1-1 AN ACT
1-2 relating to conforming the statutes to reflect the abolishment of
1-3 the office of state treasurer.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. CHANGES TO ALCOHOLIC BEVERAGE CODE
1-6 SECTION 1.01. Section 5.441(a), Alcoholic Beverage Code, is
1-7 amended to read as follows:
1-8 (a) If a member of the commission, the administrator, or an
1-9 employee of the commission is called to attend a federal or state
1-10 judicial proceeding inside or outside the state and the attendance
1-11 relates to the individual's duties with the commission, the
1-12 individual shall pay to the comptroller [state treasurer] any
1-13 witness fees he receives. The comptroller [treasurer] shall
1-14 deposit the fees in the state treasury to the credit of an
1-15 appropriation made to the commission for payment of fees and
1-16 mileage of witnesses called by the commission.
1-17 SECTION 1.02. Section 11.35, Alcoholic Beverage Code, is
1-18 amended to read as follows:
1-19 Sec. 11.35. Payment of Fee. Each permit application must be
1-20 accompanied by a cashier's check or money order for the amount of
1-21 the state fee, payable to the order of the comptroller [state
1-22 treasurer].
1-23 SECTION 1.03. Section 201.06(a), Alcoholic Beverage Code, is
1-24 amended to read as follows:
2-1 (a) The tax on liquor, levied and computed under this
2-2 subchapter, shall be paid by a remittance payable to the
2-3 comptroller [state treasurer] and forwarded together with any
2-4 required sworn statement of taxes due to the commission in Austin
2-5 on or before the date it is due.
2-6 SECTION 1.04. Section 201.48, Alcoholic Beverage Code, is
2-7 amended to read as follows:
2-8 Sec. 201.48. Payment. The tax on ale and malt liquor shall
2-9 be paid by a remittance payable to the comptroller [state
2-10 treasurer] and forwarded, together with any required sworn
2-11 statements of taxes due, to the commission in Austin on or before
2-12 the date it is due. A discount of two percent of the amount due
2-13 shall be withheld by the permittee or licensee for keeping records,
2-14 furnishing bonds, and properly accounting for the remittance of the
2-15 tax due. No discount is permitted if the tax is delinquent at the
2-16 time of payment.
2-17 SECTION 1.05. Section 201.97(b), Alcoholic Beverage Code, is
2-18 amended to read as follows:
2-19 (b) On requisition of the commission, the tax stamps shall
2-20 be printed under the direction of the General Services Commission
2-21 [board of control] and furnished to the comptroller [state
2-22 treasurer], who shall furnish the tax stamps only to holders of
2-23 medicinal permits in this state.
2-24 SECTION 1.06. Section 203.10, Alcoholic Beverage Code, is
2-25 amended to read as follows:
2-26 Sec. 203.10. Payment of Taxes; Discount. The tax on beer
2-27 shall be paid by a remittance payable to the comptroller [state
3-1 treasurer] and forwarded with any required sworn statements of
3-2 taxes due to the commission in Austin on or before the due date. A
3-3 discount of two percent of the amount due shall be withheld by the
3-4 permittee or licensee for keeping records, furnishing bonds, and
3-5 properly accounting for the remittance of the tax due. No discount
3-6 is permitted if the tax is delinquent at the time of payment.
3-7 ARTICLE 2. CHANGES TO AGRICULTURE CODE
3-8 SECTION 2.01. Section 14.023, Agriculture Code, is amended
3-9 to read as follows:
3-10 Sec. 14.023. Termination of Storage. (a) A warehouseman
3-11 desiring to terminate the storage of grain in the warehouseman's
3-12 warehouse, including grain that is abandoned or is unclaimed prior
3-13 to the sale of a warehouse, shall do so in accordance with Sections
3-14 7.206 and 7.210, Business & Commerce Code, except that the
3-15 warehouseman is not required to hold the balance of the proceeds of
3-16 a sale, but may transfer the balance to the comptroller [state
3-17 treasurer], who shall treat the money in the same manner as an
3-18 escheated bank account.
3-19 (b) A purchaser in good faith of grain sold under Section
3-20 7.210, Business & Commerce Code, takes the grain free of any rights
3-21 of the holder of the receipt, but the receipt is evidence of
3-22 entitlement to the escheated funds deposited with the comptroller
3-23 [state treasurer] under Subsection (a) of this section.
3-24 SECTION 2.02. Sections 44.007(f), (g), (h), and (i),
3-25 Agriculture Code, are amended to read as follows:
3-26 (f) After reviewing each linked deposit loan application,
3-27 the board shall recommend to the comptroller [state treasurer] the
4-1 acceptance or rejection of the application.
4-2 (g) After acceptance of the application, the comptroller
4-3 [state treasurer] shall place a linked deposit with the applicable
4-4 eligible lending institution for the period the comptroller
4-5 [treasurer] considers appropriate. The comptroller [state
4-6 treasurer] may not place a deposit for a period extending beyond
4-7 the state fiscal biennium in which it is placed. Subject to the
4-8 limitation described by Section 44.010 of this chapter, the
4-9 comptroller [treasurer] may place time deposits at an interest rate
4-10 described by Section 44.001(5)(A) of this chapter, notwithstanding
4-11 any order of the State Depository Board to the contrary.
4-12 (h) Before the placing of a linked deposit, the eligible
4-13 lending institution and the state, represented by the comptroller
4-14 [state treasurer] and the board, shall enter into a written deposit
4-15 agreement containing the conditions on which the linked deposit is
4-16 made.
4-17 (i) If a lending institution holding linked deposits ceases
4-18 to be a state depository, the comptroller [state treasurer] may
4-19 withdraw the linked deposits.
4-20 SECTION 2.03. Section 44.008(b), Agriculture Code, is
4-21 amended to read as follows:
4-22 (b) The board shall monitor compliance with this chapter and
4-23 inform the comptroller [state treasurer] of noncompliance on the
4-24 part of an eligible lending institution.
4-25 SECTION 2.04. Sections 58.032(c) and (f), Agriculture Code,
4-26 are amended to read as follows:
4-27 (c) The board may provide for the establishment and
5-1 maintenance of separate accounts within the Texas agricultural
5-2 fund, including program accounts as prescribed by the board, an
5-3 interest and sinking account, a reserve account, and other accounts
5-4 provided for by the board in its resolutions. Repayments of
5-5 financial assistance under any program funded in whole or in part
5-6 with the proceeds of any series of general obligation bonds shall
5-7 be deposited first in the interest and sinking account as
5-8 prescribed by the board's resolutions authorizing such series of
5-9 general obligation bonds, and second in the reserve account in
5-10 respect of such series of general obligation bonds until that
5-11 account is fully funded as prescribed by the board's resolutions.
5-12 The fund and all accounts within it shall be kept and maintained at
5-13 the direction of the board and held in trust by the comptroller
5-14 [state treasurer] for and on behalf of the authority and the owners
5-15 of the general obligation bonds issued in accordance with this
5-16 chapter, and may be used only as provided by this chapter. Pending
5-17 its use, money in the fund shall be invested as prescribed by the
5-18 resolution by which the bonds were issued.
5-19 (f) The department may receive, and shall deposit in the
5-20 Texas agricultural fund, appropriations, grants, donations, earned
5-21 federal funds, and the proceeds of any investment pools operated by
5-22 the comptroller [treasurer].
5-23 SECTION 2.05. Section 58.033(d), Agriculture Code, is
5-24 amended to read as follows:
5-25 (d) The board may make additional covenants with respect to
5-26 the bonds and the pledged revenues and may provide for the flow of
5-27 funds, the establishment and maintenance and investment of funds,
6-1 which may include interest and sinking funds, reserve funds,
6-2 program funds, and other funds. Those funds shall be kept and
6-3 maintained in escrow and in trust by the comptroller [state
6-4 treasurer] for and on behalf of the authority and the owners of its
6-5 revenue bonds, in funds held outside the treasury pursuant to
6-6 Chapter 404, Government Code [Section 3.051, Treasury Act (Article
6-7 4393-1, Vernon's Texas Civil Statutes)]. Those funds shall be used
6-8 only as provided by this chapter, and pending their use shall be
6-9 invested as provided by any resolution of the authority. Legal
6-10 title to those funds shall be in the authority unless or until paid
6-11 out as provided by this chapter or by the resolutions authorizing
6-12 the authority's bonds. The comptroller [state treasurer], as
6-13 custodian, shall administer those funds strictly and only as
6-14 provided by this chapter and in those resolutions. The comptroller
6-15 [treasurer] shall invest the funds in investments authorized by law
6-16 for state funds. The state shall take no action with respect to
6-17 those funds other than that specified in this chapter and in those
6-18 resolutions.
6-19 SECTION 2.06. Section 58.035, Agriculture Code, is amended
6-20 to read as follows:
6-21 Sec. 58.035. Refunding Bonds. The authority may issue,
6-22 sell, and deliver bonds to refund all or any part of its
6-23 outstanding bonds, including the payment of any redemption premium
6-24 and interest accrued, under such terms, conditions, and details as
6-25 determined by the board. Bonds issued by the authority may be
6-26 refunded in the manner provided by any other applicable statute,
6-27 including Chapter 503, Acts of the 54th Legislature, Regular
7-1 Session, 1955 (Article 717k, Vernon's Texas Civil Statutes), and
7-2 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
7-3 (Article 717k-3, Vernon's Texas Civil Statutes). Bonds, the
7-4 provision for the payment of all interest and applicable premiums
7-5 on which and the principal of which has been made through the
7-6 irrevocable deposit of money with the comptroller [treasurer] in
7-7 accordance with the provisions of such an applicable statute, shall
7-8 no longer be charged against the issuing authority of the
7-9 authority, and on the making of such provision such issuing
7-10 authority shall, to the extent of the principal amount of such
7-11 bonds, be restored.
7-12 SECTION 2.07. Section 58.039(a), Agriculture Code, as added
7-13 by Chapter 32, Acts of the 70th Legislature, 2nd Called Session,
7-14 1987, is amended to read as follows:
7-15 (a) The bond review board is composed of:
7-16 (1) the governor;
7-17 (2) the lieutenant governor;
7-18 (3) the speaker of the house of representatives; and
7-19 (4) [the state treasurer; and]
7-20 [(5)] the comptroller of public accounts.
7-21 SECTION 2.08. Section 59.015(a), Agriculture Code, is
7-22 amended to read as follows:
7-23 (a) The board may use money in the fund attributable to the
7-24 issuance and sale of bonds to pay:
7-25 (1) legal fees and fees for financial advice the board
7-26 finds necessary for the sale of bonds;
7-27 (2) the expense of publishing notice of sale of an
8-1 installment of bonds;
8-2 (3) the expense of printing the bonds;
8-3 (4) the expense of issuing the bonds, including the
8-4 actual costs of travel, lodging, and meals of officers, members, or
8-5 employees of the board, directors or employees of the authority,
8-6 the comptroller, [the state treasurer,] or the attorney general
8-7 that the board finds necessary to implement the issuance, rating,
8-8 or delivery of the bonds;
8-9 (5) the cost of manually signing the bonds;
8-10 (6) remuneration to any agent employed by the board to
8-11 pay the principal of and interest on the bonds;
8-12 (7) any amount required to be paid to maintain the
8-13 federal tax exemption of interest on the bonds; or
8-14 (8) any other cost, fee, or expense relating to the
8-15 issuance of the bonds.
8-16 SECTION 2.09. Section 59.016(b), Agriculture Code, as
8-17 amended by Chapter 265, Acts of the 74th Legislature, Regular
8-18 Session, 1995, is amended to read as follows:
8-19 (b) Money in the fund that is not immediately committed to
8-20 paying principal of and interest on the bonds or to paying expenses
8-21 as provided by Section 59.015 of this code may be invested by the
8-22 board in:
8-23 (1) a direct security repurchase agreement or reverse
8-24 security repurchase agreement made with a state or national bank
8-25 domiciled in this state or with a primary dealer approved by the
8-26 federal reserve system;
8-27 (2) a direct obligation of or obligation the principal
9-1 and interest of which are guaranteed by the United States
9-2 government;
9-3 (3) a direct obligation of or obligation guaranteed by
9-4 the Federal Home Loan Banks, the Federal National Mortgage
9-5 Association, the Federal Farm Credit System, the Student Loan
9-6 Marketing Association, the Federal Home Loan Mortgage Corporation,
9-7 or a successor to one of those organizations;
9-8 (4) a bankers' acceptance that:
9-9 (A) is eligible for purchase by a member of the
9-10 federal reserve system;
9-11 (B) matures in 270 days or less; and
9-12 (C) is issued by a bank that has received the
9-13 highest short-term credit rating by a nationally recognized
9-14 investment rating firm;
9-15 (5) commercial paper that:
9-16 (A) matures in 270 days or less; and
9-17 (B) has received the highest short-term credit
9-18 rating by a nationally recognized investment rating firm;
9-19 (6) a contract that is written by the board in which
9-20 the board grants the purchaser the right to purchase securities in
9-21 the board's marketable securities portfolio at a specified price
9-22 over a specified period and for which the board is paid a fee and
9-23 that specifically prohibits naked-option or uncovered option
9-24 trading;
9-25 (7) an obligation of a state or of an agency, county,
9-26 city, or other political subdivision of a state or a mutual fund
9-27 composed of those obligations;
10-1 (8) an investment instrument, obligation, or other
10-2 evidence of indebtedness the payment of which is directly or
10-3 indirectly guaranteed by the full faith and credit of the United
10-4 States government;
10-5 (9) an investment, account, depository receipt, or
10-6 deposit that is fully:
10-7 (A) insured by the Federal Deposit Insurance
10-8 Corporation or a successor to that organization; or
10-9 (B) secured by a security described by
10-10 Subdivision (2), (3), or (8) of this subsection;
10-11 (10) a collateralized mortgage obligation fully
10-12 secured by securities or mortgages issued or guaranteed by the
10-13 Government National Mortgage Association (GNMA) or any entity
10-14 identified by Subdivision (3) of this subsection;
10-15 (11) a security or evidence of indebtedness issued by
10-16 the Farm Credit System Financial Assistance Corporation, the
10-17 Private Export Funding Corporation, or the Export-Import Bank; and
10-18 (12) any other investment authorized for investment of
10-19 state funds by the comptroller [state treasurer] under Section
10-20 404.024, Government Code.
10-21 SECTION 2.10. Sections 59.021(e) and (h), Agriculture Code,
10-22 are amended to read as follows:
10-23 (e) The fund and each account in the fund shall be kept and
10-24 maintained at the direction of the board and held in trust by the
10-25 comptroller [state treasurer] for and on behalf of the board and
10-26 the owners of the bonds issued under this chapter.
10-27 (h) The board may receive, and shall deposit in the fund,
11-1 appropriations, grants, donations, earned federal funds, and the
11-2 proceeds of any investment pools operated by the comptroller [state
11-3 treasurer].
11-4 SECTION 2.11. Section 103.002(a), Agriculture Code, is
11-5 amended to read as follows:
11-6 (a) The produce recovery fund is a special trust fund with
11-7 the comptroller [state treasurer] administered by the department,
11-8 without appropriation, for the payment of claims against commission
11-9 merchants and retailers licensed under Chapter 101 or 102 of this
11-10 code.
11-11 SECTION 2.12. Section 131.024(d), Agriculture Code, is
11-12 amended to read as follows:
11-13 (d) The owner of bees, equipment, pollen, or honey treated
11-14 or destroyed under this section is liable for the costs of
11-15 treatment or destruction, and the inspector may sue to collect
11-16 those costs. The inspector shall remit money collected under this
11-17 subsection to the comptroller [state treasurer] for deposit to the
11-18 credit of the general revenue fund.
11-19 SECTION 2.13. Section 131.063(b), Agriculture Code, is
11-20 amended to read as follows:
11-21 (b) The inspector shall remit money collected under this
11-22 section to the comptroller [State Treasurer] for deposit to the
11-23 credit of the bee disease control fund.
11-24 SECTION 2.14. Section 201.023(c), Agriculture Code, is
11-25 amended to read as follows:
11-26 (c) The state board by resolution may authorize the chairman
11-27 of the board or the administrative officer to approve claims and
12-1 accounts payable by the board. That approval is sufficient to
12-2 authorize the comptroller of public accounts to issue a warrant
12-3 drawn on the funds appropriated to the board for payment of the
12-4 claim and is sufficient to authorize the comptroller [state
12-5 treasurer] to honor payment of the warrant.
12-6 SECTION 2.15. Section 252.056(a), Agriculture Code, is
12-7 amended to read as follows:
12-8 (a) Except as provided by Subsection (b) of this section,
12-9 proceeds derived from the sale of the bonds, less the
12-10 administrative costs of issuing the bonds, shall be deposited with
12-11 the comptroller [state treasurer] to the credit of the farm and
12-12 ranch loan security fund.
12-13 SECTION 2.16. Section 252.057, Agriculture Code, is amended
12-14 to read as follows:
12-15 Sec. 252.057. Payment of Principal and Interest. As
12-16 required by Article III, Section 50c, of the Texas Constitution,
12-17 out of the first money coming into the treasury in each fiscal year
12-18 not otherwise appropriated by the constitution, the comptroller
12-19 [state treasurer] shall pay or cause to be paid the principal on
12-20 bonds issued under this chapter as they mature and the interest as
12-21 it becomes payable, after using for that purpose any funds that are
12-22 on deposit in the interest and sinking fund and are available for
12-23 that purpose.
12-24 SECTION 2.17. Section 252.062, Agriculture Code, is amended
12-25 to read as follows:
12-26 Sec. 252.062. Mandamus. The performance of the official
12-27 duties of the commissioner and[,] the comptroller [and the
13-1 treasurer] under this chapter and the constitution and the duties
13-2 of any state officer imposed by the order authorizing the bonds may
13-3 be enforced by mandamus or other appropriate proceeding.
13-4 ARTICLE 3. CHANGES TO BUSINESS CORPORATION ACT
13-5 SECTION 3.01. Article 7.11, Texas Business Corporation Act,
13-6 is amended to read as follows:
13-7 Art. 7.11. Deposit with Comptroller [State Treasurer] of
13-8 Amount Due Certain Shareholders and Creditors. A. Upon the
13-9 voluntary or involuntary dissolution of a corporation, the portion
13-10 of the assets distributable to a creditor or shareholder who is
13-11 unknown or cannot be found after the exercise of reasonable
13-12 diligence by the person or persons responsible for the distribution
13-13 in liquidation of the corporation's assets shall be reduced to cash
13-14 and deposited with the Comptroller [State Treasurer], together with
13-15 a statement giving the name of the person, if known, entitled to
13-16 such fund, his last known address, the amount of his distributive
13-17 portion, and such other information about such person as the
13-18 Comptroller [State Treasurer] may reasonably require, whereupon the
13-19 person or persons responsible for the distribution in liquidation
13-20 of the corporation's assets shall be released and discharged from
13-21 any further liability with respect to the funds so deposited. The
13-22 Comptroller [State Treasurer] shall issue his receipt for such fund
13-23 and shall deposit same in a special account to be maintained by
13-24 him.
13-25 B. On receipt of satisfactory written proof of ownership or
13-26 of right to such fund within seven (7) years from the date such
13-27 fund was so deposited, the Comptroller [State Treasurer shall
14-1 certify such fact to the Comptroller of Public Accounts, who] shall
14-2 issue proper warrant therefor [drawn on the State Treasurer] in
14-3 favor of the person or persons then entitled thereto. If no
14-4 claimant has made satisfactory proof of right to such fund within
14-5 seven (7) years from the time of such deposit the Comptroller
14-6 [State Treasurer] shall then cause to be published in one issue of
14-7 a newspaper of general circulation in Travis County, Texas, a
14-8 notice of the proposed escheat of such fund, giving the name of the
14-9 creditor or shareholder apparently entitled thereto, his last known
14-10 address, if any, the amount of the fund so deposited, and the name
14-11 of the dissolved corporation from whose assets such fund was
14-12 derived. If no claimant makes satisfactory proof of right to such
14-13 fund within two months from the time of such publication, the fund
14-14 so unclaimed shall thereupon automatically escheat to and become
14-15 the property of the General Revenue Fund of the State of Texas.
14-16 ARTICLE 4. CHANGES TO CODE OF CRIMINAL PROCEDURE
14-17 SECTION 4.01. Article 2.12, Code of Criminal Procedure, is
14-18 amended to read as follows:
14-19 Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
14-20 officers:
14-21 (1) sheriffs and their deputies;
14-22 (2) constables and deputy constables;
14-23 (3) marshals or police officers of an incorporated
14-24 city, town, or village;
14-25 (4) rangers and officers commissioned by the Public
14-26 Safety Commission and the Director of the Department of Public
14-27 Safety;
15-1 (5) investigators of the district attorneys', criminal
15-2 district attorneys', and county attorneys' offices;
15-3 (6) law enforcement agents of the Texas Alcoholic
15-4 Beverage Commission;
15-5 (7) each member of an arson investigating unit
15-6 commissioned by a city, a county, or the state;
15-7 (8) officers commissioned under Section 37.081,
15-8 Education Code, or Subchapter E, Chapter 51, Education Code;
15-9 (9) officers commissioned by the General Services
15-10 Commission;
15-11 (10) law enforcement officers commissioned by the
15-12 Parks and Wildlife Commission;
15-13 (11) airport police officers commissioned by a city
15-14 with a population of more than one million, according to the most
15-15 recent federal census, that operates an airport that serves
15-16 commercial air carriers;
15-17 (12) airport security personnel commissioned as peace
15-18 officers by the governing body of any political subdivision of this
15-19 state, other than a city described by Subdivision (11), that
15-20 operates an airport that serves commercial air carriers;
15-21 (13) municipal park and recreational patrolmen and
15-22 security officers;
15-23 (14) security officers commissioned as peace officers
15-24 by the comptroller [State Treasurer];
15-25 (15) officers commissioned by a water control and
15-26 improvement district under Section 49.216 [51.132], Water Code;
15-27 (16) officers commissioned by a board of trustees
16-1 under Chapter 341, Acts of the 57th Legislature, Regular Session,
16-2 1961 (Article 1187f, Vernon's Texas Civil Statutes);
16-3 (17) investigators commissioned by the Texas State
16-4 Board of Medical Examiners;
16-5 (18) officers commissioned by the board of managers of
16-6 the Dallas County Hospital District, the Tarrant County Hospital
16-7 District, or the Bexar County Hospital District under Section
16-8 281.057, Health and Safety Code;
16-9 (19) county park rangers commissioned under Subchapter
16-10 E, Chapter 351, Local Government Code;
16-11 (20) investigators employed by the Texas Racing
16-12 Commission;
16-13 (21) officers commissioned by the State Board of
16-14 Pharmacy;
16-15 (22) officers commissioned by the governing body of a
16-16 metropolitan rapid transit authority under Section 451.108,
16-17 Transportation Code [13, Chapter 141, Acts of the 63rd Legislature,
16-18 Regular Session, 1973 (Article 1118x, Vernon's Texas Civil
16-19 Statutes)], or by a regional transportation authority under Section
16-20 452.110, Transportation Code [10, Chapter 683, Acts of the 66th
16-21 Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
16-22 Civil Statutes)];
16-23 (23) [officers commissioned under the Texas High-Speed
16-24 Rail Act (Article 6674v.2, Revised Statutes);]
16-25 [(24)] investigators commissioned by the attorney
16-26 general under Section 402.009, Government Code;
16-27 (24) [(25)] security officers and investigators
17-1 commissioned as peace officers under Chapter 466, Government Code;
17-2 (25) [(26)] an officer employed by the Texas
17-3 Department of Health under Section 431.2471, Health and Safety
17-4 Code;
17-5 (26) [(27)] officers appointed by an appellate court
17-6 under Subchapter F, Chapter 53, Government Code;
17-7 (27) [(28)] officers commissioned by the state fire
17-8 marshal under Chapter 417, Government Code; [and]
17-9 (28) [(29)] an investigator commissioned by the
17-10 commissioner of insurance under Article 1.10D, Insurance Code;
17-11 and[.]
17-12 (29) apprehension specialists commissioned by the
17-13 Texas Youth Commission as officers under Section 61.0931, Human
17-14 Resources Code.
17-15 SECTION 4.02. Subsection (b), Section 8B, Article 42.18,
17-16 Code of Criminal Procedure, is amended to read as follows:
17-17 (b) The comptroller [state treasurer] shall be the trustee
17-18 of the parolee restitution fund as provided by Section 404.073,
17-19 Government Code.
17-20 ARTICLE 5. CHANGES TO EDUCATION CODE
17-21 SECTION 5.01. Section 7.055(a), Education Code, is amended
17-22 to read as follows:
17-23 (a) The commissioner has the following powers and duties:
17-24 (1) The commissioner shall serve as the educational
17-25 leader of the state.
17-26 (2) The commissioner shall serve as executive officer
17-27 of the agency and as executive secretary of the board.
18-1 (3) The commissioner shall carry out the duties
18-2 imposed on the commissioner by the board or the legislature.
18-3 (4) The commissioner shall prescribe a uniform system
18-4 of forms, reports, and records necessary to fulfill the reporting
18-5 and recordkeeping requirements of this title.
18-6 (5) The commissioner may delegate ministerial and
18-7 executive functions to agency staff and may employ division heads
18-8 and any other employees and clerks to perform the duties of the
18-9 agency.
18-10 (6) The commissioner shall adopt an annual budget for
18-11 operating the Foundation School Program as prescribed by Subsection
18-12 (b).
18-13 (7) The commissioner may issue vouchers for the
18-14 expenditures of the agency and shall examine and must approve any
18-15 account to be paid out of the school funds [by the state treasurer]
18-16 before the comptroller may issue a warrant.
18-17 (8) The commissioner shall file annually with the
18-18 governor and the Legislative Budget Board a complete and detailed
18-19 written report accounting for all funds received and disbursed by
18-20 the agency during the preceding fiscal year.
18-21 (9) The commissioner shall have a manual published at
18-22 least once every two years that contains Title 1 and this title,
18-23 any other provisions of this code relating specifically to public
18-24 primary or secondary education, and an appendix of all other state
18-25 laws relating to public primary or secondary education and shall
18-26 provide for the distribution of the manual as determined by the
18-27 board.
19-1 (10) The commissioner may visit different areas of
19-2 this state, address teachers' associations and educational
19-3 gatherings, instruct teachers, and promote all aspects of education
19-4 and may be reimbursed for necessary travel expenses incurred under
19-5 this subdivision to the extent authorized by the General
19-6 Appropriations Act.
19-7 (11) The commissioner may appoint advisory committees,
19-8 in accordance with Article 6252-33, Revised Statutes, as necessary
19-9 to advise the commissioner in carrying out the duties and mission
19-10 of the agency.
19-11 (12) The commissioner shall appoint an agency auditor.
19-12 (13) The commissioner may provide for reductions in
19-13 the number of agency employees.
19-14 (14) The commissioner shall carry out duties relating
19-15 to the investment capital fund under Section 7.024.
19-16 (15) The commissioner shall review and act, if
19-17 necessary, on applications for waivers under Section 7.056.
19-18 (16) The commissioner shall carry out duties relating
19-19 to regional education service centers as specified under Chapter 8.
19-20 (17) The commissioner shall distribute funds to
19-21 open-enrollment charter schools as required under Subchapter D,
19-22 Chapter 12.
19-23 (18) The commissioner shall adopt a recommended
19-24 appraisal process and criteria on which to appraise the performance
19-25 of teachers, a recommended appraisal process and criteria on which
19-26 to appraise the performance of administrators, and a job
19-27 description and evaluation form for use in evaluating counselors,
20-1 as provided by Subchapter H, Chapter 21.
20-2 (19) The commissioner shall coordinate and implement
20-3 teacher recruitment programs under Section 21.004.
20-4 (20) The commissioner shall perform duties in
20-5 connection with the certification and assignment of hearing
20-6 examiners as provided by Subchapter F, Chapter 21.
20-7 (21) The commissioner shall carry out duties under the
20-8 Texas Advanced Placement Incentive Program under Subchapter C,
20-9 Chapter 28.
20-10 (22) The commissioner may adopt rules for optional
20-11 extended year programs under Section 29.082.
20-12 (23) The commissioner shall monitor and evaluate
20-13 prekindergarten programs and other child-care programs as required
20-14 under Section 29.154.
20-15 (24) The commissioner, with the approval of the board,
20-16 shall develop and implement a plan for the coordination of services
20-17 to children with disabilities as required under Section 30.001.
20-18 (25) The commissioner shall develop a system to
20-19 distribute to school districts or regional education service
20-20 centers a special supplemental allowance for students with visual
20-21 impairments as required under Section 30.002.
20-22 (26) The commissioner, with the assistance of the
20-23 comptroller, shall determine amounts to be distributed to the Texas
20-24 School for the Blind and Visually Impaired and the Texas School for
20-25 the Deaf as provided by Section 30.003 and to the Texas Youth
20-26 Commission as provided by Section 30.102.
20-27 (27) The commissioner shall establish a procedure for
21-1 resolution of disputes between a school district and the Texas
21-2 School for the Blind and Visually Impaired under Section 30.021.
21-3 (28) The commissioner shall perform duties relating to
21-4 the funding, adoption, and purchase of textbooks under Chapter 31.
21-5 (29) The commissioner may enter into contracts
21-6 concerning technology in the public school system as authorized
21-7 under Chapter 32.
21-8 (30) The commissioner shall adopt a recommended
21-9 contract form for the use, acquisition, or lease with option to
21-10 purchase of school buses under Section 34.009.
21-11 (31) The commissioner shall ensure that the cost of
21-12 using school buses for a purpose other than the transportation of
21-13 students to or from school is properly identified in the Public
21-14 Education Information Management System (PEIMS) under Section
21-15 34.010.
21-16 (32) The commissioner shall perform duties in
21-17 connection with the public school accountability system as
21-18 prescribed by Chapter 39.
21-19 (33) The commissioner shall develop and propose to the
21-20 legislature an assessment system for students exempted from the
21-21 generally applicable assessment program under Subchapter B, Chapter
21-22 39.
21-23 (34) The commissioner shall perform duties in
21-24 connection with the equalized wealth level under Chapter 41.
21-25 (35) The commissioner shall perform duties in
21-26 connection with the Foundation School Program as prescribed by
21-27 Chapter 42.
22-1 (36) The commissioner shall establish advisory
22-2 guidelines relating to the fiscal management of a school district
22-3 and report annually to the board on the status of school district
22-4 fiscal management as required under Section 44.001.
22-5 (37) The commissioner shall review school district
22-6 audit reports as required under Section 44.008.
22-7 (38) The commissioner shall perform duties in
22-8 connection with the guaranteed bond program as prescribed by
22-9 Subchapter C, Chapter 45.
22-10 (39) The commissioner shall cooperate with the Texas
22-11 Higher Education Coordinating Board in connection with the Texas
22-12 partnership and scholarship program under Subchapter P, Chapter 61.
22-13 (40) The commissioner shall suspend the certificate of
22-14 an educator or permit of a teacher who violates Chapter 617,
22-15 Government Code.
22-16 SECTION 5.02. Section 43.012(f), Education Code, is amended
22-17 to read as follows:
22-18 (f) Refunding bonds issued with the approval or pursuant to
22-19 a refunding agreement with the State Board of Education in
22-20 compliance with either this section or Section 43.011 shall, on the
22-21 order of the State Board of Education, be exchanged by the
22-22 comptroller [state treasurer] for the defaulted obligations they
22-23 have been issued to refund.
22-24 SECTION 5.03. Section 43.014(d), Education Code, is amended
22-25 to read as follows:
22-26 (d) On receipt of certificates issued to the comptroller by
22-27 the commissioner, the comptroller shall draw warrants [on the state
23-1 treasurer and] in favor of the treasurer of the available school
23-2 fund of each school district for the amounts stated in the
23-3 certificates. All such warrants shall be registered [and
23-4 transmitted to the state treasurer].
23-5 SECTION 5.04. Section 43.015, Education Code, is amended to
23-6 read as follows:
23-7 Sec. 43.015. DUTIES OF COMPTROLLER [STATE TREASURER].
23-8 (a) Not later than the 30th day before the first day of each
23-9 regular session of the legislature and not later than the 10th day
23-10 before the first day of any special session at which there can be
23-11 legislation respecting the public schools, the comptroller [state
23-12 treasurer] shall report to the governor the condition of the
23-13 permanent school fund and the available school fund, the amount of
23-14 each fund, and the manner of its disbursement.
23-15 (b) The comptroller [treasurer] shall provide the State
23-16 Board of Education with the reports specified by Subsection (a) and
23-17 with additional reports concerning those funds requested by the
23-18 State Board of Education.
23-19 (c) The comptroller [treasurer] shall ensure that no portion
23-20 of either the permanent school fund or the available school fund is
23-21 used to pay any warrant drawn against any other fund.
23-22 (d) The comptroller [treasurer] shall receive and hold in a
23-23 special deposit and account for all properties belonging to the
23-24 available school fund. All warrants drawn on that fund by the
23-25 comptroller pursuant to a certificate of the commissioner must be
23-26 registered by the comptroller [state treasurer] and then
23-27 transmitted to the commissioner, and when properly endorsed shall
24-1 be paid by the comptroller [treasurer] in the order of their
24-2 presentation.
24-3 (e) On order of the State Board of Education, the
24-4 comptroller [treasurer] shall exchange or accept refunding bonds in
24-5 lieu of:
24-6 (1) either matured or unmatured bonds held for the
24-7 benefit of the permanent school fund, which are being refunded
24-8 under this chapter;
24-9 (2) defaulted obligations held for the benefit of the
24-10 available school fund if the refunding bonds are issued in
24-11 compliance with Section 43.012;
24-12 (3) defaulted obligations of any school district of
24-13 this state held for the benefit of the permanent school fund or the
24-14 available school fund if the refunding bonds are issued in
24-15 compliance with Section 43.011; or
24-16 (4) refunding bonds of any school district of this
24-17 state for school bonds not matured held by the comptroller [state
24-18 treasurer] for the permanent school fund if the new refunding bonds
24-19 are issued by the school district in compliance with this code.
24-20 (f) The comptroller [state treasurer] shall be the custodian
24-21 of all securities enumerated in Section 43.003(6) and of other
24-22 securities as designated by the State Board of Education in which
24-23 the school funds of the state are invested. The comptroller
24-24 [treasurer] shall keep those securities in the comptroller's
24-25 [treasurer's] custody until paid off, discharged, delivered as
24-26 required by the State Board of Education, or otherwise disposed of
24-27 by the proper authorities of the state, and on the proper
25-1 installment of any interest or dividend, shall see that the proper
25-2 credit is given, and the coupons on bonds, when paid, shall be
25-3 separated from the bonds and cancelled by the comptroller
25-4 [treasurer].
25-5 SECTION 5.05. Section 43.017, Education Code, is amended to
25-6 read as follows:
25-7 Sec. 43.017. USE OF COMMERCIAL BANKS AS AGENTS FOR
25-8 COLLECTION OF INCOME FROM PERMANENT SCHOOL FUND INVESTMENTS.
25-9 (a) The State Board of Education may contract with one or more
25-10 commercial banks to receive payments of dividends and interest on
25-11 securities in which the state permanent school funds are invested
25-12 and transmit that money with identification of its source to the
25-13 comptroller [state treasurer] for the account of the available
25-14 school fund by the fastest available means.
25-15 (b) In choosing each commercial bank with which to contract
25-16 as authorized by Subsection (a), the State Board of Education shall
25-17 assure itself of:
25-18 (1) the financial stability of the bank;
25-19 (2) the location of the bank with respect to its
25-20 proximity to the banks on which checks are drawn in payment of
25-21 dividends and interest on securities of the permanent school fund;
25-22 (3) the experience and reliability of the bank in
25-23 acting as agent for others in the similar collection and
25-24 expeditious remittance of money; and
25-25 (4) the reasonableness of the bank's charges for the
25-26 services, both in amount of the charges and in relation to the
25-27 increased investment earnings of the available school fund that
26-1 will result from speedier receipt by the comptroller [state
26-2 treasurer] of the money.
26-3 SECTION 5.06. Section 43.018(b), Education Code, is amended
26-4 to read as follows:
26-5 (b) The State Board of Education may contract with a
26-6 commercial bank pursuant to this section only if:
26-7 (1) the bank is located in a city having a major stock
26-8 exchange;
26-9 (2) the bank is experienced in the operation of a
26-10 fully secured securities loan program;
26-11 (3) the bank has adequate capital in the prudent
26-12 judgment of the State Board of Education to assure the safety of
26-13 the securities entrusted to it as a custodian;
26-14 (4) the bank will require of any securities broker or
26-15 dealer to which it lends securities owned by the state permanent
26-16 school fund that the broker or dealer deliver to it cash collateral
26-17 for the loan of securities, and that the cash collateral will at
26-18 all times be not less than 100 percent of the market value of the
26-19 securities lent;
26-20 (5) the bank executes an indemnification agreement,
26-21 satisfactory in form and content to the State Board of Education,
26-22 fully indemnifying the permanent and available school funds against
26-23 loss resulting from the bank's service as custodian of securities
26-24 of the permanent school fund and its operation of a securities loan
26-25 program using securities of the permanent school fund;
26-26 (6) the bank will speedily collect and remit on the
26-27 day of collection by the fastest available means to the comptroller
27-1 [state treasurer] any dividends and interest collectible by it on
27-2 securities held by it as custodian, together with identification as
27-3 to the source of the dividends or interest; and
27-4 (7) the bank is the bank agreeing to pay to the
27-5 available school fund the largest sum or highest percentage of the
27-6 income derived by the bank from use of the securities of the
27-7 permanent school fund in the operation of a securities loan
27-8 program.
27-9 SECTION 5.07. Sections 45.059(b) and (c), Education Code,
27-10 are amended to read as follows:
27-11 (b) Immediately following receipt of the funds for payment
27-12 of the principal or interest, the paying agent shall pay the amount
27-13 due and forward the canceled bond or coupon to the comptroller
27-14 [state treasurer]. The comptroller [state treasurer] shall hold
27-15 the canceled bond or coupon on behalf of the permanent school fund.
27-16 (c) Following full reimbursement to the permanent school
27-17 fund with interest, the comptroller [state treasurer] shall further
27-18 cancel the bond or coupon and forward it to the school district for
27-19 which payment was made.
27-20 SECTION 5.08. Sections 51.008(a) and (b), Education Code,
27-21 are amended to read as follows:
27-22 (a) The governing board of every state institution of higher
27-23 education is directed to designate special depository banks,
27-24 subject to the approval of the comptroller [state treasurer], for
27-25 the purpose of receiving and keeping certain receipts of the
27-26 institution separate and apart from funds now deposited in the
27-27 state treasury. The receipts here referred to are described in
28-1 Subsection (b) of this section. The comptroller [state treasurer]
28-2 is directed to deposit the receipts, or funds representing such
28-3 receipts, enumerated herein, in the special depository bank or
28-4 banks nearest the institution credited with the receipts, so far as
28-5 is practicable, and is authorized to withdraw such funds on drafts
28-6 or checks prescribed by the comptroller [state treasurer]. The
28-7 comptroller [state treasurer] is authorized to promulgate rules and
28-8 regulations to require collateral security for the protection of
28-9 such funds pursuant to the provisions of Chapter 404, Government
28-10 Code [Articles 2529 and 2530, Revised Civil Statutes of Texas,
28-11 1925, as amended]. For the purpose of facilitating the clearance
28-12 and collection of the receipts herein enumerated, the comptroller
28-13 [state treasurer] is hereby authorized to deposit such receipts in
28-14 any state depository bank and transfer funds representing such
28-15 receipts enumerated herein to the respective special depository
28-16 banks. Banks so designated as special depository banks are hereby
28-17 authorized to pledge their securities to protect such funds.
28-18 (b) The governing board of every state institution of higher
28-19 education shall deposit in the state treasury all cash receipts
28-20 accruing to any college or university under its control that may be
28-21 derived from all sources except auxiliary enterprises,
28-22 noninstructional services, agency, designated, and restricted
28-23 funds, endowment and other gift funds, student loan funds, funds
28-24 retained under Chapter 145 of this code, and Constitutional College
28-25 Building Amendment funds. The comptroller [state treasurer] is
28-26 directed to credit such receipts deposited by each such institution
28-27 to a separate fund account for the institution depositing the
29-1 receipts, but he shall not be required to keep separate accounts of
29-2 types of funds deposited by each institution. For the purpose of
29-3 facilitating the transferring of such institutional receipts to the
29-4 state treasury, each institution shall open in a local depository
29-5 bank a clearing account to which it shall deposit daily all such
29-6 receipts, and shall, not less often than every seven days, make
29-7 remittances therefrom to the comptroller [state treasurer] of all
29-8 except $500 of the total balance in said clearing account, such
29-9 remittances to be in the form of checks drawn on the clearing
29-10 account by the duly authorized officers of the institution, and no
29-11 disbursements other than remittances to the state treasury shall be
29-12 made from such clearing account. All money so deposited in the
29-13 state treasury shall be paid out on warrants drawn by the
29-14 comptroller [of public accounts] as provided by law.
29-15 SECTION 5.09. Sections 51.704(d) and (e), Education Code,
29-16 are amended to read as follows:
29-17 (d) The comptroller [state treasurer] shall administer the
29-18 fund until the center is located in Texas.
29-19 (e) The comptroller [state treasurer] may accept grants for
29-20 the purpose of the fund.
29-21 SECTION 5.10. Section 52.17(c), Education Code, is amended
29-22 to read as follows:
29-23 (c) In the event that funds received by the board in any
29-24 fiscal year as repayment of student loans and as interest on the
29-25 loans are insufficient to pay the interest coming due and the
29-26 principal maturing on the bonds during the ensuing fiscal year, the
29-27 comptroller [state treasurer] shall transfer into the Texas college
30-1 interest and sinking fund and each board interest and sinking fund
30-2 out of the first money coming into the treasury, which is not
30-3 otherwise appropriated by the constitution, an additional amount
30-4 sufficient to pay the interest coming due and the principal
30-5 maturing on the bonds during the ensuing fiscal year.
30-6 SECTION 5.11. Section 52.18, Education Code, is amended to
30-7 read as follows:
30-8 Sec. 52.18. DUTIES OF COMPTROLLER [AND TREASURER]. The
30-9 comptroller of public accounts shall make the transfers required
30-10 under the provisions of this chapter[,] and [the state treasurer]
30-11 shall pay or cause to be paid the principal of and interest on the
30-12 bonds as they mature and come due.
30-13 SECTION 5.12. Section 52.19, Education Code, is amended to
30-14 read as follows:
30-15 Sec. 52.19. INVESTMENT OF FUNDS. All money in the Texas
30-16 college interest and sinking fund and in each board interest and
30-17 sinking fund, including the reserve portion, and all money in the
30-18 Texas Opportunity Plan Fund and in the student loan auxiliary fund
30-19 in excess of the amount necessary for student loans, and all money
30-20 in each board student loan fund shall be invested by the
30-21 comptroller [state treasurer] in the investments prescribed by
30-22 board resolution. The board shall furnish to the comptroller
30-23 [state treasurer] a copy of the resolution prescribing authorized
30-24 investments. The board may sell any instruments owned in the Texas
30-25 college interest and sinking fund, a board interest and sinking
30-26 fund, the Texas Opportunity Plan Fund, the student loan auxiliary
30-27 fund, or a board student loan fund at the prevailing market price.
31-1 Income from these investments may be deposited in any of those
31-2 funds.
31-3 SECTION 5.13. Section 54.635, Education Code, is amended to
31-4 read as follows:
31-5 Sec. 54.635. COMPTROLLER [STATE TREASURER]. (a) Except as
31-6 provided by Subsection [Subsections] (d) [and (e)], the comptroller
31-7 [state treasurer] is the custodian of the assets of the fund.
31-8 (b) The comptroller [state treasurer] shall pay money from
31-9 the fund on a warrant drawn by the comptroller supported only on a
31-10 voucher signed by the comptroller or the comptroller's authorized
31-11 representative.
31-12 (c) The comptroller [state treasurer] annually shall furnish
31-13 to the board a sworn statement of the amount of the fund's assets
31-14 in the comptroller's [treasurer's] custody.
31-15 (d) The board may select one or more commercial banks,
31-16 depository trust companies, or other entities to serve as custodian
31-17 of all or part of the fund's assets.
31-18 [(e) If the office of the state treasurer is abolished, the
31-19 comptroller is the custodian of the assets of the fund.]
31-20 SECTION 5.14. Section 57.77(b), Education Code, is amended
31-21 to read as follows:
31-22 (b) The corporation shall submit the annual report to the
31-23 governor, lieutenant governor, speaker of the house of
31-24 representatives, comptroller of public accounts, [state treasurer,]
31-25 and commissioner of higher education.
31-26 SECTION 5.15. Sections 62.026(a), (d), (e), (f), and (h),
31-27 Education Code, are amended to read as follows:
32-1 (a) The higher education fund is a fund outside the state
32-2 treasury in the custody of the comptroller [state treasurer].
32-3 (d) The comptroller [state treasurer] shall administer the
32-4 fund and invest the fund in the same manner as the permanent
32-5 university fund.
32-6 (e) The comptroller [state treasurer] may accept gifts or
32-7 grants from any public or private source for the fund.
32-8 (f) The comptroller [state treasurer] may deduct a
32-9 reasonable amount for administrative expenses from the interest,
32-10 dividends, and other income earned from the investment of the fund.
32-11 The amount deducted shall be deposited to the credit of the general
32-12 revenue fund.
32-13 (h) Beginning with the first state fiscal year that begins
32-14 on or after the date the comptroller certifies that the value of
32-15 the higher education fund is $2 billion, the comptroller [state
32-16 treasurer], not later than November 1 of each fiscal year, shall
32-17 distribute in accordance with Article VII, Section 17(i), of the
32-18 Texas Constitution the interest, dividends, and other income earned
32-19 from the investment of the fund, less the amount of administrative
32-20 expenses deducted under Subsection (f) of this section, to the
32-21 eligible institutions in accordance with the allocation formula
32-22 under Section 62.021(a) of this code.
32-23 SECTION 5.16. Section 65.13, Education Code, is amended to
32-24 read as follows:
32-25 Sec. 65.13. BOARD OFFICERS. The board shall elect a
32-26 chairman from its members to serve at the will of the board. The
32-27 comptroller [state treasurer] shall be the treasurer of the
33-1 university system.
33-2 SECTION 5.17. Section 66.05(c), Education Code, is amended
33-3 to read as follows:
33-4 (c) The report shall be distributed to the governor, [state
33-5 treasurer,] state comptroller of public accounts, state auditor,
33-6 attorney general, commissioner of higher education, and to the
33-7 members of the legislature by the 1st day of January each year.
33-8 The board shall furnish copies of the report to any interested
33-9 person on request.
33-10 SECTION 5.18. Section 66.65(d), Education Code, is amended
33-11 to read as follows:
33-12 (d) The Board of Regents of The University of Texas System
33-13 may also direct the comptroller of The University of Texas System
33-14 to transmit to the comptroller of public accounts [state treasurer]
33-15 for deposit to the credit of the permanent university fund any
33-16 unexpended balances remaining in the special fund after reserving a
33-17 sufficient amount in it for the payment of current expenses as set
33-18 out in Subsection (c) of this section.
33-19 SECTION 5.19. Section 66.78, Education Code, is amended to
33-20 read as follows:
33-21 Sec. 66.78. PAYMENTS; DISPOSITION. Payments under this
33-22 subchapter shall be made to the Board of Regents of The University
33-23 of Texas System at Austin, Texas, who shall:
33-24 (1) transmit to the comptroller of public accounts
33-25 [state treasurer] for deposit to the credit of the permanent
33-26 university fund all bonus, rental, and royalty payments;
33-27 (2) transmit to the comptroller of public accounts
34-1 [state treasurer] for deposit to the credit of the available
34-2 university fund all filing, assignment, and relinquishment fees,
34-3 and all other payments except those described in Subdivision (3) of
34-4 this section; and
34-5 (3) retain the one percent fee payment prescribed by
34-6 Section 66.65(c) of this code, for disbursement by the comptroller
34-7 of The University of Texas System for the purposes authorized by
34-8 Section 66.65(c) of this code.
34-9 SECTION 5.20. Section 67.24, Education Code, is amended to
34-10 read as follows:
34-11 Sec. 67.24. RESEARCH AND EXPERIMENTATION FOR TEXAS
34-12 DEPARTMENT OF TRANSPORTATION. The state comptroller of public
34-13 accounts may draw proper warrants in favor of the university based
34-14 on vouchers or claims submitted by the university through the Texas
34-15 Department of Transportation covering reasonable fees and charges
34-16 for services rendered by members of the staff of the university
34-17 system to the Texas Department of Transportation and for equipment
34-18 and materials necessary for research and experimentation in all
34-19 phases of highway activity, economics, materials, specifications,
34-20 design of roadways, construction, maintenance, pavement and
34-21 structures, drainage, traffic control, safety, the economics of
34-22 highway design and construction, and other fields of highway
34-23 design, construction, maintenance, or operation, based on an
34-24 agreement between the Texas Department of Transportation and the
34-25 university in accordance with the provisions of Texas Highway
34-26 Department Minute Order Number 52742, dated May 24, 1963; and the
34-27 comptroller [state treasurer] shall pay warrants so issued against
35-1 any funds appropriated by the legislature to the Texas Department
35-2 of Transportation for the construction and maintenance of highways,
35-3 roads, and bridges. The payments made to the university shall be
35-4 credited and deposited to local institutional funds under its
35-5 control.
35-6 SECTION 5.21. Section 85.29, Education Code, is amended to
35-7 read as follows:
35-8 Sec. 85.29. RESEARCH AND EXPERIMENTATION FOR TEXAS
35-9 DEPARTMENT OF TRANSPORTATION. The state comptroller of public
35-10 accounts may draw proper warrants in favor of any part of the
35-11 university system based on vouchers or claims submitted by the
35-12 system through the Texas Department of Transportation covering
35-13 reasonable fees and charges for services rendered by members of the
35-14 staff of the system to the Texas Department of Transportation and
35-15 for equipment and materials necessary for research and
35-16 experimentation in all phases of highway activity, economics,
35-17 materials, specifications, design of roadways, construction,
35-18 maintenance, pavement and structures, traffic control, safety, the
35-19 economics of highway design and construction, and other fields of
35-20 highway design, construction, maintenance, or operation, based on
35-21 an agreement between the State Highway Department and the Texas
35-22 Agricultural and Mechanical College System as passed by the State
35-23 Highway Department on September 29, 1948, and recorded by the Texas
35-24 Department of Transportation as Minute Order Number 25396; and the
35-25 comptroller [state treasurer] shall pay warrants so issued against
35-26 any funds appropriated by the legislature to the Texas Department
35-27 of Transportation for the construction and maintenance of highways,
36-1 roads, and bridges. The payments made to the system shall be
36-2 credited and deposited to local institutional funds under its
36-3 control.
36-4 SECTION 5.22. Section 85.69, Education Code, is amended to
36-5 read as follows:
36-6 Sec. 85.69. PAYMENTS; DISPOSITION. Payments under this
36-7 subchapter shall be made to the commissioner of the general land
36-8 office at Austin, who shall transmit to the comptroller [state
36-9 treasurer] all royalties, lease fees, rentals for delay in drilling
36-10 or mining, and all other payments, including all filing assignments
36-11 and relinquishment fees, to be deposited in the state treasury as
36-12 provided by Section 85.70 of this code.
36-13 SECTION 5.23. Section 86.22, Education Code, is amended to
36-14 read as follows:
36-15 Sec. 86.22. ACCRUED INTEREST. The interest heretofore
36-16 collected by the State Board of Education in accordance with the
36-17 provisions of the act of August 21, 1876, due at the end of the
36-18 fiscal year of 1876, on the bonds belonging to the Agricultural and
36-19 Mechanical College and invested in six percent state bonds, shall
36-20 also constitute a part of the perpetual fund of the university
36-21 until the legislature shall otherwise provide. The state board
36-22 shall collect the semiannual interest on the bonds as it becomes
36-23 due, and place the money in the state treasury to the credit of the
36-24 fund. The interest on all such bonds is set apart exclusively for
36-25 the use of the university and shall be drawn from the treasury by
36-26 the board of directors on vouchers audited by the board, or
36-27 approved by the governor and attested by the secretary of the
37-1 board. On the vouchers being filed with the comptroller, he shall
37-2 draw his warrant on the state treasury [treasurer] as necessary to
37-3 pay the directors, professors and officers of the university.
37-4 SECTION 5.24. Section 106.14, Education Code, is amended to
37-5 read as follows:
37-6 Sec. 106.14. OFFICERS. The board shall elect a chairman and
37-7 a vice chairman from its members to serve at the will of the board.
37-8 The board shall appoint a secretary. The comptroller [state
37-9 treasurer] shall be the treasurer of the university.
37-10 SECTION 5.25. Section 106.54, Education Code, is amended to
37-11 read as follows:
37-12 Sec. 106.54. BIENNIAL REPORT. True and full accounts shall
37-13 be kept by the board and by the employees of the university of all
37-14 funds collected from all sources by the university, all the sums
37-15 paid out by it, and the persons to whom and the purposes for which
37-16 the sums are paid. The board shall print biennially a complete
37-17 report of all sums collected, all expenditures, and the sums
37-18 remaining on hand. The report shall be printed in even-numbered
37-19 years between September 1 and January 1. It shall show the true
37-20 condition of all funds as of the preceding August 1, and shall show
37-21 all collections and expenditures for the preceding two years. The
37-22 board shall furnish copies of the report to the governor, [state
37-23 treasurer,] comptroller, state auditor, and attorney general, and
37-24 not less than three copies to the General Services Commission
37-25 [State Board of Control]. The board shall furnish a copy to each
37-26 member of the House Appropriations Committee, the Senate Finance
37-27 Committee, and the House and Senate committees on education of each
38-1 regular session of the legislature within one week after the
38-2 committees are appointed.
38-3 SECTION 5.26. Section 109.78(b), Education Code, is amended
38-4 to read as follows:
38-5 (b) Payment of all royalties, lease fees, rentals for delay
38-6 in drilling or mining, filing fees for assignments and
38-7 relinquishments, and all other payments shall be made to the
38-8 commissioner of the general land office at Austin. The
38-9 commissioner shall transmit all payments received to the
38-10 comptroller [state treasurer] for deposit to the credit of the
38-11 Texas Tech University special mineral fund.
38-12 SECTION 5.27. Section 132.241(c), Education Code, is amended
38-13 to read as follows:
38-14 (c) The comptroller [state treasurer] shall invest the fund
38-15 in the same manner as other state funds. Sufficient funds from the
38-16 tuition protection fund shall be appropriated to the commission for
38-17 the administration of this section.
38-18 ARTICLE 6. CHANGES TO ELECTION CODE
38-19 SECTION 6.01. Section 52.092(c), Election Code, is amended
38-20 to read as follows:
38-21 (c) Statewide offices of the state government shall be
38-22 listed in the following order:
38-23 (1) governor;
38-24 (2) lieutenant governor;
38-25 (3) attorney general;
38-26 (4) comptroller of public accounts;
38-27 (5) [state treasurer;]
39-1 [(6)] commissioner of the General Land Office;
39-2 (6) [(7)] commissioner of agriculture;
39-3 (7) [(8)] railroad commissioner;
39-4 (8) [(9)] chief justice, supreme court;
39-5 (9) [(10)] justice, supreme court;
39-6 (10) [(11)] presiding judge, court of criminal
39-7 appeals;
39-8 (11) [(12)] judge, court of criminal appeals.
39-9 SECTION 6.02. Section 203.014, Election Code, is amended to
39-10 read as follows:
39-11 Sec. 203.014. DISPOSITION OF FILING FEES. The secretary of
39-12 state shall deposit the filing fees received under Section 203.005
39-13 in a suspense account with the comptroller [state treasurer] until
39-14 after election day. The funds remaining in the account after any
39-15 refunds are made shall be deposited to the credit of the General
39-16 Revenue Fund.
39-17 SECTION 6.03. Section 215.005(c), Election Code, is amended
39-18 to read as follows:
39-19 (c) In a recount of an election for which the final canvass
39-20 is at the state level, other than a primary election, the recount
39-21 coordinator shall deliver the deposit of a person against whom
39-22 costs are assessed to the comptroller of public accounts, who shall
39-23 place the deposit in trust [with the state treasurer]. The
39-24 comptroller shall issue a warrant in the amount certified by the
39-25 coordinator to each county in which assessed costs were incurred
39-26 and to the person for any refund to which the person is entitled.
39-27 SECTION 6.04. Section 221.002(b), Election Code, is amended
40-1 to read as follows:
40-2 (b) The senate and the house of representatives, in joint
40-3 session, have exclusive jurisdiction of a contest of a general
40-4 election for governor, lieutenant governor, comptroller of public
40-5 accounts, [state treasurer,] commissioner of the general land
40-6 office, or attorney general.
40-7 SECTION 6.05. Section 242.001, Election Code, is amended to
40-8 read as follows:
40-9 Sec. 242.001. APPLICABILITY OF CHAPTER. This chapter
40-10 applies to a contest of a general election for the office of
40-11 governor, lieutenant governor, comptroller of public accounts,
40-12 [state treasurer,] land commissioner, or attorney general.
40-13 ARTICLE 7. CHANGES TO CHAPTERS 403 AND 404, GOVERNMENT CODE
40-14 SECTION 7.01. Section 403.003(b), Government Code, is
40-15 amended to read as follows:
40-16 (b) The chief clerk shall take the official oath and give
40-17 bond in the amount of $70,000 [$10,000], payable in the same manner
40-18 as the comptroller's bond, and conditioned on the faithful
40-19 performance of the duties of the office.
40-20 SECTION 7.02. Section 403.005(a), Government Code, is
40-21 amended to read as follows:
40-22 (a) The comptroller's account against the state shall be
40-23 sent for approval to [may not be sent to the treasurer until] the
40-24 secretary of state [approves it].
40-25 SECTION 7.03. Section 403.011, Government Code, is amended
40-26 to read as follows:
40-27 Sec. 403.011. GENERAL POWERS. The comptroller shall:
41-1 (1) obtain a seal with "Comptroller's Office, State of
41-2 Texas" engraved around the margin and a five-pointed star in the
41-3 center, to be used as the seal of the office to authenticate
41-4 official acts, except warrants drawn on the state treasury;
41-5 (2) adopt regulations the comptroller considers
41-6 essential to the speedy and proper assessment and collection of
41-7 state revenues;
41-8 (3) supervise, as the sole accounting officer of the
41-9 state, the state's fiscal concerns and manage those concerns as
41-10 required by law;
41-11 (4) require all accounts presented to the comptroller
41-12 for settlement not otherwise provided for by law to be made on
41-13 forms that the comptroller prescribes;
41-14 (5) prescribe and furnish the form or electronic
41-15 format to be used in the collection of public revenue;
41-16 (6) prescribe the mode and manner of keeping and
41-17 stating of accounts of persons collecting state revenue;
41-18 (7) prescribe forms or electronic formats of the same
41-19 class, kind, and purpose so that they are uniform in size,
41-20 arrangement, matter, and form;
41-21 (8) require each person receiving money or managing or
41-22 having disposition of state property of which an account is kept in
41-23 the comptroller's office periodically to render statements of the
41-24 money or property to the comptroller;
41-25 (9) require each person who has received and not
41-26 accounted for state money to settle the person's account;
41-27 (10) keep and settle all accounts in which the state
42-1 is interested;
42-2 (11) examine and settle the account of each person
42-3 indebted to the state, verify [certify] the amount or balance [to
42-4 the treasurer], and direct and supervise the collection of the
42-5 money;
42-6 (12) audit claims against the state the payment of
42-7 which is provided for by law, unless the audit is otherwise
42-8 specially provided for;
42-9 (13) determine the method for auditing claims against
42-10 the state in a cost-effective manner, including but not limited to
42-11 the use of stratified and statistical sampling techniques in
42-12 conjunction with automated edits;
42-13 (14) maintain the necessary records and data for each
42-14 approved claim against the state so that an adequate audit can be
42-15 performed and the comptroller can submit a report to each house of
42-16 the legislature, upon request, stating the name and amount of each
42-17 approved claim;
42-18 (15) keep and state each account between the state and
42-19 the United States;
42-20 (16) keep journals through which all entries are made
42-21 in the ledger;
42-22 (17) draw warrants on the treasury for payment of all
42-23 money required by law to be paid from the treasury;
42-24 (18) suggest plans for the improvement and management
42-25 of the general revenue; and
42-26 (19) preserve the books, records, papers, and other
42-27 property of the comptroller's office and deliver them in good
43-1 condition to the successor to that office.
43-2 SECTION 7.04. Sections 403.023(a), (c), and (d), Government
43-3 Code, are amended to read as follows:
43-4 (a) The [treasurer in consultation with the] comptroller may
43-5 adopt rules relating to the acceptance of credit cards for the
43-6 payment of fees, taxes, and other charges assessed by state
43-7 agencies. The rules may:
43-8 (1) authorize a state agency to accept credit cards if
43-9 the comptroller [treasurer] determines the best interests of the
43-10 state would be promoted;
43-11 (2) authorize or require a credit card user to pay a
43-12 processing fee to the state agency that accepts the credit card;
43-13 and
43-14 (3) authorize a particular state agency to accept
43-15 credit cards without providing the same authorization to other
43-16 state agencies.
43-17 (c) The [treasurer and] comptroller may not adopt rules
43-18 about a particular state agency's acceptance of credit cards that
43-19 would affect a contract that the state agency has entered into that
43-20 is in effect on September 1, 1993.
43-21 (d) The [treasurer and] comptroller may not adopt rules
43-22 about a particular state agency's acceptance or use of credit cards
43-23 if another law specifically authorizes, requires, prohibits, or
43-24 otherwise regulates the acceptance or use.
43-25 SECTION 7.05. Sections 403.034(a) and (b), Government Code,
43-26 are amended to read as follows:
43-27 (a) The comptroller shall maintain information concerning
44-1 all entries to the state general ledger. The ledger contains
44-2 controlling and fund accounts, including:
44-3 (1) a comptroller [state treasurer] cash account;
44-4 (2) a comptroller [state treasurer] bond account;
44-5 (3) a comptroller [state treasurer] securities in
44-6 trust account;
44-7 (4) a warrants payable account;
44-8 (5) agency suspense accounts;
44-9 (6) securities in trust fund accounts showing net
44-10 balances, with a separate account for each fund;
44-11 (7) fund accounts for bonds owned, with a separate
44-12 account for each fund; and
44-13 (8) other accounts found necessary.
44-14 (b) The comptroller shall charge the accounts in Subsection
44-15 (a) with [the state treasurer with] the cash on hand and in
44-16 depository banks and with all bonds and securities held for state
44-17 funds or in trust. The comptroller shall charge the state treasury
44-18 [treasurer] with the totals of all deposits made into the state
44-19 treasury and credit the state treasury [treasurer] with warrants
44-20 paid, so that the state treasury balance in the comptroller's
44-21 [treasurer's] hands plus the balance in the state depositories
44-22 equals the balance shown by the accounts.
44-23 SECTION 7.06. Section 403.035(b), Government Code, is
44-24 amended to read as follows:
44-25 (b) The comptroller shall keep a suspense ledger that states
44-26 the accounts of the comptroller [state treasurer] with respect to
44-27 money and securities the comptroller [state treasurer] holds in
45-1 suspense, including money and securities deposited with the
45-2 comptroller [treasurer] pending a determination of whether the
45-3 deposits are for a state purpose. The comptroller shall
45-4 acknowledge the [treasurer's] receipt of the items held in suspense
45-5 and post these items to the ledger. The ledger must also include
45-6 accounts for all money and securities received by heads of agencies
45-7 and deposited in suspense with the comptroller [state treasurer].
45-8 SECTION 7.07. Section 403.052, Government Code, is amended
45-9 to read as follows:
45-10 Sec. 403.052. INFORMATION CONCERNING DEPOSITS [WITH THE
45-11 TREASURER]. (a) The comptroller shall promulgate [coordinate with
45-12 the treasurer in the promulgation of] rules and develop [the
45-13 development] and implement [implementation of] procedures for the
45-14 efficient deposit of money and securities received and held by the
45-15 comptroller [state treasurer]. The rules and procedures shall be
45-16 consistent with the requirements of the uniform statewide
45-17 accounting system.
45-18 (b) The comptroller shall record and maintain adequate
45-19 information concerning deposits into the state treasury. This
45-20 deposit information shall consist of the records and data that the
45-21 comptroller deems necessary. [The comptroller, on request, shall
45-22 transmit required deposit information to the treasurer.]
45-23 SECTION 7.08. Sections 403.054(b)-(d), Government Code, are
45-24 amended to read as follows:
45-25 (b) The comptroller may not issue a replacement warrant if:
45-26 (1) the comptroller [state treasurer] has paid the
45-27 original warrant, unless the comptroller [treasurer] has obtained a
46-1 refund of the payment;
46-2 (2) the period during which the comptroller [state
46-3 treasurer] may pay the original warrant has expired under Section
46-4 404.046 or other applicable law;
46-5 (3) the payee of the replacement warrant is not the
46-6 same as the payee of the original warrant; or
46-7 (4) the comptroller is prohibited by Section 403.055
46-8 or 481.0841, or by Section 57.48, Education Code, from issuing a
46-9 warrant to the payee of the replacement warrant.
46-10 (c) A replacement warrant:
46-11 (1) must reflect the same fiscal year as the original
46-12 warrant; and
46-13 (2) may not be paid by the comptroller [state
46-14 treasurer] unless presented for payment to the comptroller
46-15 [treasurer] or a financial institution before the expiration of two
46-16 years after the close of the fiscal year in which the original
46-17 warrant was issued.
46-18 (d) The comptroller [state treasurer] may not pay an
46-19 original warrant after the comptroller [has notified the treasurer
46-20 that the comptroller] has issued a replacement warrant for the
46-21 original warrant.
46-22 SECTION 7.09. Sections 403.056(b) and (c), Government Code,
46-23 are amended to read as follows:
46-24 (b) After the warrant has been prepared, it shall be
46-25 delivered to the comptroller for the comptroller's authorization or
46-26 signature as provided by law. [Then the information concerning the
46-27 warrant that the state treasurer requires shall be delivered to the
47-1 state treasury and the state treasurer shall, as appropriate,
47-2 register it in the treasury, authorize or sign it as provided by
47-3 law, and return it to the comptroller's office.]
47-4 (c) The [Following return of the warrant, the] comptroller
47-5 shall deliver the warrant to the person entitled to receive it.
47-6 The comptroller may require the person to give a receipt for the
47-7 warrant. The comptroller may file that receipt in the comptroller's
47-8 office.
47-9 SECTION 7.10. Section 403.057, Government Code, is amended
47-10 to read as follows:
47-11 Sec. 403.057. SIGNATURE ON WARRANTS AFTER CHANGE IN OFFICE.
47-12 If the comptroller [or treasurer] ceases to hold or perform the
47-13 duties of office, existing stocks of warrants bearing the person's
47-14 printed name, signature, or facsimile signature may be used until
47-15 they are exhausted, and the person succeeding to the office or the
47-16 duties of the office shall have the warrants issued with:
47-17 (1) the obsolete printed name, signature, or facsimile
47-18 signature struck through;
47-19 (2) the successor's printed name substituted for the
47-20 obsolete printed name, signature, or facsimile signature; and
47-21 (3) the inscription "Printed name authorized by law"
47-22 near the successor's printed name.
47-23 SECTION 7.11. Section 403.060(c), Government Code, is
47-24 amended to read as follows:
47-25 (c) The comptroller shall promulgate [coordinate with the
47-26 treasurer in promulgating] rules for the effective and efficient
47-27 administration of this section.
48-1 SECTION 7.12. Section 403.072(b), Government Code, is
48-2 amended to read as follows:
48-3 (b) The comptroller shall accept the claim when presented,
48-4 prepare a warrant in payment of the claim before the date it
48-5 becomes due and payable, and hold the warrant for delivery until it
48-6 becomes due and payable. The warrant must be dated as of the due
48-7 date of the claim and may not be delivered to the claimant until
48-8 the due date. [The treasurer may countersign the warrant and make
48-9 entry to properly account for it.]
48-10 SECTION 7.13. Section 403.074(a), Government Code, is
48-11 amended to read as follows:
48-12 (a) The comptroller shall pay, from available funds
48-13 appropriated for that purpose, miscellaneous claims for which an
48-14 appropriation does not otherwise exist or for which the
48-15 appropriation has lapsed. For the purpose of this section,
48-16 "miscellaneous claims" does not include claims concerning warrants
48-17 that have expired because they were not presented to the
48-18 comptroller [state treasurer] for payment within the time period
48-19 specified in Section 210.012, Labor Code.
48-20 SECTION 7.14. Sections 403.075(c) and (e), Government Code,
48-21 are amended to read as follows:
48-22 (c) The comptroller may draw a deficiency warrant for[,] and
48-23 [the treasurer] may pay[,] only the part of a claim approved and
48-24 filed as provided by this section. If a sufficient deficiency
48-25 appropriation exists to meet the claim, the comptroller shall draw
48-26 a warrant and the claim shall be paid. If such an appropriation
48-27 does not exist or is not sufficient to pay the claim, the
49-1 comptroller shall issue a deficiency warrant and the claim may not
49-2 be paid until the legislature provides for the payment.
49-3 (e) The governor may not approve warrants under this section
49-4 in an aggregate amount exceeding $200,000. A warrant approved
49-5 above this amount is invalid and the comptroller [state treasurer]
49-6 may not redeem it.
49-7 SECTION 7.15. Section 403.077(b), Government Code, is
49-8 amended to read as follows:
49-9 (b) A warrant for the payment of the refund must be signed
49-10 by the comptroller and [state treasurer and] shall be drawn against
49-11 the fund or account into which the money was deposited. The refund
49-12 shall be made from funds appropriated for that purpose.
49-13 SECTION 7.16. Section 403.0915, Government Code, is amended
49-14 to read as follows:
49-15 Sec. 403.0915. DORMANT FUND OR ACCOUNT. At any time the
49-16 comptroller, [with the consent and approval of the state treasurer
49-17 and] with notification to the state auditor, may transfer to the
49-18 general revenue fund a balance in a dormant fund or account if the
49-19 source of the fund or account is unknown or the purpose for which
49-20 it was collected is moot. The legislature at any time after the
49-21 transfer may appropriate the balance as a refund if the source and
49-22 purpose of the fund or account become known and active. The
49-23 comptroller shall report any dormant funds or accounts to the Funds
49-24 Review Advisory Committee.
49-25 SECTION 7.17. Section 403.092(a), Government Code, is
49-26 amended to read as follows:
49-27 (a) To allow efficient management of the cash flow of the
50-1 general revenue fund and to avoid temporary cash deficiency in that
50-2 fund, the comptroller[, with the consent of the state treasurer,]
50-3 may transfer surplus cash, except constitutionally dedicated
50-4 revenues, between funds in the state treasury. As soon as
50-5 practicable the comptroller shall return the surplus cash to the
50-6 fund from which it was transferred. The comptroller shall preserve
50-7 the fund equity and [the state treasurer] shall allocate the
50-8 depository interest as if the transfer had not been made.
50-9 SECTION 7.18. Section 403.096(b), Government Code, is
50-10 amended to read as follows:
50-11 (b) The committee is composed of the following members or
50-12 their designees:
50-13 (1) the governor;
50-14 (2) the comptroller;
50-15 (3) [the state treasurer;]
50-16 [(4)] the state auditor; and
50-17 (4) [(5)] the director of the Legislative Budget
50-18 Board.
50-19 SECTION 7.19. Section 403.112(c), Government Code, is
50-20 amended to read as follows:
50-21 (c) A controlling account shall be balanced monthly [and
50-22 shall correspond with the similar accounts kept by the state
50-23 treasurer].
50-24 SECTION 7.20. Sections 403.204(a) and (c), Government Code,
50-25 are amended to read as follows:
50-26 (a) A suit authorized by this subchapter must be brought
50-27 against the public official charged with the duty of collecting the
51-1 tax or fee, the comptroller [treasurer], and the attorney general.
51-2 (c) A copy of the written protest as originally filed must
51-3 be attached to the original petition filed by the person paying the
51-4 tax or fee with the court and to the copies of the original
51-5 petition served on the comptroller [treasurer], the attorney
51-6 general, and the public official charged with the duty of
51-7 collecting the tax or fee.
51-8 SECTION 7.21. Section 403.209, Government Code, is amended
51-9 to read as follows:
51-10 Sec. 403.209. SUBMISSION OF PROTEST PAYMENTS TO COMPTROLLER
51-11 [TREASURER]. (a) An officer who receives payments of taxes or
51-12 fees made under protest as required by Section 403.202 shall each
51-13 day send to the comptroller [treasurer] the payments, a list of the
51-14 persons making the payments, and a written statement that the
51-15 payments were made under protest.
51-16 (b) The comptroller [treasurer] shall deposit each payment
51-17 made under protest in the General Revenue Fund or to the fund or
51-18 funds to which the tax or fee is allocated by law.
51-19 (c) The comptroller [treasurer] or the officer who receives
51-20 a payment made under protest, if designated by the comptroller
51-21 [treasurer], shall maintain detailed records of the payment made
51-22 under protest.
51-23 (d) For purposes of a tax or fee paid under protest under
51-24 this subchapter, the interest to be credited on the tax or fee is
51-25 an amount equal to the amount of interest that would have been
51-26 earned by the tax or fee if the tax or fee had been deposited into
51-27 the suspense account of the comptroller [treasurer].
52-1 SECTION 7.22. Sections 403.211(a), (b), and (d), Government
52-2 Code, are amended to read as follows:
52-3 (a) If a suit under this subchapter results in a final
52-4 determination that all or part of the money paid under protest was
52-5 unlawfully demanded by the public official and belongs to the
52-6 payer, the comptroller [treasurer], as soon as practicable on or
52-7 after September 1 of the first year of the first state biennium
52-8 that begins after the date of the final determination of the suit,
52-9 shall credit the proper amount, with the interest credited on that
52-10 amount, against any other amount finally determined to be due to
52-11 the state from the payer according to information in the custody of
52-12 the comptroller [treasurer] and shall refund the remainder to the
52-13 payer by the issuance of a refund warrant.
52-14 (b) A refund warrant shall be written and signed by the
52-15 comptroller [and countersigned by the treasurer].
52-16 (d) The [treasurer shall return to the] comptroller shall
52-17 deliver each refund warrant issued[, and the comptroller shall
52-18 deliver it] to the person entitled to receive it.
52-19 SECTION 7.23. Section 403.212(d), Government Code, is
52-20 amended to read as follows:
52-21 (d) A state official who receives a payment or bond under
52-22 Subsection (a)(2) shall deliver the payment or bond to the
52-23 comptroller [treasurer]. The comptroller [treasurer] shall deposit
52-24 a payment made under Subsection (a)(2)(A) to the credit of each
52-25 fund to which the tax, fee, or penalty is allocated by law.
52-26 SECTION 7.24. Section 403.219(a), Government Code, is
52-27 amended to read as follows:
53-1 (a) If a restraining order or injunction is finally
53-2 dismissed or dissolved and a bond was filed, the comptroller
53-3 [treasurer] shall make demand on the applicant and the applicant's
53-4 sureties for the immediate payment of all taxes, fees, and
53-5 penalties due the state.
53-6 SECTION 7.25. Section 403.220, Government Code, is amended
53-7 to read as follows:
53-8 Sec. 403.220. CREDIT OR REFUND. (a) If the final judgment
53-9 in a suit under this subchapter maintains the right of the
53-10 applicant for a temporary or permanent injunction to prevent the
53-11 collection of the tax or fee, the comptroller [treasurer] shall
53-12 credit the amount of the tax or fee, with the interest on that
53-13 amount, against any other amount finally determined to be due to
53-14 the state from the applicant according to information in the
53-15 custody of the comptroller [treasurer] and shall refund the
53-16 remainder to the applicant. The credit or refund shall be made as
53-17 soon as practicable on or after September 1 of the first year of
53-18 the first state biennium that begins after the date of the final
53-19 judgment.
53-20 (b) For purposes of this section, the interest to be paid on
53-21 a refund of a tax or fee is an amount equal to the amount of
53-22 interest that would have been earned by the tax or fee if the tax
53-23 or fee had been paid into the suspense account of the comptroller
53-24 [treasurer].
53-25 SECTION 7.26. The heading to Chapter 404, Government Code,
53-26 is amended to read as follows:
53-27 CHAPTER 404. STATE TREASURY OPERATIONS OF
54-1 COMPTROLLER [TREASURER]
54-2 SECTION 7.27. Sections 404.001(4), (8), and (9), Government
54-3 Code, are amended to read as follows:
54-4 (4) "Market value" means the fair and reasonable
54-5 prevailing price at which a security is being sold on the open
54-6 market at the time of the appraisement of the security by the
54-7 comptroller [treasurer].
54-8 (8) ["Treasurer" means the state treasurer.]
54-9 [(9)] "Treasury" means state funds subject to the
54-10 custody and control of the comptroller [state treasurer] and
54-11 available for appropriation by the legislature.
54-12 SECTION 7.28. Section 404.011(a), Government Code, is
54-13 amended to read as follows:
54-14 (a) The State Depository Board is composed of [the
54-15 treasurer,] one citizen of the state who is appointed by the
54-16 governor with the advice and consent of the senate for a two-year
54-17 term, the banking commissioner, and the comptroller.
54-18 SECTION 7.29. Sections 404.0212(b), (e), and (f), Government
54-19 Code, are amended to read as follows:
54-20 (b) A regulated financial institution that accepts a deposit
54-21 from the comptroller [treasurer] shall report to the comptroller
54-22 [treasurer] the rating assigned to the financial institution under
54-23 12 U.S.C. Section 2906.
54-24 (e) On receipt of notice that the rating of a financial
54-25 institution is changed to a rating below that required by this
54-26 section, the comptroller [treasurer] shall take immediate action to
54-27 transfer all state funds subject to the custody or control of the
55-1 comptroller [treasurer] that are on deposit with the institution to
55-2 a qualified financial institution.
55-3 (f) The depository contract between a regulated financial
55-4 institution and the board must authorize the withdrawal without
55-5 penalty of the state funds subject to the custody or control of the
55-6 comptroller [treasurer] that are on deposit with the institution if
55-7 the rating of the institution is changed to a rating below that
55-8 required by Subsection (d).
55-9 SECTION 7.30. Sections 404.022(a), (b), (d), (e), and
55-10 (h)-(j), Government Code, are amended to read as follows:
55-11 (a) The comptroller [treasurer] is the secretary of the
55-12 board.
55-13 (b) The board, through its secretary, on the second Tuesday
55-14 in June of each odd-numbered year shall mail to each eligible
55-15 institution a letter stating the conditions with which applicants
55-16 for designation as a state depository must comply. The comptroller
55-17 [treasurer] shall keep on file in the comptroller's [treasurer's]
55-18 office and make available for inspection by any person a list of
55-19 institutions to which letters have been sent.
55-20 (d) An application shall be mailed to the comptroller
55-21 [treasurer] at Austin and must be received before noon of the first
55-22 day of August of the year in which the letter is sent. An
55-23 application received after that time may be considered at the
55-24 option of the board. The board shall charge a processing fee of
55-25 $25 for each application and shall deposit the fees to the credit
55-26 of the general revenue fund.
55-27 (e) On receipt of an application under this section, the
56-1 comptroller [treasurer] shall endorse on the application the date
56-2 of its receipt. The comptroller [treasurer] shall prepare a list
56-3 of the names of the applicants and the amount for which each has
56-4 applied and shall furnish a copy of the list to each board member.
56-5 (h) As soon as practicable after the board has made its
56-6 designations, the comptroller [treasurer] shall inform all
56-7 applicants whether they have been designated as state depositories.
56-8 (i) If more depositories are required at any time, the
56-9 comptroller [treasurer] may send to all eligible institutions
56-10 notice that further applications for designation as a state
56-11 depository for the unexpired term will be accepted.
56-12 (j) The board may execute a simplified version of a
56-13 depository agreement with an eligible institution desiring to hold
56-14 $98,000 or less in state deposits that are fully insured by the
56-15 Federal Deposit Insurance Corporation or the National Credit Union
56-16 Share Insurance Fund. The comptroller [treasurer] may give the
56-17 institution contingent approval as a depository until the board's
56-18 next scheduled meeting.
56-19 SECTION 7.31. Sections 404.0221(b) and (f), Government Code,
56-20 are amended to read as follows:
56-21 (b) For the purposes of Section 404.022, collateral eligible
56-22 to be pledged with the comptroller [treasurer] to secure state
56-23 deposits includes:
56-24 (1) direct obligations of or obligations the principal
56-25 and interest of which are guaranteed by the United States
56-26 government;
56-27 (2) direct obligations of or obligations guaranteed by
57-1 agencies or instrumentalities of the United States government; and
57-2 (3) a general or special obligation issued by a public
57-3 agency and approved by the attorney general that is payable from
57-4 taxes, revenues, or both.
57-5 (f) The comptroller [treasurer] may reject at any time
57-6 collateral tendered by a state depository without assigning a
57-7 reason for the rejection, and the comptroller's [treasurer's]
57-8 action is final and not subject to review.
57-9 SECTION 7.32. Sections 404.024(a), (b), and (f)-(i),
57-10 Government Code, are amended to read as follows:
57-11 (a) The board may determine and designate the amount of
57-12 state funds to be deposited in time deposits in state depositories.
57-13 The comptroller [treasurer] shall recommend to the board a maximum
57-14 limit for state funds deposited by the comptroller [treasurer] at
57-15 approved state depositories. The percentage of state funds to be
57-16 deposited in state depositories shall be based on the interest
57-17 rates available in competing investments, the demand for funds from
57-18 Texas banks, and the state's liquidity requirements. The
57-19 comptroller [treasurer] shall provide periodic investment reports
57-20 to the board.
57-21 (b) State funds not deposited in state depositories shall be
57-22 invested by the comptroller [treasurer] in:
57-23 (1) direct security repurchase agreements;
57-24 (2) reverse security repurchase agreements;
57-25 (3) direct obligations of or obligations the principal
57-26 and interest of which are guaranteed by the United States;
57-27 (4) direct obligations of or obligations guaranteed by
58-1 agencies or instrumentalities of the United States government;
58-2 (5) bankers' acceptances that:
58-3 (A) are eligible for purchase by the Federal
58-4 Reserve System;
58-5 (B) do not exceed 270 days to maturity; and
58-6 (C) are issued by a bank that has received the
58-7 highest short-term credit rating by a nationally recognized
58-8 investment rating firm;
58-9 (6) commercial paper that:
58-10 (A) does not exceed 270 days to maturity; and
58-11 (B) except as provided by Subsection (i), has
58-12 received the highest short-term credit rating by a nationally
58-13 recognized investment rating firm;
58-14 (7) contracts written by the treasury in which the
58-15 treasury grants the purchaser the right to purchase securities in
58-16 the treasury's marketable securities portfolio at a specified price
58-17 over a specified period and for which the treasury is paid a fee
58-18 and specifically prohibits naked-option or uncovered option
58-19 trading;
58-20 (8) direct obligations of or obligations guaranteed by
58-21 the Inter-American Development Bank, the International Bank for
58-22 Reconstruction and Development (the World Bank), the African
58-23 Development Bank, the Asian Development Bank, and the International
58-24 Finance Corporation that have received the highest credit rating by
58-25 a nationally recognized investment rating firm;
58-26 (9) bonds issued, assumed, or guaranteed by the State
58-27 of Israel;
59-1 (10) obligations of a state or an agency, county,
59-2 city, or other political subdivision of a state; and
59-3 (11) mutual funds secured by obligations that are
59-4 described by Subdivisions (1) through (6).
59-5 (f) The comptroller [treasurer] by rule may define
59-6 derivative investments other than those described by Subsection
59-7 (e). The treasury may not purchase investments defined by rule
59-8 adopted under this subsection in an amount that at the time of
59-9 purchase will cause the aggregate value of the investments to
59-10 exceed five percent of the treasury's total investments.
59-11 (g) To the extent practicable, the comptroller [treasurer]
59-12 shall give first consideration to Texas banks when investing in
59-13 direct security repurchase agreements.
59-14 (h) The comptroller [treasurer] may not use state funds to
59-15 invest in or purchase obligations of a private corporation or other
59-16 private business entity doing business in Northern Ireland unless
59-17 the corporation or other entity:
59-18 (1) adheres to fair employment practices; and
59-19 (2) does not discriminate on the basis of race, color,
59-20 religion, sex, national origin, or disability.
59-21 (i) Notwithstanding Subsection (b)(6)(B), the comptroller
59-22 [treasurer] may purchase commercial paper with a rating lower than
59-23 the rating required by that paragraph to provide liquidity for
59-24 commercial paper issued by the comptroller [treasurer] or an agency
59-25 of the state.
59-26 SECTION 7.33. Sections 404.0245(b) and (c), Government Code,
59-27 are amended to read as follows:
60-1 (b) Subject to the limitations of Subsection (c), the board
60-2 may determine and designate the amount of state funds that shall be
60-3 invested by the comptroller [treasurer] in hedging transactions in
60-4 crude oil and natural gas futures contracts and options on crude
60-5 oil and natural gas futures contracts that are traded on an
60-6 established exchange regulated by the Securities and Exchange
60-7 Commission or the Commodity Futures Trading Commission.
60-8 (c) The principal amount of state funds invested and
60-9 outstanding in hedging transactions on any one day may not exceed
60-10 $500,000 with a maximum risk of loss of $5,000,000 in a biennium.
60-11 The total principal amount of state funds that may be invested by
60-12 the comptroller [treasurer] in hedging transactions during any one
60-13 biennium may not exceed the amount of money credited to the
60-14 unclaimed money fund for that biennium and attributable to the
60-15 remittance of mineral proceeds under Chapter 75, Property Code.
60-16 Any premium incurred in connection with hedging transactions may be
60-17 paid only from funds appropriated for that purpose.
60-18 SECTION 7.34. Section 404.026, Government Code, is amended
60-19 to read as follows:
60-20 Sec. 404.026. ELEEMOSYNARY FUNDS. The board may invest the
60-21 permanent funds of the Texas School for the Blind and Visually
60-22 Impaired, Texas School for the Deaf, Austin State Hospital, and
60-23 Corsicana State Home and may invest other permanent funds, the
60-24 investment of which is not otherwise provided for, that have $1,000
60-25 or more on deposit with the comptroller [treasurer] that are not
60-26 invested. The board shall invest the funds in the same classes of
60-27 bonds as are authorized for investment of the permanent school
61-1 fund.
61-2 SECTION 7.35. Sections 404.027(a) and (b), Government Code,
61-3 are amended to read as follows:
61-4 (a) The comptroller [treasurer] may enter into credit
61-5 agreements or other similar agreements to provide liquidity for
61-6 obligations issued for governmental purposes by an agency of the
61-7 state if the agreements do not conflict with the liquidity needs of
61-8 the treasury. An agency may enter into a credit agreement with the
61-9 comptroller [treasurer] on the issuance of obligations or at a
61-10 later date as agreed to by the comptroller [treasurer] and the
61-11 agency.
61-12 (b) The comptroller [treasurer] may charge reasonable costs
61-13 to provide services under this section.
61-14 SECTION 7.36. Section 404.031, Government Code, is amended
61-15 to read as follows:
61-16 Sec. 404.031. COLLATERAL REQUIREMENTS. (a) The comptroller
61-17 [treasurer] shall determine the market value of securities pledged
61-18 to secure state funds for the purpose of determining the adequacy
61-19 of the amount of collateral. The comptroller's [treasurer's]
61-20 valuation of the securities is final and not subject to review.
61-21 (b) If the market value of the securities pledged by a
61-22 depository becomes less than the amount of funds on deposit in the
61-23 depository, the comptroller [treasurer] shall require that
61-24 additional collateral be pledged immediately or deposits reduced.
61-25 If the collateral pledged by a state depository is in excess of the
61-26 amount required by this chapter, the comptroller [treasurer] may
61-27 permit the release of the excess collateral. If the balance of
62-1 state funds in a state depository is increased, the depository
62-2 shall increase the collateral for the deposits to the amount
62-3 required by this chapter.
62-4 (c) A state depository may substitute one group of eligible
62-5 securities for another group of securities pledged with the
62-6 comptroller [treasurer].
62-7 (d) Except as provided by Subsections (e) and (f), a state
62-8 depository shall deposit any pledged securities with the
62-9 comptroller [treasurer]. The comptroller [treasurer] shall give
62-10 the depository a receipt for the securities and place them in the
62-11 vaults of the treasury.
62-12 (e) Instead of depositing pledged securities with the
62-13 comptroller [treasurer], a depository may deposit them with a
62-14 custodian. The custodian may be the Texas Treasury Safekeeping
62-15 Trust Company or a state or national bank that has a capital stock
62-16 and permanent surplus of not less than $5 million, is a state
62-17 depository, and has been designated as a custodian by the
62-18 comptroller [treasurer]. The state depository and the custodian of
62-19 securities pledged by that state depository may not be the same
62-20 bank or be owned by the same bank holding company. The securities
62-21 shall be held in trust by the custodian to secure funds deposited
62-22 by the comptroller [treasurer] in the state depository pledging the
62-23 securities. On receipt of the securities, the custodian shall
62-24 immediately, by book entry or otherwise, identify on its books and
62-25 records the pledge of the securities and shall promptly issue and
62-26 deliver to the comptroller [treasurer] controlled trust receipts
62-27 for the securities pledged. The security evidenced by the trust
63-1 receipts is subject to inspection by the comptroller [treasurer] at
63-2 any time. The depository pledging the securities shall pay the
63-3 charges, if any, of the custodian bank for accepting and holding
63-4 the securities. The custodian, acting alone or through a permitted
63-5 institution, is for all purposes under state law and
63-6 notwithstanding Chapters 8 and 9, Business & Commerce Code, the
63-7 bailee or agent of the comptroller [treasurer]. The security
63-8 interest arising out of a pledge of securities to secure deposits
63-9 of the state is created, attaches, and is perfected for all
63-10 purposes under state law from the time the custodian identifies the
63-11 pledge of the securities on its books and records and issues the
63-12 trust receipts. The security interest remains perfected as of that
63-13 time in the hands of all subsequent custodians and permitted
63-14 institutions.
63-15 (f) Instead of depositing pledged securities with the
63-16 comptroller [treasurer], a state depository may deposit pledged
63-17 securities with the Federal Reserve Bank of Dallas or the Federal
63-18 Home Loan Bank of Dallas. The securities shall be held by the bank
63-19 to secure funds deposited by the comptroller [treasurer] in the
63-20 state depository pledging the securities. When the pledged
63-21 securities are deposited, the bank may apply book entry to the
63-22 securities. The records of the bank shall at all times reflect the
63-23 name of the state depository depositing the pledged securities, and
63-24 the bank shall issue an advice of transaction to the comptroller
63-25 [treasurer] and the state depository pledging the securities.
63-26 (g) In this section, "permitted institution" means a Federal
63-27 Reserve Bank, a Federal Home Loan Bank, a "clearing corporation" as
64-1 defined by Section 8.102(c), Business & Commerce Code, the Texas
64-2 Treasury Safekeeping Trust Company, a state depository, and any
64-3 state or nationally chartered bank or trust company that is
64-4 controlled by a bank holding company that controls a state
64-5 depository. Neither the state depository that pledges the
64-6 securities nor any bank that is controlled by a bank holding
64-7 company that controls that state depository may be the permitted
64-8 institution with respect to the particular securities pledged by
64-9 that state depository. A custodian holding in trust securities of
64-10 a state depository under Subsections (e) and (f) may deposit the
64-11 pledged securities with a permitted institution if the permitted
64-12 institution is the third party to the transaction. The securities
64-13 shall be held by the permitted institution to secure funds
64-14 deposited by the comptroller [treasurer] in the state depository
64-15 pledging the securities. On receipt of the securities, the
64-16 permitted institution shall immediately issue to the custodian an
64-17 advice of transaction or other document evidencing the deposit of
64-18 the securities. When the pledged securities held by a custodian
64-19 are deposited, the permitted institution may apply book entry
64-20 procedures to the securities. The records of the permitted
64-21 institution shall at all times reflect the name of the custodian
64-22 depositing the pledged securities. The custodian shall immediately
64-23 issue and deliver to the comptroller [treasurer] controlled trust
64-24 receipts for the pledged securities. The trust receipts shall
64-25 indicate that the custodian has deposited with the permitted
64-26 institution the pledged securities held in trust for the state
64-27 depository pledging the securities. A legal action or proceeding
65-1 brought by or against the state, arising out of or in connection
65-2 with the duties of the state depository, the custodian, or other
65-3 permitted institution under this subchapter must be brought and
65-4 maintained in state district court in Travis County. In this
65-5 section, "control" and "bank holding company" have the meanings
65-6 assigned by Article 2, Chapter I, The Texas Banking Code (Article
65-7 342-102, Vernon's Texas Civil Statutes).
65-8 (h) On request of the owner or owners, the comptroller
65-9 [treasurer] or custodian bank may surrender interest coupons or
65-10 other evidence of interest on securities deposited by state
65-11 depositories, when the interest is due, if the securities are
65-12 sufficient to meet the collateral requirements of the state.
65-13 (i) A state depository making deposits of securities with
65-14 the comptroller [treasurer] may cause the securities to be endorsed
65-15 or stamped, as it considers proper, to show that they are deposited
65-16 as collateral and not transferable except as provided by this
65-17 chapter.
65-18 (j) If a state depository fails to credit a deposit or part
65-19 of a deposit made by the comptroller [treasurer], the comptroller
65-20 [treasurer] may immediately sell or otherwise convert the
65-21 securities to money.
65-22 (k) The comptroller [treasurer] regularly shall provide the
65-23 board with a status report relating to the collateral position of
65-24 the treasury.
65-25 SECTION 7.37. Section 404.032, Government Code, is amended
65-26 to read as follows:
65-27 Sec. 404.032. DEPOSITS. (a) The comptroller [treasurer]
66-1 shall deposit state funds in depositories that satisfy the
66-2 collateral requirements of this chapter. The comptroller
66-3 [treasurer] may deposit funds designated as demand deposits only in
66-4 institutions designated as depositories by the board.
66-5 (b) The comptroller [treasurer] shall monitor the financial
66-6 stability of state depositories in which state deposits are held
66-7 and take appropriate action to protect state funds.
66-8 (c) A state depository shall collect all checks, drafts, and
66-9 demands for money deposited with it by the comptroller [treasurer].
66-10 If the depository uses due diligence, it is not liable for the
66-11 collections until the proceeds of the collections are duly received
66-12 by the depository bank. An expense incurred in collection that the
66-13 depository is not permitted to pay by reason of an Act of Congress
66-14 or a rule or regulation adopted under such an Act by the board of
66-15 governors of the Federal Reserve System or the board of directors
66-16 of the Federal Deposit Insurance Corporation shall be charged to
66-17 and paid by the comptroller [treasurer] out of money appropriated
66-18 by the legislature for that purpose.
66-19 (d) The comptroller [treasurer] shall keep sufficient money
66-20 on deposit in demand deposit accounts in depositories designated by
66-21 the board as clearing institutions to meet all current claims on
66-22 the state. Items received by the comptroller [treasurer] for
66-23 collection shall be deposited with a clearing institution to be
66-24 credited to the demand deposit account in the depository. Checks,
66-25 drafts, or warrants drawn by the comptroller [treasurer] for the
66-26 payment of obligations due by the state may be drawn on such an
66-27 account in such a depository or on the demand deposit account in
67-1 another state depository so that the checks, drafts, or warrants of
67-2 the state may at all times pass current as cash.
67-3 SECTION 7.38. Section 404.033, Government Code, is amended
67-4 to read as follows:
67-5 Sec. 404.033. WITHDRAWALS AND REMITTANCES. (a) Funds on
67-6 deposit with a depository are subject to withdrawal at any time by
67-7 the comptroller [treasurer], except funds designated as time
67-8 deposits, which may be withdrawn in the manner agreed on in the
67-9 contract under which the funds were deposited. The depository
67-10 shall remit the withdrawal on demand and free of charge, except
67-11 charges that the depository is not permitted to pay by reason of an
67-12 Act of Congress or a rule or regulation adopted under such an Act
67-13 by the board of governors of the Federal Reserve System or the
67-14 board of directors of the Federal Deposit Insurance Corporation.
67-15 (b) A remittance to the comptroller [treasurer] by a state
67-16 depository or another person may be made by any method authorized
67-17 by the comptroller [treasurer], including cash, money order, or
67-18 bank draft. The liability of the depository or other person making
67-19 the remittance continues until the money is received by the
67-20 comptroller [treasurer]. A depository that refuses to make a
67-21 remittance required by this chapter forfeits its right to receive
67-22 further deposits, on order of the board. The board may withdraw
67-23 all funds from the depository, which after the withdrawal ceases to
67-24 be a state depository.
67-25 SECTION 7.39. Section 404.041, Government Code, is amended
67-26 to read as follows:
67-27 Sec. 404.041. TRUSTEE. The comptroller [treasurer] is the
68-1 trustee of funds in the treasury.
68-2 SECTION 7.40. Section 404.042, Government Code, is
68-3 transferred to Subchapter A, Chapter 403, Government Code,
68-4 redesignated as Section 403.008, Government Code, and amended to
68-5 read as follows:
68-6 Sec. 403.008 [404.042]. BONDS AND EMPLOYEES. (a) In
68-7 addition to the bonds otherwise required by this chapter, the
68-8 comptroller [Not later than the 20th day after the date on which
68-9 notice of election is received and before entering the duties of
68-10 office, the treasurer shall give a bond with a good and solvent
68-11 surety company authorized to do business in this state, in the sum
68-12 of $70,000, payable to and approved by the governor and conditioned
68-13 that the treasurer shall faithfully execute the duties of that
68-14 office. Expenses necessary and incident to the execution of the
68-15 bond shall be paid by the state.]
68-16 [(b) The treasurer] shall [also] give any special bond
68-17 required by an Act of Congress or by a federal department or
68-18 official to protect federal funds deposited with the comptroller
68-19 [treasurer]. Expenses necessary and incident to the execution of
68-20 the bond shall be paid by the state.
68-21 (b) [(c) The treasurer shall appoint a first assistant who
68-22 shall give bond with a good and solvent surety company authorized
68-23 to do business in this state, in the sum of $70,000, payable to and
68-24 approved by the governor, and conditioned that the first assistant
68-25 shall faithfully execute the duties of that office. If the
68-26 treasurer is not able to act, the first assistant shall sign the
68-27 first assistant's own name as acting treasurer and perform the
69-1 duties of the treasurer. The legal acts and signatures of the
69-2 first assistant as acting treasurer are valid as the acts and
69-3 signatures of the treasurer.]
69-4 [(d)] The comptroller [treasurer] shall appoint [other]
69-5 employees that are authorized by law. Employees who as part of
69-6 their duties handle money, or drafts, checks, bills of exchange,
69-7 warrants, securities, or other evidences of debt that are or may be
69-8 convertible into money, or other valuable property shall give bond
69-9 with a good and solvent surety company authorized to do business in
69-10 this state, payable to the comptroller [treasurer] in the sum that
69-11 the comptroller [treasurer] requires, conditioned that the employee
69-12 shall faithfully execute and perform the duties of that employee's
69-13 position. The comptroller [treasurer] may also require an employee
69-14 to be insured in the manner and in the sum that the comptroller
69-15 [treasurer] requires.
69-16 (c) [(e)] The expense incident to the execution of the bonds
69-17 and any insurance of the chief clerk [first assistant] and other
69-18 employees shall be paid by the state.
69-19 SECTION 7.41. Section 404.043, Government Code, is amended
69-20 to read as follows:
69-21 Sec. 404.043. SECURITY OFFICERS. The comptroller
69-22 [treasurer] may employ security officers to provide needed security
69-23 services for the treasury and may commission the officers as peace
69-24 officers. The security officers shall give bond in the same manner
69-25 required [by this chapter] for employees of the comptroller who
69-26 handle money or other valuable property as part of their duties.
69-27 SECTION 7.42. Section 404.044, Government Code, is
70-1 transferred to Subchapter A, Chapter 403, Government Code,
70-2 redesignated as Section 403.009, Government Code, and amended to
70-3 read as follows:
70-4 Sec. 403.009 [404.044]. REVIEW OF BONDS. The attorney
70-5 general[, with the comptroller,] shall on the first day of the
70-6 fiscal year examine the bonds and insurance of the comptroller
70-7 [treasurer], chief clerk [first assistant], and other employees and
70-8 make diligent inquiry into the condition of the sureties on the
70-9 bonds and policies. If the attorney general finds that a bond or
70-10 insurance policy is not sufficient to protect and secure the state,
70-11 the attorney general shall notify the comptroller [treasurer] in
70-12 writing of the insufficiency of the bond or policy, and the
70-13 comptroller [treasurer] shall secure a sufficient bond or
70-14 insurance.
70-15 SECTION 7.43. Section 404.045, Government Code, is amended
70-16 to read as follows:
70-17 Sec. 404.045. RECEIPT OF MONEY [FROM COMPTROLLER]. The
70-18 comptroller [treasurer] shall receive all money paid into the
70-19 treasury in accordance with the procedures required by Section
70-20 403.052.
70-21 SECTION 7.44. Section 404.046, Government Code, is amended
70-22 to read as follows:
70-23 Sec. 404.046. PAYMENT FROM TREASURY. The comptroller
70-24 [treasurer] shall [countersign and] pay warrants [drawn by] the
70-25 comptroller draws on the treasury that are authorized by law.
70-26 Money may not be paid out of the treasury except on the warrants of
70-27 the comptroller, and a warrant may not be paid by the comptroller
71-1 [treasurer] unless presented for payment to a financial institution
71-2 or the comptroller [treasurer] before two years after the close of
71-3 the fiscal year in which the warrant was issued. Claims for the
71-4 payment of warrants presented after that time may be presented to
71-5 the legislature for appropriations from which the claims may be
71-6 paid.
71-7 SECTION 7.45. Section 404.047, Government Code, is amended
71-8 to read as follows:
71-9 Sec. 404.047. ACCOUNTS. The comptroller [treasurer] shall
71-10 keep accounts of the receipt and expenditure of the money in the
71-11 treasury and close the accounts on August 31 of each year. The
71-12 comptroller [treasurer] shall keep proper records, distinguishing
71-13 between the receipts and disbursements of each fiscal year.
71-14 SECTION 7.46. Section 404.048, Government Code, is amended
71-15 to read as follows:
71-16 Sec. 404.048. REPORT. In addition to the reports required
71-17 by the constitution, the comptroller [treasurer] shall, as required
71-18 by the governor, submit a statement of the balance of money
71-19 remaining in the treasury and a summary of the receipts and
71-20 disbursements recorded by the treasury. The comptroller [treasurer]
71-21 shall exhibit all books, papers, and records on request by the
71-22 legislature or a branch or committee of the legislature.
71-23 SECTION 7.47. Section 404.049, Government Code, is amended
71-24 to read as follows:
71-25 Sec. 404.049. MONEY IN TREASURY. Money received by the
71-26 comptroller [treasurer] as trustee of funds in the treasury shall
71-27 be kept in the treasury. The comptroller [treasurer] may not keep
72-1 or receive into the treasury money, or the representative of money,
72-2 belonging to an individual except as provided by law. The
72-3 comptroller [treasurer] may not appropriate to the comptroller's
72-4 [treasurer's] own use or lend, sell, or exchange money, or the
72-5 representative of money, in the comptroller's [treasurer's] custody
72-6 or control.
72-7 SECTION 7.48. Section 404.050, Government Code, is amended
72-8 to read as follows:
72-9 Sec. 404.050. DELIVERY TO SUCCESSOR. The comptroller
72-10 [treasurer] shall, at the close of the term of office, deliver into
72-11 the possession of the successor comptroller [treasurer] the money,
72-12 securities, and all other property of the state in the
72-13 comptroller's [treasurer's] possession and the books, vouchers,
72-14 papers, evidences of property, and all other matters and things
72-15 pertaining to the office.
72-16 SECTION 7.49. Section 404.051, Government Code, is amended
72-17 to read as follows:
72-18 Sec. 404.051. MONEY RETURNED TO COUNTY OR MUNICIPALITY. If
72-19 money is in the treasury for the purpose of paying an obligation
72-20 due from a county or municipality and the comptroller finds from
72-21 certified copies of the records of the commissioners court or by
72-22 other satisfactory evidence that the obligation is no longer
72-23 outstanding against the county or municipality, the comptroller
72-24 shall draw a warrant on the treasury in favor of the county or
72-25 municipality for that amount of money and[. The treasurer] shall
72-26 pay the money [on the warrant of the comptroller] to the treasurer
72-27 of the county or municipality for the benefit of its general fund.
73-1 SECTION 7.50. Section 404.052, Government Code, is amended
73-2 to read as follows:
73-3 Sec. 404.052. OBLIGATIONS OF MUNICIPALITIES, DISTRICTS, AND
73-4 POLITICAL SUBDIVISIONS. (a) A bond, warrant, or other evidence of
73-5 indebtedness issued by a municipality, district, or political
73-6 subdivision of this state and any interest, at the discretion of
73-7 the municipality, district, or political subdivision may be payable
73-8 at the office of the comptroller [state treasurer]. The
73-9 comptroller [treasurer] serves as ex officio treasurer and fiscal
73-10 agent of the municipality, district, or political subdivision for
73-11 the purposes of receiving funds for the payment of the obligation
73-12 and interest, making payment of the obligation and interest, and
73-13 for all other purposes designated by this chapter or necessary or
73-14 incidental to the service.
73-15 (b) The comptroller [treasurer] shall deposit money received
73-16 by the comptroller [treasurer] under this section and shall keep a
73-17 separate account for each municipality, district, or political
73-18 subdivision. The payment of interest and principal due on an
73-19 obligation of the municipality, district, or political subdivision
73-20 must be on deposit with the comptroller [treasurer] not later than
73-21 five business days before the date of maturity. Any charges
73-22 incurred for late receipt of funds shall be assessed to the
73-23 municipality, district, or political subdivision. On receipt of
73-24 those amounts by the comptroller [treasurer], the comptroller
73-25 [treasurer] shall [request the comptroller to] issue a warrant for
73-26 the payment of amounts due.
73-27 (c) On return of the obligation, the treasurer of the
74-1 municipality, district, or political subdivision shall record the
74-2 payment and cancellation.
74-3 (d) The comptroller [treasurer] shall collect for the use of
74-4 the state from the municipality, district, or political subdivision
74-5 a fee in an amount established by rule of the comptroller
74-6 [treasurer] that is sufficient to pay the comptroller's
74-7 [treasurer's] cost of administration. The treasurer of the
74-8 municipality, district, or political subdivision, at the time of
74-9 the remittance for the payment of the maturing obligation or
74-10 interest, shall remit the fee to the comptroller [treasurer] as ex
74-11 officio treasurer of the municipality, district, or political
74-12 subdivision. On receipt of the fee, the comptroller [treasurer]
74-13 shall deposit it to the appropriate fund. The amount of the fees
74-14 earned, or as much as necessary, is reserved to the comptroller
74-15 [treasurer] to be used in the administration of this chapter. Any
74-16 balance remaining at the end of a fiscal year is available for use
74-17 in the next fiscal year.
74-18 (e) It is the general intent of this section to provide an
74-19 inexpensive and feasible means for the payment of bonds and
74-20 interest coupons issued by municipalities, districts, and political
74-21 subdivisions in the state at the office of the comptroller [state
74-22 treasurer], and this section shall be broadly construed to carry
74-23 out that intent. An official or a municipality, district, or
74-24 political subdivision concerned with the administration of this
74-25 section shall perform the acts and duties necessary or appropriate
74-26 to facilitate and expedite the operation of this section to the end
74-27 that bonds and interest may be promptly paid and the payment
75-1 clearly evidenced and accounted for.
75-2 (f) The comptroller [treasurer] shall cancel and return to
75-3 the municipality, district, or political subdivision depositing
75-4 funds for the payment of interest coupons or the retirement of
75-5 bonds the coupons and bonds that have matured or been retired by
75-6 purchase, together with a statement of the account of the
75-7 municipality, district, or subdivision showing the amounts received
75-8 and placed to its credit, service charges, and amount of coupons or
75-9 bonds retired. At the request of the municipality, district, or
75-10 political subdivision, the comptroller [treasurer] shall remit to
75-11 the municipality, district, or subdivision any balance remaining in
75-12 custody of the comptroller [treasurer] for more than two years for
75-13 which bonds or coupons have not been presented for payment. The
75-14 municipality, district, or political subdivision shall pay these
75-15 coupons or bonds when presented. A municipality, district, or
75-16 political subdivision is entitled at any reasonable time to a
75-17 statement of its account with the comptroller [treasurer].
75-18 SECTION 7.51. Section 404.054, Government Code, is amended
75-19 to read as follows:
75-20 Sec. 404.054. DAILY TOTALS. The comptroller [treasurer]
75-21 shall post the daily totals of deposits to the proper fund and
75-22 control accounts in the general ledger. The comptroller
75-23 [treasurer] shall keep a transit record, in which the comptroller
75-24 [treasurer] shall record the essential details of cash, checks,
75-25 money orders, drafts, or other items deposited or cashed each day,
75-26 showing the items deposited in each depository bank or otherwise
75-27 disposed of. The totals of deposits shall be charged to the
76-1 accounts of the respective depositories on the books of the
76-2 treasury. The comptroller [treasurer] shall keep a journal of all
76-3 journal vouchers or other memoranda of transfers between funds or
76-4 accounts. Postings shall be made from this journal to the proper
76-5 accounts on the books of the treasury.
76-6 SECTION 7.52. Section 404.055, Government Code, is amended
76-7 to read as follows:
76-8 Sec. 404.055. TIME AND DEMAND DEPOSITS. The comptroller
76-9 [treasurer] shall maintain records of the daily balances of and the
76-10 interest income from funds deposited by the comptroller [treasurer]
76-11 in time and demand deposit accounts in each bank acting as a state
76-12 depository. The comptroller [treasurer] shall maintain and
76-13 preserve those records according to the provisions of Subchapter D,
76-14 Chapter 441, and of Chapter 552.
76-15 SECTION 7.53. Section 404.056, Government Code, is amended
76-16 to read as follows:
76-17 Sec. 404.056. INFORMATION CONCERNING WARRANTS. (a) The
76-18 comptroller [treasurer] shall keep the information on each warrant
76-19 that is necessary to enable an adequate audit to be performed.
76-20 [The comptroller shall furnish the necessary information to the
76-21 treasurer.]
76-22 (b) The comptroller [treasurer] shall keep information on
76-23 the payment of each warrant, including the number and amount of
76-24 each warrant paid. [The treasurer, on request of the comptroller,
76-25 shall furnish the necessary information each day to the
76-26 comptroller.]
76-27 (c) The comptroller [treasurer] shall keep detailed
77-1 information concerning all canceled warrants.
77-2 SECTION 7.54. Section 404.057, Government Code, is amended
77-3 to read as follows:
77-4 Sec. 404.057. WARRANTS PAYABLE ACCOUNTS. (a) The
77-5 comptroller [treasurer] shall keep warrants payable accounts for
77-6 each fund.
77-7 (b) To each account, the comptroller [treasurer] shall
77-8 credit the daily totals of warrants issued and charged to each fund
77-9 so that the balance of those accounts represents the aggregate
77-10 amount of outstanding warrants.
77-11 SECTION 7.55. Section 404.058, Government Code, is amended
77-12 to read as follows:
77-13 Sec. 404.058. OUTSTANDING WARRANTS. The comptroller
77-14 [treasurer] shall compile information concerning outstanding
77-15 warrants, which must be consistent with the requirements of the
77-16 uniform statewide accounting system. [Upon request, this
77-17 information shall be sent to the comptroller.]
77-18 SECTION 7.56. Section 404.059, Government Code, is amended
77-19 to read as follows:
77-20 Sec. 404.059. GENERAL LEDGER ACCOUNTS. The comptroller
77-21 [treasurer] shall charge the daily totals of the warrants to the
77-22 respective funds and control accounts in the general ledger to
77-23 which they apply.
77-24 SECTION 7.57. Section 404.060, Government Code, is amended
77-25 to read as follows:
77-26 Sec. 404.060. PRIORITY OF WARRANTS. Warrants on the
77-27 treasury shall be on an equal basis with each other, except that if
78-1 a question arises concerning the priority of payment of the
78-2 warrants the comptroller [treasurer] shall determine the priority
78-3 of payment.
78-4 SECTION 7.58. Section 404.062(a), Government Code, is
78-5 amended to read as follows:
78-6 (a) This subsection applies to money the status of which is
78-7 undetermined or that is awaiting the time when it can be taken into
78-8 the treasury. The money shall be placed with the comptroller
78-9 [treasurer] and credited to the suspense account. The comptroller
78-10 [treasurer] shall [request and] maintain information about the
78-11 deposit of funds into the suspense account in accordance with
78-12 Section 403.052.
78-13 SECTION 7.59. Section 404.064, Government Code, is amended
78-14 to read as follows:
78-15 Sec. 404.064. OFFICE FEES. The comptroller [treasurer]
78-16 shall keep records of the fees earned by the comptroller under this
78-17 chapter [treasury department]. Those fees shall be deposited to
78-18 the appropriate fund in the treasury.
78-19 SECTION 7.60. Section 404.065, Government Code, is amended
78-20 to read as follows:
78-21 Sec. 404.065. CASH BALANCING. The comptroller [treasurer]
78-22 shall keep records for the purpose of arriving at the daily cash
78-23 balance. The daily totals of receipts and disbursements and the
78-24 amount of cash on hand and in depository banks shall be recorded.
78-25 SECTION 7.61. Section 404.066(a), Government Code, is
78-26 amended to read as follows:
78-27 (a) The general ledger kept by the comptroller [treasurer]
79-1 shall contain accounts for each fund. Those accounts shall be
79-2 credited with the existing balances and the daily totals of
79-3 deposits. Warrants issued and electronic funds transfers shall be
79-4 charged daily to the fund accounts.
79-5 SECTION 7.62. Sections 404.067(a), (b), and (c), Government
79-6 Code, are amended to read as follows:
79-7 (a) The comptroller [treasurer] shall keep custodial records
79-8 that shall reflect all deposits and releases of securities held by
79-9 the comptroller [treasurer] and belonging to a state investment
79-10 agency.
79-11 (b) The comptroller [treasurer] shall keep appropriate
79-12 ledger accounts that include a short description of each security
79-13 held in safekeeping for certain investment agencies of the state.
79-14 (c) The comptroller [treasurer] shall keep controlling or
79-15 total accounts of securities in the general ledger. Those accounts
79-16 shall be kept with respect to the total amount of bonds or other
79-17 securities belonging to each separate fund.
79-18 SECTION 7.63. Section 404.068, Government Code, is amended
79-19 to read as follows:
79-20 Sec. 404.068. STATE REGULATORY AGENCIES SAFEKEEPING AND
79-21 PLEDGED COLLATERAL. (a) The comptroller [treasurer] shall keep a
79-22 suitable system in which shall be entered all securities deposited
79-23 with the comptroller [treasurer] by state depositories and other
79-24 state agencies. The comptroller [treasurer] shall enter in the
79-25 system the authorizations to deposit or release the securities.
79-26 (b) The comptroller [treasurer] shall keep a securities
79-27 ledger in which appropriate accounts for each custodial agency are
80-1 kept. That ledger shall be balanced monthly against control
80-2 accounts kept in the general ledger and against corresponding
80-3 accounts kept by the comptroller.
80-4 SECTION 7.64. Section 404.069, Government Code, is amended
80-5 to read as follows:
80-6 Sec. 404.069. TRUST FUNDS. (a) All money and securities
80-7 deposited with the comptroller [treasurer] in trust for any legal
80-8 purpose may be received by the comptroller [treasurer] as provided
80-9 by Section 403.052. The money or securities shall be held in trust
80-10 by the comptroller [treasurer] in the same manner as the
80-11 departmental suspense account. Withdrawal shall be by warrant in
80-12 the case of money and withdrawal authorization in the case of
80-13 securities. Those instruments shall be issued by the comptroller
80-14 as provided by Sections 403.011 and 403.056.
80-15 (b) Money received in trust or for any legal purpose that is
80-16 placed in a suspense account or fund shall be handled by the
80-17 comptroller [treasurer] in the same manner as items deposited in
80-18 the departmental suspense account.
80-19 (c) Adequate registers, ledgers, and files shall be
80-20 maintained by the [treasurer and by the] comptroller to account for
80-21 the receiving and disposing of trust and suspense money and
80-22 securities. Those registers, ledgers, and files shall be known as
80-23 the trust and suspense record.
80-24 SECTION 7.65. Section 404.070, Government Code, is amended
80-25 to read as follows:
80-26 Sec. 404.070. VALIDITY OF VOIDED WARRANTS. (a) A warrant
80-27 issued by the comptroller in payment of refunds from a fund in the
81-1 treasury becomes void unless presented to the comptroller
81-2 [treasurer] for payment before two years after the end of the
81-3 fiscal year in which the warrant was issued. The sum of money
81-4 represented by a warrant voided under this section shall be
81-5 transferred by the comptroller from the fund from which the warrant
81-6 was originally issued to the general revenue fund. Claims for the
81-7 payment of a voided warrant may be presented to the legislature for
81-8 appropriation from which the warrant may be paid. This section
81-9 does not affect the laws regulating the payment of other warrants
81-10 issued by the comptroller.
81-11 (b) When a transfer of money under this section is made, the
81-12 comptroller [treasurer] shall prepare a list of the outstanding
81-13 warrants representing the transfer. The list must show the date of
81-14 the original warrant, the departmental suspense account against
81-15 which the warrant was originally drawn, the original warrant
81-16 number, and the amount of the original warrant. The list shall be
81-17 maintained as a permanent record in the office of the comptroller
81-18 [treasurer].
81-19 SECTION 7.66. Section 404.071, Government Code, is amended
81-20 to read as follows:
81-21 Sec. 404.071. DISPOSITION OF INTEREST ON INVESTMENTS. (a)
81-22 Interest received from investments of money in funds and accounts
81-23 in the charge of the comptroller [treasurer] shall be allocated on
81-24 a monthly basis as follows:
81-25 (1) the pro rata portion of the interest received due
81-26 to each constitutional fund shall be credited to that fund;
81-27 (2) the pro rata portion of the interest received due
82-1 to the game, fish, and water safety fund shall be credited to that
82-2 fund; and
82-3 (3) the remainder of the interest received, except the
82-4 portion required by other statutes to be credited on a pro rata
82-5 basis to protested payments, shall be credited to the general
82-6 revenue fund.
82-7 (b) The legislature may appropriate a portion of the
82-8 interest under Subsection (a) to the comptroller [treasurer] in the
82-9 amount necessary to reimburse the comptroller [treasurer] for costs
82-10 incurred in receiving, paying, accounting for, investing, and
82-11 safekeeping money in those funds and accounts. Amounts
82-12 appropriated for that purpose shall be deposited to the credit of
82-13 the fund established for the deposit of commissions reserved to the
82-14 comptroller [treasurer] under Section 404.052(d).
82-15 (c) If a deficit occurs in the general revenue fund, the
82-16 comptroller [treasurer] may place with a designated depository bank
82-17 an offsetting compensating balance in a special depository account
82-18 known as a special demand account secured by general revenue
82-19 warrants only.
82-20 (d) The comptroller [treasurer] is entitled to rely on the
82-21 opinion and advice of the attorney general for the proper
82-22 interpretation and application of this section.
82-23 (e) [The treasurer shall provide the comptroller information
82-24 necessary for the comptroller to compute the amount of interest to
82-25 be paid from the general revenue fund as a result of the federal
82-26 Cash Management Improvement Act of 1990 (31 U.S.C. Section 6501 et
82-27 seq.). The treasurer shall provide the information in accordance
83-1 with the comptroller's requirements for frequency, method, and
83-2 format.]
83-3 [(f)] For each special fund or account that contains
83-4 depository interest, the comptroller shall transfer from the fund
83-5 or account to the general revenue fund an amount equal to the
83-6 interest paid from the general revenue fund on behalf of the fund
83-7 or account. In this subsection:
83-8 (1) "Account" means a subdivision of a special fund or
83-9 the general revenue fund.
83-10 (2) "Fund" and "special fund" have the meanings
83-11 assigned by Section 403.001.
83-12 (f) [(g)] The comptroller may adopt procedures and rules to
83-13 administer Subsection (e) [Subsections (e) and (f)].
83-14 (g) [(h)] Subsection (e) applies [Subsections (e) and (f)
83-15 apply] notwithstanding any other law.
83-16 SECTION 7.67. Section 404.072, Government Code, is amended
83-17 to read as follows:
83-18 Sec. 404.072. EXAMINATION BY STATE AUDITOR. The
83-19 disbursements and receipts of the comptroller [treasurer] are
83-20 subject to audit by the state auditor in accordance with Chapter
83-21 321[, Government Code].
83-22 SECTION 7.68. Sections 404.073(a) and (b), Government Code,
83-23 are amended to read as follows:
83-24 (a) The comptroller [treasurer] may be the trustee of funds
83-25 or property outside the treasury.
83-26 (b) The comptroller [treasurer] functioning as the trustee
83-27 of funds or property outside the treasury may contract with the
84-1 treasury to manage the funds or property in a manner similar to the
84-2 management of funds in the treasury.
84-3 SECTION 7.69. Sections 404.094(a) and (b), Government Code,
84-4 are amended to read as follows:
84-5 (a) Fees, fines, penalties, taxes, charges, gifts, grants,
84-6 donations, and other funds collected or received by a state agency
84-7 under law shall be deposited in the treasury, credited to a special
84-8 fund or funds, and subject to appropriation only for the purposes
84-9 for which they are otherwise authorized to be expended or
84-10 disbursed. A deposit shall be made at the earliest possible time
84-11 that the treasury can accept those funds, but not later than the
84-12 third business day after the date of receipt. However, if an
84-13 agency determines that for seasonal or other extraordinary reasons
84-14 deposits cannot be made by the third business day after the date of
84-15 receipt, the agency shall provide written notice of the
84-16 determination to the state auditor and comptroller [treasurer] with
84-17 an explanation of the circumstances that require the delay. If the
84-18 state auditor finds that an agency has not complied with this
84-19 subsection, the state auditor shall make an estimate of any
84-20 resulting financial loss to the state, taking into consideration
84-21 compliance costs that would have been additionally incurred by the
84-22 agency, and report the amount to the legislative audit committee,
84-23 the governor, and the comptroller [treasurer].
84-24 (b) Money that is required by this subchapter or by another
84-25 law to be deposited in the treasury shall be deposited to the
84-26 credit of the general revenue fund unless the money is expressly
84-27 required to be deposited to another fund, trust fund, or special
85-1 account not in the general revenue fund. This subsection does not
85-2 affect the authority of the comptroller [or the treasurer] to
85-3 establish and use accounts necessary to manage and account for
85-4 state revenues and expenditures.
85-5 SECTION 7.70. Sections 404.095(b) and (e), Government Code,
85-6 are amended to read as follows:
85-7 (b) If during the preceding state fiscal year a person paid
85-8 a state agency a total of $500,000 or more in a category of
85-9 payments and the agency reasonably anticipates that during the
85-10 current state fiscal year the person will pay the agency $500,000
85-11 or more in a category of payments, the state agency shall require
85-12 the person to transfer payment amounts due to the agency in that
85-13 category, on or before the date the payment is due, by one of the
85-14 means of electronic funds transfer approved by the comptroller
85-15 [treasurer]. For the purposes of this section, each of the
85-16 following is a separate category of payments to a state agency:
85-17 (1) fees;
85-18 (2) fines;
85-19 (3) civil penalties;
85-20 (4) taxes, with each type of tax specified by the
85-21 comptroller [treasurer] being considered a separate category; and
85-22 (5) other payments to the state agency, excluding
85-23 extraordinary payments such as gifts, grants, donations, interest
85-24 and dividend income, and one time surcharges.
85-25 (e) The comptroller [treasurer] shall adopt rules specifying
85-26 approved means of electronic funds transfer and specifying the
85-27 types of taxes constituting separate categories. A person's
86-1 failure to comply with the rules may result in the assessment of a
86-2 penalty by the state agency in an amount equal to five percent of
86-3 the payment amount.
86-4 SECTION 7.71. Section 404.096, Government Code, is amended
86-5 to read as follows:
86-6 Sec. 404.096. RAPID DEPOSITS, TRANSACTIONS, AND TRANSFERS
86-7 REQUIRED. According to a schedule established by the comptroller
86-8 [treasurer], the comptroller [treasurer] shall conduct a study of
86-9 each state agency that collects or receives $50 million or more a
86-10 year from all sources or processes 100,000 or more transactions a
86-11 year of any kind to determine whether implementing a program for
86-12 the rapid administration of deposits or transactions by the agency
86-13 or for the rapid transfer of revenue or information to or from the
86-14 state agency would result in a net savings of state revenue. If
86-15 the comptroller [treasurer] determines that the implementation of a
86-16 program for the rapid administration of deposits or transactions or
86-17 for the rapid transfer of revenue or information to or from the
86-18 state agency would result in a net savings of state revenue, the
86-19 comptroller [treasurer] may require the agency to implement a
86-20 program for that rapid administration or transfer that meets the
86-21 specifications of the comptroller [treasurer].
86-22 SECTION 7.72. Section 404.102(a), Government Code, is
86-23 amended to read as follows:
86-24 (a) The comptroller [treasurer] may incorporate a
86-25 special-purpose trust company called the Texas Treasury Safekeeping
86-26 Trust Company. The purposes of the trust company are to provide a
86-27 means for the comptroller [treasurer] to obtain direct access to
87-1 services provided by the Federal Reserve System and to enable the
87-2 comptroller [treasurer] to manage, disburse, transfer, safekeep,
87-3 and invest funds and securities more efficiently and economically.
87-4 The comptroller [treasurer] may deposit funds and securities with
87-5 the trust company to achieve its purpose.
87-6 SECTION 7.73. Section 404.103(b), Government Code, is
87-7 amended to read as follows:
87-8 (b) The trust company may enter into contracts and trust
87-9 agreements or other fiduciary instruments with the comptroller
87-10 [treasurer], the Federal Reserve System, and other third parties.
87-11 The trust company shall be liable under those contracts in
87-12 accordance with the terms contained in the contracts.
87-13 Notwithstanding any other statute to the contrary, to the extent
87-14 permitted by the Texas Constitution and the contracts, trust
87-15 agreements, or other fiduciary instruments between the trust
87-16 company and the Federal Reserve System, the trust company's
87-17 obligations shall be guaranteed by the state, and the state
87-18 expressly waives all defenses of governmental immunity by and on
87-19 behalf of the trust company, the comptroller [treasurer], and the
87-20 state and expressly consents to sue and be sued in federal court or
87-21 in any court of competent jurisdiction. However, this provision
87-22 does not alter or affect the immunity accorded to state officials
87-23 and employees under state law. The trust company may enter into
87-24 contracts with the comptroller [treasurer] and the Federal Reserve
87-25 System to provide any services that the Federal Reserve System
87-26 makes available, including:
87-27 (1) safekeeping book-entry United States Treasury and
88-1 agency securities owned by the state and its agencies;
88-2 (2) using the federal reserve wire transfer system to
88-3 transfer money and book-entry securities and to settle securities
88-4 transactions involving book-entry United States Treasury and agency
88-5 securities owned by the state and its agencies;
88-6 (3) collecting, through the Federal Reserve System,
88-7 checks deposited with the treasury;
88-8 (4) receiving payments from and making payments to the
88-9 federal government on behalf of the state and its agencies;
88-10 (5) originating automated clearinghouse transactions
88-11 or other electronic transfers to make payments on behalf of the
88-12 state and its agencies, collecting revenues due the state and its
88-13 agencies, and transferring money between state depositories;
88-14 (6) paying warrants drawn on the treasury and
88-15 presented through the Federal Reserve System for payment; and
88-16 (7) safekeeping collateral pledged to secure deposits
88-17 of public funds.
88-18 SECTION 7.74. Section 404.104, Government Code, is amended
88-19 to read as follows:
88-20 Sec. 404.104. DUTIES OF COMPTROLLER [TREASURER]. (a) The
88-21 comptroller [treasurer] is the sole officer, director, and
88-22 shareholder of the trust company. The comptroller's office [state
88-23 treasury department] shall manage the trust company.
88-24 (b) The comptroller [treasurer] may enter into contracts,
88-25 trust agreements, and other instruments with the trust company as
88-26 provided by Section 404.103(b).
88-27 (c) The comptroller [treasurer] shall submit to the
89-1 Legislative Budget Board an audited report regarding the operations
89-2 of the trust company. The state auditor shall conduct an audit of
89-3 the operations of the trust company in accordance with Chapter
89-4 321[, Government Code].
89-5 SECTION 7.75. Section 404.105, Government Code, is amended
89-6 to read as follows:
89-7 Sec. 404.105. CAPITAL OR RESERVE REQUIREMENTS. The trust
89-8 company shall have capital stock or reserve balances in an amount
89-9 required by applicable regulatory bodies for eligibility for
89-10 federal reserve services, but the amount may not be more than $1
89-11 million. The stock of the trust company is an authorized
89-12 investment for state funds and shall be held by the comptroller
89-13 [treasurer].
89-14 SECTION 7.76. Sections 404.106(a) and (b), Government Code,
89-15 are amended to read as follows:
89-16 (a) Any net earnings of the trust company attributable to
89-17 capital or investments shall be credited annually to the account of
89-18 the treasury and shall be allocated annually to the funds held and
89-19 managed by the comptroller [treasurer] in accordance with Section
89-20 404.071(a).
89-21 (b) Funds held by the trust company shall be invested in
89-22 obligations authorized by law for the investment of funds held and
89-23 managed by the comptroller [treasurer].
89-24 SECTION 7.77. Sections 404.121(3), (4), and (5), Government
89-25 Code, are amended to read as follows:
89-26 (3) "Credit agreement" means a loan agreement,
89-27 revolving credit agreement, agreement establishing a line of
90-1 credit, letter of credit, reimbursement agreement, insurance
90-2 contract, commitment to purchase tax and revenue anticipation
90-3 notes, purchase or sale agreement, forward payment conversion
90-4 agreement, contract providing for payments based on levels of or
90-5 changes in interest rates or currency exchange rates, or commitment
90-6 or other contract or agreement approved by the comptroller
90-7 [treasurer] in connection with the authorization, issuance,
90-8 security, exchange, payment, purchase, or redemption of an
90-9 obligation, interest on an obligation, or both.
90-10 (4) "Tax and revenue anticipation notes" and "notes"
90-11 mean notes issued under this section, including any obligations
90-12 under credit agreements entered into by the comptroller [treasurer]
90-13 in connection with the issuance of the notes.
90-14 (5) "Temporary cash shortfall" during any period means
90-15 the greater of:
90-16 (A) the cash flow deficit forecast by the
90-17 comptroller [treasurer] for the period; or
90-18 (B) the cash balance of taxes and other revenues
90-19 in the general revenue fund at the beginning of the period that are
90-20 legally available for expenditures and transfers included in the
90-21 cash flow deficit, other than transfers deposited pursuant to
90-22 Section 403.092, less the cash flow deficit for the period and less
90-23 an amount determined by the comptroller [treasurer] that is
90-24 reasonably required as a cash balance in the general revenue fund,
90-25 but the reasonable account balance may not exceed 10 percent of
90-26 expenditures and transfers made from the general revenue fund in
90-27 the fiscal year before the year in which the determination is made.
91-1 SECTION 7.78. Section 404.122, Government Code, is amended
91-2 to read as follows:
91-3 Sec. 404.122. CASH MANAGEMENT COMMITTEE. The cash
91-4 management committee is composed of the governor, lieutenant
91-5 governor, speaker of the house of representatives, and
91-6 comptroller[, and treasurer]. If the speaker of the house of
91-7 representatives is not permitted by the Texas Constitution to serve
91-8 as a voting member of the committee, the speaker of the house of
91-9 representatives serves as a nonvoting member of the committee.
91-10 SECTION 7.79. Sections 404.123(a) and (b), Government Code,
91-11 are amended to read as follows:
91-12 (a) In anticipation of a temporary cash shortfall in the
91-13 general revenue fund during any fiscal year, the comptroller
91-14 [treasurer], subject to Section 404.124, may issue, sell, and
91-15 deliver tax and revenue anticipation notes on behalf of the state.
91-16 (b) The sum of the total amount of the notes outstanding and
91-17 the total outstanding liability of the general revenue fund under
91-18 Section 403.092 may not at any time exceed 25 percent of the taxes
91-19 and revenues to be credited to the general revenue fund for the
91-20 fiscal year as determined by the comptroller [treasurer], based on
91-21 the certification made by the comptroller in the enactment of the
91-22 General Appropriations Act applicable to that fiscal year.
91-23 SECTION 7.80. Section 404.124, Government Code, is amended
91-24 to read as follows:
91-25 Sec. 404.124. SHORTFALL FORECAST; COMMITTEE APPROVAL. (a)
91-26 Before issuing notes the comptroller [treasurer] shall submit to
91-27 the committee a general revenue cash flow shortfall forecast, based
92-1 on the comptroller's most recent anticipated revenue estimate. The
92-2 forecast must contain a detailed report of estimated revenues and
92-3 expenditures for each month and each major revenue and expenditure
92-4 category and must demonstrate the maximum general revenue cash flow
92-5 shortfall that may be predicted.
92-6 (b) Based on the forecast the committee may approve the
92-7 issuance of notes and the maximum outstanding balance of notes in
92-8 any fiscal year. The outstanding balance may not exceed the
92-9 maximum temporary cash shortfall forecast by the comptroller
92-10 [treasurer] for any period in the fiscal year. The comptroller
92-11 [treasurer] may not issue notes in excess of the amount approved.
92-12 (c) The committee may determine whether the notes will be
92-13 sold on a negotiated or competitive bid basis. If the committee
92-14 determines that competitive bids are appropriate, the underwriter
92-15 of any notes issued under this section shall be selected by the
92-16 solicitation of sealed bids and an appropriate bid notice shall be
92-17 published at least one time in one or more recognized financial
92-18 publications of general circulation published within the state and
92-19 one or more recognized financial publications of general
92-20 circulation published outside the state. Unless all bids are
92-21 rejected, the underwriter shall be selected from the bids received.
92-22 The comptroller [treasurer] may not sell the notes in a manner not
92-23 approved.
92-24 SECTION 7.81. Section 404.125, Government Code, is amended
92-25 to read as follows:
92-26 Sec. 404.125. ISSUANCE OF NOTES. (a) The comptroller
92-27 [treasurer], consistent with the committee's determinations under
93-1 Section 404.124, shall authorize the issuance, sale, and delivery
93-2 of the notes by order.
93-3 (b) Except as otherwise provided by this subsection, the
93-4 proceeds of the notes shall be deposited in a special fund in the
93-5 treasury called the tax and revenue anticipation note fund. The
93-6 comptroller [treasurer] may pay the costs of issuance of the notes
93-7 from the fund and[, with notice to the comptroller,] from time to
93-8 time shall transfer the net proceeds to the general revenue fund to
93-9 honor authorized expenditures from the general revenue fund. The
93-10 comptroller [treasurer] may invest any funds held in the tax and
93-11 revenue anticipation note fund in the authorized investments
93-12 described in Section 404.024 until used in accordance with this
93-13 section. Proceeds of a credit agreement may be deposited as
93-14 directed by the comptroller [treasurer] pursuant to the order
93-15 authorizing the credit agreement and may be applied to pay the
93-16 principal of and interest on the notes.
93-17 (c) In connection with the issuance of the notes, the
93-18 comptroller [treasurer] may exercise the powers granted to the
93-19 governing body of an issuer in connection with the issuance of
93-20 obligations under Chapter 656, Acts of the 68th Legislature,
93-21 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
93-22 Statutes), to the extent not inconsistent with this section. The
93-23 notes are subject to review and approval by the attorney general in
93-24 the same manner and with the same effect as is provided by that
93-25 Act.
93-26 (d) The comptroller [treasurer] is an authorized issuer
93-27 under the Bond Procedures Act of 1981 (Article 717k-6, Vernon's
94-1 Texas Civil Statutes), and the procedures, terms, and provisions of
94-2 that Act apply to the tax and revenue anticipation notes authorized
94-3 in this subchapter.
94-4 (e) Amounts in the tax and revenue anticipation note fund
94-5 may be pledged to secure payment of the notes and performance of
94-6 obligations under credit agreements relating to the notes and may
94-7 be used to pay required rebates to the federal government. The
94-8 comptroller [treasurer] may make covenants to carry out the
94-9 purposes of this subchapter and take other actions necessary,
94-10 desirable, or appropriate to complete the issuance of the notes.
94-11 The state pledges to and agrees with the holders of any notes that
94-12 the state will not limit or alter the rights vested in the
94-13 comptroller [treasurer] to fulfill the terms of any agreements made
94-14 with the holders, or in any way impair the rights and remedies of
94-15 the holders, until the notes are fully discharged.
94-16 SECTION 7.82. Sections 404.126(a) and (c), Government Code,
94-17 are amended to read as follows:
94-18 (a) Cash received from the collection of taxes and revenues
94-19 credited to the general revenue fund during the fiscal biennium in
94-20 which the notes are issued is available to restore the balance of
94-21 the tax and revenue anticipation note fund. The comptroller
94-22 [treasurer, with notice to the comptroller,] periodically shall
94-23 transfer the cash to the fund to ensure the timely payment in full
94-24 of the notes. Transfers to the tax and revenue anticipation note
94-25 fund under this subsection may not exceed the amount that has been
94-26 transferred from that fund to the general revenue fund and has not
94-27 been restored to the tax and revenue anticipation note fund. The
95-1 comptroller shall transfer surplus cash into the general revenue
95-2 fund under Section 403.092, as is necessary to complete the
95-3 transfers required by this section.
95-4 (c) On payment in full of all outstanding notes, all
95-5 required rebates to the federal government, and all costs of
95-6 issuance of the notes, the comptroller [treasurer, with notice to
95-7 the comptroller,] shall transfer to the general revenue fund any
95-8 amounts remaining in the tax and revenue anticipation note fund.
95-9 To the extent that the amounts credited to the tax and revenue
95-10 anticipation note fund are insufficient to pay the principal,
95-11 premium, if any, interest on the notes, and any required rebate to
95-12 the federal government when due, and any issuance costs related to
95-13 the notes, amounts in the general revenue fund are available for
95-14 appropriation by the legislature to make those payments. Amounts
95-15 in the tax and revenue anticipation note fund are available for
95-16 appropriation by the legislature to carry out the purposes of this
95-17 subchapter.
95-18 SECTION 7.83. Section 404.053, Government Code, is repealed.
95-19 ARTICLE 8. OTHER CHANGES TO GOVERNMENT CODE
95-20 SECTION 8.01. Section 61.003(b), Government Code, is amended
95-21 to read as follows:
95-22 (b) The county treasurer shall send all donations made under
95-23 this section to the comptroller [state treasurer], at the time and
95-24 in the manner prescribed by the attorney general, for deposit to
95-25 the credit of the compensation to victims of crime fund.
95-26 SECTION 8.02. Section 317.005(h), Government Code, is
95-27 amended to read as follows:
96-1 (h) If either the governor or the board adopts an order
96-2 under this section, the entity adopting the order shall notify the
96-3 proposing entity, the comptroller, [the state treasurer,] and the
96-4 affected state agencies. Unless the order is a contingent order,
96-5 the entity adopting the order shall file a copy of the order with
96-6 the secretary of state for publication in the Texas Register.
96-7 SECTION 8.03. Section 317.006, Government Code, is amended
96-8 to read as follows:
96-9 Sec. 317.006. ACTION ON CONTINGENT ORDER. The governor or
96-10 board shall approve or reject each contingent order adopted under
96-11 Section 317.005(d) by the other entity. The governor or board
96-12 shall notify the other entity, the comptroller, [the state
96-13 treasurer,] and the affected state agencies of the approval or
96-14 rejection and shall direct the secretary of state to publish notice
96-15 of the action in the Texas Register.
96-16 SECTION 8.04. Section 317.009, Government Code, is amended
96-17 to read as follows:
96-18 Sec. 317.009. ENFORCEMENT OF ORDER. During the period for
96-19 which an order adopted under this chapter is effective, in regard
96-20 to affected appropriations the comptroller may approve vouchers and
96-21 [the state treasurer] may issue warrants only in accordance with
96-22 the terms of the order.
96-23 SECTION 8.05. Section 325.017(f), Government Code, is
96-24 amended to read as follows:
96-25 (f) The legislature recognizes the state's continuing
96-26 obligation to pay bonded indebtedness and all other obligations,
96-27 including lease, contract, and other written obligations, incurred
97-1 by a state agency abolished under this chapter, and this chapter
97-2 does not impair or impede the payment of bonded indebtedness and
97-3 all other obligations, including lease, contract, and other written
97-4 obligations, in accordance with their terms. If an abolished state
97-5 agency has outstanding bonded indebtedness or other outstanding
97-6 obligations, including lease, contract, and other written
97-7 obligations, the bonds and all other obligations, including lease,
97-8 contract, and other written obligations, remain valid and
97-9 enforceable in accordance with their terms and subject to all
97-10 applicable terms and conditions of the laws and proceedings
97-11 authorizing the bonds and all other obligations, including lease,
97-12 contract, and other written obligations. The governor shall
97-13 designate an appropriate state agency that shall continue to carry
97-14 out all covenants contained in the bonds and in all other
97-15 obligations, including lease, contract, and other written
97-16 obligations, and the proceedings authorizing them, including the
97-17 issuance of bonds, and the performance of all other obligations,
97-18 including lease, contract, and other written obligations, to
97-19 complete the construction of projects or the performance of other
97-20 obligations, including lease, contract, and other written
97-21 obligations. The designated state agency shall provide payment
97-22 from the sources of payment of the bonds in accordance with the
97-23 terms of the bonds and shall provide payment from the sources of
97-24 payment of all other obligations, including lease, contract, and
97-25 other written obligations, in accordance with their terms, whether
97-26 from taxes, revenues, or otherwise, until the bonds and interest on
97-27 the bonds are paid in full and all other obligations, including
98-1 lease, contract, and other written obligations, are performed and
98-2 paid in full. If the proceedings so provide, all funds established
98-3 by laws or proceedings authorizing the bonds or authorizing other
98-4 obligations, including lease, contract, and other written
98-5 obligations, shall remain with the comptroller [State Treasurer] or
98-6 the previously designated trustees. If the proceedings do not
98-7 provide that the funds remain with the comptroller [State
98-8 Treasurer] or the previously designated trustees, the funds shall
98-9 be transferred to the designated state agency.
98-10 SECTION 8.06. Section 401.003(b), Government Code, is
98-11 amended to read as follows:
98-12 (b) The comptroller [state treasurer] shall credit to the
98-13 inaugural fund a pro rata share of the interest received from the
98-14 deposit of state funds as if the inaugural fund were a
98-15 constitutional fund.
98-16 SECTION 8.07. Section 401.004(b), Government Code, is
98-17 amended to read as follows:
98-18 (b) A contribution may be made to the inaugural committee or
98-19 the secretary of state. If the secretary of state receives a
98-20 contribution while the inaugural committee exists, the secretary of
98-21 state shall deliver the contribution to the committee. If the
98-22 secretary of state receives a contribution at any other time, the
98-23 secretary of state shall transmit the contribution to the
98-24 comptroller [state treasurer], who shall deposit it in the state
98-25 treasury to the credit of the inaugural fund.
98-26 SECTION 8.08. Section 401.008(b), Government Code, is
98-27 amended to read as follows:
99-1 (b) On the date on which the committee files its final
99-2 report with the secretary of state, the committee shall deliver to
99-3 the comptroller [state treasurer] all unexpended nonappropriated
99-4 funds it possesses. The comptroller [treasurer] shall deposit the
99-5 funds in the state treasury to the credit of the inaugural fund.
99-6 SECTION 8.09. Section 401.065(b), Government Code, is
99-7 amended to read as follows:
99-8 (b) The comptroller shall draw and [the state treasurer
99-9 shall] pay the necessary warrants for the emergency.
99-10 SECTION 8.10. Section 402.026, Government Code, is amended
99-11 to read as follows:
99-12 Sec. 402.026. INSPECTION OF ACCOUNTS. At least monthly the
99-13 attorney general shall inspect the accounts of the offices of the
99-14 [state treasurer,] comptroller[,] and each other person responsible
99-15 for collection or custody of state funds. The attorney general
99-16 shall immediately bring or cause to be brought an action to recover
99-17 state funds in the hands of a person in default or arrears and
99-18 shall immediately begin criminal proceedings against a person who
99-19 has illegally applied or retained state funds.
99-20 SECTION 8.11. Section 405.013(c), Government Code, is
99-21 amended to read as follows:
99-22 (c) The secretary of state shall deliver money received from
99-23 sales under this section to the comptroller [treasurer] and shall
99-24 make a full statement of the sales in the secretary of state's
99-25 biennial report.
99-26 SECTION 8.12. Section 411.109, Government Code, is amended
99-27 to read as follows:
100-1 Sec. 411.109. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
100-2 COMPTROLLER [STATE TREASURER]. (a) The comptroller [treasurer] is
100-3 entitled to obtain from the department criminal history record
100-4 information maintained by the department that the comptroller
100-5 [treasurer] believes is necessary for the enforcement or
100-6 administration of Chapter 154 or Chapter 155, Tax Code, including
100-7 criminal history record information that relates to a person who
100-8 is:
100-9 (1) an applicant for a permit under Chapter 154 or
100-10 Chapter 155, Tax Code;
100-11 (2) a permit holder under either of those chapters;
100-12 (3) an officer, director, stockholder owning 10
100-13 percent or more of the outstanding stock, partner, owner, or
100-14 managing employee of an applicant or permit holder under either of
100-15 those chapters that is a corporation, association, joint venture,
100-16 syndicate, partnership, or proprietorship;
100-17 (4) believed to have violated Chapter 154 or Chapter
100-18 155, Tax Code; or
100-19 (5) being considered by the comptroller [treasurer]
100-20 for employment as a peace officer.
100-21 (b) Criminal history record information obtained by the
100-22 comptroller [treasurer] under Subsection (a) may not be released or
100-23 disclosed to any person except on court order or as provided by
100-24 Subsection (c).
100-25 (c) The comptroller [treasurer] is not prohibited from
100-26 disclosing to a person who is the subject of criminal history
100-27 record information the dates and places of arrests, the offenses,
101-1 and the dispositions in the criminal history record information.
101-2 SECTION 8.13. Section 419.026(d), Government Code, is
101-3 amended to read as follows:
101-4 (d) The commission shall send the fees authorized by
101-5 Subsection (a) and Section 419.033(b) to the comptroller [state
101-6 treasurer], who shall deposit 50 percent of the fees collected
101-7 annually into the general revenue fund and 50 percent of the fees
101-8 collected annually into a special account in the general revenue
101-9 fund dedicated for use by the commission. Except as otherwise
101-10 provided by this chapter, 50 percent of the special fund created
101-11 under this subsection may be used only to defray the commission's
101-12 costs in performing inspections under Section 419.027 and the other
101-13 50 percent may be used only to provide training assistance under
101-14 Section 419.031.
101-15 SECTION 8.14. Section 431.035(c), Government Code, is
101-16 amended to read as follows:
101-17 (c) The adjutant general may accept a donation or transfer
101-18 of funds from the federal government directly or through another
101-19 agency or from an agency or political subdivision of the state.
101-20 The funds shall be deposited with the comptroller [state
101-21 treasurer]. The funds may be used for the legal purpose of the
101-22 department set out in the donation or transfer. The comptroller
101-23 [state treasurer] shall pay out the funds on a properly drawn
101-24 warrant issued by the comptroller on request of the adjutant
101-25 general and approval of the governor under regulations adopted by
101-26 the comptroller. An employee whose salary is paid from these funds
101-27 is entitled to not less than the federal hourly minimum wage as
102-1 provided by Section 206, Fair Labor Standards Act of 1938 (29
102-2 U.S.C. Section 206). The adjutant general may adopt regulations
102-3 necessary to control the receipt and disbursement of these funds.
102-4 SECTION 8.15. Section 443.0101(a), Government Code, is
102-5 amended to read as follows:
102-6 (a) Money and securities donated to the board shall be held
102-7 in trust outside the treasury by the comptroller [state treasurer]
102-8 in a special fund to be known as the Capitol fund. The comptroller
102-9 [treasurer] shall manage and invest the fund on behalf of the board
102-10 as directed or agreed to by the board.
102-11 SECTION 8.16. Section 444.027(c), Government Code, is
102-12 amended to read as follows:
102-13 (c) The operating fund is exempt from the application of
102-14 Sections [403.094(h), 403.094(i),] 403.095[,] and 404.071.
102-15 Interest received from investments of money in the operating fund
102-16 shall be allocated monthly by the comptroller [state treasurer] to
102-17 the operating fund.
102-18 SECTION 8.17. Sections 465.023(c) and (d), Government Code,
102-19 are amended to read as follows:
102-20 (c) The fund and the accounts within it shall be held in
102-21 trust by the comptroller [state treasurer] for and on behalf of the
102-22 commission and the owners of the general obligation bonds issued in
102-23 accordance with this section and may be used without further
102-24 appropriation only as provided by this subchapter.
102-25 (d) Pending its use, money in the fund shall be invested as
102-26 provided by resolution of the commission, and investment income
102-27 shall be added to the fund. The comptroller [state treasurer]
103-1 shall invest the fund in investments authorized by law for state
103-2 deposits.
103-3 SECTION 8.18. Section 465.024(c), Government Code, is
103-4 amended to read as follows:
103-5 (c) The commission and any financing corporation may make
103-6 additional covenants with respect to its revenue bonds and the
103-7 pledged revenues and may provide for the flow of funds and the
103-8 establishment and maintenance and investment of funds, which may
103-9 include interest and sinking funds, reserve funds, and other funds.
103-10 Those funds and the income from their investment shall be kept and
103-11 maintained in escrow and in trust by the comptroller [state
103-12 treasurer] for and on behalf of the commission or the financing
103-13 corporation, as applicable, and the owners of its revenue bonds, in
103-14 funds held outside the treasury under Section 404.073. Those funds
103-15 shall be used only as provided by this subchapter and pending their
103-16 use shall be invested as provided by resolution of the commission
103-17 or the financing corporation, as applicable. The comptroller
103-18 [state treasurer] shall invest the funds in investments authorized
103-19 by law for state deposits. The comptroller [state treasurer], as
103-20 custodian, shall administer those funds strictly and only as
103-21 provided by this section and in the resolutions of the commission
103-22 or the financing corporation, as applicable. The state may not
103-23 take action with respect to those funds other than that specified
103-24 in this chapter and in the resolutions of the commission or the
103-25 financing corporation, as applicable. The commission or the
103-26 financing corporation, as applicable, may provide in the resolution
103-27 authorizing its revenue bonds for the issuance of additional bonds
104-1 to be equally and ratably secured by a lien on the revenues and
104-2 receipts or for the issuance of subordinate lien bonds.
104-3 SECTION 8.19. Section 465.030, Government Code, is amended
104-4 to read as follows:
104-5 Sec. 465.030. REFUNDING. The commission and any financing
104-6 corporation may issue bonds to refund all or part of the
104-7 outstanding bonds of the commission or the financing corporation,
104-8 including matured but unpaid interest, in whole or in part, in the
104-9 manner provided by other applicable statutes, including Chapter
104-10 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
104-11 717k, Vernon's Texas Civil Statutes), and Chapter 784, Acts of the
104-12 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's
104-13 Texas Civil Statutes). If the provision for the payment of all
104-14 interest and applicable premiums on and principal of revenue bonds
104-15 issued under this subchapter has been made through the irrevocable
104-16 deposit of money with the comptroller [state treasurer] as provided
104-17 by an applicable statute, the amount of the revenue bonds may no
104-18 longer be charged against the issuing authority of the commission
104-19 and the financing corporations, and on the making of that provision
104-20 the issuing authority is restored to the extent of the principal
104-21 amount of the revenue bonds.
104-22 SECTION 8.20. Section 466.354, Government Code, is amended
104-23 to read as follows:
104-24 Sec. 466.354. DUTIES OF COMPTROLLER [STATE TREASURER].
104-25 (a) The comptroller [state treasurer], in consultation with the
104-26 director, shall establish procedures for the efficient
104-27 implementation and operation of an electronic funds transfer system
105-1 to meet the needs of the director under this chapter.
105-2 (b) The comptroller [state treasurer] periodically shall
105-3 file reports with the executive director providing information
105-4 regarding the revenue credited to the state lottery account, the
105-5 investments of the money in the account, and the distributions made
105-6 from the account.
105-7 SECTION 8.21. Section 466.403, Government Code, is amended
105-8 to read as follows:
105-9 Sec. 466.403. PAYMENT OF PRIZE IN INSTALLMENTS. If the
105-10 director determines that prize money is to be paid in installments,
105-11 the comptroller [state treasurer] shall invest funds from the state
105-12 lottery account as necessary to ensure the payment of the
105-13 installments. The investments may be in securities, annuities, or
105-14 other instruments as determined by the comptroller [treasurer].
105-15 SECTION 8.22. Sections 466.407(a) and (c), Government Code,
105-16 are amended to read as follows:
105-17 (a) The executive director shall deduct the amount of a
105-18 delinquent tax or other money from the winnings of a person who has
105-19 been finally determined to be:
105-20 (1) delinquent in the payment of a tax or other money
105-21 collected by the comptroller[, the state treasurer,] or the Texas
105-22 Alcoholic Beverage Commission;
105-23 (2) delinquent in making child support payments
105-24 administered or collected by the attorney general;
105-25 (3) in default on a loan made under Chapter 52,
105-26 Education Code; or
105-27 (4) in default on a loan guaranteed under Chapter 57,
106-1 Education Code.
106-2 (c) The attorney general, comptroller, [state treasurer,]
106-3 Texas Alcoholic Beverage Commission, Texas Higher Education
106-4 Coordinating Board, and Texas Guaranteed Student Loan Corporation
106-5 shall each provide the executive director with a report of persons
106-6 who have been finally determined to be delinquent in the payment of
106-7 a tax or other money collected by the agency. The commission shall
106-8 adopt rules regarding the form and frequency of reports under this
106-9 subsection.
106-10 SECTION 8.23. Section 481.021(c), Government Code, is
106-11 amended to read as follows:
106-12 (c) The department shall deposit contributions from private
106-13 sources in a separate fund kept and held in escrow and in trust by
106-14 the comptroller [state treasurer] for and on behalf of the
106-15 department as funds held outside the treasury under Section
106-16 404.073, and the money contributed shall be used to carry out the
106-17 purposes of the department and, to the extent possible, the
106-18 purposes specified by the donors. The comptroller [state
106-19 treasurer] may invest and reinvest the money, pending its use, in
106-20 the fund in investments authorized by law for state funds that the
106-21 comptroller [state treasurer] considers appropriate.
106-22 SECTION 8.24. Section 481.026(d), Government Code, is
106-23 amended to read as follows:
106-24 (d) The department may establish a Texas literacy trust fund
106-25 for the purpose of collecting private funds for distribution to
106-26 community literacy programs. The fund must meet all applicable
106-27 requirements under state and federal law necessary for
107-1 qualification as a nonprofit trust. The fund, if established,
107-2 shall be a separate fund kept and held in escrow and in trust by
107-3 the comptroller [state treasurer] for and on behalf of the
107-4 department as funds held outside the treasury under Section
107-5 404.073. Unless prohibited by other law, the comptroller [state
107-6 treasurer] may invest and reinvest the money, pending its use, in
107-7 the fund in investments authorized by law for state funds that the
107-8 comptroller [state treasurer] considers appropriate. The
107-9 department shall distribute money from the fund under guidelines
107-10 set by the Texas Workforce Commission.
107-11 SECTION 8.25. Section 481.056(b), Government Code, is
107-12 amended to read as follows:
107-13 (b) The department shall establish and maintain a separate
107-14 fund into which the proceeds from the sale of the bonds shall be
107-15 deposited. All other money received by the department under this
107-16 subchapter, except money required to be deposited in the Texas
107-17 exporters loan fund, shall also be deposited in this fund. The
107-18 policy board may provide for the establishment and maintenance of
107-19 separate accounts within the fund, including interest and sinking
107-20 accounts, reserve accounts, program accounts, and other accounts,
107-21 all of which shall be kept and held in escrow and in trust by the
107-22 comptroller [state treasurer] for and on behalf of the department
107-23 and the owners of the bonds as funds outside the treasury under
107-24 Section 404.073 and may be used only as provided by this
107-25 subchapter. Pending use, the comptroller [state treasurer] may
107-26 invest and reinvest the money in the fund in investments authorized
107-27 by law for state funds that the comptroller [state treasurer], with
108-1 the approval of the policy board and consistent with resolutions
108-2 authorizing the bonds, considers appropriate. Earnings on those
108-3 investments shall be deposited in the fund. The department is
108-4 authorized to use money deposited in the fund for the purposes
108-5 specified in and according to the procedures established by this
108-6 subchapter, and the state may not take any action with respect to
108-7 the fund other than as specified by this subchapter and in the
108-8 resolutions of the policy board.
108-9 SECTION 8.26. Section 481.154(a), Government Code, is
108-10 amended to read as follows:
108-11 (a) The smart jobs fund is established as a special trust
108-12 fund in the custody of the comptroller [state treasurer] separate
108-13 and apart from all public money or funds of this state. The fund
108-14 is composed of:
108-15 (1) money transferred into the fund under Section
108-16 204.123, Labor Code [9e, Texas Unemployment Compensation Act
108-17 (Article 5221b-1 et seq., Vernon's Texas Civil Statutes)];
108-18 (2) gifts, grants, and other donations received by the
108-19 department for the fund; and
108-20 (3) any amounts appropriated by the legislature for
108-21 the program.
108-22 SECTION 8.27. Sections 481.193(f)-(i), Government Code, are
108-23 amended to read as follows:
108-24 (f) After reviewing each linked deposit loan application,
108-25 the executive director of the department shall recommend to the
108-26 comptroller [state treasurer] the acceptance or rejection of the
108-27 application.
109-1 (g) After the comptroller's [state treasurer's] acceptance
109-2 of the application and the lending institution originates a loan to
109-3 an eligible borrower, the comptroller [state treasurer] shall place
109-4 a linked deposit with the applicable eligible lending institution
109-5 for the period the comptroller [treasurer] considers appropriate.
109-6 The comptroller [state treasurer] may not place a deposit for a
109-7 period extending beyond the state fiscal biennium in which it is
109-8 placed. Subject to the limitation described by Section 481.197,
109-9 the comptroller [treasurer] may place time deposits at an interest
109-10 rate described by Section 481.192, notwithstanding any order of the
109-11 State Depository Board to the contrary.
109-12 (h) Before the placing of a linked deposit, the eligible
109-13 lending institution and the state, represented by the comptroller
109-14 [state treasurer] and the department, shall enter into a written
109-15 deposit agreement containing the conditions on which the linked
109-16 deposit is made. The deposit agreement must provide that:
109-17 (1) the lending institution notify the comptroller
109-18 [state treasurer] if the borrower to which the deposit is linked
109-19 defaults on the loan; and
109-20 (2) in the event of a default the comptroller [state
109-21 treasurer] may withdraw the linked deposit.
109-22 (i) If a lending institution holding linked deposits ceases
109-23 to be a state depository, the comptroller [state treasurer] may
109-24 withdraw the linked deposits.
109-25 SECTION 8.28. Section 481.194(b), Government Code, is
109-26 amended to read as follows:
109-27 (b) The department shall monitor compliance with this
110-1 subchapter and inform the comptroller [state treasurer] of
110-2 noncompliance on the part of an eligible lending institution.
110-3 SECTION 8.29. Section 481.226(a), Government Code, is
110-4 amended to read as follows:
110-5 (a) The policy board may issue up to $25 million of general
110-6 obligation bonds and may use the proceeds of the bonds to provide
110-7 venture financing under this subchapter. The policy board shall
110-8 deposit the proceeds of the bonds in the Texas product development
110-9 fund and apply them in accordance with the resolution authorizing
110-10 the bonds. The fund and any accounts established in the fund shall
110-11 be held in trust by the comptroller [state treasurer] for and on
110-12 behalf of the department and the owners of the general obligation
110-13 bonds issued in accordance with this section, and may be used only
110-14 as provided by this section. Pending use, the comptroller
110-15 [treasurer] may invest and reinvest money in the fund in
110-16 investments authorized by law for state funds that the comptroller
110-17 [treasurer], consistent with the policy board's resolutions
110-18 authorizing the bonds, considers appropriate. Repayments of
110-19 financial assistance provided under this subchapter, together with
110-20 earnings received on investments of the product development funds,
110-21 shall be deposited first, in the interest and sinking account as
110-22 prescribed by the policy board's resolutions authorizing bonds
110-23 under this subchapter and second, in any reserve account
110-24 established by the policy board until that account is fully funded
110-25 as prescribed by the policy board's resolutions. If, during the
110-26 time any general obligation bonds are payable from the interest and
110-27 sinking account, the policy board determines that there will not be
111-1 sufficient money in the interest and sinking account during the
111-2 following fiscal year to pay the principal of or interest on the
111-3 general obligation bonds or both the principal and interest that
111-4 are to come due during the following fiscal year, the comptroller
111-5 [of public accounts] shall transfer to the fund the first money
111-6 coming into the state treasury not otherwise appropriated by the
111-7 constitution in an amount sufficient to pay the obligations.
111-8 SECTION 8.30. Section 481.242(b), Government Code, is
111-9 amended to read as follows:
111-10 (b) Money appropriated to the department, interest paid on
111-11 money in the fund, proceeds of bonds issued under this chapter,
111-12 application fees, guarantee fees, royalty receipts, dividend
111-13 income, loan repayments, and other amounts received by the state
111-14 for loans, loan guarantees, equity in investments, or grants made
111-15 under this subchapter, and any other money received by the
111-16 department under this chapter including federal funds and the
111-17 proceeds of any investment pools operated by the comptroller
111-18 [treasurer] shall be deposited to the credit of the fund.
111-19 Appropriated money in the fund may be applied and reapplied to the
111-20 purposes of this subchapter.
111-21 SECTION 8.31. Section 481.244(a), Government Code, is
111-22 amended to read as follows:
111-23 (a) The policy board may issue up to $20 million of general
111-24 obligation bonds and may use the proceeds, less the costs of
111-25 issuance of the bonds, to carry out the small business incubator
111-26 program in accordance with the resolution authorizing the bonds.
111-27 The policy board shall deposit the proceeds of the bonds in the
112-1 small business incubator fund and apply them in accordance with the
112-2 resolution authorizing the bonds. The fund and any accounts
112-3 established in the fund shall be held in trust by the comptroller
112-4 [state treasurer] for and on behalf of the department and the
112-5 owners of the general obligation bonds issued in accordance with
112-6 this section, and may be used only as provided by this subchapter.
112-7 Pending use, the comptroller [treasurer] may invest and reinvest
112-8 money in the fund in investments authorized by law for state funds
112-9 that the comptroller [treasurer], consistent with the policy
112-10 board's resolutions authorizing the bonds, considers appropriate.
112-11 Repayments of financial assistance provided under this subchapter,
112-12 together with earnings received on investments of the fund, shall
112-13 be deposited first, in the interest and sinking account as
112-14 prescribed by the policy board's resolutions authorizing bonds
112-15 under this article and second, in any reserve account established
112-16 by the policy board until that account is fully funded as
112-17 prescribed by the policy board's resolutions. If, during the time
112-18 any general obligation bonds are payable from the interest and
112-19 sinking account, the policy board determines that there will not be
112-20 sufficient money in the interest and sinking account during the
112-21 following fiscal year to pay the principal of or interest on the
112-22 general obligation bonds or both the principal and interest that
112-23 are to come due during the following fiscal year, the comptroller
112-24 [of public accounts] shall transfer to the fund the first money
112-25 coming into the state treasury not otherwise appropriated by the
112-26 constitution in an amount sufficient to pay the obligations.
112-27 SECTION 8.32. Section 481.275(a), Government Code, is
113-1 amended to read as follows:
113-2 (a) The Texas art indemnity fund is a fund outside the state
113-3 treasury. The comptroller [state treasurer] shall be trustee of
113-4 the fund as provided by Section 404.073. The fund consists of
113-5 contributions made for the purposes of this subchapter. Money in
113-6 the fund may be used only for payment of indemnity claims as
113-7 provided by this subchapter.
113-8 SECTION 8.33. Section 497.033(d), Government Code, is
113-9 amended to read as follows:
113-10 (d) The institutional division shall deposit funds received
113-11 from the sale of articles and products produced under this
113-12 subchapter with the comptroller [state treasurer] to be maintained
113-13 in the industrial revolving fund.
113-14 SECTION 8.34. Sections 501.014(c) and (d), Government Code,
113-15 are amended to read as follows:
113-16 (c) If money is unclaimed two years after the institutional
113-17 division gives or attempts to give notice under Subsection (b), or
113-18 two years after the date of the death of an inmate whose
113-19 beneficiary or nearest relative is unknown, the director of the
113-20 institutional division shall make an affidavit stating that the
113-21 money is unclaimed and send the affidavit and money to the
113-22 comptroller [state treasurer].
113-23 (d) Money forfeited to the comptroller [state treasurer]
113-24 under Subsection (c) escheats to the state.
113-25 SECTION 8.35. Sections 501.015(d) and (e), Government Code,
113-26 are amended to read as follows:
113-27 (d) The director of the institutional division shall provide
114-1 the comptroller [state treasurer] with funds sufficient to maintain
114-2 not less than $100,000 in a bank or banks in Huntsville, Texas, for
114-3 the purpose of making prompt payments to inmates required by
114-4 Subsection (b). Funds maintained in a bank under this subsection
114-5 must be secured by bonds or other securities approved by the
114-6 attorney general.
114-7 (e) A bank that maintains funds described by Subsection (b)
114-8 shall make a weekly report to the comptroller [state treasurer] on
114-9 the condition of the funds.
114-10 SECTION 8.36. Section 571.030(c), Government Code, is
114-11 amended to read as follows:
114-12 (c) At the request of the commission, the comptroller [state
114-13 treasurer] shall transfer funds to the commission under Section
114-14 74.602(b)(2), Property Code.
114-15 SECTION 8.37. Section 601.007, Government Code, is amended
114-16 to read as follows:
114-17 Sec. 601.007. EVIDENCE OF QUALIFICATION FOR OFFICE. On
114-18 demand of a citizen of this state, the comptroller, [the
114-19 treasurer,] a commissioners court, a county treasurer, or any other
114-20 officer of the state or of a municipality who is authorized by law
114-21 to make, order, or audit payment to an officer of the state, of a
114-22 county, or of a municipality of compensation, fees, or perquisites
114-23 for official services shall, before making, ordering, or auditing
114-24 the payment, require the officer to produce:
114-25 (1) the certificate of election or of appointment to
114-26 the office that is required by law to be issued to the officer; or
114-27 (2) a certified copy of the judgment or decree that:
115-1 (A) was issued by a court of competent
115-2 jurisdiction; and
115-3 (B) determined the officer's claim to the
115-4 office.
115-5 SECTION 8.38. Section 603.002, Government Code, is amended
115-6 to read as follows:
115-7 Sec. 603.002. COPIES OF DOCUMENTS AVAILABLE TO PUBLIC. The
115-8 secretary of state, Commissioner of the General Land Office,
115-9 comptroller, [state treasurer,] commissioner of agriculture,
115-10 Banking Commissioner, state librarian, or attorney general:
115-11 (1) shall furnish to a person on request a certified
115-12 copy, under seal, of any document in the officer's office that is
115-13 available under law to that person; and
115-14 (2) may not demand or collect a fee from an officer of
115-15 the state for a copy of any document in the respective offices or
115-16 for a certificate in relation to a matter in the respective offices
115-17 if the copy is required in the performance of an official duty of
115-18 the office of the state officer requesting the copy.
115-19 SECTION 8.39. Section 606.029(c), Government Code, is
115-20 amended to read as follows:
115-21 (c) The retirement system may direct the comptroller [or the
115-22 state treasurer] to deduct a delinquent payment and interest from
115-23 funds payable by the state to the delinquent political subdivision
115-24 that are expressly subject to deduction. The comptroller [or the
115-25 state treasurer] shall send to the retirement system in trust the
115-26 amount deducted for the contribution of the delinquent political
115-27 subdivision.
116-1 SECTION 8.40. Sections 606.030(a) and (f), Government Code,
116-2 are amended to read as follows:
116-3 (a) The social security administration fund is outside the
116-4 treasury. The comptroller [state treasurer] is the custodian of
116-5 the fund and shall administer the fund separately from other funds
116-6 as directed by the retirement system. Credits of money in the fund
116-7 are not state funds or subject to legislative appropriation.
116-8 (f) The retirement system, at the end of each fiscal year,
116-9 shall pay from the social security administration fund to the
116-10 comptroller [state treasurer] for deposit in the general revenue
116-11 fund at least 10 percent of the contributions collected for
116-12 administrative expenses in the preceding year. Payment under this
116-13 subsection may continue only until the amount appropriated to the
116-14 retirement system from the state for administering this subchapter
116-15 has been reimbursed in full.
116-16 SECTION 8.41. Section 608.007, Government Code, is amended
116-17 to read as follows:
116-18 Sec. 608.007. TRUST ACCOUNT. (a) A department
116-19 administrator shall deposit a warrant issued under Section
116-20 608.005(a) with the comptroller [state treasurer] to be held in
116-21 trust by the comptroller [treasurer] until disbursed by the
116-22 department administrator to purchase savings bonds for an
116-23 individual designated in an authorization under Section 608.002
116-24 filed with the department administrator.
116-25 (b) A disbursing officer shall deposit a warrant issued
116-26 under Section 608.005(b) with the comptroller [treasurer] of the
116-27 political subdivision to be held in trust by the comptroller
117-1 [treasurer] until disbursed by the disbursing officer to purchase
117-2 savings bonds for an individual designated in an authorization
117-3 under Section 608.002 filed with the disbursing officer.
117-4 (c) A warrant held in trust under this section shall be
117-5 deposited in an account designated as the savings bond payroll
117-6 savings account. The comptroller [treasurer] shall pay out money
117-7 deposited in the account on proper warrants drawn by the department
117-8 administrator or disbursing officer, as appropriate.
117-9 SECTION 8.42. Section 653.004(c), Government Code, is
117-10 amended to read as follows:
117-11 (c) The head of a state agency, other than the comptroller
117-12 [or the state treasurer], may contract for specific excess
117-13 indemnity coverage in addition to a blanket bond. The comptroller
117-14 [or the state treasurer] may contract for:
117-15 (1) specific excess indemnity coverage in addition to
117-16 an honesty blanket position bond or to a position schedule honesty
117-17 bond; and
117-18 (2) a faithful performance blanket position bond.
117-19 SECTION 8.43. Sections 659.083(a) and (b), Government Code,
117-20 are amended to read as follows:
117-21 (a) Except as provided by Subsection (b), the comptroller
117-22 [treasurer] may not pay the salary of a state officer or employee
117-23 before the first working day of the month following the payroll
117-24 period.
117-25 (b) The comptroller [treasurer] shall pay an employee who is
117-26 paid twice a month under Section 659.082 on:
117-27 (1) the first working day of the month following the
118-1 payroll period that covers the last half of the preceding month;
118-2 and
118-3 (2) the 15th day of the month or the first working day
118-4 after the 15th for the payroll period that covers the first half of
118-5 the month.
118-6 SECTION 8.44. Section 663.052(a), Government Code, is
118-7 amended to read as follows:
118-8 (a) The board is composed of:
118-9 (1) the governor;
118-10 (2) the lieutenant governor;
118-11 (3) the attorney general;
118-12 (4) [the state treasurer;]
118-13 [(5)] the comptroller; and
118-14 (5) [(6)] the commissioner of the General Land Office.
118-15 SECTION 8.45. Section 815.207, Government Code, is amended
118-16 to read as follows:
118-17 Sec. 815.207. COMPTROLLER [STATE TREASURER]. (a) Except as
118-18 provided by Section 815.302 or 815.303, the comptroller [state
118-19 treasurer] is the custodian of the securities, bonds, and funds of
118-20 the retirement system.
118-21 (b) The comptroller [state treasurer] shall pay money from
118-22 the funds of the retirement system on warrants drawn by the
118-23 comptroller supported only on vouchers signed by the executive
118-24 director and the chairman of the board of trustees or their
118-25 authorized representatives.
118-26 (c) The comptroller [state treasurer] annually shall furnish
118-27 to the board of trustees a sworn statement of the amount of the
119-1 retirement system's assets in the comptroller's [treasurer's]
119-2 custody.
119-3 (d) The board of trustees may, in the exercise of its
119-4 constitutional discretion to manage the assets of the retirement
119-5 system, select one or more commercial banks, depository trust
119-6 companies, or other entities to serve as custodian of all or part
119-7 of the retirement system's assets.
119-8 SECTION 8.46. Section 815.209(a), Government Code, is
119-9 amended to read as follows:
119-10 (a) The comptroller [state treasurer] shall give a surety
119-11 bond in the amount of $50,000.
119-12 SECTION 8.47. Section 815.308(b), Government Code, is
119-13 amended to read as follows:
119-14 (b) The amount of cash on hand may not exceed 10 percent of
119-15 the total amount in the funds of the retirement system on deposit
119-16 with the comptroller [state treasurer], excluding the assets of the
119-17 law enforcement and custodial officer supplemental retirement fund.
119-18 SECTION 8.48. Section 815.310(a), Government Code, is
119-19 amended to read as follows:
119-20 (a) A trust fund for the Employees Retirement System of
119-21 Texas is established with the comptroller [state treasurer].
119-22 SECTION 8.49. Section 815.402(e), Government Code, is
119-23 amended to read as follows:
119-24 (e) The retirement system shall record all receipts of
119-25 member contributions and shall deliver the receipts to the
119-26 comptroller [state treasurer]. The comptroller [state treasurer]
119-27 shall credit the receipts to the employees saving account.
120-1 SECTION 8.50. Sections 815.403(d) and (e), Government Code,
120-2 are amended to read as follows:
120-3 (d) Before September 1 of each year, the retirement system
120-4 shall certify to the state comptroller of public accounts [and to
120-5 the state treasurer]:
120-6 (1) an estimate of the amount necessary to pay the
120-7 state's contribution under Subsection (a)(1) for the following
120-8 fiscal year;
120-9 (2) an estimate of the amount necessary to pay
120-10 membership fees for the following fiscal year, if the legislature
120-11 has appropriated money for that purpose; and
120-12 (3) an estimate of the amount required to pay lump-sum
120-13 death benefits for retirees under Section 814.501 for the following
120-14 fiscal year.
120-15 (e) All money allocated and appropriated by the state to the
120-16 retirement system for benefits provided by the retirement system,
120-17 except money for the payment of lump-sum death benefits and for the
120-18 payment of benefits from the law enforcement and custodial officer
120-19 supplemental retirement fund, shall be paid, based on the annual
120-20 estimate of the retirement system, in monthly installments to the
120-21 state accumulation fund. The money required for state
120-22 contributions and membership fees shall be from respective funds
120-23 appropriated to pay the compensation of the member for whose
120-24 benefit the contribution or fee is paid. If the total of the
120-25 estimated required payments is not equal to the total of the actual
120-26 payments required for a fiscal year, the retirement system shall
120-27 certify to the state comptroller of public accounts [and the state
121-1 treasurer] at the end of that year the amount required for
121-2 necessary adjustments, and the comptroller [state treasurer] shall
121-3 make the required adjustments.
121-4 SECTION 8.51. Section 825.207, Government Code, is amended
121-5 to read as follows:
121-6 Sec. 825.207. COMPTROLLER [STATE TREASURER]. (a) Except as
121-7 provided by Section 825.302 or 825.303 or by Subsection (e) of this
121-8 section, the comptroller [state treasurer] is the custodian of all
121-9 securities and cash of the retirement system, including securities
121-10 held in the name of a nominee of the retirement system.
121-11 (b) The comptroller [state treasurer] shall pay money from
121-12 the accounts of the retirement system on warrants drawn by the
121-13 comptroller [of public accounts] and authorized by vouchers signed
121-14 by the executive director or other persons designated by the board
121-15 of trustees.
121-16 (c) The comptroller [state treasurer] annually shall furnish
121-17 to the board of trustees a sworn statement of the amount of the
121-18 retirement system's assets in the comptroller's [treasurer's]
121-19 custody.
121-20 (d) The comptroller [state treasurer] is not responsible,
121-21 under either civil or criminal law, for any action or losses with
121-22 respect to assets of the retirement system while the assets are in
121-23 the custody of a commercial bank as provided by Section 825.302 or
121-24 825.303 or by Subsection (e) of this section.
121-25 (e) The board of trustees may, in the exercise of its
121-26 constitutional discretion to manage the assets of the retirement
121-27 system, select one or more commercial banks, depository trust
122-1 companies, or other entities to serve as custodian or custodians of
122-2 all or part of the retirement system's assets.
122-3 SECTION 8.52. Section 825.209(a), Government Code, is
122-4 amended to read as follows:
122-5 (a) The comptroller [state treasurer] shall give a surety
122-6 bond in the amount of $50,000.
122-7 SECTION 8.53. Section 825.305, Government Code, is amended
122-8 to read as follows:
122-9 Sec. 825.305. AVAILABLE CASH. The board of trustees may
122-10 keep on deposit with the comptroller [state treasurer] available
122-11 cash not exceeding 10 percent of the total assets of the retirement
122-12 system, to pay annuity and other disbursements.
122-13 SECTION 8.54. Sections 825.403(c) and (d), Government Code,
122-14 are amended to read as follows:
122-15 (c) The executive director shall deposit with the
122-16 comptroller [state treasurer] all deductions received by the
122-17 executive director.
122-18 (d) After the deductions are deposited with the comptroller
122-19 [state treasurer], the money shall be used as provided by this
122-20 subtitle.
122-21 SECTION 8.55. Section 825.406(g), Government Code, is
122-22 amended to read as follows:
122-23 (g) An employer who fails to comply with this section may
122-24 not, after the failure, apply for or spend any money from a federal
122-25 or private grant. The retirement system shall report alleged
122-26 noncompliance to the attorney general, [the state treasurer,] the
122-27 Legislative Budget Board, the comptroller of public accounts, and
123-1 the governor. The attorney general shall bring a writ of mandamus
123-2 against the employer to compel compliance with this section.
123-3 SECTION 8.56. Sections 840.103(d) and (e), Government Code,
123-4 are amended to read as follows:
123-5 (d) Before September 1 of each year, the retirement system
123-6 shall certify to the state comptroller of public accounts [and to
123-7 the state treasurer] an estimate of the amount necessary to pay the
123-8 state's contribution under Subsection (a) for the following fiscal
123-9 year.
123-10 (e) All money allocated and appropriated by the state to the
123-11 retirement system for benefits provided by the retirement system
123-12 shall be paid, based on the annual estimate of the retirement
123-13 system, in monthly installments to the retirement system. The
123-14 money required for state contributions shall be from money
123-15 appropriated to pay the compensation of the member for whose
123-16 benefit the contribution or fee is paid. If the total of the
123-17 estimated required payments is not equal to the total of the actual
123-18 payments required for a fiscal year, the retirement system shall
123-19 certify to the state comptroller of public accounts [and the state
123-20 treasurer] at the end of that year the amount required for
123-21 necessary adjustments, and the comptroller [state treasurer] shall
123-22 make the required adjustments.
123-23 SECTION 8.57. Section 840.206, Government Code, is amended
123-24 to read as follows:
123-25 Sec. 840.206. COMPTROLLER [STATE TREASURER]. (a) The
123-26 comptroller [state treasurer] is the custodian of the securities,
123-27 bonds, and funds of the retirement system, except as provided by
124-1 Section 840.3011 or 840.3012 of this subtitle.
124-2 (b) The comptroller [state treasurer] shall pay money from
124-3 the trust fund of the retirement system on warrants drawn by the
124-4 state comptroller [of public accounts] supported on vouchers signed
124-5 by the executive director and the chairman of the board of trustees
124-6 or their authorized representatives.
124-7 (c) The comptroller [state treasurer] annually shall furnish
124-8 to the board of trustees a sworn statement of the amount of the
124-9 retirement system's assets in the comptroller's [treasurer's]
124-10 custody.
124-11 (d) The board of trustees may, in the exercise of its
124-12 constitutional discretion to manage the funds of the retirement
124-13 system, select one or more commercial banks, depository trust
124-14 companies, or other entities to serve as custodian of all or part
124-15 of the retirement system's assets.
124-16 SECTION 8.58. Section 840.208(a), Government Code, is
124-17 amended to read as follows:
124-18 (a) The comptroller [state treasurer] shall give a surety
124-19 bond in the amount of $50,000.
124-20 SECTION 8.59. Section 840.304(b), Government Code, is
124-21 amended to read as follows:
124-22 (b) The amount of cash on hand may not exceed 10 percent of
124-23 the total amount in the funds of the retirement system on deposit
124-24 with the comptroller [state treasurer].
124-25 SECTION 8.60. Section 2054.007(b), Government Code, is
124-26 amended to read as follows:
124-27 (b) The electronic funds transfer system for the operation
125-1 of the state lottery is not included in the agency strategic plan
125-2 or biennial operating plan of the comptroller [state treasurer].
125-3 Operations of the comptroller [state treasurer] that relate to the
125-4 state lottery are not subject to the planning and procurement
125-5 requirements of this chapter.
125-6 SECTION 8.61. Section 2101.011(a), Government Code, is
125-7 amended to read as follows:
125-8 (a) A state agency shall submit the financial information
125-9 requested by the comptroller, including information about state
125-10 funds held outside the state treasury, to:
125-11 (1) the governor;
125-12 (2) the comptroller;
125-13 (3) [the state treasurer;]
125-14 [(4)] the state auditor; and
125-15 (4) [(5)] the Legislative Budget Board.
125-16 SECTION 8.62. Section 2101.032(b), Government Code, is
125-17 amended to read as follows:
125-18 (b) The committee is composed of:
125-19 (1) the comptroller;
125-20 (2) the governor;
125-21 (3) the lieutenant governor;
125-22 (4) the speaker of the house of representatives;
125-23 (5) [the state treasurer;]
125-24 [(6)] the executive director of the Department of
125-25 Information Resources;
125-26 (6) [(7)] the state auditor; and
125-27 (7) [(8)] eight appointees of the governor, including:
126-1 (A) an employee of the Legislative Budget Board;
126-2 and
126-3 (B) one individual each with experience in the
126-4 following areas: education, natural resources, criminal justice,
126-5 human services, business regulation, and employee benefits.
126-6 SECTION 8.63. Section 2106.006(a), Government Code, is
126-7 amended to read as follows:
126-8 (a) A state agency that receives federal money for federally
126-9 reimbursable indirect costs shall send to the comptroller [state
126-10 treasurer] for deposit to the credit of the general revenue fund
126-11 the lesser of:
126-12 (1) the amount received for federally reimbursable
126-13 indirect costs; or
126-14 (2) the amount allocated to the agency in the
126-15 governor's statewide cost allocation plan for the cost of providing
126-16 statewide support services to the agency.
126-17 SECTION 8.64. Section 2108.003(a), Government Code, is
126-18 amended to read as follows:
126-19 (a) The commission is composed of:
126-20 (1) the governor;
126-21 (2) the lieutenant governor;
126-22 (3) the comptroller;
126-23 (4) [the state treasurer;]
126-24 [(5)] the agency administrator of the Texas Employment
126-25 Commission;
126-26 (5) [(6)] the chairman of the Texas Higher Education
126-27 Coordinating Board or the chairman's designee; and
127-1 (6) [(7)] three public members appointed by the
127-2 governor who have experience in the administration of bonus,
127-3 incentive, or related programs used in private industry.
127-4 SECTION 8.65. Section 2108.109(b), Government Code, is
127-5 amended to read as follows:
127-6 (b) The comptroller [state treasurer] shall create in the
127-7 productivity bonus fund a productivity bonus account for each state
127-8 agency or division participating in the productivity bonus program
127-9 and an account for the commission.
127-10 SECTION 8.66. Section 2162.103(a), Government Code, is
127-11 amended to read as follows:
127-12 (a) In comparing the cost of providing a service, the
127-13 council shall consider the:
127-14 (1) cost of supervising the work of a private
127-15 contractor; and
127-16 (2) cost of a state agency's performance of the
127-17 service, including:
127-18 (A) the costs of the comptroller, [treasurer,]
127-19 attorney general, and other support agencies; and
127-20 (B) other indirect costs related to the agency's
127-21 performance of the service.
127-22 SECTION 8.67. Section 2256.053, Government Code, is amended
127-23 to read as follows:
127-24 Sec. 2256.053. PAYMENT FOR SECURITIES PURCHASED BY STATE.
127-25 The comptroller[, the state treasurer,] or the disbursing officer
127-26 of an agency that has the power to invest assets directly may pay
127-27 for authorized securities purchased from or through a member in
128-1 good standing of the National Association of Securities Dealers or
128-2 from or through a national or state bank on receiving an invoice
128-3 from the seller of the securities showing that the securities have
128-4 been purchased by the board or agency and that the amount to be
128-5 paid for the securities is just, due, and unpaid. A purchase of
128-6 securities may not be made at a price that exceeds the existing
128-7 market value of the securities.
128-8 SECTION 8.68. Section 2256.054, Government Code, is amended
128-9 to read as follows:
128-10 Sec. 2256.054. DELIVERY OF SECURITIES PURCHASED BY STATE. A
128-11 security purchased under this chapter may be delivered to the
128-12 comptroller [state treasurer], a bank, or the board or agency
128-13 investing its funds. The delivery shall be made under normal and
128-14 recognized practices in the securities and banking industries,
128-15 including the book entry procedure of the Federal Reserve Bank.
128-16 SECTION 8.69. Section 2256.055, Government Code, is amended
128-17 to read as follows:
128-18 Sec. 2256.055. DEPOSIT OF SECURITIES PURCHASED BY STATE. At
128-19 the direction of the comptroller [state treasurer] or the agency, a
128-20 security purchased under this chapter may be deposited in trust
128-21 with a bank or federal reserve bank or branch designated by the
128-22 comptroller [treasurer], whether in or outside the state. The
128-23 deposit shall be held in the entity's name as evidenced by a trust
128-24 receipt of the bank with which the securities are deposited.
128-25 SECTION 8.70. Section 2257.002(4), Government Code, is
128-26 amended to read as follows:
128-27 (4) "Deposit of public funds" means public funds of a
129-1 public entity that:
129-2 (A) the comptroller [state treasurer] does not
129-3 manage under Chapter 404; and
129-4 (B) are held as a demand or time deposit by a
129-5 depository institution expressly authorized by law to accept a
129-6 public entity's demand or time deposit.
129-7 SECTION 8.71. Section 2303.503(b), Government Code, is
129-8 amended to read as follows:
129-9 (b) The comptroller [state treasurer] may and is encouraged
129-10 to deposit state money in financial institutions located or doing
129-11 business in enterprise zones.
129-12 SECTION 8.72. Section 2304.024, Government Code, is amended
129-13 to read as follows:
129-14 Sec. 2304.024. INVESTMENT AND DISBURSEMENT OF FUND. The
129-15 comptroller [state treasurer] shall invest and disburse the money
129-16 credited to the fund on the written authorization of the executive
129-17 director of the department.
129-18 SECTION 8.73. Section 2304.066(a), Government Code, is
129-19 amended to read as follows:
129-20 (a) The executive director of the department shall authorize
129-21 the comptroller [state treasurer] to disburse to a local government
129-22 from the housing rehabilitation loan fund the amount of a housing
129-23 rehabilitation loan approved by the local government under this
129-24 chapter if the department receives from the local government a
129-25 notice of the local government's approval of the loan.
129-26 SECTION 8.74. Section 2305.024, Government Code, is amended
129-27 to read as follows:
130-1 Sec. 2305.024. INVESTMENT OF MONEY AND DEPOSIT OF INTEREST.
130-2 (a) The comptroller [state treasurer] may invest unobligated money
130-3 in the account in accordance with Subchapter C, Chapter 404.
130-4 (b) The comptroller [state treasurer] shall deposit to the
130-5 credit of the account all interest or other income received from
130-6 the investment of the money.
130-7 SECTION 8.75. Section 2306.207(a), Government Code, is
130-8 amended to read as follows:
130-9 (a) The housing finance division may create a reserve fund
130-10 with the comptroller [state treasurer] out of:
130-11 (1) proceeds from the sale of the division's bonds; or
130-12 (2) other resources.
130-13 SECTION 8.76. Section 2306.452, Government Code, is amended
130-14 to read as follows:
130-15 Sec. 2306.452. PAYMENT ENFORCEABLE BY MANDAMUS. A writ of
130-16 mandamus and any other legal or equitable remedy are available to a
130-17 party in interest to require the department, the comptroller
130-18 [treasurer], or another party to carry out an agreement or to
130-19 perform a function or duty under:
130-20 (1) this chapter;
130-21 (2) the Texas Constitution; or
130-22 (3) the department's bond resolutions.
130-23 SECTION 8.77. Section 2309.021(a), Government Code, is
130-24 amended to read as follows:
130-25 (a) The Texas home port trust fund is administered by the
130-26 comptroller [state treasurer] and may be paid only on written
130-27 authorization of the governor.
131-1 ARTICLE 9. CHANGES TO HUMAN RESOURCES CODE
131-2 SECTION 9.01. Section 22.005(f), Human Resources Code, is
131-3 amended to read as follows:
131-4 (f) The comptroller [state treasurer] is the designated
131-5 custodian of all funds administered by the department and received
131-6 by the state from the federal government or any other source for
131-7 the purpose of implementing the provisions of the Social Security
131-8 Act. The comptroller [treasurer] may receive the funds, pay them
131-9 into the proper fund or account of the general fund of the state
131-10 treasury, provide for the proper custody of the funds, and make
131-11 disbursements of the funds on the order of the department and on
131-12 warrant of the comptroller.
131-13 SECTION 9.02. Section 50.005(b), Human Resources Code, is
131-14 amended to read as follows:
131-15 (b) The comptroller shall, on requisition of the department,
131-16 draw warrants from time to time [on the State Treasurer] for the
131-17 amount specified in the requisition, not exceeding the amount in
131-18 the fund at the time the requisition is made. However, all money
131-19 expended in the administration, implementation, or enforcement of
131-20 this chapter shall be specified and determined by itemized
131-21 appropriation in the General Appropriations Act for the department
131-22 and not otherwise.
131-23 SECTION 9.03. Sections 91.056(a) and (c), Human Resources
131-24 Code, are amended to read as follows:
131-25 (a) The comptroller [state treasurer] is custodian of
131-26 federal funds received by the state to implement federal law
131-27 relating to vocational rehabilitation.
132-1 (c) The comptroller [treasurer] shall disburse state and
132-2 federal vocational rehabilitation funds on certification by the
132-3 executive director.
132-4 ARTICLE 10. CHANGES TO HEALTH AND SAFETY CODE
132-5 SECTION 10.01. Section 42.011(c), Health and Safety Code, is
132-6 amended to read as follows:
132-7 (c) The comptroller [state treasurer] may receive all money
132-8 appropriated by congress and allotted to this state for carrying
132-9 out this chapter or agreements or plans authorized by this chapter.
132-10 SECTION 10.02. Section 224.0245, Health and Safety Code, is
132-11 amended to read as follows:
132-12 Sec. 224.0245. OFFICIAL CUSTODIAN. The comptroller [state
132-13 treasurer] is the official custodian of the minutes, books,
132-14 records, and seal of the financing council.
132-15 SECTION 10.03. Section 224.027, Health and Safety Code, is
132-16 amended to read as follows:
132-17 Sec. 224.027. SUPPORT STAFF. The office of the comptroller
132-18 [state treasurer] shall provide staff and other support necessary
132-19 to carry out the duties and powers of the financing council.
132-20 SECTION 10.04. Section 242.096(a), Health and Safety Code,
132-21 is amended to read as follows:
132-22 (a) The nursing and convalescent home trust fund is with the
132-23 comptroller [state treasurer] and shall be made available to the
132-24 department for expenditures without legislative appropriation to
132-25 make emergency assistance funds available to a home.
132-26 SECTION 10.05. Section 361.133(b), Health and Safety Code,
132-27 is amended to read as follows:
133-1 (b) The fund consists of money collected by the commission
133-2 from:
133-3 (1) fees imposed on the owner or operator of an
133-4 industrial solid waste or hazardous waste facility for commercial
133-5 and noncommercial management or disposal of hazardous waste or
133-6 commercial disposal of industrial solid waste under Section 361.136
133-7 and fees imposed under Section 361.138;
133-8 (2) interest and penalties imposed under Section
133-9 361.140 for late payment of a fee or late filing of a report;
133-10 (3) money paid by a person liable for facility cleanup
133-11 and maintenance under Section 361.197;
133-12 (4) the interest received from the investment of this
133-13 fund, in accounts under the charge of the comptroller [treasurer],
133-14 to be credited pro rata to the hazardous and solid waste
133-15 remediation fee fund;
133-16 (5) monies transferred from other agencies under
133-17 provisions of this code or grants or other payments from any person
133-18 made for the purpose of remediation of facilities under this
133-19 chapter or the investigation, cleanup, or removal of a spill or
133-20 release of a hazardous substance;
133-21 (6) fees imposed under Section 361.604; and
133-22 (7) federal grants received for the implementation or
133-23 administration of state voluntary cleanup programs.
133-24 SECTION 10.06. Section 402.294(d), Health and Safety Code,
133-25 is amended to read as follows:
133-26 (d) The board may authorize the comptroller [state
133-27 treasurer] to invest the money in a fund established under
134-1 Subsection (b) in investments allowed by law for state funds.
134-2 Money earned on those investments shall be deposited to the credit
134-3 of that fund.
134-4 SECTION 10.07. Section 467.0041(c), Health and Safety Code,
134-5 is amended to read as follows:
134-6 (c) The board may collect a fee of not more than $50 each
134-7 month from a participant in an approved peer assistance program.
134-8 Fees collected under this subsection shall be remitted to the
134-9 comptroller [state treasurer] for deposit to the credit of the
134-10 dental registration account.
134-11 ARTICLE 11. CHANGES TO INSURANCE CODE
134-12 SECTION 11.01. Section 17, Article 1.10, Insurance Code, is
134-13 amended to read as follows:
134-14 17. Voluntary Deposits. (a) In the event any insurance
134-15 company organized and doing business under the provisions of this
134-16 Code shall be required by any other state, country or province as a
134-17 requirement for permission to do an insurance business therein to
134-18 make or maintain a deposit with an officer of any state, country,
134-19 or province, such company, at its discretion, may voluntarily
134-20 deposit with the Comptroller [State Treasurer] such securities as
134-21 may be approved by the Commissioner of Insurance to be of the type
134-22 and character authorized by law to be legal investments for such
134-23 company, or cash, in any amount sufficient to enable it to meet
134-24 such requirements. The Comptroller [State Treasurer] is hereby
134-25 authorized and directed to receive such deposit and hold it
134-26 exclusively for the protection of all policyholders or creditors of
134-27 the company wherever they may be located, or for the protection of
135-1 the policyholders or creditors of a particular state, country or
135-2 province, as may be designated by such company at the time of
135-3 making such deposit. The company may, at its option, withdraw such
135-4 deposit or any part thereof, first having deposited with the
135-5 Comptroller [Treasurer], in lieu thereof, other securities of like
135-6 class and of equal amount and value to those withdrawn, which
135-7 withdrawal and substitution must be approved by the Commissioner of
135-8 Insurance. The proper officer of each insurance company making
135-9 such deposit shall be permitted at all reasonable times to examine
135-10 such securities and to detach coupons therefrom, and to collect
135-11 interest thereon, under such reasonable rules and regulations as
135-12 may be prescribed by the Comptroller [State Treasurer] and the
135-13 Commissioner of Insurance. Any deposit so made for the protection
135-14 of policyholders or creditors of a particular state, country or
135-15 province shall not be withdrawn, except by substitution as provided
135-16 above, by the company, except upon filing with the Commissioner of
135-17 Insurance evidence satisfactory to him that the company has
135-18 withdrawn from business, and has no unsecured liabilities
135-19 outstanding or potential policyholder liabilities or obligations in
135-20 such other state, country or province requiring such deposit, and
135-21 upon the filing of such evidence the company may withdraw such
135-22 deposit at any time upon the approval of the Commissioner of
135-23 Insurance. Any deposit so made for the protection of all
135-24 policyholders or creditors wherever they may be located shall not
135-25 be withdrawn, except by substitution as provided above, by the
135-26 company except upon filing with the Commissioner of Insurance
135-27 evidence satisfactory to him that the company does not have any
136-1 unsecured liabilities outstanding or potential policy liabilities
136-2 or obligations anywhere, and upon filing such evidence the company
136-3 may withdraw such deposit upon the approval of the Commissioner of
136-4 Insurance. For the purpose of state, county and municipal
136-5 taxation, the situs of any securities deposited with the
136-6 Comptroller [State Treasurer] hereunder shall be in the city and
136-7 county where the principal business office of such company is fixed
136-8 by its charter.
136-9 (b) Any voluntary deposit held by the Comptroller [State
136-10 Treasurer] or the Department heretofore made by any insurance
136-11 company in this State, and which deposit was made for the purpose
136-12 of gaining admission to another state, may be considered, at the
136-13 option of such company, to be hereinafter held under the provisions
136-14 of this Act.
136-15 (c) When two or more companies merge or consolidate or enter
136-16 a total reinsurance contract by which the ceding company is
136-17 dissolved and its assets acquired and liabilities assumed by the
136-18 surviving company, and the companies have on deposit with the
136-19 Comptroller [State Treasurer] two or more deposits made for
136-20 identical purposes under this section or Article 4739, Revised
136-21 Statutes, as amended, and now repealed, all such deposits, except
136-22 the deposit of greatest amount and value, may be withdrawn by the
136-23 new surviving or reinsuring company, upon proper showing of
136-24 duplication of such deposits and that the company is the owner
136-25 thereof.
136-26 (d) Any company which has made a deposit or deposits under
136-27 this section or Article 4739, Revised Statutes, as amended and now
137-1 repealed, shall be entitled to a return of such deposits upon
137-2 proper application therefor and a showing before the Commissioner
137-3 that such deposit or deposits are no longer required under the laws
137-4 of any state, country or province in which such company sought or
137-5 gained admission to do business upon the strength of a certificate
137-6 of such deposit.
137-7 (e) Upon being furnished a certified copy of the
137-8 Commissioner's order issued under Subsection (c) or (d) above, the
137-9 Comptroller [Treasurer of the State of Texas] shall release,
137-10 transfer and deliver such deposit or deposits to the owner as
137-11 directed in said order.
137-12 SECTION 11.02. Article 1.20, Insurance Code, is amended to
137-13 read as follows:
137-14 Art. 1.20. TRANSFER OF SECURITIES BY BOARD. No transfer by
137-15 the Board of securities of any kind, in any way held by it, shall
137-16 be valid unless countersigned by the comptroller [State Treasurer].
137-17 SECTION 11.03. Article 1.21, Insurance Code, is amended to
137-18 read as follows:
137-19 Art. 1.21. DUTY OF COMPTROLLER [STATE TREASURER]. It is the
137-20 duty of the comptroller [State Treasurer]:
137-21 1. To countersign any such transfer presented to him
137-22 by the Board.
137-23 2. To keep a record of all transfers, stating the name
137-24 of the transferee, unless transferred in blank, and a description
137-25 of the security.
137-26 3. Upon countersigning, to advise by mail the company
137-27 concerned, the particulars of the transaction.
138-1 4. In his annual report to the Legislature to state
138-2 the transfers and the amount thereof, countersigned by him.
138-3 SECTION 11.04. Article 1.22, Insurance Code, is amended to
138-4 read as follows:
138-5 Art. 1.22. FREE ACCESS TO RECORDS. To verify the
138-6 correctness of records, the Board shall be entitled to free access
138-7 to the comptroller's [Treasurer's] records, required by the
138-8 preceding article, and the comptroller [Treasurer] shall be
138-9 entitled to free access to the books and other documents of the
138-10 Insurance Department relating to securities held by the Board.
138-11 SECTION 11.05. Section 4, Article 1.31A, Insurance Code, is
138-12 amended to read as follows:
138-13 Sec. 4. Certain Money Included. The money received from
138-14 sales, reimbursements, and other fees authorized by law other than
138-15 this code includes money received from the following:
138-16 (1) fees received by the department for providing
138-17 copies of public records under Chapter 552, Government Code [424,
138-18 Acts of the 63rd Legislature, Regular Session, 1973, as amended
138-19 (Article 6252-17a, Vernon's Texas Civil Statutes)];
138-20 (2) money or credits received by the department for
138-21 surplus or salvage property under Subchapters C and D, Chapter
138-22 2175, Government Code [Sections 9.04 and 9.05, State Purchasing and
138-23 General Services Act (Article 601b, Vernon's Texas Civil
138-24 Statutes)];
138-25 (3) money received by the department from the sale of
138-26 publications and other printed material under Sections 2052.301 and
138-27 2052.302, Government Code [Chapter 248, Acts of the 55th
139-1 Legislature, Regular Session, 1957 (Article 4413(33), Vernon's
139-2 Texas Civil Statutes)];
139-3 (4) receipts to the department from miscellaneous
139-4 transactions and sources under Section 403.011 or 403.012,
139-5 Government Code, as amended;
139-6 (5) money received by the department from charges for
139-7 postage spent to serve legal process under Section 17.025, Civil
139-8 Practice and Remedies Code;
139-9 (6) [receipts to the department for furnishing
139-10 necessary and authorized special or technical services under
139-11 Chapter 741, Government Code as amended;]
139-12 [(7)] receipts to the department from the comptroller
139-13 [State Treasurer] involving warrants for which payment is barred
139-14 under Chapter 404, Government Code, as amended;
139-15 (7) [(8)] money received by the department from sales
139-16 or reimbursements authorized by the General Appropriations Act; and
139-17 (8) [(9)] money received by the department from the
139-18 sale of any property purchased with money from the fund or a
139-19 predecessor fund.
139-20 SECTION 11.06. Article 3.15, Insurance Code, is amended to
139-21 read as follows:
139-22 Art. 3.15. DEPOSIT OF SECURITIES IN AMOUNT OF CAPITAL STOCK.
139-23 (a) Any "domestic" company may, at its option, deposit with the
139-24 comptroller [Treasurer of this State], securities in which its
139-25 capital stock is invested, or securities equal in amount to its
139-26 capital stock, of the class in which the law of this State permits
139-27 such insurance companies to invest their capital stock, and may, at
140-1 its option, withdraw the same or any part thereof, first having
140-2 deposited with the comptroller [Treasurer], in lieu thereof, other
140-3 securities of like class and equal amount and value to those
140-4 withdrawn. Any such securities, before being so originally
140-5 deposited or substituted, shall be approved by the Board of
140-6 Insurance Commissioners. When any such deposit is made, the
140-7 comptroller [Treasurer] shall execute to the company making such
140-8 deposit a receipt therefor, giving such description of said stock
140-9 or securities as will identify the same, and stating that the same
140-10 are held on deposit as the capital stock investments of such
140-11 company; and such company shall have the right to advertise such
140-12 fact or print a copy of the comptroller's [Treasurer's] receipt on
140-13 the policies it may issue; and the proper officer or agent of each
140-14 insurance company making such deposit shall be permitted at all
140-15 reasonable times to examine such securities and to detach coupons
140-16 therefrom, and to collect interest thereon, under such reasonable
140-17 rules and regulations as may be prescribed by the comptroller
140-18 [Treasurer] and the Board of Insurance Commissioners. The deposit
140-19 herein provided for, when made by any company, shall thereafter be
140-20 maintained so long as said company shall have outstanding any
140-21 liability to its policyholders in this State. For the purpose of
140-22 state, county and municipal taxation, the situs of securities
140-23 deposited with the comptroller [treasurer] by domestic insurance
140-24 companies shall be in the city and county where the principal
140-25 business office of such company is fixed by its charter.
140-26 (b) When two or more companies merge or consolidate or enter
140-27 a total reinsurance contract by which the ceding company is
141-1 dissolved and its assets acquired and liabilities assumed by the
141-2 surviving company, and the companies have on deposit with the
141-3 comptroller [State Treasurer] two or more deposits made under
141-4 Article 3.15 of the Texas Insurance Code, as amended, all such
141-5 deposits, except the deposit of greatest amount and value may be
141-6 withdrawn by the new, surviving or reinsuring company upon proper
141-7 showing before the Commissioner that the company is the owner
141-8 thereof. The comptroller [Treasurer of the State of Texas] shall
141-9 release, transfer and deliver such deposit or deposits to the owner
141-10 as directed by order of the Commissioner.
141-11 SECTION 11.07. Article 3.23, Insurance Code, is amended to
141-12 read as follows:
141-13 Art. 3.23. ALIEN COMPANIES TO DEPOSIT. (a) No alien
141-14 insurance company shall transact business in this State, unless it
141-15 shall first deposit and keep deposited with the comptroller
141-16 [Treasurer of this State], for the benefit of the policyholders of
141-17 such company, citizens or residents of the United States, bonds or
141-18 securities of the United States or the State of Texas in an amount
141-19 at least equal to the minimum capital required to be maintained by
141-20 a domestic stock insurer licensed to transact the same kind of
141-21 insurance, or at least equal to one-half the minimum free surplus
141-22 required to be maintained by a domestic mutual insurer licensed to
141-23 transact the same kind of insurance.
141-24 (b) Upon approval of the commissioner in accordance with
141-25 Article 3.27-1 of this subchapter, a licensed alien insurer may be
141-26 permitted to deposit assets with a trustee or trustees for the
141-27 security of its policyholders in the United States in lieu of
142-1 making the deposit with the comptroller [Treasurer of this State]
142-2 so long as such assets are composed of securities or bonds of the
142-3 United States or this State and are maintained in accordance with
142-4 provisions of Article 3.27-1 of this code.
142-5 SECTION 11.08. Article 3.25, Insurance Code, is amended to
142-6 read as follows:
142-7 Art. 3.25. LAW DEEMED ACCEPTED. Each life insurance company
142-8 not organized under the laws of this State, hereafter granted a
142-9 certificate of authority to transact business in this State, shall
142-10 be deemed to have accepted such certificate and to transact such
142-11 business hereunder subject to the conditions and requirements that,
142-12 after it shall cease to transact new business in this State under a
142-13 certificate of authority, and so long as it shall continue to
142-14 collect renewal premiums from citizens of this State, it shall be
142-15 subject to the payment of the same occupation tax in proportion to
142-16 its gross premiums during any year, from citizens of this State, as
142-17 is or may be imposed by law on such companies transacting new
142-18 business within this State, under certificates of authority during
142-19 such year. The rate of such tax to be so paid by any such company
142-20 shall never exceed the rate imposed by law upon insurance companies
142-21 transacting business in this State. Each such company shall make
142-22 the same reports of its gross premium receipts for each such year
142-23 and within the same period as is or may be required of such
142-24 companies holding certificates of authority and shall at all times
142-25 be subject to examination by the Board of Insurance Commissioners
142-26 or some one selected by it for that purpose, in the same way and to
142-27 the same extent as is or may be required of companies transacting
143-1 new business under certificates of authority in this State, the
143-2 expenses of such examination to be paid by the company examined.
143-3 The respective duties of the Board in certifying to the amount of
143-4 such taxes and of the comptroller [State Treasurer] and Attorney
143-5 General in their collection shall be the same as are or may be
143-6 prescribed respecting taxes due from companies authorized to
143-7 transact new business within this State.
143-8 SECTION 11.09. Section 3(a)(5)(A), Texas Employees Uniform
143-9 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
143-10 Insurance Code), is amended to read as follows:
143-11 (A) "Employee" shall mean any appointive or
143-12 elective officer or employee in the service of the State of Texas,
143-13 including an employee of an institution of higher education:
143-14 (i) who is retired or retires and is an
143-15 annuitant under the jurisdiction of the Employees Retirement System
143-16 of Texas, pursuant to Subtitle B, D, or E;
143-17 (ii) who is retired or retires and is an
143-18 annuitant under the jurisdiction of the Teacher Retirement System
143-19 of Texas, pursuant to Subtitle C, Title 8, Government Code, or
143-20 pursuant to Chapter 803, Government Code, and whose last employment
143-21 with the state prior to retirement, including employment by a
143-22 public community/junior college, was as an employee of a department
143-23 whose employees are authorized to participate in the Texas
143-24 employees uniform group insurance program;
143-25 (iii) who is retired or retires and is an
143-26 annuitant under the optional retirement program established by
143-27 Chapter 830, Government Code, if the person's last state employment
144-1 before retirement, including employment by a public
144-2 community/junior college, was as an employee of a department whose
144-3 employees are authorized to participate in the Texas employees
144-4 uniform group insurance program, and if the person either:
144-5 (a) would have been
144-6 eligible to retire and receive a service retirement annuity from
144-7 the Teacher Retirement System of Texas or the Employees Retirement
144-8 System of Texas had the person not elected to participate in the
144-9 optional retirement program; or
144-10 (b) is disabled as
144-11 determined by the Employees Retirement System of Texas;
144-12 (iv) who receives compensation for
144-13 services rendered to the State of Texas, other than an employee of
144-14 an institution of higher education described by this subdivision,
144-15 on a warrant issued pursuant to a payroll certified by a department
144-16 or by an elected or duly appointed officer of this state;
144-17 (v) who receives payment for the
144-18 performance of personal services on a warrant issued pursuant to a
144-19 payroll certified by a department and drawn by the comptroller
144-20 [State Comptroller of Public Accounts] upon the State Treasury
144-21 [Treasurer] against appropriations made by the Texas Legislature
144-22 from any state funds or against any trust funds held by the
144-23 comptroller [State Treasurer] or who is paid from funds of an
144-24 official budget of a state department, rather than from funds of
144-25 the General Appropriations Act;
144-26 (vi) who is appointed, subject to
144-27 confirmation of the senate, as a member of a board or commission
145-1 with administrative responsibility over a statutory agency having
145-2 statewide jurisdiction whose employees are covered by this Act;
145-3 (vii) who is a member of the governing
145-4 body of an institution of higher education, as that term is defined
145-5 by this Act;
145-6 (viii) who is a member of the State Board
145-7 of Education;
145-8 (ix) who receives compensation for
145-9 services rendered to an institution of higher education on a
145-10 warrant or check issued pursuant to a payroll certified by an
145-11 institution of higher education or by an elected or duly appointed
145-12 officer of this state, and who is eligible for participation in the
145-13 Teacher Retirement System of Texas; or
145-14 (x) who receives compensation for services
145-15 rendered to an institution of higher education as provided by this
145-16 subdivision but is not permitted to be a member of the Teacher
145-17 Retirement System of Texas because the person is solely employed by
145-18 an institution of higher education that as a condition of
145-19 employment requires the person to be enrolled as a student in an
145-20 institution of higher education in graduate-level courses and who
145-21 is employed by the institution at least 20 hours a week.
145-22 SECTION 11.10. Section 18(a), Texas Employees Uniform Group
145-23 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
145-24 Code), is amended to read as follows:
145-25 (a) The group benefits advisory committee is composed of 26
145-26 [27] voting members as provided by this section. The office of the
145-27 attorney general, [the office of the state treasurer,] the office
146-1 of the comptroller, the Railroad Commission of Texas, the General
146-2 Land Office, and the Department of Agriculture are entitled to be
146-3 represented by one member each on the committee, who may be
146-4 appointed by the governing body of the state agency or elected by
146-5 and from the employees of the agency, as determined by rule by the
146-6 governing body of the agency. One employee shall be elected from
146-7 each of the remaining eight largest state agencies that are
146-8 governed by appointed officers by and from the employees of those
146-9 agencies. One nonvoting member shall be the executive director of
146-10 the Employees Retirement System of Texas. One member shall be an
146-11 expert in employee benefit issues from the private sector,
146-12 appointed by the governor. One member shall be an expert in
146-13 employee benefits issues from the private sector, appointed by the
146-14 lieutenant governor. One member shall be a retired state employee
146-15 appointed by the trustee. One member shall be a state employee of
146-16 a state agency other than one of the eight largest state agencies,
146-17 appointed by the trustee. Not more than one employee from a
146-18 particular state agency may serve on the committee. Each of the
146-19 seven largest institutions of higher education, as determined by
146-20 the number of employees on the payroll of an institution, shall
146-21 elect one member of the committee from among persons who have each
146-22 been nominated by a petition signed by at least 300 employees. Two
146-23 members shall be employees of institutions of higher education,
146-24 other than the seven largest institutions of higher education, who
146-25 are appointed by the Texas Higher Education Coordinating Board, but
146-26 not more than one employee shall be from any one institution. The
146-27 members shall elect a presiding officer from their membership to
147-1 serve a one-year term.
147-2 SECTION 11.11. Subsection (a), Section 15, Texas Public
147-3 School Employees Group Insurance Act (Article 3.50-4, Vernon's
147-4 Texas Insurance Code), is amended to read as follows:
147-5 (a) The school employees group insurance fund is created.
147-6 The comptroller [State Treasurer] is the custodian of the fund, and
147-7 the trustee shall administer the fund. All contributions from
147-8 active employees, retirees, and the state, contributions for
147-9 optional coverages, investment income, appropriations for
147-10 implementation of this program, and other money required or
147-11 authorized to be paid into the fund shall be paid into the fund.
147-12 From the fund shall be paid, without state fiscal year limitation,
147-13 the appropriate premiums to the carrier or carriers providing group
147-14 coverage under the plan or plans under this article, claims for
147-15 benefits under the group coverage, and the amounts expended by the
147-16 trustee for administration of the program. The appropriate portion
147-17 of the contributions to the fund to provide for incurred but
147-18 unreported claim reserves and contingency reserves, as determined
147-19 by the trustee, shall be retained in the fund.
147-20 SECTION 11.12. Section 16A(h), Texas Public School Employees
147-21 Group Insurance Act (Article 3.50-4, Vernon's Texas Insurance
147-22 Code), is amended to read as follows:
147-23 (h) An employer who fails to comply with this section may
147-24 not, after the failure, apply for or spend any money from a federal
147-25 or private grant. The trustee shall report alleged noncompliance
147-26 to the attorney general, [the state treasurer,] the Legislative
147-27 Budget Board, the comptroller of public accounts, and the governor.
148-1 The attorney general shall bring a writ of mandamus against the
148-2 employer to compel compliance with this section.
148-3 SECTION 11.13. Article 3.51-4, Insurance Code, is amended to
148-4 read as follows:
148-5 Art. 3.51-4. PAYMENT OF PREMIUMS OF GROUP LIFE AND HEALTH
148-6 INSURANCE POLICIES FOR RETIREES OF THE CENTRAL EDUCATION AGENCY,
148-7 THE TEXAS REHABILITATION COMMISSION, THE COORDINATING BOARD, TEXAS
148-8 COLLEGE AND UNIVERSITY SYSTEM, RETIRED EMPLOYEES OF THE TEXAS
148-9 DEPARTMENT OF MENTAL HEALTH AND MENTAL RETARDATION WHO ACCEPTED
148-10 RETIREMENT UNDER THE TEACHER RETIREMENT SYSTEM OF TEXAS, RETIRED
148-11 EMPLOYEES OF THE TEXAS YOUTH COMMISSION WHO ACCEPTED RETIREMENT
148-12 UNDER THE TEACHER RETIREMENT SYSTEM OF TEXAS, AND RETIRED EMPLOYEES
148-13 OF THE TEACHER RETIREMENT SYSTEM OF TEXAS WHO ACCEPTED RETIREMENT
148-14 UNDER THE TEACHER RETIREMENT SYSTEM OF TEXAS. The premium cost of
148-15 group life, health, accident, hospital, surgical and/or medical
148-16 expense insurance for retirees of the Central Education Agency, the
148-17 Texas Rehabilitation Commission, the Coordinating Board, Texas
148-18 College and University System, for retired employees of the Texas
148-19 Department of Mental Health and Mental Retardation, the Texas Youth
148-20 Commission, and the Teacher Retirement System of Texas who accepted
148-21 retirement under the Teacher Retirement System of Texas pursuant to
148-22 Chapter 3, Texas Education Code, shall be paid by the State of
148-23 Texas, subject to the following limitations and conditions:
148-24 (a) Payment shall be from the funds of the agency,
148-25 commission, board or department from which the officer or employee
148-26 retired, shall be limited to the same amount allowed active
148-27 employees under current group life and health insurance programs of
149-1 the agency, commission, board or department, and shall be made in
149-2 accordance with rules and regulations to be established no later
149-3 than September 1, 1973, by the Central Education Agency, the Texas
149-4 Rehabilitation Commission, and the Coordinating Board, Texas
149-5 College and University System for its respective retirees and no
149-6 later than September 1, 1975, by the Texas Department of Mental
149-7 Health and Mental Retardation, the Texas Youth Commission, and the
149-8 Teacher Retirement System of Texas for their retired employees who
149-9 accepted retirement under the Teacher Retirement System of Texas
149-10 pursuant to Chapter 3, Texas Education Code.
149-11 (b) The agency, commission, board and department shall
149-12 certify to the state comptroller of public accounts [and to the
149-13 state treasurer] each month the amount required each month to pay
149-14 the insurance premiums of the said retirees, and the State of Texas
149-15 shall pay the amount so ascertained each month, beginning September
149-16 1, 1973, to the Central Education Agency, the Texas Rehabilitation
149-17 Commission, and the Coordinating Board, Texas College and
149-18 University System, and beginning September 1, 1975, to the Texas
149-19 Department of Mental Health and Mental Retardation and the Texas
149-20 Youth Commission.
149-21 SECTION 11.14. Article 3.51-5(a), Insurance Code, is amended
149-22 to read as follows:
149-23 (a) The costs of group life and health insurance premiums to
149-24 persons retired under the Teacher Retirement Act, who at the time
149-25 of their retirement were employed by the Texas Central Education
149-26 Agency, the Texas Rehabilitation Commission, the Texas Department
149-27 of Mental Health and Mental Retardation, the Texas Youth
150-1 Commission, a Texas senior college or university, and the
150-2 Coordinating Board, Texas College and University System, shall be
150-3 fully paid from the funds of such agency, commission, institution,
150-4 or board under the following provisions and conditions: (1) The
150-5 coverage of this Act shall extend to all such retired persons
150-6 within the limits of eligibility under state contracts in force on
150-7 the effective date of this Act or as may be otherwise provided by
150-8 law; (2) such payment shall be in accordance with rules and
150-9 regulations established by such agency, commission, institution, or
150-10 board; (3) such agency, commission, institution, and board shall
150-11 certify to the Comptroller of Public Accounts [and the State
150-12 Treasurer] each month the amount so ascertained each month to such
150-13 agency, commission, institution, and board; (4) payments shall
150-14 begin on the first day of the month following the month in which
150-15 this Act takes effect and shall continue to be paid until otherwise
150-16 provided by law.
150-17 SECTION 11.15. Article 3.51-7(d), Insurance Code, is amended
150-18 to read as follows:
150-19 (d) Such payment shall be made in accordance with rules and
150-20 regulations established by the Central Education Agency, the
150-21 Teacher Retirement System of Texas, the Texas School for the Blind
150-22 and Visually Impaired, or for the Texas School for the Deaf, and
150-23 each shall certify to the Comptroller of Public Accounts of Texas
150-24 [and the State Treasurer] each month the amounts of all such
150-25 payments made in the preceding month.
150-26 SECTION 11.16. Sections 4-12 and 14-16, Article 4.08,
150-27 Insurance Code, are amended to read as follows:
151-1 Sec. 4. REPORTS. Every such life insurance company shall on
151-2 or before the first day of November of each year make a report in
151-3 writing to the comptroller [State Treasurer of Texas] of all
151-4 unclaimed funds, as hereinbefore defined, held and owing by it on
151-5 the 30th day of June next preceding, provided, however, such report
151-6 shall not be required to include amounts which have been paid to
151-7 another state or jurisdiction under any escheat or unclaimed funds
151-8 law thereof. Such report shall be signed and sworn to by an
151-9 officer of such company and shall set forth: (1) in alphabetical
151-10 order the full name of the insured or annuitant, the last known
151-11 address according to the company's records, and the policy or
151-12 contract number; (2) the amount appearing from the company's
151-13 records to be due on such policy or contract; (3) the date such
151-14 unclaimed funds became payable; (4) the name and last known address
151-15 of each beneficiary or other person who, according to the company's
151-16 records, may have an interest in such unclaimed funds; and (5) such
151-17 other identifying information as the comptroller [State Treasurer]
151-18 may require; provided, however, that individual amounts of less
151-19 than $50 may be reported in the aggregate without furnishing any of
151-20 the information required in Clauses (1), (2), (3), (4), and (5) of
151-21 this Section. Each life insurance company required to file a
151-22 report under this Section shall maintain a record of the name and
151-23 last known address, if any, of the insured, annuitant, or
151-24 beneficiary, the policy or contract number, and the amount
151-25 appearing from the company's records to be due on the policy or
151-26 contract for 10 years after the funds are reportable, whether or
151-27 not the amount was reported in the aggregate under this Section.
152-1 The comptroller [State Treasurer] may provide by rule for a shorter
152-2 holding period for these records.
152-3 Sec. 5. NOTICE; PUBLICATION. (a) In the calendar year
152-4 following the submission of the reports required under Section 4 of
152-5 this Article and the payment to the comptroller [State Treasurer]
152-6 under Section 6 of this Article of all unclaimed funds described in
152-7 the report, the comptroller [State Treasurer] may cause to be
152-8 published notices based on the information contained in such
152-9 reports. Except as provided by Subsection (d) of this Section,
152-10 such a notice shall be published once in a newspaper published or
152-11 having a general circulation in each county of this state in which
152-12 is located the last known address of a person appearing to be
152-13 entitled to such funds.
152-14 (b) Each such notice shall set forth in alphabetical order
152-15 the names of the insureds or annuitants under policies or contracts
152-16 and the city of last known address, if any. The notice shall also
152-17 state that such unclaimed funds have been delivered to the
152-18 comptroller [State Treasurer] on the preceding November 1 and that
152-19 those funds may be claimed from the comptroller [State Treasurer].
152-20 (c) It shall not be obligatory upon the comptroller [State
152-21 Treasurer] to publish any item of less than Fifty Dollars ($50) in
152-22 such notice, unless the comptroller [State Treasurer] deems such
152-23 publication to be in the public interest. Expenses incurred for
152-24 the publication of notice may be charged against the funds
152-25 delivered to the comptroller [State Treasurer] under Section 6 of
152-26 this Article.
152-27 (d) The comptroller [State Treasurer] may use a method of
153-1 publishing notice that is different from that prescribed by
153-2 Subsection (a) of this Section if the comptroller [State Treasurer]
153-3 determines that the different method would be as likely as the
153-4 prescribed method to give actual notice to the person required to
153-5 be named in the notice.
153-6 Sec. 6. PAYMENT TO COMPTROLLER [STATE TREASURER]. All
153-7 unclaimed funds contained in the report required to be filed by
153-8 Section 4 of this Article shall be delivered to the comptroller
153-9 [State Treasurer] on or before November 1 with the report.
153-10 Sec. 7. CUSTODY OF UNCLAIMED FUNDS IN STATE; INSURERS
153-11 INDEMNIFIED. Upon the payment of such unclaimed funds to the
153-12 comptroller [State Treasurer] the state shall assume, for the
153-13 benefit of those entitled to receive the same and for the safety of
153-14 the money so paid, the custody of such unclaimed funds, and the
153-15 life insurance company making such payment shall immediately and
153-16 thereafter be relieved of and held harmless by the state from any
153-17 and all liability for any claim or claims which exist at such time
153-18 with reference to such unclaimed funds or which thereafter may be
153-19 made or may come into existence on account of or in respect to any
153-20 such unclaimed funds.
153-21 Sec. 8. INDEMNIFICATION FOR CLAIMS. (a) Any life insurance
153-22 company which in good faith has paid monies to the comptroller
153-23 [State Treasurer] pursuant to this Article is relieved of all
153-24 liability for a claim that exists at the time of delivery, that
153-25 arises after delivery to the comptroller [State Treasurer], or that
153-26 is made with respect to the property, to the extent of the value of
153-27 the property delivered.
154-1 (b) If a life insurance company in good faith delivers
154-2 property to the comptroller [State Treasurer] and after delivery a
154-3 person claims the property from the life insurance company or
154-4 another state claims the property under its laws relating to
154-5 escheat or unclaimed property, the attorney general shall, on
154-6 written notice of the claim, defend the life insurance company
154-7 against the claim. The life insurance company shall be indemnified
154-8 from the unclaimed money fund established under Section 74.601,
154-9 Property Code, against any liability on the claim.
154-10 Sec. 9. FUND ADMINISTRATION. Upon receipt of any unclaimed
154-11 funds from such life insurance companies by the comptroller [State
154-12 Treasurer], the comptroller [State Treasurer] shall deposit those
154-13 funds in the unclaimed money fund established by Section 74.601,
154-14 Property Code. Money in the unclaimed money fund may be
154-15 appropriated by the legislature to enforce and administer this
154-16 Article.
154-17 Sec. 10. DETERMINATION AND REVIEW OF CLAIMS. Any person
154-18 claiming to be entitled to unclaimed funds paid to the comptroller
154-19 [State Treasurer] may file a claim at any time with such official.
154-20 The comptroller [State Treasurer] shall possess full and complete
154-21 authority to accept or reject any such claim. If he rejects such
154-22 claim or fails to act thereon within ninety days after receipt of
154-23 such claim, the claimant may institute suit therefor in a court of
154-24 competent jurisdiction naming the comptroller [State Treasurer] as
154-25 defendant.
154-26 Sec. 11. PAYMENT OF ALLOWED CLAIMS. Any claim which is
154-27 accepted by the comptroller [State Treasurer] or ordered to be paid
155-1 by him by a court of competent jurisdiction shall be paid out of
155-2 the special trust fund in his custody, or in the event such special
155-3 trust fund shall be insufficient, out of the general funds of the
155-4 state.
155-5 Sec. 12. RECORDS REQUIRED. The comptroller [State
155-6 Treasurer] shall keep in his office a public record of each payment
155-7 of unclaimed funds received by him from any life insurance company.
155-8 Except as to amounts reported in the aggregate, such record shall
155-9 show in alphabetical order the name and last known address of each
155-10 insured or annuitant, and of each beneficiary or other person who,
155-11 according to the company's reports, may have an interest in such
155-12 unclaimed funds, and with respect to each policy or contract, its
155-13 number, the name of the company, and the amount due.
155-14 Sec. 14. INTEREST, ATTORNEY'S FEES, AND PENALTIES. (a) A
155-15 person who fails to pay or deliver property within the time
155-16 prescribed by this Article shall pay to the comptroller [State
155-17 Treasurer] interest, at the judgment rate of interest as published
155-18 by the consumer credit commissioner in the Texas Register, on the
155-19 property or value of the property from the date the property should
155-20 have been paid or delivered until the date the property is actually
155-21 paid or delivered.
155-22 (b) If the comptroller [State Treasurer] presents a claim
155-23 for unclaimed property to a person who fails timely to pay or
155-24 deliver the property and the just amount of the unclaimed property
155-25 owed has not been tendered before the 31st day after the date the
155-26 claim is presented, the comptroller [State Treasurer] may, on
155-27 approval of a court of competent jurisdiction in Travis County,
156-1 recover reasonable attorney's fees from the person in addition to
156-2 unclaimed property and interest due.
156-3 (c) Any person who wilfully fails to file a report required
156-4 by this Article, or who violates any of the other terms and
156-5 provisions of this Article shall be punished by a fine not less
156-6 than Five Hundred Dollars ($500.00), nor more than One Thousand
156-7 Dollars ($1000.00), or by confinement for not more than six months
156-8 in the county jail, or both, and in addition, shall be subject to
156-9 civil penalties of not exceeding One Hundred Dollars ($100.00) for
156-10 each day of such wilful failure or refusal, said civil penalties to
156-11 be collected by suit in a District Court of Travis County, Texas,
156-12 by the Attorney General in the name of the State of Texas.
156-13 Sec. 15. RULES. The comptroller [State Treasurer] may adopt
156-14 rules necessary to carry out this Article.
156-15 Sec. 16. EXAMINATION OF RECORDS. The comptroller [State
156-16 Treasurer] may examine the records of a life insurance company to
156-17 determine if the life insurance company is complying with this
156-18 Article. The comptroller [State Treasurer] may not make public any
156-19 information obtained by an examination made under this Section.
156-20 SECTION 11.17. Section 1, Article 4.10, Insurance Code, is
156-21 amended to read as follows:
156-22 Sec. 1. PAYMENT OF TAX. Every insurance carrier, including
156-23 Lloyd's and reciprocal exchanges and any other organization or
156-24 concern receiving gross premiums from the business of fire, marine,
156-25 marine inland, accident, credit, livestock, fidelity, guaranty,
156-26 surety, casualty, workers' compensation, employers' liability, or
156-27 any other kind or character of insurance, except title insurance
157-1 and except as provided in Sections 2, 3, and 4 of this article,
157-2 shall pay to the comptroller [for transmittal to the state
157-3 treasurer] a tax upon such gross premium receipts as provided in
157-4 this article. Any such insurance carrier doing other kinds of
157-5 insurance business shall pay the tax levied upon its gross premiums
157-6 received from such other kinds of business as provided in Articles
157-7 4.03 and 4.11 of this code.
157-8 SECTION 11.18. Section 6(b), Article 4.10, Insurance Code,
157-9 is amended to read as follows:
157-10 (b) A semiannual prepayment of premium tax must be made on
157-11 March 1st and August 1st by all insurers with net tax liability for
157-12 the previous calendar year in excess of $1,000. The tax paid on
157-13 each date must equal one-half of the total premium tax paid for the
157-14 previous calendar year. Should no premium tax have been paid
157-15 during the previous calendar year, the semiannual payment shall
157-16 equal the tax which would be owed on the aggregate of the gross
157-17 premium receipts for the two previous calendar quarters at the
157-18 minimum tax rate specified by law. The comptroller is authorized
157-19 to [certify for] refund [to the State Treasurer] any overpayment of
157-20 premium taxes that results from the semiannual prepayment system
157-21 herein established.
157-22 SECTION 11.19. Section 1, Article 4.11, Insurance Code, is
157-23 amended to read as follows:
157-24 Sec. 1. Insurance Carriers Required to Pay Premium Tax.
157-25 Every insurance carrier receiving premiums from the business of
157-26 life insurance, accident insurance, health insurance, life and
157-27 accident insurance, life and health insurance, health and accident
158-1 insurance, or life, health, and accident insurance, including
158-2 variable life insurance, credit life insurance, and credit accident
158-3 and health insurance for profit or otherwise or for mutual benefit
158-4 or protection, in this state, shall pay to the comptroller [for
158-5 transmittal to the state treasurer] a tax upon its gross premiums
158-6 as provided in this article.
158-7 SECTION 11.20. Section 13(a), Article 4.11, Insurance Code,
158-8 is amended to read as follows:
158-9 (a) A semiannual prepayment of premium tax must be made on
158-10 March 1 and August 1 by all insurers with net tax liability for the
158-11 previous calendar year in excess of $1,000. The tax paid on each
158-12 date must equal one-half of the total premium tax paid for the
158-13 previous calendar year. Should no premium tax have been paid
158-14 during the previous calendar year, the semiannual payment shall
158-15 equal the tax which would be owed on the aggregate of the gross
158-16 premium receipts for the two previous calendar quarters at the
158-17 minimum tax rate specified by law. The comptroller is authorized
158-18 to [certify for] refund [to the state treasurer] any overpayment of
158-19 premium taxes that results from the semiannual prepayment system
158-20 herein established.
158-21 SECTION 11.21. Sections 1 and 2, Article 4.11A, Insurance
158-22 Code, are amended to read as follows:
158-23 Sec. 1. TAX PAYMENT REQUIREMENT. Each insurance carrier
158-24 receiving any form of administrative or service fee, consideration,
158-25 payment, premium, fund, reimbursement, or compensation for
158-26 performing or providing any service, function, or duty, or acting
158-27 in any administrative, clerical, management, advisory, or technical
159-1 capacity, or providing any claims or expense review, service,
159-2 administration, management, payment, indemnification, or
159-3 reimbursement, under an administrative service contract to be
159-4 performed in this state, or on behalf of persons in this state, or
159-5 for risks located in this state, and relating to any
159-6 employer-employee, multiple employer-employee, self-insurance
159-7 group, member, or other medical, accident, sickness, injury,
159-8 indemnity, death, or health benefit plan, including but not limited
159-9 to any medical, surgical, orthopedic, chiropractic, physical
159-10 therapy, speech pathology, audiology, mental health, dental,
159-11 hospital, workers' compensation, optometric, or health maintenance
159-12 organization plan or program, but excluding any portion of such
159-13 plan for which premiums for insurance are received by the carrier
159-14 and are otherwise subject to taxation by this state under Article
159-15 1.14-1, 1.14-2, 4.10, or 4.11, Insurance Code, or Section 33, Texas
159-16 Health Maintenance Organization Act (Article 20A.33, Vernon's Texas
159-17 Insurance Code), shall pay to the State Board of Insurance as
159-18 provided by this article for transmittal to the comptroller [state
159-19 treasurer] an annual tax on the gross amount of administrative or
159-20 service fees received by the carrier. This section does not apply
159-21 to a person to the extent he receives an administrative or service
159-22 fee, consideration, payment, premium, fund, reimbursement, or
159-23 compensation, as provided by this section, from a unit or units of
159-24 local government, or from units of local government that have
159-25 organized under Chapter 791, Government Code, or Chapter 119, Local
159-26 Government Code [The Interlocal Cooperation Act (Article 4413(32c),
159-27 Vernon's Texas Civil Statutes) or Article 4413(32i), Revised
160-1 Statutes], to provide group workers' compensation, health,
160-2 accident, dental, disability, and life insurance solely to local
160-3 government employees. This section does not apply to local mutual
160-4 aid associations or fraternal benefit societies or associations.
