
 347-20  agency after an opportunity for adjudicative hearing.
 347-21              (2)  "License" includes the whole or a part of a state
 347-22  agency permit, certificate, approval, registration, or similar form
 347-23  of permission required by law.
 347-24              (3)  "Licensing" includes a state agency process
 347-25  relating to the granting, denial, renewal, revocation, suspension,
 347-26  annulment, withdrawal, or amendment of a license.
 347-27              (4)  "Party" means a person or state agency named or
  348-1  admitted as a party.
  348-2              (5)  "Person" means an individual, partnership,
  348-3  corporation, association, governmental subdivision, or public or
  348-4  private organization that is not a state agency.
  348-5              (6)  "Rule":
  348-6                    (A)  means a state agency statement of general
  348-7  applicability that:
  348-8                          (i)  implements, interprets, or prescribes
  348-9  law or policy; or
 348-10                          (ii)  describes the procedure or practice
 348-11  requirements of a state agency;
 348-12                    (B)  includes the amendment or repeal of a prior
 348-13  rule; and
 348-14                    (C)  does not include a statement regarding only
 348-15  the internal management or organization of a state agency and not
 348-16  affecting private rights or procedures.
 348-17              (7)  "State agency" means a state officer, board,
 348-18  commission, or department with statewide jurisdiction that makes
 348-19  rules or determines contested cases.  The term includes the State
 348-20  Office of Administrative Hearings for the purpose of determining
 348-21  contested cases.  The term does not include:
 348-22                    (A)  a state agency wholly financed by federal
 348-23  money;
 348-24                    (B)  the legislature;
 348-25                    (C)  the courts;
 348-26                    (D)  the Texas Workers' Compensation Commission;
 348-27  or
  349-1                    (E)  an institution of higher education.
  349-2  (V.A.C.S. Art. 6252-13a, Sec. 3 (part).)
  349-3        Sec. 2001.004.  REQUIREMENT TO ADOPT RULES OF PRACTICE AND
  349-4  INDEX RULES, ORDERS, AND DECISIONS.  In addition to other
  349-5  requirements under law, a state agency shall:
  349-6              (1)  adopt rules of practice stating the nature and
  349-7  requirements of all available formal and informal procedures;
  349-8              (2)  index, cross-index to statute, and make available
  349-9  for public inspection all rules and other written statements of
 349-10  policy or interpretations that are prepared, adopted, or used by
 349-11  the agency in discharging its functions; and
 349-12              (3)  index, cross-index to statute, and make available
 349-13  for public inspection all final orders, decisions, and opinions.
 349-14  (V.A.C.S. Art. 6252-13a, Sec. 4(a).)
 349-15        Sec. 2001.005.  RULE, ORDER, OR DECISION NOT EFFECTIVE UNTIL
 349-16  INDEXED.  (a)  A state agency rule, order, or decision made or
 349-17  issued on or after January 1, 1976, is not valid or effective
 349-18  against a person or party, and may not be invoked by an agency,
 349-19  until the agency has indexed the rule, order, or decision and made
 349-20  it available for public inspection as required by this chapter.
 349-21        (b)  This section does not apply in favor of a person or
 349-22  party that has actual knowledge of the rule, order, or decision.
 349-23  (V.A.C.S. Art. 6252-13a, Sec. 4(b).)
 349-24          (Sections 2001.006-2001.020 reserved for expansion)
 349-25                       SUBCHAPTER B.  RULEMAKING
 349-26        Sec. 2001.021.  PETITION FOR ADOPTION OF RULES.  (a)  An
 349-27  interested person by petition to a state agency may request the
  350-1  adoption of a rule.
  350-2        (b)  A state agency by rule shall prescribe the form for a
  350-3  petition under this section and the procedure for its submission,
  350-4  consideration, and disposition.
  350-5        (c)  Not later than the 60th day after the date of submission
  350-6  of a petition under this section, a state agency shall:
  350-7              (1)  deny the petition in writing, stating its reasons
  350-8  for the denial; or
  350-9              (2)  initiate a rulemaking proceeding under this
 350-10  subchapter.  (V.A.C.S. Art. 6252-13a, Sec. 11.)
 350-11        Sec. 2001.022.  LOCAL EMPLOYMENT IMPACT STATEMENTS.  (a)  At
 350-12  the request of a state agency, the Texas Employment Commission
 350-13  shall prepare a local employment impact statement for a proposed
 350-14  rule.  The impact statement must describe in detail the probable
 350-15  effect of the rule on employment in each geographic area affected
 350-16  by the rule for each year of the first five years that the rule
 350-17  will be in effect and may include other factors at the commission's
 350-18  discretion.
 350-19        (b)  A state agency shall determine whether a rule may affect
 350-20  a local economy before proposing the rule for adoption.  If a state
 350-21  agency determines that a proposed rule may affect a local economy,
 350-22  the agency shall submit to the commission a copy of the proposed
 350-23  rule and other initial information that the commission requires on
 350-24  a form prescribed by the commission.
 350-25        (c)  A state agency shall submit a proposed rule to the
 350-26  commission under this section not later than the 30th day before
 350-27  the date on which the agency files notice of the proposed rule with
  351-1  the secretary of state.
  351-2        (d)  A state agency shall designate a liaison to furnish
  351-3  information requested by the commission during preparation of a
  351-4  local employment impact statement.
  351-5        (e)  The commission shall deliver the local employment impact
  351-6  statement to a state agency not later than the 25th day after the
  351-7  date on which the commission receives the proposed rule.  If the
  351-8  commission does not deliver the statement within this period, the
  351-9  proposed rule is presumed not to affect local employment.
 351-10        (f)  A local employment impact statement must show:
 351-11              (1)  the name and title of the commission employee or
 351-12  officer responsible for preparing or approving it; and
 351-13              (2)  the name and title of the state agency liaison.
 351-14        (g)  This section does not apply to the adoption of an
 351-15  emergency rule.
 351-16        (h)  Failure to comply with this section does not impair the
 351-17  legal effect of a rule adopted under this chapter.  (V.A.C.S. Art.
 351-18  6252-13a, Sec. 4A.)
 351-19        Sec. 2001.023.  NOTICE OF PROPOSED RULE.  (a)  A state agency
 351-20  shall give at least 30 days' notice of its intention to adopt a
 351-21  rule before it adopts the rule.
 351-22        (b)  A state agency shall file notice of the proposed rule
 351-23  with the secretary of state for publication in the Texas Register
 351-24  in the manner prescribed by Chapter 2002.  (V.A.C.S. Art. 6252-13a,
 351-25  Sec. 5(a) (part).)
 351-26        Sec. 2001.024.  CONTENT OF NOTICE.  The notice of a proposed
 351-27  rule must include:
  352-1              (1)  a brief explanation of the proposed rule;
  352-2              (2)  the text of the proposed rule, except any portion
  352-3  omitted under Section 2002.014, prepared in a manner to indicate
  352-4  any words to be added or deleted from the current text;
  352-5              (3)  a statement of the statutory or other authority
  352-6  under which the rule is proposed to be adopted, including:
  352-7                    (A)  a concise explanation of the particular
  352-8  statutory or other provisions under which the rule is proposed;
  352-9                    (B)  the section or article of the code affected;
 352-10  and
 352-11                    (C)  a certification that the proposed rule has
 352-12  been reviewed by legal counsel and found to be within the state
 352-13  agency's authority to adopt;
 352-14              (4)  a fiscal note showing the name and title of the
 352-15  officer or employee responsible for preparing or approving the note
 352-16  and stating for each year of the first five years that the rule
 352-17  will be in effect:
 352-18                    (A)  the additional estimated cost to the state
 352-19  and to local governments expected as a result of enforcing or
 352-20  administering the rule;
 352-21                    (B)  the estimated reductions in costs to the
 352-22  state and to local governments as a result of enforcing or
 352-23  administering the rule;
 352-24                    (C)  the estimated loss or increase in revenue to
 352-25  the state or to local governments as a result of enforcing or
 352-26  administering the rule; and
 352-27                    (D)  if applicable, that enforcing or
  353-1  administering the rule does not have foreseeable implications
  353-2  relating to cost or revenues of the state or local governments;
  353-3              (5)  a note about public benefits and costs showing the
  353-4  name and title of the officer or employee responsible for preparing
  353-5  or approving the note and stating for each year of the first five
  353-6  years that the rule will be in effect:
  353-7                    (A)  the public benefits expected as a result of
  353-8  adoption of the proposed rule; and
  353-9                    (B)  the probable economic cost to persons
 353-10  required to comply with the rule;
 353-11              (6)  the local employment impact statement prepared
 353-12  under Section 2001.022, if required;
 353-13              (7)  a request for comments on the proposed rule from
 353-14  any interested person; and
 353-15              (8)  any other statement required by law.  (V.A.C.S.
 353-16  Art. 6252-13a, Sec. 5(a) (part).)
 353-17        Sec. 2001.025.  EFFECTIVE DATE OF NOTICE.  Notice of a
 353-18  proposed rule becomes effective as notice when published in the
 353-19  Texas Register, except as provided by Section 2001.028.  (V.A.C.S.
 353-20  Art. 6252-13a, Sec. 5(b) (part).)
 353-21        Sec. 2001.026.  NOTICE TO PERSONS REQUESTING ADVANCE NOTICE
 353-22  OF PROPOSED RULES.  A state agency shall mail notice of a proposed
 353-23  rule to each person who has made a timely written request of the
 353-24  agency for advance notice of its rulemaking proceedings.  Failure
 353-25  to mail the notice does not invalidate an action taken or rule
 353-26  adopted.  (V.A.C.S. Art. 6252-13a, Sec. 5(b) (part).)
 353-27        Sec. 2001.027.  WITHDRAWAL OF PROPOSED RULE.  A proposed rule
  354-1  is withdrawn six months after the date of publication of notice of
  354-2  the proposed rule in the Texas Register if a state agency has
  354-3  failed by that time to adopt, adopt as amended, or withdraw the
  354-4  proposed rule.  (V.A.C.S. Art. 6252-13a, Sec. 5(b) (part).)
  354-5        Sec. 2001.028.  NOTICE OF PROPOSED LAW ENFORCEMENT RULES.
  354-6  Notice of the adoption of a proposed rule by the Commission on Jail
  354-7  Standards or the Commission on Law Enforcement Officer Standards
  354-8  and Education that affects a law enforcement agency of the state or
  354-9  of a political subdivision of the state is not effective until the
 354-10  notice is:
 354-11              (1)  published as required by Section 2001.023; and
 354-12              (2)  mailed to each law enforcement agency that may be
 354-13  affected by the proposed rule.  (V.A.C.S. Art. 6252-13a, Sec.
 354-14  5(h).)
 354-15        Sec. 2001.029.  PUBLIC COMMENT.  (a)  Before adopting a rule,
 354-16  a state agency shall give all interested persons a reasonable
 354-17  opportunity to submit data, views, or arguments, orally or in
 354-18  writing.
 354-19        (b)  A state agency shall grant an opportunity for a public
 354-20  hearing before it adopts a substantive rule if a public hearing is
 354-21  requested by:
 354-22              (1)  at least 25 persons;
 354-23              (2)  a governmental subdivision or agency; or
 354-24              (3)  an association having at least 25 members.
 354-25        (c)  A state agency shall consider fully all written and oral
 354-26  submissions about a proposed rule.  (V.A.C.S. Art. 6252-13a, Sec.
 354-27  5(c) (part).)
  355-1        Sec. 2001.030.  STATEMENT OF REASONS FOR OR AGAINST ADOPTION.
  355-2  On adoption of a rule, a state agency, if requested to do so by an
  355-3  interested person either before adoption or not later than the 30th
  355-4  day after the date of adoption, shall issue a concise statement of
  355-5  the principal reasons for and against its adoption.  The agency
  355-6  shall include in the statement its reasons for overruling the
  355-7  considerations urged against adoption.  (V.A.C.S. Art. 6252-13a,
  355-8  Sec. 5(c) (part).)
  355-9        Sec. 2001.031.  INFORMAL CONFERENCES AND ADVISORY COMMITTEES.
 355-10  (a)  A state agency may use an informal conference or consultation
 355-11  to obtain the opinions and advice of interested persons about
 355-12  contemplated rulemaking.
 355-13        (b)  A state agency may appoint committees of experts or
 355-14  interested persons or representatives of the public to advise the
 355-15  agency about contemplated rulemaking.
 355-16        (c)  The power of a committee appointed under this section is
 355-17  advisory only.   (V.A.C.S. Art. 6252-13a, Sec. 5(f).)
 355-18        Sec. 2001.032.  LEGISLATIVE REVIEW.  (a)  Each house of the
 355-19  legislature by rule shall establish a process under which the
 355-20  presiding officer of each house refers each proposed state agency
 355-21  rule to the appropriate standing committee for review before the
 355-22  rule is adopted.
 355-23        (b)  A state agency shall deliver to the lieutenant governor
 355-24  and the speaker of the house of representatives a copy of the
 355-25  notice of a proposed rule when the agency files notice with the
 355-26  secretary of state under Section 2001.023.
 355-27        (c)  On the vote of a majority of its members, a standing
  356-1  committee may send to a state agency a statement supporting or
  356-2  opposing adoption of a proposed rule.  (V.A.C.S. Art. 6252-13a,
  356-3  Sec. 5(g).)
  356-4        Sec. 2001.033.  STATE AGENCY ORDER ADOPTING RULE.  A state
  356-5  agency order finally adopting a rule must include:
  356-6              (1)  a reasoned justification of the rule, including:
  356-7                    (A)  a summary of comments received from parties
  356-8  interested in the rule that shows the names of interested groups or
  356-9  associations offering comment on the rule and whether they were for
 356-10  or against its adoption;
 356-11                    (B)  a restatement of the rule's factual basis;
 356-12  and
 356-13                    (C)  the reasons why the agency disagrees with
 356-14  party submissions and proposals;
 356-15              (2)  a concise restatement of the particular statutory
 356-16  provisions under which the rule is adopted and of how the agency
 356-17  interprets the provisions as authorizing or requiring the rule; and
 356-18              (3)  a certification that the rule, as adopted, has
 356-19  been reviewed by legal counsel and found to be a valid exercise of
 356-20  the agency's legal authority.  (V.A.C.S. Art. 6252-13a, Sec.
 356-21  5(c-1).)
 356-22        Sec. 2001.034.  EMERGENCY RULEMAKING.  (a)  A state agency
 356-23  may adopt an emergency rule without prior notice or hearing, or
 356-24  with an abbreviated notice and a hearing that it finds practicable,
 356-25  if the agency:
 356-26              (1)  finds that an imminent peril to the public health,
 356-27  safety, or welfare, or a requirement of state or federal law,
  357-1  requires adoption of a rule on fewer than 30 days' notice; and
  357-2              (2)  states in writing the reasons for its finding
  357-3  under Subdivision (1).
  357-4        (b)  A state agency shall set forth in an emergency rule's
  357-5  preamble the finding required by Subsection (a).
  357-6        (c)  A rule adopted under this section may be effective for
  357-7  not longer than 120 days and may be renewed once for not longer
  357-8  than 60 days.  An identical rule may be adopted under Sections
  357-9  2001.023 and 2001.029.
 357-10        (d)  A state agency shall file an emergency rule adopted
 357-11  under this section and the agency's written reasons for the
 357-12  adoption in the office of the secretary of state for publication in
 357-13  the Texas Register in the manner prescribed by Chapter 2002.
 357-14  (V.A.C.S. Art. 6252-13a, Sec. 5(d).)
 357-15        Sec. 2001.035.  SUBSTANTIAL COMPLIANCE REQUIREMENT; TIME
 357-16  LIMIT ON PROCEDURAL CHALLENGE.  (a)  A rule adopted after January
 357-17  1, 1976, is not valid unless a state agency adopts it in
 357-18  substantial compliance with Sections 2001.023-2001.034.
 357-19        (b)  A proceeding to contest a rule on the ground of
 357-20  noncompliance with the procedural requirements of Sections
 357-21  2001.023-2001.034 must begin not later than the second anniversary
 357-22  of the effective date of the rule.  (V.A.C.S. Art. 6252-13a, Sec.
 357-23  5(e).)
 357-24        Sec. 2001.036.  EFFECTIVE DATE OF RULES; EFFECT OF FILING
 357-25  WITH SECRETARY OF STATE.  (a)  A rule takes effect 20 days after
 357-26  the date on which it is filed in the office of the secretary of
 357-27  state, except that:
  358-1              (1)  if a later date is required by statute or
  358-2  specified in the rule, the later date is the effective date;
  358-3              (2)  if a state agency finds that an expedited
  358-4  effective date is necessary because of imminent peril to the public
  358-5  health, safety, or welfare, and subject to applicable
  358-6  constitutional or statutory provisions, a rule is effective
  358-7  immediately on filing with the secretary of state, or on a stated
  358-8  date less than 20 days after the filing date; and
  358-9              (3)  if a federal statute or regulation requires that a
 358-10  state agency implement a rule by a certain date, the rule is
 358-11  effective on the prescribed date.
 358-12        (b)  A state agency finding described by Subsection (a)(2)
 358-13  and a brief statement of the reasons for the finding shall be filed
 358-14  with the rule.  The agency shall take appropriate measures to make
 358-15  emergency rules known to persons who may be affected by them.
 358-16        (c)  A rule adopted as provided by Subsection (a)(3) shall be
 358-17  filed in the office of the secretary of state and published in the
 358-18  Texas Register.  (V.A.C.S. Art. 6252-13a, Sec. 10.)
 358-19        Sec. 2001.037.  OFFICIAL TEXT OF RULE.  If there is a
 358-20  conflict, the official text of a rule is the text on file with the
 358-21  secretary of state and not the text published in the Texas Register
 358-22  or on file with the issuing state agency.  (V.A.C.S. Art. 6252-13a,
 358-23  Sec. 8(b).)
 358-24        Sec. 2001.038.  DECLARATORY JUDGMENT.  (a)  The validity or
 358-25  applicability of a rule, including an emergency rule adopted under
 358-26  Section 2001.034, may be determined in an action for declaratory
 358-27  judgment if it is alleged that the rule or its threatened
  359-1  application interferes with or impairs, or threatens to interfere
  359-2  with or impair, a legal right or privilege of the plaintiff.
  359-3        (b)  The action may be brought only in a Travis County
  359-4  district court.
  359-5        (c)  The state agency must be made a party to the action.
  359-6        (d)  A court may render a declaratory judgment without regard
  359-7  to whether the plaintiff requested the state agency to rule on the
  359-8  validity or applicability of the rule in question.
  359-9        (e)  An action brought under this section may not be used to
 359-10  delay or stay a hearing in which a suspension, revocation, or
 359-11  cancellation of a license by a state agency is at issue before the
 359-12  agency after notice of the hearing has been given.  (V.A.C.S. Art.
 359-13  6252-13a, Sec. 12.)
 359-14          (Sections 2001.039-2001.050 reserved for expansion)
 359-15    SUBCHAPTER C.  CONTESTED CASES:  GENERAL RIGHTS AND PROCEDURES
 359-16        Sec. 2001.051.  OPPORTUNITY FOR HEARING AND PARTICIPATION;
 359-17  NOTICE OF HEARING.  In a contested case, each party is entitled to
 359-18  an opportunity:
 359-19              (1)  for hearing after reasonable notice of not less
 359-20  than 10 days; and
 359-21              (2)  to respond and to present evidence and argument on
 359-22  each issue involved in the case.  (V.A.C.S. Art. 6252-13a, Secs.
 359-23  13(a), (d).)
 359-24        Sec. 2001.052.  CONTENTS OF NOTICE.  (a)  Notice of a hearing
 359-25  in a contested case must include:
 359-26              (1)  a statement of the time, place, and nature of the
 359-27  hearing;
  360-1              (2)  a statement of the legal authority and
  360-2  jurisdiction under which the hearing is to be held;
  360-3              (3)  a reference to the particular sections of the
  360-4  statutes and rules involved; and
  360-5              (4)  a short, plain statement of the matters asserted.
  360-6        (b)  If a state agency or other party is unable to state
  360-7  matters in detail at the time notice under this section is served,
  360-8  an initial notice may be limited to a statement of the issues
  360-9  involved.  On timely written application, a more definite and
 360-10  detailed statement shall be furnished not less than three days
 360-11  before the date set for the hearing.  (V.A.C.S. Art. 6252-13a,
 360-12  Secs. 13(b), (c).)
 360-13        Sec. 2001.053.  RIGHT TO COUNSEL.  (a)  Each party to a
 360-14  contested case is entitled to the assistance of counsel before a
 360-15  state agency.
 360-16        (b)  A party may expressly waive the right to assistance of
 360-17  counsel.  (V.A.C.S. Art. 6252-13a, Sec. 14(r).)
 360-18        Sec. 2001.054.  LICENSES.  (a)  The provisions of this
 360-19  chapter concerning contested cases apply to the grant, denial, or
 360-20  renewal of a license that is required to be preceded by notice and
 360-21  opportunity for hearing.
 360-22        (b)  If a license holder makes timely and sufficient
 360-23  application for the renewal of a license or for a new license for
 360-24  an activity of a continuing nature, the existing license does not
 360-25  expire until the application has been finally determined by the
 360-26  state agency.  If the application is denied or the terms of the new
 360-27  license are limited, the existing license does not expire until the
  361-1  last day for seeking review of the agency order or a later date
  361-2  fixed by order of the reviewing court.
  361-3        (c)  A revocation, suspension, annulment, or withdrawal of a
  361-4  license is not effective unless, before institution of state agency
  361-5  proceedings:
  361-6              (1)  the agency gives notice by personal service or by
  361-7  registered or certified mail to the license holder of facts or
  361-8  conduct alleged to warrant the intended action; and
  361-9              (2)  the license holder is given an opportunity to show
 361-10  compliance with all requirements of law for the retention of the
 361-11  license.  (V.A.C.S. Art. 6252-13a, Sec. 18.)
 361-12        Sec. 2001.055.  INTERPRETERS FOR DEAF OR HEARING IMPAIRED
 361-13  PARTIES AND WITNESSES.  (a)  In a contested case, a state agency
 361-14  shall provide an interpreter whose qualifications are approved by
 361-15  the Texas Commission for the Deaf and Hearing Impaired to interpret
 361-16  the proceedings for a party or subpoenaed witness who is deaf or
 361-17  hearing impaired.
 361-18        (b)  In this section, "deaf or hearing impaired" means having
 361-19  a hearing impairment, whether or not accompanied by a speech
 361-20  impairment, that inhibits comprehension of the proceedings or
 361-21  communication with others.  (V.A.C.S. Art. 6252-13a, Sec. 13A.)
 361-22        Sec. 2001.056.  INFORMAL DISPOSITION OF CONTESTED CASE.
 361-23  Unless precluded by law, an informal disposition may be made of a
 361-24  contested case by:
 361-25              (1)  stipulation;
 361-26              (2)  agreed settlement;
 361-27              (3)  consent order; or
  362-1              (4)  default.  (V.A.C.S. Art. 6252-13a, Sec. 13(e).)
  362-2        Sec. 2001.057.  CONTINUANCES.  (a)  A state agency may
  362-3  continue a hearing in a contested case from time to time and from
  362-4  place to place.
  362-5        (b)  The notice of the hearing must indicate the times and
  362-6  places at which the hearing may be continued.
  362-7        (c)  If a hearing is not concluded on the day it begins, a
  362-8  state agency shall, to the extent possible, proceed with the
  362-9  hearing on each subsequent working day until the hearing is
 362-10  concluded.  (V.A.C.S. Art. 6252-13a, Sec. 13(i).)
 362-11        Sec. 2001.058.  HEARING CONDUCTED BY STATE OFFICE OF
 362-12  ADMINISTRATIVE HEARINGS.  (a)  This section applies only to an
 362-13  administrative law judge employed by the State Office of
 362-14  Administrative Hearings.
 362-15        (b)  An administrative law judge who conducts a contested
 362-16  case hearing shall consider applicable agency rules or policies in
 362-17  conducting the hearing but may not be supervised by the state
 362-18  agency deciding the case.
 362-19        (c)  A state agency shall provide the administrative law
 362-20  judge with a written statement of applicable rules or policies.
 362-21        (d)  A state agency may not attempt to influence the finding
 362-22  of facts or the administrative law judge's application of the law
 362-23  in a contested case except by proper evidence and legal argument.
 362-24        (e)  A state agency may change a finding of fact or
 362-25  conclusion of law made by the administrative law judge, or may
 362-26  vacate or modify an order issued by the administrative judge, only
 362-27  for reasons of policy.  The agency shall state in writing the
  363-1  reason and legal basis for a change made under this subsection.
  363-2  (V.A.C.S. Art. 6252-13a, Sec. 13(j).)
  363-3        Sec. 2001.059.  TRANSCRIPT.  (a)  On the written request of a
  363-4  party to a contested case, proceedings, or any part of the
  363-5  proceedings, shall be transcribed.
  363-6        (b)  A state agency may pay the cost of a transcript or may
  363-7  assess the cost to one or more parties.
  363-8        (c)  This chapter does not limit a state agency to a
  363-9  stenographic record of proceedings.  (V.A.C.S. Art. 6252-13a, Sec.
 363-10  13(g).)
 363-11        Sec. 2001.060.  RECORD.  The record in a contested case
 363-12  includes:
 363-13              (1)  each pleading, motion, and intermediate ruling;
 363-14              (2)  evidence received or considered;
 363-15              (3)  a statement of matters officially noticed;
 363-16              (4)  questions and offers of proof, objections, and
 363-17  rulings on them;
 363-18              (5)  proposed findings and exceptions;
 363-19              (6)  each decision, opinion, or report by the officer
 363-20  presiding at the hearing; and
 363-21              (7)  all staff memoranda or data submitted to or
 363-22  considered by the hearing officer or members of the agency who are
 363-23  involved in making the decision.  (V.A.C.S. Art. 6252-13a, Sec.
 363-24  13(f).)
 363-25        Sec. 2001.061.  EX PARTE CONSULTATIONS.  (a)  Unless required
 363-26  for the disposition of an ex parte matter authorized by law, a
 363-27  member or employee of a state agency assigned to render a decision
  364-1  or to make findings of fact and conclusions of law in a contested
  364-2  case may not directly or indirectly communicate in connection with
  364-3  an issue of fact or law with a state agency, person, party, or a
  364-4  representative of those entities, except on notice and opportunity
  364-5  for each party to participate.
  364-6        (b)  A state agency member may communicate ex parte with
  364-7  another member of the agency.
  364-8        (c)  Under Section 2001.090, a member or employee of a state
  364-9  agency assigned to render a decision or to make findings of fact
 364-10  and conclusions of law in a contested case may communicate ex parte
 364-11  with an agency employee who has not participated in a hearing in
 364-12  the case for the purpose of using the special skills or knowledge
 364-13  of the agency and its staff in evaluating the evidence.  (V.A.C.S.
 364-14  Art. 6252-13a, Sec. 17.)
 364-15        Sec. 2001.062.  EXAMINATION OF RECORD BY STATE AGENCY;
 364-16  PROPOSAL FOR DECISION.  (a)  In a contested case, if a majority of
 364-17  the state agency officials who are to render a final decision have
 364-18  not heard the case or read the record, the decision, if adverse to
 364-19  a party other than the agency itself, may not be made until:
 364-20              (1)  a proposal for decision is served on each party;
 364-21  and
 364-22              (2)  an opportunity is given to each adversely affected
 364-23  party to file exceptions and present briefs to the officials who
 364-24  are to render the decision.
 364-25        (b)  If a party files exceptions or presents briefs, an
 364-26  opportunity shall be given to each other party to file replies to
 364-27  the exceptions or briefs.
  365-1        (c)  A proposal for decision must contain a statement of the
  365-2  reasons for the proposed decision and of each finding of fact and
  365-3  conclusion of law necessary to the proposed decision.  The
  365-4  statement must be prepared by the individual who conducted the
  365-5  hearing or by one who has read the record.
  365-6        (d)  A proposal for decision may be amended in response to
  365-7  exceptions, replies, or briefs submitted by the parties without
  365-8  again being served on the parties.
  365-9        (e)  The parties by written stipulation may waive compliance
 365-10  with this section.  (V.A.C.S. Art. 6252-13a, Sec. 15.)
 365-11          (Sections 2001.063-2001.080 reserved for expansion)
 365-12         SUBCHAPTER D.  CONTESTED CASES:  EVIDENCE, WITNESSES,
 365-13                             AND DISCOVERY
 365-14        Sec. 2001.081.  RULES OF EVIDENCE.  The rules of evidence as
 365-15  applied in a nonjury civil case in a district court of this state
 365-16  apply to a contested case except that evidence inadmissible under
 365-17  those rules may be admitted if the evidence is:
 365-18              (1)  necessary to ascertain facts not reasonably
 365-19  susceptible of proof under those rules;
 365-20              (2)  not precluded by statute; and
 365-21              (3)  of a type on which a reasonably prudent person
 365-22  commonly relies in the conduct of the person's affairs.  (V.A.C.S.
 365-23  Art. 6252-13a, Sec. 14(a) (part).)
 365-24        Sec. 2001.082.  EXCLUSION OF EVIDENCE.  In a contested case,
 365-25  evidence that is irrelevant, immaterial, or unduly repetitious
 365-26  shall be excluded.  (V.A.C.S. Art. 6252-13a, Sec. 14(a) (part).)
 365-27        Sec. 2001.083.  PRIVILEGE.  In a contested case, a state
  366-1  agency shall give effect to the rules of privilege recognized by
  366-2  law.  (V.A.C.S. Art. 6252-13a, Sec. 14(a) (part).)
  366-3        Sec. 2001.084.  OBJECTIONS TO EVIDENCE.  An objection to an
  366-4  evidentiary offer in a contested case may be made and shall be
  366-5  noted in the record.  (V.A.C.S. Art. 6252-13a, Sec. 14(a) (part).)
  366-6        Sec. 2001.085.  WRITTEN EVIDENCE.  Subject to the
  366-7  requirements of Sections 2001.081-2001.084, any part of the
  366-8  evidence in a contested case may be received in writing if:
  366-9              (1)  a hearing will be expedited; and
 366-10              (2)  the interests of the parties will not be
 366-11  substantially prejudiced.  (V.A.C.S. Art. 6252-13a, Sec. 14(a)
 366-12  (part).)
 366-13        Sec. 2001.086.  DOCUMENTARY EVIDENCE.  A copy or excerpt of
 366-14  documentary evidence may be received in a contested case if an
 366-15  original document is not readily available.  On request, a party
 366-16  shall be given an opportunity to compare the copy or excerpt with
 366-17  the original document.  (V.A.C.S. Art. 6252-13a, Sec. 14(o).)
 366-18        Sec. 2001.087.  CROSS-EXAMINATION.  In a contested case, a
 366-19  party may conduct cross-examination required for a full and true
 366-20  disclosure of the facts.  (V.A.C.S. Art. 6252-13a, Sec. 14(p).)
 366-21        Sec. 2001.088.  WITNESSES.  A state agency may swear
 366-22  witnesses and take their testimony under oath in connection with a
 366-23  contested case held under this chapter.  (V.A.C.S. Art. 6252-13a,
 366-24  Sec. 14(b).)
 366-25        Sec. 2001.089.  ISSUANCE OF SUBPOENA.  On its own motion or
 366-26  on the written request of a party to a contested case pending
 366-27  before it, a state agency shall issue a subpoena addressed to the
  367-1  sheriff or to a constable to require the attendance of a witness or
  367-2  the production of books, records, papers, or other objects that may
  367-3  be necessary and proper for the purposes of a proceeding if there
  367-4  is:
  367-5              (1)  a showing of good cause; and
  367-6              (2)  a deposit of an amount that will reasonably ensure
  367-7  payment of the amounts estimated to accrue under Section 2001.103.
  367-8  (V.A.C.S. Art. 6252-13a, Sec. 14(c).)
  367-9        Sec. 2001.090.  OFFICIAL NOTICE; STATE AGENCY EVALUATION OF
 367-10  EVIDENCE.  (a)  In connection with a  hearing held under this
 367-11  chapter, official notice may be taken of:
 367-12              (1)  all facts that are judicially cognizable; and
 367-13              (2)  generally recognized facts within the area of the
 367-14  state agency's specialized knowledge.
 367-15        (b)  Each party shall be notified either before or during the
 367-16  hearing, or by reference in a preliminary report or otherwise, of
 367-17  the material officially noticed, including staff memoranda or
 367-18  information.
 367-19        (c)  Each party is entitled to be given an opportunity to
 367-20  contest material that is officially noticed.
 367-21        (d)  The special skills or knowledge of the state agency and
 367-22  its staff may be used in evaluating the evidence.  (V.A.C.S. Art.
 367-23  6252-13a, Sec. 14(q).)
 367-24        Sec. 2001.091.  DISCOVERY FROM PARTIES:  ORDERS FOR
 367-25  PRODUCTION OR INSPECTION.  (a)  On the motion of a party, on notice
 367-26  to each other party, and subject to limitations of the kind
 367-27  provided for discovery under the Texas Rules of Civil Procedure, a
  368-1  state agency in which a contested case is pending may order a
  368-2  party:
  368-3              (1)  to produce and to permit the party making the
  368-4  motion or a person on behalf of that party to inspect and to copy
  368-5  or photograph a designated document, paper, book, account, letter,
  368-6  photograph, or tangible thing in the party's possession, custody,
  368-7  or control that:
  368-8                    (A)  is not privileged; and
  368-9                    (B)  constitutes or contains, or is reasonably
 368-10  calculated to lead to the discovery of, evidence that is material
 368-11  to a matter involved in the contested case; and
 368-12              (2)  to permit entry to designated land or other
 368-13  property in the party's possession or control to inspect, measure,
 368-14  survey, or photograph the property or a designated object or
 368-15  operation on the property that may be material to a matter involved
 368-16  in the contested case.
 368-17        (b)  An order under this section:
 368-18              (1)  must specify the time, place, and manner of making
 368-19  the inspection, measurement, or survey, or of making copies or
 368-20  photographs; and
 368-21              (2)  may prescribe terms and conditions that are just.
 368-22  (V.A.C.S. Art. 6252-13a, Secs. 14a(a), (b).)
 368-23        Sec. 2001.092.  DISCOVERY FROM PARTIES:  IDENTITY OF WITNESS
 368-24  OR POTENTIAL PARTY; EXPERT REPORTS.  (a)  The identity and location
 368-25  of a potential party or witness in a contested case may be obtained
 368-26  from a communication or other paper in a party's possession,
 368-27  custody, or control.
  369-1        (b)  A party may be required to produce and permit the
  369-2  inspection and copying of a report, including factual observations
  369-3  and opinions, of an expert who will be called as a witness.
  369-4        (c)  This section does not extend to other communications:
  369-5              (1)  made after the occurrence or transaction on which
  369-6  the contested case is based;
  369-7              (2)  made in connection with the prosecution,
  369-8  investigation, or defense of the contested case or the
  369-9  circumstances from which the case arose; and
 369-10              (3)  that are:
 369-11                    (A)  written statements of witnesses;
 369-12                    (B)  in writing and between agents,
 369-13  representatives, or employees of a party; or
 369-14                    (C)  between a party and the party's agent,
 369-15  representative, or employee.  (V.A.C.S. Art. 6252-13a,
 369-16  Sec. 14a(c).)
 369-17        Sec. 2001.093.  DISCOVERY FROM PARTIES:  COPY OF PREVIOUS
 369-18  STATEMENT.  (a)  On request, a person, including a person who is
 369-19  not a party, is entitled to obtain a copy of a statement in a
 369-20  party's possession, custody, or control that the person has
 369-21  previously made about the contested case or its subject matter.
 369-22        (b)  A person whose request under Subsection (a) is refused
 369-23  may move for a state agency order under Section 2001.091.
 369-24        (c)  In this section, a statement is considered to be
 369-25  previously made if it is:
 369-26              (1)  a written statement signed or otherwise adopted or
 369-27  approved by the person making it; or
  370-1              (2)  a stenographic, mechanical, electrical, or other
  370-2  recording, or a transcription of the recording, which is a
  370-3  substantially verbatim recital of an oral statement by the person
  370-4  making it and that was contemporaneously recorded.   (V.A.C.S. Art.
  370-5  6252-13a, Sec. 14a(d).)
  370-6        Sec. 2001.094.  ISSUANCE OF COMMISSION REQUIRING DEPOSITION.
  370-7  (a)  On its own motion or on the written request of a party to a
  370-8  contested case pending before it, and on deposit of an amount that
  370-9  will reasonably ensure payment of the amount estimated to accrue
 370-10  under Section 2001.103, a state agency shall issue a commission,
 370-11  addressed to the officers authorized by statute to take a
 370-12  deposition, requiring that the deposition of a witness be taken.
 370-13        (b)  The commission shall authorize the issuance of any
 370-14  subpoena necessary to require that the witness appear and produce,
 370-15  at the time the deposition is taken, books, records, papers, or
 370-16  other objects that may be necessary and proper for the purpose of
 370-17  the proceeding.
 370-18        (c)  The commission shall require an officer to whom it is
 370-19  addressed to:
 370-20              (1)  examine the witness before the officer on the date
 370-21  and at the place named in the commission; and
 370-22              (2)  take answers under oath to questions asked the
 370-23  witness by a party to the proceeding, the state agency, or an
 370-24  attorney for a party or the agency.
 370-25        (d)  The commission shall require the witness to remain in
 370-26  attendance from day to day until the deposition is begun and
 370-27  completed.  (V.A.C.S. Art. 6252-13a, Secs. 14(d) (part), (e)
  371-1  (part).)
  371-2        Sec. 2001.095.  DEPOSITION OF STATE AGENCY BOARD MEMBER.  The
  371-3  deposition of a member of a state agency board may not be taken
  371-4  after a date has been set for hearing in a contested case.
  371-5  (V.A.C.S. Art. 6252-13a, Sec. 14(d) (part).)
  371-6        Sec. 2001.096.  PLACE OF DEPOSITION.  A deposition in a
  371-7  contested case shall be taken in the county where the witness:
  371-8              (1)  resides;
  371-9              (2)  is employed; or
 371-10              (3)  regularly transacts business in person.  (V.A.C.S.
 371-11  Art. 6252-13a, Sec. 14(e) (part).)
 371-12        Sec. 2001.097.  OBJECTIONS TO DEPOSITION TESTIMONY.  (a)  The
 371-13  officer taking an oral deposition in a contested case may not:
 371-14              (1)  sustain an objection to the testimony taken; or
 371-15              (2)  exclude testimony.
 371-16        (b)  An objection to deposition testimony is reserved for the
 371-17  action of the state agency before which the matter is pending.
 371-18        (c)  The administrator or other officer conducting the
 371-19  contested case hearing may consider objections other than those
 371-20  made at the taking of the testimony.  (V.A.C.S. Art. 6252-13a, Sec.
 371-21  14(g).)
 371-22        Sec. 2001.098.  PREPARATION OF DEPOSITION.  (a)  A deposition
 371-23  witness in a contested case shall be carefully examined.
 371-24        (b)  The testimony shall be reduced to writing or typewriting
 371-25  by the officer taking the deposition, a person under the officer's
 371-26  personal supervision, or the deposition witness in the officer's
 371-27  presence.  (V.A.C.S. Art. 6252-13a, Sec. 14(f).)
  372-1        Sec. 2001.099.  SUBMISSION OF DEPOSITION TO WITNESS;
  372-2  SIGNATURE.  (a)  A deposition in a contested case shall be
  372-3  submitted to the witness for examination after the testimony is
  372-4  fully transcribed and shall be read to or by the witness.
  372-5        (b)  The witness and the parties may waive in writing the
  372-6  examination and reading of a deposition under Subsection (a).
  372-7        (c)  If the witness is a party to the contested case pending
  372-8  before the agency with an attorney of record, the deposition
  372-9  officer shall notify the attorney of record in writing by
 372-10  registered or certified mail that the deposition is ready for
 372-11  examination and reading at the office of the deposition officer and
 372-12  that if the witness does not appear and examine, read, and sign the
 372-13  deposition before the 21st day after the date on which the notice
 372-14  is mailed, the deposition shall be returned as provided by this
 372-15  subchapter for unsigned depositions.
 372-16        (d)  A witness must sign a deposition at least three days
 372-17  before the date of the hearing or the deposition shall be returned
 372-18  as an unsigned deposition as provided by this subchapter.
 372-19        (e)  The officer taking a deposition shall enter on the
 372-20  deposition:
 372-21              (1)  a change in form or substance that the witness
 372-22  desires to make; and
 372-23              (2)  a statement of the reasons given by the witness
 372-24  for making the change.
 372-25        (f)  After the deposition officer has entered any change and
 372-26  a statement of reasons for the change on the deposition under
 372-27  Subsection (e), the witness shall sign the deposition unless:
  373-1              (1)  the parties present at the taking of the
  373-2  deposition by stipulation waive the signing;
  373-3              (2)  the witness is ill;
  373-4              (3)  the witness cannot be found; or
  373-5              (4)  the witness refuses to sign.
  373-6        (g)  If a deposition is not signed by the witness, the
  373-7  officer shall sign it and state on the record the fact of the
  373-8  witness' waiver, illness, absence, or refusal to sign and the
  373-9  reason given, if any, for failure to sign.  The deposition may then
 373-10  be used as though signed by the witness.  (V.A.C.S. Art. 6252-13a,
 373-11  Sec. 14(h).)
 373-12        Sec. 2001.100.  RETURN OF DEPOSITION TO STATE AGENCY.  (a)  A
 373-13  deposition may be returned to the state agency before which the
 373-14  contested case is pending by mail or by a party interested in
 373-15  taking the deposition or another person.
 373-16        (b)  For a deposition returned by mail, the state agency
 373-17  shall:
 373-18              (1)  endorse on the deposition the fact that it was
 373-19  received from the post office; and
 373-20              (2)  have it signed by the agency employee receiving
 373-21  the deposition.
 373-22        (c)  For a deposition returned by means other than mail, the
 373-23  person delivering it to the state agency shall execute an affidavit
 373-24  before the agency stating that:
 373-25              (1)  the person received it from the hands of the
 373-26  officer before whom it was taken;
 373-27              (2)  it has not been out of the person's possession
  374-1  since the person received it; and
  374-2              (3)  it has not been altered.  (V.A.C.S. Art. 6252-13a,
  374-3  Sec. 14(i).)
  374-4        Sec. 2001.101.  OPENING OF DEPOSITION BY STATE AGENCY
  374-5  EMPLOYEE.  (a)  At the request of a party or the party's counsel, a
  374-6  deposition in a contested case that is filed with a state agency
  374-7  may be opened by an employee of the agency.
  374-8        (b)  A state agency employee who opens a deposition shall:
  374-9              (1)  endorse on the deposition the day and at whose
 374-10  request it was opened; and
 374-11              (2)  sign the deposition.
 374-12        (c)  The deposition shall remain on file with the state
 374-13  agency for the inspection of any party.  (V.A.C.S. Art. 6252-13a,
 374-14  Sec. 14(j).)
 374-15        Sec. 2001.102.  USE OF DEPOSITION.  A party is entitled to
 374-16  use a deposition taken under this subchapter in the contested case
 374-17  pending before the state agency without regard to whether a
 374-18  cross-interrogatory has been propounded.  (V.A.C.S. Art. 6252-13a,
 374-19  Sec. 14(k).)
 374-20        Sec. 2001.103.  MILEAGE AND PER DIEM OF WITNESS OR DEPONENT.
 374-21  (a)  A witness or deponent in a contested case who is not a party
 374-22  and who is subpoenaed or otherwise compelled to attend a hearing or
 374-23  proceeding to give a deposition or to produce books, records,
 374-24  papers, or other objects that may be necessary and proper for the
 374-25  purposes of a proceeding under this chapter is entitled to receive:
 374-26              (1)  10 cents for each mile, or a greater amount
 374-27  prescribed by state agency rule, for going to and returning from
  375-1  the place of the hearing or deposition if the place is more than 25
  375-2  miles from the person's place of residence; and
  375-3              (2)  $10, or a greater amount prescribed by state
  375-4  agency rule, for each day or part of a day that the person is
  375-5  necessarily present.
  375-6        (b)  On the presentation of proper vouchers sworn by the
  375-7  witness and approved by the state agency, the party or agency at
  375-8  whose request the witness appears or the deposition is taken shall
  375-9  pay the amounts to which the witness is entitled under this
 375-10  section.  (V.A.C.S. Art. 6252-13a, Secs. 14(l), (m).)
 375-11          (Sections 2001.104-2001.120 reserved for expansion)
 375-12          SUBCHAPTER E.  CONTESTED CASES:  TESTIMONY OF CHILD
 375-13        Sec. 2001.121.  STATEMENT OR TESTIMONY BY CERTAIN CHILD ABUSE
 375-14  VICTIMS.  (a)  This section applies:
 375-15              (1)  to a contested case and judicial review of a final
 375-16  decision under this chapter, whether by trial de novo or under the
 375-17  substantial evidence rule, in which an issue is the abuse of a
 375-18  child younger than 12 years of age; and
 375-19              (2)  only to the statement or testimony of a child
 375-20  younger than 12 years of age who is alleged to have been abused.
 375-21        (b)  The recording of an oral statement recorded before the
 375-22  proceeding is admissible into evidence if:
 375-23              (1)  an attorney for a party to the proceeding was not
 375-24  present when the statement was made;
 375-25              (2)  the recording is both visual and aural and is
 375-26  recorded on film or videotape or by other electronic means;
 375-27              (3)  the recording equipment was capable of making an
  376-1  accurate recording;
  376-2              (4)  the operator was competent;
  376-3              (5)  the recording is accurate and has not been
  376-4  altered;
  376-5              (6)  the statement was not made in response to
  376-6  questioning calculated to lead the child to make a particular
  376-7  statement;
  376-8              (7)  each voice on the recording is identified;
  376-9              (8)  the individual conducting the interview of the
 376-10  child in the recording is present at the proceeding and available
 376-11  to testify or to be cross-examined by either party; and
 376-12              (9)  each party to the proceeding is given an
 376-13  opportunity to view the recording before it is offered into
 376-14  evidence.
 376-15        (c)  On the motion of a party to the proceeding, the
 376-16  individual conducting the hearing may order that the testimony of
 376-17  the child be taken in a room other than the hearing room and be
 376-18  televised by closed circuit equipment in the hearing room to be
 376-19  viewed by the finder of fact and the parties to the proceeding.
 376-20  Only an attorney for each party, an attorney ad litem for the child
 376-21  or other individual whose presence would contribute to the welfare
 376-22  and well-being of the child, and individuals necessary to operate
 376-23  the equipment may be present in the room with the child during the
 376-24  child's testimony.  Only the attorneys for the parties may question
 376-25  the child.  The individuals operating the equipment shall be
 376-26  confined to an adjacent room or behind a screen or mirror that
 376-27  permits them to see and hear the child during the child's testimony
  377-1  but does not permit the child to see or hear them.
  377-2        (d)  On the motion of a party to the proceeding, the
  377-3  individual conducting the hearing may order that the testimony of
  377-4  the child be taken outside the hearing room and be recorded for
  377-5  showing in the hearing room before the individual conducting the
  377-6  hearing, the finder of fact, and the parties to the proceeding.
  377-7  Only those individuals permitted to be present at the taking of
  377-8  testimony under Subsection (c) may be present during the taking of
  377-9  the child's testimony.  Only the attorneys for the parties may
 377-10  question the child, and the individuals operating the equipment
 377-11  shall be confined from the child's sight and hearing as provided by
 377-12  Subsection (c).  The individual conducting the hearing shall ensure
 377-13  that:
 377-14              (1)  the recording is both visual and aural and is
 377-15  recorded on film or videotape or by other electronic means;
 377-16              (2)  the recording equipment was capable of making an
 377-17  accurate recording;
 377-18              (3)  the operator was competent;
 377-19              (4)  the recording is accurate and is not altered;
 377-20              (5)  each voice on the recording is identified; and
 377-21              (6)  each party to the proceeding is given an
 377-22  opportunity to view the recording before it is shown in the hearing
 377-23  room.
 377-24        (e)  A child whose testimony is taken as provided by this
 377-25  section may not be compelled to testify in the presence of the
 377-26  individual conducting the hearing during the proceeding.  (V.A.C.S.
 377-27  Art. 6252-13a, Secs. 13B, 19(g).)
  378-1        Sec. 2001.122.  HEARSAY STATEMENT OF CHILD ABUSE VICTIM.  (a)
  378-2  This section applies:
  378-3              (1)  to a proceeding held under this chapter or a
  378-4  judicial review of a final decision under this chapter, whether by
  378-5  trial de novo or under the substantial evidence rule, in which an
  378-6  issue is the abuse of a child 12 years of age or younger; and
  378-7              (2)  only to a statement that describes an alleged
  378-8  incident of child abuse that:
  378-9                    (A)  was made by the child who is the alleged
 378-10  victim of the incident; and
 378-11                    (B)  was made to the first individual 18 years of
 378-12  age or older, other than the individual accused of abuse, to whom
 378-13  the child made a statement about the incident.
 378-14        (b)  A statement that meets the requirements of Subsection
 378-15  (a)(2) is not inadmissible as hearsay if:
 378-16              (1)  on or before the seventh day before the date on
 378-17  which the proceeding or hearing begins, the party intending to
 378-18  offer the statement:
 378-19                    (A)  notifies each other party of the party's
 378-20  intention to do so;
 378-21                    (B)  provides each other party with the name of
 378-22  the witness through whom it intends to offer the statement; and
 378-23                    (C)  provides each other party with a written
 378-24  summary of the statement;
 378-25              (2)  the presiding official conducting the proceeding
 378-26  finds that the statement is reliable based on the time, content,
 378-27  and circumstances of the statement; and
  379-1              (3)  the child who is the alleged victim testifies or
  379-2  is available to testify at the hearing in court, at the proceeding,
  379-3  or in any other manner provided by law.
  379-4        (c)  The finding required by Subsection (b)(2) shall be made
  379-5  in a hearing conducted outside the presence of the jury, if the
  379-6  hearing is before a jury.  (V.A.C.S. Art. 6252-13a, Secs. 13C,
  379-7  19(g).)
  379-8          (Sections 2001.123-2001.140 reserved for expansion)
  379-9     SUBCHAPTER F.  CONTESTED CASES:  FINAL DECISIONS AND ORDERS;
 379-10                         MOTIONS FOR REHEARING
 379-11        Sec. 2001.141.  FORM OF DECISION; FINDINGS OF FACT AND
 379-12  CONCLUSIONS OF LAW.  (a)  A decision or order that may become final
 379-13  under Section 2001.144 that is adverse to a party in a contested
 379-14  case must be in writing or stated in the record.
 379-15        (b)  A decision that may become final under Section 2001.144
 379-16  must include findings of fact and conclusions of law, separately
 379-17  stated.
 379-18        (c)  Findings of fact may be based only on the evidence and
 379-19  on matters that are officially noticed.
 379-20        (d)  Findings of fact, if set forth in statutory language,
 379-21  must be accompanied by a concise and explicit statement of the
 379-22  underlying facts supporting the findings.
 379-23        (e)  If a party submits under a state agency rule proposed
 379-24  findings of fact, the decision shall include a ruling on each
 379-25  proposed finding.  (V.A.C.S. Art. 6252-13a, Secs. 13(h); 16(a), (b)
 379-26  (part).)
 379-27        Sec. 2001.142.  NOTIFICATION OF DECISIONS AND ORDERS.  (a)  A
  380-1  party in a contested case shall be notified either personally or by
  380-2  first class mail of any decision or order.
  380-3        (b)  On issuance in a contested case of a decision that may
  380-4  become final under Section 2001.144 or an order ruling on a motion
  380-5  for rehearing, a state agency shall send a copy of the decision or
  380-6  order by first class mail to the attorneys of record and shall keep
  380-7  an appropriate record of the mailing.  If a party is not
  380-8  represented by an attorney of record, the state agency shall send a
  380-9  copy of the decision or order by first class mail to the party and
 380-10  shall keep an appropriate record of the mailing.
 380-11        (c)  A party or attorney of record notified by mail under
 380-12  Subsection (b) is presumed to have been notified on the date on
 380-13  which the notice is mailed.  (V.A.C.S. Art. 6252-13a, Sec. 16(b)
 380-14  (part).)
 380-15        Sec. 2001.143.  TIME OF RENDERING DECISION.  (a)  A decision
 380-16  or order that may become final under Section 2001.144 in a
 380-17  contested case must be rendered not later than the 60th day after
 380-18  the date on which the hearing is finally closed.
 380-19        (b)  In a contested case heard by other than a majority of
 380-20  the officials of a state agency, the agency may extend the period
 380-21  in which the decision or order may be issued.
 380-22        (c)  Any extension shall be announced at the conclusion of
 380-23  the hearing.  (V.A.C.S. Art. 6252-13a, Sec. 16(d).)
 380-24        Sec. 2001.144.  DECISIONS; WHEN FINAL.  (a)  A decision in a
 380-25  contested case is final:
 380-26              (1)  if a motion for rehearing is not filed on time, on
 380-27  the expiration of the period for filing a motion for rehearing;
  381-1              (2)  if a motion for rehearing is filed on time, on the
  381-2  date:
  381-3                    (A)  the order overruling the motion for
  381-4  rehearing is rendered; or
  381-5                    (B)  the motion is overruled by operation of law;
  381-6  or
  381-7              (3)  if a state agency finds that an imminent peril to
  381-8  the public health, safety, or welfare requires immediate effect of
  381-9  a decision or order, on the date the decision is rendered.
 381-10        (b)  If a decision or order is final under Subsection (a)(3),
 381-11  a state agency must recite in the decision or order the finding
 381-12  made under Subsection (a)(3) and the fact that the decision or
 381-13  order is final and effective on the date rendered.  (V.A.C.S. Art.
 381-14  6252-13a, Sec. 16(c) (part).)
 381-15        Sec. 2001.145.  MOTIONS FOR REHEARING:  PREREQUISITES TO
 381-16  APPEAL.  (a)  A timely motion for rehearing is a prerequisite to an
 381-17  appeal in a contested case except that a motion for rehearing of a
 381-18  decision or order that is final under Section 2001.144(a)(3) is not
 381-19  a prerequisite for appeal.
 381-20        (b)  A decision that is final under Section 2001.144(a)(2) or
 381-21  (3) is appealable.  (V.A.C.S. Art. 6252-13a, Secs. 16(c) (part),
 381-22  (e) (part).)
 381-23        Sec. 2001.146.  MOTIONS FOR REHEARING:  PROCEDURES.  (a)  A
 381-24  motion for rehearing in a contested case must be filed by a party
 381-25  not later than the 20th day after the date on which the party or
 381-26  the party's attorney of record is notified as required by Section
 381-27  2001.142 of a decision or order that may become final under Section
  382-1  2001.144.
  382-2        (b)  A reply to a motion for rehearing must be filed with the
  382-3  state agency not later than the 30th day after the date on which
  382-4  the party or the party's attorney of record is notified as required
  382-5  by Section 2001.142 of the decision or order that may become final
  382-6  under Section 2001.144.
  382-7        (c)  A state agency shall act on a motion for rehearing not
  382-8  later than the 45th day after the date on which the party or the
  382-9  party's attorney of record is notified as required by Section
 382-10  2001.142 of the decision or order that may become final under
 382-11  Section 2001.144, or the motion for rehearing is overruled by
 382-12  operation of law.
 382-13        (d)  If a state agency board includes a member who does not
 382-14  receive a salary for work as a board member and who resides outside
 382-15  Travis County, the board may rule on a motion for rehearing at a
 382-16  meeting or by:
 382-17              (1)  mail;
 382-18              (2)  telephone;
 382-19              (3)  telegraph; or
 382-20              (4)  another suitable means of communication.
 382-21        (e)  A state agency may by written order extend the time for
 382-22  filing a motion or reply or taking agency action under this
 382-23  section, except that an extension may not extend the period for
 382-24  agency action beyond the 90th day after the date on which the party
 382-25  or the party's attorney of record is notified as required by
 382-26  Section 2001.142 of the decision or order that may become final
 382-27  under Section 2001.144.
  383-1        (f)  In the event of an extension, a motion for rehearing is
  383-2  overruled by operation of law on the date fixed by the order or, in
  383-3  the absence of a fixed date, 90 days after the date on which the
  383-4  party or the party's attorney of record is notified as required by
  383-5  Section 2001.142 of the decision or order that may become final
  383-6  under Section 2001.144.  (V.A.C.S. Art. 6252-13a, Secs. 16(c)
  383-7  (part), (e) (part).)
  383-8        Sec. 2001.147.  AGREEMENT TO MODIFY TIME LIMITS.  The parties
  383-9  to a contested case, with state agency approval, may agree to
 383-10  modify the times prescribed by Sections 2001.143 and 2001.146.
 383-11  (V.A.C.S. Art. 6252-13a, Sec. 16(f).)
 383-12          (Sections 2001.148-2001.170 reserved for expansion)
 383-13           SUBCHAPTER G.  CONTESTED CASES:  JUDICIAL REVIEW
 383-14        Sec. 2001.171.  JUDICIAL REVIEW.  A person who has exhausted
 383-15  all administrative remedies available within a state agency and who
 383-16  is aggrieved by a final decision in a contested case is entitled to
 383-17  judicial review under this chapter.  (V.A.C.S. Art. 6252-13a, Sec.
 383-18  19(a) (part).)
 383-19        Sec. 2001.172.  SCOPE OF JUDICIAL REVIEW.  The scope of
 383-20  judicial review of a state agency decision in a contested case is
 383-21  as provided by the law under which review is sought.  (V.A.C.S.
 383-22  Art. 6252-13a, Sec. 19(e) (part).)
 383-23        Sec. 2001.173.  TRIAL DE NOVO REVIEW.  (a)  If the manner of
 383-24  review authorized by law for the decision in a contested case that
 383-25  is the subject of complaint is by trial de novo, the reviewing
 383-26  court shall try each issue of fact and law in the manner that
 383-27  applies to other civil suits in this state as though there had not
  384-1  been an intervening agency action or decision but may not admit in
  384-2  evidence the fact of prior state agency action or the nature of
  384-3  that action except to the limited extent necessary to show
  384-4  compliance with statutory provisions that vest jurisdiction in the
  384-5  court.
  384-6        (b)  On demand, a party to a trial de novo review may have a
  384-7  jury determination of each issue of fact on which a jury
  384-8  determination could be obtained in other civil suits in this state.
  384-9  (V.A.C.S. Art. 6252-13a, Secs. 19(c), (e) (part).)
 384-10        Sec. 2001.174.  REVIEW UNDER SUBSTANTIAL EVIDENCE RULE OR
 384-11  UNDEFINED SCOPE OF REVIEW.  If the law authorizes review of a
 384-12  decision in a contested case under the substantial evidence rule or
 384-13  if the law does not define the scope of judicial review, a court
 384-14  may not substitute its judgment for the judgment of the state
 384-15  agency on the weight of the evidence on questions committed to
 384-16  agency discretion but:
 384-17              (1)  may affirm the agency decision in whole or in
 384-18  part; and
 384-19              (2)  shall reverse or remand the case for further
 384-20  proceedings if substantial rights of the appellant have been
 384-21  prejudiced because the administrative findings, inferences,
 384-22  conclusions, or decisions are:
 384-23                    (A)  in violation of a constitutional or
 384-24  statutory provision;
 384-25                    (B)  in excess of the agency's statutory
 384-26  authority;
 384-27                    (C)  made through unlawful procedure;
  385-1                    (D)  affected by other error of law;
  385-2                    (E)  not reasonably supported by substantial
  385-3  evidence considering the reliable and probative evidence in the
  385-4  record as a whole; or
  385-5                    (F)  arbitrary or capricious or characterized by
  385-6  abuse of discretion or clearly unwarranted exercise of discretion.
  385-7  (V.A.C.S. Art. 6252-13a, Sec. 19(e) (part).)
  385-8        Sec. 2001.175.  PROCEDURES FOR REVIEW UNDER SUBSTANTIAL
  385-9  EVIDENCE RULE OR UNDEFINED SCOPE OF REVIEW.  (a)  The procedures of
 385-10  this section apply if the manner of review authorized by law for
 385-11  the decision in a contested case that is the subject of complaint
 385-12  is other than by trial de novo.
 385-13        (b)  After service of the petition on a state agency and
 385-14  within the time permitted for filing an answer, or within
 385-15  additional time allowed by the court, the agency shall send to the
 385-16  reviewing court the original or a certified copy of the entire
 385-17  record of the proceeding under review.  The record shall be filed
 385-18  with the clerk of the court.  The record may be shortened by
 385-19  stipulation of all parties to the review proceedings.  The court
 385-20  may assess additional costs against a party who unreasonably
 385-21  refuses to stipulate to limit the record, unless the party is
 385-22  subject to a rule adopted under Section 2001.177 requiring payment
 385-23  of all costs of record preparation.  The court may require or
 385-24  permit later corrections or additions to the record.
 385-25        (c)  A party may apply to the court to present additional
 385-26  evidence.  If the court is satisfied that the additional evidence
 385-27  is material and that there were good reasons for the failure to
  386-1  present it in the proceeding before the state agency, the court may
  386-2  order that the additional evidence be taken before the agency on
  386-3  conditions determined by the court.  The agency may change its
  386-4  findings and decision by reason of the additional evidence and
  386-5  shall file the additional evidence and any changes, new findings,
  386-6  or decisions with the reviewing court.
  386-7        (d)  The party seeking judicial review shall offer, and the
  386-8  reviewing court shall admit, the state agency record into evidence
  386-9  as an exhibit.
 386-10        (e)  A court shall conduct the review sitting without a jury
 386-11  and is confined to the agency record, except that the court may
 386-12  receive evidence of procedural irregularities alleged to have
 386-13  occurred before the agency that are not reflected in the record.
 386-14  (V.A.C.S. Art. 6252-13a, Sec. 19(d).)
 386-15        Sec. 2001.176.  PETITION INITIATING JUDICIAL REVIEW.  (a)  A
 386-16  person initiates judicial review in a contested case by filing a
 386-17  petition not later than the 30th day after the date on which the
 386-18  decision that is the subject of complaint is final and appealable.
 386-19        (b)  Unless otherwise provided by statute:
 386-20              (1)  the petition must be filed in a Travis County
 386-21  district court;
 386-22              (2)  a copy of the petition must be served on the state
 386-23  agency and each party of record in the proceedings before the
 386-24  agency; and
 386-25              (3)  the filing of the petition vacates a state agency
 386-26  decision for which trial de novo is the manner of review authorized
 386-27  by law but does not affect the enforcement of an agency decision
  387-1  for which another manner of review is authorized.  (V.A.C.S. Art.
  387-2  6252-13a, Sec. 19(b).)
  387-3        Sec. 2001.177.  COST OF PREPARING AGENCY RECORD.  (a)  A
  387-4  state agency by rule may require a party who appeals a final
  387-5  decision in a contested case to pay all or a part of the cost of
  387-6  preparation of the original or a certified copy of the record of
  387-7  the agency proceeding that is required to be sent to the reviewing
  387-8  court.
  387-9        (b)  A charge imposed under this section is a court cost and
 387-10  may be assessed by the court in accordance with the Texas Rules of
 387-11  Civil Procedure.  (V.A.C.S. Art. 6252-13a, Sec. 19(f).)
 387-12        Sec. 2001.178.  CUMULATIVE EFFECT.  This subchapter is
 387-13  cumulative of other means of redress provided by statute.
 387-14  (V.A.C.S. Art. 6252-13a, Sec. 19(a) (part).)
 387-15          (Sections 2001.179-2001.200 reserved for expansion)
 387-16                   SUBCHAPTER H.  COURT ENFORCEMENT
 387-17        Sec. 2001.201.  COURT ENFORCEMENT OF SUBPOENA OR COMMISSION.
 387-18  (a)  If a person fails to comply with a subpoena or commission
 387-19  issued under this chapter, the state agency issuing the subpoena or
 387-20  commission, acting through the attorney general, or the party
 387-21  requesting the subpoena or commission, may bring suit to enforce
 387-22  the subpoena or commission in a district court in Travis County or
 387-23  in the county in which a hearing conducted by the agency may be
 387-24  held.
 387-25        (b)  A court that determines that good cause exists for the
 387-26  issuance of the subpoena or commission shall order compliance with
 387-27  the subpoena or commission.  The court may hold in contempt a
  388-1  person who does not obey the order.  (V.A.C.S. Art. 6252-13a, Sec.
  388-2  14(n).)
  388-3        Sec. 2001.202.  COURT ENFORCEMENT OF FINAL ORDERS, DECISIONS,
  388-4  AND RULES.  (a)  The attorney general, on the request of a state
  388-5  agency to which it appears that a person is violating, about to
  388-6  violate, or failing or refusing to comply with a final order or
  388-7  decision or an agency rule, may bring an action in a district court
  388-8  authorized to exercise judicial review of the final order or
  388-9  decision or the rule to:
 388-10              (1)  enjoin or restrain the continuation or
 388-11  commencement of the violation; or
 388-12              (2)  compel compliance with the final order or decision
 388-13  or the rule.
 388-14        (b)  The action authorized by this section is in addition to
 388-15  any other remedy provided by law.  (V.A.C.S. Art. 6252-13a, Sec.
 388-16  19A.)
 388-17          (Sections 2001.203-2001.220 reserved for expansion)
 388-18                       SUBCHAPTER I.  EXCEPTIONS
 388-19        Sec. 2001.221.  DRIVER'S LICENSES.  This chapter does not
 388-20  apply to a suspension, revocation, cancellation, denial, or
 388-21  disqualification of a driver's license or commercial driver's
 388-22  license as authorized by:
 388-23              (1)  Article IV, Chapter 173, Acts of the 47th
 388-24  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
 388-25  Civil Statutes);
 388-26              (2)  the Texas Commercial Driver's License Act (Article
 388-27  6687b-2, Revised Statutes);
  389-1              (3)  the Texas Motor Vehicle Safety-Responsibility Act
  389-2  (Article 6701h, Vernon's Texas Civil Statutes);
  389-3              (4)  Chapter 434, Acts of the 61st Legislature, Regular
  389-4  Session, 1969 (Article 6701l-5, Vernon's Texas Civil Statutes); or
  389-5              (5)  Section 13, Article 42.12, Code of Criminal
  389-6  Procedure.  (V.A.C.S. Art. 6252-13a, Sec. 21(a).)
  389-7        Sec. 2001.222.  STATE AGENCY PERSONNEL RULES AND PRACTICES.
  389-8  This chapter does not apply to matters related solely to the
  389-9  internal personnel rules and practices of a state agency.
 389-10  (V.A.C.S. Art. 6252-13a, Sec. 21(d).)
 389-11        Sec. 2001.223.  EXCEPTIONS FROM DECLARATORY JUDGMENT, COURT
 389-12  ENFORCEMENT, AND CONTESTED CASE PROVISIONS.  Section 2001.038 and
 389-13  Subchapters C-H do not apply to:
 389-14              (1)  the granting, payment, denial, or withdrawal of
 389-15  financial or medical assistance or benefits under service programs
 389-16  of the Texas Department of Human Services;
 389-17              (2)  action by the Banking Commissioner or the State
 389-18  Banking Board regarding the issuance of a state bank charter for a
 389-19  bank to assume the assets and liabilities of a state bank that the
 389-20  commissioner determines to be in an unsafe condition as defined by
 389-21  Section 1, Article 1a, Chapter VIII, The Texas Banking Code
 389-22  (Article 342-801a, Vernon's Texas Civil Statutes);
 389-23              (3)  a hearing or interview conducted by the Board of
 389-24  Pardons and Paroles or the pardons and paroles division of the
 389-25  Texas Department of Criminal Justice relating to the grant,
 389-26  rescission, or revocation of parole or other form of administrative
 389-27  release; or
  390-1              (4)  the suspension, revocation, or termination of the
  390-2  certification of a breath analysis operator or technical supervisor
  390-3  under the rules of the Department of Public Safety.  (V.A.C.S. Art.
  390-4  6252-13a, Secs. 21(b), (e), (f), (i).)
  390-5        Sec. 2001.224.  TEXAS EMPLOYMENT COMMISSION.  Section
  390-6  2001.038 and Subchapters C-H do not apply to a hearing by the Texas
  390-7  Employment Commission to determine whether or not a claimant is
  390-8  entitled to unemployment compensation, and the remainder of this
  390-9  chapter does not apply other than to matters of unemployment
 390-10  insurance maintained by the commission.  Regarding unemployment
 390-11  insurance matters, the commission may not comply with Section
 390-12  2001.004(3) or 2001.005 relating to orders and decisions.
 390-13  (V.A.C.S. Art. 6252-13a, Sec. 21(g).)
 390-14        Sec. 2001.225.  CERTAIN ALCOHOLIC BEVERAGE CODE APPEALS.
 390-15  Section 2001.176(b)(1) does not apply to an appeal under Section
 390-16  32.18, Alcoholic Beverage Code.  (V.A.C.S. Art. 6252-13a, Sec.
 390-17  21(h).)
 390-18          (Sections 2001.226-2001.900 reserved for expansion)
 390-19                     SUBCHAPTER Z.  MISCELLANEOUS
 390-20        Sec. 2001.901.  APPEAL FROM DISTRICT COURT.  (a)  A party may
 390-21  appeal a final district court judgment under this chapter in the
 390-22  manner provided for civil actions generally.
 390-23        (b)  An appeal bond may not be required of a state agency.
 390-24  (V.A.C.S. Art. 6252-13a, Sec. 20.)
 390-25        Sec. 2001.902.  SAVINGS CLAUSE.  This chapter does not repeal
 390-26  a statutory provision that confers investigatory authority on a
 390-27  state agency, including a provision that grants an agency the
  391-1  power, in connection with investigatory authority, to:
  391-2              (1)  take depositions;
  391-3              (2)  administer oaths or affirmations;
  391-4              (3)  examine witnesses;
  391-5              (4)  receive evidence;
  391-6              (5)  conduct hearings; or
  391-7              (6)  issue subpoenas or summons.  (V.A.C.S. Art.
  391-8  6252-13a, Sec. 22 (part).)
  391-9         CHAPTER 2002.  TEXAS REGISTER AND ADMINISTRATIVE CODE
 391-10                   SUBCHAPTER A.  GENERAL PROVISIONS
 391-11  Sec. 2002.001.  DEFINITIONS
 391-12  Sec. 2002.002.  PURPOSE
 391-13          (Sections 2002.003-2002.010 reserved for expansion)
 391-14                     SUBCHAPTER B.  TEXAS REGISTER
 391-15  Sec. 2002.011.  TEXAS REGISTER
 391-16  Sec. 2002.012.  SUMMARIES OF OPINIONS AND REQUESTS FOR
 391-17                    OPINIONS
 391-18  Sec. 2002.013.  FREQUENCY OF PUBLICATION
 391-19  Sec. 2002.014.  OMISSION OF INFORMATION
 391-20  Sec. 2002.015.  DISTRIBUTION
 391-21  Sec. 2002.016.  FILING PROCEDURES
 391-22  Sec. 2002.017.  RULES
 391-23  Sec. 2002.018.  MICROFILM AND ELECTRONIC STORAGE
 391-24  Sec. 2002.019.  TABLE OF CONTENTS; INDEX
 391-25  Sec. 2002.020.  CERTIFICATION
 391-26  Sec. 2002.021.  AGENCY LIAISON
 391-27  Sec. 2002.022.  EVIDENTIARY VALUE OF TEXAS REGISTER;
  392-1                    CITATION
  392-2  Sec. 2002.023.  EXCEPTIONS
  392-3          (Sections 2002.024-2002.050 reserved for expansion)
  392-4               SUBCHAPTER C.  TEXAS ADMINISTRATIVE CODE
  392-5  Sec. 2002.051.  PUBLICATION OF TEXAS ADMINISTRATIVE CODE
  392-6  Sec. 2002.052.  OMISSION OF INFORMATION
  392-7  Sec. 2002.053.  PURCHASE AND RESALE OF ADMINISTRATIVE CODE
  392-8  Sec. 2002.054.  EVIDENTIARY VALUE OF ADMINISTRATIVE CODE
  392-9  Sec. 2002.055.  RULES
 392-10  Sec. 2002.056.  CONFIDENTIALITY OF DATA BASE
 392-11         CHAPTER 2002.  TEXAS REGISTER AND ADMINISTRATIVE CODE
 392-12                   SUBCHAPTER A.  GENERAL PROVISIONS
 392-13        Sec. 2002.001.  DEFINITIONS.  In this chapter:
 392-14              (1)  "Administrative code" means the Texas
 392-15  Administrative Code.
 392-16              (2)  "State agency" means a state officer, board,
 392-17  commission, or department with statewide jurisdiction that makes
 392-18  rules or determines contested cases other than:
 392-19                    (A)  an agency wholly financed by federal money;
 392-20                    (B)  the legislature;
 392-21                    (C)  the courts;
 392-22                    (D)  the Texas Workers' Compensation Commission;
 392-23  or
 392-24                    (E)  an institution of higher education.
 392-25              (3)  The following terms have the meanings assigned by
 392-26  Section 2001.003:
 392-27                    (A)  "contested case";
  393-1                    (B)  "license";
  393-2                    (C)  "licensing";
  393-3                    (D)  "party";
  393-4                    (E)  "person"; and
  393-5                    (F)  "rule."  (V.A.C.S. Art. 6252-13a, Sec. 3
  393-6  (part); Art. 6252-13b, Sec. 2.)
  393-7        Sec. 2002.002.  PURPOSE.  It is the public policy of this
  393-8  state to provide adequate and proper public notice of proposed
  393-9  state agency rules and state agency actions through publication of
 393-10  a state register.  (V.A.C.S. Art. 6252-13a, Sec. 1 (part).)
 393-11          (Sections 2002.003-2002.010 reserved for expansion)
 393-12                     SUBCHAPTER B.  TEXAS REGISTER
 393-13        Sec. 2002.011.  TEXAS REGISTER.  The secretary of state shall
 393-14  compile, index, cross-index to statute, and publish a publication
 393-15  to be known as the Texas Register.  The register shall contain:
 393-16              (1)  notices of proposed rules issued and filed in the
 393-17  office of the secretary of state as provided by Subchapter B of
 393-18  Chapter 2001;
 393-19              (2)  the text of rules adopted and filed in the office
 393-20  of the secretary of state;
 393-21              (3)  notices of open meetings issued and filed in the
 393-22  office of the secretary of state as provided by law;
 393-23              (4)  executive orders issued by the governor;
 393-24              (5)  summaries of requests for opinions of the attorney
 393-25  general and of the State Ethics Advisory Commission;
 393-26              (6)  summaries of opinions of the attorney general and
 393-27  of the State Ethics Advisory Commission; and
  394-1              (7)  other information of general interest to the
  394-2  public of this state, including:
  394-3                    (A)  federal legislation or regulations affecting
  394-4  the state or a state agency; and
  394-5                    (B)  state agency organizational and personnel
  394-6  changes.  (V.A.C.S. Art. 6252-13a, Sec. 6(a) (part).)
  394-7        Sec. 2002.012.  SUMMARIES OF OPINIONS AND REQUESTS FOR
  394-8  OPINIONS.  The attorney general or the State Ethics Advisory
  394-9  Commission, as appropriate, shall prepare and forward to the
 394-10  secretary of state for publication in the Texas Register:
 394-11              (1)  summaries of requests for opinions under Section
 394-12  2002.011(5); and
 394-13              (2)  summaries of opinions under Section 2002.011(6).
 394-14  (V.A.C.S. Art. 6252-13a, Sec. 6(a) (part).)
 394-15        Sec. 2002.013.  FREQUENCY OF PUBLICATION.  The secretary of
 394-16  state shall publish the Texas Register at regular intervals, but
 394-17  not less often than 100 times each calendar year.  (V.A.C.S. Art.
 394-18  6252-13a, Sec. 6(b).)
 394-19        Sec. 2002.014.  OMISSION OF INFORMATION.  The secretary of
 394-20  state may omit information from the Texas Register if:
 394-21              (1)  the secretary determines that publication of the
 394-22  information would be cumbersome, expensive, or otherwise
 394-23  inexpedient;
 394-24              (2)  on application to the adopting state agency, the
 394-25  information is made available in printed or processed form by the
 394-26  agency; and
 394-27              (3)  the register contains a notice stating the general
  395-1  subject matter of the information and the manner in which a copy of
  395-2  it may be obtained.  (V.A.C.S. Art. 6252-13a, Sec. 6(c).)
  395-3        Sec. 2002.015.  DISTRIBUTION.  (a)  On request, the secretary
  395-4  of state shall make one copy of each issue of the Texas Register
  395-5  available without charge to:
  395-6              (1)  each board, commission, and department with
  395-7  statewide jurisdiction;
  395-8              (2)  the governor;
  395-9              (3)  the lieutenant governor;
 395-10              (4)  the attorney general;
 395-11              (5)  each member of the legislature;
 395-12              (6)  each county clerk;
 395-13              (7)  the Supreme Court of Texas;
 395-14              (8)  the Texas Court of Criminal Appeals; and
 395-15              (9)  each court of appeals.
 395-16        (b)  The secretary of state shall make copies of the Texas
 395-17  Register available to other persons for a reasonable fee to be
 395-18  fixed by the secretary.  (V.A.C.S. Art. 6252-13a, Secs. 6(d), (e).)
 395-19        Sec. 2002.016.  FILING PROCEDURES.  (a)  To file a document
 395-20  for publication in the Texas Register, a state agency shall, during
 395-21  normal working hours:
 395-22              (1)  deliver to the office of the secretary of state
 395-23  two certified copies of the document for filing; or
 395-24              (2)  send to the secretary of state over dedicated
 395-25  cable or commercial lines between word or data processors one copy
 395-26  of the document to be filed and deliver to the office of the
 395-27  secretary a letter of certification that is signed by the agency's
  396-1  designated certifying agent and liaison and that contains a
  396-2  statement specifying the type of information electronically sent.
  396-3        (b)  On receipt of a document required to be filed in the
  396-4  office of the secretary of state and published in the Texas
  396-5  Register, the secretary shall note the day and hour of filing on
  396-6  the certified copies of the document or on the letter of
  396-7  certification.
  396-8        (c)  One copy of each filed document shall be maintained in
  396-9  original form or on microfilm in a permanent register in the office
 396-10  of the secretary of state.  (V.A.C.S. Art. 6252-13a, Secs. 3(9),
 396-11  (10); 8(a) (part).)
 396-12        Sec. 2002.017.  RULES.  (a)  The secretary of state may adopt
 396-13  rules to ensure the effective administration of this subchapter,
 396-14  including rules prescribing paper size and the format of documents
 396-15  required to be filed for publication.
 396-16        (b)  The secretary of state may refuse to accept for filing
 396-17  and publication a document that does not substantially conform to
 396-18  the rules.  (V.A.C.S. Art. 6252-13a, Sec. 8(c).)
 396-19        Sec. 2002.018.  MICROFILM AND ELECTRONIC STORAGE.  The
 396-20  secretary of state may maintain on microfilm or on an electronic
 396-21  storage and retrieval system the files of state agency rules and
 396-22  other information required to be published in the Texas Register.
 396-23  After microfilming or electronically storing the information, the
 396-24  secretary may destroy the original copies of the information
 396-25  submitted for publication.  (V.A.C.S. Art. 6252-13a, Sec. 8(d).)
 396-26        Sec. 2002.019.  TABLE OF CONTENTS; INDEX.  (a)  Each issue of
 396-27  the Texas Register must contain a table of contents.
  397-1        (b)  A cumulative index to all information required to be
  397-2  published in the Texas Register during the previous year shall be
  397-3  published at least once each year.  (V.A.C.S. Art. 6252-13a, Secs.
  397-4  9(a), (b).)
  397-5        Sec. 2002.020.  CERTIFICATION.  An official of a submitting
  397-6  state agency who is authorized to certify documents of the agency
  397-7  must certify each document that is filed with the secretary of
  397-8  state for publication.  (V.A.C.S. Art. 6252-13a, Sec. 9(c).)
  397-9        Sec. 2002.021.  AGENCY LIAISON.  A state agency shall
 397-10  designate at least one individual to act as a liaison through whom
 397-11  all required documents may be submitted to the secretary of state
 397-12  for filing and publication.  (V.A.C.S. Art. 6252-13a, Sec. 9(d).)
 397-13        Sec. 2002.022.  EVIDENTIARY VALUE OF TEXAS REGISTER;
 397-14  CITATION.  (a)  The contents of the Texas Register are to be
 397-15  judicially noticed and are prima facie evidence of the text of the
 397-16  documents and of the fact that they are in effect on and after the
 397-17  date of the notation.
 397-18        (b)  Without prejudice to another mode of citation, the
 397-19  contents of the Texas Register may be cited by volume and page
 397-20  number.  (V.A.C.S. Art. 6252-13a, Sec. 4(c).)
 397-21        Sec. 2002.023.  EXCEPTIONS.  This subchapter does not apply
 397-22  to:
 397-23              (1)  a suspension, revocation, cancellation, denial, or
 397-24  disqualification of a driver's license or commercial driver's
 397-25  license as authorized by:
 397-26                    (A)  Article IV, Chapter 173, Acts of the 47th
 397-27  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
  398-1  Civil Statutes);
  398-2                    (B)  the Texas Commercial Driver's License Act
  398-3  (Article 6687b-2, Revised Statutes);
  398-4                    (C)  the Texas Motor Vehicle
  398-5  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
  398-6  Statutes);
  398-7                    (D)  Chapter 434, Acts of the 61st Legislature,
  398-8  Regular Session, 1969 (Article 6701l-5, Vernon's Texas Civil
  398-9  Statutes); or
 398-10                    (E)  Section 13, Article 42.12, Code of Criminal
 398-11  Procedure;
 398-12              (2)  matters related solely to the internal personnel
 398-13  rules and practices of a state agency; or
 398-14              (3)  the Texas Employment Commission, other than to
 398-15  matters of unemployment insurance maintained by the commission.
 398-16  (V.A.C.S. Art. 6252-13a, Secs. 21(a), (d), (g) (part).)
 398-17          (Sections 2002.024-2002.050 reserved for expansion)
 398-18               SUBCHAPTER C.  TEXAS ADMINISTRATIVE CODE
 398-19        Sec. 2002.051.  PUBLICATION OF TEXAS ADMINISTRATIVE CODE.
 398-20  (a)  The secretary of state shall compile, index, and publish a
 398-21  Texas Administrative Code.
 398-22        (b)  The administrative code shall be periodically
 398-23  supplemented as necessary, but not less often than once each year.
 398-24        (c)  The administrative code shall contain each rule adopted
 398-25  by a state agency under Chapter 2001, but may not contain emergency
 398-26  rules adopted under Section 2001.034.  (V.A.C.S. Art. 6252-13b,
 398-27  Sec. 3(a).)
  399-1        Sec. 2002.052.  OMISSION OF INFORMATION.  (a)  The secretary
  399-2  of state may omit from the administrative code a rule that is
  399-3  general in form if its inclusion in the code is impracticable,
  399-4  undesirable, or unnecessary because it is of local or limited
  399-5  application.
  399-6        (b)  The secretary of state may omit information from the
  399-7  administrative code if:
  399-8              (1)  the secretary determines that publication of the
  399-9  information would be cumbersome, expensive, or otherwise
 399-10  inexpedient;
 399-11              (2)  on application to the adopting state agency, the
 399-12  information is made available in printed or processed form by the
 399-13  agency; and
 399-14              (3)  the administrative code contains a notice stating
 399-15  the general subject matter of the information and the manner in
 399-16  which a copy of it may be obtained.
 399-17        (c)  Omission from the administrative code under this section
 399-18  does not affect the validity or effectiveness of an omitted rule.
 399-19  (V.A.C.S. Art. 6252-13b, Sec. 3(b).)
 399-20        Sec. 2002.053.  PURCHASE AND RESALE OF ADMINISTRATIVE CODE.
 399-21  (a)  To promote efficiency and economy in state government, the
 399-22  secretary of state may periodically purchase copies of the
 399-23  administrative code for resale and distribution to other branches
 399-24  of state government, state agencies, or institutions.
 399-25        (b)  The purchase does not require the secretary of state to
 399-26  engage in competitive bidding procedures to enter into the contract
 399-27  or license to publish the code.  (V.A.C.S. Art. 6252-13b, Sec.
  400-1  3(c).)
  400-2        Sec. 2002.054.  EVIDENTIARY VALUE OF ADMINISTRATIVE CODE.
  400-3  State agency rules published in the administrative code, as
  400-4  approved by the secretary of state and as amended by documents
  400-5  later filed with the office of the secretary:
  400-6              (1)  are to be judicially noticed; and
  400-7              (2)  are prima facie evidence of the text of the rules
  400-8  and of the fact that they are in effect on and after the date of
  400-9  the notation.  (V.A.C.S. Art. 6252-13b, Sec. 4.)
 400-10        Sec. 2002.055.  RULES.  (a)  The secretary of state may adopt
 400-11  rules to ensure the effective administration of this subchapter.
 400-12        (b)  The rules may establish:
 400-13              (1)  titles of the administrative code; and
 400-14              (2)  a system of classification of the subject matter
 400-15  of the administrative code.  (V.A.C.S. Art. 6252-13b, Sec. 5.)
 400-16        Sec. 2002.056.  CONFIDENTIALITY OF DATA BASE.  (a)  The data
 400-17  base for the administrative code is confidential and is exempt from
 400-18  disclosure under Chapter 552.
 400-19        (b)  In this section, "data base" means the machine-readable
 400-20  form of the material prepared for and used in the publication of
 400-21  the administrative code and includes:
 400-22              (1)  indexes;
 400-23              (2)  annotations;
 400-24              (3)  tables of contents;
 400-25              (4)  tables of authority;
 400-26              (5)  cross-references;
 400-27              (6)  compiled rules; and
  401-1              (7)  other unique material.  (V.A.C.S. Art. 6252-13b,
  401-2  Sec. 5A.)
  401-3        CHAPTER 2003.  STATE OFFICE OF ADMINISTRATIVE HEARINGS
  401-4                   SUBCHAPTER A.  GENERAL PROVISIONS
  401-5  Sec. 2003.001.  DEFINITIONS
  401-6          (Sections 2003.002-2003.020 reserved for expansion)
  401-7        SUBCHAPTER B.  STATE OFFICE OF ADMINISTRATIVE HEARINGS
  401-8  Sec. 2003.021.  OFFICE
  401-9  Sec. 2003.022.  CHIEF ADMINISTRATIVE LAW JUDGE
 401-10          (Sections 2003.023-2003.040 reserved for expansion)
 401-11                SUBCHAPTER C.  STAFF AND ADMINISTRATION
 401-12  Sec. 2003.041.  EMPLOYMENT OF ADMINISTRATIVE LAW JUDGES
 401-13  Sec. 2003.042.  POWERS OF ADMINISTRATIVE LAW JUDGE
 401-14  Sec. 2003.043.  TEMPORARY ADMINISTRATIVE LAW JUDGE
 401-15  Sec. 2003.044.  STAFF
 401-16  Sec. 2003.045.  ADMINISTRATIVE DIVISION
 401-17  Sec. 2003.046.  CENTRAL HEARINGS PANEL
 401-18        CHAPTER 2003.  STATE OFFICE OF ADMINISTRATIVE HEARINGS
 401-19                   SUBCHAPTER A.  GENERAL PROVISIONS
 401-20        Sec. 2003.001.  DEFINITIONS.  In this chapter:
 401-21              (1)  "Administrative law judge" means an individual who
 401-22  presides at an administrative hearing held under Chapter 2001.
 401-23              (2)  "Office" means the State Office of Administrative
 401-24  Hearings.
 401-25              (3)  "State agency" means a state board, commission,
 401-26  department, or other agency that is subject to Chapter 2001.
 401-27  (V.A.C.S. Art. 6252-13f, Sec. 1.)
  402-1          (Sections 2003.002-2003.020 reserved for expansion)
  402-2        SUBCHAPTER B.  STATE OFFICE OF ADMINISTRATIVE HEARINGS
  402-3        Sec. 2003.021.  OFFICE.  (a)  The State Office of
  402-4  Administrative Hearings is a state agency.
  402-5        (b)  The office shall conduct all administrative hearings in
  402-6  contested cases under Chapter 2001 that are before a state agency
  402-7  that does not employ an individual whose only duty is to preside as
  402-8  a hearings officer over matters related to contested cases before
  402-9  the agency.  (V.A.C.S. Art. 6252-13f, Secs. 2(a) (part), (b).)
 402-10        Sec. 2003.022.  CHIEF ADMINISTRATIVE LAW JUDGE.  (a)  The
 402-11  office is under the direction of a chief administrative law judge
 402-12  appointed by the governor for a two-year term.
 402-13        (b)  To be eligible for appointment as chief administrative
 402-14  law judge, an individual must:
 402-15              (1)  be licensed to practice law in this state;
 402-16              (2)  be board-certified in administrative law; and
 402-17              (3)  have at least five years' experience in conducting
 402-18  administrative hearings under Chapter 2001.  (V.A.C.S. Art.
 402-19  6252-13f, Sec. 2(a) (part).)
 402-20          (Sections 2003.023-2003.040 reserved for expansion)
 402-21                SUBCHAPTER C.  STAFF AND ADMINISTRATION
 402-22        Sec. 2003.041.  EMPLOYMENT OF ADMINISTRATIVE LAW JUDGES.  (a)
 402-23  The chief administrative law judge shall employ administrative law
 402-24  judges to conduct hearings for state agencies subject to this
 402-25  chapter.
 402-26        (b)  To be eligible for employment with the office as an
 402-27  administrative law judge, an individual must be licensed to
  403-1  practice law in this state and meet other requirements prescribed
  403-2  by the chief administrative law judge.  (V.A.C.S. Art. 6252-13f,
  403-3  Secs. 3(a), (b) (part).)
  403-4        Sec. 2003.042.  POWERS OF ADMINISTRATIVE LAW JUDGE.  An
  403-5  administrative law judge may:
  403-6              (1)  administer an oath;
  403-7              (2)  take testimony;
  403-8              (3)  rule on a question of evidence;
  403-9              (4)  subject to review by the state agency before which
 403-10  the contested case is brought, issue an order relating to discovery
 403-11  or another hearing or prehearing matter, including an order
 403-12  imposing a sanction that the agency may impose; and
 403-13              (5)  issue a proposal for decision that includes
 403-14  findings of fact and conclusions of law.  (V.A.C.S. Art. 6252-13f,
 403-15  Sec. 3(b) (part).)
 403-16        Sec. 2003.043.  TEMPORARY ADMINISTRATIVE LAW JUDGE.  (a)  The
 403-17  chief administrative law judge may contract with a qualified
 403-18  individual to serve as a temporary administrative law judge if an
 403-19  administrative law judge employed by the office is not available to
 403-20  hear a case within a reasonable time.
 403-21        (b)  The chief administrative law judge shall adopt rules
 403-22  relating to the qualifications of a temporary judge.  (V.A.C.S.
 403-23  Art. 6252-13f, Sec. 3(c).)
 403-24        Sec. 2003.044.  STAFF.  The chief administrative law judge
 403-25  may hire staff as required to perform the powers and duties of the
 403-26  office.  (V.A.C.S. Art. 6252-13f, Sec. 3(d).)
 403-27        Sec. 2003.045.  ADMINISTRATIVE DIVISION.  An administrative
  404-1  division in the office oversees the training, evaluation,
  404-2  discipline, and promotion of all administrative law judges employed
  404-3  by the office.  (V.A.C.S. Art. 6252-13f, Sec. 4 (part).)
  404-4        Sec. 2003.046.  CENTRAL HEARINGS PANEL.  (a)  A central
  404-5  hearings panel in the office is composed of six senior
  404-6  administrative law judges appointed by the chief administrative law
  404-7  judge.
  404-8        (b)  Under the direction of the chief administrative law
  404-9  judge, the central panel shall coordinate and supervise the
 404-10  operation of administrative hearings conducted by the office.
 404-11  (V.A.C.S. Art. 6252-13f, Sec. 4 (part).)
 404-12          CHAPTER 2004.  REPRESENTATION BEFORE STATE AGENCIES
 404-13  Sec. 2004.001.  DEFINITIONS
 404-14  Sec. 2004.002.  REGISTRATION
 404-15  Sec. 2004.003.  EXEMPTIONS FROM REGISTRATION
 404-16  Sec. 2004.004.  REPORTING AND FILING OF REGISTRATIONS
 404-17  Sec. 2004.005.  PENALTY
 404-18          CHAPTER 2004.  REPRESENTATION BEFORE STATE AGENCIES
 404-19        Sec. 2004.001.  DEFINITIONS.  In this chapter:
 404-20              (1)  "Individual" includes a member of the legislature,
 404-21  any other state officer, and a state employee.
 404-22              (2)  "State agency" means an office, department,
 404-23  commission, or board of the executive branch of state government.
 404-24  (V.A.C.S. Art. 6252-23, Sec. 1.)
 404-25        Sec. 2004.002.  REGISTRATION.  (a)  An individual who appears
 404-26  before a state agency or contacts in person an officer or employee
 404-27  of a state agency on behalf of an individual, firm, partnership,
  405-1  corporation, or association about a matter before that agency shall
  405-2  register with the state agency:
  405-3              (1)  the name and address of the registrant;
  405-4              (2)  the name and address of the person on whose behalf
  405-5  the appearance or contact is made; and
  405-6              (3)  a statement on whether the registrant has received
  405-7  or expects to receive any money, thing of value, or financial
  405-8  benefit for the appearance or contact.
  405-9        (b)  Each state agency shall provide for recording the
 405-10  registration in a record and shall maintain the record.  (V.A.C.S.
 405-11  Art. 6252-23, Sec. 2 (part).)
 405-12        Sec. 2004.003.  EXEMPTIONS FROM REGISTRATION.  An individual
 405-13  is not required to register under Section 2004.002 because of:
 405-14              (1)  the individual's appearance or contact on an
 405-15  interagency matter if the individual is an officer or employee of
 405-16  the state agency; or
 405-17              (2)  a contact by the individual with the state agency
 405-18  or an officer or employee of the agency if the contact:
 405-19                    (A)  is solely for obtaining information and an
 405-20  attempt is not made to influence the action of an officer or
 405-21  employee of the agency;
 405-22                    (B)  consists of making an appearance and
 405-23  participating at a public hearing;
 405-24                    (C)  is made in a matter in which a pleading or
 405-25  other instrument that discloses the individual's representation is
 405-26  on file with the agency; or
 405-27                    (D)  is one for which the individual does not
  406-1  receive compensation or any thing of value.  (V.A.C.S. Art.
  406-2  6252-23, Secs. 2 (part), 3A.)
  406-3        Sec. 2004.004.  REPORTING AND FILING OF REGISTRATIONS.  (a)
  406-4  A state agency shall prepare a report that includes the information
  406-5  from all registrations filed with the agency in a calendar quarter.
  406-6        (b)  The agency shall file the report with the secretary of
  406-7  state not later than the 10th day of the month after the end of the
  406-8  calendar quarter for which the report was prepared.
  406-9        (c)  The secretary of state shall index each report and keep
 406-10  the report on file for four years after the date the report is
 406-11  filed.  (V.A.C.S. Art. 6252-23, Sec. 3.)
 406-12        Sec. 2004.005.  PENALTY.  (a)  An individual commits an
 406-13  offense if the individual does not register as required by this
 406-14  chapter.
 406-15        (b)  An offense under this chapter is a misdemeanor
 406-16  punishable by:
 406-17              (1)  a fine of not more than $500;
 406-18              (2)  confinement in jail for a term not to exceed six
 406-19  months; or
 406-20              (3)  both the fine and imprisonment.  (V.A.C.S. Art.
 406-21  6252-23, Sec. 4.)
 406-22                   CHAPTER 2005.  PERMIT PROCESSING
 406-23  Sec. 2005.001.  DEFINITIONS
 406-24  Sec. 2005.002.  EXCEPTIONS
 406-25  Sec. 2005.003.  PERMIT PROCESSING PERIODS
 406-26  Sec. 2005.004.  GOOD CAUSE
 406-27  Sec. 2005.005.  DUTY OF CHIEF ADMINISTRATOR
  407-1  Sec. 2005.006.  COMPLAINT PROCEDURE
  407-2  Sec. 2005.007.  REPORTS
  407-3                   CHAPTER 2005.  PERMIT PROCESSING
  407-4        Sec. 2005.001.  DEFINITIONS.  In this chapter:
  407-5              (1)  "Permit" means an authorization by a license,
  407-6  certificate, registration, or other form that is required by law or
  407-7  state agency rules to engage in a particular business.
  407-8              (2)  "State agency" means a department, board, bureau,
  407-9  commission, division, office, council, or other agency of the
 407-10  state.  (V.A.C.S. Art. 6252-13b.1, Sec. 2 (part).)
 407-11        Sec. 2005.002.  EXCEPTIONS.  This chapter does not apply to a
 407-12  permit:
 407-13              (1)  for which  an agency's median time during the
 407-14  preceding calendar year for processing a permit application from
 407-15  receipt of the initial application to the final permit decision did
 407-16  not exceed seven days;
 407-17              (2)  issued in connection with any form of gaming or
 407-18  gambling; or
 407-19              (3)  issued under the Alcoholic Beverage Code.
 407-20  (V.A.C.S. Art. 6252-13b.1, Sec. 4.)
 407-21        Sec. 2005.003.  PERMIT PROCESSING PERIODS.  (a)  A state
 407-22  agency that issues permits shall adopt procedural rules for
 407-23  processing permit applications and issuing permits.
 407-24        (b)  The rules must specify:
 407-25              (1)  the period, beginning on the date the agency
 407-26  receives an initial permit application, in which the agency must
 407-27  provide written notice to the applicant:
  408-1                    (A)  stating that the permit application is
  408-2  complete and accepted for filing; or
  408-3                    (B)  stating that the permit application is
  408-4  incomplete and specifying the additional information required for
  408-5  acceptance; and
  408-6              (2)  the period, beginning on the date the agency
  408-7  receives a complete permit application, in which the agency must
  408-8  deny or approve the permit application.
  408-9        (c)  A state agency may establish separate rules under this
 408-10  section for contested and uncontested cases.
 408-11        (d)  A state agency shall publish with rules proposed under
 408-12  this section:
 408-13              (1)  a statement of the agency's minimum, maximum, and
 408-14  median times for processing a permit application, from the date the
 408-15  agency received an initial permit application to the date of the
 408-16  final permit decision, using the agency's performance in the 12
 408-17  months preceding the date the proposed rules are published; and
 408-18              (2)  a justification of the periods proposed by the
 408-19  rules.  (V.A.C.S. Art. 6252-13b.1, Secs. 3(a), (b).)
 408-20        Sec. 2005.004.  GOOD CAUSE.  A state agency has good cause to
 408-21  exceed the period it establishes for processing a permit
 408-22  application if:
 408-23              (1)  the number of permit applications to be processed
 408-24  exceeds by at least 15 percent the number of permit applications
 408-25  processed in the same quarter of the previous calendar year;
 408-26              (2)  the agency must rely on another public or private
 408-27  entity to process all or a part of the permit applications received
  409-1  by the agency, and the delay is caused by that entity; or
  409-2              (3)  other conditions exist that give the agency good
  409-3  cause for exceeding the established period.  (V.A.C.S. Art.
  409-4  6252-13b.1, Sec. 3(d).)
  409-5        Sec. 2005.005.  DUTY OF CHIEF ADMINISTRATOR.  The chief
  409-6  administrator of each state agency shall ensure that the agency
  409-7  complies with this chapter.  (V.A.C.S. Art. 6252-13b.1, Sec. 5(a)
  409-8  (part).)
  409-9        Sec. 2005.006.  COMPLAINT PROCEDURE.  (a)  A state agency
 409-10  subject to this chapter shall establish by rule a complaint
 409-11  procedure through which a permit applicant can:
 409-12              (1)  complain directly to the chief administrator of
 409-13  the agency if the agency exceeds the established period for
 409-14  processing permits; and
 409-15              (2)  request a timely resolution of any dispute arising
 409-16  from the delay.
 409-17        (b)  The rules must provide for the reimbursement of all
 409-18  filing fees paid by the applicant for a permit application if the
 409-19  chief administrator of the state agency determines that:
 409-20              (1)  the agency exceeded the established period for
 409-21  permit processing; and
 409-22              (2)  the agency did not establish good cause for
 409-23  exceeding the established period.
 409-24        (c)  The state agency shall include information about the
 409-25  complaint procedure in permit application forms issued by the
 409-26  agency.  (V.A.C.S. Art. 6252-13b.1, Secs. 5(a) (part), (b).)
 409-27        Sec. 2005.007.  REPORTS.  (a)  A state agency that issues
  410-1  permits shall report biennially to the governor and the legislature
  410-2  on its permit application system.
  410-3        (b)  The report must include:
  410-4              (1)  a statement of the periods the agency has adopted
  410-5  under this chapter for processing each type of permit it issues,
  410-6  specifying any changes the agency made since the last report;
  410-7              (2)  a statement of the minimum, maximum, and median
  410-8  times for processing each type of permit during the period since
  410-9  the last report, from the date the agency receives the initial
 410-10  permit application to the final permit decision;
 410-11              (3)  a description of the complaint procedure required
 410-12  by Section 2005.006;
 410-13              (4)  a summary of the number and disposition of
 410-14  complaints received by the agency under Section 2005.006 since the
 410-15  last report; and
 410-16              (5)  a description of specific actions taken by the
 410-17  agency since the last report to simplify and improve its permit
 410-18  application, processing, and paperwork requirements.
 410-19        (c)  A state agency shall include the information required by
 410-20  Subsection (b) in each performance report the agency submits to the
 410-21  Legislative Budget Board.  (V.A.C.S. Art. 6252-13b.1, Secs. 5(c),
 410-22  (d).)
 410-23       CHAPTER 2006.  AGENCY ACTIONS AFFECTING SMALL BUSINESSES
 410-24                   SUBCHAPTER A.  ADOPTION OF RULES
 410-25  Sec. 2006.001.  DEFINITIONS
 410-26  Sec. 2006.002.  ADOPTION OF RULES WITH ADVERSE ECONOMIC
 410-27                    EFFECT
  411-1          (Sections 2006.003-2006.010 reserved for expansion)
  411-2      SUBCHAPTER B.  RECOVERY OF COURT COSTS AND ATTORNEY'S FEES
  411-3  Sec. 2006.011.  DEFINITIONS
  411-4  Sec. 2006.012.  EXCEPTIONS
  411-5  Sec. 2006.013.  REQUIREMENTS FOR RECOVERY
  411-6  Sec. 2006.014.  MOTION FOR RECOVERY
  411-7  Sec. 2006.015.  DETERMINATION OF CLAIM
  411-8  Sec. 2006.016.  EFFECT OF DETERMINATION OR ORDER
  411-9       CHAPTER 2006.  AGENCY ACTIONS AFFECTING SMALL BUSINESSES
 411-10                   SUBCHAPTER A.  ADOPTION OF RULES
 411-11        Sec. 2006.001.  DEFINITIONS.  In this subchapter:
 411-12              (1)  "Small business" means a legal entity, including a
 411-13  corporation, partnership, or sole proprietorship that:
 411-14                    (A)  is formed for the purpose of making a
 411-15  profit;
 411-16                    (B)  is independently owned and operated; and
 411-17                    (C)  has fewer than 100 employees or less than $1
 411-18  million in annual gross receipts.
 411-19              (2)  "State agency" means a department, board, bureau,
 411-20  commission, division, office, council, or other agency of the
 411-21  state.  (V.A.C.S. Art. 6252-13b.1, Sec. 2 (part).)
 411-22        Sec. 2006.002.  ADOPTION OF RULES WITH ADVERSE ECONOMIC
 411-23  EFFECT.  (a)  A state agency considering adoption of a rule that
 411-24  would have an adverse economic effect on small businesses shall
 411-25  reduce that effect if doing so is legal and feasible considering
 411-26  the purpose of the statute under which the rule is to be adopted.
 411-27        (b)  To reduce an adverse effect on small businesses, an
  412-1  agency may:
  412-2              (1)  establish separate compliance or reporting
  412-3  requirements for small businesses;
  412-4              (2)  use performance standards in place of design
  412-5  standards for small businesses; or
  412-6              (3)  exempt small businesses from all or part of the
  412-7  rule.
  412-8        (c)  Before adopting a rule that would have an adverse
  412-9  economic effect on small businesses, a state agency shall prepare a
 412-10  statement of the effect of the rule on small businesses.  The
 412-11  statement must include:
 412-12              (1)  an analysis of the cost of compliance with the
 412-13  rule for small businesses; and
 412-14              (2)  a comparison of the cost of compliance for small
 412-15  businesses with the cost of compliance for the largest businesses
 412-16  affected by the rule, using at least one of the following
 412-17  standards:
 412-18                    (A)  cost for each employee;
 412-19                    (B)  cost for each hour of labor; or
 412-20                    (C)  cost for each $100 of sales.
 412-21        (d)  The agency shall include the statement of effect as part
 412-22  of the notice of the proposed rule that the agency files with the
 412-23  secretary of state for publication in the Texas Register.
 412-24        (e)  This section does not apply to a rule adopted under
 412-25  Title 2, Tax Code.  (V.A.C.S. Art. 6252-13b.1, Sec. 6.)
 412-26          (Sections 2006.003-2006.010 reserved for expansion)
 412-27      SUBCHAPTER B.  RECOVERY OF COURT COSTS AND ATTORNEY'S FEES
  413-1        Sec. 2006.011.  DEFINITIONS.  In this subchapter:
  413-2              (1)  "Groundless" means having no basis in law or fact.
  413-3              (2)  "Small business" means a legal entity, including a
  413-4  corporation, partnership, or sole proprietorship that:
  413-5                    (A)  is formed for the purpose of making a
  413-6  profit;
  413-7                    (B)  is independently owned and operated;
  413-8                    (C)  is not a publicly held corporation; and
  413-9                    (D)  has fewer than 100 employees or less than $1
 413-10  million in annual gross receipts at the end of the fiscal year
 413-11  preceding the year of the filing of an administrative adjudicatory
 413-12  proceeding or civil action in which the entity is seeking recovery
 413-13  under this subchapter.
 413-14              (3)  "State agency" means a board, commission,
 413-15  department, or office that:
 413-16                    (A)  is in the executive branch of state
 413-17  government;
 413-18                    (B)  was created by the constitution or a statute
 413-19  of this state; and
 413-20                    (C)  has statewide jurisdiction.  (V.A.C.S. Art.
 413-21  6252-30, Sec. 1.)
 413-22        Sec. 2006.012.  EXCEPTIONS.  This subchapter does not apply
 413-23  to a proceeding or action that is:
 413-24              (1)  filed before September 1, 1987; or
 413-25              (2)  brought under:
 413-26                    (A)  Subchapter E, Chapter 17, Business &
 413-27  Commerce Code (Deceptive Trade Practices-Consumer Protection Act);
  414-1  or
  414-2                    (B)  Chapter 21, Insurance Code.  (V.A.C.S. Art.
  414-3  6252-30, Sec. 4.)
  414-4        Sec. 2006.013.  REQUIREMENTS FOR RECOVERY.  (a)  In an
  414-5  administrative adjudicatory proceeding or a civil action resulting
  414-6  from a complaint issued by a state agency against a small business
  414-7  under the agency's administrative or regulatory functions, the
  414-8  small business may be awarded reasonable attorney's fees and court
  414-9  costs if:
 414-10              (1)  it is a small business at the time it becomes a
 414-11  party to the proceeding or action;
 414-12              (2)  it prevails in the proceeding or action; and
 414-13              (3)  the proceeding or action was groundless and
 414-14  brought:
 414-15                    (A)  in bad faith; or
 414-16                    (B)  for purposes of harassment.
 414-17        (b)  For purposes of this section, a small business prevails
 414-18  in a proceeding or action if there is not:
 414-19              (1)  an adjudication, stipulation, or acceptance of
 414-20  liability; and
 414-21              (2)  a determination of noncompliance, violation,
 414-22  infringement, deficiency, or breach on the part of the small
 414-23  business.
 414-24        (c)  A small business may not recover under this subchapter
 414-25  if the parties have executed a settlement agreement that, while not
 414-26  stipulating liability or violation, requires the small business to
 414-27  take corrective action or pay a monetary sum.  (V.A.C.S. Art.
  415-1  6252-30, Sec. 2.)
  415-2        Sec. 2006.014.  MOTION FOR RECOVERY.  (a)  To recover under
  415-3  this subchapter, a small business, not later than the 30th day
  415-4  after the date of the filing of the administrative adjudicatory
  415-5  proceeding or civil action, must file a written motion that:
  415-6              (1)  alleges that the proceeding or action was
  415-7  groundless and brought:
  415-8                    (A)  in bad faith; or
  415-9                    (B)  for purposes of harassment;
 415-10              (2)  states the facts that justify the small business's
 415-11  claim; and
 415-12              (3)  states that if the claim is dismissed or judgment
 415-13  is awarded to the small business, the small business will seek
 415-14  recovery of attorney's fees and court costs.
 415-15        (b)  A small business may not recover attorney's fees and
 415-16  court costs under this subchapter if, not later than the 30th day
 415-17  after the date the small business gives notice that it has filed a
 415-18  motion under Subsection (a), the state agency:
 415-19              (1)  amends the pleadings so that the small business
 415-20  that has filed the motion is no longer a party to the proceeding or
 415-21  action; or
 415-22              (2)  dismisses the proceeding or action.
 415-23  (V.A.C.S. Art. 6252-30, Secs. 3(a), (b).)
 415-24        Sec. 2006.015.  DETERMINATION OF CLAIM.  (a)  The hearings
 415-25  officer in an administrative adjudicatory proceeding or the court
 415-26  in a civil action shall determine whether the proceeding or action
 415-27  is groundless and brought:
  416-1              (1)  in bad faith; or
  416-2              (2)  for purposes of harassment.
  416-3        (b)  In making the determination, the hearings officer or
  416-4  court shall consider:
  416-5              (1)  the multiplicity of parties;
  416-6              (2)  the complexity of the claims and defenses;
  416-7              (3)  the length of time available to the agency to
  416-8  investigate and conduct discovery; and
  416-9              (4)  affidavits, depositions, and any other relevant
 416-10  matters.
 416-11        (c)  In making a determination, a hearings officer or a court
 416-12  may not consider the amount of damages, civil penalties, fines,
 416-13  taxes, or other monetary recovery sought by the state agency.
 416-14  (V.A.C.S. Art. 6252-30, Secs. 3(c), (e).)
 416-15        Sec. 2006.016.  EFFECT OF DETERMINATION OR ORDER.  A
 416-16  determination made or order issued under this subchapter is not
 416-17  grounds for any liability, sanction, or grievance except as
 416-18  provided by this subchapter.  (V.A.C.S. Art. 6252-30, Sec. 3(d).)
 416-19              (Chapters 2007-2050 reserved for expansion)
 416-20                 SUBTITLE B.  INFORMATION AND PLANNING
 416-21    CHAPTER 2051.  GOVERNMENT DOCUMENTS, PUBLICATIONS, AND NOTICES
 416-22                     SUBCHAPTER A.  OFFICIAL SEALS
 416-23  Sec. 2051.001.  ADOPTION OF SEAL
 416-24          (Sections 2051.002-2051.020 reserved for expansion)
 416-25              SUBCHAPTER B.  PAPER SUPPLIES AND EQUIPMENT
 416-26  Sec. 2051.021.  UNIFORM SIZE OF PAPER SUPPLY AND CABINET
 416-27  Sec. 2051.022.  STATE AGENCY TELEPHONE NUMBER REQUIRED ON
  417-1                    STATIONERY
  417-2          (Sections 2051.023-2051.040 reserved for expansion)
  417-3           SUBCHAPTER C.  NOTICE BY PUBLICATION IN NEWSPAPER
  417-4  Sec. 2051.041.  DEFINITIONS
  417-5  Sec. 2051.042.  APPLICABILITY OF SUBCHAPTER
  417-6  Sec. 2051.043.  PUBLICATION IN AT LEAST ONE ISSUE REQUIRED
  417-7  Sec. 2051.044.  TYPE OF NEWSPAPER REQUIRED
  417-8  Sec. 2051.045.  LEGAL RATE CHARGED FOR PUBLICATION
  417-9  Sec. 2051.046.  NOTICE OF COUNTY
 417-10  Sec. 2051.047.  NOTICE OF CERTAIN CONSERVATION AND
 417-11                    RECLAMATION DISTRICTS
 417-12  Sec. 2051.048.  NOTICE OF OTHER POLITICAL SUBDIVISION
 417-13  Sec. 2051.049.  SELECTION OF NEWSPAPER
 417-14  Sec. 2051.050.  TIME OF PUBLICATION
 417-15  Sec. 2051.051.  BILL FOR PUBLICATION
 417-16  Sec. 2051.052.  CANCELLATION OF PUBLISHING CONTRACT
 417-17  Sec. 2051.053.  REFUSAL OF NEWSPAPER TO PUBLISH NOTICE OR
 417-18                    CITATION
 417-19                 SUBTITLE B.  INFORMATION AND PLANNING
 417-20    CHAPTER 2051.  GOVERNMENT DOCUMENTS, PUBLICATIONS, AND NOTICES
 417-21                     SUBCHAPTER A.  OFFICIAL SEALS
 417-22        Sec. 2051.001.  ADOPTION OF SEAL.  A commission or board
 417-23  created by state law and a commissioner whose office is created by
 417-24  state law may adopt a seal with which to attest an official
 417-25  document, certificate, or other written paper.  (V.A.C.S. Art. 27
 417-26  (part).)
 417-27          (Sections 2051.002-2051.020 reserved for expansion)
  418-1              SUBCHAPTER B.  PAPER SUPPLIES AND EQUIPMENT
  418-2        Sec. 2051.021.  UNIFORM SIZE OF PAPER SUPPLY AND CABINET.
  418-3  (a)  A state agency may not purchase:
  418-4              (1)  forms, bond paper, stationery, pads, or similar
  418-5  paper supplies that exceed 8-1/2 inches by 11 inches in size; or
  418-6              (2)  a filing cabinet designed to store completed
  418-7  documents that exceed 8-1/2 inches by 11 inches in size.
  418-8        (b)  This section does not prohibit the purchase or use of:
  418-9              (1)  paper supplies that are perforated or otherwise
 418-10  designed to produce completed documents of 8-1/2 inches by 11
 418-11  inches in size or smaller;
 418-12              (2)  fanfold paper designed for use in a computer
 418-13  peripheral device; or
 418-14              (3)  forms or paper supplies used for:
 418-15                    (A)  a document prepared on a form developed by a
 418-16  national organization for use by a state or a form designed to be
 418-17  compatible with that document;
 418-18                    (B)  preparation of a document required by the
 418-19  federal government;
 418-20                    (C)  maintenance of an accounting or bookkeeping
 418-21  record;
 418-22                    (D)  preparation of a financial report;
 418-23                    (E)  a budget document;
 418-24                    (F)  a nontextual computer report or document;
 418-25                    (G)  a chart, graph, table, or map;
 418-26                    (H)  artwork;
 418-27                    (I)  an architectural or engineering draft or
  419-1  document;
  419-2                    (J)  a diploma;
  419-3                    (K)  an enlargement of small print materials for
  419-4  a person with a visual impairment;
  419-5                    (L)  a resale purpose; or
  419-6                    (M)  protection or preservation of a historically
  419-7  valuable document.
  419-8        (c)  In this section, "state agency" means a board,
  419-9  commission, department, office, institution, including an
 419-10  institution of higher education as defined by Section 61.003,
 419-11  Education Code, or other agency of the state government.  (V.A.C.S.
 419-12  Art. 6252-6c, Secs. 1, 2.)
 419-13        Sec. 2051.022.  STATE AGENCY TELEPHONE NUMBER REQUIRED ON
 419-14  STATIONERY.  (a)  A state agency shall print a telephone number for
 419-15  the agency on the letterhead of its official stationery.
 419-16        (b)  In this section, "state agency" means:
 419-17              (1)  a board, commission, department, office, or other
 419-18  agency in the executive branch of state government that was created
 419-19  by the constitution or a statute of the state, including an
 419-20  institution of higher education, as defined by Section 61.003,
 419-21  Education Code;
 419-22              (2)  the legislature or a legislative agency;
 419-23              (3)  the supreme court, the court of criminal appeals,
 419-24  a court of appeals, or a state judicial agency; or
 419-25              (4)  a river authority.  (V.A.C.S. Art. 6252-6d.)
 419-26          (Sections 2051.023-2051.040 reserved for expansion)
 419-27           SUBCHAPTER C.  NOTICE BY PUBLICATION IN NEWSPAPER
  420-1        Sec. 2051.041.  DEFINITIONS.  In this subchapter:
  420-2              (1)  "Governmental entity" means an institution, board,
  420-3  commission, or department of:
  420-4                    (A)  the state or a subdivision of the state; or
  420-5                    (B)  a political subdivision of the state,
  420-6  including a municipality, a county, or any kind of district.
  420-7              (2)  "Governmental representative" includes an officer,
  420-8  employee, or agent of a governmental entity.
  420-9              (3)  "Notice" means any matter, including a
 420-10  proclamation or advertisement, required or authorized by law to be
 420-11  published in a newspaper by a governmental entity or
 420-12  representative.  (V.A.C.S. Art. 28a, Secs. (1), (3), (4).)
 420-13        Sec. 2051.042.  APPLICABILITY OF SUBCHAPTER.  (a)  This
 420-14  subchapter applies only to the extent that the general or special
 420-15  law requiring or authorizing the publication of a notice in a
 420-16  newspaper by a governmental entity or representative does not
 420-17  specify the manner of the publication, including the number of
 420-18  times that the notice is required to be published and the period
 420-19  during which the notice is required to be published.
 420-20        (b)  This subchapter does not apply to the publication of a
 420-21  citation that relates to a civil suit and to which the Texas Rules
 420-22  of Civil Procedure apply.  (V.A.C.S. Arts. 29 (part); 29a (part).)
 420-23        Sec. 2051.043.  PUBLICATION IN AT LEAST ONE ISSUE REQUIRED.
 420-24  Except as provided by Section 2051.046(b) or 2051.048(d), a notice
 420-25  shall be published in at least one issue of a newspaper.  (V.A.C.S.
 420-26  Art. 29a (part).)
 420-27        Sec. 2051.044.  TYPE OF NEWSPAPER REQUIRED.  (a)  The
  421-1  newspaper in which a notice is published must:
  421-2              (1)  devote not less than 25 percent of its total
  421-3  column lineage to general interest items;
  421-4              (2)  be published at least once each week;
  421-5              (3)  be entered as second-class postal matter in the
  421-6  county where published; and
  421-7              (4)  have been published regularly and continuously for
  421-8  at least 12 months before the governmental entity or representative
  421-9  publishes notice.
 421-10        (b)  A weekly newspaper has been published regularly and
 421-11  continuously under Subsection (a) if the newspaper omits not more
 421-12  than two issues in the 12-month period.  (V.A.C.S. Arts. 28a(2),
 421-13  29a (part).)
 421-14        Sec. 2051.045.  LEGAL RATE CHARGED FOR PUBLICATION.  The
 421-15  legal rate for publication of a notice in a newspaper is the
 421-16  newspaper's lowest published rate for classified advertising.
 421-17  (V.A.C.S. Art. 29 (part).)
 421-18        Sec. 2051.046.  NOTICE OF COUNTY.  (a)  A notice of a county
 421-19  shall be published in a newspaper published in the county that will
 421-20  publish the notice at or below the legal rate.
 421-21        (b)  If no newspaper that will publish the notice at or below
 421-22  the legal rate is published in the county, the notice shall be
 421-23  posted at the door of the county courthouse.  (V.A.C.S. Art. 29a
 421-24  (part).)
 421-25        Sec. 2051.047.  NOTICE OF CERTAIN CONSERVATION AND
 421-26  RECLAMATION DISTRICTS.  A conservation and reclamation district,
 421-27  other than a river authority, created under Article XVI, Section
  422-1  59, of the Texas Constitution that furnishes water and sewer
  422-2  services to household users satisfies a requirement of general,
  422-3  special, or local law to publish notice in a newspaper of general
  422-4  circulation in the county in which the district is located by
  422-5  publishing the notice in a newspaper of general circulation in the
  422-6  district.  (V.A.C.S. Art. 28a-1.)
  422-7        Sec. 2051.048.  NOTICE OF OTHER POLITICAL SUBDIVISION.  (a)
  422-8  This section applies only to a political subdivision other than a
  422-9  county or a conservation and reclamation district under Section
 422-10  2051.047.
 422-11        (b)  A notice of a political subdivision shall be published
 422-12  in a newspaper that is published in the political subdivision and
 422-13  that will publish the notice at or below the legal rate.
 422-14        (c)  If no newspaper published in the political subdivision
 422-15  will publish the notice at or below the legal rate, the political
 422-16  subdivision shall publish the notice in a newspaper that:
 422-17              (1)  is published in the county in which the political
 422-18  subdivision is located; and
 422-19              (2)  will charge the legal rate or a lower rate.
 422-20        (d)  If no newspaper published in the county in which the
 422-21  political subdivision is located will publish the notice at or
 422-22  below the legal rate, the political subdivision shall post the
 422-23  notice at the door of the county courthouse of the county in which
 422-24  the political subdivision is located.  (V.A.C.S. Art. 29a (part).)
 422-25        Sec. 2051.049.  SELECTION OF NEWSPAPER.  The governmental
 422-26  entity or representative required to publish a notice in a
 422-27  newspaper shall select, in accordance with this subchapter, one or
  423-1  more newspapers to publish the notice.  (V.A.C.S. Art. 28a(6).)
  423-2        Sec. 2051.050.  TIME OF PUBLICATION.  A notice must be
  423-3  published in a newspaper issued at least one day before the
  423-4  occurrence of the event to which the notice refers.  (V.A.C.S. Art.
  423-5  29a (part).)
  423-6        Sec. 2051.051.  BILL FOR PUBLICATION.  A newspaper that
  423-7  publishes a notice shall submit a bill for the publication with a
  423-8  clipping of the published notice and a verified statement of the
  423-9  publisher that:
 423-10              (1)  states the rate charged;
 423-11              (2)  certifies that the rate charged is the newspaper's
 423-12  lowest published rate for classified advertising; and
 423-13              (3)  certifies the number and dates of the publication.
 423-14  (V.A.C.S. Art. 29 (part).)
 423-15        Sec. 2051.052.  CANCELLATION OF PUBLISHING CONTRACT.  The
 423-16  General Services Commission or a district or county official
 423-17  required to publish a notice may cancel a contract executed by the
 423-18  commission or official for the publication if the commission or
 423-19  official determines that the newspaper charges a rate higher than
 423-20  the legal rate.  (V.A.C.S. Art. 29 (part).)
