AN ACT

 1-1     relating to the licensing of the name, logo, and other artwork of

 1-2     the Texas Commission on the Arts.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 444.025, Government Code, is amended to

 1-5     read as follows:

 1-6           Sec. 444.025.  DONATIONS; APPROPRIATIONS; LICENSING AND SALES

 1-7     REVENUE; AUDIT.  (a)  The commission may accept on behalf of the

 1-8     state donations of money, property, and art objects as it

 1-9     determines best further the orderly development of the artistic

1-10     resources of the state.  Except as provided by Subsection (b),

1-11     money paid to the commission under this chapter shall be deposited

1-12     in the Texas cultural endowment fund.

1-13           (b)  The commission may solicit donations from an appropriate

1-14     source.  A person may designate a donation as intended for the

1-15     Texas cultural endowment fund or the Texas Commission on the Arts

1-16     operating fund.  If the person designates that a donation is

1-17     intended for a specific fund, the donation shall be deposited in

1-18     the designated fund.

1-19           (c)  The commission by rule shall establish an acquisition

1-20     policy for accepting property and art objects.

1-21           (d)  The legislature may make appropriations to the

1-22     commission to carry out the purposes of this chapter.

1-23           (e)  The commission may license for a fee the use of its name

 2-1     or logo and any other artwork or graphics developed by the

 2-2     commission to a private vendor for the promotion of the arts in

 2-3     Texas, for fundraising for the commission, or for any other lawful

 2-4     purpose of the commission.  The commission shall require that the

 2-5     use of the licensed property be consistent with the mission of the

 2-6     commission.  The licensing fees shall be deposited in the Texas

 2-7     Commission on the Arts operating fund.

 2-8           (f)  The commission may purchase and resell such items

 2-9     described in Subsection (e) as it determines appropriate for the

2-10     promotion of the arts in Texas, provided that the value of

2-11     commission inventory, as determined by generally accepted

2-12     accounting principles, shall not exceed $50,000 at the end of any

2-13     fiscal year.  The net profits from those sales shall be deposited

2-14     in the Texas Commission on the Arts operating fund.

2-15           (g)  The financial transactions of the commission are subject

2-16     to audit by the state auditor in accordance with Chapter 321,

2-17     Government Code.

2-18           (h) [(f)]  The commission shall prepare annually a complete

2-19     and detailed written report accounting for all funds received and

2-20     disbursed by the commission during the preceding fiscal year.  The

2-21     annual report must meet the reporting requirements applicable to

2-22     financial reporting provided in the General Appropriations Act.

2-23           (i) [(g)]  All money paid to the commission under this

2-24     chapter, other than money required to be deposited in the Texas

2-25     cultural endowment fund, is subject to Subchapter F, Chapter 404.

 3-1           SECTION 2.  This Act takes effect September 1, 1997.

 3-2           SECTION 3.  The importance of this legislation and the

 3-3     crowded condition of the calendars in both houses create an

 3-4     emergency and an imperative public necessity that the

 3-5     constitutional rule requiring bills to be read on three several

 3-6     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 771 passed the Senate on

         April 1, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 771 passed the House on

         May 13, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor