By:  Ratliff                                           S.B. No. 451
       73R5 RJA-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to nonsubstantive additions to and corrections in enacted
    1-3  codes, including the nonsubstantive codification of various laws
    1-4  omitted from enacted codes, and to conforming codifications enacted
    1-5  by the 72nd Legislature to other Acts of that legislature.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7                    ARTICLE 1.  GENERAL PROVISIONS
    1-8        SECTION 1.01.  This Act is enacted as part of the state's
    1-9  continuing statutory revision program under Chapter 323, Government
   1-10  Code.  This Act is a revision for purposes of Article III, Section
   1-11  43, of the Texas Constitution and has the purposes of:
   1-12              (1)  codifying without substantive change various
   1-13  statutes that were omitted from enacted codes;
   1-14              (2)  conforming codifications enacted by the 72nd
   1-15  Legislature to other Acts of that legislature that amended the laws
   1-16  codified or added new law to subject matter codified;
   1-17              (3)  making necessary corrections to enacted
   1-18  codifications; and
   1-19              (4)  renumbering titles, chapters, and sections of
   1-20  codes that duplicate title, chapter, or section numbers.
   1-21        SECTION 1.02.  (a)  The repeal of a statute by this Act does
   1-22  not affect an amendment, revision, or reenactment of the statute by
   1-23  the 73rd Legislature, Regular Session, 1993.  The amendment,
   1-24  revision, or reenactment is preserved and given effect as part of
    2-1  the code provision that revised the statute so amended, revised, or
    2-2  reenacted.
    2-3        (b)  If any provision of this Act conflicts with a statute
    2-4  enacted by the 73rd Legislature, Regular Session, 1993, the statute
    2-5  controls.
    2-6        SECTION 1.03.  (a)  A transition or savings provision of a
    2-7  law codified by this Act applies to the codified law to the same
    2-8  extent as it applied to the original law.
    2-9        (b)  The repeal of a transition or savings provision by this
   2-10  Act does not affect the application of the provision to the
   2-11  codified law.
   2-12        (c)  In this section, "transition provision" includes any
   2-13  temporary provision providing for a special situation in the
   2-14  transition period between the existing law and the establishment or
   2-15  implementation of the new law.
   2-16            ARTICLE 2.  CHANGES RELATING TO EDUCATION CODE
   2-17        SECTION 2.01.  Section 67.26, Education Code, is amended to
   2-18  read as follows:
   2-19        Sec. 67.26.  UNIVERSITY INTERSCHOLASTIC LEAGUE; VENUE FOR
   2-20  SUITS.  Venue for suits brought against the University
   2-21  Interscholastic League or for suits involving the interpretation or
   2-22  enforcement of the rules or regulations of the University
   2-23  Interscholastic League shall be in Travis County, Texas.  When the
   2-24  litigation involves a school district located within Travis County,
   2-25  it shall be heard by a visiting judge.
   2-26        SECTION 2.02.  Section 70.06, Education Code, is repealed
   2-27  because:
    3-1              (1)  Subsection (a) of Section 70.06 conflicts with
    3-2  Section 70.08, Education Code, a later enactment;
    3-3              (2)  Subsection (b) of Section 70.06 is expired; and
    3-4              (3)  Subsection (c) of Section 70.06 is duplicative of
    3-5  authority granted in Section 70.03, Education Code, to grant
    3-6  graduate degrees.
    3-7   ARTICLE 3.  CHANGES RELATING TO TEXAS ETHICS COMMISSION--ELECTION
    3-8                       CODE AND GOVERNMENT CODE
    3-9        SECTION 3.01.  Section 251.006(b), Election Code, is amended
   3-10  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   3-11  Legislature, Regular Session, 1991, to correct a reference to read
   3-12  as follows:
   3-13        (b)  A candidate for an elective office of the federal
   3-14  government shall file with the commission <secretary of state> a
   3-15  copy of each document relating to his candidacy that is required to
   3-16  be filed under federal law.  The document shall be filed within the
   3-17  same period in which it is required to be filed under the federal
   3-18  law.
   3-19        SECTION 3.02.  The heading to Subchapter B, Chapter 251,
   3-20  Election Code, is amended to conform to Section 1.39(b), Chapter
   3-21  304, Acts of the 72nd Legislature, Regular Session, 1991, to
   3-22  correct a reference to read as follows:
   3-23                SUBCHAPTER B.  DUTIES OF THE COMMISSION
   3-24                         <SECRETARY OF STATE>
   3-25        SECTION 3.03.  Section 251.032, Election Code, is amended to
   3-26  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   3-27  Legislature, Regular Session, 1991, to correct a reference to read
    4-1  as follows:
    4-2        Sec. 251.032.  Forms.  In addition to furnishing samples of
    4-3  the appropriate forms to the authorities having administrative
    4-4  duties under this title, the commission <secretary of state> shall
    4-5  furnish the forms to each political party's state executive
    4-6  committee and county chairman of each county executive committee.
    4-7        SECTION 3.04.  Section 251.033, Election Code, is amended to
    4-8  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
    4-9  Legislature, Regular Session, 1991, to correct a reference to read
   4-10  as follows:
   4-11        Sec. 251.033.  Notification Of Deadline For Filing Reports.
   4-12  (a)  The commission <secretary of state> shall notify each person
   4-13  responsible for filing a report with the commission <secretary>
   4-14  under Subchapters C through F, Chapter 254, of the deadline for
   4-15  filing a report, except that notice of the deadline is not required
   4-16  for a political committee involved in an election other than a
   4-17  primary election or the general election for state and county
   4-18  officers.
   4-19        (b)  If the commission <secretary of state> is unable to
   4-20  notify a person of a deadline after two attempts, the commission
   4-21  <secretary> is not required to make any further attempts to notify
   4-22  the person of that deadline or any future deadlines until the
   4-23  person has notified the commission <secretary of state> of the
   4-24  person's current address.
   4-25        SECTION 3.05.  Section 252.002(b), Election Code, is amended
   4-26  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   4-27  Legislature, Regular Session, 1991, to correct a reference to read
    5-1  as follows:
    5-2        (b)  A political committee that files its campaign treasurer
    5-3  appointment with the commission <secretary of state> must notify
    5-4  the commission <secretary> in writing of any change in the campaign
    5-5  treasurer's address not later than the 10th day after the date on
    5-6  which the change occurs.
    5-7        SECTION 3.06.  Sections 252.003(b) and (c), Election Code,
    5-8  are amended to conform to Section 1.39(b), Chapter 304, Acts of the
    5-9  72nd Legislature, Regular Session, 1991, to correct a reference to
   5-10  read as follows:
   5-11        (b)  If any of the information required to be included in a
   5-12  general-purpose committee's appointment changes, excluding changes
   5-13  reported under Section 252.002(b), the committee shall file an
   5-14  amended appointment with the commission <secretary of state> not
   5-15  later than the 30th day after the date the change occurs.
   5-16        (c)  The name of a general-purpose committee may not be the
   5-17  same as or deceptively similar to the name of any other
   5-18  general-purpose committee whose campaign treasurer appointment is
   5-19  filed with the commission <secretary of state>.  The commission
   5-20  <secretary> shall determine whether the name of a general-purpose
   5-21  political committee is in violation of this prohibition and shall
   5-22  immediately notify the campaign treasurer of the offending
   5-23  political committee of that determination.  The campaign treasurer
   5-24  of the political committee must file a name change with the
   5-25  commission <secretary> not later than the 14th day after the date
   5-26  of notification.  A campaign treasurer who fails to file a name
   5-27  change as provided by this subsection or a political committee that
    6-1  continues to use a prohibited name after its campaign treasurer has
    6-2  been notified by the commission <secretary> commits an offense.  An
    6-3  offense under this subsection is a Class B misdemeanor.
    6-4        SECTION 3.07.  Section 252.005, Election Code, is amended to
    6-5  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
    6-6  Legislature, Regular Session, 1991, to correct a reference to read
    6-7  as follows:
    6-8        Sec. 252.005.  Authority with whom Appointment Filed:
    6-9  Candidate.  An individual must file a campaign treasurer
   6-10  appointment for the individual's own candidacy with:
   6-11              (1)  the commission <secretary of state>, if the
   6-12  appointment is made for candidacy for:
   6-13                    (A)  a statewide office;
   6-14                    (B)  a district office filled by voters of more
   6-15  than one county;
   6-16                    (C)  state senator;
   6-17                    (D)  state representative; or
   6-18                    (E)  the State Board of Education;
   6-19              (2)  the county clerk, if the appointment is made for
   6-20  candidacy for a county office, a precinct office, or a district
   6-21  office other than one included in Subdivision (1);
   6-22              (3)  the clerk or secretary of the governing body of
   6-23  the political subdivision or, if the political subdivision has no
   6-24  clerk or secretary, with the governing body's presiding officer, if
   6-25  the appointment is made for candidacy for an office of a political
   6-26  subdivision other than a county;
   6-27              (4)  the county clerk if:
    7-1                    (A)  the appointment is made for candidacy for an
    7-2  office of a political subdivision other than a county;
    7-3                    (B)  the governing body for the political
    7-4  subdivision has not been formed; and
    7-5                    (C)  no boundary of the political subdivision
    7-6  crosses a boundary of the county; or
    7-7              (5)  the commission <secretary of state> if:
    7-8                    (A)  the appointment is made for candidacy for an
    7-9  office of a political subdivision other than a county;
   7-10                    (B)  the governing body for the political
   7-11  subdivision has not been formed; and
   7-12                    (C)  the political subdivision is situated in
   7-13  more than one county.
   7-14        SECTION 3.08.  Section 252.007, Election Code, is amended to
   7-15  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   7-16  Legislature, Regular Session, 1991, to correct a reference to read
   7-17  as follows:
   7-18        Sec. 252.007.  Authority With Whom Appointment Filed:
   7-19  Specific-Purpose Committee For Supporting Or Opposing Measure.  A
   7-20  specific-purpose committee for supporting or opposing a measure
   7-21  must file its campaign treasurer appointment with:
   7-22              (1)  the commission <secretary of state>, if the
   7-23  measure is to be submitted to voters of the entire state;
   7-24              (2)  the county clerk, if the measure is to be
   7-25  submitted to voters of a single county in an election ordered by a
   7-26  county authority;
   7-27              (3)  the secretary of the governing body of the
    8-1  political subdivision or, if the political subdivision has no
    8-2  secretary, with the governing body's presiding officer, if the
    8-3  measure is to be submitted at an election ordered by an authority
    8-4  of a political subdivision other than a county;
    8-5              (4)  the county clerk if:
    8-6                    (A)  the measure concerns a political subdivision
    8-7  other than a county;
    8-8                    (B)  the governing body for the political
    8-9  subdivision has not been formed; and
   8-10                    (C)  no boundary of the political subdivision
   8-11  crosses a boundary of a county; or
   8-12              (5)  the commission <secretary of state> if:
   8-13                    (A)  the measure concerns a political subdivision
   8-14  other than a county;
   8-15                    (B)  the governing body for the political
   8-16  subdivision has not been formed; and
   8-17                    (C)  the political subdivision is situated in
   8-18  more than one county.
   8-19        SECTION 3.09.  Section 252.008, Election Code, is amended to
   8-20  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   8-21  Legislature, Regular Session, 1991, to correct a reference to read
   8-22  as follows:
   8-23        Sec. 252.008.  Multiple Filings By Specific-Purpose Committee
   8-24  Not Required.  If under this chapter a specific-purpose committee
   8-25  is required to file its campaign treasurer appointment with more
   8-26  than one authority, the appointment need only be filed with the
   8-27  commission <secretary of state> and, if so filed, need not be filed
    9-1  with the other authorities.
    9-2        SECTION 3.10.  Section 252.009, Election Code, is amended to
    9-3  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
    9-4  Legislature, Regular Session, 1991, to correct a reference to read
    9-5  as follows:
    9-6        Sec. 252.009.  Authority with Whom Appointment Filed:
    9-7  General-Purpose Committee.  A general-purpose committee must file
    9-8  its campaign treasurer appointment with the commission <secretary
    9-9  of state>.
   9-10        SECTION 3.11.  Section 252.012(c), Election Code, is amended
   9-11  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   9-12  Legislature, Regular Session, 1991, to correct a reference to read
   9-13  as follows:
   9-14        (c)  If the campaign treasurer of a specific-purpose
   9-15  political committee required to file its campaign treasurer
   9-16  appointment with the commission <secretary of state> or of a
   9-17  general-purpose political committee is removed by the committee,
   9-18  the departing campaign treasurer shall immediately file written
   9-19  notification of the termination of appointment with the commission
   9-20  <secretary of state>.
   9-21        SECTION 3.12.  Section 252.013(c), Election Code, is amended
   9-22  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   9-23  Legislature, Regular Session, 1991, to correct a reference to read
   9-24  as follows:
   9-25        (c)  If the campaign treasurer of a specific-purpose
   9-26  political committee required to file its campaign treasurer
   9-27  appointment with the commission <secretary of state> or of a
   10-1  general-purpose political committee resigns or otherwise vacates
   10-2  the position, the campaign treasurer shall immediately file written
   10-3  notification of the vacancy with the commission <secretary of
   10-4  state>.
   10-5        SECTION 3.13.  Section 252.015(a), Election Code, is amended
   10-6  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   10-7  Legislature, Regular Session, 1991, to correct a reference to read
   10-8  as follows:
   10-9        (a)  Each specific-purpose committee for supporting or
  10-10  opposing a candidate for an office specified by Section 252.005(1)
  10-11  or a statewide or district measure and each general-purpose
  10-12  committee may appoint an assistant campaign treasurer by written
  10-13  appointment filed with the commission <secretary of state>.
  10-14        SECTION 3.14.  Section 254.038(c), Election Code, is amended
  10-15  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
  10-16  Legislature, Regular Session, 1991, to correct a reference to read
  10-17  as follows:
  10-18        (c)  A report under this section shall be filed by telegram
  10-19  or telephonic facsimile machine or by hand with the commission
  10-20  <secretary of state> not later than 48 hours after the contribution
  10-21  is accepted.
  10-22        SECTION 3.15.  Section 254.039(a), Election Code, is amended
  10-23  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
  10-24  Legislature, Regular Session, 1991, to correct a reference to read
  10-25  as follows:
  10-26        (a)  In addition to other reports required by this chapter, a
  10-27  general-purpose committee that makes direct campaign expenditures
   11-1  supporting or opposing either a single candidate that in the
   11-2  aggregate exceed $1,000 or a group of candidates that in the
   11-3  aggregate exceed $15,000 during the period beginning the ninth day
   11-4  before election day and ending at 12 noon on the second day before
   11-5  election day shall file a report by telegram or telephonic
   11-6  facsimile machine or by hand with the commission <secretary of
   11-7  state> not later than 48 hours after the expenditure is made.
   11-8        SECTION 3.16.  Section 254.042(a), Election Code, is amended
   11-9  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
  11-10  Legislature, Regular Session, 1991, to correct a reference to read
  11-11  as follows:
  11-12        (a)  The commission <secretary of state> shall determine from
  11-13  any available evidence whether a report, other than a telegram
  11-14  report under Section 254.038 or 254.039, required to be filed with
  11-15  the commission <secretary> under this chapter is late.  On making
  11-16  that determination, the commission <secretary> shall immediately
  11-17  mail a notice of the determination to the person required to file
  11-18  the report.
  11-19        SECTION 3.17.  Section 254.095, Election Code, is amended to
  11-20  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
  11-21  Legislature, Regular Session, 1991, to correct a reference to read
  11-22  as follows:
  11-23        Sec. 254.095.  REPORT NOT REQUIRED.  If at the end of any
  11-24  reporting period prescribed by this subchapter an officeholder who
  11-25  is required to file a report with an authority other than the
  11-26  commission <secretary of state> has not accepted political
  11-27  contributions that in the aggregate exceed $500 or made political
   12-1  expenditures that in the aggregate exceed $500, the officeholder is
   12-2  not required to file a report covering that period.
   12-3        SECTION 3.18.  Section 254.155(b), Election Code, is amended
   12-4  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   12-5  Legislature, Regular Session, 1991, to correct a reference to read
   12-6  as follows:
   12-7        (b)  To be entitled to file monthly reports, the committee
   12-8  must deliver written notice of the committee's intent to file
   12-9  monthly to the commission <secretary of state> not earlier than
  12-10  January 1 or later than January 15 of the year in which the
  12-11  committee intends to file monthly.  The notice for a committee
  12-12  formed after January 15 must be delivered at the time the
  12-13  committee's campaign treasurer appointment is filed.
  12-14        SECTION 3.19.  Section 254.162, Election Code, is amended to
  12-15  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
  12-16  Legislature, Regular Session, 1991, to correct a reference to read
  12-17  as follows:
  12-18        Sec. 254.162.  NOTICE OF CHANGE IN COMMITTEE STATUS.  If a
  12-19  general-purpose committee changes its operation and becomes a
  12-20  specific-purpose committee, notice of the change in status shall be
  12-21  given to the commission <secretary of state> as provided by Section
  12-22  254.129 for a specific-purpose committee.
  12-23        SECTION 3.20.  Section 254.163, Election Code, is amended to
  12-24  conform to Section 1.39(b), Chapter 304, Acts of the 72nd
  12-25  Legislature, Regular Session, 1991, to correct a reference to read
  12-26  as follows:
  12-27        Sec. 254.163.  AUTHORITY WITH WHOM REPORTS FILED.  Reports
   13-1  filed under this subchapter shall be filed with the commission
   13-2  <secretary of state>.
   13-3        SECTION 3.21.  Sections 302.013(a) and (d), Government Code,
   13-4  are amended to conform to Section 1.39(b), Chapter 304, Acts of the
   13-5  72nd Legislature, Regular Session, 1991, to correct a reference to
   13-6  read as follows:
   13-7        (a)  Each speaker candidate shall file a sworn statement with
   13-8  the Texas Ethics Commission <secretary of state> listing the
   13-9  information required by Section 302.014.
  13-10        (d)  Each speaker candidate shall file the statement on an
  13-11  official form designed by the Texas Ethics Commission <secretary of
  13-12  state>.
  13-13        SECTION 3.22.  Section 302.015, Government Code, is amended
  13-14  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
  13-15  Legislature, Regular Session, 1991, to correct a reference to read
  13-16  as follows:
  13-17        Sec. 302.015.  REQUISITES OF FILING.  (a)  Except as provided
  13-18  by Subsection (b), a statement is considered to be filed in
  13-19  compliance with this subchapter if the postmark shows that it was
  13-20  sent to the Texas Ethics Commission <secretary of state> at its
  13-21  <his> official post office address by registered or certified mail
  13-22  from any point in this state before the filing deadline.
  13-23        (b)  A statement required to be filed on the day before a
  13-24  regular or called session convenes must actually be delivered and
  13-25  in the possession of the Texas Ethics Commission <secretary of
  13-26  state> not later than 4 p.m.  of that day.
  13-27        SECTION 3.23.  Section 305.008(a), Government Code, is
   14-1  amended to conform to Section 1.39(b), Chapter 304, Acts of the
   14-2  72nd Legislature, Regular Session, 1991, to correct a reference to
   14-3  read as follows:
   14-4        (a)  A person who ceases to engage in activities requiring
   14-5  registration under this chapter shall file a written, verified
   14-6  statement with the commission <secretary> acknowledging the
   14-7  termination of activities.  The notice is effective immediately.
   14-8        SECTION 3.24.  Section 305.009(b), Government Code, is
   14-9  amended to conform to Section 1.39(b), Chapter 304, Acts of the
  14-10  72nd Legislature, Regular Session, 1991, to correct a reference to
  14-11  read as follows:
  14-12        (b)  The commission <secretary> shall:
  14-13              (1)  design and provide appropriate forms, covering
  14-14  only the items required to be disclosed under this chapter, to be
  14-15  used for the registration and reporting of required information;
  14-16              (2)  maintain registrations and reports in a separate,
  14-17  alphabetical file;
  14-18              (3)  remove registrations and reports from the files
  14-19  after five years from the date of filing; and
  14-20              (4)  maintain a deputy available to receive
  14-21  registrations and reports and make the registrations and reports
  14-22  available to the public for inspection.
  14-23        SECTION 3.25.  Section 305.011(c), Government Code, is
  14-24  amended to conform to Section 1.39(b), Chapter 304, Acts of the
  14-25  72nd Legislature, Regular Session, 1991, to correct a reference to
  14-26  read as follows:
  14-27        (c)  The commission shall send the lists prepared under this
   15-1  section to each member of the legislature.  During a regular
   15-2  legislative session, the commission <secretary> shall send a
   15-3  monthly update of the lists to each member of the legislature and
   15-4  to any person required to file under Chapter 421, Acts of the 63rd
   15-5  Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
   15-6  Civil Statutes), who requests one.
   15-7        SECTION 3.26.  Section 305.026(a), Government Code, is
   15-8  amended to conform to Section 1.39(b), Chapter 304, Acts of the
   15-9  72nd Legislature, Regular Session, 1991, to correct a reference to
  15-10  read as follows:
  15-11        (a)  Public funds available to a political subdivision may
  15-12  not be used to compensate or reimburse the expenses over $50 of any
  15-13  person for the purpose of communicating directly with a member of
  15-14  the legislative branch to influence legislation, unless the person
  15-15  being compensated or reimbursed resides in the district of the
  15-16  member with whom the person communicates or files a written
  15-17  statement with the commission <secretary of state> that includes
  15-18  the person's name, the amount of compensation or reimbursement, and
  15-19  the name of the affected political subdivision.
  15-20        SECTION 3.27.  Section 305.033(c), Government Code, is
  15-21  amended to conform to Section 1.39(b), Chapter 304, Acts of the
  15-22  72nd Legislature, Regular Session, 1991, to correct a reference to
  15-23  read as follows:
  15-24        (c)  If a registration or report is more than 30 days late,
  15-25  the commission <secretary> shall issue a warning of liability by
  15-26  registered mail to the person responsible for the filing.  If the
  15-27  penalty is not paid before the 10th day after the date on which the
   16-1  warning is received, the person is liable for a penalty in an
   16-2  amount determined by commission rule, but not to exceed $10,000.
   16-3        SECTION 3.28.  Section 305.034, Government Code, is amended
   16-4  to conform to Section 1.39(b), Chapter 304, Acts of the 72nd
   16-5  Legislature, Regular Session, 1991, to correct a reference to read
   16-6  as follows:
   16-7        Sec. 305.034.  FAILURE TO FILE ALL REQUIRED FORMS.  (a)  The
   16-8  commission <secretary> shall determine whether all persons
   16-9  registered under this chapter have filed all required forms,
  16-10  statements, and reports.
  16-11        (b)  Whenever the commission <secretary> determines that a
  16-12  person has failed to file any required form, statement, or report
  16-13  as required by this chapter, the commission <secretary> shall send
  16-14  a written statement of this finding to the person involved.  Notice
  16-15  to the person involved must be sent by certified mail.
  16-16        (c)  If the person fails to file the form, statement, or
  16-17  report as required by this chapter before the 21st day after the
  16-18  date on which the notice was sent, the commission <secretary> shall
  16-19  file a sworn complaint of the violation with the appropriate
  16-20  prosecuting attorney.
  16-21            ARTICLE 4.  CHANGES RELATING TO GOVERNMENT CODE
  16-22        SECTION 4.01.  Section 26.052, Government Code, is amended to
  16-23  correct a reference to read as follows:
  16-24        Sec. 26.052.  PROBATE AND MENTAL HEALTH CODE CASES.  (a)  In
  16-25  a county in which the county court and any county court created by
  16-26  statute have jurisdiction in both probate matters and proceedings
  16-27  under Subtitle C, Title 7, Health and Safety Code <the Texas Mental
   17-1  Health Code (Article 5547-1 et seq., Vernon's Texas Civil
   17-2  Statutes)>, during each year for which a statement has been filed
   17-3  as provided by Subsection (b), those cases and proceedings must be
   17-4  filed in a county court created by statute with jurisdiction of
   17-5  those cases and proceedings.
   17-6        (b)  A county judge may file, not later than January 15 of
   17-7  each year, a statement with the county clerk electing not to hear
   17-8  probate matters and proceedings under Subtitle C, Title 7, Health
   17-9  and Safety Code <the Texas Mental Health Code (Article 5547-1 et
  17-10  seq., Vernon's Texas Civil Statutes)>.
  17-11        SECTION 4.02.  Section 443.009(b), Government Code, is
  17-12  amended to correct a reference to read as follows:
  17-13        (b)  The board and the employees of the board have no control
  17-14  over the furniture, furnishings, and decorative objects in the
  17-15  offices of the members of the legislature except as provided by
  17-16  Section 443.017 <443.016> or as necessary to inventory or conserve
  17-17  items of historical significance owned by the state.
  17-18        SECTION 4.03.  (a)  The heading to Subtitle E, Title 4,
  17-19  Government Code, is amended to read as follows:
  17-20                 SUBTITLE E.  OTHER EXECUTIVE AGENCIES
  17-21                             AND PROGRAMS
  17-22        (b)  Subtitle E, Title 4, Government Code, is amended to
  17-23  codify Section 2, Chapter 6, Acts of the 72nd Legislature, 1st
  17-24  Called Session, 1991 (Article 179g, Vernon's Texas Civil Statutes),
  17-25  by adding Chapter 466 to read as follows:
  17-26                      CHAPTER 466.  STATE LOTTERY
  17-27                   SUBCHAPTER A.  GENERAL PROVISIONS
   18-1        Sec. 466.001.  SHORT TITLE.  This chapter may be cited as the
   18-2  State Lottery Act.
   18-3        Sec. 466.002.  DEFINITIONS.  In this chapter:
   18-4              (1)  "Director" means the director of the division.
   18-5              (2)  "Division" means the lottery division established
   18-6  in the office of the comptroller under this chapter.
   18-7              (3)  "Lottery" means the procedures operated by the
   18-8  state under this chapter through which prizes are awarded or
   18-9  distributed by chance among persons who have paid, or
  18-10  unconditionally agreed to pay, for a chance or other opportunity to
  18-11  receive a prize.
  18-12              (4)  "Lottery game" includes a lottery activity.
  18-13              (5)  "Lottery operator" means a person selected under
  18-14  Section 466.014(b) to operate a lottery.
  18-15              (6)  "Player" means a person who contributes any part
  18-16  of the consideration for a ticket.
  18-17              (7)  "Sales agent" or "sales agency" means a person
  18-18  licensed under this chapter to sell tickets.
  18-19              (8)  "Ticket" means any tangible evidence issued to
  18-20  provide participation in a lottery game authorized by this chapter.
  18-21        Sec. 466.003.  APPLICATION OF SUNSET ACT.  (a)  The lottery
  18-22  division is subject to Chapter 325 (Texas Sunset Act).  Unless
  18-23  continued in existence as provided by that chapter, the division is
  18-24  abolished and this chapter expires September 1, 2003.
  18-25        (b)  A contract between the division and a lottery operator
  18-26  under Section 466.014(b) must terminate on or before September 1,
  18-27  2004.
   19-1        Sec. 466.004.  EXEMPTION FROM TAXATION.  (a)  A political
   19-2  subdivision of this state may not impose:
   19-3              (1)  a tax on the sale of a ticket;
   19-4              (2)  a tax on the payment of a prize under this
   19-5  chapter; or
   19-6              (3)  an ad valorem tax on tickets.
   19-7        (b)  The receipts from the sale, use, or other consumption of
   19-8  a ticket are exempt from taxation under Chapter 151, Tax Code.
   19-9           (Sections 466.005-466.010 reserved for expansion
  19-10                     SUBCHAPTER B.  ADMINISTRATION
  19-11        Sec. 466.011.  Lottery Division; DIRECTOR.  (a)  A division
  19-12  to administer a state lottery is created in the office of the
  19-13  comptroller.  The division is administered by the director.
  19-14        (b)  The comptroller shall appoint a person to serve as
  19-15  director and chief executive officer of the division subject to the
  19-16  comptroller's direction.  The director holds office at the will of
  19-17  the comptroller and is specifically exempted from the Position
  19-18  Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
  19-19  Statutes).  The director is entitled to receive an annual salary in
  19-20  an amount set by the comptroller.  The director also is entitled to
  19-21  reimbursement for expenses actually and necessarily incurred in the
  19-22  performance of the director's duties.
  19-23        (c)  The director may create, abolish, transfer, and
  19-24  consolidate bureaus and other units in the division that are not
  19-25  expressly established by law as the director determines to be
  19-26  necessary for the efficient operation of the division.
  19-27        (d)  The legislature intends that the division be a
   20-1  self-supporting, revenue-raising agency of state government.
   20-2  Except as provided by Section 466.355, no appropriation, loan, or
   20-3  other transfer of state funds may be made to the division.
   20-4        (e)  Notwithstanding Subsection (d), the comptroller may
   20-5  transfer to the division amounts appropriated to the comptroller
   20-6  for purposes other than the administration of this chapter.  If the
   20-7  comptroller proposes to transfer amounts under this subsection, the
   20-8  comptroller shall notify the Legislative Budget Board in writing of
   20-9  the amount of the proposed transfer.  The comptroller may not make
  20-10  the proposed transfer unless the board approves it.  If the board
  20-11  does not approve or disapprove the proposed transfer before the
  20-12  10th day after the date that the comptroller notifies the board of
  20-13  the proposed transfer, the board is considered to have approved the
  20-14  transfer.  If the board disapproves the proposed transfer, the
  20-15  comptroller may request the governor to make a proposal for the
  20-16  transfer of an appropriation as provided by Chapter 317.