 423-21        Sec. 2051.053.  REFUSAL OF NEWSPAPER TO PUBLISH NOTICE OR
 423-22  CITATION.  (a)  The refusal of a newspaper to publish, without
 423-23  receiving advance payment for making the publication, a notice or
 423-24  citation in a state court proceeding in which the state or a
 423-25  political subdivision of the state is a party and in which the cost
 423-26  of the publication is to be charged as fees or costs of the
 423-27  proceeding is considered an unqualified refusal to publish the
  424-1  notice or citation.
  424-2        (b)  The sworn statement of the newspaper's publisher or the
  424-3  person offering to insert the notice or citation in the newspaper
  424-4  is subject to record as proof of the refusal.  (V.A.C.S. Art. 29a
  424-5  (part).)
  424-6         CHAPTER 2052.  STATE AGENCY REPORTS AND PUBLICATIONS
  424-7          SUBCHAPTER A.  REPORTS FOR LEGISLATURE OR GOVERNOR
  424-8  Sec. 2052.001.  FILING AND PRINTING OF REPORT
  424-9  Sec. 2052.002.  DISTRIBUTION OF PUBLICATIONS TO LEGISLATORS
 424-10  Sec. 2052.003.  REPORT ON EMPLOYMENT OF HANDICAPPED
 424-11          (Sections 2052.004-2052.100 reserved for expansion)
 424-12               SUBCHAPTER B.  REPORTS ON STATE EMPLOYEES
 424-13  Sec. 2052.101.  DEFINITION
 424-14  Sec. 2052.102.  FULL-TIME EQUIVALENT EMPLOYEE
 424-15  Sec. 2052.103.  REPORTS
 424-16  Sec. 2052.104.  STATE AUDITOR'S POWERS AND DUTIES
 424-17          (Sections 2052.105-2052.200 reserved for expansion)
 424-18              SUBCHAPTER C.  DISTRIBUTION OF PUBLICATIONS
 424-19  Sec. 2052.201.  DEFINITIONS
 424-20  Sec. 2052.202.  PUBLICATION REQUEST FORM
 424-21  Sec. 2052.203.  PUBLICATION DISTRIBUTION LIST
 424-22  Sec. 2052.204.  DISTRIBUTION
 424-23  Sec. 2052.205.  COPIES TO LIBRARY
 424-24  Sec. 2052.206.  APPLICABILITY TO INFORMATION REQUIRED BY LAW
 424-25          (Sections 2052.207-2052.300 reserved for expansion)
 424-26           SUBCHAPTER D.  PUBLICATION PRODUCTION AND CHARGES
 424-27  Sec. 2052.301.  SALES CHARGE
  425-1  Sec. 2052.302.  PROHIBITION OF ECONOMIC BENEFIT
  425-2  Sec. 2052.303.  USE OF RECYCLED PAPER
  425-3         CHAPTER 2052.  STATE AGENCY REPORTS AND PUBLICATIONS
  425-4          SUBCHAPTER A.  REPORTS FOR LEGISLATURE OR GOVERNOR
  425-5        Sec. 2052.001.  FILING AND PRINTING OF REPORT.  (a)  An
  425-6  annual or biennial report intended for the use of the legislature
  425-7  or the governor shall be sent to the secretary of state not later
  425-8  than November 1.
  425-9        (b)  Before the legislature convenes, the secretary of state
 425-10  promptly shall provide for the printing of each report that the
 425-11  secretary received for the legislature under Subsection (a).  On
 425-12  the organization of the legislature, the secretary shall send 10
 425-13  copies of each report to the presiding officer of each house of the
 425-14  legislature for legislative members.  (V.A.C.S. Art. 13.)
 425-15        Sec. 2052.002.  DISTRIBUTION OF PUBLICATIONS TO LEGISLATORS.
 425-16  (a)  To avoid waste in the duplication and distribution of state
 425-17  agency publications, a state agency that issues a publication
 425-18  relating to the work of the agency and distributes the publication
 425-19  to members of the legislature shall send to each member before
 425-20  distributing the publication a written notice to determine whether
 425-21  the member wants to receive the publication.
 425-22        (b)  The state agency shall include with the notice a brief
 425-23  written summary of the publication.
 425-24        (c)  A member who elects to receive the publication shall
 425-25  notify the state agency.
 425-26        (d)  This section does not apply to a report that is required
 425-27  by law.
  426-1        (e)  In this section, "state agency" means:
  426-2              (1)  a department, commission, board, office, or other
  426-3  agency that is in the executive branch of state government and that
  426-4  was created by the constitution or a statute of this state;
  426-5              (2)  a university system or institution of higher
  426-6  education as defined by Section 61.003, Education Code; or
  426-7              (3)  the supreme court, the court of criminal appeals,
  426-8  a court of appeals, or the Texas Judicial Council.  (V.A.C.S. Art.
  426-9  4413(33b), Secs. 1, 2.)
 426-10        Sec. 2052.003.  REPORT ON EMPLOYMENT OF HANDICAPPED.  (a)  A
 426-11  state agency that sends to the governor an annual report on equal
 426-12  employment opportunities with the agency shall include in the
 426-13  statistical information of the report information relating to the
 426-14  number of handicapped individuals that the agency employs.
 426-15        (b)  In this section, "handicapped individual" means an
 426-16  individual who has a mental or physical handicap or impairment,
 426-17  including mental retardation, hardness of hearing, deafness, a
 426-18  speech impairment, blindness, or a crippling condition that
 426-19  requires special ambulatory devices or services.  The term does not
 426-20  include an individual whose sole handicap or impairment is
 426-21  addiction to the use of alcohol or to a drug or other controlled
 426-22  substance.  (V.A.C.S. Art. 6252-16b, Secs. 1, 2.)
 426-23          (Sections 2052.004-2052.100 reserved for expansion)
 426-24               SUBCHAPTER B.  REPORTS ON STATE EMPLOYEES
 426-25        Sec. 2052.101.  DEFINITION.  In this subchapter, "state
 426-26  agency" means:
 426-27              (1)  a department, commission, board, office, or other
  427-1  agency that is in the executive or legislative branch of state
  427-2  government and that was created by the constitution or a statute,
  427-3  including an institution of higher education as defined by Section
  427-4  61.003, Education Code; or
  427-5              (2)  the supreme court, the court of criminal appeals,
  427-6  a court of appeals, or the Texas Judicial Council or another agency
  427-7  in the judicial branch of state government.  (V.A.C.S. Art.
  427-8  6252-16c, Sec. 1(2).)
  427-9        Sec. 2052.102.  FULL-TIME EQUIVALENT EMPLOYEE.  (a)  An
 427-10  employee who maintains a workweek of at least 40 hours, including
 427-11  authorized vacation and leave, is a full-time equivalent employee.
 427-12        (b)  An employee who maintains a workweek of less than 40
 427-13  hours is counted as a fractional full-time equivalent employee
 427-14  according to the ratio of the number of hours that the employee
 427-15  normally works a week to 40 hours.  (V.A.C.S. Art. 6252-16c, Sec.
 427-16  1(1).)
 427-17        Sec. 2052.103.  REPORTS.  (a)  Not later than the last day of
 427-18  the first month following each quarter of the fiscal year, a state
 427-19  agency shall file with the state auditor a written report that
 427-20  provides for that fiscal quarter:
 427-21              (1)  the number of full-time equivalent state employees
 427-22  employed by the agency and paid from funds in the state treasury;
 427-23              (2)  the number of full-time equivalent state employees
 427-24  employed by the agency and paid from funds outside of the state
 427-25  treasury;
 427-26              (3)  the increase or decrease, if any, of the number of
 427-27  full-time equivalent employees from the fiscal quarter preceding
  428-1  the quarter covered by the report;
  428-2              (4)  the number of positions of the agency paid from
  428-3  funds in the state treasury;
  428-4              (5)  the number of positions of the agency paid from
  428-5  funds outside of the state treasury; and
  428-6              (6)  the number of individuals who performed services
  428-7  for the agency under a contract, including consultants and
  428-8  individuals employed under contracts with temporary help services.
  428-9        (b)  The report must be made in the manner prescribed by the
 428-10  state auditor.
 428-11        (c)  A state agency, in accordance with specific guidelines
 428-12  adopted by the state auditor, may adopt rules for the collection of
 428-13  the information required under this section.  (V.A.C.S. Art.
 428-14  6252-16c, Secs. 2(a), (b), (c).)
 428-15        Sec. 2052.104.  STATE AUDITOR'S POWERS AND DUTIES.  (a)  The
 428-16  state auditor may audit a state agency to ensure:
 428-17              (1)  the accuracy of information reported under this
 428-18  subchapter; and
 428-19              (2)  compliance with this subchapter.
 428-20        (b)  The state auditor shall:
 428-21              (1)  adopt rules for the manner in which a report must
 428-22  be made under Section 2052.103;
 428-23              (2)  prepare quarterly summary reports from the
 428-24  information in the reports filed under Section 2052.103; and
 428-25              (3)  provide copies of the summary reports to:
 428-26                    (A)  the Legislative Budget Board;
 428-27                    (B)  the governor; and
  429-1                    (C)  the comptroller.  (V.A.C.S. Art. 6252-16c,
  429-2  Secs. 2(d), 3.)
  429-3          (Sections 2052.105-2052.200 reserved for expansion)
  429-4              SUBCHAPTER C.  DISTRIBUTION OF PUBLICATIONS
  429-5        Sec. 2052.201.  DEFINITIONS.  In this subchapter:
  429-6              (1)  "Person" means an individual, association,
  429-7  corporation, or state agency.
  429-8              (2)  "Publication" means printed matter containing news
  429-9  or other information and includes a magazine, newsletter,
 429-10  newspaper, pamphlet, or report.
 429-11              (3)  "Publication request form" means a form that
 429-12  provides a means of requesting a state agency's publications.
 429-13              (4)  "State agency" means a department, commission,
 429-14  board, office, or other agency that:
 429-15                    (A)  is in the executive branch of state
 429-16  government;
 429-17                    (B)  has authority that is not limited to a
 429-18  geographical portion of the state; and
 429-19                    (C)  was created by the constitution or a statute
 429-20  of this state.  (V.A.C.S. Art. 4413(33a), Secs. 4, 5(b).)
 429-21        Sec. 2052.202.  PUBLICATION REQUEST FORM.  (a)  A state
 429-22  agency that distributes publications to a person shall distribute a
 429-23  publication request form on request or with each copy of the last
 429-24  publication that it distributes before January 1 of each year.
 429-25        (b)  The comptroller shall:
 429-26              (1)  print the publication request form; and
 429-27              (2)  furnish to a state agency that distributes
  430-1  publications a sufficient number of publication request forms to
  430-2  enable the agency annually to distribute a form to each person that
  430-3  receives a publication.  (V.A.C.S. Art. 4413(33a), Secs. 5(a),
  430-4  (c).)
  430-5        Sec. 2052.203.  PUBLICATION DISTRIBUTION LIST.  (a)  A state
  430-6  agency that receives a completed publication request form or other
  430-7  written request for its publications may place the name of the
  430-8  requestor on its publication distribution list.  A state agency may
  430-9  not place the name of a person or other entity on its publication
 430-10  distribution list unless the state agency has received a completed
 430-11  publication request form or other written request from that person
 430-12  or entity.
 430-13        (b)  After January 1 of each year a state agency shall
 430-14  compile a publication distribution list from the completed
 430-15  publication request forms and other written requests received for
 430-16  publications for that calendar year.
 430-17        (c)  A state agency that distributes publications shall file
 430-18  a copy of its publication distribution list with the comptroller
 430-19  before March 1 of each year.
 430-20        (d)  A filed publication distribution list is public
 430-21  information.  (V.A.C.S. Art. 4413(33a), Secs. 6, 9.)
 430-22        Sec. 2052.204.  DISTRIBUTION.  A state agency may distribute
 430-23  a copy of a publication to a person or other entity that is not
 430-24  listed on the publication distribution list only if:
 430-25              (1)  the person or entity has requested orally or in
 430-26  writing a specific copy of the publication; or
 430-27              (2)  the person is a newly elected or appointed state
  431-1  officer, newly appointed executive head of a state agency, or newly
  431-2  established state agency.  (V.A.C.S. Art. 4413(33a), Secs. 7,
  431-3  8(a).)
  431-4        Sec. 2052.205.  COPIES TO LIBRARY.  (a)  A state agency shall
  431-5  send to the Legislative Reference Library five copies of each
  431-6  publication that it distributes.
  431-7        (b)  The library shall make the publications available to its
  431-8  users.  (V.A.C.S. Art. 4413(33a), Sec. 8(b).)
  431-9        Sec. 2052.206.  APPLICABILITY TO INFORMATION REQUIRED BY LAW.
 431-10  This subchapter does not apply to the distribution of information
 431-11  required by law.  (V.A.C.S. Art. 4413(33a), Sec. 10.)
 431-12          (Sections 2052.207-2052.300 reserved for expansion)
 431-13           SUBCHAPTER D.  PUBLICATION PRODUCTION AND CHARGES
 431-14        Sec. 2052.301.  SALES CHARGE.  (a)  A department or agency in
 431-15  the executive branch of government, unless otherwise specifically
 431-16  directed by statute, may set and collect a sales charge for a
 431-17  publication or other printed matter if the charge is in the public
 431-18  interest.
 431-19        (b)  The amount of the sales charge for a publication or
 431-20  other printed matter not specifically set by statute may not be
 431-21  greater than an amount considered sufficient by the publishing
 431-22  department or agency to reasonably reimburse the state for the
 431-23  actual expense of printing the publication or printed matter.
 431-24        (c)  Money collected under this section shall be deposited in
 431-25  the fund from which the cost of printing the publication or other
 431-26  printed matter was paid.  The deposited money is subject to
 431-27  legislative appropriation.  (V.A.C.S. Art. 4413(33), Secs. 1, 2, 3,
  432-1  4 (part).)
  432-2        Sec. 2052.302.  PROHIBITION OF ECONOMIC BENEFIT.  (a)  In
  432-3  accordance with Article XVI, Section 21, of the Texas Constitution,
  432-4  an officer or employee of the state may not, directly or
  432-5  indirectly, profit by or have a pecuniary interest in the
  432-6  preparation, printing, duplication, or sale of a publication or
  432-7  other printed matter issued by a department or agency of the
  432-8  executive branch.
  432-9        (b)  A person who violates this section shall be dismissed
 432-10  from state employment.  (V.A.C.S. Art. 4413(33), Sec. 5.)
 432-11        Sec. 2052.303.  USE OF RECYCLED PAPER.  (a)  A state agency
 432-12  that issues publications, including reports, for general
 432-13  distribution, including distribution to members of the legislature,
 432-14  shall use recycled paper to produce the publications to the
 432-15  greatest extent possible when the use of recycled paper is
 432-16  cost-effective.
 432-17        (b)  In this section, "state agency" means:
 432-18              (1)  a department, commission, board, office, or other
 432-19  agency that is in the executive branch of state government and that
 432-20  was created by the constitution or a statute of this state;
 432-21              (2)  a university system or institution of higher
 432-22  education as defined by Section 61.003, Education Code; or
 432-23              (3)  the supreme court, the court of criminal appeals,
 432-24  a court of appeals, or the Texas Judicial Council.  (V.A.C.S. Art.
 432-25  4413(33b), Secs. 1, 3.)
 432-26         CHAPTER 2053.  REPORT BY GOVERNOR ON ORGANIZATION AND
 432-27                     EFFICIENCY OF STATE AGENCIES
  433-1  Sec. 2053.001.  DEFINITIONS
  433-2  Sec. 2053.002.  REPORT
  433-3  Sec. 2053.003.  PARTICIPATION BY INTERAGENCY PLANNING
  433-4                    COUNCILS
  433-5  Sec. 2053.004.  LEGISLATION
  433-6         CHAPTER 2053.  REPORT BY GOVERNOR ON ORGANIZATION AND
  433-7                     EFFICIENCY OF STATE AGENCIES
  433-8        Sec. 2053.001.  DEFINITIONS.  In this chapter:
  433-9              (1)  "State agency" means a board, commission,
 433-10  department, office, or other agency, except a university system or
 433-11  institution of higher education as defined by Section 61.003,
 433-12  Education Code, that:
 433-13                    (A)  is in the executive branch of state
 433-14  government;
 433-15                    (B)  has statewide authority; and
 433-16                    (C)  is created by the constitution or by
 433-17  statute.
 433-18              (2)  "Functional area" means one of the following areas
 433-19  of concern to state government:
 433-20                    (A)  natural resources;
 433-21                    (B)  health and human resources;
 433-22                    (C)  education;
 433-23                    (D)  economic development and transportation;
 433-24                    (E)  agriculture;
 433-25                    (F)  public protection;
 433-26                    (G)  consumer protection;
 433-27                    (H)  work force; or
  434-1                    (I)  any other area in which the governor
  434-2  appoints an interagency planning council under Section 772.003.
  434-3  (V.A.C.S. Art. 4413(34d), Sec. 1.)
  434-4        Sec. 2053.002.  REPORT.  (a)  Before the end of each
  434-5  even-numbered year, the governor shall prepare and submit to the
  434-6  legislature a report on the organization and efficiency of state
  434-7  agencies.
  434-8        (b)  The report must group state agencies into functional
  434-9  areas and must include the following items about the state agencies
 434-10  in each functional area:
 434-11              (1)  information about the efficiency with which the
 434-12  agencies operate;
 434-13              (2)  recommendations about the reorganization of the
 434-14  agencies and the consolidation, transfer, or abolition of their
 434-15  functions; and
 434-16              (3)  any other information about the organization or
 434-17  efficiency of the agencies that the governor considers necessary.
 434-18        (c)  The Legislative Budget Board shall coordinate the
 434-19  collection of information to be included in the report.  (V.A.C.S.
 434-20  Art. 4413(34d), Secs. 2(a), (c), (d).)
 434-21        Sec. 2053.003.  PARTICIPATION BY INTERAGENCY PLANNING
 434-22  COUNCILS.  (a)  In preparing the report required by this chapter,
 434-23  the governor shall request and consider from each interagency
 434-24  planning council appointed under Section 772.003 information about
 434-25  the efficiency of the state agencies in the council's functional
 434-26  area and recommendations about the reorganization of those
 434-27  agencies.
  435-1        (b)  Before submitting the report to the legislature, the
  435-2  governor shall submit to each interagency planning council for
  435-3  review and comment the part of the proposed report about the state
  435-4  agencies in the council's functional area.
  435-5        (c)  The governor shall submit with the report the comments
  435-6  received under Subsection (b).  (V.A.C.S. Art. 4413(34d), Sec. 3.)
  435-7        Sec. 2053.004.  LEGISLATION.  The Texas Legislative Council
  435-8  shall draft any legislation required to implement the
  435-9  recommendations contained in the report required by this chapter.
 435-10  (V.A.C.S. Art. 4413(34d), Sec. 4.)
 435-11                 CHAPTER 2054.  INFORMATION RESOURCES
 435-12                   SUBCHAPTER A.  GENERAL PROVISIONS
 435-13  Sec. 2054.001.  LEGISLATIVE FINDINGS AND POLICY
 435-14  Sec. 2054.002.  SHORT TITLE
 435-15  Sec. 2054.003.  DEFINITIONS
 435-16  Sec. 2054.004.  DEPARTMENT
 435-17  Sec. 2054.005.  SUNSET PROVISION
 435-18  Sec. 2054.006.  LAWS NOT AFFECTED
 435-19  Sec. 2054.007.  EXCEPTION:  STATE LOTTERY OPERATIONS
 435-20  Sec. 2054.008.  EXCEPTION:  EMERGENCY SITUATIONS
 435-21  Sec. 2054.009.  EXCEPTION:  TEXAS NATIONAL RESEARCH
 435-22                    LABORATORY COMMISSION
 435-23  Sec. 2054.010.  REFERENCES TO PRECEDING AGENCY
 435-24          (Sections 2054.011-2054.020 reserved for expansion)
 435-25              SUBCHAPTER B.  ADMINISTRATION OF DEPARTMENT
 435-26  Sec. 2054.021.  COMPOSITION OF BOARD; TERMS
 435-27  Sec. 2054.022.  CONFLICT OF INTEREST
  436-1  Sec. 2054.023.  COMPENSATION; EXPENSES
  436-2  Sec. 2054.024.  VACANCY
  436-3  Sec. 2054.025.  REMOVAL OF BOARD MEMBER
  436-4  Sec. 2054.026.  LIMITATION ON LIABILITY
  436-5  Sec. 2054.027.  MEETINGS; ACTION OF BOARD
  436-6  Sec. 2054.028.  PRESIDING OFFICER
  436-7  Sec. 2054.029.  EXECUTIVE DIRECTOR; STAFF
  436-8  Sec. 2054.030.  MERIT PAY
  436-9  Sec. 2054.031.  CAREER LADDER
 436-10  Sec. 2054.032.  EQUAL EMPLOYMENT OPPORTUNITY
 436-11  Sec. 2054.033.  ADVISORY COMMITTEES
 436-12  Sec. 2054.034.  FUND
 436-13          (Sections 2054.035-2054.050 reserved for expansion)
 436-14        SUBCHAPTER C.  GENERAL POWERS AND DUTIES OF DEPARTMENT
 436-15  Sec. 2054.051.  GENERAL DUTIES OF DEPARTMENT
 436-16  Sec. 2054.052.  GENERAL POWERS OF DEPARTMENT
 436-17  Sec. 2054.053.  LEGISLATIVE BUDGET INSTRUCTIONS; APPROPRIATION
 436-18                    REQUESTS
 436-19  Sec. 2054.054.  CLIENT OMNIBUS REGISTRY AND EXCHANGE DATA
 436-20                    BASES
 436-21  Sec. 2054.055.  ANNUAL REPORT
 436-22  Sec. 2054.056.  COMPUTER SERVICE FACILITY
 436-23  Sec. 2054.057.  PAYMENT AND ACCOUNTING FOR SERVICES
 436-24  Sec. 2054.058.  CUSTOMER OVERSIGHT COMMITTEE
 436-25  Sec. 2054.059.  TELECOMMUNICATIONS PLANNING AND POLICY
 436-26          (Sections 2054.060-2054.070 reserved for expansion)
 436-27             SUBCHAPTER D.  INFORMATION RESOURCES MANAGERS
  437-1  Sec. 2054.071.  IDENTITY OF MANAGER
  437-2  Sec. 2054.072.  CONFLICT OF INTEREST
  437-3  Sec. 2054.073.  DESIGNATION OF DEPARTMENT
  437-4  Sec. 2054.074.  RESPONSIBILITY OF INFORMATION RESOURCES
  437-5                    MANAGER
  437-6  Sec. 2054.075.  COOPERATION WITH INFORMATION RESOURCES
  437-7                    MANAGER
  437-8  Sec. 2054.076.  CONTINUING EDUCATION
  437-9          (Sections 2054.077-2054.090 reserved for expansion)
 437-10             SUBCHAPTER E.  STRATEGIC AND OPERATING PLANS
 437-11  Sec. 2054.091.  PREPARATION OF STATE STRATEGIC PLAN
 437-12  Sec. 2054.092.  CONTENT OF STATE STRATEGIC PLAN
 437-13  Sec. 2054.093.  AMENDMENT OF STATE STRATEGIC PLAN
 437-14  Sec. 2054.094.  SUBMISSION OF STATE STRATEGIC PLAN
 437-15  Sec. 2054.095.  PREPARATION OF AGENCY STRATEGIC PLAN
 437-16  Sec. 2054.096.  CONTENT OF AGENCY STRATEGIC PLAN
 437-17  Sec. 2054.097.  REVIEW OF AGENCY STRATEGIC PLAN
 437-18  Sec. 2054.098.  APPROVAL OR DISAPPROVAL OF AGENCY STRATEGIC
 437-19                    PLAN
 437-20  Sec. 2054.099.  INITIAL OPERATING PLAN OF STATE AGENCY
 437-21  Sec. 2054.100.  FINAL OPERATING PLAN OF STATE AGENCY
 437-22  Sec. 2054.101.  INSTRUCTIONS FOR PREPARING OPERATING PLANS
 437-23  Sec. 2054.102.  APPROVAL OR DISAPPROVAL OF OPERATING PLANS
 437-24  Sec. 2054.103.  SUBMISSION OF OPERATING PLANS AND CERTAIN
 437-25                    PROCUREMENT INFORMATION
 437-26  Sec. 2054.104.  DENIAL OF ACCESS TO APPROPRIATIONS ON FAILURE
 437-27                    TO SUBMIT OPERATING PLAN AND CERTAIN
  438-1                    PROCUREMENT INFORMATION
  438-2          (Sections 2054.105-2054.110 reserved for expansion)
  438-3       SUBCHAPTER F.  OTHER POWERS AND DUTIES OF STATE AGENCIES
  438-4  Sec. 2054.111.  ANNUAL PERFORMANCE REPORT
  438-5  Sec. 2054.112.  CONTENTS OF ANNUAL PERFORMANCE REPORT
  438-6  Sec. 2054.113.  DENIAL OF ACCESS TO APPROPRIATIONS
  438-7  Sec. 2054.114.  ACQUISITION SPECIFICATIONS
  438-8  Sec. 2054.115.  SALE OR LEASE OF SOFTWARE
  438-9  Sec. 2054.116.  COMPUTER SERVICES CONTRACTS
 438-10  Sec. 2054.117.  ELECTRONIC DATA PROCESSING CENTER
 438-11                 CHAPTER 2054.  INFORMATION RESOURCES
 438-12                   SUBCHAPTER A.  GENERAL PROVISIONS
 438-13        Sec. 2054.001.  LEGISLATIVE FINDINGS AND POLICY.  (a)  The
 438-14  legislature finds that:
 438-15              (1)  information and information resources possessed by
 438-16  agencies of state government are strategic assets belonging to the
 438-17  residents of this state that must be managed as valuable state
 438-18  resources;
 438-19              (2)  technological and theoretical advances in
 438-20  information use are recent in origin, immense in scope and
 438-21  complexity, and growing at a rapid pace;
 438-22              (3)  the nature of these advances presents this state
 438-23  with the opportunity to provide higher quality, more timely, and
 438-24  more cost-effective governmental services;
 438-25              (4)  the danger exists that state agencies could
 438-26  independently acquire uncoordinated and duplicative information
 438-27  resources technologies that are more appropriately acquired as part
  439-1  of a coordinated effort for maximum cost-effectiveness and use;
  439-2              (5)  the sharing of information resources technologies
  439-3  among state agencies is often the most cost-effective method of
  439-4  providing the highest quality and most timely governmental services
  439-5  that otherwise would be cost prohibitive;
  439-6              (6)  both considerations of cost and the need for the
  439-7  transfer of information among the various agencies and branches of
  439-8  state government in the most timely and useful form possible
  439-9  require a uniform policy and coordinated system for the use and
 439-10  acquisition of information resources technologies;
 439-11              (7)  considerations of cost and expertise require that,
 439-12  to the extent possible, the planning and coordinating functions
 439-13  reside in a separate agency from the purchasing function; and
 439-14              (8)  the need of officials in the executive branch of
 439-15  state government to have timely access to all needed information in
 439-16  a form most useful to them in their execution of the laws and the
 439-17  need of members of the legislative branch of state government to
 439-18  have timely access to all needed information in a form most useful
 439-19  to them in their evaluation of the practical effect of the laws and
 439-20  in their identification of areas in which legislation is needed for
 439-21  the future are equally paramount, requiring the greatest possible
 439-22  continuous and formal coordination and cooperation within and among
 439-23  the branches of state government.
 439-24        (b)  It is the policy of this state to coordinate and direct
 439-25  the use of information resources technologies by state agencies and
 439-26  to provide as soon as possible the most cost-effective and useful
 439-27  retrieval and exchange of information within and among the various
  440-1  agencies and branches of state government and from the agencies and
  440-2  branches of state government to the residents of this state and
  440-3  their elected representatives.  The Department of Information
  440-4  Resources exists for these purposes.  (V.A.C.S. Art. 4413(32j),
  440-5  Sec. 1.)
  440-6        Sec. 2054.002.  SHORT TITLE.  This chapter may be cited as
  440-7  the Information Resources Management Act.  (V.A.C.S. Art.
  440-8  4413(32j), Sec. 2.)
  440-9        Sec. 2054.003.  DEFINITIONS.  In this chapter:
 440-10              (1)  "Application" means a separately identifiable and
 440-11  interrelated set of information resources technologies that allows
 440-12  a state agency to manipulate information resources to support
 440-13  specifically defined objectives.
 440-14              (2)  "Board" means the governing board of the
 440-15  Department of Information Resources.
 440-16              (3)  "Data processing" means information technology
 440-17  equipment and related services designed for the automated storage,
 440-18  manipulation, and retrieval of data by electronic or mechanical
 440-19  means.  The term includes:
 440-20                    (A)  central processing units, front-end
 440-21  processing units, miniprocessors, microprocessors, and related
 440-22  peripheral equipment such as data storage devices, document
 440-23  scanners, data entry equipment, terminal controllers, data terminal
 440-24  equipment, computer-based word processing systems other than memory
 440-25  typewriters, and equipment and systems for computer networks;
 440-26                    (B)  all related services, including feasibility
 440-27  studies, systems design, software development, and time-sharing
  441-1  services, provided by state employees or others; and
  441-2                    (C)  the programs and routines used to employ and
  441-3  control the capabilities of data processing hardware, including
  441-4  operating systems, compilers, assemblers, utilities, library
  441-5  routines, maintenance routines, applications, and computer
  441-6  networking programs.
  441-7              (4)  "Department" means the Department of Information
  441-8  Resources.
  441-9              (5)  "Executive director" means the executive director
 441-10  of the Department of Information Resources.
 441-11              (6)  "Information resources" means the procedures,
 441-12  equipment, and software that are designed, built, operated, and
 441-13  maintained to collect, record, process, store, retrieve, display,
 441-14  and transmit information, and associated personnel including
 441-15  consultants and contractors.
 441-16              (7)  "Information resources technologies" means data
 441-17  processing and telecommunications hardware, software, services,
 441-18  supplies, personnel, facility resources, maintenance, and training.
 441-19              (8)  "Project" means a program to provide information
 441-20  resources technologies support to functions within or among
 441-21  elements of a state agency, that ideally is characterized by
 441-22  well-defined parameters, specific objectives, common benefits,
 441-23  planned activities, a scheduled completion date, and an established
 441-24  budget with a specified source of funding.
 441-25              (9)  "State agency" means a department, commission,
 441-26  board, office, council, or other agency in the executive or
 441-27  judicial branch of state government that is created by the
  442-1  constitution or a statute of this state, including a university
  442-2  system or institution of higher education as defined by Section
  442-3  61.003, Education Code.
  442-4              (10)  "Telecommunications" means any transmission,
  442-5  emission, or reception of signs, signals, writings, images, or
  442-6  sounds of intelligence of any nature by wire, radio, optical, or
  442-7  other electromagnetic systems.  The term includes all facilities
  442-8  and equipment performing those functions that are owned, leased, or
  442-9  used by state agencies and branches of state government.  (V.A.C.S.
 442-10  Art. 4413(32j), Sec. 3.)
 442-11        Sec. 2054.004.  DEPARTMENT.  The Department of Information
 442-12  Resources is an agency of the state.  (V.A.C.S. Art. 4413(32j),
 442-13  Sec. 4.)
 442-14        Sec. 2054.005.  SUNSET PROVISION.  The Department of
 442-15  Information Resources is subject to Chapter 325 (Texas Sunset Act).
 442-16  Unless continued in existence as provided by that chapter, the
 442-17  department is abolished and this chapter expires September 1, 1997.
 442-18  (V.A.C.S. Art. 4413(32j), Sec. 5.)
 442-19        Sec. 2054.006.  LAWS NOT AFFECTED.  (a)  This chapter does
 442-20  not affect laws, rules, or decisions relating to the
 442-21  confidentiality or privileged status of categories of information
 442-22  or communications.
 442-23        (b)  This chapter does not enlarge the right of state
 442-24  government to require information, records, or communications from
 442-25  the people.  (V.A.C.S. Art. 4413(32j), Sec. 24.)
 442-26        Sec. 2054.007.  EXCEPTION:  STATE LOTTERY OPERATIONS.  (a)
 442-27  The lottery division in the office of the comptroller is not
  443-1  included in the agency strategic plan, initial operating plan, or
  443-2  final operating plan of the comptroller.  The lottery division is
  443-3  not subject to the planning and procurement requirements of this
  443-4  chapter.
  443-5        (b)  The electronic funds transfer system for the operation
  443-6  of the state lottery is not included in the agency strategic plan,
  443-7  initial operating plan, or final operating plan of the state
  443-8  treasurer.  Operations of the state treasurer that relate to the
  443-9  state lottery are not subject to the planning and procurement
 443-10  requirements of this chapter.  (V.A.C.S. Art. 4413(32j), Sec. 26.)
 443-11        Sec. 2054.008.  EXCEPTION:  EMERGENCY SITUATIONS.  (a)  A
 443-12  state agency may take an action described in this chapter without
 443-13  first complying with the procedures prescribed by this chapter if
 443-14  the agency finds that a situation caused by fire, natural disaster,
 443-15  or other actual emergency requires the action to be taken.
 443-16        (b)  A report explaining the emergency action must be filed
 443-17  with the department not later than the 30th day after the date the
 443-18  action is taken.  (V.A.C.S. Art. 4413(32j), Sec. 18(e).)
 443-19        Sec. 2054.009.  EXCEPTION:  TEXAS NATIONAL RESEARCH
 443-20  LABORATORY COMMISSION.  The Texas National Research Laboratory
 443-21  Commission may take action described in this chapter without first
 443-22  complying with the procedures prescribed by this chapter if the
 443-23  agency determines that an acquisition of information resources
 443-24  technologies constitutes an eligible undertaking as defined by
 443-25  Section 465.021.  (V.A.C.S. Art. 4413(32j), Sec. 18(f).)
 443-26        Sec. 2054.010.  REFERENCES TO PRECEDING AGENCY.  Any
 443-27  reference in law to the Automated Information and
  444-1  Telecommunications Council means the Department of Information
  444-2  Resources.  (V.A.C.S. Art. 4413(32j), Sec. 25.)
  444-3          (Sections 2054.011-2054.020 reserved for expansion)
  444-4              SUBCHAPTER B.  ADMINISTRATION OF DEPARTMENT
  444-5        Sec. 2054.021.  COMPOSITION OF BOARD; TERMS.  (a)  The
  444-6  department is governed by a board composed of nine members
  444-7  appointed by the governor with the advice and consent of the
  444-8  senate.  Three members must be appointed from a list of individuals
  444-9  submitted to the governor by the speaker of the house of
 444-10  representatives, and at least one of those appointees must be a
 444-11  member of the house of representatives who serves on the board ex
 444-12  officio as a voting member.  Three members must be appointed from a
 444-13  list of individuals submitted to the governor by the lieutenant
 444-14  governor, and at least one of those appointees must be a member of
 444-15  the senate who serves on the board ex officio as a voting member.
 444-16  One member must be employed by an institution of higher education
 444-17  as defined by Section 61.003, Education Code.  In addition to the
 444-18  members of the legislature who must be appointed from the lists
 444-19  submitted by the lieutenant governor and the speaker of the house
 444-20  of representatives, the governor may appoint other members of the
 444-21  legislature to serve on the board ex officio as voting members.
 444-22        (b)  Members of the board serve for staggered six-year terms
 444-23  with three members' terms expiring February 1 of each odd-numbered
 444-24  year.  (V.A.C.S. Art. 4413(32j), Secs. 6(a), (b).)
 444-25        Sec. 2054.022.  Conflict of Interest.  (a)  A member of the
 444-26  board or an employee of the department may not:
 444-27              (1)  be a person required to register as a lobbyist
  445-1  under Chapter 305 because of the person's activities for
  445-2  compensation on behalf of a business entity that has, or on behalf
  445-3  of a trade association of business entities that have, a
  445-4  substantial interest in the information resources technologies
  445-5  industry;
  445-6              (2)  be an officer, employee, or paid consultant of a
  445-7  business entity that has, or of a trade association of business
  445-8  entities that have, a substantial interest in the information
  445-9  resources technologies industry and that may contract with state
 445-10  government;
 445-11              (3)  own, control, or have, directly or indirectly,
 445-12  more than a 10 percent interest in a business entity that has a
 445-13  substantial interest in the information resources technologies
 445-14  industry and that may contract with state government;
 445-15              (4)  receive more than 25 percent of the individual's
 445-16  income from a business entity that has a substantial interest in
 445-17  the information resources technologies industry and that may
 445-18  contract with state government;
 445-19              (5)  be interested in or connected with a contract or
 445-20  bid for furnishing a state agency with information resources
 445-21  technologies;
 445-22              (6)  be employed by a state agency as a consultant on
 445-23  information resources technologies; or
 445-24              (7)  accept or receive money or another thing of value
 445-25  from an individual, firm, or corporation to whom a contract may be
 445-26  awarded, directly or indirectly, by rebate, gift, or otherwise.
 445-27        (b)  The executive director shall dismiss an employee of the
  446-1  department who violates a prohibition under Subsection (a), and the
  446-2  board shall remove the executive director if the executive director
  446-3  violates a prohibition under Subsection (a).  (V.A.C.S. Art.
  446-4  4413(32j), Sec. 8.)
  446-5        Sec. 2054.023.  COMPENSATION; EXPENSES.  (a)  A member of the
  446-6  board may not receive compensation for services as a board member.
  446-7        (b)  A member is entitled to reimbursement for actual and
  446-8  necessary expenses reasonably incurred in connection with the
  446-9  performance of those services, subject to any applicable limitation
 446-10  on reimbursement provided by the General Appropriations Act.
 446-11        (c)  An ex officio member is entitled to reimbursement for
 446-12  those expenses under the rules of the member's office.  (V.A.C.S.
 446-13  Art. 4413(32j), Sec. 6(e).)
 446-14        Sec. 2054.024.  VACANCY.  (a)  The governor shall appoint a
 446-15  board member to fill a vacancy under the same procedure that
 446-16  applied to the original appointment for that position.
 446-17        (b)  If the presiding officer's position is vacant, the
 446-18  executive director shall perform nonvoting duties of the presiding
 446-19  officer until the governor designates a new presiding officer.
 446-20        (c)  If the final result of an action brought in a court of
 446-21  competent jurisdiction is that an ex officio or other member of the
 446-22  board may not serve on the board under the Texas Constitution, the
 446-23  appropriate individual shall promptly submit a list to the governor
 446-24  for the appointment of a replacement who may serve.  (V.A.C.S. Art.
 446-25  4413(32j), Sec. 6(d).)
 446-26        Sec. 2054.025.  Removal of Board Member.  (a)  It is a ground
 446-27  for removal from the board if a member:
  447-1              (1)  does not have at the time of appointment the
  447-2  qualifications or status required for appointment to the board;
  447-3              (2)  does not maintain during service on the board the
  447-4  qualifications or status required for initial appointment to the
  447-5  board;
  447-6              (3)  violates a prohibition established by Section
  447-7  2054.022;
  447-8              (4)  cannot discharge because of illness or disability
  447-9  the member's duties for a substantial part of the term for which
 447-10  the member is appointed; or
 447-11              (5)  is absent from more than half of the regularly
 447-12  scheduled board meetings that the member is eligible to attend
 447-13  during a state fiscal year unless the absence is excused by
 447-14  majority vote of the board.
 447-15        (b)  The validity of an action of the board is not affected
 447-16  by the fact that it is taken while a ground for removal of a member
 447-17  of the board exists.
 447-18        (c)  If the executive director has knowledge that a potential
 447-19  ground for removal exists, the executive director shall inform the
 447-20  presiding officer.  The presiding officer shall then inform the
 447-21  governor of the potential ground for removal.  (V.A.C.S. Art.
 447-22  4413(32j), Sec. 7.)
 447-23        Sec. 2054.026.  LIMITATION ON LIABILITY.  A member of the
 447-24  board is not liable in a civil action for an act performed in good
 447-25  faith in the performance of the member's duties.  (V.A.C.S. Art.
 447-26  4413(32j), Sec. 6(f).)
 447-27        Sec. 2054.027.  MEETINGS; ACTION OF BOARD.  (a)  The board
  448-1  shall meet at least once in each quarter of the state fiscal year
  448-2  and may meet at other times at the call of the presiding officer or
  448-3  as provided by department rule.
  448-4        (b)  When a quorum is present, an affirmative vote of a
  448-5  majority of the members of the board present is necessary for an
  448-6  action of the board to be effective.  (V.A.C.S. Art. 4413(32j),
  448-7  Secs. 6(g), (h), (i).)
  448-8        Sec. 2054.028.  PRESIDING OFFICER.  The governor shall
  448-9  designate a member of the board to serve as presiding officer at
 448-10  the discretion of the governor.  (V.A.C.S. Art. 4413(32j), Sec.
 448-11  6(c).)
 448-12        Sec. 2054.029.  Executive Director; Staff.  (a)  The board
 448-13  shall employ an executive director and other employees necessary to
 448-14  implement its duties.
 448-15        (b)  The executive director shall provide to the department's
 448-16  employees, as often as necessary, information regarding their
 448-17  qualifications for employment and their responsibilities under
 448-18  applicable laws relating to standards of conduct for state
 448-19  employees.  (V.A.C.S. Art. 4413(32j), Sec. 11(a).)
 448-20        Sec. 2054.030.  MERIT PAY.  (a)  The department shall develop
 448-21  a system of annual performance evaluations.
 448-22        (b)  All merit pay for department employees must be awarded
 448-23  under the system established under this section.  (V.A.C.S. Art.
 448-24  4413(32j), Sec. 11(b).)
 448-25        Sec. 2054.031.  CAREER LADDER.  (a)  The department shall
 448-26  develop an intraagency career ladder program.
 448-27        (b)  The program shall require intraagency postings of all
  449-1  nonentry level positions concurrently with any public posting.
  449-2  (V.A.C.S. Art. 4413(32j), Sec. 11(c).)
  449-3        Sec. 2054.032.  EQUAL EMPLOYMENT OPPORTUNITY.  (a)  The
  449-4  department shall prepare and maintain a written policy statement to
  449-5  assure implementation of a program of equal employment opportunity
  449-6  under which all personnel transactions are made without regard to
  449-7  race, color, disability, sex, religion, age, or national origin.
  449-8        (b)  The policy statement must include personnel policies,
  449-9  including policies relating to recruitment, evaluation, selection,
 449-10  appointment, training, and promotion of personnel.  (V.A.C.S. Art.
 449-11  4413(32j), Sec. 11(d).)
 449-12        Sec. 2054.033.  Advisory Committees.  (a)  The board and the
 449-13  executive director, if authorized by the board, may appoint
 449-14  advisory committees as the department considers necessary to
 449-15  provide expertise to the department.
 449-16        (b)  A member of an advisory committee serves at the
 449-17  discretion of the board.
 449-18        (c)  A member of an advisory committee may not receive
 449-19  compensation for service on the committee.  A member is entitled to
 449-20  reimbursement for actual and necessary expenses reasonably incurred
 449-21  in performing that service, subject to any applicable limitation on
 449-22  reimbursement provided by the General Appropriations Act.
 449-23        (d)  At least one member of each advisory committee must be
 449-24  an employee of a state agency.  (V.A.C.S. Art. 4413(32j), Sec. 10.)
 449-25        Sec. 2054.034.  FUND.  The comptroller shall establish in the
 449-26  state treasury the Department of Information Resources revolving
 449-27  fund account for the administration of this chapter.  The account
  450-1  may be used only:
  450-2              (1)  as a depository for funds received as payments
  450-3  from state agencies for services provided under this chapter for
  450-4  which payment is authorized under this chapter;
  450-5              (2)  as a source of funds for the department to
  450-6  purchase, lease, or acquire in any other manner services, supplies,
  450-7  software products, and equipment necessary for implementing the
  450-8  department's duties relating to services provided to state agencies
  450-9  for which the department receives payment from state agencies under
 450-10  this chapter; and
 450-11              (3)  to pay salaries, wages, and other costs directly
 450-12  attributable to the services provided to state agencies for which
 450-13  the department receives payment from those agencies under this
 450-14  chapter.  (V.A.C.S. Art. 4413(32j), Sec. 22(d).)
 450-15          (Sections 2054.035-2054.050 reserved for expansion)
 450-16        SUBCHAPTER C.  GENERAL POWERS AND DUTIES OF DEPARTMENT
 450-17        Sec. 2054.051.  General Duties of Department.  (a)  The
 450-18  department shall provide the leadership in and coordination of
 450-19  information resources management within state government.
 450-20        (b)  The department shall monitor national and international
 450-21  standards relating to information resources technologies, develop
 450-22  and publish policies, procedures, and standards relating to
 450-23  information resources management by state agencies, and ensure
 450-24  compliance with those policies, procedures, and standards.
 450-25        (c)  The department shall provide and coordinate an
 450-26  information resources management training program for the
 450-27  departments of state government.
  451-1        (d)  The department shall establish an information resources
  451-2  technology evaluation center for use by the department and other
  451-3  state agencies.
  451-4        (e)  The department shall provide for all interagency use of
  451-5  information resources technologies by state agencies, except for
  451-6  telecommunications services provided by the General Services
  451-7  Commission under other law.  The department may provide for
  451-8  interagency use of information resources technologies either
  451-9  directly or by certifying another state agency to provide specified
 451-10  uses of information resources technologies to other state agencies.
 451-11  (V.A.C.S. Art. 4413(32j), Secs. 9(b), (d), (e), (i), (j).)
 451-12        Sec. 2054.052.  General Powers of Department.  (a)  The
 451-13  department may adopt rules as necessary to implement its
 451-14  responsibility under this chapter.
 451-15        (b)  The department may require each state agency to report
 451-16  to the department:
 451-17              (1)  each agency's use of information resources
 451-18  technologies;
 451-19              (2)  the effect of those technologies on the duties and
 451-20  functions of the agency;
 451-21              (3)  the costs incurred by the agency in the
 451-22  acquisition and use of those technologies;
 451-23              (4)  the procedures followed in obtaining those
 451-24  technologies;
 451-25              (5)  the categories of information produced by the
 451-26  agency; and
 451-27              (6)  other information relating to information
  452-1  resources management that in the judgment of the department should
  452-2  be reported.
  452-3        (c)  The department may provide technical and managerial
  452-4  assistance relating to information resources management at the
  452-5  request of a state agency.
  452-6        (d)  The department may report to the governor and to the
  452-7  presiding officer of each house of the legislature any factors that
  452-8  in the opinion of the department are outside the duties of the
  452-9  department but that inhibit or promote the effective exchange and
 452-10  use of information in state government.  (V.A.C.S. Art. 4413(32j),
 452-11  Secs. 9(a), (c), (f), (l).)
 452-12        Sec. 2054.053.  LEGISLATIVE BUDGET INSTRUCTIONS;
 452-13  APPROPRIATION REQUESTS.  (a)  The department may identify, develop,
 452-14  and recommend to the Legislative Budget Board issues related to
 452-15  information resources management to be considered when developing
 452-16  the legislative budget instructions to state agencies.  The
 452-17  department shall inform the governor of issues that are recommended
 452-18  to the Legislative Budget Board under this subsection.
 452-19        (b)  At the request of a state agency, the department may
 452-20  assist the agency in the preparation of projects to be submitted as
 452-21  part of the agency's legislative appropriation request and may make
 452-22  recommendations on any proposed projects.  The recommendations
 452-23  under this subsection apply to a project and not to a specific
 452-24  procurement or set of specifications.  (V.A.C.S. Art. 4413(32j),
 452-25  Secs. 9(g), (h).)
 452-26        Sec. 2054.054.  CLIENT OMNIBUS REGISTRY AND EXCHANGE DATA
 452-27  BASES.  (a)  The department may develop and maintain a client
  453-1  omnibus registry and exchange data bases to cover public and
  453-2  private health and human services, programs, and clients and to
  453-3  facilitate the exchange of data among the state's health and human
  453-4  services agencies.
  453-5        (b)  The department must assure in maintaining the
  453-6  information that:
  453-7              (1)  health and mental health communications and
  453-8  records privileged under Chapter 239, Acts of the 66th Legislature,
  453-9  Regular Session, 1979 (Article 5561h, Vernon's Texas Civil
 453-10  Statutes), the Medical Practice Act (Article 4495b, Vernon's Texas
 453-11  Civil Statutes), and the Texas Rules of Civil Evidence remain
 453-12  confidential and privileged;
 453-13              (2)  personally identifiable health and mental health
 453-14  communications and records of persons involved in the receipt or
 453-15  delivery of health or human services are confidential and
 453-16  privileged; and
 453-17              (3)  a private source is not required to provide
 453-18  confidential health or mental health communications or records
 453-19  unless a law specifically requires disclosure.  (V.A.C.S. Art.
 453-20  4413(32j), Sec. 9(m).)
 453-21        Sec. 2054.055.  Annual Report.  (a)  Not later than February
 453-22  1 of each year, the board shall review and approve the department's
 453-23  annual report on the information resources management activities of
 453-24  state government, derived from the annual performance reports
 453-25  submitted to the department by state agencies under Section
 453-26  2054.111.
 453-27        (b)  The annual report must:
  454-1              (1)  assess the progress made toward meeting the goals
  454-2  and objectives of the state strategic plan for information
  454-3  resources management;
  454-4              (2)  describe major accomplishments of the state and
  454-5  each state agency in information resources management;
  454-6              (3)  describe the existing major data bases and
  454-7  applications in each agency;
  454-8              (4)  describe all existing interagency computer
  454-9  networks;
 454-10              (5)  provide a summary of the total expenditures for
 454-11  information resources and information resources technologies by
 454-12  each agency and the state;
 454-13              (6)  provide an inventory list, by major categories, of
 454-14  the state's information resources technologies; and
 454-15              (7)  identify and make recommendations regarding
 454-16  opportunities for multiagency information resources management
 454-17  activities.
 454-18        (c)  The department shall submit to the governor and to the
 454-19  Legislative Budget Board the approved annual report.
 454-20        (d)  The department may make interim reports that it
 454-21  considers necessary.  (V.A.C.S. Art. 4413(32j), Sec. 13.)
 454-22        Sec. 2054.056.  COMPUTER SERVICE FACILITY.  (a)  The
 454-23  department shall operate a self-supporting computer service
 454-24  facility and provide computer services to state agencies that
 454-25  choose to subscribe to the service.
 454-26        (b)  Services provided under this section may include:
 454-27              (1)  automation feasibility studies;
  455-1              (2)  systems analysis and design;
  455-2              (3)  program development and maintenance;
  455-3              (4)  computer operation;
  455-4              (5)  remote device installation and services;
  455-5              (6)  management of data processing facilities;
  455-6              (7)  consulting services;
  455-7              (8)  training;
  455-8              (9)  technology evaluation;
  455-9              (10)  installation and maintenance of interagency
 455-10  networks;
 455-11              (11)  operation of a disaster recovery site to prevent
 455-12  loss of information; and
 455-13              (12)  other related services.  (V.A.C.S. Art.
 455-14  4413(32j), Secs. 9(k); 21(b).)
 455-15        Sec. 2054.057.  Payment and Accounting For Services.  (a)
 455-16  The department shall develop a billing rate plan that makes the
 455-17  department's provision of services under Section 2054.056
 455-18  self-supporting.  The plan must coincide with the two-year state
 455-19  budgeting cycle.
 455-20        (b)  The department shall establish separate cost centers for
 455-21  different functions or groups of functions.  The billing rate plan
 455-22  must show the proposed rates for the use of each cost center and
 455-23  apply the same rate structure to all state agencies using a given
 455-24  cost center.  (V.A.C.S. Art. 4413(32j), Secs. 22(a), (b).)
 455-25        Sec. 2054.058.  CUSTOMER OVERSIGHT COMMITTEE.  (a)  The
 455-26  department shall establish a customer oversight committee composed
 455-27  of chosen representatives of state agencies that use the
  456-1  department's computer services provided under Section 2054.056.
  456-2        (b)  The department and committee must mutually determine the
  456-3  components of the rate structure under Section 2054.057.
  456-4        (c)  The committee shall review and comment on the billing
  456-5  rate plan under Section 2054.057 at least once each fiscal year.
  456-6  (V.A.C.S. Art. 4413(32j), Sec. 22(c).)
  456-7        Sec. 2054.059.  TELECOMMUNICATIONS PLANNING AND POLICY.  (a)
  456-8  The department shall establish plans and policies for a system of
  456-9  telecommunications services to be managed and operated by the
 456-10  General Services Commission.
 456-11        (b)  The department, comptroller, and General Services
 456-12  Commission shall develop a statewide telecommunications operating
 456-13  plan for all state agencies.  The plan shall implement a statewide
 456-14  network and include technical specifications that are binding on
 456-15  the managing and operating agency.
 456-16        (c)  The department shall adopt appropriate policies and
 456-17  standards that govern the cost-effective and efficient management,
 456-18  operation, and use of state telecommunications services and shall
 456-19  distribute those policies and standards to all state agencies.
 456-20        (d)  Each state agency shall comply with the rules, policies,
 456-21  standards, and guidelines adopted under this section.
 456-22        (e)  The department shall coordinate its duties in this
 456-23  section on matters relating to statewide telecommunications issues
 456-24  with:
 456-25              (1)  the comptroller to achieve the goal of a single
 456-26  centralized telecommunications network; and
 456-27              (2)  other state agencies as appropriate.  (V.A.C.S.
  457-1  Art. 4413(32j), Sec. 9A.)
  457-2          (Sections 2054.060-2054.070 reserved for expansion)
  457-3             SUBCHAPTER D.  INFORMATION RESOURCES MANAGERS
  457-4        Sec. 2054.071.  Identity of Manager.  The individual required
  457-5  to sign a state agency's strategic plan under Subchapter E, or that
  457-6  individual's designated representative, shall serve as the agency's
  457-7  information resources manager.  (V.A.C.S. Art. 4413(32j),
  457-8  Sec. 19(a) (part).)
  457-9        Sec. 2054.072.  CONFLICT OF INTEREST.  A member of the board
 457-10  may not serve as the information resources manager of a state
 457-11  agency.  (V.A.C.S. Art. 4413(32j), Sec. 19(a) (part).)
 457-12        Sec. 2054.073.  DESIGNATION OF DEPARTMENT.  (a)  If the
 457-13  department performs substantially all information processing for a
 457-14  state agency, the agency may designate the department as the
 457-15  agency's information resources manager.
 457-16        (b)  The department by rule may define the circumstances in
 457-17  which it may serve as a state agency's information resources
 457-18  manager.  (V.A.C.S. Art. 4413(32j), Sec. 19(b).)
 457-19        Sec. 2054.074.  RESPONSIBILITY OF INFORMATION RESOURCES
 457-20  MANAGER.  The information resources manager shall prepare the
 457-21  operating plans under Subchapter E and the annual performance
 457-22  report under Section 2054.111.  (V.A.C.S. Art. 4413(32j),
 457-23  Sec. 19(e).)
 457-24        Sec. 2054.075.  COOPERATION WITH INFORMATION RESOURCES
 457-25  MANAGER.  Each state agency shall cooperate as necessary with its
 457-26  information resources manager to enable that individual to perform
 457-27  the manager's duties.  (V.A.C.S. Art. 4413(32j), Sec. 19(c).)
  458-1        Sec. 2054.076.  CONTINUING EDUCATION.  (a)  The department
  458-2  shall provide guidelines to state agencies regarding the initial
  458-3  and continuing education requirements needed for information
  458-4  resources managers.
  458-5        (b)  An individual who is appointed the information resources
  458-6  manager of a state agency before September 1, 1992, is exempt from
  458-7  the requirements of the department regarding initial education
  458-8  needed for that position.
  458-9        (c)  The department may provide educational materials and
 458-10  seminars for state agencies and information resources managers.
 458-11  (V.A.C.S. Art. 4413(32j), Sec. 19(d).)
 458-12          (Sections 2054.077-2054.090 reserved for expansion)
 458-13             SUBCHAPTER E.  STRATEGIC AND OPERATING PLANS
 458-14        Sec. 2054.091.  Preparation of State Strategic Plan.  (a)
 458-15  The executive director shall prepare a state strategic plan for
 458-16  information resources management for the board's review and
 458-17  approval.
 458-18        (b)  In preparing the state strategic plan, the executive
 458-19  director shall assess and report on:
 458-20              (1)  practices of state agencies regarding information
 458-21  resources management, including interagency and interbranch
 458-22  communication and interagency resource sharing;
 458-23              (2)  current and future information resources
 458-24  management technologies and practices and their potential
 458-25  application to state government; and
 458-26              (3)  any issue the department determines is relevant to
 458-27  the development of the state strategic plan.
  459-1        (c)  Each state agency shall cooperate with the executive
  459-2  director in providing information that will enable the executive
  459-3  director to assess agency practices.
  459-4        (d)  The executive director shall appoint an advisory
  459-5  committee to assist in the preparation of the state strategic plan.
  459-6  The members of the advisory committee must be approved by the board
  459-7  and must include officers or employees of state government.
  459-8        (e)  The executive director shall consult the General
  459-9  Services Commission or its successor in function on the direction
 459-10  of developments in the telecommunications field.  The commission
 459-11  shall give the executive director the assistance that the executive
 459-12  director requests in preparing the state strategic plan.  (V.A.C.S.
 459-13  Art. 4413(32j), Secs. 12(a) (part), (b)-(d).)
 459-14        Sec. 2054.092.  CONTENT OF STATE STRATEGIC PLAN.  The state
 459-15  strategic plan must:
 459-16              (1)  provide a strategic direction for information
 459-17  resources management in state government for the five fiscal years
 459-18  following adoption of the plan;
 459-19              (2)  provide guidance to state agencies in the
 459-20  development of the agency strategic plans;
 459-21              (3)  establish goals and objectives relating to
 459-22  information resources management;
 459-23              (4)  provide long-range policy guidelines for
 459-24  information resources in state government, including the
 459-25  implementation of national and international standards for
 459-26  information resources technologies;
 459-27              (5)  identify major issues relating to improved
  460-1  information resources management, including the identification of
  460-2  needed procurement policy initiatives to encourage competition
  460-3  between providers of information resources technologies; and
  460-4              (6)  identify priorities for the implementation of
  460-5  information resources technologies according to the relative
  460-6  economic and social impact on the state.  (V.A.C.S. Art. 4413(32j),
  460-7  Sec. 12(a) (part).)
  460-8        Sec. 2054.093.  AMENDMENT OF STATE STRATEGIC PLAN.  (a)
  460-9  After approval and adoption of the state strategic plan by the
 460-10  board, the board may amend the plan at any time in response to
 460-11  technological advancements, changes in legislation, practical
 460-12  experience, or new issues relating to information resources
 460-13  management.
 460-14        (b)  The board shall adopt a revised plan not later than
 460-15  November 1 of each odd-numbered year.  (V.A.C.S. Art. 4413(32j),
 460-16  Sec. 12(e).)
 460-17        Sec. 2054.094.  SUBMISSION OF STATE STRATEGIC PLAN.  The
 460-18  board shall send the state strategic plan and each amended or
 460-19  revised plan to the governor and to the Legislative Budget Board.
 460-20  (V.A.C.S. Art. 4413(32j), Sec. 12(f).)
 460-21        Sec. 2054.095.  PREPARATION OF AGENCY STRATEGIC PLAN.  (a)
 460-22  Each state agency shall prepare an agency strategic plan for
 460-23  information resources management.
 460-24        (b)  The agency strategic plan must be signed by the
 460-25  presiding officer of the governing body of the state agency if the
 460-26  agency is governed by one or more fully paid full-time state
 460-27  officials, and otherwise by the executive director of the agency.
  461-1        (c)  The agency strategic plan shall be prepared in a format
  461-2  prescribed by the department.
  461-3        (d)  The department by rule shall adopt instructions,
  461-4  consistent with Section 2054.096, that guide state agencies in the
  461-5  preparation of their agency strategic plans.  The instructions must
  461-6  include the general criteria under which the department will
  461-7  evaluate the plan.  The department shall send the instructions to
  461-8  each state agency not later than February 1 of each even-numbered
  461-9  year.  (V.A.C.S. Art. 4413(32j), Secs. 14(a) (part), (b).)
 461-10        Sec. 2054.096.  CONTENT OF AGENCY STRATEGIC PLAN.  Each
 461-11  agency strategic plan must be consistent with the state strategic
 461-12  plan and include:
 461-13              (1)  a statement of the state agency's goals,
 461-14  objectives, and programs as found in the agency's legislative
 461-15  appropriations request;
 461-16              (2)  a description of the agency's major data bases and
 461-17  their applications;
 461-18              (3)  a description of the agency's information
 461-19  resources management organizations, policies, and practices;
 461-20              (4)  a description of interagency computer networks in
 461-21  which the agency participates;
 461-22              (5)  a statement of the strategic objectives of the
 461-23  agency relating to information resources management for the next
 461-24  five fiscal years, beginning with the fiscal year during which the
 461-25  plan is submitted, with a description of how those objectives help
 461-26  achieve the agency's programs and goals, and a description of how
 461-27  those objectives support and promote the goals and policies of the
  462-1  state strategic plan; and
  462-2              (6)  other planning components that the department may
  462-3  prescribe.  (V.A.C.S. Art. 4413(32j), Sec. 14(c).)
  462-4        Sec. 2054.097.  REVIEW OF AGENCY STRATEGIC PLAN.  (a)  A
  462-5  state agency shall send its strategic plan to the department for
  462-6  review and approval not later than January 1 of each odd-numbered
  462-7  year.
  462-8        (b)  The department shall review and approve or disapprove
  462-9  each agency strategic plan not later than April 15 of each
 462-10  odd-numbered year.
 462-11        (c)  The department shall notify a state agency of plan
 462-12  approval in writing.
 462-13        (d)  The department may not disapprove an agency strategic
 462-14  plan or plan amendment on the ground that some aspect of the plan
 462-15  is not best suited to the state agency's execution of its own duty,
 462-16  but the department may make a finding to that effect and report
 462-17  that finding to the agency, the governor, the state auditor, the
 462-18  Legislative Budget Board, and the presiding officer of each house
 462-19  of the legislature.  This subsection does not affect the powers of
 462-20  the governor, the Legislative Budget Board, or any other entity
 462-21  under other law.  (V.A.C.S. Art. 4413(32j), Secs. 14(a) (part), (d)
 462-22  (part), (g).)
 462-23        Sec. 2054.098.  APPROVAL OR DISAPPROVAL OF AGENCY STRATEGIC
 462-24  PLAN.  (a)  If a plan is disapproved, the department shall provide
 462-25  to the state agency in writing notice of and the reasons for
 462-26  disapproval and the changes that are necessary for the plan's
 462-27  approval.
  463-1        (b)  If a state agency cannot resolve the problems that
  463-2  caused disapproval of a plan within 30 days after the date that the
  463-3  notice of disapproval is received, the information resources
  463-4  manager of the agency shall provide to the department in writing
  463-5  not later than the 30th day after the date that the notice of
  463-6  disapproval is received the reasons why the problems cannot be
  463-7  timely resolved.
  463-8        (c)  An approved agency strategic plan shall be amended by a
  463-9  state agency to reflect any significant changes being proposed by
 463-10  the agency that relate to information resources.  A plan amendment
 463-11  shall be submitted to the department for approval.  The department
 463-12  shall notify an agency in writing of approval or disapproval of the
 463-13  amendment within 30 days after the date the amendment is received.
 463-14  If a plan amendment is disapproved, the department shall provide to
 463-15  the individual responsible for signing the agency's plan the
 463-16  reasons for disapproval in writing.
 463-17        (d)  A state agency that disagrees with the department's
 463-18  final disapproval of an agency strategic plan or amendment to the
 463-19  plan may, after complying with Subsections (b) and (c), submit a
 463-20  written request to the executive director for special review.  On
 463-21  receipt of a request, the executive director shall inform the
 463-22  board.  The board shall consider the merits of the agency's
 463-23  position and make its decision on the matter at the next regularly
 463-24  scheduled board meeting.  The state agency may appear and present
 463-25  its position at that meeting.  The decision of the board is final.
 463-26  (V.A.C.S. Art. 4413(32j), Secs. 14(d) (part), (e), (f).)
 463-27        Sec. 2054.099.  INITIAL OPERATING PLAN OF STATE AGENCY.  (a)
  464-1  Once each biennium, each state agency's information resources
  464-2  manager shall prepare an initial operating plan.
  464-3        (b)  A state agency is not required to identify specific
  464-4  acquisitions or the method of acquisition in the initial operating
  464-5  plan.
  464-6        (c)  An initial operating plan must be approved by the
  464-7  governing body of the state agency and submitted to the department
  464-8  for approval not later than the date that the agency is required to
  464-9  submit its first legislative appropriations request.
 464-10        (d)  An initial operating plan must, for each request under
 464-11  each Legislative Budget Board assumption:
 464-12              (1)  state how the state agency's requested
 464-13  appropriations for the management, operation, and procurement of
 464-14  information resources would be spent;
 464-15              (2)  contain a summary of the agency's needs for
 464-16  information resources technologies and the estimated cost of
 464-17  meeting those needs during the next biennium;
 464-18              (3)  list the existing and proposed projects for the
 464-19  agency during the next biennium, including:
 464-20                    (A)  the anticipated measurable benefits of those
 464-21  projects and the measurement standards used to determine those
 464-22  benefits;
 464-23                    (B)  the major resources required to conduct the
 464-24  projects;
 464-25                    (C)  the agency's estimated total cost of each
 464-26  project by legislative program as found in the agency's legislative
 464-27  appropriations request;
  465-1                    (D)  the cost and implementation schedule for
  465-2  each stage of each project;
  465-3                    (E)  the number, type, approximate cost,
  465-4  schedule, and, if known, the planned method of acquisition for all
  465-5  procurements associated with each project that are subject to
  465-6  review under department rules; and
  465-7                    (F)  the estimated internal development costs for
  465-8  each project, including an allocation of costs for the use of fixed
  465-9  assets and an allocation for administrative costs;
 465-10              (4)  provide an estimate, given the estimated work
 465-11  load, of the percentage of existing and proposed information
 465-12  resources technologies that will be required after all existing and
 465-13  proposed projects are implemented; and
 465-14              (5)  provide any other information that the department
 465-15  considers necessary.  (V.A.C.S. Art. 4413(32j), Sec. 15.)
 465-16        Sec. 2054.100.  FINAL OPERATING PLAN OF STATE AGENCY.  (a)
 465-17  Each state agency shall submit a final operating plan to the
 465-18  department not later than the earliest of the following dates of
 465-19  each odd-numbered year:
 465-20              (1)  September 1;
 465-21              (2)  the 60th day after the date the General
 465-22  Appropriations Act becomes law if it becomes law on or before July
 465-23  31 of that year; or
 465-24              (3)  the 30th day after the date the General
 465-25  Appropriations Act becomes law if it becomes law after July 31 of
 465-26  that year.
 465-27        (b)  At a minimum, the plan must include, in addition to the
  466-1  information required in the initial operating plan, the following:
  466-2              (1)  the amount of money related to information
  466-3  resources actually appropriated to the state agency for the
  466-4  biennium beginning September 1; and
  466-5              (2)  an identification of changes, if any, in the
  466-6  agency's priorities for projects and associated procurements stated
  466-7  in the initial operating plan.
  466-8        (c)  The department may consult the comptroller to verify a
  466-9  state agency's approved funds.
 466-10        (d)  A state agency shall amend its final operating plan when
 466-11  necessary to:
 466-12              (1)  reflect changes in the plan during a biennium; or
 466-13              (2)  show the impact of a consulting services contract
 466-14  or report that may affect software development, hardware
 466-15  configuration, or changes in the agency's management of information
 466-16  resources.
 466-17        (e)  The substance of any amendment submitted to a final
 466-18  operating plan must also be included in an appropriate approved
 466-19  agency strategic plan or approved agency strategic plan amendment.
 466-20  (V.A.C.S. Art. 4413(32j), Sec. 16.)
 466-21        Sec. 2054.101.  INSTRUCTIONS FOR PREPARING OPERATING PLANS.
 466-22  (a)  The department by rule shall adopt instructions to guide state
 466-23  agencies in their preparation of initial operating plans and final
 466-24  operating plans.
 466-25        (b)  The instructions must:
 466-26              (1)  specify the format of the plans;
 466-27              (2)  require the submission of the information required
  467-1  by this chapter; and
  467-2              (3)  list the general criteria that the department will
  467-3  use to evaluate the plans.  (V.A.C.S. Art. 4413(32j), Sec. 17(a).)
  467-4        Sec. 2054.102.  APPROVAL OR DISAPPROVAL OF OPERATING PLANS.
  467-5  (a)  The department shall notify a state agency in writing of the
  467-6  department's approval or disapproval of an initial operating plan.
  467-7  The notification shall be sent not later than the 120th day after
  467-8  the date the department receives the plan.
  467-9        (b)  The department shall notify a state agency in writing of
 467-10  the department's approval or disapproval of a final operating plan.
 467-11  The notification shall be sent not later than the 30th day after
 467-12  the date the department receives the plan.  If the department's
 467-13  determination is due after September 1 of an odd-numbered year, a
 467-14  state agency may operate as if the plan had been approved until the
 467-15  department actually makes its determination.
 467-16        (c)  If the department disapproves a state agency's initial
 467-17  operating plan or final operating plan, the department shall
 467-18  provide to the agency in writing the reasons for the disapproval.
 467-19  If the agency cannot resolve the problems that caused disapproval
 467-20  within 30 days after the date the notice of disapproval is
 467-21  received, the agency shall notify the department in writing of the
 467-22  reasons why the problems cannot be resolved.  The notification
 467-23  shall be sent to the department not later than the 30th day after
 467-24  the date the agency receives notice of the department's
 467-25  disapproval.
 467-26        (d)  Before a state agency may amend its final operating
 467-27  plan, the agency must submit the proposed amendment to the
  468-1  department for approval.  All amendments affecting operations
  468-2  during a fiscal year must be submitted not later than June 1 of
  468-3  that fiscal year.  The department shall notify the agency of the
  468-4  department's approval or disapproval not later than the 30th day
  468-5  after the date the proposed amendment is received.  If the
  468-6  department disapproves a proposed amendment, the department shall
  468-7  state the reasons for the disapproval in writing to the agency's
  468-8  information resources manager.  The department shall adopt rules
  468-9  for the procedures a state agency must follow when submitting a
 468-10  revision of proposed amendments to the department after the
 468-11  department has disapproved the amendments.
 468-12        (e)  The department may not approve a state agency's initial
 468-13  operating plan or final operating plan unless the agency has
 468-14  submitted and the department has approved a current agency
 468-15  strategic plan.
 468-16        (f)  A state agency that disagrees with the department's
 468-17  disapproval of an initial operating plan, final operating plan, or
 468-18  an amendment to either of those plans may submit a written request
 468-19  to the department for special review.  On receipt of a request, the
 468-20  executive director shall inform the board.  The board shall
 468-21  consider the merits of the agency's position and make its decision
 468-22  on the matter at the next regularly scheduled board meeting.  The
 468-23  state agency may appear and present its position at that meeting.
 468-24  The decision of the board is final.  The board shall adopt rules
 468-25  for the fair and efficient administration of this subsection.
 468-26  (V.A.C.S. Art. 4413(32j), Secs. 17(b)-(g).)
 468-27        Sec. 2054.103.  SUBMISSION OF OPERATING PLANS AND CERTAIN
  469-1  PROCUREMENT INFORMATION.  (a)  Each state agency shall send a copy
  469-2  of its final operating plan, as approved by the department, to the
  469-3  governor, the Legislative Budget Board, and the state auditor not
  469-4  later than the 30th day after the date the department approves the
  469-5  plan.
  469-6        (b)  As a consequence of evaluating an initial operating plan
  469-7  or a final operating plan, the department may require a state
  469-8  agency to submit or obtain certain information as part of its
  469-9  procurement process when:
 469-10              (1)  an agency is planning a noncompetitive
 469-11  procurement;
 469-12              (2)  an agency is planning a system conversion; or
 469-13              (3)  the department determines that the information
 469-14  would be necessary or appropriate.  (V.A.C.S. Art. 4413(32j), Secs.
 469-15  17(h) (part), (i).)
 469-16        Sec. 2054.104.  DENIAL OF ACCESS TO APPROPRIATIONS ON FAILURE
 469-17  TO SUBMIT OPERATING PLAN AND CERTAIN PROCUREMENT INFORMATION.  (a)
 469-18  If a state agency fails to comply with Section 2054.103, the
 469-19  governor may direct the comptroller to deny the agency access to
 469-20  the agency's appropriations that relate to the management of
 469-21  information resources.
 469-22        (b)  The denial of access may continue until the governor is
 469-23  satisfied with the state agency's compliance with this section.
 469-24  (V.A.C.S. Art. 4413(32j), Sec. 17(h) (part).)
 469-25          (Sections 2054.105-2054.110 reserved for expansion)
 469-26       SUBCHAPTER F.  OTHER POWERS AND DUTIES OF STATE AGENCIES
 469-27        Sec. 2054.111.  ANNUAL PERFORMANCE REPORT.  (a)  Each state
  470-1  agency's information resources manager shall prepare an annual
  470-2  performance report.
  470-3        (b)  The department by rule shall prescribe the format for
  470-4  the annual performance report.
  470-5        (c)  Each state agency shall provide a copy of its annual
  470-6  performance report to the department for review and analysis not
  470-7  later than November 1 of each year.  (V.A.C.S. Art. 4413(32j),
  470-8  Secs. 20(a), (b), (d) (part).)
  470-9        Sec. 2054.112.  CONTENTS OF ANNUAL PERFORMANCE REPORT.  The
 470-10  annual performance report must contain:
 470-11              (1)  a description of the state agency's management of
 470-12  information resources in the preceding fiscal year;
 470-13              (2)  an assessment, by application, of the progress
 470-14  made toward implementing the agency strategic plan under Subchapter
 470-15  E;
 470-16              (3)  an assessment of the progress made toward
 470-17  implementing the agency's final operating plan under Subchapter E,
 470-18  which notes and explains any major differences between that plan
 470-19  and actual accomplishments;
 470-20              (4)  a summary, by project, of the major functional
 470-21  uses of information resources by the agency;
 470-22              (5)  a summary, by project, of the total estimated
 470-23  expenditures  for information resources management and use by the
 470-24  agency, including allocated administrative costs;
 470-25              (6)  a comparison of the agency's expenditures for
 470-26  information resources in the preceding fiscal year with the
 470-27  appropriations for those resources in the agency's approved budget,
  471-1  which notes and justifies differences between the two;
  471-2              (7)  an inventory, by major category as defined by rule
  471-3  of the department, of the agency's information  resources
  471-4  technologies, which specifically identifies the resources acquired
  471-5  during the preceding fiscal year; and
  471-6              (8)  an assessment of opportunities for participation
  471-7  with other state agencies in the use and management of information
  471-8  resources.  (V.A.C.S. Art. 4413(32j), Sec. 20(c).)
  471-9        Sec. 2054.113.  DENIAL OF ACCESS TO APPROPRIATIONS.  (a)  If
 471-10  a state agency fails to comply with the date its annual performance
 471-11  report is due under Section 2054.111 without good cause, the
 471-12  department may request the comptroller to deny the agency access to
 471-13  the agency's appropriations that relate to the management of
 471-14  information resources.
 471-15        (b)  If the comptroller denies access, the denial of access
 471-16  may continue until the department is satisfied with the state
 471-17  agency's compliance with this subsection.  (V.A.C.S. Art.
 471-18  4413(32j), Sec. 20(d) (part).)
 471-19        Sec. 2054.114.  ACQUISITION SPECIFICATIONS.  (a)  A state
 471-20  agency may not acquire information resources technologies unless
 471-21  the agency first submits the specifications for the proposed
 471-22  acquisition to the department.  If the agency determines that the
 471-23  acquisition may be obtained from only one source, the agency shall
 471-24  state the reasons for that determination.
 471-25        (b)  The department shall determine whether the
 471-26  specifications of the proposed acquisition are consistent with the
 471-27  appropriate final operating plan and plan amendments under
  472-1  Subchapter E.
  472-2        (c)  If the department finds that the acquisition of
  472-3  information resources technologies described by the specifications
  472-4  would be inconsistent with the appropriate plan and plan
  472-5  amendments, the department shall notify the state agency and, for
  472-6  acquisitions made through the General Services Commission, the
  472-7  commission in writing of the finding and of the specific reasons
  472-8  for the finding.  The acquisition may not be made unless the
  472-9  department overturns its finding.
 472-10        (d)  If the department finds that the proposed acquisition is
 472-11  consistent with the appropriate plan and plan amendments, or if the
 472-12  department does not issue the notification of its finding of
 472-13  inconsistency on or before the 30th day after the date the
 472-14  department receives the specifications for the proposed
 472-15  acquisition, the acquisition may be made.
 472-16        (e)  The department by rule may establish procedures to
 472-17  exempt certain procurements from the requirements of this section
 472-18  and to expedite the requirements of this section for certain
 472-19  procurements.  The exempted procurements shall include technologies
 472-20  that are acquired through contracts and grants by an institution of
 472-21  higher education as defined by Section 61.003, Education Code, for
 472-22  instruction or research purposes.  (V.A.C.S. Art. 4413(32j), Secs.
 472-23  18(a)-(d).)
 472-24        Sec. 2054.115.  SALE OR LEASE OF SOFTWARE.  (a)  A state
 472-25  agency that develops automated information systems software may
 472-26  enter a contract with an individual or company for the sale, lease,
 472-27  marketing, or other distribution of the software.
  473-1        (b)  The state agency shall obtain under the contract a
  473-2  royalty, license right, or other appropriate means of securing
  473-3  appropriate compensation for the development of the software.
  473-4        (c)  Money received under the contract shall be deposited to
  473-5  the credit of the fund for which the development of the software
  473-6  was financed.
  473-7        (d)  To the extent of a conflict between this section and
  473-8  another provision of state law relating to automated information
  473-9  systems software, the other provision prevails.  (V.A.C.S.
 473-10  Art. 4413(32j), Sec. 23.)
 473-11        Sec. 2054.116.  COMPUTER SERVICES CONTRACTS.  (a)  A state
 473-12  agency that uses the department's computer services or computer
 473-13  services facility under Section 2054.056 must do so under contract
 473-14  with the department.
 473-15        (b)  A contract under this section is not subject to Chapter
 473-16  771 and is binding on the parties for the length of the contract.
 473-17        (c)  A contract may not be canceled before the end of a state
 473-18  fiscal biennium, unless the cancellation is approved by the
 473-19  department after having received at least 90 days' notice of the
 473-20  proposed cancellation.
 473-21        (d)  A state agency may contract with persons outside of
 473-22  government to obtain a service listed by Section 2054.056 if that
 473-23  would lower costs to the state and if the contract complies with
 473-24  this chapter.  (V.A.C.S. Art. 4413(32j), Secs. 21(a), (c).)
 473-25        Sec. 2054.117.  ELECTRONIC DATA PROCESSING CENTER.  (a)  Each
 473-26  state agency, if practicable, shall use the electronic data
 473-27  processing center operated by the comptroller in performing any of
  474-1  the agency's accounting and data processing activities that can be
  474-2  practically adapted to the use of the center's equipment.
  474-3        (b)  The comptroller shall permit the use of the center's
  474-4  equipment by state agencies with or without charge under rules that
  474-5  ensure the proper use of the equipment for the efficient and
  474-6  economical management of state government.  (V.A.C.S.
  474-7  Art. 6252-12.)
  474-8      CHAPTER 2055.  FACULTY INFORMATION AND RESEARCH SERVICE FOR
  474-9                            TEXAS COMMITTEE
 474-10                   SUBCHAPTER A.  GENERAL PROVISIONS
 474-11  Sec. 2055.001.  DEFINITIONS
 474-12  Sec. 2055.002.  COMPOSITION OF COMMITTEE
 474-13  Sec. 2055.003.  OFFICERS
 474-14  Sec. 2055.004.  COMPENSATION AND EXPENSES
 474-15  Sec. 2055.005.  MEETINGS
 474-16  Sec. 2055.006.  PERSONNEL; VOLUNTEERS
 474-17          (Sections 2055.007-2055.020 reserved for expansion)
 474-18                   SUBCHAPTER B.  POWERS AND DUTIES
 474-19  Sec. 2055.021.  GENERAL POWERS AND DUTIES
 474-20  Sec. 2055.022.  GIFT, GRANT, AND CONTRIBUTED SERVICE
 474-21                    OR FACILITY
 474-22  Sec. 2055.023.  FUNDING
 474-23      CHAPTER 2055.  FACULTY INFORMATION AND RESEARCH SERVICE FOR
 474-24                            TEXAS COMMITTEE
 474-25                   SUBCHAPTER A.  GENERAL PROVISIONS
 474-26        Sec. 2055.001.  DEFINITIONS.  In this chapter:
 474-27              (1)  "Administrators or faculty" means the
  475-1  administrators or faculty of a public or private institution of
  475-2  higher education in this state.
  475-3              (2)  "Committee" means the Faculty Information and
  475-4  Research Service for Texas Committee, FIRST Committee.
  475-5              (3)  "Service" means the Faculty Information and
  475-6  Research Service for Texas, Project FIRST.  (New.)
  475-7        Sec. 2055.002.  COMPOSITION OF COMMITTEE.  (a)  The committee
  475-8  is composed of:
  475-9              (1)  the chairman of the Senate Committee on Natural
 475-10  Resources;
 475-11              (2)  the chairman of the House Committee on
 475-12  Environmental Affairs;
 475-13              (3)  the director of the Legislative Reference Library;
 475-14              (4)  the president of the Texas Association of College
 475-15  Teachers;
 475-16              (5)  the president of the Texas chapter of the American
 475-17  Association of University Professors;
 475-18              (6)  a representative of the Independent Colleges and
 475-19  Universities of Texas, Inc.;
 475-20              (7)  a representative of the Texas Junior College
 475-21  Teachers Association;
 475-22              (8)  a representative of the Texas Public
 475-23  Community/Junior Colleges Association;
 475-24              (9)  a representative of the Council of Presidents of
 475-25  the Public Senior Colleges and Universities of Texas; and
 475-26              (10)  a representative of the Texas Legislative
 475-27  Council.
  476-1        (b)  A member who holds public office serves as an ex officio
  476-2  member.  The functions performed by an ex officio member are
  476-3  additional functions of the member's public office.
  476-4        (c)  An organization that is not represented on the committee
  476-5  may participate in the service and send a representative to the
  476-6  committee if the organization:
  476-7              (1)  represents the interests of an accredited public
  476-8  or private institution of higher education or its administrators or
  476-9  faculty; and
 476-10              (2)  requests and receives permission of the presiding
 476-11  officer of the committee.
 476-12        (d)  A committee member may designate a representative to act
 476-13  in the member's place at a meeting of the committee.  (V.A.C.S.
 476-14  Art. 4413(57), Secs. 2, 4.)
 476-15        Sec. 2055.003.  OFFICERS.  The committee annually shall elect
 476-16  from its members a presiding officer and other officers it
 476-17  considers necessary.  (V.A.C.S. Art. 4413(57), Sec. 3(a).)
 476-18        Sec. 2055.004.  COMPENSATION AND EXPENSES.  (a)  A member of
 476-19  the committee or a designated representative of a member may not
 476-20  receive compensation for service performed for the committee.
 476-21        (b)  A member of the committee or a designated representative
 476-22  of a member may receive reimbursement for actual or necessary
 476-23  expenses incurred in performing service for the committee only if
 476-24  the reimbursement is provided by an organization represented on the
 476-25  committee.  (V.A.C.S. Art. 4413(57), Sec. 5.)
 476-26        Sec. 2055.005.  MEETINGS.  The committee shall meet at the
 476-27  call of the presiding officer or as provided by committee rule.
  477-1  (V.A.C.S. Art. 4413(57), Sec. 3(b).)
  477-2        Sec. 2055.006.  PERSONNEL; VOLUNTEERS.  (a)  The committee
  477-3  may employ personnel and may use the voluntary assistance of
  477-4  administrators or faculty.
  477-5        (b)  An administrator or faculty member who provides
  477-6  information for the service is a volunteer and is not required to
  477-7  respond to a request for information from the service.  An
  477-8  administrator or faculty member may provide requested information
  477-9  if the administrator's or faculty member's time permits and the
 477-10  administrator or faculty member has expertise related to the
 477-11  request.  (V.A.C.S. Art. 4413(57), Secs. 6(a), 8(c).)
 477-12          (Sections 2055.007-2055.020 reserved for expansion)
 477-13                   SUBCHAPTER B.  POWERS AND DUTIES
 477-14        Sec. 2055.021.  GENERAL POWERS AND DUTIES.  (a)  The
 477-15  committee shall:
 477-16              (1)  establish and govern the service;
 477-17              (2)  make available to a legislative member, committee,
 477-18  or agency the expertise of administrators or faculty;
 477-19              (3)  use the expertise of administrators or faculty to
 477-20  provide an answer to a request for information from a legislative
 477-21  member, committee, or agency; and
 477-22              (4)  provide to the governor a service that the
 477-23  committee provides to a legislative member, committee, or agency if
 477-24  the governor requests the service and the committee approves the
 477-25  request.
 477-26        (b)  The committee may:
 477-27              (1)  adopt rules necessary for the administration of
  478-1  its functions; and
  478-2              (2)  before using the expertise of administrators or
  478-3  faculty, refer a legislative member, committee, or agency to a
  478-4  source of information located at an agency or other organization of
  478-5  the state to supplement an existing source of information.
  478-6  (V.A.C.S. Art. 4413(57), Secs. 1; 8(a), (b); 10.)
  478-7        Sec. 2055.022.  GIFT, GRANT, AND CONTRIBUTED SERVICE OR
  478-8  FACILITY.  (a)  The committee may accept a gift or grant from any
  478-9  source to be used by the committee to administer its functions.
 478-10        (b)  The committee may use a service or facility contributed
 478-11  to the committee by an officer or employee of the legislature.
 478-12  (V.A.C.S. Art. 4413(57), Secs. 6(b), 7.)
 478-13        Sec. 2055.023.  FUNDING.  The committee is to be funded by
 478-14  appropriations to the committee or to another organization in state
 478-15  government designated by the committee as having operational
 478-16  control of the service.  (V.A.C.S. Art. 4413(57), Sec. 9.)
 478-17              CHAPTER 2056.  STRATEGIC PLANS OF OPERATION
 478-18  Sec. 2056.001.  DEFINITION
 478-19  Sec. 2056.002.  STRATEGIC PLANS
 478-20  Sec. 2056.003.  FORMS AND INSTRUCTIONS
 478-21  Sec. 2056.004.  ASSISTANCE FOR AGENCIES
 478-22  Sec. 2056.005.  INFORMATION PROVIDED TO AGENCIES
 478-23  Sec. 2056.006.  GOALS
 478-24  Sec. 2056.007.  ADDITIONAL INFORMATION
 478-25  Sec. 2056.008.  HEARING
 478-26  Sec. 2056.009.  STATE PLAN
 478-27  Sec. 2056.010.  AGENCY CONFORMANCE TO STRATEGIC PLAN
  479-1              CHAPTER 2056.  STRATEGIC PLANS OF OPERATION
  479-2        Sec. 2056.001.  DEFINITION.  In this chapter, "state agency"
  479-3  means an agency, board, commission, or other office of the
  479-4  executive branch of state government, other than the office of the
  479-5  lieutenant governor.  (V.A.C.S. Art. 6252-31, Sec. 1, as added Acts
  479-6  72nd Leg., R.S., Ch. 384.)
  479-7        Sec. 2056.002.  STRATEGIC PLANS.  (a)  A state agency shall
  479-8  make a strategic plan for its operations.  Not later than March 1
  479-9  of each even-numbered year, the agency shall issue a plan covering
 479-10  six years beginning on that date.
 479-11        (b)  Except as provided by Subsection (c), a plan must
 479-12  include:
 479-13              (1)  a statement of the mission and goals of the state
 479-14  agency;
 479-15              (2)  a description of the indicators developed under
 479-16  this chapter and used to measure the output and outcome of the
 479-17  agency;
 479-18              (3)  identification of the groups of people served by
 479-19  the agency, including those having service priorities, or other
 479-20  service measures established by law, and estimates of changes in
 479-21  those groups expected during the term of the plan;
 479-22              (4)  an analysis of the use of the agency's resources
 479-23  to meet the agency's needs, including future needs, and an estimate
 479-24  of additional resources that may be necessary to meet future needs;
 479-25              (5)  an analysis of expected changes in the services
 479-26  provided by the agency because of changes in state or federal law;
 479-27              (6)  a description of the means and strategies for
  480-1  meeting the agency's needs, including future needs, and achieving
  480-2  the goals established under Section 2056.006 for each area of state
  480-3  government for which the agency provides services; and
  480-4              (7)  other information that may be required.
  480-5        (c)  A state agency's plan that does not include an item
  480-6  described by Subsection (b) must include the reason the item does
  480-7  not apply to the agency.
  480-8        (d)  A state agency shall send two copies of each plan to the
  480-9  Legislative Reference Library and one copy each to:
 480-10              (1)  the governor;
 480-11              (2)  the lieutenant governor;
 480-12              (3)  the speaker of the house of representatives;
 480-13              (4)  the Legislative Budget Board;
 480-14              (5)  the Sunset Advisory Commission;
 480-15              (6)  the state auditor; and
 480-16              (7)  the comptroller.  (V.A.C.S. Art 6252-31, Secs.
 480-17  2(a), (b), (c), as added Acts 72nd Leg., R.S., Ch. 384.)
 480-18        Sec. 2056.003.  FORMS AND INSTRUCTIONS.  The Governor's
 480-19  Office of Budget and Planning and the Legislative Budget Board
 480-20  shall develop forms and instructions for a state agency to use in
 480-21  preparing the agency's strategic plan.  (V.A.C.S. Art. 6252-31,
 480-22  Sec. 2(d)(1), as added Acts 72nd Leg., R.S., Ch. 384.)
 480-23        Sec. 2056.004.  ASSISTANCE FOR AGENCIES.  The Governor's
 480-24  Office of Budget and Planning and the Legislative Budget Board
 480-25  shall work with each state agency to determine acceptable measures
 480-26  of workload, output, and outcome for use in the agency's plan.
 480-27  (V.A.C.S. Art. 6252-31, Sec. 2(d)(2), as added Acts 72nd Leg.,
  481-1  R.S., Ch. 384.)
  481-2        Sec. 2056.005.  INFORMATION PROVIDED TO AGENCIES.  (a)  Not
  481-3  later than September 1 of each odd-numbered year, the comptroller
  481-4  shall provide a long-term forecast of the state's economy and
  481-5  population to each state agency for use in the agency's strategic
  481-6  planning.
  481-7        (b)  The comptroller, the Governor's Office of Budget and
  481-8  Planning, and the Legislative Budget Board jointly shall determine
  481-9  the information to be included in the forecast.  (V.A.C.S. Art.
 481-10  6252-31, Sec. 4, as added Acts 72nd Leg., R.S., Ch. 384.)
 481-11        Sec. 2056.006.  GOALS.  (a)  The governor, in cooperation
 481-12  with the Legislative Budget Board, shall establish and adopt
 481-13  achievement goals for each functional area of state government,
 481-14  including:
 481-15              (1)  education;
 481-16              (2)  regulation;
 481-17              (3)  natural resources;
 481-18              (4)  health;
 481-19              (5)  human services;
 481-20              (6)  transportation;
 481-21              (7)  public safety and corrections;
 481-22              (8)  general government; and
 481-23              (9)  state employee benefits.
 481-24        (b)  Not later than October 1 of each odd-numbered year, the
 481-25  governor shall provide to each state agency a statement of the
 481-26  goals for each area in which the agency provides services.
 481-27  (V.A.C.S. Art. 6252-31, Sec. 3, as added Acts 72nd Leg., R.S.,
  482-1  Ch. 384.)
  482-2        Sec. 2056.007.  ADDITIONAL INFORMATION.  After a state agency
  482-3  issues its strategic plan, the Governor's Office of Budget and
  482-4  Planning and the Legislative Budget Board may request additional
  482-5  information relating to the plan from the agency.  The agency shall
  482-6  provide the information in a timely manner.  (V.A.C.S. Art.
  482-7  6252-31, Sec. 2(d)(4), as added Acts 72nd Leg., R.S., Ch. 384.)
  482-8        Sec. 2056.008.  HEARING.  The Governor's Office of Budget and
  482-9  Planning and the Legislative Budget Board jointly may hold a
 482-10  hearing on any matter required by this chapter.  (V.A.C.S.
 482-11  Art. 6252-31, Sec. 2(d)(5), as added Acts 72nd Leg., R.S.,
 482-12  Ch. 384.)
 482-13        Sec. 2056.009.  STATE PLAN.  (a)  The Governor's Office of
 482-14  Budget and Planning and the Legislative Budget Board jointly shall
 482-15  compile a long-range strategic plan for state government using the
 482-16  state agency plans issued under Section 2056.002 and information
 482-17  obtained under Section 2056.007.
 482-18        (b)  The state plan shall be sent to the governor, lieutenant
 482-19  governor, comptroller, and each member of the legislature not later
 482-20  than September 1 of each even-numbered year.  (V.A.C.S.
 482-21  Art. 6252-31, Secs. 2(d)(3), (6), as added Acts 72nd Leg., R.S.,
 482-22  Ch. 384.)
 482-23        Sec. 2056.010.  AGENCY CONFORMANCE TO STRATEGIC PLAN.  The
 482-24  comptroller, the Sunset Advisory Commission, the state auditor, the
 482-25  Legislative Budget Board, or another agency that conducts
 482-26  performance audits of a state agency shall consider in the
 482-27  evaluation of an agency the extent to which the agency conforms to
  483-1  the agency's strategic plan.  (V.A.C.S. Art. 6252-31, Sec. 5, as
  483-2  added Acts 72nd Leg., R.S., Ch. 384.)
  483-3                CHAPTER 2057.  CAPITAL IMPROVEMENT PLAN
  483-4  Sec. 2057.001.  DEFINITIONS
  483-5  Sec. 2057.002.  ADOPTION AND SUBMISSION OF PLAN
  483-6  Sec. 2057.003.  CONTENTS OF PLAN
  483-7  Sec. 2057.004.  COOPERATION BY STATE AGENCIES
  483-8  Sec. 2057.005.  ADVISORY COMMITTEE
  483-9                CHAPTER 2057.  CAPITAL IMPROVEMENT PLAN
 483-10        Sec. 2057.001.  DEFINITIONS.  In this chapter:
 483-11              (1)  "Board" means the Legislative Budget Board.
 483-12              (2)  "Bond review board" means the bond review board
 483-13  created under Chapter 1078, Acts of the 70th Legislature, Regular
 483-14  Session, 1987 (Article 717k-7, Vernon's Texas Civil Statutes).
 483-15              (3)  "Capital improvement" means any building or
 483-16  infrastructure project that will be owned by the state and built
 483-17  with direct appropriations or with the proceeds of state-issued
 483-18  bonds designed to be repaid with the general revenues of the state.
 483-19  The term does not include a building or project financed with bonds
 483-20  that, although backed by the full faith and credit of the state,
 483-21  are reasonably expected to be paid from other revenue sources and
 483-22  that are not expected to require payments of general revenues.
 483-23              (4)  "Capital improvement plan" means a six-year
 483-24  strategic capital improvement plan adopted under this chapter.
 483-25              (5)  "State agency" means a governmental entity that
 483-26  spends money appropriated by the General Appropriations Act.
 483-27  (V.A.C.S. Art. 6252-32, Sec. 1; New.)
  484-1        Sec. 2057.002.  ADOPTION AND SUBMISSION OF PLAN.  (a)  Not
  484-2  later than October 31 of each even-numbered year, the governor and
  484-3  the board shall jointly adopt a six-year strategic capital
  484-4  improvement plan.
  484-5        (b)  The governor shall submit the plan to the bond review
  484-6  board for review and to the legislature.  (V.A.C.S. Art. 6252-32,
  484-7  Sec. 2.)
  484-8        Sec. 2057.003.  CONTENTS OF PLAN.  (a)  A capital improvement
  484-9  plan must include:
 484-10              (1)  a description of the capital improvement needs of
 484-11  state agencies during the six-year period;
 484-12              (2)  establishment of priorities, if appropriate, for
 484-13  those needs;
 484-14              (3)  an estimate about how those needs may be financed
 484-15  during the six-year period;
 484-16              (4)  recommended debt limits for the six-year period;
 484-17  and
 484-18              (5)  estimates of the effects capital improvements will
 484-19  have on operating budgets.
 484-20        (b)  The board shall develop and periodically revise criteria
 484-21  for the inclusion in a capital improvement plan of a proposed
 484-22  capital improvement project or of an acquisition or expenditure for
 484-23  capital improvements.  The board shall obtain the advice and
 484-24  recommendations of the bond review board before developing or
 484-25  revising the criteria.  (V.A.C.S. Art. 6252-32, Sec. 3.)
 484-26        Sec. 2057.004.  COOPERATION BY STATE AGENCIES.  (a)  The
 484-27  governor and the board shall solicit the advice and recommendations
  485-1  of each state agency before adopting a capital improvement plan.
  485-2        (b)  In formulating a capital improvement plan, the governor
  485-3  and the board shall take into account each state agency's strategic
  485-4  plan for operations developed under Chapter 2056.
  485-5        (c)  The governor and the board may require a state agency
  485-6  to:
  485-7              (1)  submit information, reports, plans, and
  485-8  documentation;
  485-9              (2)  answer inquiries; and
 485-10              (3)  cooperate in the preparation of a plan.  (V.A.C.S.
 485-11  Art. 6252-32, Sec. 4.)
 485-12        Sec. 2057.005.  ADVISORY COMMITTEE.  (a)  The governor and
 485-13  the board may establish an advisory committee composed of officers
 485-14  and employees of the Department of Information Resources, the
 485-15  General Services Commission, the bond review board, and other state
 485-16  agencies.
 485-17        (b)  The committee shall advise the governor and the board on
 485-18  the development and content of a capital improvement plan.
 485-19        (c)  Service on the committee is an additional duty of the
 485-20  member's office or employment.  (V.A.C.S. Art. 6252-32, Sec. 5.)
 485-21             CHAPTER 2058.  RECOGNITION OF FEDERAL CENSUS
 485-22  Sec. 2058.001.  GOVERNMENTAL RECOGNITION OF AND ACTION
 485-23                    ON FEDERAL CENSUS
 485-24  Sec. 2058.002.  EXCEPTIONS
 485-25             CHAPTER 2058.  RECOGNITION OF FEDERAL CENSUS
 485-26        Sec. 2058.001.  GOVERNMENTAL RECOGNITION OF AND ACTION ON
 485-27  FEDERAL CENSUS.  (a)  A governmental entity may not recognize or
  486-1  act on a report or publication, in any form, of a federal census,
  486-2  in whole or in part, before September 1 of the year after the
  486-3  calendar year during which the census was taken.
  486-4        (b)  A governmental entity shall recognize and act on a
  486-5  published report or count relating to a federal census and released
  486-6  by the director of the Bureau of the Census of the United States
  486-7  Department of Commerce:
  486-8              (1)  on September 1 of the year after the calendar year
  486-9  during which the federal census was taken if the report or count is
 486-10  published on or before that date; or
 486-11              (2)  on the date of its publication if the report or
 486-12  count is published after September 1 of the year after the calendar
 486-13  year during which the federal census was taken.
 486-14        (c)  In this section, "governmental entity" means the state
 486-15  or an agency or political subdivision of the state.  (V.A.C.S. Art.
 486-16  29d, Secs. 1(a) (part), 2.)
 486-17        Sec. 2058.002.  EXCEPTIONS.  (a)  The legislature or the
 486-18  Legislative Redistricting Board under Article III, Section 28, of
 486-19  the Texas Constitution may officially recognize or act on a federal
 486-20  census before September 1 of the year after the calendar year
 486-21  during which the census was taken.
 486-22        (b)  A political subdivision governed by a body elected from
 486-23  single-member districts may recognize and act on tabulations of
 486-24  population of a federal census, for redistricting purposes, on or
 486-25  after the date the governor receives a report of the basic
 486-26  tabulations of population from the secretary of commerce under 13
 486-27  U.S.C. Section 141(c).  This subsection does not apply to a
  487-1  political subdivision that was not subject to a statute requiring
  487-2  certain political subdivisions, classified by population, to elect
  487-3  their governing bodies from single-member districts under the
  487-4  preceding federal census.  (V.A.C.S. Art. 29d, Secs. 1(a) (part),
  487-5  (b).)
  487-6              (Chapters 2059-2100 reserved for expansion)
  487-7           SUBTITLE C.  STATE ACCOUNTING, FISCAL MANAGEMENT,
  487-8                           AND PRODUCTIVITY
  487-9                 CHAPTER 2101.  ACCOUNTING PROCEDURES
 487-10                   SUBCHAPTER A.  GENERAL PROVISIONS
 487-11  Sec. 2101.001.  DEFINITION
 487-12          (Sections 2101.002-2101.010 reserved for expansion)
 487-13                  SUBCHAPTER B.  FINANCIAL REPORTING
 487-14  Sec. 2101.011.  FINANCIAL INFORMATION REQUIRED OF STATE
 487-15                    AGENCIES ("100-DAY REPORTS")
 487-16  Sec. 2101.012.  UNIFORM ACCOUNTING AND REPORTING
 487-17                    PROCEDURES
 487-18  Sec. 2101.013.  REVIEW OF PROPOSED PROCEDURES
 487-19  Sec. 2101.014.  DUTIES OF STATE AUDITOR
 487-20          (Sections 2101.015-2101.030 reserved for expansion)
 487-21              SUBCHAPTER C.  UNIFORM STATEWIDE ACCOUNTING
 487-22  Sec. 2101.031.  UNIFORM STATEWIDE ACCOUNTING PROJECT
 487-23  Sec. 2101.032.  PROJECT ADVISORY COMMITTEE
 487-24  Sec. 2101.033.  PROJECT DIRECTOR
 487-25  Sec. 2101.034.  PROJECT SUPPORT; RECOVERY OF COSTS
 487-26  Sec. 2101.035.  ADMINISTRATION OF USAS
 487-27  Sec. 2101.036.  STATE AGENCY INTERNAL ACCOUNTING SYSTEMS
  488-1  Sec. 2101.037.  STATE AGENCY COOPERATION
  488-2  Sec. 2101.038.  DUTIES OF STATE AUDITOR
  488-3  Sec. 2101.039.  CONTRACTS; EXEMPTION
  488-4           SUBTITLE C.  STATE ACCOUNTING, FISCAL MANAGEMENT,
  488-5                           AND PRODUCTIVITY
  488-6                 CHAPTER 2101.  ACCOUNTING PROCEDURES
  488-7                   SUBCHAPTER A.  GENERAL PROVISIONS
  488-8        Sec. 2101.001.  DEFINITION.  In this chapter, "state agency"
  488-9  has the meaning assigned by Section 403.013.  (V.A.C.S. Arts.
 488-10  4345a(e) (part); 4348e, Sec. 1(4); 4348f, Sec. 2(5).)
 488-11          (Sections 2101.002-2101.010 reserved for expansion)
 488-12                  SUBCHAPTER B.  FINANCIAL REPORTING
 488-13        Sec. 2101.011.  FINANCIAL INFORMATION REQUIRED OF STATE
 488-14  AGENCIES ("100-DAY REPORTS").  (a)  A state agency shall submit the
 488-15  financial information requested by the comptroller, including
 488-16  information about state funds held outside the state treasury, to:
 488-17              (1)  the governor;
 488-18              (2)  the comptroller;
 488-19              (3)  the state treasurer;
 488-20              (4)  the state auditor; and
 488-21              (5)  the Legislative Budget Board.
 488-22        (b)  A state agency other than a university system or
 488-23  institution of higher education, as defined by Section 61.003,
 488-24  Education Code, shall submit the information to the listed
 488-25  officials not later than December 9 of each year.   A university
 488-26  system or institution of higher education shall submit the
 488-27  information to the listed officials not later than the following
  489-1  January 1.
  489-2        (c)  A state agency is not required to submit the information
  489-3  if the comptroller determines the agency is not a component unit of
  489-4  state government for purposes of this subchapter.  (V.A.C.S. Arts.
  489-5  4345a(b), (e) (part).)
  489-6        Sec. 2101.012.  UNIFORM ACCOUNTING AND REPORTING PROCEDURES.
  489-7  (a)  The comptroller shall prescribe uniform accounting and
  489-8  financial reporting procedures that each state agency shall use in
  489-9  the preparation of the information requested under Section
 489-10  2101.011.
 489-11        (b)  The procedures must:
 489-12              (1)  comply with generally accepted accounting
 489-13  principles as established by the Governmental Accounting Standards
 489-14  Board and the American Institute of Certified Public Accountants or
 489-15  their successors;
 489-16              (2)  include the requirements for compliance with the
 489-17  federal Single Audit Act of 1984 and Office of Management and
 489-18  Budget Circular A-128 and any subsequent changes or amendments that
 489-19  will fulfill the audit requirements for a statewide single audit;
 489-20  and
 489-21              (3)  to provide for maximum consistency with the
 489-22  national reporting system for higher education, incorporate insofar
 489-23  as possible the provisions of the financial accounting and
 489-24  reporting manual published by the National Association of College
 489-25  and University Business Officers.
 489-26        (c)  The accounts of the institutions shall be maintained and
 489-27  audited in accordance with the approved reporting system.
  490-1  (V.A.C.S. Art. 4345a(a).)
  490-2        Sec. 2101.013.  REVIEW OF PROPOSED PROCEDURES.  (a)  Before
  490-3  adopting or changing the accounting and financial reporting
  490-4  procedures, the comptroller shall submit the proposed procedures to
  490-5  the state auditor for review and comment.
  490-6        (b)  In adopting or changing procedures, the comptroller
  490-7  shall consider any comments of the state auditor.  (V.A.C.S. Art.
  490-8  4345a(c).)
  490-9        Sec. 2101.014.  DUTIES OF STATE AUDITOR.  The state auditor
 490-10  shall ensure that the accounting and financial reporting procedures
 490-11  of each state agency conform to the procedures adopted under this
 490-12  subchapter.  (V.A.C.S. Art. 4345a(d).)
 490-13          (Sections 2101.015-2101.030 reserved for expansion)
 490-14              SUBCHAPTER C.  UNIFORM STATEWIDE ACCOUNTING
 490-15        Sec. 2101.031.  UNIFORM STATEWIDE ACCOUNTING PROJECT.  (a)
 490-16  The uniform statewide accounting project is in the comptroller's
 490-17  office.
 490-18        (b)  The project includes each component of the uniform
 490-19  statewide accounting system as designed in accordance with Chapter
 490-20  852, Acts of the 70th Legislature, Regular Session, 1987, as
 490-21  defined by Section 1, Chapter 781, Acts of the 71st Legislature,
 490-22  Regular Session, 1989, and as developed or revised by the project
 490-23  advisory committee, including:
 490-24              (1)  the uniform statewide accounting system (USAS) and
 490-25  related subsystems;
 490-26              (2)  the uniform statewide payroll system (USPS);
 490-27              (3)  the human resource information system (HRIS);
  491-1              (4)  the budget execution and monitoring system
  491-2  (BEAMS); and
  491-3              (5)  the statewide telecommunication network system.
  491-4  (V.A.C.S.  Art. 4348e, Sec. 1(5); Art. 4348f, Secs. 2(6), 3.)
  491-5        Sec. 2101.032.  PROJECT ADVISORY COMMITTEE.  (a)  The project
  491-6  advisory committee shall review and make recommendations to the
  491-7  project director about matters related to the project.
  491-8        (b)  The committee is composed of:
  491-9              (1)  the comptroller;
 491-10              (2)  the governor;
 491-11              (3)  the lieutenant governor;
 491-12              (4)  the speaker of the house of representatives;
 491-13              (5)  the state treasurer;
 491-14              (6)  the executive director of the Department of
 491-15  Information Resources;
 491-16              (7)  the state auditor; and
 491-17              (8)  eight appointees of the governor, including:
 491-18                    (A)  an employee of the Legislative Budget Board;
 491-19  and
 491-20                    (B)  one individual each with experience in the
 491-21  following areas:  education, natural resources, criminal justice,
 491-22  human services, business regulation, and employee benefits.
 491-23        (c)  The comptroller is presiding officer of the committee.
 491-24        (d)  The committee shall meet monthly or at the call of the
 491-25  presiding officer.
 491-26        (e)  The governor, lieutenant governor, speaker of the house
 491-27  of representatives, and comptroller may designate another
  492-1  individual to serve in the member's place on the committee.  The
  492-2  designee of the governor must be an employee of the governor's
  492-3  office, the designee of the lieutenant governor must be a member of
  492-4  the senate, the designee of the speaker must be a member of the
  492-5  house of representatives, and the designee of the comptroller must
  492-6  be an employee of the comptroller's office.
  492-7        (f)  A member of the committee is entitled to reimbursement
  492-8  for expenses as provided by law.  (V.A.C.S. Art. 4348f, Sec. 4.)
  492-9        Sec. 2101.033.  PROJECT DIRECTOR.  (a)  The comptroller shall
 492-10  appoint a project director to administer the project.
 492-11        (b)  The project director reports directly to the comptroller
 492-12  or chief deputy comptroller.
 492-13        (c)  To be appointed project director, an individual must be
 492-14  qualified by training and experience to perform the duties of the
 492-15  position.
 492-16        (d)  The project director shall:
 492-17              (1)  administer the project as provided by this
 492-18  subchapter;
 492-19              (2)  employ and remove project staff;
 492-20              (3)  administer all money entrusted to the project;
 492-21              (4)  obtain necessary office space, equipment, and
 492-22  supplies for the project; and
 492-23              (5)  contract for goods and services necessary to carry
 492-24  out this subchapter.  (V.A.C.S. Arts. 4348e, Sec. 3(e) (part);
 492-25  4348f, Secs. 5, 6(a).)
 492-26        Sec. 2101.034.  PROJECT SUPPORT; RECOVERY OF COSTS.  (a)  The
 492-27  comptroller shall provide support services for the project,
  493-1  including accounting, purchasing, and personnel services.  The cost
  493-2  of the services shall be paid from money appropriated to the
  493-3  comptroller.
  493-4        (b)  The comptroller may recover from a state agency the cost
  493-5  of implementation or use of any component of the project by the
  493-6  agency.  (V.A.C.S. Art. 4348f, Sec. 8.)
  493-7        Sec. 2101.035.  ADMINISTRATION OF USAS.  (a)  The comptroller
  493-8  is responsible for the administration, maintenance, and
  493-9  modification of the uniform statewide accounting system and shall
 493-10  adopt rules for the effective operation of the system.
 493-11        (b)  The comptroller shall cooperate and consult with the
 493-12  project advisory committee during the implementation of the uniform
 493-13  statewide accounting system.
 493-14        (c)  The comptroller shall implement the uniform statewide
 493-15  accounting system in accordance with generally accepted accounting
 493-16  principles, including the guidelines of the National Association of
 493-17  College and University Business Officers.
 493-18        (d)  The comptroller shall ensure that the system encompasses
 493-19  each state agency.  The comptroller may, after consulting with the
 493-20  project advisory committee, exclude any state agency from the
 493-21  centralized computation function of the statewide payroll component
 493-22  of the system.  (V.A.C.S. Art. 4348e, Secs. 1(3), 3(b), (d), (g),
 493-23  (h).)
 493-24        Sec. 2101.036.  STATE AGENCY INTERNAL ACCOUNTING SYSTEMS.
 493-25  (a)  The comptroller by rule may require state agencies to modify,
 493-26  delay, or stop the implementation of individual accounting and
 493-27  payroll systems so that those systems are compatible with the
  494-1  uniform statewide accounting system.
  494-2        (b)  The comptroller may require a state agency to replace
  494-3  its internal accounting and payroll system with project components
  494-4  to provide uniformity in internal accounting.
  494-5        (c)  The expenditure of state funds for the establishment,
  494-6  modification, or maintenance of an individual accounting or payroll
  494-7  system must be in accordance with any rules regarding the
  494-8  development, implementation, or use of the uniform statewide
  494-9  accounting system.  (V.A.C.S. Arts. 4348e, Sec. 3(c); 4348f, Sec. 7
 494-10  (part).)
 494-11        Sec. 2101.037.  STATE AGENCY COOPERATION.  (a)  A state
 494-12  agency shall make available to the project director all records of
 494-13  the agency for purposes of developing and implementing the project.
 494-14        (b)  To ensure continuous reporting of comprehensive
 494-15  financial management information, including information on
 494-16  encumbrances and performance and workload measures, the comptroller
 494-17  shall require each state agency to report the necessary information
 494-18  to the project director on time.  The reports of each agency must
 494-19  comply with the comptroller's rules and procedures about content
 494-20  and frequency.  (V.A.C.S. Arts. 4348e, Secs. 1(6), 3(f); 4348f,
 494-21  Sec. 7 (part).)
 494-22        Sec. 2101.038.  DUTIES OF STATE AUDITOR.  The state auditor,
 494-23  when reviewing the operation of a state agency, shall audit for
 494-24  compliance with the uniform statewide accounting system, the
 494-25  comptroller's rules, and the Legislative Budget Board's performance
 494-26  and workload measures.  The state auditor shall notify the project
 494-27  advisory committee, the comptroller, the governor, and the
  495-1  Legislative Budget Board as soon as practicable when a state agency
  495-2  is not in compliance.  (V.A.C.S. Art. 4348e, Sec. 4.)
  495-3        Sec. 2101.039.  CONTRACTS; EXEMPTION.  (a)  Contracts made
  495-4  under this subchapter are not subject to:
  495-5              (1)  the State Purchasing and General Services Act
  495-6  (Article 601b, Vernon's Texas Civil Statutes);
  495-7              (2)  Chapter 2254; or
  495-8              (3)  Chapter 2054.
  495-9        (b)  The project director must submit all proposed contracts
 495-10  for professional or consulting services and all proposed purchases
 495-11  of computer equipment or software to the project advisory committee
 495-12  for review and recommendation before procurement.  (V.A.C.S.
 495-13  Arts. 4348e, Sec. 3(e) (part); 4348f, Secs. 6(b), (c).)
 495-14                   CHAPTER 2102.  INTERNAL AUDITING
 495-15  Sec. 2102.001.  SHORT TITLE
 495-16  Sec. 2102.002.  PURPOSE
 495-17  Sec. 2102.003.  DEFINITIONS
 495-18  Sec. 2102.004.  APPLICABILITY
 495-19  Sec. 2102.005.  INTERNAL AUDITING REQUIRED
 495-20  Sec. 2102.006.  INTERNAL AUDITOR; STAFF
 495-21  Sec. 2102.007.  DUTIES OF INTERNAL AUDITOR
 495-22  Sec. 2102.008.  APPROVAL OF AUDIT PLAN AND AUDIT REPORT
 495-23  Sec. 2102.009.  ANNUAL REPORT
 495-24  Sec. 2102.010.  CONSULTATIONS
 495-25  Sec. 2102.011.  INTERNAL AUDIT STANDARDS
 495-26  Sec. 2102.012.  PROFESSIONAL DEVELOPMENT
 495-27                   CHAPTER 2102.  INTERNAL AUDITING
  496-1        Sec. 2102.001.  SHORT TITLE.  This chapter may be cited as
  496-2  the Texas Internal Auditing Act.  (V.A.C.S. Art.  6252-5d, Sec. 1.)
  496-3        Sec. 2102.002.  PURPOSE.  The purpose of this chapter is to
  496-4  establish guidelines for a program of internal auditing to assist
  496-5  agency administrators by furnishing independent analyses,
  496-6  appraisals, and recommendations about the adequacy and
  496-7  effectiveness of a state agency's systems of internal control
  496-8  policies and procedures and the quality of performance in carrying
  496-9  out assigned responsibilities.  (V.A.C.S. Art. 6252-5d, Sec. 2.)
 496-10        Sec. 2102.003.  DEFINITIONS.  In this chapter:
 496-11              (1)  "Administrator" means the executive head of a
 496-12  state agency.
 496-13              (2)  "Audit" means:
 496-14                    (A)  a financial audit described by Section
 496-15  321.0131;
 496-16                    (B)  a compliance audit described by Section
 496-17  321.0132;
 496-18                    (C)  an economy and efficiency audit described by
 496-19  Section 321.0133;
 496-20                    (D)  an effectiveness audit described by Section
 496-21  321.0134; or
 496-22                    (E)  an investigation described by Section
 496-23  321.0136.
 496-24              (3)  "State agency" includes a department, board,
 496-25  bureau, institution, commission, or other agency of the state.
 496-26  (V.A.C.S. Art. 6252-5d, Sec. 3 (part).)
 496-27        Sec. 2102.004.  APPLICABILITY.  This chapter applies only to
  497-1  a state agency that:
  497-2              (1)  has an operating budget exceeding $10 million
  497-3  annually;
  497-4              (2)  has a staff of more than 300 employees; or
  497-5              (3)  receives and processes cash items in excess of $10
  497-6  million annually.  (V.A.C.S. Art. 6252-5d, Sec. 3 (part).)
  497-7        Sec. 2102.005.  INTERNAL AUDITING REQUIRED.  A state agency
  497-8  shall conduct a full-time program of internal auditing that
  497-9  includes:
 497-10              (1)  an annual audit plan that is prepared using risk
 497-11  assessment techniques and that identifies the individual audits to
 497-12  be conducted during the year; and
 497-13              (2)  periodic audits of the agency's major systems and
 497-14  controls, including:
 497-15                    (A)  accounting systems and controls;
 497-16                    (B)  administrative systems and controls; and
 497-17                    (C)  electronic data processing systems and
 497-18  controls.  (V.A.C.S. Art.  6252-5d, Sec. 4.)
 497-19        Sec. 2102.006.  INTERNAL AUDITOR; STAFF.  (a)  The governing
 497-20  board of a state agency or its designee, or the administrator of a
 497-21  state agency without a governing board, shall appoint an internal
 497-22  auditor.
 497-23        (b)  An internal auditor must:
 497-24              (1)  be a certified public accountant or a certified
 497-25  internal auditor; and
 497-26              (2)  have at least three years of auditing experience.
 497-27        (c)  The state agency shall employ additional professional
  498-1  and support staff the administrator determines necessary to
  498-2  implement an effective program of internal auditing.  (V.A.C.S.
  498-3  Art. 6252-5d, Sec. 5.)
  498-4        Sec. 2102.007.  DUTIES OF INTERNAL AUDITOR.  (a)  The
  498-5  internal auditor shall:
  498-6              (1)  report directly to the state agency's governing
  498-7  board;
  498-8              (2)  develop an annual audit plan;
  498-9              (3)  conduct audits as specified in the audit plan and
 498-10  document deviations;
 498-11              (4)  prepare audit reports;
 498-12              (5)  conduct quality assurance reviews in accordance
 498-13  with professional standards and periodically take part in a
 498-14  comprehensive external peer review; and
 498-15              (6)  conduct economy and efficiency audits and program
 498-16  results audits as directed by the state agency's governing board.
 498-17        (b)  The program of internal auditing conducted by a state
 498-18  agency must provide for the auditor to:
 498-19              (1)  have access to the administrator; and
 498-20              (2)  be free of all operational and management
 498-21  responsibilities that would impair the auditor's ability to review
 498-22  independently all aspects of the state agency's operation.
 498-23  (V.A.C.S. Art. 6252-5d, Sec. 6 (part).)
 498-24        Sec. 2102.008.  APPROVAL OF AUDIT PLAN AND AUDIT REPORT.  The
 498-25  annual audit plan developed by the internal auditor must be
 498-26  approved by the state agency's governing board or its designee, or
 498-27  by the administrator of a state agency without a governing board.
  499-1  Audit reports must be reviewed by the state agency's governing
  499-2  board and the administrator.  (V.A.C.S. Art.  6252-5d, Sec. 6
  499-3  (part).)
  499-4        Sec. 2102.009.  ANNUAL REPORT.  (a)  The internal auditor
  499-5  shall prepare an annual report and submit the report before
  499-6  November 1 of each year to the governor, the Legislative Budget
  499-7  Board, the Sunset Advisory Commission, the state auditor, the state
  499-8  agency's governing board, and the administrator.
  499-9        (b)  The report must contain:
 499-10              (1)  a copy of the annual audit plan;
 499-11              (2)  a list of audits completed;
 499-12              (3)  an explanation of any deviation from the approved
 499-13  annual audit plan;
 499-14              (4)  a narrative description of the most significant
 499-15  findings and recommendations for each audit;
 499-16              (5)  a narrative description of the management actions
 499-17  taken in response to the audit findings and recommendations;
 499-18              (6)  a table listing the auditor's audit
 499-19  recommendations and the five-year fiscal impact for each
 499-20  recommendation;
 499-21              (7)  a table of the audit recommendations from the
 499-22  previous fiscal year's report and an explanation of the status of
 499-23  each recommendation; and
 499-24              (8)  a statement of the last date on which an external
 499-25  peer review of the agency's internal audit program was conducted.
 499-26        (c)  Each audit recommendation must show whether:
 499-27              (1)  the recommendation has been implemented;
  500-1              (2)  the recommendation is in the process of
  500-2  implementation;
  500-3              (3)  action on implementation of the recommendation has
  500-4  been delayed; or
  500-5              (4)  the agency does not intend to take action on the
  500-6  recommendation.
  500-7        (d)  The report must emphasize the findings in important
  500-8  areas that are difficult to quantify, including weaknesses in
  500-9  management controls or quality of services.  (V.A.C.S.  Art.
 500-10  6252-5d, Sec. 6A.)
 500-11        Sec. 2102.010.  CONSULTATIONS.  An internal auditor may
 500-12  consult the state agency's governing board, the governor's office,
 500-13  the state auditor, and legislative agencies or committees about
 500-14  matters affecting duties or responsibilities under this chapter.
 500-15  (V.A.C.S.  Art. 6252-5d, Sec. 7.)
 500-16        Sec. 2102.011.  INTERNAL AUDIT STANDARDS.  The internal audit
 500-17  program shall conform to the Standards for the Professional
 500-18  Practice of Internal Auditing, generally accepted governmental
 500-19  auditing standards, the Certified Internal Auditor Code of
 500-20  Professional Ethics, and the Statement of Responsibilities of
 500-21  Internal Auditing of the Institute of Internal Auditors.  (V.A.C.S.
 500-22  Art. 6252-5d, Sec. 8.)
 500-23        Sec. 2102.012.  PROFESSIONAL DEVELOPMENT.  (a)  The state
 500-24  auditor shall make available and shall coordinate a program of
 500-25  training and technical assistance to ensure that state agency
 500-26  internal auditors have access to current information about internal
 500-27  audit techniques, policies, and procedures and to provide general
  501-1  technical and audit assistance to agency internal auditors on
  501-2  request.
  501-3        (b)  The state auditor is entitled to reimbursement for costs
  501-4  associated with providing the services under the terms of
  501-5  interagency cooperation contracts negotiated between the state
  501-6  auditor and each agency.  The costs may not exceed those allowed by
  501-7  the General Appropriations Act.  (V.A.C.S.  Art. 6252-5d, Sec. 9.)