160-5 Sec. 2. OTHER TAX PAYMENT REQUIREMENT. Each person, except
160-6 an insurance carrier subject to Section 1 of this article,
160-7 receiving any form of administrative or service fee, consideration,
160-8 payment, premium, fund, reimbursement, or compensation for
160-9 performing or providing any service, function, or duty, or acting
160-10 in any administrative, clerical, management, advisory, or technical
160-11 capacity, or providing any claims or expense review, service,
160-12 administration, management, payment, indemnification, or
160-13 reimbursement, under an administrative service contract to be
160-14 performed in this state, or on behalf of persons in this state, or
160-15 for risks located in this state, and relating to any
160-16 employer-employee, multiple employer-employee, self-insurance
160-17 group, member, or other medical, accident, sickness, injury,
160-18 indemnity, death, or health benefit plan, including but not limited
160-19 to any medical, surgical, orthopedic, chiropractic, physical
160-20 therapy, speech pathology, audiology, mental health, dental,
160-21 hospital, workers' compensation, optometric, or health maintenance
160-22 organization plan or program, but excluding any portion of such
160-23 plan for which premiums for insurance are received by an insurance
160-24 carrier and are otherwise subject to taxation by this state under
160-25 Article 1.14-1, 1.14-2, 4.10, or 4.11, Insurance Code, or Section
160-26 33, Texas Health Maintenance Organization Act (Article 20A.33,
160-27 Vernon's Texas Insurance Code), shall pay to the State Board of
161-1 Insurance as provided by this article for transmittal to the
161-2 comptroller [state treasurer] an annual tax on the gross amount of
161-3 administrative or service fees received by the person. This
161-4 section does not apply to a person to the extent he receives an
161-5 administrative or service fee, consideration, payment, premium,
161-6 fund, reimbursement, or compensation, as provided by this section,
161-7 from a unit or units of local government, or from units of local
161-8 government that have organized under Chapter 791, Government Code,
161-9 or Chapter 119, Local Government Code [The Interlocal Cooperation
161-10 Act (Article 4413(32c), Vernon's Texas Civil Statutes) or Article
161-11 4413(32i), Revised Statutes], to provide group workers'
161-12 compensation, health, accident, dental, disability, and life
161-13 insurance solely to local government employees. This section does
161-14 not apply to local mutual aid associations or to fraternal benefit
161-15 societies or associations.
161-16 SECTION 11.22. Section 4(c), Article 4.11A, Insurance Code,
161-17 is amended to read as follows:
161-18 (c) Except to the extent preempted by federal law, there is
161-19 imposed on each plan of the type described in Section 1 or 2 of
161-20 this article an annual tax equal to 2.5 percent of the gross amount
161-21 of administrative or service fees and that plan shall pay the tax
161-22 to the State Board of Insurance for transmittal to the comptroller
161-23 [state treasurer]. The tax provided by this subsection is imposed
161-24 and is owed only to the extent a tax is not paid under Subsection
161-25 (a) of this section.
161-26 SECTION 11.23. Sections 7, 8, and 10, Article 4.11A,
161-27 Insurance Code, are amended to read as follows:
162-1 Sec. 7. CERTIFICATION OF TAXES PAID. After receipt by the
162-2 commissioner of insurance of each tax return and tax payments, the
162-3 commissioner shall certify to the comptroller [state treasurer] the
162-4 amount of taxes paid by each insurance carrier or other person.
162-5 The commissioner's certification shall be authorization for the
162-6 comptroller [state treasurer] to transfer those certified amounts
162-7 from the insurance suspense account to the general revenue fund
162-8 unless there is a lawful reason for maintaining the payment in the
162-9 insurance suspense account.
162-10 Sec. 8. SUPPLEMENTAL CERTIFICATION OF TAXES DUE; SUSPENSION
162-11 OF TIME PERIOD; SUIT BY COMMISSIONER. (a) Except as otherwise
162-12 provided by this article, the amount of any tax imposed by this
162-13 article if determined on examination of any carrier or other person
162-14 liable for that tax, or if determined by any other manner, shall be
162-15 filed by the commissioner of insurance with the comptroller [state
162-16 treasurer] by supplemental certificate showing the amount of any
162-17 taxes due by that carrier or other person within four years after
162-18 the return was filed, whether or not the return was filed on or
162-19 after the date due.
162-20 (b) When an administrative review or a judicial proceeding
162-21 is pending in a court of competent jurisdiction prior to the
162-22 expiration of the time presented in Subsection (a) of this section,
162-23 the time period prescribed by Subsection (a) of this section shall
162-24 be suspended with respect to the amount of tax in issue in that
162-25 proceeding until such matters are finally determined, whereupon the
162-26 running of that period of time shall resume until finally expired.
162-27 (c) In the case of failure to file a return or pay the taxes
163-1 due, the commissioner of insurance may notify the comptroller
163-2 [state treasurer] of the failure and the amount of taxes due, and
163-3 the commissioner of insurance may proceed in a court of competent
163-4 jurisdiction for collection of the tax at any time.
163-5 Sec. 10. QUARTERLY PREPAYMENT OF TAXES. A quarterly
163-6 prepayment of the tax must be made on March 1, May 15, August 15,
163-7 and November 15 by all carriers or other persons with net tax
163-8 liability for the previous calendar year in excess of $1,000. The
163-9 tax paid on each date must equal one-fourth of the total tax paid
163-10 for the previous calendar year. Should no tax have been paid
163-11 during the previous calendar year, the quarterly payment shall
163-12 equal the tax which would be owed on the gross amount of
163-13 administrative or service fees received during the previous
163-14 calendar quarter ending March 31, June 30, September 30, or
163-15 December 31 at the tax rate specified by law. The State Board of
163-16 Insurance is authorized to certify for refund to the comptroller
163-17 [state treasurer] any overpayment of taxes that results from the
163-18 quarterly prepayment system herein established.
163-19 SECTION 11.24. Article 5.51, Insurance Code, is amended to
163-20 read as follows:
163-21 Art. 5.51. COMPENSATION OF BOARD. The necessary
163-22 compensation of experts, clerical force, and other persons employed
163-23 by said Board, and all necessary traveling expenses, and such other
163-24 expenses as may be necessary, incurred in carrying out the
163-25 provisions of this subchapter, shall be paid by warrants drawn by
163-26 the Comptroller [upon the State Treasurer] upon the order of said
163-27 Board. The total amount of all salaries and said other expenses
164-1 shall not exceed the sum produced by the assessments on the gross
164-2 premiums of all fire insurance companies doing business in this
164-3 State.
164-4 SECTION 11.25. Article 5.67, Insurance Code, is amended to
164-5 read as follows:
164-6 Art. 5.67. ADDITIONAL COMPENSATION. The necessary
164-7 compensation of experts, the clerical force and other persons
164-8 employed by the Board to carry out the purposes of this subchapter,
164-9 and all necessary traveling expenses and such other expenses as may
164-10 be necessarily incurred in carrying out such provisions shall be
164-11 paid by warrants drawn by the Comptroller [upon the State
164-12 Treasurer] upon the order of said Board. The total amount of all
164-13 salaries and said other expenses shall not exceed the sum assessed
164-14 and collected from companies and associations writing workmen's
164-15 compensation insurance in this State.
164-16 SECTION 11.26. Section 2.07(b), Article 5.76-2, Insurance
164-17 Code, is amended to read as follows:
164-18 (b) The facility shall invest its funds only in investments
164-19 authorized by law for the investment of state funds as provided in
164-20 Chapter 404, Government Code. The governing committee shall
164-21 develop an investment policy and submit the policy to the
164-22 comptroller [state treasurer] for review and approval.
164-23 SECTION 11.27. Section 13(d), Article 5.76-3, Insurance
164-24 Code, is amended to read as follows:
164-25 (d) Money in the fund shall be invested, subject to a policy
164-26 approved by the comptroller [state treasurer], in the types of
164-27 investments authorized by law for an insurer authorized to write
165-1 workers' compensation insurance coverage in this state.
165-2 SECTION 11.28. Article 7.02, Insurance Code, is amended to
165-3 read as follows:
165-4 Art. 7.02. WITHDRAWAL OF UNNECESSARY DEPOSITS. When two or
165-5 more companies authorized to write fidelity, guaranty and surety
165-6 insurance in the State of Texas merge or consolidate, and, incident
165-7 to such merger or consolidation, enter into a total reinsurance
165-8 contract by which the merged or ceding company is dissolved, and
165-9 its assets acquired and liabilities assumed by the new or surviving
165-10 company, the Commissioner of Insurance, upon finding that the
165-11 contracting companies have on deposit with the comptroller [State
165-12 Treasurer] two or more deposits made for the same or similar
165-13 purposes under either former Article 7.03 (repealed by Acts 1957,
165-14 55th Legislature, Regular Session, Chapter 388, p. 1162) or Article
165-15 8.05 of the Insurance Code of Texas, shall authorize the
165-16 comptroller [State Treasurer] to retain for a single purpose only
165-17 the deposit of greater or greatest amount and value and to permit
165-18 the new or surviving reinsuring company, upon proper showing that
165-19 there is such duplication of deposits and that the new or surviving
165-20 company is the owner thereof, to withdraw any or all duplicate or
165-21 excessive deposits.
165-22 SECTION 11.29. Article 8.05, Insurance Code, is amended to
165-23 read as follows:
165-24 Art. 8.05. CAPITAL AND DEPOSITS. Only companies organized
165-25 and doing business under the provisions of this Chapter shall be
165-26 subject to its provisions. Such companies shall have not less than
165-27 the minimum capital and the minimum surplus applicable to casualty,
166-1 fidelity, guaranty, surety and trust companies as set out in
166-2 Article 2.02 of this Code. Such a company shall be authorized to
166-3 transact all and every kind of insurance specified in the first
166-4 Article of this Chapter. At the time of incorporation all of said
166-5 capital and surplus shall be in cash. The capital and minimum
166-6 surplus required of said company as provided in Article 2.02 of
166-7 this Code shall, following incorporation and the issuance by the
166-8 Board to said company of a certificate authorizing it to do
166-9 business, be invested as provided in Article 2.08 of this Code.
166-10 All other funds of said corporation in excess of its capital and
166-11 minimum surplus shall be invested by such company as provided in
166-12 Article 2.10 and in Article 6.08 of this Code. Upon the granting
166-13 of the charter to said corporation in the mode and manner provided
166-14 in Article 2.01 and Article 2.02 of this Code, and upon the deposit
166-15 of the sum of $50,000.00 of securities of the kind described in
166-16 Article 2.10 of this Code or in cash with the comptroller [State
166-17 Treasurer], the Board shall issue to said company a certificate
166-18 authorizing it to do business.
166-19 No part of the capital or surplus paid in shall be loaned to
166-20 any officer of said company.
166-21 In the event any such company shall be required by the law of
166-22 any other State, country or province as a requirement prior to
166-23 doing an insurance business therein to deposit with the duly
166-24 appointed officer of such other State, country or province, or with
166-25 the comptroller [State Treasurer of this State], any securities or
166-26 cash in excess of the said deposit of $50,000.00 hereinbefore
166-27 mentioned, such company, at its discretion, may deposit with the
167-1 comptroller [State Treasurer] securities of the character
167-2 authorized by law, or cash sufficient to enable it to meet such
167-3 requirements. The comptroller [State Treasurer] is hereby
167-4 authorized and directed to receive such deposit and to hold it
167-5 exclusively for the protection of policyholders of the company.
167-6 Any deposit so made to meet the requirements of any other State,
167-7 country or province shall not be withdrawn by the company except
167-8 upon filing with the Board evidence satisfactory to it that the
167-9 company has withdrawn from business, and has no unsecured
167-10 liabilities outstanding in any such other State, country or
167-11 province by which such additional deposit was required, and upon
167-12 the filing of such evidence the company may withdraw such
167-13 additional deposit at any time.
167-14 SECTION 11.30. Article 8.12, Insurance Code, is amended to
167-15 read as follows:
167-16 Art. 8.12. CHANGE OF SECURITIES. Such companies shall have
167-17 the right at any time to change their securities on deposit with
167-18 the comptroller [State Treasurer] by substituting for those
167-19 withdrawn a like amount in other securities of the character
167-20 provided for in this law.
167-21 SECTION 11.31. Article 8.15, Insurance Code, is amended to
167-22 read as follows:
167-23 Art. 8.15. INTEREST ON DEPOSITS. The comptroller [State
167-24 Treasurer] shall permit companies having securities on deposit with
167-25 him under the provisions of this law to collect the interest as the
167-26 same may become due, and shall deliver to such companies,
167-27 respectively, the coupons or other evidences of interest pertaining
168-1 to such deposits. Upon failure of any company to deposit
168-2 additional security as called for by the Board, or pending any
168-3 proceedings to close up or enjoin it, the comptroller [State
168-4 Treasurer] shall collect the interest as it becomes due and hold
168-5 the same as additional security in his hands belonging to such
168-6 company.
168-7 SECTION 11.32. Articles 8.24(c) and (d), Insurance Code, are
168-8 amended to read as follows:
168-9 (c) Such carrier shall deposit with the comptroller
168-10 [Treasurer of the State of Texas] at least Twenty-five Thousand
168-11 ($25,000.00) Dollars in lawful money of the United States or in
168-12 securities eligible for other casualty insurers licensed in Texas
168-13 and approved by such department, which deposit shall be liable for
168-14 all lawful claims and final judgments against such insurance
168-15 carrier, including taxes due the State of Texas, and policy claims
168-16 and other debts and obligations incurred in the course of
168-17 operations hereunder as provided herein, and such deposit shall be
168-18 kept replenished from time to time with like cash or approved
168-19 securities to maintain a minimum total deposit of Twenty-five
168-20 Thousand ($25,000.00) Dollars. Such deposit or the unencumbered
168-21 balance thereof shall be returned to such carrier with approval of
168-22 such department upon withdrawing from the business authorized
168-23 hereby and upon a showing to such department that all of its
168-24 policies written in Texas hereunder have expired or have been
168-25 cancelled and that all of its claims and obligations upon policies
168-26 written in this State which would constitute lawful charges against
168-27 such deposits have been satisfied.
169-1 (d) The comptroller [State Treasurer], upon the approval of
169-2 the department, shall pay from the deposit required herein any
169-3 unsatisfied final judgment obtained against such carrier in any
169-4 court of competent jurisdiction in Texas based upon such
169-5 substituted service as authorized by Article 1.36 of this code.
169-6 SECTION 11.33. Section 6A, Texas Title Insurance Guaranty
169-7 Act (Article 9.48, Insurance Code), is amended to read as follows:
169-8 Sec. 6A. Deposit of assessments. All assessments and fees
169-9 collected by the association may be deposited into the Texas
169-10 Treasury Safekeeping Trust Company in accordance with procedures
169-11 established by the comptroller [state treasurer]. The funds
169-12 deposited shall be accounted for separately from all other funds by
169-13 the comptroller [state treasurer] to the association.
169-14 SECTION 11.34. Section 9(b), Texas Title Insurance Guaranty
169-15 Act (Article 9.48, Insurance Code), is amended to read as follows:
169-16 (b) Should the association at any time determine that money
169-17 exists in the administrative account or the title account in excess
169-18 of the amount reasonably necessary for efficient future operation
169-19 under the terms of this article, it shall cause the excess money to
169-20 be returned pro rata to the holders of any participation receipts
169-21 on which there is a balance outstanding after deducting any credits
169-22 taken against premium taxes as authorized by Section 15 of this
169-23 article. The amount deducted for those credits shall be deposited
169-24 with the comptroller [state treasurer] for credit to the general
169-25 fund of this state. Any excess money remaining after the
169-26 distribution shall be retained by the association in the guaranty
169-27 fee account and held pursuant to this article.
170-1 SECTION 11.35. Section 1, Article 9.59, Insurance Code, is
170-2 amended to read as follows:
170-3 Sec. 1. Payment of tax. Each title insurance company
170-4 receiving premiums from the business of title insurance shall pay
170-5 to the comptroller [for transmittal to the state treasurer] a tax
170-6 on those premiums as provided in this article.
170-7 SECTION 11.36. Section 3(b), Article 9.59, Insurance Code,
170-8 is amended to read as follows:
170-9 (b) A semiannual prepayment of premium tax must be made on
170-10 March 1 and August 1 by all insurers with net tax liability for the
170-11 previous calendar year of more than $1,000. The tax paid on each
170-12 date must equal one-half of the total premium tax paid for the
170-13 previous calendar year. If no premium tax has been paid during the
170-14 previous calendar year, the semiannual payment shall equal the tax
170-15 that would be owed on the aggregate of the gross premium receipts
170-16 for the two previous calendar quarters at the minimum tax rate
170-17 specified by law. The comptroller may [certify for] refund [to the
170-18 state treasurer] any overpayment of premium taxes that results from
170-19 the semiannual prepayment system established by this subsection.
170-20 SECTION 11.37. Article 14.10, Insurance Code, is amended to
170-21 read as follows:
170-22 Art. 14.10. DEPOSITS. Each association shall place with the
170-23 comptroller [State Treasurer] through the Board of Insurance
170-24 Commissioners a deposit equal to the largest risk assumed on any
170-25 one life or person, which may be in cash or in convertible
170-26 securities subject to approval by the Board. Such deposit shall be
170-27 liable for the payment of all final judgments against the
171-1 association, and subject to garnishment after final judgments
171-2 against the association. When such deposit becomes impounded or
171-3 depleted it shall at once be replenished by the association, and if
171-4 not replenished immediately on demand by the Board, the association
171-5 may be regarded as insolvent and dealt with as hereinafter
171-6 provided.
171-7 When any association shall desire to state in advertisements,
171-8 letters, literature or otherwise, that it has made a deposit with
171-9 the Board as required by law, it must also state in full the
171-10 purpose of the deposit, the conditions under which it is made, and
171-11 the exact amount and character thereof.
171-12 SECTION 11.38. Article 15.06, Insurance Code, is amended to
171-13 read as follows:
171-14 Art. 15.06. KINDS OF INSURANCE. Any company organized under
171-15 the provisions of this Chapter is empowered and authorized to write
171-16 any kinds of insurance, which may lawfully be written in Texas,
171-17 except life insurance. Any such company writing fidelity and
171-18 surety bonds shall keep on deposit with the comptroller [State
171-19 Treasurer] cash or securities as provided in Article 2.10 approved
171-20 by the Board equal in amount to that required of domestic stock
171-21 companies. Any such company shall be possessed of a surplus over
171-22 and above all of its liabilities equal to the minimum capital stock
171-23 and surplus required of a stock insurance company transacting the
171-24 same kinds of business. Mutual insurance companies operating under
171-25 the provisions of this Chapter shall be required to charge the
171-26 rates prescribed by the Board of Insurance Commissioners and be
171-27 subject to the same rates and reserve supervision that domestic
172-1 insurance companies are subject to by law.
172-2 SECTION 11.39. Section 4, Article 17.25, Insurance Code, is
172-3 amended to read as follows:
172-4 Sec. 4. DEPOSIT. Each such company shall place with the
172-5 comptroller [State Treasurer] through the Board of Insurance
172-6 Commissioners a deposit equal to the largest amount assumed on any
172-7 one risk, or upon a showing or re-insurance acceptable to the
172-8 Board, the largest amount retained on any one risk after
172-9 re-insurance, which deposit may be in cash or in convertible
172-10 securities subject to approval of the Board. Such deposit shall be
172-11 liable for the payment of all judgments against the company, and
172-12 subject to a garnishment after final judgment against the company.
172-13 When such deposit becomes impounded or depleted it shall at once be
172-14 replenished immediately on demand by the Board, or the company may
172-15 be regarded as insolvent.
172-16 When any company shall desire to state in advertisements,
172-17 letters, literature or otherwise, that it has made a deposit with
172-18 the Board as required by law, it must also state in full the
172-19 purpose of the deposit, the conditions under which it is made, and
172-20 the exact amount and character thereof.
172-21 SECTION 11.40. Article 19.06, Insurance Code, is amended to
172-22 read as follows:
172-23 Art. 19.06. FINANCIAL REQUIREMENTS. There shall be
172-24 maintained at all times a surplus over and above all liabilities
172-25 equal to the minimum capital stock and surplus required of a stock
172-26 insurance company transacting the same kinds of business.
172-27 There shall be maintained at all times such reserves as are
173-1 required, or which, by the laws of this State or by the lawful
173-2 rules and regulations of the Board of Insurance Commissioners,
173-3 hereafter may be required, to be maintained by stock insurance
173-4 companies transacting the same kind or kinds of insurance business.
173-5 The required assets of such exchanges shall be maintained as
173-6 to minimum surplus requirements as provided in Article 2.08 of this
173-7 Code, and as to other funds, as provided in Article 2.10 of this
173-8 Code.
173-9 If fidelity and surety bond insurance is exchanged in this
173-10 State by any reciprocal exchange, there shall be kept on deposit
173-11 with the comptroller [State Treasurer of Texas], money, bonds, or
173-12 other securities in an amount not less than $50,000.00. Such
173-13 securities as described in Article 2.10 of this Code shall be
173-14 approved by the Board of Insurance Commissioners, and this amount
173-15 shall be kept intact at all times. Any foreign exchange writing
173-16 fidelity and surety bonds in this State shall file with the Board
173-17 of Insurance Commissioners evidence, satisfactory to the Board of
173-18 Insurance Commissioners, that it has on deposit with the
173-19 comptroller [State Treasurer] or other proper officials of its home
173-20 state, or in escrow under his supervision and control in some
173-21 reliable bank or trust company, $100,000.00 or more, in money,
173-22 bonds or other securities as described in Article 2.10 of this Code
173-23 for the protection of its policyholders; provided further, that if
173-24 said bonds and securities herein referred to are not acceptable to
173-25 and approved by the Board of Insurance Commissioners of Texas, said
173-26 Board shall have the right and authority to deny the attorney in
173-27 fact a Certificate of Authority.
174-1 SECTION 11.41. Article 20.03, Insurance Code, is amended to
174-2 read as follows:
174-3 Art. 20.03. DEPOSIT. Each such corporation shall place with
174-4 the comptroller [State Treasurer] through the Board of Insurance
174-5 Commissioners a deposit equal to One Hundred ($100.00) Dollars for
174-6 each one thousand (1,000) of its members and fractional part of
174-7 such number, provided that the maximum deposit shall be Two
174-8 Thousand ($2,000.00) Dollars. The deposit shall be liable for the
174-9 payment of all judgments against the corporation and subject to
174-10 garnishment after final judgment against the corporation. When
174-11 such deposit becomes impounded or impaired, it shall at once be
174-12 replenished by the corporation; and if not replenished immediately
174-13 on demand by the Board, the corporation may be regarded as
174-14 insolvent and dealt with accordingly.
174-15 SECTION 11.42. Sections 20A.13(a), (b), (g), and (h), Texas
174-16 Health Maintenance Organization Act (Article 20A.13, Vernon's Texas
174-17 Insurance Code), are amended to read as follows:
174-18 (a) Unless otherwise provided by this section, each health
174-19 maintenance organization shall deposit with the comptroller [State
174-20 Treasurer] cash or securities, or any combination of these or other
174-21 guarantees that are acceptable to the State Board of Insurance, in
174-22 an amount as set forth in this section.
174-23 (b) For a health maintenance organization which has not
174-24 received a certificate of authority from the State Board of
174-25 Insurance prior to September 1, 1987:
174-26 (1) the amount of the initial deposit or other
174-27 guarantee shall be $100,000 for an organization offering basic
175-1 health care services and $50,000 for an organization offering a
175-2 single health care service plan;
175-3 (2) on or before March 15 of the year following the
175-4 year in which the health maintenance organization receives a
175-5 certificate of authority, it shall deposit with the comptroller
175-6 [State Treasurer] an amount equal to the difference between the
175-7 initial deposit and 100 percent of its estimated uncovered health
175-8 care expenses for the first 12 months of operation;
175-9 (3) on or before March 15 of each subsequent year, it
175-10 shall deposit the difference between its total uncovered health
175-11 care expenses based on its annual statement from the previous year
175-12 and the total amount previously deposited and not withdrawn from
175-13 the State Treasury; and
175-14 (4) in any year in which the amount determined in
175-15 accordance with Subdivision (3) of this subsection is zero or less
175-16 than zero, the State Board of Insurance may not require the health
175-17 maintenance organization to make any additional deposit under this
175-18 subsection.
175-19 (g) If one or more of the requirements is waived, any amount
175-20 previously deposited shall remain on deposit until released in
175-21 whole or in part by the comptroller [State Treasurer] upon order of
175-22 the State Board of Insurance pursuant to Subsection (f) of this
175-23 section.
175-24 (h) A health maintenance organization that has made a
175-25 deposit with the comptroller [State Treasurer] may, at its option,
175-26 withdraw the deposit or any part thereof, first having deposited
175-27 with the comptroller [State Treasurer], in lieu thereof, a deposit
176-1 of cash or securities of equal amount and value to that withdrawn.
176-2 Any securities shall be approved by the State Board of Insurance
176-3 before being substituted.
176-4 SECTION 11.43. Article 20A.18(f), Texas Health Maintenance
176-5 Organization Act (Article 20A.18, Vernon's Texas Insurance Code),
176-6 is amended to read as follows:
176-7 (f) Instead of a bond, the management contractor may deposit
176-8 with the comptroller [State Treasurer] cash or securities
176-9 acceptable to the State Board of Insurance. Such a deposit must be
176-10 maintained in the amount and subject to the same conditions as
176-11 required for a bond under this section.
176-12 SECTION 11.44. Article 20A.30(c), Texas Health Maintenance
176-13 Organization Act (Vernon's Texas Insurance Code), is amended to
176-14 read as follows:
176-15 (c) Instead of a bond, a health maintenance organization may
176-16 deposit cash with the comptroller [State Treasurer]. Such a
176-17 deposit must be maintained in the amount and subject to the same
176-18 conditions required for a bond under this section.
176-19 SECTION 11.45. Section 2(d), Article 21.07, Insurance Code,
176-20 is amended to read as follows:
176-21 (d) The Board shall issue a license to a corporation if the
176-22 Board finds:
176-23 (1) That the corporation is a Texas corporation
176-24 organized or existing under the Texas Business Corporation Act
176-25 having its principal place of business in the State of Texas and
176-26 having as one of its purposes the authority to act as an agent
176-27 covered by this Article;
177-1 (2) That every officer, director, and shareholder of
177-2 the corporation is individually licensed under the provisions of
177-3 this Article, or that every officer and director of the corporation
177-4 is individually licensed under this Article, that the corporation
177-5 is a wholly owned subsidiary of a parent corporation that is
177-6 licensed under this Article, and that every shareholder of the
177-7 parent corporation is individually licensed under this Article; and
177-8 (3) That such corporation will have the ability to pay
177-9 any sums up to $25,000 which it might become legally obligated to
177-10 pay on account of any claim made against it by any customer and
177-11 caused by any negligent act, error, or omission of the corporation
177-12 or any person for whose acts the corporation is legally liable in
177-13 the conduct of its business under this Article. The term
177-14 "customer" means any person, firm, or corporation to whom such
177-15 corporation sells or attempts to sell a policy of insurance, or
177-16 from whom such corporation accepts an application for insurance.
177-17 Such ability shall be proven in one of the following ways:
177-18 (A) an errors and omissions policy insuring such
177-19 corporation against errors and omissions in at least the sum of
177-20 $100,000 with no more than a $10,000 deductible feature issued by
177-21 an insurance company licensed to do business in the State of Texas
177-22 or, if a policy cannot be obtained from a company licensed to do
177-23 business in Texas, a policy issued by a company not licensed to do
177-24 business in Texas on filing an affidavit with the State Board of
177-25 Insurance stating the inability to obtain coverage and receiving
177-26 the Board's approval;
177-27 (B) a bond executed by such corporation as
178-1 principal and a surety company authorized to do business in this
178-2 State, as surety, in the principal sum of $25,000, payable to the
178-3 State Board of Insurance for the use and benefit of customers of
178-4 such corporation, conditioned that such corporation shall pay any
178-5 final judgment recovered against it by any customer; or
178-6 (C) a deposit of cash or securities of the class
178-7 authorized by Articles 2.08 and 2.10, Insurance Code, as amended,
178-8 having a fair market value of $25,000 with the comptroller [State
178-9 Treasurer]. The comptroller [State Treasurer] is directed to
178-10 accept and receive such deposit and hold it exclusively for the
178-11 protection of any customer of such corporation recovering a final
178-12 judgment against such corporation. Such deposit may be withdrawn
178-13 only upon filing with the Board evidence satisfactory to it that
178-14 the corporation has withdrawn from business and has no unsecured
178-15 liabilities outstanding, or that such corporation has provided for
178-16 the protection of its customers by furnishing an errors and
178-17 omissions policy or a bond as provided. Securities so deposited
178-18 may be exchanged from time to time for other qualified securities.
178-19 A binding commitment to issue such a policy or bond, or the
178-20 tender of such securities, shall be sufficient in connection with
178-21 any application for license.
178-22 Nothing contained herein shall be construed to permit any
178-23 unlicensed employee or agent of any corporation to perform any act
178-24 of an agent under this Article without obtaining a license.
178-25 If at any time, any corporation holding an agent's license
178-26 does not maintain the qualifications necessary to obtain a license,
178-27 the license of such corporation to act as an agent shall be
179-1 cancelled or denied in accordance with the provisions of Sections
179-2 10 and 11 of this Article; provided, however, that should any
179-3 person who is not a licensed agent under this Article acquire
179-4 shares in such a corporation by devise or descent, that person
179-5 shall have a period of 90 days from date of acquisition within
179-6 which to obtain a license or to dispose of the shares to a person
179-7 licensed under this Article.
179-8 Should such an unlicensed person acquire shares in a
179-9 corporation and not dispose of them within a period of 90 days to a
179-10 licensed agent, then they must be purchased by the corporation for
179-11 their book value, that is, the value of said shares of stock as
179-12 reflected by the regular books and records of said corporation, as
179-13 of the date of the acquisition of said shares by said unlicensed
179-14 person. Should the corporation fail or refuse to so purchase such
179-15 shares, its license shall be cancelled.
179-16 Any such corporation shall have the power to redeem the
179-17 shares of any shareholder, or the shares of a deceased shareholder,
179-18 upon such terms as may be agreed upon by the board of directors and
179-19 such shareholder or such shareholder's personal representative, or
179-20 at a price and upon such terms as may be provided in the articles
179-21 of incorporation, the bylaws, or an existing contract entered into
179-22 between the shareholders of the corporation.
179-23 Each corporation licensed as an agent under this Article
179-24 shall file, under oath, a list of the names and addresses of all of
179-25 its officers, directors, and shareholders with its application for
179-26 renewal license.
179-27 Each corporation shall notify the State Board of Insurance
180-1 upon any change in its officers, directors, or shareholders not
180-2 later than the 30th day after the date on which the change becomes
180-3 effective.
180-4 Except as provided by Subdivision (2) of this subsection, a
180-5 corporation may not own any interest in another corporation
180-6 licensed under this Article, and each owner of an interest in a
180-7 corporation licensed under this Article shall be a natural person
180-8 who holds a valid license issued under this Article.
180-9 SECTION 11.46. Section 4(e), Chapter 213, Acts of the 54th
180-10 Legislature, Regular Session, 1955 (Article 21.07-1, Vernon's Texas
180-11 Insurance Code), is amended to read as follows:
180-12 (e) The Commissioner shall issue a license to a corporation
180-13 if the Commissioner finds:
180-14 (1) That the corporation is a Texas corporation
180-15 organized or existing under the Texas Business Corporation Act or
180-16 the Texas Professional Corporation Act having its principal place
180-17 of business in the State of Texas and having as one of its purposes
180-18 the authority to act as agent under this Act;
180-19 (2) That every officer, director, and shareholder of
180-20 the corporation is individually licensed as an agent under the
180-21 provisions of this Act, or that every officer and director of the
180-22 corporation is individually licensed under this Act, that the
180-23 corporation is a wholly owned subsidiary of a parent corporation
180-24 that is licensed under this Act, and that every shareholder of the
180-25 parent corporation is individually licensed under this Act; and
180-26 (3) That such corporation will have the ability to pay
180-27 any sums up to $25,000 which it might become legally obligated to
181-1 pay on account of any claim made against it by any customer and
181-2 caused by any negligent act, error, or omission of the corporation
181-3 or any person for whose acts the corporation is legally liable in
181-4 the conduct of its business as under this Act. The term "customer"
181-5 as used herein shall mean any person, firm, or corporation to whom
181-6 such corporation sells or attempts to sell a policy of insurance or
181-7 from whom such corporation accepts an application for insurance.
181-8 Such ability shall be proven in one of the following ways:
181-9 (A) An errors and omissions policy insuring such
181-10 corporation against errors and omissions in at least the sum of
181-11 $100,000 with no more than a $10,000 deductible feature issued by
181-12 an insurance company licensed to do business in the State of Texas
181-13 or, if a policy cannot be obtained from a company licensed to do
181-14 business in Texas, a policy issued by a company not licensed to do
181-15 business in Texas on filing an affidavit with the State Board of
181-16 Insurance stating the inability to obtain coverage and receiving
181-17 the Board's approval; or
181-18 (B) A bond executed by such corporation as
181-19 principal and a surety company authorized to do business in this
181-20 State, as surety, in the principal sum of $25,000, payable to the
181-21 State Board of Insurance for the use and benefit of customers of
181-22 such corporation, conditioned that such corporation shall pay any
181-23 final judgment recovered against it by any customer; or
181-24 (C) A deposit of cash or securities of the class
181-25 authorized by Articles 2.08 and 2.10 of the Insurance Code, having
181-26 a fair market value of $25,000 with the comptroller [State
181-27 Treasurer]. The comptroller [State Treasurer] is hereby authorized
182-1 and directed to accept and receive such deposit and hold it
182-2 exclusively for the protection of any customer of such corporation
182-3 recovering a final judgment against such corporation. Such deposit
182-4 may be withdrawn only upon filing with the Commissioner
182-5 satisfactory evidence that the corporation has withdrawn from
182-6 business and has no unsecured liabilities outstanding, or that such
182-7 corporation has provided for the protection of its customers by
182-8 furnishing an errors and omissions policy or a bond as provided.
182-9 Securities so deposited may be exchanged from time to time for
182-10 other qualified securities.
182-11 A binding commitment to issue such a policy or bond, or the
182-12 tender of such securities, shall be sufficient in connection with
182-13 any application for license.
182-14 Nothing contained herein shall be construed to permit any
182-15 unlicensed employee or agent of any corporation to perform any act
182-16 of an agent under this Act without obtaining a license.
182-17 If at any time, any corporation holding a license under this
182-18 Act does not maintain the qualifications necessary to obtain a
182-19 license, the license of such corporation to act as an agent shall
182-20 be cancelled or denied in accordance with the provisions of
182-21 Sections 12 and 13 of this Act; provided, however, that should any
182-22 person who is not an agent licensed under this Act acquire shares
182-23 in such a corporation by devise or descent, they shall have a
182-24 period of 90 days from date of acquisition within which to obtain a
182-25 license as an agent or to dispose of the shares to an agent
182-26 licensed under this Act.
182-27 Should such an unlicensed person acquire shares in such a
183-1 corporation and not dispose of them within said period of 90 days
183-2 to a licensed agent, then they must be purchased by the corporation
183-3 for their book value, that is, the value of said shares of stock as
183-4 reflected by the regular books and records of said corporation as
183-5 of the date of the acquisition of said shares by said unlicensed
183-6 person. Should the corporation fail or refuse to so purchase such
183-7 shares, its license shall be cancelled.
183-8 Any such corporation shall have the power to redeem the
183-9 shares of any shareholder, or the shares of a deceased shareholder,
183-10 upon such terms as may be agreed upon by the board of directors and
183-11 such shareholder or such shareholder's personal representative, or
183-12 at such price and upon such terms as may be provided in the
183-13 articles of incorporation, the bylaws, or an existing contract
183-14 entered into between the shareholders of the corporation.
183-15 Each corporation licensed as an agent under this Act shall
183-16 file, under oath, a list of the names and addresses of all of its
183-17 officers, directors, and shareholders with its application for
183-18 renewal license.
183-19 Each corporation licensed as an agent under this Act shall
183-20 notify the State Board of Insurance upon any change in its
183-21 officers, directors, or shareholders not later than the 30th day
183-22 after the date on which the change became effective.
183-23 Except as provided by Subdivision (2) of this subsection, a
183-24 corporation may not own any interest in another corporation
183-25 licensed under this Act, and each owner of an interest in a
183-26 corporation licensed under this Act shall be a natural person who
183-27 holds a valid license issued under this Act.
184-1 No association or any legal entity of any nature, other than
184-2 an individual person, general partnership, or corporation, may be
184-3 licensed as a life insurance agent.
184-4 SECTION 11.47. Section 4C, Managing General Agents'
184-5 Licensing Act (Article 21.07-3, Vernon's Texas Insurance Code), is
184-6 amended to read as follows:
184-7 Sec. 4C. Security for liability. (a) Each person, firm, or
184-8 corporation licensed as a managing general agent under this Act
184-9 must have the ability to pay an amount up to $100,000 for which the
184-10 managing general agent may become legally obligated to pay on
184-11 account of any claim against the managing general agent by a
184-12 policyholder and caused by a negligent act, error, or omission of
184-13 the managing general agent or any person for whose acts the
184-14 managing general agent is legally liable in the conduct of its
184-15 business as a managing general agent. This ability to pay shall be
184-16 proved in one of the following ways:
184-17 (1) an errors and omissions policy insuring the
184-18 managing general agent against errors and omissions in at least the
184-19 sum of $100,000, with a deductible that is not greater than 10
184-20 percent of the face amount of the policy, issued by a company
184-21 licensed to do business in this state or issued by a surplus lines
184-22 insurer under Article 1.14-2 of this code, that is not affiliated
184-23 with or an affiliate of the managing general agent;
184-24 (2) a bond executed by the managing general agent as
184-25 principal and by a surety company authorized to do business in this
184-26 state, as surety, or surplus lines insurer eligible to do business
184-27 in this state in the principal sum of $100,000 payable to the board
185-1 for the use and benefit of policyholders of the managing general
185-2 agent, conditioned that the managing general agent will pay any
185-3 final judgment recovered against it by a policyholder; or
185-4 (3) a deposit with the comptroller [state treasurer]
185-5 of cash or securities of the class authorized by Articles 2.08 and
185-6 2.10 of this code that have a fair market value of $100,000.
185-7 (b) The comptroller [state treasurer] shall accept the
185-8 deposit under Subsection (a)(3) of this section and hold it
185-9 exclusively for the protection of any policyholder of the managing
185-10 general agent who recovers a final nonappealable judgment against
185-11 the managing general agent. The deposit may be withdrawn only on
185-12 filing with the board evidence satisfactory to the board that the
185-13 managing general agent has withdrawn from business and has no
185-14 unsecured liabilities outstanding, or that the managing general
185-15 agent has provided for the protection of its policyholders by
185-16 furnishing an errors and omissions policy or a bond as provided by
185-17 Subsection (a)(1) or (2) of this section. Securities that are
185-18 deposited under Subsection (a)(3) of this section may be exchanged
185-19 for other qualified securities. A binding commitment to issue a
185-20 policy or bond or the tender of the securities is sufficient in
185-21 connection with an application for license.
185-22 SECTION 11.48. Section 3(c), Article 21.14, Insurance Code,
185-23 is amended to read as follows:
185-24 (c) The Department shall issue a license to a corporation if
185-25 the Department finds:
185-26 (1) That the corporation is a Texas corporation
185-27 organized or existing under the Texas Business Corporation Act or
186-1 the Texas Professional Corporation Act having its principal place
186-2 of business in the State of Texas and having as one of its purposes
186-3 the authority to act as a local recording agent; and
186-4 (2) That every officer, director and shareholder of
186-5 the corporation is individually licensed as a local recording agent
186-6 under the provisions of this Insurance Code, except as may be
186-7 otherwise permitted by this Section or Section 3a of this article,
186-8 or that every officer and director of the corporation is
186-9 individually licensed as a local recording agent under this
186-10 Insurance Code, that the corporation is a wholly owned subsidiary
186-11 of a parent corporation that is licensed as a local recording agent
186-12 under this Insurance Code, and that every shareholder of the parent
186-13 corporation is individually licensed as a local recording agent
186-14 under this Insurance Code, and except as specifically provided by
186-15 this article, that no shareholder of the corporation is a corporate
186-16 entity; and
186-17 (3) That such corporation will have the ability to pay
186-18 any sums up to $25,000 which it might become legally obligated to
186-19 pay on account of any claim made against it by any customer and
186-20 caused by any negligent act, error or omission of the corporation
186-21 or any person for whose acts the corporation is legally liable in
186-22 the conduct of its business as a local recording agent. The term
186-23 "customer" as used herein shall mean any person, firm or
186-24 corporation to whom such corporation sells or attempts to sell a
186-25 policy of insurance, or from whom such corporation accepts an
186-26 application for insurance. Such ability shall be proven in one of
186-27 the following ways:
187-1 (A) An errors and omissions policy insuring such
187-2 corporation against errors and omissions, in at least the sum of
187-3 $100,000 with no more than a $10,000 deductible feature or the sum
187-4 of at least $300,000 with no more than a $25,000 deductible
187-5 feature, issued by an insurance company licensed to do business in
187-6 the State of Texas or, if a policy cannot be obtained from a
187-7 company licensed to do business in Texas, a policy issued by a
187-8 company not licensed to do business in Texas, on filing an
187-9 affidavit with the Texas Department of Insurance stating the
187-10 inability to obtain coverage and receiving the Department's
187-11 approval; or
187-12 (B) A bond executed by such corporation as
187-13 principal and a surety company authorized to do business in this
187-14 state, as surety, in the principal sum of $25,000, payable to the
187-15 Texas Department of Insurance for the use and benefit of customers
187-16 of such corporation, conditioned that such corporation shall pay
187-17 any final judgment recovered against it by any customer; or
187-18 (C) A deposit of cash or securities of the class
187-19 authorized by Articles 2.08 and 2.10 of this Code, having a fair
187-20 market value of $25,000 with the comptroller [State Treasurer].
187-21 The comptroller [State Treasurer] is hereby authorized and directed
187-22 to accept and receive such deposit and hold it exclusively for the
187-23 protection of any customer of such corporation recovering a final
187-24 judgment against such corporation. Such deposit may be withdrawn
187-25 only upon filing with the Department evidence satisfactory to it
187-26 that the corporation has withdrawn from business, and has no
187-27 unsecured liabilities outstanding, or that such corporation has
188-1 provided for the protection of its customers by furnishing an
188-2 errors and omissions policy or a bond as hereinbefore provided.
188-3 Securities so deposited may be exchanged from time to time for
188-4 other qualified securities.
188-5 A binding commitment to issue such a policy or bond, or the
188-6 tender of such securities, shall be sufficient in connection with
188-7 any application for license.
188-8 Nothing contained herein shall be construed to permit any
188-9 unlicensed employee or agent of any corporation to perform any act
188-10 of a local recording agent without obtaining a local recording
188-11 agent's license. The Department shall not require a corporation to
188-12 take the examination provided in Section 6 of this Article 21.14.
188-13 If at any [an] time, any corporation holding a local
188-14 recording agent's license does not maintain the qualifications
188-15 necessary to obtain a license, the license of such corporation to
188-16 act as a local recording agent shall be cancelled or denied in
188-17 accordance with the provisions of Sections 16, 17 and 18 of this
188-18 Article 21.14; provided, however, that should any person who is not
188-19 a licensed local recording agent acquire shares in such a
188-20 corporation by devise or descent, they shall have a period of 90
188-21 days from date of acquisition within which to obtain a license as a
188-22 local recording agent or to dispose of the shares to a licensed
188-23 local recording agent except as may be permitted by Section 3a of
188-24 this article.
188-25 Should such an unlicensed person, except as may be permitted
188-26 by Section 3a of this article, acquire shares in such a corporation
188-27 and not dispose of them within said period of 90 days to a licensed
189-1 local recording agent, then they must be purchased by the
189-2 corporation for their book value, that is, the value of said shares
189-3 of stock as reflected by the regular books and records of said
189-4 corporation, as of the date of the acquisition of said shares by
189-5 said unlicensed person. Should the corporation fail or refuse to
189-6 so purchase such shares, its license shall be cancelled.
189-7 Any such corporation shall have the power to redeem the
189-8 shares of any shareholder, or the shares of a deceased shareholder,
189-9 upon such terms as may be agreed upon by the Board of Directors and
189-10 such shareholder or his personal representative, or at such price
189-11 and upon such terms as may be provided in the Articles of
189-12 Incorporation, the Bylaws, or an existing contract entered into
189-13 between the shareholders of the corporation.
189-14 Each corporation licensed as a local recording agent shall
189-15 file, under oath, a list of the names and addresses of all of its
189-16 officers, directors and shareholders with its application for
189-17 renewal license.
189-18 Each corporation licensed as a local recording agent shall
189-19 notify the Texas Department of Insurance upon any change in its
189-20 officers, directors or shareholders not later than the 30th day
189-21 after the date on which the change became effective.
189-22 The term "firm" as it applies to local recording agents in
189-23 Sections 2, 12 and 16 of this Article 21.14 shall be construed to
189-24 include corporations.
189-25 SECTION 11.49. Section 2(h), Article 21.28, Insurance Code,
189-26 is amended to read as follows:
189-27 (h) Depositories. Except as provided by this subsection,
190-1 all money collected by the receiver shall be forthwith deposited
190-2 into the Texas Treasury Safekeeping Trust Company in accordance
190-3 with procedures established by the comptroller [state treasurer].
190-4 The receiver may deposit the money in any bank, banks, or savings
190-5 and loan association or associations in this State insured by a
190-6 federal agency that provides for deposit insurance if the receiver,
190-7 in the exercise of sound financial judgment, determines that it
190-8 would be advantageous to do so. The funds collected or realized
190-9 from the assets of each insurer for which the receiver has been
190-10 appointed shall be accounted for by the receiver separately from
190-11 all other funds. Whenever any account in a bank or savings and
190-12 loan association exceeds the maximum amount insured by the
190-13 appropriate federal agency, the receiver is hereby authorized and
190-14 directed to make such contracts and require such security as it may
190-15 deem proper for the safeguarding of such deposit without approval
190-16 of the court.
190-17 SECTION 11.50. Sections 8(g) and (h), Article 21.28,
190-18 Insurance Code, are amended to read as follows:
190-19 (g) Unclaimed Funds. Unclaimed dividends on approved
190-20 claims, unclaimed returned assessments, and all other unclaimed
190-21 funds subject to distribution to claimants, policyholders or other
190-22 persons, remaining in the receiver's hands after payment of the
190-23 final dividend shall be delivered to the Board at the time the
190-24 receivership is closed, or in the event a final dividend is paid
190-25 less than ninety (90) days prior to the closing of the
190-26 receivership, the receiver may continue the bank account or
190-27 accounts of such receivership from which such funds might be paid,
191-1 for a period of time not to exceed ninety (90) days from the date
191-2 of the closing of said receivership, before the same are so
191-3 delivered to the Board. Such funds shall be deposited by the Board
191-4 in trust in a special account to be maintained with the comptroller
191-5 [State Treasurer].
191-6 (h) Recovery by Owner. On receipt of satisfactory written
191-7 and verified proof of ownership within two (2) years from the date
191-8 such funds are so deposited with the comptroller [State Treasurer],
191-9 the Board shall certify such facts to the Comptroller [of Public
191-10 Accounts], who shall issue proper warrant therefor in favor of the
191-11 parties respectively entitled thereto, drawn on the State Treasury
191-12 [Treasurer].
191-13 SECTION 11.51. Section 8A, Article 21.28, Insurance Code, is
191-14 amended to read as follows:
191-15 Sec. 8A. Settlement of claims; abandoned funds; re-opening
191-16 of receiverships. Any and all assets other than cash remaining in
191-17 the receiver's hands after payment of the final dividend may be
191-18 conveyed, transferred or assigned to the commissioner to be handled
191-19 as a trust. The commissioner shall have authority to convey,
191-20 transfer, and assign any assets, including causes of action,
191-21 judgments, and claims, and to settle or release causes of action,
191-22 judgments, claims, and liens on such terms and for such amounts as
191-23 he deems for the best interest of such trust, whether such assets
191-24 have heretofore or may hereafter come into his hands. From
191-25 proceeds derived from any such assets the commissioner or the
191-26 special deputy receiver shall defray the costs incident to the
191-27 sale, settlement, release or other transaction whereby such
192-1 proceeds are obtained, and deliver the remainder to the Board to be
192-2 deposited by it in trust in a special account to be maintained with
192-3 the comptroller [State Treasurer] to be handled, disposed of and
192-4 used as follows:
192-5 An order directing disposition of such funds may be made by a
192-6 court of competent jurisdiction of Travis County, Texas, upon
192-7 application of the commissioner, after notice and hearing. Notice
192-8 shall be posted on the courthouse door of said court for at least
192-9 twenty (20) days before a hearing is had on the commissioner's
192-10 application, and notice shall be published at least once, and at
192-11 least ten (10) days prior to the date set for such hearing, in a
192-12 newspaper of general circulation in Travis County. Such notice
192-13 shall state the amount of the funds and the receivership from which
192-14 they were derived. It shall be addressed to all persons having an
192-15 interest, as claimant or otherwise, in the assets of the particular
192-16 receivership involved in the application, and shall state generally
192-17 that a hearing shall be had on the date specified for the purpose
192-18 of determining the disposition to be made of such funds, including
192-19 a declaration that such funds are abandoned and the property of the
192-20 State Board of Insurance.
192-21 If the court finds that funds derived from any receivership
192-22 are sufficient to justify re-opening of the receivership and
192-23 payment of a dividend, then such may be ordered, but otherwise, if
192-24 such funds are insufficient for that purpose, the court may declare
192-25 such funds abandoned and a certified copy of such judgment will be
192-26 authority for the comptroller [Comptroller of Public Accounts] to
192-27 issue a Warrant therefor to the State Board of Insurance. The
193-1 Board shall forthwith deposit such funds in accordance with the
193-2 provisions of Section 2(h) of this Article, except that funds
193-3 derived from one insurer need not be kept separate from funds
193-4 derived through any other insurer.
193-5 Such funds may be used as provided in Section 8(j) of this
193-6 Article.
193-7 SECTION 11.52. Section 8(j), Texas Property and Casualty
193-8 Insurance Guaranty Act (Article 21.28-C, Insurance Code), is
193-9 amended to read as follows:
193-10 (j) The board of directors may deposit all money collected
193-11 by the association into the Texas Treasury Safekeeping Trust
193-12 Company in accordance with procedures established by the
193-13 comptroller [state treasurer]. The funds deposited shall be
193-14 accounted for separately from all other funds by the comptroller
193-15 [state treasurer] to the association.
193-16 SECTION 11.53. Section 20(c), Texas Property and Casualty
193-17 Insurance Guaranty Act (Article 21.28-C, Insurance Code), is
193-18 amended to read as follows:
193-19 (c) If the association at any time determines that there
193-20 exist moneys in the account for any line of business in excess of
193-21 those reasonably necessary for efficient future operation under the
193-22 terms of this Act, it shall cause those excess moneys to be
193-23 returned pro rata to the holders of any participation receipts on
193-24 which there is a balance outstanding after deducting any credits
193-25 taken against premium taxes as authorized in Section 21 of this
193-26 Act, which receipts were issued for an assessment on the same line
193-27 of business as that for which the excess moneys are found to exist.
194-1 If after such a distribution the association finds that an excess
194-2 amount still exists in the fund, or if there are no such
194-3 participation receipts on which there is an outstanding balance, it
194-4 shall cause the excess amount to be deposited with the comptroller
194-5 [state treasurer] to the credit of the general revenue fund.
194-6 SECTION 11.54. Section 9(n), Life, Accident, Health, and
194-7 Hospital Service Insurance Guaranty Association Act (Article
194-8 21.28-D, Insurance Code), is amended to read as follows:
194-9 (n) All assessments collected by the association may be
194-10 deposited into the Texas Treasury Safekeeping Trust Company in
194-11 accordance with procedures established by the comptroller [state
194-12 treasurer]. The funds deposited shall be accounted for separately
194-13 from all other funds by the comptroller [state treasurer] to the
194-14 association.
194-15 SECTION 11.55. Section 13(c), Life, Accident, Health, and
194-16 Hospital Service Insurance Guaranty Association Act (Article
194-17 21.28-D, Insurance Code), is amended to read as follows:
194-18 (c) Any sums acquired by refund, pursuant to Section 9(j) of
194-19 this Act, from the association which have theretofore been written
194-20 off by contributing insurers and offset against premium taxes as
194-21 provided in Subsection (b) of this section, and are not then needed
194-22 for purposes of this Act, shall be paid by the association to the
194-23 commissioner and by him deposited with the comptroller [state
194-24 treasurer] for credit to the general fund of this state.
194-25 SECTION 11.56. Sections 7(a) and (b), Article 21.43,
194-26 Insurance Code, are amended to read as follows:
194-27 (a) No alien insurance corporation shall transact business
195-1 in this State, unless it shall first deposit and keep deposited
195-2 with the comptroller [Treasurer of this State], for the benefit of
195-3 the policyholders of such company, citizens, or residents of the
195-4 United States, bonds or securities of the United States or the
195-5 State of Texas in an amount at least equal to the minimum capital
195-6 required to be maintained by a domestic stock insurer licensed to
195-7 transact the same kind of insurance, or at least equal to one-half
195-8 the minimum free surplus required to be maintained by a domestic
195-9 mutual insurer licensed to transact the same kind of insurance.
195-10 (b) Upon approval of the commissioner in accordance with
195-11 Section 10 of this article, a licensed alien insurer may be
195-12 permitted to deposit assets with a trustee or trustees for the
195-13 security of its policyholders in the United States in lieu of
195-14 making the deposit with the comptroller [Treasurer of this State]
195-15 so long as such assets are composed of securities or bonds of the
195-16 United States or this State and are maintained in accordance with
195-17 provisions of Section 10 of this article.
195-18 SECTION 11.57. Section 8(i), Texas Catastrophe Property
195-19 Insurance Pool Act (Article 21.49, Insurance Code), is amended to
195-20 read as follows:
195-21 (i) The association may enter into a written agreement with
195-22 the Texas Department of Insurance under which the association
195-23 members relinquish their net equity pursuant to the written
195-24 agreement on an annual basis by making payments to a fund known as
195-25 the catastrophe reserve trust fund to be held by the Texas
195-26 Department of Insurance outside the state treasury to protect
195-27 policyholders of the association and to reduce the potential for
196-1 payments by members of the association giving rise to tax credits
196-2 in the event of loss or losses.
196-3 The catastrophe reserve trust fund shall be kept and
196-4 maintained by the Texas Department of Insurance pursuant to the
196-5 written agreement between the association, the Texas Department of
196-6 Insurance, [the state treasurer,] and the comptroller. Legal title
196-7 to money and investments in the fund is in the Texas Department of
196-8 Insurance unless or until paid out as provided by the written
196-9 agreement. The comptroller [state treasurer], as custodian, shall
196-10 administer the funds strictly and solely as provided by the
196-11 agreement and the state may not take any action with respect to the
196-12 fund other than as specified by this act and the agreement.
196-13 On the effective date of an agreement, all funds held on
196-14 behalf of or paid to the association under one or more reinsurance
196-15 plans or programs may be immediately paid to the catastrophe
196-16 reserve trust fund. Thereafter, at the end of either each calendar
196-17 year or policy year, the association may pay the net equity of a
196-18 member, including all premium and other revenue of the association
196-19 in excess of incurred losses and operating expenses to the
196-20 catastrophe reserve trust fund or a reinsurance program approved by
196-21 the Commissioner of Insurance.
196-22 The written agreement shall establish the procedure relating
196-23 to the disbursement of funds from the catastrophe reserve trust
196-24 fund to policyholders in the event of an occurrence or series of
196-25 occurrences within the defined catastrophe area that results in
196-26 insured losses and operating expenses of the association greater
196-27 than $100 million.
197-1 ARTICLE 12. CHANGES TO LABOR CODE
197-2 SECTION 12.01. Section 203.002, Labor Code, is amended to
197-3 read as follows:
197-4 Sec. 203.002. DUTIES OF [TREASURER AND] COMPTROLLER.
197-5 (a) The comptroller [treasurer] is treasurer and custodian of the
197-6 compensation fund and the special administration fund and shall
197-7 administer the funds in accordance with the directions of the
197-8 commission.
197-9 (b) The comptroller shall issue warrants on the compensation
197-10 fund in accordance with rules adopted by the commission.
197-11 (c) The comptroller shall issue warrants on the special
197-12 administration fund in accordance with the directions of the
197-13 commission.
197-14 SECTION 12.02. Section 203.003, Labor Code, is amended to
197-15 read as follows:
197-16 Sec. 203.003. COMPTROLLER'S [TREASURER'S] BOND LIABILITY.
197-17 The comptroller [treasurer] is liable on the comptroller's
197-18 [treasurer's] official bond for the faithful performance of the
197-19 comptroller's [treasurer's] duties under this subtitle in
197-20 connection with the compensation fund, the administration fund, and
197-21 the special administration fund. This liability is in addition to
197-22 liability on any separate bond that the comptroller [treasurer] may
197-23 give.
197-24 SECTION 12.03. Section 203.021(d), Labor Code, is amended to
197-25 read as follows:
197-26 (d) The comptroller [treasurer] shall maintain in the
197-27 compensation fund:
198-1 (1) a clearing account;
198-2 (2) a federal trust fund account; and
198-3 (3) a benefit account.
198-4 SECTION 12.04. Section 203.022(a), Labor Code, is amended to
198-5 read as follows:
198-6 (a) On receipt of any money payable to the compensation
198-7 fund, the commission shall forward the money to the comptroller
198-8 [treasurer], who shall immediately deposit it in the clearing
198-9 account.
198-10 SECTION 12.05. Section 203.023(c), Labor Code, is amended to
198-11 read as follows:
198-12 (c) On receipt of money requisitioned from the federal trust
198-13 fund, the comptroller [treasurer] shall deposit it in the benefit
198-14 account.
198-15 SECTION 12.06. Section 203.024(a), Labor Code, is amended to
198-16 read as follows:
198-17 (a) Except as otherwise provided by this subchapter, the
198-18 comptroller [treasurer], under the direction of the commission, may
198-19 deposit money credited to the clearing and benefit accounts in a
198-20 bank or public depository in which general funds of this state may
198-21 be deposited.
198-22 SECTION 12.07. Sections 203.032(b)-(d), Labor Code, are
198-23 amended to read as follows:
198-24 (b) If the federal trust fund ceases to exist or the
198-25 secretary of the treasury ceases to maintain a separate book
198-26 account for this state in the federal trust fund, all money,
198-27 property, or securities in the federal trust fund that belong to
199-1 the compensation fund shall be transferred to the comptroller
199-2 [treasurer]. The comptroller [treasurer] shall hold, invest,
199-3 transfer, deposit, and release the money, property, or securities
199-4 in a manner approved by the commission in accordance with this
199-5 subtitle.
199-6 (c) Money held by the comptroller [treasurer] under
199-7 Subsection (b) shall be invested in readily marketable bonds or
199-8 other interest-bearing obligations of the United States of America.
199-9 The money shall be invested in such a manner that the assets of the
199-10 compensation fund are readily convertible at all times into cash as
199-11 needed for the payment of benefits.
199-12 (d) The comptroller [treasurer] may dispose of securities or
199-13 other property belonging to the compensation fund only under the
199-14 direction of the commission.
199-15 SECTION 12.08. Section 203.102(a), Labor Code, is amended to
199-16 read as follows:
199-17 (a) The advance interest trust fund is a trust fund in the
199-18 custody of the comptroller [treasurer].
199-19 SECTION 12.09. Section 203.103, Labor Code, is amended to
199-20 read as follows:
199-21 Sec. 203.103. TRANSFER TO SPECIAL ADMINISTRATION FUND. The
199-22 [treasurer and the] comptroller shall transfer all income earned
199-23 after April 1, 1983, from investment of the advance interest trust
199-24 fund and other funds appropriated for that purpose to the special
199-25 administration fund for the administration of Chapters 51, 61, and
199-26 62.
199-27 SECTION 12.10. Section 204.122, Labor Code, is amended to
200-1 read as follows:
200-2 Sec. 204.122. HOLDING FUND. (a) The holding fund is a
200-3 special trust fund in the custody of the comptroller [state
200-4 treasurer] separate and apart from all public money or funds of
200-5 this state.
200-6 (b) The comptroller [state treasurer] shall administer the
200-7 holding fund in accordance with the directions of the commission.
200-8 Interest accruing on amounts in the holding fund shall be deposited
200-9 quarterly to the credit of the compensation fund.
200-10 SECTION 12.11. Section 210.012, Labor Code, is amended to
200-11 read as follows:
200-12 Sec. 210.012. DEADLINE FOR PAYMENT OF WARRANT. The
200-13 comptroller [treasurer] may not pay a warrant issued for benefits
200-14 unless the warrant is presented for payment before the first
200-15 anniversary of the date on which the warrant was issued.
200-16 SECTION 12.12. Section 407.065(c), Labor Code, is amended to
200-17 read as follows:
200-18 (c) The certified self-insurer shall deposit the security
200-19 with the comptroller [state treasurer] on behalf of the director.
200-20 The comptroller [state treasurer] may accept securities for deposit
200-21 or withdrawal only on the written order of the director.
200-22 SECTION 12.13. Section 417.001(d), Labor Code, is amended to
200-23 read as follows:
200-24 (d) The commission shall remit money recovered under this
200-25 section to the comptroller [state treasurer] for deposit to the
200-26 credit of the subsequent injury fund.
200-27 SECTION 12.14. Section 203.001(4), Labor Code, is repealed.
201-1 ARTICLE 13. CHANGES TO LOCAL GOVERNMENT CODE
201-2 SECTION 13.01. Section 117.002, Local Government Code, is
201-3 amended to read as follows:
201-4 Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER
201-5 [STATE TREASURER]. Any funds deposited under this chapter that are
201-6 presumed abandoned under Chapter 72, 73, or 75, Property Code,
201-7 shall be reported and delivered by the county or district clerk to
201-8 the comptroller [state treasurer] without further action by any
201-9 court. The dormancy period for funds deposited under this chapter
201-10 begins on the later of:
201-11 (1) the date of entry of final judgment or order of
201-12 dismissal in the action in which the funds were deposited;
201-13 (2) the 18th birthday of the minor for whom the funds
201-14 were deposited; or
201-15 (3) a reasonable date established by rule by the
201-16 comptroller [state treasurer] to promote the public interest in
201-17 disposing of unclaimed funds.
201-18 SECTION 13.02. Section 154.008(d), Local Government Code, is
201-19 amended to read as follows:
201-20 (d) The comptroller shall mail a warrant for the payment to
201-21 the county treasurer. The warrant must be:
201-22 (1) drawn on the state treasury;
201-23 (2) payable to the county treasurer; and
201-24 (3) registered by the comptroller [and state
201-25 treasurer].
201-26 ARTICLE 14. CHANGES TO NATURAL RESOURCES CODE
201-27 SECTION 14.01. Section 31.059(c), Natural Resources Code, is
202-1 amended to read as follows:
202-2 (c) The receiving clerk shall report to the comptroller
202-3 [State Treasurer] and pay in kind on the last day of each month
202-4 funds in his possession which are due to the state and shall
202-5 receive a receipt in his own name.
202-6 SECTION 14.02. Sections 51.001(5)-(10), Natural Resources
202-7 Code, are amended to read as follows:
202-8 (5) ["State Treasurer" means the Treasurer of the
202-9 State of Texas.]
202-10 [(6)] "Board of regents" means the board of regents of
202-11 The University of Texas System.
202-12 (6) [(7)] "Public school land" means all land of the
202-13 state that is dedicated to the permanent school fund.
202-14 (7) [(8)] "Asylum land" means all land of the state
202-15 that is dedicated to the various asylum funds.
202-16 (8) [(9)] "Surveyed land" means all or part of any
202-17 tract of land surveyed either on the ground or by protraction and
202-18 dedicated to the public school fund which is unsold and for which
202-19 field notes are on file in the land office or that may be
202-20 delineated on the maps of that office as such.
202-21 (9) [(10)] "Unsurveyed land" means any land that is
202-22 not included in surveys on file in the land office or surveys
202-23 delineated on maps of that office.
202-24 SECTION 14.03. Section 51.020(a), Natural Resources Code, is
202-25 amended to read as follows:
202-26 (a) On presentation of proper proof, money paid in good
202-27 faith to a fund in the State Treasury for public land or by a
203-1 lessee of public land or minerals to which the fund is not entitled
203-2 may be offset or credited by the commissioner against other sums
203-3 owing or shall be refunded by the comptroller in the following
203-4 instances:
203-5 (1) if an error is made in good faith and the refund,
203-6 stating to whom payment is to be made, is supported by the official
203-7 signature of the commissioner or the attorney general;
203-8 (2) if the payment is made according to law but title
203-9 cannot issue or possession cannot pass because of a conflict in
203-10 boundaries, an erroneous sale, an erroneous lease, or other cause;
203-11 (3) if there is a sale of leased land;
203-12 (4) if lease money is paid on a previous forfeited
203-13 sale and the sale has been reinstated and the interest paid;
203-14 (5) if erroneous timber sales or leases have been
203-15 made;
203-16 (6) if overpayments have been made in final payments
203-17 to the comptroller [State Treasurer] because of decreased acreage
203-18 or other cause;
203-19 (7) if reduction has been made in acreage of timber
203-20 sold or leased; or
203-21 (8) if payments are made in good faith by claimants of
203-22 land where the applicants have no right to purchase the land as
203-23 revealed by investigation of title.
203-24 SECTION 14.04. Sections 51.058(a) and (b), Natural Resources
203-25 Code, are amended to read as follows:
203-26 (a) An applicant shall submit with his application the
203-27 required first payment in the form of money or remittance
204-1 collectible on demand in Austin and convertible at par into money
204-2 on order of the comptroller [State Treasurer] without liability.
204-3 (b) If a remittance is made payable to the commissioner, the
204-4 payment is not invalid for that reason, but the commissioner shall
204-5 endorse it to the comptroller [State Treasurer] without incurring
204-6 liability and the remittance shall be treated as if it were payable
204-7 to the comptroller [State Treasurer].
204-8 SECTION 14.05. Section 51.060, Natural Resources Code, is
204-9 amended to read as follows:
204-10 Sec. 51.060. RECORDATION OF FIRST PAYMENTS. (a) After each
204-11 application envelope is opened and the first payment for the land
204-12 is in the land office, the commissioner shall have the payment
204-13 listed on a daily list which shall be made in triplicate, showing
204-14 the name and address of each applicant and the purpose for which
204-15 each payment is made and shall transmit to the comptroller [State
204-16 Treasurer] all of the payments together with two of the lists.
204-17 (b) On receiving the payments and the lists, the comptroller
204-18 [treasurer] shall compare the payments with the lists, and if the
204-19 comptroller [treasurer] finds that the payments and the lists are
204-20 correct, he shall receipt one of the lists and return it to the
204-21 commissioner and shall retain the other list.
204-22 [(c) On receiving the list from the treasurer, the
204-23 commissioner shall deliver the third list to the comptroller.]
204-24 SECTION 14.06. Section 51.061(a), Natural Resources Code, is
204-25 amended to read as follows:
204-26 (a) The comptroller [State Treasurer] shall immediately
204-27 collect all collectible remittances and shall report to the
205-1 commissioner [and comptroller] all remittances not collectible in
205-2 Austin.
205-3 SECTION 14.07. Section 51.062, Natural Resources Code, is
205-4 amended to read as follows:
205-5 Sec. 51.062. DISPOSITION OF FIRST PAYMENTS. (a) The
205-6 comptroller [State Treasurer] shall retain all first payments he
205-7 has collected until the commissioner notifies him of the final
205-8 disposition of the applications to purchase land.
205-9 (b) After the comptroller [treasurer] is notified, he shall
205-10 return to each applicant whose application is rejected the amount
205-11 of his first payment.
205-12 (c) [A duplicate of the notice to the treasurer of accepted
205-13 and rejected applications and the amount of the first payment shall
205-14 be transmitted to the comptroller.]
205-15 [(d)] On the last working day of each month, the comptroller
205-16 [treasurer] shall deposit in the State Treasury to the credit of
205-17 the proper fund the amount collected by him on accepted
205-18 applications during that month.
205-19 SECTION 14.08. Sections 51.068(b), (c), and (d), Natural
205-20 Resources Code, are amended to read as follows:
205-21 (b) The comptroller [state treasurer] shall deposit 80
205-22 percent of all these payments received each month to the probable
205-23 fund to which they belong as indicated by the commissioner and
205-24 shall hold the remaining 20 percent in the suspense account until
205-25 definite notice is received from the commissioner as to the proper
205-26 fund. After definite notice is received, the comptroller [State
205-27 Treasurer] shall credit the full amount to the proper fund.
206-1 (c) The commissioner shall give definite notice to the
206-2 [State Treasurer and] comptroller immediately after he issues
206-3 receipts to the persons making the payments.
206-4 (d) The commissioner[, State Treasurer,] and comptroller
206-5 shall keep an account with each fund according to advices given by
206-6 them and shall retain the advices as permanent records.
206-7 SECTION 14.09. Section 51.069, Natural Resources Code, is
206-8 amended to read as follows:
206-9 Sec. 51.069. DISPOSITION OF PAYMENTS ON PUBLIC SCHOOL LAND.
206-10 (a) Payments on public school land received by the commissioner
206-11 shall be transmitted to the comptroller [State Treasurer] to be
206-12 credited to the proper fund.
206-13 (b) The comptroller [State Treasurer] shall credit payments
206-14 received on the purchase price of public school land to the
206-15 permanent school fund and payments received as interest on the
206-16 purchase of public school land to the available school fund.
206-17 SECTION 14.10. Section 51.177(a), Natural Resources Code, is
206-18 amended to read as follows:
206-19 (a) The commissioner shall deposit all initial and
206-20 supplemental deposits received under this subchapter to the credit
206-21 of a separate trust account in the treasury. The comptroller
206-22 [treasurer], on the commissioner's order, shall make disbursements
206-23 from that account for purposes authorized by this subchapter.
206-24 SECTION 14.11. Section 52.020, Natural Resources Code, is
206-25 amended to read as follows:
206-26 Sec. 52.020. RETURN OF PAYMENTS ON REJECTED APPLICATIONS.
206-27 The comptroller [State Treasurer] or commissioner shall return all
207-1 amounts paid on rejected applications.
207-2 SECTION 14.12. Section 52.025, Natural Resources Code, is
207-3 amended to read as follows:
207-4 Sec. 52.025. DISPOSITION OF LEASE PAYMENTS. The comptroller
207-5 [State Treasurer] shall credit the permanent school fund with
207-6 amounts received from unsurveyed school land and with two-thirds of
207-7 the amount received from other areas and shall credit the General
207-8 Revenue Fund with the remaining one-third of the payments for the
207-9 other areas.
207-10 SECTION 14.13. Section 52.137(b), Natural Resources Code, is
207-11 amended to read as follows:
207-12 (b) The commissioner, upon receipt of such payment made
207-13 under protest as authorized by this section, shall send to the
207-14 comptroller [state treasurer] the payment and a written statement
207-15 that the payment was made under protest. Immediately upon receipt,
207-16 the comptroller [and treasurer] shall:
207-17 (1) place the payment in state depositories bearing
207-18 interest in the same manner that other funds are required to be
207-19 placed in state depositories at interest;
207-20 (2) allocate the interest earned on these funds;
207-21 (3) credit the amount allocated to an account
207-22 established for this purpose until the status of the protest is
207-23 finally determined; and
207-24 (4) upon final determination that some or all of the
207-25 protested funds belong to the state, deposit the principal and the
207-26 allocated interest to the proper funds as provided by law. All
207-27 protest payments finally determined to belong to the permanent
208-1 school fund shall be deposited to that fund upon such
208-2 determination, and interest earned and allocated on those funds
208-3 shall be deposited to the available school fund.
208-4 SECTION 14.14. Section 52.138, Natural Resources Code, is
208-5 amended to read as follows:
208-6 Sec. 52.138. REFUND. If a suit authorized by Section 52.137
208-7 of this code results in a final determination that all or part of
208-8 the payment under protest was not due or was unlawfully demanded by
208-9 the commissioner and belongs to the lessee, the comptroller [and
208-10 treasurer] shall refund the proper amount, with the pro rata
208-11 interest earned on that amount, by issuance of a refund warrant
208-12 drawn against the account established for such purpose. The refund
208-13 warrant shall be returned to the commissioner and the commissioner
208-14 shall deliver it to the person entitled to receive it.
208-15 SECTION 14.15. Section 91.403(c), Natural Resources Code, is
208-16 amended to read as follows:
208-17 (c) The payor's obligation to pay interest and the payee's
208-18 right to receive interest under Subsection (a) of this section
208-19 terminate on delivery of the proceeds and accumulated interest to
208-20 the comptroller [State Treasurer] as provided by Title 6, Property
208-21 Code.
208-22 SECTION 14.16. Sections 161.016(a) and (b), Natural
208-23 Resources Code, are amended to read as follows:
208-24 (a) The board may designate the comptroller [State
208-25 Treasurer] as the fiscal agent for payment of principal of and
208-26 interest on the bonds.
208-27 (b) The comptroller [State Treasurer] shall act as fiscal
209-1 agent without compensation.
209-2 SECTION 14.17. Section 161.173(a), Natural Resources Code,
209-3 is amended to read as follows:
209-4 (a) Money in the fund that is not immediately committed to
209-5 paying principal of and interest on the bonds, to the purchase of
209-6 land, or to the payment of expenses as provided in this chapter may
209-7 be invested in:
209-8 (1) direct security repurchase agreements and reverse
209-9 security repurchase agreements made with state or national banks
209-10 domiciled in this state or with primary dealers as approved by the
209-11 Federal Reserve System;
209-12 (2) direct obligations of or obligations the principal
209-13 and interest of which are guaranteed by the United States;
209-14 (3) direct obligations of or obligations guaranteed by
209-15 the Federal Home Loan Banks, the Federal National Mortgage
209-16 Association, the Federal Farm Credit System, the Student Loan
209-17 Marketing Association, the Federal Home Loan Mortgage Corporation,
209-18 or a successor organization to one of those organizations;
209-19 (4) bankers' acceptances that:
209-20 (A) are eligible for purchase by members of the
209-21 Federal Reserve System;
209-22 (B) do not exceed 270 days to maturity; and
209-23 (C) are issued by a bank that has received the
209-24 highest short-term credit rating by a nationally recognized
209-25 investment rating firm;
209-26 (5) commercial paper that:
209-27 (A) does not exceed 270 days to maturity; and
210-1 (B) has received the highest short-term credit
210-2 rating by a nationally recognized investment rating firm;
210-3 (6) contracts written by the board in which the board
210-4 grants the purchaser the right to purchase securities in the
210-5 board's marketable securities portfolio at a specified price over a
210-6 specified period and for which the board is paid a fee and
210-7 specifically prohibits naked-option or uncovered option trading;
210-8 (7) obligations of a state or an agency, county, city,
210-9 or other political subdivision of a state and mutual funds composed
210-10 of these obligations;
210-11 (8) an investment instrument, obligation, or other
210-12 evidence of indebtedness the payment of which is directly or
210-13 indirectly guaranteed by the full faith and credit of the United
210-14 States;
210-15 (9) an investment, account, depository receipt, or
210-16 deposit that is fully:
210-17 (A) insured by the Federal Deposit Insurance
210-18 Corporation, the Federal Savings and Loan Insurance Corporation, or
210-19 a successor organization to one of those organizations; or
210-20 (B) secured by securities described by
210-21 Subdivision (2), (3), or (8) of this subsection;
210-22 (10) a collateralized mortgage obligation fully
210-23 secured by securities or mortgages issued or guaranteed by the
210-24 Government National Mortgage Association (GNMA) or any entity
210-25 described by Subdivision (3) of this subsection;
210-26 (11) a security or evidence of indebtedness issued by
210-27 the Farm Credit System Financial Assistance Corporation, the
211-1 Private Export Funding Corporation, or the Export-Import Bank; and
211-2 (12) any other investment authorized for investment of
211-3 state funds by the comptroller [treasurer] under Section 404.024,
211-4 Government Code.
211-5 SECTION 14.18. Section 161.176, Natural Resources Code, is
211-6 amended to read as follows:
211-7 Sec. 161.176. USE OF FUND TO PAY BOND EXPENSES. The board
211-8 may use money in the fund attributable to bonds issued and sold to
211-9 pay:
211-10 (1) legal fees and fees for financial advice necessary
211-11 in the opinion of the board to the sale of bonds;
211-12 (2) the expense of publishing notice of sale of an
211-13 installment of bonds;
211-14 (3) the expense of printing the bonds;
211-15 (4) the expenses of issuance of the bonds, including
211-16 the actual costs of travel, lodging, and meals of board members,
211-17 officers or employees of the board, the comptroller, [the State
211-18 Treasurer,] and the attorney general that are necessary in the
211-19 opinion of the board to effectuate the issuance, rating, and
211-20 delivery of the bonds;
211-21 (5) the cost of manually signing the bonds;
211-22 (6) remuneration to any agent employed by the board to
211-23 pay the principal of and interest on the bonds;
211-24 (7) any amounts required to be paid to maintain the
211-25 federal tax exemption of interest on the bonds; and
211-26 (8) all other costs, fees, and expenses relating to
211-27 the issuance of the bonds.
212-1 SECTION 14.19. Section 161.177(b), Natural Resources Code,
212-2 is amended to read as follows:
212-3 (b) Bonds purchased by the board under Subsection (a) of
212-4 this section shall be mutilated, burned, or otherwise destroyed by
212-5 the comptroller [State Treasurer], who shall certify this fact to
212-6 the board under the seal of his office.
212-7 SECTION 14.20. Section 161.362(c), Natural Resources Code,
212-8 is amended to read as follows:
212-9 (c) If the board desires, it may require each veteran
212-10 applicant to make additional semiannual payments to be held in
212-11 trust to pay premiums that may become due and unpaid on the
212-12 contracted insurance covering the improvements. The payments shall
212-13 be deposited in a trust fund with the comptroller [State Treasurer]
212-14 and shall be used to make the premium payments. The unused balance
212-15 of the veteran's deposit shall be held by the board until the time
212-16 that maintenance of the account is unnecessary and then shall be
212-17 refunded to the veteran.
212-18 SECTION 14.21. Section 162.049, Natural Resources Code, is
212-19 amended to read as follows:
212-20 Sec. 162.049. PAYMENT OF PRINCIPAL AND INTEREST. The
212-21 comptroller [State Treasurer] shall pay the principal on bonds as
212-22 they mature and the interest as it becomes payable. Payments shall
212-23 be made at the place of payment designated on the bonds.
212-24 SECTION 14.22. Section 162.051(b), Natural Resources Code,
212-25 is amended to read as follows:
212-26 (b) Bonds purchased by the board under Subsection (a) of
212-27 this section shall be mutilated, burned, or otherwise destroyed by
213-1 the comptroller [state treasurer], who shall certify this fact to
213-2 the board under the seal of office.
213-3 SECTION 14.23. Sections 164.011(c) and (f), Natural
213-4 Resources Code, are amended to read as follows:
213-5 (c) Funds established by the board under this chapter are
213-6 not to be part of the State Treasury but, at the direction of the
213-7 board, may be kept and held in escrow and in trust by the
213-8 comptroller [state treasurer] on behalf of the board and the owners
213-9 of the bonds and used only as provided by this chapter.
213-10 (f) The comptroller [state treasurer], as custodian of the
213-11 fund, shall administer the fund solely and strictly as provided by
213-12 this chapter and the resolution authorizing the issuance of the
213-13 bonds, and the state may not take any other action relating to the
213-14 fund except those specified in this chapter and the resolution
213-15 authorizing the issuance of the bonds.
213-16 ARTICLE 15. CHANGES TO TEXAS PROBATE CODE
213-17 SECTION 15.01. Section 427, Texas Probate Code, is amended
213-18 to read as follows:
213-19 Sec. 427. WHEN ESTATES TO BE PAID INTO STATE TREASURY. If
213-20 any person entitled to a portion of an estate, except a resident
213-21 minor without a guardian, shall not demand his portion from the
213-22 executor or administrator within six months after an order of court
213-23 approving the report of commissioners of partition, or within six
213-24 months after the settlement of the final account of an executor or
213-25 administrator, as the case may be, the court by written order shall
213-26 require the executor or administrator to pay so much of said
213-27 portion as is in money to the comptroller [State Treasurer]; and
214-1 such portion as is in other property he shall order the executor or
214-2 administrator to sell on such terms as the court thinks best, and,
214-3 when the proceeds of such sale are collected, the court shall order
214-4 the same to be paid to the comptroller [State Treasurer], in all
214-5 such cases allowing the executor or administrator reasonable
214-6 compensation for his services. A suit to recover proceeds of the
214-7 sale is governed by Section 433 of this Code.
214-8 SECTION 15.02. Section 428, Texas Probate Code, is amended
214-9 to read as follows:
214-10 Sec. 428. INDISPENSABILITY OF COMPTROLLER [STATE TREASURER]
214-11 AS PARTY. The comptroller [State Treasurer] is an indispensable
214-12 party to any judicial or administrative proceeding concerning the
214-13 disposition and handling of any portion of an estate that is or may
214-14 be payable to the comptroller [State Treasurer] under Section 427
214-15 of this Code. Whenever an order shall be made by the court for an
214-16 executor or administrator to pay any funds to the comptroller
214-17 [State Treasurer] under Section 427 of this Code, the clerk of the
214-18 court in which such order is made shall serve on the comptroller
214-19 [State Treasurer] by personal service of citation a certified copy
214-20 of such order within five days after the same has been made.
214-21 SECTION 15.03. Section 429, Texas Probate Code, is amended
214-22 to read as follows:
214-23 Sec. 429. PENALTY FOR NEGLECT TO NOTIFY COMPTROLLER [STATE
214-24 TREASURER]. Any clerk who shall neglect to have served on the
214-25 comptroller [State Treasurer] by personal citation a certified copy
214-26 of any such order within the time prescribed by Section 428 of this
214-27 Code shall be liable in a penalty of One Hundred Dollars, to be
215-1 recovered in an action in the name of the state, after personal
215-2 service of citation, on the information of any citizen, one-half of
215-3 which penalty shall be paid to the informer and the other one-half
215-4 to the state.
215-5 SECTION 15.04. Section 430, Texas Probate Code, is amended
215-6 to read as follows:
215-7 Sec. 430. RECEIPT OF COMPTROLLER [STATE TREASURER].
215-8 Whenever an executor or administrator pays the comptroller [State
215-9 Treasurer] any funds of the estate he represents, under the
215-10 preceding provisions of this Code, he shall take from the
215-11 comptroller [State Treasurer] a receipt for such payment, with
215-12 official seal attached, and shall file the same with the clerk of
215-13 the court ordering such payment; and such receipt shall be recorded
215-14 in the minutes of the court.
215-15 SECTION 15.05. Section 431, Texas Probate Code, is amended
215-16 to read as follows:
215-17 Sec. 431. PENALTY FOR FAILURE TO MAKE PAYMENTS TO
215-18 COMPTROLLER [STATE TREASURER]. When an executor or administrator
215-19 fails to pay to the comptroller [State Treasurer] any funds of an
215-20 estate which he has been ordered by the court so to pay, within 30
215-21 days after such order has been made, such executor or administrator
215-22 shall, after personal service of citation charging such failure and
215-23 after proof thereof, be liable to pay out of his own estate to the
215-24 comptroller [State Treasurer] damages thereon at the rate of five
215-25 per cent per month for each month, or fraction thereof, that he
215-26 fails to make such payment after 30 days from such order, which
215-27 damages may be recovered in any court of competent jurisdiction.
216-1 SECTION 15.06. Section 432, Texas Probate Code, is amended
216-2 to read as follows:
216-3 Sec. 432. COMPTROLLER [STATE TREASURER] MAY ENFORCE PAYMENT
216-4 AND COLLECT DAMAGES. The comptroller [State Treasurer] shall have
216-5 the right in the name of the state to apply to the court in which
216-6 the order for payment was made to enforce the payment of funds
216-7 which the executor or administrator has failed to pay to him
216-8 pursuant to order of court, together with the payment of any
216-9 damages that shall have accrued under the provisions of the
216-10 preceding Section of this Code, and the court shall enforce such
216-11 payment in like manner as other orders of payment are required to
216-12 be enforced. The comptroller [State Treasurer] shall also have the
216-13 right to institute suit in the name of the state against such
216-14 executor or administrator, and the sureties on his bond, for the
216-15 recovery of the funds so ordered to be paid and such damages as
216-16 have accrued. The county attorney or criminal district attorney of
216-17 the county, the district attorney of the district, or the attorney
216-18 general, at the election of the comptroller [State Treasurer] and
216-19 with the approval of the attorney general, shall represent the
216-20 comptroller [State Treasurer] in all such proceedings, and shall
216-21 also represent the interests of the state in all other matters
216-22 arising under any provisions of this Code.
216-23 SECTION 15.07. Section 433, Texas Probate Code, is amended
216-24 to read as follows:
216-25 Sec. 433. SUIT FOR THE RECOVERY OF FUNDS PAID TO THE
216-26 COMPTROLLER [STATE TREASURER]. (a) Mode of Recovery. When funds
216-27 of an estate have been paid to the comptroller [State Treasurer],
217-1 any heir, devisee, or legatee of the estate, or their assigns, or
217-2 any of them, may recover the portion of such funds to which he,
217-3 she, or they are entitled. The person claiming such funds shall
217-4 institute suit on or before the fourth anniversary of the date of
217-5 the order requiring payment to the comptroller [State Treasurer],
217-6 by petition filed in the district court of Travis County, against
217-7 the comptroller [State Treasurer], setting forth the plaintiff's
217-8 right to such funds, and the amount claimed by him.
217-9 (b) Citation. Upon the filing of such petition, the clerk
217-10 shall issue a citation for the comptroller [State Treasurer], to be
217-11 served by personal service, to appear and represent the interest of
217-12 the state in such suit. As the comptroller [State Treasurer]
217-13 elects and with the approval of the attorney general, the attorney
217-14 general, the county attorney or criminal district attorney for the
217-15 county, or the district attorney for the district shall represent
217-16 the comptroller [State Treasurer].
217-17 (c) Procedure. The proceedings in such suit shall be
217-18 governed by the rules for other civil suits; and, should the
217-19 plaintiff establish his right to the funds claimed, he shall have a
217-20 judgment therefor, which shall specify the amount to which he is
217-21 entitled; and a certified copy of such judgment shall be sufficient
217-22 authority for the comptroller [State Treasurer] to pay the same.
217-23 (d) Costs. The costs of any such suit shall in all cases be
217-24 adjudged against the plaintiff, and he may be required to secure
217-25 the costs.
217-26 ARTICLE 16. CHANGES TO PROPERTY CODE
217-27 SECTION 16.01. Section 71.101(a), Property Code, is amended
218-1 to read as follows:
218-2 (a) If any person, including the attorney general, the
218-3 comptroller [State Treasurer], or a district attorney, criminal
218-4 district attorney, county attorney, county clerk, district clerk,
218-5 or attorney ad litem is informed or has reason to believe that real
218-6 or personal property is subject to escheat under this chapter, the
218-7 person may file a sworn petition requesting the escheat of the
218-8 property and requesting a writ of possession for the property.
218-9 SECTION 16.02. Section 71.103(c), Property Code, is amended
218-10 to read as follows:
218-11 (c) The comptroller [State Treasurer] is an indispensable
218-12 party to any judicial or administrative proceeding concerning the
218-13 disposition and handling of property that is the subject of an
218-14 escheat proceeding and must be made a party to the proceeding by
218-15 personal service of citation.
218-16 SECTION 16.03. Section 71.301(c), Property Code, is amended
218-17 to read as follows:
218-18 (c) A copy of the petition shall be served on the
218-19 comptroller [State Treasurer], who shall represent the interests of
218-20 the state. As the comptroller [State Treasurer] elects and with
218-21 the approval of the attorney general, the attorney general, the
218-22 county attorney or criminal district attorney for the county, or
218-23 the district attorney for the district shall represent the
218-24 comptroller [State Treasurer].
218-25 SECTION 16.04. Section 71.304(a), Property Code, is amended
218-26 to read as follows:
218-27 (a) A suit brought for the collection of personal property
219-1 delivered to the comptroller [State Treasurer] under this chapter
219-2 must be brought in the name of this state.
219-3 SECTION 16.05. Section 73.101(a), Property Code, is amended
219-4 to read as follows:
219-5 (a) An account or safe deposit box is presumed abandoned if:
219-6 (1) the account or safe deposit box has been inactive
219-7 under Section 73.003(b) for at least five years;
219-8 (2) the location of the depositor of the account or
219-9 owner of the safe deposit box is unknown to the depository; and
219-10 (3) the amount of the account or the contents of the
219-11 box have not been delivered to the comptroller [State Treasurer] in
219-12 accordance with Chapter 74.
219-13 SECTION 16.06. Sections 74.101(a) and (c), Property Code,
219-14 are amended to read as follows:
219-15 (a) Each holder who on June 30 holds property that is
219-16 presumed abandoned under Chapter 72, Chapter 73, or Chapter 75, or
219-17 under Section 5A, Chapter 512, Acts of the 54th Legislature, 1955
219-18 (Article 548b, Vernon's Texas Civil Statutes), shall file a report
219-19 of that property on or before the following November 1. Each
219-20 report shall be filed with the comptroller [State Treasurer] as
219-21 provided by this section and on forms prescribed by the comptroller
219-22 [State Treasurer].
219-23 (c) The property report must include:
219-24 (1) the name, if known, and the last known address, if
219-25 any, of each person who, from the records of the holder of the
219-26 property, appears to be the owner of the property, or the name and
219-27 address, if known, of any person who is entitled to the property;
220-1 (2) a brief description of the property, the
220-2 identification number, if any, and, if appropriate, a balance of
220-3 each account, except as provided by Subsection (e);
220-4 (3) the date that the property became payable,
220-5 demandable, or returnable;
220-6 (4) the date of the last transaction with the owner
220-7 concerning the property;
220-8 (5) any deduction made by the holder of the property
220-9 for a service, maintenance, or other charge, unless fully restored
220-10 and included in the amount reported; and
220-11 (6) other information that the comptroller [State
220-12 Treasurer] by rule requires to be disclosed as necessary for the
220-13 administration of this chapter.
220-14 SECTION 16.07. Section 74.103(c), Property Code, is amended
220-15 to read as follows:
220-16 (c) The comptroller [State Treasurer] may by rule provide
220-17 for a shorter period for keeping a record required by this section.
220-18 SECTION 16.08. Section 74.104, Property Code, is amended to
220-19 read as follows:
220-20 Sec. 74.104. CONFIDENTIALITY OF PROPERTY REPORT.
220-21 (a) Except as provided by Sections 74.201, 74.203, and 74.307, a
220-22 property report filed with the comptroller [State Treasurer] under
220-23 Section 74.101 is confidential until the second anniversary of the
220-24 date the report is filed.
220-25 (b) Notwithstanding any other provision of law, the social
220-26 security number of an owner that is reported to the comptroller
220-27 [State Treasurer] is confidential.
221-1 SECTION 16.09. Section 74.201, Property Code, is amended to
221-2 read as follows:
221-3 Sec. 74.201. PUBLISHED NOTICE. (a) Except as provided by
221-4 Subsection (b) and Section 74.202, the comptroller [State
221-5 Treasurer] shall publish a notice in a newspaper of general
221-6 circulation in the calendar year immediately following the year in
221-7 which the report required by Section 74.101 is filed. The notice
221-8 must be published:
221-9 (1) in the county in which the last known address of a
221-10 person required to be named in the notice is located; or
221-11 (2) if the address of a person listed is not set out
221-12 in the report or if it is outside the state, in the county in which
221-13 the holder of the abandoned property has its principal place of
221-14 business, registered office, or agent for service in this state.
221-15 (b) The comptroller [State Treasurer] may use a method of
221-16 publishing notice that is different from that prescribed by
221-17 Subsection (a)(1) or (2) if the comptroller [State Treasurer]
221-18 determines that the different method would be as likely as the
221-19 prescribed method to give actual notice to the person required to
221-20 be named in the notice.
221-21 (c) The published notice must state that the reported
221-22 property is presumed abandoned and subject to this chapter and must
221-23 contain:
221-24 (1) the name and city of last known address, if any,
221-25 of each person listed in the property report filed under Section
221-26 74.101, listed alphabetically by name;
221-27 (2) a statement that, by addressing an inquiry to the
222-1 comptroller [State Treasurer], any person possessing a legal or
222-2 beneficial interest in the reported property may obtain information
222-3 concerning the amount and description of the property; and
222-4 (3) a statement that the owner may present proof of
222-5 the claim to the comptroller [State Treasurer] and establish the
222-6 owner's right to receive the property.
222-7 (d) The comptroller [State Treasurer] may offer for sale
222-8 space for suitable advertisements in a notice published under this
222-9 section. Proceeds from the sale of the advertising space shall be
222-10 used to defray the cost of publishing the notices, with the
222-11 remaining amount, if any, to be deposited to the credit of the
222-12 unclaimed money fund.
222-13 SECTION 16.10. Section 74.202, Property Code, is amended to
222-14 read as follows:
222-15 Sec. 74.202. NOTICE FOR ITEM WITH VALUE NOT EXCEEDING $50.
222-16 In the notice required by Section 74.201, the comptroller [State
222-17 Treasurer] is not required to publish information regarding an item
222-18 having a value that is less than $50 unless the comptroller [State
222-19 Treasurer] determines that publication of that information is in
222-20 the public interest.
222-21 SECTION 16.11. Section 74.203, Property Code, is amended to
222-22 read as follows:
222-23 Sec. 74.203. NOTICE TO OWNER. (a) During the calendar year
222-24 immediately following the year in which the report required by
222-25 Section 74.101 is filed, the comptroller [State Treasurer] may mail
222-26 a notice to each person who has a Texas address and appears to be
222-27 entitled to the reported property valued at $50 or more.
223-1 (b) The notice must contain:
223-2 (1) a statement that property is being held by the
223-3 comptroller [State Treasurer] to which the addressee appears to be
223-4 entitled; and
223-5 (2) a statement that the owner may present proof of
223-6 the claim to the comptroller [State Treasurer] and establish the
223-7 owner's right to receive the property.
223-8 SECTION 16.12. Section 74.205, Property Code, is amended to
223-9 read as follows:
223-10 Sec. 74.205. CHARGE FOR NOTICE. The comptroller [State
223-11 Treasurer] may charge the following against the property delivered
223-12 under this chapter:
223-13 (1) expenses incurred for the publication of notice
223-14 required by Section 74.201; and
223-15 (2) the amount paid in postage for the notice to the
223-16 owner required by Section 74.203.
223-17 SECTION 16.13. Section 74.301, Property Code, is amended to
223-18 read as follows:
223-19 Sec. 74.301. DELIVERY OF PROPERTY TO COMPTROLLER [STATE
223-20 TREASURER]. (a) Each holder who on June 30 holds property that is
223-21 presumed abandoned under Chapter 72, Chapter 73, or Chapter 75
223-22 shall deliver the property to the comptroller [State Treasurer] on
223-23 or before the following November 1 accompanied by the report
223-24 required to be filed under Section 74.101.
223-25 (b) If the property subject to delivery under Subsection (a)
223-26 is stock or some other intangible ownership interest in a business
223-27 association for which there is no evidence of ownership, the holder
224-1 shall issue a duplicate certificate or other evidence of ownership
224-2 to the comptroller [State Treasurer] at the time delivery is
224-3 required under this section.
224-4 SECTION 16.14. Sections 74.3011(a), (c), and (e), Property
224-5 Code, are amended to read as follows:
224-6 (a) Notwithstanding and in addition to any other provision
224-7 of this chapter or other law, a local telephone exchange company
224-8 may deliver reported money to a scholarship fund for rural students
224-9 instead of delivering the money to the comptroller [state
224-10 treasurer] as prescribed by Section 74.301.
224-11 (c) A local telephone exchange company shall file with the
224-12 comptroller [state treasurer] a verification of money delivered
224-13 under this section that complies with Section 74.302.
224-14 (e) The comptroller [state treasurer] shall prescribe forms
224-15 and procedures governing this section, including forms and
224-16 procedures relating to:
224-17 (1) notice of presumed abandoned property;
224-18 (2) delivery of reported money to a scholarship fund;
224-19 and
224-20 (3) filing of a claim.
224-21 SECTION 16.15. Sections 74.3012(a), (c), and (e), Property
224-22 Code, are amended to read as follows:
224-23 (a) Notwithstanding and in addition to any other provision
224-24 of this chapter or other law, a local exchange company may deliver
224-25 reported money to a scholarship fund for urban students instead of
224-26 delivering the money to the comptroller [state treasurer] as
224-27 prescribed by Section 74.301.
225-1 (c) A local exchange company shall file with the comptroller
225-2 [state treasurer] a verification of money delivered under this
225-3 section that complies with Section 74.302.
225-4 (e) The comptroller [state treasurer] shall prescribe forms
225-5 and procedures governing this section, including forms and
225-6 procedures relating to:
225-7 (1) notice of presumed abandoned property;
225-8 (2) delivery of reported money to a scholarship fund;
225-9 and
225-10 (3) filing of a claim.
225-11 SECTION 16.16. Sections 74.304(a)-(d) and (f), Property
225-12 Code, are amended to read as follows:
225-13 (a) If reported property is delivered to the comptroller
225-14 [State Treasurer] the state shall assume custody of the property
225-15 and responsibility for its safekeeping.
225-16 (b) A holder who delivers property to the comptroller [State
225-17 Treasurer] in good faith is relieved of all liability to the extent
225-18 of the value of the property delivered for any claim then existing,
225-19 that may arise after delivery to the comptroller [State Treasurer],
225-20 or that may be made with respect to the property.
225-21 (c) If the holder delivers property to the comptroller
225-22 [State Treasurer] in good faith and, after delivery, a person
225-23 claims the property from the holder or another state claims the
225-24 property under its laws relating to escheat or unclaimed property,
225-25 the attorney general shall, on written notice of the claim, defend
225-26 the holder against the claim and the holder shall be indemnified
225-27 from the unclaimed money fund established in Section 74.601 against
226-1 any liability on the claim.
226-2 (d) The comptroller [State Treasurer] is not, in the absence
226-3 of negligence or mishandling of the property, liable to the person
226-4 who claims the property for damages incurred while the property or
226-5 the proceeds from the sale of the property are in the comptroller's
226-6 [treasurer's] possession. But in any event the liability of the
226-7 state is limited to the extent of the property delivered under this
226-8 chapter and remaining in the possession of the comptroller [State
226-9 Treasurer] at the time a suit is filed.
226-10 (f) On delivery of a duplicate certificate or other evidence
226-11 of ownership to the comptroller [State Treasurer] under Subsection
226-12 (b) of Section 74.301, the holder and any transfer agent,
226-13 registrar, or other person acting for or on behalf of a holder in
226-14 executing or delivering the duplicate certificate are relieved of
226-15 all liability of every kind in accordance with this section to any
226-16 person, including any person acquiring the original certificate or
226-17 the duplicate of the certificate issued to the comptroller [State
226-18 Treasurer], for any losses or damages resulting to any person by
226-19 the issuance and delivery to the comptroller [State Treasurer] of
226-20 the duplicate certificate.
226-21 SECTION 16.17. Sections 74.305(a) and (d), Property Code,
226-22 are amended to read as follows:
226-23 (a) If a holder fails to deliver property to the comptroller
226-24 [State Treasurer] in accordance with this subchapter, the attorney
226-25 general shall bring an action in the name of this state on request
226-26 of the comptroller [State Treasurer] to compel the delivery of the
226-27 property.
227-1 (d) In a suit filed under this section, the attorney general
227-2 must show that the notice required by Sections 74.201 and 74.203
227-3 has been given. When introduced into evidence the verified
227-4 property report, unless rebutted, is sufficient evidence that the
227-5 property is abandoned and subject to delivery under this chapter
227-6 and for entry of a judgment transferring custody of the property to
227-7 the comptroller [State Treasurer].
227-8 SECTION 16.18. Section 74.306, Property Code, is amended to
227-9 read as follows:
227-10 Sec. 74.306. UNCLAIMED PROPERTY HELD BY FEDERAL GOVERNMENT.
227-11 (a) If the federal government enacts a law that provides for the
227-12 discovery of unclaimed property held by the federal government and
227-13 that provides or makes that information available to the states,
227-14 the comptroller [State Treasurer] may pay to the federal government
227-15 from the unclaimed money fund the proportional share of the
227-16 necessary cost of examining records.
227-17 (b) If the federal government delivers unclaimed property to
227-18 the comptroller [State Treasurer], this state shall hold the
227-19 federal government harmless from claims made by owners of the
227-20 property after the delivery.
227-21 SECTION 16.19. Section 74.307, Property Code, is amended to
227-22 read as follows:
227-23 Sec. 74.307. LIST OF OWNERS. (a) The comptroller [State
227-24 Treasurer] shall compile and revise each year, except as to amounts
227-25 reported in the aggregate, an alphabetical list of the names and
227-26 last known addresses of the owners listed in the reports and the
227-27 amount credited to each account.
228-1 (b) The comptroller [State Treasurer] shall make the list
228-2 available for public inspection during all reasonable business
228-3 hours.
228-4 SECTION 16.20. Section 74.308, Property Code, is amended to
228-5 read as follows:
228-6 Sec. 74.308. PERIOD OF LIMITATION NOT A BAR. The
228-7 expiration, on or after September 1, 1987, of any period specified
228-8 by contract, statute, or court order, during which an action or
228-9 proceeding may be initiated or enforced to obtain payment of a
228-10 claim for money or recovery of property, does not prevent the money
228-11 or property from being presumed abandoned property and does not
228-12 affect any duty to file a report required by this chapter or to pay
228-13 or deliver abandoned property to the comptroller [State Treasurer].
228-14 SECTION 16.21. Section 74.401, Property Code, is amended to
228-15 read as follows:
228-16 Sec. 74.401. SALE OF PROPERTY. (a) Except as provided by
228-17 Subsection (c), the comptroller [State Treasurer] shall sell at
228-18 public sale all personal property, other than money and marketable
228-19 securities, delivered to the comptroller [State Treasurer] in
228-20 accordance with Section 74.301. The comptroller [State Treasurer]
228-21 shall conduct the sale in the city in this state that the
228-22 comptroller [State Treasurer] determines affords the most favorable
228-23 market for the particular property.
228-24 (b) The comptroller [State Treasurer] shall sell the
228-25 property to the highest bidder. If the comptroller [State
228-26 Treasurer] determines that the highest bid is insufficient, the
228-27 comptroller [State Treasurer] may decline that bid and offer the
229-1 property for public or private sale.
229-2 (c) The comptroller [State Treasurer] is not required to
229-3 offer property for sale if the property belongs to a person with an
229-4 address outside this state or the comptroller [State Treasurer]
229-5 determines that the probable cost of the sale of the property
229-6 exceeds its value.
229-7 (d) If after investigation the comptroller [State Treasurer]
229-8 determines that property delivered from a safe deposit box or other
229-9 repository has insubstantial commercial value, the comptroller
229-10 [State Treasurer] may destroy or otherwise dispose of the property
229-11 at any time.
229-12 (e) A person may not maintain any action or proceeding
229-13 against the state, an officer of the state, or the holder of
229-14 property because of an action taken by the comptroller [State
229-15 Treasurer] under this section.
229-16 SECTION 16.22. Section 74.402, Property Code, is amended to
229-17 read as follows:
229-18 Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding
229-19 the day on which a public sale is held under Section 74.401, the
229-20 comptroller [State Treasurer] shall publish notice of the sale in a
229-21 newspaper of general circulation in the county where the sale is to
229-22 be held.
229-23 SECTION 16.23. Section 74.403(b), Property Code, is amended
229-24 to read as follows:
229-25 (b) The comptroller [State Treasurer] shall execute all
229-26 documents necessary to complete the transfer of title.
229-27 SECTION 16.24. Section 74.501, Property Code, is amended to
230-1 read as follows:
230-2 Sec. 74.501. FILING OF CLAIM. (a) Except as provided by
230-3 Subsection (b), a claim for property or proceeds from the sale of
230-4 property delivered to the comptroller [State Treasurer] under this
230-5 chapter, including claims by other states, must be filed with the
230-6 comptroller [State Treasurer].
230-7 (b) If a claim is for inactive property that was held by a
230-8 depository before being delivered to the comptroller [State
230-9 Treasurer], the claim may be filed with the depository under
230-10 Section 74.502.
230-11 (c) All claims to which this section applies must be filed
230-12 in accordance with procedures and on forms prescribed by the
230-13 comptroller [State Treasurer].
230-14 SECTION 16.25. Sections 74.502(a), (c), and (d), Property
230-15 Code, are amended to read as follows:
230-16 (a) If inactive property held by a depository under Chapter
230-17 73 is delivered to the comptroller [State Treasurer] under Section
230-18 74.301, a claim may be filed with the depository except that any
230-19 claim by another state must be filed with the comptroller [State
230-20 Treasurer]. The comptroller [State Treasurer] shall prescribe
230-21 forms and procedures for filing claims with depositories.
230-22 (c) If the amount paid under Subsection (b) is $100 or less,
230-23 the comptroller [State Treasurer] shall reimburse the depository on
230-24 receipt of a written statement subscribed and sworn to by an
230-25 officer of the depository that states:
230-26 (1) the name and address of the person to whom payment
230-27 was made; and
231-1 (2) that the depository believes in good faith that
231-2 the claim is valid.
231-3 (d) If the amount paid under Subsection (b) is more than
231-4 $100, the comptroller [State Treasurer] shall examine the claim and
231-5 any supporting affidavit or evidence of the claim. Before the
231-6 comptroller [State Treasurer] may reimburse a depository for a
231-7 claim under this subsection, the claim must be approved and signed
231-8 by the comptroller [State Treasurer].
231-9 SECTION 16.26. Section 74.503, Property Code, as amended by
231-10 Chapters 36 and 851, Acts of the 73rd Legislature, Regular Session,
231-11 1993, is amended to read as follows:
231-12 Sec. 74.503. CONSIDERATION OF CLAIM. The comptroller [State
231-13 Treasurer] or the comptroller's [treasurer's] authorized agent
231-14 shall consider the validity of each claim filed under this
231-15 subchapter.
231-16 SECTION 16.27. Section 74.504, Property Code, is amended to
231-17 read as follows:
231-18 Sec. 74.504. HEARING. (a) The comptroller [State
231-19 Treasurer] may hold a hearing and receive evidence concerning a
231-20 claim filed under this subchapter.
231-21 (b) If the comptroller [State Treasurer] considers that a
231-22 hearing is necessary to determine the validity of a claim, the
231-23 comptroller [State Treasurer] shall sign the statement of the
231-24 findings and the decision on the claim. The statement shall report
231-25 the substance of the evidence heard and the reasons for the
231-26 decision. The statement is a public record.
231-27 (c) If the comptroller [State Treasurer] determines that a
232-1 claim is valid, the comptroller [State Treasurer] shall approve and
232-2 sign the claim.
232-3 SECTION 16.28. Sections 74.505(a) and (b), Property Code,
232-4 are amended to read as follows:
232-5 (a) If a claim is for money and has been approved under this
232-6 subchapter, the comptroller [State Treasurer] shall pay the claim.
232-7 (b) If a claim is for personal property other than money and
232-8 has been approved under this subchapter, the comptroller [State
232-9 Treasurer] promptly shall deliver the property to the claimant
232-10 unless the comptroller [State Treasurer] has sold the property. If
232-11 the property has been sold under Section 74.401, the comptroller
232-12 [State Treasurer] shall pay to the claimant the proceeds from the
232-13 sale.
232-14 SECTION 16.29. Section 74.507, Property Code, is amended to
232-15 read as follows:
232-16 Sec. 74.507. FEE FOR RECOVERY. A person who informs a
232-17 potential claimant that the claimant may be entitled to claim
232-18 property that is reportable to the comptroller [State Treasurer]
232-19 under this chapter, that has been reported to the comptroller
232-20 [State Treasurer], or that is in the possession of the comptroller
232-21 [State Treasurer], may not contract for or receive from the
232-22 claimant for services an amount that exceeds 10 percent of the
232-23 value of the property recovered. If the property involved is
232-24 mineral proceeds, the amount for services may not include a portion
232-25 of the underlying minerals or any production payment, overriding
232-26 royalty, or similar payment.
232-27 SECTION 16.30. Section 74.508, Property Code, is amended to
233-1 read as follows:
233-2 Sec. 74.508. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
233-3 PROCEDURE. (a) At any time after property has been paid or
233-4 delivered to the comptroller [State Treasurer] under this Act,
233-5 another state may recover the property if:
233-6 (1) the property was subjected to custody by this
233-7 state because the records of the holder did not reflect the last
233-8 known address of the apparent owner when the property was presumed
233-9 abandoned under this Act, and the other state establishes that the
233-10 last known address of the apparent owner or other person entitled
233-11 to the property was in that state and under the laws of that state
233-12 the property escheated to or was subject to a claim of abandonment
233-13 by that state;
233-14 (2) the last known address of the apparent owner or
233-15 other person entitled to the property, as reflected by the records
233-16 of the holder are in the other state and under the laws of that
233-17 state the property has escheated to or become subject to a claim of
233-18 abandonment by that state;
233-19 (3) the records of the holder were erroneous in that
233-20 they did not accurately reflect the actual owner of the property
233-21 and the last known address of the actual owner is in the other
233-22 state and under the laws of that state the property escheated to or
233-23 was subject to a claim of abandonment by that state;
233-24 (4) the property was subjected to custody by this
233-25 state under Subdivision (6) of Subsection (a) of Section 72.001 and
233-26 under the laws of the state of domicile of the holder the property
233-27 has escheated to or become subject to a claim of abandonment by
234-1 that state; or
234-2 (5) the property is the sum payable on a traveler's
234-3 check, money order, or other similar instrument that was subjected
234-4 to custody by this state under Subdivision (4) and the instrument
234-5 was purchased in the other state and under the laws of that state
234-6 the property escheated to or became subject to a claim of
234-7 abandonment by that state.
234-8 (b) The claim of another state to recover escheated or
234-9 abandoned property must be presented in a form prescribed by the
234-10 comptroller [State Treasurer], who shall decide the claim within 90
234-11 days after it is presented. The comptroller [State Treasurer]
234-12 shall allow the claim if he determines that the other state is
234-13 entitled to the abandoned property under Subsection (a).
234-14 SECTION 16.31. Section 74.509, Property Code, is amended to
234-15 read as follows:
234-16 Sec. 74.509. HANDLING FEE FOR PROCESSING UNCLAIMED PROPERTY.
234-17 The comptroller [State Treasurer] shall charge a person claiming
234-18 unclaimed property a handling fee if ownership of the property is
234-19 reinstated and the value of the property is $50 or more.
234-20 SECTION 16.32. Section 74.601, Property Code, is amended to
234-21 read as follows:
234-22 Sec. 74.601. FUND. (a) The comptroller [State Treasurer]
234-23 shall maintain a fund known as the unclaimed money fund.
234-24 (b) The comptroller [State Treasurer] shall deposit to the
234-25 credit of the fund:
234-26 (1) all funds, including marketable securities,
234-27 delivered to the comptroller [State Treasurer] under this chapter
235-1 or any other statute requiring the delivery of unclaimed property
235-2 to the comptroller [State Treasurer];
235-3 (2) all proceeds from the sale of any property,
235-4 including marketable securities, under this chapter;
235-5 (3) all funds that have escheated to the state under
235-6 Chapter 71, except that funds relating to escheated real property
235-7 shall be deposited according to Section 71.202; and
235-8 (4) any income derived from investments of the fund.
235-9 (c) The comptroller [State Treasurer] shall keep a separate
235-10 record and accounting for delivered unclaimed property, other than
235-11 money, before its sale.
235-12 (d) Except as provided by Subsection (e), the comptroller
235-13 [State Treasurer] shall from time to time invest the amount in the
235-14 unclaimed money fund in investments approved by law for the
235-15 investment of state funds.
235-16 (e) The comptroller [State Treasurer] may from time to time
235-17 sell securities in the fund, including stocks, bonds, and mutual
235-18 funds, and use the proceeds to buy, exchange, invest, or reinvest
235-19 in marketable securities. When making the investments, the
235-20 comptroller [State Treasurer] shall exercise the judgment and care
235-21 of a prudent person.
235-22 (f) The comptroller [State Treasurer] shall keep a separate
235-23 record and accounting for securities delivered, sold, purchased, or
235-24 exchanged and the proceeds and earnings from the securities.
235-25 SECTION 16.33. Section 74.602, Property Code, is amended to
235-26 read as follows:
235-27 Sec. 74.602. USE OF FUND. (a) Except as provided by
236-1 Subsection (b), the comptroller [State Treasurer] shall use the
236-2 unclaimed money fund to pay the claims of persons or states
236-3 establishing ownership of property in the possession of the
236-4 comptroller [State Treasurer] under this chapter or under any other
236-5 unclaimed property or escheat statute.
236-6 (b) Each fiscal year after deducting funds sufficient to pay
236-7 anticipated expenses and claims of the unclaimed money fund, the
236-8 comptroller [state treasurer] shall transfer:
236-9 (1) half of the balance of the unclaimed money fund to
236-10 the foundation school fund;
236-11 (2) $1.2 million to the state ethics fund;
236-12 (3) to each county of the state that requests, an
236-13 amount equal to any capital credits in the fund, less anticipated
236-14 claims, that were delivered under this chapter to the comptroller
236-15 [state treasurer] by an electric cooperative corporation on behalf
236-16 of the corporation's members in that county, with the money to be
236-17 used only to carry out a program under Section 381.004, Local
236-18 Government Code; and
236-19 (4) the remainder to the General Revenue Fund.
236-20 (c) The comptroller [State Treasurer] and the attorney
236-21 general may use the unclaimed money fund generally for the
236-22 enforcement and administration of this title, including the
236-23 expenses of sale, forms, notices, examinations, travel, court
236-24 costs, supplies, equipment, employment of necessary personnel, and
236-25 any other necessary expenses.
236-26 SECTION 16.34. Section 74.701, Property Code, is amended to
236-27 read as follows:
237-1 Sec. 74.701. RULES. The comptroller [State Treasurer] may
237-2 adopt rules necessary to carry out this title.
237-3 SECTION 16.35. Section 74.702, Property Code, is amended to
237-4 read as follows:
237-5 Sec. 74.702. EXAMINATION OF RECORDS. (a) To enforce this
237-6 chapter and to determine whether reports have been made as required
237-7 by this chapter, the comptroller [State Treasurer], the attorney
237-8 general, or an authorized agent of either, at any reasonable time,
237-9 may examine the books and records of any holder.
237-10 (b) The comptroller [State Treasurer], the attorney general,
237-11 or an agent of either may not make public any information obtained
237-12 by an examination made under this section and may not disclose that
237-13 information except in the course of a judicial proceeding,
237-14 authorized by this chapter, in which the state is a party or
237-15 pursuant to an agreement with another state allowing joint audits
237-16 or the exchange of information obtained under this section.
237-17 SECTION 16.36. Section 74.703(a), Property Code, is amended
237-18 to read as follows:
237-19 (a) The comptroller [State Treasurer] and the attorney
237-20 general may employ, in the office of either official, additional
237-21 personnel necessary to enforce this title.
237-22 SECTION 16.37. Section 74.704, Property Code, is amended to
237-23 read as follows:
237-24 Sec. 74.704. ASSISTANCE IN ENFORCEMENT. If the comptroller
237-25 [State Treasurer] or the attorney general requests, the State
237-26 Auditor, [state comptroller,] banking commissioner, securities
237-27 commissioner, insurance commissioner, savings and loan
238-1 commissioner, Credit Union Commission, Department of Public Safety,
238-2 or any district or county attorney shall assist the comptroller
238-3 [State Treasurer] or attorney general in enforcing this title.
238-4 SECTION 16.38. Sections 74.705(a) and (b), Property Code,
238-5 are amended to read as follows:
238-6 (a) A person who fails to pay or deliver property within the
238-7 time prescribed by this chapter shall pay to the comptroller [State
238-8 Treasurer] interest, at the judgment rate of interest as published
238-9 by the consumer credit commissioner in the Texas Register, on the
238-10 property or value of the property from the date the property should
238-11 have been paid or delivered until the date the property is actually
238-12 paid or delivered.
238-13 (b) If the comptroller [State Treasurer] presents a claim
238-14 for unclaimed property to a person who fails timely to pay or
238-15 deliver the property and the just amount of unclaimed property owed
238-16 has not been tendered before the 31st day after the date the claim
238-17 is presented, the comptroller [State Treasurer] may, on approval of
238-18 a court of competent jurisdiction in Travis County, recover
238-19 reasonable attorney's fees from the person in addition to unclaimed
238-20 property and interest due.
238-21 SECTION 16.39. Section 301.112(d), Property Code, is amended
238-22 to read as follows:
238-23 (d) At the request of the commission, the attorney general
238-24 shall sue to recover a civil penalty due under this section. Funds
238-25 collected under this section shall be paid to the comptroller
238-26 [state treasurer] for deposit in the state treasury to the credit
238-27 of the fair housing fund.
239-1 ARTICLE 17. CHANGES TO PARKS AND WILDLIFE CODE
239-2 SECTION 17.01. Section 11.043(d), Parks and Wildlife Code,
239-3 is amended to read as follows:
239-4 (d) The comptroller [treasurer] may invest money in the
239-5 account.
239-6 SECTION 17.02. Section 11.044, Parks and Wildlife Code, is
239-7 amended to read as follows:
239-8 Sec. 11.044. DISPOSITION OF INTEREST ON INVESTMENTS.
239-9 (a) Interest received from the investment of money in all accounts
239-10 of the department in charge of the comptroller [treasurer] shall be
239-11 allocated monthly to each account in an amount proportionate to the
239-12 amount of money invested from the account.
239-13 (b) The comptroller [treasurer] may retain from the interest
239-14 to be allocated monthly an amount equal to the necessary
239-15 administrative costs of making the allocations.
239-16 SECTION 17.03. Section 21.018, Parks and Wildlife Code, is
239-17 amended to read as follows:
239-18 Sec. 21.018. PAYMENT BY COMPTROLLER [TREASURER]. The
239-19 comptroller [state treasurer] shall pay or cause to be paid the
239-20 principal on bonds as they mature and the interest as it becomes
239-21 payable.
239-22 SECTION 17.04. Section 21.019, Parks and Wildlife Code, is
239-23 amended to read as follows:
239-24 Sec. 21.019. DUTIES ENFORCEABLE. The performance of the
239-25 official duties of the comptroller [and the treasurer] may be
239-26 enforced by mandamus or other appropriate proceeding.
239-27 SECTION 17.05. Section 21.107(a), Parks and Wildlife Code,
240-1 is amended to read as follows:
240-2 (a) If the amount credited to the sinking and interest fund
240-3 at the end of the fiscal year is insufficient to pay the interest
240-4 coming due and the principal maturing on bonds for the next fiscal
240-5 year, the comptroller [state treasurer] shall transfer from the
240-6 first money coming into the treasury, not otherwise appropriated by
240-7 the constitution, an amount stipulated in the certification of the
240-8 director as is necessary to pay the interest and principal on the
240-9 bonds.
240-10 SECTION 17.06. Section 21.111(b), Parks and Wildlife Code,
240-11 is amended to read as follows:
240-12 (b) Income derived from the fees required by this section,
240-13 less expenses incurred in collecting the fees, shall be deposited
240-14 in a special fund with the comptroller [state treasurer]. The
240-15 amounts deposited are net income.
240-16 ARTICLE 18. CHANGES TO TRANSPORTATION CODE
240-17 SECTION 18.01. Section 223.010(b), Transportation Code, is
240-18 amended to read as follows:
240-19 (b) At the request of the contractor and with the approval
240-20 of the department and the comptroller [state treasurer], the amount
240-21 retained may be deposited under a trust agreement with a state or
240-22 national bank domiciled in this state and selected by the
240-23 contractor.
240-24 SECTION 18.02. Section 256.002(a), Transportation Code, is
240-25 amended to read as follows:
240-26 (a) The comptroller [state treasurer] shall distribute to
240-27 the counties on or before October 15 of each year the money
241-1 appropriated from the county and road district highway fund for
241-2 that fiscal year.
241-3 SECTION 18.03. Sections 256.003(b) and (c), Transportation
241-4 Code, are amended to read as follows:
241-5 (b) On or before October 1 of each year the county judge of
241-6 each county shall file with the comptroller [state treasurer] a
241-7 sworn report that includes:
241-8 (1) an account of how the money allocated to the
241-9 county under Section 256.002 during the preceding year was spent;
241-10 (2) a description, including location, of any new
241-11 roads constructed in whole or part with that money; and
241-12 (3) any other information related to the
241-13 administration of Section 256.002 and this section that the
241-14 comptroller [state treasurer] requires.
241-15 (c) A county officer or employee shall provide to the
241-16 comptroller [state treasurer] on request any information necessary
241-17 to determine the legality of the use of funds allocated under
241-18 Section 256.002.
241-19 SECTION 18.04. Section 502.174(b), Transportation Code, is
241-20 amended to read as follows:
241-21 (b) The county assessor-collector shall send an assessment
241-22 collected under this section to the comptroller [state treasurer],
241-23 at the time and in the manner prescribed by the Texas Agricultural
241-24 Finance Authority, for deposit in the general revenue fund to the
241-25 credit of the young farmer loan guarantee account.
241-26 SECTION 18.05. Section 601.023, Transportation Code, is
241-27 amended to read as follows:
242-1 Sec. 601.023. PAYMENT OF STATUTORY FEES. The department may
242-2 pay:
242-3 (1) a statutory fee required by the Texas Department
242-4 of Transportation for a certified abstract or in connection with
242-5 suspension of a vehicle registration; or
242-6 (2) a statutory fee payable to the comptroller [state
242-7 treasurer] for issuance of a certificate of deposit required by
242-8 Section 601.122.
242-9 SECTION 18.06. Section 601.053(a), Transportation Code, is
242-10 amended to read as follows:
242-11 (a) As a condition of operating in this state a motor
242-12 vehicle to which Section 601.051 applies, the operator of the
242-13 vehicle on request shall provide to a peace officer, as defined by
242-14 Article 2.12, Code of Criminal Procedure, or a person involved in
242-15 an accident with the operator evidence of financial responsibility
242-16 by exhibiting:
242-17 (1) a motor vehicle liability insurance policy
242-18 covering the vehicle that satisfies Subchapter D or a photocopy of
242-19 the policy;
242-20 (2) a standard proof of motor vehicle liability
242-21 insurance form prescribed by the Texas Department of Insurance
242-22 under Section 601.081 and issued by a liability insurer for the
242-23 motor vehicle;
242-24 (3) an insurance binder that confirms the operator is
242-25 in compliance with this chapter;
242-26 (4) a surety bond certificate issued under Section
242-27 601.121;
243-1 (5) a certificate of a deposit with the comptroller
243-2 [state treasurer] covering the vehicle issued under Section
243-3 601.122;
243-4 (6) a copy of a certificate of a deposit with the
243-5 appropriate county judge covering the vehicle issued under Section
243-6 601.123; or
243-7 (7) a certificate of self-insurance covering the
243-8 vehicle issued under Section 601.124 or a photocopy of the
243-9 certificate.
243-10 SECTION 18.07. Section 601.055, Transportation Code, is
243-11 amended to read as follows:
243-12 Sec. 601.055. SUBSTITUTION OF EVIDENCE OF FINANCIAL
243-13 RESPONSIBILITY. (a) If a person who has filed evidence of
243-14 financial responsibility substitutes other evidence of financial
243-15 responsibility that complies with this chapter, and the department
243-16 accepts the other evidence, the department shall:
243-17 (1) consent to the cancellation of a bond or
243-18 certificate of insurance filed as evidence of financial
243-19 responsibility; or
243-20 (2) direct the comptroller [state treasurer] to return
243-21 money or securities deposited with the comptroller [treasurer] as
243-22 evidence of financial responsibility to the person entitled to the
243-23 return of the money or securities.
243-24 (b) The comptroller [state treasurer] shall return money or
243-25 securities deposited with the comptroller [treasurer] in accordance
243-26 with the direction of the department under Subsection (a)(2).
243-27 SECTION 18.08. Sections 601.056(a) and (d), Transportation
244-1 Code, are amended to read as follows:
244-2 (a) As provided by this section, the department, on request,
244-3 shall:
244-4 (1) consent to the cancellation of a bond or
244-5 certificate of insurance filed as evidence of financial
244-6 responsibility;
244-7 (2) direct the comptroller [state treasurer] to return
244-8 money or securities deposited with the comptroller [treasurer] as
244-9 evidence of financial responsibility to the person entitled to the
244-10 return of the money or securities; or
244-11 (3) waive the requirement of filing evidence of
244-12 financial responsibility.
244-13 (d) The comptroller [state treasurer] shall return the money
244-14 or securities as directed by the department under Subsection
244-15 (a)(2).
244-16 SECTION 18.09. Section 601.122, Transportation Code, is
244-17 amended to read as follows:
244-18 Sec. 601.122. DEPOSIT OF CASH OR SECURITIES WITH COMPTROLLER
244-19 [STATE TREASURER]. (a) A person may establish financial
244-20 responsibility by depositing $55,000 with the comptroller [state
244-21 treasurer] in:
244-22 (1) cash; or
244-23 (2) securities that:
244-24 (A) are of the type that may legally be
244-25 purchased by savings banks or trust funds; and
244-26 (B) have a market value equal to the required
244-27 amount.
245-1 (b) On receipt of the deposit, the comptroller [state
245-2 treasurer] shall issue to the person making the deposit a
245-3 certificate stating that a deposit complying with this section has
245-4 been made.
245-5 (c) The comptroller [state treasurer] may not accept the
245-6 deposit and the department may not accept the certificate unless
245-7 the deposit or certificate is accompanied by evidence that an
245-8 unsatisfied judgment of any character against the person making the
245-9 deposit does not exist in the county in which the person making the
245-10 deposit resides.
245-11 (d) The comptroller [state treasurer] shall hold a deposit
245-12 made under this section to satisfy, in accordance with this
245-13 chapter, an execution on a judgment issued against the person
245-14 making the deposit for damages that:
245-15 (1) result from the ownership, maintenance, use, or
245-16 operation of a motor vehicle after the date the deposit was made;
245-17 and
245-18 (2) are for:
245-19 (A) bodily injury to or death of any person,
245-20 including damages for care and loss of services; or
245-21 (B) damage to or destruction of property,
245-22 including the loss of use of the property.
245-23 (e) Money or securities deposited under this section are not
245-24 subject to attachment or execution unless the attachment or
245-25 execution arises out of a suit for damages described by Subsection
245-26 (d).
245-27 SECTION 18.10. Section 601.163(c), Transportation Code, is
246-1 amended to read as follows:
246-2 (c) The person depositing the security may amend in writing
246-3 the specification of the person on whose behalf the deposit is made
246-4 to include an additional person. This amendment may be made at any
246-5 time the deposit is in the custody of the department or the
246-6 comptroller [state treasurer].
246-7 SECTION 18.11. Section 601.165, Transportation Code, is
246-8 amended to read as follows:
246-9 Sec. 601.165. CUSTODY OF CASH SECURITY. The department
246-10 shall place cash deposited in compliance with this subchapter in
246-11 the custody of the comptroller [state treasurer].
246-12 SECTION 18.12. Section 621.352, Transportation Code, is
246-13 amended to read as follows:
246-14 Sec. 621.352. FEES FOR PERMITS ISSUED UNDER RECIPROCAL
246-15 AGREEMENT. (a) The commission by rule may establish fees for the
246-16 administration of Section 621.003 in an amount that, when added to
246-17 the other fees collected by the department, does not exceed the
246-18 amount sufficient to recover the actual cost to the department of
246-19 administering that section. An administrative fee collected under
246-20 this section shall be sent to the comptroller [state treasurer] for
246-21 deposit to the credit of the state highway fund and may be
246-22 appropriated only to the department for the administration of
246-23 Section 621.003.
246-24 (b) A permit fee collected by the department under Section
246-25 621.003 for another state shall be sent to the comptroller [state
246-26 treasurer] for deposit to the credit of the permit distributive
246-27 account in the general revenue fund. The comptroller [state
247-1 treasurer] shall distribute money in the permit distributive
247-2 account only to the proper authorities of other states and only as
247-3 directed by the department.
247-4 SECTION 18.13. Section 621.353(b), Transportation Code, is
247-5 amended to read as follows:
247-6 (b) The comptroller [state treasurer] shall send the amount
247-7 due each county under Subsection (a) to the county treasurer or
247-8 officer performing the function of that office at least twice each
247-9 fiscal year.
247-10 SECTION 18.14. Section 623.051(d), Transportation Code, is
247-11 amended to read as follows:
247-12 (d) Before exercising any right under a contract under this
247-13 section, a person must execute with a corporate surety authorized
247-14 to do business in this state a surety bond in an amount determined
247-15 by the commission to compensate for the cost of maintenance and
247-16 repairs as provided by this section. The bond must be approved by
247-17 the comptroller [state treasurer] and the attorney general and must
247-18 be conditioned on the person fulfilling the obligations of the
247-19 contract.
247-20 SECTION 18.15. Section 623.052(b), Transportation Code, is
247-21 amended to read as follows:
247-22 (b) Before a person may operate a vehicle under this
247-23 section, the person must:
247-24 (1) contract with the department to indemnify the
247-25 department for the cost of the maintenance and repair for damage
247-26 caused by a vehicle crossing that part of the highway; and
247-27 (2) execute an adequate surety bond to compensate for
248-1 the cost of maintenance and repair, approved by the comptroller
248-2 [state treasurer] and the attorney general, with a corporate surety
248-3 authorized to do business in this state, conditioned on the person
248-4 fulfilling each obligation of the agreement.
248-5 SECTION 18.16. Section 623.077(b), Transportation Code, is
248-6 amended to read as follows:
248-7 (b) The department shall send each fee collected under
248-8 Subsection (a) to the comptroller [state treasurer] for deposit to
248-9 the credit of the state highway fund.
248-10 SECTION 18.17. Section 623.078(b), Transportation Code, is
248-11 amended to read as follows:
248-12 (b) The department shall send each fee collected under
248-13 Subsection (a) to the comptroller [state treasurer] for deposit to
248-14 the credit of the state highway fund.
248-15 ARTICLE 19. CHANGES TO TAX CODE
248-16 SECTION 19.01. Sections 101.003(10)-(12), Tax Code, are
248-17 amended to read as follows:
248-18 (10) ["Treasurer" means the state treasurer of Texas.]
248-19 [(11)] "Report" means a tax return, declaration,
248-20 statement, or other document required to be filed with the
248-21 comptroller.
248-22 (11) [(12)] "Obligation" means the duty of a person to
248-23 pay a tax, fee, assessment, or other amount or to make, file, or
248-24 keep a report, certificate, affidavit, or other document.
248-25 SECTION 19.02. Section 101.007, Tax Code, is amended to read
248-26 as follows:
248-27 Sec. 101.007. REFERENCES TO STATE OFFICERS. A reference in
249-1 this code to the comptroller[, the treasurer,] or another officer
249-2 includes authorized representatives and employees of the officer
249-3 unless the provision indicates that only the officer is intended in
249-4 the reference.
249-5 SECTION 19.03. Section 111.019(c), Tax Code, is amended to
249-6 read as follows:
249-7 (c) The amount by which the proceeds from the sale exceed
249-8 the amount of taxes, penalties, interest, and costs shall be
249-9 disposed of by the comptroller as follows:
249-10 (1) if before the sale of the property a person who is
249-11 not the person liable for the amount and who has an interest in or
249-12 lien on the property files notice of the interest or lien with the
249-13 comptroller, the comptroller shall hold the amount of the excess
249-14 pending a determination of the rights of respective parties in the
249-15 amount of the excess by a court;
249-16 (2) if no notice is given under Subdivision (1) of
249-17 this subsection and the person liable for the amount gives a
249-18 receipt for the amount of the excess, the comptroller shall return
249-19 the amount of the excess to the person; or
249-20 (3) if no notice is given under Subdivision (1) of
249-21 this subsection and the comptroller is unable to obtain a receipt
249-22 under Subdivision (2) of this subsection, the comptroller shall
249-23 [deposit the amount of the excess with the treasurer, who shall]
249-24 hold the amount as trustee for the owner subject to the order of
249-25 the person liable for the amount or a successor of the person.
249-26 SECTION 19.04. Sections 111.053(b) and (c), Tax Code, are
249-27 amended to read as follows:
250-1 (b) Before January 1 of each year, the comptroller
250-2 [treasurer] shall publish in the Texas Register and distribute to
250-3 each state agency that receives reports or payments of any taxes a
250-4 list of the legal holidays for banking purposes for that year. The
250-5 comptroller [treasurer] may not include on the list a holiday on
250-6 which the comptroller [treasurer] determines that most financial
250-7 institutions will be conducting ordinary business.
250-8 (c) An agency that collects a tax for which a due date for a
250-9 report or payment falls on a legal holiday not included on the list
250-10 published under Subsection (b) shall ensure that a taxpayer may
250-11 make a report or payment on that date. The agency may enter into
250-12 an agreement with the [treasurer or the] comptroller for the
250-13 receipt of reports or payments on that date.
250-14 SECTION 19.05. Sections 112.053(a) and (c), Tax Code, are
250-15 amended to read as follows:
250-16 (a) A suit authorized by this subchapter must be brought
250-17 against the public official charged with the duty of collecting the
250-18 tax or fee, the comptroller [treasurer], and the attorney general.
250-19 (c) A copy of the written protest as originally filed must
250-20 be attached to the original petition filed by the person paying the
250-21 tax or fee with the court and to the copies of the original
250-22 petition served on the comptroller [treasurer], the attorney
250-23 general, and the public official charged with the duty of
250-24 collecting the tax or fee.
250-25 SECTION 19.06. Section 112.058, Tax Code, is amended by
250-26 amending the section heading and Subsection (a) to read as follows:
250-27 Sec. 112.058. SUBMISSION OF PROTEST PAYMENTS TO COMPTROLLER
251-1 [TREASURER]. (a) Except as provided in Subsections (b) and (c) of
251-2 this section, payments made under protest are to be handled as
251-3 follows:
251-4 (1) An officer who receives payments made under
251-5 protest as required by Section 112.051 of this code shall each day
251-6 send to the comptroller [treasurer] the payments, a list of the
251-7 persons making the payments, and a written statement that the
251-8 payments were made under protest.
251-9 (2) The comptroller [treasurer] shall, immediately on
251-10 receipt, credit the payments to each fund to which the tax or fee
251-11 paid under protest is allocated by law.
251-12 (3) The comptroller [treasurer] shall maintain
251-13 detailed records of payments made under protest.
251-14 (4) A payment under protest bears pro rata interest.
251-15 The pro rata interest is the amount of interest that would be due
251-16 if the amount had been placed in the suspense account of the
251-17 comptroller [treasurer].
251-18 SECTION 19.07. Section 112.059, Tax Code, is amended to read
251-19 as follows:
251-20 Sec. 112.059. DISPOSITION OF PROTEST PAYMENTS BELONGING TO
251-21 THE STATE. If a suit authorized by this subchapter is not brought
251-22 in the manner or within the time required or if the suit is
251-23 properly filed and results in a final determination that a tax
251-24 payment or a portion of a tax payment made under protest, including
251-25 the pro rata amount of interest earned on the payment, belongs to
251-26 the state, the comptroller [treasurer] shall ensure that the proper
251-27 amount has been deposited to the credit of the appropriate state
252-1 fund.
252-2 SECTION 19.08. Sections 112.060(a), (b), and (d), Tax Code,
252-3 are amended to read as follows:
252-4 (a) If a suit under this subchapter results in a final
252-5 determination that all or part of the money paid under protest was
252-6 unlawfully demanded by the public official and belongs to the
252-7 taxpayer, the comptroller [treasurer] shall credit the proper
252-8 amount, with the pro rata interest earned on that amount, against
252-9 any other amount finally determined to be due to the state from the
252-10 taxpayer according to information in the custody of the comptroller
252-11 [treasurer] and shall refund the remainder by the issuance of a
252-12 refund warrant.
252-13 (b) A refund warrant shall be written and signed by the
252-14 comptroller [and countersigned by the treasurer].
252-15 (d) The comptroller [treasurer] shall deliver [return to the
252-16 comptroller] each tax refund warrant issued[, and the comptroller
252-17 shall deliver it] to the person entitled to receive it.
252-18 SECTION 19.09. Section 112.101(d), Tax Code, is amended to
252-19 read as follows:
252-20 (d) The public official shall deliver a payment or bond
252-21 required by Subsection (a)(2) to the comptroller [treasurer]. The
252-22 comptroller [treasurer] shall deposit a payment made under
252-23 Subsection (a)(2)(A) to the credit of each fund to which the tax,
252-24 fee, or penalty is allocated by law. A payment made under
252-25 Subsection (a)(2)(A) bears pro rata interest. The pro rata
252-26 interest is the amount of interest that would be due if the amount
252-27 had been placed into the suspense account of the comptroller
253-1 [treasurer].
253-2 SECTION 19.10. Section 112.104(a), Tax Code, is amended to
253-3 read as follows:
253-4 (a) If an applicant for an order or injunction granted under
253-5 this subchapter has not filed a bond as required by Section
253-6 112.101(a)(2)(B) of this code, the applicant shall pay to the
253-7 comptroller [treasurer] all taxes, fees, and penalties to which the
253-8 order or injunction applies as those taxes, fees, and penalties
253-9 accrue and before they become delinquent. The comptroller
253-10 [treasurer] shall credit the payment to each fund to which the tax,
253-11 fee, or penalty is allocated by law.
253-12 SECTION 19.11. Section 112.106(a), Tax Code, is amended to
253-13 read as follows:
253-14 (a) If a restraining order or injunction is finally
253-15 dismissed or dissolved, the comptroller [treasurer] shall:
253-16 (1) if a bond was filed, make demand on the applicant
253-17 and the applicant's sureties for the immediate payment of all
253-18 taxes, fees, and penalties due the state; or
253-19 (2) if no bond was filed, ensure that the proper
253-20 amount of taxes, fees, and penalties has been deposited to the
253-21 credit of the proper fund to which the taxes, fees, and penalties
253-22 are allocated.
253-23 SECTION 19.12. Section 112.107, Tax Code, is amended to read
253-24 as follows:
253-25 Sec. 112.107. CREDIT OR REFUND. If the final judgment in a
253-26 suit under this subchapter maintains the right of the applicant for
253-27 a temporary or permanent injunction to prevent the assessment or
254-1 collection of the tax, the comptroller [treasurer] shall credit the
254-2 money deposited under this subchapter, with the pro rata interest
254-3 earned on the money, against any other amount finally determined to
254-4 be due to the state from the applicant according to information in
254-5 the custody of the comptroller [treasurer] and shall refund the
254-6 remainder to the applicant.
254-7 SECTION 19.13. Section 112.155(c), Tax Code, is amended to
254-8 read as follows:
254-9 (c) The plaintiff is entitled to interest on the amount of
254-10 tax included in a judgment for the plaintiff equal to the amount of
254-11 interest that would be due if the tax had been deposited in the
254-12 suspense account of the comptroller [treasurer]. The interest
254-13 accrues beginning from the date that the tax was paid until:
254-14 (1) the date that the amount is credited against the
254-15 plaintiff's tax liability; or
254-16 (2) a date determined by the comptroller that is not
254-17 sooner than 10 days before the actual date on which a refund
254-18 warrant is issued.
254-19 SECTION 19.14. Section 151.801(d), Tax Code, is amended to
254-20 read as follows:
254-21 (d) The comptroller shall determine [certify] the amount to
254-22 be deposited to the highway fund under Subsection (b) [to the
254-23 treasurer] according to available statistical data indicating the
254-24 estimated average or actual consumption or sales of lubricants used
254-25 to propel motor vehicles over the public roadways. The comptroller
254-26 shall determine [certify] the amounts to be deposited to the funds
254-27 or accounts under Subsection (c) [to the treasurer] according to
255-1 available statistical data indicating the estimated or actual total
255-2 receipts in this state from taxable sales of sporting goods. If
255-3 satisfactory data are not available, the comptroller may require
255-4 taxpayers who make taxable sales or uses of those lubricants or of
255-5 sporting goods to report to the comptroller as necessary to make
255-6 the allocation required by Subsection (b) or (c).
255-7 SECTION 19.15. Sections 154.001(5) and (15), Tax Code, are
255-8 amended to read as follows:
255-9 (5) "Counterfeit stamp" means a sticker, label, print,
255-10 tag, or token that is used or is intended to be used to simulate a
255-11 stamp and that is not authorized or issued by the comptroller
255-12 [treasurer].
255-13 (15) "Stamp" includes only a stamp that:
255-14 (A) is printed, manufactured, or made by
255-15 authority of the comptroller [treasurer];
255-16 (B) shows payment of the tax imposed by this
255-17 chapter; and
255-18 (C) is consecutively numbered and uniquely
255-19 identifiable as a Texas tax stamp.
255-20 SECTION 19.16. Section 154.024(c), Tax Code, is amended to
255-21 read as follows:
255-22 (c) The comptroller [treasurer] and the Texas Alcoholic
255-23 Beverage Commission shall make rules for the administration of this
255-24 section.
255-25 SECTION 19.17. Section 154.025(k), Tax Code, is amended to
255-26 read as follows:
255-27 (k) To the extent allowed by law, the priority claim of the
256-1 comptroller [treasurer] under 11 U.S.C. Section 507(d) for taxes
256-2 imposed by Section 154.022 is assigned to the collecting agent.
256-3 SECTION 19.18. Sections 154.042(c) and (d), Tax Code, are
256-4 amended to read as follows:
256-5 (c) If a distributor reasonably foresees that the
256-6 distributor will receive cigarettes in quantities that will make
256-7 compliance with Subsection (b) commercially impracticable in the
256-8 normal course of business, the distributor shall provide the
256-9 comptroller [treasurer], before receipt of the cigarettes, with
256-10 advance written notice of the anticipated noncompliance and a plan
256-11 for achieving compliance. On receipt of the written notice, the
256-12 comptroller [treasurer] shall review the plan and determine whether
256-13 to provide an extension of time in which the tax stamps must be
256-14 affixed after the distributor receives the cigarettes. The
256-15 comptroller [treasurer] may not unreasonably withhold an extension
256-16 of time.
256-17 (d) A plan for achieving compliance that is submitted to the
256-18 comptroller [treasurer] under Subsection (c) is confidential and
256-19 not subject to Chapter 552, Government Code.
256-20 SECTION 19.19. Section 154.043, Tax Code, is amended to read
256-21 as follows:
256-22 Sec. 154.043. SALE OF STAMPS. Except as provided in Section
256-23 154.044 of this code, only the comptroller [treasurer] may sell
256-24 cigarette stamps. The stamps may be sold only in quantities made
256-25 available by the comptroller [treasurer]. The purchaser shall
256-26 place the order for stamps directly with the comptroller
256-27 [treasurer].
257-1 SECTION 19.20. Section 154.044, Tax Code, is amended to read
257-2 as follows:
257-3 Sec. 154.044. PURCHASE FROM A DISTRIBUTOR. (a) If a
257-4 distributor does not possess sufficient unused stamps to cover the
257-5 distributor's inventory of unstamped cigarettes, the comptroller
257-6 [treasurer] may allow the distributor to purchase the required
257-7 stamps from any distributor through a requisition from the
257-8 comptroller [treasurer] so that the unstamped cigarettes may be
257-9 stamped immediately under the direction of the comptroller
257-10 [treasurer].
257-11 (b) The comptroller [treasurer] may issue the requisition.
257-12 The requisition shall be in triplicate on a form prescribed by the
257-13 comptroller [treasurer]. The copies shall be designated
257-14 "original," "duplicate," and "triplicate." The comptroller
257-15 [treasurer] shall keep the original and send the duplicate to the
257-16 purchaser and the triplicate to the seller. The purchaser and
257-17 seller shall keep their respective copies available at all times
257-18 for four years for inspection by the comptroller [treasurer] and
257-19 the attorney general.
257-20 SECTION 19.21. Section 154.045, Tax Code, is amended to read
257-21 as follows:
257-22 Sec. 154.045. RECALL BY COMPTROLLER [TREASURER]. (a) The
257-23 comptroller [treasurer] may recall unused stamps.
257-24 (b) If the comptroller [treasurer] recalls stamps, the
257-25 purchaser, on the comptroller's [treasurer's] demand, shall
257-26 surrender the stamps to the comptroller [treasurer] for exchange.
257-27 (c) If the comptroller [treasurer] recalls stamps and
258-1 receives them from the purchaser, the comptroller [treasurer] shall
258-2 issue stamps with different serial numbers for the recalled stamps.
258-3 SECTION 19.22. Sections 154.046(a) and (c), Tax Code, are
258-4 amended to read as follows:
258-5 (a) The comptroller [treasurer] shall send an original
258-6 invoice along with any stamps shipped to a distributor.
258-7 (c) The distributor shall have the original invoice
258-8 available at all times for four years for inspection by the
258-9 comptroller [treasurer] and the attorney general.
258-10 SECTION 19.23. Section 154.047, Tax Code, is amended to read
258-11 as follows:
258-12 Sec. 154.047. STAMPS SHIPPED WITH DRAFT ATTACHED. (a) A
258-13 distributor may order stamps to be shipped to a bank with which the
258-14 distributor regularly transacts business if the bank is a
258-15 designated state depository under Section 404.022, Government Code.
258-16 The comptroller [treasurer] may ship the stamps to the bank with
258-17 the invoice required by Section 154.046 and a form draft.
258-18 (b) The comptroller [treasurer] shall prescribe the form of
258-19 the draft. The draft must show:
258-20 (1) the amount of the draft;
258-21 (2) the name of the distributor;
258-22 (3) the name and address of the bank; and
258-23 (4) the date of shipment.
258-24 (c) If the draft is not paid within 20 days after the date
258-25 of the draft, the bank shall return the draft and stamps to the
258-26 comptroller [treasurer]. The comptroller [treasurer] shall notify
258-27 the distributor to appear before the comptroller [treasurer] to
259-1 show cause why the distributor should not be denied the privilege
259-2 of ordering stamps shipped with draft attached. If the distributor
259-3 fails to show good cause, the comptroller [treasurer] may stop
259-4 shipping stamps with draft attached.
259-5 SECTION 19.24. Section 154.048, Tax Code, is amended to read
259-6 as follows:
259-7 Sec. 154.048. STAMP METERS. (a) The comptroller
259-8 [treasurer] may authorize a permitted distributor to use a stamp
259-9 metering machine to impress on or to attach to each package of
259-10 cigarettes evidence of tax payment. The comptroller [treasurer]
259-11 shall adopt rules for the use of tax meter stamps.
259-12 (b) No distributor may use a tax meter stamp without
259-13 authorization from the comptroller [treasurer]. The comptroller
259-14 [treasurer] may revoke or suspend without prior notice
259-15 authorization to use tax meter stamps.
259-16 SECTION 19.25. Section 154.049, Tax Code, is amended to read
259-17 as follows:
259-18 Sec. 154.049. METER SETTINGS. A distributor using a stamp
259-19 metering machine shall submit a request for a setting on a form
259-20 furnished by the comptroller [treasurer]. The distributor shall at
259-21 his own expense send the meter with the proper payment to the
259-22 comptroller [treasurer]. The comptroller [treasurer] shall set and
259-23 return the meter, with insurance and shipping cost collect on
259-24 delivery. The comptroller [treasurer] shall keep the key to the
259-25 meter. Only the comptroller [treasurer] may remove or break the
259-26 seal on the meter. A distributor may request meter settings only
259-27 in units of 100. No distributor may request a meter setting of
260-1 more than 99,900.
260-2 SECTION 19.26. Section 154.050, Tax Code, is amended to read
260-3 as follows:
260-4 Sec. 154.050. PAYMENT. (a) The comptroller [treasurer]
260-5 shall require that payment in full for stamps or meter settings be
260-6 made within 30 days after the date stamps or a set meter and an
260-7 accompanying invoice from the comptroller [treasurer] are received
260-8 by the distributor, except that at the close of each biennium,
260-9 payment for stamps or meter settings purchased or received on or
260-10 before August 31 of that fiscal year shall be made in full on or
260-11 before August 31 of that fiscal year, providing that such payment
260-12 be received in the office of the comptroller [treasurer] no later
260-13 than August 31 of that fiscal year notwithstanding any other
260-14 statute regarding tax due dates to the contrary.
260-15 (b) The comptroller [treasurer] may not ship stamps or set a
260-16 meter without advance payment under this section unless the
260-17 distributor has satisfied all requirements imposed under Section
260-18 154.051 of this code.
260-19 (c) Payment for stamps or meter settings must be made by
260-20 cashier's check payable to the comptroller [treasurer], electronic
260-21 funds transfer to the comptroller [treasurer], or any other method
260-22 of payment authorized by the comptroller [treasurer].
260-23 (d) The dishonor of a check delivered to the comptroller
260-24 [treasurer] for payment of stamps constitutes a failure to pay the
260-25 tax when due.
260-26 SECTION 19.27. Sections 154.051(a)-(k), (n), and (o), Tax
260-27 Code, are amended to read as follows:
261-1 (a) The cigarette tax recovery trust fund is a private trust
261-2 fund established outside the state treasury and as provided by this
261-3 section secures the payment of cigarette taxes by distributors who
261-4 contribute to the fund. The fund is composed of the total amount
261-5 in the separate accounts maintained in trust for all contributing
261-6 distributors as provided by this section. The assets of the fund,
261-7 including interest earned by those assets, are to be held in trust
261-8 for the benefit and protection of the state treasury, and may not
261-9 be diverted, distributed, or appropriated for any purpose other
261-10 than as provided by this section. Interest earned by a
261-11 distributor's account but not yet refunded to the distributor
261-12 pursuant to Subsection (d) shall, on a monthly basis, be paid to
261-13 the comptroller [treasurer] as provided by Subsection (b) or
261-14 credited to the distributor's account.
261-15 (b) The comptroller [treasurer] is the trustee of the fund
261-16 as provided by Section 404.073, Government Code, and shall manage
261-17 the fund as provided by this section. In investing the assets of
261-18 the fund, the comptroller [treasurer] has the obligations, duties,
261-19 and powers provided for the investment of state funds by Sections
261-20 404.021 through 404.0245 [404.025], Government Code, and by the
261-21 orders of the State Depository Board. The comptroller [treasurer]
261-22 shall receive five percent of the interest earned on all assets of
261-23 the fund as compensation for serving as trustee of the fund.
261-24 (c) A distributor who orders stamps or requests a meter
261-25 setting from the comptroller [state treasurer] under this chapter
261-26 without advance payment shall contribute to an account maintained
261-27 in the distributor's name in the fund money in the amount of each
262-1 discount to which the distributor is entitled under Section 154.052
262-2 of this code. When the money in the distributor's account equals
262-3 20 percent of the designated amount of stamps and meter setting
262-4 requested by the distributor and approved by the comptroller
262-5 [treasurer] to be purchased in any one month, the distributor's
262-6 interest in the fund becomes vested.
262-7 (d) Except as provided by Subsection (g) of this section, on
262-8 the last day of each quarter after the quarter in which a
262-9 distributor's interest in the fund becomes vested, the comptroller
262-10 [treasurer] shall refund to the distributor all money contributed
262-11 to the fund by the distributor under Subsection (c) of this section
262-12 in the earliest preceding quarter for which a refund has not been
262-13 paid, plus interest earned on that amount, as long as the
262-14 distributor's interest in the fund remains vested.
262-15 (e) Until a distributor who orders stamps or requests a
262-16 meter setting without advance payment acquires a vested interest in
262-17 the fund, the comptroller [treasurer] may require the distributor
262-18 to post with the comptroller [treasurer] an irrevocable letter of
262-19 credit drawn in the form and amount specified by the comptroller
262-20 [treasurer] to secure the payment of cigarette taxes by that
262-21 distributor. The comptroller [treasurer] may not ship stamps to or
262-22 set a meter for a distributor not having a vested interest in the
262-23 fund without advance payment until the distributor posts the
262-24 required letter of credit.
262-25 (f) In addition to any other requirement under this section,
262-26 the comptroller [treasurer] as a condition for shipping stamps or
262-27 setting a meter without advance payment may:
263-1 (1) require a fiscal-year-end financial statement,
263-2 including a balance sheet and income statement verifiable as to its
263-3 accuracy or other financial information acceptable to the
263-4 comptroller [treasurer] and verifiable as to its accuracy;
263-5 (2) require indemnification from each officer,
263-6 director, and stockholder owning 10 percent or more of outstanding
263-7 stock, if the distributor is a corporation, from each partner, if
263-8 the distributor is a partnership, from each member or owner of a
263-9 joint venture or syndication, and from the owner of a sole
263-10 proprietorship;
263-11 (3) require the distributor to obtain and provide the
263-12 comptroller [treasurer] with a credit report from a credit
263-13 reporting agency acceptable to the comptroller [treasurer];
263-14 (4) require a distributor to increase the balance in
263-15 its account in the fund;
263-16 (5) require a distributor to post a letter of credit;
263-17 (6) reduce a distributor's credit time or amount; or
263-18 (7) take any other reasonable and necessary action to
263-19 protect the state treasury from loss due to the nonpayment of
263-20 cigarette taxes.