  20-17        (f)  The comptroller shall reimburse any amount of an
  20-18  appropriation transferred under Subsection (e) to the account or
  20-19  fund from which it was transferred.  The reimbursement must:
  20-20              (1)  be made from funds received by the comptroller for
  20-21  license fees and ticket sales under this chapter; and
  20-22              (2)  be made not later than the first anniversary of
  20-23  the date of the transfer.
  20-24        (g)  The comptroller's authority to transfer funds to the
  20-25  division under Subsection (e) expires September 1, 1993.  This
  20-26  subsection and Subsections (e) and (f) expire January 1, 1995.
  20-27        Sec. 466.012.  DIVISION EMPLOYEES.  (a)  Except as otherwise
   21-1  provided by law, the director may appoint deputies, assistants,
   21-2  other officers and employees, committees, and consultants and may
   21-3  prescribe their powers and their expenses.  Division employees
   21-4  serve at the will of the director.
   21-5        (b)  The director may not employ any person who would be
   21-6  denied a license as a sales agent under Section 466.155.
   21-7        (c)  Division employees are specifically exempted from the
   21-8  Position Classification Act of 1961 (Article 6252-11, Vernon's
   21-9  Texas Civil Statutes).  The director shall set the salaries of
  21-10  these employees.
  21-11        Sec. 466.013.  MARKETING REPRESENTATIVES.  The director may
  21-12  employ or contract with marketing representatives to promote the
  21-13  sale of tickets, to encourage persons to apply to become sales
  21-14  agents, or to investigate the qualifications of sales agent
  21-15  applicants.  The marketing representatives are exempted from the
  21-16  Position Classification Act of 1961 (Article 6252-11, Vernon's
  21-17  Texas Civil Statutes) and may be compensated based on a sales
  21-18  incentive system to be established by the director.
  21-19        Sec. 466.014.  Powers and Duties of Comptroller, Director,
  21-20  and Division.  (a)  The comptroller and director have broad
  21-21  authority and shall exercise strict control and close supervision
  21-22  over all lottery games conducted in this state to promote and
  21-23  ensure integrity, security, honesty, and fairness in the operation
  21-24  and administration of the lottery.
  21-25        (b)  The director may contract with or employ a person to
  21-26  perform a function, activity, or service in connection with the
  21-27  operation of the lottery as prescribed by the director.  A person
   22-1  with whom the director contracts to operate a lottery must be
   22-2  eligible for a sales agent license under Section 466.155.
   22-3        (c)  The director may award a contract for lottery supplies
   22-4  or services, including a contract under Subsection (b), pending the
   22-5  completion of any investigation authorized by this chapter.  A
   22-6  contract awarded under this subsection must include a provision
   22-7  permitting the director to terminate the contract without penalty
   22-8  if the investigation reveals that the person to whom the contract
   22-9  is awarded would not be eligible for a sales agent license under
  22-10  Section 466.155.  The director's authority to award a contract
  22-11  under this subsection expires September 1, 1993.  This subsection
  22-12  expires January 1, 1995.
  22-13        Sec. 466.015.  RULES.  (a)  The comptroller shall adopt all
  22-14  rules necessary to administer this chapter.  The director may
  22-15  propose rules to be adopted by the comptroller, but the director's
  22-16  proposed rules have no effect until adopted by the comptroller.
  22-17        (b)  The comptroller shall adopt rules to the extent they are
  22-18  not inconsistent with the open meetings law, Chapter 271, Acts of
  22-19  the 60th Legislature, Regular Session, 1967 (Article 6252-17,
  22-20  Vernon's Texas Civil Statutes), and the open records law, Chapter
  22-21  424, Acts of the 63rd Legislature, Regular Session, 1973 (Article
  22-22  6252-17a, Vernon's Texas Civil Statutes), governing the:
  22-23              (1)  security for the lottery and the division,
  22-24  including the development of an internal security plan;
  22-25              (2)  apportionment of the total revenues from the sale
  22-26  of tickets and from all other sources in the amounts provided by
  22-27  this chapter;
   23-1              (3)  enforcement of prohibitions on the sale of tickets
   23-2  to or by an individual younger than 18 years of age; and
   23-3              (4)  enforcement of prohibitions on a person playing a
   23-4  lottery game by telephone.
   23-5        (c)  The comptroller may adopt rules governing the
   23-6  establishment and operation of the lottery, including rules
   23-7  governing:
   23-8              (1)  the type of lottery games to be conducted;
   23-9              (2)  the price of each ticket;
  23-10              (3)  the number of winning tickets and amount of the
  23-11  prize paid on each winning ticket;
  23-12              (4)  the frequency of the drawing or selection of a
  23-13  winning ticket;
  23-14              (5)  the number and types of locations at which a
  23-15  ticket may be sold;
  23-16              (6)  the method to be used in selling a ticket;
  23-17              (7)  the use of vending machines or electronic or
  23-18  mechanical devices of any kind, other than machines or devices that
  23-19  dispense currency or coins as prizes;
  23-20              (8)  the manner of paying a prize to the holder of a
  23-21  winning ticket;
  23-22              (9)  the investigation of possible violations of this
  23-23  chapter or any rule adopted under this chapter;
  23-24              (10)  the means of advertising to be used for the
  23-25  lottery;
  23-26              (11)  the qualifications of vendors of lottery services
  23-27  or equipment;
   24-1              (12)  the confidentiality of information relating to
   24-2  the operation of the lottery, including:
   24-3                    (A)  trade secrets;
   24-4                    (B)  security measures, systems, or procedures;
   24-5                    (C)  security reports;
   24-6                    (D)  bids or other information regarding the
   24-7  division's contracts, if disclosure of the information would impair
   24-8  the division's ability to contract for facilities, goods, or
   24-9  services on terms favorable to the division;
  24-10                    (E)  personnel information unrelated to
  24-11  compensation, duties, qualifications, or responsibilities; and
  24-12                    (F)  information obtained by division security
  24-13  officers or investigators;
  24-14              (13)  the development and availability of a model
  24-15  agreement governing the division of a prize among multiple
  24-16  purchasers of a winning ticket purchased through a group purchase
  24-17  or pooling arrangement;
  24-18              (14)  the criteria to be used in evaluating bids for
  24-19  contracts for lottery facilities, goods, and services; or
  24-20              (15)  any other matter necessary or desirable as
  24-21  determined by the comptroller, to promote and ensure:
  24-22                    (A)  the integrity, security, honesty, and
  24-23  fairness of the operation and administration of the lottery; and
  24-24                    (B)  the convenience of players and holders of
  24-25  winning tickets.
  24-26        Sec. 466.016.  ANNUAL REPORT.  The comptroller shall make an
  24-27  annual report to the governor and the legislature that provides a
   25-1  summary of lottery revenues, prize disbursements, and other
   25-2  expenses for the fiscal year preceding the report.  The report must
   25-3  be in the form and reported in the time provided by the General
   25-4  Appropriations Act.
   25-5        Sec. 466.017.  Audits.  (a)  The director shall provide for a
   25-6  certified public accountant to conduct an independent audit for
   25-7  each fiscal year of all accounts and transactions of the lottery.
   25-8  The certified public accountant may not have, as determined by the
   25-9  director, a significant financial interest in a sales agent,
  25-10  lottery vendor, or lottery operator.  The certified public
  25-11  accountant shall present an audit report to the director, the
  25-12  comptroller, the governor, and the legislature not later than April
  25-13  1 of the year following the fiscal year for which the audit was
  25-14  performed.  The report must contain recommendations to enhance the
  25-15  earnings capability of the lottery and improve the efficiency of
  25-16  lottery operations.  The state auditor may review the results of
  25-17  and working papers related to the audit.
  25-18        (b)  Each lottery operator's and sales agent's records are
  25-19  subject to audit by the division, the comptroller, and the state
  25-20  auditor.  For the purpose of carrying out this chapter, the
  25-21  director, comptroller, or state auditor may examine all books,
  25-22  records, papers, or other objects that the director, comptroller,
  25-23  or state auditor determines are necessary for conducting a complete
  25-24  examination under this chapter and may also examine under oath any
  25-25  officer, director, or employee of a lottery operator or sales
  25-26  agent.  The director, comptroller, or state auditor may conduct an
  25-27  examination at the principal office or any other office of the
   26-1  lottery operator or sales agent or may require the lottery operator
   26-2  or sales agent to produce the records at the office of the
   26-3  division, comptroller, or state auditor.  If a sales agent refuses
   26-4  to permit an examination or to answer any question authorized by
   26-5  this subsection, the comptroller may summarily suspend the license
   26-6  of the sales agent under Section 466.160 until the examination is
   26-7  completed as required.  Section 321.013(h) does not apply to an
   26-8  audit of a lottery operator or sales agent.
   26-9        Sec. 466.018.  Investigations.  The attorney general, the
  26-10  district attorney for Travis County, or the district attorney,
  26-11  criminal district attorney, or county attorney performing the
  26-12  duties of district attorney for the county in which the violation
  26-13  or alleged violation occurred may investigate a violation or
  26-14  alleged violation of this chapter and of the penal laws of this
  26-15  state by the division or its employees, a sales agent, a lottery
  26-16  vendor, or a lottery operator.
  26-17        Sec. 466.019.  Enforcement.  (a)  The comptroller or
  26-18  designated personnel of the division may investigate violations of
  26-19  this chapter and violations of the rules adopted under this
  26-20  chapter.  After conducting investigations, the comptroller, a
  26-21  person designated by the comptroller, or any law enforcement agency
  26-22  may file a complaint with the district attorney of Travis County or
  26-23  with the district attorney of the county in which a violation is
  26-24  alleged to have occurred.
  26-25        (b)  The comptroller has the administrative, enforcement, and
  26-26  collection powers provided by Subtitle B, Title 2, Tax Code, in
  26-27  regard to the lottery.  For purposes of the application of Title 2
   27-1  of the Tax Code, the state's share of proceeds from the sale of
   27-2  lottery tickets is treated as if it were a tax.
   27-3        Sec. 466.020.  SECURITY.  (a)  The director shall maintain a
   27-4  department of security in the division.  The director shall appoint
   27-5  a deputy to administer the department.  The deputy must be
   27-6  qualified by training and experience in law enforcement or security
   27-7  to supervise, direct, and administer the activities of the
   27-8  department.
   27-9        (b)  The director may employ security officers or
  27-10  investigators as the director considers necessary and may
  27-11  commission security officers or investigators as peace officers.
  27-12  The deputy and all investigators employed by the department of
  27-13  security as peace officers must meet the requirements under Chapter
  27-14  415 for employment and commission as peace officers.
  27-15        (c)  A security officer or investigator employed by the
  27-16  department of security or a peace officer who is working in
  27-17  conjunction with the comptroller or the Department of Public Safety
  27-18  in the enforcement of this chapter, without a search warrant, may
  27-19  search and seize a lottery vending machine, lottery computer
  27-20  terminal, or other lottery equipment that is located on premises
  27-21  for which a person holds a sales agent license issued under this
  27-22  chapter.
  27-23        (d)  The Department of Public Safety, at the comptroller's
  27-24  request, shall perform a full criminal background investigation of
  27-25  a prospective deputy or investigator of the department of security.
  27-26  The comptroller shall reimburse the Department of Public Safety for
  27-27  the actual costs of an investigation.
   28-1        (e)  At least once every two years, the director shall employ
   28-2  an independent firm that is experienced in security, including
   28-3  computer security and systems security, to conduct a comprehensive
   28-4  study of all aspects of lottery security, including:
   28-5              (1)  lottery personnel security;
   28-6              (2)  sales agent security;
   28-7              (3)  lottery operator and vendor security;
   28-8              (4)  security against ticket counterfeiting and
   28-9  alteration and other means of fraudulent winning;
  28-10              (5)  security of lottery drawings;
  28-11              (6)  lottery computer, data communications, database,
  28-12  and systems security;
  28-13              (7)  lottery premises and warehouse security;
  28-14              (8)  security of distribution of tickets;
  28-15              (9)  security of validation and payment procedures;
  28-16              (10)  security involving unclaimed prizes;
  28-17              (11)  security aspects of each lottery game;
  28-18              (12)  security against the deliberate placement of
  28-19  winning tickets in lottery games that involve preprinted winning
  28-20  tickets by persons involved in the production, storage,
  28-21  transportation, or distribution of tickets; and
  28-22              (13)  other security aspects of lottery operations.
  28-23        (f)  The director shall provide the comptroller with a
  28-24  complete report of the security study conducted under Subsection
  28-25  (e).  The comptroller shall provide the governor and the
  28-26  legislature, before the convening of each regular legislative
  28-27  session, with a summary of the security study that shows the
   29-1  overall evaluation of the lottery's security.
   29-2        (g)  The first security study conducted under Subsection (e)
   29-3  must be conducted not later than the first anniversary of the first
   29-4  sale of a ticket to a player under this chapter.  The first report
   29-5  to the governor and legislature under Subsection (f) must be made
   29-6  before the convening of the regular session of the 74th
   29-7  Legislature.  This subsection expires June 1, 1995.
   29-8        Sec. 466.021.  DEMOGRAPHIC STUDIES.  (a)  The director shall,
   29-9  every two years, employ an independent firm experienced in
  29-10  demographic analysis to conduct a demographic study of lottery
  29-11  players.  The study must include the income, age, sex, education,
  29-12  and frequency of participation of players.
  29-13        (b)  The director shall report the results of the demographic
  29-14  study conducted under Subsection (a) to the comptroller, the
  29-15  governor, and the legislature before the convening of each regular
  29-16  legislative session.
  29-17        Sec. 466.022.  Confidential Information.  The following
  29-18  information is confidential and is exempt from disclosure under the
  29-19  open records law, Chapter 424, Acts of the 63rd Legislature,
  29-20  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
  29-21  Statutes):
  29-22              (1)  security plans and procedures of the division or
  29-23  the office of the comptroller designed to ensure the integrity and
  29-24  security of the operation of the lottery;
  29-25              (2)  information of a nature that is designed to ensure
  29-26  the integrity and security of the selection of winning tickets or
  29-27  numbers in the lottery, other than information describing the
   30-1  general procedures for selecting winning tickets or numbers; and
   30-2              (3)  the street address and telephone number of a prize
   30-3  winner, if the prize winner has not consented to the release of the
   30-4  information.
   30-5        Sec. 466.023.  DEPARTMENT OF PUBLIC SAFETY RECORDS.  (a)
   30-6  Except as otherwise provided by this chapter, all files, records,
   30-7  information, compilations, documents, photographs, reports,
   30-8  summaries, and reviews of information and related matters
   30-9  collected, retained, or compiled by the Department of Public Safety
  30-10  in the discharge of its duties under this chapter are confidential
  30-11  and are not subject to public disclosure.  Each of those items is
  30-12  subject to discovery by a person that is the subject of the item.
  30-13        (b)  An investigation report or other document submitted by
  30-14  the Department of Public Safety to the division becomes part of the
  30-15  investigative files of the division and is subject to discovery by
  30-16  a person that is the subject of the investigation report or other
  30-17  document.
  30-18        (c)  Information that is in the form available to the public
  30-19  is not privileged or confidential under this section and is subject
  30-20  to public disclosure.
  30-21        Sec. 466.024.  PROHIBITED GAMES.  (a)  The director or a
  30-22  lottery operator may not establish or operate a lottery game in
  30-23  which the winner is chosen on the basis of the outcome of a sports
  30-24  event.
  30-25        (b)  The comptroller shall adopt rules prohibiting the
  30-26  operation of any game using a video lottery machine or machine.
  30-27        (c)  In this section:
   31-1              (1)  "Sports event" means a football, basketball,
   31-2  baseball, or similar game, or a horse or dog race on which
   31-3  pari-mutuel wagering is allowed.
   31-4              (2)  "Video lottery machine" or "machine" means any
   31-5  electronic video game machine that, upon insertion of cash, is
   31-6  available to play or simulate the play of a video game, including
   31-7  video poker, keno, and blackjack, using a video display and
   31-8  microprocessors in which the player may receive free games or
   31-9  credits that can be redeemed for cash, coins, or tokens, or that
  31-10  directly dispenses cash, coins, or tokens.
  31-11        Sec. 466.025.  REPORTS OF TICKETS SOLD AND PRIZES AWARDED.
  31-12  For each lottery game, after the last date on which a prize may be
  31-13  claimed under Section 466.408(d), the director shall prepare a
  31-14  report that shows the total number of tickets sold and the number
  31-15  and amounts of prizes awarded in the game.  The report must be
  31-16  available for public inspection.
  31-17           (Sections 466.026-466.100 reserved for expansion
  31-18                SUBCHAPTER C.  PROCUREMENT; ADVERTISING
  31-19        Sec. 466.101.  PROCUREMENT PROCEDURES.  (a)  The director may
  31-20  establish procedures for the purchase or lease of facilities,
  31-21  goods, and services and make any purchases, leases, or contracts
  31-22  that are necessary for carrying out the purposes of this chapter.
  31-23  The procedures must, as determined feasible and appropriate by the
  31-24  director, promote competition to the maximum extent possible.
  31-25        (b)  In all procurement decisions, the director shall take
  31-26  into account the particularly sensitive nature of the lottery and
  31-27  shall act to promote and ensure integrity, security, honesty, and
   32-1  fairness in the operation and administration of the lottery and the
   32-2  objective of producing revenues for the state treasury.
   32-3        (c)  The procurement procedures adopted by the director must,
   32-4  as determined feasible and appropriate by the director, afford any
   32-5  party who is aggrieved by the terms of a solicitation or the award
   32-6  of a contract an opportunity to protest the director's action to
   32-7  the comptroller.  The protest procedures must provide for an
   32-8  expedient resolution of the protest in order to avoid substantially
   32-9  delaying a solicitation or contract award that is necessary for the
  32-10  timely implementation of a lottery game.  A protest must be in
  32-11  writing and be filed with the comptroller not later than 72 hours
  32-12  after receipt of notice of the director's action.
  32-13        (d)  A party who is aggrieved by the comptroller's resolution
  32-14  of a protest under Subsection (c) may file an action in the
  32-15  district court of Travis County.  The court shall give preference
  32-16  to hearings and trials of actions under this section.  If the party
  32-17  filing the action seeks to enjoin the implementation of a
  32-18  solicitation or contract, the party shall post a bond that is
  32-19  payable to the state if the party does not prevail in the appeal,
  32-20  and is in an amount sufficient to compensate the state for the
  32-21  revenue that would be lost due to the delay in lottery operations.
  32-22        (e)  The comptroller shall require any person seeking to
  32-23  contract for goods or services relating to the implementation and
  32-24  administration of this chapter to submit to competitive bidding
  32-25  procedures in accordance with rules adopted by the comptroller.
  32-26  The procedures must be for the purpose of ensuring fairness and
  32-27  integrity.
   33-1        Sec. 466.102.  LIQUIDATED DAMAGES; PERFORMANCE BOND.  A
   33-2  contract for the acquisition or provision of facilities, supplies,
   33-3  equipment, materials, or services related to the operation of the
   33-4  lottery must provide for liquidated damages and a performance bond
   33-5  in an amount equal to the director's best available estimate of the
   33-6  revenue that would be lost if the contractor fails to meet
   33-7  deadlines specified in the contract.
   33-8        Sec. 466.103.  PROHIBITED CONTRACTS.  The director may not
   33-9  award a contract for the purchase or lease of facilities, goods, or
  33-10  services related to lottery operations to a person who would be
  33-11  denied a license as a sales agent under Section 466.155.
  33-12        Sec. 466.104.  ASSISTANCE OF GENERAL SERVICES COMMISSION.  On
  33-13  request of the director, the General Services Commission shall
  33-14  assist the director in:
  33-15              (1)  acquiring facilities, supplies, materials,
  33-16  equipment, and services under the State Purchasing and General
  33-17  Services Act (Article 601b, Vernon's Texas Civil Statutes); or
  33-18              (2)  establishing procedures for the director's
  33-19  accelerated acquisition of facilities, supplies, materials,
  33-20  equipment, and services for the operation of the lottery.
  33-21        Sec. 466.105.  APPLICABILITY OF OTHER LAW.  (a)  A contract
  33-22  for the acquisition or provision of facilities, supplies,
  33-23  equipment, materials, or services related to the operation of the
  33-24  lottery is not subject to the Information Resources Management Act
  33-25  (Article 4413(32j), Revised Statutes).
  33-26        (b)  Notwithstanding the provisions of the Public Utility
  33-27  Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), the
   34-1  comptroller may negotiate rates and execute contracts with
   34-2  telecommunications service providers for the interexchange services
   34-3  necessary for the operation of the lottery.  The comptroller may
   34-4  acquire transmission facilities by lease, purchase, or
   34-5  lease-purchase.  The acquisition of transmission facilities must be
   34-6  done on a competitive bid basis if possible.
   34-7        Sec. 466.106.  PREFERENCE FOR TEXAS BUSINESSES.  (a)  In all
   34-8  contracts for lottery equipment, supplies, services, and
   34-9  advertising, the division and each lottery operator shall give
  34-10  preference to equipment or supplies produced in this state or
  34-11  services or advertising offered by bidders from this state, the
  34-12  cost to the state and quality being equal.
  34-13        (b)  If equipment or supplies produced in this state or
  34-14  services or advertising offered by a bidder from this state are not
  34-15  equal in cost and quality, then equipment or supplies produced in
  34-16  another state or services or advertising offered by a bidder from
  34-17  another state shall be given preference over foreign equipment,
  34-18  supplies, services, or advertising.
  34-19        Sec. 466.107.  MINORITY BUSINESSES.  (a)  The director, the
  34-20  division, and each lottery operator shall take positive steps to:
  34-21              (1)  inform minority businesses of opportunities to:
  34-22                    (A)  provide lottery equipment and supplies to
  34-23  the division;
  34-24                    (B)  provide services, including advertising, to
  34-25  the division for the operation of the lottery; or
  34-26                    (C)  obtain a license to sell lottery tickets;
  34-27              (2)  waive or modify bond requirements, if feasible;
   35-1              (3)  award contracts for lottery equipment or supplies
   35-2  to minority businesses when possible;
   35-3              (4)  award contracts for lottery services, including
   35-4  advertising, to minority businesses when possible;
   35-5              (5)  license minority businesses as sales agents;
   35-6              (6)  monitor the effectiveness of the efforts to
   35-7  increase the ability of minority businesses to do business with the
   35-8  division; and
   35-9              (7)  require all bidders or contractors, when
  35-10  appropriate, to include specific plans or arrangements to use
  35-11  subcontracts with minority businesses.
  35-12        (b)  In this section:
  35-13              (1)  "Minority business" means a business entity at
  35-14  least 51 percent of which is owned by minority group members or, in
  35-15  the case of a corporation, at least 51 percent of the shares of
  35-16  which are owned by minority group members, and that:
  35-17                    (A)  is managed and, in daily operations, is
  35-18  controlled by minority group members; and
  35-19                    (B)  is a domestic business entity with a home or
  35-20  branch office located in this state and is not a branch or
  35-21  subsidiary of a foreign corporation, firm, or other business
  35-22  entity.
  35-23              (2)  "Minority group members" includes:
  35-24                    (A)  African Americans;
  35-25                    (B)  American Indians;
  35-26                    (C)  Asian Americans; and
  35-27                    (D)  Mexican Americans and other Americans of
   36-1  Hispanic origin.
   36-2        (c)  The comptroller shall annually report to the legislature
   36-3  and the governor on the level of minority business participation as
   36-4  pertains to both the division's contracts and the licensing of
   36-5  sales agents.  The report must include recommendations for the
   36-6  improvement of minority business opportunities in lottery-related
   36-7  business.
   36-8        Sec. 466.108.  TELEVISION CONTRACTS.  If the drawing or
   36-9  selection of winning tickets is televised under a contract with the
  36-10  division, the contract must be awarded by competitive bid.  The
  36-11  comptroller shall adopt rules governing the competitive bidding
  36-12  process.  Money received under the contract shall be deposited in
  36-13  the state lottery account established under Section 466.355.
  36-14        Sec. 466.109.  PUBLICITY OF INDIVIDUALS PROHIBITED.   (a)  A
  36-15  state officer or employee, including the comptroller, the director,
  36-16  or an officer or employee of the comptroller's office or the
  36-17  division, may not appear in an advertisement or promotion for the
  36-18  lottery that is sponsored by the comptroller's office or the
  36-19  division or in a televised lottery drawing.  An advertisement or
  36-20  promotion for the lottery may not contain the likeness or name of a
  36-21  state officer or employee, including the comptroller, the director,
  36-22  or an officer or employee of the comptroller's office or the
  36-23  division.
  36-24        (b)  In connection with providing security for the lottery,
  36-25  this section does not prohibit a security officer or investigator
  36-26  employed by the division from appearing in a televised lottery
  36-27  drawing or other promotion for the lottery that is sponsored by the
   37-1  comptroller's office or the division.
   37-2        (c)  Notwithstanding this section, the director may designate
   37-3  an employee of the division to participate in a promotional event,
   37-4  the purpose of which is to award a prize.
   37-5        Sec. 466.110.  PROHIBITED ADVERTISEMENTS.  The legislature
   37-6  intends that advertisements or promotions sponsored by the
   37-7  comptroller's office or the division for the lottery not be of a
   37-8  nature that unduly influences any person to purchase a lottery
   37-9  ticket or number.
  37-10           (Sections 466.111-466.150 reserved for expansion
  37-11               SUBCHAPTER D.  LICENSING OF SALES AGENTS
  37-12        Sec. 466.151.  LICENSE REQUIRED.  (a)  If the director
  37-13  authorizes a person who is not an employee of the division to sell
  37-14  tickets, the person must be licensed as a sales agent by the
  37-15  division.
  37-16        (b)  The director may establish classes of licenses necessary
  37-17  to regulate and administer the quantity and type of lottery games
  37-18  provided at each licensed location.
  37-19        (c)  The director shall attempt to license minority
  37-20  businesses as sales agents in at least 20 percent of the licenses
  37-21  issued.  Implementation of this subsection must be consistent with
  37-22  Sections 466.152-466.154 and the rest of this section.
  37-23        (d)  The director may license as a sales agent each person
  37-24  the director believes will best serve the public convenience.  The
  37-25  director may not issue a license to a person to engage in business
  37-26  exclusively as a sales agent.  A license may not be transferred or
  37-27  assigned to any other person or location.
   38-1        (e)  The director may issue a license to a person only if the
   38-2  director finds that the person's experience, character, and general
   38-3  fitness are such that the person's participation as a sales agent
   38-4  will not detract from the integrity, security, honesty, and
   38-5  fairness of the operation of the lottery.
   38-6        Sec. 466.152.  LICENSE APPLICATION; FEE.  (a)  An applicant
   38-7  for a license under this subchapter must apply to the division
   38-8  under rules adopted by the comptroller, provide information
   38-9  necessary to determine the applicant's eligibility for a license
  38-10  under Section 466.155, and provide other information considered
  38-11  necessary by the comptroller.
  38-12        (b)  The applicant must include an application fee with each
  38-13  application.  The director shall set the application fee in an
  38-14  amount that is at least sufficient to cover the costs incurred by
  38-15  the division and by the Department of Public Safety to process the
  38-16  application.  The director shall determine from information
  38-17  provided by the department the amount required for costs incurred
  38-18  by the department and shall allocate those amounts to the
  38-19  department at least monthly.  If the director denies an application
  38-20  for a license based on a factor listed in Section 466.154, the
  38-21  director shall refund one-half of the application fee to the
  38-22  applicant.  If the director denies an application based on another
  38-23  factor, the director may not refund any part of the application
  38-24  fee.
  38-25        (c)  Applications for licenses must be available for public
  38-26  inspection during regular office hours.
  38-27        (d)  A separate license is required for each location at
   39-1  which tickets are to be sold.  A person who desires to operate more
   39-2  than one location to sell tickets must submit a separate
   39-3  application for each location.
   39-4        (e)  Fees collected under this section shall be deposited in
   39-5  the state treasury to the credit of the state lottery account.
   39-6        Sec. 466.153.  CHANGE IN APPLICATION INFORMATION.  (a)
   39-7  Except as provided by Subsection (b), an applicant or sales agent
   39-8  shall notify the director of any change in the information in the
   39-9  applicant's or sales agent's most recent application for a license
  39-10  or renewal of a license.  The applicant or sales agent shall notify
  39-11  the director of the change in the information not later than the
  39-12  10th day after the date of the change.
  39-13        (b)  A corporate applicant or sales agent is not required to
  39-14  notify the director under Subsection (a) of a transfer of less than
  39-15  10 percent of the corporate stock unless the transfer results in a
  39-16  shareholder who previously held 10 percent or less of the stock
  39-17  holding more than 10 percent of the stock.
  39-18        Sec. 466.154.  RULES.  The comptroller shall adopt rules
  39-19  under which, before issuing a license to an applicant, the director
  39-20  shall consider:
  39-21              (1)  the financial responsibility and security of the
  39-22  applicant and the business or activity in which the applicant is
  39-23  engaged;
  39-24              (2)  the public accessibility of the applicant's place
  39-25  of business or activity;
  39-26              (3)  the sufficiency of existing sales agents to serve
  39-27  the public convenience;
   40-1              (4)  whether individuals under 18 years of age
   40-2  constitute a majority of the applicant's customers or as customers
   40-3  provide a majority of the applicant's sales volume;
   40-4              (5)  the volume of expected sales; and
   40-5              (6)  any other factor that the director considers
   40-6  appropriate.
   40-7        Sec. 466.155.  DENIAL OF APPLICATION OR SUSPENSION OR
   40-8  REVOCATION OF LICENSE.  (a)  After a hearing, the director shall
   40-9  deny an application for a license or the comptroller shall suspend
  40-10  or revoke a license if the director or comptroller, as applicable,
  40-11  finds that the applicant or sales agent:
  40-12              (1)  is an individual who:
  40-13                    (A)  has been convicted of a felony, criminal
  40-14  fraud, gambling or a gambling-related offense, or a misdemeanor
  40-15  involving moral turpitude, if less than 10 years has elapsed since
  40-16  the termination of the sentence, parole, mandatory supervision, or
  40-17  probation served for the offense;
  40-18                    (B)  is or has been a professional gambler; or
  40-19                    (C)  is married to or related in the first degree
  40-20  of consanguinity or affinity to an individual:
  40-21                          (i)  described in Paragraph (A) or (B); or
  40-22                          (ii)  who is currently delinquent in the
  40-23  payment of any state tax;
  40-24              (2)  is not an individual, and an individual described
  40-25  in Subdivision (1):
  40-26                    (A)  is an officer or director of the applicant
  40-27  or sales agent;
   41-1                    (B)  holds more than 10 percent of the stock in
   41-2  the applicant or sales agent;
   41-3                    (C)  holds an equitable interest greater than 10
   41-4  percent in the applicant or sales agent;
   41-5                    (D)  is a creditor of the applicant or sales
   41-6  agent who holds more than 10 percent of the applicant's or sales
   41-7  agent's outstanding debt;
   41-8                    (E)  is the owner or lessee of a business that
   41-9  the applicant or sales agent conducts or through which the
  41-10  applicant will conduct a ticket sales agency;
  41-11                    (F)  shares or will share in the profits, other
  41-12  than stock dividends, of the applicant or sales agent;
  41-13                    (G)  participates in managing the affairs of the
  41-14  applicant or sales agent; or
  41-15                    (H)  is an employee of the applicant or sales
  41-16  agent who is or will be involved in:
  41-17                          (i)  selling tickets; or
  41-18                          (ii)  handling money from the sale of
  41-19  tickets;
  41-20              (3)  is currently delinquent in the payment of any
  41-21  state tax;
  41-22              (4)  is a person whose location for the sales agency
  41-23  is:
  41-24                    (A)  a racetrack at which wagering is authorized
  41-25  under the Texas Racing Act (Article 179e, Vernon's Texas Civil
  41-26  Statutes);
  41-27                    (B)  a location licensed for games of bingo under
   42-1  the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
   42-2  Statutes);
   42-3                    (C)  on land that is owned by:
   42-4                          (i)  this state; or
   42-5                          (ii)  a political subdivision of this
   42-6  state, other than land used as a mass transportation facility that
   42-7  is used by commercial carriers; or
   42-8                    (D)  a location for which a person holds a wine
   42-9  and beer retailer's permit, mixed beverage permit, mixed beverage
  42-10  late hours permit, private club registration permit, or private
  42-11  club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
  42-12  Alcoholic Beverage Code; or
  42-13              (5)  has violated this chapter or a rule adopted under
  42-14  this chapter.
  42-15        (b)  If the director proposes to deny an application for a
  42-16  license or the comptroller proposes to suspend or revoke a license
  42-17  under this section, the applicant or sales agent is entitled to
  42-18  written notice of the time and place of the hearing.  A notice may
  42-19  be served on an applicant or sales agent personally or sent by
  42-20  certified or registered mail, return receipt requested, to the
  42-21  person's mailing address as it appears on the division's records.
  42-22  A notice must be served or mailed not later than the 20th day
  42-23  before the date of the hearing.
  42-24        (c)  At a hearing, an applicant or sales agent must show by a
  42-25  preponderance of the evidence why the application should not be
  42-26  denied or the license suspended or revoked.
  42-27        (d)  The director shall give an applicant or sales agent
   43-1  written notice of a denial of an application or a suspension or
   43-2  revocation of a license.
   43-3        (e)  The director may not issue a license to a person who has
   43-4  previously had a license under this chapter revoked unless the
   43-5  director is satisfied the person will comply with this chapter and
   43-6  the rules adopted under this chapter.   The director may prescribe
   43-7  the terms under which a suspended license will be reissued.
   43-8        (f)  The director may not issue a license to an applicant who
   43-9  fails to certify to the director the applicant's compliance with
  43-10  the federal Americans with Disabilities Act of 1990 (42 U.S.C.
  43-11  Section 12101 et seq.).
  43-12        Sec. 466.156.  BOND; INSURANCE.  (a)  Each sales agent shall
  43-13  post a cash bond, surety bond, letter of credit, certificate of
  43-14  deposit, or other security approved by the director.  The amount of
  43-15  the security shall be determined by the director and must reflect
  43-16  the possible losses to the state from the operation of the sales
  43-17  agent.
  43-18        (b)  The director may also require a sales agent to maintain
  43-19  insurance if necessary to protect the interests of the state.
  43-20        Sec. 466.157.  DISPLAY OF LICENSE.  As prescribed by division
  43-21  rules, each sales agent shall prominently display the license in
  43-22  each place of business or activity at which the sales agent sells
  43-23  tickets.
  43-24        Sec. 466.158.  EXPIRATION OF LICENSE; RENEWAL.  (a)  Unless
  43-25  suspended or revoked, a license expires on the date specified in
  43-26  the license, which may not be later than the second anniversary of
  43-27  its date of issuance.
   44-1        (b)  The comptroller shall adopt rules for the renewal of
   44-2  licenses.  The director shall set the fee for a renewal of a
   44-3  license in an amount at least sufficient to cover the cost of
   44-4  processing the renewal.
   44-5        (c)  A sales agent must file a renewal application and pay
   44-6  the renewal fee before the sales agent's license expires.
   44-7        Sec. 466.159.  DEATH, DISSOLUTION, OR BANKRUPTCY OF SALES
   44-8  AGENT.  (a)  A license issued under this chapter expires on:
   44-9              (1)  the death of a sales agent who is an individual;
  44-10              (2)  the dissolution of a sales agent that is not an
  44-11  individual; or
  44-12              (3)  the bankruptcy or receivership of a sales agent.
  44-13        (b)  If a license expires under Subsection (a) and the sales
  44-14  agent's successor in interest desires to operate the sales agency,
  44-15  the successor shall file an application for an extended license not
  44-16  later than the 30th day after the date the license expired.  The
  44-17  application must state the basis for the applicant's claim to be
  44-18  the successor in interest to the sales agent and must contain a
  44-19  certification that the applicant would be eligible for a license
  44-20  under Section 466.155.  The director shall permit a qualified
  44-21  applicant to operate under an extended license for not more than
  44-22  one year or until a new license is issued to the applicant,
  44-23  whichever occurs first.
  44-24        Sec. 466.160.  SUMMARY SUSPENSION OF LICENSE.  (a)  The
  44-25  comptroller may suspend a sales agent's license summarily without
  44-26  notice or hearing if the comptroller finds that the action is
  44-27  necessary to maintain the integrity, security, honesty, or fairness
   45-1  of the operation or administration of the lottery or to prevent
   45-2  financial loss to the state and:
   45-3              (1)  the sales agent fails to deposit money received
   45-4  from ticket sales under Section 466.351;
   45-5              (2)  an event occurs that would render the sales agent
   45-6  ineligible for a license under Section 466.155;
   45-7              (3)  the sales agent refuses to permit the director,
   45-8  the comptroller, or the state auditor to examine the agent's books,
   45-9  records, papers, or other objects under Section 466.017(b); or
  45-10              (4)  the director learns the sales agent has failed to
  45-11  disclose information that would, if disclosed, render the sales
  45-12  agent ineligible for a license under Section 466.155.
  45-13        (b)  The comptroller may summarily suspend a sales agent's
  45-14  license if proceedings for a preliminary hearing before the
  45-15  comptroller or the comptroller's representative are initiated
  45-16  simultaneously with the summary suspension.  The preliminary
  45-17  hearing shall be set for a date not later than 10 days after the
  45-18  date of the summary suspension, unless the parties agree to a later
  45-19  date.
  45-20        (c)  At the preliminary hearing, the sales agent must show
  45-21  cause why the license should not remain suspended pending a final
  45-22  hearing on suspension or revocation.  The Administrative Procedure
  45-23  and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  45-24  Statutes) does not apply to the comptroller in the administration
  45-25  and enforcement of the summary suspension of a license under this
  45-26  section.  The rules governing a hearing on any other license
  45-27  suspension or revocation under this chapter govern a final
   46-1  administrative hearing under this subsection.
   46-2        (d)  To initiate a proceeding to summarily suspend a sales
   46-3  agent's license, the comptroller must serve notice to the sales
   46-4  agent informing the agent of the right to a preliminary hearing
   46-5  before the comptroller or the comptroller's representative and of
   46-6  the time and place of the preliminary hearing.  The notice must be
   46-7  personally served on the sales agent or an officer, employee, or
   46-8  agent of the sales agent or sent by certified or registered mail,
   46-9  return receipt requested, to the sales agent's mailing address as
  46-10  it appears on the division's records.  The notice must state the
  46-11  alleged violations that constitute grounds for summary suspension.
  46-12  The suspension is effective at the time the notice is served.  If
  46-13  notice is served in person, the sales agent shall immediately
  46-14  surrender the license to the comptroller or to the comptroller's
  46-15  representative.  If notice is served by mail, the sales agent shall
  46-16  immediately return the license to the comptroller.  If the sales
  46-17  agent uses an on-line electronic terminal to sell tickets, the
  46-18  director or a lottery operator on the instructions of the director
  46-19  may terminate the connection of the terminal to the division's
  46-20  lottery computer at the time the proceeding to summarily suspend
  46-21  the license is initiated.
  46-22           (Sections 466.161-466.200 reserved for expansion
  46-23            SUBCHAPTER E.  CRIMINAL HISTORY INVESTIGATIONS
  46-24        Sec. 466.201.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION.
  46-25  (a)  The comptroller is entitled to conduct an investigation of and
  46-26  is entitled to obtain criminal history record information
  46-27  maintained by the Department of Public Safety, the Federal Bureau
   47-1  of Investigation Identification Division, or another law
   47-2  enforcement agency to assist in the investigation of:
   47-3              (1)  a sales agent or an applicant for a sales agent
   47-4  license;
   47-5              (2)  a person required to be named in a license
   47-6  application;
   47-7              (3)  a lottery operator or prospective lottery
   47-8  operator;
   47-9              (4)  an employee of a lottery operator or prospective
  47-10  lottery operator, if the employee is or will be directly involved
  47-11  in lottery operations;
  47-12              (5)  a person who manufactures or distributes lottery
  47-13  equipment or supplies, or a representative of a person who
  47-14  manufactures or distributes lottery equipment or supplies offered
  47-15  to the lottery;
  47-16              (6)  a person who has submitted a written bid or
  47-17  proposal to the division in connection with the procurement of
  47-18  goods or services by the division, if the amount of the bid or
  47-19  proposal exceeds $500;
  47-20              (7)  an employee or other person who works for or will
  47-21  work for a sales agent or an applicant for a sales agent license;
  47-22              (8)  a person who proposes to enter into or who has a
  47-23  contract with the division to supply goods or services to the
  47-24  division; or
  47-25              (9)  if a person described in Subdivisions (1) through
  47-26  (8) is not an individual, an individual who:
  47-27                    (A)  is an officer or director of the person;
   48-1                    (B)  holds more than 10 percent of the stock in
   48-2  the person;
   48-3                    (C)  holds an equitable interest greater than 10
   48-4  percent in the person;
   48-5                    (D)  is a creditor of the person who holds more
   48-6  than 10 percent of the person's outstanding debt;
   48-7                    (E)  is the owner or lessee of a business that
   48-8  the person conducts or through which the person will conduct
   48-9  lottery-related activities;
  48-10                    (F)  shares or will share in the profits, other
  48-11  than stock dividends, of the person;
  48-12                    (G)  participates in managing the affairs of the
  48-13  person; or
  48-14                    (H)  is an employee of the person who is or will
  48-15  be involved in:
  48-16                          (i)  selling tickets; or
  48-17                          (ii)  handling money from the sale of
  48-18  tickets.
  48-19        (b)  The comptroller shall conduct an investigation of and
  48-20  obtain criminal history record information maintained by the
  48-21  Department of Public Safety, the Federal Bureau of Investigation
  48-22  Identification Division, or another law enforcement agency to
  48-23  assist in the investigation of:
  48-24              (1)  the director or a prospective director of the
  48-25  division; or
  48-26              (2)  an employee or prospective employee of the
  48-27  division.
   49-1        (c)  Not later than the first anniversary after the date of
   49-2  each renewal, the comptroller shall obtain criminal history record
   49-3  information maintained by the Department of Public Safety on a
   49-4  sales agent whose license is renewed under Section 466.158.
   49-5        Sec. 466.202.  FINGERPRINTS.  (a)  The director may discharge
   49-6  from employment an employee of the division who fails to provide a
   49-7  complete legible set of fingerprints on request.  The director may
   49-8  refuse to consider a prospective employee of the division who fails
   49-9  to provide a complete legible set of fingerprints on request.
  49-10        (b)  The director may deny an application for a license or
  49-11  the comptroller may suspend or revoke a license if the applicant or
  49-12  sales agent fails on request to provide a complete legible set of
  49-13  fingerprints of:
  49-14              (1)  a person required to be named in a license
  49-15  application; or
  49-16              (2)  an employee or other person who works or will work
  49-17  for the applicant or sales agent, if the person:
  49-18                    (A)  is or will be involved in the sale of
  49-19  tickets; or
  49-20                    (B)  handles or will handle money from the sale
  49-21  of tickets.
  49-22        (c)  All fingerprints submitted to the Department of Public
  49-23  Safety must be on a form prescribed by the department.
  49-24        Sec. 466.203.  DEPARTMENT OF PUBLIC SAFETY ASSISTANCE; COSTS
  49-25  OF INVESTIGATION.  (a)  The director may request the cooperation of
  49-26  the Department of Public Safety to perform a background
  49-27  investigation of a person listed in Section 466.201(a) or (b).  The
   50-1  director shall reimburse the department for the actual cost of an
   50-2  investigation.
   50-3        (b)  The director may require a person who is subject to
   50-4  investigation to pay all costs of the investigation and to provide
   50-5  any information, including fingerprints, necessary to carry out the
   50-6  investigation or facilitate access to state or federal criminal
   50-7  history record information.  Payments made to the director under
   50-8  this subsection shall be deposited in the general revenue fund and
   50-9  may be used to reimburse the Department of Public Safety for the
  50-10  actual costs of an investigation.
  50-11        (c)  Unless otherwise prohibited by law, the Department of
  50-12  Public Safety may retain any record or information submitted to it
  50-13  under this section.  The department shall notify the director of
  50-14  any change in information provided to the director when the
  50-15  department learns of the change.
  50-16        Sec. 466.204.  ACCESS TO INTERNAL REVENUE SERVICE
  50-17  INFORMATION.  The director may obtain information relating to a
  50-18  person's qualification for licensing, employment, or contracting
  50-19  under this chapter from the Internal Revenue Service under a
  50-20  contract between the comptroller and the Internal Revenue Service
  50-21  on:
  50-22              (1)  a sales agent or an applicant for a sales agent
  50-23  license;
  50-24              (2)  an employee or prospective employee of the
  50-25  division;
  50-26              (3)  a person required to be named in a license
  50-27  application;
   51-1              (4)  a lottery operator or prospective lottery
   51-2  operator;
   51-3              (5)  an employee of a lottery operator or prospective
   51-4  lottery operator, if the employee is or will be directly involved
   51-5  in lottery operations;
   51-6              (6)  a person who manufactures or distributes lottery
   51-7  equipment or supplies, or a representative of a person who
   51-8  manufactures or distributes lottery equipment or supplies offered
   51-9  to the lottery;
  51-10              (7)  a person who has submitted a written bid or
  51-11  proposal to the division in connection with the procurement of
  51-12  goods or services by the division;
  51-13              (8)  an employee or other person who works for or will
  51-14  work for a sales agent or an applicant for a sales agent license;
  51-15  or
  51-16              (9)  a person who proposes to enter into or who has a
  51-17  contract with the division to supply goods or services to the
  51-18  division.
  51-19        Sec. 466.205.  CONFIDENTIAL INFORMATION; OFFENSE.  (a)  All
  51-20  criminal history record information received by the director is
  51-21  privileged information and is for the exclusive use of the director
  51-22  and employees of the division designated by the director.  Except
  51-23  on court order or as provided by Subsection (c), the information
  51-24  may not be released or otherwise disclosed to any other person or
  51-25  agency.
  51-26        (b)  All information received by the director from the
  51-27  Internal Revenue Service is confidential and may only be used as
   52-1  provided by the contract between the comptroller and the Internal
   52-2  Revenue Service under which the information was obtained.
   52-3        (c)  The director or an employee of the division may not
   52-4  provide any person being investigated under this subchapter with a
   52-5  copy of the person's criminal history record obtained from the
   52-6  Department of Public Safety, the Federal Bureau of Investigation
   52-7  Identification Division, or another law enforcement agency.  This
   52-8  subsection does not prevent the director from disclosing to the
   52-9  person the dates and places of arrests, offenses, and dispositions
  52-10  contained in the criminal history records.
  52-11        (d)  The comptroller shall adopt necessary rules governing
  52-12  the custody and use of information obtained under this subchapter.
  52-13        (e)  A person commits an offense if the person releases or
  52-14  discloses information received by the comptroller under this
  52-15  subchapter except on court order or as provided by Subsection (c).
  52-16  An offense under this subsection is a Class A misdemeanor.
  52-17           (Sections 466.206-466.250 reserved for expansion
  52-18                  SUBCHAPTER F.  REGULATION OF GAMES
  52-19        Sec. 466.251.  TICKETS.  (a)  The director shall prescribe
  52-20  the form of tickets.
  52-21        (b)  The toll-free "800" telephone number established by the
  52-22  Texas Commission on Alcohol and Drug Abuse under Section 461.018,
  52-23  Health and Safety Code, must be printed on each ticket.
  52-24        (c)  The overall estimated odds of winning a prize in a
  52-25  particular lottery game must be printed on each ticket and
  52-26  prominently displayed in association with the sale of lottery
  52-27  products.  The estimate must be based on reasonable projections and
   53-1  past experience.
   53-2        Sec. 466.252.  PURCHASE OF TICKET AGREEMENT TO ABIDE BY
   53-3  RULES.  (a)  By purchasing a ticket in a particular lottery game, a
   53-4  player agrees to abide by and be bound by the division's rules,
   53-5  including the rules applicable to the particular lottery game
   53-6  involved.  The player also acknowledges that the determination of
   53-7  whether the player is a valid winner is subject to:
   53-8              (1)  the division's rules and claims procedures,
   53-9  including those developed for the particular lottery game involved;
  53-10  and
  53-11              (2)  any validation tests established by the division
  53-12  for the particular lottery game involved.
  53-13        (b)  If the lottery uses tickets, an abbreviated form of the
  53-14  rules or a reference to the rules may appear on the tickets.
  53-15        Sec. 466.253.  SALE OF TICKET TO PERSON YOUNGER THAN 18
  53-16  YEARS.  (a)  A sales agent or an employee of a sales agent may not
  53-17  intentionally or knowingly sell or offer to sell a ticket to an
  53-18  individual that the person knows is younger than 18 years of age.
  53-19        (b)  A person 18 years of age or older may purchase a ticket
  53-20  to give as a gift to another person, including an individual
  53-21  younger than 18 years of age.  If an individual younger than 18
  53-22  years of age directly purchases a ticket, the individual is not
  53-23  eligible to receive a prize, and the prize otherwise payable on the
  53-24  ticket is treated as an unclaimed prize as provided by Section
  53-25  466.408.
  53-26        Sec. 466.254.  SALE OF TICKET OR PAYMENT OF PRIZE TO CERTAIN
  53-27  PERSONS.  A person may not sell a ticket or pay a lottery prize to
   54-1  another person that the person knows is:
   54-2              (1)  a member, officer, or employee of a person that
   54-3  has a contract with the division to sell or lease goods or services
   54-4  used in the lottery;
   54-5              (2)  a member, officer, or employee of a lottery
   54-6  operator;
   54-7              (3)  an officer or employee of the comptroller; or
   54-8              (4)  a spouse, child, brother, sister, or parent
   54-9  residing as a member of the same household in the principal place
  54-10  of residence of a person described by Subdivision (1), (2), or (3).
  54-11        Sec. 466.255.  CERTAIN TICKET PURCHASES PROHIBITED.  (a)  A
  54-12  person may not purchase a ticket:
  54-13              (1)  through the use of:
  54-14                    (A)  a food stamp coupon issued under the food
  54-15  stamp program administered under Chapter 33, Human Resources Code;
  54-16  or
  54-17                    (B)  a credit card or a debit card;
  54-18              (2)  over the telephone; or
  54-19              (3)  by mail-order sales.
  54-20        (b)  A person may not pay for a ticket with the proceeds of a
  54-21  check issued as a payment under the Aid to Families with Dependent
  54-22  Children program administered under Chapter 31, Human Resources
  54-23  Code.
  54-24           (Sections 466.256-466.300 reserved for expansion
  54-25                        SUBCHAPTER G.  OFFENSES
  54-26        Sec. 466.301.  DEFINITIONS.  In this subchapter:
  54-27              (1)  "Communicate directly with" has the meaning
   55-1  assigned by Section 305.002.
   55-2              (2)  "Gift" includes a gratuity, trip, meal, or other
   55-3  thing of value for which the recipient does not compensate the
   55-4  person making the gift.
   55-5              (3)  "Legislation" has the meaning assigned by Section
   55-6  305.002.
   55-7              (4)  "Member of the legislative branch" has the meaning
   55-8  assigned by Section 305.002.
   55-9              (5)  "Participated" means to have taken action as an
  55-10  officer or employee through decision, approval, disapproval,
  55-11  recommendation, giving advice, or similar action.
  55-12              (6)  "Particular matter" includes an investigation, an
  55-13  application, a request for a ruling or determination, a license
  55-14  proceeding, rulemaking, a contract, a controversy, a claim, a
  55-15  charge, an accusation, an arrest, or a judicial or other
  55-16  proceeding.
  55-17              (7)  "Person that has a significant financial interest
  55-18  in the lottery" means:
  55-19                    (A)  a person that manufactures, distributes,
  55-20  sells, or produces lottery equipment, supplies, services, or
  55-21  advertising;
  55-22                    (B)  a person that has made a bid to operate the
  55-23  lottery in the preceding two years or that intends to make a bid to
  55-24  operate the lottery; or
  55-25                    (C)  a sales agent.
  55-26              (8)  "Political committee" has the meaning assigned by
  55-27  Section 251.001, Election Code.
   56-1              (9)  "Political contribution" has the meaning assigned
   56-2  by Section 251.001, Election Code.
   56-3        Sec. 466.302.  SALE OF TICKET AT PRICE GREATER THAN FIXED
   56-4  PRICE.  (a)  A person commits an offense if the person
   56-5  intentionally or knowingly sells a ticket at a price the person
   56-6  knows is greater than that fixed by the division or by the lottery
   56-7  operator authorized to set that price.
   56-8        (b)  An offense under this section is a Class A misdemeanor.
   56-9        Sec. 466.303.  SALE OF TICKET BY UNAUTHORIZED PERSON.  (a)
  56-10  Except as provided by Subsection (b), a person who is not a sales
  56-11  agent or an employee of a sales agent commits an offense if the
  56-12  person intentionally or knowingly sells a ticket.
  56-13        (b)  A lottery operator may sell tickets to a sales agent.  A
  56-14  person who is not a sales agent may distribute tickets as premiums
  56-15  to customers, employees, or other persons who deal with the person
  56-16  if no purchase or service is required to entitle the recipient to
  56-17  the ticket.
  56-18        (c)  An offense under this section is a felony of the third
  56-19  degree.
  56-20        Sec. 466.304.  SALE OF TICKET AT UNAUTHORIZED LOCATION.  (a)
  56-21  A person commits an offense if the person sells a ticket at a
  56-22  location other than the location of a sales agency.
  56-23        (b)  An offense under this section is a Class A misdemeanor.
  56-24        Sec. 466.305.  SALE OF TICKET ON CREDIT.  (a)  A sales agent
  56-25  or an employee of a sales agent commits an offense if the person
  56-26  intentionally or knowingly sells a ticket to another person by
  56-27  extending credit or lending money to the person to enable the
   57-1  person to  purchase the ticket.
   57-2        (b)  An offense under this section is a Class C misdemeanor.
   57-3        Sec. 466.306.  FORGERY; ALTERATION OF TICKET.  (a)  A person
   57-4  commits an offense if the person intentionally or knowingly alters
   57-5  or forges a ticket.
   57-6        (b)  An offense under this section is a felony of the third
   57-7  degree unless it is shown on the trial of the offense that the
   57-8  prize alleged to be authorized by the ticket forged or altered is
   57-9  greater than $10,000, in which event the offense is a felony of the
  57-10  second degree.
  57-11        Sec. 466.307.  INFLUENCING SELECTION OF WINNER.  (a)  A
  57-12  person commits an offense if the person intentionally or knowingly
  57-13  influences or attempts to influence the selection of the winner of
  57-14  a lottery game.
  57-15        (b)  An offense under this section is a felony of the third
  57-16  degree unless it is shown on the trial of the offense that a prize
  57-17  in the game influenced or attempted to be influenced is greater
  57-18  than $10,000, in which event the offense is a felony of the second
  57-19  degree.
  57-20        Sec. 466.308.  CLAIMING LOTTERY PRIZE BY FRAUD.  (a)  A
  57-21  person commits an offense if the person intentionally or knowingly:
  57-22              (1)  claims a lottery prize or a share of a lottery
  57-23  prize by means of fraud, deceit, or misrepresentation; or
  57-24              (2)  aids or agrees to aid another person or persons to
  57-25  claim a lottery prize or a share of a lottery prize by means of
  57-26  fraud, deceit, or misrepresentation.
  57-27        (b)  An offense under this section is a Class A misdemeanor
   58-1  unless it is shown on the trial of the offense that:
   58-2              (1)  the amount claimed or attempted to be claimed is
   58-3  greater than $200 but not more than $10,000, in which event the
   58-4  offense is a felony of the third degree;
   58-5              (2)  the amount claimed or attempted to be claimed is
   58-6  greater than $10,000, in which event the offense is a felony of the
   58-7  second degree; or
   58-8              (3)  the person has previously been convicted of an
   58-9  offense under Section 466.306, 466.307, 466.309, 466.310, or this
  58-10  section, in which event the offense is a felony of the third
  58-11  degree, unless the offense is designated as a felony of the second
  58-12  degree under Subdivision (2).
  58-13        Sec. 466.309.  TAMPERING WITH LOTTERY EQUIPMENT.  (a)  A
  58-14  person commits an offense if the person intentionally or knowingly
  58-15  tampers with, damages, defaces, or renders inoperable any vending
  58-16  machine, electronic computer terminal, or other mechanical device
  58-17  used in a lottery game.
  58-18        (b)  An offense under this section is a felony of the third
  58-19  degree.
  58-20        Sec. 466.310.  CERTAIN TRANSFERS OF CLAIMS.  (a)  A person
  58-21  commits an offense if the person:
  58-22              (1)  induces another person to assign or transfer a
  58-23  right to claim a prize;
  58-24              (2)  offers for sale the right to claim a prize; or
  58-25              (3)  offers, for compensation, to claim the prize of
  58-26  another person.
  58-27        (b)  An offense under this section is a felony of the third
   59-1  degree, unless it is shown on the trial of the offense that the
   59-2  prize involved is greater than $10,000, in which event the offense
   59-3  is a felony of the second degree.
   59-4        Sec. 466.311.  REPORTING AND RECORD VIOLATIONS.  (a)  A
   59-5  person commits an offense if the person, in a license application,
   59-6  in a book or record required to be maintained by this chapter or a
   59-7  rule adopted under this chapter, or in a report required to be
   59-8  submitted by this chapter or a rule adopted under this chapter:
   59-9              (1)  intentionally or knowingly makes a statement or
  59-10  entry that the person knows to be false or misleading; or
  59-11              (2)  fails to maintain or make an entry the person
  59-12  knows is required to be maintained or made.
  59-13        (b)  A person commits an offense if the person knowingly
  59-14  refuses to produce for inspection by the director, comptroller, or
  59-15  state auditor a book, record, or document required to be maintained
  59-16  or made by this chapter or a rule adopted under this chapter.
  59-17        (c)  An  offense under this section is a Class A misdemeanor.
  59-18        Sec. 466.312.  FALSE, INCORRECT, OR DECEPTIVE STATEMENT.
  59-19  (a)  A person commits an offense if the person intentionally,
  59-20  knowingly, recklessly, or with criminal negligence makes a material
  59-21  and false, incorrect, or deceptive statement to a person conducting
  59-22  an investigation or exercising discretion under this chapter or a
  59-23  rule adopted under this chapter.
  59-24        (b)  In this section, "statement" includes:
  59-25              (1)  a written or oral statement; and
  59-26              (2)  a sworn or unsworn statement.
  59-27        (c)  An offense under this section is a Class A misdemeanor.
   60-1        Sec. 466.313.  Conspiracy.  (a)  A person commits an offense
   60-2  of conspiracy if, with intent that an offense under this chapter be
   60-3  committed:
   60-4              (1)  the person agrees with one or more other persons
   60-5  that they or one or more of them engage in conduct that would
   60-6  constitute the offense; and
   60-7              (2)  one or more of the persons agreeing under
   60-8  Subdivision (1) performs an overt act in pursuance of the
   60-9  agreement.
  60-10        (b)  An agreement constituting a conspiracy may be inferred
  60-11  from acts of the parties.
  60-12        (c)  It is no defense to prosecution for conspiracy under
  60-13  this section that:
  60-14              (1)  one or more of the coconspirators is not
  60-15  criminally responsible for the object offense;
  60-16              (2)  one or more of the coconspirators has been
  60-17  acquitted, so long as at least two coconspirators have not been
  60-18  acquitted;
  60-19              (3)  one or more of the coconspirators has not been
  60-20  prosecuted or convicted, has been convicted of a different offense,
  60-21  or is immune from prosecution;
  60-22              (4)  the actor belongs to a class of persons that by
  60-23  definition of the object offense is legally incapable of committing
  60-24  the object offense in an individual capacity; or
  60-25              (5)  the object offense was not actually committed.
  60-26        (d)  An offense under this section is one category lower than
  60-27  the most serious offense under this chapter that is the object of
   61-1  the conspiracy, and if the most serious offense under this chapter
   61-2  that is the object of the conspiracy is a felony of the third
   61-3  degree, the offense is a Class A misdemeanor.
   61-4        Sec. 466.314.  GIFT OR POLITICAL CONTRIBUTION TO OFFICER OR
   61-5  EMPLOYEE.  (a)  The comptroller, the state treasurer, the director,
   61-6  or an employee of the division may not knowingly accept a gift or
   61-7  political contribution from:
   61-8              (1)  a person that has a significant financial interest
   61-9  in the lottery;
  61-10              (2)  a person related in the first degree of
  61-11  consanguinity or affinity to a person that has a significant
  61-12  financial interest in the lottery;
  61-13              (3)  a person that owns more than a 10 percent interest
  61-14  in an entity that has a significant financial interest in the
  61-15  lottery;
  61-16              (4)  a political committee that is directly
  61-17  established, administered, or controlled, in whole or in part, by a
  61-18  person that has a significant financial interest in the lottery; or
  61-19              (5)  a person who, within the two years preceding the
  61-20  date of the gift or contribution, won a lottery prize exceeding
  61-21  $600 in amount or value.
  61-22        (b)  A person may not knowingly make a gift or political
  61-23  contribution to the comptroller, the state treasurer, the director,
  61-24  or an employee of the division if the person:
  61-25              (1)  has a significant financial interest in the
  61-26  lottery;
  61-27              (2)  is related in the first degree of consanguinity or
   62-1  affinity to a person that has a significant financial interest in
   62-2  the lottery;
   62-3              (3)  owns more than a 10 percent interest in an entity
   62-4  that  has a significant financial interest in the lottery;
   62-5              (4)  is a political committee that is directly
   62-6  established, administered, or controlled, in whole or in part, by a
   62-7  person that  has a significant financial interest in the lottery;
   62-8  or
   62-9              (5)  within the two years preceding the date of the
  62-10  gift or contribution, won a lottery prize exceeding $600 in amount
  62-11  or value.
  62-12        (c)  A person commits an offense if the person violates this
  62-13  section.  An offense under this section is a Class A misdemeanor.
  62-14        Sec. 466.315.  GIFT OR POLITICAL CONTRIBUTION TO FORMER
  62-15  OFFICER OR EMPLOYEE.  (a)  A former comptroller, former state
  62-16  treasurer, former director, or former employee of the division may
  62-17  not, before the second anniversary of the date that the person's
  62-18  service in office or employment with the division ceases, knowingly
  62-19  accept a gift or political contribution from:
  62-20              (1)  a person that has a significant financial interest
  62-21  in the lottery;
  62-22              (2)  a person related in the first degree of
  62-23  consanguinity or affinity to a person that has a significant
  62-24  financial interest in the lottery;
  62-25              (3)  a person that owns more than a 10 percent interest
  62-26  in an entity that has a significant financial interest in the
  62-27  lottery;
   63-1              (4)  a political committee that is directly
   63-2  established, administered, or controlled, in whole or in part, by a
   63-3  person that has a significant financial interest in the lottery; or
   63-4              (5)  a person who, within the two years preceding the
   63-5  date of the gift or contribution, won a lottery prize exceeding
   63-6  $600 in amount or value.
   63-7        (b)  A person may not knowingly make a gift or political
   63-8  contribution to a former comptroller, former state treasurer,
   63-9  former director, or former employee of the division before the
  63-10  second anniversary of the date that the person's service in office
  63-11  or employment with the division ceases, if the person:
  63-12              (1)  has a significant financial interest in the
  63-13  lottery;
  63-14              (2)  is related in the first degree of consanguinity or
  63-15  affinity to a person that has a significant financial interest in
  63-16  the lottery;
  63-17              (3)  owns more than a 10 percent interest in an entity
  63-18  that  has a significant financial interest in the lottery;
  63-19              (4)  is a political committee that is directly
  63-20  established, administered, or controlled, in whole or in part, by a
  63-21  person that  has a significant financial interest in the lottery;
  63-22  or
  63-23              (5)  within the two years preceding the date of the
  63-24  gift or contribution, won a lottery prize exceeding $600 in amount
  63-25  or value.
  63-26        (c)  This section does not apply to a former comptroller or
  63-27  former state treasurer who left office on or before August 10,
   64-1  1991.  This section does not apply to a person who makes a gift or
   64-2  political contribution to a former comptroller or former state
   64-3  treasurer if the former comptroller or former state treasurer left
   64-4  office on or before August 10, 1991.
   64-5        (d)  A person commits an offense if the person violates this
   64-6  section.  An offense under this section is a Class A misdemeanor.
   64-7        Sec. 466.316.  REPRESENTATION BY FORMER OFFICER OR EMPLOYEE.
   64-8  (a)  A former comptroller, former state treasurer, or former
   64-9  director may not:
  64-10              (1)  for compensation, represent a person that has made
  64-11  or intends to make a bid to operate the lottery before the
  64-12  comptroller before the second anniversary of the date that the
  64-13  person's service in office or employment with the division ceases;
  64-14              (2)  represent any person or receive compensation for
  64-15  services rendered on behalf of any person regarding a particular
  64-16  matter in which the former officer or employee participated during
  64-17  the period of service or employment with the division, either
  64-18  through personal involvement or because the matter was within the
  64-19  scope of the officer's or employee's official responsibility; or
  64-20              (3)  for compensation, communicate directly with a
  64-21  member of the legislative branch to influence legislation on behalf
  64-22  of a person that has a significant financial interest in the
  64-23  lottery, before the second anniversary of the date that the
  64-24  person's service in office or employment with the division ceases.
  64-25        (b)  This section does not apply to a former comptroller or
  64-26  former state treasurer who left office on or before August 10,
  64-27  1991.
   65-1        (c)  A person commits an offense if the person violates this
   65-2  section.  An offense under this section is a Class A misdemeanor.
   65-3           (Sections 466.317-466.350 reserved for expansion
   65-4                        SUBCHAPTER H.  REVENUE
   65-5        Sec. 466.351.  Delivery of Funds.  (a)  Except as provided by
   65-6  Subsection (d), all revenue received from the sale of tickets and
   65-7  all money credited to the state lottery account from any other
   65-8  source shall be deposited in the state treasury through approved
   65-9  state depositories on the settlement day or days established by the
  65-10  director.
  65-11        (b)  The director may require sales agents to establish
  65-12  separate electronic funds transfer accounts for the purposes of
  65-13  depositing money from ticket sales, making payments to the
  65-14  division, and receiving payments from the division.  The
  65-15  comptroller by rule shall establish the procedures for depositing
  65-16  money from ticket sales into electronic funds transfer accounts, as
  65-17  well as other procedures regarding the handling of money from
  65-18  ticket sales.
  65-19        (c)  The director may not permit a sales agent to make
  65-20  payments to the division or a lottery operator in cash.
  65-21        (d)  The director may provide for a sales agent to retain
  65-22  from the money received from the sale of tickets the amount of
  65-23  prizes paid by the agent or the agent's commission, if any, and may
  65-24  establish how often the agent will make settlement payments to the
  65-25  treasury.
  65-26        (e)  The director may provide for a sales agent to pay
  65-27  amounts received for the sale of tickets directly to an officer or
   66-1  employee of the division for immediate deposit in the state
   66-2  treasury.
   66-3        Sec. 466.352.  REPORTING BY SALES AGENT; RECORDS.  (a)  The
   66-4  director may require a sales agent to file with the division
   66-5  reports of receipts and transactions relating to the sale of
   66-6  tickets in the form and containing the information that the
   66-7  director requires.
   66-8        (b)  Each sales agent shall maintain records adequate to
   66-9  establish the disposition of each ticket provided to the sales
  66-10  agent, the amounts of money received for the sale of those tickets,
  66-11  and any prizes awarded by the sales agent.
  66-12        Sec. 466.353.  LIABILITY OF SALES AGENT.  (a)  A sales agent
  66-13  is liable to the division for all tickets accepted or generated by
  66-14  the sales agent or any employee or agent of the sales agent, and
  66-15  tickets shall be deemed to have been purchased by the sales agent
  66-16  unless returned to the division within the time and manner
  66-17  prescribed by the division.
  66-18        (b)  Money received by a sales agent from the sales of
  66-19  tickets, less the amount retained for prizes paid by the sales
  66-20  agent or for the agent's commission, if any, together with any
  66-21  unsold tickets, shall be held in trust for the benefit of the state
  66-22  before delivery to a lottery operator or the division or electronic
  66-23  transfer to the state treasury, and the sales agent is liable to
  66-24  the division for the full amount of the money or unsold tickets so
  66-25  held.  If the sales agent is not an individual, each officer,
  66-26  director, or owner of the sales agent is personally liable to the
  66-27  division for the full amount of the money or unsold tickets held in
   67-1  trust for the benefit of the state.
   67-2        Sec. 466.354.  DUTIES OF STATE TREASURER.  (a)  The state
   67-3  treasurer, in consultation with the director, shall establish
   67-4  procedures for the efficient implementation and operation of an
   67-5  electronic funds transfer system to meet the needs of the director
   67-6  under this chapter.
   67-7        (b)  The state treasurer periodically shall file reports with
   67-8  the director providing information regarding the revenue credited
   67-9  to the state lottery account, the investments of the money in the
  67-10  account, and the distributions made from the account.
  67-11        Sec. 466.355.  STATE LOTTERY ACCOUNT.  (a)  The state lottery
  67-12  account is a special account in the general revenue fund.  The
  67-13  account consists of all revenue received from the sale of tickets,
  67-14  license and application fees under this chapter, and all money
  67-15  credited to the account from any other fund or source under law.
  67-16  Interest earned by the state lottery account shall be deposited in
  67-17  the unobligated portion of the general revenue fund.
  67-18        (b)  Money in the state lottery account may be used only for
  67-19  the following purposes and shall be distributed as follows:
  67-20              (1)  the payment of prizes to the holders of winning
  67-21  tickets;
  67-22              (2)  the payment of costs incurred in the operation and
  67-23  administration of the lottery, including any fees received by a
  67-24  lottery operator, provided that the costs incurred in a fiscal
  67-25  biennium may not exceed an amount equal to 15 percent of the gross
  67-26  revenue accruing from the sale of tickets in that biennium;
  67-27              (3)  the transfer of amounts to the state lottery
   68-1  stabilization fund as provided by Section 466.356; and
   68-2              (4)  the balance, after creation of a reserve
   68-3  sufficient to pay the amounts provided by Subdivisions (1) and (2),
   68-4  to be transferred to the unobligated portion of the general revenue
   68-5  fund, on or before the 15th day of each month.
   68-6        (c)  Notwithstanding Subsection (b)(2), before September 1,
   68-7  1993, the costs incurred in the operation and administration of the
   68-8  lottery in the fiscal biennium beginning September 1, 1991, may be
   68-9  more than 15 percent but not more than 20 percent of the gross
  68-10  revenue from the sale of tickets in that biennium.  This subsection
  68-11  expires January 1, 1994.
  68-12        Sec. 466.356.  STATE LOTTERY STABILIZATION FUND.  (a)  The
  68-13  state lottery stabilization fund is a special fund in the state
  68-14  treasury.  The fund consists of revenue credited to the fund from
  68-15  the state lottery account as provided by Subsection (b).  Interest
  68-16  earned by the state lottery stabilization fund shall be deposited
  68-17  in the unobligated portion of the general revenue fund.
  68-18        (b)  For each month in which the monthly estimate of net
  68-19  lottery revenue exceeds $10 million and the net lottery revenue
  68-20  equals or exceeds the monthly estimate of net lottery revenue, the
  68-21  comptroller shall transfer $10 million plus the amount by which the
  68-22  net lottery revenue exceeds the monthly estimate of net lottery
  68-23  revenue from the state lottery account to the state lottery
  68-24  stabilization fund.
  68-25        (c)  Money in the state lottery stabilization fund shall be
  68-26  distributed only as follows:
  68-27              (1)  if in any month the net lottery revenue is less
   69-1  than 90 percent of the monthly estimate of net lottery revenue, an
   69-2  amount equal to the difference between the monthly estimate of net
   69-3  lottery revenue and the net lottery revenue shall be transferred to
   69-4  the unobligated portion of the general revenue fund; and
   69-5              (2)  on the first day of each fiscal biennium, one-half
   69-6  of the balance in the state lottery stabilization fund shall be
   69-7  transferred to the unobligated portion of the general revenue fund.
   69-8        (d)  In this section:
   69-9              (1)  "Annual estimate of net lottery revenue" means the
  69-10  estimated amount of net lottery revenue for a fiscal year, as
  69-11  determined by the comptroller for purposes of the biennial revenue
  69-12  estimate required by Article III, Section 49a, of the Texas
  69-13  Constitution.
  69-14              (2)  "Gross lottery revenue" means the sum of:
  69-15                    (A)  the gross revenue from the sale of tickets;
  69-16  and
  69-17                    (B)  license and application fees collected under
  69-18  this chapter.
  69-19              (3)  "Monthly estimate of net lottery revenue" means an
  69-20  amount equal to one-twelfth the annual estimate of net lottery
  69-21  revenue for the fiscal year that includes the month for which the
  69-22  monthly estimate is made.
  69-23              (4)  "Net lottery revenue" means the gross lottery
  69-24  revenue minus the amounts distributed or obligated for a purpose
  69-25  described by Sections 466.355(b)(1) and (b)(2).
  69-26        (e)  Notwithstanding Subsection (b) and Section
  69-27  466.355(b)(4), the initial transfer of revenue from the state
   70-1  lottery account to the unobligated portion of the general revenue
   70-2  fund and the state lottery stabilization fund under those
   70-3  subsections shall be made on the 15th day of the month following
   70-4  the month in which the earlier of the following occurs:
   70-5              (1)  the first ticket is sold to a player under this
   70-6  chapter; or
   70-7              (2)  the director receives liquidated damages or a
   70-8  payment under a performance bond under a contract with a lottery
   70-9  operator.
  70-10        (f)  Notwithstanding Subsection (b), the first transfer from
  70-11  the state lottery account to the state lottery stabilization fund
  70-12  may not be made before September 1, 1993.  Notwithstanding
  70-13  Subsection (c)(1), the first transfer from the state lottery
  70-14  stabilization fund to the unobligated portion of the general
  70-15  revenue fund may not be made before December 1, 1993.
  70-16        (g)  Notwithstanding Subsection (d), the monthly estimate of
  70-17  net lottery revenue for the month following the month in which the
  70-18  first ticket is sold to a player and for each of the subsequent
  70-19  months in that fiscal year is the amount of estimated net lottery
  70-20  revenue for that fiscal year included in the comptroller's revenue
  70-21  estimate under Article III, Section 49a, of the Texas Constitution
  70-22  for the biennium ending August 31, 1993, divided by the number of
  70-23  whole months remaining in the fiscal year after the month in which
  70-24  the first ticket is sold to a player.  If the comptroller's revenue
  70-25  estimate for the fiscal biennium ending August 31, 1993, does not
  70-26  include revenue from a state-operated lottery, all net lottery
  70-27  revenue for that biennium shall be credited to the state lottery
   71-1  stabilization fund.
   71-2        (h)  Subsections (e) through (g) and this subsection expire
   71-3  January 1, 1994.
   71-4        Sec. 466.357.  APPLICABILITY OF CONSTITUTIONAL PROVISIONS.
   71-5  For purposes of Article III, Section 49a, and Article VIII, Section
   71-6  22, of the Texas Constitution:
   71-7              (1)  funds received from the operation of a lottery are
   71-8  not revenue; and
   71-9              (2)  expenses of operating the lottery and paying
  71-10  prizes are not expenses of state government.
  71-11        Sec. 466.358.  COMPENSATION OF SALES AGENT.  (a)  The
  71-12  director and each lottery operator shall determine the compensation
  71-13  to be paid to sales agents for the sale of tickets as provided by
  71-14  this section.  The compensation paid to a sales agent may not be an
  71-15  amount less than five percent of the retail price of the tickets
  71-16  sold plus, at the discretion of the director or lottery operator
  71-17  supervising the lottery game involved, an incentive bonus based on
  71-18  attainment of sales volume, the redemption of winning tickets, or
  71-19  other objectives specified by the director or lottery operator for
  71-20  each type of lottery.
  71-21        (b)  The division or a lottery operator may run sales agent
  71-22  incentive games for sales agents using the incentive bonus amount
  71-23  or other amounts allocated by the director as compensation for
  71-24  sales agents.
  71-25        Sec. 466.359.  COMPENSATION OF SALES AGENT FOR PURPOSES OF
  71-26  CONTRACTUAL RENTAL PAYMENT.  If a sales agent's rental payments for
  71-27  premises are contractually computed in whole or in part on the
   72-1  basis of a percentage of the lessee's retail sales and if the
   72-2  computation of the lessee's rental payment is not explicitly
   72-3  defined to include sales of tickets in a state-operated lottery,
   72-4  the compensation received by the sales agent from the lottery is
   72-5  considered to be the net amount of the lessee's retail sales of
   72-6  tickets for the purpose of computing the rental payment.
   72-7           (Sections 466.360-466.400 reserved for expansion
   72-8                         SUBCHAPTER I.  PRIZES
   72-9        Sec. 466.401.  TICKET VALIDATION; DRAWINGS.  (a)  The
  72-10  department of security shall supervise ticket validation and
  72-11  lottery drawings.
  72-12        (b)  If a lottery game involves a drawing, the drawing must
  72-13  be open to the public.  An independent certified public accountant
  72-14  must witness the drawing.
  72-15        (c)  An employee of the division and the independent
  72-16  certified public accountant witnessing the drawing shall inspect
  72-17  any equipment used in the drawing.  The equipment must be inspected
  72-18  immediately before and after the drawing.  The drawing and
  72-19  inspections must be recorded on video and audio tape.
  72-20        Sec. 466.402.  PAYMENT OF PRIZES GENERALLY.  (a)  The
  72-21  director may authorize prizes to be paid by warrants to be drawn on
  72-22  the state lottery account.
  72-23        (b)  The payment of a prize in an amount of $600 or more may
  72-24  be made only by the director.
  72-25        (c)  The director may authorize a sales agent to pay a prize
  72-26  in an amount less than $600 after performing procedures to validate
  72-27  the winning ticket as required by the director.  A prize paid under
   73-1  this subsection is not required to be paid by warrant on the state
   73-2  lottery account.
   73-3        (d)  The state is discharged of all further liability on the
   73-4  payment of a prize under Section 466.403, 466.404, 466.406, or
   73-5  466.407 or this section or under any additional procedures
   73-6  established by rule.
   73-7        Sec. 466.403.  PAYMENT OF PRIZE IN INSTALLMENTS.  If the
   73-8  director determines that prize money is to be paid in installments,
   73-9  the state treasurer shall invest funds from the state lottery
  73-10  account as necessary to ensure the payment of the installments.
  73-11  The investments may be in securities, annuities, or other
  73-12  instruments as determined by the treasurer.
  73-13        Sec. 466.404.  PAYMENT OF PRIZE TO MULTIPLE WINNERS.  (a)  A
  73-14  specific prize as set forth by the prize structure of a specific
  73-15  lottery game may not be paid more than once.  If the director
  73-16  determines that more than one claimant has been awarded a specific
  73-17  unpaid prize in a specific lottery game, each claimant is entitled
  73-18  only to an equal share of the prize.
  73-19        (b)  The director shall pay the cash equivalent of a prize
  73-20  other than prize money if more than one person is entitled to share
  73-21  the prize as provided by Subsection (a).
  73-22        Sec. 466.405.  PAYMENT OF PRIZE AWARDED TO MINOR.  (a)  If a
  73-23  minor is entitled to  prize money on a winning ticket in an amount
  73-24  less than $600, the director may make payment by delivery to an
  73-25  adult member of the minor's family, or to the minor's guardian, of
  73-26  a warrant payable to the order of the minor.
  73-27        (b)  If a minor is entitled to  prize money on a winning
   74-1  ticket in an amount of $600 or more, the director may direct
   74-2  payment to the minor by depositing the amount of the prize in any
   74-3  bank to the credit of an adult member of the minor's family or of
   74-4  the minor's guardian as custodian for the minor.
   74-5        (c)  The director shall pay the cash equivalent of a prize
   74-6  other than prize money if the person entitled to claim the prize is
   74-7  a minor.  Payment of the cash equivalent of a prize other than
   74-8  prize money to a minor shall be made as provided by Subsections (a)
   74-9  and (b).
  74-10        (d)  A person designated to receive payment on behalf of a
  74-11  minor has the powers and duties of a custodian under Chapter 141,
  74-12  Property Code.
  74-13        (e)  In this section, "adult," "bank," "custodian,"
  74-14  "guardian," "member of a minor's family," and "minor" have the
  74-15  meanings assigned by Section 141.002, Property Code.
  74-16        Sec. 466.406.  RIGHT TO PRIZE NOT ASSIGNABLE.  (a)  Except as
  74-17  otherwise provided by this section, the right of any person to a
  74-18  prize is not assignable.
  74-19        (b)  Payment of a prize may be made to the estate of a
  74-20  deceased prizewinner.
  74-21        (c)  A prize to which a winner is otherwise entitled may be
  74-22  paid to any person under an appropriate judicial order.
  74-23        Sec. 466.407.  DEDUCTIONS FROM PRIZES.  (a)  The director
  74-24  shall deduct the amount of a delinquent tax or other money from the
  74-25  winnings of a person who has been finally determined to be:
  74-26              (1)  delinquent in the payment of a tax or other money
  74-27  collected by the comptroller, the state treasurer, or the Texas
   75-1  Alcoholic Beverage Commission;
   75-2              (2)  delinquent in making child support payments
   75-3  administered or collected by the attorney general; or
   75-4              (3)  in default on a loan guaranteed under Chapter 57,
   75-5  Education Code.
   75-6        (b)  If a person's winnings exceed a delinquency under
   75-7  Subsection (a), the director shall pay the balance to the person.
   75-8  The director shall transfer the amount deducted to the appropriate
   75-9  agency.
  75-10        (c)  The attorney general, state treasurer, Texas Alcoholic
  75-11  Beverage Commission, and Texas Guaranteed Student Loan Corporation
  75-12  shall each provide the director with a report of persons who have
  75-13  been finally determined to be delinquent in the payment of a tax or
  75-14  other money collected by the agency.  The comptroller shall adopt
  75-15  rules regarding the form and frequency of reports under this
  75-16  subsection.
  75-17        Sec. 466.408.  UNCLAIMED PRIZES.  (a)  The division shall
  75-18  retain an unclaimed prize on a winning ticket for payment or
  75-19  delivery to the person entitled to the prize for 180 days after the
  75-20  date on which the winner was selected.
  75-21        (b)  If a claim is not made for prize money on or before the
  75-22  180th day after the date on which the winner was selected, the
  75-23  prize money shall be used to provide additional money to the state
  75-24  lottery account for the purposes prescribed by Section
  75-25  466.355(b)(1).
  75-26        (c)  If a claim is not made for a prize other than prize
  75-27  money on or before the 180th day after the date on which the winner
   76-1  was selected, the prize shall revert to the division for use in
   76-2  subsequent games.
   76-3        (d)  A ticket holder forfeits any claim or entitlement to a
   76-4  prize after the expiration of the 180th day after the date on which
   76-5  the prizewinner was selected.
   76-6        (c)  Section 2, Chapter 6, Acts of the 72nd Legislature, 1st
   76-7  Called Session, 1991 (Article 179g, Vernon's Texas Civil Statutes),
   76-8  is repealed.
   76-9        SECTION 4.04.  Section 47.02(c), Penal Code, is amended to
  76-10  correct a reference to read as follows:
  76-11        (c)  It is a defense to prosecution under this section that
  76-12  the actor reasonably believed that the conduct:
  76-13              (1)  was permitted under the Bingo Enabling Act
  76-14  (Article 179d, Vernon's Texas Civil Statutes);
  76-15              (2)  was permitted under the Charitable Raffle Enabling
  76-16  Act (Article 179f, Revised Statutes); or
  76-17              (3)  consisted entirely of participation in the state
  76-18  lottery authorized by Chapter 466, Government Code <the State
  76-19  Lottery Act>.
  76-20        SECTION 4.05.  Section 47.06(g), Penal Code, is amended to
  76-21  correct a reference to read as follows:
  76-22        (g)  It is a defense to prosecution for an offense under this
  76-23  chapter that the conduct was authorized, directly or indirectly, by
  76-24  Chapter 466, Government Code <the State Lottery Act>, the lottery
  76-25  division in the office of the comptroller, the comptroller, or the
  76-26  director of the lottery division.
  76-27        SECTION 4.06.  Section 47.14, Penal Code, is amended to
   77-1  correct a reference to read as follows:
   77-2        Sec. 47.14.  STATE LOTTERY.  It is a defense to prosecution
   77-3  for an offense under this chapter that the conduct:
   77-4              (1)  consisted entirely of participation in the state
   77-5  lottery authorized by Chapter 466, Government Code <the State
   77-6  Lottery Act>; or
   77-7              (2)  was a necessary incident to the operation of the
   77-8  state lottery and was authorized, directly or indirectly, by
   77-9  Chapter 466, Government Code <the State Lottery Act>, the lottery
  77-10  division in the office of the comptroller, the comptroller, or the
  77-11  director of the lottery division.
  77-12        SECTION 4.07.  Article 2.12, Code of Criminal Procedure, is
  77-13  amended to correct references to read as follows:
  77-14        Art. 2.12.  Who Are Peace Officers.  The following are peace
  77-15  officers:
  77-16              (1)  sheriffs and their deputies;
  77-17              (2)  constables and deputy constables;
  77-18              (3)  marshals or police officers of an incorporated
  77-19  city, town, or village;
  77-20              (4)  rangers and officers commissioned by the Public
  77-21  Safety Commission and the Director of the Department of Public
  77-22  Safety;
  77-23              (5)  investigators of the district attorneys', criminal
  77-24  district attorneys', and county attorneys' offices;
  77-25              (6)  law enforcement agents of the Texas Alcoholic
  77-26  Beverage Commission;
  77-27              (7)  each member of an arson investigating unit
   78-1  commissioned by a city, a county, or the state;
   78-2              (8)  officers commissioned under Subchapter E, Chapter
   78-3  51, Education Code;
   78-4              (9)  officers commissioned by the <State Purchasing
   78-5  and> General Services Commission;
   78-6              (10)  law enforcement officers commissioned by the
   78-7  Parks and Wildlife Commission;
   78-8              (11)  airport police officers commissioned by a city
   78-9  with a population of more than one million, according to the most
  78-10  recent federal census, that operates an airport that serves
  78-11  commercial air carriers;
  78-12              (12)  airport security personnel commissioned as peace
  78-13  officers by the governing body of any political subdivision of this
  78-14  state, other than a city described by Subdivision (11), that
  78-15  operates an airport that serves commercial air carriers;
  78-16              (13)  municipal park and recreational patrolmen and
  78-17  security officers;
  78-18              (14)  security officers commissioned as peace officers
  78-19  by the State Treasurer;
  78-20              (15)  officers commissioned by a water control and
  78-21  improvement district under Section 51.132, Water Code;
  78-22              (16)  officers commissioned by a board of trustees
  78-23  under Chapter 341, Acts of the 57th Legislature, Regular Session,
  78-24  1961 (Article 1187f, Vernon's Texas Civil Statutes);
  78-25              (17)  investigators commissioned by the Texas State
  78-26  Board of Medical Examiners;
  78-27              (18)  officers commissioned by the board of managers of
   79-1  the Dallas County Hospital District, the Tarrant County Hospital
   79-2  District, or the Bexar County Hospital District under Section
   79-3  281.057, Health and Safety Code;
   79-4              (19)  county park rangers commissioned under Subchapter
   79-5  E, Chapter 351, Local Government Code;
   79-6              (20)  investigators employed by the Texas Racing
   79-7  Commission;
   79-8              (21)  officers commissioned by the State Board of
   79-9  Pharmacy;
  79-10              (22)  officers commissioned by the governing body of a
  79-11  metropolitan rapid transit authority under Section 13, Chapter 141,
  79-12  Acts of the 63rd Legislature, Regular Session, 1973 (Article 1118x,
  79-13  Vernon's Texas Civil Statutes), or by a regional transportation
  79-14  authority under Section 10, Chapter 683, Acts of the 66th
  79-15  Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
  79-16  Civil Statutes);
  79-17              (23)  officers commissioned by the Texas High-Speed
  79-18  Rail Authority;
  79-19              (24)  investigators commissioned by the attorney
  79-20  general under Section 402.009, Government Code; and
  79-21              (25)  security officers and investigators commissioned
  79-22  as peace officers under Chapter 466, Government Code <the State
  79-23  Lottery Act>.
  79-24        SECTION 4.08.  Section 111.0047(a), Tax Code, is amended to
  79-25  correct references to read as follows:
  79-26        (a)  If a person fails to comply with any provision of this
  79-27  title, with any provision of Chapter 466, Government Code <the
   80-1  State Lottery Act>, or with a rule of the comptroller adopted under
   80-2  this title or Chapter 466, Government Code <the State Lottery Act>,
   80-3  the comptroller, after a hearing, may revoke or suspend any permit
   80-4  or license issued to the person.
   80-5        SECTION 4.09.  Section 111.0048(a), Tax Code, is amended to
   80-6  correct references to read as follows:
   80-7        (a)  A new permit or license may not be issued to a former
   80-8  holder of a revoked permit or license unless the comptroller is
   80-9  satisfied that the person will comply with the provisions of this
  80-10  title and Chapter 466, Government Code <the State Lottery Act> and
  80-11  the rules of the comptroller relating to this title and Chapter
  80-12  466, Government Code <the State Lottery Act>.
  80-13        SECTION 4.10.  Section 499.025(b), Government Code, as
  80-14  amended by Chapters 16 and 655, Acts of the 72nd Legislature,
  80-15  Regular Session, 1991, and Chapter 10, Acts of the 72nd
  80-16  Legislature, 2nd Called Session, 1991, is reenacted to read as
  80-17  follows:
  80-18        (b)  If the inmate population of the institutional division
  80-19  reaches 95 percent of capacity or, if the attorney general has
  80-20  authorized an increase in the permissible percentage of capacity
  80-21  under Section 499.109, the inmate population reaches that increased
  80-22  permissible percentage, the director shall immediately notify the
  80-23  executive director, the board, and the attorney general in writing
  80-24  of that fact.  The attorney general shall certify to the board in
  80-25  writing as to whether the institutional division has reached 95
  80-26  percent of capacity or, if applicable, the increased permissible
  80-27  percentage.  If the attorney general certifies that 95 percent of
   81-1  capacity has been reached or, if applicable, that the increased
   81-2  permissible percentage has been reached, the board shall
   81-3  immediately certify that an emergency overcrowding situation exists
   81-4  and direct the Board of Pardons and Paroles to proceed in the
   81-5  manner described by Subsection (c).  If the Commission on Jail
   81-6  Standards determines that in any county jail in this state there
   81-7  exists an inmate awaiting transfer to the institutional division
   81-8  following conviction of a felony or revocation of probation,
   81-9  parole, or release on mandatory supervision and for whom all
  81-10  paperwork and processing required for transfer have been completed
  81-11  for not less than 45 days, the board may direct the Board of
  81-12  Pardons and Paroles to proceed in the manner described by
  81-13  Subsection (c).
  81-14        SECTION 4.11.  (a)  Section 771.002(3), Government Code, is
  81-15  amended to conform to Section 29, Chapter 641, Acts of the 72nd
  81-16  Legislature, Regular Session, 1991, to read as follows:
  81-17              (3)  "Resources" means materials and<,> equipment<, and
  81-18  supplies>.
  81-19        (b)  Sections 771.003, 771.004, 771.006, 771.007, and
  81-20  771.008, Government Code, are amended to conform to Sections 29 and
  81-21  30, Chapter 641, Acts of the 72nd Legislature, Regular Session,
  81-22  1991, to read as follows:
  81-23        Sec. 771.003.  AUTHORITY TO CONTRACT; EXCEPTIONS.  (a)  A
  81-24  state agency may agree or contract with another state agency for
  81-25  the provision <furnishing> of necessary and authorized services and
  81-26  resources.
  81-27        (b)  A state agency may not construct a highway, road,
   82-1  building, or other structure for another agency under this chapter,
   82-2  except that the State Department of Highways and Public
   82-3  Transportation may enter into an interagency agreement with a state
   82-4  college, university, or public junior college <providing> for the
   82-5  maintenance, improvement, relocation, or extension of existing
   82-6  on-campus streets, parking lots, and access-ways.
   82-7        (c)  A state agency may not provide <supply> services or
   82-8  resources to another agency that are required by Article XVI,
   82-9  Section 21, of the Texas Constitution to be provided <supplied>
  82-10  under a contract awarded <given> to the lowest responsible bidder.
  82-11        Sec. 771.004.  CONTRACT REQUIREMENTS; EXCEPTIONS.  (a)
  82-12  Before a state agency may provide <furnish> or receive a service or
  82-13  resource under this chapter, the agency must have entered into a
  82-14  written agreement or contract that has been approved by the
  82-15  administrator of each agency that is a party to the agreement or
  82-16  contract and by the commission.
  82-17        (b)  The agreement or contract must specify:
  82-18              (1)  the kind and amount of services or resources to be
  82-19  provided <furnished>;
  82-20              (2)  the basis for computing reimbursable costs; and
  82-21              (3)  the maximum cost during the period of the
  82-22  agreement or contract.
  82-23        (c)  A written agreement or contract and advance approval by
  82-24  the commission are not required:
  82-25              (1)  in an emergency for the defense or safety of the
  82-26  civil population or in the planning and preparation for those
  82-27  emergencies;
   83-1              (2)  in cooperative efforts, proposed by the governor,
   83-2  for the economic development of the state; or
   83-3              (3)  in a situation in which the amount involved is
   83-4  less than $2,500.
   83-5        Sec. 771.006.  <EQUIPMENT> PURCHASES AND SUBCONTRACTS OF
   83-6  SERVICES AND RESOURCES.  A contract under this chapter may
   83-7  authorize an <permit a furnishing> agency providing services and
   83-8  resources to subcontract and purchase the services and resources
   83-9  <equipment> to the extent considered appropriate by the commission.
  83-10        Sec. 771.007.  REIMBURSEMENT AND ADVANCEMENT OF COSTS.  (a)
  83-11  A state agency that receives services or resources under this
  83-12  chapter shall reimburse each state agency providing <supplying> the
  83-13  services or resources the actual cost of providing <furnishing> the
  83-14  services or resources, or the nearest practicable estimate of that
  83-15  cost.  Reimbursement is not required if<, unless> the services or
  83-16  resources are provided <furnished>:
  83-17              (1)  for national defense or disaster relief; or
  83-18              (2)  in cooperative efforts, proposed by the governor,
  83-19  to promote the economic development of the state.
  83-20        (b)  A state agency that receives services or resources under
  83-21  this chapter may advance federal funds to a state agency providing
  83-22  <supplying> the services or resources if the agency receiving the
  83-23  services or resources determines that the advance would facilitate
  83-24  the implementation of a federally funded program.
  83-25        (c)  A state agency that receives services or resources under
  83-26  this chapter may advance funds to the state agency providing the
  83-27  services or resources if an advance is necessary to enable the
   84-1  providing agency to provide the services or resources.  If an
   84-2  advance is made under this section, the agencies shall ensure after
   84-3  the services or resources are provided that the providing agency
   84-4  has received only sufficient funds to reimburse its total costs.
   84-5  An advance of funds is a reimbursement for the purpose of Section
   84-6  771.008.
   84-7        Sec. 771.008.  REIMBURSEMENT <PAYMENT> PROCEDURES.  (a)  An
   84-8  agency shall reimburse an agency <pay> for the services or
   84-9  resources provided <received under this chapter> with a voucher
  84-10  payable to the providing <furnishing> agency or electronically as
  84-11  prescribed by the uniform statewide accounting system.  The voucher
  84-12  or electronic transfer must be drawn on the appropriation item or
  84-13  account of the receiving agency from which the agency would
  84-14  ordinarily make expenditures for similar services or resources. A
  84-15  receiving agency may authorize a providing agency to gain access to
  84-16  the receiving agency's appropriation items or accounts for
  84-17  reimbursements under this chapter.
  84-18        (b)  A reimbursement <payment> received by an agency for
  84-19  services or resources provided <furnished> under this chapter shall
  84-20  be credited to the appropriation items or accounts from which the
  84-21  agency's expenditures for the <furnished> services or resources
  84-22  were made.
  84-23        (c)  A payment for an intraagency transaction is accounted
  84-24  for in the same manner as an interagency transaction or an
  84-25  interdivisional transfer of money on the records of the agency,
  84-26  subject to the applicable provisions of the General Appropriations
  84-27  Act.
   85-1        (d)  The commission shall audit a reimbursement under this
   85-2  chapter for compliance with the contract after the reimbursement
   85-3  has been completed.  If the commission determines that an
   85-4  unauthorized reimbursement has occurred, the commission shall
   85-5  notify the comptroller.  On receipt of the notification, the
   85-6  comptroller shall return the reimbursement to the receiving
   85-7  agency's appropriation items or accounts.  To the extent
   85-8  practicable, the comptroller must return a reimbursement to the
   85-9  item or account from which the reimbursement was made.
  85-10        (c)  Sections 29 and 30, Chapter 641, Acts of the 72nd
  85-11  Legislature, Regular Session, 1991, are repealed.
  85-12        SECTION 4.12.  (a)  Title 7, Government Code, is amended to
  85-13  codify Chapter 427, Acts of the 72nd Legislature, Regular Session,
  85-14  1991 (Article 5190.13, Vernon's Texas Civil Statutes), by adding
  85-15  Chapter 764 to read as follows:
  85-16              CHAPTER 764.  TRI-STATE CORRIDOR COMMISSION
  85-17        Sec. 764.001.  TRI-STATE CORRIDOR COMMISSION MEMBERSHIP.  (a)
  85-18  The Tri-State Corridor Commission consists of 12 members.
  85-19        (b)  The political subdivisions in the area the commission
  85-20  serves shall jointly appoint nine voting members to the commission.
  85-21  The state highway departments of Texas, Arkansas, and Louisiana
  85-22  shall each appoint one nonvoting member to the commission.
  85-23        (c)  Members of the commission serve without compensation.
  85-24        Sec. 764.002.  POWERS AND DUTIES.  (a)  The commission shall
  85-25  make recommendations to the municipal, county, and state
  85-26  governments on the promotion of the economic, industrial, tourist,
  85-27  and highway development of the following area:
   86-1              (1)  Marion, Cass, and Bowie counties in Texas;
   86-2              (2)  Miller and Little River counties in Arkansas; and
   86-3              (3)  Caddo Parish in Louisiana.
   86-4        (b)  The commission may accept gifts or grants from any
   86-5  source to pay operating expenses of the commission.
   86-6        (c)  The commission has all powers necessary and may adopt
   86-7  rules to carry out the purposes of this chapter.
   86-8        Sec. 764.003.  APPLICABLE LAW.  The commission is subject to
   86-9  the law of Texas, Arkansas, Louisiana, and the United States
  86-10  relating to open meetings and public records.
  86-11        Sec. 764.004.  APPROPRIATIONS.  The legislature may not
  86-12  appropriate money to the commission.
  86-13        (b)  Chapter 427, Acts of the 72nd Legislature, Regular
  86-14  Session, 1991 (Article 5190.13, Vernon's Texas Civil Statutes), is
  86-15  repealed.
  86-16        SECTION 4.13.  (a)  Chapter 772, Government Code, is amended
  86-17  to codify Chapter 429, Acts of the 61st Legislature, Regular
  86-18  Session, 1969 (Article 1269l-2.1, Vernon's Texas Civil Statutes),
  86-19  by adding Section 772.008 to read as follows:
  86-20        Sec. 772.008.  PLANNING ASSISTANCE FOR POLITICAL
  86-21  SUBDIVISIONS.  (a)  The governor may, on request of the governing
  86-22  body of a political subdivision or the authorized agency of a group
  86-23  of political subdivisions:
  86-24              (1)  arrange planning assistance, including surveys,
  86-25  community renewal plans, technical services, and other planning;
  86-26  and
  86-27              (2)  arrange for a study or report on a planning
   87-1  problem submitted to the governor.
   87-2        (b)  The governor and the governing body may agree on the
   87-3  amount, if any, to be paid to the governor's office for planning
   87-4  services.
   87-5        (c)  The governor may apply for and accept grants from, and
   87-6  contract with, the federal government or other sources for any
   87-7  planning assistance, study, or report under this section.
   87-8        (d)  The governor may use the regular functions of the office
   87-9  of the governor or another state agency in providing planning
  87-10  assistance under this section.
  87-11        (e)  The governor may exercise powers under this section
  87-12  through a designated representative.
  87-13        (b)  Chapter 429, Acts of the 61st Legislature, Regular
  87-14  Session, 1969 (Article 1269l-2.1, Vernon's Texas Civil Statutes),
  87-15  is repealed.
  87-16        ARTICLE 5.  CHANGES RELATING TO HEALTH AND SAFETY CODE
  87-17        SECTION 5.01.  (a)  Sections 106.001, 106.002, and 106.009,
  87-18  Health and Safety Code, are designated as SUBCHAPTER A.  GENERAL
  87-19  PROVISIONS.
  87-20        (b)  Sections 106.003-106.008, Health and Safety Code, are
  87-21  designated as SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS, and are
  87-22  redesignated as Sections 106.021-106.026.
  87-23        (c)  Section 106.009, Health and Safety Code, is redesignated
  87-24  as Section 106.003.
  87-25        (d)  Chapter 106, Health and Safety Code, is amended to
  87-26  codify Article 4414b-1.1, Revised Statutes, and Section 4(d),
  87-27  Article 4414b-1, Revised Statutes, by adding Subchapter C to read
   88-1  as follows:
   88-2         SUBCHAPTER C.  OUTSTANDING RURAL SCHOLAR RECOGNITION
   88-3                           AND LOAN PROGRAM
   88-4        Sec. 106.041.  DEFINITIONS.  In this subchapter:
   88-5              (1)  "Advisory committee" means the outstanding rural
   88-6  scholar advisory committee.
   88-7              (2)  "Fund" means the outstanding rural scholar fund.
   88-8              (3)  "Postsecondary educational institution" means:
   88-9                    (A)  an institution of higher education, as
  88-10  defined by Section 61.003, Education Code;
  88-11                    (B)  a nonprofit, independent institution
  88-12  approved under Section 61.222, Education Code; or
  88-13                    (C)  a nonprofit, health-related school or
  88-14  program accredited by the Southern Association of Colleges and
  88-15  Schools, the Liaison Committee on Medical Education, the American
  88-16  Osteopathic Association, the Board of Nurse Examiners, the Board of
  88-17  Vocational Nurse Examiners, or, in the case of allied health, an
  88-18  accrediting body recognized by the United States Department of
  88-19  Education.
  88-20              (4)  "Program" means the outstanding rural scholar
  88-21  recognition and loan program.
  88-22              (5)  "Rural community" means a municipality in a
  88-23  nonmetropolitan county as defined by the United States Census
  88-24  Bureau in its most recent census.
  88-25        Sec. 106.042.  ADMINISTRATION.  The center shall administer
  88-26  or contract for the administration of the program.
  88-27        Sec. 106.043.  ADVISORY COMMITTEE.  (a)  The advisory
   89-1  committee shall advise the executive committee on the progress of
   89-2  the program.
   89-3        (b)  The advisory committee is composed of 12 members
   89-4  appointed by the executive committee and must include:
   89-5              (1)  a rural practicing family practice physician;
   89-6              (2)  a rural hospital administrator;
   89-7              (3)  a rural practicing registered professional nurse;
   89-8              (4)  a rural practicing allied health professional;
   89-9              (5)  a dean of a medical school;
  89-10              (6)  a dean of a nursing school;
  89-11              (7)  a dean of a school of allied health science;
  89-12              (8)  a head of a vocational/technical institution;
  89-13              (9)  a community college administrator;
  89-14              (10)  an individual knowledgeable in student financial
  89-15  assistance programs;
  89-16              (11)  a rural public school superintendent; and
  89-17              (12)  a rural resident.
  89-18        (c)  The executive committee shall consider geographical
  89-19  representation in making appointments to the advisory committee.
  89-20        (d)  Advisory committee members serve for staggered six-year
  89-21  terms, with the term of four members expiring August 31 of each
  89-22  odd-numbered year.  A member is eligible for reappointment to
  89-23  consecutive terms.
  89-24        (e)  The executive committee shall fill a vacancy on the
  89-25  advisory committee in the same manner as other appointments to the
  89-26  advisory committee.
  89-27        (f)  A member of the advisory committee is entitled to
   90-1  reimbursement for expenses incurred in performing duties under this
   90-2  subchapter in amounts not to exceed the amounts specified in the
   90-3  General Appropriations Act for travel and per diem allowances for
   90-4  state employees.
   90-5        (g)  The advisory committee may:
   90-6              (1)  elect a chairman, vice-chairman, and secretary
   90-7  from among its members; and
   90-8              (2)  adopt rules for the conduct of its activities.
   90-9        Sec. 106.044.  SELECTION OF OUTSTANDING RURAL SCHOLARS.  (a)
  90-10  The advisory committee shall select outstanding rural scholars
  90-11  through a statewide competition.
  90-12        (b)  The advisory committee shall make selections after
  90-13  considering:
  90-14              (1)  the academic credentials of the applicant;
  90-15              (2)  one or more interviews with the applicant;
  90-16              (3)  a statement written by the applicant of the
  90-17  applicant's reasons for:
  90-18                    (A)  entering the competition and a health care
  90-19  profession; and
  90-20                    (B)  wanting to provide health care services to
  90-21  rural Texans; and
  90-22              (4)  the financial support committed to the applicant
  90-23  by the applicant's sponsoring community.
  90-24        (c)  The advisory committee may not use the applicant's
  90-25  performance on a standardized test as the sole criterion to
  90-26  determine the applicant's selection as an outstanding rural
  90-27  scholar.
   91-1        (d)  The advisory committee shall recommend to the executive
   91-2  committee guidelines to be used by rural communities in the
   91-3  selection of students for nomination and sponsorship as outstanding
   91-4  rural scholars.
   91-5        (e)  An outstanding rural scholar receives public recognition
   91-6  and a certificate of award and is eligible for a forgivable loan
   91-7  under this subchapter.
   91-8        Sec. 106.045.  ELIGIBILITY FOR OUTSTANDING RURAL SCHOLAR
   91-9  COMPETITION.  (a)  To be eligible to participate in the competition
  91-10  under Section 106.044, a high school student or an undergraduate
  91-11  student at a postsecondary educational institution must:
  91-12              (1)  be nominated and sponsored by a rural community,
  91-13  which sponsorship must include financial support;
  91-14              (2)  be a Texas resident under Subchapter B, Chapter
  91-15  54, Education Code;
  91-16              (3)  if the person is a high school student, be in the
  91-17  upper 25 percent of the student's high school class if the class
  91-18  contains 48 or more students, and intend to enter a postsecondary
  91-19  educational institution; and
  91-20              (4)  if the person is an undergraduate student, be in
  91-21  the upper 25 percent of the student's class or have a cumulative
  91-22  grade average that is equal to or greater than the equivalent of a
  91-23  3.0 on a 4.0 scale, and be enrolled in a postsecondary educational
  91-24  institution.
  91-25        (b)  If a person is neither a high school student nor an
  91-26  undergraduate student, the person must be eligible for
  91-27  participation in the competition under rules adopted by the
   92-1  advisory committee.
   92-2        Sec. 106.046.  ELIGIBILITY FOR LOANS; RURAL COMMUNITY
   92-3  FINANCIAL SUPPORT.  (a)  For an outstanding rural scholar to be
   92-4  eligible for a forgivable loan, community sponsorship must include
   92-5  financial support.
   92-6        (b)  Community financial support consists of a commitment to
   92-7  fund 50 percent of the costs of a scholar's tuition, fees,
   92-8  educational materials, and living expenses.
   92-9        (c)  The financial support under this section may be
  92-10  satisfied in whole or in part by a grant, a scholarship, or private
  92-11  foundation support.
  92-12        (d)  Evidence of the financial support must be submitted with
  92-13  a community's nomination.
  92-14        Sec. 106.047.  AWARDING OF LOANS.  (a)  The advisory
  92-15  committee shall recommend to the executive committee guidelines for
  92-16  the awarding of forgivable loans to outstanding rural scholars.
  92-17        (b)  The executive committee, acting on the advice of the
  92-18  advisory committee, shall award forgivable loans to outstanding
  92-19  rural scholars based on the availability of money in the fund.
  92-20        (c)  If in any year the fund is inadequate to provide loans
  92-21  to all eligible applicants, the executive committee shall award
  92-22  forgivable loans on a priority basis according to the applicants'
  92-23  academic performance, test scores, and other criteria of
  92-24  eligibility.
  92-25        Sec. 106.048.  AMOUNT OF LOAN.  (a)  On confirmation of an
  92-26  outstanding rural scholar's admission to a postsecondary
  92-27  educational institution or on receipt of an enrollment report of
   93-1  the scholar at a postsecondary educational institution, and a
   93-2  certification of the amount of financial support needed, the
   93-3  advisory committee annually shall recommend to the executive
   93-4  committee that the committee award a forgivable loan to the scholar
   93-5  in the amount of 50 percent of the cost of the scholar's tuition,
   93-6  fees, educational materials, and living expenses.
   93-7        (b)  An outstanding rural scholar may receive another grant,
   93-8  loan, or scholarship for which the scholar is eligible in addition
   93-9  to the receipt of a forgivable loan, except that the total amount
  93-10  of funds received may not exceed the reasonable needs of the
  93-11  scholar.
  93-12        Sec. 106.049.  LOAN FORGIVENESS.  (a)  The principal balance
  93-13  and interest for one year of a forgivable loan awarded to an
  93-14  outstanding rural scholar must be forgiven for each year the
  93-15  scholar practices as a health care professional in the sponsoring
  93-16  community.
  93-17        (b)  The sponsoring community shall report through the
  93-18  executive committee to the advisory committee the length of time
  93-19  the scholar practices as a health care professional in the
  93-20  community.
  93-21        (c)  If, on the recommendation of the advisory committee, the
  93-22  executive committee finds that a sponsoring community is not in
  93-23  need of the scholar's services, the executive committee by rule may
  93-24  provide for the principal balance and interest of one year of the
  93-25  scholar's loan to be forgiven for each year the scholar practices
  93-26  in another rural community in this state.
  93-27        (d)  Any amount of loan principal or interest that is not
   94-1  forgiven under this section shall be repaid to the center with
   94-2  reasonable collection fees in a timely manner as provided by
   94-3  executive committee rule.
   94-4        Sec. 106.050.  FUND.  (a)  The outstanding rural scholar fund
   94-5  is in the state treasury.
   94-6        (b)  The fund consists of legislative appropriations, gifts,
   94-7  grants, donations, the market value of in-kind contributions, and
   94-8  principal and interest payments on forgivable loans deposited to
   94-9  the credit of the fund by the center.
  94-10        (c)  The center shall administer the fund.
  94-11        (d)  The center, with the recommendation of the advisory
  94-12  committee, shall allocate the fund, as available, for forgivable
  94-13  loans under this subchapter.
  94-14        (e)  The center shall deposit any principal and interest
  94-15  payments on forgivable loans to the credit of the fund.
  94-16        Sec. 106.051.  POSTSECONDARY EDUCATIONAL INSTITUTIONS.  (a)
  94-17  Each postsecondary educational institution shall be provided with a
  94-18  list of the outstanding rural scholars and shall be encouraged to
  94-19  recruit those scholars.
  94-20        (b)  A postsecondary educational institution annually shall
  94-21  report the progress and performance of each outstanding rural
  94-22  scholar to the advisory committee in accordance with the guidelines
  94-23  established by the executive committee.  A report shall be shared
  94-24  with the community sponsoring the scholar.
  94-25        Sec. 106.052.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
  94-26  executive committee shall adopt reasonable rules to enforce the
  94-27  requirements, conditions, and limitations under this subchapter.
   95-1        (b)  The executive committee shall set the rate of interest
   95-2  charged on a forgivable loan under this subchapter.
   95-3        (c)  The executive committee shall adopt rules necessary to
   95-4  ensure compliance with the Civil Rights Act of 1964 (42 U.S.C.
   95-5  Section 2000d et seq.)  concerning nondiscrimination in admissions.
   95-6        (d)  The executive committee shall distribute to each
   95-7  postsecondary educational institution copies of all rules adopted
   95-8  under this subchapter.
   95-9        (e)  The following provisions are repealed:
  95-10              (1)  Article 4414b-1.1, Revised Statutes; and
  95-11              (2)  Section 4(d), Article 4414b-1, Revised Statutes.
  95-12        SECTION 5.02.  (a)  Chapter 161, Health and Safety Code, is
  95-13  amended to codify Chapter 580, Acts of the 72nd Legislature,
  95-14  Regular Session, 1991 (Article 6674v-3a, Revised Statutes), by
  95-15  adding Subchapter K to read as follows:
  95-16            SUBCHAPTER K.  PROHIBITION OF CERTAIN CIGARETTE
  95-17                    OR TOBACCO PRODUCT ADVERTISING
  95-18        Sec. 161.121.  DEFINITIONS.  In this subchapter:
  95-19              (1)  "Church" means a facility that is owned by a
  95-20  religious organization and that is used primarily for religious
  95-21  services.
  95-22              (2)  "School" means a private or public elementary or
  95-23  secondary school.
  95-24              (3)  "Sign" means an outdoor medium, including a
  95-25  structure, display, light device, figure, painting, drawing,
  95-26  message, plaque, poster, or billboard, that is:
  95-27                    (A)  used to advertise or inform; and
   96-1                    (B)  visible from the main-traveled way of a
   96-2  street or highway.
   96-3              (4)  "Tobacco product" has the meaning assigned by
   96-4  Section 155.001, Tax Code.
   96-5        Sec. 161.122.  PROHIBITION; EXCEPTIONS.  (a)  A sign
   96-6  containing an advertisement for cigarettes or tobacco products may
   96-7  not be located closer than 500 feet to a church or school.
   96-8        (b)  The measurement of the distance between the sign
   96-9  containing an advertisement for cigarettes or tobacco products and
  96-10  an institution listed in Subsection (a) is from the nearest
  96-11  property line of the institution to a point on a street or highway
  96-12  closest to the sign, along street lines and in direct lines across
  96-13  intersections.
  96-14        (c)  This section does not apply to:
  96-15              (1)  a sign located on or in a facility owned or leased
  96-16  by a professional sports franchise or in a facility where
  96-17  professional sports events are held at least 10 times during a
  96-18  12-month period; or
  96-19              (2)  a contract for a cigarette or other tobacco
  96-20  product advertisement entered into before August 26, 1991.
  96-21        (d)  In Subsection (c)(1), a "facility" includes a stadium,
  96-22  arena, or events center and any land or property owned or leased by
  96-23  the professional sports franchise that is connected to or
  96-24  immediately contiguous to the stadium, arena, or events center.
  96-25        (b)  Article 6674v-3a, Revised Statutes, is repealed.
  96-26        SECTION 5.03.  Section 462.002(c), Health and Safety Code, is
  96-27  amended to correct terminology to read as follows:
   97-1        (c)  A person may initially file a paper with the county
   97-2  clerk by the use of reproduced, photocopied, or electronically
   97-3  transmitted paper if the person files the original signed copies of
   97-4  the paper with the clerk not later than the 72nd hour after the
   97-5  hour on which the initial filing is made.  If the 72-hour period
   97-6  ends on a Saturday, Sunday, or legal holiday, the filing period is
   97-7  extended until 4 p.m. on the first succeeding business day.  If
   97-8  extremely hazardous weather conditions exist or a disaster occurs,
   97-9  the presiding judge or magistrate may by written order made each
  97-10  day extend the filing period until 4 p.m. on the first succeeding
  97-11  business day.  The written order must declare that an emergency
  97-12  exists because of the weather or the occurrence of a disaster.  If
  97-13  a person detained under this chapter <code> would otherwise be
  97-14  released because the original signed copy of a paper is not filed
  97-15  within the 72-hour period but for the extension of the filing
  97-16  period under this section, the person may be detained until the
  97-17  expiration of the extended filing period.  This subsection does not
  97-18  affect another provision of this chapter <code> requiring the
  97-19  release or discharge of a person.
  97-20        SECTION 5.04.  Section 672.002(7), Health and Safety Code, is
  97-21  amended to conform more closely to the law from which it was
  97-22  derived to read as follows:
  97-23              (7)  "Physician" means a physician licensed by the
  97-24  Texas State Board of Medical Examiners or a properly credentialed
  97-25  physician who holds a commission in the uniformed services of the
  97-26  United States <armed forces> and who is serving on active duty in
  97-27  this state.
   98-1        SECTION 5.05.  If the number, letter, or designation assigned
   98-2  by this article conflicts with a number, letter, or designation
   98-3  assigned by another Act of the 73rd Legislature, the other Act
   98-4  controls, and the number, letter, or designation assigned by this
   98-5  article has no effect.
   98-6    ARTICLE 6.  CHANGES RELATING TO TITLE 7, HEALTH AND SAFETY CODE
   98-7        SECTION 6.01.  Section 531.002, Health and Safety Code, is
   98-8  amended to conform to Section 1, Chapter 569, Acts of the 72nd
   98-9  Legislature, Regular Session, 1991, by amending Subdivision (7) and
  98-10  adding Subdivisions (16) and (17) to read as follows:
  98-11              (7)  "Local agency" means:
  98-12                    (A)  a municipality, county, hospital district,
  98-13  rehabilitation district, school district, state-supported
  98-14  institution of higher education, or state-supported medical school;
  98-15  or
  98-16                    (B)  any organizational combination of two or
  98-17  more of those <the following> entities<:>
  98-18                          <(i)  a municipality;>
  98-19                          <(ii)  a county;>
  98-20                          <(iii)  a hospital district; or>
  98-21                          <(iv)  a school district>.
  98-22              (16)  "Business entity" means a sole proprietorship,
  98-23  partnership, firm, corporation, holding company, joint-stock
  98-24  company, receivership, trust, or any other entity recognized by
  98-25  law.
  98-26              (17)  "Chemical dependency" has the meaning assigned by
  98-27  Section 461.002.
   99-1        SECTION 6.02.  Section 533.007, Health and Safety Code, is
   99-2  amended to conform to Section 1, Chapter 379, Acts of the 72nd
   99-3  Legislature, Regular Session, 1991, to read as follows:
   99-4        Sec. 533.007.  ACCESS TO CRIMINAL HISTORY RECORD <CONVICTION>
   99-5  INFORMATION; CRIMINAL PENALTY FOR UNLAWFUL DISCLOSURE.  (a)  The
   99-6  department and each community center may receive from a law
   99-7  enforcement agency criminal history record information that
   99-8  indicates a conviction, probation, arrest warrant, or wanted person
   99-9  notice if the person to whom the criminal history record
  99-10  information relates:
  99-11              (1)  is:
  99-12                    (A)  an applicant or employee of the department
  99-13  or a community center;
  99-14                    (B)  an applicant or employee of a business or
  99-15  <information about the conviction of:>
  99-16              <(1)  a person who is offered employment that would
  99-17  place the person in direct contact with patients with mental
  99-18  illness or clients with mental retardation; or>
  99-19              <(2)  an employee of a> person who contracts with the
  99-20  department or a community center to provide residential services to
  99-21  patients with mental illness or clients with mental retardation who
  99-22  were furloughed or discharged from a department facility or
  99-23  community center; or
  99-24                    (C)  a volunteer or an applicant to be a
  99-25  volunteer with the department or a community center; and
  99-26              (2)  would be placed in direct contact with patients
  99-27  with mental illness or clients with mental retardation <if the
  100-1  employee's duties would place the employee in direct contact with
  100-2  the patients or clients>.
  100-3        (b)  The department shall establish for department facilities
  100-4  and community centers a uniform method of obtaining the criminal
  100-5  history record <conviction> information.  The uniform method must
  100-6  require that:
  100-7              (1)  either a complete set of fingerprints or the
  100-8  complete name of the person being investigated be submitted to the
  100-9  Department of Public Safety or to another law enforcement agency;
 100-10  and
 100-11              (2)  if fingerprints are submitted, the fingerprints be
 100-12  submitted to the Federal Bureau of Investigation for further
 100-13  information if a relevant disqualifying record or other substantive
 100-14  information is not obtained from a state or local law enforcement
 100-15  agency.
 100-16        (c)  A law enforcement agency may provide to the department
 100-17  or a community center criminal history record information <about
 100-18  the conviction> of an applicant, employee, or volunteer <a person>
 100-19  being investigated only if the information is relevant to the
 100-20  person's work duties <current or proposed employment and was
 100-21  collected> in accordance with this section.  Information <The
 100-22  department or community center is not entitled to conviction
 100-23  information that is not relevant.  Conviction information> is
 100-24  relevant <only> if it relates to <a conviction for>:
 100-25              (1)  a sexual offense;
 100-26              (2)  a drug-related offense;
 100-27              (3)  theft; or
  101-1              (4)  homicide <murder>, assault, battery, or any other
  101-2  offense involving personal injury or threat to another person.
  101-3        (d)  The department or a community center may deny employment
  101-4  or volunteer status to an applicant if:
  101-5              (1)  the department or community center determines that
  101-6  the applicant's criminal history record information <a previous
  101-7  criminal conviction> indicates that the person <applicant> is not
  101-8  qualified or suitable; or
  101-9              (2)  the applicant fails to provide a complete set of
 101-10  fingerprints if the department establishes that method of obtaining
 101-11  criminal history record <conviction> information.
 101-12        (e)  All criminal history record <conviction> information
 101-13  received by the department or a community center is privileged
 101-14  information and is for the exclusive use of the department and the
 101-15  community centers.  The information may not be released or
 101-16  otherwise disclosed to any other person or agency, except the
 101-17  information may be released or disclosed:
 101-18              (1)  to the contractor employing the person;
 101-19              (2)  on court order; or
 101-20              (3)  with the consent of the person being investigated.
 101-21        (f)  The department or community center shall collect and
 101-22  destroy criminal history record <conviction> information relating
 101-23  to a person immediately after the department, the community center,
 101-24  or a contractor makes a <an employment> decision or takes any
 101-25  personnel action relating to the person.
 101-26        (g)  A person commits an offense if the person releases or
 101-27  discloses in violation of this section criminal history record
  102-1  <conviction> information received by the department or a community
  102-2  center.  An offense under this subsection is a felony of the second
  102-3  degree.
  102-4        (h)  The Department of Public Safety is required to provide
  102-5  conviction information to the department or a community center only
  102-6  if a written agreement provides for the reimbursement of the
  102-7  Department of Public Safety for the costs it incurs in providing
  102-8  the information.
  102-9        (i)  The board shall adopt rules relating to the use of
 102-10  information obtained under this section, including rules that
 102-11  prohibit an adverse personnel action based on arrest warrant or
 102-12  wanted persons information received by the department.
 102-13        SECTION 6.03.  Section 533.035, Health and Safety Code, is
 102-14  amended to conform to Section 2, Chapter 569, Acts of the 72nd
 102-15  Legislature, Regular Session, 1991, by amending Subsections (b) and
 102-16  (c) and adding Subsection (d) to read as follows:
 102-17        (b)  The department by contract or other method of allocation
 102-18  may disburse to a local mental health and mental retardation
 102-19  authority department <all> federal mental health <block grant>
 102-20  funds and department state funds to be spent in the local service
 102-21  area for:
 102-22              (1)  community mental health and<,> mental
 102-23  retardation<, and substance abuse> services; and
 102-24              (2)  chemical dependency services for persons who are
 102-25  dually diagnosed as having both chemical dependency and mental
 102-26  illness or mental retardation <to be spent in the local service
 102-27  area>.
  103-1        (c)  A local mental health and mental retardation authority,
  103-2  with the department's approval, shall use <by subcontract or other
  103-3  method of allocation disburse> the funds received under Subsection
  103-4  (b) to provide mental health, mental retardation, and chemical
  103-5  dependency <substance abuse> services in the local service area or
  103-6  to subcontract for those services.
  103-7        (d)  A local mental health and mental retardation authority
  103-8  shall demonstrate to the department that the services that the
  103-9  authority provides directly or through subcontractors and that
 103-10  involve state funds comply with relevant state standards.
 103-11        SECTION 6.04.  Subchapter B, Chapter 533, Health and Safety
 103-12  Code, is amended to conform to Section 6, Chapter 627, Acts of the
 103-13  72nd Legislature, Regular Session, 1991, by adding Section 533.0415
 103-14  to read as follows:
 103-15        Sec. 533.0415.  MEMORANDUM OF UNDERSTANDING ON INTERAGENCY
 103-16  TRAINING.  (a)  The department, the Texas Department of Human
 103-17  Services, the Texas Youth Commission, the Texas Juvenile Probation
 103-18  Commission, and the Central Education Agency by rule shall adopt a
 103-19  joint memorandum of understanding to develop interagency training
 103-20  for the staffs of the agencies involved in the functions of
 103-21  assessment, case planning, case management, and in-home or direct
 103-22  delivery of services to children, youth, and their families.  The
 103-23  memorandum must:
 103-24              (1)  outline the responsibility of each agency in
 103-25  coordinating and developing a plan for interagency training on
 103-26  individualized assessment and effective intervention and treatment
 103-27  services for children and dysfunctional families; and
  104-1              (2)  provide for the establishment of an interagency
  104-2  task force to:
  104-3                    (A)  develop a training program to include
  104-4  identified competencies, content, and hours for completion of the
  104-5  training with at least 20 hours of training required each year
  104-6  until the program is completed;
  104-7                    (B)  design a plan for implementing the program,
  104-8  including regional site selection, frequency of training, and
  104-9  selection of experienced clinical public and private professionals
 104-10  or consultants to lead the training;
 104-11                    (C)  monitor, evaluate, and revise the training
 104-12  program, including the development of additional curricula based on
 104-13  future training needs identified by staff and professionals; and
 104-14                    (D)  submit a report to the governor, lieutenant
 104-15  governor, and speaker of the house of representatives by October 15
 104-16  of each even-numbered year.
 104-17        (b)  The task force consists of:
 104-18              (1)  one clinical professional and one training staff
 104-19  member from each agency, appointed by that agency; and
 104-20              (2)  10 private sector clinical professionals with
 104-21  expertise in dealing with troubled children, youth, and
 104-22  dysfunctional families, two of whom are appointed by each agency.
 104-23        (c)  The task force shall meet at the call of the department.
 104-24        (d)  The department shall act as the lead agency in
 104-25  coordinating the development and implementation of the memorandum.
 104-26        (e)  The agencies shall review and by rule revise the
 104-27  memorandum not later than August each year.
  105-1        SECTION 6.05.  Section 533.061(f), Health and Safety Code, is
  105-2  amended to conform to Section 2, Chapter 248, Acts of the 72nd
  105-3  Legislature, Regular Session, 1991, to read as follows:
  105-4        (f)  Not later than August 30 of each odd-numbered year, the
  105-5  council shall review the plan submitted by the department under
  105-6  Section 533.062, make changes the council considers necessary, and
  105-7  approve the final plan.
  105-8        SECTION 6.06.  Sections 533.062(a) and (c), Health and Safety
  105-9  Code, are amended to conform to Section 1, Chapter 248, Acts of the
 105-10  72nd Legislature, Regular Session, 1991, to read as follows:
 105-11        (a)  The department shall biennially <annually> plan for the
 105-12  creation of new beds in the ICF-MR program.
 105-13        (c)  Each plan shall cover the subsequent fiscal biennium
 105-14  <year>.  Not later than July 1 of each odd-numbered year, the
 105-15  department shall submit the plan to the Interagency Council on
 105-16  ICF-MR Facilities for approval.
 105-17        SECTION 6.07.  Section 534.001, Health and Safety Code, is
 105-18  amended to correct a reference and to conform more closely to the
 105-19  source law from which it was derived and to Section 3, Chapter 569,
 105-20  Acts of the 72nd Legislature, Regular Session, 1991, by amending
 105-21  Subsections (c) and (d) and adding Subsection (e) to read as
 105-22  follows:
 105-23        (c)  A community center is:
 105-24              (1)  an agency of the state, a <state agency,>
 105-25  governmental unit, and a unit of local government, as defined and
 105-26  specified by Chapters 101 and 102, Civil Practice and Remedies
 105-27  Code; and
  106-1              (2)  a local government, as defined by Section 791.003,
  106-2  Government Code <Section 3, The Interlocal Cooperation Act (Article
  106-3  4413(32c), Vernon's Texas Civil Statutes)>.
  106-4        (d)  A community center may be established only if:
  106-5              (1)  the proposed center submits to the department a
  106-6  copy of the contract between the participating local agencies, if
  106-7  applicable;
  106-8              (2)  the department approves the proposed center's plan
  106-9  to develop and make available to the region's residents an
 106-10  effective mental health or mental retardation program, or both,
 106-11  through a community center that is appropriately structured to
 106-12  include the financial, physical, and personnel resources necessary
 106-13  to meet the region's needs; and
 106-14              (3)  the department <deliver mental health or mental
 106-15  retardation services and> determines that the center can
 106-16  appropriately, effectively, and efficiently provide those services
 106-17  in the region.
 106-18        (e)  A community center established under Subsection (d)
 106-19  <this section> may operate only for the purposes defined in the
 106-20  center's plan.  The board by rule shall specify the elements that
 106-21  must be included in a plan and shall prescribe the procedure for
 106-22  submitting and approving a center's plan.
 106-23        SECTION 6.08.  Subchapter A, Chapter 534, Health and Safety
 106-24  Code, is amended to conform more closely to the source law from
 106-25  which it was derived and to Section 4, Chapter 569, Acts of the
 106-26  72nd Legislature, Regular Session, 1991, by adding Section 534.0015
 106-27  to read as follows:
  107-1        Sec. 534.0015.  PURPOSE AND POLICY.  (a)  A community center
  107-2  created under this subchapter is intended to be a vital component
  107-3  in a continuum of services for persons in this state who are
  107-4  mentally ill or mentally retarded.
  107-5        (b)  It is the policy of this state that community centers
  107-6  strive to develop services for persons who are mentally ill or
  107-7  mentally retarded, and may provide requested services to persons
  107-8  with a chemical dependency, that are effective alternatives to
  107-9  treatment in a large residential facility.
 107-10        SECTION 6.09.  Section 534.002, Health and Safety Code, is
 107-11  amended to conform to Section 4, Chapter 569, Acts of the 72nd
 107-12  Legislature, Regular Session, 1991, to read as follows:
 107-13        Sec. 534.002.  Board of Trustees for Center Established by
 107-14  One Local Agency.  The board of trustees of a community center
 107-15  established by one local agency is composed of:
 107-16              (1)  the members of the local agency's governing body;
 107-17  or
 107-18              (2)  not fewer than five or more than nine qualified
 107-19  voters who reside in the region to be served by the center and who
 107-20  are appointed by the local agency's governing body.
 107-21        SECTION 6.10.  Section 534.003(c), Health and Safety Code, is
 107-22  amended to conform to Section 3, Chapter 569, Acts of the 72nd
 107-23  Legislature, Regular Session, 1991, to read as follows:
 107-24        (c)  When the center is established, the governing bodies
 107-25  shall enter into a contract that stipulates the number of board
 107-26  members and the group from which the members are chosen.  They may
 107-27  renegotiate or amend the contract as necessary to change the:
  108-1              (1)  method of choosing the members; or
  108-2              (2)  membership of the board of trustees to more
  108-3  accurately reflect the ethnic and geographic diversity of the local
  108-4  service area.
  108-5        SECTION 6.11.  Section 534.004, Health and Safety Code, is
  108-6  amended to conform to Section 4, Chapter 569, Acts of the 72nd
  108-7  Legislature, Regular Session, 1991, to read as follows:
  108-8        Sec. 534.004.  PROCEDURES RELATING TO BOARD OF TRUSTEES
  108-9  MEMBERSHIP.  (a)  The local agency or organizational combination of
 108-10  local agencies that establishes a community center shall prescribe:
 108-11              (1)  the application procedure for a position on the
 108-12  board of trustees;
 108-13              (2)  the procedure and criteria for making appointments
 108-14  to the board of trustees;
 108-15              (3)  the procedure for posting notice of and filling a
 108-16  vacancy on the board of trustees; <and>
 108-17              (4)  the grounds and procedure for removing a member of
 108-18  the board of trustees; and
 108-19              (5)  a procedure to ensure that an appointed member of
 108-20  a board of trustees appointed by a local agency or organizational
 108-21  combination of local agencies primarily located in only one county
 108-22  serves not more than four consecutive and complete two-year terms.
 108-23        (b)  The local agency or organizational combination of local
 108-24  agencies that appoints the board of trustees shall, in appointing
 108-25  the members, attempt to reflect the ethnic and geographic diversity
 108-26  of the local service area the community center serves.  The local
 108-27  agency or organizational combination shall include on the board of
  109-1  trustees one or more persons otherwise qualified under this chapter
  109-2  who are consumers of the types of services the center provides or
  109-3  who are family members of consumers of the types of services the
  109-4  center provides.
  109-5        SECTION 6.12.  Section 534.005, Health and Safety Code, is
  109-6  amended to conform to Section 4, Chapter 569, Acts of the 72nd
  109-7  Legislature, Regular Session, 1991, by adding Subsection (c) to
  109-8  read as follows:
  109-9        (c)  If the local agency or organizational combination of
 109-10  local agencies that appoints the board of trustees is primarily
 109-11  located in only one county, a person appointed to the board of
 109-12  trustees may not serve more than four consecutive and complete
 109-13  two-year terms.
 109-14        SECTION 6.13.  Subchapter A, Chapter 534, Health and Safety
 109-15  Code, is amended to conform to Section 4, Chapter 569, Acts of the
 109-16  72nd Legislature, Regular Session, 1991, by amending Section
 109-17  534.006 and adding Section 534.0065 to read as follows:
 109-18        Sec. 534.006.  TRAINING.  (a)  The board by rule shall
 109-19  establish:
 109-20              (1)  an annual training program for members of a board
 109-21  of trustees administered by the professional staff of that
 109-22  community center, including the center's legal counsel; and
 109-23              (2)  an advisory committee to develop training
 109-24  guidelines that includes representatives of advocates for persons
 109-25  with mental illness or mental retardation and representatives of
 109-26  boards of trustees.
 109-27        (b)  Before a member of a board of trustees may assume
  110-1  office, the member shall attend at least one training session
  110-2  administered by that center's professional staff to receive
  110-3  information relating to:
  110-4              (1)  the enabling legislation that created the
  110-5  community center;
  110-6              (2)  the programs the community center operates;
  110-7              (3)  the community center's budget for that program
  110-8  year;
  110-9              (4)  the results of the most recent formal audit of the
 110-10  community center;
 110-11              (5)  the requirements of the open meetings law, Chapter
 110-12  271, Acts of the 60th Legislature, Regular Session, 1967 (Article
 110-13  6252-17, Vernon's Texas Civil Statutes), and the open records law,
 110-14  Chapter 424, Acts of the 63rd Legislature, Regular Session, 1973
 110-15  (Article 6252-17a, Vernon's Texas Civil Statutes);
 110-16              (6)  the requirements of conflict of interest laws and
 110-17  other laws relating to public officials; and
 110-18              (7)  any ethics policies adopted by the community
 110-19  center <EFFECT ON PREVIOUS BOARDS.  (a)  This subchapter does not
 110-20  affect the validity of:>
 110-21              <(1)  a community center or board of trustees
 110-22  established or appointed before September 1, 1969; or>
 110-23              <(2)  a board selection committee appointed by an
 110-24  organizational combination of more than six local agencies under
 110-25  Section 3.02(a), Chapter 67, Acts of the 59th Legislature, Regular
 110-26  Session, 1965, as it read preceding September 1, 1969.>
 110-27        <(b)  A community center or board of trustees established or
  111-1  appointed under prior law may be reorganized to comply with this
  111-2  subchapter>.
  111-3        Sec. 534.0065.  QUALIFICATIONS; CONFLICT OF INTEREST;
  111-4  REMOVAL.  (a)  As a local public official, a member of the board of
  111-5  trustees of a community center shall uphold the member's position
  111-6  of public trust by meeting and maintaining the applicable
  111-7  qualifications for membership and by complying with the applicable
  111-8  requirements relating to conflicts of interest.
  111-9        (b)  A person is not eligible for appointment as a member of
 111-10  a board of trustees if the person or the person's spouse:
 111-11              (1)  owns or controls, directly or indirectly, more
 111-12  than a 10 percent interest in a business entity or other
 111-13  organization receiving funds from the community center by contract
 111-14  or other method; or
 111-15              (2)  uses or receives a substantial amount of tangible
 111-16  goods or funds from the community center, other than:
 111-17                    (A)  compensation or reimbursement authorized by
 111-18  law for board of trustees membership, attendance, or expenses; or
 111-19                    (B)  as a consumer or as a family member of a
 111-20  client or patient receiving services from the community center.
 111-21        (c)  The primary residence of a member of the board of
 111-22  trustees must be in the local service area the member represents.
 111-23        (d)  A member of the board of trustees is subject to Chapter
 111-24  171, Local Government Code.
 111-25        (e)  A member of the board of trustees may not:
 111-26              (1)  refer for services a client or patient to a
 111-27  business entity owned or controlled by a member of the board of
  112-1  trustees, unless the business entity is the only business entity
  112-2  that provides the needed services within the jurisdiction of the
  112-3  community center;
  112-4              (2)  use a community center facility in the conduct of
  112-5  a business entity owned or controlled by that member;
  112-6              (3)  solicit, accept, or agree to accept from another
  112-7  person or business entity a benefit in return for the member's
  112-8  decision, opinion, recommendation, vote, or other exercise of
  112-9  discretion as a local public official or for a violation of a duty
 112-10  imposed by law;
 112-11              (4)  receive any benefit for the referral of a client
 112-12  or a patient to the community center or to another business entity;
 112-13              (5)  appoint, vote for, or confirm the appointment of a
 112-14  person to a paid office or position with the community center if
 112-15  the person is related to a member of the board of trustees by
 112-16  affinity within the second degree or by consanguinity within the
 112-17  third degree; or
 112-18              (6)  solicit or receive a political contribution from a
 112-19  supplier to or contractor with the community center.
 112-20        (f)  Not later than the date on which a member of the board
 112-21  of trustees takes office by appointment or reappointment and not
 112-22  later than the anniversary of that date, each member shall annually
 112-23  execute and file with the community center an affidavit
 112-24  acknowledging that the member has read the requirements for
 112-25  qualification, conflict of interest, and removal prescribed by this
 112-26  chapter.
 112-27        (g)  In addition to any grounds for removal adopted under
  113-1  Section 534.004(a), it is a ground for removal of a member of a
  113-2  board of trustees if the member:
  113-3              (1)  violates Chapter 171, Local Government Code;
  113-4              (2)  is not eligible for appointment to the board of
  113-5  trustees at the time of appointment as provided by Subsections (b)
  113-6  and (c);
  113-7              (3)  does not maintain during service on the board of
  113-8  trustees the qualifications required by Subsections (b) and (c);
  113-9              (4)  violates a provision of Subsection (e);
 113-10              (5)  violates a provision of Section 534.0115; or
 113-11              (6)  does not execute the affidavit required by
 113-12  Subsection (f).
 113-13        (h)  If a board of trustees is composed of members of the
 113-14  governing body of a local agency or organizational combination of
 113-15  local agencies, this section applies only to the qualifications for
 113-16  and removal from membership on the board of trustees.
 113-17        SECTION 6.14.  Section 534.008(a), Health and Safety Code, is
 113-18  amended to conform to Section 4, Chapter 569, Acts of the 72nd
 113-19  Legislature, Regular Session, 1991, to read as follows:
 113-20        (a)  The board of trustees is responsible for the effective
 113-21  administration of <shall administer> the community center.
 113-22        SECTION 6.15.  Section 534.009, Health and Safety Code, is
 113-23  amended to conform to Section 4, Chapter 569, Acts of the 72nd
 113-24  Legislature, Regular Session, 1991, by amending Subsection (c) and
 113-25  adding Subsection (d) to read as follows:
 113-26        (c)  The board of trustees shall keep a record of its
 113-27  proceedings in accordance with the open meetings law (Article
  114-1  6252-17, Vernon's Texas Civil Statutes).  The record is open for
  114-2  public inspection in accordance with that law.
  114-3        (d)  The board of trustees shall send to the department and
  114-4  each local agency that appoints the members a copy of the approved
  114-5  minutes of board of trustees meetings by:
  114-6              (1)  mailing a copy appropriately addressed and with
  114-7  the necessary postage paid using the United States postal service;
  114-8  or
  114-9              (2)   another method agreed to by the board of trustees
 114-10  and the local agency.
 114-11        SECTION 6.16.  Section 534.010(b), Health and Safety Code, is
 114-12  amended to conform to Section 4, Chapter 569, Acts of the 72nd
 114-13  Legislature, Regular Session, 1991, to read as follows:
 114-14        (b)  The board of trustees shall:
 114-15              (1)  adopt a written policy governing the powers that
 114-16  may be delegated to the executive director; and
 114-17              (2)  annually report to each local agency that appoints
 114-18  the members the executive director's total compensation and
 114-19  benefits <executive director has the powers delegated by the board
 114-20  of trustees.  Those powers are subject to the policy direction of
 114-21  the board of trustees>.
 114-22        SECTION 6.17.  Section 534.011, Health and Safety Code, is
 114-23  amended to conform to Section 4, Chapter 569, Acts of the 72nd
 114-24  Legislature, Regular Session, 1991, to read as follows:
 114-25        Sec. 534.011.  PERSONNEL.  (a)  The <board of trustees or>
 114-26  executive director, in accordance with the policies of the board of
 114-27  trustees, shall <may:>
  115-1              <(1)>  employ and train personnel to administer the
  115-2  community center's programs and services.  The community center
  115-3  may<; and>
  115-4              <(2)>  recruit <and train> those personnel and contract
  115-5  for recruiting and training purposes <that purpose>.
  115-6        (b)  <The board of trustees shall adopt standardized
  115-7  qualifications for personnel positions for the community center
  115-8  that are consistent with the standards developed by the
  115-9  commissioner under Section 532.011(e).>
 115-10        <(c)>  The board of trustees shall provide employees of the
 115-11  community center with appropriate rights, privileges, and benefits
 115-12  <that are consistent with the rights, privileges, and benefits
 115-13  available to employees of the local agencies that establish the
 115-14  center>.
 115-15        (c) <(d)>  The board of trustees may provide workers'
 115-16  compensation benefits.
 115-17        (d) <(e)>  The board of trustees shall prescribe the number
 115-18  of employees and their salaries<, subject to the commissioner's
 115-19  approval>.  The board of trustees may choose to set salaries and
 115-20  benefits in compliance with a market analysis or internal salary
 115-21  study.  If an internal salary study is used, the board of trustees
 115-22  shall conduct the study in accordance with the guidelines
 115-23  established by the commissioner.
 115-24        (e)  Instead of using a market analysis or internal salary
 115-25  study to establish salaries and benefits, the board of trustees may
 115-26  use the state position classification plan and the General
 115-27  Appropriations Act to determine the appropriate classification and
  116-1  relative compensation of officers and employees.  The board of
  116-2  trustees may pay salaries in amounts less than those provided by
  116-3  the General Appropriations Act.  For a position not on the
  116-4  classification plan, the board of trustees shall set the
  116-5  compensation according to guidelines adopted by the commissioner.
  116-6  The board of trustees may petition the department for approval to
  116-7  exclude a position from the position classification plan and to
  116-8  provide a stated salary for that position that exceeds the amount
  116-9  prescribed by the General Appropriations Act for the classified
 116-10  position.
 116-11        (f)  During a management audit of a community center, the
 116-12  department is entitled to confirm the method the center used to
 116-13  determine salaries and benefits.
 116-14        SECTION 6.18.  Subchapter A, Chapter 534, Health and Safety
 116-15  Code, is amended to conform to Section 4, Chapter 569, Acts of the
 116-16  72nd Legislature, Regular Session, 1991, by adding Section 534.0115
 116-17  to read as follows:
 116-18        Sec. 534.0115.  NEPOTISM.  (a)  The board of trustees or
 116-19  executive director may not hire as a paid officer or employee of
 116-20  the community center a person who is related to a member of the
 116-21  board of trustees by affinity within the second degree or by
 116-22  consanguinity within the third degree.
 116-23        (b)  An officer or employee who is related to a member of the
 116-24  board of trustees in a prohibited manner may continue to be
 116-25  employed if the person began the employment not later than the 31st
 116-26  day before the date on which the member was appointed.
 116-27        (c)  The officer or employee or the member of the board of
  117-1  trustees shall resign if the officer or employee began the
  117-2  employment later than the 31st day before the date on which the
  117-3  member was appointed.
  117-4        (d)  If an officer or employee is permitted to remain in
  117-5  employment under Subsection (b), the related member of the board of
  117-6  trustees may not participate in the deliberation of or voting on an
  117-7  issue that is specifically applicable to the officer or employee
  117-8  unless the issue affects an entire class or category of employees.
  117-9        SECTION 6.19.  Sections 534.012(a) and (b), Health and Safety
 117-10  Code, are amended to conform to Section 4, Chapter 569, Acts of the
 117-11  72nd Legislature, Regular Session, 1991, to read as follows:
 117-12        (a)  The board of trustees may appoint committees, including
 117-13  medical committees, to advise the board of trustees on matters
 117-14  relating to <the administration of> mental health and mental
 117-15  retardation services.
 117-16        (b)  Each committee must be composed of at least three <five>
 117-17  members.
 117-18        SECTION 6.20.  Section 534.014, Health and Safety Code, is
 117-19  amended to conform to Sections 4 and 13, Chapter 569, Acts of the
 117-20  72nd Legislature, Regular Session, 1991, to read as follows:
 117-21        Sec. 534.014.  BUDGET; REQUEST FOR FUNDS.  (a)  Each
 117-22  community center shall annually provide to each local agency that
 117-23  appoints members to the board of trustees a copy of the center's:
 117-24              (1)  approved fiscal year operating budget;
 117-25              (2)  most recent annual financial audit; and
 117-26              (3)  staff salaries by position.
 117-27        (b)  The board of trustees shall annually submit to each
  118-1  local agency that appoints the members a request for funds or
  118-2  in-kind assistance to support the center <PLAN FOR SERVICES.  As
  118-3  soon as possible after a community center is established, the board
  118-4  of trustees shall submit to the department:>
  118-5              <(1)  a copy of the contract between the participating
  118-6  local agencies, if applicable; and>
  118-7              <(2)  a plan, within the projected financial, physical,
  118-8  and personnel resources of the region to be served, to develop and
  118-9  make available to the region's residents an effective mental health
 118-10  or mental retardation services program, or both, through one or
 118-11  more community centers>.
 118-12        SECTION 6.21.  Subchapter A, Chapter 534, Health and Safety
 118-13  Code, is amended to conform to Section 6, Chapter 569, Acts of the
 118-14  72nd Legislature, Regular Session, 1991, by adding Section 534.0155
 118-15  to read as follows:
 118-16        Sec. 534.0155.  FOR WHOM SERVICES MAY BE PROVIDED.  (a)  This
 118-17  subtitle does not prevent a community center from providing
 118-18  services to a person with chemical dependency or to a person with a
 118-19  mental disability, as that term is defined by Section 535.001.
 118-20        (b)  A community center may provide those services by
 118-21  contracting with a public or private agency in addition to the
 118-22  department.
 118-23        (c)  A community center may not provide services to a person
 118-24  with a disability that is not listed in the definition of person
 118-25  with a mental disability provided by Section 535.001, except that a
 118-26  community center that, on or before September 1, 1991, has
 118-27  contracted to provide services to a person with a disability that
  119-1  is not listed in that definition may continue to receive funding
  119-2  and provide services to that person for the term of the contract.
  119-3        SECTION 6.22.  Section 534.017(a), Health and Safety Code, is
  119-4  amended to conform to Section 7, Chapter 569, Acts of the 72nd
  119-5  Legislature, Regular Session, 1991, to read as follows:
  119-6        (a)  A community center shall charge reasonable fees for <to
  119-7  cover the cost of> services the center provides, unless prohibited
  119-8  by other service contracts or law.
  119-9        SECTION 6.23.  Sections 534.018, 534.019, and 534.020, Health
 119-10  and Safety Code, are amended to conform to Section 4, Chapter 569,
 119-11  Acts of the 72nd Legislature, Regular Session, 1991, to read as
 119-12  follows:
 119-13        Sec. 534.018.  GIFTS AND GRANTS.  A community center may
 119-14  accept gifts and grants of money, personal property, and real
 119-15  property to use in providing <administering> the center's programs
 119-16  and services.
 119-17        Sec. 534.019.  CONTRIBUTION BY LOCAL AGENCY.  A participating
 119-18  local agency may contribute land, buildings, facilities, other real
 119-19  and personal property, personnel, and funds to administer the
 119-20  community center's programs and services.
 119-21        Sec. 534.020.  ACQUISITION AND CONSTRUCTION OF PROPERTY AND
 119-22  FACILITIES BY COMMUNITY CENTER.  (a)  A community center may
 119-23  purchase or lease real and personal property and may construct
 119-24  buildings and facilities.
 119-25        (b)  The board of trustees shall require that an appraiser
 119-26  certified by a master appraisal institute conduct an independent
 119-27  appraisal of real estate the community center intends to purchase.
  120-1  The board of trustees may waive this requirement if the purchase
  120-2  price is less than the value listed for the property by the local
  120-3  appraisal district and the property has been appraised by the local
  120-4  appraisal district within the preceding two years.  A community
  120-5  center may not purchase or lease property for an amount that is
  120-6  greater than the property's appraised value unless:
  120-7              (1)  the purchase or lease of that property at that
  120-8  price is necessary;
  120-9              (2)  the board of trustees documents in the official
 120-10  minutes the reasons why the purchase or lease is necessary at that
 120-11  price; and
 120-12              (3)  a majority of the board approves the transaction.
 120-13        (c)  The board of trustees shall establish in accordance with
 120-14  relevant department rules competitive bidding procedures and
 120-15  practices for capital purchases and for purchases involving
 120-16  department funds or required local matching funds.
 120-17        SECTION 6.24.  Section 534.022, Health and Safety Code, is
 120-18  amended to conform to Section 5, Chapter 569, and Section 1,
 120-19  Chapter 596, Acts of the 72nd Legislature, Regular Session, 1991,
 120-20  by amending Subsection (b) and adding Subsection (d) to read as
 120-21  follows:
 120-22        (b)  The community center shall issue the bonds or notes in
 120-23  accordance with the Bond Procedures Act of 1981 (Article 717k-6,
 120-24  Vernon's Texas Civil Statutes), and Chapter 656, Acts of the 68th
 120-25  Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
 120-26  Civil Statutes).  The attorney general must approve the bonds <or
 120-27  notes> before issuance.
  121-1        (d)  The board shall review the issuance of bonds or notes
  121-2  under this section and for each issuance shall make a finding of
  121-3  whether the proceeds are to be expended on projects or purchases
  121-4  that are related to the provision of services.  Not later than
  121-5  November 1 of each year, the board shall submit to the Legislative
  121-6  Budget Board, the Governor's Office of Budget and Planning, and the
  121-7  state auditor a report that describes the use and amount of
  121-8  proceeds derived from bonds and notes issued by community centers
  121-9  in the preceding fiscal year.
 121-10        SECTION 6.25.  Section 534.023(b), Health and Safety Code, is
 121-11  amended to conform to Section 5, Chapter 569, Acts of the 72nd
 121-12  Legislature, Regular Session, 1991, to read as follows:
 121-13        (b)  The agreement must include a provision for a
 121-14  lease-purchase arrangement between <among> the community center<,
 121-15  the governing body of each local agency establishing the center,>
 121-16  and the department.
 121-17        SECTION 6.26.  Sections 534.026 and 534.030, Health and
 121-18  Safety Code, are amended to conform to Section 5, Chapter 569, Acts
 121-19  of the 72nd Legislature, Regular Session, 1991, to read as follows:
 121-20        Sec. 534.026.  Terms of Construction or Renovation Agreement.
 121-21  (a)  In an agreement to construct a facility under Section 534.023
 121-22  or to renovate a facility under Section 534.024, the department
 121-23  shall specify the lease or loan payments that include the
 121-24  amortization of the cost of the facility or renovation <for not
 121-25  more than 40 years>.
 121-26        (b)  The agreement must <may> provide for reasonable interest
 121-27  to be paid by the community center on the total cost of the
  122-1  facility or renovation.  The rate of interest may not exceed 50
  122-2  percent of the market interest rate, as determined by the
  122-3  department, that a local agency that established the community
  122-4  center would pay at the time the agreement is made if the agency
  122-5  issued revenue bonds to construct or renovate the facility payable
  122-6  for the same period as the period of the agreement to construct or
  122-7  renovate the facility.
  122-8        Sec. 534.030.  STATE FUNDS.  (a)  A community center may use
  122-9  state funds, including state contract funds, to operate a facility
 122-10  constructed under Section 534.023 or renovated under Section
 122-11  534.024.  The total amount of state funds used in the actual
 122-12  operation of the facility may not exceed an amount equal to 60
 122-13  percent of the facility's total operating budget.
 122-14        (b)  In determining a facility's total operating budget, a
 122-15  community center may not include lease-purchase payments or
 122-16  renovation funding repayments.
 122-17        (c)  <A community center may not use state funds to make
 122-18  lease-purchase payments or renovation funding repayments.>
 122-19        <(d)>  The construction, renovation, or operation of a
 122-20  facility under Sections 534.023-534.029 does not constitute grounds
 122-21  for a community center to receive contract funds that are in
 122-22  addition to the contract funds the center would otherwise receive
 122-23  under the board's rules governing distribution of those funds.
 122-24        SECTION 6.27.  Sections 534.033(a) and (c), Health and Safety
 122-25  Code, are amended to conform to Section 6, Chapter 569, Acts of the
 122-26  72nd Legislature, Regular Session, 1991, to read as follows:
 122-27        (a)  It is the intent of the legislature that the department
  123-1  limit its control over, and routine reviews of, community center
  123-2  programs to those programs that:
  123-3              (1)  use department <state> funds or use required local
  123-4  funds that are matched with department <state> funds;
  123-5              (2)  provide core or required services;
  123-6              (3)  provide services to former clients or patients of
  123-7  a department facility; or
  123-8              (4)  are affected by litigation in which the department
  123-9  is a defendant.
 123-10        (c)  The department may determine whether a particular
 123-11  program uses department <state> funds or uses required local
 123-12  matching funds.
 123-13        SECTION 6.28.  Subchapter A, Chapter 534, Health and Safety
 123-14  Code, is amended to conform to Section 8, Chapter 569, Acts of the
 123-15  72nd Legislature, Regular Session, 1991, by adding Section 534.035
 123-16  to read as follows:
 123-17        Sec. 534.035.  PROGRAM REVIEW AND MANAGEMENT AUDIT.  (a)  The
 123-18  department by rule shall establish as a contract requirement for
 123-19  community centers program review and management audit procedures to
 123-20  ensure that reviews and audits are conducted in sufficient quantity
 123-21  and type to provide reasonable assurance that adequate and
 123-22  appropriate fiscal controls exist in community centers.
 123-23        (b)  The department shall conduct periodic program reviews at
 123-24  each community center.  The commissioner or the commissioner's
 123-25  designee shall prepare, publish, and distribute a formal procedure
 123-26  for the periodic program reviews.
 123-27        (c)  The department shall conduct periodic management audits
  124-1  at each community center.  The director of the internal audit unit,
  124-2  with the approval of the board's audit committee, shall prepare and
  124-3  publish a formal risk assessment procedure for the audits.  The
  124-4  department shall include in a management audit a comprehensive
  124-5  review of the center's annual financial and compliance audit
  124-6  activities required under Section 534.068.
  124-7        (d)  After a program review or management audit is conducted,
  124-8  the department shall send to the community center a written report
  124-9  that identifies in clear language each significant deficiency
 124-10  identified and each question raised by the review or audit.
 124-11        (e)  The board of trustees shall provide to the department a
 124-12  written response to the concerns raised by the review or audit
 124-13  within the period prescribed by department rule.  The response
 124-14  must:
 124-15              (1)  describe any action taken or to be taken to
 124-16  correct an identified deficiency;
 124-17              (2)  provide narrative responses to questions relating
 124-18  to policies or procedures raised in the review or audit; and
 124-19              (3)  give notice of any disagreement the board of
 124-20  trustees has with a specific finding of the review or audit.
 124-21        (f)  Within the period prescribed by department rules, the
 124-22  commissioner or the board's audit committee shall review the
 124-23  community center's responses and shall notify in writing the
 124-24  community center of any inadequacy or deficiency found in the
 124-25  response.  The community center may provide additional responses to
 124-26  the commissioner.  The commissioner shall establish a reasonable
 124-27  deadline for receiving responses.
  125-1        (g)  If, by the date prescribed by the commissioner, the
  125-2  community center fails to respond to a deficiency identified in a
  125-3  review or audit to the satisfaction of the commissioner, the
  125-4  department may discontinue the transfer of related department funds
  125-5  to the community center until the dispute is resolved.  The
  125-6  community center is entitled to notice and an opportunity for a
  125-7  hearing before the transfer of department funds is discontinued.
  125-8  The board by rule shall prescribe the hearings procedure.
  125-9        (h)  The department may withhold funds during the pendency of
 125-10  an appeal to a court if the department hearing upholds the
 125-11  discontinuation of the funds.  The department shall transfer the
 125-12  withheld funds to the community center if the final determination
 125-13  is favorable to the community center.
 125-14        (i)  The department shall incorporate the community center's
 125-15  responses into the official management audit report in accordance
 125-16  with the Government Auditing Standards published by the United
 125-17  States General Accounting Office.  The department shall publish the
 125-18  final report within the period prescribed by department rules, but
 125-19  not later than the 60th day after the date on which the audit staff
 125-20  conducts the official exit conference with the community center.
 125-21  If the department disagrees with the community center's responses
 125-22  as provided by Subsection (f), the department shall publish the
 125-23  official report within the period prescribed by department rules.
 125-24        SECTION 6.29.  Section 534.052, Health and Safety Code, is
 125-25  amended to conform to Section 9, Chapter 569, Acts of the 72nd
 125-26  Legislature, Regular Session, 1991, to read as follows:
 125-27        Sec. 534.052.  Rules and Standards.  (a)  The board shall
  126-1  adopt rules, including standards, the board considers necessary and
  126-2  appropriate to ensure the adequate provision of community-based
  126-3  mental health and mental retardation services through a local
  126-4  mental health or mental retardation authority <by department
  126-5  facility outreach programs or by community centers and other
  126-6  providers receiving contract funds as designated providers> under
  126-7  this subchapter.
  126-8        (b)  The department shall send a copy of the rules to each
  126-9  local mental health or mental retardation authority or other
 126-10  provider receiving contract funds as a local mental health or
 126-11  mental retardation authority or <department facility outreach
 126-12  program and to each> designated provider.
 126-13        SECTION 6.30.  Subchapter B, Chapter 534, Health and Safety
 126-14  Code, is amended to conform to Section 10, Chapter 569, Acts of the
 126-15  72nd Legislature, Regular Session, 1991, by adding Section 534.0535
 126-16  to read as follows:
 126-17        Sec. 534.0535.  JOINT DISCHARGE PLANNING.  (a)  The board
 126-18  shall adopt, and the department shall enforce, rules that require
 126-19  continuity of services and planning for patient or client care
 126-20  between department facilities and local mental health or mental
 126-21  retardation authorities.
 126-22        (b)  At a minimum, the rules must require joint discharge
 126-23  planning between a department facility and a local mental health or
 126-24  mental retardation authority before a facility discharges a patient
 126-25  or client or places the patient or client on an extended furlough
 126-26  with an intent to discharge.
 126-27        (c)  The local mental health or mental retardation authority
  127-1  shall plan with the department facility and determine the
  127-2  appropriate community services for the patient or client.
  127-3        (d)  The local mental health or mental retardation authority
  127-4  shall arrange for the provision of the services if department funds
  127-5  are to be used and may subcontract with or make a referral to a
  127-6  local agency or entity.
  127-7        SECTION 6.31.  Section 534.054, Health and Safety Code, is
  127-8  amended to conform to Section 10, Chapter 569, Acts of the 72nd
  127-9  Legislature, Regular Session, 1991, to read as follows:
 127-10        Sec. 534.054.  Designation of Provider <Designated
 127-11  Providers>.  (a)  The department shall identify and contract with a
 127-12  local mental health or mental retardation authority <one or more
 127-13  designated providers> for each service area to provide services to
 127-14  patient and client populations determined by the department.  A
 127-15  local mental health or mental retardation authority <designated
 127-16  provider> shall provide, directly or by subcontract, services to
 127-17  address the needs of priority populations as required by the
 127-18  department and shall comply with the rules and standards adopted
 127-19  under Section 534.052.
 127-20        (b)  In identifying a local mental health or mental
 127-21  retardation authority <designated provider>, the department shall
 127-22  give preference to a community center located in that service area.
 127-23        (c)  The department may contract with a local agency or a
 127-24  private provider or organization to act as a designated provider of
 127-25  <for> a service <area> if the department:
 127-26              (1)  cannot negotiate a contract with a local mental
 127-27  health or mental retardation authority <community center> to ensure
  128-1  that a specific required service <services> for priority
  128-2  populations is <are> available in that service area; or
  128-3              (2)  determines that a local mental health or mental
  128-4  retardation authority <center> does not have the capacity to ensure
  128-5  the availability of that service <the services>.
  128-6        (d)  The department shall provide the required services in a
  128-7  service area directly through a department facility outreach
  128-8  program or contract with another agency, provider, or organization
  128-9  as the local mental health or mental retardation authority if the
 128-10  department cannot identify and contract with a community center
 128-11  <designated provider> in that service area.
 128-12        SECTION 6.32.  Section 534.055(c), Health and Safety Code, is
 128-13  amended to correct a reference and to conform to Section 11,
 128-14  Chapter 569, Acts of the 72nd Legislature, Regular Session, 1991,
 128-15  to read as follows:
 128-16        (c)  A model contract must:
 128-17              (1)  require that the services provided by the private
 128-18  provider be based on the patient's or client's individual treatment
 128-19  plan;
 128-20              (2)  provide that a community-based residential
 128-21  facility that is a family home as defined in Chapter 123, Human
 128-22  Resources Code <the Community Homes for Disabled Persons Location
 128-23  Act (Article 1011n, Vernon's Texas Civil Statutes)> may house only
 128-24  a person with a disability as defined in Section 123.002, Human
 128-25  Resources Code <disabled persons as defined in Section 2 of that
 128-26  Act>; <and>
 128-27              (3)  prohibit the use of the facility for purposes such
  129-1  as restitution centers, homes for substance abusers, or halfway
  129-2  houses; and
  129-3              (4)  outline a dispute resolution procedure.
  129-4        SECTION 6.33.  Section 534.056, Health and Safety Code, is
  129-5  amended to conform to Section 10, Chapter 569, Acts of the 72nd
  129-6  Legislature, Regular Session, 1991, to read as follows:
  129-7        Sec. 534.056.  COORDINATION OF ACTIVITIES.  A local mental
  129-8  health or mental retardation authority <designated provider> shall
  129-9  coordinate its activities with the activities of other appropriate
 129-10  agencies that provide care and treatment for persons with drug or
 129-11  alcohol problems.
 129-12        SECTION 6.34.  Sections 534.058(a) and (c), Health and Safety
 129-13  Code, are amended to conform to Section 10, Chapter 569, Acts of
 129-14  the 72nd Legislature, Regular Session, 1991, to read as follows:
 129-15        (a)  The department shall develop standards of care for the
 129-16  services provided by a local mental health or mental retardation
 129-17  authority <department facility outreach program or by a designated
 129-18  provider> and its subcontractors under this subchapter.
 129-19        (c)  In conjunction with local mental health or mental
 129-20  retardation authorities <designated providers>, the department
 129-21  shall review the standards biennially to determine if each standard
 129-22  is necessary to ensure the quality of care.
 129-23        SECTION 6.35.  Section 534.059, Health and Safety Code, is
 129-24  amended to conform to Section 10, Chapter 569, Acts of the 72nd
 129-25  Legislature, Regular Session, 1991, to read as follows:
 129-26        Sec. 534.059.  PERFORMANCE STANDARDS.  The department shall
 129-27  specify performance standards, including measures of results, to
  130-1  use in evaluating the compliance of a local mental health or mental
  130-2  retardation authority <department facility outreach program or
  130-3  designated provider> with its obligation or contract to provide
  130-4  specific services to priority populations.
  130-5        SECTION 6.36.  Section 534.060, Health and Safety Code, is
  130-6  amended to conform to Sections 9 and 10, Chapter 569, Acts of the
  130-7  72nd Legislature, Regular Session, 1991, to read as follows:
  130-8        Sec. 534.060.  PROGRAM AND SERVICE MONITORING AND REVIEW.
  130-9  (a)  The department shall develop mechanisms for monitoring the
 130-10  services provided by a local mental health or mental retardation
 130-11  authority and the authority's <department facility outreach program
 130-12  or by a designated provider and the provider's> subcontractors.
 130-13        (b)  The department shall review the program quality and
 130-14  program performance results of each local mental health or mental
 130-15  retardation authority <department facility outreach program or
 130-16  designated provider> at least once each fiscal year.  The
 130-17  department may determine the scope of each review.
 130-18        (c)  Each <designated provider> contract between a local
 130-19  mental health or mental retardation authority and the department
 130-20  must authorize the department to have unrestricted access to all
 130-21  facilities, records, data, and other information under the control
 130-22  of the local mental health or mental  retardation authority, the
 130-23  authority's subcontractors, or the designated provider <provider or
 130-24  the provider's subcontractors> as necessary to enable the
 130-25  department to audit, monitor, and review the financial and program
 130-26  activities and services associated with department funds <the
 130-27  contract>.
  131-1        SECTION 6.37.  Section 534.063, Health and Safety Code, is
  131-2  amended to conform to Section 10, Chapter 569, Acts of the 72nd
  131-3  Legislature, Regular Session, 1991, to read as follows:
  131-4        Sec. 534.063.  PEER REVIEW ORGANIZATION.  The department
  131-5  shall assist a local mental health or mental retardation authority
  131-6  <designated provider> in developing a peer review organization to
  131-7  provide self-assessment of programs and to supplement department
  131-8  reviews under Section 534.060.
  131-9        SECTION 6.38.  Subchapter B, Chapter 534, Health and Safety
 131-10  Code, is amended to conform to Section 10, Chapter 569, Acts of the
 131-11  72nd Legislature, Regular Session, 1991, by amending Sections
 131-12  534.064, 534.066, and 534.067 and adding Section 534.0675 to read
 131-13  as follows:
 131-14        Sec. 534.064.  CONTRACT RENEWAL.  The commissioner may
 131-15  <shall> refuse to renew a contract with a local mental health or
 131-16  mental retardation authority <designated provider> and may <shall>
 131-17  select other agencies, providers, or organizations to be the local
 131-18  mental health or mental retardation authority <a new designated
 131-19  provider> if the department's evaluation of the authority's
 131-20  <provider's> performance indicates that the authority <provider>
 131-21  cannot ensure the availability of the specific services to priority
 131-22  populations required by the department and this subtitle.
 131-23        Sec. 534.066.  Local Match Requirement.  (a)  The department
 131-24  shall <may> include in a contract with a local mental health or
 131-25  mental retardation authority <designated provider> a requirement
 131-26  that some or all of the state funds the authority <provider>
 131-27  receives be matched by local support in an amount or proportion
  132-1  jointly agreed to by the department and the authority's board of
  132-2  trustees and based on the authority's financial capability and its
  132-3  overall commitment to other mental health or mental retardation
  132-4  programs, as appropriate <determined by the department>.
  132-5        (b)  The department shall establish, for department facility
  132-6  outreach programs that provide community-based services required
  132-7  under this subchapter, a local match requirement that is consistent
  132-8  with the requirements applied to other local mental health or
  132-9  mental retardation authorities <designated providers>.
 132-10        (c)  <A requirement of a local match under this section must
 132-11  apply uniformly to each provider or contractor in a service area.>
 132-12        <(d)>  Patient fee income, third-party insurance income,
 132-13  services and facilities contributed by the local mental health or
 132-14  mental retardation authority <provider>, contributions by a county
 132-15  or municipality, and other locally generated contributions,
 132-16  including local tax funds, may be counted <as local support> when
 132-17  calculating the local support for a local mental health or mental
 132-18  retardation authority <share of the operating costs of a department
 132-19  facility outreach program or a designated provider>.  The
 132-20  department may disallow or reduce the value of services claimed as
 132-21  support.
 132-22        Sec. 534.067.  Fee Collection Policy.  The department shall
 132-23  establish a uniform fee collection policy for all local mental
 132-24  health or mental retardation authorities <community centers and
 132-25  other designated providers> that is equitable, provides for
 132-26  collections, and maximizes contributions to local revenue.
 132-27        Sec. 534.0675.  NOTICE OF DENIAL, REDUCTION, OR TERMINATION
  133-1  OF SERVICES.  The board by rule, in cooperation with local mental
  133-2  health and mental retardation authorities, consumers, consumer
  133-3  advocates, and service providers, shall establish a uniform
  133-4  procedure that each local mental health or mental retardation
  133-5  authority shall use to notify consumers in writing of the denial,
  133-6  involuntary reduction, or termination of services and of the right
  133-7  to appeal those decisions.
  133-8        SECTION 6.39.  Section 534.068, Health and Safety Code, is
  133-9  amended to conform to Section 12, Chapter 569, and Section 24,
 133-10  Chapter 599, Acts of the 72nd Legislature, Regular Session, 1991,
 133-11  to read as follows:
 133-12        Sec. 534.068.  Audits.  (a)  As a condition to receiving
 133-13  <contract> funds under this subtitle, a local mental health and
 133-14  mental retardation authority <the board of trustees of a community
 133-15  center or the administrative authority of a designated provider>
 133-16  other than a state facility designated as an authority <center>
 133-17  must annually submit to the department a financial and compliance
 133-18  audit prepared <have the center's or provider's accounts audited>
 133-19  by a certified public accountant or public accountant licensed by
 133-20  the Texas State Board of Public Accountancy.  To ensure the highest
 133-21  degree of independence and quality, the local mental health or
 133-22  mental retardation authority shall use an invitation-for-proposal
 133-23  process as prescribed by the department to select the auditor.
 133-24        (b)  The audit must meet the minimum requirements as shall
 133-25  be, and be in the form and in the number of copies as may be,
 133-26  prescribed by the department, subject to review and comment <and
 133-27  approved> by the state auditor.
  134-1        (c)  The local mental health or mental retardation authority
  134-2  <community center or other designated provider> shall file the
  134-3  required number of copies <a copy> of the audit report with the
  134-4  department by the date prescribed by the department.  From the
  134-5  copies filed with the department, <The center or provider shall
  134-6  also submit> copies of the report shall be submitted to the
  134-7  governor and<,> Legislative Budget Board<, and Legislative Audit
  134-8  Committee>.
  134-9        (d)  The local mental health or mental retardation authority
 134-10  <board of trustees or administrative authority> shall either
 134-11  approve or refuse to approve the audit report.  If the <board or>
 134-12  authority refuses to approve the report, the <board or> authority
 134-13  shall include with the department's copies <copy> a statement
 134-14  detailing the reasons for refusal.
 134-15        (e)  The commissioner and state auditor have access to all
 134-16  vouchers, receipts, journals, or other records the commissioner or
 134-17  auditor considers necessary to review and analyze the audit report.
 134-18        (f)  The department shall annually submit to the governor,
 134-19  Legislative Budget Board, and Legislative Audit Committee a summary
 134-20  of the significant findings identified during the department's
 134-21  reviews of fiscal audit activities.
 134-22        SECTION 6.40.  Section 534.051, Health and Safety Code, is
 134-23  repealed to conform to Section 13, Chapter 569, Acts of the 72nd
 134-24  Legislature, Regular Session, 1991.
 134-25        SECTION 6.41.  (a)  Subchapter B, Chapter 535, Health and
 134-26  Safety Code, is repealed to conform to the repeal of the law from
 134-27  which it was derived by Section 1, Article 3, Chapter 637, Acts of
  135-1  the 72nd Legislature, Regular Session, 1991.
  135-2        (b)  The subchapter heading to Subchapter A, Chapter 535,
  135-3  Health and Safety Code, is repealed to conform to Section 1,
  135-4  Article 3, Chapter 637, Acts of the 72nd Legislature, Regular
  135-5  Session, 1991.
  135-6        SECTION 6.42.  Section 571.014, Health and Safety Code, is
  135-7  amended to conform to Section 1, Chapter 567, Acts of the 72nd
  135-8  Legislature, Regular Session, 1991, by amending Subsection (c) and
  135-9  adding Subsection (d) to read as follows:
 135-10        (c)  A person may initially file a paper with the county
 135-11  clerk by the use of reproduced, photocopied, or electronically
 135-12  transmitted paper if the person files the original signed copies of
 135-13  the paper with the clerk not later than the 72nd hour after the
 135-14  hour on which the initial filing is made.  If the 72-hour period
 135-15  ends on a Saturday, Sunday, or legal holiday, the filing period is
 135-16  extended until 4 p.m. on the first succeeding business day.  If
 135-17  extremely hazardous weather conditions exist or a disaster occurs,
 135-18  the presiding judge or magistrate may by written order made each
 135-19  day extend the filing period until 4 p.m. on the first succeeding
 135-20  business day.  The written order must declare that an emergency
 135-21  exists because of the weather or the occurrence of a disaster.  If
 135-22  a person detained under this subtitle would otherwise be released
 135-23  because the original signed copy of a paper is not filed within the
 135-24  72-hour period but for the extension of the filing period under
 135-25  this section, the person may be detained until the expiration of
 135-26  the extended filing period.  This subsection does not affect
 135-27  another provision of this subtitle requiring the release or
  136-1  discharge of a person <third working day after the date on which
  136-2  the initial filing is made>.
  136-3        (d)  If the clerk does not receive the original signed copy
  136-4  of a paper within the period prescribed by this section, the judge
  136-5  may dismiss the proceeding on the court's own motion or on the
  136-6  motion of a party and, if the proceeding is dismissed, shall order
  136-7  the immediate release of a proposed patient who is not at liberty.
  136-8        SECTION 6.43.  Chapter 571, Health and Safety Code, is
  136-9  amended to conform to Section 5, Chapter 567, Acts of the 72nd
 136-10  Legislature, Regular Session, 1991, by adding Section 571.0165 to
 136-11  read as follows:
 136-12        Sec. 571.0165.  EXTENSION OF DETENTION PERIOD.  (a)  If
 136-13  extremely hazardous weather conditions exist or a disaster occurs,
 136-14  the judge of a court having jurisdiction of a proceeding under
 136-15  Chapters 572, 573, 574, and 575 or a magistrate appointed by the
 136-16  judge may by written order made each day extend the period during
 136-17  which the person may be detained under those chapters until 4 p.m.
 136-18  on the first succeeding business day.
 136-19        (b)  The written order must declare that an emergency exists
 136-20  because of the weather or the occurrence of a disaster.
 136-21        (c)  This section does not apply to a situation for which a
 136-22  specific procedure is prescribed by this subtitle for extending the
 136-23  detention period because of extremely hazardous weather conditions
 136-24  or the occurrence of a disaster.
 136-25        SECTION 6.44.  Section 571.018(g), Health and Safety Code, is
 136-26  amended to conform to Section 2, Chapter 567, Acts of the 72nd
 136-27  Legislature, Regular Session, 1991, to read as follows:
  137-1        (g)  The state or a county may not pay any costs for a
  137-2  patient committed to a private mental hospital unless:
  137-3              (1)  a public facility is not available; and
  137-4              (2)  the commissioners court of the county authorizes
  137-5  the payment, if appropriate.
  137-6        SECTION 6.45.  Section 571.020(a), Health and Safety Code, is
  137-7  amended to conform to Section 3, Chapter 567, Acts of the 72nd
  137-8  Legislature, Regular Session, 1991, to read as follows:
  137-9        (a)  A person commits an offense if the person intentionally
 137-10  causes, conspires with another to cause, or assists another to
 137-11  cause the unwarranted commitment of a person to a mental health
 137-12  facility.  An offense under this subsection is a misdemeanor
 137-13  punishable by a fine of not more than $5,000, confinement in the
 137-14  county jail for not more than one year <two years>, or both.
 137-15        SECTION 6.46.  Section 572.004, Health and Safety Code, is
 137-16  amended to conform to Section 4, Chapter 567, Acts of the 72nd
 137-17  Legislature, Regular Session, 1991, by amending Subsection (a) and
 137-18  adding Subsection (e) to read as follows:
 137-19        (a)  Except as provided by Subsections <Subsection> (b) and
 137-20  (e), a voluntary patient is entitled to leave an inpatient mental
 137-21  health facility within 96 hours after the time a written request
 137-22  for release is filed with the facility administrator or the
 137-23  administrator's designee.  The request must be signed by the
 137-24  patient or a person responsible for the patient's admission.
 137-25        (e)  If extremely hazardous weather conditions exist or a
 137-26  disaster occurs, the facility administrator may request the judge
 137-27  of a court that has jurisdiction over proceedings brought under
  138-1  Chapter 574 to extend the period during which the patient may be
  138-2  detained.  The judge or a magistrate appointed by the judge may by
  138-3  written order made each day extend the period during which the
  138-4  patient may be detained until 4 p.m. on the first succeeding
  138-5  business day.  The written order must declare that an emergency
  138-6  exists because of the weather or the occurrence of a disaster.
  138-7        SECTION 6.47.  Subchapter A, Chapter 574, Health and Safety
  138-8  Code, is amended to conform to Section 1, Chapter 619, Acts of the
  138-9  72nd Legislature, Regular Session, 1991, by adding Section 574.0085
 138-10  to read as follows:
 138-11        Sec. 574.0085.  MASTERS.  (a)  The county judge may appoint a
 138-12  full-time or a part-time master to preside over the proceedings for
 138-13  court-ordered mental health services if the commissioners court of
 138-14  a county in which the court has jurisdiction authorizes the
 138-15  employment of a master.
 138-16        (b)  To be eligible for appointment as a master, a person
 138-17  must be a resident of this state and have been licensed to practice
 138-18  law in this state for at least four years.
 138-19        (c)  A master shall be paid as determined by the
 138-20  commissioners court of the county in which the master serves.  If a
 138-21  master serves in more than one county, the master shall be paid as
 138-22  determined by agreement of the commissioners courts of the counties
 138-23  in which the master serves.  The master may be paid from county
 138-24  funds available for payment of officers' salaries.
 138-25        (d)  A master who serves a single court serves at the will of
 138-26  the judge of that court.  The services of a master who serves more
 138-27  than two courts may be terminated by a majority vote of all the
  139-1  judges of the courts the master serves.  The services of a master
  139-2  who serves two courts may be terminated by either of the judges of
  139-3  the courts the master serves.
  139-4        (e)  To refer cases to a master, the referring court must
  139-5  issue an order of referral.  The order of referral may limit the
  139-6  power or duties of a master.
  139-7        (f)  Except as limited by an order of referral, masters
  139-8  appointed under this section have all the powers and duties set
  139-9  forth in Section 54.007, Government Code.
 139-10        (g)  A bailiff may attend a hearing held by a master if
 139-11  directed by the referring court.
 139-12        (h)  A witness appearing before a master is subject to the
 139-13  penalties for perjury provided by law.  A referring court may issue
 139-14  attachment against and may fine or imprison a witness whose failure
 139-15  to appear before a master after being summoned or whose refusal to
 139-16  answer questions has been certified to the court.
 139-17        (i)  At the conclusion of any hearing conducted by a master
 139-18  and on the preparation of a master's report, the master shall
 139-19  transmit to the referring court all papers relating to the case,
 139-20  with the master's signed and dated report.  After the master's
 139-21  report has been signed, the master shall give to the parties
 139-22  participating in the hearing notice of the substance of the report.
 139-23  The master's report may contain the master's findings, conclusions,
 139-24  or recommendations.  The master's report must be in writing in a
 139-25  form as the referring court may direct.  The form may be a notation
 139-26  on the referring court's docket sheet.  After the master's report
 139-27  is filed, the referring court may adopt, approve, or reject the
  140-1  master's report, hear further evidence, or recommit the matter for
  140-2  further proceedings as the referring court considers proper and
  140-3  necessary in the particular circumstances of the case.
  140-4        (j)  If a jury trial is demanded or required, the master
  140-5  shall refer the entire matter back to the referring court for
  140-6  trial.
  140-7        (k)  A master appointed under this section has the judicial
  140-8  immunity of a county judge.
  140-9        (l)  A master appointed in accordance with this section shall
 140-10  comply with the Code of Judicial Conduct in the same manner as the
 140-11  county judge.
 140-12        SECTION 6.48.  Section 574.009(d), Health and Safety Code, is
 140-13  amended to conform to Section 6, Chapter 567, Acts of the 72nd
 140-14  Legislature, Regular Session, 1991, to read as follows:
 140-15        (d)  If the certificates required under this section are not
 140-16  on file at the time set for the hearing on the application, the
 140-17  judge shall dismiss the application and order the immediate release
 140-18  of the proposed patient if that person is not at liberty.  If
 140-19  extremely hazardous weather conditions exist or a disaster occurs,
 140-20  the presiding judge or magistrate may by written order made each
 140-21  day extend the period during which the two certificates of medical
 140-22  examination for mental illness may be filed, and the person may be
 140-23  detained until 4 p.m. on the first succeeding business day.  The
 140-24  written order must declare that an emergency exists because of the
 140-25  weather or the occurrence of a disaster.
 140-26        SECTION 6.49.  Section 574.034(d), Health and Safety Code, is
 140-27  amended to conform to Section 7, Chapter 567, Acts of the 72nd
  141-1  Legislature, Regular Session, 1991, and to conform more closely to
  141-2  the source law from which it was derived to read as follows:
  141-3        (d)  The proposed patient and <or> the proposed patient's
  141-4  attorney, by a written document filed with the court, may waive the
  141-5  right to cross-examine witnesses, and, if that right is waived, the
  141-6  court may admit, as evidence, the certificates of medical
  141-7  examination for mental illness.  The certificates admitted under
  141-8  this subsection constitute competent medical or psychiatric
  141-9  testimony, and the court may make its findings solely from the
 141-10  certificates.  If the proposed patient and the proposed patient's
 141-11  attorney do not waive in writing the right to cross-examine
 141-12  witnesses, the court shall proceed to hear testimony.  The
 141-13  testimony must include competent medical or psychiatric testimony.
 141-14  In addition, the court may consider the testimony of a nonphysician
 141-15  mental health professional as provided by Section 574.031(f).
 141-16        SECTION 6.50.  Section 574.044, Health and Safety Code, is
 141-17  amended to correct a reference to read as follows:
 141-18        Sec. 574.044.  COMMITMENT TO FACILITY OF THE INSTITUTIONAL
 141-19  DIVISION OF THE TEXAS DEPARTMENT OF CRIMINAL JUSTICE.  The court
 141-20  shall commit an inmate patient to an inpatient mental health
 141-21  facility of the institutional division of the Texas Department of
 141-22  Criminal Justice if the court enters an order requiring temporary
 141-23  mental health services for the inmate patient under an application
 141-24  filed by a psychiatrist for the institutional division under
 141-25  Section 501.057 <500.057>, Government Code.
 141-26        SECTION 6.51.  Section 576.008, Health and Safety Code, is
 141-27  amended to conform more closely to the source law from which it was
  142-1  derived to read as follows:
  142-2        Sec. 576.008.  NOTIFICATION OF PROTECTION AND ADVOCACY
  142-3  SYSTEM.  A patient shall be informed in writing, at the time of
  142-4  admission and <or> discharge, of the existence, purpose, telephone
  142-5  number, and address of the protection and advocacy system
  142-6  established in this state under the federal Protection and Advocacy
  142-7  for Mentally Ill Individuals Act of 1986 (42 U.S.C. Sec. 10801, et
  142-8  seq.).
  142-9        SECTION 6.52.  Sections 614.001(4)-(8), Health and Safety
 142-10  Code, are amended to conform to Section 1, Chapter 566, Acts of the
 142-11  72nd Legislature, Regular Session, 1991, to read as follows:
 142-12              (4)  "Developmental disability" means a <condition of>
 142-13  severe, chronic disability that:
 142-14                    (A)  is attributable to a mental or physical
 142-15  impairment or a combination of physical and mental impairments;
 142-16                    (B)  is manifested before the person reaches 22
 142-17  years of age;
 142-18                    (C)  is likely to continue indefinitely;
 142-19                    (D)  results in substantial functional
 142-20  limitations in three or more of the following areas of major life
 142-21  activity:
 142-22                          (i)  self-care;
 142-23                          (ii)  self-direction;
 142-24                          (iii)  learning;
 142-25                          (iv)  receptive and expressive language;
 142-26                          (v)  mobility;
 142-27                          (vi)  capacity for independent living; or
  143-1                          (vii)  economic self-sufficiency; and
  143-2                    (E)  reflects the person's need for a combination
  143-3  and sequence of special, interdisciplinary, or generic care,
  143-4  treatment, or other services of extended or lifelong duration that
  143-5  are individually planned and coordinated.
  143-6              (5)  "Mental illness" has the meaning assigned by
  143-7  Section 571.003 <means an illness, disease, or condition that:>
  143-8                    <(A)  substantially impairs a person's thought,
  143-9  perception of reality, emotional process, or judgment; or>
 143-10                    <(B)  grossly impairs a person's behavior, as
 143-11  shown by recent disturbed behavior>.
 143-12              (6)  "Mental retardation" has the meaning assigned by
 143-13  Section 591.003 <means significantly subaverage intellectual
 143-14  functioning that originated during the developmental period and
 143-15  exists concurrently with deficits in adaptive behavior>.
 143-16              (7)  "Offender with a mental impairment" means a
 143-17  juvenile or adult <person> with mental illness, mental retardation,
 143-18  or a developmental disability who is arrested or charged with a
 143-19  criminal offense.
 143-20              (8)  "Person with mental retardation" means a juvenile
 143-21  or adult <person> with mental retardation that is not a mental
 143-22  disorder who, because of the mental deficit, requires special
 143-23  training, education, supervision, treatment, care, or control in
 143-24  the person's home or community or in a private or state school for
 143-25  persons with mental retardation.
 143-26        SECTION 6.53.  (a)  Sections 614.002, 614.005, 614.007, and
 143-27  614.008, Health and Safety Code, are amended to conform to Section
  144-1  1, Chapter 566, Acts of the 72nd Legislature, Regular Session,
  144-2  1991, and Section 1.03, Chapter 10, Acts of the 72nd Legislature,
  144-3  2nd Called Session, 1991, to read as follows:
  144-4        Sec. 614.002.  COMPOSITION OF COUNCIL.  (a)  The Texas
  144-5  Council on Offenders with Mental Impairments is composed of 29 <28>
  144-6  members.
  144-7        (b)  The governor shall appoint, with the advice and consent
  144-8  of the senate: <nine at-large members to serve on the council.>
  144-9              (1)  four at-large members who have expertise in mental
 144-10  health, mental retardation, or developmental disabilities, one of
 144-11  whom must be a psychiatrist;
 144-12              (2)  one at-large member who is the judge of a court
 144-13  with criminal jurisdiction;
 144-14              (3)  one at-large member who is a prosecuting attorney;
 144-15              (4)  one at-large member who is a criminal defense
 144-16  attorney;
 144-17              (5)  one at-large member from an established pretrial
 144-18  services agency; and
 144-19              (6)  one at-large member who has expertise in the
 144-20  criminal justice system.
 144-21        (c)  The executive head of each of the following agencies,
 144-22  divisions of agencies, or associations, or that person's designated
 144-23  representative, shall serve as a member of the council:
 144-24              (1)  the institutional division of the Texas Department
 144-25  of Criminal Justice;
 144-26              (2)  the Texas Department of Mental Health and Mental
 144-27  Retardation;
  145-1              (3)  the pardons and paroles division of the Texas
  145-2  Department of Criminal Justice;
  145-3              (4)  the community justice assistance division of the
  145-4  Texas Department of Criminal Justice;
  145-5              (5)  the Texas Juvenile Probation Commission;
  145-6              (6)  the Texas Youth Commission;
  145-7              (7)  the Texas Rehabilitation Commission;
  145-8              (8)  the Central Education Agency;
  145-9              (9)  the Criminal Justice Policy Council;
 145-10              (10)  the Mental Health Association in Texas;
 145-11              (11)  the Texas Commission on Alcohol and Drug Abuse;
 145-12              (12)  the Commission on Law Enforcement Officer
 145-13  Standards and Education;
 145-14              (13)  the Texas Council of Community Mental Health and
 145-15  Mental Retardation Centers;
 145-16              (14)  the Commission on Jail Standards;
 145-17              (15)  the Texas Planning Council for Developmental
 145-18  Disabilities;
 145-19              (16)  the Texas Association for Retarded Citizens;
 145-20              (17)  the Texas Alliance for the Mentally Ill;
 145-21              (18)  the Parent Association for the Retarded of Texas,
 145-22  Inc.; <and>
 145-23              (19)  the Texas Department of Human Services; and
 145-24              (20)  the Texas Department on Aging.
 145-25        (d)  In making the appointments under Subsection (b), the
 145-26  governor shall attempt to reflect the geographic and economic
 145-27  diversity of the state.
  146-1        (e)  It is a ground for removal if an at-large member:
  146-2              (1)  is not eligible for appointment at the time of
  146-3  appointment as provided by Subsections (b) and (g);
  146-4              (2)  is absent from more than half of the regularly
  146-5  scheduled council meetings that the member is eligible to attend
  146-6  during each calendar year; or
  146-7              (3)  is absent from more than two consecutive regularly
  146-8  scheduled council meetings that the member is eligible to attend.
  146-9        (f)  A representative designated by the executive head of a
 146-10  state agency must be an officer or employee of the agency when
 146-11  designated and while serving on the council, except the
 146-12  representative designated by the director of the Criminal Justice
 146-13  Policy Council must be an employee of that council.
 146-14        (g)  Members who are not associated with a state agency or
 146-15  division <(e)  At-large members of the council and members
 146-16  representing associations> must have expertise in the
 146-17  rehabilitation of persons with mental illness, mental retardation,
 146-18  or a developmental disability when appointed or designated and
 146-19  while serving on the council.
 146-20        Sec. 614.005.  OFFICERS; MEETINGS.  (a)  The council shall
 146-21  elect a presiding officer <chairman> from its members at the first
 146-22  meeting of each calendar year.
 146-23        (b)  The council shall meet at least four times each year and
 146-24  may meet at other times at the call of the presiding officer
 146-25  <chairman> or as provided by council rule.
 146-26        Sec. 614.007.  POWERS AND DUTIES.  The council shall:
 146-27              (1)  determine the status of offenders with mental
  147-1  impairments in the state criminal justice system;
  147-2              (2)  identify needed services for offenders with mental
  147-3  impairments;
  147-4              (3)  develop a plan for meeting the treatment,
  147-5  rehabilitative, and educational needs of offenders with mental
  147-6  impairments that includes a case management system and the
  147-7  development of community-based alternatives to incarceration;
  147-8              (4)  cooperate in coordinating procedures of
  147-9  represented agencies for the orderly provision of services for
 147-10  offenders with mental impairments;
 147-11              (5)  evaluate programs in this state and outside this
 147-12  state for offenders with mental impairments and recommend to the
 147-13  directors of state programs methods of improving the programs;
 147-14              (6)  collect and disseminate information about
 147-15  available programs to judicial officers, law enforcement officers,
 147-16  probation and parole officers, providers of social services or
 147-17  treatment, and the public;
 147-18              (7)  provide technical assistance to represented
 147-19  agencies and organizations in the development of appropriate
 147-20  training programs;
 147-21              (8)  apply for and receive money made available by the
 147-22  federal or state government or by any other public or private
 147-23  source to be used by the council to perform its duties;
 147-24              (9)  distribute to political subdivisions, private
 147-25  organizations, or other persons money appropriated by the
 147-26  legislature to be used for the development, operation, or
 147-27  evaluation of programs for offenders with mental impairments;
  148-1              (10)  develop and implement pilot projects to
  148-2  demonstrate a cooperative program to identify, evaluate, and manage
  148-3  outside of incarceration offenders with mental impairments who do
  148-4  not have an instant offense that is an offense described in Section
  148-5  3g, Article 42.12, Code of Criminal Procedure; and
  148-6              (11)  assess the need for demonstration projects and
  148-7  provide management for approved projects.
  148-8        Sec. 614.008.  PILOT PROGRAM.  (a)  The council shall
  148-9  establish a pilot program in a county selected by the council to
 148-10  implement a cooperative community-based alternative system to
 148-11  divert <nonviolent mentally or emotionally impaired offenders> from
 148-12  the state criminal justice system offenders with mental impairments
 148-13  who do not have an instant offense that is an offense described in
 148-14  Section 3g, Article 42.12, Code of Criminal Procedure, and to
 148-15  rehabilitate those offenders.
 148-16        (b)  The program must conform to the report and
 148-17  recommendations made by the Texas Department of Mental Health and
 148-18  Mental Retardation and the Texas Department of Corrections to the
 148-19  70th Legislature as directed by S.C.R. No.  128, 69th Legislature,
 148-20  Regular Session, 1985.
 148-21        (c)  The council may contract for or employ and train a case
 148-22  management team to carry out the purposes of the program and to
 148-23  coordinate the joint efforts of agencies represented on the
 148-24  council.
 148-25        (d)  The agencies represented on the council shall perform
 148-26  duties and offer services as required by the council to further the
 148-27  purposes of the pilot program and the council.
  149-1        (b)  Section 614.010, Health and Safety Code, is repealed.
  149-2        SECTION 6.54.  The following provisions of the Acts of the
  149-3  72nd Legislature, Regular Session, 1991, are repealed:
  149-4              (1)  Chapter 248;
  149-5              (2)  Chapter 379;
  149-6              (3)  Chapter 566;
  149-7              (4)  Sections 1-7, Chapter 567;
  149-8              (5)  Chapter 569;
  149-9              (6)  Chapter 596;
 149-10              (7)  Section 24, Chapter 599;
 149-11              (8)  Chapter 619; and
 149-12              (9)  Section 6, Chapter 627.
 149-13         ARTICLE 7.  CHANGES RELATING TO HUMAN RESOURCES CODE
 149-14        SECTION 7.01.  (a)  Title 9, Human Resources Code, is amended
 149-15  to codify Section 5.04, Chapter 15, Acts of the 72nd Legislature,
 149-16  1st Called Session, 1991 (Article 4413(701), Revised Statutes), by
 149-17  adding Chapter 131 to read as follows:
 149-18        CHAPTER 131.  HEALTH AND HUMAN SERVICES TRANSPORTATION
 149-19                          AND PLANNING OFFICE
 149-20        Sec. 131.001.  OFFICE.  The Health and Human Services
 149-21  Transportation and Planning Office is in the governor's office.
 149-22        Sec. 131.002.  POWERS AND DUTIES.  The office shall:
 149-23              (1)  collect data on health and human services client
 149-24  transportation needs, services, and expenditures;
 149-25              (2)  create a statewide coordination plan regarding a
 149-26  system of transportation for clients of health and human services
 149-27  agencies, including the designation of local transportation
  150-1  coordinators;
  150-2              (3)  establish standards of reporting and accounting
  150-3  methods for all agencies providing health and human services client
  150-4  transportation;
  150-5              (4)  maximize federal funds for client transportation
  150-6  through the use of available state funds for matching purposes and
  150-7  the possible use of oil overcharge money and planning funds
  150-8  available through the federal department of transportation;
  150-9              (5)  evaluate the effectiveness of pooling client
 150-10  transportation resources for capital acquisition and the joint
 150-11  purchase of liability insurance;
 150-12              (6)  assist state agencies in coordinating
 150-13  transportation resources;
 150-14              (7)  ensure coordination between the office and the
 150-15  Texas Department of Transportation with regard to the use of funds
 150-16  received by the department under 49 U.S.C. Section 1612(b)(1);
 150-17              (8)  examine the feasibility of consolidating all
 150-18  funding for health and human services client transportation and
 150-19  creating a transportation system through which clients of a state
 150-20  or local agency or program could be matched with the most
 150-21  cost-effective and appropriate transportation services for their
 150-22  needs; and
 150-23              (9)  evaluate the use of existing computer software for
 150-24  use at the local level in client transportation services.
 150-25        Sec. 131.003.  OFFICE STAFF.  The governor shall employ staff
 150-26  needed to carry out the duties of the office.
 150-27        (b)  Article 4413(701), Revised Statutes, is repealed.
  151-1         ARTICLE 8.  CHANGES RELATING TO LOCAL GOVERNMENT CODE
  151-2        SECTION 8.01.  (a)  Subtitle B, Title 7, Local Government
  151-3  Code, is amended to codify Section 1, Chapter 881, Acts of the 72nd
  151-4  Legislature, Regular Session, 1991 (Article 2372dd-2, Revised
  151-5  Statutes), by adding Chapter 238 to read as follows:
  151-6     CHAPTER 238.  COUNTY REGULATION OF CERTAIN OUTDOOR BUSINESSES
  151-7        Sec. 238.001.  DEFINITIONS.  In this chapter:
  151-8              (1)  "Automotive wrecking and salvage yard" means a
  151-9  business that stores three or more wrecked vehicles outdoors for
 151-10  the purpose of dismantling or otherwise wrecking the vehicles to
 151-11  remove parts for sale or for use in an automotive repair or
 151-12  rebuilding business.
 151-13              (2)  "Demolition business" means a business that
 151-14  demolishes structures, including houses and other buildings, in
 151-15  order to salvage building materials and that stores those materials
 151-16  before disposing of them.
 151-17              (3)  "Flea market" means an outdoor market for selling
 151-18  secondhand articles or antiques.
 151-19              (4)  "Junkyard" means a business that stores, buys, or
 151-20  sells materials that have been discarded or sold at a nominal price
 151-21  by a previous owner and that keeps all or part of the materials
 151-22  outdoors until disposing of them.
 151-23              (5)  "Outdoor resale business" means a business that
 151-24  sells used merchandise, other than automobiles, logging equipment,
 151-25  or other agricultural equipment, and stores or displays the
 151-26  merchandise outdoors.
 151-27              (6)  "Recycling business" means a business that is
  152-1  primarily engaged in:
  152-2                    (A)  converting ferrous or nonferrous metals or
  152-3  other materials into raw material products having prepared grades
  152-4  and having an existing or potential economic value;
  152-5                    (B)  using raw material products of that kind in
  152-6  the production of new products; or
  152-7                    (C)  obtaining or storing ferrous or nonferrous
  152-8  metals or other materials for a purpose described by Paragraph (A)
  152-9  or (B).
 152-10        Sec. 238.002.  AUTHORITY TO REGULATE; ADOPTION OF RULE.  (a)
 152-11  The commissioners court of a county by order may establish visual
 152-12  aesthetic standards for automotive wrecking and salvage yards,
 152-13  junkyards, recycling businesses, flea markets, demolition
 152-14  businesses, and outdoor resale businesses in the unincorporated
 152-15  area of the county.
 152-16        (b)  The commissioners court may not include in an order
 152-17  adopted under this section a screening requirement for an
 152-18  automotive wrecking and salvage yard or a junkyard that is less
 152-19  restrictive than the screening requirement under Chapter 953, Acts
 152-20  of the 70th Legislature, Regular Session, 1987 (Article 2372dd-1,
 152-21  Vernon's Texas Civil Statutes).
 152-22        (c)  An order adopted under this section must provide a
 152-23  reasonable period of time not to exceed 12 months for a business
 152-24  operating on the effective date of the order to comply with the
 152-25  visual aesthetic standards.
 152-26        Sec. 238.003.  EXCEPTIONS.  (a)  A commissioners court may
 152-27  not regulate under this chapter farm machinery owned or operated by
  153-1  the person on whose property the machinery is located and kept on
  153-2  that property for purposes other than sale.
  153-3        (b)  A business subject to a screening requirement under
  153-4  Chapter 886, Acts of the 68th Legislature, Regular Session, 1983
  153-5  (Article 2372dd, Vernon's Texas Civil Statutes), Chapter 953, Acts
  153-6  of the 70th Legislature, Regular Session, 1987 (Article 2372dd-1,
  153-7  Vernon's Texas Civil Statutes), or Section 4.08, Chapter 741, Acts
  153-8  of the 67th Legislature, Regular Session, 1981 (Article 4477-9a,
  153-9  Vernon's Texas Civil Statutes), that was in compliance with that
 153-10  screening requirement on August 26, 1991, is exempt from a
 153-11  screening requirement adopted under this chapter.
 153-12        Sec. 238.004.  CIVIL PENALTY.  (a)  The appropriate attorney
 153-13  representing the county in civil cases may file a civil action to
 153-14  recover a civil penalty from a business that violates a visual
 153-15  aesthetic standard  established under this chapter.  The penalty
 153-16  may not exceed $50 each day for the first 10 days of the violation,
 153-17  $100 each day for the next 10 days, $250 each day for the next 10
 153-18  days, and $1,000 for each day thereafter.  In determining the
 153-19  amount of the penalty, the court shall consider the seriousness of
 153-20  the violation.
 153-21        (b)  A penalty recovered under this section shall be
 153-22  deposited in the general fund of the county.
 153-23        (b)  Article 2372dd-2, Revised Statutes, is repealed.
 153-24        SECTION 8.02.  Section 332.004(c), Local Government Code, as
 153-25  added by Chapter 807, Acts of the 72nd Legislature, Regular
 153-26  Session, 1991, is renumbered as Section 445.022, Local Government
 153-27  Code, to relocate that law to a more appropriate chapter of the
  154-1  Local Government Code.
  154-2                         ARTICLE 9.  REPEALER
  154-3        SECTION 9.01.  Section 9, Chapter 114, Acts of the 69th
  154-4  Legislature, Regular Session, 1985 (Article 326k-89, Vernon's Texas
  154-5  Civil Statutes), is repealed as duplicative of Section 46.005,
  154-6  Government Code, which applies to the Anderson County criminal
  154-7  district attorney.
  154-8        SECTION 9.02.  Chapter 1, page 328, General Laws, Acts of the
  154-9  46th Legislature, 1939 (Article 3923a, Vernon's Texas Civil
 154-10  Statutes), is repealed as impliedly repealed by subsequent
 154-11  amendments to former Article 3923, Revised Statutes, codified as
 154-12  Section 51.005, Government Code.
 154-13                       ARTICLE 10.  RENUMBERING
 154-14        SECTION 10.01.  The following provisions of enacted codes are
 154-15  renumbered or relettered and appropriate cross-references are
 154-16  changed in order to eliminate duplicate citations or to relocate
 154-17  misplaced provisions:
 154-18              (1)  Subsection (c), Section 11, Article 42.12, Code of
 154-19  Criminal Procedure, as added by Section 1, Chapter 285, Acts of the
 154-20  72nd Legislature, Regular Session, 1991, is relettered as
 154-21  Subsection (d), Section 11, Article 42.12, Code of Criminal
 154-22  Procedure.
 154-23              (2)  Subchapter N, Chapter 51, Education Code, as added
 154-24  by Chapter 772, Acts of the 70th Legislature, Regular Session,
 154-25  1987, is relettered as Subchapter O, Chapter 51, Education Code.
 154-26              (3)  Subchapter N, Chapter 51, Education Code, as added
 154-27  by Chapter 44, Acts of the 70th Legislature, Regular Session, 1987,
  155-1  is relettered as Subchapter P, Chapter 51, Education Code.
  155-2              (4)  Subchapter O, Chapter 51, Education Code, as added
  155-3  by Chapter 1084, Acts of the 71st Legislature, Regular Session,
  155-4  1989, is relettered as Subchapter Q, Chapter 51, Education Code.
  155-5              (5)  Subsection (i), Section 53.009, Government Code,
  155-6  as added by Section 5, Chapter 819, Acts of the 72nd Legislature,
  155-7  Regular Session, 1991, is relettered as Subsection (j), Section
  155-8  53.009, Government Code.
  155-9              (6)  Subchapter L, Chapter 403, Government Code, as
 155-10  added by Section 3.061(a), Chapter 5, Acts of the 72nd Legislature,
 155-11  1st Called Session, 1991, is relettered as Subchapter M, Chapter
 155-12  403, Government Code.
 155-13              (7)  Section 825.507, Government Code, as added by
 155-14  Section 29, Chapter 13, Acts of the 72nd Legislature, 1st Called
 155-15  Session, 1991, is renumbered as Section 825.508, Government Code.
 155-16              (8)  Subchapter I, Chapter 161, Health and Safety Code,
 155-17  as added by Chapter 695, Acts of the 72nd Legislature, Regular
 155-18  Session, 1991, is relettered as Subchapter J, Chapter 161, Health
 155-19  and Safety Code.
 155-20              (9)  Section 91.110, Natural Resources Code, as added
 155-21  by Section 13, Chapter 603, Acts of the 72nd Legislature, Regular
 155-22  Session, 1991, is renumbered as Section 91.114, Natural Resources
 155-23  Code.
 155-24              (10)  Subchapter L, Chapter 43, Parks and Wildlife
 155-25  Code, as added by Chapter 640, Acts of the 69th Legislature,
 155-26  Regular Session, 1985, is relettered as Subchapter M, Chapter 43,
 155-27  Parks and Wildlife Code.
  156-1              (11)  Subchapter M, Chapter 43, Parks and Wildlife
  156-2  Code, is relettered as Subchapter N, Chapter 43, Parks and Wildlife
  156-3  Code.
  156-4              (12)  Subchapter N, Chapter 43, Parks and Wildlife
  156-5  Code, as added by Chapter 883, Acts of the 72nd Legislature,
  156-6  Regular Session, 1991, is relettered as Subchapter O, Chapter 43,
  156-7  Parks and Wildlife Code.
  156-8              (13)  Subchapter N, Chapter 43, Parks and Wildlife
  156-9  Code, as added by Chapter 586, Acts of the 72nd Legislature,
 156-10  Regular Session, 1991, is relettered as Subchapter P, Chapter 43,
 156-11  Parks and Wildlife Code.
 156-12        SECTION 10.02.  If the number, letter, or designation
 156-13  assigned by this article conflicts with a number, letter, or
 156-14  designation assigned by another Act of the 73rd Legislature, the
 156-15  other Act controls, and the number, letter, or designation assigned
 156-16  by this article has no effect.
 156-17                        ARTICLE 11.  EMERGENCY
 156-18        SECTION 11.01.  The importance of this legislation and the
 156-19  crowded condition of the calendars in both houses create an
 156-20  emergency   and   an   imperative   public   necessity   that   the
 156-21  constitutional rule requiring bills to be read on three several
 156-22  days in each house be suspended, and this rule is hereby suspended.