  501-8             CHAPTER 2103.  EXPENDITURES BY STATE AGENCIES
  501-9                   SUBCHAPTER A.  GENERAL PROVISIONS
 501-10  Sec. 2103.001.  DEFINITION
 501-11  Sec. 2103.002.  APPLICABILITY OF CHAPTER TO APPROPRIATED
 501-12                    LOCAL FUND
 501-13  Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS
 501-14  Sec. 2103.004.  WARRANT DRAWN BY COMPTROLLER
 501-15          (Sections 2103.005-2103.030 reserved for expansion)
 501-16              SUBCHAPTER B.  APPROVAL  AND SUBMISSION OF
 501-17                     VOUCHERS BY ELECTRONIC MEANS
 501-18  Sec. 2103.031.  APPLICABILITY OF SUBCHAPTER
 501-19  Sec. 2103.032.  APPROVAL AND SUBMISSION OF VOUCHERS
 501-20          (Sections 2103.033-2103.060 reserved for expansion)
 501-21               SUBCHAPTER C.  APPROVAL AND SUBMISSION OF
 501-22                    VOUCHERS BY NONELECTRONIC MEANS
 501-23  Sec. 2103.061.  STATE AGENCY ADMINISTERED BY GOVERNING BODY
 501-24  Sec. 2103.062.  STATE AGENCY ADMINISTERED BY ELECTED OR
 501-25                    APPOINTED OFFICIAL
 501-26  Sec. 2103.063.  GENERAL SERVICES COMMISSION
 501-27  Sec. 2103.064.  TEXAS TRANSPORTATION COMMISSION
  502-1             CHAPTER 2103.  EXPENDITURES BY STATE AGENCIES
  502-2                   SUBCHAPTER A.  GENERAL PROVISIONS
  502-3        Sec. 2103.001.  DEFINITION.  In this chapter, "state agency"
  502-4  means a department, board, commission, committee, council, agency,
  502-5  office, or other entity in the executive, legislative, or judicial
  502-6  branch of state government, the jurisdiction of which is not
  502-7  limited to a geographical portion of this state.  The term includes
  502-8  an institution of higher education as defined by Section 61.003,
  502-9  Education Code, other than a public junior college.  (V.A.C.S.
 502-10  Art. 6252-31, Sec. 1 (part), as added by Acts 1991, 72nd Leg.,
 502-11  R.S., Ch. 641.)
 502-12        Sec. 2103.002.  APPLICABILITY OF CHAPTER TO APPROPRIATED
 502-13  LOCAL FUND.  (a)  This chapter does not apply to an expenditure
 502-14  from an appropriated local fund.
 502-15        (b)  This chapter applies to the reimbursement to a state
 502-16  agency for an expenditure from an appropriated local fund.
 502-17  (V.A.C.S. Art. 6252-31, Sec. 9, as added by Acts 1991, 72nd Leg.,
 502-18  R.S., Ch. 641.)
 502-19        Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS.
 502-20  A state agency may spend appropriated funds only by:
 502-21              (1)  a warrant drawn by the comptroller; or
 502-22              (2)  an electronic funds transfer from the comptroller.
 502-23  (V.A.C.S. Art. 6252-31, Secs. 2(a), (c) (part), as added by Acts
 502-24  1991, 72nd Leg., R.S., Ch. 641.)
 502-25        Sec. 2103.004.  WARRANT DRAWN BY COMPTROLLER.  The
 502-26  comptroller may not draw a warrant until:
 502-27              (1)  the state agency from whose appropriation the
  503-1  warrant is payable has submitted a voucher to the comptroller;
  503-2              (2)  the state agency has approved the voucher in
  503-3  accordance with this chapter; and
  503-4              (3)  the comptroller has audited and approved the
  503-5  voucher as required by law.  (V.A.C.S. Art. 6252-31, Sec. 2(b), as
  503-6  added by Acts 1991, 72nd Leg., R.S., Ch. 641.)
  503-7          (Sections 2103.005-2103.030 reserved for expansion)
  503-8               SUBCHAPTER B.  APPROVAL AND SUBMISSION OF
  503-9                     VOUCHERS BY ELECTRONIC MEANS
 503-10        Sec. 2103.031.  APPLICABILITY OF SUBCHAPTER.  This subchapter
 503-11  applies only to approval and submission of vouchers by electronic
 503-12  means.  (V.A.C.S. Art. 6252-31, Sec. 6(b) (part), as added by Acts
 503-13  1991, 72nd Leg., R.S., Ch. 641.)
 503-14        Sec. 2103.032.  APPROVAL AND SUBMISSION OF VOUCHERS.  (a)
 503-15  The comptroller by rule may establish a system for state agencies
 503-16  to submit and approve electronically vouchers if the comptroller
 503-17  determines that the system will facilitate the operation and
 503-18  administration of the uniform statewide accounting system.  The
 503-19  comptroller may establish an electronic method to approve a voucher
 503-20  submitted by a state agency and may establish an electronic system
 503-21  for the approval of vouchers by the General Services Commission.
 503-22        (b)  The degree of security for an electronic system must at
 503-23  least equal the degree of security for the nonelectronic approval
 503-24  of vouchers by state agencies under this chapter.
 503-25        (c)  A state agency must approve a voucher and submit the
 503-26  voucher to the comptroller to receive an electronic funds transfer.
 503-27  (V.A.C.S. Art. 6252-31, Secs. 2(c) (part), 6(a), (b) (part), (c),
  504-1  7(b), as added by Acts 1991, 72nd Leg., R.S., Ch. 641.)
  504-2          (Sections 2103.033-2103.060 reserved for expansion)
  504-3          SUBCHAPTER C.  APPROVAL AND SUBMISSION OF VOUCHERS
  504-4                        BY NONELECTRONIC MEANS
  504-5        Sec. 2103.061.  STATE AGENCY ADMINISTERED BY GOVERNING BODY.
  504-6  (a)  A state agency administered by a governing body may approve a
  504-7  voucher only in accordance with this section.
  504-8        (b)  A governing body may authorize its presiding officer or
  504-9  executive director to designate one or more officers or employees
 504-10  of the agency to approve vouchers of the agency.  The presiding
 504-11  officer shall notify the comptroller in writing that the governing
 504-12  body has made the authorization of the presiding officer or
 504-13  executive director before that officer may  make or revoke a
 504-14  designation.
 504-15        (c)  The presiding officer of the governing body may approve
 504-16  a voucher after submitting a signature card to the comptroller.
 504-17        (d)  An officer or employee of the state agency may approve
 504-18  the voucher after:
 504-19              (1)  the governing body of the agency has authorized
 504-20  the officer or employee to approve vouchers or the presiding
 504-21  officer or executive director authorized under Subsection (b) has
 504-22  designated the officer or employee to approve vouchers;
 504-23              (2)  the comptroller has received written notice from
 504-24  the presiding officer of the governing body  or the executive
 504-25  director, if authorized under Subsection (b), that the governing
 504-26  body or executive director has authorized the officer or employee
 504-27  to approve vouchers; and
  505-1              (3)  the comptroller has received a signature card from
  505-2  the officer or employee.
  505-3        (e)  The presiding officer or executive director authorized
  505-4  under Subsection (b) shall ensure that the comptroller is notified
  505-5  of the revocation of the authorization of an officer or employee to
  505-6  approve vouchers.  This notice shall be given within 10 days after
  505-7  the effective date of the revocation.
  505-8        (f)  In this section:
  505-9              (1)  "Executive director" means the individual who is
 505-10  the chief administrative officer of a state agency and who is not a
 505-11  member of the agency's governing body; and
 505-12              (2)  "Governing body" means a board, commission,
 505-13  committee, council, or other group of individuals that is
 505-14  collectively authorized by law to administer a state agency.
 505-15  (V.A.C.S. Art. 6252-31, Secs. 1 (part), 3, 5, as added by Acts
 505-16  1991, 72nd Leg., R.S., Ch. 641.)
 505-17        Sec. 2103.062.  STATE AGENCY ADMINISTERED BY ELECTED OR
 505-18  APPOINTED OFFICIAL.  (a)  A state agency administered by an elected
 505-19  or appointed state official may approve a voucher only in
 505-20  accordance with this section.
 505-21        (b)  The elected or appointed state official who is
 505-22  authorized by law to administer a state agency may authorize the
 505-23  chief deputy of the agency to designate one or more officers or
 505-24  employees of the agency to approve vouchers.
 505-25        (c)  The chief deputy may make or revoke a designation under
 505-26  this section after the comptroller has received written notice from
 505-27  the elected or appointed official of the authorization.
  506-1        (d)  The elected or appointed official may approve a voucher
  506-2  after submitting a signature card to the comptroller.
  506-3        (e)  An officer or employee of the state agency may approve a
  506-4  voucher after:
  506-5              (1)  the elected or appointed official has authorized
  506-6  the officer or employee to approve a voucher, or the elected or
  506-7  appointed official or the chief deputy under Subsection (b) or (c)
  506-8  has designated the officer or employee to approve vouchers;
  506-9              (2)  the comptroller has received written notice from
 506-10  the elected or appointed official or the chief deputy, if
 506-11  authorized under Subsection (b) or (c), that the official or chief
 506-12  deputy has authorized the officer or employee to approve vouchers;
 506-13  and
 506-14              (3)  the comptroller has received a signature card from
 506-15  the officer or employee.
 506-16        (f)  The elected or appointed official or the chief deputy
 506-17  authorized under Subsection (b) or (c) shall ensure that the
 506-18  comptroller is notified of the revocation of the authorization of
 506-19  an officer or employee to approve vouchers.   This notice shall be
 506-20  given within 10 days after the effective date of the revocation.
 506-21        (g)  In this section, "chief deputy" means the individual
 506-22  authorized by law to administer a state agency that is administered
 506-23  by an elected or appointed state official during the absence of the
 506-24  official or during the official's inability to act.  (V.A.C.S. Art.
 506-25  6252-31, Secs. 1 (part), 4, 5, as added by Acts 1991, 72nd Leg.,
 506-26  R.S., Ch. 641.)
 506-27        Sec. 2103.063.  GENERAL SERVICES COMMISSION.  (a)  Only the
  507-1  General Services Commission may approve a voucher sent by a state
  507-2  agency, along with related documentation, for approval by the
  507-3  commission unless the commission has designated one or more
  507-4  officers or employees of the commission to approve vouchers.
  507-5        (b)  The commission shall give to the comptroller:
  507-6              (1)  written notice of an officer or employee of the
  507-7  commission designated by the commission to approve a voucher; and
  507-8              (2)  the signature card from the designated individual.
  507-9  (V.A.C.S. Art.  6252-31, Secs. 5, 7(a), as added by Acts 1991, 72nd
 507-10  Leg., R.S., Ch. 641.)
 507-11        Sec. 2103.064.  TEXAS TRANSPORTATION COMMISSION.  (a)  The
 507-12  Texas Transportation Commission may delegate to one or more
 507-13  employees of the Texas Department of Transportation the authority
 507-14  to approve vouchers for expenditures from the state highway fund
 507-15  and the authority to approve and sign contracts and other
 507-16  documents.  These delegations of authority are limited to effect
 507-17  the order, policies, and work programs of the department.
 507-18        (b)  The Texas Transportation Commission may require a
 507-19  recipient of a delegation of authority to post a bond payable to
 507-20  the state in the amount the commission considers necessary.
 507-21        (c)  If the commission requires the posting of a bond, the
 507-22  bond must be conditioned on faithful performance.
 507-23        (d)  The commission shall pay the premium on all bonds from
 507-24  the state highway fund. (V.A.C.S. Art. 6252-31, Sec. 8, as added by
 507-25  Acts 1991, 72nd Leg., R.S., Ch. 641.)
 507-26              CHAPTER 2104.  CONSERVATORSHIP AS A RESULT
 507-27                        OF FISCAL MISMANAGEMENT
  508-1                   SUBCHAPTER A.  GENERAL PROVISIONS
  508-2  Sec. 2104.001.  DEFINITIONS
  508-3  Sec. 2104.002.  APPLICABILITY OF CHAPTER
  508-4          (Sections 2104.003-2104.010 reserved for expansion)
  508-5              SUBCHAPTER B.  STATE CONSERVATORSHIP BOARD
  508-6  Sec. 2104.011.  BOARD COMPOSITION; TERMS
  508-7  Sec. 2104.012.  PRESIDING OFFICER; MEETINGS
  508-8  Sec. 2104.013.  COMPENSATION; EXPENSES
  508-9  Sec. 2104.014.  RULES
 508-10  Sec. 2104.015.  ADMINISTRATIVE SERVICES
 508-11          (Sections 2104.016-2104.020 reserved for expansion)
 508-12           SUBCHAPTER C.  CONSERVATORSHIP OF STATE AGENCIES
 508-13  Sec. 2104.021.  MISMANAGEMENT FINDING; CONSERVATORSHIP ORDER
 508-14  Sec. 2104.022.  ASSUMPTION OF POLICY FUNCTIONS
 508-15  Sec. 2104.023.  BOARD CONSERVATORSHIP POWERS AND DUTIES
 508-16  Sec. 2104.024.  REPORT
 508-17  Sec. 2104.025.  DURATION OF CONSERVATORSHIP
 508-18          (Sections 2104.026-2104.030 reserved for expansion)
 508-19       SUBCHAPTER D.  CONSERVATORSHIP OF PUBLIC JUNIOR COLLEGES
 508-20  Sec. 2104.031.  MISMANAGEMENT FINDING; CONSERVATORSHIP ORDER
 508-21  Sec. 2104.032.  REPORTS
 508-22  Sec. 2104.033.  DURATION OF CONSERVATORSHIP
 508-23              CHAPTER 2104.  CONSERVATORSHIP AS A RESULT
 508-24                        OF FISCAL MISMANAGEMENT
 508-25                   SUBCHAPTER A.  GENERAL PROVISIONS
 508-26        Sec. 2104.001.  DEFINITIONS.  In this chapter:
 508-27              (1)  "Board" means the State Conservatorship Board.
  509-1              (2)  "Gross fiscal mismanagement" includes:
  509-2                    (A)  failure to keep adequate fiscal records;
  509-3                    (B)  failure to maintain proper control over
  509-4  assets;
  509-5                    (C)  failure to discharge fiscal obligations in a
  509-6  timely manner; and
  509-7                    (D)  misuse of state funds.
  509-8              (3)  "State agency" means a department, commission,
  509-9  board, office, or other agency, including a university system or an
 509-10  institution of higher education other than a public junior college,
 509-11  that:
 509-12                    (A)  is in the executive branch of state
 509-13  government;
 509-14                    (B)  is created by statute; and
 509-15                    (C)  does not have statutory geographical
 509-16  boundaries limited to a part of the state.
 509-17              (4)  "State fiscal management policies" means laws or
 509-18  rules relating to:
 509-19                    (A)  fiscal recordkeeping and reporting;
 509-20                    (B)  use or control of state property;
 509-21                    (C)  timely discharge of fiscal obligations; or
 509-22                    (D)  use of state funds.  (V.A.C.S. Art.
 509-23  4413(203), Sec. 1; New.)
 509-24        Sec. 2104.002.  APPLICABILITY OF CHAPTER.  This chapter does
 509-25  not apply to an agency that is under the direction of an elected
 509-26  officer, board, or commission.  (V.A.C.S. Art. 4413(203), Sec. 2.)
 509-27          (Sections 2104.003-2104.010 reserved for expansion)
  510-1              SUBCHAPTER B.  STATE CONSERVATORSHIP BOARD
  510-2        Sec. 2104.011.  BOARD COMPOSITION; TERMS.  (a)  The board is
  510-3  composed of three members appointed by the governor with the advice
  510-4  and consent of the senate.
  510-5        (b)  To be eligible for appointment to the board, a person
  510-6  must be qualified, by experience or education, in administration or
  510-7  fiscal management.
  510-8        (c)  A public officer is ineligible to serve on the board.
  510-9        (d)  Members serve staggered six-year terms with the term of
 510-10  one member expiring on January 31 of each odd-numbered year.
 510-11  (V.A.C.S. Art. 4413(203), Secs. 3(b), (c), (d).)
 510-12        Sec. 2104.012.  PRESIDING OFFICER; MEETINGS.  (a)  The
 510-13  governor shall designate a board member to serve as presiding
 510-14  officer for a two-year period expiring on January 31 of
 510-15  odd-numbered years.
 510-16        (b)  The board shall meet at the call of the presiding
 510-17  officer or as provided by board rule.  (V.A.C.S. Art. 4413(203),
 510-18  Secs. 4(b), (c).)
 510-19        Sec. 2104.013.  COMPENSATION; EXPENSES.  A board member may
 510-20  not receive compensation but is entitled to reimbursement for
 510-21  actual and necessary expenses incurred in the performance of
 510-22  official duties.  (V.A.C.S. Art. 4413(203), Sec. 5.)
 510-23        Sec. 2104.014.  RULES.  The board may adopt and enforce rules
 510-24  necessary to administer this chapter.  (V.A.C.S. Art. 4413(203),
 510-25  Sec. 11.)
 510-26        Sec. 2104.015.  ADMINISTRATIVE SERVICES.  (a)  The governor
 510-27  shall provide the board with administrative services.
  511-1        (b)  If necessary, the governor may use appropriations made
  511-2  under Section 403.075 to provide the administrative services.
  511-3  (V.A.C.S. Art. 4413(203), Sec.  6.)
  511-4          (Sections 2104.016-2104.020 reserved for expansion)
  511-5           SUBCHAPTER C.  CONSERVATORSHIP OF STATE AGENCIES
  511-6        Sec. 2104.021.  MISMANAGEMENT FINDING; CONSERVATORSHIP ORDER.
  511-7  (a)  The legislative audit committee shall notify the governor of
  511-8  the committee's finding that a condition of gross fiscal
  511-9  mismanagement exists in a state agency.
 511-10        (b)  After receipt of the notice, the governor by
 511-11  proclamation may order the board to act as conservator of the
 511-12  agency.  (V.A.C.S. Art. 4413(203), Sec. 7.)
 511-13        Sec. 2104.022.  ASSUMPTION OF POLICY FUNCTIONS.  The board,
 511-14  acting on an order of the governor under Section 2104.021, shall
 511-15  assume all the powers and duties of the officers responsible for
 511-16  policy direction of the state agency subject to the order, and
 511-17  those officers may not act unless authorized by the board.
 511-18  (V.A.C.S. Art. 4413(203), Sec. 8.)
 511-19        Sec. 2104.023.  BOARD CONSERVATORSHIP POWERS AND DUTIES.  (a)
 511-20  The board, acting as conservator of a state agency under this
 511-21  subchapter, shall ensure that the agency complies with state fiscal
 511-22  management policies.
 511-23        (b)  The board, acting as conservator of a state agency under
 511-24  this subchapter, may:
 511-25              (1)  terminate the employment of any employee whose
 511-26  conduct the board determines contributed to the condition that
 511-27  caused the conservatorship;
  512-1              (2)  employ personnel for the agency;
  512-2              (3)  change the agency's organization or structure as
  512-3  necessary to alleviate the conditions that caused the
  512-4  conservatorship; and
  512-5              (4)  contract with persons for management or
  512-6  administrative services necessary to effect the conservatorship.
  512-7        (c)  The board may delegate any part of its powers or duties
  512-8  as conservator other than its rulemaking authority to a person with
  512-9  whom it contracts under Subsection (b)(4).  (V.A.C.S. Art.
 512-10  4413(203), Sec. 9.)
 512-11        Sec. 2104.024.  REPORT.  (a)  The board shall report on a
 512-12  conservatorship under this subchapter to the governor and the
 512-13  legislative audit committee not later than the 60th day after the
 512-14  date the governor orders the conservatorship  and at the end of
 512-15  each subsequent 60-day period until the conservatorship is
 512-16  dissolved.
 512-17        (b)  The report must include a description of the measures
 512-18  taken to ensure that the state agency complies with state fiscal
 512-19  management policies and an estimate of the progress the board has
 512-20  made in attaining that goal.  (V.A.C.S.  Art. 4413(203), Sec. 10.)
 512-21        Sec. 2104.025.  DURATION OF CONSERVATORSHIP.  A
 512-22  conservatorship under this subchapter continues until the earlier
 512-23  of:
 512-24              (1)  the governor's issuing of a proclamation declaring
 512-25  that the condition of gross fiscal mismanagement in the state
 512-26  agency no longer exists and that the conservatorship is dissolved;
 512-27  or
  513-1              (2)  the legislative audit committee's finding and
  513-2  certifying to the governor that the condition of gross fiscal
  513-3  mismanagement in the agency no longer exists, in which case the
  513-4  conservatorship is dissolved.  (V.A.C.S. Art. 4413(203), Sec. 12.)
  513-5          (Sections 2104.026-2104.030 reserved for expansion)
  513-6       SUBCHAPTER D.  CONSERVATORSHIP OF PUBLIC JUNIOR COLLEGES
  513-7        Sec. 2104.031.  MISMANAGEMENT FINDING; CONSERVATORSHIP ORDER.
  513-8  (a)  On the governor's request, the Texas Higher Education
  513-9  Coordinating Board with the advice and assistance of the state
 513-10  auditor shall determine if a condition of gross fiscal
 513-11  mismanagement exists at a public junior college.
 513-12        (b)  If the coordinating board finds a condition of gross
 513-13  fiscal mismanagement of a public junior college, the governor by
 513-14  proclamation may order the board to act as conservator of the
 513-15  college.
 513-16        (c)  Except as otherwise provided by this subchapter, the
 513-17  board shall act as conservator of a public junior college in the
 513-18  manner provided by this chapter for conservatorship of state
 513-19  agencies by the board.  (V.A.C.S. Art. 4413(203), Sec. 2A(a).)
 513-20        Sec. 2104.032.  REPORTS.  The board shall file the reports
 513-21  relating to public junior colleges required by Section 2104.024
 513-22  with the Texas Higher Education Coordinating Board.  (V.A.C.S. Art.
 513-23  4413(203), Sec. 2A(b).)
 513-24        Sec. 2104.033.  DURATION OF CONSERVATORSHIP.  A
 513-25  conservatorship of a public junior college under this subchapter
 513-26  continues until the earlier of:
 513-27              (1)  the governor's issuing of a proclamation declaring
  514-1  that the condition of gross fiscal mismanagement no longer exists
  514-2  and that the conservatorship is dissolved; or
  514-3              (2)  the Texas Higher Education Coordinating Board's
  514-4  finding and certifying to the governor that the condition of gross
  514-5  fiscal mismanagement no longer exists, in which case the
  514-6  conservatorship is dissolved.  (V.A.C.S.  Art. 4413(203),
  514-7  Sec. 2A(c).)
  514-8             CHAPTER 2105.  ADMINISTRATION OF BLOCK GRANTS
  514-9                   SUBCHAPTER A.  GENERAL PROVISIONS
 514-10  Sec. 2105.001.  DEFINITIONS
 514-11  Sec. 2105.002.  COMBINATION OF PROGRAMS NOT INTENDED
 514-12                    TO REDUCE SERVICES
 514-13  Sec. 2105.003.  CHANGE IN FEDERAL LAW OR REGULATION
 514-14  Sec. 2105.004.  DISCRIMINATION PROHIBITED
 514-15  Sec. 2105.005.  PRIORITY TO POVERTY PROGRAMS
 514-16  Sec. 2105.006.  AGENCY AUDITS
 514-17  Sec. 2105.007.  PROVIDER AUDITS
 514-18  Sec. 2105.008.  UNIFORM MANAGEMENT
 514-19  Sec. 2105.009.  PRIMARY CARE BLOCK GRANT
 514-20          (Sections 2105.010-2105.050 reserved for expansion)
 514-21        SUBCHAPTER B.  DEVELOPMENT OF PLAN; PUBLIC INFORMATION
 514-22  Sec. 2105.051.  DEFINITION
 514-23  Sec. 2105.052.  CONTENTS OF PLAN
 514-24  Sec. 2105.053.  PUBLIC HEARINGS ON INTENDED USE OF FUNDS
 514-25  Sec. 2105.054.  NOTICE OF HEARING
 514-26  Sec. 2105.055.  PUBLIC COMMENTS
 514-27  Sec. 2105.056.  PUBLIC INFORMATION
  515-1  Sec. 2105.057.  CONSULTATION ACTIVITIES
  515-2  Sec. 2105.058.  PUBLIC HEARING BY CERTAIN PROVIDERS
  515-3  Sec. 2105.059.  AVAILABILITY OF RULES AND ELIGIBILITY
  515-4                    REQUIREMENTS
  515-5          (Sections 2105.060-2105.100 reserved for expansion)
  515-6                       SUBCHAPTER C.  COMPLAINTS
  515-7  Sec. 2105.101.  PUBLICATION OF PROCEDURES
  515-8  Sec. 2105.102.  INVESTIGATION
  515-9  Sec. 2105.103.  NOTICE TO PROVIDER; RESPONSE
 515-10  Sec. 2105.104.  USE OF COMPLAINTS; ANNUAL SUMMARY
 515-11          (Sections 2105.105-2105.150 reserved for expansion)
 515-12             SUBCHAPTER D.  DENIAL OF SERVICES OR BENEFITS
 515-13  Sec. 2105.151.  RIGHT TO REQUEST HEARING ON DENIAL OF SERVICES
 515-14                    OR BENEFITS
 515-15  Sec. 2105.152.  DEPARTMENT OF HUMAN SERVICES' PROCEDURES FOR
 515-16                    FAIR HEARING
 515-17  Sec. 2105.153.  HEARING ON DENIAL OF SERVICES OR BENEFITS BY
 515-18                    AGENCY
 515-19  Sec. 2105.154.  HEARING ON DENIAL OF SERVICES OR BENEFITS BY
 515-20                    PROVIDER
 515-21          (Sections 2105.155-2105.200 reserved for expansion)
 515-22            SUBCHAPTER E.  NONRENEWAL OR REDUCTION OF BLOCK
 515-23                   GRANT FUNDS OF SPECIFIC PROVIDER
 515-24  Sec. 2105.201.  APPLICATION OF SUBCHAPTER; EXCEPTION
 515-25  Sec. 2105.202.  RULES; CONSIDERATIONS
 515-26  Sec. 2105.203.  NOTICE TO PROVIDER OF REDUCTION
 515-27  Sec. 2105.204.  HEARING ON REDUCTION OF FUNDING
  516-1  Sec. 2105.205.  INTERIM CONTRACT PENDING HEARING
  516-2          (Sections 2105.206-2105.250 reserved for expansion)
  516-3             SUBCHAPTER F.  REDUCTION OF BLOCK GRANT FUNDS
  516-4                          FOR GEOGRAPHIC AREA
  516-5  Sec. 2105.251.  APPLICATION OF SUBCHAPTER; EXCEPTION
  516-6  Sec. 2105.252.  NOTICE TO PROVIDER
  516-7  Sec. 2105.253.  RULES; CONSIDERATIONS
  516-8          (Sections 2105.254-2105.300 reserved for expansion)
  516-9            SUBCHAPTER G.  TERMINATION OF BLOCK GRANT FUNDS
 516-10  Sec. 2105.301.  NOTICE TO PROVIDER
 516-11  Sec. 2105.302.  HEARING
 516-12          (Sections 2105.303-2105.350 reserved for expansion)
 516-13                    SUBCHAPTER H.  JUDICIAL REVIEW
 516-14  Sec. 2105.351.  JUDICIAL REVIEW
 516-15             CHAPTER 2105.  ADMINISTRATION OF BLOCK GRANTS
 516-16                   SUBCHAPTER A.  GENERAL PROVISIONS
 516-17        Sec. 2105.001.  DEFINITIONS.  In this chapter:
 516-18              (1)  "Agency" means the Texas Department of Human
 516-19  Services, the Texas Department of Health, the Texas Department of
 516-20  Housing and Community Affairs, the Central Education Agency, the
 516-21  Texas Department of Mental Health and Mental Retardation, or any
 516-22  other commission, board, or department designated to receive block
 516-23  grant funds.
 516-24              (2)  "Block grant" means a program resulting from the
 516-25  consolidation or transfer of separate federal grant programs,
 516-26  including federal categorical programs, so that the state
 516-27  determines the amounts to be allocated or the method of allocating
  517-1  the amounts to various agencies or programs from the combined
  517-2  amounts, including a program consolidated or transferred under the
  517-3  Omnibus Budget Reconciliation Act of 1981 (Pub. L. No. 97-35).
  517-4              (3)  "Program" means an activity designed to deliver
  517-5  services or benefits provided by state or federal law.
  517-6              (4)  "Provider" means a public or private organization
  517-7  that receives block grant funds or may be eligible to receive block
  517-8  grant funds to provide services or benefits to the public,
  517-9  including:
 517-10                    (A)  a local government unit;
 517-11                    (B)  a council of government;
 517-12                    (C)  a community action agency; or
 517-13                    (D)  a private new community developer or
 517-14  nonprofit community association in a community originally
 517-15  established as a new community development program under the Urban
 517-16  Growth and New Community Development Act of 1970 (42 U.S.C. Section
 517-17  4511 et seq.).
 517-18              (5)  "Recipient" means an individual or a class of
 517-19  individuals who receives services or benefits available through
 517-20  block grants.  (V.A.C.S. Art. 6252-13e, Secs. 2, 3(1), (2), (3),
 517-21  (5).)
 517-22        Sec. 2105.002.  COMBINATION OF PROGRAMS NOT INTENDED TO
 517-23  REDUCE SERVICES.  The process of combining categorical federal
 517-24  assistance programs into block grants should not have an overall
 517-25  effect of reducing the relative proportion of services and benefits
 517-26  made available to low-income individuals, elderly individuals,
 517-27  disabled individuals, and migrant and seasonal agricultural
  518-1  workers.  (V.A.C.S. Art. 6252-13e, Sec. 1(d).)
  518-2        Sec. 2105.003.  CHANGE IN FEDERAL LAW OR REGULATION.  If a
  518-3  change in a federal law or regulation does not provide for
  518-4  temporary waivers to allow compliance with state law and because of
  518-5  the change an agency or provider does not have sufficient time to
  518-6  comply with a procedure required by this chapter, the agency or
  518-7  provider may act in compliance with federal law and shall comply
  518-8  with procedures required by this chapter as soon as possible.
  518-9  (V.A.C.S. Art. 6252-13e, Sec. 15(a).)
 518-10        Sec. 2105.004.  DISCRIMINATION PROHIBITED.  An agency or
 518-11  provider may not use block grant funds in a manner that
 518-12  discriminates on the basis of race, color, national origin, sex, or
 518-13  religion.  (V.A.C.S. Art. 6252-13e, Sec. 16.)
 518-14        Sec. 2105.005.  PRIORITY TO POVERTY PROGRAMS.  (a)  An agency
 518-15  should give priority to programs that remedy the causes and cycle
 518-16  of poverty if:
 518-17              (1)  the alleviation of poverty is a purpose of the
 518-18  block grant; and
 518-19              (2)  the agency has discretion over the types of
 518-20  programs that may be funded with the block grant.
 518-21        (b)  In administering a block grant, an agency shall consult:
 518-22              (1)  low-income recipients;
 518-23              (2)  low-income intended recipients; and
 518-24              (3)  organizations representing low-income individuals.
 518-25        (c)  To the extent consistent with the purpose of the block
 518-26  grant, an agency by rule shall ensure that providers use block
 518-27  grant funds to the maximum benefit of low-income recipients and
  519-1  intended recipients.  (V.A.C.S. Art. 6252-13e, Sec. 14.)
  519-2        Sec. 2105.006.  AGENCY AUDITS.  (a)  An agency's expenditure
  519-3  of block grant funds is subject to audit by the state auditor in
  519-4  accordance with Chapter 321.
  519-5        (b)  The state auditor immediately shall transmit a copy of
  519-6  an audit of an agency to the governor.  Not later than the 30th day
  519-7  after the date on which an audit of an agency is completed, the
  519-8  governor shall transmit a copy of the audit to the appropriate
  519-9  federal authority.  (V.A.C.S. Art. 6252-13e, Secs. 12(a), (c),
 519-10  (d).)
 519-11        Sec. 2105.007.  PROVIDER AUDITS.  A provider that receives
 519-12  block grant funds from an agency shall provide the agency with
 519-13  evidence that an annual audit of the provider has been performed.
 519-14  (V.A.C.S. Art. 6252-13e, Sec. 12(b).)
 519-15        Sec. 2105.008.  UNIFORM MANAGEMENT.  Chapter 783 applies to
 519-16  agencies and providers for the purpose of block grant
 519-17  administration.  (V.A.C.S. Art. 6252-13e, Sec. 13.)
 519-18        Sec. 2105.009.  PRIMARY CARE BLOCK GRANT.  (a)  The Texas
 519-19  Department of Health shall administer the primary care block grant
 519-20  if the department satisfies federal requirements relating to the
 519-21  designation of an agency to administer the grant.
 519-22        (b)  In administering the primary care block grant, the
 519-23  department may:
 519-24              (1)  receive the primary care block grant funds on
 519-25  behalf of the state;
 519-26              (2)  spend primary care block grant funds and state
 519-27  funds specifically appropriated by the legislature to match funds
  520-1  received under a primary care block grant;
  520-2              (3)  make grants to, advance funds to, contract with,
  520-3  and take other actions through community health centers that meet
  520-4  the requirements of 42 U.S.C. Section 254c(e)(3) to provide for the
  520-5  delivery of primary and supplemental health services to medically
  520-6  underserved populations of the state;
  520-7              (4)  adopt necessary rules; and
  520-8              (5)  perform other activities necessary to administer
  520-9  the primary care block grant.
 520-10        (c)  In this section:
 520-11              (1)  "Community health center" has the meaning assigned
 520-12  by 42 U.S.C.  Section 254c(a).
 520-13              (2)  "Medically underserved population," "primary
 520-14  health services," and "supplemental health services" have the
 520-15  meanings assigned by 42 U.S.C. Section 254c(b).  (V.A.C.S. Art.
 520-16  6252-13e, Sec. 17.)
 520-17          (Sections 2105.010-2105.050 reserved for expansion)
 520-18        SUBCHAPTER B.  DEVELOPMENT OF PLAN; PUBLIC INFORMATION
 520-19        Sec. 2105.051.  DEFINITION.  In this subchapter, "plan" means
 520-20  a report submitted to the federal government that contains a
 520-21  statement of activities and programs to show the intended and
 520-22  actual use of block grant funds.  (V.A.C.S. Art. 6252-13e, Sec.
 520-23  3(4).)
 520-24        Sec. 2105.052.  CONTENTS OF PLAN.  A plan must describe:
 520-25              (1)  major changes in policy for each program;
 520-26              (2)  the extent of anticipated reductions or increases
 520-27  in services under the block grant; and
  521-1              (3)  the nature of any fees a recipient must pay to
  521-2  receive services funded under the block grant.  (V.A.C.S. Art.
  521-3  6252-13e, Sec. 4(g).)
  521-4        Sec. 2105.053.  PUBLIC HEARINGS ON INTENDED USE OF FUNDS.
  521-5  (a)  In developing a request for appropriations before each regular
  521-6  legislative session, an agency shall hold public hearings in four
  521-7  locations in different areas of the state to solicit public comment
  521-8  on the intended use of block grant funds.
  521-9        (b)  An agency must conduct at least two of the hearings
 521-10  required by this section after normal agency working hours.
 521-11        (c)  An agency may hold a hearing required by this section in
 521-12  conjunction with:
 521-13              (1)  another agency without regard to whether the block
 521-14  grants administered by the agencies are for different purposes; or
 521-15              (2)  the governor's office.  (V.A.C.S. Art. 6252-13e,
 521-16  Secs. 4(a), (b), (i).)
 521-17        Sec. 2105.054.  NOTICE OF HEARING.  (a)  An agency shall:
 521-18              (1)  provide notice of a public hearing regarding the
 521-19  plan for a block grant not later than the 15th day before the date
 521-20  of the hearing;
 521-21              (2)  post the notice in a conspicuous place in each
 521-22  agency office;
 521-23              (3)  include in the notice a clear and concise
 521-24  description of the matters to be considered and a statement of the
 521-25  manner in which written comments may be submitted;
 521-26              (4)  maintain lists of interested persons;
 521-27              (5)  mail notices of hearings to interested persons;
  522-1  and
  522-2              (6)  conduct other activities necessary to promote
  522-3  public participation in the public hearing.
  522-4        (b)  A notice prepared under this section must be printed in
  522-5  English and Spanish.  (V.A.C.S. Art. 6252-13e, Secs. 4(c), (d),
  522-6  (j).)
  522-7        Sec. 2105.055.  PUBLIC COMMENTS.  (a)  An agency shall
  522-8  summarize, in a fair manner, the types of public comments received
  522-9  by the agency during public hearings regarding a plan.
 522-10        (b)  If an agency's final decision does not reflect the
 522-11  recommendations of particular classes of public comments, the
 522-12  agency shall provide a reasoned response justifying the agency's
 522-13  decision as to each comment.
 522-14        (c)  An agency shall distribute the summary of public
 522-15  comments and the responses to the comments as part of the plan and
 522-16  shall:
 522-17              (1)  have the summary and response published in the
 522-18  Texas Register; and
 522-19              (2)  make the summary and response available to the
 522-20  public.  (V.A.C.S. Art. 6252-13e, Secs. 4(e), (f), (h).)
 522-21        Sec. 2105.056.  PUBLIC INFORMATION.  (a)  An agency shall
 522-22  publish information for the public:
 522-23              (1)  describing the manner in which the agency's staff
 522-24  develops preliminary options for the use of block grants; and
 522-25              (2)  stating the period in which the preliminary work
 522-26  is usually performed.
 522-27        (b)  An agency shall undertake public information activities
  523-1  necessary to ensure that recipients and intended recipients are
  523-2  informed of the availability of services and benefits.
  523-3        (c)  Information published under this section must be printed
  523-4  in English and Spanish.  (V.A.C.S. Art. 6252-13e, Secs. 5(a), (h),
  523-5  (j).)
  523-6        Sec. 2105.057.  CONSULTATION ACTIVITIES.  (a)  An agency
  523-7  shall consult interested members of the public to assist the agency
  523-8  in developing preliminary staff recommendations on the use of block
  523-9  grant funds.
 523-10        (b)  During preparation or amendment of a plan, an agency
 523-11  shall consult:
 523-12              (1)  affected groups, including local governments,
 523-13  charitable organizations, and businesses that provide or fund
 523-14  services similar to the services that may be provided by the agency
 523-15  under the block grant; and
 523-16              (2)  any state advisory or coordinating council that
 523-17  has responsibility over programs similar to the programs that may
 523-18  be provided under the block grant.
 523-19        (c)  An agency that is authorized to approve the allocation
 523-20  of more than $10 million in block grant funds in a year by a
 523-21  discretionary manner other than an objective formula required by
 523-22  federal law shall provide that the consultation required by
 523-23  Subsections (a) and (b)(1) must occur in each of the agency's
 523-24  regions.  (V.A.C.S. Art. 6252-13e, Secs. 5(b), (c), (d), (e).)
 523-25        Sec. 2105.058.  PUBLIC HEARING BY CERTAIN PROVIDERS.  (a)
 523-26  This section applies to a provider that receives more than $5,000
 523-27  in block grant funds to be used as the provider determines
  524-1  appropriate.
  524-2        (b)  Annually, a provider shall submit evidence to the agency
  524-3  that a public meeting or hearing was held in a timely manner solely
  524-4  to seek public comment on the needs or uses of block grant funds
  524-5  received by the provider.
  524-6        (c)  A provider may hold a meeting or hearing under
  524-7  Subsection (b) in conjunction with another meeting or hearing of
  524-8  the provider if the meeting or hearing to consider block grant
  524-9  funds is clearly noted in an announcement of the other meeting or
 524-10  hearing.
 524-11        (d)  An agency by rule may require a provider to undertake
 524-12  other reasonable efforts to seek public participation.  (V.A.C.S.
 524-13  Art. 6252-13e, Secs. 5(f), (g).)
 524-14        Sec. 2105.059.  AVAILABILITY OF RULES AND ELIGIBILITY
 524-15  REQUIREMENTS.  An agency shall maintain for public inspection in
 524-16  each office:
 524-17              (1)  the rules and eligibility requirements relating to
 524-18  the administration of block grant funds; and
 524-19              (2)  a digest or index to rules and decisions.
 524-20  (V.A.C.S. Art. 6252-13e, Sec. 5(i).)
 524-21          (Sections 2105.060-2105.100 reserved for expansion)
 524-22                       SUBCHAPTER C.  COMPLAINTS
 524-23        Sec. 2105.101.  PUBLICATION OF PROCEDURES.  An agency shall
 524-24  distribute publications that describe:
 524-25              (1)  the block grant programs administered by the
 524-26  agency; and
 524-27              (2)  how to make public comments and complaints about
  525-1  the quality of services funded by the block grant.  (V.A.C.S. Art.
  525-2  6252-13e, Sec. 6(a).)
  525-3        Sec. 2105.102.  INVESTIGATION.  (a)  An agency shall have a
  525-4  procedure for investigating complaints about the programs funded by
  525-5  a block grant.
  525-6        (b)  Before the 31st day after the date on which the
  525-7  complaint is received, the agency shall:
  525-8              (1)  complete the investigation; or
  525-9              (2)  notify the complainant when the investigation can
 525-10  be completed, if the investigation cannot be completed within the
 525-11  period provided by this subsection.  (V.A.C.S. Art. 6252-13e, Secs.
 525-12  6(b) (part), (c).)
 525-13        Sec. 2105.103.  NOTICE TO PROVIDER; RESPONSE.  (a)  An agency
 525-14  shall inform a provider of any complaint received concerning the
 525-15  provider's services.
 525-16        (b)  An agency shall give a provider a reasonable time to
 525-17  respond to a complaint.  (V.A.C.S. Art. 6252-13e, Sec. 6(d).)
 525-18        Sec. 2105.104.  USE OF COMPLAINTS; ANNUAL SUMMARY.  (a)  An
 525-19  agency shall use the complaint system to monitor and ensure
 525-20  compliance with applicable federal and state law.
 525-21        (b)  An agency shall consider the history of complaints
 525-22  regarding a provider in determining whether to renew a contract or
 525-23  subgrant for the use of block grant funds by the provider.
 525-24        (c)  An agency shall summarize annually the types of
 525-25  complaints received by the agency.  (V.A.C.S. Art. 6252-13e, Secs.
 525-26  6(b) (part), (e), (f).)
 525-27          (Sections 2105.105-2105.150 reserved for expansion)
  526-1             SUBCHAPTER D.  DENIAL OF SERVICES OR BENEFITS
  526-2        Sec. 2105.151.  RIGHT TO REQUEST HEARING ON DENIAL OF
  526-3  SERVICES OR BENEFITS.  Except as provided by Section 2001.223(1),
  526-4  an affected person who alleges that a provider or an agency has
  526-5  denied all or part of a service or benefit funded by block grant
  526-6  funds in a manner that is unjust, discriminatory, or without
  526-7  reasonable basis in law or fact may request an administrative
  526-8  hearing under Chapter 2001.  (V.A.C.S. Art. 6252-13e, Sec. 7(a)
  526-9  (part).)
 526-10        Sec. 2105.152.  DEPARTMENT OF HUMAN SERVICES' PROCEDURES FOR
 526-11  FAIR HEARING.  The Texas Department of Human Services shall use
 526-12  procedures for conducting a fair hearing under this subchapter.
 526-13  (V.A.C.S. Art. 6252-13e, Sec. 7(a) (part).)
 526-14        Sec. 2105.153.  HEARING ON DENIAL OF SERVICES OR BENEFITS BY
 526-15  AGENCY.  (a)  An agency administering block grant funds shall
 526-16  conduct a timely hearing on the denial of a service or benefit by
 526-17  the agency.
 526-18        (b)  On determining that services were wrongfully denied, an
 526-19  agency shall take appropriate action to correct the practices or
 526-20  procedures of the agency.  (V.A.C.S. Art. 6252-13e, Sec. 7(b).)
 526-21        Sec. 2105.154.  HEARING ON DENIAL OF SERVICES OR BENEFITS BY
 526-22  PROVIDER.  (a)  The agency that provides block grant funds to a
 526-23  provider shall conduct a timely hearing on the denial of a service
 526-24  or benefit by the provider.
 526-25        (b)  A hearing under this section must be held in the
 526-26  locality served by the provider.
 526-27        (c)  On determining that services were wrongfully denied, an
  527-1  agency shall take appropriate action to correct the practices or
  527-2  procedures of the provider.  (V.A.C.S. Art. 6252-13e, Sec. 7(c).)
  527-3          (Sections 2105.155-2105.200 reserved for expansion)
  527-4         SUBCHAPTER E.  NONRENEWAL OR REDUCTION OF BLOCK GRANT
  527-5                      FUNDS OF SPECIFIC PROVIDER
  527-6        Sec. 2105.201.  APPLICATION OF SUBCHAPTER; EXCEPTION.  (a)
  527-7  This subchapter applies if:
  527-8              (1)  an agency reduces a provider's block grant funding
  527-9  by 25 percent or more; and
 527-10              (2)  the agency provides the block grant funds to
 527-11  another provider in the same geographic area to provide similar
 527-12  services.
 527-13        (b)  This subchapter does not apply if a provider's block
 527-14  grant funding becomes subject to the agency's competitive bidding
 527-15  rules requiring the agency to invite bids for competitive
 527-16  evaluation.  (V.A.C.S. Art. 6252-13e, Secs. 9(a), (i).)
 527-17        Sec. 2105.202.  RULES; CONSIDERATIONS.  (a)  An agency shall
 527-18  adopt specific rules defining good cause for nonrenewal of a
 527-19  provider's contract or reduction of a provider's funding.
 527-20        (b)  In deciding whether to renew a provider's contract or to
 527-21  reduce a provider's funding, an agency shall consider:
 527-22              (1)  the effectiveness of services rendered by various
 527-23  providers;
 527-24              (2)  the cost efficiency of programs undertaken by each
 527-25  provider;
 527-26              (3)  the extent to which the services of each provider
 527-27  meet the needs of groups or classes of individuals who are poor or
  528-1  underprivileged or have a disability;
  528-2              (4)  the degree to which services can be provided by
  528-3  other programs in that area;
  528-4              (5)  the extent to which recipients are involved in the
  528-5  providers' decision making; and
  528-6              (6)  the need to provide services in the state without
  528-7  discrimination as to race, religion, or geographic region.
  528-8  (V.A.C.S. Art. 6252-13e, Secs. 9(c), (d).)
  528-9        Sec. 2105.203.  NOTICE TO PROVIDER OF REDUCTION.  Not later
 528-10  than the 30th day before the date on which block grant funds are
 528-11  reduced, an agency shall send a provider a written statement
 528-12  specifying the reason for reducing the funding.  (V.A.C.S. Art.
 528-13  6252-13e, Sec. 9(b).)
 528-14        Sec. 2105.204.  HEARING ON REDUCTION OF FUNDING.  (a)  After
 528-15  receiving notice that block grant funds are to be reduced as
 528-16  provided by Section 2105.203, a provider may request an
 528-17  administrative hearing under Chapter 2001 if the provider alleges
 528-18  that a reduction of funding:
 528-19              (1)  violates the rules adopted under Section
 528-20  2105.202(a);
 528-21              (2)  is discriminatory; or
 528-22              (3)  is without reasonable basis in law or fact.
 528-23        (b)  Not later than the 30th day after the date the request
 528-24  is received, the agency shall conduct a hearing to determine
 528-25  whether the funding should be reduced.  The agency and the provider
 528-26  may agree to postpone the hearing.
 528-27        (c)  An agency shall hold at least one session of the hearing
  529-1  in the locality served by the provider and shall hear local public
  529-2  comment on the matter at that time if requested to do so by:
  529-3              (1)  a local elected official; or
  529-4              (2)  an organization with 25 or more members.
  529-5  (V.A.C.S. Art. 6252-13e, Secs. 9(e), (f), (g).)
  529-6        Sec. 2105.205.  INTERIM CONTRACT PENDING HEARING.  If a
  529-7  provider requests an administrative hearing under Section 2105.204,
  529-8  the agency may enter into an interim contract with the provider or
  529-9  another provider for the services formerly provided by the provider
 529-10  while administrative or judicial proceedings are pending.
 529-11  (V.A.C.S. Art. 6252-13e, Sec. 9(h).)
 529-12          (Sections 2105.206-2105.250 reserved for expansion)
 529-13   SUBCHAPTER F.  REDUCTION OF BLOCK GRANT FUNDS FOR GEOGRAPHIC AREA
 529-14        Sec. 2105.251.  APPLICATION OF SUBCHAPTER; EXCEPTION.  (a)
 529-15  This subchapter applies if:
 529-16              (1)  an agency reduces a provider's block grant funding
 529-17  by 25 percent or more; and
 529-18              (2)  the agency does not provide the block grant funds
 529-19  to another provider in the same geographic area.
 529-20        (b)  This subchapter does not apply if the provider received
 529-21  block grant funds for a specified period under a competitive
 529-22  evaluation of proposals.  (V.A.C.S. Art. 6252-13e, Secs. 10(a),
 529-23  (d).)
 529-24        Sec. 2105.252.  NOTICE TO PROVIDER.  Not later than the 30th
 529-25  day before the date on which the block grant funds are to be
 529-26  reduced, an agency shall send a provider a written statement
 529-27  specifying the reason for reducing the funding.  The statement must
  530-1  be sent to the provider so that the provider has sufficient time to
  530-2  participate in public hearings and consultation proceedings
  530-3  provided by Subchapter B.  (V.A.C.S. Art. 6252-13e, Sec. 10(b).)
  530-4        Sec. 2105.253.  RULES; CONSIDERATIONS.  The rules adopted
  530-5  under Section 2105.202(a) and the considerations provided by
  530-6  Section 2105.202(b) apply to a reduction of block grant funds under
  530-7  this subchapter.  (V.A.C.S. Art. 6252-13e, Sec. 10(c).)
  530-8          (Sections 2105.254-2105.300 reserved for expansion)
  530-9            SUBCHAPTER G.  TERMINATION OF BLOCK GRANT FUNDS
 530-10        Sec. 2105.301.  NOTICE TO PROVIDER.  An agency that proposes
 530-11  to terminate block grant funds of a provider that has violated the
 530-12  terms of a contract or grant shall send the provider a written
 530-13  statement specifying the reasons for the termination not later than
 530-14  the 31st day before the termination date.  (V.A.C.S. Art. 6252-13e,
 530-15  Sec. 8(a).)
 530-16        Sec. 2105.302.  HEARING.  (a)  After receiving notice of
 530-17  termination of a contract or subgrant from block grant funds, a
 530-18  provider may request an administrative hearing under Chapter 2001.
 530-19        (b)  Not later than the 30th day after the date the request
 530-20  is received, the agency shall conduct a hearing to determine
 530-21  whether the funding should be terminated.  The agency and the
 530-22  provider may agree to postpone the hearing.  (V.A.C.S. Art.
 530-23  6252-13e, Secs. 8(b) (part), (c).)
 530-24          (Sections 2105.303-2105.350 reserved for expansion)
 530-25                    SUBCHAPTER H.  JUDICIAL REVIEW
 530-26        Sec. 2105.351.  JUDICIAL REVIEW.  A party to a hearing under
 530-27  Subchapter D, E, F, or G may seek judicial review of the agency's
  531-1  action as provided by Subchapter G, Chapter 2001.  (V.A.C.S. Art.
  531-2  6252-13e, Sec. 11.)
  531-3             CHAPTER 2106.  INDIRECT COST RECOVERY PROGRAM
  531-4  Sec. 2106.001.  DEFINITIONS
  531-5  Sec. 2106.002.  STATEWIDE COST ALLOCATION PLAN
  531-6  Sec. 2106.003.  AGENCY INDIRECT COST RECOVERY PLAN
  531-7  Sec. 2106.004.  TECHNICAL ASSISTANCE
  531-8  Sec. 2106.005.  AGENCY RECOVERY OF INDIRECT COSTS
  531-9  Sec. 2106.006.  GENERAL REVENUE FUND REIMBURSEMENT
 531-10  Sec. 2106.007.  APPROPRIATION OF FEDERALLY REIMBURSED
 531-11                    INDIRECT COSTS
 531-12             CHAPTER 2106.  INDIRECT COST RECOVERY PROGRAM
 531-13        Sec. 2106.001.  DEFINITIONS.  In this chapter:
 531-14              (1)  "Federally reimbursable indirect cost" means a
 531-15  cost, as defined by Office of Management and Budget Circular No.
 531-16  A-87 or a subsequent revision of or successor to that circular,
 531-17  that is:
 531-18                    (A)  incurred by a state agency in support of a
 531-19  federally funded program, other than a research program funded by a
 531-20  federal grant at an institution of higher education; and
 531-21                    (B)  eligible for reimbursement from the federal
 531-22  government.
 531-23              (2)  "Indirect cost" means the cost of administering a
 531-24  state or federally funded program and includes a cost of providing
 531-25  a statewide support service.  The term does not include the actual
 531-26  costs of the program.
 531-27              (3)  "State agency" means a department, board,
  532-1  commission, or other entity in the executive branch of state
  532-2  government that has statewide jurisdiction and administers a
  532-3  program to provide a service to the public or to regulate persons
  532-4  engaged in an occupation or activity.
  532-5              (4)  "Support service" includes accounting, auditing,
  532-6  budgeting, centralized purchasing, and legal services.  (V.A.C.S.
  532-7  Art. 6252-5f, Sec. 1; New.)
  532-8        Sec. 2106.002.  STATEWIDE COST ALLOCATION PLAN.  (a)  The
  532-9  office of the governor shall prepare annually a statewide cost
 532-10  allocation plan.
 532-11        (b)  The plan must:
 532-12              (1)  identify the costs of providing statewide support
 532-13  services to each state agency;
 532-14              (2)  allocate to each state agency an appropriate
 532-15  portion of the total costs of statewide support services; and
 532-16              (3)  identify, to the extent possible, the amount of
 532-17  federally reimbursable indirect costs in each allocated portion.
 532-18        (c)  The office of the governor shall distribute a copy of
 532-19  the plan to each state agency.  (V.A.C.S. Art. 6252-5f, Sec. 2.)
 532-20        Sec. 2106.003.  AGENCY INDIRECT COST RECOVERY PLAN.  (a)  A
 532-21  state agency that receives federal money or charges a fee for a
 532-22  service it provides shall prepare annually an indirect cost
 532-23  recovery plan.
 532-24        (b)  The plan must include proposals to recover the indirect
 532-25  costs of the agency's programs, including the portion of statewide
 532-26  support service costs allocated to the agency under the statewide
 532-27  cost allocation plan.
  533-1        (c)  A state agency that receives federal money shall also
  533-2  prepare a separate schedule indicating its federally reimbursable
  533-3  indirect costs.  (V.A.C.S. Art. 6252-5f, Sec. 3(a).)
  533-4        Sec. 2106.004.  TECHNICAL ASSISTANCE.  The office of the
  533-5  governor shall provide to a state agency on request technical
  533-6  assistance for developing the agency's indirect cost recovery plan.
  533-7  (V.A.C.S. Art. 6252-5f, Sec. 3(c).)
  533-8        Sec. 2106.005.  AGENCY RECOVERY OF INDIRECT COSTS.  A state
  533-9  agency shall implement its indirect cost recovery plan by:
 533-10              (1)  applying for reimbursement for federally
 533-11  reimbursable indirect costs; and
 533-12              (2)  when permitted by law, setting fees and billing
 533-13  rates at amounts sufficient to recover the indirect costs of the
 533-14  agency.  (V.A.C.S. Art.  6252-5f, Sec. 3(b).)
 533-15        Sec. 2106.006.  GENERAL REVENUE FUND REIMBURSEMENT.  (a)  A
 533-16  state agency that receives federal money for federally reimbursable
 533-17  indirect costs shall send to the state treasurer for deposit to the
 533-18  credit of the general revenue fund the lesser of:
 533-19              (1)  the amount received for federally reimbursable
 533-20  indirect costs; or
 533-21              (2)  the amount allocated to the agency in the
 533-22  governor's statewide cost allocation plan for the cost of providing
 533-23  statewide support services to the agency.
 533-24        (b)  This section does not apply to money received by a state
 533-25  agency for federally reimbursable indirect costs to the extent that
 533-26  the agency has previously paid another state agency for services
 533-27  for which the first agency has been reimbursed.  (V.A.C.S. Art.
  534-1  6252-5f, Secs. 4(a), (c).)
  534-2        Sec. 2106.007.  APPROPRIATION OF FEDERALLY REIMBURSED
  534-3  INDIRECT COSTS.  (a)  The legislature may appropriate to a state
  534-4  agency for any purpose the amount of federal money the agency is
  534-5  estimated to receive for federally reimbursable indirect costs
  534-6  during a fiscal biennium.
  534-7        (b)  The appropriation for a state agency may include the
  534-8  amount of federal money for federally reimbursable indirect costs
  534-9  that the agency recovers during a fiscal biennium that exceeds the
 534-10  estimated amount.  (V.A.C.S. Art.  6252-5f, Sec. 4(b).)
 534-11     CHAPTER 2107.  COLLECTION OF DELINQUENT OBLIGATIONS TO STATE
 534-12  Sec. 2107.001.  DEFINITIONS
 534-13  Sec. 2107.002.  AGENCY COLLECTION PROCESS
 534-14  Sec. 2107.003.  COLLECTION BY ATTORNEY GENERAL OR OUTSIDE
 534-15                    AGENT
 534-16  Sec. 2107.004.  NOTICE TO ATTORNEY GENERAL FOR FURTHER
 534-17                    COLLECTION
 534-18  Sec. 2107.005.  REPORTS TO ATTORNEY GENERAL
 534-19  Sec. 2107.006.  ATTORNEY'S FEES AND COSTS
 534-20  Sec. 2107.007.  RETENTION OF COLLECTION FEE
 534-21     CHAPTER 2107.  COLLECTION OF DELINQUENT OBLIGATIONS TO STATE
 534-22        Sec. 2107.001.  DEFINITIONS.  In this chapter:
 534-23              (1)  "Obligation" includes a debt, judgment, claim,
 534-24  account, fee, fine, tax, penalty, interest, loan, charge, or grant.
 534-25              (2)  "State agency" means an agency, board, commission,
 534-26  institution, or other unit of state government.  (V.A.C.S. Art.
 534-27  6252-5e, Sec. 1.)
  535-1        Sec. 2107.002.  AGENCY COLLECTION PROCESS.  (a)  The attorney
  535-2  general shall adopt uniform guidelines for the process by which a
  535-3  state agency collects delinquent obligations owed to the agency.
  535-4        (b)  A state agency that collects delinquent obligations owed
  535-5  to the agency shall establish procedures by rule for collecting a
  535-6  delinquent obligation and a reasonable period for collection.  The
  535-7  rules must conform to the guidelines established by the attorney
  535-8  general.
  535-9        (c)  Until a state agency adopts rules under this section,
 535-10  the attorney general by rule may establish collection procedures
 535-11  for the agency, including the period for collecting a delinquent
 535-12  obligation.  (V.A.C.S. Art. 6252-5e, Sec. 2(a) (part).)
 535-13        Sec. 2107.003.  COLLECTION BY ATTORNEY GENERAL OR OUTSIDE
 535-14  AGENT.  (a)  A state agency shall request the attorney general to
 535-15  collect an obligation before the agency may employ, retain, or
 535-16  contract with a person other than a full-time employee of the state
 535-17  agency to collect the obligation.
 535-18        (b)  The attorney general may authorize the requesting state
 535-19  agency to employ, retain, or contract with a person other than a
 535-20  full-time employee of the agency to collect an obligation that the
 535-21  attorney general cannot collect.  (V.A.C.S. Art. 6252-5e, Sec. 4.)
 535-22        Sec. 2107.004.  NOTICE TO ATTORNEY GENERAL FOR FURTHER
 535-23  COLLECTION.  Not later than the 30th day after the date a state
 535-24  agency determines that normal agency collection procedures for an
 535-25  obligation owed the agency have failed, the agency shall report the
 535-26  uncollected and delinquent obligation to the attorney general for
 535-27  further collection efforts.  (V.A.C.S. Art. 6252-5e, Sec. 2(a)
  536-1  (part).)
  536-2        Sec. 2107.005.  REPORTS TO ATTORNEY GENERAL.  The attorney
  536-3  general may develop specific reporting procedures for each state
  536-4  agency and may adopt rules relating to the reports, including rules
  536-5  specifying when an agency must report and what information must be
  536-6  included in the report.  (V.A.C.S. Art. 6252-5e, Sec. 2(b).)
  536-7        Sec. 2107.006.  ATTORNEY'S FEES AND COSTS.  In any proceeding
  536-8  under this chapter or other law in which the state seeks to collect
  536-9  or recover a delinquent obligation or damages, the attorney general
 536-10  may recover reasonable attorney's fees, investigative costs, and
 536-11  court costs incurred on behalf of the state in the proceeding in
 536-12  the same manner as provided by general law for a private litigant.
 536-13  (V.A.C.S. Art. 6252-5e, Sec. 3.)
 536-14        Sec. 2107.007.  RETENTION OF COLLECTION FEE.  (a)  An
 536-15  obligation reported to the attorney general for collection under
 536-16  this chapter is subject to a collection fee for the use and benefit
 536-17  of the attorney general as provided by legislative appropriation.
 536-18        (b)  The attorney general may retain the amount of the
 536-19  collection fee from the amount of the obligation collected.
 536-20        (c)  A collection fee may not be retained from amounts
 536-21  collected for the unemployment compensation fund established by
 536-22  Section 9, Texas Unemployment Compensation Act (Article 5221b-7,
 536-23  Vernon's Texas Civil Statutes).  (V.A.C.S. Art. 6252-5e, Sec. 5
 536-24  (part).)
 536-25       CHAPTER 2108.  EMPLOYEE INCENTIVE AND AGENCY PRODUCTIVITY
 536-26                   SUBCHAPTER A.  GENERAL PROVISIONS
 536-27  Sec. 2108.001.  DEFINITION
  537-1  Sec. 2108.002.  COMMISSION
  537-2  Sec. 2108.003.  COMMISSION COMPOSITION; PRESIDING OFFICER;
  537-3                    TERMS
  537-4  Sec. 2108.004.  COMMISSION POWERS AND DUTIES
  537-5  Sec. 2108.005.  EXECUTIVE DIRECTOR; STAFF
  537-6  Sec. 2108.006.  REPORT
  537-7  Sec. 2108.007.  APPLICATION OF SUNSET ACT
  537-8          (Sections 2108.008-2108.020 reserved for expansion)
  537-9            SUBCHAPTER B.  STATE EMPLOYEE INCENTIVE PROGRAM
 537-10  Sec. 2108.021.  DEFINITIONS
 537-11  Sec. 2108.022.  STATE EMPLOYEE INCENTIVE PROGRAM
 537-12  Sec. 2108.023.  AWARDS
 537-13  Sec. 2108.024.  EMPLOYEE ELIGIBILITY
 537-14  Sec. 2108.025.  EMPLOYEE STATUS; FORMER EMPLOYEES
 537-15  Sec. 2108.026.  ELIGIBLE SUGGESTION
 537-16  Sec. 2108.027.  MULTIPLE AND JOINT SUGGESTIONS
 537-17  Sec. 2108.028.  AGENCY COORDINATOR
 537-18  Sec. 2108.029.  ELIGIBILITY DETERMINATION BY AGENCY
 537-19                    COORDINATOR
 537-20  Sec. 2108.030.  PROCEDURE
 537-21  Sec. 2108.031.  COMMISSION AS ARBITER; APPEAL
 537-22  Sec. 2108.032.  REEVALUATION OF SUGGESTION
 537-23  Sec. 2108.033.  SUGGESTION ADOPTED BEFORE SUBMISSION TO AGENCY
 537-24                    COORDINATOR
 537-25  Sec. 2108.034.  SUGGESTION REQUIRING LEGISLATIVE ACTION
 537-26  Sec. 2108.035.  CONFIDENTIALITY
 537-27  Sec. 2108.036.  CLAIMS ASSIGNED TO STATE
  538-1  Sec. 2108.037.  FUNDS TRANSFER
  538-2  Sec. 2108.038.  SPECIAL FUND
  538-3  Sec. 2108.039.  CHANGE TO INCENTIVE PROGRAM
  538-4          (Sections 2108.040-2108.100 reserved for expansion)
  538-5               SUBCHAPTER C.  PRODUCTIVITY BONUS PROGRAM
  538-6  Sec. 2108.101.  DEFINITIONS
  538-7  Sec. 2108.102.  PLAN
  538-8  Sec. 2108.103.  APPLICATION
  538-9  Sec. 2108.104.  QUALIFICATIONS FOR PRODUCTIVITY BONUS
 538-10  Sec. 2108.105.  NOTICE OF AWARD
 538-11  Sec. 2108.106.  AWARD TO EMPLOYEES
 538-12  Sec. 2108.107.  AWARD TO STATE AGENCY OR DIVISION
 538-13  Sec. 2108.108.  DETERMINATION OF COST REDUCTION
 538-14  Sec. 2108.109.  PRODUCTIVITY BONUS FUND; AGENCY AND DIVISION
 538-15                    ACCOUNTS
 538-16  Sec. 2108.110.  LEGISLATIVE INTENT
 538-17       CHAPTER 2108.  EMPLOYEE INCENTIVE AND AGENCY PRODUCTIVITY
 538-18                   SUBCHAPTER A.  GENERAL PROVISIONS
 538-19        Sec. 2108.001.  DEFINITION.  In this chapter, "commission"
 538-20  means the Texas Incentive and Productivity Commission.  (V.A.C.S.
 538-21  Art. 6252-29a, Sec. 1.001.)
 538-22        Sec. 2108.002.  COMMISSION.  The commission is a state
 538-23  agency.  (V.A.C.S. Art. 6252-29a, Sec. 1.002.)
 538-24        Sec. 2108.003.  COMMISSION COMPOSITION; PRESIDING OFFICER;
 538-25  TERMS.  (a)  The commission is composed of:
 538-26              (1)  the governor;
 538-27              (2)  the lieutenant governor;
  539-1              (3)  the comptroller;
  539-2              (4)  the state treasurer;
  539-3              (5)  the agency administrator of the Texas Employment
  539-4  Commission;
  539-5              (6)  the chairman of the Texas Higher Education
  539-6  Coordinating Board or the chairman's designee; and
  539-7              (7)  three public members appointed by the governor who
  539-8  have experience in the administration of bonus, incentive, or
  539-9  related programs used in private industry.
 539-10        (b)  A commission member who is an elected official may
 539-11  designate another individual to act in the official's place as a
 539-12  voting member of the commission.
 539-13        (c)  The governor or the governor's designee serves as
 539-14  presiding officer of the commission.
 539-15        (d)  Public members serve a two-year term, with the term of
 539-16  one member expiring February 1 of each even-numbered year and the
 539-17  term of two members expiring February 1 of each odd-numbered year.
 539-18  (V.A.C.S. Art. 6252-29a, Sec. 1.003.)
 539-19        Sec. 2108.004.  COMMISSION POWERS AND DUTIES.  (a)  The
 539-20  commission shall develop policies, procedures, and recordkeeping
 539-21  measures to administer this chapter.
 539-22        (b)  The commission may adopt rules to carry out this
 539-23  chapter.
 539-24        (c)  The commission may accept contributions or assistance
 539-25  from private institutions and organizations and may request and
 539-26  receive aid and assistance from the governor's office and other
 539-27  state governmental bodies to effectively implement this chapter.
  540-1  (V.A.C.S. Art. 6252-29a, Sec. 1.006.)
  540-2        Sec. 2108.005.  EXECUTIVE DIRECTOR; STAFF.  (a)  The
  540-3  commission may hire an executive director and other staff necessary
  540-4  to perform its functions.
  540-5        (b)  The commission may designate separate division directors
  540-6  to oversee the administration of the state employee incentive
  540-7  program under Subchapter B and the productivity bonus program under
  540-8  Subchapter C.  (V.A.C.S. Art. 6252-29a, Sec. 1.005.)
  540-9        Sec. 2108.006.  REPORT.  Not later than January 1 before each
 540-10  regular session of the legislature, the commission shall report in
 540-11  writing to the governor, the lieutenant governor, and the speaker
 540-12  of the house of representatives on the commission's activities,
 540-13  decisions, awards, and recommendations.   (V.A.C.S. Art. 6252-29a,
 540-14  Sec. 1.007.)
 540-15        Sec. 2108.007.  APPLICATION OF SUNSET ACT.  The Texas
 540-16  Incentive and Productivity Commission is subject to Chapter 325
 540-17  (Texas Sunset Act).  Unless continued in existence as provided by
 540-18  that chapter, the commission is abolished and this chapter expires
 540-19  September 1, 2001.  (V.A.C.S. Art. 6252-29a, Sec. 1.004.)
 540-20          (Sections 2108.008-2108.020 reserved for expansion)
 540-21            SUBCHAPTER B.  STATE EMPLOYEE INCENTIVE PROGRAM
 540-22        Sec. 2108.021.  DEFINITIONS.  In this subchapter:
 540-23              (1)  "Agency coordinator" means a state employee who is
 540-24  designated by the executive director of the employee's agency to
 540-25  act as the liaison between that agency and the commission.
 540-26              (2)  "Award" means a bonus or certificate of
 540-27  appreciation.
  541-1              (3)  "Bonus" means a monetary award that is granted to
  541-2  a state employee in payment for an employee suggestion.
  541-3              (4)  "Certificate of appreciation" means a nonmonetary
  541-4  award that is granted to a state employee in recognition of an
  541-5  employee suggestion.
  541-6              (5)  "Incentive program" means the state employee
  541-7  incentive program.
  541-8              (6)  "State agency" means a department, commission,
  541-9  board, office, or other agency in the executive or judicial branch
 541-10  of government that is created under the constitution or a statute
 541-11  of this state.
 541-12              (7)  "State employee" means an employee of a state
 541-13  agency and does not include an elected or appointed agency
 541-14  official.  (V.A.C.S. Art. 6252-29a, Secs. 2.001, 2.004(b).)
 541-15        Sec. 2108.022.  STATE EMPLOYEE INCENTIVE PROGRAM.  (a)  The
 541-16  purposes of the state employee incentive program are to:
 541-17              (1)  reduce state expenditures, increase state
 541-18  revenues, and improve the quality of state services; and
 541-19              (2)  recognize the contributions made by certain state
 541-20  employees in achieving the goals described in Subdivision (1).
 541-21        (b)  An employee may be compensated for a suggestion under
 541-22  the incentive program only as provided by this subchapter.
 541-23  (V.A.C.S. Art. 6252-29a, Secs. 2.002(a), 2.008(a) (part).)
 541-24        Sec. 2108.023.  AWARDS.  (a)  From funds appropriated or
 541-25  otherwise available for this purpose, the commission may grant an
 541-26  award to an eligible state employee who makes a suggestion that:
 541-27              (1)  reduces state expenditures, increases state
  542-1  revenues, increases agency productivity, or improves the quality of
  542-2  state services; and
  542-3              (2)  is approved and implemented.
  542-4        (b)  The commission may grant an award, and the comptroller
  542-5  may transfer funds under this subchapter, before the end of the
  542-6  first year in which a suggestion is implemented.
  542-7        (c)  An award or transfer of funds must be computed on the
  542-8  net annual actual or projected savings or increased revenues,
  542-9  including savings or increased revenues that result from increased
 542-10  productivity, that are certified by the affected state agency and
 542-11  the commission.
 542-12        (d)  An employee is eligible for a bonus of 10 percent of the
 542-13  net savings or revenue increases, not to exceed an award of $5,000,
 542-14  if the employee's suggestion results in savings or increased
 542-15  revenues, including savings or increased revenues that result from
 542-16  increased productivity, that:
 542-17              (1)  can be computed using a cost-benefit analysis; and
 542-18              (2)  equal or exceed $100 after implementation costs.
 542-19        (e)  An employee is not eligible for a bonus but may be
 542-20  recognized by a certificate of appreciation if the employee's
 542-21  suggestion results in:
 542-22              (1)  intangible savings or benefits that cannot be
 542-23  computed using a cost-benefit analysis; or
 542-24              (2)  a net annual savings or increase in revenues of
 542-25  less than $100.
 542-26        (f)  The commission may also issue a certificate of
 542-27  appreciation to each employee who is granted a bonus under this
  543-1  subchapter.  (V.A.C.S. Art. 6252-29a, Secs. 2.002(b), (c), (d),
  543-2  (e).)
  543-3        Sec. 2108.024.  EMPLOYEE ELIGIBILITY.  Each state employee is
  543-4  eligible to participate in the incentive program except an
  543-5  employee:
  543-6              (1)  who has authority to implement the suggestion
  543-7  being made;
  543-8              (2)  who is on an unpaid leave of absence;
  543-9              (3)  whose job description includes responsibility for
 543-10  cost analysis, efficiency analysis, savings implementation, or
 543-11  other similar programs in the employee's agency;
 543-12              (4)  who is involved in or has access to agency
 543-13  research and development information used as the basis of the
 543-14  suggestion; or
 543-15              (5)  whose job description or routine job duties
 543-16  include developing the type of change in agency operations
 543-17  recommended by the suggestion.  (V.A.C.S. Art. 6252-29a, Sec.
 543-18  2.004(a).)
 543-19        Sec. 2108.025.  EMPLOYEE STATUS; FORMER EMPLOYEES.  (a)  An
 543-20  employee's eligibility under Section 2108.024 is determined on the
 543-21  employee's status when the agency coordinator receives the original
 543-22  employee suggestion.
 543-23        (b)  A former employee is eligible for an award if the
 543-24  employee's suggestion is implemented on or before the second
 543-25  anniversary of the date of final disposition of the suggestion.  A
 543-26  bonus granted to an employee who dies before the bonus is received
 543-27  shall be paid to the employee's estate.  (V.A.C.S. Art. 6252-29a,
  544-1  Sec. 2.007(b).)
  544-2        Sec. 2108.026.  ELIGIBLE SUGGESTION.  (a)  To be eligible for
  544-3  consideration under the incentive program an employee suggestion
  544-4  must:
  544-5              (1)  be given to the agency coordinator;
  544-6              (2)  be in writing and in the form the commission
  544-7  prescribes;
  544-8              (3)  be signed by the employee;
  544-9              (4)  propose a reasonable implementation method; and
 544-10              (5)  describe the type of cost savings or other benefit
 544-11  the employee foresees if the suggestion is adopted.
 544-12        (b)  An employee is not eligible to receive an award under
 544-13  this subchapter for a suggestion that:
 544-14              (1)  does not describe a method to achieve the desired
 544-15  savings or benefit;
 544-16              (2)  proposes an idea under implementation or
 544-17  consideration on the date the suggestion is given to the agency;
 544-18              (3)  relates only to personnel matters or grievances,
 544-19  including employee classification or compensation;
 544-20              (4)  proposes a correction for a condition that
 544-21  resulted only because applicable established procedures were not
 544-22  properly followed; or
 544-23              (5)  proposes implementation of a policy or procedure
 544-24  that the employee's agency adopted before the employee made the
 544-25  suggestion to the agency.  (V.A.C.S. Art. 6252-29a, Secs. 2.005(a)
 544-26  (part), 2.006.)
 544-27        Sec. 2108.027.  MULTIPLE AND JOINT SUGGESTIONS.  (a)  If two
  545-1  or more employees submit the same suggestion relating to the same
  545-2  agency, the first suggestion that the agency coordinator receives
  545-3  is eligible for consideration.
  545-4        (b)  If the same suggestion is received on the same day from
  545-5  two or more employees working at different locations, a bonus
  545-6  granted for the suggestion may be divided equally among the
  545-7  employees.
  545-8        (c)  Two or more employees may submit a joint suggestion.  A
  545-9  bonus granted for the suggestion may be divided equally among the
 545-10  employees.  (V.A.C.S. Art. 6252-29a, Secs. 2.005(c), (d).)
 545-11        Sec. 2108.028.  AGENCY COORDINATOR.  (a)  Each state agency
 545-12  shall designate an agency coordinator.
 545-13        (b)  An agency coordinator shall:
 545-14              (1)  promote employee participation in the incentive
 545-15  program;
 545-16              (2)  obtain an impartial evaluation of each employee
 545-17  suggestion;
 545-18              (3)  promote the implementation of adopted suggestions
 545-19  by the agency;
 545-20              (4)  monitor the cost savings and other benefits that
 545-21  result from the implementation of an employee suggestion;
 545-22              (5)  file reports with the commission as required by
 545-23  commission rule; and
 545-24              (6)  arrange and conduct intraagency award ceremonies
 545-25  to recognize agency employees who are granted awards under this
 545-26  subchapter.  (V.A.C.S. Art. 6252-29a, Sec. 2.003(a).)
 545-27        Sec. 2108.029.  ELIGIBILITY DETERMINATION BY AGENCY
  546-1  COORDINATOR.  (a)  An agency coordinator shall make the initial
  546-2  determination of the eligibility of an employee suggestion or of an
  546-3  agency employee who makes a suggestion.
  546-4        (b)  An employee who is aggrieved by an eligibility
  546-5  determination of an agency coordinator may request a
  546-6  redetermination.
  546-7        (c)  The commission shall adopt rules to govern the
  546-8  redetermination process.  An agency coordinator shall give each
  546-9  employee who makes a suggestion a copy of the commission rules
 546-10  relating to redeterminations or reevaluations.  (V.A.C.S. Art.
 546-11  6252-29a, Sec. 2.003(b).)
 546-12        Sec. 2108.030.  PROCEDURE.  (a)  Not later than the 90th day
 546-13  after the date an agency coordinator receives an employee
 546-14  suggestion, the agency coordinator shall send the suggestion and
 546-15  the evaluation of the suggestion to the commission for further
 546-16  analysis and comment regarding implementation.  If, after any
 546-17  necessary analysis, the commission determines that the suggestion
 546-18  has merit, the commission shall refer the suggestion to each
 546-19  appropriate state agency for proposed adoption and implementation.
 546-20        (b)  Not later than the 30th day after the date the
 546-21  commission makes a final determination on adoption or rejection of
 546-22  an employee suggestion, the commission shall notify in writing each
 546-23  employee who proposed the suggestion of the commission's
 546-24  determination.
 546-25        (c)  Final adoption of an employee suggestion is at the
 546-26  discretion of the chief administrative officers of each agency.  An
 546-27  agency that implements a suggestion proposed under this subchapter
  547-1  shall provide information the commission requests that is necessary
  547-2  to compute the amount of savings or other benefits derived from the
  547-3  suggestion.  (V.A.C.S. Art. 6252-29a, Secs. 2.005(a) (part), (e),
  547-4  (f).)
  547-5        Sec. 2108.031.  COMMISSION AS ARBITER; APPEAL.  (a)  The
  547-6  commission is the final arbiter of any dispute arising from the
  547-7  implementation of the incentive program or from eligibility
  547-8  determination.
  547-9        (b)  An employee may not appeal a commission decision to a
 547-10  court.  (V.A.C.S. Art. 6252-29a, Secs. 2.002(g), 2.008(a) (part).)
 547-11        Sec. 2108.032.  REEVALUATION OF SUGGESTION.  An employee
 547-12  whose suggestion has been rejected may request a reevaluation of
 547-13  the suggestion if the employee has reasonable grounds to believe
 547-14  that the importance of the suggestion has been overlooked or
 547-15  misinterpreted.  The employee must make the request in writing not
 547-16  later than the 30th day after the date the employee receives notice
 547-17  of the rejection.  The employee shall provide any additional
 547-18  information that the employee considers useful to the reevaluation.
 547-19  (V.A.C.S. Art. 6252-29a, Sec. 2.007(c).)
 547-20        Sec. 2108.033.  SUGGESTION ADOPTED BEFORE SUBMISSION TO
 547-21  AGENCY COORDINATOR.  The commission may grant a bonus or issue a
 547-22  certificate of appreciation to an employee who makes a suggestion
 547-23  that results in an agency's adopting a policy or procedure before
 547-24  the suggestion is submitted to the agency coordinator if the
 547-25  employee or agency demonstrates to the commission that:
 547-26              (1)  the employee making the suggestion is eligible
 547-27  under this subchapter;
  548-1              (2)  the suggestion is eligible under this subchapter;
  548-2              (3)  the employee proposed a reasonable method of
  548-3  implementation and described the type of savings or benefit
  548-4  foreseen to the agency before agency implementation; and
  548-5              (4)  the agency adopted the policy or procedure as a
  548-6  result of the suggestion.  (V.A.C.S. Art. 6252-29a, Sec. 2.005(g).)
  548-7        Sec. 2108.034.  SUGGESTION REQUIRING LEGISLATIVE ACTION.  The
  548-8  commission shall note a suggestion that requires legislative
  548-9  action.  If, as a direct result of an employee suggestion,
 548-10  legislation is passed to implement the suggestion, the commission
 548-11  shall consider the suggestion for an award.  The employee's agency
 548-12  coordinator shall notify the commission if implementing legislation
 548-13  is passed.  (V.A.C.S. Art. 6252-29a, Sec. 2.005(b).)
 548-14        Sec. 2108.035.  CONFIDENTIALITY.  On request of an employee
 548-15  who has made a suggestion under this subchapter, the commission to
 548-16  the greatest extent possible shall maintain the employee's
 548-17  confidentiality in the evaluation or award process.  (V.A.C.S. Art.
 548-18  6252-29a, Sec. 2.007(a).)
 548-19        Sec. 2108.036.  CLAIMS ASSIGNED TO STATE.        By
 548-20  submitting a suggestion under this subchapter, an employee agrees
 548-21  with the state that a claim of the employee based on the
 548-22  suggestion, including a patent, copyright, trademark, or other
 548-23  similar claim, is assigned to the state.  (V.A.C.S. Art. 6252-29a,
 548-24  Sec. 2.008(b).)
 548-25        Sec. 2108.037.  FUNDS TRANSFER.  (a)  The comptroller shall
 548-26  transfer the amount certified by the commission and the affected
 548-27  agency as the actual or projected savings or increased revenues
  549-1  attributable to an implemented suggestion from a fund affected by
  549-2  the savings or increased revenues.
  549-3        (b)  The comptroller shall transfer the amount certified
  549-4  under Subsection (a) as follows:
  549-5              (1)  40 percent to the fund from which the original
  549-6  appropriation to the affected fund was made;
  549-7              (2)  40 percent to an appropriate fund from which the
  549-8  affected agency may award merit pay increases to individuals in the
  549-9  agency; and
 549-10              (3)  20 percent to the special fund established for the
 549-11  commission under Section 2108.038.
 549-12        (c)  If increased productivity attributable to an implemented
 549-13  suggestion results in savings or increased revenues that can be
 549-14  computed as provided by Section 2108.023(c) but that will not
 549-15  permit the affected agency to transfer or to have an unexpended
 549-16  balance of appropriated money, the commission and the affected
 549-17  agency shall certify the amount of actual or projected savings or
 549-18  increased revenues that are attributable to the suggestion, and the
 549-19  comptroller shall transfer 20 percent of that amount from a fund
 549-20  affected by the savings or increased revenues to the special fund
 549-21  established under Section 2108.038.  (V.A.C.S. Art. 6252-29a, Sec.
 549-22  2.002(f) (part).)
 549-23        Sec. 2108.038.  SPECIAL FUND.  (a)  An amount transferred
 549-24  under Section 2108.037(b)(3) or (c) shall be deposited in the state
 549-25  treasury to the credit of a special fund.  Money in the fund may be
 549-26  used by the commission for bonuses awarded under this subchapter
 549-27  and to administer the commission.
  550-1        (b)  The comptroller shall transfer any amount remaining in
  550-2  the special fund on the last day of a state fiscal biennium to the
  550-3  general revenue fund or other funds as appropriate.  (V.A.C.S. Art.
  550-4  6252-29a, Sec. 2.002(f) (part).)
  550-5        Sec. 2108.039.  CHANGE TO INCENTIVE PROGRAM.  The state may
  550-6  change or terminate the incentive program at any time without prior
  550-7  notice.  (V.A.C.S. Art. 6252-29a, Sec. 2.008(a) (part).)
  550-8          (Sections 2108.040-2108.100 reserved for expansion)
  550-9               SUBCHAPTER C.  PRODUCTIVITY BONUS PROGRAM
 550-10        Sec. 2108.101.  DEFINITIONS.  In this subchapter:
 550-11              (1)  "Division" means a unit of a state agency that:
 550-12                    (A)  has an identifiable self-contained budget;
 550-13  or
 550-14                    (B)  maintains its financial records under an
 550-15  accounting system that permits the accurate identification of the
 550-16  unit's expenditures and receipts.
 550-17              (2)  "Productivity bonus" means a cash bonus awarded to
 550-18  an eligible state agency or division in recognition of increased
 550-19  productivity.
 550-20              (3)  "State agency" means a department, commission,
 550-21  board, office, or other agency in the executive or judicial branch
 550-22  of state government, but does not include:
 550-23                    (A)  the office of the governor; or
 550-24                    (B)  an institution of higher education, as
 550-25  defined by Section 61.003, Education Code.  (V.A.C.S. Art.
 550-26  6252-29a, Sec. 3.001.)
 550-27        Sec. 2108.102.  PLAN.  (a)  Before a state agency may apply
  551-1  for a productivity bonus for the agency or a division of the
  551-2  agency, the commission must approve an agency plan submitted by the
  551-3  agency's executive director.  The plan must outline a strategy to
  551-4  be followed by the agency or division that, if implemented, would
  551-5  qualify the agency or division for a productivity bonus.
  551-6        (b)  The commission may return a plan to the executive
  551-7  director to request additional information or clarification of
  551-8  details relating to the plan.
  551-9        (c)  Not later than the 30th day after the date the
 551-10  commission receives the plan, the commission shall approve or
 551-11  reject the plan and inform the executive director in writing of its
 551-12  decision.  (V.A.C.S. Art. 6252-29a, Sec. 3.002.)
 551-13        Sec. 2108.103.  APPLICATION.  (a)  After approval of a plan
 551-14  under Section 2108.102, the executive director of a state agency
 551-15  may apply to the commission for a productivity bonus for the agency
 551-16  or one of the agency's divisions.  To apply, the executive director
 551-17  must provide the commission with evaluation components developed by
 551-18  the agency or division that permit a quantitative measure of the
 551-19  agency's or division's productivity and performance.
 551-20        (b)  The application must be:
 551-21              (1)  in the form the commission prescribes;
 551-22              (2)  approved by the executive director of the agency;
 551-23  and
 551-24              (3)  submitted not later than the 30th day before the
 551-25  last day of the fiscal year.  (V.A.C.S. Art. 6252-29a, Sec. 3.003.)
 551-26        Sec. 2108.104.  QUALIFICATIONS FOR PRODUCTIVITY BONUS.  (a)
 551-27  The commission may not award a productivity bonus unless the
  552-1  commission determines that:
  552-2              (1)  the state agency or division has demonstrated that
  552-3  during the fiscal year the agency or division operated at a lower
  552-4  cost than the amount appropriated to the agency or division for
  552-5  that fiscal year without a decrease in the level of services
  552-6  required to be rendered by the agency or division during that year;
  552-7  and
  552-8              (2)  the cost of operation that the agency or division
  552-9  claims is not the result, in whole or part, of:
 552-10                    (A)  lowering of the quality of services
 552-11  rendered;
 552-12                    (B)  reduced pass-through or transfer
 552-13  expenditures;
 552-14                    (C)  receipts exceeding budgeted amounts;
 552-15                    (D)  failure to implement a merited promotion,
 552-16  reclassification, or authorized salary increase;
 552-17                    (E)  postponement of a scheduled purchase,
 552-18  repair, or payment of accounts to a future fiscal year;
 552-19                    (F)  stockpiling of inventory in the preceding
 552-20  fiscal year to reduce requirements during the fiscal year;
 552-21                    (G)  substitution of nonstate funds for state
 552-22  appropriations; or
 552-23                    (H)  another practice, event, or device that the
 552-24  commission determines has caused a distortion that results in an
 552-25  inaccurate claimed cost of operation.
 552-26        (b)  For the purposes of Subsection (a)(1), if an
 552-27  appropriation for a fiscal biennium is not divided between the
  553-1  fiscal years, the commission shall base its determination on the
  553-2  amount reasonably attributable to the fiscal year involved.
  553-3        (c)  The commission shall consider as legitimate savings a
  553-4  reduction in expenditures made possible by:
  553-5              (1)  reduction in overtime for eligible employees;
  553-6              (2)  elimination of:
  553-7                    (A)  consultant fees;
  553-8                    (B)  budgeted positions;
  553-9                    (C)  unnecessary travel, printing, and mailing;
 553-10  and
 553-11                    (D)  payments for unnecessary advertising,
 553-12  membership dues, and subscriptions and other nonessential
 553-13  expenditures of the agency's or division's funds;
 553-14              (3)  increased efficiency in energy use;
 553-15              (4)  improved office procedures and systems; and
 553-16              (5)  another practice or device that the commission
 553-17  determines has resulted in verifiable savings.  (V.A.C.S. Art.
 553-18  6252-29a, Sec. 3.004.)
 553-19        Sec. 2108.105.  NOTICE OF AWARD.  If the commission
 553-20  determines that a state agency or division qualifies for a
 553-21  productivity bonus, the commission shall notify the executive
 553-22  director of the agency.  (V.A.C.S. Art. 6252-29a, Sec. 3.007(a).)
 553-23        Sec. 2108.106.  AWARD TO EMPLOYEES.  (a)  The commission
 553-24  shall award eligible employees of an agency or division an amount
 553-25  not to exceed 25 percent of the amount in the agency's or
 553-26  division's productivity bonus account.  The awarded amount shall be
 553-27  distributed in equal shares to the eligible current employees of
  554-1  the agency or division.  A bonus awarded to an individual employee
  554-2  may not exceed $1,000.
  554-3        (b)  An eligible employee who worked for less than the entire
  554-4  fiscal year or who worked part-time is entitled to a proportional
  554-5  share computed on the part of the fiscal year or the average part
  554-6  of the work week, as applicable, that the employee worked.
  554-7        (c)  An employee is eligible under this section if the
  554-8  employee:
  554-9              (1)  is an hourly, part-time, or temporary employee;
 554-10              (2)  is a classified employee under Chapter 654; or
 554-11              (3)  performs functions equivalent to functions
 554-12  performed by a classified employee in another state agency.
 554-13  (V.A.C.S. Art. 6252-29a, Sec. 3.007(b).)
 554-14        Sec. 2108.107.  AWARD TO STATE AGENCY OR DIVISION.  If the
 554-15  commission awards a productivity bonus to a state agency or
 554-16  division of a state agency, the balance in the agency's or
 554-17  division's productivity bonus account, as appropriate, shall be
 554-18  distributed as follows:
 554-19              (1)  one-third shall be appropriated to the agency for
 554-20  use by the agency's administration to promote agency productivity
 554-21  during the subsequent fiscal year; and
 554-22              (2)  two-thirds shall be credited to the fund from
 554-23  which the original agency or division appropriation was made.
 554-24  (V.A.C.S. Art. 6252-29a, Secs. 3.007(c), (d).)
 554-25        Sec. 2108.108.  DETERMINATION OF COST REDUCTION.  (a)  At the
 554-26  end of a fiscal year the commission shall compare the expenditures
 554-27  of a state agency or division that participates in the productivity
  555-1  bonus program for the fiscal year with the agency's or division's
  555-2  appropriation for that fiscal year or, if appropriate, the amount
  555-3  attributable to that year.  The commission shall determine the
  555-4  amount by which the agency or division has reduced its cost of
  555-5  operations during the fiscal year.
  555-6        (b)  The commission shall make any necessary adjustments in
  555-7  its determination to eliminate distortions.  The commission may
  555-8  consider legislative increases in employee compensation and
  555-9  inflationary increases in the cost of services, materials, and
 555-10  supplies.  (V.A.C.S. Art. 6252-29a, Sec. 3.006.)
 555-11        Sec. 2108.109.  PRODUCTIVITY BONUS FUND; AGENCY AND DIVISION
 555-12  ACCOUNTS.  (a)  The productivity bonus fund is in the state
 555-13  treasury.  Money in the fund may be used for payment of bonuses
 555-14  under this subchapter and may be appropriated only as provided by
 555-15  this subchapter.
 555-16        (b)  The state treasurer shall create in the productivity
 555-17  bonus fund a productivity bonus account for each state agency or
 555-18  division participating in the productivity bonus program and an
 555-19  account for the commission.
 555-20        (c)  During each fiscal year the executive director of an
 555-21  eligible agency shall monitor agency or division activities and
 555-22  estimate the savings resulting from increased economy and
 555-23  efficiency.  At the end of the fiscal year the executive director
 555-24  shall certify the amount of savings to the comptroller.  The
 555-25  comptroller shall transfer three-fourths of that amount from the
 555-26  appropriation of the state agency to the agency's or division's
 555-27  productivity bonus account and one-fourth of that amount from the
  556-1  appropriation of the state agency to the commission's account.
  556-2        (d)  The commission may use the amount in its account to
  556-3  administer this chapter.  (V.A.C.S. Art. 6252-29a, Sec. 3.005.)
  556-4        Sec. 2108.110.  LEGISLATIVE INTENT.  The legislature intends
  556-5  that a state agency or division that reduces its cost of operations
  556-6  and qualifies for a productivity bonus under this chapter may not
  556-7  be penalized for those savings through a corresponding reduction in
  556-8  appropriations for the subsequent fiscal biennium.  (V.A.C.S. Art.
  556-9  6252-29a, Sec. 3.007(e).)
 556-10                       CHAPTER 2109.  VOLUNTEERS
 556-11  Sec. 2109.001.  DEFINITIONS
 556-12  Sec. 2109.002.  USE OF VOLUNTEERS FOR HUMAN SERVICES
 556-13  Sec. 2109.003.  DEVELOPMENT OF PROGRAMS
 556-14  Sec. 2109.004.  PROGRAM REQUIREMENTS AND GUIDELINES
 556-15  Sec. 2109.005.  MERIT PAY; PERFORMANCE EVALUATIONS
 556-16  Sec. 2109.006.  STATE BUDGET RECOMMENDATIONS
 556-17                       CHAPTER 2109.  VOLUNTEERS
 556-18        Sec. 2109.001.  DEFINITIONS.  In this chapter:
 556-19              (1)  "Governmental entity" means a state agency or any
 556-20  other governmental entity supported in whole or in part by funds
 556-21  received from the state.
 556-22              (2)  "Human services" means providing for basic human
 556-23  mental or physical needs.  (V.A.C.S. Art. 6252-11e, Sec. 1; New.)
 556-24        Sec. 2109.002.  USE OF VOLUNTEERS FOR HUMAN SERVICES.  A
 556-25  governmental entity that provides human services shall use
 556-26  volunteers, if feasible, to assist in providing human services of a
 556-27  high quality.  (V.A.C.S.  Art. 6252-11e, Sec. 2.)
  557-1        Sec. 2109.003.  DEVELOPMENT OF PROGRAMS.  (a)  Each
  557-2  governmental entity shall develop a volunteer program.
  557-3        (b)  In developing the program, the governmental entity shall
  557-4  consider volunteers a resource that requires advance planning and
  557-5  preparation for effective use.
  557-6        (c)  The governmental entity shall include, if practicable,
  557-7  volunteers in addition to paid staff in planning the implementation
  557-8  of the program.  (V.A.C.S. Art. 6252-11e, Secs. 3(a), (b), (c).)
  557-9        Sec. 2109.004.  PROGRAM REQUIREMENTS AND GUIDELINES.  (a)  A
 557-10  volunteer program must include:
 557-11              (1)  an effective training program for paid staff and
 557-12  prospective volunteers;
 557-13              (2)  the use of paid staff to plan and implement the
 557-14  volunteer program;
 557-15              (3)  an evaluation mechanism to assess:
 557-16                    (A)  the performance of the volunteers;
 557-17                    (B)  the cooperation of paid staff with the
 557-18  volunteers; and
 557-19                    (C)  the volunteer program; and
 557-20              (4)  follow-up studies to ensure the effectiveness of
 557-21  the volunteer program.
 557-22        (b)  A volunteer program may:
 557-23              (1)  establish a program to reimburse volunteers for
 557-24  actual and necessary expenses incurred in the performance of
 557-25  volunteer services;
 557-26              (2)  establish an insurance program to protect
 557-27  volunteers in the performance of volunteer services;
  558-1              (3)  cooperate with private organizations that provide
  558-2  services similar to those provided by the governmental entity; and
  558-3              (4)  purchase engraved certificates, plaques, pins, or
  558-4  awards of a similar nature, with a value that does not exceed $75
  558-5  for each volunteer, to recognize special achievement and
  558-6  outstanding services of volunteers.
  558-7        (c)  This section applies to a volunteer program of a
  558-8  governmental entity, regardless of whether the governmental entity
  558-9  provides human services.  (V.A.C.S. Art. 6252-11e, Secs. 4, 5.)
 558-10        Sec. 2109.005.  MERIT PAY; PERFORMANCE EVALUATIONS.  A
 558-11  governmental entity that has a volunteer program shall consider the
 558-12  use of volunteers in determining merit pay increases and
 558-13  performance evaluations.  (V.A.C.S. Art. 6252-11e, Sec. 3(d).)
 558-14        Sec. 2109.006.  STATE BUDGET RECOMMENDATIONS.  During the
 558-15  preparation of budget recommendations, the Legislative Budget Board
 558-16  shall review the use of funds requested for volunteer programs.
 558-17  (V.A.C.S.  Art.  6252-11e, Sec. 3(e).)
 558-18              (Chapters 2110-2150 reserved for expansion)
 558-19          SUBTITLE D.  STATE PURCHASING AND GENERAL SERVICES
 558-20              (Chapters 2151-2200 reserved for expansion)
 558-21                   SUBTITLE E.  GOVERNMENT PROPERTY
 558-22                CHAPTER 2201.  TEXAS CAPITAL TRUST FUND
 558-23  Sec. 2201.001.  TEXAS CAPITAL TRUST FUND
 558-24  Sec. 2201.002.  USE OF FUND
 558-25  Sec. 2201.003.  RELATION TO GENERAL REVENUE FUND
 558-26                   SUBTITLE E.  GOVERNMENT PROPERTY
 558-27                CHAPTER 2201.  TEXAS CAPITAL TRUST FUND
  559-1        Sec. 2201.001.  TEXAS CAPITAL TRUST FUND.  The Texas capital
  559-2  trust fund is in the state treasury.  (V.A.C.S. Art. 601e, Sec. 1
  559-3  (part).)
  559-4        Sec. 2201.002.  USE OF FUND.  (a)  The fund may be used only
  559-5  to finance:
  559-6              (1)  the acquisition, construction, repair,
  559-7  improvement, or equipping of a building by a state agency for a
  559-8  state purpose;
  559-9              (2)  the acquisition of real or personal property
 559-10  necessary for a state agency to take an action described by
 559-11  Subdivision (1); or
 559-12              (3)  the administration of the asset management
 559-13  division of the General Land Office.
 559-14        (b)  The fund may not be used to pay for an activity of:
 559-15              (1)  the Texas Department of Transportation;
 559-16              (2)  an institution of higher education as defined by
 559-17  Section 61.003, Education Code;
 559-18              (3)  the Texas State Technical College System;
 559-19              (4)  the Southwest Collegiate Institute for the Deaf;
 559-20              (5)  the Employees Retirement System of Texas; or
 559-21              (6)  the Teacher Retirement System of Texas.  (V.A.C.S.
 559-22  Art. 601e, Secs.  1 (part), 2.)
 559-23        Sec. 2201.003.  RELATION TO GENERAL REVENUE FUND.  (a)
 559-24  Income from the fund shall be deposited to the credit of the
 559-25  general revenue fund.
 559-26        (b)  At the end of each fiscal biennium the unencumbered
 559-27  balance of the fund in excess of $500 million shall be transferred
  560-1  to the credit of the general revenue fund.  (V.A.C.S. Art. 601e,
  560-2  Sec. 3.)
  560-3                CHAPTER 2202.  SURPLUS PROPERTY AGENCY
  560-4                   SUBCHAPTER A.  GENERAL PROVISIONS
  560-5  Sec. 2202.001.  DEFINITIONS
  560-6  Sec. 2202.002.  SUNSET PROVISION
  560-7          (Sections 2202.003-2202.020 reserved for expansion)
  560-8               SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
  560-9  Sec. 2202.021.  COMPOSITION OF AGENCY
 560-10  Sec. 2202.022.  COMPOSITION OF BOARD
 560-11  Sec. 2202.023.  APPOINTMENTS
 560-12  Sec. 2202.024.  ELIGIBILITY
 560-13  Sec. 2202.025.  CONFLICTS OF INTEREST
 560-14  Sec. 2202.026.  INFORMATION ABOUT QUALIFICATIONS AND
 560-15                    STANDARDS OF CONDUCT
 560-16  Sec. 2202.027.  REMOVAL OF BOARD MEMBERS
 560-17  Sec. 2202.028.  TERMS
 560-18  Sec. 2202.029.  VACANCY
 560-19  Sec. 2202.030.  PRESIDING OFFICER; MEETINGS
 560-20  Sec. 2202.031.  PER DIEM; REIMBURSEMENT FOR EXPENSES
 560-21  Sec. 2202.032.  ADVISORY BOARDS OR COMMITTEES
 560-22  Sec. 2202.033.  PUBLIC INTEREST INFORMATION AND COMPLAINTS
 560-23  Sec. 2202.034.  PUBLIC ACCESS AND TESTIMONY
 560-24  Sec. 2202.035.  ANNUAL REPORT
 560-25          (Sections 2202.036-2202.040 reserved for expansion)
 560-26                       SUBCHAPTER C.  PERSONNEL
 560-27  Sec. 2202.041.  EXECUTIVE DIRECTOR
  561-1  Sec. 2202.042.  GENERAL POWERS AND DUTIES OF
  561-2                    EXECUTIVE DIRECTOR
  561-3  Sec. 2202.043.  PERSONNEL
  561-4  Sec. 2202.044.  MERIT PAY
  561-5  Sec. 2202.045.  CAREER LADDER
  561-6  Sec. 2202.046.  BOND ON CERTAIN EMPLOYEES
  561-7  Sec. 2202.047.  EQUAL EMPLOYMENT OPPORTUNITY POLICY
  561-8          (Sections 2202.048-2202.060 reserved for expansion)
  561-9              SUBCHAPTER D.  POWERS AND DUTIES OF AGENCY
 561-10  Sec. 2202.061.  GENERAL POWERS AND DUTIES OF AGENCY
 561-11  Sec. 2202.062.  CONTRACTS
 561-12  Sec. 2202.063.  INFORMATION CLEARINGHOUSE
 561-13  Sec. 2202.064.  ACQUISITION OR IMPROVEMENT OF PROPERTY; RENT
 561-14                    PAYMENTS
 561-15  Sec. 2202.065.  CHARGES
 561-16  Sec. 2202.066.  FUND
 561-17          (Sections 2202.067-2202.080 reserved for expansion)
 561-18            SUBCHAPTER E.  FEDERAL PROPERTY ADMINISTRATION
 561-19  Sec. 2202.081.  DESIGNATED AGENCY
 561-20  Sec. 2202.082.  ACQUISITION, WAREHOUSING, AND DISTRIBUTION
 561-21                    OF FEDERAL PROPERTY
 561-22  Sec. 2202.083.  FEDERAL SURPLUS REAL PROPERTY
 561-23                CHAPTER 2202.  SURPLUS PROPERTY AGENCY
 561-24                   SUBCHAPTER A.  GENERAL PROVISIONS
 561-25        Sec. 2202.001.  DEFINITIONS.  In this chapter:
 561-26              (1)  "Agency" means the Texas Surplus Property Agency.
 561-27              (2)  "Board" means the governing board of the Texas
  562-1  Surplus Property Agency.
  562-2              (3)  "Federal Property and Administrative Services Act"
  562-3  means the Federal Property and Administrative Services Act of 1949
  562-4  (40 U.S.C. Section 484).  (New.)
  562-5        Sec. 2202.002.  SUNSET PROVISION.  The Texas Surplus Property
  562-6  Agency is subject to Chapter 325 (Texas Sunset Act).  Unless
  562-7  continued in existence as provided by that chapter, the agency is
  562-8  abolished and this chapter expires September 1, 2001.  (V.A.C.S.
  562-9  Art.  6252-6b, Sec. 1a.)
 562-10          (Sections 2202.003-2202.020 reserved for expansion)
 562-11               SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
 562-12        Sec. 2202.021.  COMPOSITION OF AGENCY.  The agency is
 562-13  composed of:
 562-14              (1)  the board;
 562-15              (2)  an executive director; and
 562-16              (3)  other officers and employees required to carry out
 562-17  this chapter effectively.  (V.A.C.S. Art. 6252-6b, Sec. 1(a).)
 562-18        Sec. 2202.022.  COMPOSITION OF BOARD.  The board is composed
 562-19  of:
 562-20              (1)  the presiding officer of the General Services
 562-21  Commission or the officer's designated representative; and
 562-22              (2)  nine representatives of the public appointed by
 562-23  the governor with the advice and consent of the senate.  (V.A.C.S.
 562-24  Art. 6252-6b, Sec. 1(b) (part).)
 562-25        Sec. 2202.023.  APPOINTMENTS.  Appointments to the board
 562-26  shall be made without regard to the race, color, disability, sex,
 562-27  religion, age, or national origin of the appointees.  (V.A.C.S.
  563-1  Art. 6252-6b, Sec. 1(b) (part).)
  563-2        Sec. 2202.024.  ELIGIBILITY.  (a)  An individual appointed to
  563-3  the board must be an outstanding resident of this state who is
  563-4  knowledgeable in property management.
  563-5        (b)  An individual is not eligible for appointment as a
  563-6  public member of the board if the individual or the individual's
  563-7  spouse:
  563-8              (1)  is employed by or participates in the management
  563-9  of a business entity or other organization that receives property
 563-10  from the agency;
 563-11              (2)  owns or controls, directly or indirectly, more
 563-12  than a 10 percent interest in an organization that receives
 563-13  property from the agency; or
 563-14              (3)  uses or receives a substantial amount of tangible
 563-15  goods, services, or funds from the agency, other than compensation
 563-16  or reimbursement authorized by law for board membership,
 563-17  attendance, or expenses.
 563-18        (c)  A nonelective state officer or employee may be appointed
 563-19  to the board if serving as a board member does not conflict with
 563-20  holding the original office or position for which the officer or
 563-21  employee receives compensation.  (V.A.C.S. Art. 6252-6b, Secs. 1(b)
 563-22  (part), (d), (f).)
 563-23        Sec. 2202.025.  CONFLICTS OF INTEREST.  (a)  An individual
 563-24  may not serve as a member of the board or act as the general
 563-25  counsel to the board if the individual is required to register as a
 563-26  lobbyist under Chapter 305 because of the individual's activities
 563-27  for compensation on behalf of a profession related to the operation
  564-1  of the board.
  564-2        (b)  An officer, employee, or paid consultant of a Texas
  564-3  trade association in surplus property management may not be a board
  564-4  member or an agency employee who is exempt from the state's
  564-5  position classification plan or is compensated at or above the
  564-6  amount prescribed by the General Appropriations Act for step 1,
  564-7  salary group 17, of the position classification salary schedule.
  564-8        (c)  An individual who is the spouse of an officer, manager,
  564-9  or paid consultant of a Texas trade association in surplus property
 564-10  management may not be a board member and may not be an agency
 564-11  employee who is exempt from the state's position classification
 564-12  plan or is compensated at or above the amount prescribed by the
 564-13  General Appropriations Act for step 1, salary group 17, of the
 564-14  position classification salary schedule.
 564-15        (d)  For the purposes of this section, a Texas trade
 564-16  association is a nonprofit, cooperative, and voluntarily joined
 564-17  association of business or professional competitors in this state
 564-18  designed to assist its members and its industry or profession in
 564-19  dealing with mutual business or professional problems and in
 564-20  promoting their common interest.  (V.A.C.S. Art. 6252-6b, Sec.
 564-21  1b.)
 564-22        Sec. 2202.026.  INFORMATION ABOUT QUALIFICATIONS AND
 564-23  STANDARDS OF CONDUCT.  The board shall provide to its members and
 564-24  agency employees, as often as necessary, information regarding
 564-25  their qualifications for office or employment under this chapter
 564-26  and their responsibilities under applicable laws relating to
 564-27  standards of conduct for state officers or employees.  (V.A.C.S.
  565-1  Art. 6252-6b, Sec. 3a(c).)
  565-2        Sec. 2202.027.  REMOVAL OF BOARD MEMBERS.  (a)  It is a
  565-3  ground for removal of an appointed member from the board if the
  565-4  member:
  565-5              (1)  does not have at the time of appointment the
  565-6  qualifications required by Section 2202.024(b);
  565-7              (2)  does not maintain during service on the board the
  565-8  qualifications required by Section 2202.024(b);
  565-9              (3)  violates a prohibition established by Section
 565-10  2202.025;
 565-11              (4)  cannot discharge because of illness or disability
 565-12  the member's duties for a substantial part of the term for which
 565-13  the member is appointed; or
 565-14              (5)  is absent from more than half of the regularly
 565-15  scheduled board meetings that the member is eligible to attend
 565-16  during a calendar year unless the absence is excused by majority
 565-17  vote of the board.
 565-18        (b)  The validity of an action of the board is not affected
 565-19  by the fact that it is taken when a ground for removal of a board
 565-20  member exists.
 565-21        (c)  If the executive director has knowledge that a potential
 565-22  ground for removal exists, the executive director shall notify the
 565-23  presiding officer of the board of the ground.  The presiding
 565-24  officer shall then notify the governor that a potential ground for
 565-25  removal exists.  (V.A.C.S. Art. 6252-6b, Sec. 1c.)
 565-26        Sec. 2202.028.  TERMS.  Public board members serve for
 565-27  staggered six-year terms with the terms of three members expiring
  566-1  February 1 of each odd-numbered year.  (V.A.C.S.  Art. 6252-6b,
  566-2  Sec. 1(c) (part).)
  566-3        Sec. 2202.029.  VACANCY.  The governor by appointment shall
  566-4  fill the unexpired term of a vacancy on the board.  (V.A.C.S.
  566-5  Art. 6252-6b, Sec. 1(c) (part).)
  566-6        Sec. 2202.030.  PRESIDING OFFICER; MEETINGS.  (a)  The
  566-7  governor shall designate a board member as presiding officer to
  566-8  serve in that position at the pleasure of the governor.
  566-9        (b)  The board shall meet quarterly in regular session and at
 566-10  other times at the call of the presiding officer when necessary to
 566-11  transact agency business.  (V.A.C.S. Art. 6252-6b, Secs. 1(e),
 566-12  (g).)
 566-13        Sec. 2202.031.  PER DIEM; REIMBURSEMENT FOR EXPENSES.  A
 566-14  board member is entitled to receive per diem compensation for each
 566-15  day the member performs an official duty and reimbursement for
 566-16  actual and necessary expenses incurred in discharging an official
 566-17  duty, as provided by the General Appropriations Act.  (V.A.C.S.
 566-18  Art. 6252-6b, Sec. 1(h).)
 566-19        Sec. 2202.032.  ADVISORY BOARDS OR COMMITTEES.  The agency
 566-20  may appoint advisory boards and committees necessary and suitable
 566-21  to administer this chapter.  (V.A.C.S. Art. 6252-6b, Sec. 4(i)
 566-22  (part).)
 566-23        Sec. 2202.033.  PUBLIC INTEREST INFORMATION AND COMPLAINTS.
 566-24  (a)  The board shall prepare information of public interest
 566-25  describing the functions of the board and the agency and the
 566-26  board's procedures by which complaints are filed with and resolved
 566-27  by the board.  The board shall make the information available to
  567-1  the public and appropriate state agencies.
  567-2        (b)  The board by rule shall establish methods by which
  567-3  consumers and service recipients are notified of the name, mailing
  567-4  address, and telephone number of the agency for directing
  567-5  complaints to the board.
  567-6        (c)  The agency shall keep an information file about each
  567-7  complaint filed with the agency that the agency has authority to
  567-8  resolve.
  567-9        (d)  If a written complaint is filed with the agency that the
 567-10  agency has authority to resolve, the agency, at least quarterly and
 567-11  until the final disposition of the complaint, shall notify parties
 567-12  to the complaint of the status of the complaint unless the notice
 567-13  would jeopardize an undercover investigation.  (V.A.C.S. Art.
 567-14  6252-6b, Secs. 3c(a), (b); 3d.)
 567-15        Sec. 2202.034.  PUBLIC ACCESS AND TESTIMONY.  (a)  The agency
 567-16  shall prepare and maintain a written plan that describes how an
 567-17  individual who does not speak English or who has a physical,
 567-18  mental, or developmental disability can be provided reasonable
 567-19  access to the agency's programs.
 567-20        (b)  The board shall develop and implement policies that
 567-21  provide the public with a reasonable opportunity to appear before
 567-22  the board and to speak on any issue under the jurisdiction of the
 567-23  board.  (V.A.C.S. Art. 6252-6b, Secs. 3c(c), (d).)
 567-24        Sec. 2202.035.  ANNUAL REPORT.  (a)  The board shall file
 567-25  annually with the governor and the presiding officer of each house
 567-26  of the legislature a complete and detailed written report
 567-27  accounting for all funds received and disbursed by the agency
  568-1  during the proceeding fiscal year.
  568-2        (b)  The annual report must be in the form and reported in
  568-3  the time provided by the General Appropriations Act.  (V.A.C.S.
  568-4  Art. 6252-6b, Sec. 3b.)
  568-5          (Sections 2202.036-2202.040 reserved for expansion)
  568-6                       SUBCHAPTER C.  PERSONNEL
  568-7        Sec. 2202.041.  EXECUTIVE DIRECTOR.  (a)  The board shall
  568-8  appoint the executive director, to be selected according to
  568-9  education, training, experience, and demonstrated ability.
 568-10        (b)  The executive director serves at the pleasure of the
 568-11  board.
 568-12        (c)  The executive director shall act as the board's
 568-13  secretary and the agency's chief administrative officer.
 568-14        (d)  The executive director shall administer this chapter
 568-15  under operational policies established by the board.  (V.A.C.S.
 568-16  Art. 6252-6b, Sec. 2.)
 568-17        Sec. 2202.042.  GENERAL POWERS AND DUTIES OF EXECUTIVE
 568-18  DIRECTOR.  (a)  The executive director, with board approval, shall:
 568-19              (1)  adopt rules governing the protection of records
 568-20  and confidential information;
 568-21              (2)  adopt rules establishing an accounting system to
 568-22  accurately reflect the agency's financial transactions;
 568-23              (3)  adopt other rules the director finds necessary to
 568-24  administer this chapter;
 568-25              (4)  make long-range and intermediate plans for the
 568-26  scope and development of surplus property management;
 568-27              (5)  make decisions relating to the allocation of
  569-1  resources in administering those plans; and
  569-2              (6)  establish appropriate subordinate administrative
  569-3  units.
  569-4        (b)  The executive director shall:
  569-5              (1)  appoint personnel, according to personnel policies
  569-6  adopted by the board, the director considers necessary for the
  569-7  efficient performance of the agency's functions;
  569-8              (2)  prepare and submit to the governor an annual
  569-9  report of activities and expenditures;
 569-10              (3)  certify for disbursement, in accordance with
 569-11  rules, funds available to administer this chapter; and
 569-12              (4)  take other action as the director considers
 569-13  necessary or appropriate to administer this chapter.
 569-14        (c)  The executive director, with board approval, may
 569-15  delegate to an officer or employee of the agency a power or duty of
 569-16  the executive director, other than rule making and appointing
 569-17  personnel, that the director finds necessary to administer this
 569-18  chapter.  (V.A.C.S. Art. 6252-6b, Secs. 3(a) (part), (b), (c), (d),
 569-19  (e), (f), (g), (h).)
 569-20        Sec. 2202.043.  PERSONNEL.  (a)  The agency may employ,
 569-21  compensate, and prescribe the duties of personnel, other than
 569-22  members of advisory boards and committees, necessary and suitable
 569-23  to administer this chapter.
 569-24        (b)  The executive director, with board approval, by rule
 569-25  shall adopt personnel standards.
 569-26        (c)  A personnel position may only be filled by an individual
 569-27  selected and appointed on a nonpartisan merit basis.
  570-1        (d)  The board shall develop and implement policies that
  570-2  clearly define the respective responsibilities of the board and the
  570-3  staff of the agency.  (V.A.C.S. Art. 6252-6b, Secs. 3(a) (part);
  570-4  3a(d); 4(i) (part).)
  570-5        Sec. 2202.044.  MERIT PAY.  The executive director or the
  570-6  executive director's designated representative shall develop a
  570-7  system of annual performance evaluations.  All merit pay for agency
  570-8  employees must be given under the system established under this
  570-9  section.  (V.A.C.S. Art. 6252-6b, Sec. 3a(a).)
 570-10        Sec. 2202.045.  CAREER LADDER.  The executive director or the
 570-11  executive director's designated representative shall develop an
 570-12  intra-agency career ladder program.  The program shall require
 570-13  intra-agency postings of all nonentry level positions concurrently
 570-14  with any public posting.  (V.A.C.S. Art. 6252-6b, Sec. 3a(b).)
 570-15        Sec. 2202.046.  BOND ON CERTAIN EMPLOYEES.  The executive
 570-16  director may bond an agency employee who handles money, signs
 570-17  checks, or receives or distributes property under this chapter.
 570-18  (V.A.C.S.  Art. 6252-6b, Sec. 3(i).)
 570-19        Sec. 2202.047.  EQUAL EMPLOYMENT OPPORTUNITY POLICY.  (a)
 570-20  The executive director or the executive director's  designated
 570-21  representative shall prepare and maintain a written policy
 570-22  statement to assure implementation of a program of equal employment
 570-23  opportunity under which all personnel transactions are made without
 570-24  regard to race, color, disability, sex, religion, age, or national
 570-25  origin.  The policy statement must include:
 570-26              (1)  personnel policies, including policies relating to
 570-27  recruitment, evaluation, selection, appointment, training, and
  571-1  promotion of personnel;
  571-2              (2)  a comprehensive analysis of the agency's work
  571-3  force that meets state and federal guidelines;
  571-4              (3)  procedures by which a determination can be made of
  571-5  significant underuse in the agency work force of all persons for
  571-6  whom state or federal guidelines encourage a more equitable
  571-7  balance; and
  571-8              (4)  reasonable methods to appropriately address those
  571-9  areas of significant underuse.
 571-10        (b)  A policy statement prepared under Subsection (a) must
 571-11  cover an annual period, be updated at least annually, and be filed
 571-12  with the governor's office.
 571-13        (c)  The governor's office shall deliver a biennial report to
 571-14  the legislature based on the information received under Subsection
 571-15  (b).  The report may be  made separately or as a part of other
 571-16  biennial reports made to the legislature.  (V.A.C.S. Arts. 6252-6b,
 571-17  Secs. 3a(e), (f), (g).)
 571-18          (Sections 2202.048-2202.060 reserved for expansion)
 571-19              SUBCHAPTER D.  POWERS AND DUTIES OF AGENCY
 571-20        Sec. 2202.061.  GENERAL POWERS AND DUTIES OF AGENCY.  (a)
 571-21  The agency shall:
 571-22              (1)  file a state plan of operation that complies with
 571-23  federal law and operate in accordance with the plan;
 571-24              (2)  take necessary action to meet the minimum
 571-25  standards for a state agency in accordance with the Federal
 571-26  Property and Administrative Services Act; and
 571-27              (3)  cooperate to the fullest extent consistent with
  572-1  this chapter.
  572-2        (b)  The agency may:
  572-3              (1)  make the necessary certifications and undertake
  572-4  necessary action, including an investigation;
  572-5              (2)  make expenditures or reports that may be required
  572-6  by federal law or regulation or that are otherwise necessary to
  572-7  provide for the proper and efficient management of the agency's
  572-8  functions;
  572-9              (3)  provide information and reports relating to the
 572-10  agency's activities that may be required by a federal agency or
 572-11  department; and
 572-12              (4)  adopt rules necessary for the efficient operation
 572-13  of its activities or as may be required by federal law or
 572-14  regulation.  (V.A.C.S. Art. 6252-6b, Secs. 4(e), (f), (k).)
 572-15        Sec. 2202.062.  CONTRACTS.  (a)  The agency may enter into an
 572-16  agreement, including:
 572-17              (1)  a cooperative agreement with a federal agency
 572-18  under Section 484(n) of the Federal Property and Administrative
 572-19  Services Act;
 572-20              (2)  an agreement with a state agency for surplus
 572-21  property of a state agency that will promote the administration of
 572-22  the Texas Surplus Property Agency's functions; or
 572-23              (3)  an agreement with a group or association of state
 572-24  agencies for surplus property that will promote the administration
 572-25  of the Texas Surplus Property Agency's functions.
 572-26        (b)  Articles 8 and 9 of the State Purchasing and General
 572-27  Services Act (Article 601b, Vernon's Texas Civil Statutes),
  573-1  relating to the responsibility and accounting for state property,
  573-2  do not apply to the agency in the acquisition or disposition of
  573-3  federal surplus property.  (V.A.C.S. Art. 6252-6b, Sec. 4(g).)
  573-4        Sec. 2202.063.  INFORMATION CLEARINGHOUSE.  (a)  The agency
  573-5  may act as an information clearinghouse for an entity or
  573-6  institution that may be eligible to acquire federal surplus
  573-7  property.
  573-8        (b)  The agency may assist, as necessary, the entity or
  573-9  institution to obtain federal surplus property.  (V.A.C.S. Art.
 573-10  6252-6b, Sec. 4(j).)
 573-11        Sec. 2202.064.  ACQUISITION OR IMPROVEMENT OF PROPERTY; RENT
 573-12  PAYMENTS.  The agency may:
 573-13              (1)  acquire and hold title or make capital
 573-14  improvements to real property, in accordance with Section 2202.065;
 573-15  or
 573-16              (2)  make an advance payment of rent for a distribution
 573-17  center, office space, or another facility that is required to carry
 573-18  out the agency's functions under this chapter.  (V.A.C.S. Art.
 573-19  6252-6b, Sec. 4(h).)
 573-20        Sec. 2202.065.  CHARGES.  (a)  The agency may collect a
 573-21  service charge for the agency's acquisition, warehousing,
 573-22  distribution, or transfer of property.
 573-23        (b)  The agency may not collect a charge for real property in
 573-24  an amount that is greater than the reasonable administrative cost
 573-25  the agency incurs in transferring the property.  (V.A.C.S. Art.
 573-26  6252-6b, Sec. 4(l) (part).)
 573-27        Sec. 2202.066.  FUND.  (a)  A charge collected under Section
  574-1  2202.065  shall be deposited in the state treasury to the credit of
  574-2  the surplus property service charge fund and  income earned on
  574-3  money in the surplus property service charge fund shall be credited
  574-4  to that fund.
  574-5        (b)  Money in the fund may be used only to carry out the
  574-6  functions of the agency.  (V.A.C.S. Art. 6252-6b, Secs. 4(l)
  574-7  (part), (m).)
  574-8          (Sections 2202.067-2202.080 reserved for expansion)
  574-9            SUBCHAPTER E.  FEDERAL PROPERTY ADMINISTRATION
 574-10        Sec. 2202.081.  DESIGNATED AGENCY.  The agency is the
 574-11  designated state agency under Section 484(j) of the Federal
 574-12  Property and Administrative Services Act.  (V.A.C.S. Art. 6252-6b,
 574-13  Sec. 4(a).)
 574-14        Sec. 2202.082.  ACQUISITION, WAREHOUSING, AND DISTRIBUTION OF
 574-15  FEDERAL PROPERTY.  The agency may:
 574-16              (1)  acquire and warehouse federal property allocated
 574-17  to the agency under the Federal Property and Administrative
 574-18  Services Act; and
 574-19              (2)  distribute the property to an entity or
 574-20  institution that meets the qualifications for eligibility for the
 574-21  property under the Federal Property and Administrative Services
 574-22  Act.  (V.A.C.S. Art. 6252-6b, Sec. 4(b).)
 574-23        Sec. 2202.083.  FEDERAL SURPLUS REAL PROPERTY.  The agency
 574-24  may:
 574-25              (1)  disseminate information and assist a potential
 574-26  applicant regarding the availability of federal surplus real
 574-27  property;
  575-1              (2)  assist in the processing of an application for
  575-2  acquisition of federal real property and related personal property
  575-3  under Section 484(k) of the Federal Property and Administrative
  575-4  Services Act;
  575-5              (3)  assist in assuring use of the property; and
  575-6              (4)  engage in an activity relating to the use of
  575-7  federal surplus property by another state agency, institution, or
  575-8  organization engaging in or receiving assistance under a federal
  575-9  program.  (V.A.C.S. Art. 6252-6b, Secs. 4(c), (d).)
 575-10                 CHAPTER 2203.  USE OF STATE PROPERTY
 575-11  Sec. 2203.001.  REPORTING USE OF STATE VEHICLE; PENALTIES
 575-12  Sec. 2203.002.  STATE POSTAGE METERS
 575-13  Sec. 2203.003.  STATE PROPERTY UNDER CONTROL OF THE DAUGHTERS OF
 575-14                    THE CONFEDERACY, TEXAS DIVISION, AND THE
 575-15                    DAUGHTERS OF THE REPUBLIC OF TEXAS
 575-16                 CHAPTER 2203.  USE OF STATE PROPERTY
 575-17        Sec. 2203.001.  REPORTING USE OF STATE VEHICLE; PENALTIES.
 575-18  (a)  A person who uses a state-owned automobile or truck shall, for
 575-19  each day that the vehicle is used, submit a separate written report
 575-20  of the use to the head of the state agency, including a department,
 575-21  institution, board, or commission of the state, in charge of the
 575-22  vehicle.
 575-23        (b)  The report must be made daily on a form prescribed by
 575-24  the comptroller.
 575-25        (c)  A report filed under this section must show:
 575-26              (1)  the purpose for which the vehicle was used;
 575-27              (2)  the mileage traveled;
  576-1              (3)  the amounts of gasoline and oil consumed;
  576-2              (4)  the passengers carried; and
  576-3              (5)  other information necessary to a proper record of
  576-4  the use of the vehicle.
  576-5        (d)  A report filed under this section is an official state
  576-6  record and is subject to inspection by a state official who is
  576-7  authorized to audit or inspect claims, accounts, or records of a
  576-8  state agency.
  576-9        (e)  A person commits an offense if the person does not file
 576-10  a report as required by this section on or before the 10th day
 576-11  after the date on which the person uses the vehicle.  An offense
 576-12  under this subsection is punishable by a fine of not less than $5
 576-13  nor more than $100.  (V.A.C.S. Art. 6252-21, Secs. 1 and 2.)
 576-14        Sec. 2203.002.  STATE POSTAGE METERS.  (a)  A state
 576-15  department, board, commission, or educational institution that
 576-16  installs a postage meter shall place on the machine an imprint
 576-17  plate stating that:
 576-18              (1)  the mail carried by the postage is official state
 576-19  mail; and
 576-20              (2)  there is a penalty for the unlawful use of the
 576-21  postage meter for a private purpose.
 576-22        (b)  A state department, board, commission, or educational
 576-23  institution shall pay for the imprint plate and its installation
 576-24  from the state department's, board's, commission's, or educational
 576-25  institution's appropriation for postage and contingent expenses.
 576-26  (V.A.C.S. Art. 6252-22.)
 576-27        Sec. 2203.003.  STATE PROPERTY UNDER CONTROL OF THE DAUGHTERS
  577-1  OF THE CONFEDERACY, TEXAS DIVISION, AND THE DAUGHTERS OF THE
  577-2  REPUBLIC OF TEXAS.  (a)  The Daughters of the Confederacy, Texas
  577-3  Division, and the Daughters of the Republic of Texas each may
  577-4  charge admission to state property over which each organization has
  577-5  custody or control.  This subsection does not apply to the Alamo.
  577-6        (b)  An organization that charges admission under this
  577-7  section shall set the fee in an amount that it determines serves
  577-8  the best interest of the state and the public.
  577-9        (c)  The organization may maintain and operate, or may
 577-10  contract with another person for the operation of, a concession on
 577-11  state property under its control.  The concession may be operated
 577-12  in any manner the organization considers necessary for the best
 577-13  interest of the state and the public.
 577-14        (d)  The organization shall hold separately in trust all
 577-15  admission fees and profits from the operation of concessions at
 577-16  each property.  The money may be spent only to maintain and repair
 577-17  the state property and furnishings at the property at which the
 577-18  money is received.  (V.A.C.S. Art. 601h.)
 577-19   CHAPTER 2204.  ACQUISITION OF LAND FOR STATE AND FEDERAL PURPOSES
 577-20              SUBCHAPTER A.  ACQUISITION OF LAND BY STATE
 577-21  Sec. 2204.001.  ACQUISITION OF LAND BY STATE
 577-22          (Sections 2204.002-2204.100 reserved for expansion)
 577-23     SUBCHAPTER B.  GENERAL PROVISIONS FOR ACQUISITION OF LAND AND
 577-24                JURISDICTION OVER LAND BY UNITED STATES
 577-25  Sec. 2204.101.  CONSENT TO UNITED STATES TO ACQUIRE LAND
 577-26  Sec. 2204.102.  SALE OF STATE LAND TO UNITED STATES
 577-27  Sec. 2204.103.  CESSION OF JURISDICTION TO UNITED STATES
  578-1          (Sections 2204.104-2204.200 reserved for expansion)
  578-2            SUBCHAPTER C.  CONVEYANCE OF STATE HIGHWAY LAND
  578-3                TO UNITED STATES FOR MILITARY PURPOSES
  578-4  Sec. 2204.201.  APPLICATION OF SUBCHAPTER
  578-5  Sec. 2204.202.  CONVEYANCE TO UNITED STATES
  578-6  Sec. 2204.203.  FEE SIMPLE NOT OWNED BY STATE
  578-7          (Sections 2204.204-2204.300 reserved for expansion)
  578-8    SUBCHAPTER D.  STATE GRANTS TO UNITED STATES FOR FLOOD CONTROL
  578-9      IN BED AND BANKS OF PECOS AND DEVILS RIVERS AND RIO GRANDE
 578-10  Sec. 2204.301.  GRANT TO UNITED STATES
 578-11  Sec. 2204.302.  APPLICATION BY UNITED STATES
 578-12  Sec. 2204.303.  MINERAL RESERVATION REQUIRED
 578-13  Sec. 2204.304.  REVERSION TO STATE ON NONUSE
 578-14  Sec. 2204.305.  PRIVATE PROPERTY RIGHTS NOT AFFECTED
 578-15          (Sections 2204.306-2204.400 reserved for expansion)
 578-16   SUBCHAPTER E.  STATE GRANTS TO UNITED STATES IN BED AND BANKS OF
 578-17                RIO GRANDE TO IMPLEMENT BOUNDARY TREATY
 578-18  Sec. 2204.401.  GRANT TO UNITED STATES
 578-19  Sec. 2204.402.  APPLICATION BY UNITED STATES
 578-20  Sec. 2204.403.  MINERAL RESERVATION REQUIRED
 578-21  Sec. 2204.404.  PRIVATE PROPERTY RIGHTS NOT AFFECTED
 578-22          (Sections 2204.405-2204.500 reserved for expansion)
 578-23         SUBCHAPTER F.  CONSENT TO FEDERAL ACQUISITION OF LAND
 578-24                FOR FLOOD CONTROL IN TRINITY WATERSHED
 578-25  Sec. 2204.501.  APPLICATION OF SUBCHAPTER
 578-26  Sec. 2204.502.  CONSENT OF STATE
 578-27  Sec. 2204.503.  CERTAIN RESERVATIONS PERMITTED
  579-1  Sec. 2204.504.  PAYMENTS IN LIEU OF TAXES
  579-2  Sec. 2204.505.  CONCURRENT JURISDICTION RETAINED FOR
  579-3                    CERTAIN PURPOSES
  579-4   CHAPTER 2204.  ACQUISITION OF LAND FOR STATE AND FEDERAL PURPOSES
  579-5              SUBCHAPTER A.  ACQUISITION OF LAND BY STATE
  579-6        Sec. 2204.001.  ACQUISITION OF LAND BY STATE.  (a)  The
  579-7  governor may purchase land or the right to use land that is
  579-8  required by this state for any type of public use.
  579-9        (b)  If the governor fails to agree with the owner of the
 579-10  land on the price for the land or the use of the land, the land may
 579-11  be condemned for public use in the name of this state.  On the
 579-12  direction of the governor, condemnation proceedings shall be
 579-13  instituted against the owner of the land by the attorney general or
 579-14  the district or county attorney acting under the direction of the
 579-15  attorney general.
 579-16        (c)  If the governor determines that the amount of damages
 579-17  awarded in the condemnation proceedings under Subsection (b) is
 579-18  excessive, the state may not pay the damages.  In that event, the
 579-19  state shall pay the costs of the proceedings and may not take
 579-20  further action.  (V.A.C.S. Art. 5240.)
 579-21          (Sections 2204.002-2204.100 reserved for expansion)
 579-22       SUBCHAPTER B.  GENERAL PROVISIONS FOR ACQUISITION OF LAND
 579-23              AND JURISDICTION OVER LAND BY UNITED STATES
 579-24        Sec. 2204.101.  CONSENT TO UNITED STATES TO ACQUIRE LAND.
 579-25  (a)  The legislature consents to the purchase or acquisition by the
 579-26  United States, including acquisition by condemnation, of land in
 579-27  this state made in accordance with this subchapter.
  580-1        (b)  The United States may purchase, acquire, hold, own,
  580-2  occupy, and possess land in this state that it considers expedient
  580-3  and that it seeks to occupy as a site:
  580-4              (1)  on which to erect and maintain a lighthouse, fort,
  580-5  military station, magazine, arsenal, dockyard, customhouse, post
  580-6  office, or other necessary public building; or
  580-7              (2)  for erecting a lock or dam, straightening a stream
  580-8  by making a cutoff, building a levee, or erecting any other
  580-9  structure or improvement that may become necessary for developing
 580-10  or improving a waterway, river, or harbor of this state.
 580-11        (c)  During condemnation proceedings for the acquisition of
 580-12  land by the United States under this section, the United States may
 580-13  occupy the land and construct improvements on the land immediately
 580-14  on the filing of the award of the condemnation commissioners with
 580-15  the condemnation court, without awaiting the decision of the court,
 580-16  if the United States deposits an amount equal to the amount of the
 580-17  award of the commissioners plus the amount of all costs adjudged
 580-18  against the United States.  (V.A.C.S. Arts. 5242, 5243, 5244.)
 580-19        Sec. 2204.102.  SALE OF STATE LAND TO UNITED STATES.  (a)
 580-20  The governor may sell to the United States land owned by this state
 580-21  that the United States desires to acquire for a purpose specified
 580-22  by Section 2204.101.
 580-23        (b)  On payment of the purchase money for the land into the
 580-24  state treasury, the land commissioner, on the order of the
 580-25  governor, shall issue a patent for that land to the United States
 580-26  in the same manner that other patents are issued.  (V.A.C.S. Art.
 580-27  5245.)
  581-1        Sec. 2204.103.  CESSION OF JURISDICTION TO UNITED STATES.
  581-2  (a)  On written application of the United States to the governor,
  581-3  the governor, in the name and on behalf of this state, may cede to
  581-4  the United States exclusive jurisdiction, subject to Subsection
  581-5  (c), over land acquired by the United States under this subchapter
  581-6  over which the United States desires to acquire constitutional
  581-7  jurisdiction for a purpose provided by Section 2204.101.
  581-8        (b)  An application for cession must be:
  581-9              (1)  accompanied by proper evidence of the acquisition
 581-10  of the land;
 581-11              (2)  authenticated and recorded; and
 581-12              (3)  include or have attached an accurate description
 581-13  by metes and bounds of the land for which cession is sought.
 581-14        (c)  A cession of jurisdiction may not be made under this
 581-15  section except on the express condition, which must be included in
 581-16  the instrument of cession, that this state retains concurrent
 581-17  jurisdiction with the United States over every portion of the land
 581-18  ceded so that all civil or criminal process issued under the
 581-19  authority of this state or a court or judicial officer of this
 581-20  state may be executed by the proper officers of this state on any
 581-21  person amenable to service of process within the limits of the land
 581-22  to be ceded, in the same manner and to the same effect as if the
 581-23  cession had not occurred.  (V.A.C.S.  Art. 5247.)
 581-24          (Sections 2204.104-2204.200 reserved for expansion)
 581-25            SUBCHAPTER C.  CONVEYANCE OF STATE HIGHWAY LAND
 581-26                TO UNITED STATES FOR MILITARY PURPOSES
 581-27        Sec. 2204.201.  APPLICATION OF SUBCHAPTER.  This subchapter
  582-1  applies only to land or an interest in land owned by this state
  582-2  that is under the control of the Texas Department of
  582-3  Transportation.  (V.A.C.S. Art. 5248d-1, Sec. 1 (part).)
  582-4        Sec. 2204.202.  CONVEYANCE TO UNITED STATES.  (a)  The
  582-5  governor, on the recommendation of the Texas Transportation
  582-6  Commission or on the request of the United States supported by the
  582-7  recommendation of the Texas Transportation Commission, may convey
  582-8  to the United States an easement or other interest in land that:
  582-9              (1)  is located near a federally owned or operated
 582-10  military installation or facility; and
 582-11              (2)  may be necessary for the construction, operation,
 582-12  and maintenance of the military installation or facility.
 582-13        (b)  The conveyance may be made without monetary
 582-14  consideration or for a consideration determined by the Texas
 582-15  Transportation Commission.  (V.A.C.S. Art. 5248d-1, Sec. 1 (part).)
 582-16        Sec. 2204.203.  FEE SIMPLE NOT OWNED BY STATE.  For land for
 582-17  which the fee simple title is not vested in this state and for
 582-18  which the owner of the fee executes an easement to the United
 582-19  States for the purposes provided by Section 2204.202(a), the
 582-20  governor on the recommendation of the Texas Transportation
 582-21  Commission may join in and assent to the easement by the same or a
 582-22  separate instrument.  (V.A.C.S. Art. 5248d-1, Sec. 2.)
 582-23          (Sections 2204.204-2204.300 reserved for expansion)
 582-24    SUBCHAPTER D.  STATE GRANTS TO UNITED STATES FOR FLOOD CONTROL
 582-25      IN BED AND BANKS OF PECOS AND DEVILS RIVERS AND RIO GRANDE
 582-26        Sec. 2204.301.  GRANT TO UNITED STATES.  The governor may
 582-27  grant to the United States in accordance with this subchapter those
  583-1  portions of the beds and banks of the Pecos and Devils rivers in
  583-2  Val Verde County and of the Rio Grande in Brewster, Cameron,
  583-3  Hidalgo, Hudspeth, Jeff Davis, Kinney, Maverick, Presidio, Starr,
  583-4  Terrell, Val Verde, Webb, and Zapata counties:
  583-5              (1)  for which title is vested in this state; and
  583-6              (2)  that may be necessary or expedient in the
  583-7  construction and use of the storage and flood control dams and
  583-8  their resultant reservoirs, diversion works, and appurtenances
  583-9  provided for in the Treaty Relating to the Utilization of the
 583-10  Waters of the Colorado and Tijuana Rivers, and of the Rio Grande
 583-11  (Rio Bravo) from Fort Quitman, Texas, to the Gulf of Mexico,
 583-12  concluded by the United States and the United Mexican States on
 583-13  February 3, 1944.  (V.A.C.S. Art. 5248g, Secs. 1, 2 (part).)
 583-14        Sec. 2204.302.  APPLICATION BY UNITED STATES.  On application
 583-15  to the governor by the United States Commissioner, International
 583-16  Boundary and Water Commission, United States and Mexico, describing
 583-17  the area necessary or expedient for the purposes described in
 583-18  Section 2204.301, the governor shall issue a grant for and on
 583-19  behalf of this state to the United States conveying to the United
 583-20  States the area described in the application.  (V.A.C.S. Art.
 583-21  5248g, Sec. 2 (part).)
 583-22        Sec. 2204.303.  MINERAL RESERVATION REQUIRED.  A grant under
 583-23  this subchapter must reserve to this state all minerals except
 583-24  rock, sand, and gravel needed by the United States in the operation
 583-25  or construction by the United States or its agents of any of the
 583-26  works described by Section 2204.301.  The reservation must provide
 583-27  that:
  584-1              (1)  the minerals reserved to this state may not be
  584-2  explored for, developed, or produced in a manner that at any time
  584-3  will prevent or interfere with the operation or construction of
  584-4  those works; and
  584-5              (2)  before exploring for or developing reserved
  584-6  minerals, this state must obtain the written consent of the United
  584-7  States Section, International Boundary and Water Commission, United
  584-8  States and Mexico, or its successor agency, as to the proposed area
  584-9  sought to be explored or developed by this state, including the
 584-10  location of and production facilities for oil wells, gas wells, or
 584-11  oil and gas wells.  (V.A.C.S. Art. 5248g, Sec. 2 (part).)
 584-12        Sec. 2204.304.  REVERSION TO STATE ON NONUSE.  A grant under
 584-13  this subchapter must contain a reservation providing that if any
 584-14  part of the property granted ceases to be used for the purposes set
 584-15  out in Section 2204.301 for a continuous period of five years, that
 584-16  part shall immediately and automatically revert to this state at
 584-17  the end of that period.  (V.A.C.S. Art. 5248g, Sec. 2 (part).)
 584-18        Sec. 2204.305.  PRIVATE PROPERTY RIGHTS NOT AFFECTED.  This
 584-19  subchapter does not divest, limit, or otherwise affect the property
 584-20  rights, including riparian rights, under the laws of this state of
 584-21  the private owners of land abutting a portion of a river to which
 584-22  this subchapter applies.  (V.A.C.S. Art. 5248g, Sec. 2 (part).)
 584-23          (Sections 2204.306-2204.400 reserved for expansion)
 584-24     SUBCHAPTER E.  STATE GRANTS TO UNITED STATES IN BED AND BANKS
 584-25              OF RIO GRANDE TO IMPLEMENT BOUNDARY TREATY
 584-26        Sec. 2204.401.  GRANT TO UNITED STATES.  The governor may
 584-27  grant to the United States in accordance with this subchapter those
  585-1  portions of, or easements on, the beds and banks of the Rio Grande
  585-2  in Brewster, Cameron, Hidalgo, Hudspeth, Jeff Davis, Kinney,
  585-3  Maverick, Presidio, Starr, Terrell, Val Verde, Webb, and Zapata
  585-4  counties:
  585-5              (1)  for which title is vested in this state; and
  585-6              (2)  that may be necessary or expedient to facilitate
  585-7  the accomplishment of projects for the following purposes, as
  585-8  provided for in the Treaty to Resolve Pending Boundary Differences
  585-9  and Maintain the Rio Grande and Colorado River as the International
 585-10  Boundary between the United States of America and the United
 585-11  Mexican States, entered into force April 18, 1972, and the
 585-12  American-Mexican Boundary Treaty Act of 1972 (22 U.S.C. Sections
 585-13  277d-34 et seq.):
 585-14                    (A)  the relocation and rectification of the Rio
 585-15  Grande and construction of works for flood control in the
 585-16  Presidio-Ojinaga Valley;
 585-17                    (B)  the rectification of and channel
 585-18  stabilization on the Rio Grande between Fort Quitman in Hudspeth
 585-19  County and Haciendita in Presidio County;
 585-20                    (C)  the relocation and rectification of the Rio
 585-21  Grande upstream from Hidalgo-Reynosa in Hidalgo County;
 585-22                    (D)  the preservation of the Rio Grande as the
 585-23  boundary by prohibiting the construction of works that may cause
 585-24  deflection or obstruction of the normal flow or floodflows of the
 585-25  Rio Grande; or
 585-26                    (E)  other channel relocations and rectifications
 585-27  or boundary adjustments approved by the governments of the United
  586-1  States and the United Mexican States.  (V.A.C.S. Art. 5248g-1,
  586-2  Secs. 1, 4 (part).)
  586-3        Sec. 2204.402.  APPLICATION BY UNITED STATES.  On application
  586-4  to the governor by the United States Commissioner, International
  586-5  Boundary and Water Commission, United States and Mexico, describing
  586-6  the area and the interest in that area necessary or expedient for
  586-7  the purposes described in Section 2204.401, the governor shall
  586-8  issue a grant for and on behalf of this state to the United States
  586-9  conveying to the United States the area and interest described in
 586-10  the application.  (V.A.C.S. Art.  5248g-1, Sec. 2 (part).)
 586-11        Sec. 2204.403.  MINERAL RESERVATION REQUIRED.  (a)  A grant
 586-12  under this subchapter must reserve to this state all minerals
 586-13  except rock, sand, and gravel needed by the United States in the
 586-14  operation or construction by the United States or its agents of any
 586-15  of the works described by Section 2204.401.  The reservation must
 586-16  provide that:
 586-17              (1)  the minerals reserved to this state may not be
 586-18  explored for, developed, or produced in a manner that will at any
 586-19  time prevent or interfere with the operation or construction of
 586-20  those works; and
 586-21              (2)  before exploring for or developing reserved
 586-22  minerals, this state must obtain the written consent of the United
 586-23  States Section, International Boundary and Water Commission, United
 586-24  States and Mexico, or its successor agency, as to the proposed area
 586-25  sought to be explored or developed by this state, including the
 586-26  location of and production facilities for oil wells, gas wells, or
 586-27  oil and gas wells or other minerals.
  587-1        (b)  In a grant to the United States of fee title to the bed
  587-2  and banks of the Rio Grande for the relocation and rectification of
  587-3  the existing channel under the treaty that is to cause a portion of
  587-4  the channel to be in the territorial limits of the United Mexican
  587-5  States after its relocation and rectification, the reservation is
  587-6  required only for the portion of the channel that will remain in
  587-7  the territorial limits of the United States on completion of the
  587-8  relocation and rectification project.  (V.A.C.S. Art. 5248g-1,
  587-9  Secs. 2 (part), 3.)
 587-10        Sec. 2204.404.  PRIVATE PROPERTY RIGHTS NOT AFFECTED.  This
 587-11  subchapter does not divest, limit, or otherwise affect the property
 587-12  rights, including riparian rights, under the laws of this state of
 587-13  the private owners of land abutting a portion of the Rio Grande to
 587-14  which this subchapter applies.  (V.A.C.S. Art. 5248g-1, Sec. 4
 587-15  (part).)
 587-16          (Sections 2204.405-2204.500 reserved for expansion)
 587-17         SUBCHAPTER F.  CONSENT TO FEDERAL ACQUISITION OF LAND
 587-18                FOR FLOOD CONTROL IN TRINITY WATERSHED
 587-19        Sec. 2204.501.  APPLICATION OF SUBCHAPTER.  This subchapter
 587-20  applies only to land in:
 587-21              (1)  Denton, Jack, Montague, Parker, and Wise counties;
 587-22  and
 587-23              (2)  that portion of the Trinity Watershed located in
 587-24  Collin, Cooke, Dallas, Fannin, Grayson, Hunt, Kaufman, Rockwall,
 587-25  Tarrant, or Van Zandt County.  (V.A.C.S. Art. 5248h, Sec. 2 (part);
 587-26  Art. 5248i, Sec. 2 (part).)
 587-27        Sec. 2204.502.  CONSENT OF STATE.  (a)  This state consents
  588-1  to the acquisition by the United States by purchase, gift, or
  588-2  condemnation with adequate compensation of land or any right or
  588-3  interest in land in this state that the United States determines is
  588-4  needed for programs and works of improvement for runoff and
  588-5  water-flow retardation, soil erosion prevention, or other
  588-6  flood-control purposes in this state.
  588-7        (b)  This state does not consent to the acquisition of land
  588-8  under this subchapter by condemnation unless the apparent owner of
  588-9  the land consents to the acquisition.  (V.A.C.S. Art. 5248h, Sec. 1
 588-10  (part); Art. 5248i, Sec. 1 (part).)
 588-11        Sec. 2204.503.  CERTAIN RESERVATIONS PERMITTED.  The United
 588-12  States may acquire land under this subchapter subject to
 588-13  reservations of rights-of-way, timber, minerals, or easements.
 588-14  (V.A.C.S.  Art. 5248h, Sec. 1 (part); Art. 5248i, Sec. 1 (part).)
 588-15        Sec. 2204.504.  PAYMENTS IN LIEU OF TAXES.  The United States
 588-16  must remit an amount equal to one percent of the purchase price of
 588-17  acquired land each year in lieu of taxes to the counties and school
 588-18  districts in which the land is located.  (V.A.C.S. Art. 5248h,
 588-19  Sec. 1 (part); Art. 5248i, Sec. 1 (part).)
 588-20        Sec. 2204.505.  CONCURRENT JURISDICTION RETAINED FOR CERTAIN
 588-21  PURPOSES.  This state retains concurrent jurisdiction with the
 588-22  United States in and over acquired land so that civil process in
 588-23  all cases and criminal process issued under the authority of this
 588-24  state against a person charged with the commission of a crime in or
 588-25  outside of the territory of the land may be executed on that land
 588-26  in the same manner as if this subchapter did not exist.  (V.A.C.S.
 588-27  Art. 5248h, Sec. 1 (part); Art. 5248i, Sec. 1 (part).)
  589-1                    CHAPTER 2205.  AIRCRAFT POOLING
  589-2             SUBCHAPTER A.  STATE AIRCRAFT POOLING BOARD;
  589-3                          GENERAL PROVISIONS
  589-4  Sec. 2205.001.  SHORT TITLE
  589-5  Sec. 2205.002.  DEFINITIONS
  589-6  Sec. 2205.003.  ESTABLISHMENT
  589-7  Sec. 2205.004.  COMPOSITION OF BOARD; TERMS
  589-8  Sec. 2205.005.  APPOINTMENTS
  589-9  Sec. 2205.006.  ELIGIBILITY
 589-10  Sec. 2205.007.  CONFLICTS OF INTEREST
 589-11  Sec. 2205.0071. TEMPORARY PROVISION
 589-12  Sec. 2205.008.  INFORMATION ABOUT QUALIFICATIONS AND
 589-13                    STANDARDS OF CONDUCT
 589-14  Sec. 2205.009.  REMOVAL
 589-15  Sec. 2205.010.  PRESIDING OFFICER; MEETINGS; QUORUM
 589-16  Sec. 2205.011.  PUBLIC ACCESS AND TESTIMONY
 589-17  Sec. 2205.012.  STAFF
 589-18  Sec. 2205.013.  MERIT PAY
 589-19  Sec. 2205.014.  CAREER LADDER
 589-20  Sec. 2205.015.  EQUAL EMPLOYMENT OPPORTUNITY
 589-21  Sec. 2205.016.  ANNUAL REPORT
 589-22  Sec. 2205.017.  SUNSET PROVISION
 589-23        (Sections 2205.018 to 2205.030 reserved for expansion)
 589-24                     SUBCHAPTER B.  STATE AIRCRAFT
 589-25  Sec. 2205.031.  APPLICABILITY OF CHAPTER TO STATE AIRCRAFT
 589-26  Sec. 2205.032.  CUSTODY, CONTROL, OPERATION, AND MAINTENANCE
 589-27  Sec. 2205.033.  TEXAS A&M UNIVERSITY SYSTEM AIRCRAFT
  590-1  Sec. 2205.034.  FACILITIES
  590-2  Sec. 2205.035.  AIRCRAFT LEASES
  590-3  Sec. 2205.036.  PASSENGER TRANSPORTATION
  590-4  Sec. 2205.037.  USE FOR POLITICAL PURPOSES; CIVIL LIABILITY
  590-5  Sec. 2205.038.  AIRCRAFT OPERATIONS MANUAL
  590-6  Sec. 2205.039.  TRAVEL LOG
  590-7  Sec. 2205.040.  BILLING PROCEDURES
  590-8  Sec. 2205.041.  AIRCRAFT USE FORM
  590-9  Sec. 2205.042.  PILOTS
 590-10  Sec. 2205.043.  AIRCRAFT MARKING
 590-11  Sec. 2205.044.  FUEL AND MAINTENANCE CONTRACTS
 590-12  Sec. 2205.045.  INSURANCE
 590-13                    CHAPTER 2205.  AIRCRAFT POOLING
 590-14                     SUBCHAPTER A.  STATE AIRCRAFT
 590-15                   POOLING BOARD; GENERAL PROVISIONS
 590-16        Sec. 2205.001.  SHORT TITLE.  This chapter may be cited as
 590-17  the State Aircraft Pooling Act.  (V.A.C.S. Art.  4413(34b), Sec.
 590-18  1.)
 590-19        Sec. 2205.002.  Definitions.  In this chapter:
 590-20              (1)  "Board" means the State Aircraft Pooling Board.
 590-21  (V.A.C.S. Art.  4413(34b), Sec. 2.)
 590-22              (2)  "State agency" means an office, department, board,
 590-23  commission, institution, or other agency to which a legislative
 590-24  appropriation is made.  (V.A.C.S. Art.  4413(34b), Sec. 2.)
 590-25        Sec. 2205.003.  ESTABLISHMENT.  The State Aircraft Pooling
 590-26  Board is an agency of the state.  (V.A.C.S. Art.  4413(34b), Sec.
 590-27  3.)
  591-1        Sec. 2205.004.  Composition of Board; Terms.  (a)  The board
  591-2  is composed of:
  591-3              (1)  a member appointed by the governor;
  591-4              (2)  a member appointed by the lieutenant governor;
  591-5              (3)  a member appointed by the speaker of the house of
  591-6  representatives;
  591-7              (4)  a representative of the General Services
  591-8  Commission, designated from time to time by the presiding officer
  591-9  of the commission; and
 591-10              (5)  a representative of the state auditor's office,
 591-11  designated from time to time by the state auditor.
 591-12        (b)  The three appointed members of the board hold office for
 591-13  staggered terms of six years, with the term of one member expiring
 591-14  on January 31 of each odd-numbered year.  The original appointing
 591-15  authority shall fill any vacancy for the unexpired portion of the
 591-16  term.
 591-17        (c)  The representatives of the General Services Commission
 591-18  and the state auditor's office are ex officio, nonvoting members of
 591-19  the board and serve only in an advisory capacity.  (V.A.C.S. Art.
 591-20  4413(34b), Secs. 4(a)-(c).)
 591-21        Sec. 2205.005.  APPOINTMENTS.  Appointments to the board
 591-22  shall be made without regard to the race, color, handicap, sex,
 591-23  religion, age, or national origin of the appointees.  (V.A.C.S.
 591-24  Art. 4413(34b), Sec. 4(e).)
 591-25        Sec. 2205.006.  ELIGIBILITY.  Each appointed member of the
 591-26  board must be a representative of the general public.  A person is
 591-27  not eligible for appointment as a public member of the board if the
  592-1  person or the person's spouse:
  592-2              (1)  is employed by or participates in the management
  592-3  of a business entity or other organization receiving funds from the
  592-4  board;
  592-5              (2)  owns or controls, directly or indirectly, more
  592-6  than a 10 percent interest in a business entity or other
  592-7  organization receiving funds from the board; or
  592-8              (3)  uses or receives a substantial amount of tangible
  592-9  goods, services, or funds from the board, other than compensation
 592-10  or reimbursement authorized by law for board membership,
 592-11  attendance, or expenses.  (V.A.C.S. Art. 4413(34b), Sec. 4(d).)
 592-12        Sec. 2205.007.  CONFLICTS OF INTEREST.  (a)  A person may not
 592-13  serve as a member of the board or act as the general counsel to the
 592-14  board if the person is required to register as a lobbyist under
 592-15  Chapter 305 because of the person's activities for compensation on
 592-16  behalf of a profession related to the operation of the board.
 592-17        (b)  An officer, employee, or paid consultant of a Texas
 592-18  trade association in the field of aircraft sales and leasing may
 592-19  not be a board member or a board employee who is exempt from the
 592-20  state's position classification plan or is compensated at or above
 592-21  the amount prescribed by the General Appropriations Act for step 1,
 592-22  salary group 17, of the position classification salary schedule.
 592-23        (c)  A person who is the spouse of an officer, manager, or
 592-24  paid consultant of a Texas trade association in the field of
 592-25  aircraft sales and leasing may not be a board member and may not be
 592-26  a board employee who is exempt from the state's position
 592-27  classification plan or is compensated at or above the amount
  593-1  prescribed by the General Appropriations Act for step 1, salary
  593-2  group 17, of the position classification salary schedule.
  593-3        (d)  For the purposes of this section, a Texas trade
  593-4  association is a nonprofit, cooperative, and voluntarily joined
  593-5  association of business or professional competitors in this state
  593-6  designed to assist its members and its industry or profession in
  593-7  dealing with mutual business or professional problems and in
  593-8  promoting their common interest.  (V.A.C.S. Art. 4413(34b), Sec.
  593-9  4B.)
 593-10        Sec. 2205.0071.  TEMPORARY PROVISION.  Sections 2205.006,
 593-11  2205.007, and 2205.009(a)(1)-(3) apply only to a member of the
 593-12  board appointed on or after September 1, 1991.  This section
 593-13  expires January 31, 1997.  (Sec. 13(a), Ch. 253, Acts of the 72nd
 593-14  Leg., R.S., 1991.)
 593-15        Sec. 2205.008.  INFORMATION ABOUT QUALIFICATIONS AND
 593-16  STANDARDS OF CONDUCT.  The board shall provide to its members and
 593-17  employees, as often as necessary, information regarding their
 593-18  qualifications for office or employment under this chapter and
 593-19  their responsibilities under applicable laws relating to standards
 593-20  of conduct for state officers or employees.  (V.A.C.S. Art.
 593-21  4413(34b), Sec. 9(g).)
 593-22        Sec. 2205.009.  REMOVAL.  (a)  It is a ground for removal of
 593-23  an appointed member from the board if the member:
 593-24              (1)  does not have at the time of appointment the
 593-25  qualifications required by Section 2205.006;
 593-26              (2)  does not maintain during service on the board the
 593-27  qualifications required by Section 2205.006;
  594-1              (3)  violates a prohibition established by Section
  594-2  2205.007;
  594-3              (4)  cannot discharge because of illness or disability
  594-4  the member's duties for a substantial part of the term for which
  594-5  the member is appointed; or
  594-6              (5)  is absent from more than half of the regularly
  594-7  scheduled board meetings that the member is eligible to attend
  594-8  during a calendar year unless the absence is excused by majority
  594-9  vote of the board.
 594-10        (b)  The validity of an action of the board is not affected
 594-11  by the fact that it is taken when a ground for removal of a board
 594-12  member exists.
 594-13        (c)  If the executive director has knowledge that a potential
 594-14  ground for removal exists, the executive director shall notify the
 594-15  presiding officer of the board of the ground.  The presiding
 594-16  officer shall then notify the governor that a potential ground for
 594-17  removal exists.  (V.A.C.S. Art. 4413(34b), Sec. 4A.)
 594-18        Sec. 2205.010.  PRESIDING OFFICER; MEETINGS; QUORUM.  (a)
 594-19  The voting members of the board biennially shall elect a voting
 594-20  member of the board as presiding officer.
 594-21        (b)  The board shall adopt rules for calling and holding
 594-22  meetings and conducting business.
 594-23        (c)  Two voting members of the board constitute a quorum.
 594-24  (V.A.C.S. Art.  4413(34b), Sec. 5.)
 594-25        Sec. 2205.011.  PUBLIC ACCESS AND TESTIMONY.  (a)  The board
 594-26  shall prepare and maintain a written plan that describes how a
 594-27  person who does not speak English or who has a physical, mental, or
  595-1  developmental disability can be provided reasonable access to the
  595-2  board's programs.
  595-3        (b)  The board shall develop and implement policies that
  595-4  provide the public with a reasonable opportunity to appear before
  595-5  the board and to speak on any issue under the jurisdiction of the
  595-6  board.  (V.A.C.S. Art. 4413(34b), Sec. 16.)
  595-7        Sec. 2205.012.  STAFF.  (a)  The board may employ and
  595-8  compensate staff as provided by legislative appropriation or may
  595-9  use staff provided by the General Services Commission or the state
 595-10  auditor's office.
 595-11        (b)  The board shall develop and implement policies that
 595-12  clearly define the respective responsibilities of the board and the
 595-13  staff the board uses.  (V.A.C.S. Art. 4413(34b), Secs. 6(a), (b).)
 595-14        Sec. 2205.013.  MERIT PAY.  The executive director or the
 595-15  executive director's designee shall develop a system of annual
 595-16  performance evaluations.  All merit pay for board staff must be
 595-17  based on the system established under this section.  (V.A.C.S. Art.
 595-18  4413(34b), Sec. 6(c).)
 595-19        Sec. 2205.014.  CAREER LADDER.  The executive director or the
 595-20  executive director's designee shall develop an intraagency career
 595-21  ladder program.  The program shall require intraagency postings of
 595-22  all nonentry level positions concurrently with any public posting.
 595-23  (V.A.C.S. Art. 4413(34b), Sec. 6(d).)
 595-24        Sec. 2205.015.  EQUAL EMPLOYMENT OPPORTUNITY.  (a)  The
 595-25  executive director or the executive director's designee shall
 595-26  prepare and maintain a written policy statement to assure
 595-27  implementation of a program of equal employment opportunity under
  596-1  which all personnel transactions are made without regard to race,
  596-2  color, handicap, sex, religion, age, or national origin.  The
  596-3  policy statement must include:
  596-4              (1)  personnel policies, including policies relating to
  596-5  recruitment, evaluation, selection, appointment, training, and
  596-6  promotion of personnel;
  596-7              (2)  a comprehensive analysis of the board's work force
  596-8  that meets federal and state guidelines;
  596-9              (3)  procedures by which a determination can be made of
 596-10  significant underuse in the board's work force of all persons for
 596-11  whom federal or state guidelines encourage a more equitable
 596-12  balance; and
 596-13              (4)  reasonable methods to appropriately address those
 596-14  areas of significant underuse.
 596-15        (b)  A policy statement prepared under Subsection (a) must
 596-16  cover an annual period, be updated at least annually, and be filed
 596-17  with the governor's office.
 596-18        (c)  The governor's office shall deliver a biennial report to
 596-19  the legislature based on the information received under Subsection
 596-20  (b).  The report may be made separately or as a part of other
 596-21  biennial reports made to the legislature.  (V.A.C.S. Art.
 596-22  4413(34b), Sec. 5A.)
 596-23        Sec. 2205.016.  ANNUAL REPORT.  (a)  The board shall file
 596-24  annually with the governor and the presiding officer of each house
 596-25  of the legislature a complete and detailed written report
 596-26  accounting for all funds received and disbursed by the board during
 596-27  the preceding fiscal year.
  597-1        (b)  The annual report must be in the form and reported in
  597-2  the time provided by the General Appropriations Act.  (V.A.C.S.
  597-3  Art. 4413(34b), Sec. 8A.)
  597-4        Sec. 2205.017.  SUNSET PROVISION.  The State Aircraft Pooling
  597-5  Board is subject to Chapter 325 (Texas Sunset Act).  Unless
  597-6  continued in existence as provided by that chapter, the board is
  597-7  abolished and this chapter expires September 1, 2001.  (V.A.C.S.
  597-8  Art.  4413(34b), Sec. 10A.)
  597-9        (Sections 2205.018 to 2205.030 reserved for expansion)
 597-10                     SUBCHAPTER B.  STATE AIRCRAFT
 597-11        Sec. 2205.031.  APPLICABILITY OF CHAPTER TO STATE AIRCRAFT.
 597-12  This chapter applies to all aircraft owned or leased by the state,
 597-13  except as provided by Section 2205.033.  (V.A.C.S. Art.  4413(34b),
 597-14  Sec. 7.)
 597-15        Sec. 2205.032.  CUSTODY, CONTROL, OPERATION, AND MAINTENANCE.
 597-16  (a)  The board shall operate a pool for the custody, control,
 597-17  operation, and maintenance of all aircraft owned or leased by the
 597-18  state.
 597-19        (b)  The board may purchase aircraft with funds appropriated
 597-20  for that purpose.  (V.A.C.S.  Art. 4413(34b), Secs. 8, 9(a).)
 597-21        Sec. 2205.033.  TEXAS A&M UNIVERSITY SYSTEM AIRCRAFT.  (a)
 597-22  The board of regents of The Texas A&M University System is
 597-23  primarily responsible for scheduling Texas A&M University System
 597-24  aircraft.
 597-25        (b)  The Texas A&M University System shall base Texas A&M
 597-26  University System aircraft in Brazos County.
 597-27        (c)  A pilot of Texas A&M University System aircraft must be
  598-1  an employee of The Texas A&M University System.
  598-2        (d)  In this section, "Texas A&M University System aircraft"
  598-3  means aircraft owned on August 31, 1991, or acquired after that
  598-4  date by The Texas A&M University System or one of its components.
  598-5  (V.A.C.S. Art. 4413(34b), Sec.  7A.)
  598-6        Sec. 2205.034.  FACILITIES.  (a)  The board may acquire
  598-7  appropriate facilities for the accommodation of all aircraft owned
  598-8  or leased by the state.  The facilities may be purchased or leased
  598-9  as determined by the board to be most economical for the state and
 598-10  as provided by legislative appropriations.  The facilities may
 598-11  include adequate hangar space, an indoor passenger waiting area, a
 598-12  flight-planning area, communications facilities, and other related
 598-13  and necessary facilities.
 598-14        (b)  A state agency that operates an aircraft may not use a
 598-15  facility in Austin other than a facility operated by the board for
 598-16  the storage, parking, fueling, or maintenance of the aircraft,
 598-17  whether or not the aircraft is based in Austin.  In a situation the
 598-18  board determines to be an emergency, the board may authorize a
 598-19  state agency to use a facility in Austin other than a board
 598-20  facility for the storage, parking, fueling, or maintenance of an
 598-21  aircraft.  (V.A.C.S. Art. 4413(34b), Sec. 10.)
 598-22        Sec. 2205.035.  AIRCRAFT LEASES.  (a)  The board by
 598-23  interagency contract may lease state-owned aircraft to a state
 598-24  agency.
 598-25        (b)  A state agency that is the prior owner or lessee of an
 598-26  aircraft has the first option to lease that aircraft from the
 598-27  board.
  599-1        (c)  The lease may provide for operation or maintenance by
  599-2  the board or the state agency.
  599-3        (d)  A state agency may not expend appropriated funds for the
  599-4  lease of an aircraft unless the board executes the lease or
  599-5  approves the lease by board order.  (V.A.C.S. Art. 4413(34b), Secs.
  599-6  9(b), (c).)
  599-7        Sec. 2205.036.  PASSENGER TRANSPORTATION.  (a)  The board
  599-8  shall provide aircraft transportation, to the extent that its
  599-9  aircraft are available, to:
 599-10              (1)  state officers and employees who are traveling on
 599-11  official business according to the coordinated passenger scheduling
 599-12  system and the priority scheduling system developed as part of the
 599-13  aircraft operations manual under Section 2205.038;
 599-14              (2)  persons in the care or custody of state officers
 599-15  or employees described by Subdivision (1); and
 599-16              (3)  persons whose transportation furthers official
 599-17  state business.
 599-18        (b)  The board may not provide aircraft transportation to a
 599-19  passenger if the passenger is to be transported to or from a place
 599-20  where the passenger:
 599-21              (1)  will make or has made a speech not related to
 599-22  official state business;
 599-23              (2)  will attend or has attended an event sponsored by
 599-24  a political party;
 599-25              (3)  will perform a service or has performed a service
 599-26  for which the passenger is to receive an honorarium, unless the
 599-27  passenger reimburses the board for the cost of transportation;
  600-1              (4)  will attend or has attended an event at which
  600-2  money is raised for private or political purposes; or
  600-3              (5)  will attend or has attended an event at which an
  600-4  audience was charged an admission fee to see or hear the passenger.
  600-5  (V.A.C.S. Arts. 4413(34b), Secs. 9(d), (e).)
  600-6        Sec. 2205.037.  USE FOR POLITICAL PURPOSES; CIVIL LIABILITY.
  600-7  (a)  A person may not use a state-owned aircraft solely for
  600-8  political purposes or spend state funds for the use of an aircraft
  600-9  solely for political purposes.
 600-10        (b)  A person who violates this section is civilly liable to
 600-11  the state for the costs incurred by the state because of the
 600-12  violation.  (V.A.C.S. Art. 6252-15.)
 600-13        Sec. 2205.038.  AIRCRAFT OPERATIONS MANUAL.  (a)  The board
 600-14  shall:
 600-15              (1)  prepare a manual that establishes minimum
 600-16  standards for the operation of aircraft by state agencies; and
 600-17              (2)  adopt procedures for the distribution of the
 600-18  manual to state agencies.
 600-19        (b)  The manual must include provisions for:
 600-20              (1)  pilot certification standards, including medical
 600-21  requirements for pilots;
 600-22              (2)  recurring training programs for pilots;
 600-23              (3)  general operating and flight rules;
 600-24              (4)  coordinated passenger scheduling; and
 600-25              (5)  other issues the board determines are necessary to
 600-26  ensure the efficient and safe operation of aircraft by a state
 600-27  agency.
  601-1        (c)  The board shall confer with and solicit the written
  601-2  advice of state agencies the board determines are principal users
  601-3  of aircraft operated by the board and, to the extent practicable,
  601-4  incorporate that advice in the development of the manual and
  601-5  subsequent changes to the manual.  (V.A.C.S. Art. 4413(34b),
  601-6  Sec. 12.)
  601-7        Sec. 2205.039.  TRAVEL LOG.  (a)  The Legislative Budget
  601-8  Board, in cooperation with the board, shall prescribe:
  601-9              (1)  a travel log form for gathering information about
 601-10  the use of state-operated aircraft;
 601-11              (2)  procedures to ensure that individuals who travel
 601-12  as passengers on or operate state-operated aircraft provide in a
 601-13  legible manner the information requested of them by the form; and
 601-14              (3)  procedures for each state agency that operates an
 601-15  aircraft for sending the form to the board and the Legislative
 601-16  Budget Board.
 601-17        (b)  The travel log form must request the following
 601-18  information about a state-operated aircraft each time the aircraft
 601-19  is flown:
 601-20              (1)  a mission statement, which may appear as a
 601-21  selection to be identified from general categories appearing on the
 601-22  form;
 601-23              (2)  the name, state agency represented, and signature
 601-24  of each person who is a passenger or crew member of the aircraft;
 601-25  and
 601-26              (3)  other information determined by the Legislative
 601-27  Budget Board and the board to be necessary to monitor the proper
  602-1  use of the aircraft.  (V.A.C.S. Art. 4413(34b), Secs. 13(a), (b).)
  602-2        Sec. 2205.040.  BILLING PROCEDURES.  The Legislative Budget
  602-3  Board, in cooperation with the board and the state auditor, shall
  602-4  prescribe a billing procedure for passenger travel on
  602-5  state-operated aircraft.  (V.A.C.S. Art. 4413(34b), Sec. 14.)
  602-6        Sec. 2205.041.  AIRCRAFT USE FORM.  The Legislative Budget
  602-7  Board, in cooperation with the board, shall prescribe:
  602-8              (1)  an annual aircraft use form for gathering
  602-9  information about the use of state-operated aircraft; and
 602-10              (2)  procedures for each state agency that operates an
 602-11  aircraft for sending the form to the board and the Legislative
 602-12  Budget Board.  (V.A.C.S. Art. 4413(34b), Sec. 11(a).)
 602-13        Sec. 2205.042.  PILOTS.  An individual who is not a pilot
 602-14  employed by the board may not operate a state-operated aircraft
 602-15  unless the board grants the individual a specific exemption from
 602-16  that requirement.  (V.A.C.S. Art. 4413(34b), Sec. 15.)
 602-17        Sec. 2205.043.  AIRCRAFT MARKING.  (a)  Each aircraft owned
 602-18  or leased by the state, other than an aircraft used for law
 602-19  enforcement purposes, shall be marked:
 602-20              (1)  with the Texas state seal on each side of the
 602-21  aircraft's vertical stabilizer; and
 602-22              (2)  with the words "The State of Texas" on each side
 602-23  of the aircraft's fuselage.
 602-24        (b)  The board shall adopt rules, consistent with federal
 602-25  regulations, governing the color, size, and location of marks of
 602-26  identification required by this section.  (V.A.C.S. Art. 4413(34b),
 602-27  Sec. 9A.)
  603-1        Sec. 2205.044.  FUEL AND MAINTENANCE CONTRACTS.  The board
  603-2  may contract with a state or federal governmental agency or a
  603-3  political subdivision to provide aircraft fuel or to provide
  603-4  aircraft maintenance services.  (V.A.C.S. Art. 4413(34b),
  603-5  Sec. 9(f).)
  603-6        Sec. 2205.045.  INSURANCE.  (a)  The board may purchase
  603-7  insurance to protect the board from loss caused by damage, loss,
  603-8  theft, or destruction of aircraft owned or leased by the state.
  603-9        (b)  The insurance must be on a form approved by the State
 603-10  Board of Insurance.  (V.A.C.S. Art. 4413(34b), Sec. 9(h).)
 603-11              (Chapters 2206-2250 reserved for expansion)
 603-12      SUBTITLE F.  STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT
 603-13             CHAPTER 2251.  PAYMENT FOR GOODS AND SERVICES
 603-14                   SUBCHAPTER A.  GENERAL PROVISIONS
 603-15  Sec. 2251.001.  DEFINITIONS
 603-16  Sec. 2251.002.  EXCEPTIONS
 603-17  Sec. 2251.003.  RULES
 603-18          (Sections 2251.004-2251.020 reserved for expansion)
 603-19                 SUBCHAPTER B.  PAYMENTS AND INTEREST
 603-20  Sec. 2251.021.  TIME FOR PAYMENT BY GOVERNMENTAL ENTITY
 603-21  Sec. 2251.022.  TIME FOR PAYMENT BY VENDOR
 603-22  Sec. 2251.023.  TIME FOR PAYMENT BY SUBCONTRACTOR
 603-23  Sec. 2251.024.  MAILING OF PAYMENT
 603-24  Sec. 2251.025.  INTEREST ON OVERDUE PAYMENT
 603-25  Sec. 2251.026.  PAYMENT OF INTEREST BY STATE AGENCY
 603-26  Sec. 2251.027.  PAYMENT OF INTEREST BY POLITICAL SUBDIVISION
 603-27  Sec. 2251.028.  PAYMENT OF INTEREST BY VENDOR OR SUBCONTRACTOR
  604-1  Sec. 2251.029.  PARTIAL PAYMENT
  604-2  Sec. 2251.030.  EARLY PAYMENT DISCOUNT
  604-3          (Sections 2251.031-2251.040 reserved for expansion)
  604-4                  SUBCHAPTER C.  CLAIMS AND DISPUTES
  604-5  Sec. 2251.041.  CLAIM FOR INTEREST IMPOSED AGAINST
  604-6                    STATE AGENCY
  604-7  Sec. 2251.042.  DISPUTED PAYMENT
  604-8  Sec. 2251.043.  ATTORNEY'S FEES
  604-9      SUBTITLE F.  STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT
 604-10             CHAPTER 2251.  PAYMENT FOR GOODS AND SERVICES
 604-11                   SUBCHAPTER A.  GENERAL PROVISIONS
 604-12        Sec. 2251.001.  DEFINITIONS.  In this chapter:
 604-13              (1)  "Goods" includes supplies, materials, or
 604-14  equipment.
 604-15              (2)  "Governmental entity" means a state agency or
 604-16  political subdivision of this state.
 604-17              (3)  "Payment" means money owed to a vendor.
 604-18              (4)  "Political subdivision" means:
 604-19                    (A)  a county;
 604-20                    (B)  a municipality;
 604-21                    (C)  a public school district; or
 604-22                    (D)  a special-purpose district or authority.
 604-23              (5)  "State agency" means:
 604-24                    (A)  a board, commission, department, office, or
 604-25  other agency in the executive branch of state government that is
 604-26  created by the constitution or a statute of this state, including a
 604-27  river authority and an institution of higher education as defined
  605-1  by Section 61.003, Education Code;
  605-2                    (B)  the legislature or a legislative agency; or
  605-3                    (C)  the Supreme Court of Texas, the Court of
  605-4  Criminal Appeals of Texas, a court of appeals, a state judicial
  605-5  agency, or the State Bar of Texas.
  605-6              (6)  "Subcontractor" means a person who contracts with
  605-7  a vendor to work or contribute toward completing work for a
  605-8  governmental entity.
  605-9              (7)  "Vendor" means a person who supplies goods or
 605-10  services to a governmental entity.  (New; V.A.C.S. Art. 601f, Sec.
 605-11  1.)
 605-12        Sec. 2251.002.  EXCEPTIONS.  (a)  This chapter does not apply
 605-13  to a payment made by a governmental entity, vendor, or
 605-14  subcontractor if:
 605-15              (1)  the terms of a contract specify another time or
 605-16  method of payment or method of resolving a dispute or interest owed
 605-17  on a delinquent payment;
 605-18              (2)  there is a bona fide dispute between a vendor and
 605-19  a subcontractor or between a subcontractor and its supplier about
 605-20  the goods delivered or the services performed that causes the
 605-21  payment to be late;
 605-22              (3)  the terms of a federal contract, grant,
 605-23  regulation, or statute prevent the governmental entity from making
 605-24  a timely payment with federal funds; or
 605-25              (4)  the invoice is not mailed to the person to whom it
 605-26  is addressed in strict accordance with any instruction on the
 605-27  purchase order relating to the payment.
  606-1        (b)  This chapter does not affect Chapter 2253.  (V.A.C.S.
  606-2  Art. 601f, Sec. 7.)
  606-3        Sec. 2251.003.  RULES.  The General Services Commission shall
  606-4  adopt rules to implement this chapter.  (V.A.C.S. Art. 601f, Sec.
  606-5  9.)
  606-6          (Sections 2251.004-2251.020 reserved for expansion)
  606-7                 SUBCHAPTER B.  PAYMENTS AND INTEREST
  606-8        Sec. 2251.021.  TIME FOR PAYMENT BY GOVERNMENTAL ENTITY.  (a)
  606-9  A payment by a governmental entity under a contract executed on or
 606-10  after September 1, 1987, is overdue on the 31st day after the later
 606-11  of:
 606-12              (1)  the date the governmental entity receives the
 606-13  goods under the contract;
 606-14              (2)  the date the performance of the service under the
 606-15  contract is completed; or
 606-16              (3)  the date the governmental entity receives an
 606-17  invoice for the goods or services.
 606-18        (b)  For a contract executed on or after July 1, 1986, and
 606-19  before September 1, 1987, a payment by a governmental entity under
 606-20  that contract is overdue on the 46th day after the later event
 606-21  described by Subsections (a)(1)-(3).  (V.A.C.S. Art. 601f, Secs.
 606-22  2(a), (b); 3(a), (b); 5(a) (part).)
 606-23        Sec. 2251.022.  TIME FOR PAYMENT BY VENDOR.  (a)  A vendor
 606-24  who receives a payment from a governmental entity shall pay a
 606-25  subcontractor the appropriate share of the payment not later than
 606-26  the 10th day after the date the vendor receives the payment.
 606-27        (b)  The appropriate share is overdue on the 11th day after
  607-1  the date the vendor receives the payment.  (V.A.C.S. Art. 601f,
  607-2  Secs. 4(a) (part); 5(a) (part).)
  607-3        Sec. 2251.023.  TIME FOR PAYMENT BY SUBCONTRACTOR.  (a)  A
  607-4  subcontractor who receives a payment from a vendor shall pay a
  607-5  person who supplies goods or a service for which the payment is
  607-6  made the appropriate share of the payment not later than the 10th
  607-7  day after the date the subcontractor receives the payment.
  607-8        (b)  The appropriate share is overdue on the 11th day after
  607-9  the date the subcontractor receives the payment.  (V.A.C.S. Art.
 607-10  601f, Secs. 4(b) (part); 5(a) (part).)
 607-11        Sec. 2251.024.  MAILING OF PAYMENT.  A payment is considered
 607-12  to be mailed on the date the payment is postmarked.  (V.A.C.S. Art.
 607-13  601f, Sec. 5(b) (part).)
 607-14        Sec. 2251.025.  INTEREST ON OVERDUE PAYMENT.  (a)  A payment
 607-15  begins to accrue interest on the date the payment is overdue.
 607-16        (b)  An overdue payment bears interest at the rate of one
 607-17  percent each month.
 607-18        (c)  Interest on an overdue payment stops accruing on the
 607-19  date the governmental entity or vendor mails or electronically
 607-20  transmits the payment.  (V.A.C.S. Art. 601f, Secs. 4(a) (part), (b)
 607-21  (part); 5(a) (part), (b).)
 607-22        Sec. 2251.026.  PAYMENT OF INTEREST BY STATE AGENCY.  If the
 607-23  warrant for a payment the originating state agency owes is not
 607-24  mailed or electronically transmitted before the payment is overdue,
 607-25  the agency is liable for an interest payment that accrues under
 607-26  this chapter.  (V.A.C.S. Art. 601f, Secs.  3(c); 5(b) (part).)
 607-27        Sec. 2251.027.  PAYMENT OF INTEREST BY POLITICAL SUBDIVISION.
  608-1  (a)  A political subdivision shall compute interest imposed on the
  608-2  political subdivision under this chapter.
  608-3        (b)  The political subdivision shall pay the interest at the
  608-4  time payment is made on the principal.
  608-5        (c)  The political subdivision shall submit the interest
  608-6  payment with the net amount due for goods and services.
  608-7        (d)  The political subdivision may not require a vendor to
  608-8  petition, bill, or wait an additional day to receive the interest
  608-9  due.  (V.A.C.S. Art. 601f, Sec. 2(c).)
 608-10        Sec. 2251.028.  PAYMENT OF INTEREST BY VENDOR OR
 608-11  SUBCONTRACTOR.  A vendor or subcontractor shall pay interest as a
 608-12  payment is overdue.  (V.A.C.S. Art. 601f, Sec. 4(c).)
 608-13        Sec. 2251.029.  PARTIAL PAYMENT.  (a)  The unpaid balance of
 608-14  a partial payment made within the period provided by this chapter
 608-15  accrues interest as provided by Section 2251.025 unless the balance
 608-16  is in dispute.
 608-17        (b)  Section 2251.042 applies to a disputed balance.
 608-18  (V.A.C.S. Art. 601f, Sec. 5(c).)
 608-19        Sec. 2251.030.  EARLY PAYMENT DISCOUNT.  (a)  The intent of
 608-20  the legislature is that a governmental entity should take advantage
 608-21  of an offer for an early payment discount.
 608-22        (b)  A governmental entity may not take an early payment
 608-23  discount a vendor offers unless the governmental entity makes a
 608-24  full payment within the discount period.
 608-25        (c)  If a governmental entity takes an early payment discount
 608-26  later, the unpaid balance accrues interest beginning on the date
 608-27  the discount offer expires.  (V.A.C.S. Art. 601f, Sec. 8.)
  609-1          (Sections 2251.031-2251.040 reserved for expansion)
  609-2                  SUBCHAPTER C.  CLAIMS AND DISPUTES
  609-3        Sec. 2251.041.  CLAIM FOR INTEREST IMPOSED AGAINST STATE
  609-4  AGENCY.  (a)  A vendor must present a claim for interest imposed
  609-5  against an originating state agency to the agency not later than
  609-6  the sixth month after the date the vendor receives payment.
  609-7        (b)  The vendor must accompany the claim with the envelope in
  609-8  which the warrant was received or other proof showing the date the
  609-9  payment was mailed or transmitted by the agency.  (V.A.C.S. Art.
 609-10  601f, Sec. 3(d).)
 609-11        Sec. 2251.042.  DISPUTED PAYMENT.  (a)  A governmental entity
 609-12  shall notify a vendor of an error in an invoice submitted for
 609-13  payment by the vendor not later than the 21st day after the date
 609-14  the entity receives the invoice.
 609-15        (b)  If a dispute is resolved in favor of the vendor, the
 609-16  vendor is entitled to receive interest on the unpaid balance of the
 609-17  invoice submitted by the vendor beginning on the date under Section
 609-18  2251.021 that the payment is overdue for the invoice.
 609-19        (c)  If a dispute is resolved in favor of the governmental
 609-20  entity, the vendor shall submit a corrected invoice that must be
 609-21  paid in accordance with Section 2251.021.  The unpaid balance
 609-22  accrues interest as provided by this chapter if the corrected
 609-23  invoice is not paid by the appropriate date.  (V.A.C.S. Art. 601f,
 609-24  Sec. 6.)
 609-25        Sec. 2251.043.  ATTORNEY'S FEES.  In a formal administrative
 609-26  or judicial action to collect an invoice payment or interest due
 609-27  under this chapter, the opposing party, which may be the
  610-1  governmental entity or vendor,  shall pay the reasonable attorney's
  610-2  fees of the prevailing party.  (V.A.C.S. Art. 601f, Sec. 10.)
  610-3           CHAPTER 2252.  CONTRACTS WITH GOVERNMENTAL ENTITY
  610-4                  SUBCHAPTER A.  NONRESIDENT BIDDERS
  610-5  Sec. 2252.001.  DEFINITIONS
  610-6  Sec. 2252.002.  AWARD OF CONTRACT TO NONRESIDENT BIDDER
  610-7  Sec. 2252.003.  PUBLICATION OF OTHER STATES' LAWS
  610-8                    ON CONTRACTS
  610-9  Sec. 2252.004.  CONTRACT INVOLVING FEDERAL FUNDS
 610-10          (Sections 2252.005-2252.030 reserved for expansion)
 610-11  SUBCHAPTER B.  INTEREST ON RETAINED PUBLIC WORKS CONTRACT PAYMENTS
 610-12  Sec. 2252.031.  DEFINITIONS
 610-13  Sec. 2252.032.  RETAINAGE
 610-14  Sec. 2252.033.  EXEMPTIONS
 610-15          (Sections 2252.034-2252.060 reserved for expansion)
 610-16         SUBCHAPTER C.  PRIVATE AUXILIARY ENTERPRISE PROVIDING
 610-17    SERVICES TO STATE AGENCIES OR INSTITUTIONS OF HIGHER EDUCATION
 610-18  Sec. 2252.061.  DEFINITIONS
 610-19  Sec. 2252.062.  FINANCIAL STATEMENT
 610-20  Sec. 2252.063.  PAYMENT STATEMENT
 610-21  Sec. 2252.064.  PERFORMANCE BOND
 610-22           CHAPTER 2252.  CONTRACTS WITH GOVERNMENTAL ENTITY
 610-23                  SUBCHAPTER A.  NONRESIDENT BIDDERS
 610-24        Sec. 2252.001.  DEFINITIONS.  In this subchapter:
 610-25              (1)  "Governmental contract" means a contract awarded
 610-26  by a governmental entity for general construction, an improvement,
 610-27  a service, or a public works project, or a purchase of supplies,
  611-1  materials, or equipment.
  611-2              (2)  "Governmental entity" means:
  611-3                    (A)  the state;
  611-4                    (B)  a municipality, county, public school
  611-5  district, or special-purpose district or authority;
  611-6                    (C)  a district, county, or justice of the peace
  611-7  court;
  611-8                    (D)  a board, commission, department, office, or
  611-9  other agency in the executive branch of state government, including
 611-10  an institution of higher education as defined by Section 61.003,
 611-11  Education Code;
 611-12                    (E)  the legislature or a legislative agency; or
 611-13                    (F)  the Supreme Court of Texas, the Texas Court
 611-14  of Criminal Appeals, a court of appeals, or the State Bar of Texas
 611-15  or another judicial agency having statewide jurisdiction.
 611-16              (3)  "Nonresident bidder" refers to a person who is not
 611-17  a resident.
 611-18              (4)  "Resident bidder" refers to a person whose
 611-19  principal place of business is in this state, including a
 611-20  contractor whose ultimate parent company or majority owner has its
 611-21  principal place of business in this state.  (V.A.C.S.  Art. 601g,
 611-22  Sec. 1(a).)
 611-23        Sec. 2252.002.  AWARD OF CONTRACT TO NONRESIDENT BIDDER.  A
 611-24  governmental entity may not award a governmental contract to a
 611-25  nonresident bidder unless the nonresident underbids the lowest bid
 611-26  submitted by a responsible resident bidder by an amount that is not
 611-27  less than the amount by which a resident bidder would be required
  612-1  to underbid the nonresident bidder to obtain a comparable contract
  612-2  in the state in which the nonresident's principal place of business
  612-3  is located.  (V.A.C.S. Art. 601g, Sec. 1(b) (part).)
  612-4        Sec. 2252.003.  PUBLICATION OF OTHER STATES' LAWS ON
  612-5  CONTRACTS.  (a)  The General Services Commission annually shall
  612-6  publish in the Texas Register:
  612-7              (1)  a list showing each state that regulates the award
  612-8  of a governmental contract to a bidder whose principal place of
  612-9  business is not located in that state; and
 612-10              (2)  the citation to and a summary of each state's most
 612-11  recent law or regulation relating to the evaluation of a bid from
 612-12  and award of a contract to a bidder whose principal place of
 612-13  business is not located in that state.
 612-14        (b)  A governmental entity shall use the information
 612-15  published under this section to evaluate the bid of a nonresident
 612-16  bidder.  A governmental entity may rely on information published
 612-17  under this section to meet the requirements of Section 2252.002.
 612-18  (V.A.C.S. Art. 601g, Sec. 1(b) (part).)
 612-19        Sec. 2252.004.  CONTRACT INVOLVING FEDERAL FUNDS.  This
 612-20  chapter does not apply to a contract involving federal funds.
 612-21  (V.A.C.S.  Art. 601g, Sec. 1(c).)
 612-22          (Sections 2252.005-2252.030 reserved for expansion)
 612-23  SUBCHAPTER B.  INTEREST ON RETAINED PUBLIC WORKS CONTRACT PAYMENTS
 612-24        Sec. 2252.031.  DEFINITIONS.  In this subchapter:
 612-25              (1)  "Governmental entity" means:
 612-26                    (A)  the state, a county, or a municipality;
 612-27                    (B)  a department, board, or agency of the state,
  613-1  a county, or a municipality;
  613-2                    (C)  a school district or a subdivision of a
  613-3  school district; or
  613-4                    (D)  any other governmental or quasi-governmental
  613-5  authority authorized by statute to make a public works contract.
  613-6              (2)  "Prime contractor" means a person or persons,
  613-7  firm, or corporation contracting with a governmental entity for a
  613-8  public work.
  613-9              (3)  "Public works" includes the construction,
 613-10  alteration, or repair of a public building or the construction or
 613-11  completion of a public work.
 613-12              (4)  "Public works contract payment" means a payment by
 613-13  a governmental entity for the value of labor, material, machinery,
 613-14  fixtures, tools, power, water, fuel, or lubricants used or
 613-15  consumed, ordered and delivered for use or consumption, or
 613-16  specially fabricated for use or consumption but not yet delivered,
 613-17  in the direct performance of a public works contract.
 613-18              (5)  "Retainage" means the part of a public works
 613-19  contract payment withheld by a governmental entity to secure
 613-20  performance of the contract.  (V.A.C.S. Art.  6252-5b, Sec. 1.)
 613-21        Sec. 2252.032.  RETAINAGE.  A governmental entity shall:
 613-22              (1)  deposit in an interest-bearing account the
 613-23  retainage of a public works contract that provides for retainage of
 613-24  more than five percent of the periodic contract payment; and
 613-25              (2)  pay the interest earned on the retainage to the
 613-26  prime contractor on completion of the contract.  (V.A.C.S. Art.
 613-27  6252-5b, Sec. 2.)
  614-1        Sec. 2252.033.  EXEMPTIONS.  This chapter does not apply to:
  614-2              (1)  a public works contract executed before August 31,
  614-3  1981;
  614-4              (2)  a public works contract in which the total
  614-5  contract price estimate at the time of execution of the contract is
  614-6  less than $400,000; or
  614-7              (3)  a public works contract made by the Texas
  614-8  Department of Transportation under Chapter 186, General Laws, Acts
  614-9  of the 39th Legislature, Regular Session, 1925 (Article 6674a et
 614-10  seq., Vernon's Texas Civil Statutes).  (V.A.C.S. Art. 6252-5b,
 614-11  Sec. 3 (part).)
 614-12          (Sections 2252.034-2252.060 reserved for expansion)
 614-13   SUBCHAPTER C.  PRIVATE AUXILIARY ENTERPRISE PROVIDING SERVICES TO
 614-14          STATE AGENCIES OR INSTITUTIONS OF HIGHER EDUCATION
 614-15        Sec. 2252.061.  DEFINITIONS.  In this subchapter:
 614-16              (1)  "Auxiliary enterprise" means a business activity
 614-17  that is conducted at a state agency, provides a service to the
 614-18  agency, and is not paid for with appropriated money.
 614-19              (2)  "Contractor" means an individual, association,
 614-20  corporation, or other business entity that operates an auxiliary
 614-21  enterprise or performs a service of the auxiliary  enterprise.
 614-22              (3)  "State agency" includes a state-supported
 614-23  institution of higher education.  (V.A.C.S. Art. 6252-5c, Sec. 1;
 614-24  New.)
 614-25        Sec. 2252.062.  FINANCIAL STATEMENT.  A contractor must
 614-26  present at the time of contracting with a state agency a financial
 614-27  statement prepared by a certified public accountant.  (V.A.C.S.
  615-1  Art. 6252-5c, Sec. 2.)
  615-2        Sec. 2252.063.  PAYMENT STATEMENT.  (a)  A contractor must
  615-3  provide to the contracting state agency payment statements derived
  615-4  from sales tax reports.
  615-5        (b)  The contractor annually must provide the payment
  615-6  statements in accordance with the requirements of the state agency.
  615-7        (c)  A payment statement must be certified by a certified
  615-8  public accountant licensed in this state.  (V.A.C.S. Art. 6252-5c,
  615-9  Sec. 3.)
 615-10        Sec. 2252.064.  PERFORMANCE BOND.  (a)  A contractor shall
 615-11  execute a bond issued by a surety company authorized to do business
 615-12  in this state in an amount determined by the contracting state
 615-13  agency, but not to exceed the contract price.
 615-14        (b)  The bond must be payable to the state and conditioned on
 615-15  the faithful performance of the terms of the contract.  (V.A.C.S.
 615-16  Art. 6252-5c, Sec. 4.)
 615-17       CHAPTER 2253.  PUBLIC WORK PERFORMANCE AND PAYMENT BONDS
 615-18                   SUBCHAPTER A.  GENERAL PROVISIONS
 615-19  Sec. 2253.001.  DEFINITIONS
 615-20          (Sections 2253.002-2253.020 reserved for expansion)
 615-21            SUBCHAPTER B.  GENERAL REQUIREMENTS; LIABILITY
 615-22  Sec. 2253.021.  PERFORMANCE AND PAYMENT BONDS REQUIRED
 615-23  Sec. 2253.022.  BOND PROHIBITED FOR CONTRACT OF $25,000
 615-24                    OR LESS
 615-25  Sec. 2253.023.  ATTEMPTED COMPLIANCE
 615-26  Sec. 2253.024.  INFORMATION FROM CONTRACTOR OR SUBCONTRACTOR
 615-27  Sec. 2253.025.  INFORMATION FROM PAYMENT BOND BENEFICIARY
  616-1  Sec. 2253.026.  COPY OF PAYMENT BOND AND CONTRACT
  616-2  Sec. 2253.027.  LIABILITY OF GOVERNMENTAL ENTITY
  616-3          (Sections 2253.028-2253.040 reserved for expansion)
  616-4                  SUBCHAPTER C.  NOTICE REQUIREMENTS
  616-5  Sec. 2253.041.  NOTICE REQUIRED FOR CLAIM FOR PAYMENT FOR
  616-6                    LABOR OR MATERIAL
  616-7  Sec. 2253.042.  COPY OF AGREEMENT AS NOTICE OF CLAIM FOR UNPAID
  616-8                    LABOR OR MATERIAL
  616-9  Sec. 2253.043.  NOTICE OF CLAIM FOR UNPAID LABOR OR MATERIAL
 616-10                    WHEN WRITTEN AGREEMENT DOES NOT EXIST
 616-11  Sec. 2253.044.  NOTICE OF CLAIM FOR MULTIPLE ITEMS OF LABOR
 616-12                    OR MATERIAL
 616-13  Sec. 2253.045.  NOTICE OF CLAIM FOR UNPAID LABOR
 616-14                    OR MATERIAL UNDER WRITTEN UNIT PRICE
 616-15                    AGREEMENT
 616-16  Sec. 2253.046.  NOTICE REQUIRED FOR CLAIM FOR PAYMENT OF
 616-17                    RETAINAGE
 616-18  Sec. 2253.047.  ADDITIONAL NOTICE REQUIRED FOR PAYMENT BOND
 616-19                    BENEFICIARY WITHOUT DIRECT CONTRACTUAL
 616-20                    RELATIONSHIP WITH PRIME CONTRACTOR
 616-21  Sec. 2253.048.  MAILING NOTICE
 616-22          (Sections 2253.049-2253.070 reserved for expansion)
 616-23              SUBCHAPTER D.  CLAIMS ON BONDS; ENFORCEMENT
 616-24  Sec. 2253.071.  TERMINATION OR ABANDONMENT OF CONTRACT;
 616-25                    PROCEEDS OF CONTRACT
 616-26  Sec. 2253.072.  STATE NOT LIABLE FOR COSTS
 616-27  Sec. 2253.073.  SUIT ON PAYMENT BOND
  617-1  Sec. 2253.074.  COSTS AND ATTORNEY'S FEES
  617-2  Sec. 2253.075.  ASSIGNMENT OF CLAIM
  617-3  Sec. 2253.076.  LIMITATIONS ON CERTAIN CLAIMS;
  617-4                    MAXIMUM RETAINAGE
  617-5  Sec. 2253.077.  VENUE
  617-6  Sec. 2253.078.  STATUTE OF LIMITATIONS
  617-7  Sec. 2253.079.  CRIMINAL OFFENSE FOR FALSE
  617-8                    AND FRAUDULENT CLAIM
  617-9       CHAPTER 2253.  PUBLIC WORK PERFORMANCE AND PAYMENT BONDS
 617-10                   SUBCHAPTER A.  GENERAL PROVISIONS
 617-11        Sec. 2253.001.  DEFINITIONS.  In this chapter:
 617-12              (1)  "Governmental entity" means a governmental or
 617-13  quasi-governmental authority authorized by state law to make a
 617-14  public work contract, including:
 617-15                    (A)  the state, a county, or a municipality;
 617-16                    (B)  a department, board, or agency of the state,
 617-17  a county, or a municipality; and
 617-18                    (C)  a school district or a subdivision of a
 617-19  school district.
 617-20              (2)  "Payment bond beneficiary" means a person for
 617-21  whose protection and use this chapter requires a payment bond.
 617-22              (3)  "Prime contractor" means a person, firm, or
 617-23  corporation that makes a public work contract with a governmental
 617-24  entity.
 617-25              (4)  "Public work contract" means a contract for
 617-26  constructing, altering, or repairing a public building or carrying
 617-27  out or completing any public work.
  618-1              (5)  "Public work labor" means labor used directly to
  618-2  carry out a public work.
  618-3              (6)  "Public work material" means:
  618-4                    (A)  material used, or ordered and delivered for
  618-5  use, directly to carry out a public work;
  618-6                    (B)  specially fabricated material;
  618-7                    (C)  reasonable rental and actual running repair
  618-8  costs for construction equipment used, or reasonably required and
  618-9  delivered for use, directly to carry out work at the project site;
 618-10  or
 618-11                    (D)  power, water, fuel, and lubricants used, or
 618-12  ordered and delivered for use, directly to carry out a public work.
 618-13              (7)  "Retainage" means the part of the payments under a
 618-14  public work contract that are not required to be paid within the
 618-15  month after the month in which the public work labor is performed
 618-16  or public work material is delivered under the contract.
 618-17              (8)  "Specially fabricated material" means material
 618-18  ordered by a prime contractor or subcontractor that is:
 618-19                    (A)  specially fabricated for use in a public
 618-20  work; and
 618-21                    (B)  reasonably unsuitable for another use.
 618-22              (9)  "Subcontractor" means a person, firm, or
 618-23  corporation that provides public work labor or material to fulfill
 618-24  an obligation to a prime contractor or to a contractor of the prime
 618-25  contractor for the performance and installation of any of the work
 618-26  required by a public work contract.  (V.A.C.S. Art. 5160, Secs. A
 618-27  (part), B (part), C (part); New.)
  619-1          (Sections 2253.002-2253.020 reserved for expansion)
  619-2            SUBCHAPTER B.  GENERAL REQUIREMENTS; LIABILITY
  619-3        Sec. 2253.021.  PERFORMANCE AND PAYMENT BONDS REQUIRED.  (a)
  619-4  A governmental entity that makes a public work contract for more
  619-5  than $25,000 with a prime contractor shall require the contractor,
  619-6  before beginning the work, to execute to the governmental entity a
  619-7  performance bond and a payment bond.
  619-8        (b)  The performance bond is:
  619-9              (1)  solely for the protection of the state or
 619-10  governmental entity awarding the public work contract;
 619-11              (2)  in the amount of the contract; and
 619-12              (3)  conditioned on the faithful performance of the
 619-13  work in accordance with the plans, specifications, and contract
 619-14  documents.
 619-15        (c)  The payment bond is:
 619-16              (1)  solely for the protection and use of payment bond
 619-17  beneficiaries who have a direct contractual relationship with the
 619-18  prime contractor or a subcontractor to supply public work labor or
 619-19  material; and
 619-20              (2)  in the amount of the contract.
 619-21        (d)  A bond required by this section must be executed by a
 619-22  corporate surety in accordance with Section 1, Chapter 87, Acts of
 619-23  the 56th Legislature, Regular Session, 1959 (Article 7.19-1,
 619-24  Vernon's Texas Insurance Code).
 619-25        (e)  A bond executed for a public work contract with the
 619-26  state or a department, board, or agency of the state must be
 619-27  payable to the state and its form must be approved by the attorney
  620-1  general.  A bond executed for a public work contract with another
  620-2  governmental entity must be payable to and its form must be
  620-3  approved by the awarding governmental entity.  (V.A.C.S. Art.
  620-4  5160, Secs. A (part), C (part).)
  620-5        Sec. 2253.022.  BOND PROHIBITED FOR CONTRACT OF $25,000 OR
  620-6  LESS.  A governmental entity may not require a bond for a public
  620-7  work contract for $25,000 or less.  (V.A.C.S. Art. 5160, Sec. A
  620-8  (part).)
  620-9        Sec. 2253.023.  ATTEMPTED COMPLIANCE.  (a)  A bond furnished
 620-10  by a prime contractor in an attempt to comply with this chapter
 620-11  shall be construed to comply with this chapter regarding the rights
 620-12  created, limitations on those rights, and remedies provided.
 620-13        (b)  A provision in a bond furnished by a prime contractor in
 620-14  an attempt to comply with this chapter that expands or restricts a
 620-15  right or liability under this chapter shall be disregarded, and
 620-16  this chapter shall apply to that bond.  (V.A.C.S. Art. 5160, Sec. A
 620-17  (part).)
 620-18        Sec. 2253.024.  INFORMATION FROM CONTRACTOR OR SUBCONTRACTOR.
 620-19  (a)  A prime contractor, on the written request of a person who
 620-20  provides public work labor or material and when required by
 620-21  Subsection (c), shall provide to the person:
 620-22              (1)  the name and last known address of the
 620-23  governmental entity with whom the prime contractor contracted for
 620-24  the public work; and
 620-25              (2)  a copy of the payment and performance bonds for
 620-26  the public work, including bonds furnished by or to the prime
 620-27  contractor.
  621-1        (b)  A subcontractor, on the written request of a
  621-2  governmental entity, the prime contractor, a surety on a bond that
  621-3  covers the public work contract, or a person providing work under
  621-4  the subcontract and when required by Subsection (c), shall provide
  621-5  to the person requesting the information:
  621-6              (1)  the name and last known address of each person
  621-7  from whom the subcontractor purchased public work labor or
  621-8  material, other than public work material from the subcontractor's
  621-9  inventory;
 621-10              (2)  the name and last known address of each person to
 621-11  whom the subcontractor provided public work labor or material;
 621-12              (3)  a statement of whether the subcontractor furnished
 621-13  a bond for the benefit of its subcontractors and materialmen;
 621-14              (4)  the name and last known address of the surety on
 621-15  the bond the subcontractor furnished; and
 621-16              (5)  a copy of that bond.
 621-17        (c)  Information requested shall be provided within a
 621-18  reasonable time but not later than the 10th day after the receipt
 621-19  of the written request for the information.
 621-20        (d)  A person from whom information is requested may require
 621-21  payment of the actual cost, not to exceed $25, for providing the
 621-22  requested information if the person does not have a direct
 621-23  contractual relationship with the person requesting information
 621-24  that relates to the public work.
 621-25        (e)  A person who fails to provide information required by
 621-26  this section is liable to the requesting person for that person's
 621-27  reasonable and necessary costs incurred in getting the requested
  622-1  information.  (V.A.C.S. Art. 5160, Secs. I(a), (b), (d), (e).)
  622-2        Sec. 2253.025.  INFORMATION FROM PAYMENT BOND BENEFICIARY.
  622-3  (a)  A payment bond beneficiary, not later than the 30th day after
  622-4  the date the beneficiary receives a written request from the prime
  622-5  contractor or a surety on a bond on which a claim is made, shall
  622-6  provide to the contractor or surety:
  622-7              (1)  a copy of any applicable written agreement or
  622-8  purchase order; and
  622-9              (2)  any statement or payment request of the
 622-10  beneficiary that shows the amount claimed and the work performed by
 622-11  the beneficiary for which the claim is made.
 622-12        (b)  If requested, the payment bond beneficiary shall provide
 622-13  the estimated amount due for each calendar month in which the
 622-14  beneficiary performed public work labor or provided public work
 622-15  material.  (V.A.C.S. Art. 5160, Sec. I(c).)
 622-16        Sec. 2253.026.  COPY OF PAYMENT BOND AND CONTRACT.  (a)  A
 622-17  governmental entity shall furnish a certified copy of a payment
 622-18  bond and the public work contract for which the bond was given to
 622-19  any person who applies for the copy and who submits an affidavit
 622-20  that the person:
 622-21              (1)  has supplied public work labor or material for
 622-22  which the person has not been paid;
 622-23              (2)  has contracted for specially fabricated  material
 622-24  for which the person has not been paid; or
 622-25              (3)  is being sued on a payment bond.
 622-26        (b)  The copy of the payment bond or public work contract is
 622-27  prima facie evidence of the content, execution, and delivery of the
  623-1  original.
  623-2        (c)  An applicant under this section shall pay any reasonable
  623-3  fee set by the governmental entity for the actual cost of
  623-4  preparation of the copies.  (V.A.C.S. Art. 5160, Sec. F.)
  623-5        Sec. 2253.027.  LIABILITY OF GOVERNMENTAL ENTITY.  If a
  623-6  governmental entity fails to obtain from a prime contractor a
  623-7  payment bond as required by Section 2253.021:
  623-8              (1)  the entity is subject to the same liability that a
  623-9  surety would have if the surety had issued a payment bond and if
 623-10  the entity had obtained the bond; and
 623-11              (2)  a payment bond beneficiary is entitled to a lien
 623-12  on money due to the prime contractor in the same manner and to the
 623-13  same extent as if the public work contract were subject to
 623-14  Subchapter J, Chapter 53, Property Code.  (V.A.C.S. Art. 5160, Sec.
 623-15  A (part).)
 623-16          (Sections 2253.028-2253.040 reserved for expansion)
 623-17                  SUBCHAPTER C.  NOTICE REQUIREMENTS
 623-18        Sec. 2253.041.  NOTICE REQUIRED FOR CLAIM FOR PAYMENT FOR
 623-19  LABOR OR MATERIAL.  (a)  To recover in a suit under Section
 623-20  2253.073 on a payment bond for a claim for payment for public work
 623-21  labor performed or public work material delivered, a payment bond
 623-22  beneficiary must mail to the prime contractor and the surety
 623-23  written notice of the claim.
 623-24        (b)  The notice must be mailed on or before the 15th day of
 623-25  the third month after each month in which any of the claimed labor
 623-26  was performed or any of the claimed material was delivered.
 623-27        (c)  The notice must be accompanied by a sworn statement of
  624-1  account that states in substance:
  624-2              (1)  the amount claimed is just and correct; and
  624-3              (2)  all just and lawful offsets, payments, and credits
  624-4  known to the affiant have been allowed.
  624-5        (d)  The statement of account shall include the amount of any
  624-6  retainage applicable to the account that has not become due under
  624-7  the terms of the public work contract between the payment bond
  624-8  beneficiary and the prime contractor or between the payment bond
  624-9  beneficiary and a subcontractor.  (V.A.C.S. Art. 5160, Sec. B
 624-10  (part).)
 624-11        Sec. 2253.042.  COPY OF AGREEMENT AS NOTICE OF CLAIM FOR
 624-12  UNPAID LABOR OR MATERIAL.  A payment bond beneficiary has the
 624-13  option to enclose with the sworn statement of account, as the
 624-14  notice for a claim under a written agreement for payment for public
 624-15  work labor performed or public work material delivered, a copy of
 624-16  the written agreement and a statement of the completion or the
 624-17  value of partial completion of the agreement.  (V.A.C.S. Art. 5160,
 624-18  Sec. B (part).)
 624-19        Sec. 2253.043.  NOTICE OF CLAIM FOR UNPAID LABOR OR MATERIAL
 624-20  WHEN WRITTEN AGREEMENT DOES NOT EXIST.  (a)  Except as provided by
 624-21  Section 2253.044, if a written agreement does not exist between the
 624-22  payment bond beneficiary and the prime contractor or between the
 624-23  payment bond beneficiary and the subcontractor, the notice for a
 624-24  claim for unpaid bills must contain:
 624-25              (1)  the name of the party for whom the public work
 624-26  labor was performed or to whom the public work material was
 624-27  delivered;
  625-1              (2)  the approximate date of performance or delivery;
  625-2              (3)  a description of the public work labor or material
  625-3  for reasonable identification; and
  625-4              (4)  the amount due.
  625-5        (b)  The payment bond beneficiary must generally itemize the
  625-6  claim and include with it copies of documents, invoices, or orders
  625-7  that reasonably identify:
  625-8              (1)  the public work labor performed or public work
  625-9  material delivered for which the claim is made;
 625-10              (2)  the job; and
 625-11              (3)  the destination of delivery.  (V.A.C.S. Art. 5160,
 625-12  Sec. B (part).)
 625-13        Sec. 2253.044.  NOTICE OF CLAIM FOR MULTIPLE ITEMS OF LABOR
 625-14  OR MATERIAL.  The notice for a claim for lump-sum payment for
 625-15  multiple items of public work labor or material must:
 625-16              (1)  describe the labor or material in a manner that
 625-17  reasonably identifies the labor or material;
 625-18              (2)  state the name of the party for whom the labor was
 625-19  performed or to whom the material was delivered;
 625-20              (3)  state the approximate date of performance or
 625-21  delivery;
 625-22              (4)  state whether the contract is written or oral;
 625-23              (5)  state the amount of the contract; and
 625-24              (6)  state the amount claimed.  (V.A.C.S. Art. 5160,
 625-25  Sec. B (part).)
 625-26        Sec. 2253.045.  NOTICE OF CLAIM FOR UNPAID LABOR OR MATERIAL
 625-27  UNDER WRITTEN UNIT PRICE AGREEMENT.  The notice for a claim for
  626-1  public work labor performed or public work material delivered by a
  626-2  payment bond beneficiary who is a subcontractor or materialman to
  626-3  the prime contractor or to a subcontractor and who has a written
  626-4  unit price agreement that is wholly or partially completed is
  626-5  sufficient if the beneficiary attaches to the sworn statement of
  626-6  account:
  626-7              (1)  a list of units and unit prices set by the
  626-8  contract; and
  626-9              (2)  a statement of those completed and partially
 626-10  completed units.  (V.A.C.S. Art. 5160, Sec. B (part).)
 626-11        Sec. 2253.046.  NOTICE REQUIRED FOR CLAIM FOR PAYMENT OF
 626-12  RETAINAGE.  (a)  To recover in a suit under Section 2253.073 on a
 626-13  payment bond for a claim for payment of retainage, a payment bond
 626-14  beneficiary whose contract with a prime contractor or subcontractor
 626-15  provides for retainage must mail written notice of the claim to the
 626-16  prime contractor and the surety on or before the 90th day after the
 626-17  date of final completion of the public work contract.
 626-18        (b)  The notice shall consist of a statement of:
 626-19              (1)  the amount of the contract;
 626-20              (2)  any amount paid; and
 626-21              (3)  the outstanding balance.
 626-22        (c)  Notice of a claim for payment of retainage is not
 626-23  required if the amount claimed is part of a prior claim made under
 626-24  this subchapter.  (V.A.C.S. Art. 5160, Sec. B (part).)
 626-25        Sec. 2253.047.  ADDITIONAL NOTICE REQUIRED FOR PAYMENT BOND
 626-26  BENEFICIARY WITHOUT DIRECT CONTRACTUAL RELATIONSHIP WITH PRIME
 626-27  CONTRACTOR.  (a)  To recover in a suit under Section 2253.073 on a
  627-1  payment bond, a payment bond beneficiary who does not have a direct
  627-2  contractual relationship with the prime contractor for public work
  627-3  labor or material must mail notice as required by this section.
  627-4        (b)  A payment bond beneficiary who contracts with a
  627-5  subcontractor for retainage must mail, on or before the 15th day of
  627-6  the second month after the date of the beginning of the delivery of
  627-7  public work material or the performance of public work labor,
  627-8  written notice to the prime contractor that:
  627-9              (1)  the contract provides for retainage; and
 627-10              (2)  generally indicates the nature of the retainage.
 627-11        (c)  The payment bond beneficiary must mail to the prime
 627-12  contractor written notice of a claim for any unpaid public work
 627-13  labor performed or public work material delivered.  The notice must
 627-14  be mailed on or before the 15th day of the second month after each
 627-15  month in which the labor was performed or the material was
 627-16  delivered.  A copy of the statement sent to a subcontractor is
 627-17  sufficient as notice under this subsection.
 627-18        (d)  The payment bond beneficiary must mail to the prime
 627-19  contractor, on or before the 15th day of the second month after the
 627-20  receipt and acceptance of an order for specially fabricated
 627-21  material, written notice that the order has been received and
 627-22  accepted.
 627-23        (e)  This section applies only to a payment bond beneficiary
 627-24  who is not an individual mechanic or laborer and who makes a claim
 627-25  for wages.  (V.A.C.S. Art. 5160, Sec. B (part).)
 627-26        Sec. 2253.048.  MAILING NOTICE.  (a)  A notice required by
 627-27  this subchapter to be mailed must be sent by certified or
  628-1  registered mail.
  628-2        (b)  A notice required by this subchapter to be mailed to a
  628-3  prime contractor must be addressed to the prime contractor at the
  628-4  contractor's residence or last known business address.  (V.A.C.S.
  628-5  Art. 5160, Sec. B (part).)
  628-6          (Sections 2253.049-2253.070 reserved for expansion)
  628-7              SUBCHAPTER D.  CLAIMS ON BONDS; ENFORCEMENT
  628-8        Sec. 2253.071.  TERMINATION OR ABANDONMENT OF CONTRACT;
  628-9  PROCEEDS OF CONTRACT.  (a)  The proceeds of a public work contract
 628-10  are not payable, until all costs of completion of the contract work
 628-11  are paid by the contractor or the contractor's surety, to a
 628-12  contractor who furnishes a bond required by this chapter if:
 628-13              (1)  the contractor abandons performance of the
 628-14  contract; or
 628-15              (2)  the contractor's right to proceed with performance
 628-16  of the contract is lawfully terminated by the awarding governmental
 628-17  entity because of the contractor's default.
 628-18        (b)  The balance of the public work contract proceeds
 628-19  remaining after the costs of completion are paid shall be paid
 628-20  according to the contractor's and the surety's interests as may be
 628-21  established by agreement or by judgment of a court.
 628-22        (c)  A surety that completes a public work contract or incurs
 628-23  a loss under a performance bond required under this chapter has a
 628-24  claim to the proceeds of the contract prior to all other creditors
 628-25  of the prime contractor to the full extent of the surety's loss.
 628-26  That priority does not excuse the surety from paying an obligation
 628-27  under a payment bond.  (V.A.C.S. Art. 5160, Sec. E.)
  629-1        Sec. 2253.072.  STATE NOT LIABLE FOR COSTS.  The state is not
  629-2  liable for payment of a cost or expense of a suit brought by any
  629-3  party on a payment bond furnished under this chapter.  (V.A.C.S.
  629-4  Art.  5160, Sec. G (part).)
  629-5        Sec. 2253.073.  SUIT ON PAYMENT BOND.  (a)  A payment bond
  629-6  beneficiary who has provided public work labor or material under a
  629-7  public work contract for which a payment bond is furnished under
  629-8  this chapter may sue the principal or surety, jointly or severally,
  629-9  on the payment bond if the claim is not paid before the 61st day
 629-10  after the date the notice for the claim is mailed.
 629-11        (b)  Suit may be brought under Subsection (a) for:
 629-12              (1)  the unpaid balance of the beneficiary's claim at
 629-13  the time the claim was mailed or the suit is brought; and
 629-14              (2)  reasonable attorney's fees.  (V.A.C.S. Art. 5160,
 629-15  Sec. B (part).)
 629-16        Sec. 2253.074.  COSTS AND ATTORNEY'S FEES.  A court may award
 629-17  costs and reasonable attorney's fees that are equitable in a
 629-18  proceeding to enforce a claim on a payment bond or to declare that
 629-19  any part of a claim is invalid.  (V.A.C.S. Art. 5160, Sec. H.)
 629-20        Sec. 2253.075.  ASSIGNMENT OF CLAIM.  A third party to whom a
 629-21  claim is assigned is in the same position as a payment bond
 629-22  beneficiary if notice is given as required by this chapter.
 629-23  (V.A.C.S. Art. 5160, Sec. C (part).)
 629-24        Sec. 2253.076.  LIMITATIONS ON CERTAIN CLAIMS; MAXIMUM
 629-25  RETAINAGE.  (a)  The amount of a subcontractor's claim, including
 629-26  previous payments, may not exceed the proportion of the subcontract
 629-27  price that the work done bears to the total of the work covered by
  630-1  the subcontract.
  630-2        (b)  A claim for specially fabricated material that has not
  630-3  been delivered or incorporated into the public work is limited to
  630-4  material that conforms to and complies with the plans,
  630-5  specifications, and contract documents for the material.  The
  630-6  amount of the claim may not exceed the reasonable cost, less the
  630-7  fair salvage value, of the specially fabricated material.
  630-8        (c)  A claim for retainage in a notice under this subchapter
  630-9  is not valid for an amount greater than the amount of retainage
 630-10  specified in the public work contract between the payment bond
 630-11  beneficiary and the prime contractor or between the payment bond
 630-12  beneficiary and the subcontractor.  A claim for retainage is never
 630-13  valid for an amount greater than 10 percent of the amount of that
 630-14  contract.  (V.A.C.S. Art. 5160, Secs. B (part), C (part).)
 630-15        Sec. 2253.077.  VENUE.  A suit under this chapter shall be
 630-16  brought in a court in a county in which any part of the public work
 630-17  is located.  (V.A.C.S. Art. 5160, Sec. G (part).)
 630-18        Sec. 2253.078.  STATUTE OF LIMITATIONS.  (a)  A suit on a
 630-19  performance bond may not be brought after the first anniversary of
 630-20  the date of final completion, abandonment, or termination of the
 630-21  public work contract.
 630-22        (b)  A suit on a payment bond may not be brought by a payment
 630-23  bond beneficiary after the first anniversary of the date notice for
 630-24  a claim is mailed under this chapter.  (V.A.C.S. Art. 5160, Sec. G
 630-25  (part).)
 630-26        Sec. 2253.079.  CRIMINAL OFFENSE FOR FALSE AND FRAUDULENT
 630-27  CLAIM.  (a)  A person commits an offense if the person wilfully
  631-1  files a false and fraudulent claim under this chapter.
  631-2        (b)  An offense under this section is subject to the penalty
  631-3  for false swearing.  (V.A.C.S. Art. 5160, Sec. D.)
  631-4          CHAPTER 2254.  PROFESSIONAL AND CONSULTING SERVICES
  631-5                 SUBCHAPTER A.  PROFESSIONAL SERVICES
  631-6  Sec. 2254.001.  SHORT TITLE
  631-7  Sec. 2254.002.  DEFINITIONS
  631-8  Sec. 2254.003.  SELECTION OF PROVIDER; FEES
  631-9  Sec. 2254.004.  CONTRACT FOR PROFESSIONAL SERVICES OF
 631-10                    ARCHITECT OR ENGINEER
 631-11  Sec. 2254.005.  VOID CONTRACT
 631-12          (Sections 2254.006-2254.020 reserved for expansion)
 631-13                  SUBCHAPTER B.  CONSULTING SERVICES
 631-14  Sec. 2254.021.  DEFINITIONS
 631-15  Sec. 2254.022.  INTERPRETATION OF SUBCHAPTER
 631-16  Sec. 2254.023.  APPLICABILITY OF SUBCHAPTER
 631-17  Sec. 2254.024.  EXEMPTIONS
 631-18  Sec. 2254.025.  EMERGENCY WAIVER
 631-19  Sec. 2254.026.  CONTRACT WITH PRIVATE CONSULTANT
 631-20  Sec. 2254.027.  SELECTION OF PRIVATE CONSULTANT
 631-21  Sec. 2254.028.  NOTICE OF INTENT:  MAJOR CONSULTING
 631-22                    SERVICES CONTRACT
 631-23  Sec. 2254.029.  PUBLICATION IN TEXAS REGISTER BEFORE ENTERING
 631-24                    INTO MAJOR CONSULTING SERVICES CONTRACT
 631-25  Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER ENTERING
 631-26                    INTO MAJOR CONSULTING SERVICES CONTRACT
 631-27  Sec. 2254.031.  RENEWAL; AMENDMENT; EXTENSION
  632-1  Sec. 2254.032.  CONFLICTS OF INTEREST
  632-2  Sec. 2254.033.  RESTRICTION ON FORMER EMPLOYEES OF A
  632-3                    STATE AGENCY
  632-4  Sec. 2254.034.  CONTRACT VOID
  632-5  Sec. 2254.035.  DIVIDING CONTRACTS
  632-6  Sec. 2254.036.  ARCHIVES
  632-7  Sec. 2254.037.  REPORTS
  632-8  Sec. 2254.038.  MIXED CONTRACTS
  632-9  Sec. 2254.039.  COMPTROLLER'S RULES
 632-10  Sec. 2254.040.  PROCUREMENT BY GENERAL SERVICES COMMISSION
 632-11          CHAPTER 2254.  PROFESSIONAL AND CONSULTING SERVICES
 632-12                 SUBCHAPTER A.  PROFESSIONAL SERVICES
 632-13        Sec. 2254.001.  SHORT TITLE.  This subchapter may be cited as
 632-14  the Professional Services Procurement Act.  (V.A.C.S. Art. 664-4,
 632-15  Sec. 1.)
 632-16        Sec. 2254.002.  DEFINITIONS.  In this subchapter:
 632-17              (1)  "Governmental entity" means:
 632-18                    (A)  a state agency or department;
 632-19                    (B)  a district, authority, county, municipality,
 632-20  or other political subdivision of the state; or
 632-21                    (C)  a publicly owned utility.
 632-22              (2)  "Professional services" means services:
 632-23                    (A)  within the scope of the practice, as defined
 632-24  by state law, of:
 632-25                          (i)  accounting;
 632-26                          (ii)  architecture;
 632-27                          (iii)  land surveying;
  633-1                          (iv)  medicine;
  633-2                          (v)  optometry; or
  633-3                          (vi)  professional engineering; or
  633-4                    (B)  provided in connection with the professional
  633-5  employment or practice of a person who is licensed as:
  633-6                          (i)  a certified public accountant;
  633-7                          (ii)  an architect;
  633-8                          (iii)  a land surveyor;
  633-9                          (iv)  a physician, including a surgeon;
 633-10                          (v)  an optometrist; or
 633-11                          (vi)  a professional engineer.  (V.A.C.S.
 633-12  Art. 664-4, Sec. 2; New.)
 633-13        Sec. 2254.003.  SELECTION OF PROVIDER; FEES.  (a)  A
 633-14  governmental entity may not select a provider of professional
 633-15  services or award a contract for the services on the basis of
 633-16  competitive bids submitted for the contract or for the services,
 633-17  but shall make the selection and award:
 633-18              (1)  on the basis of demonstrated competence and
 633-19  qualifications to perform the services; and
 633-20              (2)  for a fair and reasonable price.
 633-21        (b)  The professional fees under the contract:
 633-22              (1)  must be consistent with and not higher than the
 633-23  recommended practices and fees published by the applicable
 633-24  professional associations; and
 633-25              (2)  may not exceed any maximum provided by law.
 633-26  (V.A.C.S. Art. 664-4, Sec. 3.)
 633-27        Sec. 2254.004.  CONTRACT FOR PROFESSIONAL SERVICES OF
  634-1  ARCHITECT OR ENGINEER.  (a)  In procuring architectural or
  634-2  engineering services, a governmental entity shall:
  634-3              (1)  first select the most highly qualified provider of
  634-4  those services on the basis of demonstrated competence and
  634-5  qualifications; and
  634-6              (2)  then attempt to negotiate with that provider a
  634-7  contract at a fair and reasonable price.
  634-8        (b)  If a satisfactory contract cannot be negotiated with the
  634-9  most highly qualified provider of architectural or engineering
 634-10  services, the entity shall:
 634-11              (1)  formally end negotiations with that provider;
 634-12              (2)  select the next most highly qualified provider;
 634-13  and
 634-14              (3)  attempt to negotiate a contract with that provider
 634-15  at a fair and reasonable price.
 634-16        (c)  The entity shall continue the process described in
 634-17  Subsection (b) to select and negotiate with providers until a
 634-18  contract is entered into.  (V.A.C.S. Art. 664-4, Sec. 3A.)
 634-19        Sec. 2254.005.  VOID CONTRACT.  A contract entered into or an
 634-20  arrangement made in violation of this subchapter is void as against
 634-21  public policy.  (V.A.C.S. Art. 664-4, Sec. 4.)
 634-22          (Sections 2254.006-2254.020 reserved for expansion)
 634-23                  SUBCHAPTER B.  CONSULTING SERVICES
 634-24        Sec. 2254.021.  DEFINITIONS.  In this subchapter:
 634-25              (1)  "Consulting service" means the service of studying
 634-26  or advising a state agency under a contract that does not involve
 634-27  the traditional relationship of employer and employee.
  635-1              (2)  "Major consulting services contract" means a
  635-2  consulting services contract for which it is reasonably foreseeable
  635-3  that the value of the contract will exceed $10,000.
  635-4              (3)  "Private consultant" means a person that provides
  635-5  or proposes to provide a consulting service.
  635-6              (4)  "State agency" means a state department,
  635-7  commission, board, office, institution, facility, or other agency
  635-8  the jurisdiction of which is not limited to a geographical portion
  635-9  of the state.  The term includes a university system and an
 635-10  institution of higher education, other than a public junior
 635-11  college, as those terms are defined by Section 61.003, Education
 635-12  Code.  (V.A.C.S. Art. 6252-11c, Sec. 1; New.)
 635-13        Sec. 2254.022.  INTERPRETATION OF SUBCHAPTER.  (a)  This
 635-14  subchapter shall be interpreted to ensure:
 635-15              (1)  the greatest and fairest competition in the
 635-16  selection by state agencies of private consultants; and
 635-17              (2)  the giving of notice to all potential private
 635-18  consultants of the need for and opportunity to provide consulting
 635-19  services.
 635-20        (b)  This subchapter does not:
 635-21              (1)  discourage state agencies from using private
 635-22  consultants if the agencies reasonably foresee that the use of
 635-23  private consultants will produce a more efficient and less costly
 635-24  operation or project;
 635-25              (2)  prohibit the making of a sole-source contract for
 635-26  consulting services if a proposal is not received from a competent,
 635-27  knowledgeable, and qualified private consultant at a reasonable
  636-1  fee, after compliance with this subchapter; or
  636-2              (3)  require or prohibit the use of competitive bidding
  636-3  procedures to purchase consulting services.  (V.A.C.S. Art.
  636-4  6252-11c, Sec. 16.)
  636-5        Sec. 2254.023.  APPLICABILITY OF SUBCHAPTER.  This subchapter
  636-6  applies to consulting services that a state agency acquires with
  636-7  money:
  636-8              (1)  appropriated by the legislature;
  636-9              (2)  derived from the exercise of the statutory duties
 636-10  of a state agency; or
 636-11              (3)  received from the federal government, unless a
 636-12  federal law or regulation conflicts with the application of this
 636-13  subchapter.  (V.A.C.S. Art. 6252-11c, Sec. 2(b).)
 636-14        Sec. 2254.024.  EXEMPTIONS.  (a)  This subchapter does not
 636-15  apply to or discourage the use of consulting services provided by:
 636-16              (1)  practitioners of professional services described
 636-17  in Subchapter A;
 636-18              (2)  private legal counsel;
 636-19              (3)  investment counselors;
 636-20              (4)  actuaries;
 636-21              (5)  medical or dental services providers; or
 636-22              (6)  other consultants whose services are determined by
 636-23  the governing board of a retirement system trust fund to be
 636-24  necessary for the governing board to perform its constitutional
 636-25  fiduciary duties, except that the governing board shall comply with
 636-26  Section 2254.030.
 636-27        (b)  If the governor, comptroller, and General Services
  637-1  Commission consider it more advantageous to the state to procure a
  637-2  particular consulting service under the procedures of Article 3,
  637-3  State Purchasing and General Services Act (Article 601b, Vernon's
  637-4  Texas Civil Statutes), instead of under this subchapter, they may
  637-5  make a memorandum of understanding to that effect and each adopt
  637-6  the memorandum by rule.  Procurement of a consulting service
  637-7  described in a memorandum of understanding under this subsection is
  637-8  subject only to Article 3, State Purchasing and General Services
  637-9  Act (Article 601b, Vernon's Texas Civil Statutes).
 637-10        (c)  The comptroller by rule may define circumstances in
 637-11  which a state agency may procure, without complying with this
 637-12  subchapter, certain consulting services that will cost less than a
 637-13  minimum amount established by the comptroller.  The comptroller
 637-14  must determine that noncompliance in those circumstances is more
 637-15  cost-effective for the state.  (V.A.C.S. Art. 6252-11c, Secs. 2(a),
 637-16  (c), (d).)
 637-17        Sec. 2254.025.  EMERGENCY WAIVER.  (a)  The governor, after
 637-18  receipt of a request complying with this section, may grant a
 637-19  limited waiver of the provisions of this subchapter for a state
 637-20  agency that requires private consulting services before compliance
 637-21  with this subchapter can be completed because of an unforeseen
 637-22  emergency.
 637-23        (b)  A state agency's request for a waiver must include
 637-24  information required by the governor, including:
 637-25              (1)  information about the nature of the emergency;
 637-26              (2)  the reason that the state agency did not foresee
 637-27  the emergency;
  638-1              (3)  the name of the private consultant with whom the
  638-2  agency intends to contract; and
  638-3              (4)  the amount of the intended contract.
  638-4        (c)  As soon as possible after the governor grants a limited
  638-5  waiver, a state agency shall comply with this subchapter to the
  638-6  extent that the requirements of this subchapter are not superfluous
  638-7  or ineffective because of the waiver.  The agency shall include
  638-8  with information filed with the secretary of state for publication
  638-9  in the Texas Register a detailed description of the emergency on
 638-10  which the request for waiver was predicated.
 638-11        (d)  The governor shall adopt rules to administer this
 638-12  section.
 638-13        (e)  In this section, "unforeseen emergency" means a
 638-14  situation that suddenly and unexpectedly causes a state agency to
 638-15  need the services of a private consultant.  The term includes the
 638-16  issuance of a court order, an actual or imminent natural disaster,
 638-17  and new state or federal legislation.  An emergency is not
 638-18  unforeseen if a state agency was negligent in foreseeing the
 638-19  occurrence of the emergency.
 638-20        (f)  This section applies to all consulting services
 638-21  contracts and renewals, amendments, and extensions of consulting
 638-22  services contracts.  (V.A.C.S. Art. 6252-11c, Sec. 10.)
 638-23        Sec. 2254.026.  CONTRACT WITH PRIVATE CONSULTANT.  A state
 638-24  agency may contract with a private consultant only if:
 638-25              (1)  there is a substantial need for the consulting
 638-26  services; and
 638-27              (2)  the agency cannot adequately perform the services
  639-1  with its own personnel or obtain the consulting services through a
  639-2  contract with another state agency.  (V.A.C.S. Art. 6252-11c,
  639-3  Sec. 3(a).)
  639-4        Sec. 2254.027.  SELECTION OF PRIVATE CONSULTANT.  In
  639-5  selecting a private consultant, a state agency shall:
  639-6              (1)  base its choice on demonstrated competence,
  639-7  knowledge, and qualifications, and on the reasonableness of the
  639-8  proposed fee for the services; and
  639-9              (2)  if other considerations are equal, give a
 639-10  preference to a private consultant whose principal place of
 639-11  business is in the state or who will manage the consulting contract
 639-12  wholly from an office in the state.  (V.A.C.S. Art. 6252-11c,
 639-13  Sec. 3(b).)
 639-14        Sec. 2254.028.  NOTICE OF INTENT:  MAJOR CONSULTING SERVICES
 639-15  CONTRACT.  (a)  Before entering into a major consulting services
 639-16  contract, a state agency shall:
 639-17              (1)  notify the Legislative Budget Board and the
 639-18  governor's Budget and Planning Office that the agency intends to
 639-19  contract with a private consultant;
 639-20              (2)  give information to the Legislative Budget Board
 639-21  and the governor's Budget and Planning Office to demonstrate that
 639-22  the agency has complied or will comply with Sections 2254.026 and
 639-23  2254.027; and
 639-24              (3)  obtain a finding of fact from the governor's
 639-25  Budget and Planning Office that the consulting services are
 639-26  necessary.
 639-27        (b)  A major consulting services contract that a state agency
  640-1  enters into without first obtaining the finding required by
  640-2  Subsection (a)(3) is void.  (V.A.C.S.  Art. 6252-11c, Sec. 4.)
  640-3        Sec. 2254.029.  PUBLICATION IN TEXAS REGISTER BEFORE ENTERING
  640-4  INTO MAJOR CONSULTING SERVICES CONTRACT.  (a)  Not later than the
  640-5  30th day before the date it enters into a major consulting services
  640-6  contract, a state agency shall file with the secretary of state for
  640-7  publication in the Texas Register:
  640-8              (1)  an invitation for private consultants to provide
  640-9  offers of consulting services;
 640-10              (2)  the name of the individual who should be contacted
 640-11  by a private consultant that intends to make an offer;
 640-12              (3)  the closing date for the receipt of offers; and
 640-13              (4)  the procedure by which the state agency will award
 640-14  the contract.
 640-15        (b)  If the consulting services sought by a state agency
 640-16  relate to services previously provided by a private consultant, the
 640-17  agency shall disclose that fact in the invitation required by
 640-18  Subsection (a).  If the state agency intends to award the contract
 640-19  for the consulting services to a private consultant that previously
 640-20  provided the services, unless a better offer is received, the
 640-21  agency shall disclose its intention in the invitation required by
 640-22  Subsection (a).  (V.A.C.S. Art. 6252-11c, Sec. 5.)
 640-23        Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER  ENTERING
 640-24  INTO MAJOR CONSULTING SERVICES CONTRACT.  Not later than the 10th
 640-25  day after the date of entering into a major consulting services
 640-26  contract,  the state agency shall file with the secretary of state
 640-27  for publication in the Texas Register:
  641-1              (1)  a description of the activities that the private
  641-2  consultant will conduct;
  641-3              (2)  the name and business address of the private
  641-4  consultant;
  641-5              (3)  the total value and the beginning and ending dates
  641-6  of the contract; and
  641-7              (4)  the dates on which documents, films, recordings,
  641-8  or reports that the private consultant is required to present to
  641-9  the agency are due.  (V.A.C.S. Art. 6252-11c, Sec. 6.)
 641-10        Sec. 2254.031.  RENEWAL; AMENDMENT; EXTENSION.  (a)  A state
 641-11  agency that intends to renew a major consulting services contract
 641-12  shall:
 641-13              (1)  file with the secretary of state for publication
 641-14  in the Texas Register the information required by Section 2254.030
 641-15  not later than the 10th day after the date the contract is renewed
 641-16  if the renewal is not a major consulting services contract; or
 641-17              (2)  comply with Sections 2254.028 and 2254.029 if the
 641-18  renewal is a major consulting services contract.
 641-19        (b)  A state agency that intends to renew a contract that is
 641-20  not a major consulting services contract shall comply with Sections
 641-21  2254.028 and 2254.029 if the original contract and the renewal have
 641-22  a reasonably foreseeable value totaling more than $10,000.
 641-23        (c)  A state agency that intends to amend or extend  a major
 641-24  consulting services contract shall:
 641-25              (1)  not later than the 10th day after the date the
 641-26  contract is amended or extended, file the information required by
 641-27  Section 2254.030 with the secretary of state for publication in the
  642-1  Texas Register if the amendment or extension is not a major
  642-2  consulting services contract; or
  642-3              (2)  comply with Sections 2254.028 and 2254.029 if the
  642-4  amendment or extension is a major consulting services contract.
  642-5        (d)  A state agency that intends to amend or extend  a
  642-6  contract that is not a major consulting services contract shall
  642-7  comply with Sections 2254.028 and 2254.029 if the original contract
  642-8  and the amendment or extension have a reasonably foreseeable value
  642-9  totaling more than $10,000.  (V.A.C.S. Art. 6252-11c, Sec.  7.)
 642-10        Sec. 2254.032.  CONFLICTS OF INTEREST.  (a)  An officer or
 642-11  employee of a state agency  shall report to the chief executive of
 642-12  the agency, not later than the 10th day after the date on which a
 642-13  private consultant submits an offer to provide consulting services
 642-14  to the agency, any financial interest that:
 642-15              (1)  the officer or employee has in the private
 642-16  consultant who submitted the offer; or
 642-17              (2)  an individual who is related to the officer or
 642-18  employee within the second degree by consanguinity or affinity, as
 642-19  determined under Chapter 573, has in the private consultant who
 642-20  submitted the offer.
 642-21        (b)  This section applies to all consulting services
 642-22  contracts and renewals, amendments, and extensions of consulting
 642-23  services contracts.  (V.A.C.S. Art. 6252-11c, Sec. 8.)
 642-24        Sec. 2254.033.  RESTRICTION ON FORMER EMPLOYEES OF A STATE
 642-25  AGENCY.  (a)  An individual who offers to provide consulting
 642-26  services to a state agency and who has been employed by that agency
 642-27  or by another agency at any time during the two years preceding the
  643-1  making of the offer shall disclose in the offer:
  643-2              (1)  the nature of the previous employment with the
  643-3  agency or the other agency;
  643-4              (2)  the date the employment is terminated; and
  643-5              (3)  the annual rate of compensation for the employment
  643-6  at the time of its termination.
  643-7        (b)  A state agency that accepts an offer from an individual
  643-8  described in Subsection (a) shall include in the information filed
  643-9  under Section 2254.030 a statement about the individual's previous
 643-10  employment and the nature of the employment.  (V.A.C.S. Art.
 643-11  6252-11c, Sec. 9.)
 643-12        Sec. 2254.034.  CONTRACT VOID.  (a)  A contract entered into
 643-13  in violation of Sections 2254.029-2254.031 is void.
 643-14        (b)  A contract entered into with a private consultant who
 643-15  did not comply with Section 2254.033 is void.
 643-16        (c)  If a contract is void under this section:
 643-17              (1)  the comptroller may not draw a warrant or transmit
 643-18  money to satisfy an obligation under the contract; and
 643-19              (2)  a state agency may not make any payment under the
 643-20  contract with state or federal money or money held in or outside
 643-21  the state treasury until the agency has complied with Sections
 643-22  2254.029-2254.031.
 643-23        (d)  This section applies to all consulting services
 643-24  contracts, including renewals, amendments, and extensions of
 643-25  consulting services contracts.  (V.A.C.S. Art. 6252-11c, Sec. 11.)
 643-26        Sec. 2254.035.  DIVIDING CONTRACTS.  (a)  A state agency may
 643-27  not divide a consulting services contract into more than one
  644-1  contract to avoid the requirements of this subchapter.
  644-2        (b)  This section applies to all consulting services
  644-3  contracts, including renewals, amendments, and extensions of
  644-4  consulting services contracts.  (V.A.C.S. Art. 6252-11c, Sec. 12.)
  644-5        Sec. 2254.036.  ARCHIVES.  (a)  On request, a state agency
  644-6  shall, after the agency's contract with a private consultant has
  644-7  ended,  supply the Legislative Budget Board and the governor's
  644-8  Budget and Planning Office with copies of all documents, films,
  644-9  recordings, or reports compiled by the consultant under the
 644-10  contract.
 644-11        (b)  Copies of all documents, films, recordings, or reports
 644-12  compiled by the private consultant shall be filed with the Texas
 644-13  State Library and shall be retained by the library for at least
 644-14  five years.
 644-15        (c)  The Texas State Library shall list each document, film,
 644-16  recording, and report given to it under Subsection (b) and shall
 644-17  file the list at the end of each calendar quarter with the
 644-18  secretary of state for publication in the Texas Register.
 644-19  (V.A.C.S. Art. 6252-11c, Sec. 13.)
 644-20        Sec. 2254.037.  REPORTS.  As part of the biennial budgetary
 644-21  hearing process conducted by the Legislative Budget Board and the
 644-22  governor's Budget and Planning Office, a state agency shall report
 644-23  to the Legislative Budget Board and the governor's Budget and
 644-24  Planning Office on any actions taken in response to the
 644-25  recommendations of any private consultant with whom the state
 644-26  agency contracts during the previous biennium.  (V.A.C.S. Art.
 644-27  6252-11c, Sec. 14.)
  645-1        Sec. 2254.038.  MIXED CONTRACTS.  This subchapter applies to
  645-2  a contract that involves both consulting and other services if the
  645-3  primary objective of the contract is the acquisition of consulting
  645-4  services.  (V.A.C.S. Art. 6252-11c, Sec. 15.)
  645-5        Sec. 2254.039.  COMPTROLLER'S RULES.  (a)  The comptroller
  645-6  shall adopt rules to implement and administer this subchapter.  The
  645-7  comptroller's rules may not conflict with or cover a matter on
  645-8  which this subchapter authorizes the governor to adopt rules.
  645-9        (b)  The comptroller shall give proposed rules to the
 645-10  governor and the General Services Commission for review and comment
 645-11  before adopting the rules.  (V.A.C.S. Art. 6252-11c, Sec. 17.)
 645-12        Sec. 2254.040.  PROCUREMENT BY GENERAL SERVICES COMMISSION.
 645-13  (a)  The General Services Commission shall, on request of a state
 645-14  agency, procure for the agency consulting services that are covered
 645-15  by this subchapter.
 645-16        (b)  The commission may require reimbursement for the costs
 645-17  it incurs in procuring the services.  (V.A.C.S. Art. 6252-11c, Sec.
 645-18  18.)
 645-19            CHAPTER 2255.  PRIVATE DONORS OR ORGANIZATIONS
 645-20  Sec. 2255.001.  RULES
 645-21            CHAPTER 2255.  PRIVATE DONORS OR ORGANIZATIONS
 645-22        Sec. 2255.001.  RULES.  (a)  A state agency that is
 645-23  authorized by statute to accept money from a private donor or for
 645-24  which a private organization exists that is designed to further the
 645-25  purposes and duties of the agency shall adopt rules governing the
 645-26  relationship between:
 645-27              (1)  the donor or organization; and
  646-1              (2)  the agency and its employees.
  646-2        (b)  Rules adopted under this section shall govern all
  646-3  aspects of conduct of the agency and its employees in the
  646-4  relationship, including:
  646-5              (1)  administration and investment of funds received by
  646-6  the organization for the benefit of the agency;
  646-7              (2)  use of an employee or property of the agency by
  646-8  the donor or organization;
  646-9              (3)  service by an officer or employee of the agency as
 646-10  an officer or director of the donor or organization; and
 646-11              (4)  monetary enrichment of an officer or employee of
 646-12  the agency by the donor or organization.
 646-13        (c)  A rule adopted under this section may not conflict with
 646-14  or supersede a requirement of a statute regulating:
 646-15              (1)  the conduct of an employee of a state agency; or
 646-16              (2)  the procedures of a state agency.
 646-17        (d)  A newly created state agency shall adopt rules under
 646-18  this section as soon as possible after its creation.
 646-19        (e)  In this section, "state agency" means a department,
 646-20  commission, board, office, or other agency in the executive branch
 646-21  of state government created by the constitution or a statute of
 646-22  this state, including a university system or an institution of
 646-23  higher education as defined by Section 61.003, Education Code.
 646-24  (V.A.C.S. Art. 6252-11f, Secs. 1, 2, 3 (part).)
 646-25                CHAPTER 2256.  PUBLIC FUNDS INVESTMENT
 646-26    SUBCHAPTER A.  AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES
 646-27  Sec. 2256.001.  SHORT TITLE
  647-1  Sec. 2256.002.  DEFINITIONS
  647-2  Sec. 2256.003.  AUTHORITY TO INVEST FUNDS
  647-3  Sec. 2256.004.  INVESTMENT POLICIES
  647-4  Sec. 2256.005.  STANDARD OF CARE
  647-5  Sec. 2256.006.  AUTHORIZED INVESTMENTS:  OBLIGATIONS OF, OR
  647-6                    GUARANTEED BY, GOVERNMENTAL ENTITIES
  647-7  Sec. 2256.007.  AUTHORIZED INVESTMENTS:  CERTIFICATES
  647-8                    OF DEPOSIT
  647-9  Sec. 2256.008.  AUTHORIZED INVESTMENTS:  REPURCHASE
 647-10                    AGREEMENTS
 647-11  Sec. 2256.009.  AUTHORIZED INVESTMENTS:  BANKERS' ACCEPTANCES
 647-12  Sec. 2256.010.  AUTHORIZED INVESTMENTS:  COMMERCIAL PAPER
 647-13  Sec. 2256.011.  AUTHORIZED INVESTMENTS:  MUTUAL FUNDS
 647-14  Sec. 2256.012.  AUTHORIZED INVESTMENTS:  COMMON TRUST FUNDS
 647-15  Sec. 2256.013.  BIDS FOR COMMON TRUST FUND INVESTMENTS
 647-16  Sec. 2256.014.  BANK UNWILLING TO BID; PRESUMPTION
 647-17  Sec. 2256.015.  SUBCHAPTER CUMULATIVE
 647-18  Sec. 2256.016.  SUBCHAPTER NOT APPLICABLE TO RETIREMENT
 647-19                    SYSTEMS
 647-20          (Sections 2256.017-2256.050 reserved for expansion)
 647-21               SUBCHAPTER B.  INVESTMENT OF LOCAL FUNDS
 647-22  Sec. 2256.051.  DEFINITIONS
 647-23  Sec. 2256.052.  RULES GOVERNING INVESTMENT
 647-24  Sec. 2256.053.  INVESTMENT RATE OF RETURN
 647-25  Sec. 2256.054.  DESIGNATION OF INVESTMENT OFFICER
 647-26  Sec. 2256.055.  EXPRESS AUTHORITY REQUIRED
 647-27  Sec. 2256.056.  LEGAL TITLE IN INVESTMENT POOL
  648-1  Sec. 2256.057.  INTERNAL MANAGEMENT REPORTS
  648-2  Sec. 2256.058.  PRIVATE AUDITOR
  648-3  Sec. 2256.059.  EFFECT OF OTHER LAW
  648-4          (Sections 2256.060-2256.100 reserved for expansion)
  648-5        SUBCHAPTER C.  PAYMENT FOR AND DELIVERY AND DEPOSIT OF
  648-6                     SECURITIES PURCHASED BY STATE
  648-7  Sec. 2256.101.  AUTHORIZED INVESTMENTS; APPLICATION OF
  648-8                    INCOME
  648-9  Sec. 2256.102.  PAYMENT FOR SECURITIES PURCHASED BY STATE
 648-10  Sec. 2256.103.  DELIVERY OF SECURITIES PURCHASED BY STATE
 648-11  Sec. 2256.104.  DEPOSIT OF SECURITIES PURCHASED BY STATE
 648-12                CHAPTER 2256.  PUBLIC FUNDS INVESTMENT
 648-13    SUBCHAPTER A.  AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES
 648-14        Sec. 2256.001.  SHORT TITLE.  This subchapter may be cited as
 648-15  the Public Funds Investment Act.  (V.A.C.S. Art. 842a-2, Sec. 1.)
 648-16        Sec. 2256.002.  DEFINITIONS.  In this subchapter:
 648-17              (1)  "Institution of higher education" has the meaning
 648-18  assigned by Section 61.003, Education Code.
 648-19              (2)  "School district" means a public school district.
 648-20  (V.A.C.S. Art. 842a-2, Sec. 2(a) (part); New.)
 648-21        Sec. 2256.003.  AUTHORITY TO INVEST FUNDS.  Each governing
 648-22  body of the following entities may purchase, sell, and invest its
 648-23  funds and funds under its control in investments authorized under
 648-24  this subchapter in compliance with investment policies approved by
 648-25  the governing body and according to the standard of care prescribed
 648-26  by Section 2256.005:
 648-27              (1)  a municipality;
  649-1              (2)  a county;
  649-2              (3)  a school district;
  649-3              (4)  a district or authority created under:
  649-4                    (A)  Article III, Section 52(b)(1) or (2), of the
  649-5  Texas Constitution; or
  649-6                    (B)  Article XVI, Section 59, of the Texas
  649-7  Constitution;
  649-8              (5)  an institution of higher education;
  649-9              (6)  a hospital district;
 649-10              (7)  a nonprofit corporation acting on behalf of an
 649-11  entity listed in Subdivisions (1)-(6); or
 649-12              (8)  a public funds investment pool created under
 649-13  Chapter 791 acting on behalf of a combination of entities listed in
 649-14  Subdivisions (1)-(6).  (V.A.C.S. Art. 842a-2, Sec. 2(a) (part) (as
 649-15  amended by Chaps. 39, 628, 693, and 750, Acts 71st Leg., R.S.,
 649-16  1989); Sec. 5(a) (part).)
 649-17        Sec. 2256.004.  INVESTMENT POLICIES.  (a)  The investment
 649-18  policies must:
 649-19              (1)  be written;
 649-20              (2)  primarily emphasize safety of principal and
 649-21  liquidity; and
 649-22              (3)  address investment diversification, yield,
 649-23  maturity and the quality and capability of investment management.
 649-24        (b)  The investment policies may provide that bids for
 649-25  certificates of deposit be solicited:
 649-26              (1)  orally;
 649-27              (2)  in writing;
  650-1              (3)  electronically; or
  650-2              (4)  in any combination of those methods.  (V.A.C.S.
  650-3  Art. 842a-2, Secs. 5(a) (part), (b).)
  650-4        Sec. 2256.005.  STANDARD OF CARE.  Investments shall be made
  650-5  with judgment and care, under prevailing circumstances, that a
  650-6  person of prudence, discretion, and intelligence would exercise in
  650-7  the management of the person's own affairs, not for speculation,
  650-8  but for investment, considering the probable safety of capital and
  650-9  the probable income to be derived.  (V.A.C.S. Art. 842a-2, Sec. 4.)
 650-10        Sec. 2256.006.  AUTHORIZED INVESTMENTS:  OBLIGATIONS OF, OR
 650-11  GUARANTEED BY, GOVERNMENTAL ENTITIES.   The following are
 650-12  authorized investments under this subchapter:
 650-13              (1)  obligations of the United States or its
 650-14  instrumentalities;
 650-15              (2)  direct obligations of this state or its agencies;
 650-16              (3)  other obligations, the principal and interest of
 650-17  which are unconditionally guaranteed or insured by this state or
 650-18  the United States or its instrumentalities; and
 650-19              (4)  obligations of states, agencies, counties, cities,
 650-20  and other political subdivisions of any state rated as to
 650-21  investment quality by a nationally recognized investment rating
 650-22  firm not less than A or its equivalent.  (V.A.C.S. Art. 842a-2,
 650-23  Sec. 2(a) (part) (as amended by Chaps. 39, 628, 693, and 750, Acts
 650-24  71st Leg., R.S., 1989).)
 650-25        Sec. 2256.007.  AUTHORIZED INVESTMENTS:  CERTIFICATES OF
 650-26  DEPOSIT.  A certificate of deposit is an authorized investment
 650-27  under this subchapter if the certificate of deposit is issued by a
  651-1  state or national bank domiciled in this state or a savings and
  651-2  loan association domiciled in this state and is:
  651-3              (1)  guaranteed or insured by the Federal Deposit
  651-4  Insurance Corporation or its successor;
  651-5              (2)  secured by obligations that are described by
  651-6  Section 2256.006, including mortgage backed securities directly
  651-7  issued by a federal agency or instrumentality that have a market
  651-8  value of not less than the principal amount of the certificates; or
  651-9              (3)  secured in any other manner and amount provided by
 651-10  law for deposits of the investing entity.  (V.A.C.S. Art. 842a-2,
 651-11  Sec. 2(a) (part) (as amended by Chaps. 39, 628, 693, and 750, Acts
 651-12  71st Leg., R.S., 1989).)
 651-13        Sec. 2256.008.  AUTHORIZED INVESTMENTS:  REPURCHASE
 651-14  AGREEMENTS.  (a)  A fully collateralized repurchase agreement is an
 651-15  authorized investment under this subchapter if the repurchase
 651-16  agreement:
 651-17              (1)  has a defined termination date;
 651-18              (2)  is secured by obligations described by Section
 651-19  2256.006(1);
 651-20              (3)  is pledged with a third party selected or approved
 651-21  by the entity; and
 651-22              (4)  is placed through a primary government securities
 651-23  dealer, as defined by the Federal Reserve, or a bank domiciled in
 651-24  this state.
 651-25        (b)  In this section, "repurchase agreement" means a
 651-26  simultaneous agreement to buy, hold for a specified time, and sell
 651-27  back at a future date, obligations described by Section
  652-1  2256.006(1), the principal and interest of which are guaranteed by
  652-2  the United States in market value of not less than the principal
  652-3  amount of the funds disbursed.  The term includes a direct security
  652-4  repurchase agreement and a reverse security repurchase agreement.
  652-5  (V.A.C.S. Art. 842a-2, Secs. 2(a) (part) (as amended by Chaps. 39,
  652-6  628, 693, and 750, Acts 71st Leg., R.S., 1989), (c) (part).)
  652-7        Sec. 2256.009.  AUTHORIZED INVESTMENTS:  BANKERS'
  652-8  ACCEPTANCES.  A bankers' acceptance is an authorized investment
  652-9  under this subchapter if the bankers' acceptance:
 652-10              (1)  has a stated maturity of 270 days or fewer from
 652-11  the date of its issuance;
 652-12              (2)  will be, in accordance with its terms, liquidated
 652-13  in full at maturity;
 652-14              (3)  is eligible for collateral for borrowing from a
 652-15  Federal Reserve Bank; and
 652-16              (4)  is accepted by a bank organized and existing under
 652-17  the laws of the United States or any state, if the short-term
 652-18  obligations of the bank, or of a bank holding company of which the
 652-19  bank is the largest subsidiary, are rated not less than A-1 or P-1,
 652-20  or an equivalent rating, by at least one nationally recognized
 652-21  credit rating agency.  (V.A.C.S. Art. 842a-2, Secs. 2(a) (part) (as
 652-22  amended by Chaps. 39, 628, 693, and 750, Acts 71st Leg., R.S.,
 652-23  1989), (c) (part).)
 652-24        Sec. 2256.010.  AUTHORIZED INVESTMENTS:  COMMERCIAL PAPER.
 652-25  Commercial paper is an authorized investment under this subchapter
 652-26  if the commercial paper:
 652-27              (1)  has a stated maturity of 270 days or fewer from
  653-1  the date of its issuance; and
  653-2              (2)  is rated not less than A-1 or P-1, or an
  653-3  equivalent rating, by at least:
  653-4                    (A)  two nationally recognized credit rating
  653-5  agencies; or
  653-6                    (B)  one nationally recognized credit rating
  653-7  agency and is fully secured by an irrevocable letter of credit
  653-8  issued by a bank organized and existing under the laws of the
  653-9  United States or any state.  (V.A.C.S. Art. 842a-2, Sec. 2(a)
 653-10  (part) (as amended by Chaps. 39, 628, 693, and 750, Acts 71st Leg.,
 653-11  R.S., 1989).)
 653-12        Sec. 2256.011.  AUTHORIZED INVESTMENTS:  MUTUAL FUNDS.  (a)
 653-13  A no-load money market mutual fund is an authorized investment
 653-14  under this subchapter if the mutual fund:
 653-15              (1)  is registered with the Securities and Exchange
 653-16  Commission;
 653-17              (2)  has a dollar-weighted average portfolio maturity
 653-18  of 120 days or fewer;
 653-19              (3)  is invested exclusively in obligations described
 653-20  by Sections 2256.006-2256.010; and
 653-21              (4)  includes in its investment objectives the
 653-22  maintenance of a stable net asset value of $1 for each share.
 653-23        (b)  An entity is not authorized by this section to:
 653-24              (1)  invest in the aggregate more than 80 percent of
 653-25  its monthly average fund balance, excluding bond proceeds and
 653-26  reserves and other funds held for debt service, in money market
 653-27  mutual funds described in Subsection (a); or
  654-1              (2)  invest its funds or funds under its control,
  654-2  excluding bond proceeds and reserves and other funds held for debt
  654-3  service, in any one money market mutual fund in an amount that
  654-4  exceeds 10 percent of the total assets of the money market mutual
  654-5  fund.  (V.A.C.S. Art. 842a-2, Secs. 2(c) (part), (d).)
  654-6        Sec. 2256.012.  AUTHORIZED INVESTMENTS:  COMMON TRUST FUNDS.
  654-7  (a)  A qualified common trust fund is an authorized investment for
  654-8  the local funds of an institution of higher education and for the
  654-9  bond proceeds and reserves and other funds held for debt service of
 654-10  a municipality, county, school district, or navigation district if
 654-11  the common trust fund:
 654-12              (1)  is owned or administered by a bank domiciled in
 654-13  this state;
 654-14              (2)  consists exclusively of assets that are
 654-15  obligations described by Section 2256.006-2256.010;
 654-16              (3)  complies with the Internal Revenue Code of 1986
 654-17  and applicable federal regulations governing the investment of bond
 654-18  proceeds and reserves and other funds held for debt service; and
 654-19              (4)  meets the cash flow requirements and the
 654-20  investment needs of the political subdivision or institution.
 654-21        (b)  In this section, "common trust fund" includes a
 654-22  comparable investment device.  (V.A.C.S. Art. 842a-2, Sec. 2(b).)
 654-23        Sec. 2256.013.  BIDS FOR COMMON TRUST FUND INVESTMENTS.  (a)
 654-24  An institution of higher education or a municipality, county,
 654-25  school district, or navigation district may invest in a common
 654-26  trust fund under Section 2256.012 only after soliciting orally or
 654-27  in another manner competitive bids from at least three banks.
  655-1        (b)  The solicitations for bids required by Subsection (a)
  655-2  for a county shall be made only to banks located in the county
  655-3  unless there are fewer than three banks available for the
  655-4  investment located in the county; in which case, the solicitations
  655-5  shall be made to each bank in the county and, as necessary to
  655-6  complete the solicitations, to banks located in this state.
  655-7        (c)  The solicitations for bids required by Subsection (a)
  655-8  for a municipality or a school district shall be made only to banks
  655-9  located in the municipality or school district unless there are
 655-10  fewer than three banks available for the investments located in the
 655-11  municipality or school district; in which case, the solicitations
 655-12  shall be made to each bank in the municipality or school district
 655-13  and, as necessary to complete the solicitations, to banks in a
 655-14  county in which the municipality or school district is located.  If
 655-15  there are fewer than three banks available for investments in the
 655-16  municipality or school district and in the counties in which the
 655-17  municipality or school district is located, the solicitations shall
 655-18  be made to each bank in the municipality or school district and in
 655-19  the counties in which the municipality or school district is
 655-20  located, and, as necessary to complete the solicitations, to banks
 655-21  located in this state.
 655-22        (d)  This section applies to a nonprofit corporation acting
 655-23  on behalf of a municipality, county, or school district as it
 655-24  applies to the municipality, county, or school district.  (V.A.C.S.
 655-25  Art. 842a-2, Secs. 3(a)-(c), (e) (part).)
 655-26        Sec. 2256.014.  BANK UNWILLING TO BID; PRESUMPTION.  A
 655-27  governmental entity or nonprofit corporation that is notified by a
  656-1  bank that the bank is unable or unwilling to bid for investments
  656-2  under Section 2256.012 may presume that the bank continues to be
  656-3  unable or unwilling to bid for investments until the bank in
  656-4  writing notifies the entity otherwise.  (V.A.C.S. Art. 842a-2, Sec.
  656-5  3(f).)
  656-6        Sec. 2256.015.  SUBCHAPTER CUMULATIVE.  The authority granted
  656-7  by this subchapter is in addition to that granted by other law.
  656-8  (V.A.C.S. Art. 842a-2, Sec. 7.)
  656-9        Sec. 2256.016.  SUBCHAPTER NOT APPLICABLE TO RETIREMENT
 656-10  SYSTEMS.  This subchapter does not apply to a public retirement
 656-11  system as defined by Section 802.001.  (V.A.C.S. Art. 842a-2,
 656-12  Sec. 6.)
 656-13          (Sections 2256.017-2256.050 reserved for expansion)
 656-14               SUBCHAPTER B.  INVESTMENT OF LOCAL FUNDS
 656-15        Sec. 2256.051.  DEFINITIONS.  In this subchapter:
 656-16              (1)  "Investment pool" means an entity created under
 656-17  Chapter 791 to invest public funds of two or more local
 656-18  governments.
 656-19              (2)  "Local funds" means public funds in the custody of
 656-20  a state agency or political subdivision that:
 656-21                    (A)  are not required by law to be deposited in
 656-22  the state treasury; and
 656-23                    (B)  the agency or subdivision has authority to
 656-24  invest.
 656-25              (3)  "Political subdivision" means a county,
 656-26  municipality, or special purpose district.
 656-27              (4)  "State agency" means an office, department,
  657-1  commission, board, other agency, institution of higher education,
  657-2  or river authority, that is part of any branch of state government.
  657-3  (V.A.C.S. Art. 4413(34c), Sec. 1; New.)
  657-4        Sec. 2256.052.  RULES GOVERNING INVESTMENT.  Each state
  657-5  agency or political subdivision shall adopt rules governing the
  657-6  investment of its local funds, including rules specifying the scope
  657-7  of authority of officers and employees designated to invest local
  657-8  funds.  (V.A.C.S. Art. 4413(34c), Sec. 2(a).)
  657-9        Sec. 2256.053.  INVESTMENT RATE OF RETURN.  A state agency,
 657-10  political subdivision, or investment pool shall invest its local
 657-11  funds in investments that:
 657-12              (1)  yield the highest possible rate of return;
 657-13              (2)  protect the principal; and
 657-14              (3)  are consistent with the operating requirements of
 657-15  the agency, subdivision, or pool as determined by the governing
 657-16  body.  (V.A.C.S. Art. 4413(34c), Sec. 6(a).)
 657-17        Sec. 2256.054.  DESIGNATION OF INVESTMENT OFFICER.  (a)  Each
 657-18  state agency or political subdivision shall designate, by rule,
 657-19  order, ordinance, or resolution, one or more officers or employees
 657-20  of the agency, subdivision, or investment pool to be responsible
 657-21  for the investment of its local funds.
 657-22        (b)  Subsection (a) does not apply if an officer of the
 657-23  agency or subdivision is assigned by law the function of investing
 657-24  its local funds.
 657-25        (c)  An officer or employee of a commission created under
 657-26  Chapter 391, Local Government Code, is ineligible to be designated
 657-27  as an investment officer under Subsection (a).  (V.A.C.S. Art.
  658-1  4413(34c), Secs. 2(b), 3(a).)
  658-2        Sec. 2256.055.  EXPRESS AUTHORITY REQUIRED.  A person may not
  658-3  deposit, withdraw, invest, transfer, or manage in any other manner
  658-4  local funds of a state agency or political subdivision without
  658-5  express written authority of the governing body or chief executive
  658-6  officer of the agency or subdivision.  (V.A.C.S. Art. 4413(34c),
  658-7  Sec. 3(b).)
  658-8        Sec. 2256.056.  LEGAL TITLE IN INVESTMENT POOL.  A political
  658-9  subdivision by contract may delegate to an investment pool the
 658-10  authority to hold legal title as custodian of investments purchased
 658-11  with its local funds.  (V.A.C.S. Art. 4413(34c), Sec. 6(b).)
 658-12        Sec. 2256.057.  INTERNAL MANAGEMENT REPORTS.  (a)  At least
 658-13  annually, the investment officer of a state agency or political
 658-14  subdivision shall prepare a written report of the agency's or
 658-15  subdivision's local funds investment transactions for the preceding
 658-16  year.
 658-17        (b)  The report must:
 658-18              (1)  describe in detail the investment position of the
 658-19  agency or subdivision on the date of the report;
 658-20              (2)  be prepared jointly by all investment officers of
 658-21  the agency or subdivision; and
 658-22              (3)  be signed by each investment officer of the agency
 658-23  or subdivision.
 658-24        (c)  The report shall be delivered to the governing body and
 658-25  the chief executive officer of the agency or subdivision.
 658-26  (V.A.C.S. Art. 4413(34c), Sec. 4.)
 658-27        Sec. 2256.058.  PRIVATE AUDITOR.  Notwithstanding any other
  659-1  law, a state agency shall employ a private auditor if authorized by
  659-2  the legislative audit committee on the committee's initiative or on
  659-3  request of the governing body of the agency.  (V.A.C.S. Art.
  659-4  4413(34c), Sec. 5.)
  659-5        Sec. 2256.059.  EFFECT OF OTHER LAW.  This subchapter does
  659-6  not:
  659-7              (1)  prohibit an investment specifically authorized by
  659-8  other law; or
  659-9              (2)  authorize an investment specifically prohibited by
 659-10  other law.  (V.A.C.S. Art. 4413(34c), Sec. 7.)
 659-11          (Sections 2256.060-2256.100 reserved for expansion)
 659-12          SUBCHAPTER C.  PAYMENT FOR AND DELIVERY AND DEPOSIT
 659-13                   OF SECURITIES PURCHASED BY STATE
 659-14        Sec. 2256.101.  AUTHORIZED INVESTMENTS; APPLICATION OF
 659-15  INCOME.  (a)  A board or agency of the state that may direct the
 659-16  investment of funds of the board or agency may invest those funds
 659-17  in:
 659-18              (1)  direct obligations of the United States;
 659-19              (2)  obligations the principal and interest of which
 659-20  are guaranteed by the United States;
 659-21              (3)  direct obligations of or participation
 659-22  certificates guaranteed by:
 659-23                    (A)  a farm credit bank;
 659-24                    (B)  the Federal National Mortgage Association;
 659-25                    (C)  a federal home loan bank; or
 659-26                    (D)  a bank for cooperatives;
 659-27              (4)  certificates of deposit of a bank or trust
  660-1  company, the deposits of which are fully secured by a pledge of
  660-2  securities described by Subdivisions (1)-(3);
  660-3              (5)  other securities made eligible for investment by
  660-4  other law or the constitution; or
  660-5              (6)  a combination of securities described by
  660-6  Subdivisions (1)-(5).
  660-7        (b)  The board or agency shall direct the application of
  660-8  income from investments under this section.  (V.A.C.S. Art.
  660-9  6252-5a, Sec. 1.)
 660-10        Sec. 2256.102.  PAYMENT FOR SECURITIES PURCHASED BY STATE.
 660-11  The comptroller, the state treasurer, or the disbursing officer of
 660-12  an agency that has the power to invest assets directly may pay for
 660-13  authorized securities purchased from or through a member in good
 660-14  standing of the National Association of Securities Dealers or from
 660-15  or through a national or state bank on receiving an invoice from
 660-16  the seller of the securities showing that the securities have been
 660-17  purchased by the board or agency and that the amount to be paid for
 660-18  the securities is just, due, and unpaid.  (V.A.C.S. Art. 6252-5a,
 660-19  Sec. 2 (part).)
 660-20        Sec. 2256.103.  DELIVERY OF SECURITIES PURCHASED BY STATE.  A
 660-21  security purchased under Section 2256.102 may be delivered to the
 660-22  state treasurer, a bank, or the board or agency investing its
 660-23  funds.  The delivery shall be made under normal and recognized
 660-24  practices in the securities and banking industries, including the
 660-25  book entry procedure of the Federal Reserve Bank.  (V.A.C.S. Art.
 660-26  6252-5a, Sec. 2 (part).)
 660-27        Sec. 2256.104.  DEPOSIT OF SECURITIES PURCHASED BY STATE.  At
  661-1  the direction of the state treasurer or the agency, a security
  661-2  purchased under Section 2256.102 may be deposited in trust with a
  661-3  bank or federal reserve bank or branch designated by the treasurer,
  661-4  whether in or outside the state.  The deposit shall be evidenced by
  661-5  a trust receipt of the bank with which the securities are
  661-6  deposited.  (V.A.C.S. Art. 6252-5a, Sec. 3.)
  661-7              CHAPTER 2257.  COLLATERAL FOR PUBLIC FUNDS
  661-8                   SUBCHAPTER A.  GENERAL PROVISIONS
  661-9  Sec. 2257.001.  SHORT TITLE
 661-10  Sec. 2257.002.  DEFINITIONS
 661-11  Sec. 2257.003.  CHAPTER NOT APPLICABLE TO DEFERRED COMPENSATION
 661-12                    PLANS
 661-13  Sec. 2257.004.  CONFLICT WITH OTHER LAW
 661-14  Sec. 2257.005.  CONTRACT GOVERNS LEGAL ACTION
 661-15          (Sections 2257.006-2257.020 reserved for expansion)
 661-16    SUBCHAPTER B.  DEPOSITORY; SECURITY FOR DEPOSIT OF PUBLIC FUNDS
 661-17  Sec. 2257.021.  COLLATERAL REQUIRED
 661-18  Sec. 2257.022.  AMOUNT OF COLLATERAL
 661-19  Sec. 2257.023.  COLLATERAL POLICY
 661-20  Sec. 2257.024.  CONTRACT FOR SECURING DEPOSIT OF PUBLIC FUNDS
 661-21  Sec. 2257.025.  RECORDS OF DEPOSITORY
 661-22  Sec. 2257.026.  CHANGE IN AMOUNT OR ACTIVITY OF DEPOSITS
 661-23                    OF PUBLIC FUNDS
 661-24          (Sections 2257.027-2257.040 reserved for expansion)
 661-25            SUBCHAPTER C.  CUSTODIAN; PERMITTED INSTITUTION
 661-26  Sec. 2257.041.  DEPOSIT OF SECURITIES WITH CUSTODIAN
 661-27  Sec. 2257.042.  DEPOSIT OF SECURITIES WITH PERMITTED
  662-1                    INSTITUTION
  662-2  Sec. 2257.043.  DEPOSITORY AS CUSTODIAN OR PERMITTED
  662-3                    INSTITUTION
  662-4  Sec. 2257.044.  CUSTODIAN AS BAILEE
  662-5  Sec. 2257.045.  RECEIPT OF SECURITY BY CUSTODIAN
  662-6  Sec. 2257.046.  BOOKS AND RECORDS OF CUSTODIAN; INSPECTION
  662-7  Sec. 2257.047.  BOOKS AND RECORDS OF PERMITTED INSTITUTION
  662-8  Sec. 2257.048.  ATTACHMENT AND PERFECTION OF SECURITY
  662-9                    INTEREST
 662-10          (Sections 2257.049-2257.060 reserved for expansion)
 662-11           SUBCHAPTER D.  AUDITS AND EXAMINATIONS; PENALTIES
 662-12  Sec. 2257.061.  AUDITS AND EXAMINATIONS
 662-13  Sec. 2257.062.  PENALTIES
 662-14  Sec. 2257.063.  MITIGATING CIRCUMSTANCES
 662-15  Sec. 2257.064.  REINSTATEMENT
 662-16          (Sections 2257.065-2257.080 reserved for expansion)
 662-17                  SUBCHAPTER E.  EXEMPT INSTITUTIONS
 662-18  Sec. 2257.081.  DEFINITION
 662-19  Sec. 2257.082.  FUNDS OF EXEMPT INSTITUTION
 662-20  Sec. 2257.083.  INVESTMENT; SELECTION OF DEPOSITORY
 662-21              CHAPTER 2257.  COLLATERAL FOR PUBLIC FUNDS
 662-22                   SUBCHAPTER A.  GENERAL PROVISIONS
 662-23        Sec. 2257.001.  SHORT TITLE.  This chapter may be cited as
 662-24  the Public Funds Collateral Act.  (V.A.C.S.  Art. 2529d, Sec. 1.)
 662-25        Sec. 2257.002.  DEFINITIONS.  In this chapter:
 662-26              (1)  "Bank holding company" has the meaning assigned by
 662-27  Article 2, Chapter I, The Texas Banking Code (Article 342-102,
  663-1  Vernon's Texas Civil Statutes).
  663-2              (2)  "Board" means the State Depository Board.
  663-3              (3)  "Control" has the meaning assigned by Article 2,
  663-4  Chapter I, The Texas Banking Code (Article 342-102, Vernon's Texas
  663-5  Civil Statutes).
  663-6              (4)  "Deposit of public funds" means public funds of a
  663-7  public entity that:
  663-8                    (A)  the state treasurer does not manage under
  663-9  Chapter 404; and
 663-10                    (B)  are held as a demand or time deposit by a
 663-11  depository institution expressly authorized by law to accept a
 663-12  public entity's demand or time deposit.
 663-13              (5)  "Eligible security" means:
 663-14                    (A)  a surety bond;
 663-15                    (B)  an investment security; or
 663-16                    (C)  an ownership or beneficial interest in an
 663-17  investment security, other than an option contract to purchase or
 663-18  sell an investment security.
 663-19              (6)  "Investment security" means:
 663-20                    (A)  an obligation that in the opinion of the
 663-21  attorney general of the United States is a general obligation of
 663-22  the United States and backed by its full faith and credit;
 663-23                    (B)  a general or special obligation issued by a
 663-24  public agency that:
 663-25                          (i)  is payable from taxes, revenues, or a
 663-26  combination of taxes and revenues;
 663-27                          (ii)  is rated as to investment quality by
  664-1  a nationally recognized rating agency; and
  664-2                          (iii)  has a current rating of not less
  664-3  than A or its equivalent; or
  664-4                    (C)  a security in which a public entity may
  664-5  invest under Subchapter A, Chapter 2256.
  664-6              (7)  "Permitted institution" means:
  664-7                    (A)  a Federal Reserve Bank;
  664-8                    (B)  a clearing corporation, as defined by
  664-9  Section 8.102(c), Business & Commerce Code;
 664-10                    (C)  a bank eligible to be a custodian under
 664-11  Section 2257.041; or
 664-12                    (D)  a state or nationally chartered bank that is
 664-13  controlled by a bank holding company that controls a bank eligible
 664-14  to be a custodian under Section 2257.041.
 664-15              (8)  "Public agency" means a state or a political or
 664-16  governmental entity, agency, instrumentality, or subdivision of a
 664-17  state, including a municipality, an institution of higher
 664-18  education, as defined by Section 61.003, Education Code, a junior
 664-19  college, a district created under Article XVI, Section 59, of the
 664-20  Texas Constitution, and a public hospital.
 664-21              (9)  "Public entity" means a public agency in this
 664-22  state, but does not include an institution of higher education, as
 664-23  defined by Section 61.003, Education Code.
 664-24              (10)  "State agency" means a public entity that:
 664-25                    (A)  has authority that is not limited to a
 664-26  geographic portion of the state; and
 664-27                    (B)  was created by the constitution or a
  665-1  statute.
  665-2              (11)  "Trust receipt" means evidence of receipt,
  665-3  identification, and recording, including:
  665-4                    (A)  a physical controlled trust receipt; or
  665-5                    (B)  a written or electronically transmitted
  665-6  advice of transaction.  (V.A.C.S. Art. 2529d, Secs. 2(1), (2), (3),
  665-7  (4), (6) (part), (7), (8), (9), (10), (11).)
  665-8        Sec. 2257.003.  CHAPTER NOT APPLICABLE TO DEFERRED
  665-9  COMPENSATION PLANS.  This chapter does not apply to funds that a
 665-10  public entity maintains or administers under a deferred
 665-11  compensation plan, the federal income tax treatment of which is
 665-12  governed by Section 401(k) or 457 of the Internal Revenue Code of
 665-13  1986 (26 U.S.C. Sections 401(k) and 457).  (V.A.C.S. Art. 2529d,
 665-14  Sec.  11(c).)
 665-15        Sec. 2257.004.  CONFLICT WITH OTHER LAW.  This chapter
 665-16  prevails over any other law relating to security for a deposit of
 665-17  public funds to the extent of any conflict.  (V.A.C.S. Art. 2529d,
 665-18  Sec.  11(a).)
 665-19        Sec. 2257.005.  CONTRACT GOVERNS LEGAL ACTION.  A legal
 665-20  action brought by or against a public entity that arises out of or
 665-21  in connection with the duties of a depository, custodian, or
 665-22  permitted institution under this chapter must be brought and
 665-23  maintained as provided by the contract with the public entity.
 665-24  (V.A.C.S. Art. 2529d, Sec. 7.)
 665-25          (Sections 2257.006-2257.020 reserved for expansion)
 665-26    SUBCHAPTER B.  DEPOSITORY; SECURITY FOR DEPOSIT OF PUBLIC FUNDS
 665-27        Sec. 2257.021.  COLLATERAL REQUIRED.  A deposit of public
  666-1  funds shall be secured by eligible security to the extent and in
  666-2  the manner required by this chapter.  (V.A.C.S. Art. 2529d, Sec.
  666-3  3.)
  666-4        Sec. 2257.022.  AMOUNT OF COLLATERAL.  (a)  The total value
  666-5  of eligible security to secure a deposit of public funds must be in
  666-6  an amount not less than the amount of the deposit of public funds:
  666-7              (1)  increased by the amount of any accrued interest;
  666-8  and
  666-9              (2)  reduced to the extent that the United States or an
 666-10  instrumentality of the United States insures the deposit.
 666-11        (b)  The value of a surety bond is its face value.
 666-12        (c)  The value of an investment security is its market value.
 666-13  (V.A.C.S. Art. 2529d, Sec. 4.)
 666-14        Sec. 2257.023.  COLLATERAL POLICY.  (a)  In accordance with a
 666-15  written policy approved by the governing body of the public entity,
 666-16  a public entity shall determine if an investment security is
 666-17  eligible to secure deposits of public funds.
 666-18        (b)  The written policy may include:
 666-19              (1)  the security of the institution that obtains or
 666-20  holds an investment security;
 666-21              (2)  the substitution or release of an investment
 666-22  security; and
 666-23              (3)  the method by which an investment security used to
 666-24  secure a deposit of public funds is valued.  (V.A.C.S. Art. 2529d,
 666-25  Sec. 5(a).)
 666-26        Sec. 2257.024.  CONTRACT FOR SECURING DEPOSIT OF PUBLIC
 666-27  FUNDS.  (a)  A public entity may contract with a bank domiciled in
  667-1  this state to secure a deposit of public funds.
  667-2        (b)  The contract may contain a term or condition relating to
  667-3  an investment security used as security for a deposit of public
  667-4  funds, including a term or condition relating to the:
  667-5              (1)  possession of the collateral;
  667-6              (2)  substitution or release of an investment security;
  667-7              (3)  ownership of the investment securities of the bank
  667-8  used to secure a deposit of public funds; and
  667-9              (4)  method by which an investment security used to
 667-10  secure a deposit of public funds is valued.  (V.A.C.S. Art. 2529d,
 667-11  Sec. 5(b).)
 667-12        Sec. 2257.025.  RECORDS OF DEPOSITORY.  (a)  A public
 667-13  entity's depository shall maintain a separate, accurate, and
 667-14  complete record relating to a pledged investment security, a
 667-15  deposit of public funds, and a transaction related to a pledged
 667-16  investment security.
 667-17        (b)  The board or the public entity may examine and verify at
 667-18  any reasonable time a pledged investment security or a record a
 667-19  depository maintains under this section.  (V.A.C.S. Art. 2529d,
 667-20  Secs. 9(a), (c) (part).)
 667-21        Sec. 2257.026.  CHANGE IN AMOUNT OR ACTIVITY OF DEPOSITS OF
 667-22  PUBLIC FUNDS.  A public entity shall inform the depository for the
 667-23  public entity's deposit of public funds of a significant change in
 667-24  the amount or activity of those deposits within a reasonable time
 667-25  before the change occurs.  (V.A.C.S. Art. 2529d, Sec. 5(c).)
 667-26          (Sections 2257.027-2257.040 reserved for expansion)
 667-27            SUBCHAPTER C.  CUSTODIAN; PERMITTED INSTITUTION
  668-1        Sec. 2257.041.  DEPOSIT OF SECURITIES WITH CUSTODIAN.  (a)
  668-2  In addition to other authority granted by law, a depository for a
  668-3  public entity other than a state agency may deposit with a
  668-4  custodian a security pledged to secure a deposit of public funds.
  668-5        (b)  At the request of the public entity, a depository for a
  668-6  public entity other than a state agency shall deposit with a
  668-7  custodian a security pledged to secure a deposit of public funds.
  668-8        (c)  A depository for a state agency shall deposit with a
  668-9  custodian a security pledged to secure a deposit of public funds.
 668-10  The custodian and the state agency shall agree in writing on the
 668-11  terms and conditions for securing a deposit of public funds.
 668-12        (d)  A custodian must be approved by the public entity and
 668-13  be:
 668-14              (1)  a state or national bank that:
 668-15                    (A)  is designated by the board as a state
 668-16  depository;
 668-17                    (B)  is domiciled in this state; and
 668-18                    (C)  has a capital stock and permanent surplus of
 668-19  $5 million or more;
 668-20              (2)  the Texas Treasury Safekeeping Trust Company; or
 668-21              (3)  a Federal Reserve Bank or a branch of a Federal
 668-22  Reserve Bank.
 668-23        (e)  A custodian holds in trust the securities to secure the
 668-24  deposit of public funds of the public entity in the depository
 668-25  pledging the securities.  (V.A.C.S. Art. 2529d, Secs. 6(a) (part),
 668-26  (b) (part), (c).)
 668-27        Sec. 2257.042.  DEPOSIT OF SECURITIES WITH PERMITTED
  669-1  INSTITUTION.  (a)  A custodian may deposit with a permitted
  669-2  institution an investment security the custodian holds under
  669-3  Section 2257.041.
  669-4        (b)  If a deposit is made under Subsection (a):
  669-5              (1)  the permitted institution shall hold the
  669-6  investment security to secure funds the public entity deposits in
  669-7  the depository that pledges the investment security;
  669-8              (2)  the trust receipt the custodian issues under
  669-9  Section 2257.045 shall show that the custodian has deposited the
 669-10  security in a permitted institution; and
 669-11              (3)  the permitted institution, on receipt of the
 669-12  investment security, shall immediately issue to the custodian an
 669-13  advice of transaction or other document that is evidence that the
 669-14  custodian deposited the security in the permitted institution.
 669-15  (V.A.C.S. Art. 2529d, Sec. 6(e) (part).)
 669-16        Sec. 2257.043.  DEPOSITORY AS CUSTODIAN OR PERMITTED
 669-17  INSTITUTION.  (a)  A public entity other than a state agency may
 669-18  prohibit a depository or an entity of which the depository is a
 669-19  branch from being the custodian of or permitted institution for a
 669-20  security the depository pledges to secure a deposit of public
 669-21  funds.
 669-22        (b)  A depository or an entity of which the depository is a
 669-23  branch may not be the custodian of or permitted institution for a
 669-24  security the depository pledges to secure a deposit of public funds
 669-25  by a state agency.  (V.A.C.S. Art. 2529d, Secs. 6(a) (part), (b)
 669-26  (part).)
 669-27        Sec. 2257.044.  CUSTODIAN AS BAILEE.  (a)  A custodian under
  670-1  this chapter or a custodian of a security pledged to an institution
  670-2  of higher education, as defined by Section 61.003, Education Code,
  670-3  whether acting alone or through a permitted institution, is for all
  670-4  purposes the bailee or agent of the public entity or institution
  670-5  depositing the public funds with the depository.
  670-6        (b)  To the extent of any conflict, Subsection (a) prevails
  670-7  over Chapter 8 or 9, Business & Commerce Code.  (V.A.C.S. Art.
  670-8  2529d, Sec. 8 (part).)
  670-9        Sec. 2257.045.  RECEIPT OF SECURITY BY CUSTODIAN.  On receipt
 670-10  of an investment security, a custodian shall:
 670-11              (1)  immediately identify on its books and records, by
 670-12  book entry or another method, the pledge of the security to the
 670-13  public entity; and
 670-14              (2)  promptly issue and deliver to the appropriate
 670-15  public entity officer a trust receipt for the pledged security.
 670-16  (V.A.C.S. Art. 2529d, Sec. 6(d) (part).)
 670-17        Sec. 2257.046.  BOOKS AND RECORDS OF CUSTODIAN; INSPECTION.
 670-18  (a)  A public entity's custodian shall maintain a separate,
 670-19  accurate, and complete record relating to each pledged investment
 670-20  security and each transaction relating to a pledged investment
 670-21  security.
 670-22        (b)  The board or the public entity may examine and verify at
 670-23  any reasonable time a pledged investment security or a record a
 670-24  custodian maintains under this section.  The public entity or its
 670-25  agent may inspect at any time an investment security evidenced by a
 670-26  trust receipt.
 670-27        (c)  The public entity's custodian shall file a collateral
  671-1  report with the board in the manner and on the dates prescribed by
  671-2  the board.  (V.A.C.S. Art. 2529d, Secs. 6(d) (part), 9(b), (c)
  671-3  (part), (e).)
  671-4        Sec. 2257.047.  BOOKS AND RECORDS OF PERMITTED INSTITUTION.
  671-5  (a)  A permitted institution may apply book entry procedures when
  671-6  an investment security held by a custodian is deposited under
  671-7  Section 2257.042.
  671-8        (b)  A permitted institution's records must at all times
  671-9  state the name of the custodian that deposits an investment
 671-10  security in the permitted institution.  (V.A.C.S. Art. 2529d, Sec.
 671-11  6(e) (part).)
 671-12        Sec. 2257.048.  ATTACHMENT AND PERFECTION OF SECURITY
 671-13  INTEREST.  (a)  A security interest that arises out of a
 671-14  depository's pledge of a security to secure a deposit of public
 671-15  funds by a public entity or an institution of higher education, as
 671-16  defined by Section 61.003, Education Code, is created, attaches,
 671-17  and is perfected for all purposes under state law from the time
 671-18  that the custodian identifies the pledge of the security on the
 671-19  custodian's books and records and issues the trust receipt.
 671-20        (b)  A security interest in a pledged security remains
 671-21  perfected in the hands of a subsequent custodian or permitted
 671-22  institution.  (V.A.C.S. Art. 2529d, Sec. 8 (part).)
 671-23          (Sections 2257.049-2257.060 reserved for expansion)
 671-24           SUBCHAPTER D.  AUDITS AND EXAMINATIONS; PENALTIES
 671-25        Sec. 2257.061.  AUDITS AND EXAMINATIONS.  As part of an audit
 671-26  or regulatory examination of a public entity's depository or
 671-27  custodian, the auditor or examiner shall:
  672-1              (1)  examine and verify pledged investment securities
  672-2  and records maintained under Section 2257.025 or 2257.046; and
  672-3              (2)  report any significant or material noncompliance
  672-4  with this chapter to the board.  (V.A.C.S. Art. 2529d, Sec. 9(d).)
  672-5        Sec. 2257.062.  PENALTIES.  (a)  The board may revoke a
  672-6  depository's designation as a state depository for one year if,
  672-7  after notice and a hearing, the board makes a written finding that
  672-8  the depository, while acting as either a depository or a custodian:
  672-9              (1)  did not maintain reasonable compliance with this
 672-10  chapter; and
 672-11              (2)  failed to remedy a violation of this chapter
 672-12  within a reasonable time after receiving written notice of the
 672-13  violation.
 672-14        (b)  The board may permanently revoke a depository's
 672-15  designation as a state depository if the board makes a written
 672-16  finding that the depository:
 672-17              (1)  has not maintained reasonable compliance with this
 672-18  chapter; and
 672-19              (2)  has acted in bad faith by not remedying a
 672-20  violation of this chapter.  (V.A.C.S. Art. 2529d, Secs. 10(a),
 672-21  (b).)
 672-22        Sec. 2257.063.  MITIGATING CIRCUMSTANCES.  (a)  The board
 672-23  shall consider the total circumstances relating to the performance
 672-24  of a depository or custodian when the board makes a finding
 672-25  required by Section 2257.062, including the extent to which the
 672-26  noncompliance is minor, isolated, temporary, or nonrecurrent.
 672-27        (b)  The board may not find that a depository or custodian
  673-1  did not maintain reasonable compliance with this chapter if the
  673-2  noncompliance results from the public entity's failure to comply
  673-3  with Section 2257.026.
  673-4        (c)  This section does not relieve a depository or custodian
  673-5  of the obligation to secure a deposit of public funds with eligible
  673-6  security in the amount and manner required by this chapter within a
  673-7  reasonable time after the public entity deposits the deposit of
  673-8  public funds with the depository.  (V.A.C.S. Art. 2529d, Secs.
  673-9  10(d), (e).)
 673-10        Sec. 2257.064.  REINSTATEMENT.  The board may reinstate a
 673-11  depository's designation as a state depository if:
 673-12              (1)  the board determines that the depository has
 673-13  remedied all violations of this chapter; and
 673-14              (2)  the depository assures the board to the board's
 673-15  satisfaction that the depository will maintain reasonable
 673-16  compliance with this chapter.  (V.A.C.S.  Art. 2529d, Sec. 10(c).)
 673-17          (Sections 2257.065-2257.080 reserved for expansion)
 673-18                  SUBCHAPTER E.  EXEMPT INSTITUTIONS
 673-19        Sec. 2257.081.  DEFINITION.  In this subchapter, "exempt
 673-20  institution" means:
 673-21              (1)  a public retirement system, as defined by Section
 673-22  802.001; or
 673-23              (2)  the permanent school fund, as defined by Section
 673-24  15.01, Education Code.  (V.A.C.S. Art. 2529d, Sec. 2(5).)
 673-25        Sec. 2257.082.  FUNDS OF EXEMPT INSTITUTION.  An exempt
 673-26  institution is not required to have its funds fully insured or
 673-27  collateralized at all times if:
  674-1              (1)  the funds are held by:
  674-2                    (A)  a custodian of the institution's assets
  674-3  under a trust agreement; or
  674-4                    (B)  a person in connection with a transaction
  674-5  related to an investment; and
  674-6              (2)  the governing body of the institution, in
  674-7  exercising its fiduciary responsibility, determines that the
  674-8  institution is adequately protected by using a trust agreement,
  674-9  special deposit, surety bond, substantial deposit insurance, or
 674-10  other method an exempt institution commonly uses to protect itself
 674-11  from liability.  (V.A.C.S. Art. 2529d, Sec. 11(b) (part).)
 674-12        Sec. 2257.083.  INVESTMENT; SELECTION OF DEPOSITORY.  This
 674-13  chapter does not:
 674-14              (1)  prohibit an exempt institution from prudently
 674-15  investing in a certificate of deposit; or
 674-16              (2)  restrict the selection of a depository by the
 674-17  governing body of an exempt institution in accordance with its
 674-18  fiduciary duty.  (V.A.C.S. Art.  2529d, Sec. 11(b) (part).)
 674-19              (Chapters 2258-2300 reserved for expansion)
 674-20         SUBTITLE G.  ECONOMIC DEVELOPMENT PROGRAMS INVOLVING
 674-21                   BOTH STATE AND LOCAL GOVERNMENTS
 674-22        CHAPTER 2301.  SUPERCONDUCTING SUPER COLLIDER FACILITY
 674-23                          RESEARCH AUTHORITY
 674-24                   SUBCHAPTER A.  GENERAL PROVISIONS
 674-25  Sec. 2301.001.  DEFINITIONS
 674-26  Sec. 2301.002.  ESTABLISHMENT OF AUTHORITY
 674-27  Sec. 2301.003.  BOARD OF DIRECTORS
  675-1  Sec. 2301.004.  PAYMENT FROM AD VALOREM TAXES
  675-2  Sec. 2301.005.  WRITTEN CONTRACT REQUIREMENTS
  675-3  Sec. 2301.006.  TAX EXEMPTION
  675-4  Sec. 2301.007.  LOANS AND GRANTS
  675-5          (Sections 2301.008-2301.030 reserved for expansion)
  675-6                 SUBCHAPTER B.  POWERS OF AN AUTHORITY
  675-7  Sec. 2301.031.  DESCRIPTION OF AUTHORITY
  675-8  Sec. 2301.032.  AUTHORITY TO BRING SUIT
  675-9  Sec. 2301.033.  AGREEMENTS
 675-10  Sec. 2301.034.  ACQUISITION OF PROPERTY
 675-11  Sec. 2301.035.  FUNDS
 675-12  Sec. 2301.036.  ELIGIBLE PROJECTS
 675-13  Sec. 2301.037.  EXERCISE OF OTHER POWERS
 675-14          (Sections 2301.038-2301.060 reserved for expansion)
 675-15      SUBCHAPTER C.  POWERS OF STATE AGENCIES AND PUBLIC ENTITIES
 675-16  Sec. 2301.061.  POWERS OF STATE AGENCIES AND PUBLIC ENTITIES
 675-17                    TO ACT
 675-18  Sec. 2301.062.  AGREEMENTS
 675-19  Sec. 2301.063.  ACQUISITION OF PROPERTY
 675-20  Sec. 2301.064.  USE OF FUNDS
 675-21  Sec. 2301.065.  ELIGIBLE PROJECTS
 675-22  Sec. 2301.066.  EFFECT ON OTHER LAWS
 675-23  Sec. 2301.067.  ENFORCEMENT OF REGULATIONS
 675-24  Sec. 2301.068.  ELECTIONS
 675-25          (Sections 2301.069-2301.090 reserved for expansion)
 675-26                 SUBCHAPTER D.  BONDS AND OTHER FUNDS
 675-27  Sec. 2301.091.  BONDS
  676-1  Sec. 2301.092.  ISSUANCE OF BONDS
  676-2  Sec. 2301.093.  USE OF PROCEEDS
  676-3  Sec. 2301.094.  USE OF FUNDS
  676-4         SUBTITLE G.  ECONOMIC DEVELOPMENT PROGRAMS INVOLVING
  676-5                   BOTH STATE AND LOCAL GOVERNMENTS
  676-6        CHAPTER 2301.  SUPERCONDUCTING SUPER COLLIDER FACILITY
  676-7                          RESEARCH AUTHORITY
  676-8                   SUBCHAPTER A.  GENERAL PROVISIONS
  676-9        Sec. 2301.001.  DEFINITIONS.  In this chapter:
 676-10              (1)  "Agreement" includes a contract or lease.
 676-11              (2)  "Authority" means a research authority created
 676-12  under this chapter.
 676-13              (3)  "Board" means the board of directors of an
 676-14  authority.
 676-15              (4)  "Bond" means any type of obligation issued by an
 676-16  authority under this chapter, including any bond, note, draft,
 676-17  bill, warrant, debenture, interim certificate, revenue or bond
 676-18  anticipation note, any form of contract the authority considers
 676-19  appropriate for the purchase of property including an installment
 676-20  purchase, conditional purchase, or lease with option to purchase,
 676-21  or other evidence of indebtedness.
 676-22              (5)  "Eligible project" means a project necessary or
 676-23  incidental to the super collider facility and its neighboring
 676-24  communities, including the acquisition, construction, operation,
 676-25  maintenance, or enhancement of:
 676-26                    (A)  roads, bridges, and rights of way;
 676-27                    (B)  housing;
  677-1                    (C)  real and personal property;
  677-2                    (D)  police, fire, medical, cultural,
  677-3  educational, and research services, equipment, institutions, and
  677-4  resources;
  677-5                    (E)  other community support services;
  677-6                    (F)  flood control, water, and wastewater
  677-7  treatment facilities;
  677-8                    (G)  other infrastructure improvements; and
  677-9                    (H)  rights useful in connection with the super
 677-10  collider facility and its neighboring communities.
 677-11              (6)  "Public entity" means any county, municipality,
 677-12  district or authority created under Article III, Section 52, or
 677-13  Article XVI, Section 59, of the Texas Constitution, or other
 677-14  political or corporate body of the state.
 677-15              (7)  "Super collider facility" means any
 677-16  superconducting super collider high-energy research facility that
 677-17  is or is proposed to be sponsored, authorized, and funded in part
 677-18  by the United States government.  (V.A.C.S. Art. 4413(47e), Sec.
 677-19  2.)
 677-20        Sec. 2301.002.  ESTABLISHMENT OF AUTHORITY.  (a)  Two or more
 677-21  public entities, by adopting substantially identical resolutions,
 677-22  orders, or ordinances, may establish a research authority and
 677-23  specify the authority's powers consistent with this chapter.
 677-24        (b)  The name of an authority must include the name or
 677-25  description of the area of the state in which the super collider
 677-26  facility is located or proposed to be located.
 677-27        (c)  An additional public entity may join an authority:
  678-1              (1)  by adopting a resolution, order, or ordinance
  678-2  substantially identical to those by which the authority is
  678-3  established; and
  678-4              (2)  on attaining the consent of the public entities
  678-5  that established the authority or that are subsequently added.
  678-6        (d)  Subject to the terms of an agreement entered into by an
  678-7  authority, public entities comprising the authority may amend their
  678-8  resolutions, orders, or ordinances establishing an authority by the
  678-9  adoption of substantially identical amending resolutions, orders,
 678-10  or ordinances.  (V.A.C.S. Art. 4413(47e), Sec. 3(a).)
 678-11        Sec. 2301.003.  BOARD OF DIRECTORS.  (a)  An authority is
 678-12  governed by a board of directors composed of the number of
 678-13  directors determined by the resolutions, orders, or ordinances
 678-14  governing the authority.  Directors serve two-year terms expiring
 678-15  June 1 of each odd-numbered year.
 678-16        (b)  The board shall elect a presiding officer from among its
 678-17  members.
 678-18        (c)  An employee, officer, or member of the governing body of
 678-19  a participating public entity may serve as a director.
 678-20        (d)  A director, officer, or employee of an authority may not
 678-21  have a personal interest, other than in the individual's official
 678-22  capacity, in an agreement executed by the authority.  (V.A.C.S.
 678-23  Art. 4413(47e), Sec. 3(b).)
 678-24        Sec. 2301.004.  PAYMENT FROM AD VALOREM TAXES.  (a)  An
 678-25  agreement that is between one or more public entities and an
 678-26  authority and includes payments in whole or in part from ad valorem
 678-27  taxes levied by the public entity may provide that the authority
  679-1  shall establish a uniform tax rate that each participating public
  679-2  entity is obligated to levy and collect for the authority and pay
  679-3  to the authority as provided by the agreement.  The rate
  679-4  established by the authority may not exceed any maximum rate in the
  679-5  agreement.
  679-6        (b)  A payment under an agreement under this section that is
  679-7  made in whole or in part from ad valorem taxes is payment of
  679-8  principal and interest on an evidence of indebtedness of the public
  679-9  entity for the purposes of Section 26.04, Tax Code, regardless of
 679-10  whether the agreement constitutes "debt" within the meaning of that
 679-11  section or pays the principal and interest on bonds of the
 679-12  authority.  (V.A.C.S. Art. 4413(47e), Sec. 5(d).)
 679-13        Sec. 2301.005.  WRITTEN CONTRACT REQUIREMENTS.  (a)  A county
 679-14  may not contract with an authority providing for periodic payments
 679-15  to be made by the county for longer than one year unless the
 679-16  authority also contracts as provided by Subsection (b) with at
 679-17  least two other counties.
 679-18        (b)  Each contract executed under this section must:
 679-19              (1)  be in writing;
 679-20              (2)  be in substantially the same form, except as to
 679-21  the source and timing of funds to be paid under the contract;
 679-22              (3)  provide that funds or any amounts earned from the
 679-23  investment of those funds received by the authority under the
 679-24  contract may not be used for payment of salary to an employee of
 679-25  the authority; and
 679-26              (4)  provide that funds received by the authority under
 679-27  the contract may be used only to pay or reimburse the costs of the
  680-1  acquisition of land or an interest in land or to pay expenses or
  680-2  other costs incidental to that acquisition.
  680-3        (c)  The requirement that payments to be made under a
  680-4  contract are determined according to a uniform amount for each
  680-5  motor vehicle registered in the county does not make the contracts
  680-6  have a different form.   (V.A.C.S. Art. 4413(47e), Sec. 5A.)
  680-7        Sec. 2301.006.  TAX EXEMPTION.  An authority and its
  680-8  property, income, and operations are exempt from taxes imposed by
  680-9  the state, an agency or instrumentality of this state, or a public
 680-10  entity of the state.  (V.A.C.S. Art. 4413(47e), Sec. 8.)
 680-11        Sec. 2301.007.  LOANS AND GRANTS.  A public entity may make
 680-12  loans and grants of public money or property for eligible projects
 680-13  that contribute to the public purposes of development and
 680-14  diversification of the economy of the state, the elimination of
 680-15  underemployment and unemployment in the state, or the development
 680-16  or expansion of transportation or commerce in the state.  (V.A.C.S.
 680-17  Art. 4413(47e), Sec. 9.)
 680-18          (Sections 2301.008-2301.030 reserved for expansion)
 680-19                 SUBCHAPTER B.  POWERS OF AN AUTHORITY
 680-20        Sec. 2301.031.  DESCRIPTION OF AUTHORITY.  An authority is a
 680-21  political and corporate body and a political subdivision of this
 680-22  state.  (V.A.C.S. Art. 4413(47e), Sec. 4(a) (part).)
 680-23        Sec. 2301.032.  AUTHORITY TO BRING SUIT.  An authority may
 680-24  sue and be sued.  (V.A.C.S. Art. 4413(47e), Sec. 4(a) (part).)
 680-25        Sec. 2301.033.  AGREEMENTS.  An authority may make agreements
 680-26  with and accept donations, grants, and loans from any person,
 680-27  including the United States, this state, a department or agency of
  681-1  this state, a public entity, and a public or private corporation,
  681-2  including those public entities creating the authority.  (V.A.C.S.
  681-3  Art. 4413(47e), Sec. 4(a) (part).)
  681-4        Sec. 2301.034.  ACQUISITION OF PROPERTY.  An authority may:
  681-5              (1)  without taking competitive bids, acquire, convey,
  681-6  grant, loan, pledge, mortgage, grant a security interest in, or
  681-7  otherwise dispose of any land, easement, road, bridge,
  681-8  infrastructure improvement, other property or improvement, service
  681-9  or cash, or interest in any of the items described by this
 681-10  subdivision that will permit or aid in the accomplishment of the
 681-11  purposes of this chapter; and
 681-12              (2)  exercise the power of eminent domain to acquire
 681-13  land, easements, and property interests as determined to be
 681-14  necessary by the board for eligible projects, including the power
 681-15  to acquire fee title in land condemned.  (V.A.C.S. Art. 4413(47e),
 681-16  Sec. 4(a) (part).)
 681-17        Sec. 2301.035.  FUNDS.  An authority may:
 681-18              (1)  make loans to public or private entities to fund
 681-19  eligible projects;
 681-20              (2)  issue bonds to fund eligible projects; and
 681-21              (3)  encumber its property, pledge its revenues, and
 681-22  enter credit agreements, as defined by Chapter 656, Acts of the
 681-23  68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
 681-24  Texas Civil Statutes), to secure its bonds.  (V.A.C.S. Art.
 681-25  4413(47e), Sec. 4(a) (part).)
 681-26        Sec. 2301.036.  ELIGIBLE PROJECTS.  An authority may:
 681-27              (1)  undertake eligible projects;
  682-1              (2)  adopt and enforce reasonable rules to carry out
  682-2  the authority's purposes, to secure and maintain safe, efficient,
  682-3  and normal operation and maintenance of the super collider facility
  682-4  and its eligible projects, and to regulate privileges on any land,
  682-5  easement, or property interest adjoining the site of the super
  682-6  collider facility to prevent activities on the adjoining land,
  682-7  easement, or property interest that could adversely affect the
  682-8  safe, efficient, and normal operation and maintenance of the super
  682-9  collider facility or its eligible projects; and
 682-10              (3)  exercise any power necessary or useful to an
 682-11  eligible project.  (V.A.C.S. Art. 4413(47e), Sec. 4(a) (part).)
 682-12        Sec. 2301.037.  EXERCISE OF OTHER POWERS.  An authority may:
 682-13              (1)  adopt bylaws and exercise any power consistent
 682-14  with this chapter and the resolutions, orders, or ordinances
 682-15  creating the authority; and
 682-16              (2)  perform any act necessary for the full exercise of
 682-17  the powers vested in the authority and exercise any power, right,
 682-18  or duty that will permit accomplishment of the purposes of the
 682-19  authority.  (V.A.C.S. Art. 4413(47e), Sec. 4(a) (part).)
 682-20          (Sections 2301.038-2301.060 reserved for expansion)
 682-21      SUBCHAPTER C.  POWERS OF STATE AGENCIES AND PUBLIC ENTITIES
 682-22        Sec. 2301.061.  POWERS OF STATE AGENCIES AND PUBLIC ENTITIES
 682-23  TO ACT.  A public entity or state agency may carry out the purposes
 682-24  of this chapter without any further authorization.  (V.A.C.S. Art.
 682-25  4413(47e), Sec. 5(a) (part).)
 682-26        Sec. 2301.062.  AGREEMENTS.  A public entity or state agency
 682-27  may make agreements with and accept donations, grants, and loans
  683-1  from any person, including the United States, this state, a
  683-2  department or agency of this state, a public entity, and a public
  683-3  or private corporation, including any authority and the Texas
  683-4  National Research Laboratory Commission.  (V.A.C.S. Art. 4413(47e),
  683-5  Sec. 5(a) (part).)
  683-6        Sec. 2301.063.  ACQUISITION OF PROPERTY.  A public entity or
  683-7  state agency may without taking competitive bids, acquire, convey,
  683-8  grant, loan, pledge, mortgage, grant a security interest in, or
  683-9  otherwise dispose of any land, easement, road, bridge,
 683-10  infrastructure improvement, or other property or improvement,
 683-11  service or cash, or interest in any item described by this
 683-12  subdivision that will permit or aid in the accomplishment of the
 683-13  purposes of this chapter.  (V.A.C.S. Art. 4413(47e), Sec. 5(a)
 683-14  (part).)
 683-15        Sec. 2301.064.  USE OF FUNDS.  A public entity or state
 683-16  agency may:
 683-17              (1)  use its funds, including tax revenues, to plan,
 683-18  acquire, construct, own, operate, maintain, or enhance eligible
 683-19  projects, including, in the case of a public entity, eligible
 683-20  projects located outside the jurisdiction or boundaries of the
 683-21  public entity if the governing body of the public entity determines
 683-22  that the project will contribute to the development and
 683-23  diversification of the economy, the elimination of unemployment or
 683-24  underemployment, or the development or expansion of commerce within
 683-25  the public entity;
 683-26              (2)  levy taxes to provide for payment of amounts
 683-27  required under agreements with any person, including the United
  684-1  States, the state, a department and agency of this state, a public
  684-2  entity, and a public or private corporation, including any
  684-3  authority and the Texas National Research Laboratory Commission;
  684-4  and
  684-5              (3)  pledge tax revenue to the payment of agreements.
  684-6  (V.A.C.S. Art. 4413(47e), Sec. 5(a) (part).)
  684-7        Sec. 2301.065.  ELIGIBLE PROJECTS.  (a)  A public entity or
  684-8  state agency may:
  684-9              (1)  participate in or undertake eligible projects; and
 684-10              (2)  adopt and enforce reasonable rules:
 684-11                    (A)  to secure and maintain safe, efficient, and
 684-12  normal operation and maintenance of the super collider facility and
 684-13  its eligible projects;
 684-14                    (B)  in the case of a public entity, to regulate
 684-15  privileges on any land, easement, or property interest that is
 684-16  located within the jurisdiction or boundaries of the public entity
 684-17  and that adjoins the super collider facility site; and
 684-18                    (C)  in the case of a public entity, to prevent
 684-19  activities on adjoining land, easement, or property interest that
 684-20  would adversely affect the safe, efficient, and normal operation
 684-21  and maintenance of the super collider facility or its eligible
 684-22  projects.
 684-23        (b)  A state agency may not exercise any rule-making powers
 684-24  under Subsection (a).  (V.A.C.S. Art. 4413(47e), Sec. 5(a) (part).)
 684-25        Sec. 2301.066.  EFFECT ON OTHER LAWS.  This subchapter does
 684-26  not change the power of the state or any state agency to levy,
 684-27  collect, or set rates of taxes.  (V.A.C.S. Art. 4413(47e), Sec.
  685-1  5(a) (part).)
  685-2        Sec. 2301.067.  ENFORCEMENT OF REGULATIONS.  (a)  A person
  685-3  who violates a rule adopted under Sections 2301.036 and 2301.065
  685-4  commits an offense.  An offense under this subsection is a Class C
  685-5  misdemeanor.
  685-6        (b)  Public entities and an authority are encouraged to
  685-7  cooperate in the adoption and enforcement of rules to achieve a
  685-8  uniformity of standards applicable to the regulation of privileges
  685-9  and activities on any land, easement, or property interest
 685-10  adjoining the super collider facility site.  (V.A.C.S. Art.
 685-11  4413(47e), Secs. 4(b); 5(a) (part), (b).)
 685-12        Sec. 2301.068.  ELECTIONS.  (a)  A public entity may enter an
 685-13  agreement payable by taxes or otherwise without authorization
 685-14  through an election, if the transaction is not a bond or obligation
 685-15  of a public entity issued for making loans or grants payable from
 685-16  ad valorem taxes, within the meaning of Article III, Section 52-a,
 685-17  of the Texas Constitution.
 685-18        (b)  An election required by the Texas Constitution to be
 685-19  held by the public entity to authorize an agreement proposed to be
 685-20  made under this chapter shall be held under the applicable law
 685-21  governing bond elections for the public entity.  (V.A.C.S.
 685-22  Art. 4413(47e), Sec. 5(c).)
 685-23          (Sections 2301.069-2301.090 reserved for expansion)
 685-24                 SUBCHAPTER D.  BONDS AND OTHER FUNDS
 685-25        Sec. 2301.091.  BONDS.  (a)  By resolution, an authority may
 685-26  authorize the issuance, sale, and delivery of bonds for the
 685-27  accomplishment of its purposes.
  686-1        (b)  Any bonds that are payable from ad valorem taxes levied
  686-2  by a public entity to pay principal and interest on bonds of an
  686-3  authority may be issued only after an affirmative vote of the
  686-4  qualified voters of the public entities that comprise the
  686-5  authority.
  686-6        (c)  To accomplish the purposes of this chapter, an authority
  686-7  has the powers granted to industrial development corporations by
  686-8  Sections 23, except the limitations provided by Subsection (a)(11)
  686-9  of that section, 25(e), 26, 27, and 29, Development Corporation Act
 686-10  of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), but is
 686-11  otherwise governed by this chapter.
 686-12        (d)  In issuing bonds, an authority may exercise the powers
 686-13  granted to the governing body of an issuer relating to the issuance
 686-14  of obligations under Chapter 656, Acts of the 68th Legislature,
 686-15  Regular Session, 1983 (Article 717q, Vernon's Texas Civil
 686-16  Statutes).
 686-17        (e)  The bonds may not be a debt or pledge of the faith and
 686-18  credit of the state, the authority, or a public entity, but may be
 686-19  payable solely from revenues arising under this chapter, from
 686-20  grants provided by the United States, the state, a department or
 686-21  agency of this state, public or private entities, or from
 686-22  agreements with public or private entities.
 686-23        (f)  As determined by the board, an authority may pledge to
 686-24  the payment of any bond the revenues of all or part of the eligible
 686-25  projects acquired or undertaken by the authority.
 686-26        (g)  A bond issued by an authority shall contain on its face
 686-27  a statement of the limitation in Subsections (e) and (f).
  687-1  (V.A.C.S. Art. 4413(47e), Secs. 6(a) (part), (b) (part).)
  687-2        Sec. 2301.092.  ISSUANCE OF BONDS.  (a)  Bonds authorized
  687-3  under Section 2301.091 may be executed and delivered as a single
  687-4  issue or as several issues, and may be in any denomination and
  687-5  form, including registered uncertified obligations not represented
  687-6  by written instruments and commonly known as book-entry
  687-7  obligations, for which the registration of ownership and transfer
  687-8  shall be provided by the authority under a system of books and
  687-9  records maintained by a financial institution domiciled inside or
 687-10  outside the state and serving as trustee, paying agent, or bond
 687-11  registrar.
 687-12        (b)  The bonds of an authority must be signed by the
 687-13  presiding officer or assistant presiding officer of the authority,
 687-14  be attested by the secretary, and bear the seal of the authority.
 687-15  The signatures may be printed or lithographed on the bonds if
 687-16  authorized by the authority, and the seal may be impressed,
 687-17  lithographed, or printed on the bonds.
 687-18        (c)  The authority may adopt or use for any purpose the
 687-19  signature of an individual who has been an officer of the
 687-20  authority, regardless of whether the individual has ceased to be an
 687-21  officer at the time the bonds are delivered to a purchaser.
 687-22        (d)  The bonds must mature serially or otherwise not to
 687-23  exceed 40 years after their respective dates of issuance and may be
 687-24  sold at a public or private sale at a price or under terms
 687-25  determined by the authority to be the most advantageous reasonably
 687-26  obtainable.
 687-27        (e)  The bonds may bear no interest or a rate of interest
  688-1  determined by the authority or by a contractual agreement approved
  688-2  by the authority, but may not exceed the maximum net effective
  688-3  interest rate allowed by Chapter 3, Acts of the 61st Legislature,
  688-4  Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
  688-5  Statutes).
  688-6        (f)  The bonds may be subject to redemption before maturity
  688-7  at times and prices approved by the authority.
  688-8        (g)  The bonds are subject to review and approval by the
  688-9  attorney general in the same manner and with the same effect as is
 688-10  provided by Chapter 656, Acts of the 68th Legislature, Regular
 688-11  Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).
 688-12        (h)  The bonds are legal and authorized investments for a
 688-13  bank, trust company, savings and loan association, insurance
 688-14  company, fiduciary, trustee, or guardian or a sinking fund of a
 688-15  municipality, county, school district, or other political
 688-16  subdivision of this state.
 688-17        (i)  The bonds may be used to secure deposits of public funds
 688-18  of this state and municipalities, counties, school districts, or
 688-19  other political subdivisions of this state.  The bonds are lawful
 688-20  and sufficient security for deposits to the extent of the principal
 688-21  amount of the bonds or their value on the market, whichever is
 688-22  less, when accompanied by all attached unmatured coupons.
 688-23        (j)  An authority may issue bonds to refund all or part of
 688-24  its outstanding bonds, including unpaid interest, in the manner
 688-25  provided by law.
 688-26        (k)  The bonds, any interest on the bonds, any transaction
 688-27  relating to the bonds, and any profit made in the sale of the bonds
  689-1  are exempt from taxation by the state, an agency or instrumentality
  689-2  of the state, or any political subdivision of the state.  (V.A.C.S.
  689-3  Art. 4413(47e), Secs. 6(d), (e), (f), (g), (h), (i).)
  689-4        Sec. 2301.093.  USE OF PROCEEDS.  (a)  The proceeds of bonds
  689-5  issued under this chapter may be used only to finance eligible
  689-6  projects, pay professional and consulting fees and related
  689-7  expenses, and pay the costs of issuance of the bonds.
  689-8        (b)  An authority may set aside from the proceeds of the sale
  689-9  of bonds amounts for payments into the interest and sinking fund
 689-10  and reserve fund, and for interest and operating expenses during
 689-11  construction and development, as specified in the proceedings
 689-12  authorizing the bonds.
 689-13        (c)  Bond proceeds may be invested, pending their use, in
 689-14  securities, interest-bearing certificates, and time deposits as
 689-15  specified in the authorizing proceedings.  (V.A.C.S. Art.
 689-16  4413(47e), Secs. 6(c), 7 (part).)
 689-17        Sec. 2301.094.  USE OF FUNDS.  The authority may use funds,
 689-18  including tax revenues or other money received by the authority
 689-19  from a public entity, to finance eligible projects located outside
 689-20  the jurisdiction or boundary of the public entity, if the
 689-21  governing body of the public entity determines that the eligible
 689-22  projects will contribute to the development and diversification of
 689-23  the economy, the elimination of unemployment or underemployment, or
 689-24  the development or expansion of commerce within the public entity.
 689-25  (V.A.C.S. Art. 4413(47e), Sec. 7 (part).)
 689-26                      CHAPTER 2302.  COGENERATION
 689-27                   SUBCHAPTER A.  GENERAL PROVISIONS
  690-1  Sec. 2302.001.  DEFINITIONS
  690-2  Sec. 2302.002.  COMPOSITION OF COUNCIL
  690-3  Sec. 2302.003.  PRESIDING OFFICER
  690-4  Sec. 2302.004.  COMPENSATION
  690-5  Sec. 2302.005.  COUNCIL EXPENSES
  690-6  Sec. 2302.006.  EXPERTS
  690-7  Sec. 2302.007.  DUTIES OF COUNCIL
  690-8          (Sections 2302.008-2302.020 reserved for expansion)
  690-9                      SUBCHAPTER B.  COGENERATION
 690-10  Sec. 2302.021.  STATE AGENCY COGENERATION PROJECTS
 690-11  Sec. 2302.022.  APPLICATION
 690-12  Sec. 2302.023.  JOINT COGENERATION PROJECTS
 690-13  Sec. 2302.024.  AUTHORITY TO SELL POWER
 690-14  Sec. 2302.025.  MONEY FROM POWER SALES
 690-15          (Sections 2302.026-2302.040 reserved for expansion)
 690-16                      SUBCHAPTER C.  ENFORCEMENT
 690-17  Sec. 2302.041.  COOPERATION WITH COGENERATING STATE AGENCIES
 690-18  Sec. 2302.042.  PETITION FOR ENFORCEMENT
 690-19  Sec. 2302.043.  ORDER OR RULING
 690-20  Sec. 2302.044.  JURISDICTION
 690-21                      CHAPTER 2302.  COGENERATION
 690-22                   SUBCHAPTER A.  GENERAL PROVISIONS
 690-23        Sec. 2302.001.  DEFINITIONS.  In this chapter:
 690-24              (1)  "Cogenerating state agency" means a state agency
 690-25  that has constructed or operates a state agency cogeneration
 690-26  facility.
 690-27              (2)  "Commission" means the Public Utility Commission
  691-1  of Texas.
  691-2              (3)  "Council" means the State Cogeneration Council.
  691-3              (4)  "Firm power" means power or power-producing
  691-4  capacity that, under an enforceable obligation, is available to the
  691-5  purchasing party according to a schedule over a specified term.
  691-6              (5)  "Nonfirm power" means power provided under an
  691-7  arrangement that does not guarantee that power will be available
  691-8  according to a schedule but provides instead for delivery of power
  691-9  as it is available.
 691-10              (6)  "Qualifying facility" means a qualifying small
 691-11  power production facility or a qualifying cogeneration facility as
 691-12  defined by Sections 3(17)(C) and 3(18)(B) of the Federal Power Act
 691-13  (16 U.S.C. Sections 796(17)(C) and 796(18)(B)).
 691-14              (7)  "State agency" means an office, department,
 691-15  commission, or board of any branch of state government or an
 691-16  institution of higher education as defined by Section 61.003,
 691-17  Education Code.
 691-18              (8)  "State agency cogeneration facility" means a
 691-19  qualifying facility constructed or operated by a state agency for
 691-20  the benefit of a state agency facility that is located adjacent to
 691-21  or on property contiguous with the site of the qualifying facility.
 691-22  (V.A.C.S. Art. 4413(55), Sec. 1 (part).)
 691-23        Sec. 2302.002.  COMPOSITION OF COUNCIL.  The council is
 691-24  composed of:
 691-25              (1)  one representative with knowledge of cogeneration
 691-26  from each of the following agencies, appointed by and serving at
 691-27  the pleasure of the agency's presiding officer:
  692-1                    (A)  the commission;
  692-2                    (B)  the Railroad Commission of Texas;
  692-3                    (C)  the General Services Commission; and
  692-4                    (D)  the Texas Natural Resource Conservation
  692-5  Commission;
  692-6              (2)  one representative of the office of the attorney
  692-7  general, appointed by the attorney general; and
  692-8              (3)  one representative of higher education, appointed
  692-9  by the governor.  (V.A.C.S. Art. 4413(55), Sec. 2(a).)
 692-10        Sec. 2302.003.  PRESIDING OFFICER.  (a)  The council shall
 692-11  elect one of its members presiding officer at the first council
 692-12  meeting after the appointment of a new member.
 692-13        (b)  The presiding officer may vote only to break a tie.
 692-14  (V.A.C.S. Art.  4413(55), Sec. 2(b).)
 692-15        Sec. 2302.004.  COMPENSATION.  A council member serves
 692-16  without compensation but is entitled to reimbursement for expenses
 692-17  as provided by the General Appropriations Act.  (V.A.C.S. Art.
 692-18  4413(55), Sec. 2(c).)
 692-19        Sec. 2302.005.  COUNCIL EXPENSES.  (a)  The state agencies
 692-20  represented on the council shall pay the council's incidental
 692-21  expenses.
 692-22        (b)  The state agencies represented on the council may spend
 692-23  money to assist the council in performing its duties.
 692-24        (c)  The council may not require a state agency represented
 692-25  on the council to spend money without the agency's consent.
 692-26  (V.A.C.S. Art. 4413(55), Sec.  2(d).)
 692-27        Sec. 2302.006.  EXPERTS.  (a)  The council may contract for
  693-1  the services of experts to assist in performing its duties.
  693-2        (b)  The expenses of an expert may be paid for by:
  693-3              (1)  the state agencies represented on the council;
  693-4              (2)  general appropriation of the legislature;
  693-5              (3)  a specific appropriation of oil overcharge funds
  693-6  received by the state; or
  693-7              (4)  other receipt of oil overcharge funds received by
  693-8  the state.  (V.A.C.S. Art. 4413(55), Sec. 3(b).)
  693-9        Sec. 2302.007.  DUTIES OF COUNCIL.  The council shall:
 693-10              (1)  assist, inform, and advise a state agency
 693-11  concerning legal, technical, economic, and contractual issues
 693-12  related to cogeneration;
 693-13              (2)  approve or disapprove, solely on economic and
 693-14  technical grounds, an application for a state agency cogeneration
 693-15  facility; and
 693-16              (3)  adopt rules and procedures necessary for
 693-17  exercising council duties.  (V.A.C.S. Art. 4413(55), Secs. 3(a),
 693-18  (c).)
 693-19          (Sections 2302.008-2302.020 reserved for expansion)
 693-20                      SUBCHAPTER B.  COGENERATION
 693-21        Sec. 2302.021.  STATE AGENCY COGENERATION PROJECTS.  (a)  A
 693-22  state agency may not construct or operate a state agency
 693-23  cogeneration facility unless the council has approved the size and
 693-24  design of the facility.
 693-25        (b)  A state agency cogeneration facility's size and design
 693-26  is limited to the size and design that is necessary to supply
 693-27  economically the cogenerating state agency, considering the optimum
  694-1  balance of annual thermal and electrical energy requirements and
  694-2  any expansions anticipated in the near future.
  694-3        (c)  This section does not apply to a state agency
  694-4  cogeneration facility if, before September 1, 1987:
  694-5              (1)  the facility was in operation;
  694-6              (2)  the facility's final engineering design had been
  694-7  completed; or
  694-8              (3)  construction of the facility had begun.  (V.A.C.S.
  694-9  Art. 4413(55), Secs. 4(b), (c), (e).)
 694-10        Sec. 2302.022.  APPLICATION.  (a)  A state agency shall file
 694-11  with the council for approval an application prescribed by the
 694-12  council to construct or operate a state agency cogeneration
 694-13  facility.
 694-14        (b)  The council shall approve or disapprove a state agency's
 694-15  application to construct or operate a state agency cogeneration
 694-16  facility within six months of the date the application is filed.
 694-17  (V.A.C.S. Art. 4413(55), Secs. 4(a), (d).)
 694-18        Sec. 2302.023.  JOINT COGENERATION PROJECTS.  Subject to this
 694-19  chapter, two or more state agencies may jointly construct or
 694-20  operate a state agency cogeneration facility.  (V.A.C.S. Art.
 694-21  4413(55), Sec.  4(f).)
 694-22        Sec. 2302.024.  AUTHORITY TO SELL POWER.  (a)  After the
 694-23  council has approved the application to construct or operate a
 694-24  cogeneration facility, a cogenerating state agency may contract in
 694-25  the same manner as a qualifying facility for the sale to an
 694-26  electric utility of firm or nonfirm power produced by the state
 694-27  agency cogeneration facility that exceeds the agency's power
  695-1  requirements.
  695-2        (b)  A cogenerating state agency may consult with the council
  695-3  about the price or other terms of a contract entered under this
  695-4  section.  (V.A.C.S.  Art. 4413(55), Secs. 5(a), (b).)
  695-5        Sec. 2302.025.  MONEY FROM POWER SALES.  (a)  A state agency
  695-6  shall first apply money it collects from the sale of firm or
  695-7  nonfirm power to retire any outstanding debt and pay operating
  695-8  expenses that result from constructing and maintaining the state
  695-9  agency cogeneration facility.
 695-10        (b)  A state agency shall deposit to the credit of the
 695-11  general revenue fund any money it collects under this chapter that
 695-12  exceeds the amount needed to service the debt and pay the operating
 695-13  expenses of the state agency cogeneration facility.  (V.A.C.S. Art.
 695-14  4413(55), Sec. 5(c).)
 695-15          (Sections 2302.026-2302.040 reserved for expansion)
 695-16                      SUBCHAPTER C.  ENFORCEMENT
 695-17        Sec. 2302.041.  COOPERATION WITH COGENERATING STATE AGENCIES.
 695-18  A political subdivision, municipality, or agency of the state that
 695-19  operates, maintains, or controls a facility that provides retail
 695-20  electric utility service:
 695-21              (1)  shall cooperate with a cogenerating state agency
 695-22  that attempts to sell firm or nonfirm power; and
 695-23              (2)  may not adopt rates, pricing policies, access
 695-24  restrictions, or other rules inconsistent with the intent of this
 695-25  chapter.  (V.A.C.S. Art. 4413(55), Sec. 6(a).)
 695-26        Sec. 2302.042.  PETITION FOR ENFORCEMENT.  (a)  A state
 695-27  agency may file a petition with the commission to enforce Section
  696-1  2302.041.
  696-2        (b)  Notwithstanding any other law, if a state agency files a
  696-3  petition under this section, the commission may determine issues
  696-4  relating to rates, pricing policies, access restrictions, and other
  696-5  matters regarding a state agency cogeneration facility as necessary
  696-6  to enforce Section 2302.041.
  696-7        (c)  The commission retains jurisdiction until the commission
  696-8  by final order resolves the issues raised in the petition.
  696-9  (V.A.C.S. Art. 4413(55), Sec. 6(b).)
 696-10        Sec. 2302.043.  ORDER OR RULING.  (a)  A commission order or
 696-11  ruling entered under this chapter is considered to have been
 696-12  entered or adopted under the Public Utility Regulatory Act (Article
 696-13  1446c, Vernon's Texas Civil Statutes).
 696-14        (b)  A commission order or ruling entered under this chapter
 696-15  is enforced under Sections 71 through 77 of the Public Utility
 696-16  Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes).
 696-17  (V.A.C.S. Art. 4413(55), Sec. 6(c).)
 696-18        Sec. 2302.044.  JURISDICTION.  This chapter does not enlarge
 696-19  or modify the commission's jurisdiction over a political
 696-20  subdivision, municipality, or agency of the state.  (V.A.C.S. Art.
 696-21  4413(55), Sec. 6(d).)
 696-22                    CHAPTER 2303.  ENTERPRISE ZONES
 696-23                   SUBCHAPTER A.  GENERAL PROVISIONS
 696-24  Sec. 2303.001.  SHORT TITLE
 696-25  Sec. 2303.002.  PURPOSES
 696-26  Sec. 2303.003.  DEFINITIONS
 696-27  Sec. 2303.004.  JURISDICTION OF MUNICIPALITY
  697-1          (Sections 2303.005-2303.050 reserved for expansion)
  697-2              SUBCHAPTER B.  DEPARTMENT POWERS AND DUTIES
  697-3                           RELATING TO ZONES
  697-4  Sec. 2303.051.  GENERAL POWERS AND DUTIES
  697-5  Sec. 2303.052.  EVALUATION; REPORT
  697-6  Sec. 2303.053.  ASSISTANCE
  697-7  Sec. 2303.054.  COORDINATION WITH OTHER GOVERNMENTAL
  697-8                    ENTITIES
  697-9          (Sections 2303.055-2303.100 reserved for expansion)
 697-10             SUBCHAPTER C.  DESIGNATION OF ENTERPRISE ZONE
 697-11  Sec. 2303.101.  CRITERIA FOR ENTERPRISE ZONE DESIGNATION
 697-12  Sec. 2303.102.  AREA OF PERVASIVE POVERTY, UNEMPLOYMENT,
 697-13                    AND ECONOMIC DISTRESS
 697-14  Sec. 2303.103.  NOMINATION OF ENTERPRISE ZONE
 697-15  Sec. 2303.104.  NOMINATING ORDINANCE OR ORDER
 697-16  Sec. 2303.105.  APPLICATION FOR DESIGNATION
 697-17  Sec. 2303.106.  REVIEW OF APPLICATION
 697-18  Sec. 2303.107.  DESIGNATION AGREEMENT
 697-19  Sec. 2303.108.  DENIAL OF APPLICATION; NOTICE
 697-20  Sec. 2303.109.  PERIOD OF DESIGNATION
 697-21  Sec. 2303.110.  AMENDING BOUNDARIES
 697-22  Sec. 2303.111.  REMOVAL OF DESIGNATION
 697-23          (Sections 2303.112-2303.200 reserved for expansion)
 697-24           SUBCHAPTER D.  ADMINISTRATION OF ENTERPRISE ZONE
 697-25  Sec. 2303.201.  ADMINISTRATION BY GOVERNING BODY
 697-26  Sec. 2303.202.  ADMINISTRATION BY ADMINISTRATIVE
 697-27                    AUTHORITY
  698-1  Sec. 2303.203.  PARTICIPATION BY NEIGHBORHOOD
  698-2                    ENTERPRISE ASSOCIATIONS
  698-3  Sec. 2303.204.  LIAISON
  698-4  Sec. 2303.205.  ANNUAL REPORT
  698-5          (Sections 2303.206-2303.300 reserved for expansion)
  698-6          SUBCHAPTER E.  NEIGHBORHOOD ENTERPRISE ASSOCIATIONS
  698-7  Sec. 2303.301.  ORGANIZATION OF NEIGHBORHOOD
  698-8                    ENTERPRISE ASSOCIATION
  698-9  Sec. 2303.302.  CERTIFICATION OF ASSOCIATION
 698-10  Sec. 2303.303.  MEMBERSHIP; VOTING
 698-11  Sec. 2303.304.  POWERS OF NEIGHBORHOOD ENTERPRISE
 698-12                    ASSOCIATIONS
 698-13  Sec. 2303.305.  APPROVED PROJECTS
 698-14          (Sections 2303.306-2303.400 reserved for expansion)
 698-15      SUBCHAPTER F.  QUALIFIED BUSINESSES AND ENTERPRISE PROJECTS
 698-16  Sec. 2303.401.  QUALIFIED BUSINESS
 698-17  Sec. 2303.402.  PROHIBITION ON QUALIFIED BUSINESS
 698-18                    CERTIFICATION
 698-19  Sec. 2303.403.  ENTERPRISE PROJECT DESIGNATION
 698-20          (Sections 2303.404-2303.500 reserved for expansion)
 698-21                SUBCHAPTER G.  ENTERPRISE ZONE BENEFITS
 698-22  Sec. 2303.501.  EXEMPTIONS FROM STATE REGULATION; SUSPENSION
 698-23                    OF LOCAL REGULATION
 698-24  Sec. 2303.502.  REVIEW OF STATE AGENCY RULES; REPORT
 698-25  Sec. 2303.503.  STATE PREFERENCES
 698-26  Sec. 2303.504.  STATE TAX REFUNDS AND DEDUCTION; REPORT
 698-27  Sec. 2303.505.  LOCAL SALES AND USE TAX REFUNDS
  699-1  Sec. 2303.506.  REDUCTION OR ELIMINATION OF LOCAL
  699-2                    FEES OR TAXES
  699-3  Sec. 2303.507.  TAX INCREMENT FINANCING AND ABATEMENT
  699-4  Sec. 2303.508.  TAX EXEMPTION FOR NEIGHBORHOOD ENTERPRISE
  699-5                    ASSOCIATION
  699-6  Sec. 2303.509.  DEVELOPMENT BONDS
  699-7  Sec. 2303.510.  INDUSTRIAL DEVELOPMENT CORPORATION
  699-8  Sec. 2303.511.  OTHER LOCAL INCENTIVES
  699-9  Sec. 2303.512.  LEASE OF PUBLIC PROPERTY TO NEIGHBORHOOD
 699-10                    ENTERPRISE ASSOCIATION
 699-11  Sec. 2303.513.  DISPOSITION OF PUBLIC PROPERTY IN
 699-12                    ENTERPRISE ZONE
 699-13  Sec. 2303.514.  WAIVER OF PERFORMANCE BOND
 699-14  Sec. 2303.515.  LIABILITY OF CONTRACTOR OR ARCHITECT
 699-15                    CHAPTER 2303.  ENTERPRISE ZONES
 699-16                   SUBCHAPTER A.  GENERAL PROVISIONS
 699-17        Sec. 2303.001.  SHORT TITLE.  This chapter may be cited as
 699-18  the Texas Enterprise Zone Act.  (V.A.C.S. Art. 5190.7, Sec. 1.)
 699-19        Sec. 2303.002.  PURPOSES.  The purposes of this chapter are
 699-20  to establish a process that clearly identifies severely distressed
 699-21  areas of the state and provides incentives by state and local
 699-22  government to induce private investment in those areas by removing
 699-23  unnecessary governmental regulatory barriers to economic growth and
 699-24  to provide tax incentives and economic development program
 699-25  benefits.  (V.A.C.S. Art. 5190.7, Sec. 2(c).)
 699-26        Sec. 2303.003.  DEFINITIONS.  In this chapter:
 699-27              (1)  "Day" means the period between 8 a.m. and 5 p.m.
  700-1  of a day other than a Saturday, Sunday, or state or federal
  700-2  holiday.
  700-3              (2)  "Department" means the Texas Department of
  700-4  Commerce.
  700-5              (3)  "Enterprise zone" means an area designated as an
  700-6  enterprise zone under this chapter.
  700-7              (4)  "Neighborhood enterprise association" means an
  700-8  association certified as a neighborhood enterprise association
  700-9  under Section 2303.302.
 700-10              (5)  "Nominating body" means the governing body of a
 700-11  municipality or county, or a combination of the governing bodies of
 700-12  municipalities or counties, that nominates and applies for
 700-13  designation of an area as an enterprise zone.
 700-14              (6)  "Qualified business" means a person certified as a
 700-15  qualified business under Section 2303.401.
 700-16              (7)  "Qualified employee" means a person who:
 700-17                    (A)  works for a qualified business; and
 700-18                    (B)  performs at least 50 percent of the person's
 700-19  service for the business in the enterprise zone.  (V.A.C.S. Art.
 700-20  5190.7, Secs. 3(a)(2), (3), (7), (9), (12).)
 700-21        Sec. 2303.004.  JURISDICTION OF MUNICIPALITY.  For the
 700-22  purposes of this chapter, territory in the extraterritorial
 700-23  jurisdiction of a municipality is considered to be in the
 700-24  jurisdiction of the municipality.  (V.A.C.S. Art. 5190.7, Sec.
 700-25  3(b).)
 700-26          (Sections 2303.005-2303.050 reserved for expansion)
 700-27     SUBCHAPTER B.  DEPARTMENT POWERS AND DUTIES RELATING TO ZONES
  701-1        Sec. 2303.051.  GENERAL POWERS AND DUTIES.  (a)  The
  701-2  department shall administer and monitor the implementation of this
  701-3  chapter.
  701-4        (b)  The department shall establish criteria and procedures
  701-5  for designating a qualified area as an enterprise zone and for
  701-6  designating an enterprise project.
  701-7        (c)  The department shall adopt rules necessary to carry out
  701-8  the purposes of this chapter.  (V.A.C.S. Art. 5190.7, Sec. 8(a)
  701-9  (part).)
 701-10        Sec. 2303.052.  EVALUATION; REPORT.  (a)  The department
 701-11  shall conduct a continuing evaluation of the programs of enterprise
 701-12  zones.
 701-13        (b)  The department shall develop data from available
 701-14  information demonstrating the relationship between the incentives
 701-15  provided under this chapter and the economy.
 701-16        (c)  The department biennially shall review local incentives.
 701-17        (d)  On or before December 1 of each year the department
 701-18  shall submit to the governor, the legislature, and the Legislative
 701-19  Budget Board a report that:
 701-20              (1)  evaluates the effectiveness of the enterprise zone
 701-21  program;
 701-22              (2)  describes the use of state and local incentives
 701-23  under this chapter and their effect on revenue; and
 701-24              (3)  suggests legislation.  (V.A.C.S. Art. 5190.7,
 701-25  Secs. 8(a) (part), (g).)
 701-26        Sec. 2303.053.  ASSISTANCE.  (a)  The department shall
 701-27  assist:
  702-1              (1)  a qualified business in obtaining the benefits of
  702-2  any incentive or inducement program provided by law;
  702-3              (2)  a unit of local government in obtaining status as
  702-4  a federal enterprise zone;
  702-5              (3)  the governing body of an enterprise zone in
  702-6  obtaining assistance from another state agency, including training
  702-7  and technical assistance to qualified businesses in a zone; and
  702-8              (4)  the governing body of an enterprise zone in
  702-9  developing small business incubators.
 702-10        (b)  The department shall provide to persons desiring to
 702-11  locate and engage in business in an enterprise zone information and
 702-12  appropriate assistance relating to the required legal
 702-13  authorization, including a state license, permit, certificate,
 702-14  approval, registration, or charter, to engage in business in this
 702-15  state.
 702-16        (c)  The department shall publicize existing tax incentives
 702-17  and economic development programs in enterprise zones.
 702-18        (d)  On request the department shall offer to a unit of local
 702-19  government having an enterprise zone within its jurisdiction
 702-20  technical assistance relating to tax abatement and the development
 702-21  of alternative revenue sources.  (V.A.C.S. Art. 5190.7, Secs. 8(a)
 702-22  (part), (b), (d), (f).)
 702-23        Sec. 2303.054.  COORDINATION WITH OTHER GOVERNMENTAL
 702-24  ENTITIES.  (a)  In cooperation with the appropriate units of local
 702-25  government and other state agencies, the department shall
 702-26  coordinate and streamline state business assistance programs and
 702-27  permit or license application procedures for businesses in
  703-1  enterprise zones.
  703-2        (b)  The department shall:
  703-3              (1)  work with the responsible state and federal
  703-4  agencies to coordinate enterprise zone programs with other programs
  703-5  carried out in an enterprise zone, including housing, community and
  703-6  economic development, small business, banking, financial
  703-7  assistance, transportation, and employment training programs;
  703-8              (2)  work to expedite, to the greatest extent possible,
  703-9  the consideration of applications for those programs by
 703-10  consolidating forms or by other means; and
 703-11              (3)  work, when possible, for the consolidation of
 703-12  periodic reports required under those programs into one summary
 703-13  report.
 703-14        (c)  The department shall encourage other state agencies in
 703-15  awarding grants, loans, or services to give priority to businesses
 703-16  in enterprise zones.  (V.A.C.S. Art. 5190.7, Secs. 8(c), (e), 24.)
 703-17          (Sections 2303.055-2303.100 reserved for expansion)
 703-18             SUBCHAPTER C.  DESIGNATION OF ENTERPRISE ZONE
 703-19        Sec. 2303.101.  CRITERIA FOR ENTERPRISE ZONE DESIGNATION.
 703-20  (a)  To be designated as an enterprise zone an area must:
 703-21              (1)  have a continuous boundary;
 703-22              (2)  be at least one square mile but not larger than
 703-23  the greater of:
 703-24                    (A)  10 square miles, excluding lakes, waterways,
 703-25  and transportation arteries; or
 703-26                    (B)  an area, not to exceed 20 square miles, that
 703-27  is equal to five percent of the area, excluding lakes, waterways,
  704-1  and transportation arteries, of the municipality, county, or
  704-2  combination of municipalities or counties nominating the area as an
  704-3  enterprise zone;
  704-4              (3)  be an area of pervasive poverty, unemployment, and
  704-5  economic distress; and
  704-6              (4)  be nominated as an enterprise zone by an ordinance
  704-7  or order adopted by the nominating body.
  704-8        (b)  The department may not designate an area as an
  704-9  enterprise zone if three enterprise zones are located in the
 704-10  jurisdiction of and were nominated as enterprise zones by the
 704-11  governing body of the municipality or county nominating the area as
 704-12  an enterprise zone.  (V.A.C.S. Art. 5190.7, Secs. 4(a), 9(d).)
 704-13        Sec. 2303.102.  AREA OF PERVASIVE POVERTY, UNEMPLOYMENT, AND
 704-14  ECONOMIC DISTRESS.  An area is an area of pervasive poverty,
 704-15  unemployment, and economic distress for the purposes of Section
 704-16  2303.101 if:
 704-17              (1)  the average rate of unemployment in the area
 704-18  during the most recent 12-month period for which data are available
 704-19  was at least one and one-half times the local, state, or national
 704-20  average for that period; or
 704-21              (2)  the area had a population loss of at least nine
 704-22  percent during the most recent six-year period or at least three
 704-23  percent during the most recent three-year period; and
 704-24                    (A)  the area is a low-income poverty area;
 704-25                    (B)  the area is in a jurisdiction or pocket of
 704-26  poverty eligible for urban development action grants under federal
 704-27  law, according to the most recent certification available from the
  705-1  United States Department of Housing and Urban Development;
  705-2                    (C)  at least 70 percent of the residents or
  705-3  households of the area have an income that is less than 80 percent
  705-4  of the median income of the residents or households of the locality
  705-5  or state, whichever is less; or
  705-6                    (D)  the nominating body establishes to the
  705-7  satisfaction of the department that:
  705-8                          (i)  chronic abandonment or demolition of
  705-9  commercial or residential structures exists in the area;
 705-10                          (ii)  substantial tax arrearages for
 705-11  commercial or residential structures exist in the area;
 705-12                          (iii)  substantial losses of businesses or
 705-13  jobs have occurred in the area; or
 705-14                          (iv)  the area is part of a disaster area
 705-15  declared by the state or federal government during the preceding 18
 705-16  months.  (V.A.C.S. Art. 5190.7, Sec. 4(b).)
 705-17        Sec. 2303.103.  NOMINATION OF ENTERPRISE ZONE.  (a)  The
 705-18  governing body of a municipality or county, individually or in
 705-19  combination with other municipalities or counties, by ordinance or
 705-20  order, as appropriate, may nominate as an enterprise zone an area
 705-21  within its jurisdiction that meets the criteria under Section
 705-22  2303.101.
 705-23        (b)  Unless the nominating body holds a public hearing before
 705-24  adopting an ordinance or order under this section, the ordinance or
 705-25  order is not valid.
 705-26        (c)  The governing body of a county may not nominate
 705-27  territory in a municipality, including  extraterritorial
  706-1  jurisdiction of a municipality, to be included in a proposed
  706-2  enterprise zone unless the governing body of the municipality also
  706-3  nominates the territory and together with the county files a joint
  706-4  application under Section 2303.105.
  706-5        (d)  The governing bodies of a combination of municipalities
  706-6  or counties may not jointly nominate an area as an enterprise zone
  706-7  unless the governing bodies have entered into a binding agreement
  706-8  to administer the zone jointly.
  706-9        (e)  Notwithstanding Subsections (c) and (d), the governing
 706-10  body of a county with a population of 750,000 or more may nominate
 706-11  territory in that county that is in the extraterritorial
 706-12  jurisdiction of a municipality to be included in one or more of the
 706-13  county's enterprise zones, and the county shall administer a zone
 706-14  that is established as the result of the nomination.  (V.A.C.S.
 706-15  Art. 5190.7, Secs. 5(a) (part), (b), (c), (d), (e).)
 706-16        Sec. 2303.104.  NOMINATING ORDINANCE OR ORDER.  (a)  An
 706-17  ordinance or order nominating an area as an enterprise zone must:
 706-18              (1)  describe precisely the area to be included in the
 706-19  zone  by a legal description or reference to roadways, lakes,
 706-20  waterways, or municipal or county boundaries;
 706-21              (2)  state a finding that the area meets the
 706-22  requirements of this chapter;
 706-23              (3)  summarize briefly the incentives, including tax
 706-24  incentives, that, at the election of the nominating body, apply to
 706-25  business enterprises in the area; and
 706-26              (4)  nominate the area as an enterprise zone.
 706-27        (b)  At least one of the incentives summarized under
  707-1  Subsection (a)(3) must not apply throughout the governmental entity
  707-2  or entities nominating the area as an enterprise zone.
  707-3        (c)  This section does not prohibit a municipality or county
  707-4  from extending additional incentives, including tax incentives, for
  707-5  business enterprises in an enterprise zone by a separate ordinance
  707-6  or order.  (V.A.C.S. Art. 5190.7, Sec. 6.)
  707-7        Sec. 2303.105.  APPLICATION FOR DESIGNATION.  (a)  For an
  707-8  area to be designated as an enterprise zone, the nominating body,
  707-9  after nominating the area as an enterprise zone, must send to the
 707-10  department a written application for designation of the area as an
 707-11  enterprise zone.
 707-12        (b)  The application must include:
 707-13              (1)  a certified copy of the ordinance or order, as
 707-14  appropriate, nominating the area as an enterprise zone;
 707-15              (2)  a map of the area showing existing streets and
 707-16  highways;
 707-17              (3)  an analysis and appropriate supporting documents
 707-18  and statistics demonstrating that the area qualifies for
 707-19  designation as an enterprise zone;
 707-20              (4)  a statement that specifies each tax incentive,
 707-21  grant, other financial incentive or benefit, or program to be
 707-22  provided by the nominating body to business enterprises in the area
 707-23  that is not to be provided throughout the governmental entity or
 707-24  entities nominating the area as an enterprise zone;
 707-25              (5)  a statement of the economic development and
 707-26  planning objectives for the area;
 707-27              (6)  a description of the functions, programs, and
  708-1  services to be performed by a neighborhood enterprise association
  708-2  in the area;
  708-3              (7)  an estimate of the economic impact of the
  708-4  designation of the area as an enterprise zone on the revenues of
  708-5  the governmental entity or entities nominating the area as an
  708-6  enterprise zone, considering all the financial incentives and
  708-7  benefits and the programs contemplated;
  708-8              (8)  a transcript or tape recording of all public
  708-9  hearings on the proposed zone;
 708-10              (9)  if the application is a joint application, a
 708-11  description and copy of the agreement between the applicants;
 708-12              (10)  the procedures for negotiating with residents,
 708-13  community groups, and other entities affected by the designation of
 708-14  the area as an enterprise zone and with qualified businesses in the
 708-15  area;
 708-16              (11)  a description of the administrative authority, if
 708-17  one is to be appointed for the enterprise zone under Section
 708-18  2303.202; and
 708-19              (12)  any additional information the department
 708-20  requires.
 708-21        (c)  Information required by Subsection (b) is for evaluation
 708-22  purposes only.  (V.A.C.S. Art. 5190.7, Secs. 5(a) (part), 7(a),
 708-23  (b), (c) (part).)
 708-24        Sec. 2303.106.  REVIEW OF APPLICATION.  (a)  On receipt of an
 708-25  application for the designation of an enterprise zone, the
 708-26  department shall review the application to determine if the
 708-27  nominated area qualifies for designation as an enterprise zone
  709-1  under this chapter.
  709-2        (b)  The department shall allow an applicant to correct any
  709-3  omission or clerical error in the application and to return the
  709-4  application to the department on or before the 10th day after the
  709-5  day on which the department receives the application.  (V.A.C.S.
  709-6  Art. 5190.7, Sec. 9(a) (part).)
  709-7        Sec. 2303.107.  DESIGNATION AGREEMENT.  (a)  If the
  709-8  department determines that a nominated area for which a designation
  709-9  application has been received satisfies the criteria under Section
 709-10  2303.101, the department shall negotiate with the nominating body
 709-11  for a designation agreement.
 709-12        (b)  A designation agreement must:
 709-13              (1)  designate the nominated area as an enterprise
 709-14  zone; and
 709-15              (2)  designate the administrative authority, if one is
 709-16  to be appointed for the zone under Section 2303.202, and describe
 709-17  its functions and duties, which should include decision-making
 709-18  authority and the authority to negotiate with affected entities.
 709-19        (c)  The department shall complete the negotiations and sign
 709-20  the agreement not later than the 60th day after the day on which
 709-21  the application is received unless the department extends that
 709-22  period to the 90th day after the day on which the application was
 709-23  received.
 709-24        (d)  If an agreement is not completed within the 60-day
 709-25  period provided by Subsection (c), the department shall provide to
 709-26  the nominating body the specific areas of concern and a final
 709-27  proposal for the agreement.
  710-1        (e)  If the agreement is not executed before the 91st day
  710-2  after the day on which the application was received, the
  710-3  application is considered to be denied.   (V.A.C.S. Art. 5190.7,
  710-4  Secs. 9(c) (part), 22(b).)
  710-5        Sec. 2303.108.  DENIAL OF APPLICATION; NOTICE.  (a)  The
  710-6  department may deny an application for the designation of an
  710-7  enterprise zone only if the department determines that the
  710-8  nominated area does not satisfy the criteria under Section
  710-9  2303.101.
 710-10        (b)  The department shall inform the nominating body of the
 710-11  specific reasons for denial of an application, including denial
 710-12  under Section 2303.107(e).  (V.A.C.S. Art. 5190.7, Secs. 7(c)
 710-13  (part), 9(c) (part).)
 710-14        Sec. 2303.109.  PERIOD OF DESIGNATION.  (a)  An area may be
 710-15  designated as an enterprise zone for a maximum of seven years.  A
 710-16  designation remains in effect until September 1 of the final year
 710-17  of the designation.
 710-18        (b)  Notwithstanding Subsection (a), an area designated as a
 710-19  federal enterprise zone may be designated as an enterprise zone for
 710-20  longer than seven years but not longer than the period permitted by
 710-21  federal law.  (V.A.C.S. Art. 5190.7, Sec. 4(c).)
 710-22        Sec. 2303.110.  AMENDING BOUNDARIES.  (a)  The nominating
 710-23  body may amend the boundary of an enterprise zone by ordinance or
 710-24  order, as appropriate, adopted after a public hearing on the issue.
 710-25        (b)  The amended boundary:
 710-26              (1)  must be continuous;
 710-27              (2)  may not exceed the original size requirement of
  711-1  Section 2303.101; and
  711-2              (3)  may not exclude any area originally included
  711-3  within the boundary of the zone as designated.
  711-4        (c)  The entire enterprise zone with the amended boundary
  711-5  must continue to meet the unemployment and economic distress
  711-6  requirements of Section 2303.101.
  711-7        (d)  A nominating body may not make more than one boundary
  711-8  amendment annually for an enterprise zone.
  711-9        (e)  For each amendment of an enterprise zone boundary, the
 711-10  nominating body shall pay the department a reasonable fee, in an
 711-11  amount specified by the department, not to exceed $500.  The
 711-12  department may use fees collected under this subsection to
 711-13  administer this chapter and for other purposes to advance this
 711-14  chapter.  (V.A.C.S. Art. 5190.7, Secs. 4(d), (f).)
 711-15        Sec. 2303.111.  REMOVAL OF DESIGNATION.  (a)  The department
 711-16  may remove the designation of an area as an enterprise zone if:
 711-17              (1)  the area no longer meets the criteria for
 711-18  designation under this chapter or by department rule adopted under
 711-19  this chapter; or
 711-20              (2)  the department determines that the governing body
 711-21  of the enterprise zone has not complied with commitments made in
 711-22  the ordinance or order nominating the area as an enterprise zone.
 711-23        (b)  The removal of a designation does not affect the
 711-24  validity of:
 711-25              (1)  a tax incentive or regulatory relief granted or
 711-26  accrued before the removal; or
 711-27              (2)  bonds issued under this chapter.  (V.A.C.S. Art.
  712-1  5190.7, Sec. 4(e).)
  712-2          (Sections 2303.112-2303.200 reserved for expansion)
  712-3           SUBCHAPTER D.  ADMINISTRATION OF ENTERPRISE ZONE
  712-4        Sec. 2303.201.  ADMINISTRATION BY GOVERNING BODY.  The
  712-5  governing body of an enterprise zone is the governing body of the
  712-6  municipality or county, or the governing bodies of the combination
  712-7  of municipalities or counties, that applied to have the area
  712-8  designated as an enterprise zone.  (V.A.C.S. Art. 5190.7, Secs.
  712-9  3(a)(8), 22(a) (part).)
 712-10        Sec. 2303.202.  ADMINISTRATION BY ADMINISTRATIVE AUTHORITY.
 712-11  (a)  The governing body of an enterprise zone may delegate its
 712-12  administrative duties to an administrative authority appointed by
 712-13  the governing body.
 712-14        (b)  An administrative authority must:
 712-15              (1)  be composed of 3, 5, 7, 9, 11, or 15 members;
 712-16              (2)  be a viable and responsive body generally
 712-17  representative of all public or private entities that have a stake
 712-18  in the development of the zone; and
 712-19              (3)  include enterprise zone residents and
 712-20  representatives of the governing body of the zone and of local
 712-21  businesses.  (V.A.C.S. Art. 5190.7, Secs. 3(a)(1), 22(a) (part).)
 712-22        Sec. 2303.203.  PARTICIPATION BY NEIGHBORHOOD ENTERPRISE
 712-23  ASSOCIATIONS.  Each neighborhood enterprise association organized
 712-24  under Subchapter E should:
 712-25              (1)  actively participate in the administration of the
 712-26  enterprise zone for which the association was organized; and
 712-27              (2)  be encouraged to participate in planning and
  713-1  carrying out activities in the enterprise zone.  (V.A.C.S. Art.
  713-2  5190.7, Sec. 22(c).)
  713-3        Sec. 2303.204.  LIAISON.  The governing body of an enterprise
  713-4  zone shall designate a liaison to communicate and negotiate with:
  713-5              (1)  the department;
  713-6              (2)  the administrative authority, if one exists;
  713-7              (3)  an enterprise project; and
  713-8              (4)  other entities in or affected by the enterprise
  713-9  zone.  (V.A.C.S.  Art. 5190.7, Sec. 22(d).)
 713-10        Sec. 2303.205.  ANNUAL REPORT.  (a)  Not later than October 1
 713-11  of each year, the governing body of an enterprise zone shall submit
 713-12  to the department a report in the form required by the department.
 713-13        (b)  The report must be approved by the enterprise zone's
 713-14  administrative authority, if one exists.
 713-15        (c)  The report must include:
 713-16              (1)  for the year preceding the date of the report:
 713-17                    (A)  a list of local incentives for community
 713-18  development available in the zone;
 713-19                    (B)  the use of local incentives for which the
 713-20  governing body provided in the ordinance or order nominating the
 713-21  enterprise zone and the effect of those incentives on revenue;
 713-22                    (C)  the number of businesses located in the
 713-23  zone;
 713-24                    (D)  a copy of the report required under Section
 713-25  103, Internal Revenue Code of 1986 (26 U.S.C. Section 103), for all
 713-26  industrial revenue bonds issued to finance projects located in the
 713-27  zone; and
  714-1                    (E)  a statement on the attainment of
  714-2  revitalization goals for the zone; and
  714-3              (2)  for the year preceding the date on which the area
  714-4  was designated as an enterprise zone, the number of businesses
  714-5  located in the zone.  (V.A.C.S.  Art. 5190.7, Sec. 23.)
  714-6          (Sections 2303.206-2303.300 reserved for expansion)
  714-7          SUBCHAPTER E.  NEIGHBORHOOD ENTERPRISE ASSOCIATIONS
  714-8        Sec. 2303.301.  ORGANIZATION OF NEIGHBORHOOD ENTERPRISE
  714-9  ASSOCIATION.  (a)  Individuals residing in an enterprise zone may
 714-10  organize a neighborhood enterprise association.
 714-11        (b)  Only one association may exist for a geographic
 714-12  neighborhood area.
 714-13        (c)  The association must:
 714-14              (1)  be a nonprofit corporation organized under the
 714-15  Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
 714-16  Vernon's Texas Civil Statutes); and
 714-17              (2)  be eligible for federal tax exemption under
 714-18  Section 501(c) of the Internal Revenue Code of 1986 (26 U.S.C.
 714-19  Section 501(c)).
 714-20        (d)  The articles of incorporation must:
 714-21              (1)  describe the geographic neighborhood area of the
 714-22  association; and
 714-23              (2)  authorize the association to engage in business
 714-24  only in the enterprise zone in which the neighborhood area is
 714-25  located.
 714-26        (e)  The incorporators shall publish in a newspaper of
 714-27  general circulation in the governmental entity or entities that
  715-1  applied to have the area designated as an enterprise zone an
  715-2  explanation of the proposed association and the incorporators'
  715-3  rights in the association.
  715-4        (f)  A copy of the association's articles of incorporation
  715-5  and bylaws shall be available for public inspection at:
  715-6              (1)  the office of the city manager or comparable
  715-7  municipal officer if the entity is a municipality; or
  715-8              (2)  the county judge's office if the entity is a
  715-9  county.  (V.A.C.S. Art. 5190.7, Secs. 21(a), (b) (part), (c), (d).)
 715-10        Sec. 2303.302.  CERTIFICATION OF ASSOCIATION.  (a)  After a
 715-11  neighborhood enterprise association is organized, the association's
 715-12  board of directors must apply to the governing body of the
 715-13  enterprise zone or to the department for certification as a
 715-14  neighborhood enterprise association.
 715-15        (b)  The governing body of the enterprise zone or the
 715-16  department may not grant certification unless the association has
 715-17  hired or appointed a suitable chief executive officer.  (V.A.C.S.
 715-18  Art. 5190.7, Secs. 21(f), (g).)
 715-19        Sec. 2303.303.  MEMBERSHIP; VOTING.  (a)  The membership of a
 715-20  neighborhood enterprise association may be composed only of
 715-21  residents of the enterprise zone.
 715-22        (b)  An individual is entitled to be a member of a
 715-23  neighborhood enterprise association if the individual is:
 715-24              (1)  a resident of the association's geographic
 715-25  neighborhood area; and
 715-26              (2)  of voting age.
 715-27        (c)  To be entitled to vote, a member of the association must
  716-1  have been a resident of the association's neighborhood area for at
  716-2  least one year.  (V.A.C.S. Art. 5190.7, Secs. 21(b) (part), (e).)
  716-3        Sec. 2303.304.  POWERS OF NEIGHBORHOOD ENTERPRISE
  716-4  ASSOCIATIONS.  (a)  A neighborhood enterprise association may
  716-5  purchase or lease publicly or privately owned real property.
  716-6        (b)  A neighborhood enterprise association with the approval
  716-7  of and in coordination with the responsible state or local
  716-8  governmental entity may:
  716-9              (1)  establish crime watch patrols in the association's
 716-10  geographic neighborhood area;
 716-11              (2)  establish volunteer day-care centers;
 716-12              (3)  organize recreational activities for the
 716-13  association's geographic neighborhood area youth;
 716-14              (4)  provide garbage collection;
 716-15              (5)  maintain and improve streets, bridges, and water
 716-16  and sewer lines;
 716-17              (6)  provide energy conservation projects;
 716-18              (7)  provide health and clinic services;
 716-19              (8)  provide drug abuse programs;
 716-20              (9)  provide senior citizen assistance programs;
 716-21              (10)  maintain parks;
 716-22              (11)  rehabilitate, renovate, operate, or maintain low
 716-23  or moderate income housing; and
 716-24              (12)  provide other types of public services as
 716-25  authorized by law or rule.
 716-26        (c)  A service may be provided under Subsection (b) by the
 716-27  association or, if feasible and prudent and after agreement with
  717-1  the appropriate state or local governmental entity, by a private
  717-2  firm or organization.
  717-3        (d)  The governmental entity responsible for providing a
  717-4  service may contract with a neighborhood enterprise association to
  717-5  provide services in an amount equal to the amount saved by the
  717-6  entity by the provision of the service under the contract.
  717-7        (e)  A neighborhood enterprise association has powers
  717-8  established by other law or rule, including powers available to
  717-9  similar corporations under state law.  (V.A.C.S. Art. 5190.7,
 717-10  Secs. 21(i), (j), (n), (o).)
 717-11        Sec. 2303.305.  APPROVED PROJECTS.  (a)  On approval of the
 717-12  governing body of an enterprise zone, a neighborhood enterprise
 717-13  association may carry out projects other than those under Section
 717-14  2303.304(b).  The association must submit to the governing body an
 717-15  application that describes the nature and benefit of the project
 717-16  and that specifically states:
 717-17              (1)  how the project will contribute to the self-help
 717-18  efforts of the residents of the association's geographic
 717-19  neighborhood area;
 717-20              (2)  how the residents of the geographic neighborhood
 717-21  area will be involved in the planning and implementation of the
 717-22  project;
 717-23              (3)  whether there are sufficient resources to complete
 717-24  the project and whether the association will be fiscally
 717-25  responsible for the project; and
 717-26              (4)  whether the project will enhance the enterprise
 717-27  zone by:
  718-1                    (A)  creating permanent jobs;
  718-2                    (B)  physically improving the housing stock;
  718-3                    (C)  stimulating neighborhood business activity;
  718-4  or
  718-5                    (D)  preventing crime.
  718-6        (b)  If the governing body of an enterprise zone does not
  718-7  disapprove an application submitted under Subsection (a) before the
  718-8  45th day after the day of receipt of the application, the
  718-9  application is considered to be approved.
 718-10        (c)  If the governing body of an enterprise zone disapproves
 718-11  an application submitted under Subsection (a), the governing body
 718-12  shall notify the association of the specific reasons for the
 718-13  decision and shall allow the association to amend the application
 718-14  on or before the 60th day after the date of the notification.
 718-15        (d)  The association shall furnish to the governing body of
 718-16  the enterprise zone:
 718-17              (1)  an annual statement of the programmatic and
 718-18  financial status of each approved project; and
 718-19              (2)  an audited financial statement of the project.
 718-20  (V.A.C.S.  Art. 5190.7, Secs. 21(k), (l), (m).)
 718-21          (Sections 2303.306-2303.400 reserved for expansion)
 718-22      SUBCHAPTER F.  QUALIFIED BUSINESSES AND ENTERPRISE PROJECTS
 718-23        Sec. 2303.401.  QUALIFIED BUSINESS.  (a)  A person is a
 718-24  qualified business if the department, for the purpose of state
 718-25  benefits under this chapter, or the governing body of an enterprise
 718-26  zone, for the purpose of local benefits, certifies that:
 718-27              (1)  the person is engaged in or has provided
  719-1  substantial commitment to initiate the active conduct of a trade or
  719-2  business in the enterprise zone; and
  719-3              (2)  at least 25 percent of the person's new employees
  719-4  in the enterprise zone are:
  719-5                    (A)  residents of any enterprise zone in the
  719-6  jurisdiction of the governing body of the enterprise zone; or
  719-7                    (B)  economically disadvantaged individuals.
  719-8        (b)  The governing body of an enterprise zone may certify a
  719-9  franchise or subsidiary of a new or existing business as a
 719-10  qualified business if the franchise or subsidiary:
 719-11              (1)  is located entirely in the enterprise zone; and
 719-12              (2)  maintains separate books and records of the
 719-13  business activity conducted in the zone.
 719-14        (c)  For the purposes of this section, an economically
 719-15  disadvantaged individual is an individual who:
 719-16              (1)  was unemployed for at least three months before
 719-17  obtaining employment with the qualified business;
 719-18              (2)  receives public assistance benefits, including
 719-19  welfare payments or food stamps, based on need and intended to
 719-20  alleviate poverty;
 719-21              (3)  is an economically disadvantaged individual, as
 719-22  defined by Section 4(8), Job Training Partnership Act (29 U.S.C.
 719-23  Section 1503(8));
 719-24              (4)  is an individual with handicaps, as defined by 29
 719-25  U.S.C. Section 706(8);
 719-26              (5)  is an inmate, as defined by Section 498.001;
 719-27              (6)  is entering the workplace after being confined in
  720-1  a unit of the institutional division of the Texas Department of
  720-2  Criminal Justice or a correctional facility authorized by Chapter
  720-3  495; or
  720-4              (7)  meets the current low income or moderate income
  720-5  limits developed under Section 8, United States Housing Act of 1937
  720-6  (42 U.S.C. Section 1437f et seq.).  (V.A.C.S. Art. 5190.7,
  720-7  Secs. 3(a)(5) and (11), (c).)
  720-8        Sec. 2303.402.  PROHIBITION ON QUALIFIED BUSINESS
  720-9  CERTIFICATION.  If the department determines that the governing
 720-10  body of an enterprise zone is not complying with this chapter, the
 720-11  department shall prohibit the certification of a qualified business
 720-12  in the zone until the department determines that the governing body
 720-13  is complying with this chapter.  (V.A.C.S.  Art. 5190.7,
 720-14  Sec. 8(h).)
 720-15        Sec. 2303.403.  ENTERPRISE PROJECT DESIGNATION.  (a)  After
 720-16  August 31, 1993, the department may not designate a business as an
 720-17  enterprise project.  The department's designation of a qualified
 720-18  business as an enterprise project before that date is effective
 720-19  until the fifth anniversary of the date on which the designation is
 720-20  made.
 720-21        (b)  The department may remove an enterprise project
 720-22  designation if it determines that the business is not complying
 720-23  with a requirement for its designation.  (V.A.C.S. Art. 5190.7,
 720-24  Secs. 3(a)(6), 10(e), (g), (k) (part).)
 720-25          (Sections 2303.404-2303.500 reserved for expansion)
 720-26                SUBCHAPTER G.  ENTERPRISE ZONE BENEFITS
 720-27        Sec. 2303.501.  EXEMPTIONS FROM STATE REGULATION; SUSPENSION
  721-1  OF LOCAL REGULATION.  (a)  A state agency may exempt from its
  721-2  regulation a qualified business, qualified employee, qualified
  721-3  property, or neighborhood enterprise association in an enterprise
  721-4  zone if the exemption is consistent with:
  721-5              (1)  the purposes of this chapter; and
  721-6              (2)  the protection and promotion of the general health
  721-7  and welfare.
  721-8        (b)  A local government may suspend local regulation,
  721-9  including an ordinance, rule, or standard, relating to zoning,
 721-10  licensing, or building codes in an enterprise zone.
 721-11        (c)  An exemption from or suspension of regulation under this
 721-12  section must be adopted in the same manner that the regulation was
 721-13  adopted.
 721-14        (d)  The authorization provided by Subsection (a) or (b) does
 721-15  not apply to regulation:
 721-16              (1)  that relates to:
 721-17                    (A)  civil rights;
 721-18                    (B)  equal employment;
 721-19                    (C)  equal opportunity;
 721-20                    (D)  fair housing rights; or
 721-21                    (E)  preservation of historical sites or
 721-22  historical artifacts;
 721-23              (2)  the relaxation of which is likely to harm the
 721-24  public safety or public health, including environmental health; or
 721-25              (3)  that is specifically imposed by law.
 721-26        (e)  For the purposes of this section, property is classified
 721-27  as qualified property if the property is:
  722-1              (1)  tangible personal property located in the
  722-2  enterprise zone that was:
  722-3                    (A)  acquired by a taxpayer not earlier than the
  722-4  90th day before the date on which the area was designated as an
  722-5  enterprise zone; and
  722-6                    (B)  used predominately by the taxpayer in the
  722-7  active conduct of a trade or business;
  722-8              (2)  real property located in the enterprise zone that
  722-9  was:
 722-10                    (A)  acquired by a taxpayer not earlier than the
 722-11  90th day before the date on which the area was designated as an
 722-12  enterprise zone and was used predominately by the taxpayer in the
 722-13  active conduct of a trade or business; or
 722-14                    (B)  the principal residence of the taxpayer on
 722-15  the date of the sale or exchange; or
 722-16              (3)  an interest in an entity that was certified as a
 722-17  qualified business under Section 2303.401 for the entity's most
 722-18  recent tax year ending before the date of the sale or exchange.
 722-19  (V.A.C.S. Art. 5190.7, Secs. 3(a)(13), 15(a), (c), (d).)
 722-20        Sec. 2303.502.  REVIEW OF STATE AGENCY RULES; REPORT.  (a)  A
 722-21  state agency rule adopted after September 1, 1987, may provide,
 722-22  when applicable, encouragements and incentives to increase:
 722-23              (1)  the renovation, improvement, or new construction
 722-24  of housing in enterprise zones; and
 722-25              (2)  the economic viability and profitability of
 722-26  business and commerce in enterprise zones.
 722-27        (b)  Annually each state agency shall:
  723-1              (1)  review the rules it administers that:
  723-2                    (A)  may adversely affect:
  723-3                          (i)  the renovation, improvement, or new
  723-4  construction of housing in enterprise zones; or
  723-5                          (ii)  the economic viability and
  723-6  profitability of business and commerce in enterprise zones; or
  723-7                    (B)  may otherwise affect the implementation of
  723-8  this chapter; and
  723-9              (2)  report the results of the review to the
 723-10  department.
 723-11        (c)  The department shall disseminate the reports to the
 723-12  governing bodies of enterprise zones and others as necessary to
 723-13  advance the purposes of this chapter.
 723-14        (d)  To contribute to the implementation of this chapter, an
 723-15  agency may waive, modify, provide exemptions to, or otherwise
 723-16  minimize the adverse effects of the rules it administers on the
 723-17  renovation, improvement, or new construction of housing in
 723-18  enterprise zones or on the economic viability and profitability of
 723-19  business and commerce in enterprise zones.  (V.A.C.S. Art.  5190.7,
 723-20  Sec. 15(e).)
 723-21        Sec. 2303.503.  STATE PREFERENCES.  (a)  A state agency shall
 723-22  give preference to the governing body of an enterprise zone or a
 723-23  qualified business or qualified employee located in an enterprise
 723-24  zone over other eligible applicants for grants or loans that are
 723-25  administered by the state agency if:
 723-26              (1)  at least 50 percent of the grant or loan will be
 723-27  spent for the direct benefit of the enterprise zone; and
  724-1              (2)  the purpose of the grant or loan is to:
  724-2                    (A)  promote economic development in the
  724-3  community; or
  724-4                    (B)  construct, improve, extend, repair, or
  724-5  maintain public facilities in the community.
  724-6        (b)  The state treasurer may and is encouraged to deposit
  724-7  state money in financial institutions located or doing business in
  724-8  enterprise zones.
  724-9        (c)  A state agency may and is encouraged to contract with
 724-10  businesses located in enterprise zones.
 724-11        (d)  The department may give preference to enterprise zones
 724-12  in granting economic development money or other benefits.
 724-13  (V.A.C.S. Art. 5190.7, Sec.  18.)
 724-14        Sec. 2303.504.  STATE TAX REFUNDS AND DEDUCTION; REPORT.  (a)
 724-15  An enterprise project is entitled to:
 724-16              (1)  a refund of state taxes under Section 151.429, Tax
 724-17  Code; and
 724-18              (2)  a deduction from taxable capital under Section
 724-19  171.1015, Tax Code.
 724-20        (b)  A qualified business is entitled to a refund of state
 724-21  taxes under Sections 151.431 and 171.501, Tax Code.
 724-22        (c)  Not later than the 60th day after the last day of each
 724-23  fiscal year, the comptroller shall report to the department the
 724-24  statewide total of the tax refunds made under this section during
 724-25  that fiscal year.  (V.A.C.S. Art.  5190.7, Secs. 9(b), 17.)
 724-26        Sec. 2303.505.  LOCAL SALES AND USE TAX REFUNDS.  (a)  To
 724-27  encourage the development of areas designated as enterprise zones,
  725-1  the governing body of a municipality through a program may refund
  725-2  its local sales and use taxes paid by a qualified business on:
  725-3              (1)  the purchase, lease, or rental of equipment or
  725-4  machinery for use in an enterprise zone; or
  725-5              (2)  the purchase of material for use in remodeling,
  725-6  rehabilitating, or constructing a structure in an enterprise zone.
  725-7        (b)  To promote the public health, safety, or welfare, the
  725-8  governing body of a municipality or county through a program may
  725-9  refund its local sales and use taxes paid by a qualified business
 725-10  or qualified employee.
 725-11        (c)  The governing body of a municipality or county that is
 725-12  the governing body of an enterprise zone may provide for the
 725-13  partial or total refund of its local sales and use taxes paid by a
 725-14  person making a taxable purchase, lease, or rental for development
 725-15  or revitalization in the zone.
 725-16        (d)  A person entitled to a refund of local sales and use
 725-17  taxes under this section shall pay the entire amount of state and
 725-18  local sales and use taxes at the time the taxes would be due if an
 725-19  agreement for the refund did not exist.
 725-20        (e)  An agreement to refund local sales and use taxes under
 725-21  this section must:
 725-22              (1)  be written;
 725-23              (2)  contain an expiration date; and
 725-24              (3)  require that the person entitled to the refund
 725-25  provide to the municipality or county making the refund the
 725-26  documentation necessary to support a refund claim.
 725-27        (f)  The municipality or county shall make the refund
  726-1  directly to the person entitled to the refund in the manner
  726-2  provided by the agreement.  (V.A.C.S. Art.  5190.7, Sec. 12.)
  726-3        Sec. 2303.506.  REDUCTION OR ELIMINATION OF LOCAL FEES OR
  726-4  TAXES.  (a)  To promote the public health, safety, or welfare, the
  726-5  governing body of a municipality or county through a program may
  726-6  reduce or eliminate fees or taxes that it imposes on a qualified
  726-7  business or qualified employee.
  726-8        (b)  This section does not apply to sales and use taxes or
  726-9  property taxes.  (V.A.C.S. Art. 5190.7, Sec. 13 (part).)
 726-10        Sec. 2303.507.  TAX INCREMENT FINANCING AND ABATEMENT.
 726-11  Designation of an area as an enterprise zone is also designation of
 726-12  the area as a reinvestment zone for:
 726-13              (1)  tax increment financing under Chapter 311, Tax
 726-14  Code; and
 726-15              (2)  tax abatement under Chapter 312, Tax Code.
 726-16  (V.A.C.S. Art. 5190.7, Sec. 11.)
 726-17        Sec. 2303.508.  TAX EXEMPTION FOR NEIGHBORHOOD ENTERPRISE
 726-18  ASSOCIATION.  A neighborhood enterprise association is exempt from
 726-19  state and local taxes during the period of the designation of the
 726-20  enterprise zone in which it is located.  The exemption applies to
 726-21  tax arrearages and other back assessments on property leased under
 726-22  Section 2303.512.  (V.A.C.S. Art. 5190.7, Sec.  21(q).)
 726-23        Sec. 2303.509.  DEVELOPMENT BONDS.  To finance a project in
 726-24  an enterprise zone, bonds may be issued under:
 726-25              (1)  the Act for Development of Employment, Industrial
 726-26  and Health Resources of 1971 (Article 5190.1, Vernon's Texas Civil
 726-27  Statutes); or
  727-1              (2)  the Development Corporation Act of 1979 (Article
  727-2  5190.6, Vernon's Texas Civil Statutes).  (V.A.C.S. Art. 5190.7,
  727-3  Sec. 19.)
  727-4        Sec. 2303.510.  INDUSTRIAL DEVELOPMENT CORPORATION.  (a)  The
  727-5  governing body of a municipality that is the governing body of an
  727-6  enterprise zone may create, in accordance with the Development
  727-7  Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
  727-8  Statutes), an industrial development corporation for use by the
  727-9  enterprise zone.
 727-10        (b)  A corporation created under this section has the powers
 727-11  and is subject to the limitations of a corporation created under
 727-12  the Development Corporation Act of 1979.  To the extent of a
 727-13  conflict between this section and that Act, that Act prevails.
 727-14        (c)  The articles of incorporation of a corporation created
 727-15  under this section must state that the corporation is governed by
 727-16  this section.
 727-17        (d)  The governing body of the municipality that creates an
 727-18  industrial development corporation shall appoint the board of
 727-19  directors of the corporation.  (V.A.C.S. Art. 5190.7, Sec. 25.)
 727-20        Sec. 2303.511.  OTHER LOCAL INCENTIVES.  (a)  The governing
 727-21  body of a municipality or county that is the governing body of an
 727-22  enterprise zone may:
 727-23              (1)  defer compliance in the zone with the subdivision
 727-24  and development ordinances or rules, other than those relating to
 727-25  streets and roads or sewer or water services, of the municipality
 727-26  or county, as appropriate;
 727-27              (2)  give priority to the zone for the receipt of:
  728-1                    (A)  urban development action grant money;
  728-2                    (B)  community development block grant money;
  728-3                    (C)  industrial revenue bonds; or
  728-4                    (D)  funds received under the Texas Job-Training
  728-5  Partnership Act (Article 4413(52), Vernon's Texas Civil Statutes);
  728-6              (3)  adopt and implement a plan for police protection
  728-7  in the zone;
  728-8              (4)  amend the zoning ordinances of the municipality or
  728-9  county, as appropriate, to promote economic development in the
 728-10  zone;
 728-11              (5)  establish permitting preferences for businesses in
 728-12  the zone;
 728-13              (6)  establish simplified, accelerated, or other
 728-14  special permit procedures for businesses in the zone;
 728-15              (7)  waive development fees for projects in the zone;
 728-16              (8)  create a local enterprise zone fund for funding
 728-17  bonds or other programs or activities to develop or revitalize the
 728-18  zone;
 728-19              (9)  for qualified businesses in the zone, reduce rates
 728-20  charged by:
 728-21                    (A)  a utility owned by the municipality or
 728-22  county, as appropriate; or
 728-23                    (B)  a cooperative corporation or utility owned
 728-24  by private investors, subject to the requirements of Subsection
 728-25  (b);
 728-26              (10)  in issuing housing finance bonds, give priority
 728-27  to persons or projects in the zone;
  729-1              (11)  in providing services, give priority to local
  729-2  economic development, educational, job training, or transportation
  729-3  programs that benefit the zone; or
  729-4              (12)  sell real property owned by the municipality or
  729-5  county, as appropriate, and located in the enterprise zone in
  729-6  accordance with Section 2303.513.
  729-7        (b)  A reduction in utility rates under Subsection (a)(9)(B)
  729-8  is subject to the agreement of the affected utility and the
  729-9  approval of the appropriate regulatory authority under Sections 16
 729-10  and 17, Public Utility Regulatory Act (Article 1446c, Vernon's
 729-11  Texas Civil Statutes).  The rates may not be reduced more than five
 729-12  percent.  In setting the rates of the utility the appropriate
 729-13  regulatory authority shall allow the utility to recover the amount
 729-14  of the reduction.  (V.A.C.S. Art. 5190.7, Sec. 14.)
 729-15        Sec. 2303.512.  LEASE OF PUBLIC PROPERTY TO NEIGHBORHOOD
 729-16  ENTERPRISE ASSOCIATION.  (a)  The state or a local government may
 729-17  lease to a neighborhood enterprise association real property
 729-18  located in the association's geographical neighborhood area that is
 729-19  owned by the governmental entity and that is not being used by the
 729-20  entity.
 729-21        (b)  The lease must be for a term of not less than 20 years
 729-22  and the full amount of the rental fees under the lease may not
 729-23  exceed $1 a year.
 729-24        (c)  The state or local government shall renew the lease on
 729-25  its expiration if the association has continuously complied with
 729-26  Subchapter E during the lease term.  (V.A.C.S. Art. 5190.7, Sec.
 729-27  21(p).)
  730-1        Sec. 2303.513.  DISPOSITION OF PUBLIC PROPERTY IN ENTERPRISE
  730-2  ZONE.  (a)  After an area is designated as an enterprise zone, the
  730-3  state, a municipality, or a county that owns a surplus building or
  730-4  vacant land in the zone may dispose of the building or land by:
  730-5              (1)  selling the building or land at a public auction;
  730-6              (2)  selling the land to a neighborhood enterprise
  730-7  association; or
  730-8              (3)  establishing an urban homestead program described
  730-9  by Subsection (c).
 730-10        (b)  A municipality or county may sell a surplus building or
 730-11  vacant land in the enterprise zone at less than fair market value
 730-12  if the governing body of the municipality or county by ordinance or
 730-13  order, as appropriate, adopts criteria that specify the conditions
 730-14  and circumstances under which the sale may occur and the public
 730-15  purpose to be achieved by the sale.  The building or land may be
 730-16  sold to a buyer who is not the highest bidder if the criteria and
 730-17  public purpose specified in the ordinance or order are satisfied.
 730-18  A copy of the ordinance or order must be filed with the department
 730-19  not later than the day on which the sale occurs.
 730-20        (c)  An urban homestead program must provide that:
 730-21              (1)  the state, municipality, or county is to sell to
 730-22  an individual a residence or part of a residence that it owns for
 730-23  an amount not to exceed $100;
 730-24              (2)  as a condition of the sale, the individual must
 730-25  agree to live in the residence for at least seven years and to
 730-26  renovate or remodel the residence to meet the level of maintenance
 730-27  stated in an agreement between the individual and the governmental
  731-1  entity; and
  731-2              (3)  after the individual satisfies the seven-year
  731-3  residency and property improvement requirements of the agreement,
  731-4  the governmental entity shall assign the residence to the
  731-5  individual.  (V.A.C.S. Art. 5190.7, Sec. 20.)
  731-6        Sec. 2303.514.  WAIVER OF PERFORMANCE BOND.  A prime
  731-7  contractor is not required to execute a performance bond under
  731-8  Chapter 2253 if:
  731-9              (1)  the construction, alteration, repair, or other
 731-10  public work to be performed under the contract is entirely in an
 731-11  enterprise zone; and
 731-12              (2)  the amount of the contract does not exceed
 731-13  $200,000.  (V.A.C.S. Art.  5190.7, Sec. 16.)
 731-14        Sec. 2303.515.  LIABILITY OF CONTRACTOR OR ARCHITECT.  A
 731-15  contractor or architect who constructs or rehabilitates a building
 731-16  in an enterprise zone is liable for any structural defect in the
 731-17  building only for the period ending on the 10th anniversary of the
 731-18  date on which beneficial occupancy of the building begins after the
 731-19  construction or rehabilitation, notwithstanding a statute of
 731-20  limitations to the contrary.  (V.A.C.S. Art. 5190.7, Sec. 15(b).)
 731-21                 CHAPTER 2304.  HOUSING REHABILITATION
 731-22                   SUBCHAPTER A.  GENERAL PROVISIONS
 731-23  Sec. 2304.001.  SHORT TITLE
 731-24  Sec. 2304.002.  PURPOSES
 731-25  Sec. 2304.003.  DEFINITIONS
 731-26  Sec. 2304.004.  GENERAL POWERS OF DEPARTMENT
 731-27  Sec. 2304.005.  AUTHORITY OF DEPARTMENT TO ADOPT MINIMUM
  732-1                    HOUSING CODE STANDARDS
  732-2  Sec. 2304.006.  LIMITATION ON CONSTRUCTION OF HOUSING OR
  732-3                    ACQUISITION OF PROPERTY BY DEPARTMENT
  732-4  Sec. 2304.007.  PROHIBITION ON BORROWING, INCURRING
  732-5                    OBLIGATIONS, OR PLEDGING CREDIT
  732-6  Sec. 2304.008.  ALLOCATION OF AVAILABLE LOAN FUNDS
  732-7  Sec. 2304.009.  RELATIONSHIP OF DEPARTMENT AND
  732-8                    LOCAL GOVERNMENTS
  732-9  Sec. 2304.010.  DESIGNATION OF LOCAL AGENCY BY
 732-10                    LOCAL GOVERNMENT
 732-11  Sec. 2304.011.  EDUCATION PROGRAM CONDUCTED BY
 732-12                     LOCAL GOVERNMENT
 732-13          (Sections 2304.012-2304.020 reserved for expansion)
 732-14            SUBCHAPTER B.  HOUSING REHABILITATION LOAN FUND
 732-15  Sec. 2304.021.  FUND
 732-16  Sec. 2304.022.  DEPOSITS TO FUND
 732-17  Sec. 2304.023.  PURPOSES OF FUND
 732-18  Sec. 2304.024.  INVESTMENT AND DISBURSEMENT OF FUND
 732-19          (Sections 2304.025-2304.040 reserved for expansion)
 732-20            SUBCHAPTER C.  HOUSING REHABILITATION AREA PLAN
 732-21  Sec. 2304.041.  DESIGNATION OF AREA AND PREPARATION
 732-22                    OF PLAN
 732-23  Sec. 2304.042.  CONTENTS OF AREA PLAN
 732-24  Sec. 2304.043.  APPROVAL OF AREA PLAN
 732-25  Sec. 2304.044.  REJECTION OF AREA PLAN
 732-26          (Sections 2304.045-2304.060 reserved for expansion)
 732-27              SUBCHAPTER D.  HOUSING REHABILITATION LOANS
  733-1  Sec. 2304.061.  PRIMARY USE FOR LOAN
  733-2  Sec. 2304.062.  DEPARTMENT LOAN RULES
  733-3  Sec. 2304.063.  LOAN APPLICATION
  733-4  Sec. 2304.064.  LOCAL GOVERNMENT APPROVAL OF LOAN
  733-5  Sec. 2304.065.  DEPARTMENT APPROVAL
  733-6  Sec. 2304.066.  DISBURSEMENT OF LOAN FUNDS
  733-7  Sec. 2304.067.  LIMIT ON AMOUNT OF LOAN
  733-8  Sec. 2304.068.  ADMINISTRATIVE CHARGE IMPOSED BY LOCAL
  733-9                    GOVERNMENT
 733-10  Sec. 2304.069.  INTEREST RATE
 733-11  Sec. 2304.070.  TERM OF LOAN
 733-12  Sec. 2304.071.  INSTALLMENT PAYMENTS
 733-13  Sec. 2304.072.  LOAN TO BE SECURED
 733-14  Sec. 2304.073.  OTHER LOAN CONDITIONS
 733-15  Sec. 2304.074.  ADJUSTMENTS IF BORROWER UNABLE
 733-16                    TO REPAY LOAN
 733-17  Sec. 2304.075.  DISPOSITION OR ENCUMBRANCE OF PROPERTY BY
 733-18                    BORROWER
 733-19  Sec. 2304.076.  CONDITIONS UNDER WHICH LOAN BECOMES IMMEDIATELY
 733-20                    DUE
 733-21  Sec. 2304.077.  ACQUISITION OF PROPERTY TO PROTECT LOAN
 733-22  Sec. 2304.078.  ACQUISITION OF PROPERTY TO ENFORCE LIEN
 733-23  Sec. 2304.079.  PUBLIC SALE OR AUCTION OF ACQUIRED PROPERTY
 733-24  Sec. 2304.080.  PRIVATE SALE
 733-25  Sec. 2304.081.  CONTRACT FOR SERVICING LOAN
 733-26  Sec. 2304.082.  AUDIT OF LOANS
 733-27          (Sections 2304.083-2304.100 reserved for expansion)
  734-1            SUBCHAPTER E.  HOUSING REHABILITATION CONTRACTS
  734-2  Sec. 2304.101.  STANDARDS FOR CONTRACTORS AND CONTRACTS
  734-3  Sec. 2304.102.  LOCAL GOVERNMENT APPROVAL AND SUPERVISION
  734-4                    OF CONTRACT
  734-5  Sec. 2304.103.  ADVERTISING REQUIREMENT FOR CERTAIN
  734-6                    CONTRACTS
  734-7  Sec. 2304.104.  PERFORMANCE AND PAYMENT BONDS
  734-8                 CHAPTER 2304.  HOUSING REHABILITATION
  734-9                   SUBCHAPTER A.  GENERAL PROVISIONS
 734-10        Sec. 2304.001.  SHORT TITLE.  This chapter may be cited as
 734-11  the Texas Housing Rehabilitation Act.  (V.A.C.S.  Art. 1269l-5,
 734-12  Sec. 1.)
 734-13        Sec. 2304.002.  PURPOSES.  (a)  The purposes of this chapter
 734-14  are to provide a means by which the deterioration of housing and
 734-15  the decline of residential areas throughout the state can be
 734-16  arrested and prevented.
 734-17        (b)  The purposes of this chapter are public purposes for
 734-18  which money may be borrowed, loaned, and spent.  (V.A.C.S. Art.
 734-19  1269l-5, Sec. 3.)
 734-20        Sec. 2304.003.  DEFINITIONS.  In this chapter:
 734-21              (1)  "Borrower" means a household whose application for
 734-22  a housing rehabilitation loan is approved under this chapter by a
 734-23  local government.
 734-24              (2)  "Department" means the Texas Department of Housing
 734-25  and Community Affairs.
 734-26              (3)  "Fund" means the Texas housing rehabilitation loan
 734-27  fund.
  735-1              (4)  "Household" means one or more persons owning
  735-2  housing.
  735-3              (5)  "Housing" means a structure that is on a permanent
  735-4  foundation and that consists of one to four family units used only
  735-5  for residential purposes.
  735-6              (6)  "Housing rehabilitation" means the repair,
  735-7  renovation, or other improvement of housing to make the housing
  735-8  decent, safe, sanitary, and more habitable.
  735-9              (7)  "Housing rehabilitation loan" means a loan made
 735-10  under this chapter.
 735-11              (8)  "Local agency" means a:
 735-12                    (A)  nonprofit organization whose principal
 735-13  purpose is to improve housing conditions; or
 735-14                    (B)  local housing authority, urban renewal
 735-15  agency, or other public entity.
 735-16              (9)  "Local government" means a county or municipality.
 735-17  (V.A.C.S. Art.  1269l-5, Secs. 4(1), (2), (4), (5) (part), and
 735-18  (6)-(9).)
 735-19        Sec. 2304.004.  GENERAL POWERS OF DEPARTMENT.  (a)  The
 735-20  department has the powers necessary or appropriate to carry out the
 735-21  purposes of this chapter.
 735-22        (b)  The department may:
 735-23              (1)  make an agreement with any other person in
 735-24  carrying out its powers or duties under this chapter;
 735-25              (2)  spend funds appropriated to it by the legislature
 735-26  to pay for staff, travel expenses, supplies or equipment, or
 735-27  contracts for services necessary to carry out its powers or duties
  736-1  under this chapter; or
  736-2              (3)  seek and accept funds from any source.  (V.A.C.S.
  736-3  Art. 1269l-5, Sec.  7 (part).)
  736-4        Sec. 2304.005.  AUTHORITY OF DEPARTMENT TO ADOPT MINIMUM
  736-5  HOUSING CODE STANDARDS.  The department shall adopt the minimum
  736-6  housing, building, fire, and related code standards that apply in
  736-7  designated areas for which a housing rehabilitation plan is
  736-8  approved by the department and for which local government standards
  736-9  are not in effect.  (V.A.C.S. Art. 1269l-5, Sec. 9(d).)
 736-10        Sec. 2304.006.  LIMITATION ON CONSTRUCTION OF HOUSING OR
 736-11  ACQUISITION OF PROPERTY BY DEPARTMENT.  (a)  The department may not
 736-12  construct housing.
 736-13        (b)  The department may not acquire housing except to enforce
 736-14  a lien under Subchapter D.  (V.A.C.S.  Art. 1269l-5, Sec. 8(a)
 736-15  (part).)
 736-16        Sec. 2304.007.  PROHIBITION ON BORROWING, INCURRING
 736-17  OBLIGATIONS, OR PLEDGING CREDIT.  The department may not borrow
 736-18  money, incur monetary obligations, or pledge in any manner the
 736-19  credit or taxing power of the state or a political subdivision of
 736-20  the state.  (V.A.C.S. Art. 1269l-5, Sec. 15.)
 736-21        Sec. 2304.008.  ALLOCATION OF AVAILABLE LOAN FUNDS.  If the
 736-22  amount of housing rehabilitation loans anticipated to be made in a
 736-23  fiscal year exceeds the estimated available funds for that year,
 736-24  the department shall allocate the estimated available funds for
 736-25  that year among the local governments that have filed housing
 736-26  rehabilitation area plans with the department.  In allocating the
 736-27  available funds, the department shall take into account the
  737-1  probable amount of housing rehabilitation loans to be made by each
  737-2  local government.  (V.A.C.S. Art. 1269l-5, Sec. 10(b).)
  737-3        Sec. 2304.009.  RELATIONSHIP OF DEPARTMENT AND LOCAL
  737-4  GOVERNMENTS.  (a)  The department shall adopt standards and
  737-5  procedures for the administration of this chapter by a local
  737-6  government or local agency.
  737-7        (b)  The department may provide technical assistance to a
  737-8  local government.  (V.A.C.S. Art. 1269l-5, Secs. 7 (part), 9(b)
  737-9  (part).)
 737-10        Sec. 2304.010.  DESIGNATION OF LOCAL AGENCY BY LOCAL
 737-11  GOVERNMENT.  The governing body of a local government may designate
 737-12  one or more local agencies to exercise a power or duty of the local
 737-13  government under this chapter.  The governing body may withdraw the
 737-14  delegated power or duty at any time.  (V.A.C.S. Art. 1269l-5, Sec.
 737-15  12(e).)
 737-16        Sec. 2304.011.  EDUCATION PROGRAM CONDUCTED BY LOCAL
 737-17  GOVERNMENT.  A local government engaged in housing rehabilitation
 737-18  under this chapter shall conduct a general education program to
 737-19  inform residents in designated areas of methods for maintaining
 737-20  their housing and of the availability of housing rehabilitation
 737-21  loans.  (V.A.C.S. Art. 1269l-5, Sec. 12(f).)
 737-22          (Sections 2304.012-2304.020 reserved for expansion)
 737-23            SUBCHAPTER B.  HOUSING REHABILITATION LOAN FUND
 737-24        Sec. 2304.021.  FUND.  (a)  The Texas housing rehabilitation
 737-25  loan fund is in the state treasury.
 737-26        (b)  The department may designate separate accounts in the
 737-27  fund and the purposes of the accounts.  (V.A.C.S. Art. 1269l-5,
  738-1  Secs. 5(a) (part), (b) (part).)
  738-2        Sec. 2304.022.  DEPOSITS TO FUND.  The following money shall
  738-3  be credited to the fund:
  738-4              (1)  money appropriated by the legislature for housing
  738-5  rehabilitation loans;
  738-6              (2)  money received from other sources for the purpose
  738-7  of making housing rehabilitation loans;
  738-8              (3)  money received from borrowers as payments on their
  738-9  housing rehabilitation loans;
 738-10              (4)  income from the transfer of interests in property
 738-11  acquired in connection with housing rehabilitation loans; and
 738-12              (5)  interest earned on deposits and investments of the
 738-13  fund.  (V.A.C.S.  Art. 1269l-5, Sec. 5(a) (part).)
 738-14        Sec. 2304.023.  PURPOSES OF FUND.  The fund may be used only
 738-15  for:
 738-16              (1)  financing housing rehabilitation loans, including
 738-17  the administrative charge imposed under Section 2304.068 by a local
 738-18  government; and
 738-19              (2)  paying the expenses incurred by the department in
 738-20  connection with the acquisition or disposition of real property
 738-21  under this chapter.  (V.A.C.S.  Art. 1269l-5, Sec. 5(c).)
 738-22        Sec. 2304.024.  INVESTMENT AND DISBURSEMENT OF FUND.  The
 738-23  state treasurer shall invest and disburse the money credited to the
 738-24  fund on the written authorization of the executive director of the
 738-25  department.  (V.A.C.S.  Art. 1269l-5, Sec. 5(b) (part).)
 738-26          (Sections 2304.025-2304.040 reserved for expansion)
 738-27            SUBCHAPTER C.  HOUSING REHABILITATION AREA PLAN
  739-1        Sec. 2304.041.  DESIGNATION OF AREA AND PREPARATION OF PLAN.
  739-2  (a)  A local government may allow households in a specific area
  739-3  within its boundaries to apply for housing rehabilitation loans by:
  739-4              (1)  designating the specific area; and
  739-5              (2)  preparing a housing rehabilitation plan for the
  739-6  designated area.
  739-7        (b)  A local government may designate more than one area
  739-8  within its boundaries.
  739-9        (c)  The designation of an area must be made in accordance
 739-10  with the standards established by the department.  The area plan
 739-11  must be in the form prescribed by the department.  (V.A.C.S. Art.
 739-12  1269l-5, Secs. 4(5) (part), 6(a).)
 739-13        Sec. 2304.042.  CONTENTS OF AREA PLAN.  A housing
 739-14  rehabilitation area plan must contain relevant information about
 739-15  the area, including:
 739-16              (1)  a description of the physical, social, and
 739-17  economic characteristics of the area;
 739-18              (2)  a description of the housing conditions in the
 739-19  area;
 739-20              (3)  an assessment of the need for housing
 739-21  rehabilitation loans in the area, including:
 739-22                    (A)  the number and characteristics of households
 739-23  in the area; and
 739-24                    (B)  the average and total loan amounts needed;
 739-25              (4)  a description of the methods by which the local
 739-26  government preparing the plan will determine whether the
 739-27  rehabilitation of housing in the area is economically feasible;
  740-1              (5)  a description of the methods by which:
  740-2                    (A)  rehabilitation work will be supervised; and
  740-3                    (B)  compliance with departmental regulations
  740-4  governing materials, fixtures, and rehabilitation contracts will be
  740-5  ensured;
  740-6              (6)  a description of the methods and procedures that
  740-7  will be used to enforce:
  740-8                    (A)  local housing, building, fire, and related
  740-9  codes; or
 740-10                    (B)  the standards adopted by the department
 740-11  under Section 2304.005, if codes of those types have not been
 740-12  enacted;
 740-13              (7)  an assessment of the need for additional public
 740-14  improvements and public services in the area and a description of
 740-15  the specific means by which the improvements and services will be
 740-16  provided; and
 740-17              (8)  a description of the methods by which private
 740-18  investment to improve conditions in the area will be encouraged.
 740-19  (V.A.C.S. Art. 1269l-5, Sec.  6(b).)
 740-20        Sec. 2304.043.  APPROVAL OF AREA PLAN.  (a)  A local
 740-21  government's area plan must be approved by resolution or order of
 740-22  the governing body of the local government and must be submitted to
 740-23  the department for review.
 740-24        (b)  The department shall approve the plan if the area meets
 740-25  the standards established by the department and if the plan
 740-26  contains the required information.  (V.A.C.S. Art. 1269l-5, Sec.
 740-27  6(c) (part).)
  741-1        Sec. 2304.044.  REJECTION OF AREA PLAN.  (a)  The department
  741-2  shall return a housing rehabilitation area plan to the local
  741-3  government submitting it if the area for which the plan is prepared
  741-4  does not meet the department's standards or if the plan does not
  741-5  contain the required information.  The department shall include
  741-6  with the returned plan a list of deficiencies.
  741-7        (b)  An area plan may be corrected and resubmitted for
  741-8  approval by the department.  (V.A.C.S. Art. 1269l-5, Sec. 6(c)
  741-9  (part).)
 741-10          (Sections 2304.045-2304.060 reserved for expansion)
 741-11              SUBCHAPTER D.  HOUSING REHABILITATION LOANS
 741-12        Sec. 2304.061.  PRIMARY USE FOR LOAN.  A housing
 741-13  rehabilitation loan must be used primarily to make housing comply
 741-14  with applicable state, county, or municipal housing codes or
 741-15  standards, including building, fire, health, housing maintenance,
 741-16  or similar codes.  (V.A.C.S. Art. 1269l-5, Sec. 13(a).)
 741-17        Sec. 2304.062.  DEPARTMENT LOAN RULES.  (a)  The department
 741-18  shall adopt rules governing the making and servicing of a housing
 741-19  rehabilitation loan and the foreclosure of a loan in default.  The
 741-20  rules must include:
 741-21              (1)  the requirement that a housing rehabilitation loan
 741-22  be evidenced by a promissory note payable to the state and be
 741-23  secured by a lien on real property in the state; and
 741-24              (2)  the standards under which a household in an area
 741-25  designated by a local government may qualify for a housing
 741-26  rehabilitation loan.
 741-27        (b)  In adopting the standards under Subsection (a)(2), the
  742-1  department shall take into account:
  742-2              (1)  household gross income;
  742-3              (2)  household income available for housing needs;
  742-4              (3)  household size;
  742-5              (4)  the value and condition of the housing to be
  742-6  rehabilitated; and
  742-7              (5)  the ability of households to compete successfully
  742-8  in the private housing market and to pay for sanitary, decent, and
  742-9  safe housing in that market.  (V.A.C.S. Art. 1269l-5, Secs. 9(a),
 742-10  (b) (part); 11(a) (part).)
 742-11        Sec. 2304.063.  LOAN APPLICATION.  A household may apply to
 742-12  the local government in which the household's housing is located
 742-13  for a housing rehabilitation loan if the housing is located in a
 742-14  designated area for which an area plan has been approved by the
 742-15  department.  (V.A.C.S. Art. 1269l-5, Sec. 6(c) (part).)
 742-16        Sec. 2304.064.  LOCAL GOVERNMENT APPROVAL OF LOAN.  (a)  A
 742-17  local government may approve or disapprove a housing rehabilitation
 742-18  loan application authorized by Section 2304.063.  The approval or
 742-19  disapproval must be given in accordance with the rules adopted by
 742-20  the department under Section 2304.062.
 742-21        (b)  The local government shall notify the department of the
 742-22  approval of a loan application and the amount of the approved loan.
 742-23  (V.A.C.S. Art.  1269l-5, Secs. 11(a) (part), 12(a).)
 742-24        Sec. 2304.065.  DEPARTMENT APPROVAL.  The department may not
 742-25  approve a housing rehabilitation loan unless it finds that:
 742-26              (1)  the benefit to an area designated under Section
 742-27  2304.041 will exceed the financial commitment of the department;
  743-1  and
  743-2              (2)  the approval of the loan will be of benefit to the
  743-3  state and its taxpayers.  (V.A.C.S. Art. 1269l-5, Sec. 11(b).)
  743-4        Sec. 2304.066.  DISBURSEMENT OF LOAN FUNDS.  (a)  The
  743-5  executive director of the department shall authorize the state
  743-6  treasurer to disburse to a local government from the housing
  743-7  rehabilitation loan fund the amount of a housing rehabilitation
  743-8  loan approved by the local government under this chapter if the
  743-9  department receives from the local government a notice of the local
 743-10  government's approval of the loan.
 743-11        (b)  The executive director may not authorize the
 743-12  disbursement of funds for a housing rehabilitation loan if:
 743-13              (1)  the department finds that the local government
 743-14  that approved the loan is not making a good faith effort to
 743-15  substantially comply with the applicable housing rehabilitation
 743-16  area plan or the rules adopted by the department; or
 743-17              (2)  the remaining part of the fund allocated to the
 743-18  local government under Section 2304.008 is insufficient to allow
 743-19  the payment of the approved amount.  (V.A.C.S. Art. 1269l-5, Sec.
 743-20  10(c).)
 743-21        Sec. 2304.067.  LIMIT ON AMOUNT OF LOAN.  The amount of a
 743-22  housing rehabilitation loan may not exceed:
 743-23              (1)  the amount determined by subtracting the amount of
 743-24  all other outstanding indebtedness secured by the property covered
 743-25  by the loan from the market value of the rehabilitated property as
 743-26  determined by the local government approving the loan; or
 743-27              (2)  the amount determined by adding the amount of the
  744-1  housing rehabilitation contract made and approved under Subchapter
  744-2  E for the property to the amount of the administrative charge
  744-3  imposed under Section 2304.068 in connection with the loan.
  744-4  (V.A.C.S. Art. 1269l-5, Secs. 4(3), 13(b).)
  744-5        Sec. 2304.068.  ADMINISTRATIVE CHARGE IMPOSED BY LOCAL
  744-6  GOVERNMENT.  (a)  A local government may impose a charge to cover
  744-7  its administrative expenses incurred in connection with a housing
  744-8  rehabilitation loan made by the local government.
  744-9        (b)  The local government may deduct the charge from the
 744-10  amount loaned.
 744-11        (c)  The charge may not exceed three percent of the amount of
 744-12  the contract for housing rehabilitation the borrower makes with a
 744-13  contractor.  (V.A.C.S.  Art. 1269l-5, Secs. 4(3), 12(c).)
 744-14        Sec. 2304.069.  INTEREST RATE.  (a)  The department shall set
 744-15  the minimum and maximum interest rates for housing rehabilitation
 744-16  loans.
 744-17        (b)  A local government shall set the interest rate for a
 744-18  housing rehabilitation loan it approves under this chapter.  The
 744-19  rate must be within the minimum and maximum rates set by the
 744-20  department.  (V.A.C.S. Art. 1269l-5, Secs. 9(c), 12(b) (part).)
 744-21        Sec. 2304.070.  TERM OF LOAN.  A local government shall set
 744-22  the term of a housing rehabilitation loan it approves under this
 744-23  chapter.  The term may not exceed 20 years.  (V.A.C.S.  Art.
 744-24  1269l-5, Secs. 12(b) (part), 13(c) (part).)
 744-25        Sec. 2304.071.  INSTALLMENT PAYMENTS.  A housing
 744-26  rehabilitation loan must be repaid in installments.  (V.A.C.S. Art.
 744-27  1269l-5, Sec. 13(c) (part).)
  745-1        Sec. 2304.072.  LOAN TO BE SECURED.  A housing rehabilitation
  745-2  loan must be secured as required by this chapter and the rules
  745-3  adopted under this chapter.  (V.A.C.S. Art. 1269l-5, Sec. 13(c)
  745-4  (part).)
  745-5        Sec. 2304.073.  OTHER LOAN CONDITIONS.  For a housing
  745-6  rehabilitation loan a local government approves under this chapter,
  745-7  the local government shall establish other necessary conditions
  745-8  relating to the repayment of the loan according to this chapter and
  745-9  the regulations of the department.  (V.A.C.S. Art. 1269l-5, Sec.
 745-10  12(b) (part).)
 745-11        Sec. 2304.074.  ADJUSTMENTS IF BORROWER UNABLE TO REPAY LOAN.
 745-12  A local government may allow for the deferment of payments or may
 745-13  adjust the interest rate or term of a housing rehabilitation loan
 745-14  approved by the local government if the borrower is unable to make
 745-15  the required payments.  (V.A.C.S. Art. 1269l-5, Sec. 13(c) (part).)
 745-16        Sec. 2304.075.  DISPOSITION OR ENCUMBRANCE OF PROPERTY BY
 745-17  BORROWER.  The department may adopt regulations governing the
 745-18  disposition or further encumbrance by the borrower of property
 745-19  subject to a lien that secures a housing rehabilitation loan.
 745-20  (V.A.C.S. Art. 1269l-5, Sec. 7 (part).)
 745-21        Sec. 2304.076.  CONDITIONS UNDER WHICH LOAN BECOMES
 745-22  IMMEDIATELY DUE.  (a)  A borrower must agree that if the borrower
 745-23  voluntarily destroys, moves from, or relinquishes ownership of the
 745-24  rehabilitated housing on or before the first anniversary of the
 745-25  date the rehabilitation is completed:
 745-26              (1)  the borrower's housing rehabilitation loan becomes
 745-27  immediately due and payable; and
  746-1              (2)  an interest surcharge is added sufficient to make
  746-2  the total interest paid equal an amount determined by the
  746-3  prevailing interest rates for rehabilitation loans from private
  746-4  sources at the time of the sale.
  746-5        (b)  The local government that approved the loan may waive
  746-6  the interest surcharge if:
  746-7              (1)  the local government finds that the borrower must
  746-8  sell the housing because of financial hardship or similar
  746-9  circumstances; and
 746-10              (2)  the department consents to the waiver.
 746-11        (c)  A local government that approved a housing
 746-12  rehabilitation loan may, with the consent of the department, take
 746-13  the following action if the borrower dies or the borrower sells or
 746-14  gives away property encumbered by the loan:
 746-15              (1)  declare all or part of any deferred payments due
 746-16  and payable;
 746-17              (2)  declare the balance of the loan due and payable;
 746-18  or
 746-19              (3)  allow a buyer, donee, or other successor in title
 746-20  who qualifies under Section 2304.062 to assume the loan.  (V.A.C.S.
 746-21  Art. 1269l-5, Secs. 13(d), 16.)
 746-22        Sec. 2304.077.  ACQUISITION OF PROPERTY TO PROTECT LOAN.  The
 746-23  department may acquire title to any project by foreclosure if
 746-24  necessary to protect a housing rehabilitation loan made for the
 746-25  project by the department and to pay the costs arising from the
 746-26  foreclosure.  (V.A.C.S. Art. 1269l-5, Sec. 13(e).)
 746-27        Sec. 2304.078.  ACQUISITION OF PROPERTY TO ENFORCE LIEN.  To
  747-1  enforce a lien under this chapter, the department may acquire
  747-2  housing by:
  747-3              (1)  foreclosure of a mortgage;
  747-4              (2)  a sale under a deed of trust; or
  747-5              (3)  a voluntary conveyance from a borrower in full or
  747-6  partial settlement of a housing rehabilitation loan.  (V.A.C.S.
  747-7  Art. 1269l-5, Secs. 7 (part), 8(a) (part).)
  747-8        Sec. 2304.079.  PUBLIC SALE OR AUCTION OF ACQUIRED PROPERTY.
  747-9  (a)  If the department acquires housing in the enforcement of a
 747-10  lien under this chapter, it shall within six months after the
 747-11  acquisition offer the housing for public sale or auction.
 747-12        (b)  The department must provide notice of the public sale or
 747-13  auction by having a notice published in a newspaper of general
 747-14  circulation in the county in which the property is located.  The
 747-15  notice must be published once a week for three consecutive weeks
 747-16  before the date of the sale or auction and must contain:
 747-17              (1)  a description of the property;
 747-18              (2)  a description of the procedures for submitting
 747-19  competitive bids for the property; and
 747-20              (3)  a statement of the time and location of the sale
 747-21  or auction.
 747-22        (c)  The department may reject any or all bids submitted for
 747-23  the property.  (V.A.C.S. Art. 1269l-5, Sec. 8(b).)
 747-24        Sec. 2304.080.  PRIVATE SALE.  (a)  If a sale of property
 747-25  cannot be made by a public sale or auction as provided by Section
 747-26  2304.079, the department may negotiate with a party for the
 747-27  expeditious sale of the property.  In the negotiations, the
  748-1  department shall give priority to selling the property to a
  748-2  purchaser who will be required to pay ad valorem taxes on the
  748-3  property.
  748-4        (b)  If a sale to that kind of purchaser is not practicable,
  748-5  the department shall attempt to sell the property to a purchaser
  748-6  who is exempt from ad valorem taxes but who will make payments in
  748-7  lieu of taxes on the property.
  748-8        (c)  If neither type of purchaser is available, the
  748-9  department may sell the property to any purchaser.  (V.A.C.S. Art.
 748-10  1269l-5, Sec. 8(c).)
 748-11        Sec. 2304.081.  CONTRACT FOR SERVICING LOAN.  A local
 748-12  government may contract with any entity for the servicing of a
 748-13  housing rehabilitation loan approved by the local government.
 748-14  (V.A.C.S. Art. 1269l-5, Sec. 12(d).)
 748-15        Sec. 2304.082.  AUDIT OF LOANS.  The department shall audit
 748-16  the local administration of housing rehabilitation loans to
 748-17  determine if a good faith effort is being made to comply with the
 748-18  applicable housing rehabilitation plan and the rules adopted by the
 748-19  department.  (V.A.C.S. Art. 1269l-5, Sec. 10(a).)
 748-20          (Sections 2304.083-2304.100 reserved for expansion)
 748-21            SUBCHAPTER E.  HOUSING REHABILITATION CONTRACTS
 748-22        Sec. 2304.101.  STANDARDS FOR CONTRACTORS AND CONTRACTS.  The
 748-23  department shall adopt standards for:
 748-24              (1)  the selection of contractors to perform housing
 748-25  rehabilitation under this chapter;
 748-26              (2)  housing rehabilitation contracts between borrowers
 748-27  and contractors; and
  749-1              (3)  materials and fixtures used in performing housing
  749-2  rehabilitation under this chapter.  (V.A.C.S. Art. 1269l-5, Sec.
  749-3  9(b) (part).)
  749-4        Sec. 2304.102.  LOCAL GOVERNMENT APPROVAL AND SUPERVISION OF
  749-5  CONTRACT.  (a)  A borrower and a contractor may not contract for
  749-6  housing rehabilitation that is to be financed by a housing
  749-7  rehabilitation loan unless the local government responsible for
  749-8  approving the loan approves the proposed contract in accordance
  749-9  with the standards adopted by the department.
 749-10        (b)  The local government shall supervise all work performed
 749-11  under the contract.  The contractor is not entitled to payment
 749-12  until the work has been approved by the local government, and the
 749-13  borrower is not liable to the contractor for any work not approved
 749-14  by the local government.  (V.A.C.S. Art. 1269l-5, Sec. 14(a).)
 749-15        Sec. 2304.103.  ADVERTISING REQUIREMENT FOR CERTAIN
 749-16  CONTRACTS.  A contract for housing rehabilitation that involves the
 749-17  expenditure of more than $3,000 and that is to be financed by loan
 749-18  funds applied by the department may not be made unless advertised
 749-19  in the same way as a contract under Chapter 252, Local Government
 749-20  Code.  (V.A.C.S. Art. 1269l-5, Sec. 14(b) (part).)
 749-21        Sec. 2304.104.  PERFORMANCE AND PAYMENT BONDS.  The
 749-22  provisions of Chapter 2253 relating to performance and payment
 749-23  bonds apply to a construction contract governed by this subchapter.
 749-24  (V.A.C.S. Art. 1269l-5, Sec. 14(b) (part).)
 749-25            CHAPTER 2305.  RESTITUTION FOR OIL OVERCHARGES
 749-26                   SUBCHAPTER A.  GENERAL PROVISIONS
 749-27  Sec. 2305.001.  SHORT TITLE
  750-1  Sec. 2305.002.  DEFINITIONS
  750-2          (Sections 2305.003-2305.010 reserved for expansion)
  750-3                 SUBCHAPTER B.  PROGRAM ADMINISTRATION
  750-4  Sec. 2305.011.  ADMINISTRATION BY GOVERNOR
  750-5  Sec. 2305.012.  STAFF; ASSISTANCE
  750-6  Sec. 2305.013.  REVIEW COMMITTEE
  750-7          (Sections 2305.014-2305.020 reserved for expansion)
  750-8                  SUBCHAPTER C.  FINANCIAL PROVISIONS
  750-9  Sec. 2305.021.  OIL OVERCHARGE ACCOUNT
 750-10  Sec. 2305.022.  USE OF ACCOUNT
 750-11  Sec. 2305.023.  ACCOUNT RECORDS
 750-12  Sec. 2305.024.  INVESTMENT OF MONEY AND DEPOSIT OF INTEREST
 750-13  Sec. 2305.025.  SUBMISSION OF VOUCHER
 750-14  Sec. 2305.026.  EFFECT OF RESTRICTION ON USE OR RECEIPT
 750-15                    OF MONEY
 750-16          (Sections 2305.027-2305.030 reserved for expansion)
 750-17                 SUBCHAPTER D.  DIRECT GRANT PROGRAMS
 750-18  Sec. 2305.031.  DIRECT GRANT PROGRAM
 750-19  Sec. 2305.032.  AUTHORITY OF SUPERVISING STATE AGENCY
 750-20  Sec. 2305.033.  EMERGENCY NUTRITION AND TEMPORARY
 750-21                    EMERGENCY RELIEF PROGRAM
 750-22  Sec. 2305.034.  ENERGY CRISIS PROGRAM
 750-23  Sec. 2305.035.  LOW-INCOME HOME ENERGY ASSISTANCE
 750-24                    PROGRAM
 750-25  Sec. 2305.036.  WEATHERIZATION ASSISTANCE PROGRAM
 750-26  Sec. 2305.037.  NATIVE AMERICAN RESTITUTIONARY PROGRAM
 750-27  Sec. 2305.038.  RESERVOIR CONSERVATION PROGRAM
  751-1  Sec. 2305.039.  INSTITUTIONAL CONSERVATION PROGRAM
  751-2  Sec. 2305.040.  ENERGY EXTENSION SERVICE
  751-3  Sec. 2305.041.  STATE ENERGY CONSERVATION PROGRAM
  751-4          (Sections 2305.042-2305.060 reserved for expansion)
  751-5               SUBCHAPTER E.  COMPETITIVE GRANT PROGRAMS
  751-6  Sec. 2305.061.  COMPETITIVE GRANT PROGRAM
  751-7  Sec. 2305.062.  CONSUMER REPRESENTATION
  751-8  Sec. 2305.063.  PUBLIC-PRIVATE PARTNERSHIP PROGRAM
  751-9  Sec. 2305.064.  HOUSING PARTNERSHIP PROGRAM
 751-10  Sec. 2305.065.  REVOLVING LOAN PROGRAM
 751-11  Sec. 2305.066.  AGRICULTURAL ENERGY CONSERVATION PROGRAM
 751-12  Sec. 2305.067.  ALTERNATIVE ENERGY PROGRAM
 751-13  Sec. 2305.068.  ENERGY RESEARCH AND DEVELOPMENT PROGRAM
 751-14  Sec. 2305.069.  LOCAL GOVERNMENT ENERGY PROGRAM
 751-15  Sec. 2305.070.  TRANSPORTATION ENERGY PROGRAM
 751-16  Sec. 2305.071.  MASS TRANSIT ENERGY PROGRAM
 751-17  Sec. 2305.072.  ENERGY RESEARCH IN APPLICATIONS PROGRAM
 751-18  Sec. 2305.073.  DIESEL FUEL CONSERVATION PROGRAM
 751-19  Sec. 2305.074.  ENERGY RESOURCE OPTIMIZATION PROGRAM
 751-20  Sec. 2305.075.  SMALL HOSPITALS ENERGY MANAGEMENT PROGRAM
 751-21  Sec. 2305.076.  TRAFFIC LIGHT SYNCHRONIZATION PROGRAM
 751-22            CHAPTER 2305.  RESTITUTION FOR OIL OVERCHARGES
 751-23                   SUBCHAPTER A.  GENERAL PROVISIONS
 751-24        Sec. 2305.001.  SHORT TITLE.  This chapter may be cited as
 751-25  the Oil Overcharge Restitutionary Act.  (V.A.C.S.  Art. 4413(56),
 751-26  Sec. 1.)
 751-27        Sec. 2305.002.  DEFINITIONS.  In this chapter:
  752-1              (1)  "Account" means the oil overcharge account.
  752-2              (2)  "Applicable federal guidelines" means federal
  752-3  court judgments or orders, case settlements, laws, regulations, or
  752-4  other requirements or discretionary authority, imposed by the
  752-5  judicial, legislative, or executive branch, that govern or restrict
  752-6  the use of money received by the state because of petroleum
  752-7  overcharge litigation relating to the overpricing of crude oil or
  752-8  refined petroleum products during the 1973-1981 period of mandatory
  752-9  federal price controls.
 752-10              (3)  "Energy office" means the energy office of the
 752-11  governor.
 752-12              (4)  "Supervising state agency" means the state agency,
 752-13  department, commission, or other entity designated by this chapter
 752-14  or by the governor to supervise, manage, or administer a program
 752-15  financed under this chapter.  (V.A.C.S. Art. 4413(56), Secs. 2(1),
 752-16  (2), (5), (6).)
 752-17          (Sections 2305.003-2305.010 reserved for expansion)
 752-18                 SUBCHAPTER B.  PROGRAM ADMINISTRATION
 752-19        Sec. 2305.011.  ADMINISTRATION BY GOVERNOR.  (a)  Subject to
 752-20  Section 2305.013, the governor may:
 752-21              (1)  finance a project under this chapter; and
 752-22              (2)  oversee and monitor the administration of a
 752-23  program prescribed by this chapter.
 752-24        (b)  The governor may establish direct grant programs and
 752-25  competitive grant programs in addition to the programs provided by
 752-26  this chapter.
 752-27        (c)  The governor shall:
  753-1              (1)  determine the supervising state agency for each
  753-2  competitive grant program and for each direct grant program
  753-3  established by the governor;
  753-4              (2)  establish programs and criteria and evaluate a
  753-5  proposal in accordance with applicable federal guidelines; and
  753-6              (3)  send to the appropriate federal entity all
  753-7  information required under applicable federal guidelines.
  753-8        (d)  Criteria established under this section may apply
  753-9  generally to all programs or specifically to one or more programs.
 753-10  (V.A.C.S. Art. 4413(56), Sec. 3.)
 753-11        Sec. 2305.012.  STAFF; ASSISTANCE.  (a)  The energy office
 753-12  shall provide staff to implement and administer this chapter.
 753-13        (b)  The governor may also enlist the assistance of a private
 753-14  entity or a state agency, department, commission, or other entity
 753-15  to:
 753-16              (1)  evaluate or review a proposal;
 753-17              (2)  audit a program participant or a supervising state
 753-18  agency;
 753-19              (3)  perform administrative duties under this chapter;
 753-20  or
 753-21              (4)  develop eligibility or evaluation criteria.
 753-22  (V.A.C.S. Art. 4413(56), Sec. 4.)
 753-23        Sec. 2305.013.  REVIEW COMMITTEE.  (a)  A review committee
 753-24  composed of the lieutenant governor and the speaker of the house of
 753-25  representatives shall review each proposal submitted to the
 753-26  committee by the governor under a direct or competitive grant
 753-27  program.
  754-1        (b)  The governor may not finance a project under a direct or
  754-2  competitive grant program unless the governor submits the project
  754-3  proposal to the review committee and the committee approves the
  754-4  project proposal.  (V.A.C.S. Art. 4413(56), Sec.  5.)
  754-5          (Sections 2305.014-2305.020 reserved for expansion)
  754-6                  SUBCHAPTER C.  FINANCIAL PROVISIONS
  754-7        Sec. 2305.021.  OIL OVERCHARGE ACCOUNT.  (a)  The oil
  754-8  overcharge account is an account in the general revenue fund.
  754-9        (b)  The comptroller shall deposit to the credit of the
 754-10  account any amount received as a result of petroleum overcharge
 754-11  litigation relating to the overpricing of crude oil or refined
 754-12  petroleum products during the 1973-1981 period of mandatory federal
 754-13  price controls.  (V.A.C.S. Art. 4413(56), Sec.  6(a) (part).)
 754-14        Sec. 2305.022.  USE OF ACCOUNT.  Money in the account may be
 754-15  used only by the governor to implement and operate the programs
 754-16  authorized by this chapter.  (V.A.C.S. Art. 4413(56), Sec. 6(b).)
 754-17        Sec. 2305.023.  ACCOUNT RECORDS.  The comptroller shall
 754-18  establish records of the money in the account that are sufficient
 754-19  to identify the source of each particular amount in the account to
 754-20  facilitate a determination of compliance with applicable federal
 754-21  guidelines relating to the use of money derived from each
 754-22  particular source.  (V.A.C.S. Art.  4413(56), Sec. 6(c).)
 754-23        Sec. 2305.024.  INVESTMENT OF MONEY AND DEPOSIT OF INTEREST.
 754-24  (a)  The state treasurer may invest unobligated money in the
 754-25  account in accordance with Subchapter C, Chapter 404.
 754-26        (b)  The state treasurer shall deposit to the credit of the
 754-27  account all interest or other income received from the investment
  755-1  of the money.  (V.A.C.S. Art. 4413(56), Sec. 6(d).)
  755-2        Sec. 2305.025.  SUBMISSION OF VOUCHER.  (a)  The governor
  755-3  shall designate the individuals who are authorized to sign a
  755-4  voucher submitted to the comptroller for approval of payment from
  755-5  the account and notify the comptroller of each designation.
  755-6        (b)  The comptroller shall approve a payment from the account
  755-7  in the manner provided for approval of a payment from an amount
  755-8  appropriated by the legislature.  (V.A.C.S. Art. 4413(56), Sec.
  755-9  6(e).)
 755-10        Sec. 2305.026.  EFFECT OF RESTRICTION ON USE OR RECEIPT OF
 755-11  MONEY.  A restriction or other criterion provided by or under this
 755-12  chapter that relates to the use or receipt of money awarded under
 755-13  this chapter to a supervising state agency, local recipient, or
 755-14  other person applies only to the use or receipt of that money and
 755-15  does not affect the use or receipt of money provided under other
 755-16  law.  (V.A.C.S. Art. 4413(56), Sec. 7(a).)
 755-17          (Sections 2305.027-2305.030 reserved for expansion)
 755-18                 SUBCHAPTER D.  DIRECT GRANT PROGRAMS
 755-19        Sec. 2305.031.  DIRECT GRANT PROGRAM.  The governor may use a
 755-20  direct grant program to finance a project under this chapter that
 755-21  has been approved as a component of a proposal recommended by the
 755-22  program's supervising state agency.  (V.A.C.S. Art. 4413(56), Sec.
 755-23  2(4).)
 755-24        Sec. 2305.032.  AUTHORITY OF SUPERVISING STATE AGENCY.  (a)
 755-25  The supervising state agency of a direct grant program may adopt
 755-26  rules to implement the program, including rules that provide
 755-27  criteria for eligibility.
  756-1        (b)  The rules may not be inconsistent with the criteria:
  756-2              (1)  established by applicable federal guidelines;
  756-3              (2)  prescribed by this chapter; or
  756-4              (3)  adopted by the governor.  (V.A.C.S. Art. 4413(56),
  756-5  Sec. 7(b).)
  756-6        Sec. 2305.033.  EMERGENCY NUTRITION AND TEMPORARY EMERGENCY
  756-7  RELIEF PROGRAM.  (a)  The Texas Department of Housing and Community
  756-8  Affairs is the supervising state agency for the emergency nutrition
  756-9  and temporary emergency relief program established under Chapter
 756-10  34, Human Resources Code.
 756-11        (b)  The department shall provide direct grant money under
 756-12  the program to pay vendors of energy utility services to prevent
 756-13  the interruption or termination of energy utility service for or to
 756-14  restore that service to low-income individuals.
 756-15        (c)  The ultimate beneficiaries of a grant under this section
 756-16  must be low-income individuals in need of emergency assistance.
 756-17  The department shall give priority to assistance for an individual
 756-18  who is recently unemployed and does not qualify for another income
 756-19  assistance program.
 756-20        (d)  The program may not be limited so that an individual is
 756-21  eligible for assistance only if the individual's income is equal to
 756-22  less than 75 percent of the income standard established by
 756-23  applicable federal poverty guidelines.
 756-24        (e)  The department shall allocate grant money for
 756-25  distribution within counties according to the unemployment and
 756-26  poverty statistics for residents of each county.
 756-27        (f)  The department may distribute grant money to a local
  757-1  unit of government or to a nonprofit organization to provide needed
  757-2  services but shall give priority to a county government.
  757-3        (g)  A local unit of government or a nonprofit organization
  757-4  that receives a grant under this section must match the grant with
  757-5  an equal amount of money from another source.  The recipient may
  757-6  not use as matching money any money received under another
  757-7  provision of this chapter.  (V.A.C.S. Art. 4413(56), Sec. 8.)
  757-8        Sec. 2305.034.  ENERGY CRISIS PROGRAM.  (a)  The Texas
  757-9  Department of Housing and Community Affairs is the supervising
 757-10  state agency for the energy crisis program.
 757-11        (b)  The department shall provide direct grant money under
 757-12  the program to pay vendors of utilities, goods, or services related
 757-13  to the procurement of energy for heating or cooling residences.  In
 757-14  addition, the department may issue directly to a consumer a voucher
 757-15  of not more than $150 for each household in a case of undue
 757-16  hardship.
 757-17        (c)  The ultimate beneficiaries of a grant under this section
 757-18  must be individuals who:
 757-19              (1)  are in imminent danger of having utility service
 757-20  terminated;
 757-21              (2)  are experiencing other energy-related and supply
 757-22  shortage emergencies; or
 757-23              (3)  meet applicable federal poverty income guidelines.
 757-24        (d)  The department shall give priority to assistance for an
 757-25  individual who is elderly or has a disability.  (V.A.C.S. Art.
 757-26  4413(56), Sec. 9.)
 757-27        Sec. 2305.035.  LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.
  758-1  (a)  The Texas Department of Housing and Community Affairs is the
  758-2  supervising state agency for the low-income home energy assistance
  758-3  program.
  758-4        (b)  In accordance with the Low-Income Home Energy Assistance
  758-5  Act of 1981 (42 U.S.C. Sec. 8621 et seq.), the department shall
  758-6  provide direct grant money under the program to assist eligible
  758-7  households in meeting home energy costs.
  758-8        (c)  The ultimate beneficiaries of a grant under this section
  758-9  must be households that:
 758-10              (1)  have an income that does not exceed the greater
 758-11  of:
 758-12                    (A)  150 percent of the income level established
 758-13  by applicable federal poverty guidelines; or
 758-14                    (B)  60 percent of the state's median income; or
 758-15              (2)  include a recipient of a federal or state income
 758-16  subsidy, such as food stamps, supplemental security income, aid to
 758-17  families with dependent children, or income-based veterans'
 758-18  benefits.
 758-19        (d)  The department may make a grant payment directly to an
 758-20  eligible household or to an energy supplier on behalf of an
 758-21  eligible household.  (V.A.C.S. Art. 4413(56), Sec. 10.)
 758-22        Sec. 2305.036.  WEATHERIZATION ASSISTANCE PROGRAM.  (a)  The
 758-23  Texas Department of Housing and Community Affairs is the
 758-24  supervising state agency for the weatherization assistance program.
 758-25        (b)  In accordance with Part A, Energy Conservation in
 758-26  Existing Buildings Act of 1976 (42 U.S.C. Sec. 6861 et seq.), the
 758-27  department shall provide direct grant money under the program to
  759-1  pay for:
  759-2              (1)  the installation of weatherization materials under
  759-3  the low-income weatherization assistance program, including the
  759-4  installation of attic insulation, caulking, weatherstripping, storm
  759-5  windows, and other materials designed to increase furnace
  759-6  efficiency; and
  759-7              (2)  enhanced weatherization of dwellings occupied by
  759-8  low-income individuals, including:
  759-9                    (A)  repairing roofs, walls, floors, and other
 759-10  parts of a housing unit if necessary to complete weatherization
 759-11  improvements;
 759-12                    (B)  providing additional weatherization
 759-13  assistance on individual housing units; and
 759-14                    (C)  tuning-up, repairing, or replacing home
 759-15  heating and cooling systems.
 759-16        (c)  The ultimate beneficiaries of a grant under this section
 759-17  must be low-income individuals.  The department shall give priority
 759-18  to assistance for an individual who is elderly or has a disability.
 759-19        (d)  A community action agency or private contractor may
 759-20  perform a weatherization assistance project.
 759-21        (e)  The maximum expenditure for a dwelling under Subdivision
 759-22  (b)(1) may not exceed applicable federal guidelines for materials
 759-23  and related program costs.  The maximum expenditure for a dwelling
 759-24  under Subdivision (b)(2) may not exceed by more than $1,500 the
 759-25  current weatherization assistance program limits for such repairs.
 759-26  (V.A.C.S. Art. 4413(56), Sec. 11.)
 759-27        Sec. 2305.037.  NATIVE AMERICAN RESTITUTIONARY PROGRAM.  (a)
  760-1  A supervising state agency shall administer the Native American
  760-2  restitutionary program.
  760-3        (b)  The agency shall distribute direct grant money under the
  760-4  program to provide energy-related assistance to Native Americans of
  760-5  this state.  (V.A.C.S. Art. 4413(56), Sec. 12.)
  760-6        Sec. 2305.038.  RESERVOIR CONSERVATION PROGRAM.  (a)  The
  760-7  Railroad Commission of Texas is the supervising state agency for
  760-8  the reservoir conservation program.
  760-9        (b)  The commission shall use direct grant money under the
 760-10  program to isolate productive hydrocarbon-yielding zones by
 760-11  plugging or other remediation of inactive wells in fields with
 760-12  enhanced recovery potential.
 760-13        (c)  The commission shall design the program to prevent the
 760-14  waste of energy and to conserve energy for future use.  (V.A.C.S.
 760-15  Art. 4413(56), Sec. 13.)
 760-16        Sec. 2305.039.  INSTITUTIONAL CONSERVATION PROGRAM.  (a)  The
 760-17  energy office is the supervising state agency for the institutional
 760-18  conservation program.
 760-19        (b)  In accordance with Part E, Energy Policy and
 760-20  Conservation Act (42 U.S.C. Sec. 6371 et seq.), the office shall
 760-21  distribute direct grant money under the program to provide 50
 760-22  percent of the cost of projects to assist public and nonprofit
 760-23  schools, colleges, hospitals, and public care facilities to:
 760-24              (1)  conduct technical assistance studies to identify
 760-25  potential building energy conservation opportunities; and
 760-26              (2)  install cost-effective energy conservation
 760-27  measures.  (V.A.C.S.  Art. 4413(56), Sec. 14.)
  761-1        Sec. 2305.040.  ENERGY EXTENSION SERVICE.  (a)  The energy
  761-2  office is the supervising state agency for the energy extension
  761-3  service.
  761-4        (b)  In accordance with the National Energy Extension Service
  761-5  Act (42 U.S.C.  Sec. 7001 et seq.), the office shall use direct
  761-6  grant money under the program to finance projects designed to
  761-7  assist residential, agricultural, and commercial small energy
  761-8  consumers in learning to conserve energy and to use renewable
  761-9  resource options.  The projects may include consumer information
 761-10  and technical assistance.
 761-11        (c)  The office may require a grant recipient to match the
 761-12  amount of the grant.  (V.A.C.S. Art. 4413(56), Sec. 15.)
 761-13        Sec. 2305.041.  STATE ENERGY CONSERVATION PROGRAM.  (a)  The
 761-14  energy office is the supervising state agency for the state energy
 761-15  conservation program.
 761-16        (b)  In accordance with Part B, Energy Policy and
 761-17  Conservation Act (42 U.S.C. Sec. 6321 et seq.), the office, under
 761-18  the program, shall:
 761-19              (1)  distribute direct grant money for projects that
 761-20  save measurable quantities of energy; and
 761-21              (2)  finance the operation of the Energy Management
 761-22  Center for Texas Schools, in accordance with Section 88A, Public
 761-23  Utility Regulatory Act (Article 1446c, Vernon's Texas Civil
 761-24  Statutes).
 761-25        (c)  A project under Subsection (b)(1) must be implemented
 761-26  primarily by institutions or private sector energy consumers.
 761-27        (d)  A proposal under Subsection (b)(1) must:
  762-1              (1)  promote the conservation of energy; and
  762-2              (2)  improve the efficient use of energy through
  762-3  activities that result in quantifiable energy savings, including:
  762-4                    (A)  energy audits of buildings;
  762-5                    (B)  technical assistance in reducing energy
  762-6  bills; and
  762-7                    (C)  providing training to building operators and
  762-8  fiscal officers on various energy issues such as utility bill
  762-9  analysis and energy management techniques.
 762-10        (e)  A public school may not receive a grant or the benefits
 762-11  of a grant  under Subsection (b)(2) unless the governor approves
 762-12  the school's energy conservation plan.  (V.A.C.S. Art. 4413(56),
 762-13  Sec. 16.)
 762-14          (Sections 2305.042-2305.060 reserved for expansion)
 762-15               SUBCHAPTER E.  COMPETITIVE GRANT PROGRAMS
 762-16        Sec. 2305.061.  COMPETITIVE GRANT PROGRAM.  The governor may
 762-17  use a competitive grant program to finance a project under this
 762-18  chapter that has been approved from a group of competing proposals
 762-19  submitted by public or private applicants.  (V.A.C.S.
 762-20  Art. 4413(56), Sec. 2(3).)
 762-21        Sec. 2305.062.  CONSUMER REPRESENTATION.  (a)  The governor
 762-22  shall award one or more competitive grants to support regulatory
 762-23  intervention activities that promote the adoption and expansion by
 762-24  energy utilities of consumer-oriented energy conservation programs.
 762-25        (b)  Activities that may be funded under this section include
 762-26  giving technical and legal expert testimony, providing materials,
 762-27  and making studies used to intervene and advise in various cases
  763-1  that are relevant to energy costs for low-income residential, other
  763-2  residential, or small commercial utility ratepayers.
  763-3        (c)  A grant recipient must design funded regulatory
  763-4  intervention activities to:
  763-5              (1)  promote conservation and energy efficiency;
  763-6              (2)  provide that energy options that have the least
  763-7  cost are pursued; and
  763-8              (3)  assist in the reduction of energy costs.
  763-9  (V.A.C.S. Art. 4413(56), Sec. 17.)
 763-10        Sec. 2305.063.  PUBLIC-PRIVATE PARTNERSHIP PROGRAM.  (a)  The
 763-11  governor may approve and finance under the public-private
 763-12  partnership program one or more energy-related projects, including
 763-13  energy-related demonstration projects.
 763-14        (b)  The ultimate beneficiaries of a competitive grant under
 763-15  this section may include low-income or moderate-income consumers.
 763-16        (c)  A recipient of a grant under this section may include a
 763-17  community foundation affiliated with the Communities Foundation,
 763-18  Inc., of Texas.
 763-19        (d)  The governor may require grant recipients to match from
 763-20  private sources at least the total amount of the grants awarded
 763-21  under this section during a particular fiscal period.  (V.A.C.S.
 763-22  Art. 4413(56), Sec. 18.)
 763-23        Sec. 2305.064.  HOUSING PARTNERSHIP PROGRAM.  (a)  The
 763-24  supervising state agency of the housing partnership program shall
 763-25  distribute competitive grant money under the program for
 763-26  residential energy conservation projects that reduce the amount of
 763-27  energy consumed for space heating, space cooling, water heating,
  764-1  refrigeration, or other residential energy uses.
  764-2        (b)  Projects funded under this section may include:
  764-3              (1)  demonstration of commercially available
  764-4  cost-effective energy-saving techniques and technologies;
  764-5              (2)  training and technical assistance in energy
  764-6  efficient construction or remodeling;
  764-7              (3)  providing information to occupants; and
  764-8              (4)  financing incentives for energy-saving designs or
  764-9  improvements.
 764-10        (c)  The ultimate beneficiaries of a grant under this section
 764-11  must be low-income or moderate-income consumers.
 764-12        (d)  A local government, public housing agency, or other
 764-13  public or nonprofit organization serving the housing needs of low
 764-14  and moderate income individuals may apply for a grant under this
 764-15  section.
 764-16        (e)  The supervising state agency may require grant
 764-17  recipients to match from other sources at least the total amount of
 764-18  the grants awarded under this section.  (V.A.C.S. Art. 4413(56),
 764-19  Sec. 19.)
 764-20        Sec. 2305.065.  REVOLVING LOAN PROGRAM.  (a)  The governor
 764-21  under the revolving loan program may approve and finance
 764-22  demonstration projects that provide loans to eligible applicants
 764-23  for energy-saving capital improvements.
 764-24        (b)  The supervising state agency of the program may
 764-25  distribute competitive grant money under the program to finance
 764-26  energy conservation projects approved by the governor for the
 764-27  benefit of:
  765-1              (1)  a state agency or institution of higher education;
  765-2              (2)  a public school;
  765-3              (3)  a political subdivision of the state;
  765-4              (4)  a transportation provider;
  765-5              (5)  an agricultural producer;
  765-6              (6)  a small business; and
  765-7              (7)  an individual of low or moderate income.
  765-8        (c)  The governor shall determine the terms under which a
  765-9  loan may be made under this section and shall set the interest rate
 765-10  for a loan at a low rate that the governor determines is sufficient
 765-11  to recover the cost of administering the loan program.
 765-12        (d)  A person who receives a loan under this section shall
 765-13  repay the principal of and interest on the loan from the value of
 765-14  energy savings that accrues as the result of the energy
 765-15  conservation measure implemented with the borrowed money.
 765-16        (e)  A state agency or institution that receives a loan under
 765-17  this section shall repay the loan from the amount budgeted for the
 765-18  agency's or institution's energy costs.  Until the loan is repaid,
 765-19  the legislature may not reduce the amount budgeted for those energy
 765-20  costs to reflect the value of energy savings that accrues as a
 765-21  result of the energy conservation measure implemented with the
 765-22  borrowed money.  (V.A.C.S. Art. 4413(56), Sec. 20.)
 765-23        Sec. 2305.066.  AGRICULTURAL ENERGY CONSERVATION PROGRAM.
 765-24  (a)  The supervising state agency of the agricultural energy
 765-25  conservation program shall distribute competitive grant money under
 765-26  the program for energy projects designed to benefit agriculture,
 765-27  including:
  766-1              (1)  agricultural demonstration projects;
  766-2              (2)  energy audits of agricultural or food processing
  766-3  facilities; and
  766-4              (3)  the provision of agricultural information and
  766-5  technical assistance.
  766-6        (b)  The governor may fund a selected proposal without a
  766-7  matching requirement or may require a grant recipient to match any
  766-8  grant received under this section.  (V.A.C.S. Art. 4413(56), Sec.
  766-9  21.)
 766-10        Sec. 2305.067.  ALTERNATIVE ENERGY PROGRAM.  (a)  The
 766-11  supervising state agency of the alternative energy program shall
 766-12  distribute competitive grant money under the program for
 766-13  demonstration projects that develop alternative energy resources,
 766-14  including:
 766-15              (1)  photovoltaic, biomass, wind, and solar
 766-16  applications; and
 766-17              (2)  other appropriate alternative energy applications.
 766-18        (b)  The governor may require a grant recipient to match a
 766-19  grant in a ratio determined by the governor.  (V.A.C.S. Art.
 766-20  4413(56), Sec. 22.)
 766-21        Sec. 2305.068.  ENERGY RESEARCH AND DEVELOPMENT PROGRAM.  (a)
 766-22  The governor may use competitive grant money to finance projects
 766-23  under the energy research and development program that supplement
 766-24  or initiate research by public or private institutions on issues
 766-25  related to energy.
 766-26        (b)  The governor may require a grant recipient to match a
 766-27  grant in a ratio determined by the governor.  (V.A.C.S. Art.
  767-1  4413(56), Sec. 23.)
  767-2        Sec. 2305.069.  LOCAL GOVERNMENT ENERGY PROGRAM.  (a)  The
  767-3  supervising state agency of the local government energy program
  767-4  shall distribute competitive grant money under the program for
  767-5  energy-saving projects that benefit local governments in this
  767-6  state.
  767-7        (b)  Proposals funded under this section may include:
  767-8              (1)  energy audits of a local government facility;
  767-9              (2)  traffic light synchronization;
 767-10              (3)  fleet management; and
 767-11              (4)  fuel-efficient transit routing.
 767-12        (c)  The governor may require a grant recipient to match a
 767-13  grant in a ratio determined by the governor.  (V.A.C.S. Art.
 767-14  4413(56), Sec. 24.)
 767-15        Sec. 2305.070.  TRANSPORTATION ENERGY PROGRAM.  (a)  The
 767-16  supervising state agency of the transportation energy program shall
 767-17  distribute competitive grant money under the program for projects
 767-18  relating to mass transit and other transportation services.
 767-19        (b)  A project may:
 767-20              (1)  assist a service provider in providing services
 767-21  such as:
 767-22                    (A)  traffic light synchronization;
 767-23                    (B)  fleet management;
 767-24                    (C)  computerized transit routing that is energy
 767-25  efficient;
 767-26                    (D)  car-care clinics;
 767-27                    (E)  vanpooling or ridesharing efforts;
  768-1                    (F)  public education related to mass transit;
  768-2                    (G)  driver training in energy conservation
  768-3  awareness; and
  768-4                    (H)  transportation services for the elderly or
  768-5  persons with a disability; and
  768-6              (2)  include studies to improve existing and plan for
  768-7  future transportation systems in this state.
  768-8        (c)  The governor may require a grant recipient to match a
  768-9  grant in a ratio determined by the governor.  (V.A.C.S. Art.
 768-10  4413(56), Sec. 25.)
 768-11        Sec. 2305.071.  MASS TRANSIT ENERGY PROGRAM.  (a)  The
 768-12  supervising state agency of the mass transit energy program shall
 768-13  distribute competitive grant money under the program for projects
 768-14  that relate to mass transit and are approved by the governor.
 768-15        (b)  The supervising state agency may allocate grant money
 768-16  among eligible applicants according to the following formula:
 768-17              (1)  one-third to eligible applicants created under:
 768-18                    (A)  Chapter 141, Acts of the 63rd Legislature,
 768-19  Regular Session, 1973 (Article 1118x, Vernon's Texas Civil
 768-20  Statutes);
 768-21                    (B)  Chapter 683, Acts of the 66th Legislature,
 768-22  Regular Session, 1979 (Article 1118y, Vernon's Texas Civil
 768-23  Statutes); or
 768-24                    (C)  Article 1118z, Revised Statutes;
 768-25              (2)  one-third to eligible applicants that are in
 768-26  urbanized areas with a population of more than 50,000 and that were
 768-27  not created under a law specified in Subdivision (1); and
  769-1              (3)  one-third to eligible applicants in rural areas of
  769-2  the state and in urban areas with a population of 50,000 or less.
  769-3        (c)  To the greatest extent practicable, a grant recipient
  769-4  shall use money received under this section to obtain other grants.
  769-5        (d)  In this section, "eligible applicant" means a:
  769-6              (1)  municipality;
  769-7              (2)  metropolitan or regional authority; or
  769-8              (3)  local governmental body or other entity that
  769-9  receives federal public transportation money through the Texas
 769-10  Department of Transportation or other agency that administers
 769-11  federal public transportation money.  (V.A.C.S. Art.  4413(56),
 769-12  Sec. 26.)
 769-13        Sec. 2305.072.  ENERGY RESEARCH IN APPLICATIONS PROGRAM.  (a)
 769-14  The supervising state agency of the energy research in applications
 769-15  program shall distribute competitive grant money under the program
 769-16  for projects that are conducted by institutions of higher education
 769-17  and provide advanced research in energy-related subjects.
 769-18        (b)  In addition to the review required under this chapter, a
 769-19  proposal submitted under this section must be submitted to the
 769-20  advisory committee appointed under Section 142.003, Education Code,
 769-21  for a merit review.
 769-22        (c)  In this section, "institution of higher education" has
 769-23  the meaning assigned by Section 61.003, Education Code.  (V.A.C.S.
 769-24  Art. 4413(56), Sec. 27.)
 769-25        Sec. 2305.073.  DIESEL FUEL CONSERVATION PROGRAM.  (a)  The
 769-26  supervising state agency of the diesel fuel conservation program
 769-27  shall implement projects that improve the fuel efficiency of
  770-1  diesel-powered vehicles and equipment.  The supervising state
  770-2  agency shall use competitive grant money under the program to
  770-3  benefit diesel fuel consumers by identifying and implementing
  770-4  measures to save diesel fuel.
  770-5        (b)  The supervising state agency may fund a project that:
  770-6              (1)  provides training and technical assistance; or
  770-7              (2)  demonstrates and implements commercially available
  770-8  technologies that improve the fuel efficiency of diesel-powered
  770-9  vehicles and equipment, including trucks, boats, and tractors.
 770-10  (V.A.C.S.  Art. 4413(56), Sec. 28.)
 770-11        Sec. 2305.074.  ENERGY RESOURCE OPTIMIZATION PROGRAM.  The
 770-12  supervising state agency of the energy resource optimization
 770-13  program shall distribute competitive grant money under the program
 770-14  to initiate or supplement research programs designed to recover
 770-15  additional oil and gas from reservoirs in this state, with emphasis
 770-16  on recovery from state and other public lands.  (V.A.C.S. Art.
 770-17  4413(56), Sec. 29.)
 770-18        Sec. 2305.075.  SMALL HOSPITALS ENERGY MANAGEMENT PROGRAM.
 770-19  (a)  The energy office is the supervising state agency for the
 770-20  small hospitals energy management program.
 770-21        (b)  The energy office shall use competitive grant money
 770-22  under the program to finance projects designed to assist small
 770-23  hospitals in controlling energy costs.
 770-24        (c)  Projects funded under this section may include:
 770-25              (1)  training for hospital personnel;
 770-26              (2)  technical assistance in establishing an energy
 770-27  management program;
  771-1              (3)  facility energy audits; and
  771-2              (4)  follow-up assistance in maintaining an energy
  771-3  management program.  (V.A.C.S. Art. 4413(56), Sec. 30.)
  771-4        Sec. 2305.076.  TRAFFIC LIGHT SYNCHRONIZATION PROGRAM.  (a)
  771-5  The Texas Department of Transportation is the supervising state
  771-6  agency for the traffic light synchronization program.  The
  771-7  department shall provide assistance under the program to local
  771-8  governments throughout the state in an effort to save motor fuels
  771-9  through optimizing timing plans for traffic signals.
 771-10        (b)  The department shall award competitive grant money to
 771-11  local jurisdictions to pay the costs of training, engineering
 771-12  services, traffic studies, and other activities directly related to
 771-13  and undertaken as part of a local retiming project for traffic
 771-14  signals.
 771-15        (c)  The governor may require a grant recipient to match a
 771-16  grant in a ratio determined by the governor.  (V.A.C.S. Art.
 771-17  4413(56), Sec. 31.)
 771-18       CHAPTER 2306.  TEXAS DEPARTMENT OF HOUSING AND COMMUNITY
 771-19                                AFFAIRS
 771-20                   SUBCHAPTER A.  GENERAL PROVISIONS
 771-21  Sec. 2306.001.  PURPOSES
 771-22  Sec. 2306.002.  POLICY
 771-23  Sec. 2306.003.  PUBLIC PURPOSE
 771-24  Sec. 2306.004.  DEFINITIONS
 771-25  Sec. 2306.005.  REFERENCES TO FORMER LAW
 771-26  Sec. 2306.006.  RULES OF ABOLISHED AGENCIES
 771-27  Sec. 2306.007.  ESTABLISHING ECONOMICALLY DEPRESSED OR
  772-1                    BLIGHTED AREAS
  772-2          (Sections 2306.008-2306.020 reserved for expansion)
  772-3             SUBCHAPTER B.  GOVERNING BOARD AND DEPARTMENT
  772-4  Sec. 2306.021.  DEPARTMENT DIVISIONS
  772-5  Sec. 2306.022.  APPLICATION OF SUNSET ACT
  772-6  Sec. 2306.023.  SEPARATION OF DIVISIONS
  772-7  Sec. 2306.024.  BOARD MEMBERS:  APPOINTMENT AND COMPOSITION
  772-8  Sec. 2306.025.  TERMS OF BOARD MEMBERS
  772-9  Sec. 2306.026.  BOARD PLACES
 772-10  Sec. 2306.027.  ELIGIBILITY
 772-11  Sec. 2306.028.  CONFLICT OF INTEREST
 772-12  Sec. 2306.029.  SURETY BONDS
 772-13  Sec. 2306.030.  PRESIDING OFFICER; OTHER OFFICERS
 772-14  Sec. 2306.031.  MEMBERS' COMPENSATION
 772-15  Sec. 2306.032.  BOARD MEETINGS
 772-16  Sec. 2306.033.  REMOVAL OF MEMBERS
 772-17  Sec. 2306.034.  DISQUALIFICATION OF MEMBERS AND CERTAIN
 772-18                    EMPLOYEES
 772-19  Sec. 2306.035.  LOBBYIST RESTRICTION
 772-20  Sec. 2306.036.  DIRECTOR:  APPOINTMENT; TERM
 772-21  Sec. 2306.037.  DIRECTOR'S COMPENSATION
 772-22  Sec. 2306.038.  ACTING DIRECTOR
 772-23          (Sections 2306.039-2306.050 reserved for expansion)
 772-24                   SUBCHAPTER C.  POWERS AND DUTIES
 772-25  Sec. 2306.051.  BOARD DUTIES
 772-26  Sec. 2306.052.  DIRECTOR'S POWERS AND DUTIES
 772-27  Sec. 2306.053.  DEPARTMENT POWERS AND DUTIES
  773-1          (Sections 2306.054-2306.060 reserved for expansion)
  773-2           SUBCHAPTER D.  GENERAL ADMINISTRATIVE PROVISIONS
  773-3  Sec. 2306.061.  INFORMATION ON QUALIFICATIONS AND CONDUCT
  773-4  Sec. 2306.062.  CAREER LADDER
  773-5  Sec. 2306.063.  PERFORMANCE EVALUATIONS
  773-6  Sec. 2306.064.  EQUAL EMPLOYMENT OPPORTUNITIES
  773-7  Sec. 2306.065.  DISCRIMINATION PROHIBITED
  773-8  Sec. 2306.066.  INFORMATION AND COMPLAINTS
  773-9  Sec. 2306.067.  LOANED EMPLOYEES
 773-10  Sec. 2306.068.  INTERAGENCY COOPERATION
 773-11  Sec. 2306.069.  OUTSIDE LEGAL COUNSEL
 773-12  Sec. 2306.070.  BUDGET
 773-13  Sec. 2306.071.  FUNDS
 773-14  Sec. 2306.072.  ANNUAL REPORT
 773-15  Sec. 2306.073.  INTERNAL AUDIT
 773-16  Sec. 2306.074.  AUDIT
 773-17  Sec. 2306.075.  TAX EXEMPTION
 773-18          (Sections 2306.076-2306.090 reserved for expansion)
 773-19               SUBCHAPTER E.  COMMUNITY AFFAIRS DIVISION
 773-20  Sec. 2306.091.  GENERAL FUNCTIONS
 773-21  Sec. 2306.092.  DUTIES
 773-22  Sec. 2306.093.  HOUSING ASSISTANCE GOAL
 773-23  Sec. 2306.094.  SPECIAL ADVISORY COUNCILS
 773-24  Sec. 2306.095.  TRANSFERS FROM GOVERNOR
 773-25  Sec. 2306.096.  MULTIPURPOSE HUMAN RESOURCE CENTERS
 773-26  Sec. 2306.097.  ENERGY SERVICES PROGRAM FOR LOW-INCOME
 773-27                    INDIVIDUALS
  774-1  Sec. 2306.098.  ADMINISTRATION OF COMMUNITY DEVELOPMENT BLOCK
  774-2                    GRANT PROGRAM; ALLOCATION OF FUNDS
  774-3  Sec. 2306.099.  TRANSFER OF FEDERAL FUNDS
  774-4  Sec. 2306.100.  STATE COMMUNITY DEVELOPMENT REVIEW
  774-5                    COMMITTEE
  774-6          (Sections 2306.101-2306.110 reserved for expansion)
  774-7     SUBCHAPTER F.  HOUSING FINANCE DIVISION:  GENERAL PROVISIONS
  774-8  Sec. 2306.111.  HOUSING ASSISTANCE GOAL
  774-9  Sec. 2306.112.  PREPARATION AND CONTENT OF ANNUAL BUDGET
 774-10  Sec. 2306.113.  BOARD CONSIDERATION OF ANNUAL BUDGET
 774-11  Sec. 2306.114.  FILING OF ANNUAL BUDGET
 774-12  Sec. 2306.115.  FAILURE TO ADOPT ANNUAL BUDGET
 774-13  Sec. 2306.116.  AMENDED ANNUAL BUDGET
 774-14  Sec. 2306.117.  PAYMENT OF EXPENSES; INDEBTEDNESS
 774-15  Sec. 2306.118.  DEPOSIT OF FUNDS WITH TEXAS TREASURY
 774-16                    SAFEKEEPING TRUST COMPANY
 774-17  Sec. 2306.119.  SELECTION OF DEPOSITORY FOR OPERATING FUNDS
 774-18  Sec. 2306.120.  SELECTION OF DEPOSITORY UNDER COVENANTS OF
 774-19                    BONDS OR TRUST INDENTURES
 774-20  Sec. 2306.121.  RECORDS
 774-21  Sec. 2306.122.  ANNUAL REPORT
 774-22  Sec. 2306.123.  AREA MEDIAN INCOME
 774-23  Sec. 2306.124.  RULES REGARDING HOUSING DEVELOPMENTS
 774-24  Sec. 2306.125.  COURT ACTIONS
 774-25  Sec. 2306.126.  EXEMPTION FROM PROPERTY TAX
 774-26          (Sections 2306.127-2306.140 reserved for expansion)
 774-27     SUBCHAPTER G.  HOUSING FINANCE DIVISION:  GENERAL POWERS AND
  775-1                            DUTIES OF BOARD
  775-2  Sec. 2306.141.  RULES
  775-3  Sec. 2306.142.  AUTHORIZATION OF BONDS
  775-4  Sec. 2306.143.  ANNUAL REPORT
  775-5  Sec. 2306.144.  FEES FOR SERVICES AND FACILITIES;
  775-6                    PAYMENT OF DEPARTMENT OBLIGATIONS
  775-7                    AND EXPENSES
  775-8  Sec. 2306.145.  LOAN PROCEDURES
  775-9  Sec. 2306.146.  INTEREST RATES AND AMORTIZATION SCHEDULES
 775-10  Sec. 2306.147.  FEES AND PENALTIES
 775-11  Sec. 2306.148.  UNDERWRITING STANDARDS
 775-12  Sec. 2306.149.  APPROVED MORTGAGE LENDERS
 775-13  Sec. 2306.150.  PROPERTY STANDARDS
 775-14  Sec. 2306.151.  TARGET STRATEGY FOR BOND PROCEEDS
 775-15  Sec. 2306.152.  ELIGIBILITY CRITERIA
 775-16          (Sections 2306.153-2306.170 reserved for expansion)
 775-17     SUBCHAPTER H.  HOUSING FINANCE DIVISION:  GENERAL POWERS AND
 775-18                         DUTIES OF DEPARTMENT
 775-19  Sec. 2306.171.  GENERAL DUTIES OF DEPARTMENT RELATING TO
 775-20                    PURPOSES OF HOUSING FINANCE DIVISION
 775-21  Sec. 2306.172.  ACQUISITION AND USE OF MONEY; DEPOSITORIES
 775-22  Sec. 2306.173.  INVESTMENTS
 775-23  Sec. 2306.174.  ACQUISITION AND DISPOSITION OF PROPERTY
 775-24  Sec. 2306.175.  TRANSFER AND DISPOSITION OF PROPERTY;
 775-25                    MANNER OF SALE
 775-26  Sec. 2306.176.  FEES
 775-27  Sec. 2306.177.  HEARINGS
  776-1  Sec. 2306.178.  INSURANCE
  776-2  Sec. 2306.179.  INVESTIGATIONS
  776-3  Sec. 2306.180.  ENCOURAGING HOME OWNERSHIP
  776-4  Sec. 2306.181.  TARGETING BOND PROCEEDS
  776-5  Sec. 2306.182.  LOANS TO LENDERS
  776-6  Sec. 2306.183.  NEEDS OF QUALIFYING INDIVIDUALS AND FAMILIES
  776-7                    IN RURAL AREAS AND SMALL MUNICIPALITIES
  776-8          (Sections 2306.184-2306.200 reserved for expansion)
  776-9            SUBCHAPTER I.  HOUSING FINANCE DIVISION:  FUNDS
 776-10  Sec. 2306.201.  HOUSING TRUST FUND
 776-11  Sec. 2306.202.  USE OF HOUSING TRUST FUND
 776-12  Sec. 2306.203.  RULES REGARDING ADMINISTRATION OF HOUSING
 776-13                    TRUST FUND
 776-14  Sec. 2306.204.  INDEPENDENT AUDIT OF HOUSING TRUST FUND
 776-15  Sec. 2306.205.  TRANSFER OF MONEY TO HOUSING TRUST FUND
 776-16  Sec. 2306.206.  HOUSING TRUST FUND NOT SUBJECT TO TEXAS TRUST
 776-17                    CODE
 776-18  Sec. 2306.207.  RESERVE FUND
 776-19          (Sections 2306.208-2306.220 reserved for expansion)
 776-20  SUBCHAPTER J.  HOUSING FINANCE DIVISION:  LOAN TERMS AND CONDITIONS
 776-21  Sec. 2306.221.  HOUSING DEVELOPMENT LOANS
 776-22  Sec. 2306.222.  CONTRACTS AND AGREEMENTS REGARDING HOUSING
 776-23                    DEVELOPMENTS
 776-24  Sec. 2306.223.  CRITERIA FOR FINANCING HOUSING DEVELOPMENT
 776-25                    OF HOUSING SPONSOR
 776-26  Sec. 2306.224.  LOAN TERMS AND CONDITIONS
 776-27  Sec. 2306.225.  RATIO OF LOAN TO DEVELOPMENT COST; AMORTIZATION
  777-1                    PERIOD
  777-2  Sec. 2306.226.  INTEREST RATES
  777-3  Sec. 2306.227.  PREPAYMENT OF MORTGAGE LOANS
  777-4  Sec. 2306.228.  LOAN FEES
  777-5  Sec. 2306.229.  DOCUMENTS SUPPORTING MORTGAGE LOANS
  777-6  Sec. 2306.230.  AGREEMENTS REGARDING CERTAIN LIMITATIONS ON
  777-7                    HOUSING SPONSORS
  777-8  Sec. 2306.231.  LOAN CONDITIONS RELATING TO DEPARTMENT
  777-9                    POWERS
 777-10  Sec. 2306.232.  TEXAS HOUSING AGENCY LOAN OR GUARANTEE
 777-11          (Sections 2306.233-2306.250 reserved for expansion)
 777-12      SUBCHAPTER K.  HOUSING FINANCE DIVISION:  HOUSING PROGRAMS
 777-13  Sec. 2306.251.  PROPERTY OWNERSHIP PROGRAM
 777-14  Sec. 2306.252.  LOW AND VERY LOW INCOME HOUSING RESOURCE
 777-15                    CENTER
 777-16          (Sections 2306.253-2306.260 reserved for expansion)
 777-17    SUBCHAPTER L.  HOUSING FINANCE DIVISION:  REGULATION OF HOUSING
 777-18                               SPONSORS
 777-19  Sec. 2306.261.  SUPERVISING HOUSING SPONSORS
 777-20  Sec. 2306.262.  UNIFORM SYSTEMS OF ACCOUNTS AND RECORDS
 777-21  Sec. 2306.263.  REPORTING
 777-22  Sec. 2306.264.  INSPECTIONS AND EXAMINATIONS
 777-23  Sec. 2306.265.  OPERATION, MAINTENANCE, AND REPAIR
 777-24  Sec. 2306.266.  FEES RELATING TO REGULATION
 777-25  Sec. 2306.267.  COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
 777-26                    CONTRACT TERMS
 777-27  Sec. 2306.268.  RENTS AND CHARGES
  778-1  Sec. 2306.269.  TENANT AND MANAGER SELECTION
  778-2  Sec. 2306.270.  REGULATION OF RETIREMENT OF CAPITAL INVESTMENT
  778-3                    OR REDEMPTION OF STOCK
  778-4  Sec. 2306.271.  COST CONTROLS
  778-5  Sec. 2306.272.  HOUSING SPONSOR INVESTMENTS
  778-6  Sec. 2306.273.  LIMITATION ON APPLICATION OF CERTAIN
  778-7                    PROVISIONS OF SUBCHAPTER
  778-8          (Sections 2306.274-2306.290 reserved for expansion)
  778-9    SUBCHAPTER M.  HOUSING FINANCE DIVISION:  PURCHASE AND SALE OF
 778-10                            MORTGAGE LOANS
 778-11  Sec. 2306.291.  PURCHASE AND SALE OF MORTGAGE LOANS
 778-12  Sec. 2306.292.  ELIGIBILITY OF MORTGAGE LOANS FOR PURCHASE
 778-13  Sec. 2306.293.  FEDERALLY ASSISTED MORTGAGE LOANS
 778-14  Sec. 2306.294.  MORTGAGE LOAN PURCHASE PRICE
 778-15  Sec. 2306.295.  RULES GOVERNING PURCHASE AND SALE OF MORTGAGE
 778-16                    LOANS
 778-17  Sec. 2306.296.  REVIEW AND SUBSTITUTION OF PURCHASED MORTGAGE
 778-18                    LOANS
 778-19  Sec. 2306.297.  APPLICATION OF PROVISIONS RELATING TO LOAN
 778-20                    TERMS AND CONDITIONS
 778-21          (Sections 2306.298-2306.310 reserved for expansion)
 778-22         SUBCHAPTER N.  HOUSING FINANCE DIVISION:  TENANTS OF
 778-23                         HOUSING DEVELOPMENTS
 778-24  Sec. 2306.311.  ADMISSION TO HOUSING DEVELOPMENTS
 778-25  Sec. 2306.312.  EXAMINATION OF TENANT INCOME
 778-26  Sec. 2306.313.  TERMINATION OF TENANCY
 778-27  Sec. 2306.314.  CONTINUED OCCUPANCY ON PAYMENT OF SURCHARGE
  779-1  Sec. 2306.315.  DISCHARGE FROM LIABILITY; REIMBURSEMENT
  779-2  Sec. 2306.316.  LIMITATION ON APPLICATION OF SUBCHAPTER
  779-3          (Sections 2306.317-2306.330 reserved for expansion)
  779-4   SUBCHAPTER O.  HOUSING FINANCE DIVISION:  REGULATION OF MORTGAGE
  779-5                  LENDERS, SERVICERS, AND CONTRACTORS
  779-6  Sec. 2306.331.  MORTGAGE LENDER SELECTION
  779-7  Sec. 2306.332.  MONITORING MORTGAGE LENDERS
  779-8  Sec. 2306.333.  MONITORING MORTGAGE SERVICERS
  779-9  Sec. 2306.334.  MONITORING CONTRACTORS
 779-10          (Sections 2306.335-2306.350 reserved for expansion)
 779-11   SUBCHAPTER P.  HOUSING FINANCE DIVISION BONDS:  ISSUANCE OF BONDS
 779-12  Sec. 2306.351.  ISSUANCE OF BONDS
 779-13  Sec. 2306.352.  TEXAS HOUSING BONDS
 779-14  Sec. 2306.353.  REVENUE BONDS
 779-15  Sec. 2306.354.  DEFINITIVE REFUNDING BONDS
 779-16  Sec. 2306.355.  ISSUANCE OF ADDITIONAL PARITY OR SUBORDINATE
 779-17                    LIEN BONDS
 779-18  Sec. 2306.356.  ISSUANCE OF BONDS TO FUND DEPARTMENT RESERVES
 779-19                    OR FUNDS
 779-20  Sec. 2306.357.  BONDS ISSUED BY TEXAS HOUSING AGENCY
 779-21          (Sections 2306.358-2306.370 reserved for expansion)
 779-22     SUBCHAPTER Q.  HOUSING FINANCE DIVISION BONDS:  BOARD ACTION
 779-23                               ON BONDS
 779-24  Sec. 2306.371.  BOARD AUTHORIZATION OF BONDS
 779-25  Sec. 2306.372.  DEPARTMENT PROCEDURES
 779-26  Sec. 2306.373.  USE OF BOND PROCEEDS
 779-27  Sec. 2306.374.  FACSIMILE SIGNATURES AND SEALS
  780-1  Sec. 2306.375.  PERSONAL LIABILITY OF BOARD MEMBER OR
  780-2                    DIRECTOR
  780-3          (Sections 2306.376-2306.390 reserved for expansion)
  780-4      SUBCHAPTER R.  HOUSING FINANCE DIVISION BONDS:  FORM; TERMS
  780-5  Sec. 2306.391.  FORM
  780-6  Sec. 2306.392.  DENOMINATION
  780-7  Sec. 2306.393.  MANNER, PRICE, AND TERMS
  780-8  Sec. 2306.394.  PLACE OF PAYMENT; MEDIUM OF EXCHANGE
  780-9  Sec. 2306.395.  INTEREST ON BONDS
 780-10  Sec. 2306.396.  MATURITY OF BONDS
 780-11  Sec. 2306.397.  REDEMPTION BEFORE MATURITY; CONVERSION
 780-12          (Sections 2306.398-2306.410 reserved for expansion)
 780-13  SUBCHAPTER S.  HOUSING FINANCE DIVISION BONDS:  SECURITY FOR BONDS
 780-14  Sec. 2306.411.  SECURITY FOR PAYMENT OF PRINCIPAL, INTEREST,
 780-15                    AND REDEMPTION PREMIUM
 780-16  Sec. 2306.412.  VALIDITY OF LIENS AND PLEDGES
 780-17          (Sections 2306.413-2306.430 reserved for expansion)
 780-18       SUBCHAPTER T.  HOUSING FINANCE DIVISION BONDS:  APPROVAL,
 780-19                      REGISTRATION, AND EXECUTION
 780-20  Sec. 2306.431.  APPROVAL OF BONDS
 780-21  Sec. 2306.432.  REGISTRATION
 780-22  Sec. 2306.433.  EXECUTION
 780-23          (Sections 2306.434-2306.450 reserved for expansion)
 780-24      SUBCHAPTER U.  HOUSING FINANCE DIVISION BONDS:  RIGHTS AND
 780-25            REMEDIES OF BONDHOLDERS AND PARTIES IN INTEREST
 780-26  Sec. 2306.451.  STATE PLEDGE REGARDING BONDHOLDER RIGHTS
 780-27                    AND REMEDIES
  781-1  Sec. 2306.452.  PAYMENT ENFORCEABLE BY MANDAMUS
  781-2          (Sections 2306.453-2306.470 reserved for expansion)
  781-3    SUBCHAPTER V.  HOUSING FINANCE DIVISION BONDS:  OBLIGATIONS OF
  781-4                         DEPARTMENT AND STATE
  781-5  Sec. 2306.471.  GENERAL OBLIGATION BONDS
  781-6  Sec. 2306.472.  DEPARTMENT'S BONDS OTHER THAN GENERAL
  781-7                    OBLIGATION BONDS NOT OBLIGATIONS OF
  781-8                    THE STATE
  781-9  Sec. 2306.473.  STATE NOT OBLIGATED TO PAY; FAITH AND CREDIT
 781-10                    NOT PLEDGED
 781-11          (Sections 2306.474-2306.490 reserved for expansion)
 781-12     SUBCHAPTER W.  HOUSING FINANCE DIVISION BONDS:  MISCELLANEOUS
 781-13                              PROVISIONS
 781-14  Sec. 2306.491.  BONDS NEGOTIABLE INSTRUMENTS
 781-15  Sec. 2306.492.  BONDS INCONTESTABLE
 781-16  Sec. 2306.493.  SIGNATURE OF FORMER OFFICER
 781-17  Sec. 2306.494.  BONDS NOT TAXABLE
 781-18  Sec. 2306.495.  AUTHORIZED INVESTMENTS
 781-19  Sec. 2306.496.  SECURITY FOR DEPOSIT OF FUNDS
 781-20  Sec. 2306.497.  MUTILATED, LOST, STOLEN, OR DESTROYED BONDS
 781-21  Sec. 2306.498.  NO GAIN ALLOWED
 781-22          (Sections 2306.499-2306.510 reserved for expansion)
 781-23             SUBCHAPTER X.  INDIVIDUALS WITH SPECIAL NEEDS
 781-24  Sec. 2306.511.  DEFINITION
 781-25  Sec. 2306.512.  SPECIAL NEEDS
 781-26  Sec. 2306.513.  HOUSING FOR INDIVIDUALS WITH SPECIAL NEEDS
 781-27       CHAPTER 2306.  TEXAS DEPARTMENT OF HOUSING AND COMMUNITY
  782-1                                AFFAIRS
  782-2                   SUBCHAPTER A.  GENERAL PROVISIONS
  782-3        Sec. 2306.001.  PURPOSES.  The purposes of the department are
  782-4  to:
  782-5              (1)  assist local governments in:
  782-6                    (A)  providing essential public services for
  782-7  their residents; and
  782-8                    (B)  overcoming financial, social, and
  782-9  environmental problems;
 782-10              (2)  provide for the housing needs of individuals and
 782-11  families of low and moderate income;
 782-12              (3)  contribute to the preservation, development, and
 782-13  redevelopment of neighborhoods and communities;
 782-14              (4)  assist the governor and the legislature in
 782-15  coordinating federal and state programs affecting local government;
 782-16  and
 782-17              (5)  inform state officials and the public of the needs
 782-18  of local government.  (V.A.C.S. Art. 4413(501), Sec. 1.01(a)
 782-19  (part).)
 782-20        Sec. 2306.002.  POLICY.  (a)  The legislature finds that:
 782-21              (1)  every resident of this state should have a decent,
 782-22  safe, and affordable living environment; and
 782-23              (2)  government at all levels should be involved in
 782-24  assisting individuals and families of low income in obtaining a
 782-25  decent, safe, and affordable living environment.
 782-26        (b)  The highest priority of the department is to provide
 782-27  assistance to individuals and families of low and very low income
  783-1  who are not assisted by private enterprise or other governmental
  783-2  programs so that they may obtain affordable housing or other
  783-3  services and programs offered by the department.  (V.A.C.S.
  783-4  Art. 4413(501), Secs. 1.01(b) (part), (f).)
  783-5        Sec. 2306.003.  PUBLIC PURPOSE.  The duties imposed and
  783-6  activities authorized by this chapter serve public purposes, and
  783-7  public money may be borrowed, spent, advanced, loaned, granted, or
  783-8  appropriated for those purposes.  (V.A.C.S. Art. 4413(501),
  783-9  Sec. 1.01(a) (part), (e) (part).)
 783-10        Sec. 2306.004.  DEFINITIONS.  In this chapter:
 783-11              (1)  "Board" means the governing board of the
 783-12  department.
 783-13              (2)  "Bond" means an evidence of indebtedness or other
 783-14  obligation, regardless of the source of payment, issued by the
 783-15  department under Subchapter P, including a bond, note, or bond or
 783-16  revenue anticipation note, regardless of whether the obligation is
 783-17  general or special, negotiable or nonnegotiable, in bearer or
 783-18  registered form, in certified or book-entry form, in temporary or
 783-19  permanent form, or with or without interest coupons.
 783-20              (3)  "Department" means the Texas Department of Housing
 783-21  and Community Affairs.
 783-22              (4)  "Director" means the executive director of the
 783-23  department.
 783-24              (5)  "Economically depressed or blighted area" means an
 783-25  area:
 783-26                    (A)  that has been determined by the housing
 783-27  finance division to be a qualified census tract or an area of
  784-1  chronic economic distress under Section 103A, Internal Revenue Code
  784-2  of 1954 (26 U.S.C. Section 103A);
  784-3                    (B)  established in a municipality that has a
  784-4  substantial number of substandard, slum, deteriorated, or
  784-5  deteriorating structures and that suffers from a high relative rate
  784-6  of unemployment; or
  784-7                    (C)  that has been designed and included in a tax
  784-8  increment district created under Chapter 695, Acts of the 66th
  784-9  Legislature, Regular Session, 1979 (Article 1066d, Vernon's Texas
 784-10  Civil Statutes).
 784-11              (6)  "Elderly individual" means an individual 60 years
 784-12  of age or older.
 784-13              (7)  "Family of moderate income" means a family:
 784-14                    (A)  that is determined by the board to require
 784-15  assistance, taking into account:
 784-16                          (i)  the amount of the total income
 784-17  available for housing needs  of the individuals and families;
 784-18                          (ii)  the size of the family;
 784-19                          (iii)  the cost and condition of available
 784-20  housing facilities;
 784-21                          (iv)  the ability of the individuals and
 784-22  families to compete successfully in the private housing market and
 784-23  to pay the amounts required by private enterprise for sanitary,
 784-24  decent, and safe housing; and
 784-25                          (v)  standards established for various
 784-26  federal programs determining eligibility based on income; and
 784-27                    (B)  that does not qualify as a family of low
  785-1  income.
  785-2              (8)  "Federal government" means the United States of
  785-3  America and includes any corporate or other instrumentality of the
  785-4  United States of America.
  785-5              (9)  "Federal mortgage" means a mortgage loan for
  785-6  residential housing:
  785-7                    (A)  that is made by the federal government; or
  785-8                    (B)  for which a commitment to make has been
  785-9  given by the federal government.
 785-10              (10)  "Federally assisted new communities" means
 785-11  federally assisted areas that receive or will receive assistance in
 785-12  the form of loan guarantees under Title X of the National Housing
 785-13  Act (12 U.S.C. Section 1701 et seq.), and a portion of that
 785-14  federally assisted area has received grants under Section 107(a)(1)
 785-15  of the Housing and Community Development Act of 1974, as amended
 785-16  (42 U.S.C. Section 5301 et seq.).
 785-17              (11)  "Federally insured mortgage" means a mortgage
 785-18  loan for residential housing that:
 785-19                    (A)  is insured or guaranteed by the federal
 785-20  government; or
 785-21                    (B)  the federal government has committed to
 785-22  insure or guarantee.
 785-23              (12)  "Housing development" means property or work or a
 785-24  project, building, structure, facility, or undertaking, whether
 785-25  existing, new construction, remodeling, improvement, or
 785-26  rehabilitation, that meets or is designed to meet minimum property
 785-27  standards required by the department and that is financed under the
  786-1  provisions of this chapter for the primary purpose of providing
  786-2  sanitary, decent, and safe dwelling accommodations for rent, lease,
  786-3  use, or purchase by individuals and families of low and very low
  786-4  income and families of moderate income in need of housing.  The
  786-5  term includes:
  786-6                    (A)  buildings, structures, land, equipment,
  786-7  facilities, or other real or personal properties that are
  786-8  necessary, convenient, or desirable appurtenances, including
  786-9  streets, water, sewers, utilities, parks, site preparation,
 786-10  landscaping, stores, offices, and other nonhousing facilities, such
 786-11  as administrative, community, and recreational facilities the
 786-12  department determines to be necessary, convenient, or desirable
 786-13  appurtenances; and
 786-14                    (B)  single and multifamily dwellings in rural
 786-15  and urban areas.
 786-16              (13)  "Housing sponsor" means:
 786-17                    (A)  an individual, including an individual or
 786-18  family of low and very low income or family of moderate income,
 786-19  joint venture, partnership, limited partnership, trust, firm,
 786-20  corporation, or cooperative that is approved by the department as
 786-21  qualified to own, construct, acquire, rehabilitate, operate,
 786-22  manage, or maintain a housing development, subject to the
 786-23  regulatory powers of the department and other terms and conditions
 786-24  in this chapter; or
 786-25                    (B)  in an economically depressed or blighted
 786-26  area, or in a federally assisted new community located within a
 786-27  home-rule municipality, the term may include an individual or
  787-1  family whose income exceeds the moderate income level if at least
  787-2  90 percent of the total mortgage amount available under a mortgage
  787-3  revenue bond issue is designated for individuals and families of
  787-4  low income or families of moderate income.
  787-5              (14)  "Individuals and families of low income" means
  787-6  individuals and families earning not more than 80 percent of the
  787-7  area median income, as determined under Section 2306.123.
  787-8              (15)  "Individuals and families of very low income"
  787-9  means individuals and families earning not more than 60 percent of
 787-10  the area median income, as determined under Section 2306.123.
 787-11              (16)  "Land development" means:
 787-12                    (A)  acquiring land for residential housing
 787-13  construction; and
 787-14                    (B)  making, installing, or constructing
 787-15  nonresidential improvements that the department determines are
 787-16  necessary or desirable for a housing development to be financed by
 787-17  the department, including:
 787-18                          (i)  waterlines and water supply
 787-19  installations;
 787-20                          (ii)  sewer lines and sewage disposal
 787-21  installations;
 787-22                          (iii)  steam, gas, and electric lines and
 787-23  installations; and
 787-24                          (iv)  roads, streets, curbs, gutters, and
 787-25  sidewalks, whether on or off the site.
 787-26              (17)  "Local government" means a county, municipality,
 787-27  special district, or any other political subdivision of the state,
  788-1  a public, nonprofit housing finance corporation created under
  788-2  Chapter 394, Local Government Code, or a combination of those
  788-3  entities.
  788-4              (18)  "Mortgage" means an interest-bearing obligation,
  788-5  including a mortgage, mortgage deed, bond, note, deed of trust, or
  788-6  other instrument, that is a lien:
  788-7                    (A)  on real property; or
  788-8                    (B)  on a leasehold under a lease having a
  788-9  remaining term that, at the time the lien is acquired, does not
 788-10  expire until after the maturity date of the interest-bearing
 788-11  obligation secured by the lien.
 788-12              (19)  "Mortgage lender" means a bank, trust company,
 788-13  savings bank, mortgage company, mortgage banker, credit union,
 788-14  national banking association, savings and loan association, life
 788-15  insurance company, or other financial institution authorized to
 788-16  transact business in this state and approved as a mortgage lender
 788-17  by the department.
 788-18              (20)  "Mortgage loan" means an interest-bearing
 788-19  obligation secured by a mortgage.
 788-20              (21)  "Municipality" includes only a municipality in
 788-21  this state.
 788-22              (22)  "Public agency" means an agency, board,
 788-23  authority, department, commission, political subdivision, municipal
 788-24  corporation, district, public corporation, body politic, or
 788-25  instrumentality of this state, including a county, municipality,
 788-26  housing authority, state-supported institution of higher education,
 788-27  school district, junior college, other district or authority, or
  789-1  other type of governmental entity of this state.
  789-2              (23)  "Real estate owned contractor" means a person
  789-3  required to meet the obligations of a contract with the housing
  789-4  finance division for managing and marketing foreclosed property.
  789-5              (24)  "Real property" means land, including
  789-6  improvements and fixtures on the land, property of any nature
  789-7  appurtenant to the land or used in connection with the land, and a
  789-8  legal or equitable estate, interest, or right in land, including
  789-9  leasehold interests, terms for years, and a judgment, mortgage, or
 789-10  other lien.
 789-11              (25)  "Reserve fund" means the housing finance
 789-12  division's reserve fund.
 789-13              (26)  "Residential housing" means a specific work or
 789-14  improvement undertaken primarily to provide dwelling
 789-15  accommodations, including the acquisition, construction,
 789-16  reconstruction, remodeling, improvement, or rehabilitation of land
 789-17  and buildings and improvements to the buildings for residential
 789-18  housing and other incidental or appurtenant nonhousing facilities.
 789-19              (27)  "Servicer" means a person required to meet
 789-20  contractual obligations with the housing finance division, or with
 789-21  a mortgage lender, relating to a loan financed under Subchapter J,
 789-22  including:
 789-23                    (A)  purchasing mortgage certificates backed by
 789-24  mortgage loans;
 789-25                    (B)  collecting principal and interest from the
 789-26  borrower;
 789-27                    (C)  sending principal and interest payments to
  790-1  the division;
  790-2                    (D)  preparing periodic reports;
  790-3                    (E)  notifying the primary mortgage and pool
  790-4  insurers of delinquent and foreclosed loans; and
  790-5                    (F)  filing insurance claims on foreclosed
  790-6  property.  (V.A.C.S.  Art. 4413(501), Secs. 1.02(1)-(8), (10)-(18),
  790-7  (20)-(23), (24) (part), (25), (26), (28) (part), (29), (30).)
  790-8        Sec. 2306.005.  REFERENCES TO FORMER LAW.  A reference in law
  790-9  to the Texas Housing Agency or the Texas Department of Community
 790-10  Affairs means the Texas Department of Housing and Community
 790-11  Affairs.   (Ch. 762, Acts of the 72nd Leg., R.S., 1991, Sec.
 790-12  23(b).)
 790-13        Sec. 2306.006.  RULES OF ABOLISHED AGENCIES.  Rules of the
 790-14  abolished Texas Housing Agency and the Texas Department of
 790-15  Community Affairs continue in effect as rules of the Texas
 790-16  Department of Housing and Community Affairs until amended or
 790-17  repealed by the department.  (Ch. 762, Acts of the 72nd Leg., R.S.,
 790-18  1991, Sec. 23(a) (part).)
 790-19        Sec. 2306.007.  ESTABLISHING ECONOMICALLY DEPRESSED OR
 790-20  BLIGHTED AREAS.  (a)  To establish an economically depressed or
 790-21  blighted area under Section 2306.004(5)(B) or (C), the governing
 790-22  body of a municipality must hold a public hearing and find that the
 790-23  area:
 790-24              (1)  substantially impairs or arrests the sound growth
 790-25  of the municipality; or
 790-26              (2)  is an economic or social liability and is a menace
 790-27  to the public health, safety, morals, or welfare in its present
  791-1  condition and use.
  791-2        (b)  The governing body of a municipality holding a hearing
  791-3  under this section must give notice as provided by Chapter 551,
  791-4  except that notice must be published not less than 10 days before
  791-5  the date of the hearing.  (V.A.C.S. Art. 4413(501), Sec. 1.02(28)
  791-6  (part).)
  791-7          (Sections 2306.008-2306.020 reserved for expansion)
  791-8             SUBCHAPTER B.  GOVERNING BOARD AND DEPARTMENT
  791-9        Sec. 2306.021.  DEPARTMENT DIVISIONS.  (a)  The Texas
 791-10  Department of Housing and Community Affairs is a public and
 791-11  official agency of the state and is a political and corporate body.
 791-12        (b)  The department is composed of:
 791-13              (1)  the community affairs division;
 791-14              (2)  the housing finance division; and
 791-15              (3)  any other division created by the director.
 791-16  (V.A.C.S. Art.  4413(501), Secs. 1.01(a) (part), 1.07(1) (part),
 791-17  1.14(a).)
 791-18        Sec. 2306.022.  APPLICATION OF SUNSET ACT.  The Texas
 791-19  Department of Housing and Community Affairs is subject to Chapter
 791-20  325 (Texas Sunset Act).  Unless continued in existence as provided
 791-21  by that chapter, the department is abolished and this chapter
 791-22  expires September 1, 1999.  (V.A.C.S. Art. 4413(501), Sec. 1.04.)
 791-23        Sec. 2306.023.  SEPARATION OF DIVISIONS.  The duties of the
 791-24  housing finance division shall be kept separate from the duties of
 791-25  the community affairs division and each other division established
 791-26  in the department.  (V.A.C.S. Art. 4413(501), Sec. 1.14(b) (part).)
 791-27        Sec. 2306.024.  BOARD MEMBERS:  APPOINTMENT AND COMPOSITION.
  792-1  The board consists of nine members appointed by the governor.
  792-2  (V.A.C.S. Art.  4413(501), Secs. 1.05(a), (b).)
  792-3        Sec. 2306.025.  TERMS OF BOARD MEMBERS.  Members of the board
  792-4  hold office for staggered terms of six years, with the terms of
  792-5  three members expiring on January 31 of each odd-numbered year.
  792-6  (V.A.C.S. Art. 4413(501), Sec. 1.05(c) (part).)
  792-7        Sec. 2306.026.  BOARD PLACES.  (a)  An individual is eligible
  792-8  for appointment to the board if the individual is a registered
  792-9  voter of the state and, with the exception of Place 2, does not
 792-10  hold another public office.
 792-11        (b)  Members of the board must be individuals who broadly
 792-12  reflect the economic, cultural, and social diversity of the state,
 792-13  including ethnic minorities and women.  (V.A.C.S. Art. 4413(501),
 792-14  Sec. 1.05(f) (part).)
 792-15        Sec. 2306.027.  ELIGIBILITY.  (a)  The governor shall make
 792-16  appointments to the board as follows:
 792-17              (1)  Place 1:  an individual representing lending
 792-18  institutions;
 792-19              (2)  Place 2:  an individual representing local
 792-20  government;
 792-21              (3)  Place 3:  an individual representing housing
 792-22  construction;
 792-23              (4)  Place 4:  an individual representing
 792-24  community-based nonprofit housing organizations;
 792-25              (5)  Place 5:  an individual representing realtors or
 792-26  housing developers;
 792-27              (6)  Place 6:  an individual representing individuals
  793-1  and families of low or very low income; and
  793-2              (7)  Places 7 through 9:  public members.
  793-3        (b)  Except as necessary to comply with the requirements of
  793-4  Section 2306.026 regarding diversity, appointments to the board
  793-5  shall be made without regard to the race, color, handicap, sex,
  793-6  religion, age, or national origin of the appointees and shall be
  793-7  made in a manner that produces representation on the board of the
  793-8  different geographical regions of this state.
  793-9        (c)  An elected or appointed official of a political
 793-10  subdivision appointed to Place 2 on the board is a member of the
 793-11  board as an additional or ex officio duty required by the member's
 793-12  other official capacity, and the member's service on the board is
 793-13  not dual office holding.  (V.A.C.S.  Art. 4413(501), Secs. 1.05(f)
 793-14  (part), (g), (h).)
 793-15        Sec. 2306.028.  CONFLICT OF INTEREST.  An individual is not
 793-16  eligible for appointment as a public member of the board if the
 793-17  individual or the individual's spouse:
 793-18              (1)  is employed by or participates in the management
 793-19  of a business entity or other organization regulated by the
 793-20  department or receiving funds from the department;
 793-21              (2)  owns or controls, directly or indirectly, more
 793-22  than a 10 percent interest in a business entity or other
 793-23  organization regulated by the department or receiving funds from
 793-24  the department; or
 793-25              (3)  uses or receives a substantial amount of tangible
 793-26  goods, services, or funds from the department, other than
 793-27  compensation or reimbursement authorized by law for department
  794-1  membership, attendance, or expenses.  (V.A.C.S. Art. 4413(501),
  794-2  Sec. 1.08.)
  794-3        Sec. 2306.029.  SURETY BONDS.  (a)  Before the issuance of
  794-4  bonds by the department, each board member shall execute a surety
  794-5  bond in the penal sum of $25,000, conditioned on the faithful
  794-6  performance of the duties of the member.  The bond must be executed
  794-7  by a surety company authorized to transact business in this state,
  794-8  approved by the attorney general, and filed with the secretary of
  794-9  state.
 794-10        (b)  The surety bonds shall be kept in effect at all times.
 794-11        (c)  The housing finance division shall pay the costs of the
 794-12  surety bonds.  (V.A.C.S. Art. 4413(501), Sec. 1.06(e).)
 794-13        Sec. 2306.030.  PRESIDING OFFICER; OTHER OFFICERS.  (a)  The
 794-14  governor shall appoint a presiding officer from the board members.
 794-15  The presiding officer presides at meetings of the board and
 794-16  performs other duties required by this chapter.
 794-17        (b)  The board shall elect the following officers:
 794-18              (1)  from the members of the board, an assistant
 794-19  presiding officer to perform the duties of the presiding officer
 794-20  when the presiding officer is not present or is incapable of
 794-21  performing duties of the presiding officer;
 794-22              (2)  a secretary to be the official custodian of the
 794-23  minutes, books, records, and seal of the board and to perform other
 794-24  duties assigned by the board; and
 794-25              (3)  a treasurer to perform duties assigned by the
 794-26  board.
 794-27        (c)  The offices of secretary and treasurer may be held by
  795-1  one individual, and the holder of each of these offices need not be
  795-2  a board member.  The board may appoint one or more individuals who
  795-3  are not members to be assistant secretaries to perform any duty of
  795-4  the secretary.
  795-5        (d)  Officers of the board shall be elected at the first
  795-6  meeting of the board on or after January 31 of each odd-numbered
  795-7  year and at any other time as necessary to fill a vacancy.
  795-8  (V.A.C.S. Art. 4413(501), Secs. 1.05(i), 1.06(a) (part), (c)
  795-9  (part).)
 795-10        Sec. 2306.031.  MEMBERS' COMPENSATION.  Members of the board
 795-11  serve without compensation but are entitled to reimbursement for
 795-12  actual expenses incurred in attending board meetings and in
 795-13  performing the duties of a board member.  (V.A.C.S. Art. 4413(501),
 795-14  Sec. 1.05(j).)
 795-15        Sec. 2306.032.  BOARD MEETINGS.  (a)  The board shall meet at
 795-16  least three times annually at the call of the presiding officer and
 795-17  other times the board determines are necessary.  The time and place
 795-18  of the other meetings are to be fixed by a majority vote of the
 795-19  board.
 795-20        (b)  The board may hold special meetings when called by the
 795-21  presiding officer, the director, or three of the members.
 795-22        (c)  The board shall keep complete minutes of board meetings.
 795-23  The accounts, minutes, and other records shall be kept at the
 795-24  principal office of the department.  (V.A.C.S. Art. 4413(501),
 795-25  Secs. 1.05(n) (part), 1.06(a) (part), (d).)
 795-26        Sec. 2306.033.  REMOVAL OF MEMBERS.  (a)  It is a ground for
 795-27  removal from the board that a member:
  796-1              (1)  does not have at the time of appointment the
  796-2  qualifications required by Section 2306.026, 2306.027, or 2306.028
  796-3  for appointment to the board;
  796-4              (2)  does not maintain during the service on the board
  796-5  the qualifications required by Section 2306.026, 2306.027, or
  796-6  2306.028 for appointment to the board;
  796-7              (3)  violates a prohibition established by Section
  796-8  2306.034 or 2306.035;
  796-9              (4)  cannot discharge the member's duties for a
 796-10  substantial part of the term for which the member is appointed
 796-11  because of illness or disability; or
 796-12              (5)  is absent from more than half of the regularly
 796-13  scheduled meetings of the board that the member is eligible to
 796-14  attend during a calendar year unless the absence is excused by
 796-15  majority vote of the board.
 796-16        (b)  The validity of an action of the board is not affected
 796-17  by the fact that it is taken when a ground for removal of a member
 796-18  exists.
 796-19        (c)  If the director has knowledge that a potential ground
 796-20  for removal exists, the director shall notify the presiding officer
 796-21  of the board of the ground.  The presiding officer shall then
 796-22  notify the governor that a potential ground for removal exists.
 796-23  (V.A.C.S. Art. 4413(501), Secs. 1.05(k), (l), (m).)
 796-24        Sec. 2306.034.  DISQUALIFICATION OF MEMBERS AND CERTAIN
 796-25  EMPLOYEES.  (a)  An employee or paid consultant of a Texas trade
 796-26  association in the field of banking, real estate, housing
 796-27  development, or housing construction may not be a member of the
  797-1  board or an employee of the department who is exempt from the
  797-2  state's position classification plan or is compensated at or above
  797-3  the amount prescribed by the General Appropriations Act for step 1,
  797-4  salary group 17, of the position classification salary schedule.
  797-5        (b)  For the purposes of this section, a Texas trade
  797-6  association is a nonprofit, cooperative, and voluntarily joined
  797-7  association of business or professional competitors in this state
  797-8  designed to assist its members and its industry or profession in
  797-9  dealing with mutual business or professional problems and in
 797-10  promoting their common interest.  (V.A.C.S. Art. 4413(501), Sec.
 797-11  1.10.)
 797-12        Sec. 2306.035.  LOBBYIST RESTRICTION.  A person may not serve
 797-13  as a member of the board or act as the director of or the general
 797-14  counsel to the department if the person is required to register as
 797-15  a lobbyist under Chapter 305 because of the person's activities for
 797-16  compensation in or on behalf of a profession related to the
 797-17  operation of the department.  (V.A.C.S. Art. 4413(501), Sec. 1.11.)
 797-18        Sec. 2306.036.  DIRECTOR:  APPOINTMENT; TERM.  The governor
 797-19  shall appoint the director with the advice and consent of the
 797-20  senate.  The director serves at the pleasure of the governor during
 797-21  the governor's terms of office.  (V.A.C.S. Art. 4413(501), Sec.
 797-22  1.09(a) (part).)
 797-23        Sec. 2306.037.  DIRECTOR'S COMPENSATION.   The governor shall
 797-24  set the salary of the director.  (V.A.C.S. Art. 4413(501), Sec.
 797-25  1.09(a) (part).)
 797-26        Sec. 2306.038.  ACTING DIRECTOR.  The governor shall
 797-27  establish a procedure for designating an acting director and shall
  798-1  immediately designate an acting director or a new permanent
  798-2  director if the position becomes vacant because of absence or
  798-3  disability.  (V.A.C.S.  Art. 4413(501), Sec. 1.13.)
  798-4          (Sections 2306.039-2306.050 reserved for expansion)
  798-5                   SUBCHAPTER C.  POWERS AND DUTIES
  798-6        Sec. 2306.051.  BOARD DUTIES.  The board shall consult with
  798-7  and advise the director on the affairs and problems of local
  798-8  government and the work of the department.  (V.A.C.S. Art.
  798-9  4413(501), Sec. 1.05(n) (part).)
 798-10        Sec. 2306.052.  DIRECTOR'S POWERS AND DUTIES.  (a)  The
 798-11  director is the administrator and the head of the department and
 798-12  must be an individual qualified by training and experience to
 798-13  perform the duties of the office.
 798-14        (b)  The director shall:
 798-15              (1)  administer and organize the work of the department
 798-16  consistent with this chapter and with sound organizational
 798-17  management that promotes efficient and effective operation;
 798-18              (2)  appoint and remove officers and other personnel
 798-19  employed by the department, subject to the annual budget and any
 798-20  resolution authorizing the issuance of bonds under this chapter;
 798-21              (3)  submit, through and with the approval of the
 798-22  governor, requests for appropriations and other money to operate
 798-23  the department;
 798-24              (4)  administer all money entrusted to the department;
 798-25              (5)  make an annual report to the governor and the
 798-26  legislature of the department's operations and provide other
 798-27  reports requested by the governor or the legislature; and
  799-1              (6)  perform other functions that may be assigned by
  799-2  the governor.
  799-3        (c)  The director shall develop and implement the policies
  799-4  established by the board that define the responsibilities of:
  799-5              (1)  the director, board, and staff of the department;
  799-6  and
  799-7              (2)  the community affairs division, the housing
  799-8  finance division, and any other division.
  799-9        (d)  The director is authorized to assign functions and
 799-10  duties to the various offices and divisions, to provide for
 799-11  additional offices, and to reorganize the department when necessary
 799-12  to improve efficiency or effectiveness.  (V.A.C.S. Art. 4413(501),
 799-13  Secs. 1.09(a) (part), (g); 1.14(d).)
 799-14        Sec. 2306.053.  DEPARTMENT POWERS AND DUTIES.  (a)  The
 799-15  department shall:
 799-16              (1)  maintain suitable headquarters and other offices
 799-17  in this state that the director determines are necessary; and
 799-18              (2)  furnish the information, equipment, and staff
 799-19  necessary to implement the work of the board.
 799-20        (b)  The department may:
 799-21              (1)  sue and be sued, or plead and be impleaded;
 799-22              (2)  act for and on behalf of this state;
 799-23              (3)  adopt an official seal or alter it;
 799-24              (4)  adopt and enforce bylaws and rules;
 799-25              (5)  contract with the federal government, state, any
 799-26  public agency, mortgage lender, person, or other entity;
 799-27              (6)  designate mortgage lenders to act for the
  800-1  department for the origination, processing, and servicing of the
  800-2  department's mortgage loans under conditions agreed to by the
  800-3  parties;
  800-4              (7)  provide, contract, or arrange for consolidated
  800-5  processing of a housing development to  avoid duplication;
  800-6              (8)  encourage homeless individuals and individuals of
  800-7  low or very low income to attend the department's educational
  800-8  programs and assist those individuals in attending the programs;
  800-9              (9)  appoint and determine the qualifications, duties,
 800-10  and tenure of its agents, counselors, and professional advisors,
 800-11  including accountants, appraisers, architects, engineers, financial
 800-12  consultants, housing construction and financing experts, and real
 800-13  estate consultants; and
 800-14              (10)  do all things necessary, convenient, or desirable
 800-15  to carry out the powers expressly granted or necessarily implied by
 800-16  this chapter.  (V.A.C.S.  Art. 4413(501), Secs.  1.05(n) (part),
 800-17  1.07 (part), 1.14(f).)
 800-18          (Sections 2306.054-2306.060 reserved for expansion)
 800-19           SUBCHAPTER D.  GENERAL ADMINISTRATIVE PROVISIONS
 800-20        Sec. 2306.061.  INFORMATION ON QUALIFICATIONS AND CONDUCT.
 800-21  The director shall become aware of and provide to the board members
 800-22  and the department employees, as often as necessary, information
 800-23  about the director's, members', and employees':
 800-24              (1)  qualifications for office or employment under this
 800-25  chapter; and
 800-26              (2)  responsibilities under applicable laws relating to
 800-27  standards of conduct for state officers or employees.  (V.A.C.S.
  801-1  Art. 4413(501), Sec. 1.09(h).)
  801-2        Sec. 2306.062.  CAREER LADDER.  The director or the
  801-3  director's designee shall develop an intraagency career ladder
  801-4  program.  The program shall require intraagency postings of all
  801-5  nonentry level positions concurrently with any public posting.
  801-6  (V.A.C.S. Art. 4413(501), Sec. 1.09(b).)
  801-7        Sec. 2306.063.  PERFORMANCE EVALUATIONS.  The director or the
  801-8  director's designee shall develop a system of annual performance
  801-9  evaluations.  All merit pay for department employees must be based
 801-10  on the system established under this section.  (V.A.C.S. Art.
 801-11  4413(501), Sec. 1.09(c).)
 801-12        Sec. 2306.064.  EQUAL EMPLOYMENT OPPORTUNITIES.  (a)  The
 801-13  director or the director's designee shall prepare and maintain a
 801-14  written policy statement to ensure implementation of a program of
 801-15  equal employment opportunity under which all personnel transactions
 801-16  are made without regard to race, color, disability, sex, religion,
 801-17  age, or national origin.  The policy statement must include:
 801-18              (1)  a comprehensive analysis of the department work
 801-19  force that meets federal and state guidelines;
 801-20              (2)  personnel policies, including policies relating to
 801-21  recruitment, evaluation, selection, appointment, training, and
 801-22  promotion of personnel;
 801-23              (3)  procedures by which a determination can be made of
 801-24  significant underuse in the department work force of all persons
 801-25  for whom federal or state guidelines encourage a more equitable
 801-26  balance; and
 801-27              (4)  reasonable methods to appropriately address those
  802-1  areas of significant underuse.
  802-2        (b)  A policy statement prepared under Subsection (a) must
  802-3  cover an annual period, be updated at least annually, and be filed
  802-4  with the governor's office.
  802-5        (c)  The governor's office shall deliver a biennial report to
  802-6  the legislature based on the information received under Subsection
  802-7  (b).  The report may be made separately or as a part of other
  802-8  biennial reports made to the legislature.  (V.A.C.S. Art.
  802-9  4413(501), Secs. 1.09(d), (e), (f).)
 802-10        Sec. 2306.065.  DISCRIMINATION PROHIBITED.  An individual may
 802-11  not, because of that individual's race, color, national origin, or
 802-12  sex, be excluded from participation, be denied benefits, or be
 802-13  subjected to discrimination in any program or activity funded in
 802-14  whole or in part with funds made available under this chapter.
 802-15  (V.A.C.S. Art. 4413(501), Sec. 4.01.)
 802-16        Sec. 2306.066.  INFORMATION AND COMPLAINTS.  (a)  The
 802-17  department shall prepare information of public interest describing
 802-18  the functions of the department and the procedures by which
 802-19  complaints are filed with and resolved by the department.  The
 802-20  department shall make the information available to the public and
 802-21  appropriate state agencies.
 802-22        (b)  The department shall keep an information file about each
 802-23  complaint filed with the department that the department has
 802-24  authority to resolve.
 802-25        (c)  If a written complaint is filed with the department that
 802-26  the department has authority to resolve, the department, at least
 802-27  quarterly and until final disposition of the complaint, shall
  803-1  notify the parties to the complaint of the status of the complaint
  803-2  unless the notice would jeopardize an undercover investigation.
  803-3        (d)  The board shall develop and implement policies that
  803-4  provide the public with a reasonable opportunity to appear before
  803-5  the board and to speak on any issue under the jurisdiction of the
  803-6  board.
  803-7        (e)  The director shall prepare and maintain a written plan
  803-8  that describes how an individual who does not speak English or who
  803-9  has a physical, mental, or developmental disability may be provided
 803-10  reasonable access to and participation in the department's
 803-11  programs.  (V.A.C.S. Art. 4413(501), Sec. 1.18.)
 803-12        Sec. 2306.067.  LOANED EMPLOYEES.  (a)  The director may
 803-13  enter into reciprocal agreements with a state agency or
 803-14  instrumentality or local government to loan or assign department
 803-15  employees to that entity.
 803-16        (b)  A state agency or instrumentality or local government
 803-17  may loan or assign employees to the department, with or without
 803-18  reimbursement, by agreement between the department and the other
 803-19  party.   The department may contract to reimburse all costs
 803-20  incidental to loaning or assigning employees.
 803-21        (c)  An employee loaned or assigned to the department is an
 803-22  employee of the lending agency or unit for purposes of salary,
 803-23  leave, retirement, and other personnel benefits.  The loaned or
 803-24  assigned employee is under the supervision of personnel of the
 803-25  department and is an employee of the department for all other
 803-26  purposes.  (V.A.C.S. Art. 4413(501), Secs. 1.14(e), 1.15.)
 803-27        Sec. 2306.068.  INTERAGENCY COOPERATION.  An agency or
  804-1  institution of the state shall cooperate with the department by
  804-2  providing personnel, information, and technical advice as the
  804-3  department assists the governor in:
  804-4              (1)  the coordination of federal and state activities
  804-5  affecting local government; and
  804-6              (2)  providing affordable housing for individuals and
  804-7  families of low and very low income and families of moderate
  804-8  income.  (V.A.C.S. Art. 4413(501), Sec. 1.16.)
  804-9        Sec. 2306.069.  OUTSIDE LEGAL COUNSEL.  The department shall
 804-10  obtain and evaluate information regarding the affirmative action
 804-11  policies and practices of proposed outside legal counsel.  The
 804-12  department must include the evaluation in a request to the attorney
 804-13  general for outside legal counsel.  (V.A.C.S. Art. 4413(501), Sec.
 804-14  1.21.)
 804-15        Sec. 2306.070.  BUDGET.  In preparing the department's
 804-16  legislative appropriations request, the department shall also
 804-17  prepare an operating budget for the housing finance division.  The
 804-18  department shall submit the operating budget to the Legislative
 804-19  Budget Board, the Senate Finance Committee, and the House
 804-20  Appropriations Committee.  (V.A.C.S. Art. 4413(501), Sec. 1.19(c).)
 804-21        Sec. 2306.071.  FUNDS.  (a)   The department may request,
 804-22  contract for, receive, and spend for its purposes an appropriation,
 804-23  grant, allocation, subsidy, rent supplement, guarantee, aid,
 804-24  contribution, gift, service, labor, or material from this state,
 804-25  the federal government, or another public or private source.
 804-26        (b)  The funds and revenues of the housing finance division
 804-27  shall be kept separate from the funds and revenues of the other
  805-1  divisions, and the other divisions may not use funds and revenues
  805-2  of the housing finance division for any purpose.
  805-3        (c)  Except for legislative appropriations, which shall be
  805-4  kept in the state treasury, all funds and revenue received by the
  805-5  housing finance division are to be kept outside the state treasury.
  805-6  (V.A.C.S. Art. 4413(501), Secs. 1.14(b) (part), 1.17.)
  805-7        Sec. 2306.072.  ANNUAL REPORT.  (a)  The department shall
  805-8  file annually with the governor and the presiding officer of each
  805-9  house of the legislature a complete and detailed written report
 805-10  accounting for all funds received and disbursed by the department
 805-11  during the preceding fiscal year.  The annual report must be in the
 805-12  form and reported in the time provided by the General
 805-13  Appropriations Act.
 805-14        (b)  On or before January 1 of each year, the department
 805-15  shall prepare a report of its activities for the preceding fiscal
 805-16  year for the governor and the legislature.  The report must include
 805-17  a complete operating and financial statement.  (V.A.C.S. Art.
 805-18  4413(501), Secs. 1.19(a) (part), (b).)
 805-19        Sec. 2306.073.  INTERNAL AUDIT.  (a)  The director, with the
 805-20  approval of the board, shall appoint an internal auditor who
 805-21  reports directly to the board on matters concerning housing
 805-22  finance, the community affairs division, or any other division.
 805-23        (b)  The internal auditor shall:
 805-24              (1)  prepare an annual audit plan using risk assessment
 805-25  techniques to rank high risk functions in the department; and
 805-26              (2)  submit the annual audit plan to the director and
 805-27  board for consideration and approval or change as necessary or
  806-1  advisable.
  806-2        (c)  The internal auditor may bring before the director or
  806-3  board an issue outside the annual audit plan that requires the
  806-4  immediate attention of the director or board.
  806-5        (d)  The internal auditor may not be assigned any operational
  806-6  or management responsibilities that impair the ability of the
  806-7  internal auditor to make an independent examination of the
  806-8  department's operations.
  806-9        (e)  The department shall give the internal auditor
 806-10  unrestricted access to activities and records of the department
 806-11  unless restricted by other law.  (V.A.C.S. Art. 4413(501),
 806-12  Sec. 1.20.)
 806-13        Sec. 2306.074.  AUDIT.  (a)  The state auditor or a certified
 806-14  public accountant shall audit the department's books and accounts
 806-15  each fiscal year and file a copy of the audit with the governor and
 806-16  the legislature on or before January 1 of each year.  If the state
 806-17  auditor is conducting the audit and it is not available by January
 806-18  1, it must be filed as soon as it is available.
 806-19        (b)  The department shall pay for the audit.  (V.A.C.S.
 806-20  Art. 4413(501), Sec. 1.19(a) (part).)
 806-21        Sec. 2306.075.  TAX EXEMPTION.  The property of the
 806-22  department, its income, and its operations are exempt from all
 806-23  taxes and assessments imposed by this state and all public agencies
 806-24  on property acquired or used by the department under this chapter.
 806-25  (V.A.C.S.  Art. 4413(501), Sec. 1.22.)
 806-26          (Sections 2306.076-2306.090 reserved for expansion)
 806-27               SUBCHAPTER E.  COMMUNITY AFFAIRS DIVISION
  807-1        Sec. 2306.091.  GENERAL FUNCTIONS.  The functions of the
  807-2  community affairs division include:
  807-3              (1)  intergovernmental cooperation;
  807-4              (2)  regional and community services including rural
  807-5  community services;
  807-6              (3)  research;
  807-7              (4)  economic opportunity; and
  807-8              (5)  education and training.  (V.A.C.S. Art. 4413(501),
  807-9  Sec. 1.14(c).)
 807-10        Sec. 2306.092.  DUTIES.   The department, through the
 807-11  community affairs division, shall:
 807-12              (1)  maintain communication with local governments and
 807-13  act as an advocate for local governments at the state and federal
 807-14  levels;
 807-15              (2)  assist local governments with advisory and
 807-16  technical services;
 807-17              (3)  provide financial aid to local governments and
 807-18  combinations of local governments for programs that are authorized
 807-19  to receive assistance;
 807-20              (4)  provide information about and referrals for state
 807-21  and federal programs and services that affect local governments;
 807-22              (5)  administer, conduct, or jointly sponsor
 807-23  educational and training programs for local government officials;
 807-24              (6)  conduct research on problems of general concern to
 807-25  local governments;
 807-26              (7)  collect, publish, and distribute information
 807-27  useful to local governments, including information on:
  808-1                    (A)  local government finances and employment;
  808-2                    (B)  housing;
  808-3                    (C)  population characteristics; and
  808-4                    (D)  land use patterns;
  808-5              (8)  encourage cooperation among local governments as
  808-6  appropriate;
  808-7              (9)  advise and inform the governor and the legislature
  808-8  about the affairs of local governments and recommend necessary
  808-9  action;
 808-10              (10)  assist the governor in coordinating federal and
 808-11  state activities affecting local governments;
 808-12              (11)  administer, as appropriate:
 808-13                    (A)  state responsibilities for programs created
 808-14  under the federal Economic Opportunity Act of 1964 (42 U.S.C.
 808-15  Section 2701 et seq.);
 808-16                    (B)  programs assigned to the department under
 808-17  the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
 808-18  and
 808-19                    (C)  other federal acts creating economic
 808-20  opportunity programs assigned to the department;
 808-21              (12)  adopt rules that are necessary and proper to
 808-22  carry out programs and responsibilities assigned by the legislature
 808-23  or the governor; and
 808-24              (13)  perform other duties relating to local government
 808-25  that are assigned by the legislature or the governor.  (V.A.C.S.
 808-26  Art. 4413(501), Sec. 2.01(a).)
 808-27        Sec. 2306.093.  HOUSING ASSISTANCE GOAL.        By action of
  809-1  the board the community affairs division shall have a goal to apply
  809-2  a minimum of 25 percent of the division's total housing-related
  809-3  funds toward housing assistance for individuals and families of
  809-4  very low income.  (V.A.C.S. Art. 4413(501), Sec. 2.01(b).)
  809-5        Sec. 2306.094.  SPECIAL ADVISORY COUNCILS.  (a)  The governor
  809-6  may, with the advice of the director, appoint special advisory
  809-7  councils to:
  809-8              (1)  assist the board in adopting basic policy for the
  809-9  community affairs division; or
 809-10              (2)  offer advice on technical aspects of certain
 809-11  programs that the community affairs division administers.
 809-12        (b)  A special advisory council is dissolved on completion of
 809-13  its stated purpose unless continued by the governor.  (V.A.C.S.
 809-14  Art. 4413(501), Sec. 2.02.)
 809-15        Sec. 2306.095.  TRANSFERS FROM GOVERNOR.   The governor may
 809-16  transfer to the community affairs division personnel, equipment,
 809-17  records, obligations, appropriations, functions, and duties of
 809-18  appropriate divisions of the governor's office.  (V.A.C.S.
 809-19  Art. 4413(501), Sec. 2.03.)
 809-20        Sec. 2306.096.  MULTIPURPOSE HUMAN RESOURCE CENTERS.  (a)  To
 809-21  provide the most effective and efficient delivery of human resource
 809-22  services to individuals and families of low income, as well as the
 809-23  total population, the department,  through the community affairs
 809-24  division, may establish multipurpose human resource centers in
 809-25  various communities.
 809-26        (b)  The department, through the community affairs division,
 809-27  may:
  810-1              (1)  locate and lease with state funds suitable office
  810-2  space at the community level that is easily accessible to clients
  810-3  of human resource service delivery agencies; and
  810-4              (2)  make the space available to those agencies.
  810-5        (c)  A state or local government agency or a private,
  810-6  nonprofit human resource agency that has filed with the state a
  810-7  state or regional plan for delivery of human resource services is
  810-8  eligible to place staff in a community multipurpose human resource
  810-9  service center.
 810-10        (d)  The department shall report annually to the governor and
 810-11  the legislature the agencies that are and are not placing human
 810-12  resource delivery staff in available community multipurpose human
 810-13  resource service centers.
 810-14        (e)  The Community Multipurpose Human Resource Service Center
 810-15  Fund is in the state treasury.  The fund shall be used to provide:
 810-16              (1)  the state's share of the rental costs for
 810-17  community multipurpose human resource service centers; and
 810-18              (2)  the administrative costs of the centers'
 810-19  operation.  (V.A.C.S. Art. 4413(501), Sec. 2.04.)
 810-20        Sec. 2306.097.  ENERGY SERVICES PROGRAM FOR LOW-INCOME
 810-21  INDIVIDUALS.  (a)  The Energy Services Program for Low-Income
 810-22  Individuals is in the community affairs division.
 810-23        (b)  The program shall operate in conjunction with the
 810-24  community service block grant program and has jurisdiction and
 810-25  responsibility for administration of the following elements of the
 810-26  State Low-Income Energy Assistance Program, from whatever sources
 810-27  funded:
  811-1              (1)  the Energy Crisis Intervention Program; and
  811-2              (2)  the weatherization program.  (V.A.C.S. Art.
  811-3  4413(501), Sec. 2.05.)
  811-4        Sec. 2306.098.  ADMINISTRATION OF COMMUNITY DEVELOPMENT BLOCK
  811-5  GRANT PROGRAM;  ALLOCATION OF FUNDS.  (a)  The department, through
  811-6  the community affairs division, shall, under the Omnibus Budget
  811-7  Reconciliation Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570,
  811-8  Subpart I, administer the state's allocation of federal funds
  811-9  provided under the community development block grant nonentitlement
 811-10  program authorized by Title I of the Housing and Community
 811-11  Development Act of 1974 (42 U.S.C. Section 5301 et seq.).
 811-12        (b)  Community development block grant program funds shall be
 811-13  allocated to eligible counties and municipalities under department
 811-14  rules.  (V.A.C.S. Art. 4413(501), Secs. 2.06, 2.07.)
 811-15        Sec. 2306.099.  TRANSFER OF FEDERAL FUNDS.  (a)  The
 811-16  department may enter into an interagency agreement with the Texas
 811-17  Department of Commerce to transfer not more than 20 percent of the
 811-18  federal funds received by the department to the Texas Department of
 811-19  Commerce to be used for economic development.
 811-20        (b)  Federal funds transferred under this section include the
 811-21  amount of federal funds designated for administrative expenses
 811-22  under federal law.
 811-23        (c)  Income received from economic development programs of
 811-24  the Texas Department of Commerce remain with that agency.
 811-25        (d)  Use of funds transferred under this section must be
 811-26  approved by the department.
 811-27        (e)  A rule of the Texas Department of Commerce relating to
  812-1  funds transferred under this section must be approved by the
  812-2  department.
  812-3        (f)  The Texas Department of Commerce shall return to the
  812-4  department under an interagency agreement federal funds transferred
  812-5  under this section that are not used in a timely manner under
  812-6  federal guidelines.  (V.A.C.S.  Art. 4413(501), Secs. 2.08, 2.09.)
  812-7        Sec. 2306.100.  STATE COMMUNITY DEVELOPMENT REVIEW COMMITTEE.
  812-8  (a)   The state community development review committee is composed
  812-9  of 12 members appointed by the governor.
 812-10        (b)  A committee member must be:
 812-11              (1)  a member of the governing body of a county or
 812-12  municipality eligible for funding under the community development
 812-13  block grant program; or
 812-14              (2)  a county or municipal employee who is a supervisor
 812-15  and whose regular duties include involvement in community
 812-16  development activities.
 812-17        (c)  The ratio of county officials serving as committee
 812-18  members to all committee members may not exceed the ratio of all
 812-19  counties eligible for funding under the community development block
 812-20  grant program to all eligible applicants.
 812-21        (d)  The governor shall designate the presiding officer of
 812-22  the committee, who serves at the governor's pleasure.
 812-23        (e)  Committee members serve two-year terms expiring February
 812-24  1 of each odd-numbered year.
 812-25        (f)  A committee member serves without compensation for
 812-26  service on the committee, but is entitled to reimbursement for
 812-27  reasonable and necessary expenses incurred in performing the
  813-1  member's duties.
  813-2        (g)  Service on the committee by an officer or employee of a
  813-3  county or municipality is an additional duty of the individual's
  813-4  office or employment and is not dual officeholding.
  813-5        (h)  The committee shall meet at least twice annually at the
  813-6  director's call.
  813-7        (i)  The committee shall:
  813-8              (1)  consult with and advise the director on the
  813-9  administration and enforcement of the community development block
 813-10  grant program; and
 813-11              (2)  review funding applications of eligible counties
 813-12  and municipalities and advise and assist the director regarding the
 813-13  allocation of program funds to those applicants.
 813-14        (j)  The committee may annually recommend to the director a
 813-15  formula for allocating funds to each geographic state planning
 813-16  region established by the governor under Chapter 391, Local
 813-17  Government Code.  The formula must give preference to regions
 813-18  according to the regions' needs.  (V.A.C.S.  Art. 4413(501),
 813-19  Sec. 2.10.)
 813-20          (Sections 2306.101-2306.110 reserved for expansion)
 813-21               SUBCHAPTER F.  HOUSING FINANCE DIVISION:
 813-22                          GENERAL PROVISIONS
 813-23        Sec. 2306.111.  HOUSING ASSISTANCE GOAL.  The housing finance
 813-24  division shall adopt a goal to apply a minimum of 25 percent of the
 813-25  division's total housing funds toward housing assistance for
 813-26  individuals and families of very low income.  (V.A.C.S. Art.
 813-27  4413(501), Sec. 3.01(b).)
  814-1        Sec. 2306.112.  PREPARATION AND CONTENT OF ANNUAL BUDGET.
  814-2  (a)  On or before August 1 of each year, the director shall file
  814-3  with the board a proposed annual budget for the housing finance
  814-4  division for the succeeding fiscal year.
  814-5        (b)  The budget shall state:
  814-6              (1)  the general categories of expected expenditures
  814-7  from revenues and income of the housing finance division;
  814-8              (2)  the amount of expected expenditures for each
  814-9  category;
 814-10              (3)  expected operating expenses of the housing finance
 814-11  division; and
 814-12              (4)  the proposed use of projected year-end
 814-13  unencumbered balances.
 814-14        (c)  The budget may include a provision or reserve for
 814-15  contingencies or overexpenditures.  (V.A.C.S. Art. 4413(501), Sec.
 814-16  3.05(a).)
 814-17        Sec. 2306.113.  BOARD CONSIDERATION OF ANNUAL BUDGET.  On or
 814-18  before September 1 of each year, the board shall consider the
 814-19  director's proposed annual budget for the housing finance division
 814-20  and shall approve or change the budget as the board determines
 814-21  necessary or advisable.  (V.A.C.S.  Art. 4413(501), Sec. 3.05(b)
 814-22  (part).)
 814-23        Sec. 2306.114.  FILING OF ANNUAL BUDGET.  (a)  Copies of the
 814-24  annual budget certified by the presiding officer of the board shall
 814-25  be filed promptly with the governor and the legislature.
 814-26        (b)  The annual budget is not effective until filed.
 814-27  (V.A.C.S. Art.  4413(501), Sec. 3.05(b) (part).)
  815-1        Sec. 2306.115.  FAILURE TO ADOPT ANNUAL BUDGET.  If the board
  815-2  does not adopt the annual budget on or before September 1, the
  815-3  budget for the preceding year remains in effect until a new budget
  815-4  is adopted.  (V.A.C.S. Art. 4413(501), Sec. 3.05(c).)
  815-5        Sec. 2306.116.  AMENDED ANNUAL BUDGET.  (a)  The board may
  815-6  adopt an amended annual budget during the fiscal year.
  815-7        (b)  An amended annual budget does not supersede a prior
  815-8  budget until it is filed with the governor and the legislature.
  815-9  (V.A.C.S. Art. 4413(501), Sec.  3.05(d).)
 815-10        Sec. 2306.117.  PAYMENT OF EXPENSES; INDEBTEDNESS.  (a)  The
 815-11  expenses incurred in carrying out the functions of the housing
 815-12  finance division may be paid only from revenues or funds provided
 815-13  under this chapter.
 815-14        (b)  This chapter does not authorize the housing finance
 815-15  division to incur debt or liability on behalf of or payable by the
 815-16  state, except as provided by this chapter or other law.  (V.A.C.S.
 815-17  Art.  4413(501), Sec. 3.05(e).)
 815-18        Sec. 2306.118.  DEPOSIT OF FUNDS WITH TEXAS TREASURY
 815-19  SAFEKEEPING TRUST COMPANY.  Except as provided by Section 2306.120,
 815-20  revenue and funds of the department received by or payable through
 815-21  the programs and functions of the housing finance division, other
 815-22  than funds necessary for the operation of the housing finance
 815-23  division and appropriated funds, shall be deposited outside the
 815-24  treasury with the Texas Treasury Safekeeping Trust Company.
 815-25  (V.A.C.S. Art.  4413(501), Sec. 3.06(a).)
 815-26        Sec. 2306.119.  SELECTION OF DEPOSITORY FOR OPERATING FUNDS.
 815-27  (a)  The department shall choose a depository for the operating
  816-1  funds of the housing finance division after inviting bids for
  816-2  favorable interest rates.
  816-3        (b)  The housing finance division shall publish notice in at
  816-4  least one newspaper of general circulation in this state no later
  816-5  than the 14th day before the last day set for the receipt of the
  816-6  bids.
  816-7        (c)  Notice published under this section must state the:
  816-8              (1)  types of deposits planned;
  816-9              (2)  last day on which bids will be received; and
 816-10              (3)  time and place for opening bids.
 816-11        (d)  Sealed bids must be:
 816-12              (1)  identified on the envelope as bids; and
 816-13              (2)  submitted to the housing finance division before
 816-14  the deadline for receiving bids.
 816-15        (e)  The housing finance division shall provide a tabulation
 816-16  of all submitted bids for public inspection.
 816-17        (f)  The department shall choose the depository submitting
 816-18  the bid with the most favorable financial terms to the department,
 816-19  considering the security and efficiency with which the depository
 816-20  is capable of managing the department's funds.  (V.A.C.S.  Art.
 816-21  4413(501), Secs. 3.06(b), (c), (d).)
 816-22        Sec. 2306.120.  SELECTION OF DEPOSITORY UNDER COVENANTS OF
 816-23  BONDS OR TRUST INDENTURES.  (a)  If covenants related to the
 816-24  department's bonds or the trust indentures governing the bonds
 816-25  specify one or more depositories or set out a method of selecting
 816-26  depositories different from the method required by this subchapter,
 816-27  the covenants prevail regarding the funds to which they apply and
  817-1  the funds are not required to be deposited with the Texas Treasury
  817-2  Safekeeping Trust Company.
  817-3        (b)  Bonds of the housing finance division issued under trust
  817-4  indentures executed or resolutions adopted on or after September 1,
  817-5  1991, may not include a covenant that interferes with the deposit
  817-6  of funds in the Texas Treasury Safekeeping Trust Company.
  817-7  (V.A.C.S. Art. 4413(501), Sec. 3.06(e).)
  817-8        Sec. 2306.121.  RECORDS.  The housing finance division shall
  817-9  keep complete records and accounts of its business transactions
 817-10  according to generally accepted accounting principles.  (V.A.C.S.
 817-11  Art. 4413(501), Sec. 3.07.)
 817-12        Sec. 2306.122.  ANNUAL REPORT.  (a)  The housing finance
 817-13  division shall examine:
 817-14              (1)  the ethnicity and income of applicants and
 817-15  recipients under housing finance division programs; and
 817-16              (2)  the amount funded for and the geographic location
 817-17  of housing units assisted by programs of the housing finance
 817-18  division.
 817-19        (b)  This section does not require a borrower to disclose the
 817-20  borrower's race or ethnicity if that information is protected from
 817-21  disclosure under state or federal law.
 817-22        (c)  The department shall publish the findings made under
 817-23  this section in an annual report made to the board and available to
 817-24  the general public.  (V.A.C.S. Art. 4413(501), Sec. 3.08.)
 817-25        Sec. 2306.123.  AREA MEDIAN INCOME.  The department may
 817-26  determine the median income of an individual or family for an area
 817-27  by using a source or methodology acceptable under federal law or
  818-1  rule.  (V.A.C.S. Art. 4413(501), Sec. 3.10.)
  818-2        Sec. 2306.124.  RULES REGARDING HOUSING DEVELOPMENTS.  The
  818-3  department may adopt and publish rules regarding the:
  818-4              (1)  making of mortgage loans under this subchapter;
  818-5              (2)  regulation of borrowers;
  818-6              (3)  construction of ancillary commercial facilities;
  818-7  and
  818-8              (4)  resale and disposition of real property, or an
  818-9  interest in the property, that is financed by the department.
 818-10  (V.A.C.S. Art. 4413(501), Sec. 3.11(c).)
 818-11        Sec. 2306.125.  COURT ACTIONS.  (a)  The department may
 818-12  institute a judicial action or proceeding against a housing sponsor
 818-13  receiving a loan or owning a housing development under this chapter
 818-14  to:
 818-15              (1)  enforce this chapter;
 818-16              (2)  enforce the terms and provisions of an agreement
 818-17  or contract between the department and the recipient of a loan
 818-18  under this chapter, including provisions regarding rental or
 818-19  carrying charges and income limits as applied to tenants or
 818-20  occupants;
 818-21              (3)  foreclose its mortgage; or
 818-22              (4)  protect:
 818-23                    (A)  the public interest;
 818-24                    (B)  individuals and families of low and very low
 818-25  income or families of moderate income;
 818-26                    (C)  stockholders; or
 818-27                    (D)  creditors of the sponsor.
  819-1        (b)  In an action or proceeding under this section, the
  819-2  department may apply for the appointment of a trustee or receiver
  819-3  to assume the management and operation of the affairs of a housing
  819-4  sponsor.
  819-5        (c)  The department, through its designated agent, may accept
  819-6  appointment as trustee or receiver of a housing sponsor when
  819-7  appointed by a court of competent jurisdiction.  (V.A.C.S. Art.
  819-8  4413(501), Sec. 3.11(e).)
  819-9        Sec. 2306.126.  EXEMPTION FROM PROPERTY TAX.  (a)  The
 819-10  department may, under its terms, conditions, and rules, pay public
 819-11  agencies in lieu of ad valorem taxes on property that the
 819-12  department acquires through foreclosure or sale under a deed of
 819-13  trust.
 819-14        (b)  The department shall make payments under this section
 819-15  instead of paying taxes whenever practicable with money lawfully
 819-16  available for this purpose, subject to the provisions of any bond
 819-17  resolution.  (V.A.C.S. Art. 4413(501), Sec. 3.09.)
 819-18          (Sections 2306.127-2306.140 reserved for expansion)
 819-19     SUBCHAPTER G.  HOUSING FINANCE DIVISION:  GENERAL POWERS AND
 819-20                            DUTIES OF BOARD
 819-21        Sec. 2306.141.  RULES.  The board shall adopt rules governing
 819-22  the administration of the housing finance division and its
 819-23  programs.  (V.A.C.S.  Art. 4413(501), Sec. 3.02 (part).)
 819-24        Sec. 2306.142.  AUTHORIZATION OF BONDS.  In its discretion,
 819-25  the board shall authorize all bonds issued by the housing finance
 819-26  division.  (V.A.C.S. Art. 4413(501), Sec. 3.02 (part).)
 819-27        Sec. 2306.143.  ANNUAL REPORT.  The board must approve an
  820-1  annual report of the housing finance division.  (V.A.C.S. Art.
  820-2  4413(501), Sec. 3.02 (part).)
  820-3        Sec. 2306.144.  FEES FOR SERVICES AND FACILITIES; PAYMENT OF
  820-4  DEPARTMENT OBLIGATIONS AND EXPENSES.  (a)  The board shall
  820-5  establish and collect sufficient fees for services and facilities.
  820-6        (b)  The board shall use available sources of revenue,
  820-7  income, and receipts to:
  820-8              (1)  pay all expenses of the department's operation and
  820-9  maintenance;
 820-10              (2)  pay the principal and interest on department
 820-11  bonds; and
 820-12              (3)  create and maintain the reserves or funds provided
 820-13  by each resolution authorizing the issuance of department bonds.
 820-14  (V.A.C.S. Art. 4413(501), Sec.  3.37 (part).)
 820-15        Sec. 2306.145.  LOAN PROCEDURES.  The board shall adopt
 820-16  procedures for approving loans, purchases of loans and interests in
 820-17  loans, and commitments to purchase loans under this chapter.
 820-18  (V.A.C.S. Art. 4413(501), Sec. 3.02 (part).)
 820-19        Sec. 2306.146.  INTEREST RATES AND AMORTIZATION SCHEDULES.
 820-20  The board shall establish interest rates and amortization schedules
 820-21  for loans made or financed under this chapter.  (V.A.C.S. Art.
 820-22  4413(501), Sec. 3.02 (part).)
 820-23        Sec. 2306.147.  FEES AND PENALTIES.  The board shall
 820-24  establish a schedule of fees and penalties relating to the
 820-25  operation of the housing finance division and authorized by this
 820-26  chapter, including application, processing, loan commitment,
 820-27  origination, servicing, and administrative fees.  (V.A.C.S. Art.
  821-1  4413(501), Sec. 3.02 (part).)
  821-2        Sec. 2306.148.  UNDERWRITING STANDARDS.  The board shall
  821-3  adopt underwriting standards for loans made or financed by the
  821-4  housing finance division.  (V.A.C.S. Art. 4413(501), Sec. 3.02
  821-5  (part).)
  821-6        Sec. 2306.149.  APPROVED MORTGAGE LENDERS.  The board shall
  821-7  compile a list of approved mortgage lenders.  (V.A.C.S. Art.
  821-8  4413(501), Sec. 3.02 (part).)
  821-9        Sec. 2306.150.  PROPERTY STANDARDS.  The board shall adopt
 821-10  minimum property standards for housing developments financed or
 821-11  acquired under this chapter.  (V.A.C.S. Art. 4413(501), Sec. 3.02
 821-12  (part).)
 821-13        Sec. 2306.151.  TARGET STRATEGY FOR BOND PROCEEDS.  The board
 821-14  shall adopt a target strategy for the percentage of mortgage
 821-15  revenue bond proceeds to be made available to individuals and
 821-16  families of low and very low income.  (V.A.C.S. Art. 4413(501),
 821-17  Sec. 3.02 (part).)
 821-18        Sec. 2306.152.  ELIGIBILITY CRITERIA.  The board shall
 821-19  establish eligibility criteria for participation in the housing
 821-20  finance division's programs for individuals and families of low and
 821-21  very low income and families of moderate income.  (V.A.C.S. Art.
 821-22  4413(501), Sec. 3.02 (part).)
 821-23          (Sections 2306.153-2306.170 reserved for expansion)
 821-24       SUBCHAPTER H.  HOUSING FINANCE DIVISION:  GENERAL POWERS
 821-25                       AND DUTIES OF DEPARTMENT
 821-26        Sec. 2306.171.  GENERAL DUTIES OF DEPARTMENT RELATING TO
 821-27  PURPOSES OF HOUSING FINANCE DIVISION.  The department shall:
  822-1              (1)  develop policies and programs designed to increase
  822-2  the number of individuals and families of low and very low income
  822-3  that participate in the housing finance division's programs;
  822-4              (2)  work with municipalities, public agencies, housing
  822-5  sponsors, and nonprofit corporations to provide:
  822-6                    (A)  information on division programs; and
  822-7                    (B)  technical assistance to municipalities and
  822-8  nonprofit corporations;
  822-9              (3)  encourage private and nonprofit corporations and
 822-10  state organizations to match the division's funds to assist in
 822-11  providing affordable housing to individuals and families of low and
 822-12  very low income and families of moderate income;
 822-13              (4)  provide matching funds to municipalities, public
 822-14  agencies, housing sponsors, and nonprofit developers who qualify
 822-15  under the division's programs; and
 822-16              (5)  administer the state's allocation of federal funds
 822-17  provided under the rental rehabilitation grant program authorized
 822-18  by Section 17, Title I, of the United States Housing Act of 1937
 822-19  (42 U.S.C. Section 1437o).  (V.A.C.S. Art. 4413(501), Secs. 3.04,
 822-20  3.44.)
 822-21        Sec. 2306.172.  ACQUISITION AND USE OF MONEY; DEPOSITORIES.
 822-22  The department may:
 822-23              (1)  acquire, hold, invest, deposit, use, and spend its
 822-24  income and money from every source; and
 822-25              (2)  select its depository or depositories, subject
 822-26  only to the provisions of:
 822-27                    (A)  this chapter; and
  823-1                    (B)  a covenant relating to the department's
  823-2  bonds issued by the housing finance division.  (V.A.C.S. Art.
  823-3  4413(501), Sec. 3.03 (part).)
  823-4        Sec. 2306.173.  INVESTMENTS.  Subject to a resolution
  823-5  authorizing issuance of its bonds, the department may:
  823-6              (1)  invest its money in bonds, obligations, or other
  823-7  securities; or
  823-8              (2)  place its money in demand or time deposits,
  823-9  whether or not evidenced by certificates of deposit.  (V.A.C.S.
 823-10  Art. 4413(501), Sec. 3.03 (part).)
 823-11        Sec. 2306.174.  ACQUISITION AND DISPOSITION OF PROPERTY.  The
 823-12  department may:
 823-13              (1)  acquire, own, rent, lease, accept, hold, or
 823-14  dispose of any real, personal, or mixed property, or any interest
 823-15  in property, including a right or easement, in performing its
 823-16  duties and exercising its powers under this chapter, by purchase,
 823-17  exchange, gift, assignment, transfer, foreclosure, sale, lease, or
 823-18  otherwise;
 823-19              (2)  hold, manage, operate, or improve real, personal,
 823-20  or mixed property, except that:
 823-21                    (A)  the department is restricted in acquiring
 823-22  property under Section 2306.251 unless it is required to foreclose
 823-23  on a delinquent loan and elects to acquire the property at
 823-24  foreclosure;
 823-25                    (B)  the department shall make a diligent effort
 823-26  to sell a housing development acquired through foreclosure to a
 823-27  purchaser who will be required to pay ad valorem taxes on the
  824-1  housing development or, if such a purchaser cannot be found, to
  824-2  another purchaser; and
  824-3                    (C)  the department shall sell a housing
  824-4  development acquired through foreclosure not later than the third
  824-5  anniversary of the date of acquisition unless the board adopts a
  824-6  resolution stating that a purchaser cannot be found after diligent
  824-7  search by the housing finance division, in which case the
  824-8  department shall continue to try to find a purchaser and shall sell
  824-9  the housing development when a purchaser is found; and
 824-10              (3)  lease or rent land or a dwelling, house,
 824-11  accommodation, building, structure, or facility from a private
 824-12  party to carry out the housing finance division's purposes.
 824-13  (V.A.C.S. Art. 4413(501), Sec. 3.03 (part).)
 824-14        Sec. 2306.175.  TRANSFER AND DISPOSITION OF PROPERTY; MANNER
 824-15  OF SALE.  (a)  The department may:
 824-16              (1)  sell, assign, lease, encumber, mortgage, or
 824-17  otherwise dispose of real, personal, or mixed property, or an
 824-18  interest in property, or a deed of trust or mortgage lien interest
 824-19  owned by it or in its control, custody, or possession; and
 824-20              (2)  release or relinquish a right, title, claim, lien,
 824-21  interest, easement, or demand acquired in any manner, including an
 824-22  equity or right of redemption in property foreclosed by it.
 824-23        (b)  Notwithstanding any other law, the department may, under
 824-24  this section, conduct a public or private sale, with or without
 824-25  public bidding.  (V.A.C.S. Art. 4413(501), Sec. 3.03 (part).)
 824-26        Sec. 2306.176.  FEES.  The department may set, charge, and
 824-27  collect fees relating to loans made or other services provided by
  825-1  the department under this chapter.  (V.A.C.S. Art. 4413(501), Sec.
  825-2  3.03 (part).)
  825-3        Sec. 2306.177.  HEARINGS.  The department may:
  825-4              (1)  conduct hearings; and
  825-5              (2)  take testimony and proof, under oath, at public
  825-6  hearings, on matters necessary to carry out the housing finance
  825-7  division's purposes.  (V.A.C.S. Art. 4413(501), Sec. 3.03 (part).)
  825-8        Sec. 2306.178.  INSURANCE.  The department may acquire, and
  825-9  pay premiums on, insurance of any kind in amounts and from insurers
 825-10  that the board considers necessary or advisable.  (V.A.C.S. Art.
 825-11  4413(501), Sec. 3.03 (part).)
 825-12        Sec. 2306.179.  INVESTIGATIONS.  The department may:
 825-13              (1)  investigate housing conditions and means for
 825-14  improving those conditions; and
 825-15              (2)  determine the location of slum or blighted areas.
 825-16  (V.A.C.S. Art. 4413(501), Sec. 3.03 (part).)
 825-17        Sec. 2306.180.  ENCOURAGING HOME OWNERSHIP.  The department
 825-18  may encourage individual or cooperative home ownership among
 825-19  individuals and families of low and very low income and families of
 825-20  moderate income.  (V.A.C.S. Art. 4413(501), Sec. 3.03 (part).)
 825-21        Sec. 2306.181.  TARGETING BOND PROCEEDS.  The department may
 825-22  target the proceeds from housing bonds issued by it to a geographic
 825-23  area or areas of the state.  (V.A.C.S. Art. 4413(501), Sec. 3.03
 825-24  (part).)
 825-25        Sec. 2306.182.  LOANS TO LENDERS.  The department may make
 825-26  loans to mortgage lenders, public agencies, or other housing
 825-27  sponsors and use the proceeds to make loans for multifamily housing
  826-1  developments that will be substantially occupied by individuals and
  826-2  families of low and very low income or families of moderate income.
  826-3  (V.A.C.S. Art. 4413(501), Sec. 3.03 (part).)
  826-4        Sec. 2306.183.  NEEDS OF QUALIFYING INDIVIDUALS AND FAMILIES
  826-5  IN RURAL AREAS AND SMALL MUNICIPALITIES.  The department may adopt
  826-6  a target strategy to ensure that the credit and housing needs of
  826-7  qualifying individuals and families who reside in rural areas and
  826-8  small municipalities are equitably served by the housing finance
  826-9  division.  (V.A.C.S. Art. 4413(501), Sec. 3.03 (part).)
 826-10          (Sections 2306.184-2306.200 reserved for expansion)
 826-11            SUBCHAPTER I.  HOUSING FINANCE DIVISION:  FUNDS
 826-12        Sec. 2306.201.  HOUSING TRUST FUND.  (a)  The housing trust
 826-13  fund is a fund:
 826-14              (1)  administered by the department through the housing
 826-15  finance division; and
 826-16              (2)  placed with the Texas Treasury Safekeeping Trust
 826-17  Company.
 826-18        (b)  The fund consists of:
 826-19              (1)  appropriations or transfers made to the fund;
 826-20              (2)  unencumbered fund balances; and
 826-21              (3)  public or private gifts or grants.  (V.A.C.S. Art.
 826-22  4413(501), Sec. 3.16(a) (part).)
 826-23        Sec. 2306.202.  USE OF HOUSING TRUST FUND.  (a)  The
 826-24  department, through the housing finance division, shall use the
 826-25  housing trust fund to provide loans, grants, or other comparable
 826-26  forms of assistance to local units of government, public housing
 826-27  authorities, nonprofit organizations, and income-eligible
  827-1  individuals, families, and households to finance, acquire,
  827-2  rehabilitate, and develop decent, safe, and sanitary housing.
  827-3        (b)  Use of the fund is limited to providing:
  827-4              (1)  assistance for individuals and families of low and
  827-5  very low income; and
  827-6              (2)  technical assistance and capacity building to
  827-7  nonprofit organizations engaged in developing housing for
  827-8  individuals and families of low and very low income.  (V.A.C.S.
  827-9  Art. 4413(501), Sec. 3.16(b).)
 827-10        Sec. 2306.203.  RULES REGARDING ADMINISTRATION OF HOUSING
 827-11  TRUST FUND.  The board shall adopt rules to administer the housing
 827-12  trust fund, including rules providing:
 827-13              (1)  that the division give priority to programs that
 827-14  maximize federal resources;
 827-15              (2)  for a process to set priorities for use of the
 827-16  fund, including the distribution of fund resources under a request
 827-17  for a proposal process developed and approved by the board;
 827-18              (3)  that the criteria used to rank proposals will
 827-19  include the:
 827-20                    (A)  leveraging of federal resources;
 827-21                    (B)  cost-effectiveness of a proposed
 827-22  development; and
 827-23                    (C)  extent to which individuals and families of
 827-24  very low income are served by the development;
 827-25              (4)  that funds may not be made available to a
 827-26  development that permanently and involuntarily displaces
 827-27  individuals and families of low income;
  828-1              (5)  that the board attempt to allocate funds to
  828-2  achieve a broad geographical distribution with:
  828-3                    (A)  special emphasis on equitably serving rural
  828-4  and nonmetropolitan areas; and
  828-5                    (B)  consideration of the number and percentage
  828-6  of income-qualified families in different geographical areas; and
  828-7              (6)  that multifamily housing developed or
  828-8  rehabilitated through the fund remain affordable to
  828-9  income-qualified households for at least 20 years.  (V.A.C.S. Art.
 828-10  4413(501), Sec. 3.16(c).)
 828-11        Sec. 2306.204.  INDEPENDENT AUDIT OF HOUSING TRUST FUND.  (a)
 828-12  An independent auditor shall annually conduct an audit of the
 828-13  housing trust fund to determine the amount of unencumbered fund
 828-14  balances that is greater than the amount required for the reserve
 828-15  fund.
 828-16        (b)  The independent auditor shall submit the audit report to
 828-17  the board not later than December 31 of each year.  (V.A.C.S. Art.
 828-18  4413(501), Sec. 3.16(d).)
 828-19        Sec. 2306.205.  TRANSFER OF MONEY TO HOUSING TRUST FUND.  (a)
 828-20  Except as provided by Subsections (c), (d), and (e), not later than
 828-21  January 10 of each year the housing finance division shall transfer
 828-22  to the housing trust fund an amount, as determined by the audit
 828-23  report prepared under Section 2306.204, equal to one-half of the
 828-24  housing finance division's unencumbered fund balances in excess of
 828-25  two percent of the division's total bonded indebtedness that is not
 828-26  rated on its own merits in the highest long-term debt rating
 828-27  category by one or more nationally recognized rating agencies.
  829-1        (b)  The department shall determine the unencumbered fund
  829-2  balance under Subsection (a) according to the debt rating criteria
  829-3  established for housing finance agencies by one or more nationally
  829-4  recognized rating agencies.
  829-5        (c)  If, at the time an annual audit required by Section
  829-6  2306.204 is concluded, the housing finance division's unencumbered
  829-7  fund balances exceed four percent of its total bonded indebtedness
  829-8  that is not rated on its own merits in the highest long-term debt
  829-9  rating category, the department shall transfer not later than
 829-10  January 10 of the next year all amounts in excess of that four
 829-11  percent.
 829-12        (d)  If, at the time an annual audit required by Section
 829-13  2306.204 is concluded, a nationally recognized rating agency has
 829-14  recommended that the housing finance division maintain unencumbered
 829-15  fund balances in excess of the amount permitted by Subsection (a)
 829-16  to achieve or maintain a rating of at least Aa/A+ on all or a
 829-17  portion of the bonded indebtedness of the housing finance division
 829-18  that is issued under an open indenture or an open flow of funds,
 829-19  the department shall transfer not later than January 10 of the next
 829-20  year all amounts in excess of the amount required by the rating
 829-21  agency to be held as unencumbered fund balances.
 829-22        (e)  If, at the time an annual audit required by Section
 829-23  2306.204 is concluded, a nationally recognized rating agency has
 829-24  recommended that the housing finance division increase the amount
 829-25  of its unencumbered fund balances to achieve or maintain a
 829-26  financially sound condition or to prevent a decrease in the
 829-27  long-term debt rating maintained on all or a portion of the housing
  830-1  finance division's bonded indebtedness, the housing finance
  830-2  division may not make further annual transfers to the housing trust
  830-3  fund until all requirements and conditions of the rating agency
  830-4  have been met.  (V.A.C.S. Art. 4413(501), Secs. 3.16(e), (f), (g),
  830-5  (h).)
  830-6        Sec. 2306.206.  HOUSING TRUST FUND NOT SUBJECT TO TEXAS TRUST
  830-7  CODE.  The housing trust fund provided for by this subchapter is
  830-8  not subject to Subtitle B, Title 9, Property Code.  (V.A.C.S. Art.
  830-9  4413(501), Sec. 3.16(i).)
 830-10        Sec. 2306.207.  RESERVE FUND.  (a)  The housing finance
 830-11  division may create a reserve fund with the state treasurer out of:
 830-12              (1)  proceeds from the sale of the division's bonds; or
 830-13              (2)  other resources.
 830-14        (b)  The reserve fund is additional security for the
 830-15  division's bonds.  (V.A.C.S. Art. 4413(501), Sec. 1.02(24) (part).)
 830-16          (Sections 2306.208-2306.220 reserved for expansion)
 830-17               SUBCHAPTER J.  HOUSING FINANCE DIVISION:
 830-18                       LOAN TERMS AND CONDITIONS
 830-19        Sec. 2306.221.  HOUSING DEVELOPMENT LOANS.  To finance the
 830-20  purchase, construction, remodeling, improvement, or rehabilitation
 830-21  of housing developments for residential housing designed and
 830-22  planned for individuals and families of low and very low income and
 830-23  families of moderate income, the department, on the terms and
 830-24  conditions stated in this chapter, may:
 830-25              (1)  make, commit to make, and participate in the
 830-26  making of mortgage loans, including federally insured loans to
 830-27  housing sponsors; and
  831-1              (2)  make temporary loans and advances in anticipation
  831-2  of permanent mortgage loans.  (V.A.C.S. Art. 4413(501), Sec.
  831-3  3.11(b).)
  831-4        Sec. 2306.222.  CONTRACTS AND AGREEMENTS REGARDING HOUSING
  831-5  DEVELOPMENTS.  The department may enter into agreements and
  831-6  contracts with housing sponsors and mortgage lenders under this
  831-7  chapter to make or participate in mortgage loans for residential
  831-8  housing for individuals and families of low and very low income and
  831-9  families of moderate income.  (V.A.C.S. Art. 4413(501), Sec.
 831-10  3.11(d).)
 831-11        Sec. 2306.223.  Criteria for Financing Housing Development of
 831-12  Housing Sponsor.  Notwithstanding any other provision of this
 831-13  chapter, the department may not finance a housing development
 831-14  undertaken by a housing sponsor under this chapter, unless the
 831-15  department first determines that:
 831-16              (1)  the housing development is necessary to provide
 831-17  needed decent, safe, and sanitary housing at rentals or prices that
 831-18  individuals or families of low and very low income or families of
 831-19  moderate income can afford;
 831-20              (2)  the housing sponsor undertaking the proposed
 831-21  housing development will supply well-planned and well-designed
 831-22  housing for individuals or families of low and very low income or
 831-23  families of moderate income;
 831-24              (3)  the housing sponsor is financially responsible;
 831-25              (4)  the financing of the housing development is a
 831-26  public purpose and will provide a public benefit; and
 831-27              (5)  the housing development will be undertaken within
  832-1  the authority granted by this chapter to the housing finance
  832-2  division and the housing sponsor.  (V.A.C.S. Art. 4413(501), Sec.
  832-3  3.23.)
  832-4        Sec. 2306.224.  LOAN TERMS AND CONDITIONS.  A loan financed
  832-5  through a program of the housing finance division under this
  832-6  subchapter is subject to the terms and conditions provided by this
  832-7  subchapter.   (V.A.C.S. Art. 4413(501), Sec. 3.12(a).)
  832-8        Sec. 2306.225.  RATIO OF LOAN TO DEVELOPMENT COST;
  832-9  AMORTIZATION PERIOD.  (a)  Except as provided by Subsection (b),
 832-10  the ratio of loan to total housing development cost and the
 832-11  amortization period of a loan insured or guaranteed by the federal
 832-12  government is governed by the federal government mortgage insurance
 832-13  commitment or federal guarantee for each housing development.
 832-14        (b)  The amortization period for a loan may not exceed 40
 832-15  years.  (V.A.C.S.  Art. 4413(501), Sec. 3.12(b).)
 832-16        Sec. 2306.226.  INTEREST RATES.  (a)  The board shall set the
 832-17  interest rates at which the housing finance division makes loans
 832-18  and loan commitments.
 832-19        (b)  The interest rates shall be set to produce, when
 832-20  combined with other available funds, at least the amounts required
 832-21  to pay for the housing finance division's costs of operation and to
 832-22  meet its covenants with and responsibilities to the holders of its
 832-23  bonds.  (V.A.C.S.  Art. 4413(501), Sec. 3.12(d) (part).)
 832-24        Sec. 2306.227.  PREPAYMENT OF MORTGAGE LOANS.  A mortgage
 832-25  loan made under this chapter may be prepaid to maturity after the
 832-26  period of years and under the terms and conditions determined by
 832-27  the board.  (V.A.C.S. Art. 4413(501), Sec. 3.12(c).)
  833-1        Sec. 2306.228.  LOAN FEES.  The department shall make and
  833-2  collect loan fees that the department determines are reasonable,
  833-3  including:
  833-4              (1)  fees to reimburse the housing finance division's
  833-5  financing costs;
  833-6              (2)  service charges;
  833-7              (3)  insurance premiums;
  833-8              (4)  mortgage insurance premiums; and
  833-9              (5)  fees for administrative costs.  (V.A.C.S. Art.
 833-10  4413(501), Sec. 3.12(d) (part).)
 833-11        Sec. 2306.229.  DOCUMENTS SUPPORTING MORTGAGE LOANS.  (a)  A
 833-12  mortgage loan shall be evidenced by a mortgage or deed of trust
 833-13  note or bond and by a mortgage that creates a lien on the housing
 833-14  development and on all real property that constitutes the site of
 833-15  or that relates to the housing development.
 833-16        (b)  A note or bond and a mortgage or deed of trust:
 833-17              (1)  must contain provisions satisfactory to the
 833-18  department;
 833-19              (2)  must be in a form satisfactory to the department;
 833-20  and
 833-21              (3)  may contain exculpatory provisions relieving the
 833-22  borrower or its principal from personal liability if the department
 833-23  agrees.  (V.A.C.S. Art. 4413(501), Sec. 3.12(e).)
 833-24        Sec. 2306.230.  AGREEMENTS REGARDING CERTAIN LIMITATIONS ON
 833-25  HOUSING SPONSORS.  A mortgage loan is subject to an agreement
 833-26  between the department and the housing sponsor that subjects the
 833-27  sponsor and its principals or stockholders to limitations
  834-1  established by the department regarding:
  834-2              (1)  rentals and other charges;
  834-3              (2)  builders' and developers' profits and fees;
  834-4              (3)  the disposition of its property; and
  834-5              (4)  the real property that constitutes the site of or
  834-6  relates to the housing development.  (V.A.C.S. Art. 4413(501), Sec.
  834-7  3.12(f).)
  834-8        Sec. 2306.231.  LOAN CONDITIONS RELATING TO DEPARTMENT
  834-9  POWERS.  As a condition of each loan, the department, acting
 834-10  through the housing finance division, may at any time during the
 834-11  construction, rehabilitation, or operation of a housing
 834-12  development:
 834-13              (1)  enter and inspect the housing development to:
 834-14                    (A)  investigate the development's:
 834-15                          (i)  physical and financial condition;
 834-16                          (ii)  construction;
 834-17                          (iii)  rehabilitation;
 834-18                          (iv)  operation;
 834-19                          (v)  management; and
 834-20                          (vi)  maintenance; and
 834-21                    (B)  examine all books and records relating to:
 834-22                          (i)  capitalization;
 834-23                          (ii)  income; and
 834-24                          (iii)  other matters regarding
 834-25  capitalization or income;
 834-26              (2)  impose charges that are required to cover the cost
 834-27  of inspections and examinations under Subdivision (1);
  835-1              (3)  order alterations, changes, or repairs necessary
  835-2  to protect:
  835-3                    (A)  the security of the department's investment
  835-4  in a housing development; or
  835-5                    (B)  the health, safety, and welfare of the
  835-6  occupants of a housing development;
  835-7              (4)  order a managing agent, housing development
  835-8  manager, or housing development owner to do whatever is necessary
  835-9  to comply with or refrain from violating an applicable law,
 835-10  ordinance, department rule, or term of an agreement regarding the
 835-11  housing development; and
 835-12              (5)  file and prosecute a complaint against a managing
 835-13  agent, housing development manager, or housing development owner
 835-14  for a violation of any applicable law or ordinance.  (V.A.C.S. Art.
 835-15  4413(501), Sec. 3.12(g).)
 835-16        Sec. 2306.232.  TEXAS HOUSING AGENCY LOAN OR GUARANTEE.  A
 835-17  loan or guarantee made by the Texas Housing Agency becomes a loan
 835-18  or guarantee of the housing finance division.  (Ch. 762, Acts of
 835-19  the 72nd Leg., R.S., 1991, Sec. 23(c).)
 835-20          (Sections 2306.233-2306.250 reserved for expansion)
 835-21      SUBCHAPTER K.  HOUSING FINANCE DIVISION:  HOUSING PROGRAMS
 835-22        Sec. 2306.251.  PROPERTY OWNERSHIP PROGRAM.  (a)  The
 835-23  department may acquire and own real property on an interim basis
 835-24  for sale or rental to:
 835-25              (1)  individuals and families of low and very low
 835-26  income; and
 835-27              (2)  nonprofit housing organizations and other housing
  836-1  organizations to serve the needs of individuals and families of low
  836-2  and very low income.
  836-3        (b)  Property acquired by the department must qualify for
  836-4  home mortgage insurance after rehabilitation.
  836-5        (c)  The housing finance division may use money from the
  836-6  housing trust fund or unencumbered fund balances to purchase
  836-7  property under this section.  The division may not use more than 10
  836-8  percent of the yearly balance of the housing trust fund to acquire
  836-9  real property.
 836-10        (d)  If the department acquires property under this section,
 836-11  the housing finance division shall have an independent audit
 836-12  conducted annually to analyze the property ownership program's:
 836-13              (1)  financial stability;
 836-14              (2)  cost-effectiveness; and
 836-15              (3)  effectiveness in serving individuals of low and
 836-16  very low income.  (V.A.C.S.  Art. 4413(501), Sec. 3.17.)
 836-17        Sec. 2306.252.  LOW AND VERY LOW INCOME HOUSING RESOURCE
 836-18  CENTER.  (a)  The board shall establish a low and very low income
 836-19  housing resource center in the housing finance division.
 836-20        (b)  The center shall:
 836-21              (1)  provide educational material to housing advocates,
 836-22  housing sponsors, borrowers, and tenants;
 836-23              (2)  provide technical assistance to nonprofit housing
 836-24  sponsors;
 836-25              (3)  focus on marketing loans and other programs of the
 836-26  housing finance division to individuals and families of low and
 836-27  very low income; and
  837-1              (4)  assist lenders in marketing loans to individuals
  837-2  and families of low and very low income.  (V.A.C.S.  Art.
  837-3  4413(501), Sec. 3.18.)
  837-4          (Sections 2306.253-2306.260 reserved for expansion)
  837-5               SUBCHAPTER L.  HOUSING FINANCE DIVISION:
  837-6                    REGULATION OF HOUSING SPONSORS
  837-7        Sec. 2306.261.  Supervising Housing Sponsors.  The housing
  837-8  finance division may, as provided by this subchapter, supervise:
  837-9              (1)  housing sponsors, including limited profit housing
 837-10  sponsors, of housing developments that are financed under this
 837-11  chapter and rented or leased to tenants; and
 837-12              (2)  real and personal property of sponsors.  (V.A.C.S.
 837-13  Art. 4413(501), Sec. 3.21(a).)
 837-14        Sec. 2306.262.  UNIFORM SYSTEMS OF ACCOUNTS AND RECORDS.  The
 837-15  department may require uniform systems of accounts and records for
 837-16  housing sponsors.  (V.A.C.S.  Art. 4413(501), Sec. 3.21(b) (part).)
 837-17        Sec. 2306.263.  REPORTING.  The department may require
 837-18  housing sponsors to:
 837-19              (1)  make reports and certifications of their
 837-20  expenditures; and
 837-21              (2)  answer specific questions on forms whenever
 837-22  necessary for the purposes of this chapter.  (V.A.C.S. Art.
 837-23  4413(501), Sec. 3.21(b) (part). )
 837-24        Sec. 2306.264.  INSPECTIONS AND EXAMINATIONS.  The
 837-25  department, through its agents or employees, may:
 837-26              (1)  enter and inspect, in whole or in part, the land,
 837-27  buildings, and equipment of a housing sponsor; and
  838-1              (2)  examine all records showing the capital structure,
  838-2  income, expenditures, and other payments of a housing sponsor.
  838-3  (V.A.C.S. Art.  4413(501), Sec. 3.21(c).)
  838-4        Sec. 2306.265.  OPERATION, MAINTENANCE, AND REPAIR.  The
  838-5  department may:
  838-6              (1)  supervise the operation and maintenance of a
  838-7  housing development; and
  838-8              (2)  order necessary repairs to protect the public
  838-9  interest or the health, welfare, or safety of the housing
 838-10  development occupants.  (V.A.C.S. Art. 4413(501), Sec. 3.21(d).)
 838-11        Sec. 2306.266.  FEES RELATING TO REGULATION.  The department
 838-12  may require a housing sponsor to pay the housing finance division
 838-13  fees for the cost of regulating the housing sponsor, including the
 838-14  cost of:
 838-15              (1)  examination;
 838-16              (2)  inspection;
 838-17              (3)  supervision; and
 838-18              (4)  auditing.  (V.A.C.S. Art. 4413(501), Sec.
 838-19  3.21(g).)
 838-20        Sec. 2306.267.  COMPLIANCE WITH APPLICABLE LAWS, RULES, AND
 838-21  CONTRACT TERMS.  The department may order a housing sponsor to
 838-22  perform or refrain from performing certain acts in order to comply
 838-23  with the law, housing finance division rules, or terms of a
 838-24  contract or agreement to which the housing sponsor is a party.
 838-25  (V.A.C.S. Art. 4413(501), Sec. 3.21(h).)
 838-26        Sec. 2306.268.  RENTS AND CHARGES.  The department shall
 838-27  approve and may change from time to time a schedule of rents and
  839-1  charges for a housing development operated by the department under
  839-2  Section 2306.251.  (V.A.C.S. Art. 4413(501), Sec. 3.21(e).)
  839-3        Sec. 2306.269.  TENANT AND MANAGER SELECTION.  The department
  839-4  shall set standards for tenant and management selection by a
  839-5  housing sponsor.  (V.A.C.S. Art. 4413(501), Sec.  3.21(f).)
  839-6        Sec. 2306.270.  REGULATION OF RETIREMENT OF CAPITAL
  839-7  INVESTMENT OR REDEMPTION OF STOCK.  The department shall regulate
  839-8  the retirement of a capital investment or the redemption of stock
  839-9  of a limited profit housing sponsor if the retirement or
 839-10  redemption, when added to a dividend or other distribution, exceeds
 839-11  in any one fiscal year the permitted percentage, as allowed by the
 839-12  housing finance division's rules, of the original face amount of
 839-13  the limited profit housing sponsor's investment or equity in a
 839-14  housing development.  (V.A.C.S. Art. 4413(501), Sec. 3.21(i).)
 839-15        Sec. 2306.271.  COST CONTROLS.  (a)  The housing finance
 839-16  division by rule shall specify the categories of costs allowable in
 839-17  the construction, reconstruction, remodeling, improvement, or
 839-18  rehabilitation of a housing development.
 839-19        (b)  The housing finance division shall require a housing
 839-20  sponsor to certify the actual housing development costs on
 839-21  completion of the housing development, subject to audit and
 839-22  determination by the department.
 839-23        (c)  The department may accept, instead of certification of
 839-24  housing development costs under Subsection (b), other assurances of
 839-25  the costs, in any form, that will enable the housing finance
 839-26  division to determine with reasonable accuracy the amount of the
 839-27  costs.
  840-1        (d)  In this section, "housing development costs" means the
  840-2  total of all costs incurred in financing, creating, or purchasing a
  840-3  housing development, including a single-family dwelling, approved
  840-4  by the department as reasonable and necessary.  The costs may
  840-5  include:
  840-6              (1)  the value of land and buildings on the land owned
  840-7  by the sponsor or the cost of acquiring land and buildings on the
  840-8  land, including payments for options, deposits, or contracts to
  840-9  purchase properties on the proposed housing site;
 840-10              (2)  costs of site preparation, demolition, and
 840-11  development;
 840-12              (3)  expenses relating to the issuance of bonds;
 840-13              (4)  fees paid or payable in connection with the
 840-14  planning, execution, and financing of the housing development,
 840-15  including fees to:
 840-16                    (A)  architects;
 840-17                    (B)  engineers;
 840-18                    (C)  attorneys;
 840-19                    (D)  accountants; or
 840-20                    (E)  the housing finance division on the
 840-21  department's behalf;
 840-22              (5)  costs of necessary studies, surveys, plans,
 840-23  permits, insurance, interest, financing, tax and assessment costs,
 840-24  and other operating and carrying costs during construction;
 840-25              (6)  costs of construction, rehabilitation,
 840-26  reconstruction, fixtures, furnishings, equipment, machinery, and
 840-27  apparatus related to the real property;
  841-1              (7)  costs of land improvements, including landscaping
  841-2  and off-site improvements, whether or not the costs have been paid
  841-3  in cash or in a form other than cash;
  841-4              (8)  necessary expenses for the initial occupancy of
  841-5  the housing development;
  841-6              (9)  a reasonable profit and risk fee in addition to
  841-7  job overhead to the general contractor or limited profit housing
  841-8  sponsor;
  841-9              (10)  an allowance established by the department for
 841-10  working capital and contingency reserves and reserves for
 841-11  anticipated operating deficits during the first two years of
 841-12  occupancy; and
 841-13              (11)  the cost of other items, including tenant
 841-14  relocation if tenant relocation costs are not otherwise provided
 841-15  for, that the department determines are reasonable and necessary
 841-16  for the development of the housing development, less net rents and
 841-17  other net revenues received from the operation of the real and
 841-18  personal property on the development site during construction.
 841-19  (V.A.C.S. Art. 4413(501), Secs. 1.02(9), 3.21(j).)
 841-20        Sec. 2306.272.  HOUSING SPONSOR INVESTMENTS.  (a)  A
 841-21  principal or stockholder of a housing sponsor may not earn, accept,
 841-22  or receive a per annum return on an investment in a housing
 841-23  development financed by the department greater than that allowed by
 841-24  department rule.
 841-25        (b)  A housing sponsor's equity in a housing development is
 841-26  the difference between the mortgage loan and the total housing
 841-27  development cost.
  842-1        (c)  The department shall establish a housing sponsor's
  842-2  equity when the final mortgage advance is made.
  842-3        (d)  For the purposes of this section, the amount established
  842-4  under Subsection (c) remains constant during the life of the
  842-5  department's mortgage on the development, except for additional
  842-6  equity investment made by the sponsor with the department's
  842-7  approval or at its order.
  842-8        (e)  In this section, "housing development costs" has the
  842-9  meaning assigned by Section 2306.271(d).  (V.A.C.S. Art. 4413(501),
 842-10  Sec. 3.12(h).)
 842-11        Sec. 2306.273.  LIMITATION ON APPLICATION OF CERTAIN
 842-12  PROVISIONS OF SUBCHAPTER.  Sections 2306.261-2306.271 do not apply
 842-13  to a housing development:
 842-14              (1)  for which individuals or families of low and very
 842-15  low income or families of moderate income receive a mortgage loan
 842-16  under this chapter; and
 842-17              (2)  that initially is intended for occupancy by those
 842-18  individuals or families.  (V.A.C.S. Art. 4413(501), Sec. 3.21(k).)
 842-19          (Sections 2306.274-2306.290 reserved for expansion)
 842-20               SUBCHAPTER M.  HOUSING FINANCE DIVISION:
 842-21                  PURCHASE AND SALE OF MORTGAGE LOANS
 842-22        Sec. 2306.291.  PURCHASE AND SALE OF MORTGAGE LOANS.  (a)
 842-23  The department may purchase and take assignments from mortgage
 842-24  lenders or the federal government of notes and mortgages evidencing
 842-25  loans or interest in loans for the construction, remodeling,
 842-26  improvement or rehabilitation, purchase, leasing, or refinancing of
 842-27  housing developments for individuals and families of low and very
  843-1  low income and families of moderate income.
  843-2        (b)  The department may sell, at public or private sale, with
  843-3  or without public bidding, a mortgage or other obligation held by
  843-4  the department.  (V.A.C.S. Art. 4413(501), Sec. 3.14.)
  843-5        Sec. 2306.292.  ELIGIBILITY OF MORTGAGE LOANS FOR PURCHASE.
  843-6  A mortgage loan or interest in a mortgage loan is not eligible for
  843-7  purchase by or on behalf of the department from a mortgage lender
  843-8  unless the mortgage lender certifies that the mortgage loan or
  843-9  interest in the mortgage loan is for a housing development for
 843-10  individuals or families of low and very low income or for families
 843-11  of moderate income.  (V.A.C.S. Art. 4413(501), Sec. 3.15(a).)
 843-12        Sec. 2306.293.  FEDERALLY ASSISTED MORTGAGE LOANS.  A
 843-13  mortgage loan or interest in a mortgage loan purchased or sold
 843-14  under this subchapter may include a mortgage loan that is insured,
 843-15  guaranteed, or assisted by the federal government, or a mortgage
 843-16  loan that the federal government has committed to insure,
 843-17  guarantee, or assist.  (V.A.C.S. Art. 4413(501), Sec. 3.15(c).)
 843-18        Sec. 2306.294.  MORTGAGE LOAN PURCHASE PRICE.  (a)  On
 843-19  purchasing a mortgage loan or interest in a mortgage loan from a
 843-20  mortgage lender, the department shall pay a purchase price equal to
 843-21  the outstanding principal balance, except that a discount from the
 843-22  principal balance or the payment of a premium may be used to
 843-23  produce a fair rate of return consistent with the obligations of
 843-24  the department and the purposes of this chapter.
 843-25        (b)  In addition to payment of the outstanding principal
 843-26  balance, the department shall pay the accrued interest due to the
 843-27  date on which the mortgage loan is delivered against payment.
  844-1  (V.A.C.S. Art. 4413(501), Sec. 3.15(b).)
  844-2        Sec. 2306.295.  RULES GOVERNING PURCHASE AND SALE OF MORTGAGE
  844-3  LOANS.  The department shall adopt rules governing the purchase and
  844-4  sale of mortgage loans and the application of sale proceeds,
  844-5  including rules governing:
  844-6              (1)  procedures for submitting requests or inviting
  844-7  proposals for the purchase and sale of mortgage loans or interest
  844-8  in the mortgage loans;
  844-9              (2)  restrictions on the number of family units,
 844-10  location, or other qualifications of residences to be financed by
 844-11  residential mortgage loans;
 844-12              (3)  income limits of individuals and families of low
 844-13  and very low income or families of moderate income occupying a
 844-14  residence financed by a residential mortgage loan;
 844-15              (4)  restrictions relating to the interest rates on
 844-16  mortgage loans or the return realized by mortgage lenders;
 844-17              (5)  requirements for commitments by mortgage lenders
 844-18  relating to mortgage loans;
 844-19              (6)  schedules of fees and charges necessary for
 844-20  expenses and reserves of the housing finance division;
 844-21              (7)  resale of the housing development; and
 844-22              (8)  any other matter related to the power of the
 844-23  department to purchase and sell mortgage loans or interests in
 844-24  mortgage loans.  (V.A.C.S. Art. 4413(501), Sec. 3.15(d).)
 844-25        Sec. 2306.296.  REVIEW AND SUBSTITUTION OF PURCHASED MORTGAGE
 844-26  LOANS.  (a)  The department shall review each mortgage loan
 844-27  purchased or financed by the department to determine if the loan
  845-1  meets:
  845-2              (1)  the conditions of this chapter;
  845-3              (2)  the department's rules; and
  845-4              (3)  any commitment made with the mortgage lender to
  845-5  purchase mortgage loans.
  845-6        (b)  The department may require the substitution of another
  845-7  mortgage loan if it determines that a loan does not comply with the
  845-8  criteria of Subsection (a).  (V.A.C.S. Art. 4413(501), Sec. 3.15(e)
  845-9  (part).)
 845-10        Sec. 2306.297.  APPLICATION OF PROVISIONS RELATING TO LOAN
 845-11  TERMS AND CONDITIONS.  Sections 2306.225-2306.229 apply to the
 845-12  purchase of mortgage loans.  (V.A.C.S. Art. 4413(501), Sec. 3.15(e)
 845-13  (part).)
 845-14          (Sections 2306.298-2306.310 reserved for expansion)
 845-15           SUBCHAPTER N.  HOUSING FINANCE DIVISION:  TENANTS
 845-16                        OF HOUSING DEVELOPMENTS
 845-17        Sec. 2306.311.  Admission to Housing Developments.  Admission
 845-18  to a housing development financed under this chapter that is leased
 845-19  to tenants is limited to individuals or families of low and very
 845-20  low income and families of moderate income.  (V.A.C.S. Art.
 845-21  4413(501), Sec. 3.22(a).)
 845-22        Sec. 2306.312.  EXAMINATION OF TENANT INCOME.  The department
 845-23  shall periodically examine, or require that a housing sponsor
 845-24  examine, the income of an individual or family residing as a tenant
 845-25  in a housing development.  (V.A.C.S. Art. 4413(501), Sec. 3.22(b)
 845-26  (part).)
 845-27        Sec. 2306.313.  TERMINATION OF TENANCY.  (a)  The department
  846-1  or, with the department's approval, the housing sponsor of a
  846-2  housing development may terminate the tenancy or interest of an
  846-3  individual or family whose gross income exceeds the income level
  846-4  allowed for admission by more than 25 percent for six months or
  846-5  more.
  846-6        (b)  A tenancy or interest of an individual or family in a
  846-7  housing development may not be terminated except on reasonable
  846-8  notice and opportunity to obtain suitable alternate housing under
  846-9  the department's rules.
 846-10        (c)  At the time notice of termination is given, the housing
 846-11  finance division shall provide information to the tenant on other
 846-12  division programs for which the tenant qualifies and shall
 846-13  encourage the tenant's participation in those programs.  (V.A.C.S.
 846-14  Art. 4413(501), Sec. 3.22(b) (part).)
 846-15        Sec. 2306.314.  CONTINUED OCCUPANCY ON PAYMENT OF SURCHARGE.
 846-16  An individual or family whose gross income would not otherwise
 846-17  permit continued occupancy of a dwelling unit may, with the
 846-18  department's approval, continue to occupy a dwelling unit on
 846-19  payment of a surcharge to the housing sponsor under a schedule of
 846-20  surcharges determined by the department.  (V.A.C.S. Art. 4413(501),
 846-21  Sec. 3.22(b) (part).)
 846-22        Sec. 2306.315.  DISCHARGE FROM LIABILITY; REIMBURSEMENT.  If
 846-23  an individual or family who resides in a cooperative housing
 846-24  development is required to move from the development because of
 846-25  excessive income, the individual or family must be:
 846-26              (1)  discharged from liability for any note, bond, or
 846-27  other evidence of indebtedness; and
  847-1              (2)  reimbursed, under department rules, for all sums
  847-2  paid to the housing sponsor on account of the:
  847-3                    (A)  purchase of stock or debentures as a
  847-4  condition of occupancy; or
  847-5                    (B)  acquisition of title for that purpose.
  847-6  (V.A.C.S. Art. 4413(501), Sec. 3.22(c).)
  847-7        Sec. 2306.316.  LIMITATION ON APPLICATION OF SUBCHAPTER.
  847-8  This subchapter does not apply to a housing development:
  847-9              (1)  for which individuals or families of low and very
 847-10  low income or families of moderate income receive a mortgage loan
 847-11  under this chapter; and
 847-12              (2)  that initially is intended for occupancy by those
 847-13  persons or families.  (V.A.C.S. Art. 4413(501), Sec. 3.22(d).)
 847-14          (Sections 2306.317-2306.330 reserved for expansion)
 847-15        SUBCHAPTER O.  HOUSING FINANCE DIVISION:  REGULATION OF
 847-16             MORTGAGE LENDERS, SERVICERS, AND CONTRACTORS
 847-17        Sec. 2306.331.  MORTGAGE LENDER SELECTION.  The department
 847-18  shall develop a process to select mortgage lenders that includes
 847-19  consideration of the lender's:
 847-20              (1)  distribution of loans by income and geographic
 847-21  region in past programs of the department or its predecessor; and
 847-22              (2)  rating under the Community Reinvestment Act of
 847-23  1977 (12 U.S.C.  Section 2901 et seq.).  (V.A.C.S. Art. 4413(501),
 847-24  Sec. 3.19.)
 847-25        Sec. 2306.332.  MONITORING MORTGAGE LENDERS.  The department
 847-26  shall develop a written plan to monitor and audit the performance
 847-27  of mortgage lenders.  The plan must include a requirement:
  848-1              (1)  that mortgage lenders comply with quality control
  848-2  standards established by appropriate federal agencies;
  848-3              (2)  for an audit of mortgage lenders' compliance with
  848-4  program guidelines to be conducted by random selection of loans and
  848-5  associated paperwork for review;
  848-6              (3)  for monitoring delinquency and foreclosure rates
  848-7  for currently participating mortgage lenders to identify
  848-8  unfavorable trends;
  848-9              (4)  for an extensive audit after a finding of an
 848-10  unfavorable trend under Subdivision (3); and
 848-11              (5)  for reporting the information gathered under this
 848-12  section to the director and the board.  (V.A.C.S. Art. 4413(501),
 848-13  Sec. 3.20(a).)
 848-14        Sec. 2306.333.  MONITORING MORTGAGE SERVICERS.  The housing
 848-15  finance division shall develop a written plan to monitor and audit
 848-16  the performance of mortgage servicers.  The plan must include:
 848-17              (1)  a method of developing criteria to evaluate the
 848-18  performance of servicers;
 848-19              (2)  a method of monitoring the performance of a
 848-20  servicer under the criteria developed under Subdivision (1);
 848-21              (3)  a requirement for a review of the financial
 848-22  statements of a servicer;
 848-23              (4)  a process for an extensive audit of servicers who
 848-24  repeatedly violate the terms of the servicers' contracts with the
 848-25  department;
 848-26              (5)  the designation of an audit team consisting of
 848-27  staff members from relevant areas of the housing finance division;
  849-1  and
  849-2              (6)  a method of reporting the information gathered
  849-3  under this section to the director and the board.  (V.A.C.S.
  849-4  Art. 4413(501), Sec. 3.20(b).)
  849-5        Sec. 2306.334.  MONITORING CONTRACTORS.  The department shall
  849-6  develop a written plan to monitor and audit the performance of real
  849-7  estate owned contractors and other contractors.  The plan must
  849-8  include:
  849-9              (1)  a requirement for a periodic inspection of
 849-10  foreclosed property;
 849-11              (2)  a method of monitoring contractors' performance of
 849-12  contract requirements; and
 849-13              (3)  a requirement for a periodic review of
 849-14  contractors' billing procedures.  (V.A.C.S. Art. 4413(501),
 849-15  Sec. 3.20(c).)
 849-16          (Sections 2306.335-2306.350 reserved for expansion)
 849-17            SUBCHAPTER P.  HOUSING FINANCE DIVISION BONDS:
 849-18                           ISSUANCE OF BONDS
 849-19        Sec. 2306.351.  ISSUANCE OF BONDS.  (a)  The department may
 849-20  issue bonds under this chapter and may:
 849-21              (1)  provide for and secure payment of the bonds;
 849-22              (2)  provide for the rights of the holders of the
 849-23  bonds, as permitted by this chapter and the Texas Constitution; and
 849-24              (3)  purchase, hold, cancel, resell, or otherwise
 849-25  dispose of its bonds, subject to restrictions in a resolution
 849-26  authorizing issuance of its bonds.
 849-27        (b)  In connection with or incidental to issuing and selling
  850-1  its bonds, the department may enter into contracts that the board
  850-2  considers necessary or appropriate for the department's obligation,
  850-3  as represented by the bonds and incidental contracts, to be placed,
  850-4  in whole or in part, on the basis desired by the board, including
  850-5  interest rate, currency, or cash flow.
  850-6        (c)  Contracts that may be entered into under Subsection (b)
  850-7  include contracts:
  850-8              (1)  commonly known as interest rate swap agreements,
  850-9  currency swap agreements, or forward payment conversion agreements;
 850-10              (2)  providing for payments based on levels of or
 850-11  changes in interest rates or currency exchange rates;
 850-12              (3)  to exchange cash flows or a series of payments; or
 850-13              (4)  that include options, puts or calls to hedge
 850-14  payment, currency, rate, spread, or similar exposure.
 850-15        (d)  A contract entered into under this section shall be on
 850-16  terms and conditions approved by the board.  (V.A.C.S.
 850-17  Art. 4413(501), Sec. 3.03 (part).)
 850-18        Sec. 2306.352.  TEXAS HOUSING BONDS.  (a)  The board by
 850-19  resolution may provide for the issuance of negotiable bonds as
 850-20  authorized by the Texas Constitution.
 850-21        (b)  The bonds shall be on a parity and shall be called Texas
 850-22  Housing Bonds.
 850-23        (c)  The board:
 850-24              (1)  may issue the bonds in one or several
 850-25  installments; and
 850-26              (2)  shall date the bonds of each issue.  (V.A.C.S.
 850-27  Art. 4413(501), Sec. 3.24(a).)
  851-1        Sec. 2306.353.  REVENUE BONDS.  (a)  In addition to issuing
  851-2  general obligation bonds under Section 2306.352, the department may
  851-3  issue revenue bonds to provide money to carry out a purpose, power,
  851-4  or duty of the housing finance division under this chapter.
  851-5        (b)  The bonds may be issued from time to time in one or more
  851-6  series or issues.
  851-7        (c)  The bonds shall be payable as to principal, interest,
  851-8  and redemption premium, if any, from, and secured by, a first or
  851-9  subordinate lien on, and pledge of, all or part of the revenues,
 851-10  income, or other resources of the housing finance division,
 851-11  including:
 851-12              (1)  the repayments of mortgage loans;
 851-13              (2)  the earnings from investment or deposit of the
 851-14  reserve fund and other funds of the housing finance division;
 851-15              (3)  the fees, charges, and other amounts or payments
 851-16  received under this chapter; and
 851-17              (4)  appropriations, grants, allocations, subsidies,
 851-18  rent supplements, guaranties, aid, contribution, or donations.
 851-19  (V.A.C.S. Art. 4413(501), Sec. 3.24(b).)
 851-20        Sec. 2306.354.  DEFINITIVE REFUNDING BONDS.  (a)  The
 851-21  department may issue definitive refunding bonds if the bonds are
 851-22  issued and delivered to refund:
 851-23              (1)  other department bonds; or
 851-24              (2)  the obligations of:
 851-25                    (A)  the department's predecessor; or
 851-26                    (B)  a local housing finance corporation.
 851-27        (b)  The bonds must be payable as to principal, interest, and
  852-1  redemption premium, if any, from the refunding bonds and other
  852-2  revenues, income, or resources of the department.
  852-3        (c)  The department may contract to issue, sell, and deliver
  852-4  the definitive refunding bonds in a manner that will provide the
  852-5  money necessary to pay a required part of the principal, interest,
  852-6  and redemption premium, if any, on the refunded bonds or
  852-7  obligations when due.
  852-8        (d)  The refunded  bonds or obligations may be refunded in
  852-9  another manner permitted by this chapter or other state law,
 852-10  including Chapter 503, Acts of the 54th Legislature, Regular
 852-11  Session, 1955 (Article 717k, Vernon's Texas Civil Statutes), and
 852-12  Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
 852-13  (Article 717k-3, Vernon's Texas Civil Statutes).  (V.A.C.S.
 852-14  Art. 4413(501), Secs. 3.24(c), (h).)
 852-15        Sec. 2306.355.  ISSUANCE OF ADDITIONAL PARITY OR SUBORDINATE
 852-16  LIEN BONDS.  The department may issue additional parity bonds or
 852-17  subordinate lien bonds under terms or conditions in the resolution
 852-18  authorizing issuance of the bonds.  (V.A.C.S.  Art. 4413(501),
 852-19  Sec. 3.24(f).)
 852-20        Sec. 2306.356.  ISSUANCE OF BONDS TO FUND DEPARTMENT RESERVES
 852-21  OR FUNDS.  The department may issue bonds to provide all or part of
 852-22  the money required for funding or increasing the department's
 852-23  reserves or funds.  (V.A.C.S. Art. 4413(501), Sec. 3.24(g).)
 852-24        Sec. 2306.357.  BONDS ISSUED BY TEXAS HOUSING AGENCY.  A
 852-25  general obligation or revenue bond issued by the Texas Housing
 852-26  Agency becomes a general obligation or revenue bond of the housing
 852-27  finance division.  (Ch. 762, Acts of the 72nd Leg., R.S., 1991,
  853-1  Sec. 23(d).)
  853-2          (Sections 2306.358-2306.370 reserved for expansion)
  853-3            SUBCHAPTER Q.  HOUSING FINANCE DIVISION BONDS:
  853-4                         BOARD ACTION ON BONDS
  853-5        Sec. 2306.371.  BOARD AUTHORIZATION OF BONDS.  Bonds issued
  853-6  by the department must be authorized by board resolution.
  853-7  (V.A.C.S. Art. 4413(501), Sec. 3.24(e) (part).)
  853-8        Sec. 2306.372.  DEPARTMENT PROCEDURES.  In a resolution
  853-9  authorizing the issuance of department bonds, the board may
 853-10  prescribe the systems and procedures under which the department
 853-11  shall function.  (V.A.C.S. Art. 4413(501), Sec. 3.37 (part).)
 853-12        Sec. 2306.373.  USE OF BOND PROCEEDS.  The board may provide
 853-13  in a resolution authorizing the issuance of department bonds that
 853-14  part of the proceeds from the sale of the bonds may be used to:
 853-15              (1)  pay the costs and expenses of issuing the bonds;
 853-16              (2)  pay interest on the bonds during a period required
 853-17  by the board;
 853-18              (3)  pay or repay the department's operation and
 853-19  maintenance expenses to the extent and for the period specified in
 853-20  the resolution; and
 853-21              (4)  fund, increase, or restore any depletions of the
 853-22  reserve fund or of other reserves or funds for any purpose.
 853-23  (V.A.C.S. Art. 4413(501), Sec. 3.24(e) (part).)
 853-24        Sec. 2306.374.  FACSIMILE SIGNATURES AND SEALS.  (a)  The
 853-25  board may state in a resolution authorizing the issuance of an
 853-26  installment or series of bonds the extent to which the presiding
 853-27  officer of the board or any other officer may use a facsimile
  854-1  signature or facsimile seal instead of a manual signature or
  854-2  manually impressed seal to execute or attest the bonds and
  854-3  appurtenant coupons.
  854-4        (b)  An interest coupon may be signed by the facsimile
  854-5  signature of the presiding officer of the board.  (V.A.C.S.
  854-6  Art. 4413(501), Sec. 3.32.)
  854-7        Sec. 2306.375.  PERSONAL LIABILITY OF BOARD MEMBER OR
  854-8  DIRECTOR.  A member of the board or the director is not liable
  854-9  personally for bonds issued or contracts executed by the housing
 854-10  finance division.  (V.A.C.S.  Art. 4413(501), Sec. 1.06(f).)
 854-11          (Sections 2306.376-2306.390 reserved for expansion)
 854-12            SUBCHAPTER R.  HOUSING FINANCE DIVISION BONDS:
 854-13                              FORM; TERMS
 854-14        Sec. 2306.391.  FORM.  The department's bonds may be issued
 854-15  as:
 854-16              (1)  serial bonds;
 854-17              (2)  term bonds; or
 854-18              (3)  a combination of serial and term bonds as
 854-19  determined by the board.  (V.A.C.S. Art. 4413(501), Sec. 3.26(a).)
 854-20        Sec. 2306.392.  DENOMINATION.  (a)  The department's bonds
 854-21  may be issued:
 854-22              (1)  in coupon form payable to bearer;
 854-23              (2)  in fully registered form;
 854-24              (3)  as coupon bonds payable to bearer but registrable
 854-25  as to principal alone, or as to both principal and interest; or
 854-26              (4)  in another form, including a registered
 854-27  uncertificated obligation not represented by written instruments,
  855-1  commonly known as a book-entry obligation.
  855-2        (b)  The department shall provide for the registration of
  855-3  ownership and transfer of a book-entry obligation under a system of
  855-4  books and records maintained by a bank serving as trustee, paying
  855-5  agent, or bond registrar.  (V.A.C.S. Art. 4413(501), Sec. 3.26(b).)
  855-6        Sec. 2306.393.  MANNER, PRICE, AND TERMS.  The department's
  855-7  bonds may be sold in a manner, at a price, and under terms and
  855-8  conditions determined by the board under a contractual arrangement
  855-9  approved by the board.  (V.A.C.S. Art. 4413(501), Sec. 3.26(d).)
 855-10        Sec. 2306.394.  PLACE OF PAYMENT; MEDIUM OF EXCHANGE.  (a)
 855-11  The department's bonds may be payable at a place inside or outside
 855-12  the United States.
 855-13        (b)  The bonds may be made payable in any currency or medium
 855-14  of exchange, including United States dollars and currencies of
 855-15  other nations.  (V.A.C.S. Art. 4413(501), Sec. 3.26(c) (part).)
 855-16        Sec. 2306.395.  INTEREST ON BONDS.  The department's bonds
 855-17  may be issued to bear interest at a rate determined by the board.
 855-18  (V.A.C.S. Art. 4413(501), Sec. 3.25.)
 855-19        Sec. 2306.396.  MATURITY OF BONDS.  The department's bonds
 855-20  may mature within a period determined by the board.  (V.A.C.S.
 855-21  Art. 4413(501), Sec. 3.27.)
 855-22        Sec. 2306.397.  Redemption Before Maturity; Conversion.  (a)
 855-23  Department bonds may be made redeemable before maturity.
 855-24        (b)  The board may provide and covenant for the:
 855-25              (1)  conversion of one form of bond to another form;
 855-26  and
 855-27              (2)  reconversion of a bond to another form.
  856-1        (c)  Except as provided by Subsection (d), a replacement,
  856-2  converted, or reconverted bond must be approved and registered as
  856-3  provided by Sections 2306.431 and 2306.432, under procedures
  856-4  established by the resolution authorizing the bonds.
  856-5        (d)  If the duty of replacement, conversion, or reconversion
  856-6  of a bond is imposed on a place of payment (paying agent) or a
  856-7  corporate trustee under a trust agreement or trust indenture, the
  856-8  replacement, converted, or reconverted bond does not need to be
  856-9  reapproved by the attorney general or reregistered by the
 856-10  comptroller as provided by Sections 2306.431 and 2306.432.
 856-11  (V.A.C.S. Art. 4413(501), Secs. 3.26(c) (part), 3.28.)
 856-12          (Sections 2306.398-2306.410 reserved for expansion)
 856-13            SUBCHAPTER S.  HOUSING FINANCE DIVISION BONDS:
 856-14                          SECURITY FOR BONDS
 856-15        Sec. 2306.411.  SECURITY FOR PAYMENT OF PRINCIPAL, INTEREST,
 856-16  AND REDEMPTION PREMIUM.  (a)  In addition to other security for the
 856-17  department's bonds authorized by this chapter, payment of the
 856-18  principal and interest and redemption premium, if any, on the
 856-19  department's bonds may be secured by a first or subordinate lien on
 856-20  and pledge of all or part of:
 856-21              (1)  the department's assets and real, personal, or
 856-22  mixed property, including:
 856-23                    (A)  mortgages or other obligations securing the
 856-24  assets of property;
 856-25                    (B)  investments; and
 856-26                    (C)  trust agreements or trust indentures
 856-27  administered by one or more corporate trustees as allowed by the
  857-1  board; and
  857-2              (2)  the reserves or funds of the housing finance
  857-3  division.
  857-4        (b)  The form of a mortgage, trust agreement, or trust
  857-5  indenture securing department bonds must be authorized under the
  857-6  resolution authorizing the issuance of the bonds.  (V.A.C.S.
  857-7  Art. 4413(501), Secs.  3.24(d), (e) (part).)
  857-8        Sec. 2306.412.  VALIDITY OF LIENS AND PLEDGES.  (a)  A lien
  857-9  on or pledge of revenues, income, assets, reserves, funds, or other
 857-10  resources of the housing finance division, as authorized by this
 857-11  chapter, is valid and binding from the time of payment for and
 857-12  delivery of the bonds authorized by the board resolution creating
 857-13  or confirming the lien or pledge.
 857-14        (b)  A lien or pledge is fully effective as to revenues,
 857-15  income, assets, reserves, funds, or other resources on hand or
 857-16  later received, and those items are subject to the lien or pledge
 857-17  without physical delivery of the item or any further act.
 857-18        (c)  A lien or pledge is valid and binding against a party
 857-19  who has a claim in tort, contract, or otherwise against the
 857-20  department or another party, regardless of whether the party has
 857-21  notice of the lien or pledge.
 857-22        (d)  A resolution authorizing the issuance of department
 857-23  bonds or any other instrument creating or confirming a lien or
 857-24  pledge is not required to be filed or recorded, except that:
 857-25              (1)  the resolution or instrument must be filed in the
 857-26  department's records; and
 857-27              (2)  each department bond resolution must be submitted
  858-1  to the attorney general under Section 2306.431.  (V.A.C.S.
  858-2  Art. 4413(501), Sec. 3.38.)
  858-3          (Sections 2306.413-2306.430 reserved for expansion)
  858-4            SUBCHAPTER T.  HOUSING FINANCE DIVISION BONDS:
  858-5                 APPROVAL, REGISTRATION, AND EXECUTION
  858-6        Sec. 2306.431.  Approval of Bonds.  (a)  Bonds issued by the
  858-7  department and the appropriate proceedings authorizing the bonds'
  858-8  issuance shall be submitted to the attorney general for
  858-9  examination.
 858-10        (b)  The attorney general shall approve the bonds if the
 858-11  attorney general finds that the bonds have been authorized as
 858-12  provided by this chapter.  (V.A.C.S. Art. 4413(501), Sec. 3.30
 858-13  (part).)
 858-14        Sec. 2306.432.  REGISTRATION.  On approval of the attorney
 858-15  general under Section 2306.431, the comptroller shall register the
 858-16  department's bonds.  (V.A.C.S. Art. 4413(501), Sec. 3.30 (part).)
 858-17        Sec. 2306.433.  Execution.  Bonds authorized by Section
 858-18  2306.352 shall be executed on the board's behalf as general
 858-19  obligations of the state as follows:
 858-20              (1)  the presiding officer of the board shall sign the
 858-21  bonds;
 858-22              (2)  the board shall impress its seal on the bonds;
 858-23              (3)  the governor shall sign the bonds; and
 858-24              (4)  the secretary of state shall attest the bonds and
 858-25  impress on them the state seal.  (V.A.C.S. Art. 4413(501),
 858-26  Sec. 3.31.)
 858-27          (Sections 2306.434-2306.450 reserved for expansion)
  859-1      SUBCHAPTER U.  HOUSING FINANCE DIVISION BONDS:  RIGHTS AND
  859-2            REMEDIES OF BONDHOLDERS AND PARTIES IN INTEREST
  859-3        Sec. 2306.451.  STATE PLEDGE REGARDING BONDHOLDER RIGHTS AND
  859-4  REMEDIES.  (a)  The state pledges to and agrees with the holders of
  859-5  bonds issued under this chapter that it will not limit or alter the
  859-6  rights vested in the department under this chapter to fulfill the
  859-7  terms of an agreement made with a bondholder or impair the rights
  859-8  and remedies of a bondholder until the following obligations are
  859-9  fully discharged:
 859-10              (1)  the bonds;
 859-11              (2)  interest on the bonds;
 859-12              (3)  interest on any unpaid installment of interest;
 859-13  and
 859-14              (4)  all costs and expenses related to an action or
 859-15  proceeding by or on behalf of the holders.
 859-16        (b)  The department may include the state's pledge and
 859-17  agreement under Subsection (a) in an agreement with the holders of
 859-18  the department's bonds.  (V.A.C.S. Art. 4413(501), Sec. 3.29(c).)
 859-19        Sec. 2306.452.  PAYMENT ENFORCEABLE BY MANDAMUS.  A writ of
 859-20  mandamus and any other legal or equitable remedy are available to a
 859-21  party in interest to require the department, the treasurer, or
 859-22  another party to carry out an agreement or to perform a function or
 859-23  duty under:
 859-24              (1)  this chapter;
 859-25              (2)  the Texas Constitution; or
 859-26              (3)  the department's bond resolutions.  (V.A.C.S. Art.
 859-27  4413(501), Sec.  3.35.)
  860-1          (Sections 2306.453-2306.470 reserved for expansion)
  860-2      SUBCHAPTER V.  HOUSING FINANCE DIVISION BONDS:  OBLIGATIONS
  860-3                        OF DEPARTMENT AND STATE
  860-4        Sec. 2306.471.  GENERAL OBLIGATION BONDS.  General obligation
  860-5  bonds issued under Section 2306.352 and approved and registered
  860-6  under this chapter are general obligations of the state.  (V.A.C.S.
  860-7  Art. 4413(501), Sec. 3.34(b).)
  860-8        Sec. 2306.472.  DEPARTMENT'S BONDS OTHER THAN GENERAL
  860-9  OBLIGATION BONDS NOT OBLIGATIONS OF THE STATE.  Except for bonds
 860-10  authorized by the Texas Constitution and issued under Section
 860-11  2306.352, the department's bonds:
 860-12              (1)  are solely obligations of the department and are
 860-13  payable solely from funds of the housing finance division;
 860-14              (2)  are not an obligation, debt, or liability of the
 860-15  state; and
 860-16              (3)  do not create or constitute a pledge, giving, or
 860-17  lending of the faith, credit, or taxing power of the state.
 860-18  (V.A.C.S. Art. 4413(501), Sec.  3.29(a).)
 860-19        Sec. 2306.473.  STATE NOT OBLIGATED TO PAY; FAITH AND CREDIT
 860-20  NOT PLEDGED.  A department bond not authorized by Section 2306.352
 860-21  must contain a statement on the face of the bond that:
 860-22              (1)  the state is not obligated to pay the principal or
 860-23  interest on the bond; and
 860-24              (2)  the faith, credit, or taxing power of the state is
 860-25  not pledged, given, or loaned to payment of the bond's principal or
 860-26  interest.  (V.A.C.S.  Art. 4413(501), Sec. 3.29(b).)
 860-27          (Sections 2306.474-2306.490 reserved for expansion)
  861-1            SUBCHAPTER W.  HOUSING FINANCE DIVISION BONDS:
  861-2                       MISCELLANEOUS PROVISIONS
  861-3        Sec. 2306.491.  BONDS NEGOTIABLE INSTRUMENTS.
  861-4  Notwithstanding any other statute, a bond and interest coupon
  861-5  issued and delivered by the housing finance division is a
  861-6  negotiable instrument under the Uniform Commercial Code, except
  861-7  that the bond may be registered or subject to registration under
  861-8  this chapter.  (V.A.C.S. Art. 4413(501), Sec. 3.36.)
  861-9        Sec. 2306.492.  BONDS INCONTESTABLE.  Department bonds are
 861-10  incontestable for any reason in a court or other forum after
 861-11  approval by the attorney general and registration by the
 861-12  comptroller and are valid and binding obligations for all purposes
 861-13  under the terms of the bonds.  (V.A.C.S. Art. 4413(501), Sec.
 861-14  3.34(a).)
 861-15        Sec. 2306.493.  Signature of Former Officer.  If an officer
 861-16  whose manual or facsimile signature appears on a bond or whose
 861-17  facsimile signature appears on a coupon is not an officer at the
 861-18  time the bond is delivered, the signature is valid and sufficient
 861-19  for all purposes as if the officer had remained in office until
 861-20  delivery.  (V.A.C.S. Art. 4413(501), Sec. 3.33.)
 861-21        Sec. 2306.494.  Bonds Not Taxable.  The following are free
 861-22  from taxation or assessment by this state or a public agency:
 861-23              (1)  department bonds issued under this chapter;
 861-24              (2)  interest and income from department bonds,
 861-25  including a profit from the sale of the bonds; and
 861-26              (3)  all fees, charges, gifts, grants, revenues,
 861-27  receipts, and other money received or pledged to pay or secure the
  862-1  payment of the department's bonds.  (V.A.C.S. Art. 4413(501), Sec.
  862-2  3.39.)
  862-3        Sec. 2306.495.  Authorized Investments.  Bonds issued by the
  862-4  department under this chapter are legal and authorized investments
  862-5  for:
  862-6              (1)  banks;
  862-7              (2)  savings banks;
  862-8              (3)  trust companies;
  862-9              (4)  savings and loan associations;
 862-10              (5)  insurance companies;
 862-11              (6)  fiduciaries;
 862-12              (7)  trustees;
 862-13              (8)  guardians; or
 862-14              (9)  sinking or other public funds of:
 862-15                    (A)  this state;
 862-16                    (B)  a municipality;
 862-17                    (C)  a county;
 862-18                    (D)  a school district; or
 862-19                    (E)  another political subdivision or public
 862-20  agency of this state.  (V.A.C.S. Art. 4413(501), Sec. 3.40.)
 862-21        Sec. 2306.496.  SECURITY FOR DEPOSIT OF FUNDS.  Department
 862-22  bonds are eligible and lawful security for a deposit of public
 862-23  funds of the state or a public agency, to the extent of the greater
 862-24  of the bonds' par or market value when accompanied by appurtenant
 862-25  unmatured interest coupons.  (V.A.C.S. Art. 4413(501), Sec. 3.41.)
 862-26        Sec. 2306.497.  MUTILATED, LOST, STOLEN, OR DESTROYED BONDS.
 862-27  The board may provide procedures for the replacement of a
  863-1  mutilated, lost, stolen, or destroyed bond or interest coupon.
  863-2  (V.A.C.S. Art. 4413(501), Sec.  3.42.)
  863-3        Sec. 2306.498.  NO GAIN ALLOWED.  (a)  The director or a
  863-4  board member may not have or attempt to have a pecuniary interest
  863-5  in a transaction to which the department is a party for purposes of
  863-6  personal pecuniary gain.
  863-7        (b)  A board member or department employee may not purchase
  863-8  department bonds in the open secondary market for municipal
  863-9  securities.  (V.A.C.S. Art.  4413(501), Sec. 3.43.)
 863-10          (Sections 2306.499-2306.510 reserved for expansion)
 863-11             SUBCHAPTER X.  INDIVIDUALS WITH SPECIAL NEEDS
 863-12        Sec. 2306.511.  DEFINITION.  In this subchapter, "individual
 863-13  with special needs" means an individual who:
 863-14              (1)  is considered to be an individual having a
 863-15  disability under a state or federal law;
 863-16              (2)  is elderly;
 863-17              (3)  is designated by the board as experiencing a
 863-18  unique need for decent, safe housing that is not being met
 863-19  adequately by private enterprise; or
 863-20              (4)  is legally responsible for caring for an
 863-21  individual described by Subdivision (1), (2), or (3) and meets the
 863-22  income guidelines established by the board. (V.A.C.S. Art.
 863-23  4413(501), Sec. 1.02(19).)
 863-24        Sec. 2306.512.  SPECIAL NEEDS.  The department may adopt a
 863-25  strategy to serve the needs of individuals with special needs.
 863-26  (V.A.C.S. Art. 4413(501), Sec. 3.03 (part).)
 863-27        Sec. 2306.513.  HOUSING FOR INDIVIDUALS WITH SPECIAL NEEDS.
  864-1  (a)  The board shall adopt rules to achieve occupancy by
  864-2  individuals with special needs of at least five percent of the
  864-3  units in each multifamily housing development.
  864-4        (b)  Subsection (a) applies only to a multifamily housing
  864-5  development that contains at least 20 units and is financed by
  864-6  bonds issued under this chapter.
  864-7        (c)  If a survey that is conducted by the housing sponsor and
  864-8  verified by the housing finance division reveals that there is not
  864-9  sufficient need for housing for individuals with special needs in
 864-10  the area in which the development will be built or renovated to
 864-11  justify building or renovating and reserving at least five percent
 864-12  of the units for individuals with special needs, the department
 864-13  may, on a showing of good cause by the housing sponsor, lower the
 864-14  requirements to correspond to the amount of need found by the
 864-15  housing sponsor.
 864-16        (d)  The housing finance division shall cooperate with the
 864-17  Texas Department on Aging to implement this section and shall
 864-18  reimburse the department for the costs of:
 864-19              (1)  assessing the need for housing for individuals
 864-20  with special needs in different locations;
 864-21              (2)  setting standards relating to the design and
 864-22  construction of housing for individuals with special needs;
 864-23              (3)  providing planning assistance to builders; and
 864-24              (4)  publicizing the availability of the housing
 864-25  program to potential developers and residents.
 864-26        (e)  The department and the Texas Department on Aging shall
 864-27  determine a procedure for paying for services provided by the Texas
  865-1  Department on Aging.  (V.A.C.S. Art. 4413(501), Sec. 3.13.)
  865-2        SECTION 2.  CONFORMING AMENDMENT.  Chapter 121, Civil
  865-3  Practice and Remedies Code, is amended by adding Section 121.015 to
  865-4  read as follows:
  865-5        Sec. 121.015.  PRIVATE SEAL OR SCROLL NOT REQUIRED.  A
  865-6  private seal or scroll may not be required on a written instrument
  865-7  other than an instrument made by a corporation.  (V.A.C.S. Art. 27
  865-8  (part).)
  865-9        SECTION 3.  CONFORMING AMENDMENT.  Title 6, Civil Practice
 865-10  and Remedies Code, is amended by adding Chapter 136 to read as
 865-11  follows:
 865-12                    CHAPTER 136.  PROOF OF MAILING
 865-13        Sec. 136.001.  CERTIFIED MAIL.  (a)  Except as provided by
 865-14  Subsection (b), a person may use certified mail with return receipt
 865-15  requested in any case in which registered mail is required by law.
 865-16  The mailing of a notice of hearing, citation, bid request, or other
 865-17  notice, information, or material by certified mail has the same
 865-18  legal effect as if sent by registered mail, if the receipt for the
 865-19  certified mail is validated with an official post office postmark.
 865-20        (b)  An article shall be sent by registered mail if
 865-21  registered mail is required by law to provide insurance against
 865-22  loss of the article.
 865-23        SECTION 4.  CONFORMING AMENDMENT.  Section 7(f), Article
 865-24  42.18, Code of Criminal Procedure, is amended to read as follows:
 865-25        (f)  The members of the board shall meet at least once in
 865-26  each quarter of the calendar year at a site determined by the
 865-27  chairman for the purpose of making clemency decisions.  <As a
  866-1  specific exception to Chapter 271, Acts of the 60th Legislature,
  866-2  Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil
  866-3  Statutes), the board, at the call of the chair, may hold a hearing
  866-4  on clemency matters by telephone conference call.>  The portion of
  866-5  a meeting that is public shall be recorded and the recording made
  866-6  available to the public to be heard at one or more places
  866-7  designated by the board.
  866-8        SECTION 5.  CONFORMING AMENDMENT.  Article 19.14, Code of
  866-9  Criminal Procedure, is amended to read as follows:
 866-10        Art. 19.14.  SUMMONING.  The sheriff shall summon the persons
 866-11  named in the list at least three days, exclusive of the day of
 866-12  service, prior to the day on which the grand jury is to be
 866-13  impaneled, by giving personal notice to each juror of the time and
 866-14  place when and where he is to attend as a grand juror, or by
 866-15  leaving at his place of residence with a member of his family over
 866-16  sixteen years old, a written notice to such juror that he has been
 866-17  selected as a grand juror, and the time and place when and where he
 866-18  is to attend; or the judge, at his election, may direct the sheriff
 866-19  to summon the grand jurors by registered or certified mail.
 866-20        SECTION 6.  AMENDMENT.  Chapter 56, Code of Criminal
 866-21  Procedure, is amended by designating Sections 56.01-56.10 as
 866-22  "SUBCHAPTER A.  CRIME VICTIMS' RIGHTS," and by adding Subchapter B
 866-23  to read as follows:
 866-24               SUBCHAPTER B.  CRIME VICTIMS COMPENSATION
 866-25        Sec. 56.31.  SHORT TITLE.  This subchapter may be cited as
 866-26  the Crime Victims Compensation Act.  (V.A.C.S. Art. 8309-1,
 866-27  Sec. 1.)
  867-1        Sec. 56.32.  DEFINITIONS.  In this subchapter:
  867-2              (1)  "Child" means an individual younger than 17 years
  867-3  of age.
  867-4              (2)  "Claimant" means a victim or an authorized person
  867-5  acting on behalf of a victim.
  867-6              (3)  "Collateral source" means any of the following
  867-7  sources of benefits or advantages for pecuniary loss that a victim
  867-8  has received or that is readily available to the victim:
  867-9                    (A)  the offender under an order of restitution
 867-10  to the claimant imposed by a court as a condition of probation;
 867-11                    (B)  the United States, a federal agency, a state
 867-12  or any of its political subdivisions, or an instrumentality of two
 867-13  or more states, unless the law providing for the benefits or
 867-14  advantages makes them in excess of or secondary to benefits under
 867-15  this subchapter;
 867-16                    (C)  social security, Medicare, or Medicaid;
 867-17                    (D)  state-required temporary nonoccupational
 867-18  disability insurance;
 867-19                    (E)  workers' compensation;
 867-20                    (F)  an employer's wage continuation program;
 867-21                    (G)  proceeds of an insurance contract payable to
 867-22  the victim for loss that the victim sustained because of the
 867-23  criminally injurious conduct; or
 867-24                    (H)  a contract providing prepaid hospital and
 867-25  other health care services or benefits for disability.
 867-26              (4)  "Criminally injurious conduct" means conduct that:
 867-27                    (A)  occurs or is attempted;
  868-1                    (B)  poses a substantial threat of personal
  868-2  injury or death;
  868-3                    (C)  is punishable by fine, imprisonment, or
  868-4  death, or would be punishable by fine, imprisonment, or death if
  868-5  the person engaging in the conduct possessed capacity to commit the
  868-6  conduct; and
  868-7                    (D)  does not arise out of the ownership,
  868-8  maintenance, or use of a motor vehicle, aircraft, or water vehicle,
  868-9  unless the conduct is intended to cause personal injury or death in
 868-10  violation of Section 38, Uniform Act Regulating Traffic on Highways
 868-11  (Article 6701d, Vernon's Texas Civil Statutes), or Article 6701l-1,
 868-12  Revised Statutes.
 868-13              (5)  "Dependent" means:
 868-14                    (A)  a surviving spouse;
 868-15                    (B)  a person who is a dependent, within the
 868-16  meaning of Section 152, Internal Revenue Code of 1986 (26 U.S.C.
 868-17  Section 152), of a deceased victim; or
 868-18                    (C)  a posthumous child of a deceased victim.
 868-19              (6)  "Immediate family member" means an individual who:
 868-20                    (A)  is the father, mother, sister, brother,
 868-21  daughter, son, or spouse of a victim; and
 868-22                    (B)  resided in the same permanent household as
 868-23  the victim at the time that the criminally injurious conduct
 868-24  occurred.
 868-25              (7)  "Intervenor" means an individual who goes to the
 868-26  aid of another and is killed or injured in the good faith effort to
 868-27  prevent criminally injurious conduct, to apprehend a person
  869-1  reasonably suspected of having engaged in criminally injurious
  869-2  conduct, or to aid a police officer.  The term does not include a
  869-3  peace officer, firefighter, lifeguard, or individual whose
  869-4  employment includes the duty to protect the public safety acting
  869-5  within the course and scope of the individual's employment.
  869-6              (8)  "Pecuniary loss" means the amount of expense
  869-7  reasonably and necessarily incurred:
  869-8                    (A)  as a result of personal injury for:
  869-9                          (i)  medical, hospital, nursing, or
 869-10  psychiatric care or counseling, or physical therapy;
 869-11                          (ii)  actual loss of past earnings and
 869-12  anticipated loss of future earnings because of a disability
 869-13  resulting from the personal injury; and
 869-14                          (iii)  care of a minor child enabling a
 869-15  victim or a victim's spouse, but not both of them, to continue
 869-16  gainful employment; and
 869-17                    (B)  as a result of death for:
 869-18                          (i)  funeral and burial expenses;
 869-19                          (ii)  loss of support to a dependent; and
 869-20                          (iii)  care of a minor child enabling the
 869-21  surviving spouse of a victim to engage in lawful employment.
 869-22              (9)  "Personal injury" means physical harm to a victim.
 869-23              (10)  "Victim" means:
 869-24                    (A)  an individual who:
 869-25                          (i)  suffers personal injury or death as a
 869-26  result of criminally injurious conduct;
 869-27                          (ii)  at the time of the criminally
  870-1  injurious conduct, is in this state; and
  870-2                          (iii)  is a resident of this state, another
  870-3  state of the United States, the District of Columbia, the
  870-4  Commonwealth of Puerto Rico, or a possession or territory of the
  870-5  United States;
  870-6                    (B)  an individual who:
  870-7                          (i)  suffers personal injury or death as a
  870-8  result of criminally injurious conduct;
  870-9                          (ii)  at the time of the criminally
 870-10  injurious conduct, is in a state that does not have a crime victims
 870-11  compensation program that meets the requirements of Section
 870-12  1403(b), Crime Victims Compensation Act of 1984 (42 U.S.C. Section
 870-13  10602(b));
 870-14                          (iii)  at the time of the criminally
 870-15  injurious conduct, is a resident of this state; and
 870-16                          (iv)  would be entitled to compensation
 870-17  under this subchapter if the criminally injurious conduct had
 870-18  occurred in this state;
 870-19                    (C)  an intervenor;
 870-20                    (D)  a dependent of a deceased victim;
 870-21                    (E)  an immediate family member of a deceased
 870-22  victim who is not a dependent of the victim and who requires
 870-23  psychiatric care or counseling as a direct result of the criminally
 870-24  injurious conduct;
 870-25                    (F)  an individual who:
 870-26                          (i)  is not an immediate family member or a
 870-27  dependent, but who resided in the same permanent household as a
  871-1  deceased victim in a relationship with the victim within the second
  871-2  degree of consanguinity; and
  871-3                          (ii)  requires psychiatric care or
  871-4  counseling as a direct result of the criminally injurious conduct;
  871-5                    (G)  in the event of a death, a person who
  871-6  legally assumes the obligation or who voluntarily pays the medical
  871-7  or burial expenses incurred as a direct result of the criminally
  871-8  injurious conduct; or
  871-9                    (H)  an immediate family member of a victim who
 871-10  is a child and who requires psychological or psychiatric counseling
 871-11  as a direct result of the criminally injurious conduct.  (V.A.C.S.
 871-12  Art. 8309-1, Sec. 3 (part).)
 871-13        Sec. 56.33.  ADMINISTRATION; RULES.  (a)  The attorney
 871-14  general shall adopt rules consistent with this subchapter governing
 871-15  its administration, including rules relating to the method of
 871-16  filing claims and the proof of entitlement to compensation.
 871-17  Subchapters A and B, Chapter 2001, Government Code, except Sections
 871-18  2001.004(3) and 2001.005, apply to the attorney general.
 871-19        (b)  The attorney general may designate a power, duty, or
 871-20  responsibility given to the attorney general under this subchapter
 871-21  to a person in the attorney general's office.  (V.A.C.S. Art.
 871-22  8309-1, Secs. 3a, 10(a) (part).)
 871-23        Sec. 56.34.  COMPENSATION.  (a)  The attorney general shall
 871-24  award compensation for pecuniary loss arising from criminally
 871-25  injurious conduct if the attorney general is satisfied by a
 871-26  preponderance of the evidence that the requirements of this
 871-27  subchapter are met.
  872-1        (b)  The attorney general shall establish whether, as a
  872-2  direct result of criminally injurious conduct, a victim suffered
  872-3  personal injury or death that resulted in a pecuniary loss for
  872-4  which the victim is not compensated from a collateral source.
  872-5  (V.A.C.S. Art. 8309-1, Secs. 6(a), (b).)
  872-6        Sec. 56.35.  TYPES OF ASSISTANCE.  If the attorney general
  872-7  approves an application for compensation under Section 56.41 of
  872-8  this code, the attorney general shall determine what type of state
  872-9  assistance will best aid the claimant.  The attorney general may do
 872-10  one or more of the following:
 872-11              (1)  authorize cash payment or payments to or on behalf
 872-12  of a claimant for pecuniary loss;
 872-13              (2)  refer a claimant to a state agency for vocational
 872-14  or other rehabilitative services; or
 872-15              (3)  provide counseling services for a victim or
 872-16  contract with a private entity to provide counseling services.
 872-17  (V.A.C.S. Art. 8309-1, Sec. 7(a).)
 872-18        Sec. 56.36.  APPLICATION.  (a)  An applicant for compensation
 872-19  under this subchapter must apply in writing in a form that conforms
 872-20  substantially to that prescribed by the attorney general.
 872-21        (b)  An application must be verified and must contain:
 872-22              (1)  the date on which the criminally injurious conduct
 872-23  occurred;
 872-24              (2)  a description of the nature and circumstances of
 872-25  the criminally injurious conduct;
 872-26              (3)  a complete financial statement, including:
 872-27                    (A)  the cost of medical care or burial expenses
  873-1  and the loss of wages or support the claimant has incurred or will
  873-2  incur; and
  873-3                    (B)  the extent to which the claimant has been
  873-4  indemnified for those expenses from a collateral source;
  873-5              (4)  if appropriate, a statement indicating the extent
  873-6  of a disability resulting from the injury incurred;
  873-7              (5)  an authorization permitting the attorney general
  873-8  to verify the contents of the application; and
  873-9              (6)  other information the attorney general requires.
 873-10  (V.A.C.S. Art. 8309-1, Secs. 4(a), (d).)
 873-11        Sec. 56.37.  TIME FOR FILING.  (a)  Except as otherwise
 873-12  provided by this section, a claimant must file an application not
 873-13  later than the first anniversary of the criminally injurious
 873-14  conduct.
 873-15        (b)  The attorney general may extend the time for filing for
 873-16  good cause shown by the claimant.
 873-17        (c)  Subsection (a) of this section does not apply to a
 873-18  claimant if:
 873-19              (1)  the claimant is a child who is the victim; or
 873-20              (2)  the claimant is an immediate family member of a
 873-21  child who is the victim, and the immediate family member, as the
 873-22  direct result of the criminally injurious conduct, requires
 873-23  psychological or psychiatric counselling.
 873-24        (d)  If a claimant presents medically documented evidence of
 873-25  a physical incapacity that was incurred by the claimant as a result
 873-26  of the criminally injurious conduct and that reasonably prevented
 873-27  the claimant from filing the application within the limitations
  874-1  period under Subsection (a) of this section, the period of the
  874-2  incapacity is not included.  (V.A.C.S. Art. 8309-1, Sec. 4(c).)
  874-3        Sec. 56.38.  REVIEW; VERIFICATION.  (a)  The attorney general
  874-4  shall appoint a clerk to review each application for compensation
  874-5  under Section 56.36 of this code to ensure the application is
  874-6  complete.  If an application is not complete, the clerk shall
  874-7  return it to the claimant and give a brief statement showing the
  874-8  additional information required.  Not later than the 30th day after
  874-9  receiving a returned application, a claimant may:
 874-10              (1)  supply the additional information; or
 874-11              (2)  appeal the action to the attorney general, who
 874-12  shall review the application to determine whether it is complete.
 874-13        (b)  The attorney general may investigate an application.
 874-14        (c)  Incident to the attorney general's review, verification,
 874-15  and hearing duties under this subchapter, the attorney general may:
 874-16              (1)  request from prosecuting attorneys and law
 874-17  enforcement officers investigations and information to enable the
 874-18  attorney general to determine whether and the extent to which a
 874-19  claimant qualifies for an award;
 874-20              (2)  subpoena witnesses and administer oaths to
 874-21  determine whether and the extent to which a claimant qualifies for
 874-22  an award; and
 874-23              (3)  order a victim to submit to a mental or physical
 874-24  examination by a physician or psychologist or order an autopsy of a
 874-25  deceased victim as provided by Section 56.39 of this code, if the
 874-26  mental, physical, or emotional condition of a victim is material to
 874-27  a claim.  (V.A.C.S. Art. 8309-1, Secs. 5(a), (b), (e) (part).)
  875-1        Sec. 56.39.  MENTAL OR PHYSICAL EXAMINATION; AUTOPSY.  (a)
  875-2  An order for a mental or physical examination or an autopsy as
  875-3  provided by Section 56.38(c)(3) of this code may be made for good
  875-4  cause shown on notice to the individual to be examined and to all
  875-5  persons who have appeared.
  875-6        (b)  An order shall:
  875-7              (1)  specify the time, place, manner, conditions, and
  875-8  scope of the examination or autopsy;
  875-9              (2)  specify the person by whom the examination or
 875-10  autopsy is to be made; and
 875-11              (3)  require the person making the examination or
 875-12  autopsy to file with the attorney general a detailed written report
 875-13  of the examination or autopsy.
 875-14        (c)  A report shall set out the findings of the person making
 875-15  the examination or autopsy, including:
 875-16              (1)  the results of any tests made; and
 875-17              (2)  diagnoses, prognoses, and other conclusions and
 875-18  reports of earlier examinations of the same conditions.
 875-19        (d)  On request of the individual examined, the attorney
 875-20  general shall furnish the individual with a copy of the report.  If
 875-21  the victim is deceased, the attorney general on request shall
 875-22  furnish the claimant with a copy of the report.
 875-23        (e)  A physician or psychologist making an examination or
 875-24  autopsy under this section shall be compensated from funds
 875-25  appropriated for the administration of this subchapter.  (V.A.C.S.
 875-26  Art. 8309-1, Secs. 5(e) (part), (f).)
 875-27        Sec. 56.40.  HEARINGS.  (a)  The attorney general shall
  876-1  determine whether a hearing on an application for compensation
  876-2  under this subchapter is necessary.
  876-3        (b)  If the attorney general determines that a hearing is not
  876-4  necessary, the attorney general may approve the application in
  876-5  accordance with the provisions of Section 56.41 of this code.
  876-6        (c)  If the attorney general determines that a hearing is
  876-7  necessary or the claimant requests a hearing, the attorney general
  876-8  shall consider the application at a hearing at a time and place of
  876-9  the attorney general's choosing.  The attorney general shall notify
 876-10  all interested persons not less than 10 days before the date of the
 876-11  hearing.
 876-12        (d)  At the hearing the attorney general shall:
 876-13              (1)  review the application for assistance and the
 876-14  report prepared under Section 56.39 of this code and any other
 876-15  evidence obtained as a result of the attorney general's
 876-16  investigation; and
 876-17              (2)  receive other evidence that the attorney general
 876-18  finds necessary or desirable to evaluate the application properly.
 876-19        (e)  The attorney general may appoint hearing officers to
 876-20  conduct hearings or prehearing conferences under this subchapter.
 876-21        (f)  A hearing or prehearing conference is open to the public
 876-22  unless in a particular case the hearing officer or attorney general
 876-23  determines that the hearing or prehearing conference or a part of
 876-24  it should be held in private because a criminal suspect has not
 876-25  been apprehended or because it is in the interest of the claimant.
 876-26        (g)  The attorney general may suspend the proceedings pending
 876-27  disposition of a criminal prosecution that has been commenced or is
  877-1  imminent, but may make an emergency award under Section 56.50 of
  877-2  this code.
  877-3        (h)  Subchapters C-H, Chapter 2001, Government Code, do not
  877-4  apply to the attorney general or the attorney general's orders and
  877-5  decisions.  (V.A.C.S. Art. 8309-1, Secs. 5(c), (d); 10(a) (part),
  877-6  (b)-(d).)
  877-7        Sec. 56.41.  APPROVAL OF CLAIM.  (a)  The attorney general
  877-8  shall approve an application for compensation under this subchapter
  877-9  if the attorney general finds that grounds for compensation under
 877-10  this subchapter exist.
 877-11        (b)  The attorney general shall deny an application for
 877-12  compensation under this subchapter if:
 877-13              (1)  the criminally injurious conduct is not reported
 877-14  as provided by Section 56.46 of this code;
 877-15              (2)  the application is not made in the manner provided
 877-16  by Sections 56.36 and 56.37 of this code;
 877-17              (3)  the victim or individual whose injury or death
 877-18  gives rise to the application knowingly and willingly participated
 877-19  in the criminally injurious conduct;
 877-20              (4)  the claimant is the offender or an accomplice of
 877-21  the offender;
 877-22              (5)  an award of compensation to the claimant would
 877-23  benefit the offender or an accomplice of the offender; or
 877-24              (6)  the victim was incarcerated in a penal
 877-25  institution, as defined by Section 1.07(26), Penal Code, at the
 877-26  time the offense was committed.
 877-27        (c)  Except as provided by rules adopted by the attorney
  878-1  general to prevent the unjust enrichment of an offender, the
  878-2  attorney general may not deny an award otherwise payable to a
  878-3  victim because the victim:
  878-4              (1)  is an immediate family member of the offender; or
  878-5              (2)  resides in the same household as the offender.
  878-6  (V.A.C.S. Art. 8309-1, Secs. 6(a)-(c), (e).)
  878-7        Sec. 56.42.  LIMITS ON COMPENSATION.  (a)  A claimant is not
  878-8  entitled to compensation for pecuniary loss under this subchapter:
  878-9              (1)  in excess of $200 a week for:
 878-10                    (A)  actual loss of past earnings or anticipated
 878-11  loss of future earnings; or
 878-12                    (B)  loss of support to a dependent;
 878-13              (2)  for actual loss of past earnings or anticipated
 878-14  loss of future earnings if the victim is an accomplice of the
 878-15  offender;
 878-16              (3)  for loss of support to a dependent after the date
 878-17  the dependence would have ended if the victim had survived;
 878-18              (4)  for care of a minor child in excess of:
 878-19                    (A)  $50 a week for one child;
 878-20                    (B)  $100 a week for two children; or
 878-21                    (C)  $125 a week for three or more children;
 878-22              (5)  for loss of support to a dependent or care of a
 878-23  minor child as a result of death, if the expense is otherwise
 878-24  compensated for as a pecuniary loss for personal injury; or
 878-25              (6)  for loss attributable to pain and suffering.
 878-26        (b)  Awards payable to a victim and all other claimants
 878-27  sustaining pecuniary loss because of injury or death of that victim
  879-1  may not exceed $25,000 in the aggregate.  (V.A.C.S. Art. 8309-1,
  879-2  Secs. 3 (part), 7(b).)
  879-3        Sec. 56.43.  ATTORNEY'S FEES.  (a)  As part of an order, the
  879-4  attorney general shall determine and award reasonable attorney's
  879-5  fees, commensurate with services rendered, to be paid by the state
  879-6  to the attorney representing the claimant.
  879-7        (b)  Attorney's fees may be denied on a finding that the
  879-8  claim or appeal is frivolous.
  879-9        (c)  An award of attorney's fees is in addition to an award
 879-10  of compensation.
 879-11        (d)  An attorney may not contract for or receive an amount
 879-12  larger than that allowed under this section.
 879-13        (e)  Attorney's fees may not be paid to an attorney of a
 879-14  claimant unless an award is made to the claimant.  (V.A.C.S. Art.
 879-15  8309-1, Sec. 12 (part).)
 879-16        Sec. 56.44.  PAYMENTS.  (a)  The attorney general may provide
 879-17  for the payment of an award in a lump sum or in installments.  The
 879-18  attorney general shall provide that the part of an award equal to
 879-19  the amount of pecuniary loss accrued to the date of the award be
 879-20  paid in a lump sum.  Except as provided in Subsection (b) of this
 879-21  section, the attorney general shall pay the part of an award for
 879-22  allowable expense that accrues after the award is made in
 879-23  installments.
 879-24        (b)  At the request of the claimant, the attorney general may
 879-25  provide that an award for future pecuniary loss be paid in a lump
 879-26  sum if the attorney general finds that:
 879-27              (1)  paying the award in a lump sum will promote the
  880-1  interests of the claimant; or
  880-2              (2)  the present value of all future pecuniary loss
  880-3  does not exceed $1,000.
  880-4        (c)  The attorney general may not provide for an award for
  880-5  future pecuniary loss payable in installments for a period for
  880-6  which the attorney general cannot reasonably determine the future
  880-7  pecuniary loss.  (V.A.C.S. Art. 8309-1, Secs. 7(c)-(e).)
  880-8        Sec. 56.45.  DENIAL OR REDUCTION OF AWARD.  The attorney
  880-9  general may deny or reduce an award otherwise payable:
 880-10              (1)  if the victim has not substantially cooperated
 880-11  with an appropriate law enforcement agency;
 880-12              (2)  if the victim bears a share of the responsibility
 880-13  for the act or omission giving rise to the claim because of the
 880-14  victim's behavior at the time of the act or omission; or
 880-15              (3)  to the extent that pecuniary loss is recouped from
 880-16  another person, including a collateral source.  (V.A.C.S. Art.
 880-17  8309-1, Sec. 6(d).)
 880-18        Sec. 56.46.  REPORTING OF CRIME.  (a)  Except as otherwise
 880-19  provided by this section, a claimant may not file an application
 880-20  unless the victim reports the criminally injurious conduct to the
 880-21  appropriate state or local public safety or law enforcement agency
 880-22  not later than 72 hours after the criminally injurious conduct is
 880-23  committed.
 880-24        (b)  The attorney general may extend the time for reporting
 880-25  the criminally injurious conduct if the attorney general determines
 880-26  that the extension is justified by extraordinary circumstances.
 880-27        (c)  Subsection (a) of this section does not apply if the
  881-1  victim is a child.   (V.A.C.S. Art. 8309-1, Sec. 4(b).)
  881-2        Sec. 56.47.  RECONSIDERATION.  (a)  The attorney general, on
  881-3  the attorney general's own motion or on request of a claimant, may
  881-4  reconsider:
  881-5              (1)  a decision to make or deny an award; or
  881-6              (2)  the amount of an award.
  881-7        (b)  At least annually, the attorney general shall reconsider
  881-8  each award being paid in installments.
  881-9        (c)  An order on reconsideration may not require refund of
 881-10  amounts previously paid unless the award was obtained by fraud.
 881-11        (d)  The right of reconsideration does not affect the
 881-12  finality of an attorney general decision for the purpose of
 881-13  judicial review.  (V.A.C.S. Art. 8309-1, Secs. 9(a), (b).)
 881-14        Sec. 56.48.  JUDICIAL REVIEW.  (a)  Not later than the 20th
 881-15  day after the attorney general renders a final decision, a claimant
 881-16  may file with the attorney general a notice of dissatisfaction with
 881-17  the decision.  Not later than the 20th day after the claimant gives
 881-18  notice, the claimant shall bring suit in the district court having
 881-19  jurisdiction in the county in which:
 881-20              (1)  the injury or death occurred; or
 881-21              (2)  the victim resided at the time the injury or death
 881-22  occurred.
 881-23        (b)  While judicial review of a decision by the attorney
 881-24  general is pending, the attorney general:
 881-25              (1)  shall suspend payments to the claimant; and
 881-26              (2)  may not reconsider the award.
 881-27        (c)  The court shall determine the issues by trial de novo.
  882-1  The burden of proof is on the claimant.
  882-2        (d)  A court may award additional attorney's fees to a claim
  882-3  in the event of review.
  882-4        (e)  In computing a period under this section, if the last
  882-5  day is a legal holiday or Sunday, the last day is not counted, and
  882-6  the time is extended to include the next business day.  (V.A.C.S.
  882-7  Art. 8309-1, Secs. 9(c), 12 (part).)
  882-8        Sec. 56.49.  EXEMPTION; ASSIGNABILITY.  (a)  An award is not
  882-9  subject to execution, attachment, garnishment, or other process,
 882-10  except that an award is not exempt from a claim of a creditor to
 882-11  the extent that the creditor provided products, services, or
 882-12  accommodations, the costs of which are included in the award.
 882-13        (b)  An assignment or agreement to assign a right to benefits
 882-14  for loss accruing in the future is unenforceable except:
 882-15              (1)  an assignment of a right to benefits for loss of
 882-16  earnings is enforceable to secure payment of alimony, maintenance,
 882-17  or child support; and
 882-18              (2)  an assignment of a right to benefits is
 882-19  enforceable to the extent that the benefits are for the cost of
 882-20  products, services, or accommodations:
 882-21                    (A)  made necessary by the injury or death on
 882-22  which the claim is based; and
 882-23                    (B)  provided or to be provided by the assignee.
 882-24  (V.A.C.S. Art. 8309-1, Secs. 7(f), (g).)
 882-25        Sec. 56.50.  EMERGENCY AWARD.  (a)  The attorney general may
 882-26  make an emergency award if, before acting on an application for
 882-27  compensation under this subchapter, it appears likely that:
  883-1              (1)  a final award will be made; and
  883-2              (2)  the claimant will suffer undue hardship if
  883-3  immediate economic relief is not obtained.
  883-4        (b)  An emergency award may not exceed $1,500.
  883-5        (c)  The amount of an emergency award shall be:
  883-6              (1)  deducted from the final award; or
  883-7              (2)  repaid by and recoverable from the claimant to the
  883-8  extent the emergency award exceeds the final award.  (V.A.C.S. Art.
  883-9  8309-1, Sec. 8.)
 883-10        Sec. 56.51.  SUBROGATION.  If compensation is awarded under
 883-11  this subchapter, the state is subrogated to all the claimant's
 883-12  rights to receive or recover benefits for pecuniary loss to the
 883-13  extent compensation is awarded from a collateral source.  (V.A.C.S.
 883-14  Art. 8309-1, Sec. 11(a).)
 883-15        Sec. 56.52.  NOTICE OF PRIVATE ACTION.  (a)  Before a
 883-16  claimant may bring an action to recover damages related to
 883-17  criminally injurious conduct for which compensation under this
 883-18  subchapter is claimed or awarded, the claimant must give the
 883-19  attorney general written notice of the proposed action.  After
 883-20  receiving the notice, the attorney general shall promptly:
 883-21              (1)  join in the action as a party plaintiff to recover
 883-22  benefits awarded;
 883-23              (2)  require the claimant to bring the action in the
 883-24  claimant's name as a trustee on behalf of the state to recover
 883-25  benefits awarded; or
 883-26              (3)  reserve the attorney general's rights and do
 883-27  neither in the proposed action.
  884-1        (b)  If the claimant brings the action as trustee and
  884-2  recovers compensation awarded by the attorney general, the claimant
  884-3  may deduct from the benefits recovered on behalf of the state the
  884-4  reasonable expenses of the suit, including attorney's fees,
  884-5  expended in pursuing the recovery for the state.  The claimant must
  884-6  justify this deduction in writing to the attorney general on a form
  884-7  provided by the attorney general.  (V.A.C.S. Art. 8309-1, Secs.
  884-8  11(b), (c).)
  884-9        Sec. 56.53.  ANNUAL REPORT.  Annually, the attorney general
 884-10  shall report to the governor and the legislature on the attorney
 884-11  general's activities, including a statistical summary of claims and
 884-12  awards made and denied.  The reporting period is the state fiscal
 884-13  year.  The attorney general shall file the report not later than
 884-14  the 60th day after the end of the fiscal year.  (V.A.C.S. Art.
 884-15  8309-1, Sec. 13.)
 884-16        Sec. 56.54.  FUNDS.  (a)  The compensation to victims of
 884-17  crime fund and the compensation to victims of crime  auxiliary fund
 884-18  are in the state treasury.
 884-19        (b)  The compensation to victims of crime fund may be used by
 884-20  the attorney general only for the payment of compensation to
 884-21  claimants under this subchapter and other expenses in administering
 884-22  this subchapter.
 884-23        (c)  The compensation to victims of crime auxiliary fund may
 884-24  be used by the attorney general only for the payment of
 884-25  compensation to claimants under this subchapter.
 884-26        (d)  The attorney general may not make compensation payments
 884-27  in excess of the amount of money available from the combined funds.
  885-1        (e)  General revenues may not be used for payments under this
  885-2  subchapter.   (V.A.C.S. Art. 8309-1, Sec. 14(a).)
  885-3        Sec. 56.55.  COURT COSTS.  (a)  A person shall pay:
  885-4              (1)  $20 as a court cost on conviction of a felony;
  885-5              (2)  $15 as a court cost on conviction of a violation
  885-6  of a municipal ordinance punishable by a fine of more than $200 or
  885-7  on conviction of a misdemeanor punishable by imprisonment or by a
  885-8  fine of more than $500; or
  885-9              (3)  $5 as a court cost on conviction of a violation of
 885-10  a municipal ordinance punishable by a fine of not more than $200 or
 885-11  on conviction of a misdemeanor punishable by a fine of not more
 885-12  than $500, other than a conviction of a misdemeanor offense or a
 885-13  violation of a municipal ordinance relating to pedestrians and the
 885-14  parking of motor vehicles.
 885-15        (b)  The court shall assess and make a reasonable effort to
 885-16  collect the cost due under this section whether any other court
 885-17  cost is assessed or collected.
 885-18        (c)  In this section, a person is considered to have been
 885-19  convicted if:
 885-20              (1)  a sentence is imposed;
 885-21              (2)  the defendant receives probation or deferred
 885-22  adjudication; or
 885-23              (3)  the court defers final disposition of the case.
 885-24        (d)  Court costs under this section are collected in the same
 885-25  manner as other fines or costs.  (V.A.C.S. Art. 8309-1, Secs.
 885-26  14(b), (c).)
 885-27        Sec. 56.56.  DEPOSIT AND REMITTANCE OF COURT COSTS.  (a)  The
  886-1  officer collecting the costs in a municipal court case shall keep
  886-2  separate records of the funds collected as costs under Section
  886-3  56.55 of this code and shall deposit the funds in the municipal
  886-4  treasury.  The officer collecting the costs in a justice, county,
  886-5  or district court case shall keep separate records of the funds
  886-6  collected as costs under Section 56.55 of this code and shall
  886-7  deposit the funds in the county treasury.
  886-8        (b)  The custodian of a municipal or county treasury shall:
  886-9              (1)  keep records of the amount of funds on deposit
 886-10  collected under Section 56.55 of this code; and
 886-11              (2)  send to the comptroller before the last day of the
 886-12  first month following each calendar quarter the funds collected
 886-13  during the preceding quarter.
 886-14        (c)  A municipality or county may retain 10 percent of the
 886-15  funds collected under Section 56.55 of this code as a collection
 886-16  fee if the custodian of the treasury:
 886-17              (1)  keeps records of the amount of funds on deposit
 886-18  collected under Section 56.55 of this code; and
 886-19              (2)  sends to the comptroller the funds within the
 886-20  period prescribed by Subsection (b)(2) of this section.
 886-21        (d)  If no funds due as costs under Section 56.55 of this
 886-22  code are collected by a custodian of a municipal or county treasury
 886-23  in a quarter, the custodian shall file the report required for the
 886-24  quarter in the regular manner and must state that no funds were
 886-25  collected.  (V.A.C.S. Art. 8309-1, Secs. 14(d), (e).)
 886-26        Sec. 56.57.  DEPOSIT BY COMPTROLLER; AUDIT.  (a)  The
 886-27  comptroller shall deposit the funds received under Section 56.56 of
  887-1  this code in the compensation to victims of crime fund.
  887-2        (b)  Funds collected are subject to audit by the comptroller.
  887-3  Funds spent are subject to audit by the state auditor.  (V.A.C.S.
  887-4  Art. 8309-1, Sec. 14(f).)
  887-5        Sec. 56.58.  ADJUSTMENT OF AWARDS AND PAYMENTS.  The attorney
  887-6  general shall establish a policy to adjust awards and payments so
  887-7  that the total amount of awards granted in each calendar year does
  887-8  not exceed the amount of money credited to the fund during that
  887-9  year.  (V.A.C.S. Art. 8309-1, Sec. 14(g).)
 887-10        Sec. 56.59.  ATTORNEY GENERAL SUPERVISION OF COLLECTION OF
 887-11  COSTS; FAILURE TO COMPLY.  (a)  If the attorney general has reason
 887-12  to believe that a court has not been assessing costs due under
 887-13  Section 56.55 of this code or has not been making a reasonable
 887-14  effort to collect those costs, the attorney general shall send a
 887-15  warning letter to the court or the governing body of the
 887-16  governmental unit in which the court is located.
 887-17        (b)  Within 60 days after receipt of a warning letter, the
 887-18  court or governing body shall respond in writing to the attorney
 887-19  general, specifically referring to the charges in the warning
 887-20  letter.
 887-21        (c)  If the court or governing body does not respond or if
 887-22  the attorney general considers the response inadequate, the
 887-23  attorney general may request the comptroller to audit the records
 887-24  of:
 887-25              (1)  the court;
 887-26              (2)  the officer charged with collecting the costs; or
 887-27              (3)  the treasury of the governmental unit in which the
  888-1  court is located.
  888-2        (d)  The comptroller shall give the attorney general the
  888-3  results of the audit.
  888-4        (e)  If, using the results of the audit and other evidence
  888-5  available, the attorney general finds that a court is not assessing
  888-6  costs due under Section 56.55 of this code or is not making a
  888-7  reasonable effort to collect those costs, the attorney general may:
  888-8              (1)  refuse to award compensation under this subchapter
  888-9  to residents of the jurisdiction served by the court; or
 888-10              (2)  notify the State Commission on Judicial Conduct of
 888-11  the findings.
 888-12        (f)  The failure, refusal, or neglect of a judicial officer
 888-13  to comply with a requirement of Section 56.55 of this code:
 888-14              (1)  constitutes official misconduct; and
 888-15              (2)  is grounds for removal from office.  (V.A.C.S.
 888-16  Art. 8309-1, Sec. 14(h).)
 888-17        Sec. 56.60.  PUBLIC NOTICE.  (a)  A hospital licensed under
 888-18  the laws of this state shall display prominently in its emergency
 888-19  room posters giving notification of the existence and general
 888-20  provisions of this subchapter.  The attorney general shall set
 888-21  standards for the location of the display and shall provide
 888-22  posters, application forms, and general information regarding this
 888-23  subchapter to each hospital and physician licensed to practice in
 888-24  this state.
 888-25        (b)  Each local law enforcement agency shall inform a victim
 888-26  of criminally injurious conduct of the provisions of this
 888-27  subchapter and provide application forms to a victim who desires
  889-1  assistance.  The attorney general shall provide application forms
  889-2  and all other documents that local law enforcement agencies may
  889-3  require to comply with this section.  The attorney general shall
  889-4  set standards to be followed by local law enforcement agencies for
  889-5  this purpose and may require them to file with the attorney general
  889-6  a description of the procedures adopted by each agency to comply.
  889-7  (V.A.C.S. Art. 8309-1, Secs. 10(e), (f).)
  889-8        Sec. 56.61.  COMPENSATION FOR CERTAIN CRIMINALLY INJURIOUS
  889-9  CONDUCT PROHIBITED.  The attorney general may not award
 889-10  compensation for economic loss arising from criminally injurious
 889-11  conduct that occurred before January 1, 1980.  (V.A.C.S. Art.
 889-12  8309-1, Sec. 15 (part).)
 889-13        SECTION 7.  CONFORMING AMENDMENT.  Subchapter Z, Chapter 21,
 889-14  Education Code, is amended by adding Section 21.938 to read as
 889-15  follows:
 889-16        Sec. 21.938.  SPECIAL NOTICE BY PUBLICATION FOR BUDGET
 889-17  HEARING.  (a)  A school board shall publish notice before a public
 889-18  hearing relating to a budget in a daily, weekly, or biweekly
 889-19  newspaper published in the district.  If no daily, weekly, or
 889-20  biweekly newspaper is published in the district, the board shall
 889-21  publish notice in at least one newspaper of general circulation in
 889-22  the county in which the board is located.
 889-23        (b)  Notice published under this section is in addition to
 889-24  notice required by other law.  Notice under this section shall be
 889-25  published not earlier than the 30th or later than the 10th day
 889-26  before the date of the hearing.
 889-27        (c)  This section does not apply to a school board required
  890-1  by other law to give notice by publication of a hearing on a
  890-2  budget.
  890-3        SECTION 8.  AMENDMENT.  Subtitle H, Title 3, Education Code,
  890-4  is amended by adding Chapter 149 to read as follows:
  890-5            CHAPTER 149.  GEO-TECHNOLOGY RESEARCH INSTITUTE
  890-6  Sec. 149.001.  DEFINITIONS
  890-7  Sec. 149.002.  GEO-TECHNOLOGY RESEARCH INSTITUTE
  890-8  Sec. 149.003.  ADMINISTRATION
  890-9  Sec. 149.004.  DUTIES
 890-10  Sec. 149.005.  FUNDS
 890-11            CHAPTER 149.  GEO-TECHNOLOGY RESEARCH INSTITUTE
 890-12        Sec. 149.001.  DEFINITIONS.  In this chapter:
 890-13              (1)  "Center" means the Houston Advanced Research
 890-14  Center.
 890-15              (2)  "Institute" means the Geo-Technology Research
 890-16  Institute.  (V.A.C.S. Art. 6049h, Sec. 2.)
 890-17        Sec. 149.002.  GEO-TECHNOLOGY RESEARCH INSTITUTE.  The
 890-18  Geo-Technology Research Institute is located at the center, a
 890-19  research consortium.  (V.A.C.S. Art. 6049h, Sec. 3 (part).)
 890-20        Sec. 149.003.  ADMINISTRATION.  The board of directors of the
 890-21  center directs the administration of the institute.  (V.A.C.S. Art.
 890-22  6049h, Sec. 4.)
 890-23        Sec. 149.004.  DUTIES.  (a)  The institute shall conduct
 890-24  basic and applied research in geophysics, geo-technology, and
 890-25  related fields to discover new reserves and to develop technology
 890-26  that increases the production potential of oil and natural gas.
 890-27        (b)  Results of the research of the institute shall be made
  891-1  available to the General Land Office, the Railroad Commission of
  891-2  Texas, other public bodies and officials, and private groups.
  891-3  (V.A.C.S. Art. 6049h, Secs. 3 (part), 5.)
  891-4        Sec. 149.005.  FUNDS.  (a)  The institute may receive:
  891-5              (1)  funds from the federal government or the state
  891-6  government; and
  891-7              (2)  pledges or gifts from private sources.
  891-8        (b)  The board of directors of the center shall manage and
  891-9  approve disbursement of all funds, pledges, and gifts.
 891-10        (c)  The use of state funds is limited to expenditures for
 891-11  basic and applied research, excluding costs for construction,
 891-12  operation, or maintenance of facilities.  (V.A.C.S. Art. 6049h,
 891-13  Sec. 6.)
 891-14        SECTION 9.  AMENDMENT.  Subchapter A, Chapter 27, Government
 891-15  Code, is amended by adding Section 27.006 to read as follows:
 891-16        Sec. 27.006.  COLLECTING DEBT FOR ANOTHER; OFFENSE.  (a)  A
 891-17  justice commits an offense if the justice:
 891-18              (1)  accepts for collection or undertakes the
 891-19  collection of a claim for a debt for another, unless the justice
 891-20  acts under a law that prescribes the duties of the justice; or
 891-21              (2)  accepts compensation not prescribed by law for
 891-22  accepting for collection or undertaking the collection of a claim
 891-23  for debt for another.
 891-24        (b)  An offense under Subsection (a) is a misdemeanor
 891-25  punishable by a fine of not less than $200 or more than $500.
 891-26        (c)  In addition to the fine, the justice may be removed from
 891-27  office.
  892-1        (d)  This section does not prohibit a justice who is
  892-2  authorized by law to act for others in the collection of debts from
  892-3  undertaking to collect a debt for another if the amount of the debt
  892-4  is beyond the jurisdiction of the justice court.  (V.A.C.S. Art.
  892-5  6252-24 (part).)
  892-6        SECTION 10.  CONFORMING AMENDMENT.  Subchapter G, Chapter 51,
  892-7  Government Code, is amended by adding Section 51.606 to read as
  892-8  follows:
  892-9        Sec. 51.606.  PROHIBITED FEES.  A clerk is not entitled to a
 892-10  fee for:
 892-11              (1)  the examination of a paper or record in the
 892-12  clerk's office;
 892-13              (2)  filing any process or document the clerk issues
 892-14  that is returned to court;
 892-15              (3)  a motion or judgment on a motion for security for
 892-16  costs; or
 892-17              (4)  taking or approving a bond for costs.
 892-18        SECTION 11.  CONFORMING AMENDMENT.  Subchapter B, Chapter
 892-19  312, Government Code, is amended by adding Section 312.015 to read
 892-20  as follows:
 892-21        Sec. 312.015.  QUORUM.  A majority of a board or commission
 892-22  established under law is a quorum unless otherwise specifically
 892-23  provided.
 892-24        SECTION 12.  CONFORMING AMENDMENT.  Subchapter B, Chapter
 892-25  312, Government Code, is amended by adding Section 312.016 to read
 892-26  as follows:
 892-27        Sec. 312.016.  STANDARD TIME.  (a)  The standard time in this
  893-1  state is the time at the 90th meridian longitude west from
  893-2  Greenwich, commonly known as "central standard time."
  893-3        (b)  The standard time in a region of this state that used
  893-4  mountain standard time before June 12, 1947, is the time at the
  893-5  105th meridian longitude west from Greenwich, commonly known as
  893-6  "mountain standard time."
  893-7        (c)  Unless otherwise expressly provided, a reference in a
  893-8  statute, order, or rule to the time in which an act shall be
  893-9  performed means the appropriate standard time as provided by this
 893-10  section.
 893-11        SECTION 13.  CONFORMING AMENDMENT.  Subchapter C, Chapter
 893-12  316, Government Code, is amended by adding Sections 316.023 and
 893-13  316.024 to read as follows:
 893-14        Sec. 316.023.  AUTHORIZATION TO FIND FACT.  The governor may
 893-15  find any fact specified by the legislature in an appropriation Act
 893-16  as a contingency for the expenditure of a designated item of
 893-17  appropriation.  (V.A.C.S. Art. 689a-4b, Sec. 1.)
 893-18        Sec. 316.024.  PROCEDURE FOR FINDING FACT.  (a)  The governor
 893-19  shall make a finding of fact under Section 316.023 from the
 893-20  evidence as it exists at the time of the determination.
 893-21        (b)  The governor shall make a finding of fact under Section
 893-22  316.023 only after a public hearing, if such a hearing is required
 893-23  in an appropriation Act.
 893-24        (c)  The governor shall file a decision, together with a
 893-25  finding of fact made under Section 316.023, with the Legislative
 893-26  Budget Board and the comptroller.
 893-27        (d)  The governor's certificate, under the seal of office,
  894-1  stating the decision or finding is evidence of the decision or
  894-2  finding.
  894-3        (e)  A decision or finding under Section 316.023 is final,
  894-4  subject to judicial review by appropriate legal remedies.
  894-5  (V.A.C.S. Art. 689a-4b, Sec. 2.)
  894-6        SECTION 14.  CONFORMING AMENDMENT.  Chapter 316, Government
  894-7  Code, is amended by adding Subchapter G to read as follows:
  894-8                      SUBCHAPTER G.  FISCAL YEAR
  894-9        Sec. 316.071.  FISCAL YEAR; APPROPRIATIONS.  (a)  The state
 894-10  fiscal year ends on August 31 of each year.
 894-11        (b)  Appropriations of state government shall conform to this
 894-12  fiscal year.  (V.A.C.S. Art. 12 (part).)
 894-13        Sec. 316.072.  REPORTS; CLOSURE OF ACCOUNTS.  (a)  All
 894-14  officers required by law to report annually or biennially to the
 894-15  legislature or governor shall close their accounts at the end of
 894-16  the fiscal year.
 894-17        (b)  As soon as practicable after the end of the fiscal year,
 894-18  the officers shall prepare and compile their respective reports.
 894-19  (V.A.C.S. Art. 12 (part).)
 894-20        SECTION 15.  AMENDMENT.  Chapter 401, Government Code, is
 894-21  amended by adding Subchapters C, D, and E to read as follows:
 894-22                   SUBCHAPTER C.  GOVERNOR'S BUDGET
 894-23        Sec. 401.041.  CHIEF BUDGET OFFICER.  The governor is the
 894-24  chief budget officer of the state.  (V.A.C.S. Art. 689a-1.)
 894-25        Sec. 401.042.  UNIFORM BUDGET ESTIMATE FORMS.  (a)  The
 894-26  governor may collaborate with the Legislative Budget Board in
 894-27  designing and preparing uniform budget estimate forms on which all
  895-1  requests for legislative appropriations must be prepared.
  895-2        (b)  The governor shall require that all appropriation
  895-3  requests be submitted to the governor on the forms.  (V.A.C.S.
  895-4  Art. 689a-2.)
  895-5        Sec. 401.043.  BUDGET HEARINGS.  (a)  After receiving the
  895-6  appropriation requests, the governor shall hold one or more public
  895-7  hearings concerning the requests.  The governor shall preside at
  895-8  each hearing, except that the governor may authorize any employee
  895-9  of the executive branch to preside and represent the governor in
 895-10  the governor's absence.
 895-11        (b)  The head of a state agency that is seeking
 895-12  appropriations is entitled to speak at a hearing under this section
 895-13  at which the appropriation request is considered.  The governor may
 895-14  require the head or any employee of a state agency seeking
 895-15  appropriations to appear at the hearing and present information
 895-16  about the appropriations.  A taxpayer is entitled to participate in
 895-17  the discussion at a hearing under this section of any item proposed
 895-18  to be included in the budget under consideration.
 895-19        (c)  In this section, "state agency" means a board,
 895-20  commission, department, or other agency in the executive or
 895-21  judicial branch of state government.  (V.A.C.S. Art. 689a-4; New.)
 895-22        Sec. 401.044.  COOPERATION WITH LEGISLATIVE BUDGET BOARD.
 895-23  (a)  The governor and the Legislative Budget Board may cooperate,
 895-24  exchange information, and hold joint public hearings on the
 895-25  biennial appropriation budget.
 895-26        (b)  At a joint hearing under this section, the governor
 895-27  shall preside or, if the governor is unable to preside:
  896-1              (1)  the lieutenant governor shall preside; or
  896-2              (2)  a person appointed by the governor and the
  896-3  lieutenant governor shall preside.  (V.A.C.S. Art. 689a-4a.)
  896-4        Sec. 401.045.  LEGISLATIVE EXPENSES.  The governor may not
  896-5  include in the governor's budget or appropriation bill any
  896-6  appropriation for per diem or mileage expenses of members of the
  896-7  legislature or for necessary expenses of the legislature.
  896-8  (V.A.C.S. Art. 689a-8.)
  896-9        Sec. 401.046.  DISTRIBUTION OF BUDGET.  (a)  The governor
 896-10  shall deliver a copy of the governor's budget to each member of the
 896-11  legislature not later than the sixth day of each regular
 896-12  legislative session.
 896-13        (b)  The governor shall have as many copies of the budget
 896-14  printed for public distribution as the governor considers
 896-15  necessary.  (V.A.C.S. Art. 689a-6.)
 896-16        Sec. 401.047.  PENALTY.  A person who refuses to comply with
 896-17  a provision of this subchapter other than Section 401.044 commits
 896-18  an offense.  An offense under this section is punishable by a fine
 896-19  of not less than $100 or more than $1,000, confinement in county
 896-20  jail for not less than one month or more than one year, or both
 896-21  fine and confinement.  (V.A.C.S. Art. 689a-21.)
 896-22        Sec. 401.048.  ANNUAL BUDGETS.  A reference in this
 896-23  subchapter or in Chapter 322 to a biennial budget or a regular
 896-24  legislative session means an annual budget or an annual budget
 896-25  session if a constitutional amendment is adopted providing for
 896-26  annual budget sessions of the legislature.  (V.A.C.S. Art.
 896-27  689a-8a.)
  897-1           (Sections 401.049-401.060 reserved for expansion)
  897-2          SUBCHAPTER D.  GOVERNOR'S EMERGENCY APPROPRIATIONS
  897-3        Sec. 401.061.  APPROPRIATIONS FOR EMERGENCY.  The legislature
  897-4  may appropriate money to the governor to be used only:
  897-5              (1)  in an emergency, including an imperative public
  897-6  necessity;
  897-7              (2)  for the executive branch of state government;
  897-8              (3)  if other money is not available, because
  897-9  previously appropriated money has been spent or obligated; and
 897-10              (4)  for purposes for which specific other
 897-11  appropriations previously have been made.  (V.A.C.S. Art. 689a-4c,
 897-12  Secs. 1 (part), 2 (part), 4 (part).)
 897-13        Sec. 401.062.  CERTIFICATION OF EMERGENCY.  (a)  The governor
 897-14  may determine that an emergency exists requiring the use of
 897-15  appropriations made under Section 401.061.
 897-16        (b)  A governor who makes a determination under this section
 897-17  shall certify to the comptroller the facts constituting the
 897-18  emergency and the reasons why the facts constitute an emergency.
 897-19        (c)  The defense of the nation and this state and the safety
 897-20  and economic prosperity of the people of this state require the
 897-21  governor, in making a determination to use or authorize the use of
 897-22  an appropriation made under Section 401.061, to give preference to
 897-23  impacted regions of significant new naval military facilities, as
 897-24  those terms are defined by Section 4, Article 1, National Defense
 897-25  Impacted Region Assistance Act of 1985 (Article 689a-4d, Vernon's
 897-26  Texas Civil Statutes).  (V.A.C.S. Art. 689a-4c, Sec. 2 (part).)
 897-27        Sec. 401.063.  DETERMINATION OF AVAILABILITY OF MONEY.  (a)
  898-1  After receiving a certification under Section 401.062, the
  898-2  comptroller shall determine whether money other than emergency
  898-3  appropriations is available for purposes of the emergency.  The
  898-4  comptroller may obtain from any other agency whatever assistance
  898-5  the comptroller considers necessary for this purpose.
  898-6        (b)  The comptroller shall endorse on the governor's
  898-7  certification the availability or unavailability of other money,
  898-8  stating the source and amounts of available money, if any.
  898-9        (c)  The comptroller must return the governor's certification
 898-10  to the governor's office not later than the second working day
 898-11  after the date the comptroller receives the certification.
 898-12  (V.A.C.S. Art. 689a-4c, Secs. 1 (part), 2 (part).)
 898-13        Sec. 401.064.  FILING OF CERTIFICATION.  The governor shall
 898-14  file with the secretary of state and the Legislative Budget Board a
 898-15  copy of the governor's original certification and the returned
 898-16  certification containing the comptroller's endorsement.  (V.A.C.S.
 898-17  Art. 689a-4c, Sec. 2 (part).)
 898-18        Sec. 401.065.  EXPENDITURE FOR EMERGENCY.  (a)  The governor
 898-19  may spend appropriations made under Section 401.061 for the purpose
 898-20  of a certified emergency, but only after:
 898-21              (1)  the certification is endorsed by the comptroller
 898-22  showing that money other than emergency appropriations is not
 898-23  available for purposes of the emergency; and
 898-24              (2)  the governor receives the certification from the
 898-25  comptroller.
 898-26        (b)  The comptroller shall draw and the state treasurer shall
 898-27  pay the necessary warrants for the emergency.
  899-1        (c)  The governor by interagency contract may authorize an
  899-2  agency of the executive branch of state government to administer
  899-3  emergency appropriations approved under this subchapter.  A
  899-4  contract made under this subsection is exempt from Chapter 771.
  899-5  (V.A.C.S. Art. 689a-4c, Secs. 2 (part), 3, 4 (part).)
  899-6           (Sections 401.066-401.080 reserved for expansion)
  899-7              SUBCHAPTER E.  SUCCESSION OF GOVERNOR-ELECT
  899-8                     AND LIEUTENANT GOVERNOR-ELECT
  899-9        Sec. 401.081.  SUCCESSION OF GOVERNOR-ELECT AND LIEUTENANT
 899-10  GOVERNOR-ELECT.  The speaker of the house of representatives and
 899-11  the president pro tem of the senate shall call a joint session of
 899-12  the house of representatives and the senate for the purpose of
 899-13  electing a governor and a lieutenant governor if:
 899-14              (1)  the governor-elect and the lieutenant
 899-15  governor-elect die or are permanently incapacitated to take their
 899-16  oaths of office at the time the legislature canvasses the election
 899-17  returns for governor and lieutenant governor; and
 899-18              (2)  the legislature finds that the governor-elect and
 899-19  the lieutenant governor-elect are not able to take the oath of
 899-20  office and to fulfill the duties of office.
 899-21        Sec. 401.082.  TERM OF SERVICE AS GOVERNOR.  The individual
 899-22  who receives the highest number of votes cast by the members of the
 899-23  legislature for governor shall hold that office until the next
 899-24  general election.
 899-25        Sec. 401.083.  TERM OF SERVICE AS LIEUTENANT GOVERNOR.  The
 899-26  individual who receives the highest number of votes cast by members
 899-27  of the legislature for lieutenant governor shall hold that office
  900-1  until the next general election.
  900-2        SECTION 16.  CONFORMING AMENDMENT.  Section 403.013(d),
  900-3  Government Code, is amended to read as follows:
  900-4        (d)  The report under Subsection (c) shall be compiled from
  900-5  the financial information requested by the comptroller under
  900-6  Subchapter B, Chapter 2101 <Article 4345a, Revised Statutes>, until
  900-7  it can be prepared from information contained in a fully
  900-8  operational uniform automated statewide accounting and reporting
  900-9  system.
 900-10        SECTION 17.  CONFORMING AMENDMENT.  Subchapter B, Chapter
 900-11  403, Government Code, is amended by adding Section 403.022 to read
 900-12  as follows:
 900-13        Sec. 403.022.  REVIEW OF STATE AGENCIES.  (a)  The
 900-14  comptroller periodically may review and analyze the effectiveness
 900-15  and efficiency of the policies, management, fiscal affairs, and
 900-16  operations of state agencies.
 900-17        (b)  The comptroller shall report the findings of the review
 900-18  and analysis to the governor, lieutenant governor, and speaker of
 900-19  the house of representatives.
 900-20        (c)  The legislature may consider the comptroller's reports
 900-21  in connection with the legislative appropriations process.
 900-22        SECTION 18.  CONFORMING AMENDMENT.  Subchapter B, Chapter
 900-23  403, Government Code, is amended by adding Section 403.0121 to read
 900-24  as follows:
 900-25        Sec. 403.0121.  ACCEPTANCE OF FEDERAL MONEY.  The comptroller
 900-26  shall execute instruments necessary to accept money, gifts, or
 900-27  assets authorized by federal statute to be paid to the state in
  901-1  lieu of taxes or as a gift by the Secretary of Housing and Urban
  901-2  Development or any federal agency.  The comptroller shall deposit
  901-3  funds received under this section in the general revenue fund.
  901-4        SECTION 19.  CONFORMING AMENDMENT.  Subchapter C, Chapter
  901-5  404, Government Code, is amended by adding Section 404.0211 to read
  901-6  as follows:
  901-7        Sec. 404.0211.  CONFLICT OF INTEREST.  A bank is not
  901-8  disqualified from serving as a depository for funds of a state
  901-9  agency if:
 901-10              (1)  an officer or employee of the agency who does not
 901-11  have the duty to select the agency's depository is an officer,
 901-12  director, or shareholder of the bank; or
 901-13              (2)  one or more officers or employees of the agency
 901-14  who have the duty to select the agency's depository are officers or
 901-15  directors of the bank or own or have a beneficial interest,
 901-16  individually or collectively, in 10 percent or less of the
 901-17  outstanding capital stock of the bank, if:
 901-18                    (A)  a majority of the members of the board,
 901-19  commission, or other body of the agency vote to select the bank as
 901-20  a depository; and
 901-21                    (B)  the interested officer or employee does not
 901-22  vote or take part in the proceedings.
 901-23        SECTION 20.  CONFORMING AMENDMENT.  Subchapter F, Chapter
 901-24  431, Government Code, is amended by adding Section 431.085 to read
 901-25  as follows:
 901-26        Sec. 431.085.  EMPLOYEES IN NATIONAL GUARD; EMERGENCY LEAVE.
 901-27  A state employee called to active duty as a member of the National
  902-1  Guard by the  governor is entitled to receive emergency leave
  902-2  without loss of military or annual leave.
  902-3        SECTION 21.  CONFORMING AMENDMENT.  If Chapter 779, Acts of
  902-4  the 72nd Legislature, Regular Session, 1991, does not take effect
  902-5  as provided by Section 2 of that Act, Sections 659.012(a) and (c),
  902-6  Government Code, as added by this Act, are amended to read as
  902-7  follows:
  902-8        (a)  A justice of a court of appeals other than the chief
  902-9  justice is entitled to an annual salary from the state that is 10
 902-10  <five> percent less than the salary provided by the General
 902-11  Appropriations Act for a justice of the supreme court.  The
 902-12  combined salary of a justice of a court of appeals other than the
 902-13  chief justice from all state and county sources may not exceed the
 902-14  amount that is $1,000 less than the salary provided for a justice
 902-15  of the supreme court.
 902-16        (c)  A judge of a district court is entitled to an annual
 902-17  salary from the state that is five <10> percent less than the
 902-18  salary provided in the General Appropriations Act for a justice of
 902-19  a court of appeals <the supreme court>.  Unless otherwise provided
 902-20  by law, the combined salary of a district judge from state and
 902-21  county sources may not exceed the amount that is $2,000 less than
 902-22  the salary provided for a justice of the supreme court.  To the
 902-23  extent of any conflict, the salary differential provided by this
 902-24  section for the combined salary of a district judge prevails over
 902-25  any differential set by Chapter 32.
 902-26        SECTION 22.  CONFORMING AMENDMENT.  Subchapter A, Chapter 51,
 902-27  Local Government Code, is amended by adding Section 51.002 to read
  903-1  as follows:
  903-2        Sec. 51.002.  FAIR HOUSING ORDINANCES.  (a)  The governing
  903-3  body of a municipality may adopt fair housing ordinances that
  903-4  provide fair housing rights, compliance duties, and remedies that
  903-5  are substantially equivalent to those granted under federal law.
  903-6  Enforcement procedures and remedies in fair housing ordinances may
  903-7  vary from state or federal fair housing law.
  903-8        (b)  Fair housing ordinances that were in existence on
  903-9  January 1, 1991, and are more restrictive than federal fair housing
 903-10  law shall remain in effect.
 903-11        SECTION 23.  CONFORMING AMENDMENT.  Subtitle B, Title 3,
 903-12  Local Government Code, is amended by adding Chapter 88 to read as
 903-13  follows:
 903-14        CHAPTER 88.  OFFICIAL BONDS OF CERTAIN COUNTY OFFICERS
 903-15        Sec. 88.001.  CERTAIN BONDS PAYABLE TO COUNTY JUDGE; CUSTODY
 903-16  OF BONDS.  The official bond of a county officer that is required
 903-17  by law to  be approved by the commissioners court must, except as
 903-18  required by other law, be made payable to the county judge and kept
 903-19  and recorded by the county clerk.
 903-20        Sec. 88.002.  APPLICATION OF SURETY TO TERMINATE LIABILITY ON
 903-21  BOND.  A surety on the official bond of a county officer may apply
 903-22  to the commissioners court to be relieved from the bond.
 903-23        Sec. 88.003.  NOTICE TO OFFICER OF SURETY'S APPLICATION.  (a)
 903-24  The county clerk shall issue to the officer giving the bond a
 903-25  notice and a copy of a surety's application to be relieved from a
 903-26  bond.
 903-27        (b)  The sheriff or a constable of the county shall serve the
  904-1  notice and a copy of the application under this section on the
  904-2  officer.
  904-3        Sec. 88.004.  OFFICER TO STOP EXERCISING FUNCTIONS OF OFFICE.
  904-4  On service of notice under Section 88.003, an officer shall stop
  904-5  exercising the functions of the officer's office, except that:
  904-6              (1)  the officer shall preserve records and property in
  904-7  the officer's charge; and
  904-8              (2)  if the officer is a sheriff or constable, the
  904-9  officer shall:
 904-10                    (A)  keep prisoners;
 904-11                    (B)  preserve the peace; and
 904-12                    (C)  execute warrants of arrest.
 904-13        Sec. 88.005.  OFFICER WHO FAILS TO GIVE NEW BOND VACATES
 904-14  OFFICE.  An officer who does not give a new bond before the 21st
 904-15  day after the date the officer receives notice under Section 88.003
 904-16  vacates the officer's office.
 904-17        Sec. 88.006.  NEW BOND; DISCHARGE OF FORMER SURETIES.  If an
 904-18  officer served notice under Section 88.003 gives a new bond and the
 904-19  bond is approved, the former sureties are discharged from liability
 904-20  for misconduct of the officer after the approval of the new bond.
 904-21        Sec. 88.007.  NEW BOND REQUIRED BY COMMISSIONERS COURT.  (a)
 904-22  A commissioners court that finds that a county officer's bond
 904-23  approved by the court is insufficient for any reason shall:
 904-24              (1)  require the officer to give a new bond or
 904-25  additional security; and
 904-26              (2)  have the officer cited to appear at a term of the
 904-27  court not earlier than the sixth day after the date of service, and
  905-1  take any action the court considers best for the public interest.
  905-2        (b)  Action taken by the commissioners court under this
  905-3  section is final and may not be appealed.
  905-4        SECTION 24.  CONFORMING AMENDMENT.  Chapter 102, Local
  905-5  Government Code, is amended by adding Section 102.0065 to read as
  905-6  follows:
  905-7        Sec. 102.0065.  SPECIAL NOTICE BY PUBLICATION FOR BUDGET
  905-8  HEARING.  (a)  The governing body of a municipality shall publish
  905-9  notice before a public hearing relating to a budget in at least one
 905-10  newspaper of general circulation in the county in which the
 905-11  municipality is located.
 905-12        (b)  Notice published under this section is in addition to
 905-13  notice required by other law.  Notice under this section shall be
 905-14  published not earlier than the 30th or later than the 10th day
 905-15  before the date of the hearing.
 905-16        (c)  This section does not apply to the governing body of a
 905-17  municipality required by other law to give notice by publication of
 905-18  a hearing on a budget.
 905-19        SECTION 25.  CONFORMING AMENDMENT.  Section 105.014(c), Local
 905-20  Government Code, is amended to read as follows:
 905-21        (c)  The conflict of interests provisions of Section 131.903
 905-22  <Chapter 179, Acts of the 60th Legislature, Regular Session, 1967
 905-23  (Article 2529c, Vernon's Texas Civil Statutes),> apply to the
 905-24  selection of the depositories.
 905-25        SECTION 26.  CONFORMING AMENDMENT.  Subchapter A, Chapter
 905-26  111, Local Government Code, is amended by adding Section 111.0075
 905-27  to read as follows:
  906-1        Sec. 111.0075.  SPECIAL NOTICE BY PUBLICATION FOR BUDGET
  906-2  HEARING.  (a)  A commissioners court shall publish notice before a
  906-3  public hearing relating to a budget in at least one newspaper of
  906-4  general circulation in the county.
  906-5        (b)  Notice published under this section is in addition to
  906-6  notice required by other law.  Notice under this section shall be
  906-7  published not earlier than the 30th or later than the 10th day
  906-8  before the date of the hearing.
  906-9        (c)  This section does not apply to a commissioners court
 906-10  required by other law to give notice by publication of a hearing on
 906-11  a budget.
 906-12        SECTION 27.  CONFORMING AMENDMENT.  Subchapter B, Chapter
 906-13  111, Local Government Code, is amended by adding Section 111.0385
 906-14  to read as follows:
 906-15        Sec. 111.0385.  SPECIAL NOTICE BY PUBLICATION FOR BUDGET
 906-16  HEARING.  (a)  A commissioners court shall publish notice before a
 906-17  public hearing relating to a budget in at least one newspaper of
 906-18  general circulation in the county.
 906-19        (b)  Notice published under this section is in addition to
 906-20  notice required by other law.  Notice under this section shall be
 906-21  published not earlier than the 30th or later than the 10th day
 906-22  before the date of the hearing.
 906-23        (c)  This section does not apply to a commissioners court
 906-24  required by other law to give notice by publication of a hearing on
 906-25  a budget.
 906-26        SECTION 28.  CONFORMING AMENDMENT.  Subchapter C, Chapter
 906-27  111, Local Government Code, is amended by adding Section 111.0675
  907-1  to read as follows:
  907-2        Sec. 111.0675.  COMMISSIONERS COURT:  SPECIAL NOTICE BY
  907-3  PUBLICATION FOR BUDGET HEARING.  (a)  A commissioners court shall
  907-4  publish notice before a public hearing relating to a budget in at
  907-5  least one newspaper of general circulation in the county.
  907-6        (b)  Notice published under this section is in addition to
  907-7  notice required by other law.  Notice under this section shall be
  907-8  published not earlier than the 30th or later than the 10th day
  907-9  before the date of the hearing.
 907-10        (c)  This section does not apply to a commissioners court
 907-11  required by other law to give notice by publication of a hearing on
 907-12  a budget.
 907-13        SECTION 29.  CONFORMING AMENDMENT.  Section 116.024(d), Local
 907-14  Government Code, is amended to read as follows:
 907-15        (d)  The conflict of interests provisions of Section 131.903
 907-16  <Chapter 179, Acts of the 60th Legislature, Regular Session, 1967
 907-17  (Article 2529c, Vernon's Texas Civil Statutes),> apply to the
 907-18  selection of the depositories.
 907-19        SECTION 30.  CONFORMING AMENDMENT.  Section 117.023(c), Local
 907-20  Government Code, is amended to read as follows:
 907-21        (c)  The conflict of interests provisions of Section 131.903
 907-22  <Chapter 179, Acts of the 60th Legislature, Regular Session, 1967
 907-23  (Article 2529c, Vernon's Texas Civil Statutes),> apply to the
 907-24  selection of the depository.
 907-25        SECTION 31.  CONFORMING AMENDMENT.  Subchapter A, Chapter
 907-26  118, Local Government Code, is amended by adding Section 118.002 to
 907-27  read as follows:
  908-1        Sec. 118.002.  BILL FOR FEES.  A fee under this chapter is
  908-2  not payable to a person until a clerk or officer produces, or is
  908-3  ready to produce, a bill in writing containing the details of the
  908-4  fee to the person who owes the fee.  The bill must be signed by the
  908-5  clerk or officer to whom the fee is due or who charges the fee or
  908-6  by the successor in office or legal representative of the clerk or
  908-7  officer.  (V.A.C.S. Art. 3908 (part).)
  908-8        SECTION 32.  CONFORMING AMENDMENT.  Subchapter C, Chapter
  908-9  118, Local Government Code, is amended by adding Section 118.066 to
 908-10  read as follows:
 908-11        Sec. 118.066.  PROHIBITED FEES.  A county clerk is not
 908-12  entitled to a fee for:
 908-13              (1)  the examination of a paper or record in the
 908-14  clerk's office;
 908-15              (2)  filing any process or document the clerk issues
 908-16  that is returned to court;
 908-17              (3)  a motion or judgment on a motion for security for
 908-18  costs; or
 908-19              (4)  taking or approving a bond for costs.
 908-20        SECTION 33.  CONFORMING AMENDMENT.  Subchapter E, Chapter
 908-21  118, Local Government Code, is amended by adding Section 118.124 to
 908-22  read as follows:
 908-23        Sec. 118.124.  PROHIBITED FEES.  A justice of the peace is
 908-24  not entitled to a fee for:
 908-25              (1)  the examination of a paper or record in the
 908-26  justice's office;
 908-27              (2)  filing any process or document the justice issues
  909-1  that is returned to court;
  909-2              (3)  a motion or judgment on a motion for security for
  909-3  costs; or
  909-4              (4)  taking or approving a bond for costs.
  909-5        SECTION 34.  CONFORMING AMENDMENT.  Chapter 118, Local
  909-6  Government Code, is amended by adding Subchapter Y to read as
  909-7  follows:
  909-8                       SUBCHAPTER Y.  PENALTIES
  909-9        Sec. 118.801.  OVERCHARGING OF FEES; PENALTY.  An officer
 909-10  named in this chapter who demands and receives a higher fee than
 909-11  authorized under this chapter or a fee that is not authorized under
 909-12  this chapter is liable to the aggrieved person for four times the
 909-13  amount unlawfully demanded and received.
 909-14        SECTION 35.  CONFORMING AMENDMENT.  Subchapter A, Chapter
 909-15  131, Local Government Code, is amended by adding Section 131.005 to
 909-16  read as follows:
 909-17        Sec. 131.005.  STATE FUNDS.  (a)  The comptroller shall
 909-18  determine the amount of state funds held by a county depository
 909-19  that suspends business or is taken charge of by the banking
 909-20  commissioner of Texas or the federal comptroller of the currency.
 909-21  The comptroller may:
 909-22              (1)  contract with a special depository selected by the
 909-23  county authorities as provided by this subchapter for the custody
 909-24  and payment of those funds; and
 909-25              (2)  approve a bond for the deposit contract.
 909-26        (b)  State funds placed in a special depository as provided
 909-27  by Subsection (a) shall bear the average rate of interest received
  910-1  by the state on state funds placed with regularly selected state
  910-2  depositories.
  910-3        (c)  The comptroller may proceed with available legal
  910-4  remedies against a suspended bank that is a depository for state
  910-5  funds if the comptroller considers that action to be in the best
  910-6  interest of the public.
  910-7        SECTION 36.  CONFORMING AMENDMENT.  Subchapter Z, Chapter
  910-8  131, Local Government Code, is amended by adding Section 131.903 to
  910-9  read as follows:
 910-10        Sec. 131.903.  CONFLICT OF INTEREST.  (a)  A bank is not
 910-11  disqualified from serving as a depository for funds of a political
 910-12  subdivision if:
 910-13              (1)  an officer or employee of the political
 910-14  subdivision who does not have the duty to select the political
 910-15  subdivision's depository is an officer, director, or shareholder of
 910-16  the bank; or
 910-17              (2)  one or more officers or employees of the political
 910-18  subdivision who have the duty to select the political subdivision's
 910-19  depository are officers or directors of the bank or own or have a
 910-20  beneficial interest, individually or collectively, in 10 percent or
 910-21  less of the outstanding capital stock of the bank, if:
 910-22                    (A)  a majority of the members of the board,
 910-23  commission, or other body of the political subdivision vote to
 910-24  select the bank as a depository; and
 910-25                    (B)  the interested officer or employee does not
 910-26  vote or take part in the proceedings.
 910-27        (b)  This section may not be construed as changing or
  911-1  superseding a conflicting provision in the charter of a home-rule
  911-2  municipality.
  911-3        SECTION 37.  CONFORMING AMENDMENT.  Chapter 140, Local
  911-4  Government Code, is amended by adding Sections 140.005 and 140.006
  911-5  to read as follows:
  911-6        Sec. 140.005.  ANNUAL FINANCIAL STATEMENT OF SCHOOL, ROAD, OR
  911-7  OTHER DISTRICT.  The governing body of a school district, junior
  911-8  college district, or a district or authority organized under
  911-9  Article III, Section 52, or Article XVI, Section 59, of the Texas
 911-10  Constitution, shall prepare an annual financial statement showing
 911-11  for each fund subject to the authority of the governing body during
 911-12  the fiscal year:
 911-13              (1)  the total receipts of the fund, itemized by source
 911-14  of revenue, including taxes, assessments, service charges, grants
 911-15  of state money, gifts, or other general sources from which funds
 911-16  are derived;
 911-17              (2)  the total disbursements of the fund, itemized by
 911-18  the nature of the expenditure; and
 911-19              (3)  the balance in the fund at the close of the fiscal
 911-20  year.
 911-21        Sec. 140.006.  PUBLICATION OF ANNUAL FINANCIAL STATEMENT BY
 911-22  SCHOOL, ROAD, OR OTHER DISTRICT.  (a)  Except as provided by
 911-23  Subsection (c), the presiding officer of a governing body shall
 911-24  submit a financial statement prepared under Section 140.005 to a
 911-25  newspaper in each county in which the district or any part of the
 911-26  district is located.
 911-27        (b)  If a district is located in more than one county, the
  912-1  financial statement may be published in a newspaper that has
  912-2  general circulation in the district.  If a newspaper is not
  912-3  published in the county, the financial statement may be published
  912-4  in a newspaper in an adjoining county.
  912-5        (c)  The presiding officer of a school district shall submit
  912-6  a financial statement prepared under Section 140.005 to a daily,
  912-7  weekly, or biweekly newspaper published within the boundaries of
  912-8  the district.  If a daily, weekly, or biweekly newspaper is not
  912-9  published within the boundaries of the district, the financial
 912-10  statement shall be published in the manner provided by Subsections
 912-11  (a) and (b).
 912-12        (d)  A statement shall be published not later than two months
 912-13  after the date the fiscal year ends, except that a school
 912-14  district's statement shall be published not later than the 120th
 912-15  day after the date the fiscal year ends and in accordance with the
 912-16  accounting method required by the Central Education Agency.
 912-17        SECTION 38.  CONFORMING AMENDMENT.  Section 142.006, Local
 912-18  Government Code, is amended to read as follows:
 912-19        Sec. 142.006.  MOTOR VEHICLE LIABILITY INSURANCE FOR PEACE
 912-20  OFFICERS AND FIRE FIGHTERS.  (a)  <In this section, "motor vehicle"
 912-21  means any motor vehicle for which motor vehicle automobile
 912-22  insurance is written under Subchapter A, Chapter 5, Insurance Code.>
 912-23        <(b)>  This section does not apply to a municipality covered
 912-24  by Section 142.007.
 912-25        (b) <(c)>  A municipality shall provide for insuring each
 912-26  peace officer and fire fighter <insure peace officers and fire
 912-27  fighters> in its employ against liability to third persons arising
  913-1  out of the operation, maintenance, or use of a motor vehicle owned
  913-2  or leased by the municipality.
  913-3        (c)  The liability coverage provided under this section must
  913-4  be in amounts not less than those required by the Texas Motor
  913-5  Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas
  913-6  Civil Statutes) to provide proof of financial responsibility.
  913-7        (d)  The municipality may elect to be self-insured or to
  913-8  reimburse the actual cost of extended automobile liability
  913-9  insurance endorsements obtained by a <its> peace officer <officers>
 913-10  and fire fighter <fighters> on an <their> individually owned
 913-11  automobile liability insurance policy <policies>.  The extended
 913-12  endorsements must:
 913-13              (1)  be in the amount required by Subsection (c); and
 913-14              (2)  extend the coverage to include the operation and
 913-15  use of vehicles by a peace officer or fire fighter in the scope of
 913-16  the officer's or fire fighter's employment <be in amounts not less
 913-17  than those required under this section and shall extend the
 913-18  coverage to include the operation and use of municipal vehicles by
 913-19  the peace officers or fire fighters in the scope of their
 913-20  employment>.
 913-21        (e)  If the reimbursement method is used, the municipality <A
 913-22  municipality that elects to use the reimbursement method> may
 913-23  require that a peace officer or fire fighter who operates and uses
 913-24  a motor vehicle <all peace officers and fire fighters who operate
 913-25  and use motor vehicles> present proof that an extended coverage
 913-26  endorsement has been purchased and is in effect for the period of
 913-27  reimbursement <current>.
  914-1        (f)  In this section, "motor vehicle" means any motor vehicle
  914-2  for which motor vehicle automobile insurance may be written under
  914-3  Subchapter A, Chapter 5, Insurance Code.
  914-4        <(f)  Liability coverage provided under this section must be
  914-5  in amounts not less than those required by the Texas Motor Vehicle
  914-6  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
  914-7  Statutes) to provide proof of financial responsibility.>
  914-8        SECTION 39.  CONFORMING AMENDMENT.  Section 155.021, Local
  914-9  Government Code, is amended to read as follows:
 914-10        Sec. 155.021.  DEDUCTIONS ENUMERATED.  The county treasurer
 914-11  or, if another officer is specified by law, that other officer
 914-12  shall make the deductions from, or take other similar actions with
 914-13  regard to, the compensation of county employees as required:
 914-14              (1)  for employee contributions for coverage under the
 914-15  federal social security program in accordance with Chapter 500,
 914-16  Acts of the 52nd Legislature, 1951 (Article 695g, Vernon's Texas
 914-17  Civil Statutes);
 914-18              (2)  for the purchase of annuities or for contributions
 914-19  to investments for employees in accordance with Chapter 22, Acts of
 914-20  the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
 914-21  Vernon's Texas Civil Statutes);
 914-22              (3)  for the purchase of United States savings bonds
 914-23  for employees in accordance with Chapter 691, Government Code <603,
 914-24  Acts of the 51st Legislature, Regular Session, 1949 (Article
 914-25  6252-3, Vernon's Texas Civil Statutes)>;
 914-26              (4)  for employee participation in a deferred
 914-27  compensation plan in accordance with Chapter 197, Acts of the 63rd
  915-1  Legislature, Regular Session, 1973 (Article 6252-3b, Vernon's Texas
  915-2  Civil Statutes); or
  915-3              (5)  for employee contributions to a retirement system
  915-4  in accordance with Section 845.403, Government Code.
  915-5        SECTION 40.  AMENDMENT.  The Property Code is amended by
  915-6  adding Title 15 to read as follows:
  915-7                   TITLE 15.  FAIR HOUSING PRACTICES
  915-8                 CHAPTER 301.  TEXAS FAIR HOUSING ACT
  915-9            SUBCHAPTER A.  TITLE, PURPOSE, AND DEFINITIONS
 915-10        Sec. 301.001.  SHORT TITLE.  This chapter may be cited as the
 915-11  Texas Fair Housing Act.  (V.A.C.S. Art. 1f, Sec. 1.01.)
 915-12        Sec. 301.002.  PURPOSES.  The purposes of this chapter are
 915-13  to:
 915-14              (1)  provide for fair housing practices in this state;
 915-15              (2)  create a procedure for investigating and settling
 915-16  complaints of discriminatory housing practices; and
 915-17              (3)  provide rights and remedies substantially
 915-18  equivalent to those granted under federal law.  (V.A.C.S. Art. 1f,
 915-19  Sec. 1.02.)
 915-20        Sec. 301.003.  DEFINITIONS.  In this chapter:
 915-21              (1)  "Aggrieved person" includes any person who:
 915-22                    (A)  claims to have been injured by a
 915-23  discriminatory housing practice; or
 915-24                    (B)  believes that the person will be injured by
 915-25  a discriminatory housing practice that is about to occur.
 915-26              (2)  "Complainant" means a person, including the
 915-27  commission, who files a complaint under Section 301.081.
  916-1              (3)  "Commission" means the Commission on Human Rights.
  916-2              (4)  "Conciliation" means the informal negotiations
  916-3  among an aggrieved person, the respondent, and the commission to
  916-4  resolve issues raised by a complaint or by the investigation of the
  916-5  complaint.
  916-6              (5)  "Conciliation agreement" means a written agreement
  916-7  resolving the issues in conciliation.
  916-8              (6)  "Disability" means a mental or physical impairment
  916-9  that substantially limits at least one major life activity, a
 916-10  record of the impairment, or being regarded as having the
 916-11  impairment.  The term does not include current illegal use or
 916-12  addiction to any drug or illegal or federally controlled substance
 916-13  and does not apply to an individual because of an individual's
 916-14  sexual orientation or because that individual is a transvestite.
 916-15              (7)  "Discriminatory housing practice" means an act
 916-16  prohibited by Subchapter B or conduct that is an offense under
 916-17  Subchapter I.
 916-18              (8)  "Dwelling" means any:
 916-19                    (A)  structure or part of a structure that is
 916-20  occupied as, or designed or intended for occupancy as, a residence
 916-21  by one or more families; or
 916-22                    (B)  vacant land that is offered for sale or
 916-23  lease for the construction or location of a structure or part of a
 916-24  structure described by Paragraph (A).
 916-25              (9)  "Family" includes a single individual.
 916-26              (10)  "Respondent" means:
 916-27                    (A)  a person accused of a violation of this
  917-1  chapter in a complaint of discriminatory housing practice; or
  917-2                    (B)  a person identified as an additional or
  917-3  substitute respondent under Section 301.084 or an agent of an
  917-4  additional or substitute respondent.
  917-5              (11)  "To rent" includes to lease, sublease, or let, or
  917-6  to grant in any other manner, for a consideration, the right to
  917-7  occupy premises not owned by the occupant.  (V.A.C.S. Art. 1f, Sec.
  917-8  1.03 (part).)
  917-9        Sec. 301.004.  FAMILIAL STATUS.  A discriminatory act is
 917-10  committed because of familial status if the act is committed
 917-11  because the person who is the subject of discrimination is:
 917-12              (1)  pregnant;
 917-13              (2)  domiciled with an individual younger than 18 years
 917-14  of age in regard to whom the person:
 917-15                    (A)  is the parent or legal custodian; or
 917-16                    (B)  has the written permission of the parent or
 917-17  legal custodian for domicile with that person; or
 917-18              (3)  in the process of obtaining legal custody of an
 917-19  individual younger than 18 years of age.  (V.A.C.S. Art. 1f, Sec.
 917-20  1.04.)
 917-21        Sec. 301.005.  CONSTRUCTION OF CHAPTER.  The statutory civil
 917-22  remedies or theories of recovery created by this Chapter may not be
 917-23  expanded beyond their express statutory terms.  (V.A.C.S.  Art. 1f,
 917-24  Sec. 10.01.)
 917-25           (Sections 301.006-301.020 reserved for expansion
 917-26               SUBCHAPTER B.  DISCRIMINATION PROHIBITED
 917-27        Sec. 301.021.  SALE OR RENTAL.  (a)  A person may not refuse
  918-1  to sell or rent, after the making of a bona fide offer, refuse to
  918-2  negotiate for the sale or rental of, or in any other manner make
  918-3  unavailable or deny a dwelling to another because of race, color,
  918-4  religion, sex, familial status, or national origin.
  918-5        (b)  A person may not discriminate against another in the
  918-6  terms, conditions, or privileges of sale or rental of a dwelling,
  918-7  or in providing services or facilities in connection with a sale or
  918-8  rental of a dwelling, because of race, color, religion, sex,
  918-9  familial status, or national origin.
 918-10        (c)  This section does not prohibit discrimination against a
 918-11  person because the person has been convicted under federal law or
 918-12  the law of any state of the illegal manufacture or distribution of
 918-13  a controlled substance.  (V.A.C.S. Art. 1f, Sec. 3.01.)
 918-14        Sec. 301.022.  PUBLICATION.  A person may not make, print, or
 918-15  publish or effect the making, printing, or publishing of a notice,
 918-16  statement, or advertisement that is about the sale or rental of a
 918-17  dwelling and that indicates any preference, limitation, or
 918-18  discrimination or the intention to make a preference, limitation,
 918-19  or discrimination because of race, color, religion, sex,
 918-20  disability, familial status, or national origin.  (V.A.C.S. Art.
 918-21  1f, Sec. 3.02.)
 918-22        Sec. 301.023.  INSPECTION.  A person may not represent to
 918-23  another because of race, color, religion, sex, disability, familial
 918-24  status, or national origin that a dwelling is not available for
 918-25  inspection for sale or rental when the dwelling is available for
 918-26  inspection.  (V.A.C.S. Art. 1f, Sec. 3.03.)
 918-27        Sec. 301.024.  ENTRY INTO NEIGHBORHOOD.  A person may not,
  919-1  for profit, induce or attempt to induce another to sell or rent a
  919-2  dwelling by representations regarding the entry or prospective
  919-3  entry into a neighborhood of a person of a particular race, color,
  919-4  religion, sex, disability, familial status, or national origin.
  919-5  (V.A.C.S.  Art. 1f, Sec. 3.04.)
  919-6        Sec. 301.025.  DISABILITY.  (a)  A person may not
  919-7  discriminate in the sale or rental of, or make unavailable or deny,
  919-8  a dwelling to any buyer or renter because of a disability of:
  919-9              (1)  the buyer or renter;
 919-10              (2)  a person residing in or intending to reside in
 919-11  that dwelling after it is sold, rented, or made available; or
 919-12              (3)  any person associated with the buyer or renter.
 919-13        (b)  A person may not discriminate against another in the
 919-14  terms, conditions, or privileges of sale or rental of a dwelling or
 919-15  in the provision of services or facilities in connection with the
 919-16  dwelling because of a disability of:
 919-17              (1)  the other person;
 919-18              (2)  a person residing in or intending to reside in
 919-19  that dwelling after it is sold, rented, or made available; or
 919-20              (3)  any person associated with the other person.
 919-21        (c)  In this section, discrimination includes:
 919-22              (1)  a refusal to permit, at the expense of the person
 919-23  having a disability, a reasonable modification of existing premises
 919-24  occupied or to be occupied by the person if the modification may be
 919-25  necessary to afford the person full enjoyment of the premises;
 919-26              (2)  a refusal to make a reasonable accommodation in
 919-27  rules, policies, practices, or services if the accommodation may be
  920-1  necessary to afford the person equal opportunity to use and enjoy a
  920-2  dwelling; or
  920-3              (3)  the failure to design and construct a covered
  920-4  multifamily dwelling in a manner:
  920-5                    (A)  that allows the public use and common use
  920-6  portions of the dwellings to be readily accessible to and usable by
  920-7  persons having a disability;
  920-8                    (B)  that allows all doors designed to allow
  920-9  passage into and within all premises within the dwellings to be
 920-10  sufficiently wide to allow passage by a person who has a disability
 920-11  and who is in a wheelchair; and
 920-12                    (C)  that provides all premises within the
 920-13  dwellings contain the following features of adaptive design:
 920-14                          (i)  an accessible route into and through
 920-15  the dwelling;
 920-16                          (ii)  light switches, electrical outlets,
 920-17  thermostats, and other environmental controls in accessible
 920-18  locations;
 920-19                          (iii)  reinforcements in bathroom walls to
 920-20  allow later installation of grab bars; and
 920-21                          (iv)  kitchens and bathrooms that are
 920-22  usable and have sufficient space in which an individual in a
 920-23  wheelchair can maneuver.
 920-24        (d)  Compliance with the appropriate requirements of the
 920-25  American National Standard for buildings and facilities providing
 920-26  accessibility and usability for persons having physical
 920-27  disabilities, commonly cited as "ANSI A 117.1," satisfies the
  921-1  requirements of Subsection (c)(3)(C).
  921-2        (e)  Subsection (c)(3) does not apply to a building the first
  921-3  occupancy of which occurred on or before March 13, 1991.
  921-4        (f)  This section does not require a dwelling to be made
  921-5  available to an individual whose tenancy would constitute a direct
  921-6  threat to the health or safety of other individuals or whose
  921-7  tenancy would result in substantial physical damage to the property
  921-8  of others.
  921-9        (g)  In this subsection, the term "covered multifamily
 921-10  dwellings" means:
 921-11              (1)  buildings consisting of four or more units if the
 921-12  buildings have one or more elevators; and
 921-13              (2)  ground floor units in other buildings consisting
 921-14  of four or more units.  (V.A.C.S. Art. 1f, Sec. 3.05.)
 921-15        Sec. 301.026.  RESIDENTIAL REAL ESTATE RELATED TRANSACTION.
 921-16  (a)  A person whose business includes engaging in residential real
 921-17  estate related transactions may not discriminate against another in
 921-18  making a real estate related transaction available or in the terms
 921-19  or conditions of a real estate related transaction because of race,
 921-20  color, religion, sex, disability, familial status, or national
 921-21  origin.
 921-22        (b)  In this section, "residential real estate related
 921-23  transaction" means:
 921-24              (1)  the making or purchasing of loans or the provision
 921-25  of other financial assistance:
 921-26                    (A)  to purchase, construct, improve, repair, or
 921-27  maintain a dwelling; or
  922-1                    (B)  to secure residential real estate; or
  922-2              (2)  the selling, brokering, or appraising of
  922-3  residential real property.  (V.A.C.S. Art. 1f, Sec. 3.06.)
  922-4        Sec. 301.027.  BROKERAGE SERVICES.  A person may not deny
  922-5  another access to, or membership or participation in, a
  922-6  multiple-listing service, real estate brokers' organization, or
  922-7  other service, organization, or facility relating to the business
  922-8  of selling or renting dwellings, or discriminate against a person
  922-9  in the terms or conditions of access, membership, or participation
 922-10  in such an organization, service, or facility because of race,
 922-11  color, religion, sex, disability, familial status, or national
 922-12  origin.  (V.A.C.S. Art. 1f, Sec.  3.07.)
 922-13           (Sections 301.028-301.040 reserved for expansion
 922-14                       SUBCHAPTER C.  EXEMPTIONS
 922-15        Sec. 301.041.  SALES AND RENTALS EXEMPTED.  (a)  Subchapter B
 922-16  does not apply to:
 922-17              (1)  the sale or rental of a single-family house sold
 922-18  or rented by the owner if:
 922-19                    (A)  the owner does not:
 922-20                          (i)  own more than three single-family
 922-21  houses at any one time; or
 922-22                          (ii)  own any interest in, nor is there
 922-23  owned or reserved on the person's behalf, under any express or
 922-24  voluntary agreement, title to or any right to any part of the
 922-25  proceeds from the sale or rental of more than three single-family
 922-26  houses at any one time; and
 922-27                    (B)  the house is sold or rented without:
  923-1                          (i)  the use of the sales or rental
  923-2  facilities or services of a real estate broker, agent, or salesman
  923-3  licensed under The Real Estate License Act (Article 6573a, Vernon's
  923-4  Texas Civil Statutes), or of an employee or agent of a licensed
  923-5  broker, agent, or salesman, or the facilities or services of the
  923-6  owner of a dwelling designed or intended for occupancy by five or
  923-7  more families; or
  923-8                          (ii)  the publication, posting, or mailing
  923-9  of a notice, statement, or advertisement prohibited by Section
 923-10  301.022; or
 923-11              (2)  the sale or rental of the rooms or units in a
 923-12  dwelling containing living quarters occupied by or intended to be
 923-13  occupied by not more than four families living independently of
 923-14  each other, if the owner maintains and occupies one of the living
 923-15  quarters as the owner's residence.
 923-16        (b)  The exemption in Subsection (a)(1) applies only to one
 923-17  sale or rental in a 24-month period if the owner was not the most
 923-18  recent resident of the house at the time of the sale or rental.
 923-19  (V.A.C.S.  Art. 1f, Sec. 1.05.)
 923-20        Sec. 301.042.  RELIGIOUS ORGANIZATION, PRIVATE CLUB, AND
 923-21  APPRAISAL EXEMPTION.  (a)  This chapter does not prohibit a
 923-22  religious organization, association, or society, or a nonprofit
 923-23  institution or organization operated, supervised, or controlled by
 923-24  or in conjunction with a religious organization, association, or
 923-25  society, from:
 923-26              (1)  limiting the sale, rental, or occupancy of
 923-27  dwellings that it owns or operates for other than a commercial
  924-1  purpose to persons of the same religion; or
  924-2              (2)  giving preference to persons of the same religion,
  924-3  unless membership in the religion is restricted because of race,
  924-4  color, or national origin.
  924-5        (b)  This chapter does not prohibit a private club that is
  924-6  not open to the public and that, as an incident to its primary
  924-7  purpose, provides lodging that it owns or operates for other than a
  924-8  commercial purpose from limiting the rental or occupancy of the
  924-9  lodging to its members or from giving preference to its members.
 924-10        (c)  This chapter does not prohibit a person engaged in the
 924-11  business of furnishing appraisals of real property from considering
 924-12  in those appraisals factors other than race, color, religion, sex,
 924-13  disability, familial status, or national origin.  (V.A.C.S. Art.
 924-14  1f, Secs. 1.06, 1.08.)
 924-15        Sec. 301.043.  HOUSING FOR ELDERLY EXEMPTED.  The provisions
 924-16  of this chapter relating to familial status do not apply to
 924-17  housing:
 924-18              (1)  that the commission determines is specifically
 924-19  designed and operated to assist elderly individuals under a federal
 924-20  or state program;
 924-21              (2)  intended for, and solely occupied by, individuals
 924-22  62 years of age or older; or
 924-23              (3)  intended and operated for occupancy by at least
 924-24  one individual 55 years of age or older for each unit as determined
 924-25  by commission rules.  (V.A.C.S.  Art. 1f, Sec. 1.07.)
 924-26        Sec. 301.044.  EFFECT ON OTHER LAW.  (a)  This chapter does
 924-27  not affect a reasonable local or state restriction on the maximum
  925-1  number of occupants permitted to occupy a dwelling or a restriction
  925-2  relating to health or safety standards.
  925-3        (b)  This chapter does not affect a requirement of
  925-4  nondiscrimination in any other state or federal law.  (V.A.C.S.
  925-5  Art. 1f, Sec. 1.09.)
  925-6           (Sections 301.045-301.060 reserved for expansion
  925-7               SUBCHAPTER D.  ADMINISTRATIVE PROVISIONS
  925-8        Sec. 301.061.  COMMISSION ON HUMAN RIGHTS.  The Commission on
  925-9  Human Rights shall administer this chapter.  (V.A.C.S.  Art.  1f,
 925-10  Sec. 2.01.)
 925-11        Sec. 301.062.  RULES.  The commission may adopt rules
 925-12  necessary to implement this chapter, but substantive rules adopted
 925-13  by the commission shall impose obligations, rights, and remedies
 925-14  that are the same as are provided in federal fair housing
 925-15  regulations.  (V.A.C.S. Art. 1f, Sec.  2.02.)
 925-16        Sec. 301.063.  COMPLAINTS.  As provided by Subchapters E and
 925-17  F, the commission shall receive, investigate, seek to conciliate,
 925-18  and act on complaints alleging violations of this chapter.
 925-19  (V.A.C.S. Art. 1f, Sec. 2.03.)
 925-20        Sec. 301.064.  DELEGATION OF AUTHORITY.  The commission by
 925-21  rule may authorize the executive director of the commission to
 925-22  exercise the commission's powers or perform the commission's duties
 925-23  under this chapter.  (V.A.C.S. Art. 1f, Sec. 2.04.)
 925-24        Sec. 301.065.  REPORTS AND STUDIES.  (a)  The commission
 925-25  shall, at least annually, publish a written report recommending
 925-26  legislative or other action to carry out the purposes of this
 925-27  chapter.
  926-1        (b)  The commission shall make studies relating to the nature
  926-2  and extent of discriminatory housing practices in this state.
  926-3  (V.A.C.S. Art. 1f, Sec.  2.05.)
  926-4        Sec. 301.066.  COOPERATION WITH OTHER ENTITIES.  The
  926-5  commission shall cooperate with and may provide technical and other
  926-6  assistance to federal, state, local, and other public or private
  926-7  entities that are designing or operating programs to prevent or
  926-8  eliminate discriminatory housing practices.  (V.A.C.S. Art. 1f,
  926-9  Sec. 2.06.)
 926-10        Sec. 301.067.  SUBPOENAS AND DISCOVERY.  (a)  The commission
 926-11  may issue subpoenas and order discovery in investigations and
 926-12  hearings under this chapter.
 926-13        (b)  The subpoenas and discovery may be ordered to the same
 926-14  extent and are subject to the same limitations as subpoenas and
 926-15  discovery in a civil action in district court.  (V.A.C.S. Art. 1f,
 926-16  Sec. 2.07.)
 926-17        Sec. 301.068.  REFERRAL TO MUNICIPALITY.  The commission may
 926-18  defer proceedings under this chapter and refer a complaint to a
 926-19  municipality that has been certified by the federal Department of
 926-20  Housing and Urban Development as a substantially equivalent fair
 926-21  housing agency.  (V.A.C.S. Art. 1f, Sec. 2.08(b).)
 926-22        Sec. 301.069.  GIFTS AND GRANTS.  (a)  The commission may
 926-23  accept gifts and grants from any public or private source for
 926-24  administering this chapter.
 926-25        (b)  Gifts and grants received shall be deposited to the
 926-26  credit of the fair housing fund in the state treasury.
 926-27        (c)  Money deposited to the credit of the fund may be used
  927-1  only for administering this chapter.  (V.A.C.S. Art. 1f, Secs.
  927-2  2.09, 7.01.)
  927-3           (Sections 301.070-301.080 reserved for expansion
  927-4               SUBCHAPTER E.  ADMINISTRATIVE ENFORCEMENT
  927-5        Sec. 301.081.  COMPLAINT.  (a)  The commission shall
  927-6  investigate complaints of alleged discriminatory housing practices.
  927-7        (b)  A complaint must be:
  927-8              (1)  in writing;
  927-9              (2)  under oath; and
 927-10              (3)  in the form prescribed by the commission.
 927-11        (c)  An aggrieved person may file a complaint with the
 927-12  commission alleging the discriminatory housing practice.  The
 927-13  commission may file a complaint.
 927-14        (d)  A complaint must be filed on or before the first
 927-15  anniversary of the date the alleged discriminatory housing practice
 927-16  occurs or terminates, whichever is later.
 927-17        (e)  A complaint may be amended at any time.
 927-18        (f)  On the filing of a complaint, the commission shall:
 927-19              (1)  give the aggrieved person notice that the
 927-20  complaint has been received;
 927-21              (2)  advise the aggrieved person of the time limits and
 927-22  choice of forums under this chapter; and
 927-23              (3)  not later than the 20th day after the date of the
 927-24  filing of the complaint or the identification of an additional or
 927-25  substitute respondent under Section 301.084, serve on each
 927-26  respondent:
 927-27                    (A)  a notice identifying the alleged
  928-1  discriminatory housing practice and advising the respondent of the
  928-2  procedural rights and obligations of a respondent under this
  928-3  chapter; and
  928-4                    (B)  a copy of the original complaint.  (V.A.C.S.
  928-5  Art. 1f, Sec.  4.01.)
  928-6        Sec. 301.082.  ANSWER.  (a)  Not later than the 10th day
  928-7  after the date of receipt of the notice and copy of the complaint
  928-8  under Section 301.081(f)(3), a respondent may file an answer to the
  928-9  complaint.
 928-10        (b)  An answer must be:
 928-11              (1)  in writing;
 928-12              (2)  under oath; and
 928-13              (3)  in the form prescribed by the commission.
 928-14        (c)  An answer may be amended at any time.
 928-15        (d)  An answer does not inhibit the investigation of a
 928-16  complaint.  (V.A.C.S. Art. 1f, Sec. 4.02.)
 928-17        Sec. 301.083.  Investigation.  (a)  If the federal government
 928-18  has referred a complaint to the commission or has deferred
 928-19  jurisdiction over the subject matter of the complaint to the
 928-20  commission, the commission shall promptly investigate the
 928-21  allegations set forth in the complaint.
 928-22        (b)  The commission shall investigate all complaints and,
 928-23  except as provided by Subsection (c), shall complete an
 928-24  investigation not later than the 100th day after the date the
 928-25  complaint is filed or, if it is unable to complete the
 928-26  investigation within the 100-day period, shall dispose of all
 928-27  administrative proceedings related to the investigation not later
  929-1  than the first anniversary after the date the complaint is filed.
  929-2        (c)  If the commission is unable to complete an investigation
  929-3  within the time periods prescribed by Subsection (b), the
  929-4  commission shall notify the complainant and the respondent in
  929-5  writing of the reasons for the delay.  (V.A.C.S. Art. 1f, Sec.
  929-6  4.03.)
  929-7        Sec. 301.084.  Additional or Substitute Respondent.  (a)  The
  929-8  commission may join a person not named in the complaint as an
  929-9  additional or substitute respondent if during the investigation the
 929-10  commission determines that the person should be accused of a
 929-11  discriminatory housing practice.
 929-12        (b)  In addition to the information required in the notice
 929-13  under Section 301.081(f), the commission shall include in a notice
 929-14  to a respondent joined under this section the reasons for the
 929-15  determination that the person is properly joined as a respondent.
 929-16  (V.A.C.S. Art. 1f, Sec. 4.04.)
 929-17        Sec. 301.085.  Conciliation.  (a)  The commission shall,
 929-18  during the period beginning with the filing of a complaint and
 929-19  ending with the filing of a charge or a dismissal by the
 929-20  commission, to the extent feasible, engage in conciliation with
 929-21  respect to the complaint.
 929-22        (b)  A conciliation agreement between a respondent and the
 929-23  complainant is subject to commission approval.
 929-24        (c)  A conciliation agreement may provide for binding
 929-25  arbitration or another method of dispute resolution.  Dispute
 929-26  resolution that results from a conciliation agreement may authorize
 929-27  appropriate relief, including monetary relief.
  930-1        (d)  A conciliation agreement is public information unless:
  930-2              (1)  the complainant and respondent agree that it is
  930-3  not; and
  930-4              (2)  the commission determines that disclosure is not
  930-5  necessary to further the purposes of this chapter.
  930-6        (e)  Statements made or actions taken in the conciliation may
  930-7  not be made public or used as evidence in a subsequent proceeding
  930-8  under this chapter without the written consent of the persons
  930-9  concerned.
 930-10        (f)  After completion of the commission's investigation, the
 930-11  commission shall make available to the aggrieved person and the
 930-12  respondent, at any time, information derived from the investigation
 930-13  and the final investigative report relating to that investigation.
 930-14  (V.A.C.S. Art. 1f, Sec. 4.05.)
 930-15        Sec. 301.086.  Temporary or Preliminary Relief.  (a)  The
 930-16  commission may authorize a civil action for temporary or
 930-17  preliminary relief pending the final disposition of a complaint if
 930-18  the commission concludes after the filing of the complaint that
 930-19  prompt judicial action is necessary to carry out the purposes of
 930-20  this chapter.
 930-21        (b)  On receipt of the commission's authorization, the
 930-22  attorney general shall promptly file the action.
 930-23        (c)  A temporary restraining order or other order granting
 930-24  preliminary or temporary relief under this section is governed by
 930-25  the applicable Texas Rules of Civil Procedure.
 930-26        (d)  The filing of a civil action under this section does not
 930-27  affect the initiation or continuation of administrative proceedings
  931-1  under Section 301.111.  (V.A.C.S. Art. 1f, Sec. 4.06.)
  931-2        Sec. 301.087.  Investigative Report.  (a)  The commission
  931-3  shall prepare a final investigative report including:
  931-4              (1)  the names of and dates of contacts with witnesses;
  931-5              (2)  a summary of correspondence and other contacts
  931-6  with the aggrieved person and the respondent showing the dates of
  931-7  the correspondence and contacts;
  931-8              (3)  a summary description of other pertinent records;
  931-9              (4)  a summary of witness statements; and
 931-10              (5)  answers to interrogatories.
 931-11        (b)  A final report under this section may be amended if
 931-12  additional evidence is discovered.  (V.A.C.S. Art. 1f, Sec. 4.07.)
 931-13        Sec. 301.088.  Reasonable Cause Determination.  (a)  The
 931-14  commission shall determine from the facts whether reasonable cause
 931-15  exists to believe that a discriminatory housing practice has
 931-16  occurred or is about to occur.
 931-17        (b)  The commission shall make the determination under
 931-18  Subsection (a) not later than the 100th day after the date a
 931-19  complaint is filed unless:
 931-20              (1)  making the determination is impracticable; or
 931-21              (2)  the commission approves a conciliation agreement
 931-22  relating to the complaint.
 931-23        (c)  If within the period provided by Subsection (b) making
 931-24  the determination is impracticable, the commission shall give in
 931-25  writing the complainant and the respondent  the reasons for the
 931-26  delay.
 931-27        (d)  If the commission determines that reasonable cause
  932-1  exists to believe that a discriminatory housing practice has
  932-2  occurred or is about to occur, the commission shall, except as
  932-3  provided by Section 301.090, immediately issue a charge on behalf
  932-4  of the aggrieved person.  (V.A.C.S. Art. 1f, Sec. 4.08.)
  932-5        Sec. 301.089.  Charge.  (a)  A charge issued under Section
  932-6  301.088:
  932-7              (1)  must consist of a short and plain statement of the
  932-8  facts on which the commission finds reasonable cause to believe
  932-9  that a discriminatory housing practice has occurred or is about to
 932-10  occur;
 932-11              (2)  must be based on the final investigative report;
 932-12  and
 932-13              (3)  is not limited to the facts or grounds alleged in
 932-14  the complaint.
 932-15        (b)  Not later than the 20th day after the date the
 932-16  commission issues a charge, the commission shall send a copy of the
 932-17  charge with information about the election under Section 301.093
 932-18  to:
 932-19              (1)  each respondent; and
 932-20              (2)  each aggrieved person on whose behalf the
 932-21  complaint was filed.
 932-22        (c)  The commission shall include with a charge sent to a
 932-23  respondent a notice of the opportunity for a hearing under Section
 932-24  301.111.  (V.A.C.S. Art. 1f, Sec. 4.09.)
 932-25        Sec. 301.090.  Land Use Law.  If the commission determines
 932-26  that the matter involves the legality of a state or local zoning or
 932-27  other land use law or ordinance, the commission may not issue a
  933-1  charge and shall immediately refer the matter to the attorney
  933-2  general for appropriate action.  (V.A.C.S. Art. 1f, Sec. 4.10.)
  933-3        Sec. 301.091.  Dismissal.  (a)  If the commission determines
  933-4  that no reasonable cause exists to believe that a discriminatory
  933-5  housing practice that is the subject of a complaint has occurred or
  933-6  is about to occur, the commission shall promptly dismiss the
  933-7  complaint.
  933-8        (b)  The commission shall make public disclosure of each
  933-9  dismissal.  (V.A.C.S. Art. 1f, Sec. 4.11.)
 933-10        Sec. 301.092.  Pending Civil Trial.  The commission may not
 933-11  issue a charge alleging a discriminatory housing practice after the
 933-12  beginning of the trial of a civil action commenced by the aggrieved
 933-13  party under federal or state law seeking relief with respect to
 933-14  that discriminatory housing practice.  (V.A.C.S. Art. 1f, Sec.
 933-15  4.12.)
 933-16        Sec. 301.093.  ELECTION OF JUDICIAL DETERMINATION.  (a)  A
 933-17  complainant, a respondent, or an aggrieved person on whose behalf a
 933-18  complaint was filed may elect to have the claims asserted in the
 933-19  charge decided in a civil action as provided by Section 301.131.
 933-20        (b)  The election must be made not later than the 20th day
 933-21  after the date the person having the election receives service
 933-22  under Section 301.089(b) or, in the case of the commission, not
 933-23  later than the 20th day after the date the charge is issued.
 933-24        (c)  The person making the election shall give notice to the
 933-25  commission and to all other complainants and respondents to whom
 933-26  the charge relates.  (V.A.C.S. Art. 1f, Sec. 4.13.)
 933-27           (Sections 301.094-301.110 reserved for expansion)
  934-1                SUBCHAPTER F.  ADMINISTRATIVE HEARINGS
  934-2        Sec. 301.111.  ADMINISTRATIVE HEARING.  (a)  If a timely
  934-3  election is not made under Section 301.093, the commission shall
  934-4  provide for a hearing on the charge.
  934-5        (b)  Except as provided by Subsection (c), Chapter 2001,
  934-6  Government Code, governs a hearing and an appeal of a hearing.
  934-7        (c)  A hearing under this section on an alleged
  934-8  discriminatory housing practice may not continue after the
  934-9  beginning of the trial of a civil action commenced by the aggrieved
 934-10  person under federal or state law seeking relief with respect to
 934-11  the discriminatory housing practice.  (V.A.C.S. Art. 1f, Sec.
 934-12  4.15.)
 934-13        Sec. 301.112.  ADMINISTRATIVE PENALTIES.  (a)  If the
 934-14  commission determines at a hearing under Section 301.111 that a
 934-15  respondent has engaged in or is about to engage in a discriminatory
 934-16  housing practice, the commission may order the appropriate relief,
 934-17  including actual damages, reasonable attorney's fees, court costs,
 934-18  and other injunctive or equitable relief.
 934-19        (b)  To vindicate the public's interest, the commission may
 934-20  assess a civil penalty against the respondent in an amount that
 934-21  does not exceed:
 934-22              (1)  $10,000 if the respondent has been found by order
 934-23  of the commission or a court to have committed a prior
 934-24  discriminatory housing practice; or
 934-25              (2)  except as provided by Subsection (c):
 934-26                    (A)  $25,000 if the respondent has been found by
 934-27  order of the commission or a court to have committed one other
  935-1  discriminatory housing practice during the five-year period ending
  935-2  on the date of the filing of the charges; or
  935-3                    (B)  $50,000 if the respondent has been found by
  935-4  the commission or a court to have committed two or more
  935-5  discriminatory housing practices during the seven-year period
  935-6  ending on the date of filing of the charge.
  935-7        (c)  If the acts constituting the discriminatory housing
  935-8  practice that is the object of the charge are committed by the same
  935-9  individual who has previously been found to have committed acts
 935-10  constituting a discriminatory housing practice, the civil penalties
 935-11  in Subsection (b)(2) may be imposed without regard to the period of
 935-12  time within which any other discriminatory housing practice
 935-13  occurred.
 935-14        (d)  At the request of the commission, the attorney general
 935-15  shall sue to recover a civil penalty due under this section.  Funds
 935-16  collected under this section shall be paid to the state treasurer
 935-17  for deposit in the state treasury to the credit of the fair housing
 935-18  fund.  (V.A.C.S. Art. 1f, Sec. 4.16.)
 935-19        Sec. 301.113.  EFFECT OF COMMISSION ORDER.  A commission
 935-20  order under Section 301.112 does not affect a contract, sale,
 935-21  encumbrance, or lease that:
 935-22              (1)  is consummated before the commission issues the
 935-23  order; and
 935-24              (2)  involves a bona fide purchaser, encumbrancer, or
 935-25  tenant who did not have actual notice of the charge filed under
 935-26  this chapter.  (V.A.C.S. Art. 1f, Sec. 4.17.)
 935-27        Sec. 301.114.  LICENSED OR REGULATED BUSINESS.  If the
  936-1  commission issues an order with respect to a discriminatory housing
  936-2  practice that occurs in the course of a business subject to a
  936-3  licensing or regulation by a governmental agency, the commission
  936-4  shall, not later than the 30th day after the date the order is
  936-5  issued:
  936-6              (1)  send copies of the findings and the order to the
  936-7  governmental agency; and
  936-8              (2)  recommend to the governmental agency appropriate
  936-9  disciplinary action.  (V.A.C.S. Art. 1f, Sec. 4.18.)
 936-10        Sec. 301.115.  ORDER IN PRECEDING FIVE YEARS.  If the
 936-11  commission issues an order against a respondent against whom
 936-12  another order was issued within the preceding five years under
 936-13  Section 301.112, the commission shall send a copy of each order to
 936-14  the attorney general.  (V.A.C.S. Art. 1f, Sec. 4.19.)
 936-15           (Sections 301.116-301.130 reserved for expansion)
 936-16            SUBCHAPTER G.  ENFORCEMENT BY ATTORNEY GENERAL
 936-17        Sec. 301.131.  ATTORNEY GENERAL ACTION FOR ENFORCEMENT.  (a)
 936-18  If a timely election is made under Section 301.093, the commission
 936-19  shall authorize, and not later than the 30th day after the date the
 936-20  election is made the attorney general shall file in a district
 936-21  court, a civil action seeking relief on behalf of the aggrieved
 936-22  person.
 936-23        (b)  Venue for an action is in the county in which the
 936-24  alleged discriminatory housing practice occurred or is about to
 936-25  occur.
 936-26        (c)  An aggrieved person may intervene in the action.
 936-27        (d)  If the court finds that a discriminatory housing
  937-1  practice has occurred or is about to occur, the court may grant as
  937-2  relief any relief that a court may grant in a civil action under
  937-3  Subchapter H.
  937-4        (e)  If monetary relief is sought for the benefit of an
  937-5  aggrieved person who does not intervene in the civil action, the
  937-6  court may not award the monetary relief if that aggrieved person
  937-7  has not complied with discovery orders entered by the court.
  937-8  (V.A.C.S. Art. 1f, Sec. 4.14.)
  937-9        Sec. 301.132.  PATTERN OR PRACTICE CASE.  (a)  On the request
 937-10  of the commission, the attorney general may file a civil action in
 937-11  district court for appropriate relief if the commission has
 937-12  reasonable cause to believe that:
 937-13              (1)  a person is engaged in a pattern or practice of
 937-14  resistance to the full enjoyment of a right granted under this
 937-15  chapter; or
 937-16              (2)  a person has been denied a right granted by this
 937-17  chapter and that denial raises an issue of general public
 937-18  importance.
 937-19        (b)  In an action under this section the court may:
 937-20              (1)  award preventive relief, including a permanent or
 937-21  temporary injunction, restraining order, or other order against the
 937-22  person responsible for a violation of this chapter as necessary to
 937-23  assure the full enjoyment of the rights granted by this chapter;
 937-24              (2)  award other appropriate relief, including monetary
 937-25  damages, reasonable attorney's fees, and court costs; and
 937-26              (3)  to vindicate the public interest, assess a civil
 937-27  penalty against the respondent in an amount that does not exceed:
  938-1                    (A)  $50,000 for a first violation; and
  938-2                    (B)  $100,000 for a second or subsequent
  938-3  violation.
  938-4        (c)  A person may intervene in an action under this section
  938-5  if the person is:
  938-6              (1)  a person aggrieved by the discriminatory housing
  938-7  practice; or
  938-8              (2)  a party to a conciliation agreement concerning the
  938-9  discriminatory housing practice.  (V.A.C.S. Art. 1f, Sec. 6.01.)
 938-10        Sec. 301.133.  SUBPOENA ENFORCEMENT.  The attorney general,
 938-11  on behalf of the commission or another party at whose request a
 938-12  subpoena is issued under this chapter, may enforce the subpoena in
 938-13  appropriate proceedings in district court.  (V.A.C.S. Art. 1f, Sec.
 938-14  6.02.)
 938-15           (Sections 301.134-301.150 reserved for expansion)
 938-16             SUBCHAPTER H.  ENFORCEMENT BY PRIVATE PERSONS
 938-17        Sec. 301.151.  CIVIL ACTION.  (a)  An aggrieved person may
 938-18  file a civil action in district court not later than the second
 938-19  year after the date of the occurrence or the termination of an
 938-20  alleged discriminatory housing practice, or the breach of a
 938-21  conciliation agreement entered under this chapter, whichever occurs
 938-22  last, to obtain appropriate relief with respect to the
 938-23  discriminatory housing practice or breach.
 938-24        (b)  The two-year period does not include any time during
 938-25  which an administrative hearing under this chapter is pending with
 938-26  respect to a complaint or charge under this chapter based on the
 938-27  discriminatory housing practice.  This subsection does not apply to
  939-1  actions arising from the breach of a conciliation agreement.
  939-2        (c)  An aggrieved person may file an action whether a
  939-3  complaint has been filed under Section 301.081 and without regard
  939-4  to the status of any complaint filed under that section.
  939-5        (d)  If the commission has obtained a conciliation agreement
  939-6  with the consent of an aggrieved person, the aggrieved person may
  939-7  not file an action with respect to the alleged discriminatory
  939-8  housing practice that forms the basis of the complaint except to
  939-9  enforce the terms of the agreement.
 939-10        (e)  An aggrieved person may not file an action with respect
 939-11  to an alleged discriminatory housing practice that forms the basis
 939-12  of a charge issued by the commission if the commission has begun a
 939-13  hearing on the record under this chapter with respect to the
 939-14  charge.  (V.A.C.S. Art. 1f, Sec. 5.01.)
 939-15        Sec. 301.152.  Court-Appointed Attorney.  On application by a
 939-16  person alleging a discriminatory housing practice or by a person
 939-17  against whom a discriminatory housing practice is alleged, the
 939-18  court may appoint an attorney for the person.  (V.A.C.S. Art. 1f,
 939-19  Sec. 5.02.)
 939-20        Sec. 301.153.  Relief Granted.  If the court finds that a
 939-21  discriminatory housing practice has occurred or is about to occur,
 939-22  the court may award to the plaintiff:
 939-23              (1)  actual and punitive damages;
 939-24              (2)  reasonable attorney's fees;
 939-25              (3)  court costs; and
 939-26              (4)  subject to Section 301.154, a permanent or
 939-27  temporary injunction, temporary restraining order, or other order,
  940-1  including an order enjoining the defendant from engaging in the
  940-2  practice or ordering appropriate affirmative action.  (V.A.C.S.
  940-3  Art. 1f, Sec. 5.03.)
  940-4        Sec. 301.154.  Effect of Relief Granted.  Relief granted
  940-5  under this subchapter does not affect a contract, sale,
  940-6  encumbrance, or lease that:
  940-7              (1)  is consummated before the granting of the relief;
  940-8  and
  940-9              (2)  involves a bona fide purchaser, encumbrancer, or
 940-10  tenant who did not have actual notice of the filing of a complaint
 940-11  or civil action under this chapter.  (V.A.C.S. Art. 1f, Sec. 5.04.)
 940-12        Sec. 301.155.  Intervention by Attorney General. (a)  On
 940-13  request of the commission, the attorney general may intervene in an
 940-14  action under this subchapter if the commission certifies that the
 940-15  case is of general public importance.
 940-16        (b)  The attorney general may obtain the same relief as is
 940-17  available to the attorney general under Section 301.132(b).
 940-18  (V.A.C.S. Art. 1f, Sec. 5.05.)
 940-19        Sec. 301.156.  PREVAILING PARTY.  A court in a civil action
 940-20  brought under this chapter or the commission in an administrative
 940-21  hearing under Section 301.111 may award reasonable attorney's fees
 940-22  to the prevailing party and assess court costs against the
 940-23  nonprevailing party.  (V.A.C.S. Art. 1f, Sec. 8.01.)
 940-24           (Sections 301.157-301.170 reserved for expansion)
 940-25                    SUBCHAPTER I.  CRIMINAL PENALTY
 940-26        Sec. 301.171.  Intimidation or Interference. (a)  A person
 940-27  commits an offense if the person, without regard to whether the
  941-1  person is acting under color of law, by force or threat of force
  941-2  intentionally intimidates or interferes with a person:
  941-3              (1)  because of the person's race, color, religion,
  941-4  sex, disability, familial status, or national origin and because
  941-5  the person is or has been selling, purchasing, renting, financing,
  941-6  occupying, or contracting or negotiating for the sale, purchase,
  941-7  rental, financing, or occupation of any dwelling, or applying for
  941-8  or participating in a service, organization, or facility relating
  941-9  to the business of selling or renting dwellings; or
 941-10              (2)  because the person is or has been, or to
 941-11  intimidate the person from:
 941-12                    (A)  participating, without discrimination
 941-13  because of race, color, religion, sex, disability, familial status,
 941-14  or national origin, in an activity, service, organization, or
 941-15  facility described by Subdivision (1); or
 941-16                    (B)  affording another person opportunity or
 941-17  protection to so participate; or
 941-18                    (C)  lawfully aiding or encouraging other persons
 941-19  to participate, without discrimination because of race, color,
 941-20  religion, sex, disability, familial status, or national origin, in
 941-21  an activity, service, organization, or facility described by
 941-22  Subdivision (1).
 941-23        (b)  An offense under this section is a Class A misdemeanor.
 941-24  (V.A.C.S. Art. 1f, Sec. 9.01.)
 941-25        SECTION 41.  CONFORMING AMENDMENT.  Section 151.429(e), Tax
 941-26  Code, is amended to read as follows:
 941-27        (e)  In this section:
  942-1              (1)  "Enterprise project" means a person designated by
  942-2  the Texas Department of Commerce as an enterprise project under
  942-3  Chapter 2303, Government Code.
  942-4              (2)  "Enterprise zone"<, "enterprise project,"
  942-5  "enterprise zone," "new permanent job,"> and "qualified employee"
  942-6  have the meanings assigned to those terms by Section 2303.003,
  942-7  Government Code <Section 3, Texas Enterprise Zone Act (Article
  942-8  5190.7, Vernon's Texas Civil Statutes)>.
  942-9              (3)  "New permanent job" means a new employment
 942-10  position created by a qualified business as described by Section
 942-11  2303.401, Government Code, that:
 942-12                    (A)  has provided at least 1,040 hours of
 942-13  employment a year to a qualified employee; and
 942-14                    (B)  is intended to exist during the period that
 942-15  the qualified business is designated as an enterprise project under
 942-16  Chapter 2303, Government Code.
 942-17        SECTION 42.  CONFORMING AMENDMENT.  Section 151.431(e), Tax
 942-18  Code, is amended to read as follows:
 942-19        (e)  In this section:
 942-20              (1)  "Enterprise zone"<, "enterprise zone," "governing
 942-21  body," "qualified business,"> and "qualified employee" have the
 942-22  meanings assigned to those terms by Section 2303.003, Government
 942-23  Code <Section 3, Texas Enterprise Zone Act (Article 5190.7,
 942-24  Vernon's Texas Civil Statutes)>.
 942-25              (2)  "Governing body" means the governing body of a
 942-26  municipality or county that applied to have the area designated as
 942-27  an enterprise zone under Section 2303.105, Government Code.
  943-1              (3)  "Qualified business" means a person that is
  943-2  certified as a qualified business under Section 2303.401,
  943-3  Government Code.
  943-4        SECTION 43.  CONFORMING AMENDMENT.  Section 171.1015(f), Tax
  943-5  Code, is amended to read as follows:
  943-6        (f)  In this section:
  943-7              (1)  "Enterprise project" means a person designated by
  943-8  the Texas Department of Commerce as an enterprise project under
  943-9  Chapter 2303, Government Code.
 943-10              (2)  "Enterprise zone" has the meaning assigned to that
 943-11  term by Section 2303.003, Government Code<, "enterprise project"
 943-12  and "enterprise zone" have the meanings assigned to those terms by
 943-13  Section 3, Texas Enterprise Zone Act (Article 5190.7, Vernon's
 943-14  Texas Civil Statutes)>.
 943-15        SECTION 44.  CONFORMING AMENDMENT.  Section 171.501(e), Tax
 943-16  Code, is amended to read as follows:
 943-17        (e)  In this section:
 943-18              (1)  "Enterprise zone"<, "enterprise zone," "governing
 943-19  body," "new job," "qualified business,"> and "qualified employee"
 943-20  have the meanings assigned to those terms by Section 2303.003,
 943-21  Government Code <Section 3, Texas Enterprise Zone Act (Article
 943-22  5190.7, Vernon's Texas Civil Statutes)>.
 943-23              (2)  "Governing body" means the governing body of a
 943-24  municipality or county that applied to have the area designated as
 943-25  an enterprise zone under Section 2303.105, Government Code.
 943-26              (3)  "New job" means a new employment position created
 943-27  by a qualified business as described by Section 2303.401,
  944-1  Government Code, that:
  944-2                    (A)  has provided at least 1,040 hours of
  944-3  employment a year to a qualified employee; and
  944-4                    (B)  is intended to exist during the period that
  944-5  the qualified business is designated as an enterprise project under
  944-6  Chapter 2303, Government Code.
  944-7              (4)  "Qualified business" means a person that is
  944-8  certified as a qualified business under Section 2303.401,
  944-9  Government Code.
 944-10        SECTION 45.  CONFORMING AMENDMENT.  Section 2, Article 5996g,
 944-11  Revised Statutes, is redesignated as Section 2, Chapter 427, Acts
 944-12  of the 70th Legislature, Regular Session, 1987.
 944-13        SECTION 46.  REPEALER.  The following laws are repealed:
 944-14              (1)  the following articles and acts, as compiled in
 944-15  Vernon's Texas Civil Statutes:  1f; 12; 13; 14; 16; 16a; 16b; 17;
 944-16  18; 19; 19a; 20; 21; 22; 23a; 25; 26; 27; 28a; 28a-1; 29; 29a; 29b;
 944-17  29c; 29d; 29e; 601e; 601f; 601g; 601h; 664-4; 689a-1; 689a-2;
 944-18  689a-4; 689a-4a; 689a-4b; 689a-4c; 689a-6; 689a-8; 689a-8a;
 944-19  689a-20; 689a-21; 695g; 695h; 842a-2; 842g; 999e; 1269l-5; 1269t;
 944-20  1939a; 2529b-1; 2529c; 2529d; 2568; 2569; 3904; 3905; 3907; 3908;
 944-21  3909; 3910; 3913; 4345a; 4348e; 4413(29aa-3); 4413(31); 4413(32j);
 944-22  4413(33); 4413(33a); 4413(33b); 4413(34b); 4413(34c); 4413(34d);
 944-23  4413(47e); 4413(55); 4413(56); 4413(57); 4413(203); 4413(501);
 944-24  4591; 4591.2; 4591.3; 4591.5; 4591.6; 4591b; 4591b-1; 4591b-2;
 944-25  4591e; 5154c; 5160; 5165; 5165.1; 5165.2; 5165.6; 5165a; 5190.7;
 944-26  5221g; 5240; 5241; 5242; 5243; 5244; 5245; 5246; 5247; 5248d-1;
 944-27  5248f; 5248g; 5248g-1; 5248h; 5248i; 5961; 5962; 5963; 5964; 5967;
  945-1  5972; 5986; 5996a; 5996b; 5996c; 5996d; 5996e; 5996f; 5996g; 5996h;
  945-2  5996i; 5997; 5998; 5999; 6000; 6001; 6002; 6003; 6003a; 6003b;
  945-3  6003c; 6049h; 6228f; 6252-1; 6252-2; 6252-3; 6252-3d; 6252-3e;
  945-4  6252-3g; 6252-4a; 6252-4b; 6252-4c; 6252-5a; 6252-5b; 6252-5c;
  945-5  6252-5d; 6252-5e; 6252-5f; 6252-6b; 6252-6c; 6252-6d; 6252-7;
  945-6  6252-8; 6252-8a; 6252-8b; 6252-8c; 6252-8d; 6252-8e; 6252-9a;
  945-7  6252-9b; 6252-9d.1; 6252-9e; 6252-9f; 6252-9aa; 6252-10a; 6252-11;
  945-8  6252-11a; 6252-11b; 6252-11c; 6252-11e; 6252-11f; 6252-11g;
  945-9  6252-12; 6252-13a; 6252-13b; 6252-13b.1; 6252-13e; 6252-13f;
 945-10  6252-15; 6252-16a; 6252-16b; 6252-16c; 6252-17; 6252-17a; 6252-17b;
 945-11  6252-17c; 6252-18; 6252-18a; 6252-19a; 6252-20; 6252-20b; 6252-21;
 945-12  6252-22; 6252-23; 6252-24; 6252-27; 6252-29a; 6252-30; 6252-31;
 945-13  6252-32; 6674v.2, Sec. 5(c); 6813; 6813a; 6813b; 6813c; 6813d-1;
 945-14  6813e; 6813f; 6813g; 6822; 6822a; 6823a; 6823b; 6824; 6825; 6826;
 945-15  6827; 6828; 6829; 6829a; 6889-3; 6889-3a; and 8309-1; and
 945-16              (2)  Section 492.006(c), Government Code.
 945-17        SECTION 47.  LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
 945-18  This Act is enacted under Article III, Section 43, of the Texas
 945-19  Constitution.  This Act is intended as a recodification only, and
 945-20  no substantive change in the law is intended by this Act.
 945-21        SECTION 48.  SAVINGS PROVISION.  (a)  For the purposes of
 945-22  Section 403.094, Government Code, the revision and codification by
 945-23  this Act of a statute relating to a fund in existence on or before
 945-24  August 31, 1993, does not re-create the fund and does not
 945-25  constitute the reenactment of a dedication of revenue.
 945-26        (b)  A fund or account, the existence of which is derived
 945-27  from a statute revised by this Act and which is abolished under
  946-1  Section 403.094, Government Code, before the effective date of this
  946-2  Act is not revived or re-created by this Act.
  946-3        (c)  The application of Sections 403.094 and 403.095,
  946-4  Government Code, to a fund or to the permissible uses of revenue or
  946-5  fund balances is not affected by this Act.
  946-6        (d)  The revision by this Act of a statute that conflicted
  946-7  with an applicable provision of former Article 6251-31, Revised
  946-8  Statutes, as added by Section 35, Chapter 641, Acts of the 73rd
  946-9  Legislature, Regular Session, 1991, and revised in this Act as
 946-10  Chapter 2103, Government Code, does not prevail over that article
 946-11  unless the law from which the revised provision was derived
 946-12  prevailed over that article.
 946-13        SECTION 49.  EFFECTIVE DATE.  This Act takes effect September
 946-14  1, 1993.
 946-15        SECTION 50.  EMERGENCY.  The importance of this legislation
 946-16  and the crowded condition of the calendars in both houses create an
 946-17  emergency and an imperative public necessity that the
 946-18  constitutional rule requiring bills to be read on three several
 946-19  days in each house be suspended, and this rule is hereby suspended.