263-21 (g) If a distributor who has an account in the fund fails to
263-22 pay in full a tax imposed by this chapter by the due date, the
263-23 comptroller [treasurer], without prior notice to the distributor or
263-24 any other preliminary procedure, may seize any unaffixed stamps and
263-25 any stamped cigarette packages, up to and including the full amount
263-26 of unpaid tax. If the proceeds from the seizure do not satisfy the
263-27 total tax deficiency or the comptroller [treasurer] does not seize
264-1 any unaffixed stamps or stamped cigarette packages, the comptroller
264-2 [treasurer] may withdraw immediately from the fund an amount equal
264-3 to the amount of unpaid taxes due. The comptroller [treasurer]
264-4 shall first withdraw the amount from the account of the defaulting
264-5 distributor. The comptroller [treasurer] shall use the
264-6 comptroller's [treasurer's] best efforts to collect the tax due
264-7 from the defaulting distributor before withdrawing money from the
264-8 other accounts in the fund to satisfy the tax liability. If that
264-9 distributor's account does not contain sufficient money to satisfy
264-10 the tax liability in full, the comptroller [treasurer] shall
264-11 withdraw the additional amount necessary to satisfy that liability
264-12 from the other accounts in the fund in proportion to the balance of
264-13 each account, except that the withdrawal from any other
264-14 distributor's account in the fund is limited to an amount not
264-15 greater than 50 percent of the designated amount of stamps and
264-16 meter settings requested by the distributor under Subsection (c) or
264-17 of the amount required by the comptroller [treasurer] under
264-18 Subsection (f)(4). Not later than the fifth day after the date of
264-19 a withdrawal, the comptroller [treasurer] shall notify each
264-20 distributor of the withdrawal from its account and the amount
264-21 withdrawn. If as a result of a withdrawal made under this
264-22 subsection a distributor's balance in its account is reduced to an
264-23 amount less than the minimum required under this section, the
264-24 distributor's interest in the fund is no longer vested, and the
264-25 comptroller [treasurer] may discontinue refunds to the distributor
264-26 under Subsection (d) until the distributor again acquires a vested
264-27 interest in the fund. The comptroller [treasurer] may require a
265-1 distributor whose interest in the fund is no longer vested to post
265-2 an irrevocable letter of credit with the comptroller [treasurer] to
265-3 secure the payment of cigarette taxes by the distributor. To
265-4 protect the fund, each distributor having an account in the fund
265-5 must indemnify the fund against any amount withdrawn from the fund
265-6 under this subsection because of the failure of the distributor to
265-7 pay in full a tax imposed by this chapter by the due date.
265-8 (h) If distributor accounts, other than a defaulting
265-9 distributor account, are drawn pursuant to Subsection (g) of this
265-10 section, each affected, nondefaulting distributor shall have a
265-11 claim against the defaulting distributor for the amount so drawn.
265-12 The comptroller [treasurer] is hereby appointed trustee, agent, and
265-13 assignee of each affected, nondefaulting distributor for purposes
265-14 of seeking recovery of the amount so drawn. The comptroller
265-15 [treasurer] shall have the sole judgment and discretion in deciding
265-16 whether or not to pursue such a claim and shall have discretion to
265-17 handle any such claim on any basis that in the opinion of the
265-18 comptroller [treasurer] is in the best interest of the fund. The
265-19 comptroller [treasurer] is released from any liability related to
265-20 the handling of the claims described in this section except for
265-21 intentional or wilful misconduct.
265-22 (i) A distributor or person authorized to act on behalf of a
265-23 distributor may notify the comptroller [treasurer] in writing that
265-24 the distributor no longer desires to have stamps shipped or a meter
265-25 set without advance payment, and may request that the money in the
265-26 distributor's account in the fund be paid to the distributor or the
265-27 distributor's heirs or assigns. The comptroller [treasurer] shall
266-1 pay the money in the distributor's account as requested at the end
266-2 of the next quarter after all outstanding taxes owed to the state
266-3 by the distributor have been paid.
266-4 (j) Under no circumstances shall the comptroller [treasurer]
266-5 return to any distributor an amount greater than the balance in the
266-6 distributor's account within the cigarette tax recovery trust fund
266-7 less any sums drawn pursuant to Subsection (g) of this section.
266-8 The State of Texas' liability to any distributor pursuant to this
266-9 section is expressly limited to the sums on deposit in the
266-10 distributor's account at the time the request for return of funds
266-11 is made.
266-12 (k) The comptroller [treasurer] may adopt and enforce rules
266-13 necessary to carry out this section.
266-14 (n) The comptroller [treasurer] shall regularly distribute
266-15 financial information regarding the performance of the fund to
266-16 participating distributors on a regular basis. On the written
266-17 request of a participating distributor, the comptroller [treasurer]
266-18 shall provide the distributor with the name and address of each
266-19 distributor participating in the fund, the percentage of the total
266-20 fund represented by each distributor's account, and the total
266-21 amount of money in the fund.
266-22 (o) In lieu of participation in the cigarette tax recovery
266-23 trust fund to secure payment for stamps or meter settings and in
266-24 lieu of advance payment for stamps or meter settings, a distributor
266-25 may pledge to the comptroller [treasurer] sufficient collateral to
266-26 secure payment for stamps or meter settings. Such pledge shall be
266-27 evidenced by a pledge agreement in a form promulgated by the
267-1 comptroller [treasurer], and such collateral shall consist of
267-2 certificates of deposit, treasury notes, treasury bills, or other
267-3 similar types of collateral acceptable to the comptroller
267-4 [treasurer] and held in a separate trust fund established in the
267-5 Texas Treasury Safekeeping Trust Company. All interest earned on
267-6 such collateral shall belong to the distributor. The comptroller
267-7 [treasurer] may require the pledge of additional collateral in the
267-8 event the comptroller [treasurer] determines that the fair market
267-9 value of the pledged collateral is less than the amount due the
267-10 comptroller [treasurer] for stamps or meter settings. On the
267-11 written request of the distributor, the comptroller [treasurer]
267-12 shall release collateral from the pledge agreement or allow the
267-13 substitution of collateral subject to the pledge agreement if after
267-14 such release or substitution the fair market value of the
267-15 collateral subject to the pledge will be equal to or greater than
267-16 the amount due the comptroller [treasurer] for stamps or meter
267-17 settings. If a distributor fails to pay tax in full when due, the
267-18 comptroller [treasurer] may, if the distributor does not pay such
267-19 past due tax and any penalty related thereto within three days
267-20 after receipt of written notice of such failure from the
267-21 comptroller [treasurer], sell or dispose of the collateral and
267-22 apply the proceeds to the payment of taxes, interest, penalties,
267-23 and costs due to the comptroller [treasurer] by the distributor,
267-24 with any remaining proceeds being refunded to the distributor.
267-25 SECTION 19.28. Section 154.052(b), Tax Code, is amended to
267-26 read as follows:
267-27 (b) If a distributor violates a provision of this chapter,
268-1 the distributor is not entitled to receive a stamping allowance for
268-2 the period of the violation. On a determination by the comptroller
268-3 [treasurer] that the distributor is no longer in violation of a
268-4 provision of this chapter, the distributor is entitled to receive a
268-5 stamping allowance.
268-6 SECTION 19.29. Section 154.053, Tax Code, is amended to read
268-7 as follows:
268-8 Sec. 154.053. MANUFACTURE OF STAMPS. (a) The comptroller
268-9 [treasurer] shall design and have printed or manufactured cigarette
268-10 tax stamps. If the comptroller [treasurer] determines that it is
268-11 necessary for the best enforcement of this chapter, the comptroller
268-12 [treasurer] may change the design, color, or denomination of the
268-13 stamps. The comptroller [treasurer] shall determine the size,
268-14 design, color, or denomination, and quantity of stamps
268-15 manufactured. The stamps shall be manufactured so that they may be
268-16 easily and securely attached to an individual package of
268-17 cigarettes. The comptroller [treasurer] may designate the method
268-18 of identification for the stamps and shall award the contract for
268-19 the printing or manufacturing to the person submitting the bid that
268-20 will give the best protection to the state in enforcing this
268-21 chapter.
268-22 (b) The comptroller [treasurer] shall designate the date of
268-23 issue of new stamps by issuing a proclamation. The date of the
268-24 proclamation is the date of issue.
268-25 SECTION 19.30. Section 154.054, Tax Code, is amended to
268-26 read as follows:
268-27 Sec. 154.054. REDEMPTION AND DESTRUCTION OF STAMPS.
269-1 (a) The comptroller [treasurer] may redeem unused cigarette tax
269-2 stamps that were lawfully issued before a design, color, or
269-3 denomination change.
269-4 (b) The comptroller [treasurer] may destroy stamps in the
269-5 manner the comptroller [treasurer] considers best.
269-6 SECTION 19.31. Sections 154.058(a) and (b), Tax Code, are
269-7 amended to read as follows:
269-8 (a) On the effective date of a tax increase, each
269-9 distributor, wholesaler, and retailer who has 2,000 or more
269-10 cigarettes in packages stamped with stamps of an old design, color,
269-11 or denomination shall immediately inventory the packages and any
269-12 unused stamps of an old design, color, or denomination and file a
269-13 report of the inventory with the comptroller [treasurer].
269-14 (b) Not later than the 30th day after the date of the
269-15 increase, each distributor, wholesaler, and retailer shall pay the
269-16 amount of the additional tax due because of the tax increase by
269-17 attaching to the inventory a cashier's check payable to the
269-18 comptroller [treasurer], by electronic funds transfer to the
269-19 comptroller [treasurer] or by any other method of payment
269-20 authorized by the comptroller [treasurer].
269-21 SECTION 19.32. Section 154.060, Tax Code, is amended to
269-22 read as follows:
269-23 Sec. 154.060. CANCELLATION. No person may cancel, mark, or
269-24 mutilate a stamp on a package of cigarettes so that the comptroller
269-25 [treasurer] is prevented from or hindered in examining the
269-26 genuineness of the stamp.
269-27 SECTION 19.33. Sections 154.101(a) and (c)-(f), Tax Code,
270-1 are amended to read as follows:
270-2 (a) A person may not engage in business as a distributor,
270-3 wholesaler, bonded agent, or retailer unless the person has applied
270-4 for and received the applicable permit from the comptroller
270-5 [treasurer].
270-6 (c) The comptroller [treasurer] shall prescribe the form and
270-7 content of an application for a permit and shall furnish the form
270-8 on request of an applicant.
270-9 (d) The applicant shall accurately complete all information
270-10 required by the application and provide the comptroller [treasurer]
270-11 with such additional information as the comptroller [treasurer]
270-12 deems necessary.
270-13 (e) The comptroller [treasurer] may require each
270-14 corporation, association, joint venture, syndicate, partnership, or
270-15 proprietorship to furnish financial information regarding the
270-16 applicant and to provide the identity of each officer, director,
270-17 stockholder owning 10 percent or more of the outstanding stock,
270-18 partner, member, owner, or managing employee.
270-19 (f) Each distributor, wholesaler, and retailer that applies
270-20 for a permit to sell cigarettes from a vehicle must provide the
270-21 make, model, vehicle identification number, registration number,
270-22 and any other information required by the comptroller [treasurer].
270-23 SECTION 19.34. Section 154.102(a), Tax Code, is amended to
270-24 read as follows:
270-25 (a) The comptroller [treasurer] may issue a combination
270-26 permit for cigarettes and tobacco products to a person who is a
270-27 distributor, wholesaler, bonded agent, or retailer as defined by
271-1 this chapter and Chapter 155 for both cigarettes and tobacco
271-2 products.
271-3 SECTION 19.35. Section 154.107, Tax Code, is amended to read
271-4 as follows:
271-5 Sec. 154.107. DENIAL OF PERMIT. The comptroller [treasurer]
271-6 may reject an application and deny a permit if the comptroller
271-7 [treasurer] finds, after notice and opportunity for hearing, any of
271-8 the following:
271-9 (1) the premises where business will be conducted are
271-10 not adequate to protect the cigarettes or cigarette stamps; or
271-11 (2) the applicant or managing employee, or if the
271-12 applicant is a corporation, an officer, director, manager, or any
271-13 stockholder who holds directly or through family or partner
271-14 relationship 10 percent or more of the corporation's stock, or, if
271-15 the applicant is a partnership, a partner or manager:
271-16 (A) has failed to disclose any information
271-17 required by Sections 154.101(d), (e), and (f), including prior
271-18 business experience, financial condition of the permit holder,
271-19 present or previous business affiliations, prior employment, and
271-20 any conviction of a felony, or has made a false statement in the
271-21 application; or
271-22 (B) has previously violated provisions of this
271-23 chapter.
271-24 SECTION 19.36. Sections 154.110(a) and (d), Tax Code, are
271-25 amended to read as follows:
271-26 (a) The comptroller [treasurer] shall issue a permit to a
271-27 distributor, wholesaler, bonded agent, or retailer if the
272-1 comptroller [treasurer]:
272-2 (1) has received an application and fee, if required;
272-3 (2) believes that the applicant has complied with
272-4 Section 154.101; and
272-5 (3) determines that issuing the permit will not
272-6 jeopardize the administration and enforcement of this chapter.
272-7 (d) The permit must indicate the type of permit that it is
272-8 and authorize the sale of cigarettes in this state. The permit
272-9 must show that it is revocable and shall be forfeited or suspended
272-10 if the conditions of issuance, provisions of this chapter, or rules
272-11 of the comptroller [treasurer] are violated.
272-12 SECTION 19.37. Sections 154.111(b), (d), and (f), Tax Code,
272-13 are amended to read as follows:
272-14 (b) An application for a permit required by this chapter
272-15 must be accompanied by a fee of:
272-16 (1) $100 for a bonded agent's permit;
272-17 (2) $100 for a distributor's permit;
272-18 (3) $50 for a wholesaler's permit; and
272-19 (4) $15 for each permit for a vehicle if the applicant
272-20 is also applying for a permit as a bonded agent, distributor, or
272-21 wholesaler or has received a current permit from the comptroller
272-22 [treasurer] under Sections 154.101 and 154.110.
272-23 (d) For a new or renewal permit required by Section 154.101,
272-24 the comptroller [treasurer] shall prorate the fee according to the
272-25 number of months remaining during the calendar year that the permit
272-26 is to be in effect.
272-27 (f) If at the date of issuance a permit will expire within
273-1 three months, the comptroller [treasurer] may collect the prorated
273-2 permit fee or the fee for the current year and, with the consent of
273-3 the permit holder, may collect the fee for the next permit year and
273-4 issue a permit or permits for both periods, as applicable.
273-5 SECTION 19.38. Section 154.1135(c), Tax Code, is amended to
273-6 read as follows:
273-7 (c) A permit may not be issued in exchange for a check until
273-8 after the comptroller [treasurer] has received full payment on the
273-9 check.
273-10 SECTION 19.39. Sections 154.114(a)-(e) and (g), Tax Code,
273-11 are amended to read as follows:
273-12 (a) The comptroller [treasurer] may suspend or revoke a
273-13 person's permit if the comptroller [treasurer] finds, after notice
273-14 and hearing as provided by this section, that the permit holder
273-15 violated this chapter or an administrative rule made under this
273-16 chapter.
273-17 (b) If the comptroller [treasurer] intends to suspend or
273-18 revoke a permit, the comptroller [treasurer] shall provide the
273-19 permit holder with written notice that includes a statement:
273-20 (1) of the reason for the intended revocation or
273-21 suspension;
273-22 (2) that the permit holder is entitled to a hearing by
273-23 the comptroller [treasurer] on the proposed suspension or
273-24 revocation of the permit; and
273-25 (3) of the date, time, and place of the hearing.
273-26 (c) The comptroller [treasurer] shall mail the written
273-27 notice by certified mail, return receipt requested, to the permit
274-1 holder's mailing address as it appears on the comptroller's
274-2 [treasurer's] records. Service by mail is complete when the notice
274-3 is received, as evidenced by return receipt from the U. S. Postal
274-4 Service.
274-5 (d) The comptroller [treasurer] shall give the permit holder
274-6 not less than 10 days' notice of a final hearing.
274-7 (e) A permit holder may appeal the decision of the
274-8 comptroller [treasurer] to a district court in Travis County not
274-9 later than the 30th day after the date the comptroller's
274-10 [treasurer's] decision becomes final.
274-11 (g) If the comptroller [treasurer] suspends or revokes a
274-12 permit, the comptroller [treasurer] shall provide written notice of
274-13 the suspension or revocation, within a reasonable time, to each
274-14 permit holder in the state. A permit holder violates Section
274-15 154.1015(a) by selling or distributing cigarettes to a person whose
274-16 permit has been suspended or revoked only after the permit holder
274-17 receives written notice of the suspension or revocation from the
274-18 comptroller [treasurer].
274-19 SECTION 19.40. Sections 154.1141(a), (b), and (e), Tax
274-20 Code, are amended to read as follows:
274-21 (a) The comptroller [treasurer] may suspend a person's
274-22 permit without notice or a hearing for the person's failure to
274-23 comply with this chapter or a rule adopted under this chapter if
274-24 the person's continued operation constitutes an immediate and
274-25 substantial threat to the collection of taxes imposed by this
274-26 chapter and attributable to the person's operation.
274-27 (b) If the comptroller [treasurer] summarily suspends a
275-1 person's permit, proceedings for a preliminary hearing before the
275-2 comptroller [treasurer] or the comptroller's [treasurer's]
275-3 representative must be initiated simultaneously with the summary
275-4 suspension. The preliminary hearing shall be set for a date not
275-5 later than 10 days after the date of the summary suspension, unless
275-6 the parties agree to a later date.
275-7 (e) To initiate a proceeding to suspend summarily a person's
275-8 permit, the comptroller [treasurer] shall serve notice on the
275-9 permit holder informing the permit holder of the right to a
275-10 preliminary hearing before the comptroller [treasurer] or the
275-11 comptroller's [treasurer's] representative and of the time and
275-12 place of the preliminary hearing. The notice must be personally
275-13 served on the permit holder or an officer, employee, or agent of
275-14 the permit holder or sent by certified or registered mail, return
275-15 receipt requested, to the permit holder's mailing address as it
275-16 appears in the comptroller's [treasurer's] records. The notice
275-17 must state the alleged violations that constitute the grounds for
275-18 summary suspension. The suspension is effective at the time the
275-19 notice is served. If the notice is served in person, the permit
275-20 holder shall immediately surrender the permit to the comptroller
275-21 [treasurer] or the comptroller's [treasurer's] representative. If
275-22 notice is served by mail, the permit holder shall immediately
275-23 return the permit to the comptroller [treasurer].
275-24 SECTION 19.41. Section 154.1145, Tax Code, is amended to
275-25 read as follows:
275-26 Sec. 154.1145. HEARINGS. Unless otherwise provided by this
275-27 chapter, the comptroller [treasurer] shall conduct all hearings
276-1 required by this chapter in accordance with Chapter 2001,
276-2 Government Code. The comptroller [treasurer] may designate one or
276-3 more representatives to conduct the hearings and may prescribe the
276-4 rules of procedure governing the hearings.
276-5 SECTION 19.42. Section 154.116, Tax Code, is amended to
276-6 read as follows:
276-7 Sec. 154.116. COMPTROLLER [TREASURER] MAY REFUSE TO SELL
276-8 STAMPS. The comptroller [treasurer] may refuse to sell stamps to a
276-9 person who has not obtained a distributor's permit or to a
276-10 distributor who does not have a valid permit.
276-11 SECTION 19.43. Section 154.201, Tax Code, is amended to
276-12 read as follows:
276-13 Sec. 154.201. RECORD OF PURCHASE OR RECEIPT. Each
276-14 distributor, wholesaler, bonded agent, and export warehouse shall
276-15 keep records at each place of business of all cigarettes purchased
276-16 or received, including records of those cigarettes for which no tax
276-17 is due under federal law. Each retailer shall keep records at a
276-18 single location, which the retailer shall designate as its
276-19 principal place of business in this state, of all cigarettes
276-20 purchased and received. These records must include:
276-21 (1) the name and address of the shipper or carrier and
276-22 the mode of transportation;
276-23 (2) all shipping records or copies of records,
276-24 including invoices, bills of lading, waybills, freight bills, and
276-25 express receipts;
276-26 (3) the date and the name of the place of origin of
276-27 the cigarette shipment;
277-1 (4) the date and the name of the place of arrival of
277-2 the cigarette shipment;
277-3 (5) a statement of the number, kind, and price paid
277-4 for cigarettes, including cigarettes in stamped and unstamped
277-5 packages;
277-6 (6) the name, address, permit number, and tax
277-7 identification number of the seller; and
277-8 (7) any other information required by rules of the
277-9 comptroller [treasurer].
277-10 SECTION 19.44. Section 154.202, Tax Code, is amended to
277-11 read as follows:
277-12 Sec. 154.202. RECORD OF STAMPS. (a) A distributor shall
277-13 keep at each place of business in this state the invoices for all
277-14 stamps purchased or received from the comptroller [treasurer] and
277-15 records providing complete information on stamps purchased and the
277-16 disposition of the stamps.
277-17 (b) The records must show:
277-18 (1) the date of receipt of stamps purchased;
277-19 (2) the beginning and ending serial numbers and the
277-20 quantity of stamps purchased;
277-21 (3) the design, color, or denomination of stamps
277-22 purchased;
277-23 (4) the amount paid for the stamps;
277-24 (5) if stamps were sold under Section 154.044, the
277-25 name of the purchaser, the beginning and ending numbers and
277-26 quantity of stamps purchased, and the design, color, or
277-27 denomination and amount paid for the stamps;
278-1 (6) the beginning and ending serial numbers and
278-2 quantity, design, color, or denomination of and amount paid for
278-3 stamps sent to or received from the comptroller [treasurer] as an
278-4 exchange; and
278-5 (7) the inventory of stamps on hand on the first day
278-6 of each month, showing the beginning and ending serial numbers and
278-7 quantity, design, color, or denomination of, and amount paid for,
278-8 the stamps.
278-9 SECTION 19.45. Section 154.204(b), Tax Code, is amended to
278-10 read as follows:
278-11 (b) A manufacturer who sells cigarettes to a permit holder
278-12 in this state shall file with the comptroller [treasurer], on or
278-13 before the end of each month, a report showing the information
278-14 listed in Subdivisions (1), (2), (3), and (5) of Subsection (a) for
278-15 the previous month. Information related to the manufacturer's list
278-16 prices must be submitted by the manufacturer 15 days prior to any
278-17 scheduled changes.
278-18 SECTION 19.46. Section 154.205, Tax Code, is amended to
278-19 read as follows:
278-20 Sec. 154.205. MANUFACTURER'S REPRESENTATIVE'S RECORDS. A
278-21 manufacturer's representative shall retain copies of the invoices
278-22 prepared for each purchase or sale of cigarettes from or to a
278-23 permittee of the state. The manufacturer's representative shall
278-24 deliver a copy of the invoice prepared for each sale of cigarettes
278-25 to the purchaser or recipient of the cigarettes. Such records
278-26 shall be available for inspection and copying by the comptroller
278-27 [treasurer] and attorney general for four years.
279-1 SECTION 19.47. Section 154.207(b), Tax Code, is amended to
279-2 read as follows:
279-3 (b) The comptroller [treasurer] and the attorney general are
279-4 entitled to access during regular business hours to all records
279-5 pertaining to cigarettes that are transported.
279-6 SECTION 19.48. Sections 154.209(a) and (c), Tax Code, are
279-7 amended to read as follows:
279-8 (a) Each permit holder shall keep records available for
279-9 inspection and copying by the comptroller [treasurer] and the
279-10 attorney general for four years.
279-11 (c) Each permit holder who is required to keep records under
279-12 this chapter shall provide the comptroller [treasurer] with copies
279-13 of the records on demand.
279-14 SECTION 19.49. Section 154.210, Tax Code, is amended to
279-15 read as follows:
279-16 Sec. 154.210. DISTRIBUTOR'S REPORT. (a) A distributor
279-17 shall deliver to the comptroller [treasurer], on or before the 15th
279-18 day of each month, a report for the preceding month.
279-19 (b) The report must show:
279-20 (1) the date the report was made;
279-21 (2) the distributor's name and address;
279-22 (3) the month the report covers;
279-23 (4) the number of cigarettes in stamped packages and
279-24 the number of cigarettes in unstamped packages on hand at the
279-25 beginning of the month;
279-26 (5) the number of cigarettes in stamped packages and
279-27 the number of cigarettes in unstamped packages purchased and
280-1 received during the month;
280-2 (6) the number of cigarettes in stamped packages and
280-3 the number of cigarettes in unstamped packages returned by
280-4 customers or received from any other source;
280-5 (7) the number of cigarettes in stamped packages and
280-6 the number of cigarettes in unstamped packages sold, used, lost,
280-7 stolen, returned to the factory, or disposed of in any other
280-8 manner;
280-9 (8) the number of cigarettes in stamped packages and
280-10 the number of cigarettes in unstamped packages on hand at the end
280-11 of the month;
280-12 (9) the number of cigarettes sold or distributed in
280-13 interstate commerce;
280-14 (10) the number of cigarettes sold or distributed in
280-15 intrastate commerce;
280-16 (11) the beginning and ending serial numbers, design,
280-17 color, or denomination of, and amount paid for, unused stamps on
280-18 hand at the beginning of the month;
280-19 (12) the beginning and ending serial numbers, design,
280-20 color, or denomination of, and amount paid for, stamps purchased
280-21 and received;
280-22 (13) the beginning and ending serial numbers, design,
280-23 color, or denomination of, and amount paid for, stamps sold, used,
280-24 lost, stolen, exchanged, returned, or disposed of in any other
280-25 manner;
280-26 (14) the beginning and ending serial numbers, design,
280-27 color, or denomination of, and amount paid for, stamps on hand at
281-1 the end of the month;
281-2 (15) a summary schedule, on a form prescribed by the
281-3 comptroller [treasurer], identifying each receipt of cigarettes,
281-4 the date of receipt, the shipper, the invoice number, and the
281-5 quantity of cigarettes received; and
281-6 (16) any other information the comptroller [treasurer]
281-7 requires relating to cigarettes and to the payment of taxes due on
281-8 them.
281-9 (c) The comptroller [treasurer] shall prescribe the form and
281-10 content of the report.
281-11 SECTION 19.50. Section 154.211(a), Tax Code, is amended to
281-12 read as follows:
281-13 (a) A person's failure to produce the records required by
281-14 this subchapter or a person's inability to provide other proof of
281-15 tax payment, on demand by the comptroller [treasurer], is prima
281-16 facie evidence that cigarettes possessed by the person were
281-17 received for the purpose of making a first sale without payment of
281-18 the tax imposed by this chapter.
281-19 SECTION 19.51. The heading to Subchapter G, Chapter 154,
281-20 Tax Code, is amended to read as follows:
281-21 SUBCHAPTER G. ADMINISTRATION BY COMPTROLLER [TREASURER]
281-22 SECTION 19.52. Section 154.301, Tax Code, is amended to
281-23 read as follows:
281-24 Sec. 154.301. COMPLIANCE INVESTIGATION AND RECOVERY OF
281-25 COSTS. (a) If the comptroller [treasurer] has reason to believe
281-26 that a person has failed to pay a tax or penalty in the proper
281-27 manner when due, as required by this chapter, or otherwise failed
282-1 to comply with this chapter, the comptroller [treasurer] may employ
282-2 auditors and investigators to determine compliance and any amount
282-3 due. If the comptroller [treasurer] determines that the person has
282-4 not paid the tax or penalty or has failed to comply with this
282-5 chapter, the comptroller [treasurer] may require the person to pay
282-6 the reasonable expenses incurred for the compliance investigation
282-7 and audit as an additional penalty.
282-8 (b) The comptroller [treasurer] shall deposit funds paid
282-9 under this section to the credit of the general revenue fund in the
282-10 treasury to be used for making audits, conducting investigations,
282-11 or as otherwise appropriated. The comptroller [treasurer] may use
282-12 other funds available for audits as appropriated by the
282-13 legislature.
282-14 SECTION 19.53. Section 154.302, Tax Code, is amended to
282-15 read as follows:
282-16 Sec. 154.302. PAYMENT OF DOUBLE AMOUNT. (a) If the
282-17 comptroller [treasurer] finds that a person has sold unstamped
282-18 cigarettes, the comptroller [treasurer] may require the person to
282-19 pay the state through the comptroller [treasurer] a sum equal to
282-20 twice the amount of stamp tax due.
282-21 (b) If the person does not furnish the comptroller
282-22 [treasurer] evidence that enough stamps were purchased to cover
282-23 unstamped cigarettes purchased, it is presumed that the cigarettes
282-24 were sold without the proper stamps.
282-25 SECTION 19.54. Section 154.304, Tax Code, is amended to
282-26 read as follows:
282-27 Sec. 154.304. INSPECTION. (a) To determine the tax
283-1 liability of a person dealing in cigarettes or compliance by the
283-2 person with this chapter, the comptroller [treasurer] may:
283-3 (1) inspect any premises, including a vending machine
283-4 and its contents, where cigarettes are manufactured, produced,
283-5 stored, transported, sold, or offered for sale or exchange;
283-6 (2) remain on the premises as long as necessary to
283-7 determine the tax liability or compliance with this chapter;
283-8 (3) examine the records required by this chapter or
283-9 other records, books, documents, papers, accounts, and objects that
283-10 the comptroller [treasurer] determines are necessary for conducting
283-11 a complete examination; and
283-12 (4) examine stocks of cigarettes and cigarette stamps.
283-13 (b) A person dealing in cigarettes may not:
283-14 (1) fail to produce, on the comptroller's
283-15 [treasurer's] demand, records required by this chapter; or
283-16 (2) hinder or prevent the inspection of records or the
283-17 examination of the premises.
283-18 SECTION 19.55. Section 154.305, Tax Code, is amended to
283-19 read as follows:
283-20 Sec. 154.305. REFUND FOR STAMPS. (a) The comptroller
283-21 [treasurer] may provide credit or a refund on stamps that are unfit
283-22 for sale or use because of damage and on unused stamps in broken or
283-23 unbroken sheets or rolls if the stamps were properly purchased and
283-24 paid for by the person requesting the refund.
283-25 (b) The comptroller [treasurer] shall make a refund under
283-26 this section from revenue collected under this chapter before the
283-27 revenue is allocated under Subchapter J.
284-1 SECTION 19.56. Section 154.306, Tax Code, is amended to
284-2 read as follows:
284-3 Sec. 154.306. EXCHANGE OF STAMPS. The comptroller
284-4 [treasurer] may exchange or replace, without cost, stamps affixed
284-5 to a package of cigarettes if the cigarettes have become unfit for
284-6 sale, use, or consumption and have been returned to the comptroller
284-7 [treasurer] or to the manufacturer.
284-8 SECTION 19.57. Section 154.307, Tax Code, is amended to
284-9 read as follows:
284-10 Sec. 154.307. RECORDS. The comptroller [treasurer] shall
284-11 keep a record of:
284-12 (1) stamps sold by the comptroller [treasurer] or
284-13 under the comptroller's [treasurer's] direction;
284-14 (2) stamps exchanged by the comptroller [treasurer];
284-15 and
284-16 (3) refunds made on stamps purchased.
284-17 SECTION 19.58. Section 154.308, Tax Code, is amended to
284-18 read as follows:
284-19 Sec. 154.308. DEFICIENCY DETERMINATION, PENALTIES, AND
284-20 INTEREST. (a) If the comptroller [treasurer] has reasonable cause
284-21 to believe that a tax report or the amount of tax paid is
284-22 inaccurate, the comptroller [treasurer] may compute and determine
284-23 the amount of tax, penalty, and interest to be paid from
284-24 information contained in the report or from any other information
284-25 available to the comptroller [treasurer].
284-26 (b) On making a deficiency determination, the comptroller
284-27 [treasurer] shall notify the person by certified mail, return
285-1 receipt requested. Service by mail is complete when the notice is
285-2 received, as evidenced by return receipt from the U.S. Postal
285-3 Service.
285-4 SECTION 19.59. Section 154.309, Tax Code, is amended to
285-5 read as follows:
285-6 Sec. 154.309. REDETERMINATION. (a) A person who receives
285-7 notice of a deficiency determination may submit a written request
285-8 to the comptroller [treasurer] for redetermination. If the person
285-9 desires a hearing, the request for a hearing must be included in
285-10 the written request for redetermination.
285-11 (b) A written request for redetermination must be filed at
285-12 the office of the comptroller [treasurer] not later than the 15th
285-13 working day after the date notice of deficiency is received. If a
285-14 written request for redetermination is not filed as required by
285-15 this subsection, the determination is final.
285-16 (c) On receipt of a written request for redetermination, the
285-17 comptroller [treasurer] shall:
285-18 (1) review the request for redetermination if a
285-19 hearing was not requested; or
285-20 (2) provide the person against whom the deficiency
285-21 determination was made with written notice of the time, place, and
285-22 date of a redetermination hearing.
285-23 (d) The comptroller [treasurer] shall give notice of a
285-24 redetermination hearing by certified mail, return receipt
285-25 requested. Service by mail is complete when the notice is
285-26 received, as evidenced by return receipt from the U.S. Postal
285-27 Service.
286-1 SECTION 19.60. Section 154.403, Tax Code, is amended to
286-2 read as follows:
286-3 Sec. 154.403. SEIZURE. (a) The comptroller [treasurer]
286-4 with or without process may seize:
286-5 (1) cigarettes taxed under this chapter that are
286-6 possessed or controlled by a person for the purpose of selling or
286-7 removing the cigarettes in violation of this chapter;
286-8 (2) cigarettes that are removed, deposited, or
286-9 concealed by a person intending to avoid payment of taxes imposed
286-10 by this chapter;
286-11 (3) an automobile, boat, conveyance, or other type of
286-12 vehicle used to remove or transport cigarettes by a person
286-13 intending to avoid payment of taxes imposed by this chapter; and
286-14 (4) equipment, paraphernalia, or other tangible
286-15 personal property used by a person intending to avoid payment of
286-16 taxes imposed by this chapter found in the place where the
286-17 cigarettes are found.
286-18 (b) An item seized under this section is forfeited to the
286-19 state and remains in the custody of the comptroller [treasurer] for
286-20 disposition as provided by this chapter. The seized item is not
286-21 subject to replevin.
286-22 SECTION 19.61. Section 154.404, Tax Code, is amended to
286-23 read as follows:
286-24 Sec. 154.404. COMPTROLLER'S [TREASURER'S] REPORT. (a) If
286-25 the comptroller [treasurer] seizes property under Section 154.403,
286-26 the comptroller [treasurer] shall immediately make a written report
286-27 showing:
287-1 (1) the name of the person making the seizure;
287-2 (2) the place where the property was seized;
287-3 (3) the person from whom the property was seized; and
287-4 (4) an inventory of the property seized.
287-5 (b) The comptroller [treasurer] shall prepare the report in
287-6 duplicate. The person who seized the property shall sign the
287-7 report. The comptroller [treasurer] shall give the original to the
287-8 person from whom the property was seized and shall file a duplicate
287-9 copy open for public inspection in the comptroller's [treasurer's]
287-10 office.
287-11 SECTION 19.62. Sections 154.4045(b), (d), and (e), Tax
287-12 Code, are amended to read as follows:
287-13 (b) If the seized cigarettes are in a salable condition, the
287-14 comptroller [treasurer] may sell the cigarettes, return the
287-15 cigarettes to the manufacturer for credit, or destroy or dispose of
287-16 the cigarettes.
287-17 (d) The comptroller [treasurer] shall place the proceeds
287-18 from the sale of seized cigarettes in escrow in a treasury suspense
287-19 account pending the outcome of the forfeiture proceeding provided
287-20 for in this chapter.
287-21 (e) If a determination is made that the comptroller
287-22 [treasurer] wrongfully seized the cigarettes, the person entitled
287-23 to the cigarettes at the time of seizure may recover the money held
287-24 in escrow in the treasury suspense account.
287-25 SECTION 19.63. Sections 154.405(b), (c), and (d), Tax Code,
287-26 are amended to read as follows:
287-27 (b) The comptroller [treasurer] shall give the notice by
288-1 certified mail, return receipt requested, not later than the 15th
288-2 day after the date of seizure and include with the notice an
288-3 inventory of the property seized and a statement of the date, time,
288-4 and place of a hearing on the seizure. Service by mail is complete
288-5 when the notice is received, as evidenced by return receipt from
288-6 the U.S. Postal Service.
288-7 (c) After providing the notice and a hearing under
288-8 Subsection (b), the comptroller [treasurer] may order the
288-9 forfeiture to the state of any property seized under this chapter
288-10 or the proceeds of the sale of any cigarettes seized under this
288-11 chapter if the property was used, controlled, possessed, or
288-12 concealed for the purpose of violating any provision of this
288-13 chapter.
288-14 (d) The comptroller [treasurer] shall hold property or
288-15 proceeds forfeited under this section in escrow until the
288-16 comptroller's [treasurer's] determination is final and the period
288-17 for filing a petition for judicial review has expired.
288-18 SECTION 19.64. Section 154.406, Tax Code, is amended to
288-19 read as follows:
288-20 Sec. 154.406. DISPOSITION OF FORFEITED PROPERTY. (a) The
288-21 comptroller [treasurer] may sell property forfeited to the state at
288-22 public or private sale in any commercially reasonable manner.
288-23 (b) Subject to the provisions of Section 154.413, the
288-24 comptroller [treasurer] shall deposit the sale proceeds, less
288-25 expenses of seizure, court costs, and any investigation and audit
288-26 costs, in the state treasury.
288-27 (c) The comptroller [treasurer] shall use the sale proceeds
289-1 to operate and administer the cigarette tax program up to the
289-2 amount appropriated by the legislature for this purpose. The
289-3 comptroller [treasurer] shall allocate any sale proceeds that
289-4 exceed the legislative appropriation as provided by Subchapter J.
289-5 Any unused appropriations remain in the general revenue fund.
289-6 SECTION 19.65. Section 154.411, Tax Code, is amended to
289-7 read as follows:
289-8 Sec. 154.411. WAIVER PERMITTED. (a) The comptroller
289-9 [treasurer] may waive a forfeiture proceeding for property seized
289-10 under Section 154.403 of this code if the owner or possessor of the
289-11 property:
289-12 (1) affixes the required stamp to the individual
289-13 packages of cigarettes; and
289-14 (2) in addition to the value of the stamps required to
289-15 be affixed, pays to the state through the comptroller [treasurer] a
289-16 sum equal to the value of the required stamps.
289-17 (b) The comptroller [treasurer] may make a compromise with a
289-18 person before or after a claim is filed in court. The comptroller
289-19 [treasurer] shall keep a record open for public inspection of
289-20 compromises and waivers of forfeiture made under this section.
289-21 SECTION 19.66. Section 154.412, Tax Code, is amended to
289-22 read as follows:
289-23 Sec. 154.412. PAYMENT TO TREASURY. The comptroller
289-24 [treasurer] shall deposit all taxes collected under Section
289-25 154.411, after payment of costs, in the treasury to be allocated as
289-26 provided by Subchapter J.
289-27 SECTION 19.67. Section 154.414(a), Tax Code, is amended to
290-1 read as follows:
290-2 (a) The comptroller [treasurer] may enter into a reciprocal
290-3 agreement with a tax official of another state or an official of
290-4 the United States allowing the exchange of information received by,
290-5 recorded by, prepared by, furnished to, or collected by the
290-6 comptroller [treasurer] with respect to the investigation and
290-7 enforcement of this chapter for any tax, penalty, interest, fine,
290-8 forfeiture, or offense.
290-9 SECTION 19.68. Section 154.415, Tax Code, is amended to read
290-10 as follows:
290-11 Sec. 154.415. GIFTS AND GRANTS [ADDITIONAL ENFORCEMENT
290-12 POWERS]. [(a) The treasurer has all of the rights and powers
290-13 granted the comptroller in Chapters 111 and 113 of this code with
290-14 respect to the tax imposed by this chapter. Those rights and
290-15 powers are in addition to those granted the treasurer in this
290-16 chapter.]
290-17 [(b)] The comptroller [treasurer] may accept gifts, grants,
290-18 and donations for the administration and enforcement of this
290-19 chapter.
290-20 SECTION 19.69. Section 154.501(a), Tax Code, is amended to
290-21 read as follows:
290-22 (a) A person violates this chapter if the person:
290-23 (1) is a distributor, wholesaler, manufacturer, bonded
290-24 agent, manufacturer's representative, or retailer and fails to keep
290-25 records required by this chapter;
290-26 (2) engages in the business of a bonded agent,
290-27 distributor, wholesaler, or retailer without a valid permit;
291-1 (3) is a distributor, wholesaler, manufacturer, bonded
291-2 agent, or retailer and fails to make a report or makes a false or
291-3 incomplete report or application required by this chapter to the
291-4 comptroller [treasurer]; or
291-5 (4) is a person affected by this chapter and fails or
291-6 refuses to abide by or violates a provision of this chapter or a
291-7 rule adopted by the comptroller [treasurer] under this chapter.
291-8 SECTION 19.70. Section 154.507, Tax Code, is amended to
291-9 read as follows:
291-10 Sec. 154.507. MISLEADING THE COMPTROLLER [TREASURER]. A
291-11 person commits an offense if the person misleads the comptroller
291-12 [treasurer] in the enforcement of this chapter.
291-13 SECTION 19.71. Section 154.508, Tax Code, is amended to
291-14 read as follows:
291-15 Sec. 154.508. REFUSING TO SURRENDER CIGARETTES. A person
291-16 commits an offense if the person refuses to surrender to the
291-17 comptroller [treasurer] on demand cigarettes possessed in violation
291-18 of this chapter.
291-19 SECTION 19.72. Section 154.5095, Tax Code, is amended to
291-20 read as follows:
291-21 Sec. 154.5095. FINGERPRINTS [ACCESS TO CRIMINAL HISTORY
291-22 INFORMATION]. [(b)] The comptroller [treasurer] may refuse to
291-23 grant a permit or may revoke or suspend a permit if the applicant
291-24 or permit holder fails, on request, to provide a complete set of
291-25 fingerprints required for searching the Federal Bureau of
291-26 Investigation identification division files.
291-27 SECTION 19.73. Section 154.512, Tax Code, is amended to
292-1 read as follows:
292-2 Sec. 154.512. INSPECTION OF PREMISES. A person commits an
292-3 offense if the person refuses to permit a complete inspection by an
292-4 authorized representative of the comptroller [treasurer] of any
292-5 premises where cigarettes are manufactured, produced, stored,
292-6 transported, sold, or offered for sale or exchange, or fails to
292-7 produce, on the comptroller's [treasurer's] demand, records
292-8 required by this chapter.
292-9 SECTION 19.74. Section 154.514, Tax Code, is amended to read
292-10 as follows:
292-11 Sec. 154.514. SALE OF STAMPS. A person commits an offense
292-12 if the person, without having the requisition from the comptroller
292-13 [treasurer] as provided by Section 154.044 of this code:
292-14 (1) purchases stamps from a person other than the
292-15 comptroller [treasurer]; or
292-16 (2) sells lawfully issued stamps to a person other
292-17 than the comptroller [treasurer].
292-18 SECTION 19.75. Section 154.516, Tax Code, is amended to read
292-19 as follows:
292-20 Sec. 154.516. BOOKS AND RECORDS. A person commits an
292-21 offense if the person:
292-22 (1) knowingly makes, delivers to, and files with the
292-23 comptroller [treasurer] a false return or report or an incomplete
292-24 return or report;
292-25 (2) knowingly fails to make and deliver to the
292-26 comptroller [treasurer] a return or report as required by this
292-27 chapter;
293-1 (3) destroys, mutilates, or conceals a book or record
293-2 required by this chapter;
293-3 (4) refuses to permit the attorney general or the
293-4 comptroller [treasurer] to inspect and audit books and records that
293-5 are required by this chapter or that are incidental to the conduct
293-6 of the cigarette business;
293-7 (5) knowingly makes a false entry or fails to make
293-8 entries in the books and records as required by this chapter; or
293-9 (6) fails to keep books and records for four years as
293-10 required by this chapter.
293-11 SECTION 19.76. Section 154.602, Tax Code, is amended to read
293-12 as follows:
293-13 Sec. 154.602. FUNDS FOR ENFORCEMENT. The legislature may
293-14 appropriate money from the cigarette tax to the comptroller
293-15 [treasurer] for manufacturing and printing of cigarette tax stamps
293-16 and for the administration of the duties of the comptroller
293-17 [treasurer] under this chapter. Amounts appropriated under this
293-18 subsection shall be taken from revenue received from the cigarette
293-19 tax before the revenue is allocated under Section 154.603 of this
293-20 code to the funds specified by that section and shall be deposited
293-21 to the credit of the treasury fiscal agency fund.
293-22 SECTION 19.77. Section 155.023(a), Tax Code, is amended to
293-23 read as follows:
293-24 (a) A distributor shall pay the tax on tobacco products
293-25 received for the purpose of making a first sale at the time the
293-26 distributor files the report required by Section 155.111. A
293-27 distributor shall pay the tax by cashier's check payable to the
294-1 comptroller [treasurer], by electronic funds transfer to the
294-2 comptroller [treasurer] or by any other method of payment
294-3 authorized by the comptroller [treasurer].
294-4 SECTION 19.78. Sections 155.041(a) and (c)-(f), Tax Code,
294-5 are amended to read as follows:
294-6 (a) A person may not engage in business as a distributor,
294-7 wholesaler, bonded agent, or retailer unless the person has applied
294-8 for and received the applicable permit from the comptroller
294-9 [treasurer].
294-10 (c) The comptroller [treasurer] shall prescribe the form and
294-11 content of an application for a permit and shall furnish the form
294-12 on request of an applicant.
294-13 (d) The applicant shall accurately complete all information
294-14 required by the application and provide the comptroller [treasurer]
294-15 with additional information the comptroller [treasurer] considers
294-16 necessary.
294-17 (e) The comptroller [treasurer] may require each
294-18 corporation, association, joint venture, syndicate, partnership, or
294-19 proprietorship to furnish financial information regarding the
294-20 applicant and to provide the identity of each officer, director,
294-21 stockholder owning 10 percent or more of the outstanding stock,
294-22 partner, member, owner, or managing employee.
294-23 (f) Each distributor, wholesaler, and retailer that applies
294-24 for a permit to sell tobacco products from a vehicle must provide
294-25 the make, model, vehicle identification number, registration
294-26 number, and any other information required by the comptroller
294-27 [treasurer].
295-1 SECTION 19.79. Section 155.045, Tax Code, is amended to read
295-2 as follows:
295-3 Sec. 155.045. COMBINATION PERMIT. The comptroller
295-4 [treasurer] may issue a combination permit for cigarettes and
295-5 tobacco products under Section 154.102. A person who receives a
295-6 combination permit is subject to the provisions of this chapter in
295-7 the same manner as a person holding a single permit under this
295-8 chapter.
295-9 SECTION 19.80. Sections 155.048(a) and (d), Tax Code, are
295-10 amended to read as follows:
295-11 (a) The comptroller [treasurer] shall issue a permit to a
295-12 distributor, wholesaler, bonded agent, or retailer if the
295-13 comptroller [treasurer]:
295-14 (1) has received an application and fee, if required;
295-15 (2) does not reject the application and deny the
295-16 permit under Section 155.0481; and
295-17 (3) determines that issuing the permit will not
295-18 jeopardize the administration and enforcement of this chapter.
295-19 (d) The permit must indicate the type of permit that it is
295-20 and authorize the sale of tobacco products in this state. The
295-21 permit must show that it is revocable and shall be forfeited or
295-22 suspended if the conditions of issuance, provisions of this
295-23 chapter, or rules of the comptroller [treasurer] are violated.
295-24 SECTION 19.81. Section 155.0481, Tax Code, is amended to
295-25 read as follows:
295-26 Sec. 155.0481. DENIAL OF PERMIT. The comptroller
295-27 [treasurer] may reject an application and deny a permit if the
296-1 comptroller [treasurer] finds, after notice and opportunity for
296-2 hearing, any of the following:
296-3 (1) the premises where business will be conducted are
296-4 not adequate to protect the tobacco products; or
296-5 (2) the applicant or managing employee, or, if the
296-6 applicant is a corporation, an officer, director, manager, or any
296-7 stockholder who holds directly or through family or partner
296-8 relationship 10 percent or more of the corporation's stock, or, if
296-9 the applicant is a partnership, a partner or manager:
296-10 (A) has failed to disclose any information
296-11 required by Sections 155.041(d), (e), and (f), including prior
296-12 business experience, financial condition of the permit holder,
296-13 present or previous business affiliations, prior employment, and
296-14 any conviction of a felony, or has made a false statement in the
296-15 application; or
296-16 (B) has previously violated provisions of this
296-17 chapter.
296-18 SECTION 19.82. Sections 155.049(b), (d), and (f), Tax Code,
296-19 are amended to read as follows:
296-20 (b) An application for a permit required by this chapter
296-21 must be accompanied by a fee of:
296-22 (1) $100 for a bonded agent's permit;
296-23 (2) $100 for a distributor's permit;
296-24 (3) $50 for a wholesaler's permit; and
296-25 (4) $15 for each permit for a vehicle if the applicant
296-26 is also applying for a permit as a bonded agent, distributor, or
296-27 wholesaler or has received a current permit from the comptroller
297-1 [treasurer] under Sections 155.041 and 155.048.
297-2 (d) For a new or renewal permit required by Section 155.041,
297-3 the comptroller [treasurer] shall prorate the fee according to the
297-4 number of months remaining during the calendar year that the permit
297-5 is to be in effect.
297-6 (f) If at the date of issuance a permit will expire within
297-7 three months, the comptroller [treasurer] may collect the prorated
297-8 permit fee or the fee for a current year and, with the consent of
297-9 the permit holder, may collect the fee for the next permit year and
297-10 issue a permit or permits for both periods, as applicable.
297-11 SECTION 19.83. Section 155.050(c), Tax Code, is amended to
297-12 read as follows:
297-13 (c) A permit may not be issued in exchange for a check until
297-14 after the comptroller [treasurer] has received full payment on the
297-15 check.
297-16 SECTION 19.84. Sections 155.059(a)-(e) and (g), Tax Code,
297-17 are amended to read as follows:
297-18 (a) The comptroller [treasurer] may revoke or suspend a
297-19 person's permit if the comptroller [treasurer] finds, after notice
297-20 and hearing as provided by this section, that the permit holder
297-21 violated this chapter or an administrative rule made under this
297-22 chapter.
297-23 (b) If the comptroller [treasurer] intends to suspend or
297-24 revoke a permit, the comptroller [treasurer] shall provide the
297-25 permit holder with written notice that includes a statement:
297-26 (1) of the reason for the intended revocation or
297-27 suspension;
298-1 (2) that the permit holder is entitled to a hearing by
298-2 the comptroller [treasurer] on the proposed suspension or
298-3 revocation; and
298-4 (3) of the date, time, and place of the hearing.
298-5 (c) The comptroller [treasurer] shall mail the written
298-6 notice by certified mail, return receipt requested, to the permit
298-7 holder's mailing address as it appears in the comptroller's
298-8 [treasurer's] records. Service by mail is complete when the notice
298-9 is received, as evidenced by the return receipt from the United
298-10 States Postal Service.
298-11 (d) The comptroller [treasurer] shall give the permit holder
298-12 not less than 10 days' notice of a final hearing.
298-13 (e) A permit holder may appeal the decision of the
298-14 comptroller [treasurer] to a district court in Travis County not
298-15 later than the 30th day after the date the comptroller's
298-16 [treasurer's] decision becomes final.
298-17 (g) If the comptroller [treasurer] suspends or revokes a
298-18 permit, the comptroller [treasurer] shall provide written notice of
298-19 the suspension or revocation, within a reasonable time, to each
298-20 permit holder in the state. A permit holder violates Section
298-21 155.0415(a) by selling or distributing tobacco products to a person
298-22 whose permit has been suspended or revoked only after the permit
298-23 holder receives written notice of the suspension or revocation from
298-24 the comptroller [treasurer].
298-25 SECTION 19.85. Sections 155.0591(a), (b), and (e), Tax Code,
298-26 are amended to read as follows:
298-27 (a) The comptroller [treasurer] may suspend a person's
299-1 permit without notice or a hearing for the person's failure to
299-2 comply with this chapter or a rule adopted under this chapter if
299-3 the person's continued operation constitutes an immediate and
299-4 substantial threat to the collection of taxes imposed by this
299-5 chapter and attributable to the person's operation.
299-6 (b) If the comptroller [treasurer] summarily suspends a
299-7 person's permit, proceedings for a preliminary hearing before the
299-8 comptroller [treasurer] or the comptroller's [treasurer's]
299-9 representative must be initiated simultaneously with the summary
299-10 suspension. The preliminary hearing shall be set for a date not
299-11 later than 10 days after the date of the summary suspension, unless
299-12 the parties agree to a later date.
299-13 (e) To initiate a proceeding to suspend summarily a person's
299-14 permit, the comptroller [treasurer] shall serve notice on the
299-15 permit holder informing the permit holder of the right to a
299-16 preliminary hearing before the comptroller [treasurer] or the
299-17 comptroller's [treasurer's] representative and of the time and
299-18 place of the preliminary hearing. The notice must be personally
299-19 served on the permit holder or an officer, employee, or agent of
299-20 the permit holder or sent by certified or registered mail, return
299-21 receipt requested, to the permit holder's mailing address as it
299-22 appears in the comptroller's [treasurer's] records. The notice
299-23 must state the alleged violations that constitute the grounds for
299-24 summary suspension. The suspension is effective at the time the
299-25 notice is served. If notice is served in person, the permit holder
299-26 shall immediately surrender the permit to the comptroller
299-27 [treasurer]. If notice is served by mail, the permit holder shall
300-1 immediately return the permit to the comptroller [treasurer].
300-2 SECTION 19.86. Section 155.0595, Tax Code, is amended to
300-3 read as follows:
300-4 Sec. 155.0595. HEARINGS. Unless otherwise provided by this
300-5 chapter, the comptroller [treasurer] shall conduct all hearings
300-6 required by this chapter in accordance with Chapter 2001,
300-7 Government Code. The comptroller [treasurer] may designate one or
300-8 more representatives to conduct the hearings and may prescribe the
300-9 rules of procedure governing the hearings.
300-10 SECTION 19.87. Section 155.101, Tax Code, is amended to read
300-11 as follows:
300-12 Sec. 155.101. RECORD OF PURCHASE OR RECEIPT. Each
300-13 distributor, wholesaler, bonded agent, and export warehouse shall
300-14 keep records at each place of business of all tobacco products
300-15 purchased or received. Each retailer shall keep records at a
300-16 single location, which the retailer shall designate as its
300-17 principal place of business in the state, of all tobacco products
300-18 purchased and received. These records must include:
300-19 (1) the name and address of the shipper or carrier and
300-20 the mode of transportation;
300-21 (2) all shipping records or copies of records,
300-22 including invoices, bills of lading, waybills, freight bills, and
300-23 express receipts;
300-24 (3) the date and the name of the place of origin of
300-25 the tobacco product shipment;
300-26 (4) the date and the name of the place of arrival of
300-27 the tobacco product shipment;
301-1 (5) a statement of the number, kind, and price paid
301-2 for the tobacco products;
301-3 (6) the name, address, permit number, and tax
301-4 identification number of the seller; and
301-5 (7) any other information required by rules of the
301-6 comptroller [treasurer].
301-7 SECTION 19.88. Section 155.103(b), Tax Code, is amended to
301-8 read as follows:
301-9 (b) A manufacturer who sells tobacco products to a permit
301-10 holder in this state shall file with the comptroller [treasurer],
301-11 on or before the 15th day of each month, a report showing the
301-12 information listed in Subsection (a) for the previous month.
301-13 SECTION 19.89. Section 155.107(b), Tax Code, is amended to
301-14 read as follows:
301-15 (b) The comptroller [treasurer] and the attorney general are
301-16 entitled to access during regular business hours to all records
301-17 pertaining to tobacco products that are transported.
301-18 SECTION 19.90. Sections 155.110(a) and (c), Tax Code, are
301-19 amended to read as follows:
301-20 (a) Each permit holder shall keep records available for
301-21 inspection and copying by the comptroller [treasurer] and the
301-22 attorney general for four years.
301-23 (c) Each permit holder who is required to keep records under
301-24 this chapter shall provide the comptroller [treasurer] with copies
301-25 of the records on demand.
301-26 SECTION 19.91. Section 155.111, Tax Code, is amended to read
301-27 as follows:
302-1 Sec. 155.111. DISTRIBUTOR'S REPORT. (a) A distributor
302-2 shall file with the comptroller [treasurer] on or before the 30th
302-3 day of each month, a report for the preceding month.
302-4 (b) The report must show:
302-5 (1) the date the report was made;
302-6 (2) the distributor's name and address;
302-7 (3) the month the report covers;
302-8 (4) the amount of tobacco products purchased,
302-9 received, and acquired;
302-10 (5) the amount of tobacco products sold, distributed,
302-11 used, lost, or otherwise disposed of;
302-12 (6) the amount of tobacco products on hand at the
302-13 beginning and the end of the month; and
302-14 (7) any other information the comptroller [treasurer]
302-15 requires relating to tobacco products and to the payment of taxes
302-16 due on them.
302-17 (c) The comptroller [treasurer] shall prescribe the form and
302-18 content of the report.
302-19 SECTION 19.92. Section 155.112(a), Tax Code, is amended to
302-20 read as follows:
302-21 (a) A person's failure to produce the records required by
302-22 this subchapter or a person's inability to provide other proof of
302-23 tax payment, on demand by the comptroller [treasurer], is prima
302-24 facie evidence that tobacco products possessed by the person were
302-25 received for the purpose of making a first sale without payment of
302-26 the tax imposed by this chapter.
302-27 SECTION 19.93. Section 155.141, Tax Code, is amended to read
303-1 as follows:
303-2 Sec. 155.141. GIFTS AND GRANTS [ENFORCEMENT POWERS].
303-3 [(a) The treasurer has all of the rights and powers granted the
303-4 comptroller in Chapters 111 and 113 of this code with respect to
303-5 the tax imposed by this chapter. Those rights and powers are in
303-6 addition to those granted the treasurer in this chapter.]
303-7 [(b)] The comptroller [treasurer] may accept gifts, grants,
303-8 and donations for the administration and enforcement of this
303-9 chapter.
303-10 SECTION 19.94. Section 155.143, Tax Code, is amended to read
303-11 as follows:
303-12 Sec. 155.143. SEIZURE. (a) The comptroller [treasurer]
303-13 with or without process may seize:
303-14 (1) tobacco products taxed under this chapter that are
303-15 possessed or controlled by a person for the purpose of selling or
303-16 removing the tobacco products in violation of this chapter;
303-17 (2) tobacco products that are removed, deposited, or
303-18 concealed by a person intending to avoid payment of taxes imposed
303-19 by this chapter;
303-20 (3) an automobile, truck, boat, conveyance, or other
303-21 type of vehicle used to remove or transport tobacco products by a
303-22 person intending to avoid payment of taxes imposed by this chapter;
303-23 and
303-24 (4) equipment, paraphernalia, or other tangible
303-25 personal property used by a person intending to avoid payment of
303-26 taxes imposed by this chapter found in the place where the tobacco
303-27 products are found.
304-1 (b) An item seized under this section is forfeited to the
304-2 state and remains in the custody of the comptroller [treasurer] for
304-3 disposition as provided by this chapter. The seized item is not
304-4 subject to replevin.
304-5 SECTION 19.95. Section 155.144, Tax Code, is amended to read
304-6 as follows:
304-7 Sec. 155.144. COMPTROLLER'S [TREASURER'S] REPORT. (a) If
304-8 the comptroller [treasurer] seizes property under Section 155.143,
304-9 the comptroller [treasurer] shall immediately make a written report
304-10 showing:
304-11 (1) the name of the person making the seizure;
304-12 (2) the place where the property was seized;
304-13 (3) the person from whom the property was seized; and
304-14 (4) an inventory of the property seized.
304-15 (b) The comptroller [treasurer] shall prepare the report in
304-16 duplicate. The person who seized the property shall sign the
304-17 report. The comptroller [treasurer] shall give the original to the
304-18 person from whom the property was seized and shall file a duplicate
304-19 copy open for public inspection in the comptroller's [treasurer's]
304-20 office.
304-21 SECTION 19.96. Sections 155.1445(b), (d), and (e), Tax Code,
304-22 are amended to read as follows:
304-23 (b) If the seized tobacco products are in a salable
304-24 condition, the comptroller [treasurer] may sell the tobacco
304-25 products, return the tobacco products to the manufacturer for
304-26 credit, or destroy or dispose of the tobacco products.
304-27 (d) The comptroller [treasurer] shall place the proceeds
305-1 from the sale of seized tobacco products in escrow in a treasury
305-2 suspense account, pending the outcome of the forfeiture proceeding
305-3 provided for in this chapter.
305-4 (e) If a determination is made that the comptroller
305-5 [treasurer] wrongfully seized the tobacco products, the person
305-6 entitled to the tobacco products at the time of seizure may recover
305-7 the money held in escrow in the treasury suspense account.
305-8 SECTION 19.97. Sections 155.145(b), (c), and (d), Tax Code,
305-9 are amended to read as follows:
305-10 (b) The comptroller [treasurer] shall give the notice by
305-11 certified mail, return receipt requested, not later than the 15th
305-12 day after the date of seizure and shall include with the notice an
305-13 inventory of the property seized and a statement of the date, time,
305-14 and place of a hearing on the seizure. Service by mail is complete
305-15 when the notice is received, as evidenced by return receipt from
305-16 the U.S. Postal Service.
305-17 (c) After providing the notice and a hearing under
305-18 Subsection (b), the comptroller [treasurer] may order the
305-19 forfeiture to the state of any property seized under this chapter
305-20 or the proceeds of the sale of any tobacco products seized under
305-21 this chapter if the comptroller [treasurer] finds that the property
305-22 was used, controlled, possessed, or concealed for the purpose of
305-23 violating any provision of this chapter.
305-24 (d) The comptroller [treasurer] shall hold property or
305-25 proceeds forfeited under this section in escrow until the
305-26 comptroller's [treasurer's] determination is final and the period
305-27 for filing a petition for judicial review has expired.
306-1 SECTION 19.98. Section 155.1451, Tax Code, is amended to
306-2 read as follows:
306-3 Sec. 155.1451. DISPOSITION OF FORFEITED PROPERTY. (a) The
306-4 comptroller [treasurer] may sell property forfeited to the state at
306-5 public or private sale in any commercially reasonable manner.
306-6 (b) Subject to the provisions of Section 155.153, the
306-7 comptroller [treasurer] shall deposit the sale proceeds, less
306-8 expenses of seizure, court costs, and any investigation and audit
306-9 costs, in the state treasury.
306-10 (c) The comptroller [treasurer] shall use the sale proceeds
306-11 to operate and administer the tobacco products tax program up to
306-12 the amount appropriated by the legislature for this purpose. The
306-13 comptroller [treasurer] shall allocate any sale proceeds that
306-14 exceed the legislative appropriation as provided by Subchapter H.
306-15 Any unused appropriations remain in the general revenue fund.
306-16 SECTION 19.99. Section 155.151, Tax Code, is amended to read
306-17 as follows:
306-18 Sec. 155.151. WAIVER PERMITTED. (a) The comptroller
306-19 [treasurer] may waive a forfeiture proceeding for property seized
306-20 under Section 155.143 of this code if the owner or possessor of the
306-21 property:
306-22 (1) pays the tax due; and
306-23 (2) pays to the state through the comptroller
306-24 [treasurer] an additional sum equal to the tax due.
306-25 (b) The comptroller [treasurer] may make a compromise with a
306-26 person before or after a claim is filed in court. The comptroller
306-27 [treasurer] shall keep a record open for public inspection of
307-1 compromises and waivers of forfeiture made under this section.
307-2 SECTION 19.100. Section 155.152, Tax Code, is amended to
307-3 read as follows:
307-4 Sec. 155.152. PAYMENT TO TREASURY. The comptroller
307-5 [treasurer] shall deposit all taxes collected under this chapter,
307-6 after payment of costs, in the treasury to be allocated as provided
307-7 by Subchapter H.
307-8 SECTION 19.101. Section 155.154, Tax Code, is amended to
307-9 read as follows:
307-10 Sec. 155.154. DONATIONS. The comptroller [treasurer] may
307-11 accept gifts, grants, and donations for the administration and
307-12 enforcement of this chapter.
307-13 SECTION 19.102. Section 155.155(a), Tax Code, is amended to
307-14 read as follows:
307-15 (a) The comptroller [treasurer] may enter into a reciprocal
307-16 agreement with a tax official of another state or an official of
307-17 the United States allowing the exchange of information received by,
307-18 recorded by, prepared by, furnished to, or collected by the
307-19 comptroller [treasurer] with respect to the investigation and
307-20 enforcement of this chapter for any tax, penalty, interest, fine,
307-21 forfeiture, or offense.
307-22 SECTION 19.103. The heading to Subchapter F, Chapter 155,
307-23 Tax Code, is amended to read as follows:
307-24 SUBCHAPTER F. ADMINISTRATION BY COMPTROLLER [TREASURER]
307-25 SECTION 19.104. Section 155.181, Tax Code, is amended to
307-26 read as follows:
307-27 Sec. 155.181. COMPLIANCE INVESTIGATION AND RECOVERY OF
308-1 COSTS. (a) If the comptroller [treasurer] has reason to believe
308-2 that a person has failed to pay a tax or penalty in the proper
308-3 manner when due or otherwise failed to comply with this chapter,
308-4 the comptroller [treasurer] may employ auditors and investigators
308-5 to determine compliance and any amount due. If the comptroller
308-6 [treasurer] determines that the person has not paid the tax or
308-7 penalty or has failed to comply with this chapter, the comptroller
308-8 [treasurer] may require the person to pay the reasonable expenses
308-9 incurred in the compliance investigation and audit as an additional
308-10 penalty.
308-11 (b) The comptroller [treasurer] shall deposit funds paid
308-12 under this section to the credit of the general revenue fund in the
308-13 treasury to be used for making audits, conducting investigations,
308-14 or as otherwise appropriated. The comptroller may use other funds
308-15 available for audits as appropriated by the legislature.
308-16 SECTION 19.105. Section 155.182, Tax Code, is amended to
308-17 read as follows:
308-18 Sec. 155.182. PAYMENT OF DOUBLE AMOUNT. (a) If the
308-19 comptroller [treasurer] finds that a person has sold tobacco
308-20 products without the tax having been paid, the comptroller
308-21 [treasurer] may require the person to pay the state through the
308-22 comptroller [treasurer] a sum equal to twice the amount of tax due.
308-23 (b) If a person does not furnish the comptroller [treasurer]
308-24 with any evidence showing payment of the tax on tobacco products
308-25 purchased by the person, it is presumed that the tobacco products
308-26 were sold without reporting and paying the tax.
308-27 SECTION 19.106. Section 155.183, Tax Code, is amended to
309-1 read as follows:
309-2 Sec. 155.183. INSPECTION. (a) To determine the tax
309-3 liability of a person dealing in tobacco products or compliance by
309-4 the person with this chapter, the comptroller [treasurer] may:
309-5 (1) inspect any premises, including a vending machine
309-6 and its contents, where tobacco products are manufactured,
309-7 produced, stored, transported, sold, or offered for sale or
309-8 exchange;
309-9 (2) remain on the premises as long as necessary to
309-10 determine the tax liability or compliance with this chapter;
309-11 (3) examine the records required by this chapter or
309-12 other records, books, documents, papers, accounts, and objects that
309-13 the comptroller [treasurer] determines are necessary for conducting
309-14 a complete examination; and
309-15 (4) examine stocks of tobacco products.
309-16 (b) A person dealing in tobacco products may not:
309-17 (1) fail to produce, on the comptroller's
309-18 [treasurer's] demand, records required by this chapter; or
309-19 (2) hinder or prevent the inspection of records or the
309-20 examination of the premises.
309-21 SECTION 19.107. Section 155.184, Tax Code, is amended to
309-22 read as follows:
309-23 Sec. 155.184. CREDIT FOR TAX PAID. (a) The comptroller
309-24 [treasurer] may adopt rules providing for a credit or refund for
309-25 tax paid on tobacco products if the tobacco products have become
309-26 unfit for use or consumption or unsalable.
309-27 (b) The comptroller [treasurer] may not allow a credit or
310-1 refund under this section unless the comptroller [treasurer] is
310-2 satisfied that the tobacco products are unfit for use or
310-3 consumption or unsalable or have been returned to the manufacturer.
310-4 SECTION 19.108. Section 155.185, Tax Code, is amended to
310-5 read as follows:
310-6 Sec. 155.185. DEFICIENCY DETERMINATION, PENALTIES, AND
310-7 INTEREST. (a) If the comptroller [treasurer] has reasonable cause
310-8 to believe that a tax report or the amount of tax is inaccurate,
310-9 the comptroller [treasurer] may compute and determine the amount of
310-10 tax, penalty, and interest to be paid from information contained in
310-11 the report or from any other information available to the
310-12 comptroller [treasurer].
310-13 (b) On making a deficiency determination, the comptroller
310-14 [treasurer] shall notify the person by certified mail, return
310-15 receipt requested. Service by mail is complete when the notice is
310-16 received, as evidenced by return receipt from the U.S. Postal
310-17 Service.
310-18 SECTION 19.109. Section 155.186, Tax Code, is amended to
310-19 read as follows:
310-20 Sec. 155.186. REDETERMINATION. (a) A person who receives
310-21 notice of a deficiency determination may submit a written request
310-22 to the comptroller [treasurer] for redetermination. If the person
310-23 desires a hearing, the request for a hearing must be included in
310-24 the written request for redetermination.
310-25 (b) A written request for redetermination must be filed at
310-26 the office of the comptroller [treasurer] not later than the 15th
310-27 working day after the date notice of deficiency is received. If a
311-1 written request for redetermination is not filed as required by
311-2 this subsection, the determination is final.
311-3 (c) On receipt of a written request for redetermination, the
311-4 comptroller [treasurer] shall:
311-5 (1) review the request for redetermination if a
311-6 hearing was not requested; or
311-7 (2) provide the person against whom the deficiency
311-8 determination was made with written notice of the time, place, and
311-9 date of a redetermination hearing.
311-10 (d) The comptroller [treasurer] shall give notice of a
311-11 redetermination hearing by certified mail, return receipt
311-12 requested. Service by mail is complete when the notice is
311-13 received, as evidenced by return receipt from the U.S. Postal
311-14 Service.
311-15 SECTION 19.110. Section 155.201(a), Tax Code, is amended to
311-16 read as follows:
311-17 (a) A person violates this chapter if the person:
311-18 (1) is a distributor, wholesaler, manufacturer, bonded
311-19 agent, manufacturer's representative, or retailer and fails to keep
311-20 records required by this chapter;
311-21 (2) engages in the business of a bonded agent,
311-22 distributor, wholesaler, or retailer without a valid permit;
311-23 (3) is a distributor, wholesaler, manufacturer, bonded
311-24 agent, or retailer and fails to make a report required by this
311-25 chapter to the comptroller [treasurer] or makes a false or
311-26 incomplete report or application required by this chapter to the
311-27 comptroller [treasurer]; or
312-1 (4) is a person affected by this chapter and fails or
312-2 refuses to abide by or violates a provision of this chapter or a
312-3 rule adopted by the comptroller [treasurer] under this chapter.
312-4 SECTION 19.111. Section 155.205, Tax Code, is amended to
312-5 read as follows:
312-6 Sec. 155.205. MISLEADING THE COMPTROLLER [TREASURER]. A
312-7 person commits an offense if the person misleads the comptroller
312-8 [treasurer] in the enforcement of this chapter.
312-9 SECTION 19.112. Section 155.206, Tax Code, is amended to
312-10 read as follows:
312-11 Sec. 155.206. REFUSING TO SURRENDER TOBACCO PRODUCTS. A
312-12 person commits an offense if the person refuses to surrender to the
312-13 comptroller [treasurer] on demand tobacco products possessed in
312-14 violation of this chapter.
312-15 SECTION 19.113. Section 155.2075, Tax Code, is amended to
312-16 read as follows:
312-17 Sec. 155.2075. FINGERPRINTS [ACCESS TO CRIMINAL HISTORY
312-18 INFORMATION]. [(b)] The comptroller [treasurer] may refuse to
312-19 grant a permit or may revoke or suspend a permit if the applicant
312-20 or permit holder fails, on request, to provide a complete set of
312-21 fingerprints required for searching the Federal Bureau of
312-22 Investigation Identification Division files.
312-23 SECTION 19.114. Section 155.209, Tax Code, is amended to
312-24 read as follows:
312-25 Sec. 155.209. TRANSPORTATION OF TOBACCO PRODUCTS. A person
312-26 commits an offense if the person:
312-27 (1) knowingly transports tobacco products taxed under
313-1 this chapter without the tax being paid;
313-2 (2) wilfully refuses to stop a motor vehicle operated
313-3 to transport tobacco products after a request to stop from an
313-4 authorized representative of the comptroller [treasurer]; or
313-5 (3) while transporting tobacco products, refuses to
313-6 permit a complete inspection of the cargo by an authorized
313-7 representative of the comptroller [treasurer].
313-8 SECTION 19.115. Section 155.210, Tax Code, is amended to
313-9 read as follows:
313-10 Sec. 155.210. INSPECTION OF PREMISES. A person commits an
313-11 offense if the person refuses to permit a complete inspection by an
313-12 authorized representative of the comptroller [treasurer] of any
313-13 premises where tobacco products are manufactured, produced, stored,
313-14 transported, sold, or offered for sale or exchange or fails to
313-15 produce, on the comptroller's [treasurer's] demand, records
313-16 required by this chapter.
313-17 SECTION 19.116. Section 155.212, Tax Code, is amended to
313-18 read as follows:
313-19 Sec. 155.212. BOOKS AND RECORDS. A person commits an
313-20 offense if the person:
313-21 (1) knowingly makes, delivers to, and files with the
313-22 comptroller [treasurer] a false return or an incomplete return or
313-23 report;
313-24 (2) knowingly fails to make and deliver to the
313-25 comptroller [treasurer] a return or report as required by this
313-26 chapter;
313-27 (3) destroys, mutilates, or conceals a book or record
314-1 required by this chapter;
314-2 (4) refuses to permit the attorney general or the
314-3 comptroller [treasurer] to inspect and audit books and records that
314-4 are required by this chapter or that are incidental to the conduct
314-5 of the tobacco products business;
314-6 (5) knowingly makes a false entry or fails to make
314-7 entries in the books and records required by this chapter; or
314-8 (6) fails to keep books and records for four years as
314-9 required by this chapter.
314-10 SECTION 19.117. Section 182.082, Tax Code, is amended to
314-11 read as follows:
314-12 Sec. 182.082. TAX PAYMENTS: DUE DATE. Except as provided
314-13 in Section 182.083 of this code, the taxes imposed by this chapter
314-14 are due and payable to the comptroller [treasurer] on the last day
314-15 of January, April, July, and October of each year.
314-16 SECTION 19.118. Section 182.083(a), Tax Code, is amended to
314-17 read as follows:
314-18 (a) Except as provided in Subsection (b) of this section, if
314-19 a person taxed under this chapter begins business on or after the
314-20 first day of the quarter, then in lieu of the gross receipts tax
314-21 provided for in this chapter, the tax for that quarter is $50,
314-22 payable to the comptroller [treasurer] in advance.
314-23 SECTION 19.119. Section 191.101(a), Tax Code, is amended to
314-24 read as follows:
314-25 (a) The receipt from the comptroller [treasurer] for tax
314-26 payment is the permit to do business unless a separate permit is
314-27 required by law.
315-1 SECTION 19.120. Section 201.202, Tax Code, is amended to
315-2 read as follows:
315-3 Sec. 201.202. PAYMENT OF TAX. The tax imposed by this
315-4 chapter must be paid by legal tender or cashier's check payable to
315-5 the comptroller [state treasurer].
315-6 SECTION 19.121. Section 202.152, Tax Code, is amended to
315-7 read as follows:
315-8 Sec. 202.152. PAYMENT OF TAX. The tax imposed by this
315-9 chapter must be paid by legal tender or cashier's check payable to
315-10 the comptroller [state treasurer].
315-11 SECTION 19.122. Section 203.053, Tax Code, is amended to
315-12 read as follows:
315-13 Sec. 203.053. WHEN TAX DUE. The tax imposed by this chapter
315-14 for each quarter is due at the time that the report required by
315-15 Section 203.052 of this code is required to be filed for the
315-16 quarter. Payment shall be to the comptroller [treasurer].
315-17 SECTION 19.123. Section 321.501(a), Tax Code, is amended to
315-18 read as follows:
315-19 (a) The comptroller shall deposit the taxes collected by the
315-20 comptroller under this chapter [with the state treasurer. The
315-21 treasurer shall keep the deposits] in trust in the separate
315-22 suspense account of the municipality from which the taxes were
315-23 collected.
315-24 SECTION 19.124. Section 321.505, Tax Code, is amended to
315-25 read as follows:
315-26 Sec. 321.505. INTEREST ON TRUST ACCOUNT. Interest earned on
315-27 all deposits made with the comptroller [state treasurer] under
316-1 Section 321.501, including interest earned from retained suspense
316-2 accounts, shall be credited to the general revenue fund.
316-3 SECTION 19.125. Section 322.305, Tax Code, is amended to
316-4 read as follows:
316-5 Sec. 322.305. INTEREST ON TRUST ACCOUNTS. Interest earned
316-6 on all deposits made with the comptroller [state treasurer] under
316-7 this chapter, including interest earned on retained accounts, shall
316-8 be credited to the general revenue fund.
316-9 SECTION 19.126. Section 323.501(a), Tax Code, is amended to
316-10 read as follows:
316-11 (a) The comptroller shall deposit the taxes collected by the
316-12 comptroller under this chapter [with the state treasurer. The
316-13 treasurer shall keep the deposits] in trust in the separate
316-14 suspense account of the county from which the taxes were collected.
316-15 SECTION 19.127. Section 323.5041, Tax Code, is amended to
316-16 read as follows:
316-17 Sec. 323.5041. INTEREST ON TAX REVENUE. Interest earned on
316-18 all deposits made with the comptroller [state treasurer] under this
316-19 chapter, including interest earned from the suspense accounts
316-20 retained under Section 323.504, shall be credited to the general
316-21 revenue fund.
316-22 SECTION 19.128. Sections 111.1041 and 112.151(f), Tax Code,
316-23 are repealed.
316-24 ARTICLE 20. CHANGES TO WATER CODE
316-25 SECTION 20.01. Section 11.329(d), Water Code, is amended to
316-26 read as follows:
316-27 (d) The executive director shall transmit all collections
317-1 under this section to the comptroller [State Treasurer].
317-2 SECTION 20.02. Section 15.218(c), Water Code, is amended to
317-3 read as follows:
317-4 (c) The state comptroller [and the state treasurer] on
317-5 request shall provide to the board all information and assistance
317-6 necessary for the board to prepare this report.
317-7 SECTION 20.03. Section 15.603(g), Water Code, is amended to
317-8 read as follows:
317-9 (g) The revolving fund and any accounts established in the
317-10 revolving fund shall be kept and maintained by or at the direction
317-11 of the board and do not constitute and are not a part of the State
317-12 Treasury. However, at the direction of the board, the revolving
317-13 fund or accounts in the revolving fund may be kept and held in
317-14 escrow and in trust by the comptroller [State Treasurer] for and on
317-15 behalf of the board, shall be used only as provided by this
317-16 subchapter, and pending such use shall be invested in authorized
317-17 investments as provided by any order, resolution, or rule of the
317-18 board. Legal title to money and investments in the revolving fund
317-19 is in the board unless or until paid out as provided by this
317-20 subchapter, the federal act, and the rules of the board. The
317-21 comptroller [State Treasurer], as custodian, shall administer the
317-22 funds strictly and solely as provided by this subchapter and in the
317-23 orders, resolutions, and rules, and the state shall take no action
317-24 with respect to the revolving fund other than that specified in
317-25 this subchapter, the federal act, and the rules of the board.
317-26 SECTION 20.04. Sections 15.732(c) and (e), Water Code, are
317-27 amended to read as follows:
318-1 (c) At the direction of the board, the fund or accounts in
318-2 the fund may be kept and held in escrow and in trust by the
318-3 comptroller [state treasurer] for and on behalf of the board. If
318-4 the fund or accounts in the fund are held in escrow and in trust by
318-5 the comptroller [state treasurer], the fund or accounts may be used
318-6 only as provided by this subchapter and, pending their use, shall
318-7 be invested in authorized investments as provided by any order,
318-8 resolution, or rule of the board.
318-9 (e) The comptroller [state treasurer], as custodian, shall
318-10 administer the funds strictly and solely as provided by this
318-11 subchapter and in the orders, resolutions, and rules of the board,
318-12 and the state shall take no action with respect to the fund other
318-13 than that specified in this subchapter, an agreement made with the
318-14 Environmental Protection Agency or another federal agency,
318-15 applicable federal requirements, and the rules of the board.
318-16 SECTION 20.05. Section 17.027, Water Code, is amended to
318-17 read as follows:
318-18 Sec. 17.027. PAYMENT BY COMPTROLLER [TREASURER]. The
318-19 comptroller [State Treasurer] shall pay the principal of the bonds
318-20 as they mature and the interest as it becomes payable.
318-21 SECTION 20.06. Section 17.080, Water Code, is amended to
318-22 read as follows:
318-23 Sec. 17.080. ADDITIONAL FUNDS FOR PAYMENT OF BONDS. (a) If
318-24 the amount transferred from the clearance fund plus the money and
318-25 securities in the interest and sinking fund are insufficient to pay
318-26 the interest coming due and the principal maturing on the bonds
318-27 during the fiscal year, then after the transfer to the interest and
319-1 sinking fund of as much money as is available in the clearance
319-2 fund, the comptroller [State Treasurer] shall transfer out of the
319-3 first money coming into the treasury, not otherwise appropriated by
319-4 the constitution, the amount required to pay principal and interest
319-5 on the bonds during the fiscal year, except for those bonds
319-6 dedicated pursuant to Section 17.0111 of this code.
319-7 (b) If the amount transferred from the economically
319-8 distressed areas clearance fund plus the money and securities in
319-9 the economically distressed areas interest and sinking fund are
319-10 insufficient to pay the interest coming due and the principal
319-11 maturing on the bonds dedicated pursuant to Section 17.0111 of this
319-12 code during the fiscal year, then after the transfer to the
319-13 economically distressed areas interest and sinking fund of as much
319-14 money as is available in the economically distressed areas
319-15 clearance fund, the comptroller [State Treasurer] shall transfer
319-16 out of the first money coming into the treasury, not otherwise
319-17 appropriated by the constitution, the amount required to pay
319-18 principal and interest on the bonds during the fiscal year.
319-19 SECTION 20.07. Section 17.886, Water Code, is amended to
319-20 read as follows:
319-21 Sec. 17.886. PAYMENT AND TRANSFERS BY [TREASURER, TRANSFERS
319-22 BY] COMPTROLLER. (a) The comptroller [state treasurer] shall pay
319-23 the principal of the bonds as they mature and the interest on the
319-24 bonds as it becomes due.
319-25 (b) If the money and securities in the interest and sinking
319-26 fund are insufficient to pay the interest that is due and the
319-27 principal maturing on the bonds during the fiscal year, the
320-1 comptroller [state treasurer] shall transfer out of the first money
320-2 coming into the treasury, not otherwise appropriated by the
320-3 constitution, the amount required to pay principal of and interest
320-4 on the bonds during the fiscal year.
320-5 (c) The comptroller shall make the transfers required by the
320-6 board's bond resolution or order and this subchapter.
320-7 SECTION 20.08. Section 20.108(f), Water Code, is amended to
320-8 read as follows:
320-9 (f) The comptroller [state treasurer], as custodian of any
320-10 of the funds, shall administer the funds solely and strictly as
320-11 provided by this chapter and the resolutions or orders authorizing
320-12 the bonds, and the state may not take any other action relating to
320-13 any of those funds except those specified in this chapter and the
320-14 resolutions and orders authorizing the bonds.
320-15 SECTION 20.09. Section 20.111(a), Water Code, is amended to
320-16 read as follows:
320-17 (a) Bonds may not be issued under this section unless the
320-18 issuance has been reviewed and approved by the bond review board.
320-19 The bond review board is composed of:
320-20 (1) the governor;
320-21 (2) the lieutenant governor;
320-22 (3) the speaker of the house of representatives; and
320-23 (4) the [state treasurer; and]
320-24 [(5) the] comptroller of public accounts.
320-25 SECTION 20.10. Section 36.307, Water Code, is amended to
320-26 read as follows:
320-27 Sec. 36.307. ASSETS ESCHEAT TO STATE. Upon the dissolution
321-1 of a district by the commission, all assets of the district shall
321-2 escheat to the State of Texas. The assets shall be administered by
321-3 the comptroller [state treasurer] and shall be disposed of in the
321-4 manner provided by Chapter 72, Property Code.
321-5 SECTION 20.11. Section 49.327, Water Code, is amended to
321-6 read as follows:
321-7 Sec. 49.327. ASSETS ESCHEAT TO STATE. Upon the dissolution
321-8 of a district by the commission, all assets of the district shall
321-9 escheat to the State of Texas. The assets shall be administered by
321-10 the comptroller [state treasurer] and shall be disposed of in the
321-11 manner provided by Chapter 74, Property Code.
321-12 ARTICLE 21. CHANGES TO VERNON'S TEXAS CIVIL STATUTES
321-13 SECTION 21.01. Section 22A(b), Public Accountancy Act of
321-14 1991 (Article 41a-1, Vernon's Texas Civil Statutes), is amended to
321-15 read as follows:
321-16 (b) A special fund is established for the exclusive use of
321-17 the board to be known as the public accountancy enforcement fund.
321-18 The fund may be used only to finance the enforcement functions
321-19 performed under this Act. Money received by the board from a fee
321-20 increase adopted under Section 9(g) of this Act and money related
321-21 to an administrative penalty and received by the board under
321-22 Section 21D of this Act shall be deposited in the fund. The
321-23 comptroller [state treasurer] is the custodian of the fund. The
321-24 comptroller shall issue warrants from the fund supported only by
321-25 vouchers signed by the chairman and the executive director. The
321-26 fund shall be appropriated to the board by the legislature.
321-27 SECTION 21.02. Section 37(e), Bingo Enabling Act (Article
322-1 179d, Vernon's Texas Civil Statutes), is amended to read as
322-2 follows:
322-3 (e) If on the sale the money received exceeds the total of
322-4 all amounts, including interest, penalties, and costs due the
322-5 state, the commission shall return the excess to the person liable
322-6 for the amounts and obtain his receipt. If any person having an
322-7 interest in or lien on the property files with the commission
322-8 before the sale notice of his interest or lien, the commission
322-9 shall withhold any excess pending a determination of the rights of
322-10 the respective parties thereto by a court of competent
322-11 jurisdiction. If for any reason the receipt of the person liable
322-12 for the amount is not available, the commission shall deposit the
322-13 excess money with the comptroller [state treasurer], as trustee for
322-14 the owner, subject to the order of the person liable for the
322-15 amount, or the person's heirs, successors, or assigns.
322-16 SECTION 21.03. Section 4(a), Chapter 478, Acts of the 45th
322-17 Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas
322-18 Civil Statutes), is amended to read as follows:
322-19 (a) All fees collected or money derived under the provisions
322-20 of this Act shall be received and accounted for by the
322-21 secretary-treasurer. All of these funds which are received shall
322-22 be paid weekly to the State Comptroller [State Treasurer], who
322-23 shall keep this money in a separate fund to be known as the
322-24 Architectural Examiners Fund. This fund may be used only for the
322-25 administration of the powers and duties of the Board and shall be
322-26 paid out only by warrants of the State Comptroller, upon itemized
322-27 vouchers, approved by the chairman or acting chairman and attested
323-1 by the secretary-treasurer of the Board. Disbursements shall not
323-2 in any way be a charge upon the General Revenue Fund of this State.
323-3 SECTION 21.04. Section 7.103(b), Texas Banking Act (Article
323-4 342-7.103, Vernon's Texas Civil Statutes), is amended to read as
323-5 follows:
323-6 (b) If the property is not removed by the date specified in
323-7 the notices or by the banking commissioner, an officer of the bank,
323-8 in the presence of a notary public who is not an officer or
323-9 employee of the bank and who is bonded in an amount and by sureties
323-10 approved by the banking commissioner, shall inventory the property
323-11 and may open a safe, vault, or box, or any package, parcel, or
323-12 receptacle, in the custody or possession of the bank, to make the
323-13 inventory. The property shall be marked to identify, to the extent
323-14 possible, its owner or the person who left it with the bank. After
323-15 all property belonging to others that is in the bank's custody and
323-16 control has been inventoried, a master list certified by the bank
323-17 officer and the notary public shall be furnished to the banking
323-18 commissioner. The master list shall be kept in a place and dealt
323-19 with in a manner the banking commissioner specifies pending
323-20 delivery of the property to its owner or to the comptroller [state
323-21 treasurer] as unclaimed property.
323-22 SECTION 21.05. Sections 7.105(b) and (c), Texas Banking Act
323-23 (Article 342-7.105, Vernon's Texas Civil Statutes), are amended to
323-24 read as follows:
323-25 (b) The list, accompanied by any necessary identifying
323-26 information, shall be filed with the banking commissioner. The
323-27 bank shall pay any unclaimed funds and deliver any unclaimed
324-1 property to the comptroller [state treasurer] as provided by
324-2 Chapter 74, Property Code, and certify to the banking commissioner
324-3 that the unclaimed funds and property have been paid or delivered.
324-4 (c) After the banking commissioner has reviewed the list and
324-5 has reconciled the unclaimed cash and property with the amounts of
324-6 money and property reported and transferred to the comptroller
324-7 [state treasurer], the banking commissioner shall allow the bank to
324-8 distribute the bank's remaining assets, if any, among its
324-9 shareholders, participants, or participant-transferees as their
324-10 ownership interests appear.
324-11 SECTION 21.06. Section 7.209(a), Texas Banking Act (Article
324-12 342-7.209, Vernon's Texas Civil Statutes), is amended to read as
324-13 follows:
324-14 (a) The receiver may deposit funds collected on behalf of
324-15 the bank estate in:
324-16 (1) the Texas Treasury Safekeeping Trust Company in
324-17 accordance with procedures established by the comptroller [state
324-18 treasurer] or successor official; or
324-19 (2) one or more state banks in this state, the
324-20 deposits of which are insured by the Federal Deposit Insurance
324-21 Corporation or its successor, if the receiver, using sound
324-22 financial judgment, determines that it would be advantageous to do
324-23 so.
324-24 SECTION 21.07. Section 7.314, Texas Banking Act (Article
324-25 342-7.314, Vernon's Texas Civil Statutes), is amended to read as
324-26 follows:
324-27 Sec. 7.314. UNCLAIMED FUNDS AND PROPERTY. After completion
325-1 of the liquidation, any unclaimed property remaining in the hands
325-2 of the receiver shall be tendered to the comptroller [state
325-3 treasurer] as provided by Chapter 74, Property Code.
325-4 SECTION 21.08. Sections 5B(a), (e), (f), (g), and (h),
325-5 Chapter 512, Acts of the 54th Legislature, Regular Session, 1955
325-6 (Article 548b, Vernon's Texas Civil Statutes), are amended to read
325-7 as follows:
325-8 (a) Funds paid by a purchaser of a prepaid funeral benefits
325-9 contract are personal property subject to presumption of
325-10 abandonment and delivery to the comptroller [state treasurer] under
325-11 Title 6, Property Code. In the event of a conflict between the
325-12 provisions of that title and this section, this section controls.
325-13 (e)(1) Each seller that on June 30 holds funds that are
325-14 presumed abandoned under Subsection (b) of this section shall
325-15 furnish the Commissioner with an acknowledged written notice of the
325-16 abandoned funds not later than the following October 1. The
325-17 seller's notice shall, for each abandoned contract, include the
325-18 name and address, if known, of each person who appears to be the
325-19 purchaser or the beneficiary of the contract; the identification
325-20 number, if any, of the contract; the total amount paid on the
325-21 contract; the amount paid on the contract and held at the
325-22 depository; and the earnings of the contract. The notice shall
325-23 also contain a statement by the seller recognizing the seller's
325-24 obligation and intent to deliver the abandoned funds to the
325-25 comptroller [state treasurer] in accordance with this section.
325-26 (2) The Commissioner shall, within 15 days after the
325-27 date of the receipt of the seller's notice, authorize in writing
326-1 the seller to withdraw the funds specified in the seller's notice
326-2 that are presumed abandoned under Subsection (b) of this section,
326-3 and subject to Subdivision (3) of this subsection, to withdraw and
326-4 retain the funds specified in the seller's notice that represent
326-5 the earnings attributable to the abandoned funds. The seller shall
326-6 deliver to the comptroller [state treasurer] not later than the
326-7 following November 1 the abandoned funds and the report required to
326-8 be filed under Chapter 74, Property Code.
326-9 (3) The Commissioner may refuse to authorize the
326-10 withdrawal of the funds representing the earnings attributable to
326-11 the abandoned funds only if:
326-12 (A) the seller's permit to sell prepaid funeral
326-13 benefits has been cancelled or not renewed by the Department;
326-14 (B) the seller is the subject of a pending
326-15 proceeding brought by the Department under Section 13,
326-16 Administrative Procedure and Texas Register Act (Article 6252-13a,
326-17 Vernon's Texas Civil Statutes), and its subsequent amendments, to
326-18 cancel the seller's permit to sell prepaid funeral benefits; or
326-19 (C) the Department has determined from an
326-20 examination of the seller's records that the seller has made
326-21 withdrawals from accounts maintained by the seller that were not
326-22 authorized under this Act, and has previously given written notice
326-23 to the seller of that determination.
326-24 (4) If the Commissioner does not authorize the seller
326-25 to withdraw the funds representing the earnings attributable to the
326-26 abandoned funds because of the existence of a condition described
326-27 by Subdivision (3) of this subsection, the Commissioner shall, not
327-1 later than the 15th day after the date of the receipt of the
327-2 seller's notice to the Commissioner under Subdivision (1) of this
327-3 subsection, give written notice to the seller that states the
327-4 condition that exists. If the Commissioner notifies the seller
327-5 that the Commissioner does not authorize the seller's withdrawal of
327-6 earnings on the basis of Subdivision (3)(B) of this subsection and
327-7 if the Department or a court of competent jurisdiction subsequently
327-8 determines that the seller's permit should not be cancelled, the
327-9 seller is entitled to withdraw and retain all of the earnings
327-10 attributable to the abandoned funds. If the Commissioner notifies
327-11 the seller that the Commissioner does not authorize the seller's
327-12 withdrawal of earnings on the basis of Subdivision (3)(C) of this
327-13 subsection, the seller, upon depositing in the accounts the amount
327-14 of the unauthorized withdrawals, is entitled to withdraw and retain
327-15 all of the earnings attributable to the abandoned funds.
327-16 (f) A seller who reports and delivers funds to the
327-17 comptroller [state treasurer] under this section is relieved of all
327-18 obligations and liabilities under the prepaid funeral benefits
327-19 contract. The prepaid funeral benefits contract is considered to
327-20 be cancelled by the purchaser of the contract and all obligations
327-21 and liabilities of and claims against the seller and any funeral
327-22 home obligated to provide prepaid funeral benefits under the
327-23 contract are discharged and released.
327-24 (g) A seller who delivers funds to the comptroller [state
327-25 treasurer] under this section shall be indemnified under Section
327-26 74.304, Property Code, for any claim that may be made with respect
327-27 to the property.
328-1 (h) The comptroller [state treasurer] is not liable to the
328-2 purchaser or beneficiary of a prepaid funeral benefits contract
328-3 presumed abandoned under this section except to the extent of funds
328-4 attributable to the contract that are delivered to the comptroller
328-5 [state treasurer]. The comptroller [state treasurer] is not
328-6 obligated to perform the seller's duties under an abandoned prepaid
328-7 funeral benefits contract. A purchaser's or beneficiary's sole
328-8 recourse after a seller has reported and delivered funds to the
328-9 comptroller [state treasurer] is to file a claim with the
328-10 comptroller [state treasurer] as provided by Chapter 74, Property
328-11 Code.
328-12 SECTION 21.09. Section 8A(b), Chapter 512, Acts of the 54th
328-13 Legislature, Regular Session, 1955 (Article 548b, Vernon's Texas
328-14 Civil Statutes), is amended to read as follows:
328-15 (b) The fund may be deposited with the comptroller [state
328-16 treasurer], a state or national bank in this state, or a savings
328-17 and loan association in this state, or placed with the trust
328-18 department in a state or national bank in this state or in a trust
328-19 company authorized to do business in this state. If the fund is
328-20 deposited with the comptroller [state treasurer], the comptroller
328-21 [state treasurer] shall manage the fund as trustee of funds outside
328-22 the treasury. The Department may use any earnings from the fund
328-23 for the expenses of operating and maintaining the fund.
328-24 SECTION 21.10. Section 23(c), Texas Public Finance Authority
328-25 Act (Article 601d, Vernon's Texas Civil Statutes), is amended to
328-26 read as follows:
328-27 (c) The comptroller [state treasurer] shall invest, with the
329-1 concurrence of the board, the unexpended bond proceeds and
329-2 investment income thereon in investments approved by law for the
329-3 investment of state funds.
329-4 SECTION 21.11. Section 2(a), Chapter 696, Acts of the 70th
329-5 Legislature, Regular Session, 1987 (Article 601d-1, Vernon's Texas
329-6 Civil Statutes), is amended to read as follows:
329-7 (a) The bond review board is composed of:
329-8 (1) the governor;
329-9 (2) the lieutenant governor;
329-10 (3) the speaker of the house of representatives; and
329-11 (4) [the State Treasurer; and]
329-12 [(5)] the comptroller of public accounts.
329-13 SECTION 21.12. Section 5(d), Chapter 696, Acts of the 70th
329-14 Legislature, Regular Session, 1987 (Article 601d-1, Vernon's Texas
329-15 Civil Statutes), is amended to read as follows:
329-16 (d) With the concurrence of the board, the Comptroller
329-17 [State Treasurer] shall invest the unexpended bond proceeds and the
329-18 investment income of those unexpended proceeds in investments
329-19 approved by law for the investment of state funds. Any investment
329-20 income required for project costs, and not required to be rebated
329-21 to the federal government or used for debt service, as determined
329-22 by the board, shall be credited to the appropriate agency.
329-23 Investment income not required for project costs and not required
329-24 to be rebated to the federal government or used for debt service
329-25 shall be allocated as provided by Section 404.071, Government Code
329-26 [3.042, Treasury Act (Article 4393-1, Vernon's Texas Civil
329-27 Statutes)].
330-1 SECTION 21.13. Section 5(c), Chapter 1203, Acts of the 71st
330-2 Legislature, Regular Session, 1989 (Article 601d-3, Vernon's Texas
330-3 Civil Statutes), is amended to read as follows:
330-4 (c) With the concurrence of the board, the comptroller
330-5 [state treasurer] shall invest the unexpended bond proceeds and the
330-6 investment income on those unexpended proceeds in investments
330-7 approved by law for the investment of state funds. Any investment
330-8 income required for project costs and not required to be rebated to
330-9 the federal government, as determined by the board, shall be
330-10 credited to the commission. Investment income not required for
330-11 project costs and not required to be rebated to the federal
330-12 government or used for debt service on the bonds shall be allocated
330-13 as provided by Section 404.071, Government Code.
330-14 SECTION 21.14. Article 696, Revised Statutes, is amended to
330-15 read as follows:
330-16 Art. 696. DEPOSIT. Each corporation, company or individual,
330-17 doing business in this State as a bond investment company, or
330-18 company to place or sell bonds, certificates or debentures on the
330-19 partial payment or installment plan, shall deposit with the
330-20 Comptroller [State Treasurer], in cash or securities approved by
330-21 said Comptroller [Treasurer], the sum of five thousand dollars, and
330-22 shall deposit semi-annually with said Comptroller [Treasurer], in
330-23 cash or securities, to be approved by said officer, ten percent of
330-24 all net premiums received until the sum deposited amounts to one
330-25 hundred thousand dollars.
330-26 SECTION 21.15. Article 697, Revised Statutes, is amended to
330-27 read as follows:
331-1 Art. 697. DEFAULT OF DEPOSIT. If any such domestic
331-2 corporation, shall fail, for sixty days after its organization, to
331-3 make with the Comptroller [State Treasurer] the deposit required by
331-4 this title, it shall be considered to have forfeited its charter;
331-5 and the Attorney General shall upon information thereof, bring suit
331-6 in the name of the State to have such charter or certificate of
331-7 incorporation declared forfeited, and the court, upon so finding,
331-8 shall declare such charter forfeited and appoint a receiver for
331-9 such company, whose duty it shall be, under the order of the court,
331-10 to distribute to the shareholders the assets of the company. The
331-11 court shall out of such assets make equitable compensation for the
331-12 receiver.
331-13 SECTION 21.16. Article 698, Revised Statutes, is amended to
331-14 read as follows:
331-15 Art. 698. RECEIVER. In case of the failure of any such
331-16 company, the district court of the county in which the principal
331-17 office is located, upon the application of one or more
331-18 shareholders, shall appoint a receiver for such company, whose duty
331-19 it shall be to wind up its affairs, liquidate its debts, and
331-20 distribute its assets, using therefor, upon the order of the court,
331-21 the deposit previously made with the Comptroller [State Treasurer]
331-22 to secure the shareholders. Said Comptroller [Treasurer] is
331-23 authorized to pay out such deposit [upon the warrant of the
331-24 Comptroller] in accordance with requisitions made upon the
331-25 Comptroller by said receiver, approved by the court.
331-26 SECTION 21.17. Article 699, Revised Statutes, is amended to
331-27 read as follows:
332-1 Art. 699. INTERCHANGE OF DEPOSIT. On request of any such
332-2 company, the Comptroller [State Treasurer] is authorized to permit
332-3 such company to interchange cash for the securities or securities
332-4 for the cash deposited by such company under the provisions of this
332-5 title with said Comptroller [Treasurer], such securities always to
332-6 be approved by said Comptroller [Treasurer] on the written advice
332-7 of the Attorney General.
332-8 SECTION 21.18. Article 700, Revised Statutes, is amended to
332-9 read as follows:
332-10 Art. 700. RETURN OF DEPOSIT. If any such company shall
332-11 cease to do business in this State and satisfy the Comptroller and
332-12 the Attorney General that it has no liabilities in this State, the
332-13 Comptroller shall [issue his warrant to the State Treasurer; and
332-14 said Treasurer upon such warrant of the Comptroller, shall] return
332-15 to such company the cash or securities deposited by it under the
332-16 provisions of this title.
332-17 SECTION 21.19. Article 700a, Revised Statutes, is amended to
332-18 read as follows:
332-19 Art. 700a. PENALTY FOR VIOLATION OF LAWS. Any officer,
332-20 agent, or representative of any domestic or foreign corporation or
332-21 company doing business in this State as a bond investment company
332-22 or company to place or sell bonds, certificates or debentures on
332-23 the partial payment or installment plan, who shall attempt to place
332-24 or sell shares or transact any business in the name of or on behalf
332-25 of such company while it fails to comply with the laws of this
332-26 State requiring deposits to be made with the Comptroller [State
332-27 Treasurer], shall be fined not less than one hundred nor more than
333-1 one thousand dollars, or be imprisoned in jail not less than thirty
333-2 days nor more than six months, or both.
333-3 SECTION 21.20. Sections 2, 3, 4, 6, 7, 7A, and 8, Chapter
333-4 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
333-5 717k, Vernon's Texas Civil Statutes), are amended to read as
333-6 follows:
333-7 Sec. 2. REFUNDING BONDS; POWER TO ISSUE; SALE PRICE;
333-8 MATURITY; INTEREST RATE; SECURITY; COMBINATION ISSUANCE; ELECTION;
333-9 APPROVAL; REGISTRATION; SALE AND DELIVERY; LEGAL INVESTMENTS;
333-10 EXCEPTION. (a) The governing body of any issuer shall be
333-11 authorized to refund all or any part of any of its outstanding
333-12 bonds, notes, or other general or special obligations by the
333-13 issuance of refunding bonds to be sold for cash in such principal
333-14 amounts as are necessary to provide all or any part of the money
333-15 required to pay the principal of any obligations being refunded and
333-16 the interest to accrue on said obligations to the maturity thereof,
333-17 and/or to provide all or any part of the money required to redeem
333-18 any obligations being refunded, prior to maturity, on any date or
333-19 dates upon which said obligations are subject to such redemption,
333-20 including principal, and any required redemption premium, and the
333-21 interest to accrue on said obligations to said redemption date or
333-22 dates. Said refunding bonds shall be sold for not less than their
333-23 par value plus accrued interest to date of delivery, shall mature
333-24 not more than forty years from their date, and shall bear interest
333-25 at any rate or rates as shall be determined within the discretion
333-26 of the governing body of the issuer. Such refunding bonds may be
333-27 secured by and made payable from the same source as the obligations
334-1 being refunded thereby, or may be secured by and made payable from
334-2 taxes or revenues, or both, or any other or different source, or
334-3 any combination of sources, if the issuer is otherwise authorized
334-4 by the Texas Constitution or any statute to secure or pay any kind
334-5 or type of bonds by or from any such source. Said refunding bonds
334-6 may be issued in combination with new bonds, and/or with provision
334-7 for the subsequent issuance of additional parity bonds, or
334-8 subordinate lien bonds, under such terms or conditions, and with
334-9 such security, as may be set forth in the proceedings authorizing
334-10 the issuance of said refunding bonds, all within the discretion of
334-11 the governing body of the issuer; provided, however, that no such
334-12 bonds shall be issued contrary to the provisions of the Texas
334-13 Constitution. All refunding bonds issued pursuant to this Act may
334-14 be issued without any election in connection with the issuance
334-15 thereof or the creation of any encumbrance in connection therewith;
334-16 except that if the Texas Constitution would require an election or
334-17 vote to permit any procedure, action, or matter pertaining to such
334-18 refunding bonds, then an election to authorize any such procedure,
334-19 action, or matter shall be held substantially in accordance with
334-20 Chapter 1, Title 22, Revised Civil Statutes of Texas, 1925, as
334-21 amended, to the extent practicable, applicable, and appropriate.
334-22 All bonds permitted to be issued under this Act, and the
334-23 appropriate proceedings authorizing their issuance, shall be
334-24 submitted to the Attorney General of the State of Texas for
334-25 examination. If he finds that such bonds have been authorized in
334-26 accordance with the Texas Constitution and this Act he shall
334-27 approve them, and thereupon they shall be registered by the
335-1 Comptroller [of Public Accounts of the State of Texas], without the
335-2 surrender, exchange, or cancellation of the obligations being
335-3 refunded; and notwithstanding any provisions of this Act to the
335-4 contrary, such bonds shall be so registered before the making of
335-5 the deposit with the Comptroller [State Treasurer] as required
335-6 hereunder, and such refunding bonds may be sold and delivered to
335-7 the purchaser thereof in order to permit the issuer to use the
335-8 proceeds from such sale and delivery to make all or any part of
335-9 said deposit. After such approval and registration, such bonds
335-10 shall be incontestable in any court, or other forum, for any
335-11 reason, and shall be valid and binding obligations in accordance
335-12 with their terms for all purposes. All refunding bonds issued
335-13 under this Act, shall be legal and authorized investments for all
335-14 banks, savings banks, trust companies, building and loan
335-15 associations, savings and loan associations, insurance companies of
335-16 all kinds and types, fiduciaries, trustees and guardians, and for
335-17 the interest and sinking funds and other public funds of any
335-18 issuer, as such term is defined in this Act. Said refunding bonds
335-19 also shall be eligible and lawful security for all deposits of
335-20 public funds of the State of Texas and of any issuer, as such term
335-21 is defined in this Act, to the extent of the market value of said
335-22 refunding bonds, when accompanied by any unmatured interest coupons
335-23 appurtenant thereto. Notwithstanding any provisions of this Act to
335-24 the contrary, no refunding bonds shall be issued hereunder unless
335-25 the obligations to be refunded are scheduled to mature or are
335-26 subject to redemption prior to maturity within not more than five
335-27 years from the date of the refunding bonds; and no refunding bonds
336-1 shall be issued hereunder to refund electric and gas system revenue
336-2 bonds issued by any city having a population in excess of 900,000,
336-3 according to the most recent federal census.
336-4 (b) An issuer shall have the right to deposit, or cause to
336-5 be deposited to the Comptroller [State Treasurer of the State of
336-6 Texas] a sum of money equal to the principal amount of the bonds,
336-7 notes, and other evidences of indebtedness which it proposes to
336-8 refund plus the amount of interest which will accrue thereon
336-9 calculated to the date on which it is to become due or on which it
336-10 may be redeemed, together with the amount of contract premium if
336-11 any, required for redemption; the Comptroller [State Treasurer] may
336-12 charge reasonable fees and expenses for services performed under
336-13 this Act. The Comptroller [State Treasurer] may rely on a
336-14 certificate by such issuer as to the amount of the charges made by
336-15 such bank or trust company. At the same time such issuer shall
336-16 deliver to the Comptroller [State Treasurer] a certified copy of
336-17 the ordinance, order, or resolution authorizing said underlying
336-18 obligations, or a certified excerpt therefrom, showing clearly the
336-19 amounts and the date or dates on which interest is due on such
336-20 underlying obligations, the date when the principal becomes subject
336-21 to redemption, and the name and address of the bank or trust
336-22 company at which such principal and interest must be paid. It
336-23 shall be the duty of the Comptroller [State Treasurer] to accept
336-24 such deposits, payments, and instruments, and safely to keep and
336-25 use such money for the purposes set forth in this Act and for no
336-26 other purpose, and no part of such money except that in payment for
336-27 his services and to reimburse his expenses in performing such
337-1 services shall be used by or for the State of Texas or for any
337-2 creditor of the State of Texas, nor shall such money be commingled
337-3 with any other money.
337-4 Sec. 3. DUTY OF COMPTROLLER [STATE TREASURER]. Upon receipt
337-5 of such deposits and payments, it shall be the duty of the
337-6 Comptroller [State Treasurer], if the securities involved are to be
337-7 redeemed at a place of payment other than his office, immediately
337-8 and by the most expeditious means to forward to and deposit with
337-9 the bank or trust company where such underlying securities are
337-10 payable, the amount out of such deposits as is specified as being
337-11 for the payment of the principal and interest, and contract
337-12 premium, if any, on the securities to be redeemed, and for the
337-13 payment of the service charges of such bank or trust company;
337-14 provided however, that the issuer shall have made deposits and
337-15 payments with the Comptroller [State Treasurer] during normal
337-16 banking hours at least one (1) business day prior to the date on
337-17 which such securities are designated to be redeemed. The
337-18 Comptroller [State Treasurer] shall notify such bank or trust
337-19 company to forward to him the underlying securities thus redeemed
337-20 and cancelled, and after the Comptroller [State Treasurer] shall
337-21 have made a record of their payment and cancellation shall forward
337-22 such cancelled bonds, coupons or securities to issuer.
337-23 Sec. 4. ISSUANCE AND SALE OF REFUNDING BONDS; REGISTRATION
337-24 BY COMPTROLLER [OF PUBLIC ACCOUNTS]. When the issuer shall have
337-25 deposited and paid into the Office of the Comptroller [State
337-26 Treasurer] the money, and shall have done the things required by
337-27 Section 2 of this Act, it shall have authority to issue, sell and
338-1 deliver refunding bonds in lieu of the underlying securities,
338-2 despite the fact that the holders of other such underlying
338-3 securities may not have surrendered or presented the same for
338-4 payment; provided that the Attorney General of Texas shall certify
338-5 to the Comptroller [of Public Accounts] as to any underlying
338-6 securities which have not reached their normal maturity date that
338-7 the issuer has validly called the bonds for redemption in
338-8 accordance with the contract rights of the issuer. Where the
338-9 issuer has complied with the requirements of this Act, the
338-10 Comptroller shall register the refunding bonds despite the fact
338-11 that some or all of the underlying securities shall not have been
338-12 surrendered by the holder for payment and cancellation.
338-13 Sec. 6. WITHDRAWAL OF DEPOSITS ON CANCELLATION OF UNDERLYING
338-14 OBLIGATION. After an issuer has made the deposits and payments
338-15 required under Section 2 hereof, the issuer may apply to the
338-16 Comptroller [State Treasurer] to withdraw from the paying agent the
338-17 amount of money deposited on the account of any underlying bond or
338-18 security, together with the deposit for interest thereon and
338-19 premium, if any, by exhibiting to the Comptroller [State Treasurer]
338-20 said obligation duly cancelled, whereupon the Comptroller [State
338-21 Treasurer] shall make a proper record of the payment and
338-22 cancellation of such instrument. No funds so deposited by issuer
338-23 with the Comptroller [State Treasurer] under the provisions of this
338-24 Act shall otherwise be withdrawn by the issuer except upon the
338-25 conditions stated above in this Section, or unless the Attorney
338-26 General of Texas shall certify to the Comptroller [State Treasurer]
338-27 that the payment by the issuer of the underlying security is barred
339-1 by limitation and that payment thereof by the issuer is forbidden
339-2 by law.
339-3 Sec. 7. DEPOSITS WITH COMPTROLLER [STATE TREASURER]; EFFECT;
339-4 REFUNDING OF OBLIGATIONS; FEES; FORWARDING TO PLACE OF PAYMENT;
339-5 TIME OF PAYMENT. When the deposit of money required hereunder is
339-6 made with the Comptroller [State Treasurer] in accordance with this
339-7 Act, for any obligations being refunded pursuant hereto, such
339-8 deposit shall constitute the making of firm banking and financial
339-9 arrangements for the discharge and final payment or redemption of
339-10 the obligations being refunded; provided, however, that, at the
339-11 option of and within the discretion of the issuer, provision may be
339-12 made in the proceedings authorizing the issuance of such refunding
339-13 bonds for the subordination thereof to the obligations being
339-14 refunded, but only in the manner and to the extent specifically
339-15 provided in said proceedings. Immediately after the receipt
339-16 thereof, and by the most expeditious means, it shall be the duty of
339-17 the Comptroller [State Treasurer] to forward to and deposit with
339-18 the place of payment (paying agent) for the obligations being
339-19 refunded all of the money deposited with him pursuant hereto
339-20 (excepting the fees for his services). If there is more than one
339-21 place of payment for the obligations being refunded, the
339-22 Comptroller [State Treasurer] shall forward the aforesaid money
339-23 directly to the one of said places of payment which is located in
339-24 the State of Texas; provided that if more than one of such places
339-25 of payment is located in the State of Texas, or if no place of
339-26 payment is located in the State of Texas and there is more than one
339-27 place of payment located outside of the State of Texas, then said
340-1 money shall be forwarded directly to the one of such places of
340-2 payment having the largest capital and surplus. It shall be the
340-3 duty of the place of payment to deposit the aforesaid money
340-4 received from the Comptroller [State Treasurer] (excepting the
340-5 amount thereof representing the charges of the place of payment)
340-6 into an interest and sinking fund to be established and maintained
340-7 in trust and as a trust fund for the payment of the obligations
340-8 being refunded. Further, it shall be the duty of the place of
340-9 payment, out of said interest and sinking fund, to pay or redeem
340-10 the obligations being refunded when duly presented therefor at the
340-11 maturity, due date, or redemption date thereof. If there is more
340-12 than one place of payment, the one having the deposit shall make
340-13 appropriate financial arrangements so that the necessary funds will
340-14 be available at the other place or places of payment to pay or
340-15 redeem any of such obligations being refunded when so presented for
340-16 payment or redemption. The holder or holders of any obligations
340-17 being refunded by any refunding bonds issued and sold under this
340-18 Act shall not have the right to demand or receive payment thereof
340-19 at any time before the scheduled maturity date or dates, due date
340-20 or dates, or redemption date or dates, respectively, of said
340-21 obligations being refunded, unless the governing body of the issuer
340-22 shall have specifically and affirmatively provided for and
340-23 authorized the earlier payment of said obligations in the
340-24 proceedings authorizing said refunding bonds.
340-25 Sec. 7A. ALTERNATE PROCEDURES; ISSUANCE AND SALE OF
340-26 REFUNDING BONDS; DEPOSITS IN CONNECTION WITH PAYMENT OR REDEMPTION
340-27 OF OBLIGATIONS. Notwithstanding any provision of this Act or any
341-1 other law to the contrary, any issuer may, at its option, in lieu
341-2 of making any deposit with the Comptroller [State Treasurer]
341-3 hereunder, deposit proceeds from the sale of refunding bonds issued
341-4 hereunder, and/or any other available funds or resources, directly
341-5 with any place of payment (paying agent) for any obligations
341-6 payable from revenues or from ad valorem taxes or from both, or
341-7 from any other source, which it wishes to refund, or to pay or
341-8 redeem in whole or in part without the issuance of refunding bonds,
341-9 or with the trustee under any trust indenture, deed of trust, or
341-10 similar instrument securing such obligations, in an amount
341-11 sufficient to provide for the payment and/or redemption of any such
341-12 obligations of the issuer, including assumed obligations, which are
341-13 to be refunded, or to be paid or redeemed in whole or in part
341-14 without the issuance of refunding bonds; and such deposit, if made
341-15 on or before such payment and/or redemption date, shall constitute
341-16 the making of firm banking and financial arrangements for the
341-17 discharge and final payment or redemption of the obligations being
341-18 refunded, or being paid or redeemed in whole or in part without the
341-19 issuance of refunding bonds; and any issuer is authorized to enter
341-20 into an escrow or similar agreement with any such place of payment
341-21 (paying agent) or trustee with respect to the safekeeping,
341-22 investment, reinvestment, administration, and disposition of any
341-23 such deposit, upon such terms and conditions as the parties may
341-24 agree, provided that such deposits may be invested and reinvested
341-25 only in direct obligations of the United States of America,
341-26 including obligations the principal of and interest on which are
341-27 unconditionally guaranteed by the United States of America, and
342-1 which may be in book entry form, and which shall mature and/or bear
342-2 interest payable at such times and in such amounts as will be
342-3 sufficient to provide for the scheduled payment and/or redemption
342-4 of such obligations, and further provided that if any such
342-5 obligations are scheduled to be paid and/or redeemed on a date
342-6 later than the next succeeding scheduled interest payment date
342-7 thereon, the issuer shall be required to enter into an appropriate
342-8 escrow or similar agreement as described above. It is hereby made
342-9 the statutory duty of any place of payment (paying agent) or
342-10 trustee which enters into any such escrow or similar agreement with
342-11 any issuer to comply with the terms of such agreement and timely
342-12 make available to any other place or places of payment (paying
342-13 agent or agents) or trustee or trustees for any of the obligations
342-14 of the same or different series of obligations being refunded,
342-15 paid, or redeemed, the amounts required to provide for the payment
342-16 or redemption of the principal of and interest on such obligations
342-17 when due, and in accordance with their terms, but solely from the
342-18 funds, in the manner, and to the extent provided in such agreement.
342-19 Notwithstanding any provisions of this Act or any other law to the
342-20 contrary, refunding bonds may be issued under this Act to refund
342-21 any obligations which are scheduled to mature, or which are subject
342-22 to redemption prior to maturity, not more than 20 years from the
342-23 date of the refunding bonds, and refunding bonds issued under this
342-24 Act may be sold at public or private sale, under such procedures,
342-25 at any price (at a premium, at par, or at a discount), upon such
342-26 terms, and bear interest at such rate or rates, and mature not more
342-27 than 40 years after their date, all as shall be determined within
343-1 the discretion of the governing body of the issuer; provided that
343-2 Chapter 3, Acts of the 61st Legislature, Regular Session, 1969, as
343-3 now or hereafter amended (Article 717k-2, Vernon's Texas Civil
343-4 Statutes), which pertains generally to the sale price and interest
343-5 rates of all public securities, shall be applicable to said
343-6 refunding bonds; and any issuer is further authorized to pledge to
343-7 the payment of any refunding bonds issued hereunder (i) any surplus
343-8 income to be available from the investment or reinvestment of any
343-9 deposit made as authorized in this Section 7A and/or (ii) any other
343-10 available revenues, income, or resources. The refunding bonds also
343-11 may be issued in an additional amount sufficient to pay the costs
343-12 and expenses of issuing said bonds and sufficient to fund any debt
343-13 service reserve, contingency, or other similar fund deemed
343-14 necessary or advisable by the issuer. Bonds for purposes
343-15 authorized by other laws applicable to an issuer may be issued,
343-16 sold, and delivered by an issuer in combination with refunding
343-17 bonds issued under this Section 7A in accordance with the
343-18 procedures authorized herein. All bonds permitted to be issued
343-19 under Section 7A of this Act, and the appropriate proceedings
343-20 authorizing their issuance, shall be submitted to the Attorney
343-21 General of the State of Texas for examination. If he finds that
343-22 such bonds have been authorized to be issued in accordance with the
343-23 Texas Constitution and this Act he shall approve them, and
343-24 thereupon such bonds shall be registered by the Comptroller [of
343-25 Public Accounts of the State of Texas], without the surrender,
343-26 exchange, or cancellation of the obligations being refunded; and
343-27 notwithstanding any provisions of this Act to the contrary, such
344-1 bonds shall be so approved and registered before the making of the
344-2 deposit with any place of payment (paying agent), escrow agent, or
344-3 trustee as required hereunder, and such refunding bonds may be sold
344-4 and delivered to the purchaser thereof after such approval and
344-5 registration in order to permit the issuer, in timely manner
344-6 determined by the issuer, to use the proceeds from such sale and
344-7 delivery to make all or any part of said deposit. After the
344-8 approval and registration of such bonds and the sale and delivery
344-9 of such bonds to the purchaser thereof, such bonds and the
344-10 proceedings authorizing same, and any escrow agreement pertaining
344-11 thereto, and any contract providing security or payments with
344-12 respect to such bonds shall be incontestable in any court or other
344-13 forum for any reason and shall be valid and binding obligations in
344-14 accordance with their terms for all purposes.
344-15 Sec. 8. COMPTROLLER'S [STATE TREASURER'S] BOND; PROTECTION
344-16 OF DEPOSITS OF MONEYS AND SECURITIES. The bond or bonds given by
344-17 the Comptroller [State Treasurer] under Article 4368 to secure the
344-18 faithful execution of the duties of his office (except such special
344-19 bonds as may have been given to protect funds of the United States
344-20 Government) and any and all other bonds which may have been given
344-21 by the Comptroller [State Treasurer], shall be construed as
344-22 protecting all moneys and securities deposited or placed with the
344-23 Comptroller [State Treasurer] under this Act.
344-24 SECTION 21.21. Section 6A(d), Bond Procedures Act of 1981
344-25 (Article 717k-6, Vernon's Texas Civil Statutes), is amended to read
344-26 as follows:
344-27 (d) The fee is not refundable, regardless of whether the
345-1 bonds are approved. The attorney general shall remit the fees
345-2 collected under this section to the comptroller [state treasurer]
345-3 for deposit to the credit of the general revenue fund.
345-4 SECTION 21.22. Sections 2 and 4, Chapter 1078, Acts of the
345-5 70th Legislature, Regular Session, 1987 (Article 717k-7, Vernon's
345-6 Texas Civil Statutes), are amended to read as follows:
345-7 Sec. 2. BOND REVIEW BOARD. (a) The bond review board is
345-8 composed of:
345-9 (1) the governor;
345-10 (2) the lieutenant governor;
345-11 (3) the speaker of the house of representatives;
345-12 [(4) the state treasurer;] and
345-13 (4) [(5)] the comptroller of public accounts.
345-14 (b) A member of the board may designate another person to
345-15 act on the member's behalf.
345-16 (c) The governor is chairman of the board.
345-17 (d) If the speaker of the house of representatives is not
345-18 permitted by the Texas Constitution to serve as a voting member of
345-19 the board, the speaker of the house of representatives serves as a
345-20 nonvoting member of the board.
345-21 Sec. 4. BOND FINANCE OFFICE. The bond finance office is
345-22 managed by a director appointed by the bond review board and a
345-23 staff selected by the director. Whenever practical, the office
345-24 shall make use of the resources of the Legislative Budget Board and
345-25 the offices of the governor and[,] comptroller[, and treasurer].
345-26 SECTION 21.23. Section 4, Public School Facilities Funding
345-27 Act (Article 717t, Vernon's Texas Civil Statutes), is amended to
346-1 read as follows:
346-2 Sec. 4. PURPOSE. The purpose of this Act is to create funds
346-3 to be administered by the comptroller [state treasurer] as directed
346-4 by the board and funded by proceeds from the sale or refunding of
346-5 bonds. The funds are to be used to determine the needs of
346-6 qualifying districts in acquiring, constructing, renovating,
346-7 performing major repairs to, remodeling, retrofitting, or improving
346-8 qualifying capital assets and instructional facilities and to
346-9 provide loans and other aid for those purposes, for paying
346-10 maintenance expenses, and to aid school districts in the bond
346-11 issuance process. This Act shall be construed liberally to effect
346-12 its purpose.
346-13 SECTION 21.24. Section 5(d), Public School Facilities
346-14 Funding Act (Article 717t, Vernon's Texas Civil Statutes), is
346-15 amended to read as follows:
346-16 (d) The board may promulgate and issue rules not
346-17 inconsistent with this Act as provided for by Chapter 2001 [the
346-18 Administrative Procedure and Texas Register Act (Article 6252-13a,
346-19 Vernon's Texas Civil Statutes)]. The comptroller [state treasurer]
346-20 shall act as the issuer of bonds authorized by the board and shall
346-21 perform any accounting or funds management duties which are allowed
346-22 or required under this Act as directed by the board.
346-23 SECTION 21.25. Sections 6(a) and (e), Public School
346-24 Facilities Funding Act (Article 717t, Vernon's Texas Civil
346-25 Statutes), are amended to read as follows:
346-26 (a) The school facilities aid fund is hereby created as a
346-27 special revolving fund in the state treasury. The fund shall be
347-1 administered by the comptroller [state treasurer] as directed by
347-2 the board under this Act and rules adopted by the board. The fund
347-3 shall be used to provide aid to qualifying districts for the
347-4 purpose of aiding those districts in the acquisition, construction,
347-5 renovation, major repair, remodeling, retrofitting, or improvement
347-6 of capital assets and instructional facilities that meet the
347-7 board's standards for qualification under this Act, to provide aid
347-8 to qualifying districts to fund their cash-management programs or
347-9 other short-term borrowing needs for maintenance purposes, and to
347-10 aid school districts in the bond issuance process. The fund may
347-11 also be used to pay the costs of a study of the needs of school
347-12 districts in all or part of the state for the acquisition,
347-13 construction, renovation, major repair, remodeling, retrofitting,
347-14 or improvement of qualifying capital assets and instructional
347-15 facilities or for assistance in paying maintenance expenses. Money
347-16 in the fund shall not be commingled or otherwise deposited to the
347-17 credit of any other fund in the state treasury, except as provided
347-18 by this Act.
347-19 (e) The board may direct the comptroller [state treasurer]
347-20 to create accounts within the fund as shall seem advisable. Such
347-21 accounts shall be kept separate from other accounts within the fund
347-22 and shall receive such amounts as the board shall transfer or
347-23 dedicate to them. The board may in the resolution authorizing the
347-24 issuance of bonds dedicate an account or accounts within the fund,
347-25 including future amounts to be deposited within an account, to the
347-26 payment of debt service on one or more series of bonds issued under
347-27 this Act. The board may also direct the comptroller [state
348-1 treasurer] to pledge such an account or accounts as security for
348-2 bonds issued under this Act.
348-3 SECTION 21.26. Sections 7(a) and (e), Public School
348-4 Facilities Funding Act (Article 717t, Vernon's Texas Civil
348-5 Statutes), are amended to read as follows:
348-6 (a) The board may direct the comptroller [state treasurer]
348-7 to create a school facilities aid reserve fund within the state
348-8 treasury and deposit in that fund the proceeds of bonds issued
348-9 pursuant to this Act, as well as any repayments of interest or
348-10 principal from aid granted under this Act, or other amounts that
348-11 may be transferred from the fund, which are required to be
348-12 deposited therein by any resolution of the board. Money in the
348-13 reserve fund shall be held and applied solely to the payment of the
348-14 principal or redemption price of and interest on bonds issued
348-15 pursuant to this Act as they become due and payable, either
348-16 directly or by transfer to the fund for those purposes. Except as
348-17 provided in this section, no money may be removed from the reserve
348-18 fund or an account within the reserve fund if that action would
348-19 reduce the amount therein to less than the required debt service
348-20 reserve. As used in this Act, "required debt service reserve"
348-21 means, as of the date of computation, the amount or amounts
348-22 required to be on deposit in the reserve fund or an account within
348-23 it as provided by resolution of the board. In computing the amount
348-24 of the required debt service reserve, investments held therein
348-25 shall be valued in such manner as shall be determined by resolution
348-26 of the board.
348-27 (e) The board may direct the comptroller [state treasurer]
349-1 to create accounts within the reserve fund as seems advisable.
349-2 Such accounts shall be kept separate from other accounts within the
349-3 reserve fund and shall receive such amounts as the board shall
349-4 transfer or dedicate to them. The board may pledge an account or
349-5 accounts within the reserve fund, including future amounts to be
349-6 deposited within an account, as security for one or more series of
349-7 bonds issued under this Act.
349-8 SECTION 21.27. Sections 8(a), (d), (f), and (h), Public
349-9 School Facilities Funding Act (Article 717t, Vernon's Texas Civil
349-10 Statutes), are amended to read as follows:
349-11 (a) The board may by resolution provide for the issuance of
349-12 revenue bonds by the comptroller [state treasurer] for the purposes
349-13 of this Act in an amount not to exceed $750 million outstanding at
349-14 any one time. Bonds which are or have been refunded shall not
349-15 count against the limit imposed on outstanding bonds. The board
349-16 may specify a principal amount and a date of delivery of the
349-17 proceeds of bonds issued under this Act.
349-18 (d) The bonds issued under this Act shall be authorized by
349-19 resolution of the board and approved in the same manner as other
349-20 bonds issued by the state. The comptroller [state treasurer] shall
349-21 issue bonds authorized and approved by the board. Bonds issued
349-22 under this Act shall have the form and bear the designations as
349-23 directed by board resolution.
349-24 (f) All proceedings relating to the issuance of bonds
349-25 pursuant to this Act shall be submitted to the attorney general for
349-26 examination. If the attorney general finds that the proceedings
349-27 have been authorized in accordance with law, the proceedings
350-1 authorizing the bonds issued pursuant to this Act shall be
350-2 approved, and the bonds shall be issued by the comptroller [state
350-3 treasurer] and registered by the comptroller [of public accounts]
350-4 in a manner consistent with Chapter 53, Acts of the 70th
350-5 Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
350-6 Texas Civil Statutes). After approval and registration, the bonds
350-7 and proceedings relating thereto are incontestable in any court or
350-8 other forum for any reason and are valid and binding obligations in
350-9 accordance with their terms for all purposes.
350-10 (h) In addition to the powers granted by this Act, the
350-11 comptroller [state treasurer] may exercise the rights and powers
350-12 granted to the housing finance division of the Texas Department of
350-13 Housing and Community Affairs as provided for by Chapter 2306,
350-14 Government Code, [Article 4413(501), Revised Statutes,] in
350-15 connection with the issuance and administration of bonds. Further,
350-16 in connection with the issuance and administration of bonds, the
350-17 comptroller [state treasurer] may exercise the rights and powers
350-18 granted to an issuer under Chapter 503, Acts of the 54th
350-19 Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes);
350-20 the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas
350-21 Civil Statutes); and Chapter 656, Acts of the 68th Legislature,
350-22 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
350-23 Statutes).
350-24 SECTION 21.28. Sections 12(a) and (b), Public School
350-25 Facilities Funding Act (Article 717t, Vernon's Texas Civil
350-26 Statutes), are amended to read as follows:
350-27 (a) A school district shall make payments of principal and
351-1 interest on obligations purchased by the board directly to the
351-2 comptroller [state treasurer] for deposit in the fund.
351-3 (b) If the comptroller [state treasurer] receives
351-4 notification from a school district that it will not make a timely
351-5 payment on a loan made under this Act or if a school district fails
351-6 to make a timely payment of principal or interest due on a loan
351-7 made under this Act, the comptroller [state treasurer] shall notify
351-8 the board and the commissioner of education and shall notify the
351-9 local district in writing by certified mail. Except as provided by
351-10 Subsection (c) of this section, the Central Education Agency shall
351-11 deduct the total amount due to the board or fund, including
351-12 interest and any applicable late payment charges as of the date of
351-13 notification, from the foundation school fund payment next due to
351-14 that school district, including any allocations to that district
351-15 under Chapter 16, Education Code, and shall continue making the
351-16 deductions from subsequent foundation school fund payments until
351-17 the total amount then due has been deducted. The Central Education
351-18 Agency shall credit the full amount of a foundation school fund
351-19 entitlement to a school district prior to making the deduction.
351-20 The amount of such a deduction shall then be paid to the fund or to
351-21 an account within the fund as the board may direct, on behalf of
351-22 the district. Should the board determine that a deduction or any
351-23 part thereof which was deposited in the fund was made erroneously,
351-24 it may authorize payment from the fund of that amount directly to a
351-25 district against which a deduction was made.
351-26 SECTION 21.29. Section 4(a), College Opportunity Act
351-27 (Article 717u, Vernon's Texas Civil Statutes), is amended to read
352-1 as follows:
352-2 (a) The College Opportunity Act committee consists of:
352-3 (1) the commissioner of the General Land Office, the
352-4 commissioner of higher education, the executive administrator of
352-5 the Texas Water Development Board, the comptroller, [the state
352-6 treasurer,] and the executive director of the bond review board,
352-7 who serve as ex officio members; and
352-8 (2) three members of the public appointed by the
352-9 governor with the advice and consent of the senate.
352-10 SECTION 21.30. Section 10(c), Chapter 852, Acts of the 69th
352-11 Legislature, Regular Session, 1985 (Article 969a-2, Vernon's Texas
352-12 Civil Statutes), is amended to read as follows:
352-13 (c) Refunding obligations must be authorized and executed
352-14 and mature as provided by this Act for original obligations. The
352-15 attorney general shall approve them as in the case of original
352-16 obligations, and the comptroller shall register them on surrender
352-17 and cancellation of the obligations refunded, except that if the
352-18 ordinance or resolution authorizing their issuance provides that
352-19 they be sold at public or private sale and the proceeds deposited
352-20 in a place where the refunded obligations are payable or with the
352-21 Comptroller [State Treasurer] and the refunding obligations are
352-22 issued in an amount sufficient to pay the principal of the refunded
352-23 obligations and the interest on the refunded obligations until
352-24 their option or maturity dates, the comptroller shall register them
352-25 without the surrender and cancellation of the refunded obligations.
352-26 Proceeds of revenue refunding obligations deposited in a place
352-27 where the refunded obligations are payable or with the Comptroller
353-1 [State Treasurer] shall be held under an escrow agreement under
353-2 which the proceeds and interest earned on the proceeds will be
353-3 available for the payment of the interest on and principal of the
353-4 refunded obligations as they become due. The escrow agreement may
353-5 provide that the proceeds, until they are needed to pay interest
353-6 and principal, may be invested in direct obligations of the United
353-7 States. Interest earned on these investments may be pledged to the
353-8 payment of the principal of and interest on the refunded
353-9 obligations or the refunding obligations or may be considered as
353-10 revenues of the island property.
353-11 SECTION 21.31. Sections 2, 3, 4, 6, 7, and 9, Chapter 446,
353-12 Acts of the 50th Legislature, Regular Session, 1947 (Article
353-13 1118n-4, Vernon's Texas Civil Statutes), are amended to read as
353-14 follows:
353-15 Sec. 2. DEPOSIT IN STATE TREASURY OF AMOUNT OF OUTSTANDING
353-16 WATERWORKS REVENUE BONDS. An eligible city shall have the right to
353-17 deposit in the office of the Comptroller [State Treasurer] of the
353-18 State of Texas a sum of money equal to the principal amount of its
353-19 said outstanding and unpaid waterworks revenue bonds plus the
353-20 amount of interest which will accrue on each of said bonds
353-21 calculated to the date on which it may be redeemed and the amount
353-22 of contract premium if any, and concurrently with such deposit
353-23 shall pay to the Comptroller [State Treasurer] for his services and
353-24 to reimburse him for his expenses in performing his duties under
353-25 this Act a sum of money equivalent to one-eighth (1/8) of one per
353-26 cent (1%) of the principal amount of said bonds and one fourth
353-27 (1/4) of one per cent (1%) of the interest to accrue on all of said
354-1 bonds, and an additional amount of money sufficient to pay the
354-2 charges of the bank or trust company at which the principal and
354-3 interest of said bonds are payable for its services in paying such
354-4 principal and interest. The Comptroller [State Treasurer] may rely
354-5 on a certificate by such city as to the amount of the charges made
354-6 by such bank or trust company. At the same time such city shall
354-7 deliver to the Comptroller [State Treasurer] a certified copy of
354-8 the ordinance authorizing said revenue bonds, or a certified
354-9 excerpt therefrom, showing clearly the amounts and the date or
354-10 dates on which interest is due on such bonds, the date when the
354-11 principal becomes subject to redemption, and the name and address
354-12 of the bank or trust company at which such principal and interest
354-13 must be paid. It shall be the duty of the Comptroller [State
354-14 Treasurer] to accept such deposits, payments, and instruments, and
354-15 safely to keep and use such money for the purposes set forth in
354-16 this Act and for no other purpose, and no part of such money except
354-17 that in payment for his services and to reimburse his expenses in
354-18 performing such services shall be used by or for the State of Texas
354-19 or for any creditor of the State of Texas, nor shall such money be
354-20 commingled with any other money.
354-21 Sec. 3. COMPTROLLER [STATE TREASURER] TO FORWARD MONEY TO
354-22 BANK WHERE BONDS ARE PAYABLE. It shall be the duty of the
354-23 Comptroller [State Treasurer] not less than fifteen (15) days
354-24 before such interest is due according to the tenor and effect of
354-25 said bonds, and the principal becomes redeemable, to forward by
354-26 registered mail to the bank or trust company where the principal of
354-27 and interest on such bonds are payable, an amount sufficient to pay
355-1 such principal and interest and premium if any, and to pay the
355-2 service charges of such bank or trust company. The Comptroller
355-3 [State Treasurer] shall notify such bank or trust company to
355-4 forward to him bonds and coupons thus cancelled, and after he shall
355-5 have made a record of their payment and cancellation shall forward
355-6 such cancelled bonds and coupons to such city.
355-7 Sec. 4. ADDITIONAL REVENUE BONDS. When an eligible city
355-8 shall have deposited and paid into the office of the Comptroller
355-9 [State Treasurer] the money and shall have done the things required
355-10 under Section 2 it shall have authority to issue additional revenue
355-11 bonds, securing them by a pledge of the revenue from the operation
355-12 of its waterworks system or of its waterworks and sewer systems, in
355-13 such manner as is authorized by Articles 1111 to 1118 of the
355-14 Revised Civil Statutes of Texas, 1925, as amended, and for the
355-15 purposes authorized in said Articles, and for the purpose of
355-16 providing money to enable the city to comply with Section 2 of this
355-17 Act. The deposit authorized by Section 1 hereof to be made with
355-18 the Comptroller [State Treasurer] shall be made prior to or
355-19 concurrently with the sale and delivery of the new bonds authorized
355-20 by this Act, but all other proceedings relating to the
355-21 authorization and issuance of such bonds may be had prior to the
355-22 making of such deposit. No revenue bonds shall be issued under
355-23 authority of this Section 5 unless they shall have been authorized
355-24 at an election held in such city in accordance with the provisions
355-25 of Article 704 of the Revised Civil Statutes of Texas, 1925, as
355-26 amended by Chapter 382, Acts of the First Called Session of the
355-27 Forty-fourth Legislature. It is especially provided that
356-1 regardless of any provisions to the contrary contained in the law
356-2 under which such new revenue bonds are to be issued, they shall
356-3 constitute a first charge on the income of the waterworks system or
356-4 waterworks and sewer systems, after the payment of the expense of
356-5 maintenance and operation of such system or systems subject only to
356-6 any payments which must be made to the Comptroller [State
356-7 Treasurer] from such income to prevent any default in principal of
356-8 or interest on such outstanding revenue bonds, for the benefit of
356-9 which such deposit shall have been made with the Comptroller [State
356-10 Treasurer]. The right of the holders of said outstanding revenue
356-11 bonds to have any deficiency paid out of such income shall remain
356-12 unimpaired.
356-13 Sec. 6. WITHDRAWAL OF DEPOSITS FROM STATE TREASURY. After
356-14 an eligible city has made the deposits and payments required under
356-15 Section 2, at any time it may withdraw from the State Treasury the
356-16 amount of money, both principal and interest, deposited on account
356-17 of any bond by exhibiting to the Comptroller [State Treasurer] said
356-18 bond duly cancelled, whereupon the Comptroller [State Treasurer]
356-19 shall make a proper record of the payment and cancellation of such
356-20 bond.
356-21 Sec. 7. RIGHTS OF HOLDERS OF BONDS TO SURRENDER BONDS. At
356-22 any time after an eligible city shall have made the deposits and
356-23 payments required under Section 2, the holder of any such bond,
356-24 irrespective of its maturity date, shall have the right to
356-25 surrender such bond to the Comptroller [State Treasurer] and shall
356-26 receive therefor a sum equivalent to all money then remaining on
356-27 deposit with the Comptroller [State Treasurer], made on account of
357-1 such surrendered bond. Whereupon such bond shall be duly cancelled
357-2 by the Comptroller [State Treasurer], and delivered or forwarded to
357-3 such city.
357-4 Sec. 9. BOND OF COMPTROLLER [STATE TREASURER]. The bond or
357-5 bonds given by the Comptroller [State Treasurer] under Article 4368
357-6 to secure the faithful execution of the duties of his office
357-7 (except such special bonds as may have been given to protect funds
357-8 of the United States Government) and any and all other bonds which
357-9 may have been given by the Comptroller [State Treasurer] shall be
357-10 construed as protecting all moneys and securities deposited or
357-11 placed with the Comptroller [State Treasurer] under this Act.
357-12 SECTION 21.32. Sections 2, 3, 4, 6, 7, and 9, Chapter 541,
357-13 Acts of the 51st Legislature, Regular Session, 1949 (Article
357-14 1118n-5, Vernon's Texas Civil Statutes), are amended to read as
357-15 follows:
357-16 Sec. 2. DEPOSITS WITH COMPTROLLER [STATE TREASURER]. An
357-17 eligible city shall have the right to deposit in the office of the
357-18 Comptroller [State Treasurer] of the State of Texas a sum of money
357-19 equal to the principal amount of its said outstanding and unpaid
357-20 revenue bonds plus the amount of interest which will accrue on each
357-21 of said bonds calculated to the date on which it is to become due
357-22 or on which it may be redeemed and the amount of contract premium
357-23 if any, and concurrently with such deposit shall pay to the
357-24 Comptroller [State Treasurer] for his services and to reimburse him
357-25 for his expenses in performing his duties under this Act a sum of
357-26 money equivalent to one-twentieth (1/20) of one (1%) per cent of
357-27 the principal amount of said bonds and one-eighth (1/8) of one (1%)
358-1 per cent of the interest to accrue on all of said bonds, and an
358-2 additional amount of money sufficient to pay the charges of the
358-3 bank or trust company at which the principal and interest of said
358-4 bonds are payable for its services in paying such principal and
358-5 interest. The Comptroller [State Treasurer] may rely on a
358-6 certificate by such city as to the amount of the charges made by
358-7 such bank or trust company. At the same time such city shall
358-8 deliver to the Comptroller [State Treasurer] a certified copy of
358-9 the ordinance authorizing said revenue bonds, or a certified
358-10 excerpt therefrom, showing clearly the amounts and the date or
358-11 dates on which interest is due on such bonds, the date when the
358-12 principal becomes subject to redemption, and the name and address
358-13 of the bank or trust company at which such principal and interest
358-14 must be paid. It shall be the duty of the Comptroller [State
358-15 Treasurer] to accept such deposits, payments, and instruments, and
358-16 safely to keep and use such money for the purposes set forth in
358-17 this Act and for no other purpose, and no part of such money except
358-18 that in payment for his services and to reimburse his expenses in
358-19 performing such services shall be used by or for the State of Texas
358-20 or for any creditor of the State of Texas, nor shall such money be
358-21 commingled with any other money.
358-22 Sec. 3. DUTIES OF COMPTROLLER [STATE TREASURER]. It shall
358-23 be the duty of the Comptroller [State Treasurer] not less than
358-24 fifteen (15) days before such interest is due according to the
358-25 tenor and effect of said bonds, and the principal becomes
358-26 redeemable, to forward by registered mail to the bank or trust
358-27 company where the principal of and interest on such bonds are
359-1 payable, an amount sufficient to pay such principal and interest,
359-2 and premium if any, and to pay the service charges of such bank or
359-3 trust company. The Comptroller [State Treasurer] shall notify such
359-4 bank or trust company to forward to him bonds and coupons thus
359-5 cancelled, and after he shall have made a record of their payment
359-6 and cancellation shall forward such cancelled bonds and coupons to
359-7 such city.
359-8 Sec. 4. ISSUANCE OF NEW BONDS. When an eligible city shall
359-9 have deposited and paid into the office of the Comptroller [State
359-10 Treasurer] the money and shall have done the things required under
359-11 Section 2 it shall have authority to issue additional revenue
359-12 bonds, securing them by a pledge of the revenue from the operation
359-13 of its waterworks system or of its waterworks and sewer systems, in
359-14 such manner as is authorized by Articles 1111 to 1118 of the
359-15 Revised Civil Statutes of Texas, 1925, as amended, and for the
359-16 purposes authorized in said Articles. The deposit authorized by
359-17 Section 1 hereof to be made with the Comptroller [State Treasurer]
359-18 shall be made prior to or concurrently with the sale and delivery
359-19 of the new bonds authorized by this Act, but all other proceedings
359-20 relating to the authorization and issuance of such bonds may be had
359-21 prior to the making of such deposit. No revenue bonds shall be
359-22 issued under authority of this Section 5 unless they shall have
359-23 been authorized at an election held in such city in accordance with
359-24 the provisions of Article 704 of the Revised Civil Statutes of
359-25 Texas, 1925, as amended by Chapter 382, Acts of the First Called
359-26 Session of the 44th Legislature. It is especially provided that
359-27 regardless of any provisions to the contrary contained in the law
360-1 under which such new revenue bonds are to be issued, they shall
360-2 constitute a first charge on the income of the waterworks system or
360-3 waterworks and sewer systems, after the payment of the expense of
360-4 maintenance and operation of such system or systems subject only to
360-5 any payments which must be made to the Comptroller [State
360-6 Treasurer] from such income to prevent any default in principal of
360-7 or interest on such outstanding revenue bonds, for the benefit of
360-8 which such deposit shall have been made with the Comptroller [State
360-9 Treasurer]. The right of the holders of said outstanding revenue
360-10 bonds to have any deficiency paid out of such income shall remain
360-11 unimpaired.
360-12 Sec. 6. WITHDRAWAL OF DEPOSITS. After an eligible city has
360-13 made the deposits and payments required under Section 2, at any
360-14 time it may withdraw from the State Treasury the amount of money,
360-15 both principal and interest, deposited on account of any bond by
360-16 exhibiting to the Comptroller [State Treasurer] said bond duly
360-17 cancelled, whereupon the Comptroller [State Treasurer] shall make a
360-18 proper record of the payment and cancellation of such bond.
360-19 Sec. 7. SURRENDER, PAYMENT AND CANCELLATION OF BONDS. At
360-20 any time after an eligible city shall have made the deposits and
360-21 payments required under Section 2, the holder of any such bond,
360-22 irrespective of its maturity date, shall have the right to
360-23 surrender such bond to the Comptroller [State Treasurer] and shall
360-24 receive therefor a sum equivalent to all money then remaining on
360-25 deposit with the Comptroller [State Treasurer], made on account of
360-26 such surrendered bond. Whereupon such bond shall be duly cancelled
360-27 by the Comptroller [State Treasurer], and delivered or forwarded to
361-1 such city.
361-2 Sec. 9. BONDS OF COMPTROLLER [STATE TREASURER]. The bond or
361-3 bonds given by the Comptroller [State Treasurer] under Article 4368
361-4 to secure the faithful execution of the duties of his office
361-5 (except such special bonds as may have been given to protect funds
361-6 of the United States Government) and any and all other bonds which
361-7 may have been given by the Comptroller [State Treasurer], shall be
361-8 construed as protecting all moneys and securities deposited or
361-9 placed with the Comptroller [State Treasurer] under this Act.
361-10 SECTION 21.33. Sections 5, 6, 7, 9, and 11, Chapter 320,
361-11 Acts of the 54th Legislature, Regular Session, 1955 (Article
361-12 1118n-7, Vernon's Texas Civil Statutes), are amended to read as
361-13 follows:
361-14 Sec. 5. DEPOSIT IN STATE TREASURY OF OUTSTANDING WATER
361-15 SYSTEM REVENUE BONDS. An Eligible City shall have the right to
361-16 deposit in the office of the Comptroller [State Treasurer] of the
361-17 State of Texas a sum of money equal to the principal amount of its
361-18 outstanding and unpaid water system revenue bonds that cannot be
361-19 obtained for refunding or redemption plus the amount of interest
361-20 which will accrue on each of said bonds calculated to the date on
361-21 which it is to become due or the date on which it is to become
361-22 optional for prior redemption, or on which it may be redeemed, and
361-23 the contract premium, if any, and, concurrently with such deposit,
361-24 shall pay to the Comptroller [State Treasurer] for his services and
361-25 to reimburse him for his expenses in performing his duties under
361-26 this Act a sum of money equivalent to one-eighth (1/8) of one per
361-27 cent (1%) of the principal amount of said bonds, and one-fourth
362-1 (1/4) of one per cent (1%) of the interest to accrue on all said
362-2 bonds, and an additional amount of money sufficient to pay the
362-3 charges of the bank or trust company at which the principal and
362-4 interest on said bonds are payable for its services in paying such
362-5 principal and interest. The Comptroller [State Treasurer] may rely
362-6 on a certificate by such city as to the amount of the charges made
362-7 by such bank or trust company. At the same time, such city shall
362-8 deliver to the Comptroller [State Treasurer] a certified copy of
362-9 the ordinance authorizing such water system revenue bonds, or a
362-10 certified excerpt therefrom, showing clearly the amounts and the
362-11 date or dates on which interest is due on such bonds, the date when
362-12 the principal matures, and the name and address of the bank or
362-13 trust company at which such principal and interest must be paid.
362-14 It shall be the duty of the Comptroller [State Treasurer] to accept
362-15 such deposits, payments and instruments, and safely to keep and use
362-16 such money for the purposes set forth in this Act, and for no other
362-17 purpose, and no part of such money, except that in payment for his
362-18 services and to reimburse his expenses in performing such services,
362-19 shall be used by or for the State of Texas, or for any creditor of
362-20 the State of Texas, nor shall such money be commingled with any
362-21 other money.
362-22 Sec. 6. COMPTROLLER'S [STATE TREASURER'S] DUTIES. It shall
362-23 be the duty of the Comptroller [State Treasurer] not less than
362-24 fifteen (15) days before such interest is due according to the
362-25 tenor and effect of said bonds, and the principal becomes due, to
362-26 forward by registered mail to the bank or trust company where the
362-27 principal of and interest on such bonds are payable, an amount
363-1 sufficient to pay such principal and interest, and to pay the
363-2 service charges of such bank or trust company. The Comptroller
363-3 [State Treasurer] shall notify such bank or trust company to
363-4 forward to him bonds and coupons thus canceled, and after he shall
363-5 have made a record of their payment and cancellation shall forward
363-6 such canceled bonds and coupons to such city. When an Eligible
363-7 City shall have deposited and paid into the office of the
363-8 Comptroller [State Treasurer] the money and shall have done the
363-9 things required under Section 3 it shall have authority to issue
363-10 additional revenue bonds and refunding bonds as permitted in
363-11 Section 2 hereof.
363-12 Sec. 7. RIGHTS OF HOLDERS TO SURRENDER BONDS. At any time
363-13 after an Eligible City shall have made the deposits and payments
363-14 required under Section 5 of this Act, the holder of any such bond,
363-15 irrespective of its maturity date, shall have the right to
363-16 surrender such bond to the Comptroller [State Treasurer] and shall
363-17 receive therefor a sum equivalent to all money then remaining on
363-18 deposit with the Comptroller [State Treasurer], made on account of
363-19 such surrendered bond; whereupon such bond shall be duly canceled
363-20 by the Comptroller [State Treasurer] and delivered or forwarded to
363-21 such city.
363-22 Sec. 9. WITHDRAWAL OF DEPOSITS FROM STATE TREASURY. After
363-23 an Eligible City has made the deposits and payments required under
363-24 Section 5, at any time it may withdraw from the State Treasury the
363-25 amount of money, both principal and interest, deposited on account
363-26 of any bond by exhibiting to the Comptroller [State Treasurer] said
363-27 bond duly canceled, whereupon the Comptroller [State Treasurer]
364-1 shall make a proper record of the payment and cancellation of such
364-2 bond.
364-3 Sec. 11. BOND OF COMPTROLLER [STATE TREASURER]. The bond or
364-4 bonds given by the Comptroller [State Treasurer] under Article 4368
364-5 to secure the faithful execution of the duties of his office
364-6 (except such special bonds as may have been given to protect funds
364-7 of the United States Government) and any and all other bonds which
364-8 may have been given by the Comptroller [State Treasurer] shall be
364-9 construed as protecting all moneys and securities deposited or
364-10 placed with the Comptroller [State Treasurer] under this Act.
364-11 SECTION 21.34. Section 2, Chapter 119, Acts of the 58th
364-12 Legislature, Regular Session, 1963 (Article 1118n-10, Vernon's
364-13 Texas Civil Statutes), is amended to read as follows:
364-14 Sec. 2. REFUNDING BONDS SECURED BY PLEDGE OF REVENUES;
364-15 ISSUANCE; INTEREST; DEPOSITS IN STATE TREASURY. An Eligible City
364-16 is authorized to issue bonds, without the necessity of an election,
364-17 for the purpose of refunding outstanding waterworks revenue bonds
364-18 and sewer revenue bonds into an issue of refunding bonds which will
364-19 be secured by and payable from a pledge of revenues of both the
364-20 waterworks system and the sewer system. Such refunding bonds shall
364-21 bear a rate of interest specified by the governing body of the
364-22 City, but not to exceed six per cent (6%) per annum, and mature
364-23 serially or otherwise in not to exceed forty (40) years. All or
364-24 any part of such refunding bonds may, in lieu of being exchanged by
364-25 the Comptroller of Public Accounts for outstanding bonds, be sold
364-26 for cash, in which event, there shall be deposited with the
364-27 Comptroller [State Treasurer] an amount of money sufficient to pay
365-1 the unexchanged portion thereof plus interest to maturity on bonds
365-2 which are not optional for redemption prior to maturity, and to the
365-3 option date on bonds which are optional. There shall also be
365-4 deposited with the Comptroller [State Treasurer] the additional
365-5 amount required by Chapter 541, Acts of the Fifty-first Legislature
365-6 as amended. The Comptroller [State Treasurer] shall hold and
365-7 disburse such funds as provided in Chapter 541 except that he is
365-8 not required to transmit money to the Trustee or the bank of
365-9 payment until one business day before each interest payment date on
365-10 the bonds being refunded.
365-11 SECTION 21.35. Section 2A(d), Chapter 627, Acts of the 63rd
365-12 Legislature, Regular Session, 1973 (Article 1118n-11, Vernon's
365-13 Texas Civil Statutes), is amended to read as follows:
365-14 (d) As to refunding bonds covered by this section, if
365-15 obligations to be refunded are not callable at the time of
365-16 refunding but will be subject to redemption before maturity, the
365-17 issuer may provide in the refunding proceedings for redeeming those
365-18 obligations before maturity, and if it does so, the issuer need
365-19 deposit with the Comptroller [State Treasurer] under this Act no
365-20 more than is necessary to provide for payment of the principal and
365-21 interest on those obligations as they are redeemed.
365-22 SECTION 21.36. Sections 4, 6, 7, and 8, Chapter 627, Acts of
365-23 the 63rd Legislature, Regular Session, 1973 (Article 1118n-11,
365-24 Vernon's Texas Civil Statutes), are amended to read as follows:
365-25 Sec. 4. SALE FOR CASH; REDEMPTION. The refunding bonds
365-26 authorized by this Act shall be sold for cash in such manner and at
365-27 such price (not less than par and accrued interest to date of
366-1 delivery) as determined within the discretion of the governing body
366-2 of the issuer, and may be sold in such principal amounts as are
366-3 necessary to provide all or any part of the money required to pay
366-4 the principal of and interest on any obligations being refunded, as
366-5 the same mature and come due, or to provide all or any part of the
366-6 money required to redeem any obligations being refunded, prior to
366-7 maturity, on the date or dates upon which said obligations have
366-8 been called for such redemption, including principal, any required
366-9 premium, the interest to accrue on said obligations to said
366-10 redemption date or dates, together with an amount sufficient to pay
366-11 all expenses related to the issuance of the refunding bonds and the
366-12 expenses of paying the obligations being refunded under this Act.
366-13 If any of the obligations being refunded through the sale of
366-14 refunding bonds under this Act are subject to redemption prior to
366-15 maturity, they shall be duly called for such redemption on a date
366-16 or dates upon which they are so redeemable, in accordance with the
366-17 terms thereof, and the proceedings pertaining to such call, and any
366-18 notice of redemption required in connection therewith, shall be
366-19 submitted to the attorney general along with the proceedings
366-20 authorizing the issuance of said refunding bonds. However, if the
366-21 notice of redemption in connection with any such obligations being
366-22 refunded is required by the terms thereof to be given or published
366-23 at some future time after the date of the refunding bonds, such
366-24 obligations shall not be considered as being then subject to
366-25 redemption prior to maturity for the purposes of this Act, and in
366-26 calculating the amount required to be deposited with the
366-27 Comptroller [state treasurer] under this Act, such amount shall be
367-1 made sufficient to provide for the payment of the principal of and
367-2 interest on said obligations being refunded as the same mature and
367-3 come due, without being redeemed prior to maturity.
367-4 Sec. 6. DEPOSITS WITH COMPTROLLER [TREASURER]; CERTIFICATION
367-5 OF DEPOSIT ADEQUACY; DUTIES OF COMPTROLLER [TREASURER]. (a) The
367-6 issuer shall immediately deposit with the Comptroller [state
367-7 treasurer] (1) the proceeds from the sale of the refunding bonds,
367-8 to the extent such proceeds are not invested, and (2) all of said
367-9 investments, and (3) an additional amount, if necessary, which
367-10 shall be sufficient together with such other deposits to pay the
367-11 principal of and interest on the obligations being refunded, to pay
367-12 the Comptroller [state treasurer] for his services and to reimburse
367-13 him for his expenses in performing his duties under this Act, equal
367-14 to one-twentieth of one percent of the principal or par amount of
367-15 the obligations being refunded, and one-eighth of one percent of
367-16 the interest to accrue thereon (but not to exceed a total of $2,000
367-17 in connection with each issue of refunding bonds issued hereunder),
367-18 plus an additional amount of money sufficient to pay the service
367-19 charges of the place or places of payment of said obligations for
367-20 paying and redeeming same. The Comptroller [treasurer] shall
367-21 certify to the issuer as to the adequacy of the investments (and
367-22 money) deposited, giving due regard to the dates the principal and
367-23 interest on the investments are scheduled to mature and come due.
367-24 In calculating the adequacy of said investments required to be so
367-25 deposited, the Comptroller [state treasurer] may rely on receiving
367-26 both the principal and the interest scheduled to mature and come
367-27 due on said investments in accordance with their terms,
368-1 respectively, and the amount which otherwise would be required to
368-2 be so deposited, if no interest were scheduled to come due thereon,
368-3 may be reduced accordingly. It shall be the duty of the
368-4 Comptroller [state treasurer] to accept said deposits of
368-5 investments and to collect promptly, when due and payable, all
368-6 principal of and interest on said investments, but he shall not
368-7 reinvest the same. It is further provided that the aforesaid
368-8 investments shall be made in such manner that the proceeds
368-9 therefrom, without any reinvestment, will be available for deposit,
368-10 and shall be deposited, by the Comptroller [state treasurer], in
368-11 the place or places of payment, in current available funds, in the
368-12 required amounts, not later than one business day before each
368-13 scheduled maturity date, due date, or redemption date,
368-14 respectively, of said obligations being refunded. The Comptroller
368-15 [state treasurer] may rely on a certificate by the secretary or the
368-16 chief clerical officer of the governing body of the issuer as to
368-17 the amount of such service charges of the place or places of
368-18 payment.
368-19 (b) It shall be the duty of the Comptroller [state
368-20 treasurer], in his official capacity of public office, to accept
368-21 and keep safely all deposits of money and investments made with him
368-22 under this Act, and all proceeds from said investments; and no part
368-23 of such deposits of money and investments, or proceeds therefrom,
368-24 (excepting the amount paid to him for his services and expenses)
368-25 shall be used by or for the benefit of the State of Texas, or for
368-26 the benefit of any creditor of the State of Texas, and shall not be
368-27 commingled with the General Fund of the state, or any other special
369-1 funds or accounts held by the Comptroller [state treasurer]. Each
369-2 such deposit of money and investments, and proceeds therefrom,
369-3 (excepting the amount paid to him for his services and expenses)
369-4 shall be kept and maintained separate and apart from all other
369-5 money and investments, and shall be kept and held, in escrow, and
369-6 in trust, by the Comptroller [state treasurer], and shall be
369-7 charged with an irrevocable first lien and pledge in favor of the
369-8 holders of the obligations to be paid therefrom, and said deposits
369-9 of money and investments, and proceeds therefrom, shall be used
369-10 only for the purposes provided in this Act. Each such deposit of
369-11 money and investments, and proceeds therefrom, shall be regarded as
369-12 public funds, and legal title thereto shall be in the Comptroller
369-13 [state treasurer], in his official capacity as trustee, until paid
369-14 out as herein provided, but equitable title thereto shall be in the
369-15 issuer, until so paid out. The writ of mandamus, and all other
369-16 legal remedies, shall be available to any bondholder, the issuer or
369-17 any other party at interest to require the Comptroller [state
369-18 treasurer] to perform his functions and duties under this Act. The
369-19 surety bond or bonds given by the Comptroller [state treasurer] in
369-20 connection with the proper performance of his duties of office
369-21 (excepting any special bonds given to protect funds of the United
369-22 States government) shall protect and be construed as protecting all
369-23 said deposits of money and investments, and proceeds therefrom.
369-24 The Comptroller [state treasurer] shall not in any way invest or
369-25 reinvest any money deposited with him or received by him from any
369-26 investment under this Act. In the event that any surplus funds
369-27 should remain on hand with the Comptroller [state treasurer] in
370-1 connection with any deposit of money or investments, after he has
370-2 finally performed all of his duties relating thereto under this
370-3 Act, such surplus shall be returned to the issuer.
370-4 (c) When there is more than one place of payment for any
370-5 such obligations being refunded, the Comptroller [state treasurer]
370-6 shall make all of the deposits required to be made by him under
370-7 this Act at the one of said places of payment having the largest
370-8 capital and surplus and located in the State of Texas, and if none
370-9 of such places of payment is located in the State of Texas, then at
370-10 the place of payment having the largest capital and surplus; and it
370-11 shall be the duty of such place of payment, and the Comptroller
370-12 [state treasurer] shall so instruct it, to make the required
370-13 current funds available, to the extent necessary, at the other
370-14 place or places of payment, to pay or redeem said obligations under
370-15 presentment therefor.
370-16 Sec. 7. ALTERNATIVE PLACE OF DEPOSIT; DUTIES OF PLACES OF
370-17 PAYMENT. It is further provided, however, that in the alternative
370-18 to making the deposit of said investments (together with any
370-19 uninvested money) with the Comptroller [state treasurer], the
370-20 issuer shall have the option of making such deposit with any place
370-21 of payment for the obligations being refunded, if said place of
370-22 payment is a bank or trust company located in the State of Texas,
370-23 has trust powers, and is a member of the Federal Reserve System.
370-24 In such case, such place of payment shall perform all applicable
370-25 and pertinent functions and duties provided in this Act for the
370-26 Comptroller [state treasurer], and shall be substituted hereunder
370-27 for the Comptroller [state treasurer] to the extent appropriate and
371-1 practical, except as otherwise provided by this section. The
371-2 deposits of such investments and money shall be held for
371-3 safekeeping, in escrow, and in trust for and charged with an
371-4 irrevocable first lien and pledge in favor of and for the benefit
371-5 of the holders of the obligations being refunded, all pursuant to
371-6 an appropriate trust or escrow agreement between the issuer and the
371-7 place of payment, upon such further terms and conditions, and for
371-8 such consideration as may be agreeable to the parties thereto.
371-9 Further, all deposits of money with any such place of payment shall
371-10 constitute public funds and shall be secured at all times by a
371-11 pledge of direct obligations of the United States of America,
371-12 obligations the payment of principal of and interest on which are
371-13 unconditionally guaranteed by the United States of America, or
371-14 obligations which, in the opinion of the Attorney General of the
371-15 United States of America, are general obligations of the United
371-16 States of America and backed by its full faith and credit. When
371-17 there is more than one place of payment for any such obligations
371-18 being refunded it shall be the duty of such place of payment, with
371-19 which such deposit is made, to make the required current funds
371-20 available, to the extent necessary, at the other place or places of
371-21 payment, to pay or redeem said obligations under presentment
371-22 therefor.
371-23 Sec. 8. DISCHARGE AND FINAL PAYMENT OR REDEMPTION OF
371-24 OBLIGATIONS; SUBORDINATION TO REFUNDED OBLIGATIONS. When the
371-25 initial deposit of investments (and any uninvested money) is made
371-26 with the Comptroller [state treasurer] or with a place of payment
371-27 under this Act, such deposit shall constitute the making of firm
372-1 banking and financial arrangements for the discharge and final
372-2 payment or redemption of the obligations being refunded, and
372-3 although such obligations being refunded shall continue to be
372-4 obligations of the issuer, automatically they shall become
372-5 obligations of the issuer secured solely by and payable solely from
372-6 such deposit and the proceeds therefrom; and upon the making of
372-7 such deposit, all previous encumbrances existing in connection with
372-8 said obligations being refunded (whether in connection with taxes,
372-9 revenues, real and personal property, or any other source of
372-10 security or payment) automatically shall terminate and be finally
372-11 discharged and released, as a matter of law, and said encumbrances
372-12 shall be of no further force or effect; and although said
372-13 obligations being so refunded will remain outstanding, they shall
372-14 be regarded as being outstanding only for the purpose of receiving
372-15 the funds provided by the issuer for their payment or redemption
372-16 under this Act, and they shall not be regarded as being outstanding
372-17 in ascertaining the power of the issuer to issue bonds, or in
372-18 calculating any limitations in connection therewith, or for any
372-19 other purpose. It is further provided, however, notwithstanding
372-20 the foregoing language of this section, that the issuer may, in the
372-21 alternative to the foregoing language of this section, provide in
372-22 the proceedings authorizing the issuance of such refunding bonds
372-23 that such refunding bonds shall be subordinate to the obligations
372-24 being refunded, but only in the manner and to the extent provided
372-25 in said authorizing proceedings; and, except for any such specific
372-26 provisions to the contrary in said authorizing proceedings, the
372-27 foregoing language of this section shall be fully applicable.
373-1 SECTION 21.37. Sections 6-10 and 12, Chapter 642, Acts of
373-2 the 65th Legislature, Regular Session, 1977 (Article 1118n-12,
373-3 Vernon's Texas Civil Statutes), are amended to read as follows:
373-4 Sec. 6. DEPOSIT OF PROCEEDS WITH COMPTROLLER [STATE
373-5 TREASURER]; DUTIES. When any refunding bonds issued under the
373-6 provisions of this Act are sold and delivered to the purchaser, the
373-7 board immediately shall have deposited with the Comptroller [state
373-8 treasurer], from the proceeds of the sale, and any other funds
373-9 available for that purpose, the amount which will be required to
373-10 pay the principal of and interest on the obligations being refunded
373-11 as they mature and come due, and the amount which will be required
373-12 to redeem prior to maturity any obligations being refunded, on the
373-13 date or dates upon which these obligations have been called for
373-14 redemption, including principal, any required redemption premium,
373-15 and the interest to accrue on those obligations to the redemption
373-16 date or dates, together with an additional amount to pay the
373-17 Comptroller [state treasurer] for his services and to reimburse him
373-18 for his expenses in performing his duties under this Act, equal to
373-19 one-twentieth of one percent of the principal or par amount of the
373-20 obligations being refunded, and one-eighth of one percent of the
373-21 interest to accrue thereon, but not to exceed a total of $1,000 in
373-22 connection with each issue of refunding bonds issued under this
373-23 Act, plus an additional amount of money sufficient to pay the
373-24 service charges of the place or places of payment of the
373-25 obligations for paying and redeeming them. The Comptroller [state
373-26 treasurer] may rely on a certificate or other instrument or
373-27 document which shall be filed with him by the issuer showing
374-1 clearly the date or dates upon which the principal matures and
374-2 interest comes due on the obligations being refunded, and the
374-3 amounts thereof, and the date or dates, if any, on which the
374-4 obligations have been called for redemption prior to maturity,
374-5 together with the redemption price, and the place or places of
374-6 payment of the obligations being refunded, and the charges to be
374-7 made by the place or places of payment for paying and redeeming the
374-8 obligations. It shall be the duty of the Comptroller [state
374-9 treasurer] to make the appropriate required part of the deposits
374-10 available at the place or places of payment, in current and
374-11 immediately available funds, on or before, but not later than, each
374-12 maturity date, due date, or redemption date, respectively, of the
374-13 obligations being refunded, in order to pay the required amounts on
374-14 each date, plus the service charges of the place or places of
374-15 payment.
374-16 Sec. 7. INVESTMENT OF PROCEEDS. It is provided, however,
374-17 that instead of depositing money with the Comptroller [state
374-18 treasurer] as required by Section 6 of this Act, except for the
374-19 money to be paid to him for his services and expenses, which in all
374-20 events shall be deposited in cash, the board may, at its option,
374-21 unless the board determines, in its sole discretion, that money is
374-22 required to be deposited, immediately invest all or any part of the
374-23 proceeds from the sale of the refunding bonds, and any other
374-24 necessary available funds, in direct obligations of the United
374-25 States of America, or in obligations the payment of the principal
374-26 of and interest on which are unconditionally guaranteed by the
374-27 United States of America, or in obligations which, in the opinion
375-1 of the Attorney General of the United States of America, are
375-2 general obligations of the United States of America and backed by
375-3 its full faith and credit, which investments will mature, and bear
375-4 interest payable, at such times and in such amounts as will
375-5 provide, without any reinvestment, not less than the amount of
375-6 money, in addition to any money initially deposited for that
375-7 purpose, required for the payment of the principal of and interest
375-8 on the obligations being refunded, as they mature and come due, and
375-9 for the payment of the redemption price of any obligations being
375-10 refunded and redeemed prior to maturity, on the date or dates on
375-11 which the obligations being refunded have been called for
375-12 redemption, including principal, any required redemption premium,
375-13 and the interest to accrue on the obligations to the redemption
375-14 date or dates, together with the additional amount required to pay
375-15 the service charges of the place or places of payment of the
375-16 obligations for paying and redeeming them. The board shall deposit
375-17 all of the investments immediately with the Comptroller [state
375-18 treasurer]. In calculating the amount of the investments required
375-19 to be so deposited, the issuer and the Comptroller [state
375-20 treasurer] shall rely on receiving both the principal and interest,
375-21 if any, scheduled to mature and accrue or come due on the
375-22 investments, to the extent that the principal and interest are
375-23 scheduled to mature and accrue or come due prior to the date or
375-24 dates of the maturities, due dates, or redemption date or dates,
375-25 respectively, of the obligations being refunded; and the amount
375-26 which otherwise would be required to be deposited, if no interest
375-27 or increase were scheduled to accrue or come due, may, at the
376-1 option of the board, be reduced accordingly. It shall be the duty
376-2 of the Comptroller [state treasurer] to accept the deposits of
376-3 investments and to collect promptly, when due and payable, all
376-4 principal of and interest on the investments, but he shall not
376-5 reinvest them. It is further provided that the aforesaid
376-6 investments shall be made in a manner that the proceeds from them,
376-7 without any reinvestment, will be available for deposit, and shall
376-8 be deposited, by the Comptroller [state treasurer], in the place or
376-9 places of payment, in current and immediately available funds, in
376-10 the required amounts, on or before, and not later than, each
376-11 maturity date, due date, or redemption date, respectively, of the
376-12 obligations being refunded.
376-13 Sec. 8. DUTIES OF COMPTROLLER [TREASURER] AS TO HANDLING AND
376-14 SAFEKEEPING OF PROCEEDS. It shall be the duty of the Comptroller
376-15 [state treasurer], ex officio, in his official capacity of public
376-16 office, to accept and keep safely all deposits of money and
376-17 investments made under this Act, and all proceeds from said
376-18 investments; but no part of such deposits of money and investments,
376-19 or proceeds therefrom, excepting the amount paid to him for his
376-20 services and expenses, shall constitute a part of the state
376-21 treasury, or be used by or for the state or for the benefit of any
376-22 creditor of the state, and shall not be commingled with the general
376-23 revenue fund of the state or any other special funds or accounts
376-24 held by the Comptroller [state treasurer]. The Comptroller [state
376-25 treasurer] shall keep and maintain each such deposit of money and
376-26 investments, and proceeds from them, excepting the amount paid to
376-27 him for his services and expenses, separate and apart from all
377-1 other deposits, money, funds, accounts, and investments, and each
377-2 such deposit of money and investments, and proceeds from them,
377-3 shall be kept and held in escrow and in trust by the Comptroller
377-4 [state treasurer], for and on behalf of, and charged with an
377-5 irrevocable first lien and pledge in favor of, the holders of the
377-6 obligations to be paid the deposits, and the deposits of money and
377-7 investments, and proceeds from them, shall be used only for the
377-8 purposes provided in this Act. Each deposit of money and
377-9 investments, and proceeds from them shall be public funds, and
377-10 legal title shall be in the Comptroller [state treasurer], in his
377-11 official capacity as trustee, until paid out as provided in this
377-12 Act, but equitable title shall be in the issuer, until paid out.
377-13 The writ of mandamus and all other legal and equitable remedies
377-14 shall be available to any bondholder, the issuer, or any other
377-15 party at interest to require the Comptroller [state treasurer] to
377-16 perform his functions and duties under this Act. The surety bond
377-17 or bonds given by the Comptroller [state treasurer] in connection
377-18 with the proper performance of his duties of office, excepting any
377-19 special bonds given to protect funds of the United States shall
377-20 protect and be construed as protecting all the deposits of money
377-21 and investments, and proceeds from them. The Comptroller [state
377-22 treasurer] shall not in any way invest or reinvest any money
377-23 deposited with him or received by him from investments deposited
377-24 with him under this Act. In the event that any surplus funds
377-25 should be on hand with the Comptroller [state treasurer] in
377-26 connection with any deposit of money or investments, or proceeds
377-27 from them, the surplus shall be returned to the issuer.
378-1 Sec. 9. PLACE OF PAYMENT. If there is more than one place
378-2 of payment for any obligations being refunded under this Act, the
378-3 Comptroller [state treasurer] shall make all deposits required
378-4 under this Act at the place of payment located in the state, if
378-5 there is one, or if there is more than one place of payment located
378-6 in the state, or if no place of payment is located in the state,
378-7 then at the one of the places of payment having the largest capital
378-8 and surplus. It shall be the statutory duty of the place of
378-9 payment, and the Comptroller [state treasurer] shall instruct it,
378-10 to make the appropriate financial arrangements so that the
378-11 necessary required current funds will be available, to the extent
378-12 necessary, at the other places of payment, to pay or redeem the
378-13 obligations when due; provided that this section shall not apply in
378-14 the event the board proceeds under Section 10 of this Act.
378-15 Sec. 10. ALTERNATIVE PLACE OF DEPOSIT. It is further
378-16 provided, however, that in the alternative to making the deposit of
378-17 money or investments with the Comptroller [state treasurer] in
378-18 connection with refunding bonds issued and sold under this Act, and
378-19 notwithstanding any provisions of this Act to the contrary, the
378-20 board shall have the option of making the deposit of money or
378-21 investments with any place of payment (paying agent), wherever
378-22 located, for the obligations being refunded, or, at the option of
378-23 the board, with any trustee under any trust indenture, trust
378-24 agreement, deed of trust, or other instrument, securing the
378-25 obligations being refunded. In that case the place of payment or
378-26 trustee shall, to the extent practicable, substantially perform the
378-27 applicable and pertinent functions and duties provided in this Act
379-1 for the Comptroller [state treasurer], to the extent appropriate
379-2 and practical, and the place of payment or trustee shall be
379-3 substituted for the Comptroller [state treasurer] under this Act to
379-4 the extent appropriate and practical, except as otherwise provided
379-5 by this section. Such deposits of money and investments shall be
379-6 held for safekeeping, in escrow, in trust for, and charged with an
379-7 irrevocable first lien and pledge in favor of, and for the benefit
379-8 of, the holders of the obligations being refunded, and the issuer
379-9 and the place of payment or trustee, may execute an appropriate
379-10 trust or escrow agreement on the terms and conditions, and for the
379-11 consideration agreeable to the parties to the agreement. The
379-12 agreement may provide that any deposits of money may be invested in
379-13 direct obligations of the United States of America, or obligations
379-14 the payment of principal of and interest on which are
379-15 unconditionally guaranteed by the United States of America, or
379-16 obligations which, in the opinion of the Attorney General of the
379-17 United States of America, are general obligations of the United
379-18 States of America and backed by its full faith and credit, or may
379-19 be placed in interest bearing time deposits secured at all times by
379-20 an equal amount in market value of any of the federal obligations
379-21 named above. The agreement further shall provide for deposits with
379-22 the place or places of payment (paying agent or agents) to pay or
379-23 redeem the obligations being refunded when due, and may provide
379-24 that at any time the amount of money and investments held in escrow
379-25 exceeds the amount required for purposes of this Act, the excess
379-26 shall be transferred and delivered to the issuer, or as directed by
379-27 the board, to be used for any lawful purpose, including the payment
380-1 of revenue bonds issued pursuant to this Act or otherwise, all at
380-2 the option of the board.
380-3 Sec. 12. DISCHARGE AND FINAL PAYMENT OR REDEMPTION OF
380-4 OBLIGATIONS; SUBORDINATION TO REFUNDED OBLIGATIONS. When the
380-5 initial deposit of money or investments is made with the
380-6 Comptroller [state treasurer] or with a place of payment (paying
380-7 agent) or trustee in accordance with this Act for any obligations
380-8 being refunded under this Act, the deposit shall constitute the
380-9 making of firm banking and financial arrangements for the discharge
380-10 and final payment or redemption of the obligations being refunded,
380-11 and although the obligations being refunded continue to be
380-12 obligations of the issuer, automatically they become obligations of
380-13 the issuer secured solely by and payable solely from the deposit
380-14 and the proceeds from them; and on making the deposit, all previous
380-15 encumbrances, including all liens, pledges, mortgages, deeds of
380-16 trust, trust indentures, or trust agreements, existing in
380-17 connection with the obligations being refunded, whether in
380-18 connection with revenues, real, personal, and mixed property, or
380-19 any other source of security or payment, automatically terminate
380-20 and are finally discharged and released, as a matter of law, and
380-21 the encumbrances shall be of no further force or effect; and
380-22 although the obligations being refunded will remain outstanding,
380-23 they shall be regarded as being outstanding only for the purpose of
380-24 receiving the funds provided by the issuer for their payment or
380-25 redemption under this Act, and they shall not be regarded as being
380-26 outstanding in ascertaining the power of the issuer to issue bonds,
380-27 or in calculating any limitations in connection therewith, or for
381-1 any other purpose. It is further provided, however,
381-2 notwithstanding the foregoing provisions of this section, that the
381-3 board may, in the alternative to the foregoing provisions of this
381-4 section, provide in the proceedings authorizing the issuance of the
381-5 refunding bonds that the refunding bonds are subordinate to the
381-6 obligations being refunded, but only in the manner and to the
381-7 extent provided in the authorizing proceedings; and, except for any
381-8 specific provisions to the contrary in the authorizing proceedings,
381-9 the foregoing provisions of this section are fully applicable.
381-10 SECTION 21.38. Section 8(c), Chapter 341, Acts of the 57th
381-11 Legislature, Regular Session, 1961 (Article 1187f, Vernon's Texas
381-12 Civil Statutes), is amended to read as follows:
381-13 (c) Refunding obligations shall be authorized and shall be
381-14 executed and mature as is provided in this Act for original
381-15 obligations. They shall be approved by the Attorney General of the
381-16 State of Texas as in the case of original obligations, and shall be
381-17 registered by the Comptroller of Public Accounts of the State of
381-18 Texas upon surrender and cancellation of the obligations to be
381-19 refunded; but in lieu thereof, the ordinance or resolution
381-20 authorizing their issuance may provide that they shall be sold at
381-21 public or private sale and the proceeds thereof deposited in any
381-22 place or places where any of the underlying obligations are
381-23 payable, or with the Comptroller [State Treasurer], in which case
381-24 the refunding obligations may be issued in an amount sufficient,
381-25 not only to pay the principal of the underlying obligations, but
381-26 also to pay the interest on the underlying obligations to their
381-27 option or maturity dates, and the Comptroller [of Public Accounts]
382-1 shall register them without the surrender and cancellation of the
382-2 underlying obligations. In those situations where the proceeds of
382-3 revenue refunding obligations are deposited in a place or places
382-4 where the underlying obligations are payable, or with the
382-5 Comptroller [State Treasurer], they shall be so deposited under an
382-6 escrow agreement so that such proceeds and interest earned from the
382-7 investment of such proceeds as hereinafter provided, will be
382-8 available for the payment of the interest on and principal of said
382-9 underlying obligations as such interest and principal respectively
382-10 become due; and such escrow agreement may provide that such
382-11 proceeds may, until such time as the same are needed to pay
382-12 interest and principal as the same become due, be invested in
382-13 direct obligations of the United States of America, in which
382-14 instances the interest earned on such investments may be pledged to
382-15 the payment of the principal of and interest on the underlying
382-16 obligations, the refunding obligations or shall be considered as
382-17 revenues of the improvements and facilities.
382-18 SECTION 21.39. Section 7.11, Texas Non-Profit Corporation
382-19 Act (Article 1396-7.11, Vernon's Texas Civil Statutes), is amended
382-20 to read as follows:
382-21 Sec. 7.11. DEPOSIT WITH COMPTROLLER [STATE TREASURER] OF
382-22 AMOUNT DUE CERTAIN PERSONS. A. Upon the voluntary or involuntary
382-23 dissolution of a corporation, the portion of the assets
382-24 distributable to a creditor or member or other person who is
382-25 unknown or cannot be found after the exercise of reasonable
382-26 diligence by the person or persons responsible for the distribution
382-27 in liquidation of the corporation's assets shall be reduced to cash
383-1 and deposited with the Comptroller [State Treasurer], together with
383-2 a statement giving the name of the person, if known, entitled to
383-3 such fund, his last known address, the amount of his distributive
383-4 portion, and such other information about such person as the
383-5 Comptroller [State Treasurer] may reasonably require, whereupon the
383-6 person or persons responsible for the distribution in liquidation
383-7 of the corporation's assets shall be released and discharged from
383-8 any further liability with respect to the funds so deposited. The
383-9 Comptroller [State Treasurer] shall issue his receipt for such fund
383-10 and shall deposit same in a special account to be maintained by
383-11 him.
383-12 B. On receipt of satisfactory written proof of ownership or
383-13 of right to such fund within seven (7) years from the date such
383-14 fund was so deposited, the [State Treasurer shall certify such fact
383-15 to the] Comptroller of Public Accounts[, who] shall issue proper
383-16 warrant therefor drawn on the State Treasury [Treasurer] in favor
383-17 of the person or persons then entitled thereto. If no claimant has
383-18 made satisfactory proof of rights to such fund within seven (7)
383-19 years from the time of such deposit the Comptroller [State
383-20 Treasurer] shall then cause to be published in one issue of a
383-21 newspaper of general circulation in Travis County, Texas, a notice
383-22 of the proposed escheat of such fund, giving the name of the
383-23 creditor, member, or other person apparently entitled thereto, his
383-24 last known address, if any, the amount of the fund so deposited,
383-25 and the name of the dissolved corporation from whose assets such
383-26 fund was derived. If no claimant makes satisfactory proof of right
383-27 to such fund within two months from the time of such publication,
384-1 the fund so unclaimed shall thereupon automatically escheat to and
384-2 become the property of the General Revenue Fund of the State of
384-3 Texas.
384-4 SECTION 21.40. Sections 1, 4, and 5, Chapter 65, Acts of the
384-5 43rd Legislature, 2nd Called Session, 1934 (Article 2606a, Vernon's
384-6 Texas Civil Statutes), are amended to read as follows:
384-7 Sec. 1. FORM AND REQUISITES. The Governor of the State of
384-8 Texas is hereby authorized to have printed manuscript bonds of the
384-9 State of Texas in convenient denominations to be determined by him
384-10 for the purpose of refunding the principal of the bonds hereinafter
384-11 mentioned. Said bonds shall be designated "State of Texas
384-12 Refunding Bonds, Issue of 1934." Said bonds shall be numbered and
384-13 dated as hereinafter indicated and shall bear the rate of interest
384-14 hereinafter fixed, and shall become due and payable on the dates
384-15 hereinafter shown. Interest paying dates on the various bonds
384-16 authorized herein shall be fixed as hereinafter indicated. The
384-17 form of such bonds shall be prepared by the Attorney General. Each
384-18 of them shall be signed by the Governor and the Comptroller
384-19 [Treasurer] of the State of Texas and [countersigned and]
384-20 registered by the Comptroller, and shall have the state seal
384-21 affixed thereto.
384-22 Sec. 4. REGISTRATION BY COMPTROLLER; DESTRUCTION OF
384-23 EXCHANGED BONDS. After said refunding bonds have been prepared,
384-24 signed and sealed the same shall be delivered to the State
384-25 Comptroller of Public Accounts for registration by him and held by
384-26 said Comptroller to be exchanged by him upon the delivery and
384-27 surrender to him of a like amount of bonds for which said refunding
385-1 bonds were issued. When the Comptroller shall have received the
385-2 bonds now outstanding in exchange for refunding bonds, said
385-3 outstanding bonds for which refunding bonds shall be exchanged
385-4 shall be by him destroyed by burning the same in the presence of
385-5 the [State Treasurer and the] Attorney General. When said bonds
385-6 shall have been destroyed each of said officers shall sign a
385-7 certificate to the effect that said bonds have been destroyed and
385-8 file same with the Secretary of State of the State of Texas.
385-9 Sec. 5. AUDIT OF OUTSTANDING BONDS. It shall be the duty of
385-10 the State Auditor and Efficiency Expert to inspect and audit all of
385-11 the outstanding State bonds held by the various State funds as
385-12 outlined in this Act and to submit his findings and recommendation
385-13 to the Governor as to the respective amounts of outstanding
385-14 indebtedness held by the various funds that will be necessary to be
385-15 refunded under the terms of this Act. The Comptroller [State
385-16 Treasurer] is hereby directed and instructed to make the exchange
385-17 of bonds herein provided for.
385-18 SECTION 21.41. Section 9, The Texas Engineering Practice Act
385-19 (Article 3271a, Vernon's Texas Civil Statutes), is amended to read
385-20 as follows:
385-21 Sec. 9. RECEIPTS AND DISBURSEMENTS. The Secretary of the
385-22 Board shall receive and account for all moneys derived under the
385-23 provisions of this Act, and shall pay the same weekly to the
385-24 Comptroller [State Treasurer] who shall keep such moneys in a
385-25 separate fund to be known as the "Professional Engineers' Fund".
385-26 Such fund shall be paid out only by warrant of the State
385-27 Comptroller [upon the State Treasurer,] upon itemized vouchers,
386-1 approved by the Chairman and attested by the Secretary of the
386-2 Board. All moneys in the "Professional Engineers' Fund" are hereby
386-3 specifically appropriated for the use of the Board in the
386-4 administration of this Act. The Secretary of the Board shall give
386-5 a surety bond to the Governor of the State of Texas in the sum of
386-6 Two Thousand Five Hundred ($2,500.00) Dollars. The premium on said
386-7 bond shall be paid out of the "Professional Engineers' Fund". The
386-8 Secretary of the Board shall receive such salary as the Board shall
386-9 determine in addition to the compensation and expenses provided for
386-10 in this Act. The Board shall employ such clerical or other
386-11 assistants as are necessary for the proper performance of its work,
386-12 and may make expenditures of this fund for any purpose which in the
386-13 opinion of the Board is reasonably necessary for the proper
386-14 performance of its duties under this Act. Under no circumstances
386-15 shall the total amount of warrants issued by the State Comptroller
386-16 in payment of the expenses and compensation provided for in this
386-17 Act exceed the amount of the "Professional Engineers' Fund".
386-18 Provided further, that the salaries paid herein shall not be in
386-19 excess of salaries paid for similar work in other departments.
386-20 SECTION 21.42. Section 13(b), Texas Driver and Traffic
386-21 Safety Education Act (Article 4413(29C), Vernon's Texas Civil
386-22 Statutes), is amended to read as follows:
386-23 (b)(1) License, application, and registration fees shall be
386-24 collected by the commissioner and deposited with the comptroller
386-25 [state treasurer]. Fees shall be sufficient to cover
386-26 administrative costs and may not be subject to refund. Fees shall
386-27 be as follows:
387-1 (A)(i) the initial fee for a driver education
387-2 school license is $1,000 plus $850 for each branch location;
387-3 (ii) the initial fee for a driving safety
387-4 school license is an appropriate amount established by the board
387-5 not to exceed $200; and
387-6 (iii) the initial fee for a course
387-7 provider license is an appropriate amount established by the board
387-8 not to exceed $2,000, except that this fee may be waived by the
387-9 agency if revenue received by the agency from the course provider
387-10 is sufficient to fund the cost of licensing the course provider;
387-11 (B) the annual renewal fee for a course
387-12 provider, driving safety school, driver education school, and
387-13 branch school is an appropriate amount established by the board not
387-14 to exceed $200, but may be waived by the agency if revenue
387-15 generated by the issuance of uniform certificates of completion and
387-16 driver education certificates is sufficient to fund the cost of
387-17 administering this Act and Subchapter B, Chapter 543,
387-18 Transportation Code [Section 143A, Uniform Act Regulating Traffic
387-19 on Highways (Article 6701d, Vernon's Texas Civil Statutes)];
387-20 (C) the fee for a change of address of a driver
387-21 education school is $180 and of a driving safety school or course
387-22 provider is $50;
387-23 (D) the fee for a change of name of:
387-24 (i) a driver education school or course
387-25 provider or an owner of a driver education school or course
387-26 provider is $100; and
387-27 (ii) a driving safety school or owner of a
388-1 driving safety school is $50;
388-2 (E) the application fee for each additional
388-3 driver education or driving safety course at a school is $25;
388-4 (F) the application fee for each director is
388-5 $30, and for each assistant director, or administrative staff
388-6 member is $15;
388-7 (G) each application for approval of a driving
388-8 safety course that has not been evaluated by the board shall be
388-9 accompanied by a nonrefundable fee of $9,000;
388-10 (H) each application for an original driver
388-11 education or driving safety instructor's license shall be
388-12 accompanied by a processing fee of $50 and an annual license fee of
388-13 $25, except that the commissioner may not collect the processing
388-14 fee from an applicant for a driver education instructor license who
388-15 is currently teaching a driver education course in a public school
388-16 in this state; and
388-17 (I) the fee for a duplicate license, which may
388-18 be issued if the original is lost or destroyed and an affidavit of
388-19 that fact is filed with the agency, shall be set by the board.
388-20 (2) A driver education instructor who teaches driver
388-21 education courses in a county having a population of 50,000 or
388-22 less, according to the most recent federal census, and who has no
388-23 more than 200 students annually, shall be regulated by the agency
388-24 as a school. An instructor described by this subdivision shall
388-25 submit a school application or renewal form plus all required
388-26 documentation and information to the agency. The commissioner may
388-27 waive initial school fees, annual school renewal fees, or
389-1 director's or administrative staff member's fees. An instructor
389-2 described by this subdivision is not exempt from licensing
389-3 requirements or fees.
389-4 (3) The commissioner shall periodically review and
389-5 recommend adjustments in the level of fees to the board and
389-6 legislature.
389-7 (4) The fee for an investigation of a school or course
389-8 provider to resolve a complaint filed against the school or course
389-9 provider shall be set by the commissioner and approved by the
389-10 board. The complaint investigation fee may be charged only if:
389-11 (A) the complaint could not have been resolved
389-12 solely by telephone or written correspondence;
389-13 (B) a representative of the agency visited the
389-14 school or course provider as a part of the complaint resolution
389-15 process; and
389-16 (C) the school or course provider is found to be
389-17 at fault.
389-18 (5) The agency shall print and supply to licensed
389-19 course providers serially numbered uniform certificates of course
389-20 completion. The agency may charge a fee of not more than $4 for
389-21 each certificate. A course provider shall charge an operator a fee
389-22 equal to the fee paid to the agency for a certificate. The course
389-23 provider shall charge and retain a user fee of not less than $3 a
389-24 student for the use of course materials, oversight, and
389-25 administration of the course.
389-26 (6) Fees collected under this subsection shall be
389-27 deposited in the state treasury in a special account in the General
390-1 Revenue Fund. Money in the account may be appropriated only for
390-2 payment of monetary awards for information concerning abuse of the
390-3 driver education or uniform certificates of completion that leads
390-4 to the conviction or removal of an approval, license, or
390-5 authorization and for the administration of this Act and Subchapter
390-6 B, Chapter 543, Transportation Code [Section 143A, Uniform Act
390-7 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
390-8 Statutes)]. This dedication is exempt from the application of
390-9 Sections 403.094 and 403.095, Government Code.
390-10 (7) Duplicate uniform certificates of completion shall
390-11 be issued by the agency. An appropriate fee for issuing duplicate
390-12 certificates shall be determined by board rule.
390-13 SECTION 21.43. Section 6(c), Polygraph Examiners Act
390-14 (Article 4413(29cc), Vernon's Texas Civil Statutes), is amended to
390-15 read as follows:
390-16 (c) All fees collected under the provisions of this Act
390-17 shall be paid to the Comptroller [Treasurer] of the State of Texas.
390-18 Funds necessary for the enforcement of this Act and the
390-19 administration of its provisions shall be appropriated by the
390-20 Legislature, but the funds so appropriated for a biennium shall not
390-21 exceed the total amount of the fees which it is anticipated will be
390-22 collected hereunder during such biennium.
390-23 SECTION 21.44. Section 2(a), Article 4413(29ee), Revised
390-24 Statutes, is amended to read as follows:
390-25 (a) A person is eligible for a license to carry a concealed
390-26 handgun if the person:
390-27 (1) is a legal resident of this state for the
391-1 six-month period preceding the date of application under this
391-2 article;
391-3 (2) is at least 21 years of age;
391-4 (3) has not been convicted of a felony;
391-5 (4) is not charged with the commission of a Class A or
391-6 Class B misdemeanor or an offense under Section 42.01, Penal Code,
391-7 or of a felony under an information or indictment;
391-8 (5) is not a fugitive from justice for a felony or a
391-9 Class A or Class B misdemeanor;
391-10 (6) is not a chemically dependent person;
391-11 (7) is not a person of unsound mind;
391-12 (8) has not, in the five years preceding the date of
391-13 application, been convicted of a Class A or Class B misdemeanor or
391-14 an offense under Section 42.01, Penal Code;
391-15 (9) is fully qualified under applicable federal and
391-16 state law to purchase a handgun;
391-17 (10) has not been finally determined to be delinquent
391-18 in making a child support payment administered or collected by the
391-19 attorney general;
391-20 (11) has not been finally determined to be delinquent
391-21 in the payment of a tax or other money collected by the
391-22 comptroller, [state treasurer,] tax collector of a political
391-23 subdivision of the state, Texas Alcoholic Beverage Commission, or
391-24 any other agency or subdivision of the state;
391-25 (12) has not been finally determined to be in default
391-26 on a loan made under Chapter 57, Education Code;
391-27 (13) is not currently restricted under a court
392-1 protective order or subject to a restraining order affecting the
392-2 spousal relationship, not including a restraining order solely
392-3 affecting property interests;
392-4 (14) has not, in the 10 years preceding the date of
392-5 application, been adjudicated as having engaged in delinquent
392-6 conduct violating a penal law of the grade of felony; and
392-7 (15) has not made any material misrepresentation, or
392-8 failed to disclose any material fact, in an application submitted
392-9 pursuant to Section 3 of this article or in a request for
392-10 application submitted pursuant to Section 4 of this article.
392-11 SECTION 21.45. Section 8(b), Article 4413(37), Revised
392-12 Statutes, is amended to read as follows:
392-13 (b) The comptroller [treasurer] shall administer the fund
392-14 and may invest the fund in the same manner as other state funds.
392-15 SECTION 21.46. Section 3.10(a), Medical Practice Act
392-16 (Article 4495b, Vernon's Texas Civil Statutes), is amended to read
392-17 as follows:
392-18 (a) All annual registration fees collected by the board
392-19 shall be placed in the State Treasury to the credit of the medical
392-20 registration fund. The fees deposited to this special fund shall
392-21 be credited to the appropriations of the board and may be spent
392-22 only as provided by the General Appropriations Act, this Act, or
392-23 other applicable statutes. Money in that fund may be used by the
392-24 board and under its direction in the enforcement of this Act, the
392-25 prohibition of the unlawful practice of medicine, the dissemination
392-26 of information to prevent the violation of the laws, and the
392-27 prosecution of those who violate the laws. All distributions from
393-1 the fund may be made only upon written approval of the
393-2 secretary-treasurer of the board or his designated representative,
393-3 and the comptroller shall upon requisition of the board from time
393-4 to time draw warrants upon the fund [State Treasurer] for the
393-5 amounts specified in the requisition.
393-6 SECTION 21.47. Section 11, State Medical Education Act
393-7 (Article 4498c, Vernon's Texas Civil Statutes), is amended to read
393-8 as follows:
393-9 Sec. 11. REQUISITION; WARRANT; PAYMENT BY COMPTROLLER
393-10 [TREASURER] OUT OF APPROPRIATED FUNDS. All payments of funds or
393-11 loans or scholarships hereunder shall be made by requisition of the
393-12 Board signed by the Chairman and the Secretary directed to the
393-13 Comptroller of the Public Accounts, who shall thereupon issue a
393-14 warrant on the Treasury of the State of Texas for the amount fixed
393-15 in the requisition and payable to the person designated thereon,
393-16 which said warrant upon presentation shall be paid by the
393-17 Comptroller [Treasurer] out of any funds appropriated by the
393-18 Legislature for the purpose provided for under this Act.
393-19 SECTION 21.48. Section 22, Texas Medical Physics Practice
393-20 Act (Article 4512n, Vernon's Texas Civil Statutes), is amended to
393-21 read as follows:
393-22 Sec. 22. DISPOSITION OF FEES. The board shall send to the
393-23 comptroller [state treasurer] all funds received by the board under
393-24 this Act for deposit in the General Revenue Fund to the credit of a
393-25 special account known as the professional medical physicists
393-26 account. Money from the account may be used only for the
393-27 administration of this Act, except that, on the determination of
394-1 the presiding officer of the board and the officer's notification
394-2 of the comptroller [state treasurer] that a specified amount is not
394-3 required for the administration of this Act, the comptroller [state
394-4 treasurer] shall release that amount from the special account.
394-5 SECTION 21.49. Section 3, Article 4527, Revised Statutes, as
394-6 amended by Chapter 436, Acts of the 73rd Legislature, Regular
394-7 Session, 1993, is amended to read as follows:
394-8 Sec. 3. All fees received by said Board under this law shall
394-9 be placed in the State Treasury to the credit of a special fund to
394-10 be know as the "Professional Nurse Registration Fund" and the
394-11 Comptroller shall upon requisition of the Board from time to time
394-12 draw warrants upon the State Treasury [Treasurer] for the amounts
394-13 specified in such requisition; provided, however, all fees
394-14 collected by the Board and deposited in the Professional Nurse
394-15 Registration Fund shall be expended as specified by itemized
394-16 appropriation in the General Appropriations Act and shall be used
394-17 by the Board, and under its directions, only for purposes of
394-18 carrying out this Act.
394-19 SECTION 21.50. Section 13, Chapter 118, Acts of the 52nd
394-20 Legislature, Regular Session, 1951 (Article 4528c, Vernon's Texas
394-21 Civil Statutes), is amended to read as follows:
394-22 Sec. 13. CUSTODY AND USE OF REVENUES. Upon and after the
394-23 effective date of this Act, all moneys derived from fees,
394-24 assessments, or charges under this Act shall be paid by the Board
394-25 into the State Treasury for safekeeping, and shall by the
394-26 Comptroller [State Treasurer] be placed in a separate fund to be
394-27 available for use of the Board in the administration of the act
395-1 upon requisition of the Board. All such moneys so paid into the
395-2 State Treasury are hereby allocated to the Board for the purpose of
395-3 paying the salaries and expenses of all persons employed or
395-4 appointed as provided herein for the administration of this Act,
395-5 and all other expenses necessary and proper for the administration
395-6 of this Act, including equipment and maintenance of any supplies
395-7 for such offices or quarters as the Board may occupy, and necessary
395-8 traveling expenses for the Board or persons authorized to act for
395-9 it when performing duties hereunder at the request of the Board.
395-10 The Comptroller shall, upon requisition of the Board, from time to
395-11 time, draw warrants upon the State Treasury [Treasurer] for the
395-12 amount specified in such requisition, not exceeding, however, the
395-13 amount in such fund at the time of making any requisition;
395-14 provided, however, that all moneys expended in the administration
395-15 of this Act shall be specified and determined by itemized
395-16 appropriation in the General Departmental Appropriation Act or
395-17 other appropriation acts.
395-18 SECTION 21.51. Section 2.15(b), Texas Optometry Act (Article
395-19 4552-2.15, Vernon's Texas Civil Statutes), is amended to read as
395-20 follows:
395-21 (b) The funds realized from annual renewal fees shall be
395-22 distributed as follows: 15 percent of each renewal fee collected
395-23 by the board under Section 3.03 of this Act shall be dedicated to
395-24 the University of Houston Development Fund. The license money
395-25 placed in the development fund pursuant hereto shall be utilized
395-26 solely for scholarships and improvements in the physical
395-27 facilities, including library, of the College of Optometry.
396-1 The remainder of the fees attributable to annual renewal fees
396-2 and all other fees payable under this Act shall be placed in the
396-3 state treasury to the credit of a special fund to be known as the
396-4 "Optometry Fund," and the comptroller shall upon requisition of the
396-5 board from time to time draw warrants upon the state treasury
396-6 [treasurer] for the amounts specified in such requisition;
396-7 provided, however, the fees from this optometry fund shall be
396-8 expended as specified by itemized appropriation in the General
396-9 Appropriations bill and shall be used by the Texas Optometry Board,
396-10 and under its direction in carrying out its statutory duties.
396-11 SECTION 21.52. Section 11(f), Texas Manufactured Housing
396-12 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
396-13 amended to read as follows:
396-14 (f) All fees assessed under this section shall be paid to
396-15 the Comptroller [State Treasurer] and placed in the General Revenue
396-16 Fund.
396-17 SECTION 21.53. Section 7(a), Article 5221f-1, Revised
396-18 Statutes, is amended to read as follows:
396-19 (a) The commission shall set fees for registration of
396-20 manufacturers or builders constructing industrialized housing or
396-21 buildings, for the inspection of industrialized housing or
396-22 buildings at the manufacturing plant or facility, and for the
396-23 issuance of decals or insignia in amounts that pay for all costs of
396-24 the inspections and administration of this article. These fees
396-25 shall be paid to the comptroller [state treasurer] and placed in
396-26 the general revenue fund.
396-27 SECTION 21.54. Section 6, Article 5330a, Revised Statutes,
397-1 is amended to read as follows:
397-2 Sec. 6. DEPOSIT AND USE OF FEES. The examination fees
397-3 provided for in Section 3 of this Act shall be deposited with the
397-4 Comptroller [State Treasurer] in a special fund to the credit of
397-5 the Land Board created in Section 2 hereof. All such moneys so
397-6 paid into the State Treasury are hereby specifically appropriated
397-7 to said Land Board for the purpose of defraying the authorized and
397-8 necessary expenses incident to the enforcement of this Act incurred
397-9 by said Board in determining the identity of persons entitled to
397-10 the benefits of this Act. The Comptroller shall, from time to
397-11 time, upon requisition of the Commissioner of the General Land
397-12 Office, draw warrants upon the State Treasury [Treasurer] for the
397-13 amounts specified in such requisition, not exceeding, however, the
397-14 amount of such fund on deposit at the time of the making of any
397-15 requisition therefor. Any sum remaining in such fund after all
397-16 expenses have been paid shall be transferred to the Permanent
397-17 School Fund. The amount of money accruing to the State of Texas as
397-18 consideration for the sale of the land as provided for in Section 3
397-19 hereof shall be placed to the credit of the Permanent School Fund.
397-20 SECTION 21.55. Section 2(a), Article 6060, Revised Statutes,
397-21 is amended to read as follows:
397-22 (a) A person on whom a tax is imposed by this article shall
397-23 report and pay to the railroad commission the tax imposed in a
397-24 calendar quarter on or before the 20th day of the second month of
397-25 the next calendar quarter. The payment must be made payable to the
397-26 comptroller [state treasurer].
397-27 SECTION 21.56. Article 6066, Revised Statutes, is amended to
398-1 read as follows:
398-2 Art. 6066. EXPENDITURES. The salary and expenses of the
398-3 expert and his assistant and the salaries, wages, fees, and
398-4 expenses of every other person employed or appointed by the
398-5 Commission under the provisions of this subdivision, and all other
398-6 expenses, costs, and charges, including witness fees and mileage
398-7 incurred by/or under authority of the Commission or a Commissioner
398-8 in administering and enforcing the provisions of this subdivision
398-9 or in exercising any power or authority hereunder, shall be paid
398-10 out of the General Revenue Fund by the Comptroller [State
398-11 Treasurer] on warrants of the Comptroller on orders or vouchers
398-12 approved by the Commission or Chairman thereof. The entire amount
398-13 derived from the tax imposed by Article 6060, as amended, shall be
398-14 deposited to the General Revenue Fund.
398-15 SECTION 21.57. Section 10(c), Article 6066a, Revised
398-16 Statutes, is amended to read as follows:
398-17 (c) Notice of pendency of such suit shall be served in the
398-18 manner prescribed by law; either party to said suit may demand a
398-19 trial by jury on any issue of fact raised by the pleadings and the
398-20 case shall proceed to trial as other civil cases. If, upon the
398-21 trial of such suit the oil or product in controversy is found to be
398-22 unlawful oil or unlawful products, then the court trying said cause
398-23 shall render judgment forfeiting the same to the State of Texas and
398-24 authorizing the issuance of an order of sale directed to the
398-25 sheriff or any constable of the county where the oil or products
398-26 are located commanding such officer to seize and sell said property
398-27 in the same manner as personal property is sold under execution.
399-1 The court may order the oil or products sold in whole or in part as
399-2 may be deemed proper and the sale shall be conducted at the court
399-3 house door of the county where the oil and/or products are located
399-4 and shall conform in all respects to the sale of personal property
399-5 as aforesaid. The money realized from the sale of any such
399-6 unlawful oil and/or products shall be applied, first, to the
399-7 payment of the costs of suit and expenses incident to the sale of
399-8 such oil and/or products, then the court may allow compensation to
399-9 any person for expenses incurred in the storage of such unlawful
399-10 oil and/or products; provided that in no event shall such
399-11 compensation exceed one-half of the money received from the sale of
399-12 the unlawful oil and/or products, and after such expenses have been
399-13 approved and allowed by the court trying the case, all funds then
399-14 remaining, shall be remitted forthwith to the Comptroller [State
399-15 Treasurer] and shall be by the Comptroller [Treasurer] placed to
399-16 the credit of the General Revenue Fund of the State of Texas.
399-17 SECTION 21.58. Sections 14 and 15, Chapter 416, Acts of the
399-18 51st Legislature, Regular Session, 1949 (Article 6077o, Vernon's
399-19 Texas Civil Statutes), are amended to read as follows:
399-20 Sec. 14. FILING PAPERS; PAYMENTS; APPROPRIATION AND
399-21 EXPENDITURE. All surveys, files, records, copies of sale and lease
399-22 contracts and all other records pertaining to the sales and leases
399-23 hereby authorized on State Park Land under the control of State
399-24 Parks Board, shall be filed in the General Land Office and
399-25 constitute archives thereof. Payment hereunder shall be made to
399-26 the Commissioner of the General Land Office at Austin, Texas, who
399-27 shall transmit to the Comptroller [State Treasurer] all bonus
400-1 payments and royalty for deposit to the credit of the State Park
400-2 Development Fund, and all rentals for delay in drilling and all
400-3 other payments, including all filing assignments and relinquishment
400-4 fees hereunder to the credit of the State Park Development Fund.
400-5 All moneys or sums so deposited to the State Park Development Fund
400-6 shall be appropriated and expended by the Legislature for the
400-7 development, improvement and maintenance of State Parks.
400-8 Sec. 15. PAYMENT OF EXPENSES. The expenses of executing the
400-9 provisions of this Act shall be paid monthly by warrants drawn by
400-10 the Comptroller on the State Treasury [Treasurer], and for that
400-11 purpose the sum of Two Thousand Dollars ($2,000), or as much
400-12 thereof as may be necessary is hereby appropriated out of any money
400-13 in the Treasury not otherwise appropriated until September 1, 1951.
400-14 SECTION 21.59. Section 3, Article 6145-11b, Revised
400-15 Statutes, is amended to read as follows:
400-16 Sec. 3. As amounts from licensing fees, royalties, and the
400-17 sale of medallions designated as lone stars by the Texas 1986
400-18 Sesquicentennial Commission are deposited in the fund:
400-19 (1) the Comptroller [State Treasurer] shall allocate
400-20 the amounts equally between an account in the fund that may be used
400-21 only by the Texas Tourist Development Agency and an account in the
400-22 fund that may be used only by the Texas Commission on the Arts,
400-23 until the account of the Texas Commission on the Arts has received
400-24 $1,261,244; and
400-25 (2) after the account for the Texas Commission on the
400-26 Arts has received $1,261,244, the Comptroller [State Treasurer]
400-27 shall allocate the amounts only to the account of the Texas Tourist
401-1 Development Agency until that account has received $2,291,996; and
401-2 (3) after the account for the Texas Tourist
401-3 Development Agency has received $2,291,996, the Comptroller [State
401-4 Treasurer] shall allocate the amounts equally among the account of
401-5 the Texas Tourist Development Agency, the account of the Texas
401-6 Commission on the Arts, and an account in the fund that may be used
401-7 only by the Texas 1986 Sesquicentennial Commission, until the
401-8 account of the Texas Commission on the Arts has received a total of
401-9 $7,095,846 from amounts allocated under this subsection and
401-10 Subdivision (1) of this section;
401-11 (4) after the account for the Texas Commission on the
401-12 Arts has received a total of $7,095,846 from amounts allocated
401-13 under Subdivisions (1) and (3) of this section, the Comptroller
401-14 [State Treasurer] shall allocate the amounts equally between the
401-15 accounts of the Texas Tourist Development Agency and the Texas 1986
401-16 Sesquicentennial Commission until the account of the Texas 1986
401-17 Sesquicentennial Commission has received a total of $10,000,000
401-18 from amounts allocated under this subdivision and Subdivision (3)
401-19 of this section or until January 31, 1987, whichever shall first
401-20 occur.
401-21 (5) after the Texas 1986 Sesquicentennial Commission
401-22 has received a total of $10,000,000 from the amounts allocated
401-23 under Subdivisions (3) and (4) of this section, the Comptroller
401-24 [State Treasurer] shall allocate the amounts only to the account of
401-25 the Texas Tourist Development Agency until the account of the Texas
401-26 Tourist Development Agency has received a total of $15,145,604; and
401-27 (6) after the Texas Tourist Development Agency has
402-1 received a total of $15,145,604 from amounts allocated under this
402-2 section, the Comptroller [State Treasurer] shall allocate the
402-3 amounts only to the account of the State Preservation Board.
402-4 SECTION 21.60. Section 5(b), Chapter 809, Acts of the 74th
402-5 Legislature, Regular Session, 1995 (Article 6145-15, Vernon's Texas
402-6 Civil Statutes), is amended to read as follows:
402-7 (b) On the date on which the commission files its final
402-8 report with the secretary of state, the commission shall deliver to
402-9 the comptroller [state treasurer] all unexpended and unobligated
402-10 money that the commission possesses. The comptroller [treasurer]
402-11 shall deposit the money in the state treasury to the credit of the
402-12 general revenue fund.
402-13 SECTION 21.61. Article 6215, Revised Statutes, is amended to
402-14 read as follows:
402-15 Art. 6215. PAYMENTS; AFFIDAVIT; WARRANT. The payment of
402-16 such pension shall be made on the first day of each calendar month
402-17 to all pensioners whose application for pensions shall have been
402-18 duly approved as provided by law by warrant drawn by the
402-19 Comptroller on the State Treasury [Treasurer], to be paid out of
402-20 the money appropriated for that purpose as provided by law.
402-21 Such warrant shall be transmitted by mail to the payee
402-22 thereof at his or her last known address. It shall be unlawful for
402-23 any postmaster, delivery clerk, letter carrier or other postal
402-24 employee to deliver any such mail to any person whomsoever if the
402-25 addressee is known to have died or removed or, in the case of a
402-26 widow, if known to have remarried; and it shall be unlawful for any
402-27 person or persons to open any such mail addressed to any such
403-1 addressee who has died or removed, or to any such widow who has
403-2 remarried, or to convert such warrant into cash; but in every such
403-3 case such mail shall forthwith be returned to the Comptroller at
403-4 Austin, Texas, with a statement of the reasons for so doing and if,
403-5 because of death or remarriage, the date thereof, if known, and all
403-6 such warrants so returned to the Comptroller shall be cancelled.
403-7 In the event a veteran is receiving the pension allowed under this
403-8 Act to a married veteran, and his wife dies, it shall be his duty
403-9 to immediately report such death to the Comptroller and he shall
403-10 not thereafter present any pension warrant for payment when the
403-11 amount of the same is intended for a married veteran, but shall
403-12 immediately return the same to the Comptroller.
403-13 Any person who shall knowingly violate the provisions of this
403-14 Article shall be guilty of a felony and, on conviction, shall be
403-15 punished by fine of not less than One Hundred Dollars ($100.00) or
403-16 by imprisonment in the county jail for not less than three months,
403-17 or by imprisonment in the penitentiary for not less than one (1)
403-18 year.
403-19 SECTION 21.62. Sections 1 and 2, Chapter 479, Acts of the
403-20 44th Legislature, 3rd Called Session, 1936 (Article 6243-22,
403-21 Vernon's Texas Civil Statutes), are amended to read as follows:
403-22 Sec. 1. LIQUIDATION OF CERTAIN UNITED STATES OBLIGATIONS;
403-23 REDEPOSIT. The Comptroller [Treasurer] of the State of Texas is
403-24 empowered and directed to immediately sell and liquidate any and
403-25 all bonds or interest bearing obligations of the United States or
403-26 obligations guaranteed as to both principal and interest by the
403-27 United States that have been deposited in the Permanent Old Age
404-1 Pension Fund and the gross proceeds from such sale and liquidation
404-2 shall be immediately redeposited in the Permanent Old Age Pension
404-3 Fund.
404-4 Sec. 2. TRANSFER TO TEXAS OLD AGE ASSISTANCE FUND. It is
404-5 further provided that there is hereby appropriated and transferred
404-6 all monies, choses in action, funds and things of value now a part
404-7 of and accumulated in the Permanent Old Age Pension Fund into the
404-8 Texas Old Age Assistance Fund to be used by the Old Age Assistance
404-9 Commission for the sole purpose of paying Old Age Assistance Grants
404-10 to applicants whose applications have been and may be approved and
404-11 allowed; and be it further provided that no portion of said money
404-12 shall be expended for administrative purposes; and be it further
404-13 provided that the comptroller [State Treasurer] and all other
404-14 accounting officers in the State are hereby authorized and directed
404-15 to take such action as may be necessary to effectuate this
404-16 appropriation and transfer.
404-17 SECTION 21.63. Section 2, Chapter 496, Acts of the 44th
404-18 Legislature, 3rd Called Session, 1936 (Article 6243-23, Vernon's
404-19 Texas Civil Statutes), is amended to read as follows:
404-20 Sec. 2. The form and method of issuing such warrants and of
404-21 paying the interest thereon as herein authorized shall be
404-22 prescribed by the Texas Old Age Assistance Commission. The
404-23 Comptroller is [and the Treasurer are] authorized and directed to
404-24 perform such duties as are required [of them] under authority of
404-25 this Act to accomplish its purpose.
404-26 SECTION 21.64. Sections 2, 6, and 7, Chapter 1, page 536,
404-27 General Laws, Acts of the 46th Legislature, 1939 (Article 6243-24,
405-1 Vernon's Texas Civil Statutes), are amended to read as follows:
405-2 Sec. 2. The form and method of issuing such warrants and of
405-3 paying the interest thereon as herein authorized shall be
405-4 prescribed by the Texas Old Age Assistance Commission. The
405-5 Comptroller is [and the Treasurer are] authorized and directed to
405-6 perform such duties as are required [of them] under the authority
405-7 of this Act to accomplish its purpose.
405-8 Sec. 6. a. It is provided that the Comptroller [Treasurer]
405-9 of the State of Texas shall call all warrants now outstanding that
405-10 have heretofore been issued under the authority and provisions of
405-11 Chapter 496, Page 2084, Acts 1936, Forty-fourth Legislature, Third
405-12 Called Session, and he is directed and authorized to pay said
405-13 warrants, together with interest thereon, out of the Texas Old Age
405-14 Assistance Fund, according to the following schedule:
405-15 On October 10, 1939, warrants in the amount of One Hundred
405-16 Thirty Thousand, Nine Hundred and Eighty-seven Dollars ($130,987)
405-17 shall be called and paid by the Comptroller [Treasurer], together
405-18 with interest thereon, and on the 10th day of each month
405-19 thereafter, the Comptroller [Treasurer] is directed and authorized
405-20 to call and pay the remaining outstanding warrants in the amount of
405-21 Two Hundred Thousand Dollars ($200,000) per month, together with
405-22 interest thereon, until such time as all outstanding warrants
405-23 hereinabove referred to shall be called and paid in full, and there
405-24 is hereby appropriated out of funds allocated in present and/or
405-25 future laws to the Old Age Assistance Fund a sum sufficient to pay
405-26 said obligations and the interest thereon.
405-27 b. The Comptroller [Treasurer] of the State of Texas is
406-1 directed and authorized to call and pay all warrants that might
406-2 hereafter be issued under and by virtue of the provisions of this
406-3 Act in approximate equal monthly installments on the 10th day of
406-4 the months May, 1940, to September, 1940, both inclusive, together
406-5 with interest thereon, out of the Texas Old Age Assistance Fund,
406-6 and there is hereby appropriated out of funds allocated in present
406-7 and/or future laws to the Old Age Assistance Fund a sum sufficient
406-8 to pay said obligations and the interest thereon.
406-9 Sec. 7. (1) The Old Age Assistance Commission be and is
406-10 hereby authorized and directed to offer to and deliver to the
406-11 holder, or holders, of the warrants which may be issued under the
406-12 provisions of this Act and of the warrants heretofore issued for
406-13 Old Age Assistance under authority of Chapter 496, Page 2084, Acts
406-14 1936, Forty-fourth Legislature, Third Called Session, and now
406-15 outstanding, the State's obligation in the same principal amount,
406-16 or amounts, in such forms and denominations as shall be determined
406-17 by such Commission, approved by the Attorney General, and
406-18 acceptable to such holder, or holders, bearing interest at not to
406-19 exceed one and six-tenths (1.6) per cent per annum or not to exceed
406-20 the rate of interest which shall be paid on or on account of the
406-21 warrants which may be issued under the terms of this Act, whichever
406-22 rate is the lower. Said obligations shall bear dates to be fixed
406-23 by the Commission and shall mature exactly according to the
406-24 schedules set out in Section 6 hereof.
406-25 (2) Upon exchange of the original warrants for the
406-26 obligations authorized hereunder the Comptroller [State Treasurer]
406-27 shall retain in his possession in escrow as trustee said original
407-1 warrants until the obligations herein authorized are paid in full.
407-2 And the holder, or holders, of such obligations, in addition to all
407-3 other rights, shall be subrogated to the rights of the holders of
407-4 such original warrants. Upon payment of such obligations said
407-5 original warrants shall be cancelled by the Comptroller [State
407-6 Treasurer]. There is hereby appropriated out of funds allocated in
407-7 present and/or future laws to the Old Age Assistance Fund a sum
407-8 sufficient to pay said obligations and the interest thereon.
407-9 (3) Interest on such original warrants shall be paid in
407-10 accordance with the contract or contracts under which they were
407-11 issued up to the date of the exchange for the obligations
407-12 authorized herein.
407-13 (4) Such obligations to be substituted therefor shall be
407-14 eligible to secure deposits of all funds of the State of Texas, and
407-15 of counties, cities, districts, and political subdivisions of and
407-16 in the State of Texas on the basis of one dollar principal amount
407-17 of such obligations for each dollar of deposited funds.
407-18 (5) The Governor, [State Treasurer,] Attorney General, Texas
407-19 Old Age Assistance Commission, Comptroller of Public Accounts, and
407-20 the Secretary of State are hereby directed to do any and all things
407-21 necessary to accomplish the purposes of this Section.
407-22 (6) When such obligations shall have been issued in
407-23 accordance with a resolution adopted by the Texas Old Age
407-24 Assistance Commission and shall have been approved by the Attorney
407-25 General, they shall be incontestable and the full faith and credit
407-26 of the State shall be pledged to their payment.
407-27 SECTION 21.65. Section 5(k), The Real Estate License Act
408-1 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
408-2 as follows:
408-3 (k) Except as provided in Subsections (l) and (m) of this
408-4 section, all money derived from fees, assessments, or charges under
408-5 this Act, shall be paid by the commission into the State Treasury
408-6 for safekeeping, and shall be placed by the Comptroller [State
408-7 Treasurer] in a separate fund to be available for the use of the
408-8 commission in the administration of this Act on requisition by the
408-9 commission. A necessary amount of the money so paid into the State
408-10 Treasury is hereby specifically appropriated to the commission for
408-11 the purpose of paying the salaries and expenses necessary and
408-12 proper for the administration of this Act, including equipment and
408-13 maintenance of supplies for the offices or quarters occupied by the
408-14 commission, and necessary travel expenses for the commission or
408-15 persons authorized to act for it when performing duties under this
408-16 Act. The comptroller shall, on requisition of the commission, draw
408-17 warrants from time to time on the State Treasury [Treasurer] for
408-18 the amount specified in the requisition, not exceeding, however,
408-19 the amount in the fund at the time of making a requisition.
408-20 However, all money expended in the administration of this Act shall
408-21 be specified and determined by itemized appropriation in the
408-22 general departmental appropriation bill for the Texas Real Estate
408-23 Commission, and not otherwise. The commission shall file annually
408-24 with the governor and the presiding officer of each house of the
408-25 legislature a complete and detailed written report accounting for
408-26 all funds received and disbursed by the commission during the
408-27 preceding fiscal year. The annual report must be in the form and
409-1 reported in the time provided by the General Appropriations Act.
409-2 SECTION 21.66. Section 7(e), Article 6675d, Revised
409-3 Statutes, is amended to read as follows:
409-4 (e) A municipality shall send the proceeds of all fines that
409-5 exceed the limit imposed by Subsection (d) of this section to the
409-6 comptroller [state treasurer] for deposit in the general revenue
409-7 fund.
409-8 SECTION 21.67. Section 15, Vehicle Storage Facility Act
409-9 (Article 6687-9a, Revised Statutes), is amended to read as follows:
409-10 Sec. 15. USE OF FEES. The commission shall remit all fees
409-11 collected under this article to the Comptroller [State Treasurer]
409-12 for deposit in the State Treasury to the credit of the general
409-13 revenue fund.
409-14 SECTION 21.68. Section 27(a), Chapter 65, Acts of the 41st
409-15 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
409-16 Texas Civil Statutes), is amended to read as follows:
409-17 (a) The State Board of Barber Examiners shall select an
409-18 executive director and such other employees, as may be necessary,
409-19 to carry out the provisions of this Act and provide for the
409-20 compensation of the executive director and other employees. Said
409-21 Board shall maintain its office in the City of Austin, Texas, and
409-22 shall adopt rules and regulations for the transaction of the
409-23 business herein provided for, including a common seal for the
409-24 authentication of its orders, certificates and records. The
409-25 executive director shall keep a record of all proceedings of the
409-26 Board and shall be the custodian of all such records and shall
409-27 receive and receipt for all money collected by the Board. All
410-1 money so received shall be immediately deposited with the
410-2 Comptroller [State Treasurer], who shall credit same to a special
410-3 fund to be known as "State Board of Barber Examiners Fund," which
410-4 money shall be drawn from said special fund upon claims made
410-5 therefor by the Board to the Comptroller; and if found correct, to
410-6 be approved by him and vouchers issued therefor, and [countersigned
410-7 and] paid by the Comptroller [State Treasurer], which special fund
410-8 is for the purpose of carrying out all the provisions of this Act.
410-9 The Board shall file annually with the governor and the presiding
410-10 officer of each house of the legislature a complete and detailed
410-11 written report accounting for all funds received and disbursed by
410-12 the Board during the preceding fiscal year. The annual report must
410-13 be in the form and reported in the time provided by the General
410-14 Appropriations Act. The financial transactions of the Board are
410-15 subject to audit by the state auditor in accordance with Chapter
410-16 321, Government Code.
410-17 SECTION 21.69. Section 8(a), Chapter 1036, Acts of the 62nd
410-18 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
410-19 Civil Statutes), is amended to read as follows:
410-20 (a) The executive director shall remit, on or before the
410-21 10th day of each month, to the comptroller [state treasurer] all
410-22 fees collected under this Act during the preceding month for
410-23 deposit in the General Revenue Fund.
410-24 SECTION 21.70. Section 21A(d), Chapter 1036, Acts of the
410-25 62nd Legislature, Regular Session, 1971 (Article 8451a, Vernon's
410-26 Texas Civil Statutes), is amended to read as follows:
410-27 (d) The comptroller [state treasurer] shall invest the fund
411-1 in the same manner as other state funds. Sufficient funds from the
411-2 tuition protection fund shall be appropriated to the commission for
411-3 the purpose outlined in this section. The commission shall
411-4 administer claims made against the fund.
411-5 SECTION 21.71. Section 5A(a), Chapter 320, Acts of the 64th
411-6 Legislature, Regular Session, 1975 (Article 8700, Vernon's Texas
411-7 Civil Statutes), is amended to read as follows:
411-8 (a) The auctioneer education and recovery fund is
411-9 established as a special trust fund with the comptroller [state
411-10 treasurer] administered by the department, without appropriation,
411-11 for the payment of claims against auctioneers licensed under this
411-12 Act.
411-13 SECTION 21.72. Subdivision (2), Article 8805, Revised
411-14 Statutes, is amended to read as follows:
411-15 (2) Before any restraining order or injunction shall be
411-16 granted against the Comptroller to restrain or enjoin the
411-17 collection of the taxes levied herein the applicant therefor shall
411-18 pay into the suspense account of the State Treasury all taxes,
411-19 fees, and assessments then due by him to the State and the
411-20 application for restraining order or injunction shall reflect said
411-21 fact of payment under oath of the applicant, his agent, or
411-22 attorney. Provided that said applicant shall keep for the
411-23 inspection at all times of the Attorney General and the Comptroller
411-24 or their authorized representatives, a complete, itemized record
411-25 maintained in accordance with generally accepted auditing and
411-26 accounting practices, showing all coin-operated vending machines
411-27 possessed and in operation during the pendency of such restraining
412-1 order or injunction. Such record shall show the make and kind of
412-2 machine, the serial number, the date such machine was put in
412-3 operation, and the location and serial number of each and every
412-4 machine possessed or operated within the State. Provided further
412-5 that said applicant shall make and file with the Comptroller daily,
412-6 excluding Sundays and legal holidays, a report on a form to be
412-7 prescribed by the Comptroller, showing the ownership, make and
412-8 kind, and the serial number of every such machine operated by said
412-9 applicant within this State. Said report shall also show the
412-10 county, city, and location within the city and county of each
412-11 machine and the date such machine was placed in operation. In the
412-12 event the location or ownership of any machine is changed such
412-13 information shall be included in said report. Said application and
412-14 temporary injunction or restraining order shall be immediately
412-15 dismissed and dissolved after hearing if said applicant fails, at
412-16 any time before the case shall have been finally disposed of by the
412-17 court of last resort, to keep the records or make and file the
412-18 reports required herein or to pay daily, excluding Sundays and
412-19 legal holidays, into the suspense account of the Comptroller
412-20 [Treasurer] all taxes, fees and assessments due and thereafter
412-21 becoming due, and such taxes shall be paid before such machines are
412-22 operated, exhibited or displayed for operation within this State.
412-23 The Comptroller, or an authorized representative of the
412-24 Comptroller, may file in the court granting such injunction an
412-25 affidavit that said applicant has failed to comply with the
412-26 provisions of this Chapter or has violated the same. Upon the
412-27 filing of said affidavit, the clerk of said court shall issue
413-1 notice to the said applicant to appear before such court upon the
413-2 date named therein, which shall be within five (5) days from
413-3 service of such notice or as soon thereafter as the court can hear
413-4 the same, to show cause why such injunction should not be
413-5 dismissed, which notice shall be served by the sheriff of the
413-6 county in which applicant resides or any other peace officer in
413-7 this State. In the event the injunction is finally dissolved or
413-8 dismissed, all taxes, fees and assessments, paid into the suspense
413-9 account of the Comptroller [Treasurer] under the provisions of this
413-10 Chapter shall be paid to the funds to which such taxes, fees and
413-11 assessments are allocated. If the final judgment maintains the
413-12 right of applicant to a permanent injunction to prevent the
413-13 collection of such taxes the funds so deposited shall be refunded
413-14 by the Comptroller [Treasurer] to said applicant.
413-15 SECTION 21.73. Section 8(a), The Property Taxation
413-16 Professional Certification Act (Article 8885, Revised Statutes), is
413-17 amended to read as follows:
413-18 (a) The board shall receive and account for all money
413-19 derived under the provisions of this Act and shall pay it to the
413-20 Comptroller [State Treasurer]. The Comptroller [State Treasurer]
413-21 shall designate a separate fund to be known as the "Assessors
413-22 Registration Fund," which may be used only by the board for the
413-23 purpose of administering this Act.
413-24 ARTICLE 22. PURPOSE; ABOLISHED FUNDS; EMERGENCY
413-25 SECTION 22.01. The purpose of this Act is to conform the
413-26 statutes to reflect the abolishment of the office of state
413-27 treasurer.
414-1 SECTION 22.02. (a) This Act does not revive a fund or
414-2 account that was abolished or consolidated in accordance with
414-3 Section 403.094, Government Code, as added by Chapter 4, Acts of
414-4 the 72nd Legislature, 1st Called Session, 1991, or in accordance
414-5 with other law.
414-6 (b) This Act does not revive a dedication of money for a
414-7 particular purpose that was abolished in accordance with Section
414-8 403.094, Government Code, as added by Chapter 4, Acts of the 72nd
414-9 Legislature, 1st Called Session, 1991, or in accordance with other
414-10 law.
414-11 (c) This Act does not, of itself, impose a new power or duty
414-12 on the comptroller, transfer a power or duty to or from the
414-13 comptroller, re-create a power or duty no longer possessed or
414-14 performed by the comptroller, or abolish a power or duty possessed
414-15 or performed by the comptroller, except with regard to:
414-16 (1) the abolished requirement to appoint a first
414-17 assistant under Chapter 404, Government Code; and
414-18 (2) matters relating to a bond required of the
414-19 comptroller or an employee of the comptroller.
414-20 SECTION 22.03. (a) Except as provided by Subsection (b) of
414-21 this section, if another law enacted by the 75th Legislature,
414-22 Regular Session, 1997, that is intended in whole or in part to make
414-23 a substantive change to the law conflicts with this Act, the other
414-24 law controls.
414-25 (b) This Act controls over another law enacted by the 75th
414-26 Legislature, Regular Session, 1997, with regard to:
414-27 (1) the abolished requirement to appoint a first
415-1 assistant under Chapter 404, Government Code; and
415-2 (2) matters relating to a bond required of the
415-3 comptroller or an employee of the comptroller.
415-4 SECTION 22.04. This Act takes effect September 1, 1997.
415-5 SECTION 22.05. The importance of this legislation and the
415-6 crowded condition of the calendars in both houses create an
415-7 emergency and an imperative public necessity that the
415-8 constitutional rule requiring bills to be read on three several
415-9 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2841 was passed by the House on April
30, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2841 was passed by the Senate on May
22, 1997, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor