By Harris                                        S.B. No. 898

      75R4129 RJA-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to nonsubstantive additions to and corrections in enacted

 1-3     codes, including the nonsubstantive codification of various laws

 1-4     omitted from enacted codes, and to conforming codifications enacted

 1-5     by the 74th Legislature to other Acts of that legislature.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7                       ARTICLE 1.  GENERAL PROVISIONS

 1-8           SECTION 1.01.  This Act is enacted as part of the state's

 1-9     continuing statutory revision program under Chapter 323, Government

1-10     Code.  This Act is a revision for purposes of Section 43, Article

1-11     III, Texas Constitution, and has the purposes of:

1-12                 (1)  codifying without substantive change various

1-13     statutes that were omitted from enacted codes;

1-14                 (2)  conforming codifications enacted by the 74th

1-15     Legislature to other Acts of that legislature that amended the laws

1-16     codified or added new law to subject matter codified;

1-17                 (3)  making necessary corrections to enacted

1-18     codifications; and

1-19                 (4)  renumbering titles, chapters, and sections of

1-20     codes that duplicate title, chapter, or section numbers.

1-21           SECTION 1.02.  (a)  The repeal of a statute by this Act does

1-22     not affect an amendment, revision, or reenactment of the statute by

1-23     the 75th Legislature, Regular Session, 1997.  The amendment,

1-24     revision, or reenactment is preserved and given effect as part of

 2-1     the code provision that revised the statute so amended, revised, or

 2-2     reenacted.

 2-3           (b)  If any provision of this Act conflicts with a statute

 2-4     enacted by the 75th Legislature, Regular Session, 1997, the statute

 2-5     controls.

 2-6           SECTION 1.03.  (a)  A transition or saving provision of a law

 2-7     codified by this Act applies to the codified law to the same extent

 2-8     as it applied to the original law.

 2-9           (b)  The repeal of a transition or saving provision by this

2-10     Act does not affect the application of the provision to the

2-11     codified law.

2-12           (c)  In this section, "transition provision" includes any

2-13     temporary provision providing for a special situation in the

2-14     transition period between the existing law and the establishment or

2-15     implementation of the new law.

2-16              ARTICLE 2.  CHANGES RELATING TO AGRICULTURE CODE

2-17           SECTION 2.01.  Chapter 19, Agriculture Code, as added by

2-18     Section 2.01, Chapter 76, Acts of the 74th Legislature, Regular

2-19     Session, 1995, is repealed because of the repeal of the source law

2-20     from which it was derived by Section 10.09(19), Chapter 419, Acts

2-21     of the 74th Legislature, Regular Session, 1995.

2-22          ARTICLE 3.  CHANGES RELATING TO BUSINESS & COMMERCE CODE

2-23           SECTION 3.01.  Section 21(b), Chapter 962, Acts of the 74th

2-24     Legislature, Regular Session, 1995, is amended to read as follows:

2-25           (b)  If a security interest in a security is perfected under

2-26     Chapter 8, Business & Commerce Code, on the date this Act takes

2-27     effect, and the action by which the security interest was perfected

 3-1     would suffice to perfect a security interest under Chapter 9,

 3-2     Business & Commerce Code, as amended [Chapter 8, Business &

 3-3     Commerce Code, as revised] by this Act, no further action is

 3-4     required to continue perfection.  If a security interest in a

 3-5     security is perfected under Chapter 8, Business & Commerce Code, on

 3-6     the date this Act takes effect but the action by which the security

 3-7     interest was perfected would not suffice to perfect a security

 3-8     interest under Chapter 9, Business & Commerce Code, as amended

 3-9     [Chapter 8, Business & Commerce Code, as revised] by this Act, the

3-10     security interest remains perfected until January 1, 1996, and

3-11     continues perfected on and after that date if appropriate action to

3-12     perfect under Chapter 9, Business & Commerce Code, as amended

3-13     [Chapter 8, Business & Commerce Code, as revised] by this Act is

3-14     taken before January 1, 1996.  If a security interest is perfected

3-15     under Chapter 8, Business & Commerce Code, on the date this Act

3-16     takes effect and the security interest can be perfected by filing

3-17     under Chapter 9, Business & Commerce Code, as amended [Chapter 8,

3-18     Business & Commerce Code, as revised] by this Act, a financing

3-19     statement signed by the secured party instead of the debtor may be

3-20     filed before January 1, 1996, to continue perfection or filed on or

3-21     after that date to perfect.

3-22               ARTICLE 4.  CHANGES RELATING TO CIVIL PRACTICE

3-23                              AND REMEDIES CODE

3-24           SECTION 4.01.  Section 41.002(b), Civil Practice and Remedies

3-25     Code, is revised and amended to reflect amendment by Chapter 19,

3-26     Acts of the 74th Legislature, Regular Session, 1995, and amendment

3-27     to conform citations to certain codes by Chapter 260, Acts of the

 4-1     74th Legislature, Regular Session, 1995, to read as follows:

 4-2           (b)  This chapter establishes the maximum exemplary damages

 4-3     that may be awarded in an action subject to this chapter, including

 4-4     an action for which exemplary damages are awarded under another law

 4-5     of this state.  This chapter does not apply to the extent another

 4-6     law establishes a lower maximum amount of exemplary damages for a

 4-7     particular claim.  [This chapter does not apply to:]

 4-8                 [(1)  an action brought under the Deceptive Trade

 4-9     Practices-Consumer Protection Act (Subchapter E, Chapter 17,

4-10     Business & Commerce Code)  except as specifically provided in

4-11     Section 17.50 of that Act;]

4-12                 [(2)  an action brought under Chapter 21, Insurance

4-13     Code;]

4-14                 [(3)  an action brought under the workers' compensation

4-15     laws of this state (Title 5, Labor Code);]

4-16                 [(4)  an action to recover exemplary damages against an

4-17     employer by the employee's beneficiaries in a death action arising

4-18     out of the course and scope of employment where the employer is a

4-19     subscriber under the workers' compensation laws of this state

4-20     (Title 5, Labor Code);]

4-21                 [(5)  an action brought under Chapter 246, Acts of the

4-22     63rd Legislature, Regular Session, 1973, Home Solicitation

4-23     Transactions (Article 5069-13.01 et seq., Vernon's Texas Civil

4-24     Statutes);]

4-25                 [(6)  an action brought under Chapter 547, Acts of the

4-26     63rd Legislature, Regular Session, 1973, Debt Collection Practices

4-27     (Article 5069-11.01 et seq., Vernon's Texas Civil Statutes);]

 5-1                 [(7)  an action brought under Chapter 54, 91, or 92,

 5-2     Property Code;]

 5-3                 [(8)  an action brought under the Texas Manufactured

 5-4     Housing Standards Act (Article 5221f, Vernon's Texas Civil

 5-5     Statutes);]

 5-6                 [(9)  an action brought under the Texas Motor Vehicle

 5-7     Commission Code (Article 4413(36), Vernon's Texas Civil Statutes);]

 5-8                 [(10)  an action brought under Chapter 132, Education

 5-9     Code;]

5-10                 [(11)  an action brought under Section 9.507 or Section

5-11     27.01, Business & Commerce Code;]

5-12                 [(12)  an action brought under Chapter 36, Family Code;]

5-13                 [(13)  an action brought under the Health Spa Act

5-14     (Article 5221l, Vernon's Texas Civil Statutes);]

5-15                 [(14)  an action brought under the Business Opportunity

5-16     Act (Article 5069-16.01 et seq., Vernon's Texas Civil Statutes); or]

5-17                 [(15)  an action brought under Chapter 221, Property

5-18     Code.]

5-19                       ARTICLE 5.  GENERAL ARBITRATION

5-20           SECTION 5.01.  Chapter 171, Civil Practice and Remedies Code,

5-21     is revised to read as follows:

5-22                      CHAPTER 171.  GENERAL ARBITRATION

5-23                      SUBCHAPTER A.  GENERAL PROVISIONS

5-24           Sec. 171.001.  ARBITRATION AGREEMENTS VALID.  (a)  A written

 6-1     agreement to arbitrate is valid and enforceable if the agreement is

 6-2     to arbitrate a controversy that:

 6-3                 (1)  exists at the time of the agreement; or

 6-4                 (2)  arises between the parties after the date of the

 6-5     agreement.

 6-6           (b)  A party may revoke the agreement only on a ground that

 6-7     exists at law or in equity for the revocation of a contract.

 6-8           Sec. 171.002.  SCOPE OF CHAPTER.  (a)  This chapter does not

 6-9     apply to:

6-10                 (1)  a collective bargaining agreement between an

6-11     employer and a labor union;

6-12                 (2)  an agreement for the acquisition by one or more

6-13     individuals of property, services, money, or credit in which the

6-14     total consideration to be furnished by the individual is not more

6-15     than $50,000, except as provided by Subsection (b);

6-16                 (3)  a claim for personal injury, except as provided by

6-17     Subsection (c);

6-18                 (4)  a claim for workers' compensation benefits; or

6-19                 (5)  an agreement made before January 1, 1966.

6-20           (b)  An agreement described by Subsection (a)(2) is subject

6-21     to this chapter if:

6-22                 (1)  the parties to the agreement agree in writing to

6-23     arbitrate; and

6-24                 (2)  the agreement is signed by each party and each

 7-1     party's attorney.

 7-2           (c)  A claim described by Subsection (a)(3) is subject to

 7-3     this chapter if:

 7-4                 (1)  each party to the claim, on the advice of counsel,

 7-5     agrees in writing to arbitrate; and

 7-6                 (2)  the agreement is signed by each party and each

 7-7     party's attorney.

 7-8           Sec. 171.003.  UNIFORM INTERPRETATION.  This chapter shall be

 7-9     construed to effect its purpose and make uniform the construction

7-10     of other states' law applicable to an arbitration.

7-11              (Sections 171.004-171.020 reserved for expansion)

7-12          SUBCHAPTER B.  PROCEEDINGS TO COMPEL OR STAY ARBITRATIONS

7-13           Sec. 171.021.  PROCEEDING TO COMPEL ARBITRATION.  (a)  A

7-14     court shall order the parties to arbitrate on application of a

7-15     party showing:

7-16                 (1)  an agreement to arbitrate; and

7-17                 (2)  the opposing party's refusal to arbitrate.

7-18           (b)  If a party opposing an application made under Subsection

7-19     (a) denies the existence of the agreement, the court shall

7-20     summarily determine that issue.  The court shall order the

7-21     arbitration if it finds for the party that made the application. If

7-22     the court does not find for that party, the court shall deny the

7-23     application.

7-24           (c)  An order compelling arbitration must include a stay of

 8-1     any proceeding subject to Section 171.025.

 8-2           Sec. 171.022.  UNCONSCIONABLE AGREEMENTS UNENFORCEABLE.  A

 8-3     court may not enforce an agreement to arbitrate if the court finds

 8-4     the agreement was unconscionable at the time the agreement was

 8-5     made.

 8-6           Sec. 171.023.  PROCEEDING TO STAY ARBITRATION.  (a)  A court

 8-7     may stay an arbitration commenced or threatened on application and

 8-8     a showing that there is not an agreement to arbitrate.

 8-9           (b)  If there is a substantial bona fide dispute as to

8-10     whether an agreement to arbitrate exists, the court shall try the

8-11     issue promptly and summarily.

8-12           (c)  The court shall stay the arbitration if the court finds

8-13     for the party moving for the stay.  If the court finds for the

8-14     party opposing the stay, the court shall order the parties to

8-15     arbitrate.

8-16           Sec. 171.024.  PLACE FOR MAKING APPLICATION.  (a)  If there

8-17     is a proceeding pending in a court involving an issue referable to

8-18     arbitration under an alleged agreement to arbitrate, a party may

8-19     make an application under this subchapter only in that court.

8-20           (b)  If Subsection (a) does not apply, a party may make an

8-21     application in any court, subject to Section 171.096.

8-22           Sec. 171.025.  STAY OF RELATED PROCEEDING.  (a)  The court

8-23     shall stay a proceeding that involves an issue subject to

8-24     arbitration if an order for arbitration or an application for that

 9-1     order is made under this subchapter.

 9-2           (b)  The stay applies only to the issue subject to

 9-3     arbitration if that issue is severable from the remainder of the

 9-4     proceeding.

 9-5           Sec. 171.026.  VALIDITY OF UNDERLYING CLAIM.  A court may not

 9-6     refuse to order arbitration because:

 9-7                 (1)  the claim lacks merit or bona fides; or

 9-8                 (2)  the fault or ground for the claim is not shown.

 9-9              (Sections 171.027-171.040 reserved for expansion)

9-10                         SUBCHAPTER C.  ARBITRATION

9-11           Sec. 171.041.  APPOINTMENT OF ARBITRATORS.  (a)  The method

9-12     of appointment of arbitrators is as specified in the agreement to

9-13     arbitrate.

9-14           (b)  The court, on application of a party stating the nature

9-15     of the issues to be arbitrated and the qualifications of the

9-16     proposed arbitrators, shall appoint one or more qualified

9-17     arbitrators if:

9-18                 (1)  the agreement to arbitrate does not specify a

9-19     method of appointment;

9-20                 (2)  the agreed method fails or cannot be followed; or

9-21                 (3)  an appointed arbitrator fails or is unable to act

9-22     and a successor has not been appointed.

9-23           (c)  An arbitrator appointed under Subsection (b) has the

9-24     powers of an arbitrator named in the agreement to arbitrate.

 10-1          Sec. 171.042.  MAJORITY ACTION BY ARBITRATORS.  The powers of

 10-2    the arbitrators are exercised by a majority unless otherwise

 10-3    provided by the agreement to arbitrate or this chapter.

 10-4          Sec. 171.043.  HEARING CONDUCTED BY ARBITRATORS.  (a)  Unless

 10-5    otherwise provided by the agreement to arbitrate, all the

 10-6    arbitrators shall conduct the hearing.  A majority of the

 10-7    arbitrators may determine a question and render a final award.

 10-8          (b)  If, during the course of the hearing, an arbitrator

 10-9    ceases to act, one or more remaining arbitrators appointed to act

10-10    as neutral arbitrators may hear and determine the controversy.

10-11          Sec. 171.044.  TIME AND PLACE OF HEARING; NOTICE.  (a)

10-12    Unless otherwise provided by the agreement to arbitrate, the

10-13    arbitrators shall set a time and place for the hearing and notify

10-14    each party.

10-15          (b)  The notice must be served not later than the fifth day

10-16    before the hearing either personally or by registered or certified

10-17    mail with return receipt requested. Appearance at the hearing

10-18    waives the notice.

10-19          (c)  The court on application may direct the arbitrators to

10-20    proceed promptly with the hearing and determination of the

10-21    controversy.

10-22          Sec. 171.045.  ADJOURNMENT OR POSTPONEMENT.  Unless otherwise

10-23    provided by the agreement to arbitrate, the arbitrators may:

10-24                (1)  adjourn the hearing as necessary; and

 11-1                (2)  on request of a party and for good cause, or on

 11-2    their own motion, postpone the hearing to a time not later than:

 11-3                      (A)  the date set by the agreement for making the

 11-4    award; or

 11-5                      (B)  a later date agreed to by the parties.

 11-6          Sec. 171.046.  FAILURE OF PARTY TO APPEAR.  Unless otherwise

 11-7    provided by the agreement to arbitrate, the arbitrators may hear

 11-8    and determine the controversy on the evidence produced without

 11-9    regard to whether a party who has been notified as provided by

11-10    Section 171.044 fails to appear.

11-11          Sec. 171.047.  RIGHTS OF PARTY AT HEARING.  Unless otherwise

11-12    provided by the agreement to arbitrate, a party at the hearing is

11-13    entitled to:

11-14                (1)  be heard;

11-15                (2)  present evidence material to the controversy; and

11-16                (3)  cross-examine any witness.

11-17          Sec. 171.048.  REPRESENTATION BY ATTORNEY; FEES.  (a)  A

11-18    party is entitled to representation by an attorney at a proceeding

11-19    under this chapter.

11-20          (b)  A waiver of the right described by Subsection (a) before

11-21    the proceeding is ineffective.

11-22          (c)  The arbitrators shall award attorney's fees as

11-23    additional sums required to be paid under the award only if the

11-24    fees are provided for:

 12-1                (1)  in the agreement to arbitrate; or

 12-2                (2)  by law for a recovery in a civil action in the

 12-3    district court on a cause of action on which any part of the award

 12-4    is based.

 12-5          Sec. 171.049.  OATH.  The arbitrators, or an arbitrator at

 12-6    the direction of the arbitrators, may administer to each witness

 12-7    testifying before them the oath required of a witness in a civil

 12-8    action pending in a district court.

 12-9          Sec. 171.050.  DEPOSITIONS.  (a)  The arbitrators may

12-10    authorize a deposition:

12-11                (1)  for use as evidence to be taken of a witness who

12-12    cannot be required by subpoena to appear before the arbitrators or

12-13    who is unable to attend the hearing; or

12-14                (2)  for discovery or evidentiary purposes to be taken

12-15    of an adverse witness.

12-16          (b)  A deposition under this section shall be taken in the

12-17    manner provided by law for a deposition in a civil action pending

12-18    in a district court.

12-19          Sec. 171.051.  SUBPOENAS.  (a)  The arbitrators, or an

12-20    arbitrator at the direction of the arbitrators, may issue a

12-21    subpoena for:

12-22                (1)  attendance of a witness; or

12-23                (2)  production of books, records, documents, or other

12-24    evidence.

 13-1          (b)  A witness required to appear by subpoena under this

 13-2    section may appear at the hearing before the arbitrators or at a

 13-3    deposition.

 13-4          (c)  A subpoena issued under this section shall be served in

 13-5    the manner provided by law for the service of a subpoena issued in

 13-6    a civil action pending in a district court.

 13-7          (d)  Each provision of law requiring a witness to appear,

 13-8    produce evidence, and testify under a subpoena issued in a civil

 13-9    action pending in a district court applies to a subpoena issued

13-10    under this section.

13-11          Sec. 171.052.  WITNESS FEE.  The fee for a witness attending

13-12    a hearing or a deposition under this subchapter is the same as the

13-13    fee for a witness in a civil action in a district court.

13-14          Sec. 171.053.  ARBITRATORS' AWARD.  (a)  The arbitrators'

13-15    award must be in writing and signed by each arbitrator joining in

13-16    the award.

13-17          (b)  The arbitrators shall deliver a copy of the award to

13-18    each party personally, by registered or certified mail, or as

13-19    provided in the agreement.

13-20          (c)  The arbitrators shall make the award:

13-21                (1)  within the time established by the agreement to

13-22    arbitrate; or

13-23                (2)  if a time is not established by the agreement,

13-24    within the time ordered by the court on application of a party.

 14-1          (d)  The parties may extend the time for making the award

 14-2    either before or after the time expires.  The extension must be in

 14-3    writing.

 14-4          (e)  A party waives the objection that an award was not made

 14-5    within the time required unless the party notifies the arbitrators

 14-6    of the objection before the delivery of the award to that party.

 14-7          Sec. 171.054.  MODIFICATION OR CORRECTION TO AWARD.  (a)  The

 14-8    arbitrators may modify or correct an award:

 14-9                (1)  on the grounds stated in Section 171.091; or

14-10                (2)  to clarify the award.

14-11          (b)  A modification or correction under Subsection (a) may be

14-12    made only:

14-13                (1)  on application of a party; or

14-14                (2)  on submission to the arbitrators by a court, if an

14-15    application to the court is pending under Sections 171.087,

14-16    171.088, 171.089, and 171.091, subject to any condition ordered by

14-17    the court.

14-18          (c)  A party may make an application under this section not

14-19    later than the 20th day after the date the award is delivered to

14-20    the applicant.

14-21          (d)  An applicant shall give written notice of the

14-22    application promptly to the opposing party.  The notice must state

14-23    that the opposing party must serve any objection to the application

14-24    not later than the 10th day after the date of notice.

 15-1          (e)  An award modified or corrected under this section is

 15-2    subject to Sections 171.087, 171.088, 171.089, 171.090, and

 15-3    171.091.

 15-4          Sec. 171.055.  ARBITRATOR'S FEES AND EXPENSES.  Unless

 15-5    otherwise provided in the agreement to arbitrate, the arbitrators'

 15-6    expenses and fees, with other expenses incurred in conducting the

 15-7    arbitration, shall be paid as provided in the award.

 15-8             (Sections 171.056-171.080 reserved for expansion)

 15-9                     SUBCHAPTER D.  COURT PROCEEDINGS

15-10          Sec. 171.081.  JURISDICTION.  The making of an agreement

15-11    described by Section 171.001 that provides for or authorizes an

15-12    arbitration in this state and to which that section applies confers

15-13    jurisdiction on the court to enforce the agreement and to render

15-14    judgment on an award under this chapter.

15-15          Sec. 171.082.  APPLICATION TO COURT; FEES.  (a)  The filing

15-16    with the clerk of the court of an application for an order under

15-17    this chapter, including a judgment or decree, invokes the

15-18    jurisdiction of the court.

15-19          (b)  On the filing of the initial application and the payment

15-20    to the clerk of the fees of court required to be paid on the filing

15-21    of a civil action in the court, the clerk shall docket the

15-22    proceeding as a civil action pending in that court.

15-23          Sec. 171.083.  TIME FOR FILING.  An applicant for a court

15-24    order under this chapter may file the application:

 16-1                (1)  before arbitration proceedings begin in support of

 16-2    those proceedings;

 16-3                (2)  during the period the arbitration is pending

 16-4    before the arbitrators; or

 16-5                (3)  subject to this chapter, at or after the

 16-6    conclusion of the arbitration.

 16-7          Sec. 171.084.  STAY OF CERTAIN PROCEEDINGS.  (a)  After an

 16-8    initial application is filed, the court may stay:

 16-9                (1)  a proceeding under a later filed application in

16-10    another court to:

16-11                      (A)  invoke the jurisdiction of that court; or

16-12                      (B)  obtain an order under this chapter; or

16-13                (2)  a proceeding instituted after the initial

16-14    application has been filed.

16-15          (b)  A stay under this section affects only an issue subject

16-16    to arbitration under an agreement in accordance with the terms of

16-17    the initial application.

16-18          Sec. 171.085.  CONTENTS OF APPLICATION.  (a)  A court may

16-19    require that an application filed under this chapter:

16-20                (1)  show the jurisdiction of the court;

16-21                (2)  have attached a copy of the agreement to

16-22    arbitrate;

16-23                (3)  define the issue subject to arbitration between

16-24    the parties under the agreement;

 17-1                (4)  specify the status of the arbitration before the

 17-2    arbitrators; and

 17-3                (5)  show the need for the court order sought by the

 17-4    applicant.

 17-5          (b)  A court may not find an application inadequate because

 17-6    of the absence of a requirement listed in Subsection (a) unless the

 17-7    court, in its discretion:

 17-8                (1)  requires that the applicant amend the application

 17-9    to meet the requirements of the court; and

17-10                (2)  grants the applicant a 10-day period to comply.

17-11          Sec. 171.086.  ORDERS THAT MAY BE RENDERED.  (a)  Before

17-12    arbitration proceedings begin, in support of arbitration a party

17-13    may file an application for a court order, including an order to:

17-14                (1)  invoke the jurisdiction of the court over the

17-15    adverse party and to effect that jurisdiction by service of process

17-16    on the party before arbitration proceedings begin;

17-17                (2)  invoke the jurisdiction of the court over an

17-18    ancillary proceeding in rem, including by attachment, garnishment,

17-19    or sequestration, in the manner and subject to the conditions under

17-20    which the proceeding may be instituted and conducted ancillary to a

17-21    civil action in a district court;

17-22                (3)  restrain or enjoin:

17-23                      (A)  the destruction of all or an essential part

17-24    of the subject matter of the controversy; or

 18-1                      (B)  the destruction or alteration of books,

 18-2    records, documents, or other evidence needed for the arbitration;

 18-3                (4)  obtain from the court in its discretion an order

 18-4    for a deposition for discovery, perpetuation of testimony, or

 18-5    evidence needed before the arbitration proceedings begin;

 18-6                (5)  appoint one or more arbitrators so that an

 18-7    arbitration under the agreement to arbitrate may proceed; or

 18-8                (6)  obtain other relief, which the court can grant in

 18-9    its discretion, needed to permit the arbitration to be conducted in

18-10    an orderly manner and to prevent improper interference or delay of

18-11    the arbitration.

18-12          (b)  During the period an arbitration is pending before the

18-13    arbitrators or at or after the conclusion of the arbitration, a

18-14    party may file an application for a court order, including an

18-15    order:

18-16                (1)  that was referred to or that would serve a purpose

18-17    referred to in Subsection (a);

18-18                (2)  to require compliance by an adverse party or any

18-19    witness with an order made under this chapter by the arbitrators

18-20    during the arbitration;

18-21                (3)  to require the issuance and service under court

18-22    order, rather than under the arbitrators' order, of a subpoena,

18-23    notice, or other court process:

18-24                      (A)  in support of the arbitration; or

 19-1                      (B)  in an ancillary proceeding in rem, including

 19-2    by attachment, garnishment, or sequestration, in the manner of and

 19-3    subject to the conditions under which the proceeding may be

 19-4    conducted ancillary to a civil action in a district court;

 19-5                (4)  to require security for the satisfaction of a

 19-6    court judgment that may be later entered under an award;

 19-7                (5)  to support the enforcement of a court order

 19-8    entered under this chapter; or

 19-9                (6)  to obtain relief under Section 171.087, 171.088,

19-10    171.089, or 171.091.

19-11          (c)  A court may not require an applicant for an order under

19-12    Subsection (a)(1) to show that the adverse party is about to, or

19-13    may, leave the state if jurisdiction over that party is not

19-14    effected by service of process before the arbitration proceedings

19-15    begin.

19-16          Sec. 171.087.  CONFIRMATION OF AWARD.  Unless grounds are

19-17    offered for vacating, modifying, or correcting an award under

19-18    Section 171.088 or 171.091, the court, on application of a party,

19-19    shall confirm the award.

19-20          Sec. 171.088.  VACATING AWARD.  (a)  On application of a

19-21    party, the court shall vacate an award if:

19-22                (1)  the award was obtained by corruption, fraud, or

19-23    other undue means;

19-24                (2)  the rights of a party were prejudiced by:

 20-1                      (A)  evident partiality by an arbitrator

 20-2    appointed as a neutral arbitrator;

 20-3                      (B)  corruption in an arbitrator; or

 20-4                      (C)  misconduct or wilful misbehavior of an

 20-5    arbitrator;

 20-6                (3)  the arbitrators:

 20-7                      (A)  exceeded their powers;

 20-8                      (B)  refused to postpone the hearing after a

 20-9    showing of sufficient cause for the postponement;

20-10                      (C)  refused to hear evidence material to the

20-11    controversy; or

20-12                      (D)  conducted the hearing, contrary to Section

20-13    171.043, 171.044, 171.045, 171.046, or 171.047,  in a manner that

20-14    substantially prejudiced the rights of a party; or

20-15                (4)  there was no agreement to arbitrate, the issue was

20-16    not adversely determined in a proceeding under Subchapter B, and

20-17    the party did not participate in the arbitration hearing without

20-18    raising the objection.

20-19          (b)  A party must make an application under this section not

20-20    later than the 90th day after the date of delivery of a copy of the

20-21    award to the applicant. A party must make an application under

20-22    Subsection (a)(1) not later than the 90th day after the date the

20-23    grounds for the application are known or should have been known.

20-24          (c)  If the application to vacate is denied and a motion to

 21-1    modify or correct the award is not pending, the court shall confirm

 21-2    the award.

 21-3          Sec. 171.089.  REHEARING AFTER AWARD VACATED.  (a)  On

 21-4    vacating an award on grounds other than the grounds stated in

 21-5    Section 171.088(a)(4), the court may order a rehearing before new

 21-6    arbitrators chosen:

 21-7                (1)  as provided in the agreement to arbitrate; or

 21-8                (2)  by the court under Section 171.041, if the

 21-9    agreement does not provide the manner for choosing the arbitrators.

21-10          (b)  If the award is vacated under Section 171.088(a)(3), the

21-11    court may order a rehearing before the arbitrators who made the

21-12    award or their successors appointed under Section 171.041.

21-13          (c)  The period within which the agreement to arbitrate

21-14    requires the award to be made applies to a rehearing under this

21-15    section and commences from the date of the order.

21-16          Sec. 171.090.  TYPE OF RELIEF NOT FACTOR.  The fact that the

21-17    relief granted by the arbitrators could not or would not be granted

21-18    by a court of law or equity is not a ground for vacating or

21-19    refusing to confirm the award.

21-20          Sec. 171.091.  MODIFYING OR CORRECTING AWARD.  (a)  On

21-21    application, the court shall modify or correct an award if:

21-22                (1)  the award contains:

21-23                      (A)  an evident miscalculation of numbers; or

21-24                      (B)  an evident mistake in the description of a

 22-1    person, thing, or property referred to in the award;

 22-2                (2)  the arbitrators have made an award with respect to

 22-3    a matter not submitted to them and the award may be corrected

 22-4    without affecting the merits of the decision made with respect to

 22-5    the issues that were submitted; or

 22-6                (3)  the form of the award is imperfect in a manner not

 22-7    affecting the merits of the controversy.

 22-8          (b)  A party must make an application under this section not

 22-9    later than the 90th day after the date of delivery of a copy of the

22-10    award to the applicant.

22-11          (c)  If the application is granted, the court shall modify or

22-12    correct the award to effect its intent and shall confirm the award

22-13    as modified or corrected.  If the application is not granted, the

22-14    court shall confirm the award.

22-15          (d)  An application to modify or correct an award may be

22-16    joined in the alternative with an application to vacate the award.

22-17          Sec. 171.092.  JUDGMENT ON AWARD.  (a)  On granting an order

22-18    that confirms, modifies, or corrects an award, the court shall

22-19    enter a judgment or decree conforming to the order. The judgment or

22-20    decree may be enforced in the same manner as any other judgment or

22-21    decree.

22-22          (b)  The court may award:

22-23                (1)  costs of the application and of the proceedings

22-24    subsequent to the application; and

 23-1                (2)  disbursements.

 23-2          Sec. 171.093.  HEARING; NOTICE.  The court shall hear each

 23-3    initial and subsequent application under this subchapter in the

 23-4    manner and with the notice required by law or court rule for making

 23-5    and hearing a motion filed in a pending civil action in a district

 23-6    court.

 23-7          Sec. 171.094.  SERVICE OF PROCESS FOR INITIAL APPLICATION.

 23-8    (a)  On the filing of an initial application under this subchapter,

 23-9    the clerk of the court shall:

23-10                (1)  issue process for service on each adverse party

23-11    named in the application; and

23-12                (2)  attach a copy of the application to the process.

23-13          (b)  To the extent applicable, the process and service and

23-14    the return of service must be in the form and include the substance

23-15    required for process and service on a defendant in a civil action

23-16    in a district court.

23-17          (c)  An authorized official may effect the service of

23-18    process.

23-19          Sec. 171.095.  SERVICE OF PROCESS FOR SUBSEQUENT

23-20    APPLICATIONS.  (a)  After an initial application has been made,

23-21    notice to an adverse party for each subsequent application shall be

23-22    made in the same manner as is required for a motion filed in a

23-23    pending civil action in a district court.  This subsection applies

23-24    only if:

 24-1                (1)  jurisdiction over the adverse party has been

 24-2    established by service of process on the party or in rem for the

 24-3    initial application; and

 24-4                (2)  the subsequent application relates to:

 24-5                      (A)  the same arbitration or a prospective

 24-6    arbitration under the same agreement to arbitrate; and

 24-7                      (B)  the same controversy or controversies.

 24-8          (b)  If Subsection (a) does not apply, service of process

 24-9    shall be made on the adverse party in the manner provided by

24-10    Section 171.094.

24-11          Sec. 171.096.  PLACE OF FILING.  (a)  Except as otherwise

24-12    provided by this section, a party must file the initial

24-13    application:

24-14                (1)  in the county in which an adverse party resides or

24-15    has a place of business; or

24-16                (2)  if an adverse party does not have a residence or

24-17    place of business in this state, in any county.

24-18          (b)  If the agreement to arbitrate provides that the hearing

24-19    before the arbitrators is to be held in a county in this state, a

24-20    party must file the initial application with the clerk of the court

24-21    of that county.

24-22          (c)  If a hearing before the arbitrators has been held, a

24-23    party must file the initial application with the clerk of the court

24-24    of the county in which the hearing was held.

 25-1          (d)  Consistent with Section 171.024, if a proceeding is

 25-2    pending in a court relating to arbitration of an issue subject to

 25-3    arbitration under an agreement before the filing of the initial

 25-4    application, a party must file the initial application and any

 25-5    subsequent application relating to the arbitration in that court.

 25-6          Sec. 171.097.  TRANSFER.  (a)  On application of a party

 25-7    adverse to the party who filed the initial application, a court

 25-8    that has jurisdiction but that is located in a county other than as

 25-9    described by Section 171.096 shall transfer the  application to a

25-10    court of a county described by that section.

25-11          (b)  The court shall transfer the application by an order

25-12    comparable to an order sustaining a plea of privilege to be sued in

25-13    a civil action in a district court of a county other than the

25-14    county in which an action is filed.

25-15          (c)  The party must file the application under this section:

25-16                (1)  not later than the 20th day after the date of

25-17    service of process on the adverse party; and

25-18                (2)  before any other appearance in the court by that

25-19    adverse party, other than an appearance to challenge the

25-20    jurisdiction of the court.

25-21          Sec. 171.098.  APPEAL.  (a)  A party may appeal a judgment or

25-22    decree entered under this chapter or an order:

25-23                (1)  denying an application to compel arbitration made

25-24    under Section 171.021;

 26-1                (2)  granting an application to stay arbitration made

 26-2    under Section 171.023;

 26-3                (3)  confirming or denying confirmation of an award;

 26-4                (4)  modifying or correcting an award; or

 26-5                (5)  vacating an award without directing a rehearing.

 26-6          (b)  The appeal shall be taken in the manner and to the same

 26-7    extent as an appeal from an order or judgment in a civil action.

 26-8          SECTION 5.02.  Chapter 172, Civil Practice and Remedies Code,

 26-9    is revised to read as follows:

26-10        CHAPTER 172.  ARBITRATION AND CONCILIATION OF INTERNATIONAL

26-11                            COMMERCIAL DISPUTES

26-12                     SUBCHAPTER A.  GENERAL PROVISIONS

26-13          Sec. 172.001.  SCOPE OF CHAPTER.  (a)  This chapter applies

26-14    to international commercial arbitration and conciliation, subject

26-15    to any agreement that is in force between the United States and

26-16    another state or states.

26-17          (b)  This chapter, except Sections 172.174 and 172.175,

26-18    applies only to arbitration or conciliation in this state.

26-19          (c)  Except as provided by Subsection (d), this chapter does

26-20    not affect another state law under which a dispute:

26-21                (1)  may not be submitted to arbitration; or

26-22                (2)  may be submitted to arbitration only in accordance

26-23    with law other than this chapter.

26-24          (d)  Except as provided by this subsection, this chapter

 27-1    supersedes Subchapters B and C, Chapter 171, with respect to

 27-2    international commercial arbitration and conciliation.  This

 27-3    chapter does not supersede Subchapter A or D of that chapter or

 27-4    Section 171.022.

 27-5          Sec. 172.002.  DEFINITIONS.  (a) In this chapter:

 27-6                (1)  "Arbitration" includes any arbitration without

 27-7    regard to whether it is administered by a permanent arbitration

 27-8    institution.

 27-9                (2)  "Arbitration agreement" means an agreement to

27-10    arbitrate a dispute that has arisen or may arise between the

27-11    parties concerning a defined legal relationship, without regard to

27-12    whether the legal relationship is contractual.  The term includes

27-13    an arbitration clause in a contract or a separate agreement.

27-14                (3)  "Arbitration award" means a decision of an

27-15    arbitration tribunal on the substance of a dispute submitted to it

27-16    and includes an interim, interlocutory, or partial award.

27-17                (4)  "Arbitration tribunal" means a sole arbitrator or

27-18    a panel of arbitrators.

27-19                (5)  "Claim" includes a counterclaim.

27-20                (6)  "Conciliation" includes any conciliation without

27-21    regard to whether it is administered by a permanent conciliation

27-22    institution.

27-23                (7)  "Defense" includes a defense to a counterclaim.

27-24                (8)  "Party" means a party to an arbitration or

 28-1    conciliation agreement.

 28-2          (b)  The meanings assigned by this section to "claim" and

 28-3    "defense" do not apply in Sections 172.114(a) and 172.118(b)(1).

 28-4          Sec. 172.003.  INTERNATIONAL AGREEMENT.  (a)  An arbitration

 28-5    or conciliation agreement is international if:

 28-6                (1)  the places of business of the parties to the

 28-7    agreement are located in different states when the agreement is

 28-8    concluded;

 28-9                (2)  any of the following places is located outside any

28-10    state in which a party has a place of business:

28-11                      (A)  the place of arbitration or conciliation

28-12    determined under the arbitration or conciliation agreement;

28-13                      (B)  a place where a substantial part of the

28-14    obligations of the commercial relationship is to be performed; or

28-15                      (C)  the place with which the subject matter of

28-16    the dispute is most closely connected;

28-17                (3)  each party has expressly agreed that the subject

28-18    matter of the arbitration or conciliation agreement relates to

28-19    commercial interests in more than one state; or

28-20                (4)  the arbitration or conciliation agreement arises

28-21    out of a legal relationship that has another reasonable relation

28-22    with more than one state.

28-23          (b)  Subsection (a)(4) applies without regard to whether the

28-24    legal relationship is contractual.

 29-1          (c)  For purposes of this section, the place of business of a

 29-2    party who has more than one place of business is the place that has

 29-3    the closest relationship to the arbitration or conciliation

 29-4    agreement. If a party does not have a place of business, the

 29-5    party's place of business is the party's habitual residence.

 29-6          (d)  For purposes of this section, the states of the United

 29-7    States and the District of Columbia are one state.

 29-8          Sec. 172.004.  COMMERCIAL AGREEMENT.  An arbitration or

 29-9    conciliation agreement is commercial if it arises out of a

29-10    relationship of a commercial nature, including:

29-11                (1)  a transaction for the supply or exchange of goods

29-12    or services;

29-13                (2)  a distribution agreement;

29-14                (3)  a commercial representation or agency;

29-15                (4)  an exploitation agreement or concession;

29-16                (5)  a joint venture or other related form of

29-17    industrial or business cooperation;

29-18                (6)  the carriage of goods or passengers by air, sea,

29-19    rail, or road;

29-20                (7)  a relationship involving:

29-21                      (A)  construction;

29-22                      (B)  insurance;

29-23                      (C)  licensing;

29-24                      (D)  factoring;

 30-1                      (E)  leasing;

 30-2                      (F)  consulting;

 30-3                      (G)  engineering;

 30-4                      (H)  financing;

 30-5                      (I)  banking;

 30-6                      (J)  professional services; or

 30-7                      (K)  intellectual or industrial property,

 30-8    including trademarks, patents, copyrights, and software programs;

 30-9    or

30-10                (8)  the transfer of data or technology.

30-11          Sec. 172.005.  DATE WRITTEN COMMUNICATIONS RECEIVED.  (a)

30-12    Except as agreed by the parties, a written communication is

30-13    received on the day that it is delivered:

30-14                (1)  to the addressee personally; or

30-15                (2)  at the addressee's place of business, habitual

30-16    residence, or mailing address.

30-17          (b)  If a place described by Subsection (a) cannot be found

30-18    after a reasonable inquiry, a written communication is received if

30-19    it is sent to the addressee's last known place of business,

30-20    habitual residence, or mailing address by registered mail or other

30-21    means that provides a record of the attempt to deliver it.

30-22          (c)  This section does not apply to a written communication

30-23    relating to a court proceeding.

30-24          Sec. 172.006.  WAIVER OF RIGHT TO OBJECT.  (a)  A party who

 31-1    proceeds with the arbitration knowing that a provision of this

 31-2    chapter or the arbitration agreement has not been complied with

 31-3    waives the right to object to the noncompliance unless the party

 31-4    states the objection:

 31-5                (1)  without undue delay; or

 31-6                (2)  if a period is provided for stating that

 31-7    objection, within that period.

 31-8          (b)  Subsection (a) applies only to a provision of this

 31-9    chapter as to which the parties may agree to act in a different

31-10    manner.

31-11          Sec. 172.007.  DELEGATION OF CERTAIN DETERMINATIONS.  The

31-12    parties may authorize a third party, including an institution, to

31-13    determine any issue the parties may determine under this chapter,

31-14    other than a determination under Section 172.102.

31-15             (Sections 172.008-172.030 reserved for expansion)

31-16                   SUBCHAPTER B.  ARBITRATION AGREEMENTS

31-17          Sec. 172.031.  ARBITRATION AGREEMENTS VALID.  (a)  A written

31-18    arbitration agreement is valid and enforceable if the agreement is

31-19    to arbitrate a controversy that:

31-20                (1)  exists at the time of the agreement; or

31-21                (2)  arises between the parties after the date of the

31-22    agreement.

31-23          (b)  A party may revoke the agreement only on a ground that

31-24    exists at law or in equity for the revocation of a contract.

 32-1          Sec. 172.032.  REQUIREMENTS FOR ARBITRATION AGREEMENT.  (a)

 32-2    An arbitration agreement must be in writing.  The agreement is in

 32-3    writing if it is contained in:

 32-4                (1)  a document signed by each party;

 32-5                (2)  an exchange of letters, telexes, telegrams, or

 32-6    other means of telecommunication that provide a record of the

 32-7    agreement; or

 32-8                (3)  an exchange of statements of claim and defense in

 32-9    which the existence of an agreement is alleged by one party and not

32-10    denied by another.

32-11          (b)  A contract reference to a document containing an

32-12    arbitration clause is an arbitration agreement if the contract is

32-13    in writing and the reference is sufficient to make that clause part

32-14    of the contract.

32-15          Sec. 172.033.  RULES REFERRED TO IN AGREEMENT.  An agreement

32-16    of the parties under this chapter includes any arbitration or

32-17    conciliation rules referred to by that agreement.

32-18             (Sections 172.034-172.050 reserved for expansion)

32-19                        SUBCHAPTER C.  ARBITRATORS

32-20          Sec. 172.051.  NUMBER OF ARBITRATORS.  An arbitration has one

32-21    arbitrator unless the parties agree to additional arbitrators.

32-22          Sec. 172.052.  NATIONALITY OF ARBITRATOR.  A person of any

32-23    nationality may be an arbitrator.

32-24          Sec. 172.053.  APPOINTMENT OF ARBITRATION TRIBUNAL.  (a)

 33-1    Subject to Sections 172.054(b), (c), and (d) and Section 172.055,

 33-2    the parties may agree on a procedure for appointing the arbitration

 33-3    tribunal.

 33-4          (b)  If an agreement is not made under Subsection (a), in an

 33-5    arbitration with three arbitrators and two parties, each party

 33-6    shall appoint one arbitrator, and the two appointed arbitrators

 33-7    shall appoint the third arbitrator.

 33-8          Sec. 172.054.  APPOINTMENT BY COURT.  (a)  On request of a

 33-9    party, the district court of the county in which the place of

33-10    arbitration is located shall appoint each arbitrator if:

33-11                (1)  an agreement is not made under Section 172.053(a)

33-12    in an arbitration with a sole arbitrator and the parties fail to

33-13    agree on the arbitrator; or

33-14                (2)  the appointment procedure in Section 172.053(b)

33-15    applies and:

33-16                      (A)  a party fails to appoint an arbitrator not

33-17    later than the 30th day after the date of receipt of a request to

33-18    do so from the other party; or

33-19                      (B)  the two appointed arbitrators fail to agree

33-20    on the third arbitrator not later than the 30th day after the date

33-21    of their appointment.

33-22          (b)  On request of a party, the district court of the county

33-23    in which the place of arbitration is located may take necessary

33-24    measures if under an appointment procedure agreed to by each party:

 34-1                (1)  a party fails to act as required under that

 34-2    procedure;

 34-3                (2)  the parties or two appointed arbitrators fail to

 34-4    reach an agreement expected of them under that procedure; or

 34-5                (3)  a third party, including an institution, fails to

 34-6    perform a function assigned to the party under that procedure.

 34-7          (c)  Subsection (b) does not apply if the agreement on the

 34-8    appointment procedure provides other means for securing the

 34-9    appointment.

34-10          (d)  A decision of the district court under this section is

34-11    final and not subject to appeal.

34-12          Sec. 172.055.  FACTORS CONSIDERED.  In appointing an

34-13    arbitrator, the district court shall consider:

34-14                (1)  each qualification required of the arbitrator by

34-15    the arbitration agreement;

34-16                (2)  any consideration making more likely the

34-17    appointment of an independent and impartial arbitrator; and

34-18                (3)  in the case of a sole or third arbitrator, the

34-19    advisability of appointing an arbitrator of a nationality other

34-20    than that of any party.

34-21          Sec. 172.056.  DISCLOSURE OF GROUNDS FOR CHALLENGE.  (a)

34-22    Except as otherwise provided by this chapter, a person who is

34-23    contacted in connection with the person's possible appointment or

34-24    designation as an arbitrator or conciliator or who is appointed or

 35-1    designated shall, not later than the 21st day after the date of the

 35-2    contact, appointment, or designation, disclose to each party any

 35-3    information that might cause the person's impartiality or

 35-4    independence to be questioned, including information that:

 35-5                (1)  the person:

 35-6                      (A)  has a personal bias or prejudice concerning

 35-7    a party;

 35-8                      (B)  has personal knowledge of a disputed

 35-9    evidentiary fact concerning the proceeding;

35-10                      (C)  served as an attorney in the matter in

35-11    controversy;

35-12                      (D)  is or has been associated with another who

35-13    has participated in the matter during the association;

35-14                      (E)  has been a material witness concerning the

35-15    matter;

35-16                      (F)  served as an arbitrator or conciliator in

35-17    another proceeding involving a party to the proceeding; or

35-18                      (G)  has a close personal or professional

35-19    relationship with a person who:

35-20                            (i)  is or has been a party to the

35-21    proceeding or an officer, director, or trustee of a party;

35-22                            (ii)  is acting or has acted as an attorney

35-23    or representative in the proceeding;

35-24                            (iii)  is or expects to be nominated as an

 36-1    arbitrator or conciliator in the proceeding;

 36-2                            (iv)  is known to have an interest that

 36-3    could be substantially affected by the outcome of the proceeding;

 36-4    or

 36-5                            (v)  is likely to be a material witness in

 36-6    the proceeding;

 36-7                (2)  the person, individually or as a fiduciary, or the

 36-8    person's spouse or minor child residing in the person's household

 36-9    has:

36-10                      (A)  a financial interest in:

36-11                            (i)  the subject matter in controversy; or

36-12                            (ii)  a party to the proceeding; or

36-13                      (B)  any other interest that could be

36-14    substantially affected by the outcome of the proceeding; or

36-15                (3)  the person, the person's spouse, a person within

36-16    the third degree of relationship to either of them, or the spouse

36-17    of that person:

36-18                      (A)  is or has been a party to the proceeding or

36-19    an officer, director, or trustee of a party;

36-20                      (B)  is acting or has acted as an attorney in the

36-21    proceeding;

36-22                      (C)  is known to have an interest that could be

36-23    substantially affected by the outcome of the proceeding; or

36-24                      (D)  is likely to be a material witness in the

 37-1    proceeding.

 37-2          (b)  Except as provided by this subsection, the parties may

 37-3    agree to waive the disclosure under Subsection (a).  A party may

 37-4    not waive the disclosure for a person serving as:

 37-5                (1)  the sole arbitrator or conciliator; or

 37-6                (2)  the chief or prevailing arbitrator or conciliator.

 37-7          (c)  After appointment and throughout the arbitration or

 37-8    conciliation, an arbitrator or conciliator shall promptly disclose

 37-9    to each party any circumstance described by Subsection (a) that was

37-10    not previously disclosed.

37-11          Sec. 172.057.  GROUNDS FOR CHALLENGE; LIMITATION.  Except as

37-12    provided by agreement of the parties or the rules governing the

37-13    arbitration, a party may challenge an arbitrator only if

37-14    circumstances exist that give rise to justifiable doubts as to the

37-15    arbitrator's impartiality, independence, or possession of a

37-16    qualification on which the parties have agreed.

37-17          Sec. 172.058.  CHALLENGE AFTER APPOINTMENT.  A party who

37-18    appointed or  participated in the appointment of an arbitrator may

37-19    challenge that arbitrator only for a reason that the party becomes

37-20    aware of after the appointment is made.

37-21          Sec. 172.059.  CHALLENGE PROCEDURE.  (a)  The parties may

37-22    agree on a procedure for challenging an arbitrator.  A decision

37-23    reached under that procedure is final.

37-24          (b)  If there is not an agreement under Subsection (a), a

 38-1    party challenging an arbitrator shall send a written statement of

 38-2    the reason for the challenge to the arbitration tribunal.  The

 38-3    party shall send the statement not later than the 15th day after

 38-4    the later date the party becomes aware of:

 38-5                (1)  the constitution of the tribunal; or

 38-6                (2)  a circumstance referred to in Section 172.057 or

 38-7    172.058.

 38-8          (c)  Unless the arbitrator challenged under Subsection (b)

 38-9    withdraws from office or the other party agrees to the challenge,

38-10    the arbitration tribunal shall decide the challenge.

38-11          Sec. 172.060.  APPEAL OF UNSUCCESSFUL CHALLENGE.  (a)  If a

38-12    challenge under Sections 172.059(b) and (c) is unsuccessful, the

38-13    challenging party, not later than the 30th day after the date the

38-14    party receives notice of the decision rejecting the challenge, may

38-15    request the district court of the county in which the place of

38-16    arbitration is located to decide the challenge.

38-17          (b)  The court shall sustain the challenge if the facts

38-18    support a finding that grounds under Section 172.057 fairly exist.

38-19          (c)  The decision of the court is final and not subject to

38-20    appeal.

38-21          (d)  While a request under Subsection (a) is pending, the

38-22    arbitration tribunal, including the challenged arbitrator, may

38-23    continue the arbitration and make an award.

38-24          Sec. 172.061.  FAILURE OR IMPOSSIBILITY TO ACT.  (a)  The

 39-1    mandate of an arbitrator terminates if the arbitrator:

 39-2                (1)  is unable to perform the arbitrator's functions or

 39-3    for another reason fails to act without undue delay; and

 39-4                (2)  withdraws from office or each party agrees to the

 39-5    termination.

 39-6          (b)  If there is a controversy concerning the termination of

 39-7    the arbitrator's mandate under Subsection (a), a party may request

 39-8    the district court of the county in which the place of arbitration

 39-9    is located to decide the termination.  The decision of the court is

39-10    not subject to appeal.

39-11          Sec. 172.062.  TERMINATION OF MANDATE.  The mandate of an

39-12    arbitrator terminates:

39-13                (1)  on withdrawal from office;

39-14                (2)  when the parties agree; or

39-15                (3)  as provided by Section 172.059, 172.060, or

39-16    172.061.

39-17          Sec. 172.063.  SUBSTITUTION OF ARBITRATOR.  (a)  When the

39-18    mandate of an arbitrator terminates, a substitute arbitrator shall

39-19    be appointed according to the rules that were applicable to the

39-20    appointment of the arbitrator being replaced.

39-21          (b)  Except as agreed by the parties:

39-22                (1)  if the sole or presiding arbitrator is replaced, a

39-23    hearing previously held shall be repeated; and

39-24                (2)  if an arbitrator other than the sole or presiding

 40-1    arbitrator is replaced, a hearing previously held may be repeated

 40-2    at the discretion of the arbitration tribunal.

 40-3          (c)  Except as agreed by the parties, an order or ruling of

 40-4    the arbitration tribunal made before the replacement of an

 40-5    arbitrator under this section is not invalid because there has been

 40-6    a change in the composition of the tribunal.

 40-7          Sec. 172.064.  WITHDRAWAL OF ARBITRATOR.  The withdrawal of

 40-8    an arbitrator from office or the agreement of a party to the

 40-9    termination of the mandate of an arbitrator under Section

40-10    172.059(c) or Section 172.061 does not imply acceptance of the

40-11    validity of a ground referred to in Section 172.057, 172.058, or

40-12    172.061.

40-13             (Sections 172.065-172.080 reserved for expansion)

40-14                    SUBCHAPTER D.  ARBITRATION TRIBUNAL

40-15          Sec. 172.081.  DECISION OF ARBITRATION TRIBUNAL.  (a)  Except

40-16    as agreed by the parties or as provided by Subsection (b), in an

40-17    arbitration with more than one arbitrator, a decision of the

40-18    arbitration tribunal must be made by a majority of its members.

40-19          (b)  If authorized by the parties or all the members of the

40-20    arbitration tribunal, a presiding arbitrator may decide a

40-21    procedural question.

40-22          Sec. 172.082.  DETERMINATION OF JURISDICTION OF ARBITRATION

40-23    TRIBUNAL.  (a)  The arbitration tribunal may rule on its own

40-24    jurisdiction, including an objection with respect to the existence

 41-1    or validity of the arbitration agreement.  For that purpose, an

 41-2    arbitration clause that is part of a contract is an agreement

 41-3    independent of the other terms of the contract.  A decision by the

 41-4    tribunal that the contract is void does not make the arbitration

 41-5    clause invalid.

 41-6          (b)  A party may not plead that the arbitration tribunal does

 41-7    not have jurisdiction after the submission of the statement of

 41-8    defense.  A party is not precluded from pleading because the party

 41-9    has appointed or participated in the appointment of an arbitrator.

41-10          (c)  A party may plead that the arbitration tribunal is

41-11    exceeding the scope of its authority only when the matter alleged

41-12    to be beyond the scope of its authority is raised during the

41-13    arbitration.

41-14          (d)  The arbitration tribunal may allow a plea after the

41-15    period described by Subsection (b) or (c) if the tribunal considers

41-16    the delay justified.

41-17          (e)  The arbitration tribunal may rule on a plea described by

41-18    Subsection (b), (c), or (d) as a preliminary question or in an

41-19    award on the merits.

41-20          (f)  If the arbitration tribunal rules as a preliminary

41-21    question that it has jurisdiction, a party waives objection to the

41-22    ruling unless the party, not later than the 30th day after the date

41-23    the party receives notice of that ruling, requests the district

41-24    court of the county in which the place of arbitration is located to

 42-1    decide the matter.  The decision of the court is not subject to

 42-2    appeal.

 42-3          (g)  While a request under Subsection (f) is pending before

 42-4    the court, the arbitration tribunal may continue the arbitration

 42-5    and make an award.

 42-6          Sec. 172.083.  INTERIM MEASURES ORDERED BY ARBITRATION

 42-7    TRIBUNAL.  (a)  Except as agreed by the parties, the arbitration

 42-8    tribunal, at the request of a party, may order a party to take an

 42-9    interim measure of protection that the tribunal considers necessary

42-10    concerning the subject matter of the dispute.

42-11          (b)  The arbitration tribunal may require a party to provide

42-12    appropriate security in connection with the interim measure

42-13    ordered.

42-14             (Sections 172.084-172.100 reserved for expansion)

42-15                  SUBCHAPTER E.  ARBITRATION PROCEEDINGS

42-16          Sec. 172.101.  EQUAL TREATMENT OF PARTIES.  The arbitration

42-17    tribunal shall:

42-18                (1)  treat each party with equality; and

42-19                (2)  give each party a full opportunity to present the

42-20    party's case.

42-21          Sec. 172.102.  SUBSTANTIVE RULES.  (a)  The arbitration

42-22    tribunal shall decide the dispute according to the rules of law

42-23    designated by the parties as applicable to the substance of the

42-24    dispute.

 43-1          (b)  Unless otherwise expressed, a designation by the parties

 43-2    of the law or legal system of a given state refers to the

 43-3    substantive law of that state and not to conflict-of-laws rules.

 43-4          (c)  If the parties do not make a designation under

 43-5    Subsection (a), the arbitration tribunal shall apply the law

 43-6    determined by the conflict-of-laws rules that the tribunal

 43-7    considers applicable.

 43-8          (d)  The arbitration tribunal shall decide ex aequo et bono

 43-9    or as amiable compositeur if each party has expressly authorized it

43-10    to do so.

43-11          (e)  In each case, the arbitration tribunal shall:

43-12                (1)  decide in accordance with the terms of the

43-13    contract; and

43-14                (2)  take into account the usages of the trade

43-15    applicable to the transaction.

43-16          Sec. 172.103.  RULES OF PROCEDURE.  (a)  The parties may

43-17    agree on the procedure to be followed by the arbitration tribunal

43-18    in conducting the arbitration, subject to this chapter.

43-19          (b)  If the parties do not agree, the arbitration tribunal

43-20    may conduct the arbitration in the manner it considers appropriate,

43-21    subject to this chapter.

43-22          Sec. 172.104.  RULES OF EVIDENCE.  The power of the

43-23    arbitration tribunal under Section 172.103(b) includes the power to

43-24    determine the admissibility, relevance, materiality, and weight of

 44-1    any evidence.

 44-2          Sec. 172.105.  SUBPOENA.  (a)  The arbitration tribunal may

 44-3    issue a subpoena as provided by Section 171.051.

 44-4          (b)  Section 171.052 applies with respect to a subpoena

 44-5    issued under this section.

 44-6          Sec. 172.106.  PLACE OF ARBITRATION.  (a)  The parties may

 44-7    agree on the place of arbitration.

 44-8          (b)  If the parties do not agree, the arbitration tribunal

 44-9    shall determine the place of arbitration considering the

44-10    circumstances of the case, including the convenience of the

44-11    parties.

44-12          (c)  Except as agreed by each party, the arbitration tribunal

44-13    may meet at any place it considers appropriate for:

44-14                (1)  consultation among its members;

44-15                (2)  hearing of witnesses, experts, or the parties; or

44-16                (3)  inspection of documents, goods, or other property.

44-17          Sec. 172.107.  COMMENCEMENT OF ARBITRATION.  Except as agreed

44-18    by the parties, the arbitration begins on the date a request for

44-19    the dispute to be referred to arbitration is received by the

44-20    respondent.

44-21          Sec. 172.108.  LANGUAGE.  (a)  The parties may agree on the

44-22    language or languages to be used in the arbitration.

44-23          (b)  If the parties do not agree, the arbitration tribunal

44-24    shall determine the language or languages to be used in the

 45-1    arbitration.

 45-2          (c)  Except as provided by the agreement or determination,

 45-3    the agreement or determination applies to each:

 45-4                (1)  written statement by a party;

 45-5                (2)  hearing; and

 45-6                (3)  award, decision, or other communication by the

 45-7    arbitration tribunal.

 45-8          (d)  The arbitration tribunal may order that documentary

 45-9    evidence be accompanied by a translation into the selected language

45-10    or languages.

45-11          Sec. 172.109.  STATEMENT OF CLAIM OR DEFENSE.  (a)  Within

45-12    the period agreed on by the parties or determined by the

45-13    arbitration tribunal:

45-14                (1)  the claimant shall state:

45-15                      (A)  the facts supporting the claim;

45-16                      (B)  the points at issue; and

45-17                      (C)  the relief or remedy sought; and

45-18                (2)  the respondent shall state the defense.

45-19          (b)  A party may submit with the party's statement any

45-20    document the party considers relevant or may add a reference to a

45-21    document or other evidence the party will submit.

45-22          (c)  The parties may otherwise agree as to the required

45-23    elements of the statements required by Subsection (a).

45-24          Sec. 172.110.  SUPPLEMENT OR AMENDMENT TO STATEMENT.  A party

 46-1    may amend or supplement a claim or defense during the arbitration

 46-2    unless:

 46-3                (1)  the parties have otherwise agreed; or

 46-4                (2)  the arbitration tribunal considers it

 46-5    inappropriate to allow the amendment or supplement considering the

 46-6    delay in making the amendment or supplement.

 46-7          Sec. 172.111.  HEARINGS.  (a)  Except as agreed by the

 46-8    parties, the arbitration tribunal shall decide whether to:

 46-9                (1)  hold oral hearings for the presentation of

46-10    evidence or for oral argument; or

46-11                (2)  conduct the arbitration on the basis of documents

46-12    and other materials.

46-13          (b)  Unless the parties have agreed that oral hearings are

46-14    not to be held, the arbitration tribunal shall, on request of a

46-15    party, hold an oral hearing at an appropriate stage of the

46-16    arbitration.

46-17          (c)  Each party shall be given sufficient advance notice of a

46-18    hearing or meeting of the arbitration tribunal to permit inspection

46-19    of documents, goods, or other property.

46-20          Sec. 172.112.  HEARING OR MEETING IN CAMERA.  Except as

46-21    agreed by the parties, the arbitration tribunal shall hold in

46-22    camera:

46-23                (1)  an oral hearing; or

46-24                (2)  a meeting in the arbitration.

 47-1          Sec. 172.113.  WRITTEN INFORMATION.  (a) A statement,

 47-2    document, or other information supplied to or an application made

 47-3    to the arbitration tribunal by a party shall be communicated to the

 47-4    other party.

 47-5          (b)  An expert report or evidentiary document on which the

 47-6    arbitration tribunal may rely in making a decision shall be

 47-7    communicated to each party.

 47-8          Sec. 172.114.  DEFAULT OF PARTY.  (a)  Except as agreed by

 47-9    the parties, the arbitration tribunal shall terminate the

47-10    arbitration if the claimant without showing sufficient cause fails

47-11    to communicate the statement of claim required under Section

47-12    172.109.

47-13          (b)  Except as agreed by the parties, if the respondent

47-14    without showing sufficient cause fails to communicate the statement

47-15    of defense as provided by Section 172.109, the arbitration tribunal

47-16    shall continue the arbitration without treating that failure as an

47-17    admission of the claimant's allegations.

47-18          Sec. 172.115.  AWARD AFTER PARTY FAILS TO APPEAR OR PRODUCE

47-19    EVIDENCE.  Except as agreed by the parties, if a party without

47-20    showing sufficient cause fails to appear at an oral hearing or to

47-21    produce documentary evidence, the arbitration tribunal may continue

47-22    the arbitration and make the arbitration award based on the

47-23    evidence before it.

47-24          Sec. 172.116.  APPOINTED EXPERT.  (a)  Except as agreed by

 48-1    the parties, the arbitration tribunal may:

 48-2                (1)  appoint an expert to report to it on a specific

 48-3    issue to be determined by the tribunal; and

 48-4                (2)  require a party to:

 48-5                      (A)  give the expert relevant information; or

 48-6                      (B)  produce or provide access to relevant

 48-7    documents, goods, or other property.

 48-8          (b)  Except as agreed by the parties, if a party requests or

 48-9    if the arbitration tribunal considers it necessary, the expert

48-10    shall, after delivery of a written or oral report, participate in

48-11    an oral hearing at which each party may:

48-12                (1)  question the expert; and

48-13                (2)  present an expert witness on the issue.

48-14          Sec. 172.117.  SETTLEMENT.  (a)  An arbitration tribunal may:

48-15                (1)  encourage settlement of the dispute; and

48-16                (2)  with the agreement of the parties, use mediation,

48-17    conciliation, or another procedure at any time during the

48-18    arbitration to encourage settlement.

48-19          (b)  The arbitration tribunal shall terminate the arbitration

48-20    if the parties settle the dispute.

48-21          (c)  If requested by the parties and not objected to by the

48-22    arbitration tribunal, the tribunal shall record the settlement in

48-23    the form of an award on agreed terms.

48-24          Sec. 172.118.  TERMINATION OF PROCEEDINGS.  (a)  An

 49-1    arbitration is terminated by the final arbitration award or by an

 49-2    order of the arbitration tribunal under Subsection (b).  The award

 49-3    is final on the expiration of the applicable period under Section

 49-4    172.147.

 49-5          (b)  The arbitration tribunal shall issue an order for the

 49-6    termination of the arbitration if:

 49-7                (1)  the claimant withdraws the claim, unless the

 49-8    respondent objects to the order and the arbitration tribunal

 49-9    recognizes a legitimate interest on the respondent's part in

49-10    obtaining a final settlement of the dispute;

49-11                (2)  the parties agree to the termination of the

49-12    arbitration; or

49-13                (3)  the tribunal finds that continuation of the

49-14    arbitration is unnecessary or impossible.

49-15          (c)  Subject to Sections 172.147, 172.148, and 172.149, the

49-16    mandate of the arbitration tribunal ends with the termination of

49-17    the arbitration.

49-18             (Sections 172.119-172.140 reserved for expansion)

49-19                     SUBCHAPTER F.  ARBITRATION AWARD

49-20          Sec. 172.141.  FORM AND CONTENT OF ARBITRATION AWARD.

49-21    (a)  An arbitration award must be in writing and signed by all the

49-22    members of the arbitration tribunal.  In an arbitration with more

49-23    than one arbitrator, the signatures of the majority of the members

49-24    of the tribunal are sufficient if the reason for an omitted

 50-1    signature is stated.

 50-2          (b)  The arbitration award must state the reasons on which it

 50-3    is based, unless the parties have agreed that no reasons are to be

 50-4    given, or the award is an award on agreed terms under Section

 50-5    172.117.

 50-6          (c)  The arbitration award must state its date and the place

 50-7    of arbitration as determined under Section 172.106.  The award is

 50-8    considered to have been made at that place.

 50-9          Sec. 172.142.  DELIVERY OF AWARD.  After the arbitration

50-10    award is made, a signed copy shall be delivered to each party.

50-11          Sec. 172.143.  INTERIM AWARD.  (a)  The arbitration tribunal

50-12    may, at any time during the arbitration, make an interim

50-13    arbitration award on a matter with respect to which it may make a

50-14    final award.

50-15          (b)  An interim arbitration award is enforceable in the same

50-16    manner as a final award.

50-17          Sec. 172.144.  INTEREST.  Except as agreed by the parties,

50-18    the arbitration tribunal may award interest.

50-19          Sec. 172.145.  COSTS.  (a)  Except as agreed by the parties,

50-20    an award of costs of an arbitration is at the discretion of the

50-21    arbitration tribunal.

50-22          (b)  In making an order for costs:

50-23                (1)  the arbitration tribunal may include any expenses

50-24    incurred in connection with the arbitration, including:

 51-1                      (A)  the fees and expenses of the arbitrators and

 51-2    expert witnesses;

 51-3                      (B)  legal fees and expenses; and

 51-4                      (C)  administration fees of the institution

 51-5    supervising the arbitration; and

 51-6                (2)  the tribunal may specify:

 51-7                      (A)  the party entitled to costs;

 51-8                      (B)  the party required to pay costs;

 51-9                      (C)  the amount of costs or method of determining

51-10    that amount; and

51-11                      (D)  the manner in which the costs are to be

51-12    paid.

51-13          Sec. 172.146.  AWARD ON AGREED TERMS.  (a)  The arbitration

51-14    tribunal shall make an award on agreed terms as provided by Section

51-15    172.117.  An award on agreed terms must state that it is an

51-16    arbitration award.

51-17          (b)  An award on agreed terms has the same status and effect

51-18    as any other arbitration award on the substance of the dispute.

51-19          Sec. 172.147.  CORRECTION AND INTERPRETATION OF AWARDS.  (a)

51-20    Not later than the 30th day after the date of receipt of the

51-21    arbitration award, unless another period has been agreed to by the

51-22    parties, a party may request the arbitration tribunal to:

51-23                (1)  correct in the award a computation, clerical, or

51-24    typographical error or a similar error; and

 52-1                (2)  interpret a part of the award, if agreed by the

 52-2    parties.

 52-3          (b)  If the arbitration tribunal considers a request under

 52-4    Subsection (a) to be justified, it shall make the correction or

 52-5    give the interpretation not later than the 30th day after the date

 52-6    of receipt of the request.  The interpretation or correction

 52-7    becomes part of the arbitration award.

 52-8          (c)  The arbitration tribunal may correct an error described

 52-9    by Subsection (a)(1) on its own initiative not later than the 30th

52-10    day after the date of the arbitration award.

52-11          Sec. 172.148.  ADDITIONAL AWARD.  (a)  Except as agreed by

52-12    the parties, a party may request, not later than the 30th day after

52-13    the date of receipt of the arbitration award, that the arbitration

52-14    tribunal make an additional award for a claim presented in the

52-15    arbitration but omitted from the award.

52-16          (b)  If the arbitration tribunal considers the request to be

52-17    justified, the tribunal shall make the additional award not later

52-18    than the 60th day after the date of receipt of the request.

52-19          Sec. 172.149.  EXTENSION OF TIME.  The arbitration tribunal

52-20    may, if necessary, extend the period within which it may make a

52-21    correction, give an interpretation, or make an additional award

52-22    under Section 172.147 or 172.148.

52-23          Sec. 172.150.  APPLICABLE LAW.  Sections 172.141, 172.142,

52-24    172.144, and 172.145 apply to:

 53-1                (1)  a correction or interpretation of an arbitration

 53-2    award under Section 172.147; or

 53-3                (2)  an additional award made under Section 172.148.

 53-4             (Sections 172.151-172.170 reserved for expansion)

 53-5                    SUBCHAPTER G.  JUDICIAL PROCEEDINGS

 53-6          Sec. 172.171.  ROLE OF COURT.  A court may not intervene in a

 53-7    matter governed by this chapter except as provided by this chapter

 53-8    or federal law.

 53-9          Sec. 172.172.  ASSISTANCE IN TAKING EVIDENCE.  The

53-10    arbitration tribunal or a party with the approval of the tribunal

53-11    may request assistance from a district court in taking evidence,

53-12    and the court may provide the assistance according to its rules on

53-13    taking evidence.  The tribunal or a party shall select the district

53-14    court in the manner provided by Section 171.096.

53-15          Sec. 172.173.  CONSOLIDATION.  (a)  If the parties to two or

53-16    more arbitration agreements agree, in the respective arbitration

53-17    agreements or otherwise, to consolidate the arbitrations arising

53-18    out of the agreements, a district court, on application by a party

53-19    with the consent of each other party to the agreements, may:

53-20                (1)  order the arbitrations consolidated on terms the

53-21    court considers just and necessary;

53-22                (2)  if all the parties cannot agree on a tribunal for

53-23    the consolidated arbitration, appoint an arbitration tribunal as

53-24    provided by Section 172.055; and

 54-1                (3)  if all the parties cannot agree on any other

 54-2    matter necessary to conduct the consolidated arbitration, make any

 54-3    other order the court considers necessary.

 54-4          (b)  The arbitration tribunal or the party shall select the

 54-5    district court in the manner provided by Section 171.096.

 54-6          (c)  This section does not prevent the parties to two or more

 54-7    arbitrations from agreeing to consolidate those arbitrations and

 54-8    taking any step necessary to effect that consolidation.

 54-9          Sec. 172.174.  STAY OF COURT PROCEEDINGS.  (a)  On request of

54-10    a party, a court in which a pending judicial proceeding is being

54-11    brought by a party to an arbitration agreement to obtain relief

54-12    with respect to a matter covered by the arbitration agreement

54-13    shall:

54-14                (1)  stay the judicial proceeding; and

54-15                (2)  refer the parties to arbitration.

54-16          (b)  A party may not make a request for a stay after the time

54-17    the requesting party submits the party's first statement on the

54-18    substance of the dispute.

54-19          (c)  The court may not stay the proceeding if it finds that

54-20    the agreement is void, inoperable, or incapable of being performed.

54-21          (d)  An arbitration may begin or continue, and an arbitration

54-22    tribunal may make an award, while an action described in this

54-23    section is pending before the court.

54-24          Sec. 172.175.  INTERIM ORDERS.  (a)  A party to an

 55-1    arbitration agreement may request an interim measure of protection

 55-2    from a district court before or during an arbitration.

 55-3          (b)  A party to an arbitration may request from the court

 55-4    enforcement of an order of an arbitration tribunal granting an

 55-5    interim measure of protection under Section 172.083.  The court

 55-6    shall grant enforcement as provided by the law applicable to the

 55-7    type of interim relief requested.

 55-8          (c)  In connection with a pending arbitration, the court may

 55-9    take appropriate action, including:

55-10                (1)  ordering an attachment issued to assure that the

55-11    award to which the applicant may be entitled is not rendered

55-12    ineffectual by the dissipation of party assets; or

55-13                (2)  granting a preliminary injunction to protect a

55-14    trade secret or to conserve goods that are the subject matter of

55-15    the dispute.

55-16          (d)  In considering a request for interim relief, the court

55-17    shall give preclusive effect to a finding of fact of the

55-18    arbitration tribunal in the arbitration, including a finding of

55-19    fact relating to the probable validity of the claim that is the

55-20    subject of the order for interim relief that the tribunal has

55-21    granted, if the interim order is consistent with public policy.

55-22          (e)  If the arbitration tribunal has not ruled on an

55-23    objection to its jurisdiction, the court may not grant preclusive

55-24    effect to the tribunal's finding until the court makes an

 56-1    independent finding as to the jurisdiction of the tribunal.  If the

 56-2    court rules that the tribunal did not have jurisdiction under

 56-3    applicable law, the court shall deny the application for interim

 56-4    measures of relief.

 56-5             (Sections 172.176-172.200 reserved for expansion)

 56-6          SUBCHAPTER H.  PROVISIONS RELATING ONLY TO CONCILIATION

 56-7          Sec. 172.201.  POLICY.  It is the policy of this state to

 56-8    encourage parties to an international commercial agreement or

 56-9    transaction that qualifies for arbitration or conciliation under

56-10    this chapter to resolve disputes arising from those agreements or

56-11    transactions through conciliation.

56-12          Sec. 172.202.  APPOINTMENT OF CONCILIATOR.  The parties to an

56-13    agreement or transaction may select or permit an arbitration

56-14    tribunal or other third party to select one or more persons to

56-15    serve as the conciliator or conciliators to assist the parties in

56-16    an independent and impartial manner to reach an amicable settlement

56-17    of the dispute.

56-18          Sec. 172.203.  CONDUCT OF CONCILIATION.  (a)  A conciliator:

56-19                (1)  shall be guided by principles of objectivity,

56-20    fairness, and justice; and

56-21                (2)  shall consider, among other things:

56-22                      (A)  the rights and obligations of the parties;

56-23                      (B)  the usages of the trade concerned; and

56-24                      (C)  the circumstances surrounding the dispute,

 57-1    including any previous practices between the parties.

 57-2          (b)  The conciliator may conduct the conciliation in a manner

 57-3    that the conciliator considers appropriate, considering the

 57-4    circumstances of the case, the wishes of the parties, and the

 57-5    desirability of a speedy settlement of the dispute.

 57-6          (c)  Except as provided by this chapter, a law of this state

 57-7    governing procedure, other than this chapter, does not apply to

 57-8    conciliation under this chapter.

 57-9          Sec. 172.204.  REPRESENTATION AND ASSISTANCE.  In a

57-10    conciliation proceeding, each party may appear in person or be

57-11    represented or assisted by a person of the party's choice.

57-12          Sec. 172.205.  DRAFT CONCILIATION SETTLEMENT.  (a)  At any

57-13    time during the conciliation, the conciliator may prepare a draft

57-14    conciliation settlement and send a copy to each party, stating the

57-15    time within which each party must approve the settlement.  The

57-16    draft conciliation settlement may include the assessment and

57-17    apportionment of costs between the parties.

57-18          (b)  A party is not required to accept a proposed

57-19    conciliation settlement.

57-20          Sec. 172.206.  CONFIDENTIALITY.  (a)  Evidence of anything

57-21    said or of an admission made in the course of a conciliation is not

57-22    admissible in evidence, and disclosure of that evidence may not be

57-23    compelled in an arbitration or civil action in which, under law,

57-24    testimony may be compelled to be given.

 58-1          (b)  Except as provided by a document prepared for the

 58-2    purpose of, in the course of, or pursuant to the conciliation, the

 58-3    document or a copy of the document is not admissible in evidence,

 58-4    and disclosure of the document may not be compelled in an

 58-5    arbitration or civil action in which, under law, testimony may be

 58-6    compelled to be given.

 58-7          (c)  Subsection (a) does not limit the admissibility of

 58-8    evidence if each party participating in conciliation consents to

 58-9    the disclosure.

58-10          (d)  If evidence is offered in violation of this section, the

58-11    arbitration tribunal or the court shall make any order it considers

58-12    appropriate to deal with the matter, including an order restricting

58-13    the introduction of evidence or dismissing the case without

58-14    prejudice.

58-15          Sec. 172.207.  STAY OF ARBITRATION AND RESORT TO OTHER

58-16    PROCEEDINGS.  (a)  The agreement of the parties to submit a dispute

58-17    to conciliation is an agreement of the parties to stay a judicial

58-18    proceeding or arbitration from the beginning of conciliation until

58-19    the termination of conciliation.

58-20          (b)  Each applicable limitation period, including a period of

58-21    prescription, is tolled or extended on the beginning of a

58-22    conciliation under this chapter for each party to the conciliation

58-23    until the 10th day following the date of termination of the

58-24    conciliation.

 59-1          (c)  For purposes of this section, conciliation begins when a

 59-2    party requests conciliation of a dispute and each other party

 59-3    agrees to participate in the conciliation.

 59-4          Sec. 172.208.  TERMINATION OF CONCILIATION.  (a)  A

 59-5    conciliation proceeding may be terminated as to each party by:

 59-6                (1)  a written declaration of each conciliator, after

 59-7    consultation with the parties, that further efforts at conciliation

 59-8    are not justified, on the date of the declaration;

 59-9                (2)  a written declaration of each party addressed to

59-10    each conciliator that the conciliation is terminated, on the date

59-11    of the declaration; or

59-12                (3)  the signing of a settlement agreement by each

59-13    party, on the date of the agreement.

59-14          (b)  The conciliation proceedings may be terminated as to

59-15    particular parties by:

59-16                (1)  a written declaration of a party to each other

59-17    party and each conciliator, if appointed, that the conciliation is

59-18    terminated as to that party, on the date of the declaration; or

59-19                (2)  the signing of a settlement agreement by some of

59-20    the parties, on the date of the agreement.

59-21          Sec. 172.209.  CONFLICT OF INTEREST.  Except as provided by

59-22    rules adopted for the conciliation or arbitration, a person who has

59-23    served as conciliator may not be appointed as an arbitrator for or

59-24    take part in an arbitration or judicial proceeding in the same

 60-1    dispute unless each party consents to the participation.

 60-2          Sec. 172.210.  PARTICIPATION NOT WAIVER OF RIGHTS.  (a)  A

 60-3    party by submitting to conciliation does not waive a right or

 60-4    remedy that party would have had if conciliation had not been

 60-5    initiated.

 60-6          (b)  Subsection (a) does not apply to the waiver of a right

 60-7    or remedy stated in a settlement resulting from the conciliation.

 60-8          Sec. 172.211.  ENFORCEABILITY.  A conciliation agreement has

 60-9    the same force and effect as a final arbitration award if the

60-10    agreement:

60-11                (1)  settles the dispute;

60-12                (2)  is in writing; and

60-13                (3)  is signed by each conciliator and each party or a

60-14    representative of each party.

60-15          Sec. 172.212.  COSTS.  (a)  On termination of the

60-16    conciliation proceedings, the conciliator shall set the costs of

60-17    the conciliation and give written notice of the costs to each

60-18    party.

60-19          (b)  The parties shall bear the costs equally unless the

60-20    settlement agreement provides for a different apportionment.  A

60-21    party shall bear any other expense incurred by that party.

60-22          (c)  In this section, "costs" includes only:

60-23                (1)  a reasonable fee to be paid to each conciliator;

60-24                (2)  travel and other reasonable expenses of each

 61-1    conciliator and each witness requested by the conciliator  with the

 61-2    consent of each party;

 61-3                (3)  the cost of expert advice requested by the

 61-4    conciliator with the consent of each party; and

 61-5                (4)  any court cost.

 61-6          Sec. 172.213.  NO CONSENT TO JURISDICTION.  A request for

 61-7    conciliation, a consent to participate or participation in the

 61-8    conciliation, or the entering into a conciliation agreement or

 61-9    settlement is not consent to the jurisdiction of a court in this

61-10    state if conciliation fails.

61-11          Sec. 172.214.  NOT SUBJECT TO SERVICE OF PROCESS.  A

61-12    conciliator, party, or representative of a conciliator or party,

61-13    while present in this state to arrange for or participate in

61-14    conciliation under this chapter, is not subject to service of

61-15    process in a civil matter related to the conciliation.

61-16          Sec. 172.215.  CONCILIATOR IMMUNE.  A conciliator is not

61-17    liable in an action for damages resulting from an act or omission

61-18    in the performance of the person's role as a conciliator in a

61-19    proceeding subject to this chapter.

61-20          SECTION 5.03.  Chapter 173, Civil Practice and Remedies Code,

61-21    is revised to read as follows:

61-22            CHAPTER 173.  ARBITRATION OF CONTROVERSIES BETWEEN

61-23                   MEMBERS OF CERTAIN NONPROFIT ENTITIES

61-24          Sec. 173.001.  PURPOSE.  The purpose of this chapter is to

 62-1    abrogate the common law arbitration rule prohibiting specific

 62-2    enforcement of executory arbitration agreements.

 62-3          Sec. 173.002.  SCOPE OF CHAPTER.  This chapter applies only

 62-4    to the arbitration of a controversy between members of an

 62-5    association or corporation that is:

 62-6                (1)  exempt from the payment of federal income taxes

 62-7    under Section 501(a) of the Internal Revenue Code of 1986 by being

 62-8    listed as an exempt organization under Section 501(c) of the code;

 62-9    or

62-10                (2)  incorporated under the Texas Non-Profit

62-11    Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil

62-12    Statutes).

62-13          Sec. 173.003.  AGREEMENT OR BYLAW PROVISION VALID.  (a)  A

62-14    written agreement to submit a controversy to arbitration at common

62-15    law is valid and enforceable if the agreement is to arbitrate a

62-16    controversy that arises between the parties after the date of the

62-17    agreement.

62-18          (b)  A party may revoke the agreement only on a ground that

62-19    exists at law or in equity for the revocation of a contract.

62-20          (c)  A provision in the bylaws of a nonprofit corporation

62-21    incorporated under the Texas Non-Profit Corporation Act (Article

62-22    1396-1.01 et seq., Vernon's Texas Civil Statutes) that requires a

62-23    member of the corporation to arbitrate at common law a controversy

62-24    that subsequently arises between members is a valid, enforceable,

 63-1    and irrevocable agreement by a member of the corporation to

 63-2    arbitrate the controversy.

 63-3          Sec. 173.004.  COMMON LAW PRESERVED.  This chapter is

 63-4    cumulative of other law relating to common law arbitration.  Except

 63-5    as specifically provided by this chapter, this chapter does not

 63-6    abrogate or repeal that other law.

 63-7              ARTICLE 6.  CHANGES RELATING TO EDUCATION CODE

 63-8          SECTION 6.01.  Sections 7.021, 7.055, and 7.102, Education

 63-9    Code, are amended to provide for a more easily amendable

63-10    arrangement of those sections to read as follows:

63-11          Sec. 7.021.  TEXAS EDUCATION AGENCY POWERS AND DUTIES.

63-12    (a)  The agency shall perform the [following] educational functions

63-13    provided by Subsection (b).[:]

63-14          (b)(1)  The agency shall administer and monitor compliance

63-15    with education programs required by federal or state law, including

63-16    federal funding and state funding for those programs.

63-17                (2)  The agency shall conduct research, analysis, and

63-18    reporting to improve teaching and learning.

63-19                (3)  The agency shall conduct hearings involving state

63-20    school law at the direction and under the supervision of the

63-21    commissioner.

63-22                (4)  The agency shall establish and implement pilot

63-23    programs established by this title.

63-24                (5)  The agency shall carry out the duties relating to

 64-1    the investment capital fund under Section 7.024.

 64-2                (6)  The agency shall develop and implement a teacher

 64-3    recruitment program as provided by Section 21.004.

 64-4                (7)  The agency shall carry out duties under the Texas

 64-5    Advanced Placement Incentive Program under Subchapter C, Chapter

 64-6    28.

 64-7                (8)  The agency shall carry out powers and duties

 64-8    relating to adult and community education as required under

 64-9    Subchapter H, Chapter 29.

64-10                (9)  The agency shall develop a program of instruction

64-11    in driver education and traffic safety as provided by Section

64-12    29.902.

64-13                (10)  The agency shall carry out duties assigned under

64-14    Section 30.002 concerning children with visual impairments.

64-15                (11)  The agency shall carry out powers and duties

64-16    related to regional day school programs for the deaf as provided

64-17    under Subchapter D, Chapter 30.

64-18                (12)  The agency shall establish and maintain an

64-19    electronic information transfer system as required under Section

64-20    32.032, maintain and expand telecommunications capabilities of

64-21    school districts and regional education service centers as required

64-22    under Section 32.033, and establish technology demonstration

64-23    programs as required under Section 32.035.

64-24                (13)  The agency shall review school district budgets,

 65-1    audit reports, and other fiscal reports as required under Sections

 65-2    44.008 and 44.010 and prescribe forms for financial reports made by

 65-3    or for school districts to the commissioner or the agency as

 65-4    required under Section 44.009.

 65-5                (14)  The agency shall cooperate with the Texas Higher

 65-6    Education Coordinating Board in connection with the Texas

 65-7    partnership and scholarship program under Subchapter P, Chapter 61.

 65-8          (c) [(b)]  The agency may enter into an agreement with a

 65-9    federal agency concerning a project related to education, including

65-10    the provision of school lunches and the construction of school

65-11    buildings.  Not later than the 30th day before the date the agency

65-12    enters into an agreement under this subsection concerning a new

65-13    project or reauthorizing a project, the agency must provide written

65-14    notice, including a description of the project, to:

65-15                (1)  the governor;

65-16                (2)  the Legislative Budget Board; and

65-17                (3)  the presiding officers of the standing committees

65-18    of the senate and of the house of representatives with primary

65-19    jurisdiction over the agency.

65-20          Sec. 7.055.  COMMISSIONER OF EDUCATION POWERS AND DUTIES.

65-21    (a)  The commissioner has the [following] powers and duties

65-22    provided by Subsection (b).[:]

65-23          (b)(1)  The commissioner shall serve as the educational

65-24    leader of the state.

 66-1                (2)  The commissioner shall serve as executive officer

 66-2    of the agency and as executive secretary of the board.

 66-3                (3)  The commissioner shall carry out the duties

 66-4    imposed on the commissioner by the board or the legislature.

 66-5                (4)  The commissioner shall prescribe a uniform system

 66-6    of forms, reports, and records necessary to fulfill the reporting

 66-7    and recordkeeping requirements of this title.

 66-8                (5)  The commissioner may delegate ministerial and

 66-9    executive functions to agency staff and may employ division heads

66-10    and any other employees and clerks to perform the duties of the

66-11    agency.

66-12                (6)  The commissioner shall adopt an annual budget for

66-13    operating the Foundation School Program as prescribed by Subsection

66-14    (c) [(b)].

66-15                (7)  The commissioner may issue vouchers for the

66-16    expenditures of the agency and shall examine and must approve any

66-17    account to be paid out of the school funds by the state treasurer

66-18    before the comptroller may issue a warrant.

66-19                (8)  The commissioner shall file annually with the

66-20    governor and the Legislative Budget Board a complete and detailed

66-21    written report accounting for all funds received and disbursed by

66-22    the agency during the preceding fiscal year.

66-23                (9)  The commissioner shall have a manual published at

66-24    least once every two years that contains Title 1 and this title,

 67-1    any other provisions of this code relating specifically to public

 67-2    primary or secondary education, and an appendix of all other state

 67-3    laws relating to public primary or secondary education and shall

 67-4    provide for the distribution of the manual as determined by the

 67-5    board.

 67-6                (10)  The commissioner may visit different areas of

 67-7    this state, address teachers' associations and educational

 67-8    gatherings, instruct teachers, and promote all aspects of education

 67-9    and may be reimbursed for necessary travel expenses incurred under

67-10    this subdivision to the extent authorized by the General

67-11    Appropriations Act.

67-12                (11)  The commissioner may appoint advisory committees,

67-13    in accordance with Chapter 2110, Government Code [Article 6252-33,

67-14    Revised Statutes], as necessary to advise the commissioner in

67-15    carrying out the duties and mission of the agency.

67-16                (12)  The commissioner shall appoint an agency auditor.

67-17                (13)  The commissioner may provide for reductions in

67-18    the number of agency employees.

67-19                (14)  The commissioner shall carry out duties relating

67-20    to the investment capital fund under Section 7.024.

67-21                (15)  The commissioner shall review and act, if

67-22    necessary, on applications for waivers under Section 7.056.

67-23                (16)  The commissioner shall carry out duties relating

67-24    to regional education service centers as specified under Chapter 8.

 68-1                (17)  The commissioner shall distribute funds to

 68-2    open-enrollment charter schools as required under Subchapter D,

 68-3    Chapter 12.

 68-4                (18)  The commissioner shall adopt a recommended

 68-5    appraisal process and criteria on which to appraise the performance

 68-6    of teachers, a recommended appraisal process and criteria on which

 68-7    to appraise the performance of administrators, and a job

 68-8    description and evaluation form for use in evaluating counselors,

 68-9    as provided by Subchapter H, Chapter 21.

68-10                (19)  The commissioner shall coordinate and implement

68-11    teacher recruitment programs under Section 21.004.

68-12                (20)  The commissioner shall perform duties in

68-13    connection with the certification and assignment of hearing

68-14    examiners as provided by Subchapter F, Chapter 21.

68-15                (21)  The commissioner shall carry out duties under the

68-16    Texas Advanced Placement Incentive Program under Subchapter C,

68-17    Chapter 28.

68-18                (22)  The commissioner may adopt rules for optional

68-19    extended year programs under Section 29.082.

68-20                (23)  The commissioner shall monitor and evaluate

68-21    prekindergarten programs and other child-care programs as required

68-22    under Section 29.154.

68-23                (24)  The commissioner, with the approval of the board,

68-24    shall develop and implement a plan for the coordination of services

 69-1    to children with disabilities as required under Section 30.001.

 69-2                (25)  The commissioner shall develop a system to

 69-3    distribute to school districts or regional education service

 69-4    centers a special supplemental allowance for students with visual

 69-5    impairments as required under Section 30.002.

 69-6                (26)  The commissioner, with the assistance of the

 69-7    comptroller, shall determine amounts to be distributed to the Texas

 69-8    School for the Blind and Visually Impaired and the Texas School for

 69-9    the Deaf as provided by Section 30.003 and to the Texas Youth

69-10    Commission as provided by Section 30.102.

69-11                (27)  The commissioner shall establish a procedure for

69-12    resolution of disputes between a school district and the Texas

69-13    School for the Blind and Visually Impaired under Section 30.021.

69-14                (28)  The commissioner shall perform duties relating to

69-15    the funding, adoption, and purchase of textbooks under Chapter 31.

69-16                (29)  The commissioner may enter into contracts

69-17    concerning technology in the public school system as authorized

69-18    under Chapter 32.

69-19                (30)  The commissioner shall adopt a recommended

69-20    contract form for the use, acquisition, or lease with option to

69-21    purchase of school buses under Section 34.009.

69-22                (31)  The commissioner shall ensure that the cost of

69-23    using school buses for a purpose other than the transportation of

69-24    students to or from school is properly identified in the Public

 70-1    Education Information Management System (PEIMS) under Section

 70-2    34.010.

 70-3                (32)  The commissioner shall perform duties in

 70-4    connection with the public school accountability system as

 70-5    prescribed by Chapter 39.

 70-6                (33)  The commissioner shall develop and propose to the

 70-7    legislature an assessment system for students exempted from the

 70-8    generally applicable assessment program under Subchapter B, Chapter

 70-9    39.

70-10                (34)  The commissioner shall perform duties in

70-11    connection with the equalized wealth level under Chapter 41.

70-12                (35)  The commissioner shall perform duties in

70-13    connection with the Foundation School Program as prescribed by

70-14    Chapter 42.

70-15                (36)  The commissioner shall establish advisory

70-16    guidelines relating to the fiscal management of a school district

70-17    and report annually to the board on the status of school district

70-18    fiscal management as required under Section 44.001.

70-19                (37)  The commissioner shall review school district

70-20    audit reports as required under Section 44.008.

70-21                (38)  The commissioner shall perform duties in

70-22    connection with the guaranteed bond program as prescribed by

70-23    Subchapter C, Chapter 45.

70-24                (39)  The commissioner shall cooperate with the Texas

 71-1    Higher Education Coordinating Board in connection with the Texas

 71-2    partnership and scholarship program under Subchapter P, Chapter 61.

 71-3                (40)  The commissioner shall suspend the certificate of

 71-4    an educator or permit of a teacher who violates Chapter 617,

 71-5    Government Code.

 71-6          (c) [(b)]  The budget the commissioner adopts under

 71-7    Subsection (b) [(a)] for operating the Foundation School Program

 71-8    must be in accordance with legislative appropriations and provide

 71-9    funds for the administration and operation of the agency and any

71-10    other necessary expense.  The budget must designate any expense of

71-11    operating the agency or operating a program for which the board has

71-12    responsibility that is paid from the Foundation School Program.

71-13    The budget must designate program expenses that may be paid out of

71-14    the foundation school fund, other state funds, fees, federal funds,

71-15    or funds earned under interagency contract.  Before adopting the

71-16    budget, the commissioner must submit the budget to the board for

71-17    review and, after receiving any comments of the board, present the

71-18    operating budget to the governor and the Legislative Budget Board.

71-19    The commissioner shall provide appropriate information on proposed

71-20    budget expenditures to the comptroller to assure that all payments

71-21    are paid from the appropriate funds in a timely and efficient

71-22    manner.

71-23          Sec. 7.102.  STATE BOARD OF EDUCATION POWERS AND DUTIES.

71-24    (a)  The board may perform only those duties relating to school

 72-1    districts or regional education service centers assigned to the

 72-2    board by the constitution of this state or by this subchapter or

 72-3    another provision of this code.

 72-4          (b)  The board has the [following] powers and duties provided

 72-5    by Subsection (c), which shall be carried out with the advice and

 72-6    assistance of the commissioner.[:]

 72-7          (c)(1)  The board shall develop and update a long-range plan

 72-8    for public education.

 72-9                (2)  The board may enter into contracts relating to or

72-10    accept grants for the improvement of educational programs

72-11    specifically authorized by statute.

72-12                (3)  The board may accept a gift, donation, or other

72-13    contribution on behalf of the public school system or agency and,

72-14    unless otherwise specified by the donor, may use the contribution

72-15    in the manner the board determines.

72-16                (4)  The board shall establish curriculum and

72-17    graduation requirements.

72-18                (5)  The board shall establish a standard of

72-19    performance considered satisfactory on student assessment

72-20    instruments.

72-21                (6)  The board shall adopt rules to provide for

72-22    regional education service center boards of directors as provided

72-23    by Section 8.003 and rules under which a regional education service

72-24    center may receive and spend grants under Section 8.124.

 73-1                (7)  The board may create special-purpose school

 73-2    districts under Chapter 11.

 73-3                (8)  The board shall provide for a training course for

 73-4    school district trustees under Section 11.159.

 73-5                (9)  The board shall adopt a procedure to be used for

 73-6    placing on probation or revoking a home-rule school district

 73-7    charter as required by Subchapter B, Chapter 12,  and may place on

 73-8    probation or revoke a home-rule school district charter as provided

 73-9    by that subchapter.

73-10                (10)  The board may grant an open-enrollment charter or

73-11    approve a charter revision as provided by Subchapter D, Chapter 12.

73-12                (11)  The board shall adopt rules establishing criteria

73-13    for certifying hearing examiners as provided by Section 21.252.

73-14                (12)  The board shall adopt rules to carry out the

73-15    curriculum required or authorized under Section 28.002.

73-16                (13)  The board shall establish guidelines for credit

73-17    by examination under Section 28.023.

73-18                (14)  The board shall adopt transcript forms and

73-19    standards for differentiating high school programs for purposes of

73-20    reporting academic achievement under Section 28.025.

73-21                (15)  The board shall adopt guidelines for determining

73-22    financial need for purposes of the Texas Advanced Placement

73-23    Incentive Program under Subchapter C, Chapter 28,  and may approve

73-24    payments as provided by that subchapter.

 74-1                (16)  The board shall adopt criteria for identifying

 74-2    gifted and talented students and shall develop and update a state

 74-3    plan for the education of gifted and talented students as required

 74-4    under Subchapter D, Chapter 29.

 74-5                (17)  The board shall adopt rules for approving adult

 74-6    education programs as required under Section 29.253 and may

 74-7    establish an adult education advisory committee under Section

 74-8    29.254.

 74-9                (18)  The board shall adopt rules relating to community

74-10    education development projects as required under Section 29.257.

74-11                (19)  The board may approve the plan to be developed

74-12    and implemented by the commissioner for the coordination of

74-13    services to children with disabilities as required under Section

74-14    30.001.

74-15                (20)  The board shall establish a date by which each

74-16    school district and state institution shall provide to the

74-17    commissioner the necessary information to determine the district's

74-18    share of the cost of the education of a student enrolled in the

74-19    Texas School for the Blind and Visually Impaired or the Texas

74-20    School for the Deaf as required under Section 30.003 and may adopt

74-21    other rules concerning funding of the education of students

74-22    enrolled in the Texas School for the Blind and Visually Impaired or

74-23    the Texas School for the Deaf as authorized under Section 30.003.

74-24                (21)  The board shall adopt rules prescribing the form

 75-1    and content of information school districts are required to provide

 75-2    concerning programs offered by state institutions as required under

 75-3    Section 30.004.

 75-4                (22)  The board shall adopt rules concerning admission

 75-5    of students to the Texas School for the Deaf as required under

 75-6    Section 30.057.

 75-7                (23)  The board shall carry out powers and duties

 75-8    related to regional day school programs for the deaf as provided

 75-9    under Subchapter D, Chapter 30.

75-10                (24)  The board shall adopt and purchase or license

75-11    textbooks as provided by Chapter 31 and adopt rules required by

75-12    that chapter.

75-13                (25)  The board shall develop and update a long-range

75-14    plan concerning technology in the public school system as required

75-15    under Section 32.001 and shall adopt rules and policies concerning

75-16    technology in public schools as provided by Chapter 32.

75-17                (26)  The board shall conduct feasibility studies

75-18    related to the telecommunications capabilities of school districts

75-19    and regional education service centers as provided by Section

75-20    32.033.

75-21                (27)  The board shall appoint a board of directors of

75-22    the center for educational technology under Section 32.034.

75-23                (28)  The board shall adopt rules relating to

75-24    extracurricular activities under Section 33.081 and approve,

 76-1    disapprove, or modify University Interscholastic League rules and

 76-2    procedures under Section 33.083.

 76-3                (29)  The board shall approve a program for testing

 76-4    students for dyslexia and related disorders as provided by Section

 76-5    38.003.

 76-6                (30)  The board shall perform duties in connection with

 76-7    the public school accountability system as prescribed by Chapter

 76-8    39.

 76-9                (31)  The board shall perform duties in connection with

76-10    the Foundation School Program as prescribed by Chapter 42.

76-11                (32)  The board may invest the permanent school fund

76-12    within the limits of the authority granted by Section 5, Article

76-13    VII, Texas Constitution, and Chapter 43.

76-14                (33)  The board shall adopt rules concerning school

76-15    district budgets and audits of school district fiscal accounts as

76-16    required under Subchapter A, Chapter 44.

76-17                (34)  The board shall adopt an annual report on the

76-18    status of the guaranteed bond program and may adopt rules as

76-19    necessary for the administration of the program as provided under

76-20    Subchapter C, Chapter 45.

76-21                (35)  The board shall prescribe uniform bid blanks for

76-22    school districts to use in selecting a depository bank as required

76-23    under Section 45.206.

76-24          (d) [(c)]  The board may adopt rules relating to school

 77-1    districts or regional education service centers only as required to

 77-2    carry out the specific duties assigned to the board by the

 77-3    constitution or under Subsection (c) [(b)].

 77-4          (e) [(d)]  An action of the board to adopt a rule under this

 77-5    section is effective only if the board includes in the rule's

 77-6    preamble a statement of the specific authority under Subsection (c)

 77-7    [(b)] to adopt the rule.

 77-8          (f) [(e)]  Except as otherwise provided by this subsection, a

 77-9    rule adopted by the board under this section does not take effect

77-10    until the beginning of the school year that begins at least 90 days

77-11    after the date on which the rule was adopted.  The rule takes

77-12    effect earlier if the rule's preamble specifies an earlier

77-13    effective date and the reason for that earlier date and:

77-14                (1)  the earlier effective date is a requirement of:

77-15                      (A)  a federal law; or

77-16                      (B)  a state law that specifically refers to this

77-17    section and expressly requires the adoption of an earlier effective

77-18    date; or

77-19                (2)  on the affirmative vote of two-thirds of the

77-20    members of the board, the board makes a finding that an earlier

77-21    effective date is necessary.

77-22          SECTION 6.02.  Section 30.052(a), Education Code, is amended

77-23    to conform to Section 29, Chapter 835, Acts of the 74th

77-24    Legislature, Regular Session, 1995, to read as follows:

 78-1          (a)  The Texas School for the Deaf is governed by a

 78-2    nine-member board appointed by the governor in accordance with this

 78-3    section and confirmed by the senate.  A person may not serve

 78-4    simultaneously on the school's governing board and the board of the

 78-5    Texas Commission for the Deaf and Hard of Hearing [Impaired].  Each

 78-6    member of the board must be a person who is experienced in working

 78-7    with persons who are deaf or hard of hearing, a person who is the

 78-8    parent of a person who is deaf, or a person who is deaf.  The

 78-9    board, at least five of whom must be deaf, consists of:

78-10                (1)  at least one person who is an alumnus of the Texas

78-11    School for the Deaf;

78-12                (2)  at least three persons who are parents of a deaf

78-13    person; and

78-14                (3)  at least three persons who are experienced in

78-15    working with deaf persons.

78-16          SECTION 6.03.  Sections 42.259(b), (c), and (d), Education

78-17    Code, are amended to conform to Section 31, Chapter 426, Acts of

78-18    the 74th Legislature, Regular Session, 1995, to read as follows:

78-19          (b)  Payments from the foundation school fund to each

78-20    category 1 school district shall be made as follows:

78-21                (1)  15 [21] percent of the yearly entitlement of the

78-22    district shall be paid in an installment [two equal installments]

78-23    to be made on or before the 25th day of September [and October] of

78-24    a fiscal year;

 79-1                (2)  80 [57] percent of the yearly entitlement of the

 79-2    district shall be paid in eight [six] equal installments to be made

 79-3    on or before the 25th day of October, November, December, January,

 79-4    [February,] March, May, June, and July; and

 79-5                (3)  five [22] percent of the yearly entitlement of the

 79-6    district shall be paid in an installment [two equal installments]

 79-7    to be made on or before the 25th day of February [April and May].

 79-8          (c)  Payments from the foundation school fund to each

 79-9    category 2 school district shall be made as follows:

79-10                (1)  22 [21] percent of the yearly entitlement of the

79-11    district shall be paid in an installment [two equal installments]

79-12    to be made on or before the 25th day of September [and October] of

79-13    a fiscal year;

79-14                (2)  18 [38] percent of the yearly entitlement of the

79-15    district shall be paid in an installment [four equal installments]

79-16    to be made on or before the 25th day of October [November,

79-17    December, March, and July];

79-18                (3)  9.5 [seven] percent of the yearly entitlement of

79-19    the district shall be paid in an installment [two equal

79-20    installments] to be made on or before the 25th day of November

79-21    [January and February];

79-22                (4)  7.5 [22] percent of the yearly entitlement of the

79-23    district shall be paid in an installment [two equal installments]

79-24    to be made on or before the 25th day of April [and May]; [and]

 80-1                (5)  five [12] percent of the yearly entitlement of the

 80-2    district shall be paid in an installment [two equal installments]

 80-3    to be made on or before the 25th day of May;

 80-4                (6)  10 percent of the yearly entitlement of the

 80-5    district shall be paid in an installment to be made on or before

 80-6    the 25th day of June;

 80-7                (7)  13 percent of the yearly entitlement of the

 80-8    district shall be paid in an installment to be made on or before

 80-9    the 25th day of July; and

80-10                (8)  15 percent of the yearly entitlement of the

80-11    district shall be paid in an installment to be made on or before

80-12    the 25th day of August [June and August].

80-13          (d)  Payments from the foundation school fund to each

80-14    category 3 school district shall be made as follows:

80-15                (1)  45 [21] percent of the yearly entitlement of the

80-16    district shall be paid in an installment [two equal installments]

80-17    to be made on or before the 25th day of September [and October] of

80-18    a fiscal year;

80-19                (2)  35 [57] percent of the yearly entitlement of the

80-20    district shall be paid in an installment [six equal installments]

80-21    to be made on or before the 25th day of October [November,

80-22    December, March, June, July, and August]; and

80-23                (3)  20 [22] percent of the yearly entitlement of the

80-24    district shall be paid in an installment [two equal installments]

 81-1    to be made on or before the 25th day of August [April and May].

 81-2          SECTION 6.04.  The changes in law made by Sections 6.04-6.83

 81-3    of this article are made to conform to the changes in law made by

 81-4    S.B. No. 1 (Chapter 260, Acts of the 74th Legislature, Regular

 81-5    Session, 1995).

 81-6          SECTION 6.05.  Article 102.014(c), Code of Criminal

 81-7    Procedure, is amended to read as follows:

 81-8          (c)  A person convicted of an offense under Subtitle C, Title

 81-9    7, Transportation Code [the Uniform Act Regulating Traffic on

81-10    Highways (Article 6701d, Vernon's Texas Civil Statutes)], when the

81-11    offense occurs within a school crossing zone as defined by Section

81-12    541.302 [20L] of that code [Act], shall pay as court costs $20 in

81-13    addition to other taxable court costs.  A person convicted of an

81-14    offense under Section 545.066, Transportation Code [104, Uniform

81-15    Act Regulating Traffic on Highways (Article 6701d, Vernon's Texas

81-16    Civil Statutes)], shall pay as court costs $20 in addition to other

81-17    taxable court costs.  A person convicted of an offense under

81-18    Section 25.093 [4.25], Education Code, shall pay as taxable court

81-19    costs $20 in addition to other taxable court costs.  The additional

81-20    court costs under this subsection shall be collected in the same

81-21    manner that other fines and taxable court costs in the case are

81-22    collected.

81-23          SECTION 6.06.  Section 51.02(15), Family Code, is amended to

81-24    read as follows:

 82-1                (15)  "Status offender" means a child who is accused,

 82-2    adjudicated, or convicted for conduct that would not, under state

 82-3    law, be a crime if committed by an adult, including:

 82-4                      (A)  truancy under Section 51.03(b)(2);

 82-5                      (B)  running away from home under Section

 82-6    51.03(b)(3);

 82-7                      (C)  a fineable only offense under Section

 82-8    51.03(b)(1) transferred to the juvenile court under Section

 82-9    51.08(b), but only if the conduct constituting the offense would

82-10    not have been criminal if engaged in by an adult;

82-11                      (D)  failure to attend school under Section

82-12    25.094 [4.251], Education Code;

82-13                      (E)  a violation of standards of student conduct

82-14    as described by Section 51.03(b)(6);

82-15                      (F)  a violation of a juvenile curfew ordinance

82-16    or order;

82-17                      (G)  a violation of a provision of the Alcoholic

82-18    Beverage Code applicable to minors only; or

82-19                      (H)  a violation of any other fineable only

82-20    offense under Section 8.07(a)(4) or (5), Penal Code, but only if

82-21    the conduct constituting the offense would not have been criminal

82-22    if engaged in by an adult.

82-23          SECTION 6.07.  Section 51.03(b), Family Code, is amended to

82-24    read as follows:

 83-1          (b)  Conduct indicating a need for supervision is:

 83-2                (1)  subject to Subsection (f) of this section,

 83-3    conduct, other than a traffic offense, that violates:

 83-4                      (A)  the penal laws of this state of the grade of

 83-5    misdemeanor that are punishable by fine only; or

 83-6                      (B)  the penal ordinances of any political

 83-7    subdivision of this state;

 83-8                (2)  the unexcused voluntary absence of a child on 10

 83-9    or more days or parts of days within a six-month period or three or

83-10    more days or parts of days within a four-week period from school

83-11    without the consent of his parents;

83-12                (3)  the voluntary absence of a child from his home

83-13    without the consent of his parent or guardian for a substantial

83-14    length of time or without intent to return;

83-15                (4)  conduct which violates the laws of this state

83-16    prohibiting driving while intoxicated or under the influence of

83-17    intoxicating liquor (first or second offense) or driving while

83-18    under the influence of any narcotic drug or of any other drug to a

83-19    degree which renders him incapable of safely driving a vehicle

83-20    (first or second offense);

83-21                (5)  conduct prohibited by city ordinance or by state

83-22    law involving the inhalation of the fumes or vapors of paint and

83-23    other protective coatings or glue and other adhesives and the

83-24    volatile chemicals itemized in Section 484.002, Health and Safety

 84-1    Code;

 84-2                (6)  an act that violates a school district's

 84-3    previously communicated written standards of student conduct for

 84-4    which the child has been expelled under Section 37.007 [21.3011],

 84-5    Education Code; or

 84-6                (7)  conduct that violates a reasonable and lawful

 84-7    order of a court entered under Section 264.305.

 84-8          SECTION 6.08.  Section 52.01(a), Family Code, is amended to

 84-9    read as follows:

84-10          (a)  A child may be taken into custody:

84-11                (1)  pursuant to an order of the juvenile court under

84-12    the provisions of this subtitle;

84-13                (2)  pursuant to the laws of arrest;

84-14                (3)  by a law-enforcement officer, including a school

84-15    district peace officer commissioned under Section 37.081 [21.483],

84-16    Education Code, if there is probable cause to believe that the

84-17    child has engaged in:

84-18                      (A)  conduct that violates a penal law of this

84-19    state or a penal ordinance of any political subdivision of this

84-20    state; or

84-21                      (B)  delinquent conduct or conduct indicating a

84-22    need for supervision;

84-23                (4)  by a probation officer if there is probable cause

84-24    to believe that the child has violated a condition of probation

 85-1    imposed by the juvenile court; or

 85-2                (5)  pursuant to a directive to apprehend issued as

 85-3    provided by Section 52.015.

 85-4          SECTION 6.09.  Section 54.041(f), Family Code, is amended to

 85-5    read as follows:

 85-6          (f)  If a child is found to have engaged in conduct

 85-7    indicating a need for supervision described under Section

 85-8    51.03(b)(2) of this code, the court may order the child's parents

 85-9    or guardians to attend a class described by Section 25.093(h)

85-10    [provided under Section 21.035(h)], Education Code, if the school

85-11    district in which the child's parents or guardians reside offers a

85-12    class under that section.

85-13          SECTION 6.10.  Section 264.701(b), Family Code, is amended to

85-14    read as follows:

85-15          (b)  The committee is appointed by the Board of Protective

85-16    and Regulatory Services and is composed of the following 15

85-17    members:

85-18                (1)  an officer or employee of the Texas [Central]

85-19    Education Agency;

85-20                (2)  an officer or employee of the Department of

85-21    Protective and Regulatory Services;

85-22                (3)  an officer or employee of the Texas Juvenile

85-23    Probation Commission;

85-24                (4)  an officer or employee of the Texas Department of

 86-1    Mental Health and Mental Retardation;

 86-2                (5)  an officer or employee of the Children's Trust

 86-3    Fund of Texas Council;

 86-4                (6)  an officer or employee of the Health and Human

 86-5    Services Commission;

 86-6                (7)  three members of the public who have knowledge of

 86-7    and experience in the area of delivery of services relating to

 86-8    child abuse and neglect;

 86-9                (8)  three members of the public who have knowledge of

86-10    and experience in the area of evaluation of programs relating to

86-11    the prevention and treatment of child abuse and neglect; and

86-12                (9)  three members of the public who are or have been

86-13    recipients of services relating to the prevention or treatment of

86-14    child abuse or neglect.

86-15          SECTION 6.11.  Section 317.005(f), Government Code, is

86-16    amended to read as follows:

86-17          (f)  The governor or board may adopt an order under this

86-18    section withholding or transferring any portion of the total amount

86-19    appropriated to finance the foundation school program for a fiscal

86-20    year.  The governor or board may not adopt such an order if it

86-21    would result in an allocation of money between particular programs

86-22    or statutory allotments under the foundation school program

86-23    contrary to the statutory proration formula provided by Section

86-24    42.253(h) [16.254(h)], Education Code.  The governor or board may

 87-1    transfer an amount to the total amount appropriated to finance the

 87-2    foundation school program for a fiscal year and may increase the

 87-3    basic allotment.  The governor or board may adjust allocations of

 87-4    amounts between particular programs or statutory allotments under

 87-5    the foundation school program only for the purpose of conforming

 87-6    the allocations to actual pupil enrollments or attendance.

 87-7          SECTION 6.12.  Section 322.008(b), Government Code, is

 87-8    amended to read as follows:

 87-9          (b)  The [Not later than the 1994-1995 school year, the]

87-10    general appropriations bill shall include for purposes of

87-11    information the funding elements adopted by the foundation school

87-12    fund budget committee under Section 42.256(e) [16.256(e)],

87-13    Education Code, excluding the values for each school district

87-14    calculated under Subdivision (2) of that subsection.  The funding

87-15    elements under Section 42.256(e)(3) [16.256(e)(3)], Education Code,

87-16    shall be reported in dollar amounts per pupil.

87-17          SECTION 6.13.  Section 403.093(d), Government Code, is

87-18    amended to read as follows:

87-19          (d)  The comptroller shall transfer from the general revenue

87-20    fund to the foundation school fund an amount of money necessary to

87-21    fund the foundation school program as provided by Chapter 42 [16],

87-22    Education Code.  The comptroller shall make the transfers in

87-23    installments as necessary to comply with Section 42.259 [16.260],

87-24    Education Code.  An installment must be made not earlier than two

 88-1    days before the date an installment to school districts is required

 88-2    by Section 42.259 [16.260], Education Code, and must not exceed the

 88-3    amount necessary for that payment.

 88-4          SECTION 6.14.  Section 404.121(1), Government Code, is

 88-5    amended to read as follows:

 88-6                (1)  "Cash flow deficit" for any period means the

 88-7    excess, if any, of expenditures paid and transfers made from the

 88-8    general revenue fund in the period, including payments provided by

 88-9    Section 42.259 [16.260], Education Code, over taxes and other

88-10    revenues deposited to the fund in the period, other than revenues

88-11    deposited pursuant to Section 403.092, that are legally available

88-12    for the expenditures and transfers.

88-13          SECTION 6.15.  Section 415.004(f), Government Code, is

88-14    amended to read as follows:

88-15          (f)  The following officers shall serve as ex officio members

88-16    of the commission:

88-17                (1)  the commissioner of higher education of the Texas

88-18    Higher Education Coordinating Board[, Texas College and University

88-19    System];

88-20                (2)  the commissioner of the Texas [Central] Education

88-21    Agency;

88-22                (3)  the director of the Department of Public Safety;

88-23                (4)  the executive director of the criminal justice

88-24    division of the governor's office; and

 89-1                (5)  the attorney general.

 89-2          SECTION 6.16.  Section 441.036(b), Government Code, is

 89-3    amended to read as follows:

 89-4          (b)  This section applies to the state auditor, State Board

 89-5    of Barber Examiners, General Services Commission, Texas Cosmetology

 89-6    Commission, Texas State Board of Medical Examiners, Board of

 89-7    Pardons and Paroles, Board of Regents, Texas State University

 89-8    System, Texas Department of Licensing and Regulation, comptroller

 89-9    of public accounts, Court of Appeals for the Third Court of Appeals

89-10    District, governor, Texas Department of Health, Texas Department of

89-11    Insurance, Legislative Budget Board, Parks and Wildlife Commission,

89-12    Railroad Commission of Texas, Texas Real Estate Commission,

89-13    secretary of state, State Securities Board, Teacher Retirement

89-14    System of Texas, Texas [Central] Education Agency, Texas State

89-15    Library, Texas Natural Resource Conservation Commission, and the

89-16    state treasury department.

89-17          SECTION 6.17.  Section 481.028(b), Government Code, is

89-18    amended to read as follows:

89-19          (b)  The department shall enter into an agreement as required

89-20    by Subsection (a) with the:

89-21                (1)  Department of Agriculture regarding each agency's

89-22    international marketing efforts and business finance programs;

89-23                (2)  Texas Workforce [Employment] Commission, Texas

89-24    Higher Education Coordinating Board, and Texas [Central] Education

 90-1    Agency regarding each agency's work force development efforts and

 90-2    literacy programs;

 90-3                (3)  General Land Office regarding each agency's rural

 90-4    economic development efforts;

 90-5                (4)  Texas Department of Housing and Community Affairs

 90-6    regarding each agency's community development programs;

 90-7                (5)  Texas Department of Transportation and Parks and

 90-8    Wildlife Department regarding each agency's efforts to promote

 90-9    tourism;

90-10                (6)  Texas Natural Resource Conservation Commission

90-11    regarding small business finance and permits, the marketing of

90-12    recyclable products, and business permits;

90-13                (7)  office of the [state] comptroller regarding

90-14    economic development and analyses;

90-15                (8)  Texas Historical Commission regarding community

90-16    preservation, restoration, and revitalization;

90-17                (9)  Texas Department of Human Services regarding work

90-18    force development;

90-19                (10)  General Services Commission regarding providing

90-20    procurement information, certification, and technical assistance to

90-21    small and historically underutilized businesses;

90-22                (11)  Alternative Fuels Council regarding the promotion

90-23    of alternative fuels; and

90-24                (12)  institutions of higher education regarding work

 91-1    force development, literacy, and technology transfer.

 91-2          SECTION 6.18.  Section 481.341(b), Government Code, is

 91-3    amended to read as follows:

 91-4          (b)  The department shall maintain guidelines for the Texas

 91-5    Department of Human Services, the Texas Department of Mental Health

 91-6    and Mental Retardation, the Texas Juvenile Probation Commission,

 91-7    the Texas [Central] Education Agency, and the Texas Youth

 91-8    Commission to facilitate access to funds for dropouts and youth who

 91-9    are at risk of becoming dropouts.  The guidelines shall establish

91-10    the procedures for the state agencies' county or regional

91-11    representatives to follow to submit an application to the

91-12    appropriate service delivery area for funds for youth-related

91-13    projects.

91-14          SECTION 6.19.  Section 654.011(a), Government Code, is

91-15    amended to read as follows:

91-16          (a)  The position classification plan and the salary rates

91-17    and provisions in the General Appropriations Act apply to all

91-18    regular, full-time salaried employments in the state departments,

91-19    agencies, or judicial entities specified in the articles of the

91-20    General Appropriations Act that appropriate money to:

91-21                (1)  executive and administrative departments and

91-22    agencies;

91-23                (2)  health, welfare, and rehabilitation agencies;

91-24                (3)  the judiciary, except for judges, district

 92-1    attorneys, and assistant district attorneys; and

 92-2                (4)  agencies of public education, but only the Texas

 92-3    [Central] Education Agency, the Texas School for the Blind and

 92-4    Visually Impaired, and the Texas School for the Deaf.

 92-5          SECTION 6.20.  Section 661.031(2), Government Code, is

 92-6    amended to read as follows:

 92-7                (2)  "State employee" means an individual who is an

 92-8    appointed officer or employee of a state agency and who normally

 92-9    works 900 hours or more a year.  The term includes:

92-10                      (A)  an hourly employee;

92-11                      (B)  a temporary employee;

92-12                      (C)  a person employed by:

92-13                            (i)  the Teacher Retirement System of

92-14    Texas;

92-15                            (ii)  the Texas [Central] Education Agency;

92-16                            (iii)  the Texas Higher Education

92-17    Coordinating Board;

92-18                            (iv)  the Texas National Research

92-19    Laboratory Commission;

92-20                            (v)  the Texas School for the Blind and

92-21    Visually Impaired;

92-22                            (vi)  the Texas School for the Deaf;

92-23                            (vii)  the Texas Youth Commission;

92-24                            (viii)  the Windham School District [of the

 93-1    Texas Department of Criminal Justice]; or

 93-2                            (ix)  the Texas Rehabilitation Commission;

 93-3    and

 93-4                      (D)  a classified, administrative, faculty, or

 93-5    professional employee of a state institution or agency of higher

 93-6    education who has accumulated vacation leave, sick leave, or both,

 93-7    during the employment.

 93-8          SECTION 6.21.  Section 661.061(2), Government Code, is

 93-9    amended to read as follows:

93-10                (2)  "State employee" means an employee or appointed

93-11    officer of a state agency.  The term includes:

93-12                      (A)  a full-time employee or officer;

93-13                      (B)  a part-time employee or officer;

93-14                      (C)  an hourly employee;

93-15                      (D)  a temporary employee;

93-16                      (E)  a person employed by:

93-17                            (i)  the Teacher Retirement System of

93-18    Texas;

93-19                            (ii)  the Texas [Central] Education Agency;

93-20                            (iii)  the Texas Higher Education

93-21    Coordinating Board;

93-22                            (iv)  the Texas National Research

93-23    Laboratory Commission;

93-24                            (v)  the Texas School for the Blind and

 94-1    Visually Impaired;

 94-2                            (vi)  the Texas School for the Deaf;

 94-3                            (vii)  the Texas Youth Commission;

 94-4                            (viii)  the Windham School District [of the

 94-5    Texas Department of Criminal Justice]; or

 94-6                            (ix)  the Texas Rehabilitation Commission;

 94-7    or

 94-8                      (F)  a classified, administrative, faculty, or

 94-9    professional employee of a state institution or agency of higher

94-10    education who has accumulated vacation leave during the employment.

94-11          SECTION 6.22.  Section 822.002(a), Government Code, is

94-12    amended to read as follows:

94-13          (a)  An employee of the public school system is not permitted

94-14    to be a member of the retirement system if the employee:

94-15                (1)  executed and filed a waiver of membership prior to

94-16    the effective date of this subtitle and has not elected membership

94-17    pursuant to Subsection (b);

94-18                (2)  is eligible and elects to participate in the

94-19    optional retirement program under Chapter 830;

94-20                (3)  is solely employed by a public institution of

94-21    higher education that as a condition of employment requires the

94-22    employee to be enrolled as a student in the institution; or

94-23                (4)  [is solely employed as a noncertified instructor

94-24    in a program described in Subchapter G, Chapter 13, Education Code;

 95-1    or]

 95-2                [(5)]  has retired under the retirement system and has

 95-3    not been reinstated to membership pursuant to Section 823.502,

 95-4    824.005, or 824.307.

 95-5          SECTION 6.23.  Section 825.405(i), Government Code, is

 95-6    amended to read as follows:

 95-7          (i)  Not later than the seventh day after the final date the

 95-8    comptroller certifies to the commissioner of education changes to

 95-9    the property value study conducted under Subchapter M, Chapter 403

95-10    [Section 11.86, Education Code], the comptroller shall certify to

95-11    the Teacher Retirement System of Texas:

95-12                (1)  the effective tax rate for school district

95-13    maintenance and operation revenues for each school district in the

95-14    state for the immediately preceding tax year; and

95-15                (2)  the statewide average effective tax rate for

95-16    school district maintenance and operation revenues for the

95-17    immediately preceding tax year.

95-18          SECTION 6.24.  Section 830.005, Government Code, is amended

95-19    to read as follows:

95-20          Sec. 830.005.  Exemption From Taxes.  If qualified to do

95-21    business in this state, a life insurance or annuity company is

95-22    exempt from the payment of franchise or premium taxes on annuity or

95-23    group insurance policies issued under a benefit program authorized

95-24    and at least partly paid for by the governing board of an

 96-1    institution of higher education or the Texas [Central] Education

 96-2    Agency.

 96-3          SECTION 6.25.  Section 830.103(a), Government Code, is

 96-4    amended to read as follows:

 96-5          (a)  An institution of higher education shall accept the

 96-6    transfer of a participant's optional retirement program from

 96-7    another institution of higher education or from the Texas [Central]

 96-8    Education Agency.  The Texas [Central] Education Agency shall

 96-9    accept the transfer of a participant's optional retirement program

96-10    from an institution of higher education if the participant becomes

96-11    commissioner of education.

96-12          SECTION 6.26.  Sections 830.202(b)-(d), Government Code, are

96-13    amended to read as follows:

96-14          (b)  The comptroller of public accounts shall pay the state's

96-15    contributions to the optional retirement program to the appropriate

96-16    institutions of higher education and, if applicable, to the Texas

96-17    [Central] Education Agency.

96-18          (c)  The disbursing officer of an institution of higher

96-19    education and, if applicable, of the Texas [Central] Education

96-20    Agency shall pay the contributions collected under this section to

96-21    the company providing the optional retirement program for that

96-22    institution.

96-23          (d)  An institution of higher education and, if applicable,

96-24    the Texas [Central] Education Agency shall certify to the

 97-1    comptroller, in the manner provided for estimate of state

 97-2    contributions to the retirement system, estimates of funds required

 97-3    for the payments by the state under this section.

 97-4          SECTION 6.27.  Section 830.204(a), Government Code, is

 97-5    amended to read as follows:

 97-6          (a)  A participant in the optional retirement program and

 97-7    either the employing institution of higher education or, as

 97-8    applicable, the Texas [Central] Education Agency, acting through

 97-9    its governing board, shall execute an agreement under which the

97-10    salary of the participant is reduced by the amount of the

97-11    contribution required under Section 830.201 and under which the

97-12    employer or agency contributes an amount equal to the reduction for

97-13    any type of investment authorized in Section 403(b) of the Internal

97-14    Revenue Code of 1986 (26 U.S.C.  Section 403) or toward the

97-15    purchase of an annuity under the program.

97-16          SECTION 6.28.  Section 2054.059(b), Government Code, is

97-17    amended to read as follows:

97-18          (b)  The department, comptroller, and General Services

97-19    Commission shall develop a statewide telecommunications operating

97-20    plan for all state agencies.  The plan shall implement a statewide

97-21    network and include technical specifications that are binding on

97-22    the managing and operating agency.  A representative of the Texas

97-23    [Central] Education Agency and a representative of the Texas Higher

97-24    Education Coordinating Board shall review and comment on the

 98-1    operating plan as part of the representatives'  duties under

 98-2    Section 2170.055 [10.02(g), State Purchasing and General Services

 98-3    Act (Article 601b, Vernon's Texas Civil Statutes)].

 98-4          SECTION 6.29.  Section 2105.001(1), Government Code, is

 98-5    amended to read as follows:

 98-6                (1)  "Agency" means:

 98-7                      (A)  the Texas Department of Human Services;

 98-8                      (B)  the Texas Department of Health;

 98-9                      (C)  the Texas Department of Housing and

98-10    Community Affairs;

98-11                      (D)  the Texas [Central] Education Agency;

98-12                      (E)  the Texas Department of Mental Health and

98-13    Mental Retardation;

98-14                      (F)  the Texas Department on Aging; or

98-15                      (G)  any other commission, board, department, or

98-16    state agency designated to receive block grant funds.

98-17          SECTION 6.30.  Section 2170.055, Government Code, is amended

98-18    to read as follows:

98-19          Sec. 2170.055.  REVIEW AND COMMENT BY EDUCATION AGENCIES.

98-20    (a)  A representative of the Texas [Central] Education Agency and a

98-21    representative of the Texas Higher Education Coordinating Board

98-22    shall review and comment on telecommunications plans developed

98-23    under Section 2170.054.

98-24          (b)  The participation of the Texas [Central] Education

 99-1    Agency and the Texas Higher Education Coordinating Board is for the

 99-2    limited purpose of coordinating the statewide telecommunications

 99-3    system developed under this chapter with the telecommunications

 99-4    systems of educational entities that are not subject to this

 99-5    chapter.

 99-6          (c)  A representative of the Texas [Central] Education Agency

 99-7    or the Texas Higher Education Coordinating Board under this section

 99-8    acts in an advisory capacity only and is not entitled to vote on

 99-9    decisions made under this chapter.

99-10          SECTION 6.31.  Section 2257.081, Government Code, is amended

99-11    to read as follows:

99-12          Sec. 2257.081.  Definition.  In this subchapter, "exempt

99-13    institution" means:

99-14                (1)  a public retirement system, as defined by Section

99-15    802.001; or

99-16                (2)  the permanent school fund, as described [defined]

99-17    by Section 43.001 [15.01], Education Code.

99-18          SECTION 6.32.  Section 2307.002(a), Government Code, is

99-19    amended to read as follows:

99-20          (a)  The Texas Interagency Council for the Homeless is

99-21    composed of:

99-22                (1)  one representative from each of the following

99-23    agencies, appointed by the administrative head of that agency:

99-24                      (A)  the Texas Department of Health;

 100-1                     (B)  the Texas Department of Human Services;

 100-2                     (C)  the Texas Department of Mental Health and

 100-3   Mental Retardation;

 100-4                     (D)  the Texas Department of Criminal Justice;

 100-5                     (E)  the Texas Department on Aging;

 100-6                     (F)  the Texas Rehabilitation Commission;

 100-7                     (G)  the Texas [Central] Education Agency;

 100-8                     (H)  the Texas Commission on Alcohol and Drug

 100-9   Abuse;

100-10                     (I)  the Department of Protective and Regulatory

100-11   Services;

100-12                     (J)  the Health and Human Services Commission;

100-13                     (K)  the Texas Workforce [Employment] Commission;

100-14                     (L)  the Texas Youth Commission;

100-15                     (M)  the Texas Veterans Commission; and

100-16                     (N)  the workforce development division of the

100-17   Texas Department of Commerce;

100-18               (2)  one representative from the office of the

100-19   comptroller appointed by the comptroller;

100-20               (3)  two representatives from the department, one each

100-21   from the community affairs division and the housing finance

100-22   division, appointed by the director; and

100-23               (4)  three members representing service providers to

100-24   the homeless, one each appointed by the governor, the lieutenant

 101-1   governor, and the speaker of the house of representatives.

 101-2         SECTION 6.33.  Section 12.033(a), Health and Safety Code, is

 101-3   amended to read as follows:

 101-4         (a)  Except as otherwise provided by this section, the board

 101-5   by rule shall charge fees for the distribution and administration

 101-6   of vaccines and sera provided under:

 101-7               (1)  Section 38.001 [2.09], Education Code;

 101-8               (2)  Section 42.043, Human Resources Code;

 101-9               (3)  Chapter 826 (Rabies Control Act of 1981);

101-10               (4)  Chapter 81 (Communicable Disease Prevention and

101-11   Control Act); and

101-12               (5)  Section 161.005[, Health and Safety Code].

101-13         SECTION 6.34.  Section 36.007(a), Health and Safety Code, is

101-14   amended to read as follows:

101-15         (a)  The department may provide remedial services directly or

101-16   through approved providers to eligible individuals who have certain

101-17   special senses and communication disorders and who are not eligible

101-18   for special education services that remediate those disorders and

101-19   that are administered by the Texas [Central] Education Agency

101-20   through the public schools.

101-21         SECTION 6.35.  Section 36.015(b), Health and Safety Code, is

101-22   amended to read as follows:

101-23         (b)  The committee is composed of nine members.  The chief

101-24   administrative officer of each of the following agencies shall

 102-1   appoint one member to the committee:

 102-2               (1)  Texas [Central] Education Agency;

 102-3               (2)  Texas Commission for the Blind;

 102-4               (3)  Texas Commission for the Deaf and Hard of Hearing;

 102-5               (4)  Texas Department of Housing and Community Affairs;

 102-6               (5)  Texas Department of Health;

 102-7               (6)  Texas Department of Human Services;

 102-8               (7)  Texas Department of Mental Health and Mental

 102-9   Retardation;

102-10               (8)  Texas School for the Blind and Visually Impaired;

102-11   and

102-12               (9)  Texas School for the Deaf.

102-13         SECTION 6.36.  Sections 37.001(a) and (b), Health and Safety

102-14   Code, are amended to read as follows:

102-15         (a)  The department, in cooperation with the Texas [Central]

102-16   Education Agency, shall establish a program to detect abnormal

102-17   spinal curvature in children.

102-18         (b)  The board, in cooperation with the Texas [Central]

102-19   Education Agency, shall adopt rules for the mandatory spinal

102-20   screening of children in grades 6 and 9 attending public or private

102-21   schools.  The department shall coordinate the spinal screening

102-22   program with any other screening program conducted by the

102-23   department on those children.

102-24         SECTION 6.37.  Section 37.004(d), Health and Safety Code, is

 103-1   amended to read as follows:

 103-2         (d)  It is the intent of the legislature that the department

 103-3   provide certification training for nonhealth practitioners through

 103-4   Texas [Central] Education Agency regional education service

 103-5   centers.

 103-6         SECTION 6.38.  Section 85.017(b), Health and Safety Code, is

 103-7   amended to read as follows:

 103-8         (b)  The council consists of one representative from each of

 103-9   the following agencies appointed by the executive director or

103-10   commissioner of each agency:

103-11               (1)  the department;

103-12               (2)  the Texas Department of Mental Health and Mental

103-13   Retardation;

103-14               (3)  the Texas Department of Human Services;

103-15               (4)  the Texas Commission on Alcohol and Drug Abuse;

103-16               (5)  the Texas Rehabilitation Commission;

103-17               (6)  the Texas Youth Commission;

103-18               (7)  the Texas Department of Criminal Justice;

103-19               (8)  the Texas Juvenile Probation Commission;

103-20               (9)  the Texas Commission for the Blind;

103-21               (10)  the Texas Commission for the Deaf and Hard of

103-22   Hearing;

103-23               (11)  the Department of Protective and Regulatory

103-24   Services;

 104-1               (12)  the Texas [Central] Education Agency;

 104-2               (13)  the Texas State Board of Medical Examiners;

 104-3               (14)  the Board of Nurse Examiners;

 104-4               (15)  the Board of Vocational Nurse Examiners;

 104-5               (16)  the Texas State Board of Dental Examiners; and

 104-6               (17)  the Health and Human Services Commission.

 104-7         SECTION 6.39.  Section 103.002(a), Health and Safety Code, is

 104-8   amended to read as follows:

 104-9         (a)  The Texas Diabetes Council is composed of 12 citizen

104-10   members appointed from the public and one representative each from

104-11   the department, the Texas [Central] Education Agency, the Texas

104-12   Department of Human Services, the Texas Commission for the Blind,

104-13   and the Texas Rehabilitation Commission.

104-14         SECTION 6.40.  Sections 103.017(a) and (b), Health and Safety

104-15   Code, are amended to read as follows:

104-16         (a)  The department, the Texas Commission for the Blind, the

104-17   Texas Rehabilitation Commission, the Texas Department of Human

104-18   Services, and the Texas [Central] Education Agency shall work with

104-19   the council to jointly develop, produce, and implement a general

104-20   public awareness strategy focusing on diabetes, its complications,

104-21   and techniques for achieving good management.  Each agency shall

104-22   pay for the costs of producing and disseminating information on

104-23   diabetes to clients served by that agency.

104-24         (b)  The department, the Texas Commission for the Blind, the

 105-1   Texas Rehabilitation Commission, the Texas Department of Human

 105-2   Services, and the Texas [Central] Education Agency may jointly

 105-3   develop and implement a statewide plan for conducting regional

 105-4   training sessions for public and private service providers,

 105-5   including institutional health care providers, who have routine

 105-6   contact with persons with diabetes.

 105-7         SECTION 6.41.  Sections 161.005(b) and (d), Health and Safety

 105-8   Code, are amended to read as follows:

 105-9         (b)  The department and the board have the same powers and

105-10   duties under this section as those entities have under Sections

105-11   38.001 and 51.933 [Section 2.09], Education Code.  In addition, the

105-12   provisions of those sections [that section] relating to provisional

105-13   admissions and exceptions apply to this section.

105-14         (d)  This section does not affect the requirements of Section

105-15   38.001 or 51.933 [2.09], Education Code, or Section 42.043, Human

105-16   Resources Code.

105-17         SECTION 6.42.  Section 382.056(a), Health and Safety Code, is

105-18   amended to read as follows:

105-19         (a)  An applicant for a permit under Section 382.0518 or

105-20   382.054 or a permit renewal review under Section 382.055 shall

105-21   publish notice of intent to obtain the permit or permit review.

105-22   The commission by rule may require an applicant for a federal

105-23   operating permit to publish notice of intent to obtain a permit or

105-24   permit review consistent with federal requirements and with the

 106-1   requirements of this section.  The applicant shall publish the

 106-2   notice at least once in a newspaper of general circulation in the

 106-3   municipality in which the facility or federal source is located or

 106-4   is proposed to be located or in the municipality nearest to the

 106-5   location or proposed location of the facility or federal source.

 106-6   If the elementary or middle school nearest to the facility or

 106-7   proposed facility provides a bilingual education program as

 106-8   required by Subchapter B, Chapter 29 [Section 21.109], Education

 106-9   Code, [and Section 19 TAC Subsection 89.2(a),] the applicant shall

106-10   also publish the notice at least once in an additional publication

106-11   of general circulation in the municipality or county in which the

106-12   facility is located or proposed to be located that is published in

106-13   the language taught in the bilingual education program.  This

106-14   requirement is waived if such a publication does not exist or if

106-15   the publisher refuses to publish the notice.  The commission by

106-16   rule shall prescribe when notice must be published and may require

106-17   publication of additional notice.  Notice required to be published

106-18   under this section shall only be required to be published in the

106-19   United States.

106-20         SECTION 6.43.  Section 382.142(b)(5), Health and Safety Code,

106-21   is amended to read as follows:

106-22               (5)  This section shall also apply to all vehicles

106-23   purchased, leased, or otherwise acquired pursuant to:

106-24                     (A)  Subchapter G, Chapter 451, Transportation

 107-1   Code [Section 21.174(c)(1), Education Code;]

 107-2                     [(B)  Section 14(c)(1), Chapter 141, Acts of the

 107-3   63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's

 107-4   Texas Civil Statutes), as added by Section 8, Chapter 1189, Acts of

 107-5   the 71st Legislature, Regular Session, 1989, and amended by Section

 107-6   13, Chapter 503, Acts of the 72nd Legislature, Regular Session,

 107-7   1991];

 107-8                     (B)  Subchapter F, Chapter 452, Transportation

 107-9   Code [(C)  Section 20(e)(1), Chapter 683, Acts of the 66th

107-10   Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes)];

107-11                     (C)  Subchapter F, Chapter 453, Transportation

107-12   Code [(D)  Section 6(k)(1), Article 1118z, Revised Statutes]; and

107-13                     (D)  Section 2158.003, Government Code

107-14   [(E)  Section 3.29(a), State Purchasing and General Services Act

107-15   (Article 601b, Vernon's Texas Civil Statutes)].

107-16         SECTION 6.44.  Section 382.143(h), Health and Safety Code, is

107-17   amended to read as follows:

107-18         (h)  This section also applies to all vehicles purchased,

107-19   leased, or otherwise acquired pursuant to:

107-20                     (A)  Subchapter G, Chapter 451, Transportation

107-21   Code [Section 21.174(c)(1), Education Code;]

107-22                     [(B)  Section 14(c)(1), Chapter 141, Acts of the

107-23   63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's

107-24   Texas Civil Statutes), as added by Section 8, Chapter 1189, Acts of

 108-1   the 71st Legislature, Regular Session, 1989, and amended by Section

 108-2   13, Chapter 503, Acts of the 72nd Legislature, Regular Session,

 108-3   1991];

 108-4                     (B)  Subchapter F, Chapter 452, Transportation

 108-5   Code [(C)  Section 20(e)(1), Chapter 683, Acts of the 66th

 108-6   Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes)];

 108-7                     (C)  Subchapter F, Chapter 453, Transportation

 108-8   Code [(D)  Section 6(k)(1), Article 1118z, Revised Statutes]; and

 108-9                     (D)  Section 2158.003, Government Code

108-10   [(E)  Section 3.29(a), State Purchasing and General Services Act

108-11   (Article 601b, Vernon's Texas Civil Statutes)].

108-12         SECTION 6.45.  Section 481.0621(c), Health and Safety Code,

108-13   is amended to read as follows:

108-14         (c)  The department and the Texas [Central] Education Agency

108-15   shall adopt a memorandum of understanding that establishes the

108-16   responsibilities of the agency, the department, private schools,

108-17   and school districts in implementing and maintaining a program for

108-18   reporting information concerning controlled substances, controlled

108-19   substance analogues, chemical precursors, and chemical laboratory

108-20   apparatus used in educational or research activities of those

108-21   schools and school districts.

108-22         SECTION 6.46.  Section 533.040(c), Health and Safety Code, is

108-23   amended to read as follows:

108-24         (c)  The department shall designate an employee as a youth

 109-1   suicide prevention officer.  The officer shall serve as a liaison

 109-2   to the Texas [Central] Education Agency and public schools on

 109-3   matters relating to the prevention of and response to suicide or

 109-4   attempted suicide by public school students.

 109-5         SECTION 6.47.  Section 533.0415(a), Health and Safety Code,

 109-6   is amended to read as follows:

 109-7         (a)  The department, the Texas Department of Human Services,

 109-8   the Texas Youth Commission, the Texas Juvenile Probation

 109-9   Commission, and the Texas [Central] Education Agency by rule shall

109-10   adopt a joint memorandum of understanding to develop interagency

109-11   training for the staffs of the agencies involved in the functions

109-12   of assessment, case planning, case management, and in-home or

109-13   direct delivery of services to children, youth, and their families.

109-14   The memorandum must:

109-15               (1)  outline the responsibility of each agency in

109-16   coordinating and developing a plan for interagency training on

109-17   individualized assessment and effective intervention and treatment

109-18   services for children and dysfunctional families; and

109-19               (2)  provide for the establishment of an interagency

109-20   task force to:

109-21                     (A)  develop a training program to include

109-22   identified competencies, content, and hours for completion of the

109-23   training with at least 20 hours of training required each year

109-24   until the program is completed;

 110-1                     (B)  design a plan for implementing the program,

 110-2   including regional site selection, frequency of training, and

 110-3   selection of experienced clinical public and private professionals

 110-4   or consultants to lead the training;

 110-5                     (C)  monitor, evaluate, and revise the training

 110-6   program, including the development of additional curricula based on

 110-7   future training needs identified by staff and professionals; and

 110-8                     (D)  submit a report to the governor, lieutenant

 110-9   governor, and speaker of the house of representatives by October 15

110-10   of each even-numbered year.

110-11         SECTION 6.48.  Section 534.034(b), Health and Safety Code, is

110-12   amended to read as follows:

110-13         (b)  The department, the Texas Department of Human Services,

110-14   the Texas Rehabilitation Commission, the Texas Commission on

110-15   Alcohol and Drug Abuse, the Texas Department of Health, the Texas

110-16   [Central] Education Agency, the Texas State Board of Pharmacy, and

110-17   any other agency identified by the department under Subsection (a)

110-18   shall by rule adopt a joint memorandum of understanding to maximize

110-19   the use of each agency's reviews by eliminating duplication of

110-20   program reviews unless duplicative reviews are necessary to comply

110-21   with federal funding requirements.

110-22         SECTION 6.49.  Section 551.043(b), Health and Safety Code, is

110-23   amended to read as follows:

110-24         (b)  The clinic service shall cooperate with the Texas

 111-1   [Central] Education Agency and local boards of education in

 111-2   studying the mental and physical health of children:

 111-3               (1)  with serious retardation in school progress or in

 111-4   mental development; or

 111-5               (2)  who have personality development problems.

 111-6         SECTION 6.50.  Section 614.002(c), Health and Safety Code, is

 111-7   amended to read as follows:

 111-8         (c)  The executive head of each of the following agencies,

 111-9   divisions of agencies, or associations, or that person's designated

111-10   representative, shall serve as a member of the council:

111-11               (1)  the institutional division of the Texas Department

111-12   of Criminal Justice;

111-13               (2)  the Texas Department of Mental Health and Mental

111-14   Retardation;

111-15               (3)  the pardons and paroles division of the Texas

111-16   Department of Criminal Justice;

111-17               (4)  the community justice assistance division of the

111-18   Texas Department of Criminal Justice;

111-19               (5)  the state jail division of the Texas Department of

111-20   Criminal Justice;

111-21               (6)  the Texas Juvenile Probation Commission;

111-22               (7)  the Texas Youth Commission;

111-23               (8)  the Texas Rehabilitation Commission;

111-24               (9)  the Texas [Central] Education Agency;

 112-1               (10)  the Criminal Justice Policy Council;

 112-2               (11)  the Mental Health Association in Texas;

 112-3               (12)  the Texas Commission on Alcohol and Drug Abuse;

 112-4               (13)  the Commission on Law Enforcement Officer

 112-5   Standards and Education;

 112-6               (14)  the Texas Council of Community Mental Health and

 112-7   Mental Retardation Centers;

 112-8               (15)  the Commission on Jail Standards;

 112-9               (16)  the Texas Planning Council for Developmental

112-10   Disabilities;

112-11               (17)  the Texas Association for Retarded Citizens;

112-12               (18)  the Texas Alliance for the Mentally Ill;

112-13               (19)  the Parent Association for the Retarded of Texas,

112-14   Inc.;

112-15               (20)  the Texas Department of Human Services; and

112-16               (21)  the Texas Department on Aging.

112-17         SECTION 6.51.  Section 791.036(k), Health and Safety Code, is

112-18   amended to read as follows:

112-19         (k)  If the Texas [Central] Education Agency approves that

112-20   construction as providing a convenient and safe passage, doorways

112-21   may be used as exits from each floor.  The base of a doorway must

112-22   be at the same level as the corresponding floor of the building and

112-23   the landing of the fire escape to which the doorway leads.  A

112-24   doorway must be at least three feet wide and six feet six inches

 113-1   high and must be fitted with panic hardware approved by the

 113-2   successor organization to the National Board of Fire Underwriters.

 113-3   If there are two or more rooms or hallways adjacent and convenient

 113-4   to the landing of a fire escape, each room or hallway must have a

 113-5   doorway leading to that landing.

 113-6         SECTION 6.52.  Section 22.011(a), Human Resources Code, is

 113-7   amended to read as follows:

 113-8         (a)  The department, the Texas Department of Health, the

 113-9   Texas Department of Mental Health and Mental Retardation, the Texas

113-10   Rehabilitation Commission, the Texas Commission for the Blind, the

113-11   Texas Commission for the Deaf and Hard of Hearing, and the Texas

113-12   [Central] Education Agency shall adopt a joint memorandum of

113-13   understanding to facilitate the coordination of services to

113-14   disabled persons.  The memorandum shall:

113-15               (1)  clarify the financial and service responsibilities

113-16   of each agency in relation to disabled persons; and

113-17               (2)  address how the agency will share data relating to

113-18   services delivered to disabled persons by each agency.

113-19         SECTION 6.53.  Sections 31.0031(d) and (e), Human Resources

113-20   Code, as added by Section 2.02(a), Chapter 655, Acts of the 74th

113-21   Legislature, Regular Session, 1995, are amended to read as follows:

113-22         (d)  The responsibility agreement shall require that:

113-23               (1)  the parent of a dependent child cooperate with the

113-24   department and the Title IV-D agency if necessary to establish the

 114-1   paternity of the dependent child and to establish or enforce child

 114-2   support;

 114-3               (2)  if adequate and accessible providers of the

 114-4   services are available in the geographic area and subject to the

 114-5   availability of funds, each dependent child, as appropriate,

 114-6   complete early and periodic screening, diagnosis, and treatment

 114-7   checkups on schedule and receive the immunization series prescribed

 114-8   by Section 161.004, Health and Safety Code, unless the child is

 114-9   exempt under that section;

114-10               (3)  each adult recipient, or teen parent recipient who

114-11   has completed the requirements regarding school attendance in

114-12   Subdivision (6), not voluntarily terminate paid employment of at

114-13   least 30 hours each week without good cause in accordance with

114-14   rules adopted by the department;

114-15               (4)  each adult recipient for whom a needs assessment

114-16   is conducted participate in an activity to enable that person to

114-17   become self-sufficient by:

114-18                     (A)  continuing the person's education or

114-19   becoming literate;

114-20                     (B)  entering a job placement or employment

114-21   skills training program;

114-22                     (C)  serving as a volunteer in the person's

114-23   community; or

114-24                     (D)  serving in a community work program or other

 115-1   work program approved by the department;

 115-2               (5)  each caretaker relative or parent receiving

 115-3   assistance not use, sell, or possess marihuana or a controlled

 115-4   substance in violation of Chapter 481, Health and Safety Code, or

 115-5   abuse alcohol;

 115-6               (6)  each dependent child younger than 18 years of age

 115-7   or teen parent younger than 19 years of age attend school

 115-8   regularly, unless the child has a high school diploma or high

 115-9   school equivalency certificate or is specifically exempted from

115-10   school attendance under Section 25.086 [21.033], Education Code;

115-11               (7)  each recipient comply with department rules

115-12   regarding proof of school attendance; and

115-13               (8)  each recipient attend parenting skills training

115-14   classes, as determined by the needs assessment.

115-15         (e)  In conjunction with the Texas [Central] Education

115-16   Agency, the department by rule shall ensure compliance with the

115-17   school attendance requirements of Subsection (d)(6) by establishing

115-18   criteria for:

115-19               (1)  determining whether a child is regularly attending

115-20   school;

115-21               (2)  exempting a child from school attendance in

115-22   accordance with Subchapter C [B], Chapter 25 [21], Education Code;

115-23   and

115-24               (3)  determining when an absence is excused.

 116-1         SECTION 6.54.  Section 31.0135(a), Human Resources Code, is

 116-2   amended to read as follows:

 116-3         (a)  The department, in cooperation with the Texas [Central]

 116-4   Education Agency, the Department of Protective and Regulatory

 116-5   Services, the Texas Agricultural Extension Service, or any other

 116-6   public or private entity, shall develop a parenting skills training

 116-7   program to assist a recipient of assistance under this chapter,

 116-8   including a child who receives assistance on behalf of a dependent

 116-9   child.  The program shall include nutrition education, budgeting

116-10   and survival skills, and instruction on the necessity of physical

116-11   and emotional safety for children.

116-12         SECTION 6.55.  Section 33.024(a)(1), Human Resources Code, is

116-13   amended to read as follows:

116-14               (1)  "Agency" means the Texas [Central] Education

116-15   Agency.

116-16         SECTION 6.56.  Section 73.002(a), Human Resources Code, is

116-17   amended to read as follows:

116-18         (a)  The council is composed of three lay members who are the

116-19   parents of developmentally delayed children and one representative

116-20   each from the Texas Department of Health, the Texas Department of

116-21   Mental Health and Mental Retardation, the Texas Department of Human

116-22   Services, the Texas [Central] Education Agency, the Department of

116-23   Protective and Regulatory Services, and the Texas Commission on

116-24   Alcohol and Drug Abuse.  The governor with the advice and consent

 117-1   of the senate shall appoint the lay members, and the commissioner,

 117-2   director, or executive director of each agency shall appoint that

 117-3   agency's representative.  The agency representative should be a

 117-4   person in the agency with administrative responsibility for the

 117-5   supervision of early childhood intervention support staff or

 117-6   related services.

 117-7         SECTION 6.57.  Section 73.010(a), Human Resources Code, is

 117-8   amended to read as follows:

 117-9         (a)  A developmentally delayed child is eligible for services

117-10   under this chapter if the child:

117-11               (1)  is under three years of age;

117-12               (2)  has not reached the age of eligibility for entry

117-13   into the comprehensive special education program for [handicapped]

117-14   children with disabilities under Section 29.001 [21.501], Education

117-15   Code; or

117-16               (3)  is under three years of age and is an eligible

117-17   child authorized under Sections 30.002(a) and 30.081 [Section

117-18   11.052(a) and Section 11.10(o)], Education Code.

117-19         SECTION 6.58.  Section 73.022, Human Resources Code, is

117-20   amended to read as follows:

117-21         Sec. 73.022.  Federally Funded Programs.  (a)  The Texas

117-22   [Central] Education Agency may not impose requirements on an early

117-23   childhood intervention program that receives funds under the

117-24   Elementary and Secondary Education Act of 1965 (20 U.S.C. Section

 118-1   2701 et seq.) that are not requirements under federal law or under

 118-2   this chapter.

 118-3         (b)  The Texas [Central] Education Agency shall coordinate

 118-4   monitoring required by federal law for early childhood intervention

 118-5   programs with the program monitoring required by this chapter to

 118-6   the extent possible.

 118-7         SECTION 6.59.  Section 79.003(b), Human Resources Code, is

 118-8   amended to read as follows:

 118-9         (b)  The clearinghouse shall:

118-10               (1)  establish a system of intrastate communication of

118-11   information relating to missing children and missing persons;

118-12               (2)  provide a centralized file for the exchange of

118-13   information on missing children, missing persons, and unidentified

118-14   dead bodies within the state;

118-15               (3)  communicate with the national crime information

118-16   center for the exchange of information on missing children and

118-17   missing persons suspected of interstate travel;

118-18               (4)  collect, process, maintain, and disseminate

118-19   accurate and complete information on missing children and missing

118-20   persons;

118-21               (5)  provide a statewide toll-free telephone line for

118-22   the reporting of missing children and missing persons and for

118-23   receiving information on missing children and missing persons; and

118-24               (6)  provide and disseminate to legal custodians, law

 119-1   enforcement agencies, and the Texas [Central] Education Agency

 119-2   information that explains how to prevent child abduction and what

 119-3   to do if a child becomes missing.

 119-4         SECTION 6.60.  Sections 79.005(b) and (c), Human Resources

 119-5   Code, are amended to read as follows:

 119-6         (b)  The clearinghouse shall also provide to the Texas

 119-7   [Central] Education Agency information about missing children who

 119-8   may be located in the school systems.

 119-9         (c)  The clearinghouse may also receive information about

119-10   missing children from the Public Education Information Management

119-11   System of the Texas [Central] Education Agency and from school

119-12   districts.

119-13         SECTION 6.61.  Section 79.007(a), Human Resources Code, is

119-14   amended to read as follows:

119-15         (a)  The Texas [Central] Education Agency shall develop and

119-16   administer a program for the location of missing children who may

119-17   be enrolled within the Texas school system, including nonpublic

119-18   schools, and for the reporting of children who may be missing or

119-19   who may be unlawfully removed from schools.

119-20         SECTION 6.62.  Section 81.006(a), Human Resources Code, is

119-21   amended to read as follows:

119-22         (a)  The commission shall:

119-23               (1)  develop and implement a statewide program of

119-24   advocacy and education to ensure continuity of services to persons

 120-1   who are deaf or hard of hearing;

 120-2               (2)  provide direct services to persons who are deaf or

 120-3   hard of hearing, including interpreter services, information and

 120-4   referral services, advocacy services, services to elderly persons

 120-5   who are deaf or hard of hearing, and training in accessing basic

 120-6   life skills;

 120-7               (3)  work to ensure more effective coordination and

 120-8   cooperation among public and nonprofit organizations providing

 120-9   social and educational services to individuals who are deaf or hard

120-10   of hearing;

120-11               (4)  maintain a registry of available interpreters for

120-12   persons who are deaf or hard of hearing by updating the registry at

120-13   least quarterly and making the registry available to interested

120-14   persons at cost;

120-15               (5)  establish a system to approve and provide courses

120-16   and workshops for the instruction and continuing education of

120-17   interpreters for persons who are deaf or hard of hearing;

120-18               (6)  annually review the schedule of fees recommended

120-19   by the commission for the payment of interpreters and, as a result

120-20   of the findings of the review and other relevant information, adopt

120-21   by rule a schedule of maximum allowable hourly fees to be paid to

120-22   interpreters with varied levels of skill by a state agency, court,

120-23   or a political subdivision of the state;

120-24               (7)  assist institutions of higher education in

 121-1   initiating training programs for interpreters and develop

 121-2   guidelines for instruction to promote uniformity of signs taught

 121-3   within those programs; and

 121-4               (8)  with the assistance of the Texas [Central]

 121-5   Education Agency, develop standards for evaluation of the programs

 121-6   described by Subdivision (7).

 121-7         SECTION 6.63.  Section 81.017(a), Human Resources Code, is

 121-8   amended to read as follows:

 121-9         (a)  The commission and each of the following agencies shall

121-10   adopt by rule a memorandum of understanding to coordinate the

121-11   delivery of services to persons who are deaf or hard of hearing and

121-12   to reduce duplication of services:

121-13               (1)  the Texas Department of Human Services;

121-14               (2)  the Texas Department of Mental Health and Mental

121-15   Retardation;

121-16               (3)  the Texas Workforce [Employment] Commission;

121-17               (4)  the Texas Department of Health;

121-18               (5)  the Texas Higher Education Coordinating Board[,

121-19   Texas College and University System];

121-20               (6)  the Texas [Central] Education Agency;

121-21               (7)  the Texas Department on Aging;

121-22               (8)  the Texas School for the Deaf;

121-23               (9)  the Texas Rehabilitation Commission;

121-24               (10)  the institutional division of the Texas

 122-1   Department of Criminal Justice; and

 122-2               (11)  any other state agency involved in providing

 122-3   services to persons who are deaf or hard of hearing.

 122-4         SECTION 6.64.  Section 91.081(a), Human Resources Code, is

 122-5   amended to read as follows:

 122-6         (a)  The purpose of this subchapter is to establish a

 122-7   comprehensive central state depository for braille, large print,

 122-8   slow speed records and machines, tape recordings and tape players,

 122-9   and related forms of media that will enable the Texas State

122-10   Library, the Texas [Central] Education Agency, the Texas Commission

122-11   for the Blind, volunteer organizations involved in the production

122-12   of braille or recorded materials for the blind, the Library of

122-13   Congress, and related types of organizations to work together more

122-14   closely and effectively.

122-15         SECTION 6.65.  Section 114.003(b), Human Resources Code, is

122-16   amended to read as follows:

122-17         (b)  The council is composed of:

122-18               (1)  two public members who are family members of a

122-19   person with autism or some other pervasive developmental disorder,

122-20   appointed by the governor with the advice and consent of the

122-21   senate; and

122-22               (2)  one representative from each of the following

122-23   state agencies, appointed by the commissioner of the respective

122-24   agency:

 123-1                     (A)  Texas Department of Mental Health and Mental

 123-2   Retardation;

 123-3                     (B)  Texas Department of Health;

 123-4                     (C)  Texas Department of Human Services;

 123-5                     (D)  Texas [Central] Education Agency; and

 123-6                     (E)  Texas Rehabilitation Commission.

 123-7         SECTION 6.66.  Section 121.0015(b), Human Resources Code, is

 123-8   amended to read as follows:

 123-9         (b)  The work group is composed of a representative of the:

123-10               (1)  Texas [Central] Education Agency, appointed by the

123-11   commissioner of education;

123-12               (2)  Texas Commission for the Blind, appointed by the

123-13   commissioner of that agency;

123-14               (3)  Texas Department of Mental Health and Mental

123-15   Retardation, appointed by the commissioner of mental health and

123-16   mental retardation;

123-17               (4)  Texas Rehabilitation Commission, appointed by the

123-18   commissioner of that agency; and

123-19               (5)  Texas Commission for the Deaf and Hard of Hearing

123-20   [Impaired], appointed by the executive director of that agency.

123-21         SECTION 6.67.  Section 302.021(a), Labor Code, is amended to

123-22   read as follows:

123-23         (a)  The following job-training, employment, and

123-24   employment-related educational programs and functions are

 124-1   consolidated under the authority of the division:

 124-2               (1)  adult education programs under Subchapter H,

 124-3   Chapter 29 [Section 11.18], Education Code;

 124-4               (2)  proprietary school programs under Chapter 132

 124-5   [32], Education Code;

 124-6               (3)  apprenticeship programs under Chapter 133 [33],

 124-7   Education Code;

 124-8               (4)  postsecondary vocational and technical

 124-9   job-training programs that are not a part of approved courses or

124-10   programs that lead to licensing, certification, or an associate

124-11   degree under Chapters 61, [108,] 130, and 135, Education Code,

124-12   [and] Subchapter E, Chapter 88, Education Code, and Subchapter E,

124-13   Chapter 96, Education Code;

124-14               (5)  employment programs under Chapter 31, Human

124-15   Resources Code;

124-16               (6)  the senior citizens employment program under

124-17   Chapter 101, Human Resources Code;

124-18               (7)  the work and family policies program under Chapter

124-19   81;

124-20               (8)  job-training programs funded under the Job

124-21   Training Partnership Act  (29 U.S.C. Section 1501 et seq.);

124-22               (9)  the job counseling program for displaced

124-23   homemakers under Chapter 304;

124-24               (10)  the Communities in Schools program under Chapter

 125-1   305;

 125-2               (11)  the reintegration of offenders program under

 125-3   Chapter 306;

 125-4               (12)  the inmate employment counseling program under

 125-5   Section 499.051(f), Government Code;

 125-6               (13)  the continuity of care program under Section

 125-7   501.095, Government Code;

 125-8               (14)  a literacy program from funds available to the

 125-9   state under Section 481.026, Government Code;

125-10               (15)  the employment service;

125-11               (16)  the community service program under the National

125-12   and Community Service Act of 1990 (42 U.S.C. Section 12501 et

125-13   seq.);

125-14               (17)  the trade adjustment assistance program under

125-15   Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et

125-16   seq.);

125-17               (18)  the Job Opportunities and Basic Skills program

125-18   under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section

125-19   682);

125-20               (19)  the food stamp employment and training program

125-21   authorized under 7 U.S.C. Section 2015(d); and

125-22               (20)  the functions of the State Occupational

125-23   Information Coordinating Committee.

125-24         SECTION 6.68.  Section 302.062(g), Labor Code, is amended to

 126-1   read as follows:

 126-2         (g)  Block grant funding under this section does not apply

 126-3   to:

 126-4               (1)  the work and family policies program under Chapter

 126-5   81;

 126-6               (2)  a program under the skills development fund

 126-7   created under Chapter 303;

 126-8               (3)  the job counseling program for displaced

 126-9   homemakers under Chapter 304;

126-10               (4)  the Communities in Schools program under Chapter

126-11   305;

126-12               (5)  the reintegration of offenders program under

126-13   Chapter 306;

126-14               (6)  apprenticeship programs under Chapter 133 [33],

126-15   Education Code;

126-16               (7)  the inmate employment counseling program under

126-17   Section 499.051(f), Government Code;

126-18               (8)  the continuity of care program under Section

126-19   501.095, Government Code;

126-20               (9)  employment programs under Chapter 31, Human

126-21   Resources Code;

126-22               (10)  the senior citizens employment program under

126-23   Chapter 101, Human Resources Code;

126-24               (11)  the programs described by Section 302.021(b)(3);

 127-1               (12)  the community service program under the National

 127-2   and Community Service Act of 1990 (42 U.S.C. Section 12501 et

 127-3   seq.);

 127-4               (13)  the trade adjustment assistance program under

 127-5   Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et

 127-6   seq.);

 127-7               (14)  the programs to enhance the employment

 127-8   opportunities of veterans; and

 127-9               (15)  the functions of the State Occupational

127-10   Information Coordinating Committee.

127-11         SECTION 6.69.  Section 305.001(1), Labor Code, is amended to

127-12   read as follows:

127-13               (1)  "Agency" means the Texas [Central] Education

127-14   Agency.

127-15         SECTION 6.70.  Section 201.008(a), Local Government Code, is

127-16   amended to read as follows:

127-17         (a)  Records [Regardless of the provisions of Section 17.97,

127-18   Education Code, all records] of an office of county superintendent

127-19   of schools or county superintendent of education abolished under

127-20   former Section 17.95, Education Code, before September 1, 1989,

127-21   that are still in the possession of a custodian of county records

127-22   or a county officer shall be transferred to the custody of the

127-23   commission by order of the director and librarian.

127-24         SECTION 6.71.  Section 271.901(e), Local Government Code, is

 128-1   amended to read as follows:

 128-2         (e)  This section applies to all municipalities and districts

 128-3   required by general or special law or by municipal ordinance or

 128-4   charter to accept bids and award contracts on the basis of the

 128-5   lowest and best bid, but does not apply to bidding for contracts to

 128-6   act as a depository for public funds or as a depository for school

 128-7   funds under Subchapter G [E], Chapter 45 [23], Education Code.

 128-8         SECTION 6.72.  Sections 6.02(b) and (g), Tax Code, are

 128-9   amended to read as follows:

128-10         (b)  A taxing unit that has boundaries extending into two or

128-11   more counties may choose to participate in only one of the

128-12   appraisal districts.  In that event, the boundaries of the district

128-13   chosen extend outside the county to the extent of the unit's

128-14   boundaries.  To be effective, the choice must be approved by

128-15   resolution of the board of directors of the district chosen.  The

128-16   choice of a school district to participate in a single appraisal

128-17   district does not apply to property annexed to the school district

128-18   under Subchapter C or G, Chapter 41 [36], Education Code, unless:

128-19               (1)  the school district taxes property other than

128-20   property annexed to the district under Subchapter C or G, Chapter

128-21   41 [36], Education Code, in the same county as the annexed

128-22   property; or

128-23               (2)  the annexed property is contiguous to property in

128-24   the school district other than property annexed to the district

 129-1   under Subchapter C or G, Chapter 41 [36], Education Code.

 129-2         (g)  If property is annexed to a school district under

 129-3   Subchapter C or G, Chapter 41 [36], Education Code, the appraisal

 129-4   district established for the county in which the property is

 129-5   located shall appraise the property for the school district, and

 129-6   the school district participates in that appraisal district for

 129-7   purposes of the appraisal of that property, except as otherwise

 129-8   permitted by Subsection (b).

 129-9         SECTION 6.73.  Section 6.03(m), Tax Code, is amended to read

129-10   as follows:

129-11         (m)  If a school district participates in an appraisal

129-12   district in which the only property of the school district located

129-13   in the appraisal district is property annexed to the school

129-14   district under Subchapter C or G, Chapter 41 [36], Education Code,

129-15   an individual who does not meet the residency requirements of

129-16   Subsection (a) is eligible to be appointed to the board of

129-17   directors of the appraisal district if:

129-18               (1)  the individual is a resident of the school

129-19   district; and

129-20               (2)  the individual is nominated as a candidate for the

129-21   board of directors by the school district or, if the taxing units

129-22   have adopted a change in the method of appointing board members

129-23   that does not require a nomination, the school district appoints or

129-24   participates in the appointment of the individual.

 130-1         SECTION 6.74.  Section 21.01, Tax Code, is amended to read as

 130-2   follows:

 130-3         Sec. 21.01.  Real Property.  Real property is taxable by a

 130-4   taxing unit if located in the unit on January 1, except as provided

 130-5   by Chapter 41 [36], Education Code.

 130-6         SECTION 6.75.  Sections 21.02(b) and (c), Tax Code, are

 130-7   amended to read as follows:

 130-8         (b)  Tangible personal property having taxable situs at the

 130-9   same location as real property detached from a school district and

130-10   annexed by another school district under Chapter 41 [36], Education

130-11   Code, is taxable in the tax year in which the detachment and

130-12   annexation occurs by the same school district by which the real

130-13   property is taxable in that tax year under Chapter 41 [36],

130-14   Education Code.  For purposes of this subsection and Chapter 41

130-15   [36], Education Code, tangible personal property has taxable situs

130-16   at the same location as real property detached and annexed under

130-17   Chapter 41 [36], Education Code, if the detachment and annexation

130-18   of the real property, had it occurred before January 1 of the tax

130-19   year, would have changed the taxable situs of the tangible personal

130-20   property determined as provided by Subsection (a) from the school

130-21   district from which the real property was detached to the school

130-22   district to which the real property was annexed.

130-23         (c)  Tangible personal property has taxable situs in a school

130-24   district that is the result of a consolidation under Chapter 41

 131-1   [36], Education Code, in the year in which the consolidation occurs

 131-2   if the property would have had taxable situs in the consolidated

 131-3   district in that year had the consolidation occurred before January

 131-4   1 of that year.

 131-5         SECTION 6.76.  Section 25.25(k), Tax Code, is amended to read

 131-6   as follows:

 131-7         (k)  The chief appraiser shall change the appraisal records

 131-8   and school district appraisal rolls promptly to reflect the

 131-9   detachment and annexation of property among school districts under

131-10   Subchapter C or G, Chapter 41 [36], Education Code.

131-11         SECTION 6.77.  Sections 26.012(5) and (12), Tax Code, are

131-12   amended to read as follows:

131-13               (5)  "Current junior college levy" means the amount of

131-14   taxes the governing body proposes to dedicate in the current year

131-15   to a junior college district under Section 45.105(e) [20.48(e)],

131-16   Education Code.

131-17               (12)  "Last year's junior college levy" means the

131-18   amount of taxes dedicated by the governing body in the preceding

131-19   year for use of a junior college district under Section 45.105(e)

131-20   [20.48(e)], Education Code.

131-21         SECTION 6.78.  Sections 26.085(a) and (e), Tax Code, are

131-22   amended to read as follows:

131-23         (a)  If the percentage of the total tax levy of a school

131-24   district dedicated by the governing body of the school district to

 132-1   a junior college district under Section 45.105(e), [20.48(e),

 132-2   Texas] Education Code, exceeds the percentage of the total tax levy

 132-3   of the school district for the preceding year dedicated to the

 132-4   junior college district under that section, the qualified voters of

 132-5   the school district by petition may require that an election be

 132-6   held to determine whether to limit the percentage of the total tax

 132-7   levy dedicated to the junior college district to the same

 132-8   percentage as the percentage of the preceding year's total tax levy

 132-9   dedicated to the junior college district.

132-10         (e)  If a majority of the qualified voters voting on the

132-11   question in the election favor the proposition, the percentage of

132-12   the total tax levy of the school district for the year to which the

132-13   election applies dedicated to the junior college district is

132-14   reduced to the same percentage of the total tax levy that was

132-15   dedicated to the junior college district by the school district in

132-16   the preceding year.  If the proposition is approved by a majority

132-17   of the qualified voters voting in an election to limit the

132-18   dedication to the junior college district in a year following a

132-19   year in which there was no dedication of local tax funds to the

132-20   junior college district under Section 45.105(e), [20.48(e), Texas]

132-21   Education Code, the school district may not dedicate any local tax

132-22   funds to the junior college district in the year to which the

132-23   election applies.  If the proposition is not approved by a majority

132-24   of the qualified voters voting in the election, the percentage of

 133-1   the total tax levy dedicated to the junior college district is the

 133-2   percentage adopted by the governing body.

 133-3         SECTION 6.79.  Section 153.104, Tax Code, is amended to read

 133-4   as follows:

 133-5         Sec. 153.104.  Exceptions.  The tax imposed by this

 133-6   subchapter does not apply to gasoline:

 133-7               (1)  brought into this state in the fuel supply tank of

 133-8   a motor vehicle operated by a person not required to be permitted

 133-9   as an interstate trucker;

133-10               (2)  delivered by a permitted distributor to a common

133-11   or contract carrier, oceangoing vessel (including ship, tanker, or

133-12   boat), or a barge for export from this state if the gasoline is

133-13   moved forthwith outside the state;

133-14               (3)  sold by a permitted distributor to another

133-15   permitted distributor;

133-16               (4)  sold to the federal government for its exclusive

133-17   use;

133-18               (5)  delivered by a permitted distributor into a

133-19   storage facility of a permitted aviation fuel dealer from which

133-20   gasoline will be delivered solely into the fuel supply tanks of

133-21   aircraft or aircraft servicing equipment;

133-22               (6)  sold by one aviation fuel dealer to another

133-23   aviation fuel dealer who will deliver the aviation fuel exclusively

133-24   into the fuel supply tanks of aircraft or aircraft servicing

 134-1   equipment;

 134-2               (7)  sold to a public school district in this state for

 134-3   its exclusive use; or

 134-4               (8)  sold to a commercial transportation company that

 134-5   provides public school transportation services to a school district

 134-6   under Section 34.008 [21.181], Education Code, and used by the

 134-7   company exclusively to provide those services.

 134-8         SECTION 6.80.  Section 153.119(a), Tax Code, is amended to

 134-9   read as follows:

134-10         (a)  A person who exports, sells to the federal government,

134-11   to a public school district in this state, or to a commercial

134-12   transportation company for exclusive use in providing public school

134-13   transportation services to a school district under Section 34.008

134-14   [21.181], Education Code, without having added the amount of the

134-15   tax imposed by this chapter to his selling price, loses by fire or

134-16   other accident, or uses gasoline for the purpose of operating or

134-17   propelling a motorboat, tractor used for agricultural purposes, or

134-18   stationary engine, or for another purpose except in a vehicle

134-19   operated or intended to be operated on the public highways of this

134-20   state, and who has paid the tax imposed on gasoline by this chapter

134-21   either directly or indirectly is, when the person has complied with

134-22   the invoice and filing provisions of this section and the rules of

134-23   the comptroller, entitled to reimbursement of the tax paid by him,

134-24   less a filing fee and any amount allowed distributors, wholesalers

 135-1   or jobbers, dealers, or others under Section 153.105(c) of this

 135-2   code.  A public school district that has paid the tax imposed under

 135-3   this chapter on gasoline used by the district or a commercial

 135-4   transportation company that has paid the tax imposed under this

 135-5   chapter on gasoline used by the company exclusively to provide

 135-6   public school transportation services to a school district under

 135-7   Section 34.008 [21.181], Education Code, is entitled to

 135-8   reimbursement of the amount of the tax paid in the same manner and

 135-9   subject to the same procedures as other exempted users.

135-10         SECTION 6.81.  Section 153.203, Tax Code, is amended to read

135-11   as follows:

135-12         Sec. 153.203.  Exceptions.  The tax imposed by this

135-13   subchapter does not apply to:

135-14               (1)  diesel fuel delivered by a permitted supplier to a

135-15   common or contract carrier, oceangoing vessel (including ship,

135-16   tanker, or boat), or barge for export from this state, if the

135-17   diesel fuel is moved forthwith outside this state;

135-18               (2)  diesel fuel sold by a permitted supplier to the

135-19   federal government for its exclusive use;

135-20               (3)  diesel fuel sold or delivered by a permitted

135-21   supplier to another permitted supplier or bonded user, to the bulk

135-22   storage facility of a diesel tax prepaid user, or to a purchaser

135-23   who provides a signed statement as provided by Section 153.205 of

135-24   this code, but not including a delivery of tax-free diesel fuel

 136-1   into the fuel supply tanks of a motor vehicle, except for a motor

 136-2   vehicle owned by the federal government;

 136-3               (4)  diesel fuel sold or delivered by a permitted

 136-4   supplier into the storage facility of a permitted aviation fuel

 136-5   dealer, from which diesel fuel will be sold or delivered solely

 136-6   into the fuel supply tanks of aircraft or aircraft servicing

 136-7   equipment;

 136-8               (5)  diesel fuel sold or delivered by a permitted

 136-9   supplier into fuel supply tanks of railway engines, motorboats, or

136-10   refrigeration units or other stationary equipment powered by a

136-11   separate motor from a separate fuel supply tank;

136-12               (6)  kerosene when delivered by a permitted supplier

136-13   into a storage facility at a retail business from which all

136-14   deliveries are exclusively for heating, cooking, lighting, or

136-15   similar nonhighway use;

136-16               (7)  diesel fuel sold or delivered by one aviation fuel

136-17   dealer to another aviation fuel dealer who will deliver the diesel

136-18   fuel exclusively into the supply tanks of aircraft or aircraft

136-19   servicing equipment;

136-20               (8)  diesel fuel sold by a permitted supplier to a

136-21   public school district in this state for its exclusive use; or

136-22               (9)  diesel fuel sold by a permitted supplier to a

136-23   commercial transportation company that provides public school

136-24   transportation services to a school district under Section 34.008

 137-1   [21.181], Education Code, and used by the company exclusively to

 137-2   provide those services.

 137-3         SECTION 6.82.  Section 153.222(a), Tax Code, is amended to

 137-4   read as follows:

 137-5         (a)  A dealer or diesel fuel jobber who has paid tax on

 137-6   diesel fuel that has been used or sold for use by the dealer or

 137-7   diesel fuel jobber for any purpose other than propelling a motor

 137-8   vehicle on the public highways of this state or that has been sold

 137-9   to the United States or a public school district in this state for

137-10   the exclusive use of the purchaser, or to a commercial

137-11   transportation company for exclusive use in providing public school

137-12   transportation services to a school district under Section 34.008

137-13   [21.181], Education Code, without adding the amount of the tax to

137-14   his selling price, and a user who has paid tax on any diesel fuel

137-15   that has been used by him for a purpose other than propelling a

137-16   motor vehicle on the public highways, is a public school district

137-17   and has paid the tax on diesel fuel purchased for its exclusive

137-18   use, or is a commercial transportation company and has paid the tax

137-19   on diesel fuel used by the company exclusively to provide public

137-20   school transportation services to a school district under Section

137-21   34.008 [21.181], Education Code, may file a claim for a refund of

137-22   taxes paid, less the deduction allowed vendors and a filing fee.

137-23         SECTION 6.83.  Section 153.3021(b), Tax Code, is amended to

137-24   read as follows:

 138-1         (b)  The tax imposed by this subchapter does not apply to the

 138-2   sale of liquefied petroleum gas to a commercial transportation

 138-3   company that uses the gas exclusively to provide public school

 138-4   transportation services to a school district under Section 34.008

 138-5   [21.181], Education Code, or to the use of liquefied petroleum gas

 138-6   by such a company for that purpose.  A motor vehicle that uses

 138-7   liquefied petroleum gas and that is owned by a commercial

 138-8   transportation company and used exclusively to provide public

 138-9   school transportation services to a school district under Section

138-10   34.008 [21.181], Education Code, is not required to have a

138-11   liquefied gas tax decal or a special use liquefied gas tax decal.

138-12         SECTION 6.84.  Section 312.210(c), Tax Code, is amended to

138-13   read as follows:

138-14         (c)  In this section, "wealth per student" and "equalized

138-15   wealth level" have the meanings assigned those terms by Section

138-16   41.001 [36.001], Education Code.

138-17     ARTICLE 7.  CHANGES RELATING TO ADOPTION OF REVISED FAMILY CODE

138-18         SECTION 7.01.  Article 18.021(d), Code of Criminal Procedure,

138-19   is amended to conform to Chapter 20, Acts of the 74th Legislature,

138-20   Regular Session, 1995, to read as follows:

138-21         (d)  After having located and photographed the child, the

138-22   peace officer executing the warrant shall take possession of the

138-23   exposed film and deliver it forthwith to the magistrate.  The child

138-24   may not be removed from the premises on which he or she is located

 139-1   except under Subchapters A and B, Chapter 262 [Section 17.03],

 139-2   Family Code[, as amended].

 139-3         SECTION 7.02.  Article 26.058(g), Code of Criminal Procedure,

 139-4   is amended to conform to Chapter 20, Acts of the 74th Legislature,

 139-5   Regular Session, 1995, to read as follows:

 139-6         (g)  The public defender or an assistant public defender

 139-7   shall represent each indigent person in Aransas County who is:

 139-8               (1)  charged with a criminal offense in the county;

 139-9               (2)  a minor who is a party to a juvenile delinquency

139-10   proceeding in the county; or

139-11               (3)  entitled to representation under:

139-12                     (A)  Chapter 574, Health and Safety Code [3,

139-13   Texas Mental Health Code (Article 5547-1 et seq., Vernon's Texas

139-14   Civil Statutes)];

139-15                     (B)  Chapter 462, Health and Safety Code; or

139-16                     (C)  Subchapter B, Chapter 107, [Section 11.10]

139-17   or Section 262.105 [17.03], Family Code.

139-18         SECTION 7.03.  Article 42.033(c), Code of Criminal Procedure,

139-19   is amended to conform to Chapter 20, Acts of the 74th Legislature,

139-20   Regular Session, 1995, to read as follows:

139-21         (c)  The condition imposed under Subsection (b) of this

139-22   article is not binding on an employer, except that income withheld

139-23   for child support is governed by Chapter 158 [14], Family Code.

139-24         SECTION 7.04.  Article 58.01, Code of Criminal Procedure, is

 140-1   amended to conform to Chapter 262, Acts of the 74th Legislature,

 140-2   Regular Session, 1995, to read as follows:

 140-3         Art. 58.01.  Sealing files and records of children.  A court

 140-4   in which a person under the age of 17 is prosecuted for an offense

 140-5   described by [included under Subdivision (4) or (5) of Subsection

 140-6   (a) or Subdivision (4) or (5) of Subsection (b) of] Section

 140-7   8.07(a)(4) or (5), Penal Code, shall seal the person's files and

 140-8   records in the same manner and under the same conditions that

 140-9   Section 58.003 [51.16], Family Code, requires a juvenile court to

140-10   seal the files and records of a person adjudicated or taken into

140-11   custody under Title 3, Family Code.

140-12         SECTION 7.05.  Article 61.04(a), Code of Criminal Procedure,

140-13   is amended to conform to Chapter 262, Acts of the 74th Legislature,

140-14   Regular Session, 1995, to read as follows:

140-15         (a)  Notwithstanding Section 58.007 or 58.106 [51.14], Family

140-16   Code, criminal information relating to a child associated with a

140-17   combination may be compiled and released under this chapter

140-18   regardless of the age of the child.

140-19         SECTION 7.06.  Section 64.002(c), Civil Practice and Remedies

140-20   Code, is amended to conform to Chapter 20, Acts of the 74th

140-21   Legislature, Regular Session, 1995, to read as follows:

140-22         (c)  This section does not prohibit:

140-23               (1)  appointment of a receiver for a partnership in an

140-24   action arising between partners; or

 141-1               (2)  appointment of a receiver over all or part of the

 141-2   marital estate in a suit filed under Title 1 or 5 [2], Family Code.

 141-3         SECTION 7.07.  Section 81.009(c), Civil Practice and Remedies

 141-4   Code, is amended to conform to Chapter 20, Acts of the 74th

 141-5   Legislature, Regular Session, 1995, to read as follows:

 141-6         (c)  This section does not apply to a patient or former

 141-7   patient who is a "child" or a "minor" as defined by Section 101.003

 141-8   [11.01], Family Code, until that patient or former patient has

 141-9   reached the age of 18.  If the action is brought by a parent,

141-10   guardian, or other person having custody of the child or minor, it

141-11   must be brought within the period set forth in this section.

141-12         SECTION 7.08.  Section 3.64(b), Family Code, is amended to

141-13   conform to Chapter 20, Acts of the 74th Legislature, Regular

141-14   Session, 1995, to read as follows:

141-15         (b)  A person whose name is changed under this section may

141-16   apply for a change of name certificate from the clerk of the court

141-17   as provided by Section 45.106 [32.241].

141-18         SECTION 7.09.  (a)  Sections 32.101(b) and (e), Family Code,

141-19   are amended to conform to Section 1, Chapter 123, Acts of the 74th

141-20   Legislature, Regular Session, 1995, to read as follows:

141-21         (b)  If the persons listed in Subsection (a) are not

141-22   available [cannot be contacted] and the authority to consent is not

141-23   denied under Subsection (c), consent to the immunization of a child

141-24   may be given by:

 142-1               (1)  a grandparent of the child;

 142-2               (2)  an adult brother or sister of the child;

 142-3               (3)  an adult aunt or uncle of the child;

 142-4               (4)  a stepparent of the child;

 142-5               (5)  an educational institution in which the child is

 142-6   enrolled that has written authorization to consent for the child

 142-7   from a parent, managing conservator, guardian, or other person who

 142-8   under the law of another state or a court order may consent for the

 142-9   child;

142-10               (6)  another adult who has actual care, control, and

142-11   possession of the child and has written authorization to consent

142-12   for the child from a parent, managing conservator, guardian, or

142-13   other person who, under the law of another state or a court order,

142-14   may consent for the child;

142-15               (7)  a court having jurisdiction of a suit affecting

142-16   the parent-child relationship of which the minor is the subject;

142-17               (8)  an adult having actual care, control, and

142-18   possession of the child under an order of a juvenile court or by

142-19   commitment by a juvenile court to the care of an agency of the

142-20   state or county; or

142-21               (9)  an adult having actual care, control, and

142-22   possession of the child as the child's primary caregiver[, if the

142-23   adult is granted the right to consent to the child's immunization

142-24   by court order].

 143-1         (e)  A person who consents under this section shall provide

 143-2   the health care provider with sufficient and accurate health

 143-3   history and other information about the minor for whom the consent

 143-4   is given and, if necessary, sufficient and accurate health history

 143-5   and information about the minor's family to enable the person who

 143-6   may consent to the minor's immunization and the health care

 143-7   provider to determine adequately the risks and benefits inherent in

 143-8   the proposed immunization and to determine whether immunization is

 143-9   advisable.  [For the purposes of this section, a person cannot be

143-10   contacted if:]

143-11               [(1)  the location of the person is unknown;]

143-12               [(2)  a reasonable effort to locate and communicate

143-13   with the person authorized to consent made by a person listed in

143-14   Subsection (b) has failed and not more than 90 days have passed

143-15   since the date that the effort was made; or]

143-16               [(3)  the person who may consent has been contacted and

143-17   the person:]

143-18                     [(A)  refuses to consent; and]

143-19                     [(B)  does not expressly deny authority to the

143-20   person listed in Subsection (b) to consent for the child.]

143-21         (b)  Section 32.103(a), Family Code, is amended to conform to

143-22   Section 2, Chapter 123, Acts of the 74th Legislature, Regular

143-23   Session, 1995, to read as follows:

143-24         (a)  A person authorized to consent to the immunization of a

 144-1   child has the responsibility to ensure that the consent, if given,

 144-2   is an informed consent.  The person authorized to consent is not

 144-3   required to be present when the immunization of the child is

 144-4   requested if a consent form that meets the requirements of Section

 144-5   32.002 has been given to the health care provider.

 144-6         (c)  Sections 32.102 and 32.105, Family Code, are repealed to

 144-7   conform to Section 5, Chapter 123, Acts of the 74th Legislature,

 144-8   Regular Session, 1995.

 144-9         (d)  Section 32.103, Family Code, is renumbered as Section

144-10   32.102, Family Code.

144-11         (e)  Section 32.104, Family Code, is renumbered as Section

144-12   32.103, Family Code.

144-13         (f)  Chapter 123, Acts of the 74th Legislature, Regular

144-14   Session, 1995, is repealed.

144-15         SECTION 7.10.  (a)  Subchapter B, Chapter 45, Family Code, is

144-16   amended to conform to Sections 2 and 3, Chapter 631, Acts of the

144-17   74th Legislature, Regular Session, 1995, by adding Sections 45.105

144-18   and 45.106 to read as follows:

144-19         Sec. 45.105.  CHANGE OF NAME IN DIVORCE SUIT.  (a)  On the

144-20   final disposition of a suit for divorce, for annulment, or to

144-21   declare a marriage void, the court shall enter a decree changing

144-22   the name of a party specially praying for the change to a prior

144-23   used name unless the court states in the decree a reason for

144-24   denying the change of name.  The court may not deny a change of

 145-1   name solely to keep last names of family members the same.

 145-2         (b)  A person whose name is changed under this section may

 145-3   apply for a change of name certificate from the clerk of the court

 145-4   as provided by Section 45.106.

 145-5         Sec. 45.106.  CHANGE OF NAME CERTIFICATE.  (a)  A person

 145-6   whose name is changed under Section 3.64 or 45.105 may apply to the

 145-7   clerk of the court ordering the name change for a change of name

 145-8   certificate.

 145-9         (b)  A certificate under this section is a one-page document

145-10   that includes:

145-11               (1)  the name of the person before the change of name

145-12   was ordered;

145-13               (2)  the name to which the person's name was changed by

145-14   the court;

145-15               (3)  the date on which the name change was made;

145-16               (4)  the person's social security number and driver's

145-17   license number, if any;

145-18               (5)  the name of the court in which the name change was

145-19   ordered; and

145-20               (6)  the signature of the clerk of the court that

145-21   issued the certificate.

145-22         (c)  An applicant for a certificate under this section shall

145-23   pay a $10 fee to the clerk of the court for issuance of the

145-24   certificate.

 146-1         (d)  A certificate under this section constitutes proof of

 146-2   the change of name of the person named in the certificate.

 146-3         (b)  Section 32.24, Family Code, as amended by Section 2,

 146-4   Chapter 631, Acts of the 74th Legislature, Regular Session, 1995,

 146-5   is repealed.

 146-6         (c)  Section 32.241, Family Code, as added by Section 3,

 146-7   Chapter 631, Acts of the 74th Legislature, Regular Session, 1995,

 146-8   is repealed.

 146-9         SECTION 7.11.  Section 54.06(b), Family Code, is amended to

146-10   conform to Chapter 20, Acts of the 74th Legislature, Regular

146-11   Session, 1995, to read as follows:

146-12         (b)  At any stage of the proceeding, when a child has been

146-13   placed outside the child's home and the parent of the child is

146-14   obligated to pay support for the child under a court order under

146-15   Title 5 [2 of this code], the juvenile court shall order that the

146-16   person entitled to receive the support assign the person's right to

146-17   support for the child placed outside the child's home to the local

146-18   juvenile probation department to be used for residential care and

146-19   other support for the child unless the child has been committed to

146-20   the Texas Youth Commission, in which event the court shall order

146-21   that the assignment be made to the Texas Youth Commission.

146-22         SECTION 7.12.  Section 71.01(a), Family Code, is amended to

146-23   conform to Chapter 20, Acts of the 74th Legislature, Regular

146-24   Session, 1995, to read as follows:

 147-1         (a)  Except as provided by Subsection (b) of this section,

 147-2   the definitions in Chapter 101 [Section 11.01 of this code] apply

 147-3   to terms used in this chapter.

 147-4         SECTION 7.13.  Section 71.01(b)(2), Family Code, is amended

 147-5   to conform to Chapter 20, Acts of the 74th Legislature, Regular

 147-6   Session, 1995, to read as follows:

 147-7               (2)  "Family violence" means:

 147-8                     (A)  an act by a member of a family or household

 147-9   against another member of the family or household that is intended

147-10   to result in physical harm, bodily injury, or assault, or that is a

147-11   threat that reasonably places the member in fear of imminent

147-12   physical harm, bodily injury, or assault, excluding the reasonable

147-13   discipline of a child by a person having that duty; or

147-14                     (B)  abuse, as that term is defined by Sections

147-15   261.001(1)(C), (E), and (G) [34.012(1)(C), (E), and (G) of this

147-16   code], by a member of a family or household toward a child of the

147-17   family or household.

147-18         SECTION 7.14.  Section 71.05(c), Family Code, is amended to

147-19   conform to Chapter 20, Acts of the 74th Legislature, Regular

147-20   Session, 1995, to read as follows:

147-21         (c)  If an application requests a protective order for a

147-22   child who is subject to the continuing jurisdiction of a court

147-23   under Title 5 [Subtitle A, Title 2, of this code] or alleges that a

147-24   child who is subject to the continuing jurisdiction of a court

 148-1   under Title 5 [Subtitle A, Title 2, of this code] has committed

 148-2   family violence:

 148-3               (1)  a copy of the court orders affecting the

 148-4   conservatorship, possession, and support of or the access to the

 148-5   child must be filed with the application; or

 148-6               (2)  the application must state that the orders

 148-7   affecting the child are unavailable to the applicant and that a

 148-8   copy of the orders will be filed with the court before the hearing

 148-9   on the application.

148-10         SECTION 7.15.  Section 71.11(a), Family Code, is amended to

148-11   conform to Chapter 20, Acts of the 74th Legislature, Regular

148-12   Session, 1995, to read as follows:

148-13         (a)  In a protective order the court may:

148-14               (1)  prohibit a party from:

148-15                     (A)  removing a child member of the family or

148-16   household from the possession of a person named in the court order

148-17   or from the jurisdiction of the court; or

148-18                     (B)  transferring, encumbering, or otherwise

148-19   disposing of property mutually owned or leased by the parties,

148-20   except when in the ordinary course of business;

148-21               (2)  grant exclusive possession of a residence to a

148-22   party and, if appropriate, direct one or more other parties to

148-23   vacate the residence if:

148-24                     (A)  the residence is jointly owned or leased by

 149-1   the party receiving exclusive possession and by some other party

 149-2   denied possession;

 149-3                     (B)  the residence is owned or leased by the

 149-4   party retaining possession; or

 149-5                     (C)  the residence is owned or leased by the

 149-6   party denied possession but only if that party has an obligation to

 149-7   support the party granted possession of the residence or a child of

 149-8   the party granted possession;

 149-9               (3)  provide for possession of and access to a child of

149-10   a party if the person receiving possession of or access to the

149-11   child is a parent, as that term is defined by Section 101.024

149-12   [11.01 of this code], of the child;

149-13               (4)  require the payment of support for a party or for

149-14   a child of a party if the person required to make the payment has

149-15   an obligation to support the other party or the child;

149-16               (5)  require the person found to have committed family

149-17   violence to complete a batterer's treatment program if a program is

149-18   available or if a program is not available to counsel with a social

149-19   worker, family service agency, physician, psychologist, licensed

149-20   therapist, or licensed professional counselor;

149-21               (6)  award to a party use and possession of specified

149-22   property that is community property or jointly owned or leased; or

149-23               (7)  prohibit the person found to have committed family

149-24   violence from doing specified acts or require the person found to

 150-1   have committed family violence to do specified acts necessary or

 150-2   appropriate to prevent or reduce the likelihood of family violence.

 150-3         SECTION 7.16.  Section 71.15(f), Family Code, is amended to

 150-4   conform to Chapter 20, Acts of the 74th Legislature, Regular

 150-5   Session, 1995, to read as follows:

 150-6         (f)  During the period of its validity, a temporary ex parte

 150-7   order prevails over any other court order made under Title 5

 150-8   [Subtitle A, Title 2, of this code], except that on a motion to

 150-9   vacate the temporary ex parte order, the court shall vacate those

150-10   portions of the temporary order shown to be in conflict with any

150-11   other court order made under Title 5 [Subtitle A, Title 2, of this

150-12   code].

150-13         SECTION 7.17.  (a)  Subchapter D, Chapter 162, Family Code,

150-14   is amended to conform to Section 8, Chapter 920, Acts of the 74th

150-15   Legislature, Regular Session, 1995, by adding Section 162.309 to

150-16   read as follows:

150-17         Sec. 162.309.  Advisory Committee on Promoting Adoption of

150-18   Minority Children.  (a)  An advisory committee on promoting the

150-19   adoption of and provision of services to minority children is

150-20   established within the department.

150-21         (b)  The committee is composed of 12 members appointed by the

150-22   board of the Department of Protective and Regulatory Services.  The

150-23   board shall appoint to the committee individuals who in the

150-24   aggregate have knowledge of and experience in community education,

 151-1   cultural relations, family support, counseling, and parenting

 151-2   skills and education.  At least six members must be ordained

 151-3   members of the clergy.

 151-4         (c)  A committee member serves for a two-year term and may be

 151-5   appointed for additional terms.

 151-6         (d)  A member of the committee receives no compensation but

 151-7   is entitled to reimbursement for actual and necessary expenses

 151-8   incurred in performing the member's duties under this section.

 151-9         (e)  The committee shall elect one member to serve as

151-10   presiding officer.  The presiding officer serves for a two-year

151-11   term and may be elected for additional terms.

151-12         (f)  The department shall set the time and place of the first

151-13   committee meeting.  The committee shall meet at least quarterly.

151-14         (g)  The department shall pay the expenses of the committee

151-15   and shall supply necessary personnel and supplies.

151-16         (h)  To promote the adoption of and provision of services to

151-17   minority children, the committee shall:

151-18               (1)  study, develop, and evaluate programs and projects

151-19   relating to community awareness and education, family support,

151-20   counseling, parenting skills and education, and reform of the child

151-21   welfare system;

151-22               (2)  consult with churches and other cultural and civic

151-23   organizations; and

151-24               (3)  report to the department at least annually the

 152-1   committee's recommendations for department programs and projects

 152-2   that will promote the adoption of and provision of services to

 152-3   minority children.

 152-4         (i)  On receiving the committee's recommendations, the

 152-5   department may adopt rules to implement a program or project

 152-6   recommended under this section.  The department may solicit,

 152-7   accept, and use gifts and donations to implement a program or

 152-8   project recommended by the committee.

 152-9         (j)  The department shall report to the legislature not later

152-10   than November 1 of each even-numbered year following the first year

152-11   in which it receives recommendations under this section regarding

152-12   committee recommendations and action taken by the department under

152-13   this section.

152-14         (k)  The recruitment of minority families may not be a reason

152-15   to delay placement of a child with an available family of a race or

152-16   ethnicity different from that of the child.

152-17         (b)  Section 47.006, Human Resources Code, as added by

152-18   Section 8, Chapter 920, Acts of the 74th Legislature, Regular

152-19   Session, 1995, is repealed to conform to the transfer of Chapter

152-20   47, Human Resources Code, to the Family Code by Chapter 20, Acts of

152-21   the 74th Legislature, Regular Session, 1995.

152-22         SECTION 7.18.  Section 203.007, Family Code, as amended by

152-23   Chapters 475 and 803, Acts of the 74th Legislature, Regular

152-24   Session, 1995, is amended to read as follows:

 153-1         Sec. 203.007.  ACCESS TO RECORDS; OFFENSE.  (a)  A domestic

 153-2   relations office may obtain the records described by Subsections

 153-3   (b) and (c) that relate to a person who has:

 153-4               (1)  been ordered to pay child support;

 153-5               (2)  been designated as a possessory conservator or

 153-6   managing conservator of a child;

 153-7               (3)  been designated to be the father of a child; or

 153-8               (4)  executed a statement of paternity.

 153-9         (b)  A domestic relations office is entitled to obtain from

153-10   the Department of Public Safety records that relate to:

153-11               (1)  a person's date of birth;

153-12               (2)  a person's most recent address;

153-13               (3)  a person's current driver's license status;

153-14               (4)  motor vehicle accidents involving a person; and

153-15               (5)  reported traffic-law violations of which a person

153-16   has been convicted.

153-17         (c)  A domestic relations office is entitled to obtain from

153-18   the Texas Employment Commission records that relate to:

153-19               (1)  a person's address;

153-20               (2)  a person's employment status and earnings;

153-21               (3)  the name and address of a person's current or

153-22   former employer; and

153-23               (4)  unemployment compensation benefits received by a

153-24   person.

 154-1         (d)  An agency required to provide records under this section

 154-2   may charge a domestic relations office a fee for providing the

 154-3   records in an amount that does not exceed the amount paid for those

 154-4   records by the agency responsible for Title IV-D cases.

 154-5         (e) [(d)]  The Department of Public Safety, the Texas

 154-6   Employment Commission, or the office of the secretary of state may

 154-7   charge a domestic relations office a fee not to exceed the charge

 154-8   paid by the Title IV-D agency for furnishing records under this

 154-9   section.

154-10         (f) [(e)]  Information obtained by a domestic relations

154-11   office under this section that is confidential under a

154-12   constitution, statute, judicial decision, or rule is privileged and

154-13   may be used only by that office.

154-14         (g) [(f)]  A person commits an offense if the person releases

154-15   or discloses confidential information obtained under this section

154-16   without the consent of the person to whom the information relates.

154-17   An offense under this subsection is a Class C misdemeanor.

154-18         (h) [(g)]  A domestic relations office is entitled to obtain

154-19   from the office of the secretary of state the following information

154-20   about a registered voter to the extent that the information is

154-21   available:

154-22               (1)  complete name;

154-23               (2)  current and former street and mailing address;

154-24               (3)  sex;

 155-1               (4)  date of birth;

 155-2               (5)  social security number; and

 155-3               (6)  telephone number.

 155-4         SECTION 7.19.  Section 231.007(f), Family Code, is amended to

 155-5   conform to Section 9.65, Chapter 76, Acts of the 74th Legislature,

 155-6   Regular Session, 1995, to read as follows:

 155-7         (f)  In this section, the payment of workers' compensation

 155-8   benefits to a person in debt to the state is the same as any other

 155-9   payment made to the person by the state.  Notwithstanding Section

155-10   408.203 [Title 5], Labor Code, an order or writ to withhold income

155-11   from workers' compensation benefits is not required under this

155-12   section.

155-13         SECTION 7.20.  (a)  Subchapter B, Chapter 231, Family Code,

155-14   is amended to conform to Section 5.02, Chapter 655, Acts of the

155-15   74th Legislature, Regular Session, 1995, by adding Section 231.115

155-16   to read as follows:

155-17         Sec. 231.115.  UNEMPLOYED NONCUSTODIAL PARENTS.  (a)  The

155-18   Title IV-D agency shall refer to appropriate state and local

155-19   entities that assist unemployed noncustodial parents in gaining

155-20   employment any unemployed noncustodial parent who is in arrears in

155-21   court-ordered child support payments to a child who:

155-22               (1)  receives financial assistance under Chapter 31,

155-23   Human Resources Code; or

155-24               (2)  is otherwise eligible to receive financial

 156-1   assistance under Chapter 31, Human Resources Code, and for whom the

 156-2   Department of Protective and Regulatory Services is providing

 156-3   substitute care.

 156-4         (b)  A referral under Subsection (a) may include:

 156-5               (1)  skills training and job placement through:

 156-6                     (A)  the Texas Workforce Commission; or

 156-7                     (B)  the agency responsible for the food stamp

 156-8   employment and training program (7 U.S.C. Section 2015(d));

 156-9               (2)  referrals to education and literacy classes; and

156-10               (3)  counseling regarding:

156-11                     (A)  substance abuse;

156-12                     (B)  parenting skills;

156-13                     (C)  life skills; and

156-14                     (D)  mediation techniques.

156-15         (c)  The Title IV-D agency may require an unemployed

156-16   noncustodial parent to complete the training, classes, or

156-17   counseling the parent is referred to under this section.  The

156-18   agency shall suspend under Chapter 232  the license of a parent who

156-19   fails to comply with the requirements of this subsection.

156-20         (b)  Section 76.012, Human Resources Code, as added by

156-21   Section 5.02, Chapter 655, Acts of the 74th Legislature, Regular

156-22   Session, 1995, is repealed to conform to the transfer of Chapter

156-23   76, Human Resources Code, to the Family Code by Chapter 20, Acts of

156-24   the 74th Legislature, Regular Session, 1995.

 157-1         SECTION 7.21.  (a)  Section 231.202, Family Code, is amended

 157-2   to conform to Section 2.02, Chapter 641, Acts of the 74th

 157-3   Legislature, Regular Session, 1995, to read as follows:

 157-4         Sec. 231.202.  AUTHORIZED COSTS AND FEES IN TITLE IV-D CASES.

 157-5   In a Title IV-D case filed under this title, the Title IV-D agency

 157-6   shall pay:

 157-7               (1)  filing fees and fees for issuance and service of

 157-8   process as provided by Chapter 110 of this code and by Sections

 157-9   51.317, 51.318(b)(2), and 51.319(2) [51.319(4)], Government Code;

157-10               (2)  fees for transfer as provided by Chapter 110;

157-11               (3)  fees for the issuance and delivery of orders and

157-12   writs of income withholding in the amounts provided by Chapter 110;

157-13   and

157-14               (4)  a fee of $45 for each item of process to each

157-15   individual on whom service is required, including service by

157-16   certified or registered mail, to be paid to a sheriff, constable,

157-17   or clerk whenever service of process is required.

157-18         (b)  Section 76.009, Human Resources Code, as amended by

157-19   Section 2.02, Chapter 641, Acts of the 74th Legislature, Regular

157-20   Session, 1995, is repealed to conform to the transfer of that

157-21   section to the Family Code by Chapter 20, Acts of the 74th

157-22   Legislature, Regular Session, 1995.

157-23         SECTION 7.22.  Section 232.002, Family Code, is amended to

157-24   conform to Chapter 2, Acts of the 74th Legislature, Regular

 158-1   Session, 1995, to read as follows:

 158-2         Sec. 232.002.  Licensing Authorities Subject to Chapter.  The

 158-3   following state agencies are licensing authorities subject to this

 158-4   chapter [subchapter]:

 158-5               (1)  Department of Agriculture;

 158-6               (2)  Texas Commission on Alcohol and Drug Abuse;

 158-7               (3)  Texas Alcoholic Beverage Commission;

 158-8               (4)  Texas Appraiser Licensing and Certification Board;

 158-9               (5)  Texas Board of Architectural Examiners;

158-10               (6)  State Board of Barber Examiners;

158-11               (7)  Texas Board of Chiropractic Examiners;

158-12               (8)  Comptroller of Public Accounts;

158-13               (9)  Texas Cosmetology Commission;

158-14               (10)  Court Reporters Certification Board;

158-15               (11)  State Board of Dental Examiners[, if the 74th

158-16   Legislature, at its regular session, enacts legislation that

158-17   becomes law authorizing a state agency to regulate the practice of

158-18   dentistry];

158-19               (12)  Texas State Board of Examiners of Dietitians;

158-20               (13)  Texas Funeral Service Commission;

158-21               (14)  Texas Department of Health;

158-22               (15)  Texas Board of Professional Land Surveying;

158-23               (16)  Texas Department of Licensing and Regulation;

158-24               (17)  Texas State Board of Examiners of Marriage and

 159-1   Family Therapists;

 159-2               (18)  Texas State Board of Medical Examiners;

 159-3               (19)  Midwifery Board;

 159-4               (20)  Texas Natural Resource Conservation Commission;

 159-5               (21)  Board of Nurse Examiners;

 159-6               (22)  Texas Board of Nursing Facility Administrators;

 159-7               (23)  Texas Board of Occupational Therapy Examiners;

 159-8               (24)  Texas Optometry Board;

 159-9               (25)  Parks and Wildlife Department;

159-10               (26)  Texas State Board of Examiners of Perfusionists;

159-11               (27)  Texas State Board of Pharmacy;

159-12               (28)  Texas Board of Physical Therapy Examiners;

159-13               (29)  Texas State Board of Plumbing Examiners;

159-14               (30)  Texas State Board of Podiatric Medical [Podiatry]

159-15   Examiners;

159-16               (31)  Polygraph Examiners Board;

159-17               (32)  Texas Board of Private Investigators and Private

159-18   Security Agencies;

159-19               (33)  Texas State Board of Examiners of Professional

159-20   Counselors;

159-21               (34)  State Board of Registration for Professional

159-22   Engineers;

159-23               (35)  Department of Protective and Regulatory Services;

159-24               (36)  Texas State Board of Examiners of Psychologists;

 160-1               (37)  Texas State Board of Public Accountancy;

 160-2               (38)  Department of Public Safety of the State of

 160-3   Texas;

 160-4               (39)  Public Utility Commission of Texas;

 160-5               (40)  Railroad Commission of Texas;

 160-6               (41)  Texas Real Estate Commission;

 160-7               (42)  State Bar of Texas;

 160-8               (43)  Texas State Board of Social Worker Examiners;

 160-9               (44)  State Board of Examiners for Speech-Language

160-10   Pathology and Audiology;

160-11               (45)  Texas Structural Pest Control Board;

160-12               (46)  Board of Tax Professional Examiners;

160-13               (47)  Secretary of State;

160-14               (48)  Supreme Court of Texas;

160-15               (49)  Texas Transportation Commission;

160-16               (50)  State Board of Veterinary Medical Examiners;

160-17               (51)  Board of Vocational Nurse Examiners;

160-18               (52)  Texas Ethics Commission;

160-19               (53)  Advisory Board of Athletic Trainers;

160-20               (54)  State Committee of Examiners in the Fitting and

160-21   Dispensing of Hearing Instruments;

160-22               (55)  Texas Board of Licensure for Professional Medical

160-23   Physicists; and

160-24               (56)  Texas Department of Insurance.

 161-1         SECTION 7.23.  Section 232.015, Family Code, as added by

 161-2   Chapter 655, Acts of the 74th Legislature, Regular Session, 1995,

 161-3   is repealed as duplicative of Section 232.015, Family Code, as

 161-4   added by Chapter 751, Acts of the 74th Legislature, Regular

 161-5   Session, 1995.

 161-6         SECTION 7.24.  Section 21.002(f), Government Code, is amended

 161-7   to conform to Chapter 20, Acts of the 74th Legislature, Regular

 161-8   Session, 1995, to read as follows:

 161-9         (f)  Article 42.033, Code of Criminal Procedure, and Chapter

161-10   157 [14], Family Code, apply when a person is punished by

161-11   confinement for contempt of court for disobedience of a court order

161-12   to make periodic payments for the support of a child.

161-13         SECTION 7.25.  Section 24.403(b), Government Code, is amended

161-14   to conform to Chapter 20, Acts of the 74th Legislature, Regular

161-15   Session, 1995, to read as follows:

161-16         (b)  The 225th District Court shall give preference to civil

161-17   cases and to cases and proceedings under Title 2 or 5, Family Code.

161-18         SECTION 7.26.  Section 24.466(b), Government Code, is amended

161-19   to conform to Chapter 20, Acts of the 74th Legislature, Regular

161-20   Session, 1995, to read as follows:

161-21         (b)  The 289th District Court shall give primary preference

161-22   to cases and proceedings under Title [Titles] 2, [and] 3, or 5,

161-23   Family Code, and secondary preference to criminal cases.

161-24         SECTION 7.27.  Section 25.1722(a), Government Code, is

 162-1   amended to conform to Chapter 20, Acts of the 74th Legislature,

 162-2   Regular Session, 1995, to read as follows:

 162-3         (a)  In addition to the jurisdiction provided by Section

 162-4   25.0003 and other law, a county court at law in Montgomery County

 162-5   has concurrent jurisdiction with the district court in:

 162-6               (1)  family law cases and proceedings;

 162-7               (2)  cases under Chapter 159 [the Uniform Reciprocal

 162-8   Enforcement of Support Act (Section 21.01 et seq.], Family Code[)];

 162-9               (3)  cases and proceedings involving justiciable

162-10   controversies and differences between spouses, or between parents,

162-11   or between parent and child, or between any of these and third

162-12   persons, corporations, trustees, or other legal entities; and

162-13               (4)  matters involving an inter vivos trust.

162-14         SECTION 7.28.  Section 25.2452(d), Government Code, is

162-15   amended to conform to Chapter 20, Acts of the 74th Legislature,

162-16   Regular Session, 1995, to read as follows:

162-17         (d)  A county court at law has concurrent jurisdiction with

162-18   the district court in:

162-19               (1)  family law cases and proceedings;

162-20               (2)  suits brought under the authority of Chapter 60 or

162-21   159 [the Revised Uniform Reciprocal Enforcement of Support Act

162-22   (Section 21.01 et seq., Family Code) or the Uniform Interstate

162-23   Compact on Juveniles (Section 25.01 et seq.], Family Code[)]; and

162-24               (3)  other juvenile and child welfare cases in which

 163-1   the district and county courts have jurisdiction.

 163-2         SECTION 7.29.  Section 43.1745(c), Government Code, is

 163-3   amended to conform to Chapter 20, Acts of the 74th Legislature,

 163-4   Regular Session, 1995, to read as follows:

 163-5         (c)  The district attorney has no power, duty, or privilege

 163-6   relating to family law and juvenile matters, including matters

 163-7   involving children's protective services, protective orders under

 163-8   Chapter 71, Family Code, orders under Chapter 159 [21], Family

 163-9   Code, proceedings under Title 3, Family Code, civil commitment

163-10   matters under Subtitle C, Title 7, Health and Safety Code, or a quo

163-11   warranto or removal case, except, that if the county attorney fails

163-12   or refuses to act in a quo warranto or removal case, the district

163-13   attorney has the power, duty, and privilege to bring a removal of

163-14   quo warranto action.

163-15         SECTION 7.30.  Section 43.181(c), Government Code, is amended

163-16   to conform to Chapter 20, Acts of the 74th Legislature, Regular

163-17   Session, 1995, to read as follows:

163-18         (c)  The district attorney has the powers, duties, and

163-19   privileges in Fort Bend County relating to family law and juvenile

163-20   matters, including children's protective services, protective

163-21   orders under Chapter 71, Family Code, orders under [the Revised

163-22   Uniform Reciprocal Enforcement of Support Act (]Chapter 159 [21],

163-23   Family Code[)], and proceedings under Title 3, Family Code.

163-24         SECTION 7.31.  Section 45.179(d), Government Code, is amended

 164-1   to conform to Chapter 20, Acts of the 74th Legislature, Regular

 164-2   Session, 1995, to read as follows:

 164-3         (d)  The county attorney has no power, duty, or privilege in

 164-4   Fort Bend County relating to family law and juvenile matters,

 164-5   including children's protective services, protective orders under

 164-6   Chapter 71, Family Code, orders under [the Revised Uniform

 164-7   Reciprocal Enforcement of Support Act (]Chapter 159 [21], Family

 164-8   Code[)], and proceedings under Title 3, Family Code.

 164-9         SECTION 7.32.  Section 45.193(b), Government Code, is amended

164-10   to conform to Chapter 20, Acts of the 74th Legislature, Regular

164-11   Session, 1995, to read as follows:

164-12         (b)  The county attorney has the powers, duties, and

164-13   privileges in Grimes County relating to civil commitment matters

164-14   under Subtitle C, Title 7, Health and Safety Code, family law and

164-15   juvenile matters, including children's protective services matters,

164-16   protective orders under Chapter 71, Family Code, orders under

164-17   Chapter 159 [21], Family Code, and proceedings under Title 3,

164-18   Family Code.

164-19         SECTION 7.33.  Section 45.261(b), Government Code, is amended

164-20   to conform to Chapter 20, Acts of the 74th Legislature, Regular

164-21   Session, 1995, to read as follows:

164-22         (b)  The county attorney shall handle children's protective

164-23   services, protective orders under the Family Code, and proceedings

164-24   under Title 2 or 5, Family Code.

 165-1         SECTION 7.34.  Section 54.688, Government Code, is amended to

 165-2   conform to Chapter 20, Acts of the 74th Legislature, Regular

 165-3   Session, 1995, to read as follows:

 165-4         Sec. 54.688.  Cases That May be Referred.  A judge may refer

 165-5   to a master any civil case or portion of a civil case brought:

 165-6               (1)  under Title 1, 2, 3, [or] 4, or 5, Family Code; or

 165-7               (2)  in connection with Rule 308a [308-A], Texas Rules

 165-8   of Civil Procedure[; or]

 165-9               [(3)  in connection with Chapter 46 or 76, Human

165-10   Resources Code].

165-11         SECTION 7.35.  Section 54.808, Government Code, is amended to

165-12   conform to Chapter 20, Acts of the 74th Legislature, Regular

165-13   Session, 1995, to read as follows:

165-14         Sec. 54.808.  Cases That May be Referred.  A judge may refer

165-15   to a master any civil case or portion of a civil case brought:

165-16               (1)  under Title 1, 2, 3, [or] 4, or 5, Family Code; or

165-17               (2)  in connection with Rule 308a, Texas Rules of Civil

165-18   Procedure[; or]

165-19               [(3)  in connection with Chapter 46, Human Resources

165-20   Code].

165-21         SECTION 7.36.  Section 54.927, Government Code, is amended to

165-22   conform to Chapter 20, Acts of the 74th Legislature, Regular

165-23   Session, 1995, to read as follows:

165-24         Sec. 54.927.  Cases That May be Referred.  The judge may

 166-1   refer to a master any civil case or portion of a civil case

 166-2   brought:

 166-3               (1)  under Title 1, 2, 3, [or] 4, or 5, Family Code; or

 166-4               (2)  in connection with Rule 308a, Texas Rules of Civil

 166-5   Procedure[; or]

 166-6               [(3)  in connection with Chapter 46 or 76, Human

 166-7   Resources Code].

 166-8         SECTION 7.37.  Section 411.127(a), Government Code, is

 166-9   amended to conform to Chapter 20, Acts of the 74th Legislature,

166-10   Regular Session, 1995, to read as follows:

166-11         (a)  The attorney general is entitled to obtain from the

166-12   Department of Public Safety criminal history record information

166-13   maintained by the department that relates to a person who is an

166-14   applicant for a position of employment with the attorney general

166-15   that involves the performance of duties under Chapter 231, Family

166-16   [76, Human Resources] Code.  The attorney general may not request

166-17   the information unless a supervisory employee of the attorney

166-18   general's office has recommended that the applicant be hired.

166-19         SECTION 7.38.  Section 552.114(b), Government Code, is

166-20   amended to conform to Chapter 20, Acts of the 74th Legislature,

166-21   Regular Session, 1995, to read as follows:

166-22         (b)  A record under Subsection (a) shall be made available on

166-23   the request of:

166-24               (1)  educational institution personnel;

 167-1               (2)  the student involved or the student's parent,

 167-2   legal guardian, or spouse; or

 167-3               (3)  a person conducting a child abuse investigation

 167-4   required by Subchapter D, Chapter 261 [Section 34.05], Family Code.

 167-5         SECTION 7.39.  Section 81.046(d), Health and Safety Code, is

 167-6   amended to conform to Chapter 20, Acts of the 74th Legislature,

 167-7   Regular Session, 1995, to read as follows:

 167-8         (d)  In a case of sexually transmitted disease involving a

 167-9   minor under 13 years of age, information may not be released,

167-10   except that the child's name, age, and address and the name of the

167-11   disease may be released to appropriate agents as required by

167-12   Chapter 261 [34], Family Code.  If that information is required in

167-13   a court proceeding involving child abuse, the information shall be

167-14   disclosed in camera.

167-15         SECTION 7.40.  Section 161.001(b), Health and Safety Code, is

167-16   amended to conform to Chapter 20, Acts of the 74th Legislature,

167-17   Regular Session, 1995, to read as follows:

167-18         (b)  A person who administers or authorizes the

167-19   administration of a vaccine or immunizing agent is not liable or

167-20   responsible for the failure to immunize a child because of the

167-21   failure or refusal of a parent, managing conservator, or guardian

167-22   to consent to the vaccination or immunization required under this

167-23   chapter.  Consent to the vaccination or immunization must be given

167-24   in the manner authorized by Chapter 32 [Sections 35.011 through

 168-1   35.015], Family Code.

 168-2         SECTION 7.41.  Section 161.132(c), Health and Safety Code, is

 168-3   amended to conform to Chapter 20, Acts of the 74th Legislature,

 168-4   Regular Session, 1995, to read as follows:

 168-5         (c)  The requirement prescribed by this section is in

 168-6   addition to the requirements provided by Chapter 261 [34], Family

 168-7   Code, and Chapter 48, Human Resources Code.

 168-8         SECTION 7.42.  Section 192.005(b), Health and Safety Code, is

 168-9   amended to conform to Chapter 20, Acts of the 74th Legislature,

168-10   Regular Session, 1995, to read as follows:

168-11         (b)  The father of a child who has no presumed father may

168-12   acknowledge paternity by signing the certificate of birth or may

168-13   acknowledge paternity in accordance with Section 160.202 [13.22],

168-14   Family Code.

168-15         SECTION 7.43.  Section 192.008(c), Health and Safety Code, is

168-16   amended to conform to Chapter 20, Acts of the 74th Legislature,

168-17   Regular Session, 1995, to read as follows:

168-18         (c)  The board shall adopt rules and procedures to ensure

168-19   that birth records and indexes under the control of the department

168-20   or local registrars and accessible to the public do not contain

168-21   information or cross-references through which the confidentiality

168-22   of adoption placements may be directly or indirectly violated.  The

168-23   rules and procedures may not interfere with the registries

168-24   established under Subchapter E, Chapter 162, Family [Chapter 49,

 169-1   Human Resources] Code, or with a court order under this section.

 169-2         SECTION 7.44.  Section 464.010(a), Health and Safety Code, is

 169-3   amended to conform to Chapter 20, Acts of the 74th Legislature,

 169-4   Regular Session, 1995, to read as follows:

 169-5         (a)  A person, including treatment facility personnel, who

 169-6   believes that a client's physical or mental health or welfare has

 169-7   been, is, or will be adversely affected by abuse or neglect caused

 169-8   by any person shall report the facts underlying that belief to the

 169-9   commission.  This requirement is in addition to the requirements

169-10   prescribed by Chapter 261 [34], Family Code, and Chapter 48, Human

169-11   Resources Code.

169-12         SECTION 7.45.  Section 574.0085(f), Health and Safety Code,

169-13   is amended to conform to Chapter 20, Acts of the 74th Legislature,

169-14   Regular Session, 1995, to read as follows:

169-15         (f)  Except as limited by an order of referral, masters

169-16   appointed under this section have all the powers and duties set

169-17   forth in Section 201.007, Family [54.007, Government] Code.

169-18         SECTION 7.46.  Section 42.041(b), Human Resources Code, as

169-19   amended by Section 54, Chapter 262, and Section 1, Chapter 847,

169-20   Acts of the 74th Legislature, Regular Session, 1995, is amended to

169-21   conform to Chapter 20, Acts of the 74th Legislature, Regular

169-22   Session, 1995, to read as follows:

169-23         (b)  This section does not apply to:

169-24               (1)  a state-operated facility;

 170-1               (2)  an agency home;

 170-2               (3)  a facility that is operated in connection with a

 170-3   shopping center, business, religious organization, or establishment

 170-4   where children are cared for during short periods while parents or

 170-5   persons responsible for the children are attending religious

 170-6   services, shopping, or engaging in other activities on or near the

 170-7   premises, including but not limited to retreats or classes for

 170-8   religious instruction;

 170-9               (4)  a school or class for religious instruction that

170-10   does not last longer than two weeks and is conducted by a religious

170-11   organization during the summer months;

170-12               (5)  a youth camp licensed by the Texas Department of

170-13   Health;

170-14               (6)  a hospital licensed by the Texas Department of

170-15   Mental Health and Mental Retardation or the Texas Department of

170-16   Health;

170-17               (7)  an educational facility accredited by the Texas

170-18   [Central] Education Agency  or the Southern Association of Colleges

170-19   and Schools that operates primarily for educational purposes in

170-20   grades kindergarten and above;

170-21               (8)  an educational facility that operates solely for

170-22   educational purposes in grades kindergarten through at least grade

170-23   two, that does not provide custodial care for more than one hour

170-24   during the hours before or after the customary school day, and that

 171-1   is a member of an organization that promulgates, publishes, and

 171-2   requires compliance with health, safety, fire, and sanitation

 171-3   standards equal to standards required by state, municipal, and

 171-4   county codes;

 171-5               (9)  a kindergarten or preschool educational program

 171-6   that is operated as part of a public school or a private school

 171-7   accredited by the Texas [Central] Education Agency, that offers

 171-8   educational programs through grade six, and that does not provide

 171-9   custodial care during the hours before or after the customary

171-10   school day;

171-11               (10)  a family home, whether registered or not;

171-12               (11)  an educational facility that is integral to and

171-13   inseparable from its sponsoring religious organization or an

171-14   educational facility both of which do not provide custodial care

171-15   for more than two hours maximum per day, and that offers

171-16   educational programs for children age five and above in one or more

171-17   of the following:  kindergarten through at least grade three,

171-18   elementary, or secondary grades;

171-19               (12)  an agency group home;

171-20               (13)  an emergency shelter facility providing shelter

171-21   to minor mothers who are the sole support of their natural children

171-22   under Section 32.201 [35.05], Family Code, unless the facility

171-23   would otherwise require a license as a child-care facility under

171-24   this section; [or]

 172-1               (14)  a juvenile detention facility certified under

 172-2   Section 51.12, Family Code, or Section 141.042(d) or a juvenile

 172-3   facility providing services solely for the Texas Youth

 172-4   Commission;[.]

 172-5               (15) [(14)]  an elementary-age (ages 5-13) recreation

 172-6   program operated by a municipality provided the governing body of

 172-7   the municipality annually adopts standards of care by ordinance

 172-8   after a public hearing for such programs, that such standards are

 172-9   provided to the parents of each program participant, and that the

172-10   ordinances shall include, at a minimum, staffing ratios, minimum

172-11   staff qualifications, minimum facility, health, and safety

172-12   standards, and mechanisms for monitoring and enforcing the adopted

172-13   local standards; and further provided that parents be informed that

172-14   the program is not licensed by the state and the program may not be

172-15   advertised as a child-care facility; or

172-16               (16) [(15)]  an annual youth camp held in a

172-17   municipality with a population of more than 1.5 million that

172-18   operates for not more than three months and that has been operated

172-19   for at least 10 years by a nonprofit organization that provides

172-20   care for the homeless.

172-21         SECTION 7.47.  Section 42.056(a), Human Resources Code, is

172-22   amended to conform to Chapter 20, Acts of the 74th Legislature,

172-23   Regular Session, 1995, to read as follows:

172-24         (a)  Each child care facility shall post in a location that

 173-1   is conspicuous to all employees and customers a sign that includes:

 173-2               (1)  a description of the provisions of Chapter 261

 173-3   [34], Family Code, relating to the duty to report child abuse or

 173-4   neglect; and

 173-5               (2)  a description of the penalties for violating the

 173-6   reporting provisions of Chapter 261 [34], Family Code.

 173-7         SECTION 7.48.  The heading to Subchapter A, Chapter 76, Human

 173-8   Resources Code, as added by Section 5.01, Chapter 655, Acts of the

 173-9   74th Legislature, Regular Session, 1995, is repealed to conform to

173-10   the transfer of that chapter to the Family Code by Chapter 20, Acts

173-11   of the 74th Legislature, Regular Session, 1995.

173-12         SECTION 7.49.  Section 141.0476(e), Human Resources Code, is

173-13   amended to conform to Chapter 20, Acts of the 74th Legislature,

173-14   Regular Session, 1995, to read as follows:

173-15         (e)  In this section, "abuse" and "neglect" have the meanings

173-16   assigned by Section 261.001 [34.012], Family Code.

173-17         SECTION 7.50.  Section 152.1073(b), Human Resources Code, is

173-18   amended to conform to Chapter 20, Acts of the 74th Legislature,

173-19   Regular Session, 1995, to read as follows:

173-20         (b)  The board has the powers and duties of a child welfare

173-21   board created under Section 264.005, Family [41.002, Human

173-22   Resources] Code.

173-23         SECTION 7.51.  Section 152.1074(f), Human Resources Code, is

173-24   amended to conform to Chapter 20, Acts of the 74th Legislature,

 174-1   Regular Session, 1995, to read as follows:

 174-2         (f)  To recover the costs of providing services, the

 174-3   commissioners court may provide by order for the collection by the

 174-4   district clerk of a fee set by the commissioners court at an amount

 174-5   that does not exceed $12.  A person who files a suit for divorce,

 174-6   annulment, or to declare a marriage void in which the parties are

 174-7   parents of a child, as that term is defined by Section 101.003

 174-8   [11.01(1)], Family Code, shall pay the fee at the time the suit is

 174-9   filed.

174-10         SECTION 7.52.  Section 152.2491(c), Human Resources Code, is

174-11   amended to conform to Chapter 20, Acts of the 74th Legislature,

174-12   Regular Session, 1995, to read as follows:

174-13         (c)  The juvenile board may authorize the use of foster homes

174-14   for the temporary care of children subject to Title [2  or] 3 or 5,

174-15   Family Code.  The rate of pay for foster care shall be determined

174-16   by the juvenile board and those payments are necessary operating

174-17   expenses of the Wichita County Family Court Services Department.

174-18         SECTION 7.53.  Section 408.203(b), Labor Code, is amended to

174-19   conform to Chapter 20, Acts of the 74th Legislature, Regular

174-20   Session, 1995, to read as follows:

174-21         (b)  A benefit that is subject to a lien for payment of

174-22   court-ordered child support shall be paid as required by:

174-23               (1)  an order withholding income under Subchapter A,

174-24   Chapter 158 [Section 14.43], Family Code; or

 175-1               (2)  a writ of income withholding under Subchapter D,

 175-2   Chapter 158 [Section 14.45], Family Code.

 175-3         SECTION 7.54.  Section 42(b)(1), Texas Probate Code, is

 175-4   amended to conform to Chapter 20, Acts of the 74th Legislature,

 175-5   Regular Session, 1995, to read as follows:

 175-6               (1)  For the purpose of inheritance, a child is the

 175-7   child of his biological father if the child is born under

 175-8   circumstances described by Section 151.002 [12.02], Family Code, is

 175-9   adjudicated to be the child of the father by court decree as

175-10   provided by Chapter 160 [13], Family Code, was adopted by his

175-11   father, or if the father executed a statement of paternity as

175-12   provided by Section 160.202 [13.22], Family Code, or a like

175-13   statement properly executed in another jurisdiction, so that he and

175-14   his issue shall inherit from his father and from his paternal

175-15   kindred, both descendants, ascendants, and collaterals in all

175-16   degrees, and they may inherit from him and his issue.  A person

175-17   claiming to be a biological child of the decedent, who is not

175-18   otherwise presumed to be a child of the decedent, or claiming

175-19   inheritance through a biological child of the decedent, who is not

175-20   otherwise presumed to be a child of the decedent, may petition the

175-21   probate court for a determination of right of inheritance.  If the

175-22   court finds by clear and convincing evidence that the purported

175-23   father was the biological father of the child, the child is treated

175-24   as any other child of the decedent for the purpose of inheritance

 176-1   and he and his issue may inherit from his paternal kindred, both

 176-2   descendants, ascendants, and collaterals in all degrees, and they

 176-3   may inherit from him and his issue.  This section does not permit

 176-4   inheritance by a purported father of a child, whether recognized or

 176-5   not, if the purported father's parental rights have been

 176-6   terminated.

 176-7         SECTION 7.55.  Section 609(c), Texas Probate Code, is amended

 176-8   to conform to Chapter 20, Acts of the 74th Legislature, Regular

 176-9   Session, 1995, to read as follows:

176-10         (c)  The court to which a transfer is made under this section

176-11   shall apply the procedural and substantive provisions of the Family

176-12   Code, including Sections 155.005 and 155.205 [Section 11.05(h), and

176-13   its subsequent amendments], in regard to enforcing an order

176-14   rendered by the court from which the proceeding was transferred.

176-15         SECTION 7.56.  Section 42.005, Property Code, is amended to

176-16   conform to Chapter 20, Acts of the 74th Legislature, Regular

176-17   Session, 1995, to read as follows:

176-18         Sec. 42.005.  Child Support Liens.  Sections 42.001, 42.002,

176-19   and 42.0021 of this code do not apply to a child support lien

176-20   established under Subchapter G [F], Chapter 157 [14], Family Code.

176-21           ARTICLE 8.  RENUMBERING CHAPTER 30, GOVERNMENT CODE

176-22                      (MUNICIPAL COURTS OF RECORD)

176-23         SECTION 8.01.  The following provisions of Chapter 30,

176-24   Government Code, are relettered or renumbered to provide additional

 177-1   section numbers for expansion, eliminate duplicate citations, and

 177-2   relocate misplaced provisions.

 177-3         SECTION 8.02.  Subchapter P, Chapter 30, Government Code, is

 177-4   relettered as Subchapter A, Chapter 30, Government Code, and

 177-5   Sections 30.481, 30.482, 30.483, 30.484, 30.485, 30.486, 30.487,

 177-6   30.488, 30.489, 30.490, 30.491, 30.492, 30.493, 30.494, 30.495,

 177-7   30.496, 30.497, 30.498, 30.499, 30.500, 30.501, 30.502, 30.503,

 177-8   30.504, 30.505, and 30.506, Government Code, are renumbered as

 177-9   Sections 30.00001, 30.00002, 30.00003, 30.00004, 30.00005,

177-10   30.00006, 30.00007, 30.00008, 30.00009, 30.00010, 30.00011,

177-11   30.00012, 30.00013, 30.00014, 30.00015, 30.00016, 30.00017,

177-12   30.00018, 30.00019, 30.00020, 30.00021, 30.00022, 30.00023,

177-13   30.00024, 30.00025, and 30.00026, Government Code, respectively.

177-14         SECTION 8.03.  Subchapter A, Chapter 30, Government Code, is

177-15   relettered as Subchapter B, Chapter 30, Government Code, and

177-16   Sections 30.001, 30.002, 30.003, 30.004, 30.005, 30.006, 30.007,

177-17   30.008, 30.009, 30.010, 30.011, 30.012, 30.013, 30.014, 30.015,

177-18   30.016, 30.017, 30.018, 30.019, 30.020, 30.021, and 30.022,

177-19   Government Code, are renumbered as Sections 30.00041, 30.00042,

177-20   30.00043, 30.00044, 30.00045, 30.00046, 30.00047, 30.00048,

177-21   30.00049, 30.00050, 30.00051, 30.00052, 30.00053, 30.00054,

177-22   30.00055, 30.00056, 30.00057, 30.00058, 30.00059, 30.00060,

177-23   30.00061, and 30.00062, Government Code, respectively.

177-24         SECTION 8.04.  Section 30.010(d), Government Code, is

 178-1   renumbered as Section 30.00050(d), Government Code, and amended to

 178-2   correct a cross-reference to read as follows:

 178-3         (d)  A juror who serves in the municipal courts of record

 178-4   must meet the qualifications provided by Subchapter B [A], Chapter

 178-5   62, and must also be a registered voter of the city.  A juror in

 178-6   the courts is subject to the laws relating to exemption and excuse

 178-7   from jury service that are applicable to the other courts in the

 178-8   county.

 178-9         SECTION 8.05.  Subchapter A-1, Chapter 30, Government Code,

178-10   is relettered as Subchapter C, Chapter 30, Government Code, and

178-11   Sections 30.0241, 30.0242, 30.0243, 30.0244, 30.0245, 30.0246,

178-12   30.0247, 30.0248, 30.0249, 30.0250, 30.0251, 30.0252, 30.0253,

178-13   30.0254, 30.0255, 30.0256, 30.0257, 30.0258, 30.0259, 30.0260, and

178-14   30.0261, Government Code, are renumbered as Sections 30.00081,

178-15   30.00082, 30.00083, 30.00084, 30.00085, 30.00086, 30.00087,

178-16   30.00088, 30.00089, 30.00090, 30.00091, 30.00092, 30.00093,

178-17   30.00094, 30.00095, 30.00096, 30.00097, 30.00098, 30.00099,

178-18   30.00100, and 30.00101, Government Code, respectively.

178-19         SECTION 8.06.  Subchapter B, Chapter 30, Government Code, is

178-20   relettered as Subchapter D, Chapter 30, Government Code, and

178-21   Sections 30.031, 30.032, 30.033, 30.034, 30.035, 30.036, 30.037,

178-22   30.038, 30.039, 30.040, 30.041, 30.042, 30.043, 30.044, 30.045,

178-23   30.046, 30.047, 30.048, 30.049, 30.050, 30.051, 30.052, 30.053,

178-24   30.054, 30.055, 30.056, 30.057, 30.058, 30.059, 30.060, 30.061,

 179-1   30.062, 30.063, 30.064, 30.065, 30.066, 30.067, 30.068, 30.069,

 179-2   30.070, 30.071, 30.072, 30.073, and 30.074, Government Code, are

 179-3   renumbered as Sections 30.00121, 30.00122, 30.00123, 30.00124,

 179-4   30.00125, 30.00126, 30.00127, 30.00128, 30.00129, 30.00130,

 179-5   30.00131, 30.00132, 30.00133, 30.00134, 30.00135, 30.00136,

 179-6   30.00137, 30.00138, 30.00139, 30.00140, 30.00141, 30.00142,

 179-7   30.00143, 30.00144, 30.00145, 30.00146, 30.00147, 30.00148,

 179-8   30.00149, 30.00150, 30.00151, 30.00152, 30.00153, 30.00154,

 179-9   30.00155, 30.00156, 30.00157, 30.00158, 30.00159, 30.00160,

179-10   30.00161, 30.00162, 30.00163, and 30.00164, Government Code,

179-11   respectively.

179-12         SECTION 8.07.  Subchapter BB, Chapter 30, Government Code, is

179-13   relettered as Subchapter E, Chapter 30, Government Code, and

179-14   Sections 30.0761, 30.0762, 30.0763, 30.0764, 30.0765, 30.0766,

179-15   30.0767, 30.0768, 30.0769, 30.0770, 30.0771, 30.0772, 30.0773,

179-16   30.0774, 30.0775, 30.0776, 30.0777, 30.0778, 30.0779, 30.0780, and

179-17   30.0781, Government Code, are renumbered as Sections 30.00181,

179-18   30.00182, 30.00183, 30.00184, 30.00185, 30.00186, 30.00187,

179-19   30.00188, 30.00189, 30.00190, 30.00191, 30.00192, 30.00193,

179-20   30.00194, 30.00195, 30.00196, 30.00197, 30.00198, 30.00199,

179-21   30.00200, and 30.00201, Government Code, respectively.

179-22         SECTION 8.08.  Subchapter C, Chapter 30, Government Code, is

179-23   relettered as Subchapter F, Chapter 30, Government Code, and

179-24   Sections 30.081, 30.082, 30.083, 30.084, 30.085, 30.086, 30.087,

 180-1   30.088, 30.089, 30.090, 30.091, 30.092, 30.093, 30.094, 30.095,

 180-2   30.096, 30.097, 30.098, 30.099, 30.100, 30.101, and 30.102,

 180-3   Government Code, are renumbered as Sections 30.00221, 30.00222,

 180-4   30.00223, 30.00224, 30.00225, 30.00226, 30.00227, 30.00228,

 180-5   30.00229, 30.00230, 30.00231, 30.00232, 30.00233, 30.00234,

 180-6   30.00235, 30.00236, 30.00237, 30.00238, 30.00239, 30.00240,

 180-7   30.00241, and 30.00242, Government Code, respectively.

 180-8         SECTION 8.09.  Subchapter CC, Chapter 30, Government Code, is

 180-9   relettered as Subchapter G, Chapter 30, Government Code, and

180-10   Sections 30.1041, 30.1042, 30.1043, 30.1044, 30.1045, 30.1046,

180-11   30.1047, 30.1048, 30.1049, 30.1050, 30.1051, 30.1052, 30.1053,

180-12   30.1054, 30.1055, 30.1056, 30.1057, 30.1058, 30.1059, 30.1060,

180-13   30.1061, and 30.1062, Government Code, are renumbered as Sections

180-14   30.00261, 30.00262, 30.00263, 30.00264, 30.00265, 30.00266,

180-15   30.00267, 30.00268, 30.00269, 30.00270, 30.00271, 30.00272,

180-16   30.00273, 30.00274, 30.00275, 30.00276, 30.00277, 30.00278,

180-17   30.00279, 30.00280, 30.00281, and 30.00282, Government Code,

180-18   respectively.

180-19         SECTION 8.10.  Subchapter D, Chapter 30, Government Code, is

180-20   relettered as Subchapter H, Chapter 30, Government Code, and

180-21   Sections 30.111, 30.112, 30.113, 30.114, 30.115, 30.116, 30.117,

180-22   30.118, 30.119, 30.120, 30.121, 30.122, 30.123, 30.124, 30.125,

180-23   30.126, 30.127, 30.128, 30.129, 30.130, 30.131, and 30.132,

180-24   Government Code, are renumbered as Sections 30.00301, 30.00302,

 181-1   30.00303, 30.00304, 30.00305, 30.00306, 30.00307, 30.00308,

 181-2   30.00309, 30.00310, 30.00311, 30.00312, 30.00313, 30.00314,

 181-3   30.00315, 30.00316, 30.00317, 30.00318, 30.00319, 30.00320,

 181-4   30.00321, and 30.00322, Government Code, respectively.

 181-5         SECTION 8.11.  Subchapter DD, Chapter 30, Government Code, is

 181-6   relettered as Subchapter I, Chapter 30, Government Code, and

 181-7   Sections 30.1341, 30.1342, 30.1343, 30.1344, 30.1345, 30.1346,

 181-8   30.1347, 30.1348, 30.1349, 30.1350, 30.1351, 30.1352, 30.1353,

 181-9   30.1354, 30.1355, 30.1356, 30.1357, 30.1358, 30.1359, 30.1360, and

181-10   30.1361, Government Code, are renumbered as Sections 30.00341,

181-11   30.00342, 30.00343, 30.00344, 30.00345, 30.00346, 30.00347,

181-12   30.00348, 30.00349, 30.00350, 30.00351, 30.00352, 30.00353,

181-13   30.00354, 30.00355, 30.00356, 30.00357, 30.00358, 30.00359,

181-14   30.00360, and 30.00361, Government Code, respectively.

181-15         SECTION 8.12.  Subchapter E, Chapter 30, Government Code, is

181-16   relettered as Subchapter J, Chapter 30, Government Code, and

181-17   Sections 30.141, 30.142, 30.143, 30.144, 30.145, 30.146, 30.147,

181-18   30.148, 30.149, 30.150, 30.151, 30.152, 30.153, 30.154, 30.155,

181-19   30.156, 30.157, 30.158, 30.159, 30.160, 30.161, and 30.162,

181-20   Government Code, are renumbered as Sections 30.00381, 30.00382,

181-21   30.00383, 30.00384, 30.00385, 30.00386, 30.00387, 30.00388,

181-22   30.00389, 30.00390, 30.00391, 30.00392, 30.00393, 30.00394,

181-23   30.00395, 30.00396, 30.00397, 30.00398, 30.00399, 30.00400,

181-24   30.00401, and 30.00402, Government Code, respectively.

 182-1         SECTION 8.13.  Subchapter U, Chapter 30, Government Code, is

 182-2   relettered as Subchapter K, Chapter 30, Government Code, and

 182-3   Sections 30.1641, 30.1642, 30.1643, 30.1644, 30.1645, 30.1646,

 182-4   30.1647, 30.1648, 30.1649, 30.1650, 30.1651, 30.1652, 30.1653,

 182-5   30.1654, 30.1655, 30.1656, 30.1657, 30.1658, 30.1659, 30.1660,

 182-6   30.1661, 30.1662, 30.1663, and 30.1664, Government Code, are

 182-7   renumbered as Sections 30.00421, 30.00422, 30.00423, 30.00424,

 182-8   30.00425, 30.00426, 30.00427, 30.00428, 30.00429, 30.00430,

 182-9   30.00431, 30.00432, 30.00433, 30.00434, 30.00435, 30.00436,

182-10   30.00437, 30.00438, 30.00439, 30.00440,  30.00441, 30.00442,

182-11   30.00443, and 30.00444, Government Code, respectively.

182-12         SECTION 8.14.  Subchapter F, Chapter 30, Government Code, is

182-13   relettered as Subchapter L, Chapter 30, Government Code, and

182-14   Sections 30.171, 30.172, 30.173, 30.174, 30.175, 30.176, 30.177,

182-15   30.178, 30.179, 30.180, 30.181, 30.182, 30.183, 30.184, 30.185, and

182-16   30.186, Government Code, are renumbered as Sections 30.00461,

182-17   30.00462, 30.00463, 30.00464, 30.00465, 30.00466, 30.00467,

182-18   30.00468, 30.00469, 30.00470, 30.00471, 30.00472, 30.00473,

182-19   30.00474, 30.00475, and 30.00476, Government Code, respectively.

182-20         SECTION 8.15.  Subchapter FF, Chapter 30, Government Code, is

182-21   relettered as Subchapter M, Chapter 30, Government Code, and

182-22   Sections 30.1881, 30.1882, 30.1883, 30.1884, 30.1885, 30.1886,

182-23   30.1887, 30.1888, 30.1889, 30.1890, 30.1891, 30.1892, 30.1893,

182-24   30.1894, 30.1895, 30.1896, 30.1897, 30.1898, 30.1899, 30.1900, and

 183-1   30.1901, Government Code, are renumbered as Sections 30.00491,

 183-2   30.00492, 30.00493, 30.00494, 30.00495, 30.00496, 30.00497,

 183-3   30.00498, 30.00499, 30.00500, 30.00501, 30.00502, 30.00503,

 183-4   30.00504, 30.00505, 30.00506, 30.00507, 30.00508, 30.00509,

 183-5   30.00510, and 30.00511, Government Code, respectively.

 183-6         SECTION 8.16.  Subchapter G, Chapter 30, Government Code, is

 183-7   relettered as Subchapter N, Chapter 30, Government Code, and

 183-8   Sections 30.201, 30.202, 30.203, 30.204, 30.205, 30.206, 30.207,

 183-9   30.208, 30.209, 30.210, 30.211, 30.212, 30.213, 30.214, 30.215,

183-10   30.216, and 30.217, Government Code, are renumbered as Sections

183-11   30.00531, 30.00532, 30.00533, 30.00534, 30.00535, 30.00536,

183-12   30.00537, 30.00538, 30.00539, 30.00540, 30.00541, 30.00542,

183-13   30.00543, 30.00544, 30.00545, 30.00546, and 30.00547, Government

183-14   Code, respectively.

183-15         SECTION 8.17.  Subchapter GG, Chapter 30, Government Code, is

183-16   relettered as Subchapter O, Chapter 30, Government Code, and

183-17   Sections 30.2191, 30.2192, 30.2193, 30.2194, 30.2195, 30.2196,

183-18   30.2197, 30.2198, 30.2199, 30.2200, 30.2201, 30.2202, 30.2203,

183-19   30.2204, 30.2205, 30.2206, 30.2207, 30.2208, 30.2209, 30.2210, and

183-20   30.2211, Government Code, are renumbered as Sections 30.00561,

183-21   30.00562, 30.00563, 30.00564, 30.00565, 30.00566, 30.00567,

183-22   30.00568, 30.00569, 30.00570, 30.00571, 30.00572, 30.00573,

183-23   30.00574, 30.00575, 30.00576, 30.00577, 30.00578, 30.00579,

183-24   30.00580, and 30.00581, Government Code, respectively.

 184-1         SECTION 8.18.  Subchapter H, Chapter 30, Government Code, is

 184-2   relettered as Subchapter P, Chapter 30, Government Code, and

 184-3   Sections 30.231, 30.232, 30.233, 30.234, 30.235, 30.236, 30.237,

 184-4   30.238, 30.239, 30.240, 30.241, 30.242, 30.243, 30.244, 30.245, and

 184-5   30.246, Government Code, are renumbered as Sections 30.00601,

 184-6   30.00602, 30.00603, 30.00604, 30.00605, 30.00606, 30.00607,

 184-7   30.00608, 30.00609, 30.00610, 30.00611, 30.00612, 30.00613,

 184-8   30.00614, 30.00615, and 30.00616, Government Code, respectively.

 184-9         SECTION 8.19.  Subchapter HH, Chapter 30, Government Code, is

184-10   relettered as Subchapter Q, Chapter 30, Government Code, and

184-11   Sections 30.2481, 30.2482, 30.2483, 30.2484, 30.2485, 30.2486,

184-12   30.2487, 30.2488, 30.2489, 30.2490, 30.2491, 30.2492, 30.2493,

184-13   30.2494, 30.2495, 30.2496, 30.2497, 30.2498, 30.2499, 30.2500,

184-14   30.2501, 30.2502, 30.2503, 30.2504, 30.2505, 30.2506, and 30.2507,

184-15   Government Code, are renumbered as Sections 30.00631, 30.00632,

184-16   30.00633, 30.00634, 30.00635, 30.00636, 30.00637, 30.00638,

184-17   30.00639, 30.00640, 30.00641, 30.00642, 30.00643, 30.00644,

184-18   30.00645, 30.00646, 30.00647, 30.00648, 30.00649, 30.00650,

184-19   30.00651, 30.00652, 30.00653, 30.00654, 30.00655, 30.00656, and

184-20   30.00657, Government Code, respectively.

184-21         SECTION 8.20.  Subchapter I, Chapter 30, Government Code, is

184-22   relettered as Subchapter R, Chapter 30, Government Code, and

184-23   Sections 30.261, 30.262, 30.263, 30.264, 30.265, 30.266, 30.267,

184-24   30.268, 30.269, 30.270, 30.271, 30.272, 30.273, 30.274, 30.275,

 185-1   30.276, 30.277, and 30.278, Government Code, are renumbered as

 185-2   Sections 30.00671, 30.00672, 30.00673, 30.00674, 30.00675,

 185-3   30.00676, 30.00677, 30.00678, 30.00679, 30.00680, 30.00681,

 185-4   30.00682, 30.00683, 30.00684, 30.00685, 30.00686, 30.00687, and

 185-5   30.00688, Government Code, respectively.

 185-6         SECTION 8.21.  Subchapter J, Chapter 30, Government Code, is

 185-7   relettered as Subchapter S, Chapter 30, Government Code, and

 185-8   Sections 30.291, 30.292, 30.293, 30.294, 30.295, 30.296, 30.297,

 185-9   30.298, 30.299, 30.300, 30.301, 30.302, 30.303, 30.304, 30.305,

185-10   30.306, and 30.307, Government Code, are renumbered as Sections

185-11   30.00701, 30.00702, 30.00703, 30.00704, 30.00705, 30.00706,

185-12   30.00707, 30.00708, 30.00709, 30.00710, 30.00711, 30.00712,

185-13   30.00713, 30.00714, 30.00715, 30.00716, and 30.00717, Government

185-14   Code, respectively.

185-15         SECTION 8.22.  Subchapter K, Chapter 30, Government Code, is

185-16   relettered as Subchapter T, Chapter 30, Government Code, and

185-17   Sections 30.321, 30.322, 30.323, 30.324, 30.325, 30.326, 30.327,

185-18   30.328, 30.329, 30.330, 30.331, 30.332, 30.333, 30.334, 30.335,

185-19   30.336, 30.337, 30.338, 30.339, 30.340, 30.341, 30.342, 30.343, and

185-20   30.344, Government Code, are renumbered as Sections 30.00731,

185-21   30.00732, 30.00733, 30.00734, 30.00735, 30.00736, 30.00737,

185-22   30.00738, 30.00739, 30.00740, 30.00741, 30.00742, 30.00743,

185-23   30.00744, 30.00745, 30.00746, 30.00747, 30.00748, 30.00749,

185-24   30.00750, 30.00751, 30.00752, 30.00753, and 30.00754, Government

 186-1   Code, respectively.

 186-2         SECTION 8.23.  Subchapter L, Chapter 30, Government Code, is

 186-3   relettered as Subchapter U, Chapter 30, Government Code, and

 186-4   Sections 30.351, 30.352, 30.353, 30.354, 30.355, 30.356, 30.357,

 186-5   30.358, 30.359, 30.360, 30.361, 30.362, 30.363, 30.364, 30.365,

 186-6   30.366, 30.367, 30.368, 30.369, 30.370, 30.371, 30.372, 30.373, and

 186-7   30.374, Government Code, are renumbered as Sections 30.00771,

 186-8   30.00772, 30.00773, 30.00774, 30.00775, 30.00776, 30.00777,

 186-9   30.00778, 30.00779, 30.00780, 30.00781, 30.00782, 30.00783,

186-10   30.00784, 30.00785, 30.00786, 30.00787, 30.00788, 30.00789,

186-11   30.00790, 30.00791, 30.00792, 30.00793, and 30.00794, Government

186-12   Code, respectively.

186-13         SECTION 8.24.  Subchapter M, Chapter 30, Government Code, is

186-14   relettered as Subchapter V, Chapter 30, Government Code, and

186-15   Sections 30.381, 30.382, 30.383, 30.384, 30.385, 30.386, 30.387,

186-16   30.388, 30.389, 30.390, 30.391, 30.392, 30.393, 30.394, 30.395,

186-17   30.396, 30.397, 30.398, 30.399, 30.400, 30.401, 30.402, 30.403,

186-18   30.404, 30.405, 30.406, 30.407, 30.408, and 30.409, Government

186-19   Code, are renumbered as Sections 30.00811, 30.00812, 30.00813,

186-20   30.00814, 30.00815, 30.00816, 30.00817, 30.00818, 30.00819,

186-21   30.00820, 30.00821, 30.00822, 30.00823, 30.00824, 30.00825,

186-22   30.00826, 30.00827, 30.00828, 30.00829, 30.00830, 30.00831,

186-23   30.00832, 30.00833, 30.00834, 30.00835, 30.00836, 30.00837,

186-24   30.00838, and 30.00839, Government Code, respectively.

 187-1         SECTION 8.25.  Subchapter N, Chapter 30, Government Code, is

 187-2   relettered as Subchapter W, Chapter 30, Government Code, and

 187-3   Sections 30.421, 30.422, 30.423, 30.424, 30.425, 30.426, 30.427,

 187-4   30.428, 30.429, 30.430, 30.431, 30.432, 30.433, 30.434, 30.435,

 187-5   30.436, 30.437, 30.438, 30.439, 30.440, and 30.441, Government

 187-6   Code, are renumbered as Sections 30.00851, 30.00852, 30.00853,

 187-7   30.00854, 30.00855, 30.00856, 30.00857, 30.00858, 30.00859,

 187-8   30.00860, 30.00861, 30.00862, 30.00863, 30.00864, 30.00865,

 187-9   30.00866, 30.00867, 30.00868, 30.00869, 30.00870, and 30.00871,

187-10   Government Code, respectively.

187-11         SECTION 8.26.  Subchapter O, Chapter 30, Government Code, is

187-12   relettered as Subchapter X, Chapter 30, Government Code, and

187-13   Sections 30.451, 30.452, 30.453, 30.454, 30.455, 30.456, 30.457,

187-14   30.458, 30.459, 30.460, 30.461, 30.462, 30.463, 30.464, 30.465,

187-15   30.466, 30.467, 30.468, 30.469, and 30.470, Government Code, are

187-16   renumbered as Sections 30.00891, 30.00892, 30.00893, 30.00894,

187-17   30.00895, 30.00896, 30.00897, 30.00898, 30.00899, 30.00900,

187-18   30.00901, 30.00902, 30.00903, 30.00904, 30.00905, 30.00906,

187-19   30.00907, 30.00908, 30.00909, and 30.00910, Government Code,

187-20   respectively.

187-21         SECTION 8.27.  Subchapter Q, Chapter 30, Government Code, is

187-22   relettered as Subchapter Y, Chapter 30, Government Code, and

187-23   Sections 30.521, 30.522, 30.523, 30.524, 30.525, 30.526, 30.527,

187-24   30.528, 30.529, 30.530, 30.531, 30.532, 30.533, 30.534, 30.535,

 188-1   30.536, 30.537, 30.538, 30.539, 30.540, 30.541, 30.542, 30.543, and

 188-2   30.544, Government Code, are renumbered as Sections 30.00931,

 188-3   30.00932, 30.00933, 30.00934, 30.00935, 30.00936, 30.00937,

 188-4   30.00938, 30.00939, 30.00940, 30.00941, 30.00942, 30.00943,

 188-5   30.00944, 30.00945, 30.00946, 30.00947, 30.00948, 30.00949,

 188-6   30.00950, 30.00951, 30.00952, 30.00953, and 30.00954, Government

 188-7   Code, respectively.

 188-8         SECTION 8.28.  Subchapter R, Chapter 30, Government Code, is

 188-9   relettered as Subchapter Z, Chapter 30, Government Code, and

188-10   Sections 30.651, 30.652, 30.653, 30.654, 30.655, 30.656, 30.657,

188-11   30.658, 30.659, 30.660, 30.661, 30.662, 30.663, 30.664, 30.665,

188-12   30.666, 30.667, 30.668, 30.669, 30.670, 30.671, and 30.672,

188-13   Government Code, are renumbered as Sections 30.00971, 30.00972,

188-14   30.00973, 30.00974, 30.00975, 30.00976, 30.00977, 30.00978,

188-15   30.00979, 30.00980, 30.00981, 30.00982, 30.00983, 30.00984,

188-16   30.00985, 30.00986, 30.00987, 30.00988, 30.00989, 30.00990,

188-17   30.00991, and 30.00992, Government Code, respectively.

188-18         SECTION 8.29.  Subchapter S, Chapter 30, Government Code, is

188-19   relettered as Subchapter AA, Chapter 30, Government Code, and

188-20   Sections 30.691, 30.692, 30.693, 30.694, 30.695, 30.696, 30.697,

188-21   30.698, 30.699, 30.700, 30.701, 30.702, 30.703, 30.704, 30.705,

188-22   30.706, 30.707, 30.708, 30.709, 30.710, 30.711, and 30.712,

188-23   Government Code, are renumbered as Sections 30.01011, 30.01012,

188-24   30.01013, 30.01014, 30.01015, 30.01016, 30.01017, 30.01018,

 189-1   30.01019, 30.01020, 30.01021, 30.01022, 30.01023, 30.01024,

 189-2   30.01025, 30.01026, 30.01027, 30.01028, 30.01029, 30.01030,

 189-3   30.01031, and 30.01032, Government Code, respectively.

 189-4         SECTION 8.30.  Subchapter T, Chapter 30, Government Code, is

 189-5   relettered as Subchapter BB, Chapter 30, Government Code, and

 189-6   Sections 30.721, 30.722, 30.723, 30.724, 30.725, 30.726, 30.727,

 189-7   30.728, 30.729, 30.730, 30.731, 30.732, 30.733, 30.734, 30.735,

 189-8   30.736, 30.737, 30.738, 30.739, 30.740, and 30.741, Government

 189-9   Code, are renumbered as Sections 30.01051, 30.01052, 30.01053,

189-10   30.01054, 30.01055, 30.01056, 30.01057, 30.01058, 30.01059,

189-11   30.01060, 30.01061, 30.01062, 30.01063, 30.01064, 30.01065,

189-12   30.01066, 30.01067, 30.01068, 30.01069, 30.01070, and 30.01071,

189-13   Government Code, respectively.

189-14         SECTION 8.31.  Subchapter V, Chapter 30, Government Code, is

189-15   relettered as Subchapter CC, Chapter 30, Government Code, and

189-16   Sections 30.851, 30.852, 30.853, 30.854, 30.855, 30.856, 30.857,

189-17   30.858, 30.859, 30.860, 30.861, 30.862, 30.863, 30.864, 30.865,

189-18   30.866, 30.867, 30.868, 30.869, 30.870, 30.871, 30.872, and 30.873,

189-19   Government Code, are renumbered as Sections 30.01091, 30.01092,

189-20   30.01093, 30.01094, 30.01095, 30.01096, 30.01097, 30.01098,

189-21   30.01099, 30.01100, 30.01101, 30.01102, 30.01103, 30.01104,

189-22   30.01105, 30.01106, 30.01107, 30.01108, 30.01109, 30.01110,

189-23   30.01111, 30.01112, and 30.01113, Government Code, respectively.

189-24         SECTION 8.32.  Subchapter W, Chapter 30, Government Code, is

 190-1   relettered as Subchapter DD, Chapter 30, Government Code, and

 190-2   Sections 30.881, 30.882, 30.883, 30.884, 30.885, 30.886, 30.887,

 190-3   30.888, 30.889, 30.890, 30.891, 30.892, 30.893, 30.894, 30.895,

 190-4   30.896, 30.897, 30.898, 30.899, 30.900, and 30.901, Government

 190-5   Code, are renumbered as Sections 30.01131, 30.01132, 30.01133,

 190-6   30.01134, 30.01135, 30.01136, 30.01137, 30.01138, 30.01139,

 190-7   30.01140, 30.01141, 30.01142, 30.01143, 30.01144, 30.01145,

 190-8   30.01146, 30.01147, 30.01148, 30.01149, 30.01150, and 30.01151,

 190-9   Government Code, respectively.

190-10         SECTION 8.33.  Subchapter X, Chapter 30, Government Code, is

190-11   relettered as Subchapter EE, Chapter 30, Government Code, and

190-12   Sections 30.916, 30.917, 30.918, 30.919, 30.920, 30.921, 30.922,

190-13   30.923, 30.924, 30.925, 30.926, 30.927, 30.928, 30.929, 30.930,

190-14   30.931, 30.932, 30.933, 30.934, 30.935, and 30.936, Government

190-15   Code, are renumbered as Sections 30.01171, 30.01172, 30.01173,

190-16   30.01174, 30.01175, 30.01176, 30.01177, 30.01178, 30.01179,

190-17   30.01180, 30.01181, 30.01182, 30.01183, 30.01184, 30.01185,

190-18   30.01186, 30.01187, 30.01188, 30.01189, 30.01190, and 30.01191,

190-19   Government Code, respectively.

190-20         SECTION 8.34.  Subchapter Y, Chapter 30, Government Code, is

190-21   relettered as Subchapter FF, Chapter 30, Government Code, and

190-22   Sections 30.981, 30.982, 30.983, 30.984, 30.985, 30.986, 30.987,

190-23   30.988, 30.989, 30.990, 30.991, 30.992, 30.993, 30.994, 30.995,

190-24   30.996, 30.997, 30.998, 30.999, 30.9991, 30.9992, 30.9993, and

 191-1   30.9994, Government Code, are renumbered as Sections 30.01211,

 191-2   30.01212, 30.01213, 30.01214, 30.01215, 30.01216, 30.01217,

 191-3   30.01218, 30.01219, 30.01220, 30.01221, 30.01222, 30.01223,

 191-4   30.01224, 30.01225, 30.01226, 30.01227, 30.01228, 30.01229,

 191-5   30.01230, 30.01231, 30.01232, and 30.01233, Government Code,

 191-6   respectively.

 191-7         SECTION 8.35.  If the number, letter, or designation assigned

 191-8   by this article conflicts with a number, letter, or designation

 191-9   assigned by another Act of the 75th Legislature, the other Act

191-10   controls, and the number, letter, or designation assigned by this

191-11   article has no effect.

191-12             ARTICLE 9.  CHANGES RELATING TO JUDICIAL TITLE,

191-13                             GOVERNMENT CODE

191-14         SECTION 9.01.  Section 62.106, Government Code, is amended to

191-15   correct a reference to read as follows:

191-16         Sec. 62.106.  Exemption From Jury Service.  A person

191-17   qualified to serve as a petit juror may establish an exemption from

191-18   jury service if he:

191-19               (1)  is over 65 years of age;

191-20               (2)  has legal custody of a child or children younger

191-21   than 10 years of age and his service on the jury requires leaving

191-22   the child or children without adequate supervision;

191-23               (3)  is a student of a public or private secondary

191-24   school;

 192-1               (4)  is a person enrolled and in actual attendance at

 192-2   an institution of higher education;

 192-3               (5)  is an officer or an employee of the senate, the

 192-4   house of representatives, or any department, commission, board,

 192-5   office, or other agency in the legislative branch of state

 192-6   government;

 192-7               (6)  is summoned for service in a county with a

 192-8   population of at least 200,000, unless that county uses a jury plan

 192-9   under Section 62.011 and the period authorized under Section

192-10   62.011(b)(5) [62.011(b)(6)] exceeds two years, and he has served as

192-11   a petit juror in the county during the 24-month period preceding

192-12   the date he is to appear for jury service; or

192-13               (7)  is the primary caretaker of a person who is an

192-14   invalid unable to care for himself.

192-15         SECTION 9.02.  (a) Section 76.003(b), Government Code, is

192-16   amended to conform to Section 1, Chapter 266, Acts of the 74th

192-17   Legislature, Regular Session, 1995, to read as follows:

192-18         (b)  A council should consist of the following persons or

192-19   their designees:

192-20               (1)  a sheriff of a county served by the department,

192-21   chosen by the sheriffs of the counties to be served by the

192-22   department;

192-23               (2)  a county commissioner or a county judge from a

192-24   county served by the department, chosen by the county commissioners

 193-1   and county judges of the counties served by the department;

 193-2               (3)  a city council member of the most populous

 193-3   municipality in a county served by the department, chosen by the

 193-4   members of the city councils of cities served by the department;

 193-5               (4)  not more than two state legislators elected from a

 193-6   county served by the department, or in a county with a population

 193-7   of one million or more to be served by the department, not more

 193-8   than one state senator and one state representative elected from

 193-9   the county, chosen by the state legislators elected from the county

193-10   or counties served by the department;

193-11               (5)  the presiding judge from a judicial district

193-12   served by the department, chosen by the district judges from the

193-13   judicial districts served by the department;

193-14               (6)  a judge of a statutory county court exercising

193-15   criminal jurisdiction in a county served by the department, chosen

193-16   by the judges of statutory county courts with criminal jurisdiction

193-17   in the counties served by the department;

193-18               (7)  a county attorney with criminal jurisdiction from

193-19   a county served by the department, chosen by the county attorneys

193-20   with criminal jurisdiction from the counties served by the

193-21   department;

193-22               (8)  a district attorney or criminal district attorney

193-23   from a judicial district served by the department, chosen by the

193-24   district attorneys or criminal district attorneys from the judicial

 194-1   districts served by the department;  and

 194-2               (9)  an elected member of the board of trustees of an

 194-3   independent school district in a county served by the department,

 194-4   chosen by the members of the boards of trustees of independent

 194-5   school districts located in counties served by the department.

 194-6         (b)  Chapter 266, Acts of the 74th Legislature, Regular

 194-7   Session, 1995, is repealed.

 194-8         SECTION 9.03.  (a) Section 76.003(c), Government Code, is

 194-9   amended to conform to Section 1, Chapter 185, Acts of the 74th

194-10   Legislature, Regular Session, 1995, to read as follows:

194-11         (c)  The community justice council shall appoint a community

194-12   justice task force to provide support staff for the development of

194-13   a community justice plan.  The task force may consist of any number

194-14   of members, but should include:

194-15               (1)  the county or regional director of the Texas

194-16   Department of Human Services with responsibility for the area

194-17   served by the department;

194-18               (2)  the chief of police of the most populous

194-19   municipality served by the department;

194-20               (3)  the chief juvenile probation officer of the

194-21   juvenile probation office serving the most populous area served by

194-22   the department;

194-23               (4)  the superintendent of the most populous school

194-24   district served by the department;

 195-1               (5)  the supervisor of the Department of Public Safety

 195-2   region closest to the department, or the supervisor's designee;

 195-3               (6)  the county or regional director of the Texas

 195-4   Department of Mental Health and Mental Retardation with

 195-5   responsibility for the area served by the department;

 195-6               (7)  a substance abuse treatment professional appointed

 195-7   by the Council of Governments serving the area served by the

 195-8   department;

 195-9               (8)  the department director;

195-10               (9)  the local or regional representative of the

195-11   pardons and paroles division of the Texas Department of Criminal

195-12   Justice with responsibility for the area served by the department;

195-13               (10)  the representative of the Texas Workforce

195-14   [Employment] Commission with responsibility for the area served by

195-15   the department;

195-16               (11)  the representative of the Texas Rehabilitation

195-17   Commission with responsibility for the area served by the

195-18   department;

195-19               (12)  a licensed attorney who practices in the area

195-20   served by the department and whose practice consists primarily of

195-21   criminal law;

195-22               (13)  a court administrator, if one serves the area

195-23   served by the department;

195-24               (14)  a representative of a community service

 196-1   organization that provides adult treatment, educational, or

 196-2   vocational services to the area served by the department; [and]

 196-3               (15)  a representative of an organization in the area

 196-4   served by the department that is actively involved in issues

 196-5   relating to defendants' rights, chosen by the county commissioners

 196-6   and county judges of the counties served by the department; and

 196-7               (16)  an advocate for rights of victims of crime and

 196-8   awareness of issues affecting victims.

 196-9         (b)  Chapter 185, Acts of the 74th Legislature, Regular

196-10   Session, 1995, is repealed.

196-11         SECTION 9.04.  (a) Section 76.013, Government Code, is

196-12   amended to conform to Section 3.014, Chapter 321, Acts of the 74th

196-13   Legislature, Regular Session, 1995, to read as follows:

196-14         Sec. 76.013. RESTITUTION.        (a)  If a judge requires a

196-15   defendant to make restitution to a victim of the defendant's

196-16   offense, and a payment is received by a department from the

196-17   defendant for transmittal to a victim of the offense, the

196-18   department that receives the payment for disbursement to the victim

196-19   shall immediately deposit the payment in an interest-bearing

196-20   account in the county treasury as required by Section 140.003(f),

196-21   Local Government Code [department having original jurisdiction].

196-22   The department shall transmit the payment to the victim as soon as

196-23   practicable.

196-24         (b)  If a victim cannot be located for receipt of [,

 197-1   immediately after receiving] a [final] payment in  satisfaction of

 197-2   an order of restitution [for the victim] the department shall

 197-3   attempt to notify the victim of that fact by certified  mail,

 197-4   mailed to the last known address of the victim.  If a victim then

 197-5   makes a claim for payment, the department promptly shall remit the

 197-6   payment to the victim.  A department is obligated to make a good

 197-7   faith effort to locate and notify a victim that an unclaimed

 197-8   payment exists.  The department satisfies the good faith

 197-9   requirement under this subsection by sending to the victim by

197-10   certified mail on any one occasion during the period the defendant

197-11   is required to make payments a notice that the victim is entitled

197-12   to an unclaimed payment.  Not earlier than the fifth anniversary of

197-13   the date on which the department mails notice under this

197-14   subsection, if the victim has not made a claim for payment, the

197-15   department shall transfer the payment from the interest-bearing

197-16   account to the comptroller, after deducting five percent of the

197-17   payment as a collection fee and deducting any interest accrued on

197-18   the payment.  The comptroller shall deposit the payment in the

197-19   state treasury to the credit of the compensation to victims of

197-20   crime auxiliary fund.

197-21         (c)  The collection fee under Subsection (b) and the accrued

197-22   interest under Subsections (a) and (b) shall be deposited in the

197-23   special fund of the county treasury provided by Section 509.011[,

197-24   Government Code,] to be used for the same purposes for which state

 198-1   aid may be used under that section.  The department has a maximum

 198-2   of 121 days after the five-year [four-year] expiration date to

 198-3   transfer the funds to the comptroller's office.  Failure to comply

 198-4   with the 121-day deadline will result in a five percent collection

 198-5   fee penalty calculated from the total deposit and all interest

 198-6   attributable to the unclaimed funds.

 198-7         (d)  If the victim of the offense claims the payment during

 198-8   the five-year [four-year] period in which the payment is held in

 198-9   the interest-bearing account, the department shall pay the victim

198-10   the amount of the original payment, less any interest earned while

198-11   holding the payment.  After the payment has been transferred to the

198-12   comptroller, the department has no liability in regard to the

198-13   payment, and any claim for the payment must be made to the

198-14   comptroller.  If the victim makes a claim to the comptroller, the

198-15   comptroller shall pay the victim the amount of the original

198-16   payment, less the collection fee, from the compensation to victims

198-17   of crime auxiliary fund.

198-18         (b)  Section 3.014, Chapter 321, Acts of the 74th

198-19   Legislature, Regular Session, 1995, is repealed.

198-20         SECTION 9.05.  (a) Sections 76.014(a) and (c), Government

198-21   Code, are amended to conform to Section 5, Chapter 611, Acts of the

198-22   74th Legislature, Regular Session, 1995, to read as follows:

198-23         (a)  A department, with the assistance of the Texas Workforce

198-24   Commission, the Council on Workforce and Economic Competitiveness,

 199-1   local workforce development boards  [public school districts,

 199-2   community and public junior colleges, public and private

 199-3   institutions of higher education], and other appropriate public and

 199-4   private entities, may establish a developmental program for a

 199-5   defendant under the supervision of the department on the basis of

 199-6   information obtained in the presentence investigation report

 199-7   prepared for the defendant.

 199-8         (c)  To decrease expenditures by departments for the

 199-9   educational and vocational skills assessment and enhancement

199-10   program established under this section, the Texas Department of

199-11   Commerce shall provide information to departments, the Texas

199-12   Workforce Commission, the Council on Workforce and Economic

199-13   Competitiveness, local workforce development boards [public school

199-14   districts, community and public junior colleges, public and private

199-15   institutions of higher education], and other appropriate public and

199-16   private entities for obtaining financial assistance through

199-17   programs under Chapter 301, Labor Code, and other applicable

199-18   programs of public or private entities.

199-19         (b)  Section 5, Chapter 611, Acts of the 74th Legislature,

199-20   Regular Session, 1995, is repealed.

199-21         SECTION 9.06.  Section 14, Article 42.131, Code of Criminal

199-22   Procedure, as renumbered by Section 17.01(3), Chapter 76, Acts of

199-23   the 74th Legislature, Regular Session, 1995, is repealed to conform

199-24   to the transfer of Article 42.131, Code of Criminal Procedure, to

 200-1   Chapter 76, Government Code.

 200-2         SECTION 9.07.  (a)  Chapter 76, Government Code, is amended

 200-3   to conform to Section 1, Chapter 217, Acts of the 74th Legislature,

 200-4   Regular Session, 1995, by adding Section 76.015 to read as follows:

 200-5         Sec. 76.015.  ADMINISTRATIVE FEE.  (a) A department may

 200-6   collect money from an individual as ordered by a court served by

 200-7   the department regardless of whether the individual is under the

 200-8   department's supervision.

 200-9         (b)  A department that collects money under this section

200-10   shall promptly transfer the money collected to the appropriate

200-11   county or state officer.

200-12         (c)  A department may assess a reasonable administrative fee

200-13   on an individual who participates in a department program or

200-14   receives department services and who is not paying a monthly fee

200-15   under Section 19, Article 42.12, Code of Criminal Procedure.

200-16         (d)  This section applies only to a county with a population

200-17   of 2.8 million or more.

200-18         (b)  Section 1, Chapter 217, Acts of the 74th Legislature,

200-19   Regular Session, 1995, is repealed.

200-20         SECTION 9.08.  (a) Chapter 76, Government Code, is amended to

200-21   conform to Section 1, Chapter 252, Acts of the 74th Legislature,

200-22   Regular Session, 1995, by adding Section 76.016 to read as follows:

200-23         Sec. 76.016.  VICTIM NOTIFICATION.  (a) A department, using

200-24   the name and address provided by the attorney representing the

 201-1   state under Article 56.08(d), Code of Criminal Procedure, shall

 201-2   make a reasonable effort to notify a victim of the defendant's

 201-3   crime or, if the victim has a guardian or is deceased, to notify

 201-4   the guardian of the victim or close relative of the deceased victim

 201-5   of:

 201-6               (1)  the fact that the defendant has been placed on

 201-7   community supervision;

 201-8               (2)  the conditions of community supervision imposed on

 201-9   the defendant by the court;  and

201-10               (3)  the date, time, and location of any hearing or

201-11   proceeding at which the conditions of the defendant's community

201-12   supervision may be modified or the defendant's placement on

201-13   community supervision may be revoked or terminated.

201-14         (b)  An attempt by the department to give notice to the

201-15   victim, the guardian of the victim, or a close relative of a

201-16   deceased victim at the victim's, the guardian of the victim's, or a

201-17   close relative of a deceased victim's last known telephone number

201-18   or address as shown on the records of the department constitutes a

201-19   reasonable attempt to give notice under this section.

201-20         (c)  In this section, "close relative of a deceased victim,"

201-21   "guardian of a victim," and "victim" have the meanings assigned by

201-22   Article 56.01, Code of Criminal Procedure.

201-23         (b)  Section 1, Chapter 252, Acts of the 74th Legislature,

201-24   Regular Session, 1995, is repealed.

 202-1         SECTION 9.09.  (a)  Chapter 76, Government Code, is amended

 202-2   to conform to Section 3.0151, Chapter 321, Acts of the 74th

 202-3   Legislature, Regular Session, 1995, by adding Section 76.017 to

 202-4   read as follows:

 202-5         Sec. 76.017.  TREATMENT ALTERNATIVE TO INCARCERATION PROGRAM.

 202-6   (a)  A department may establish a treatment alternative to

 202-7   incarceration program in each county served by the department

 202-8   according to standards adopted by the division.  A department may

 202-9   enter into an interlocal cooperation agreement with one or more

202-10   other departments in order to establish this program on a regional

202-11   basis.

202-12         (b)  The program must:

202-13               (1)  include automatic screening and assessment of a

202-14   person arrested for an offense, other than a Class C misdemeanor,

202-15   in which an element of the offense is the use or possession of

202-16   alcohol or the use, possession, or sale of a controlled substance

202-17   or marihuana;

202-18               (2)  include automatic screening and assessment of a

202-19   person arrested for an offense, other than a Class C misdemeanor,

202-20   in which the use of alcohol or drugs is suspected to have

202-21   significantly contributed to the offense for which the individual

202-22   has been arrested;

202-23               (3)  coordinate the screening, assessment, and referral

202-24   to treatment services;  and

 203-1               (4)  make referrals for the appropriate treatment of a

 203-2   person determined to be in need of treatment.

 203-3         (c)  A program administered under this section must use a

 203-4   screening and assessment procedure developed or approved by the

 203-5   division.

 203-6         (d)  After a person is screened and assessed, a

 203-7   representative of the department shall meet with the participating

 203-8   criminal justice and treatment agencies to review the person's case

 203-9   and  to determine if the person should be referred for treatment.

203-10   If a person is considered appropriate for referral, the person may

203-11   be referred to community-based treatment in accordance with

203-12   applicable law or any other treatment program deemed appropriate.

203-13   A magistrate may order a person to participate in a treatment

203-14   program recommended under this section as a condition of bond or

203-15   condition of pretrial release.

203-16         (e)  A department may contract for the provision of treatment

203-17   services.  The department may pay for services only if other

203-18   adequate public or private sources of payment are not available.  A

203-19   person is responsible for the payment of any treatment program

203-20   recommended under this section if it is determined that a person

203-21   referred for treatment is able to pay for the costs of treatment or

203-22   if the person has insurance that will pay for the treatment.  If a

203-23   person is able to pay for treatment or if the person has insurance

203-24   that will pay for the treatment, the payment may be made a

 204-1   condition for receiving treatment.

 204-2         (f)  An employee of a department or treatment provider either

 204-3   administering this program or providing services under this section

 204-4   may exchange or otherwise disclose information regarding the

 204-5   assessment, evaluation, or treatment of a person participating in

 204-6   this program to:

 204-7               (1)  another employee of the department;

 204-8               (2)  an officer in the court that has jurisdiction over

 204-9   the person's case;

204-10               (3)  a county sheriff or jail administrator;

204-11               (4)  an employee of the Texas Department of Criminal

204-12   Justice; or

204-13               (5)  any employee in a facility, institution, or

204-14   halfway house in which a person may be confined in accordance with

204-15   a disposition of the criminal charges in the case.

204-16         (b)  Section 3.0151, Chapter 321, Acts of the 74th

204-17   Legislature, Regular Session, 1995, is repealed.

204-18             ARTICLE 10.  CHANGES RELATING TO PROVISIONS FOR

204-19          THE LICENSING OF PERSONS TO CARRY A CONCEALED HANDGUN

204-20         SECTION 10.01.  (a)  Chapter 411, Government Code, is amended

204-21   to codify Article 4413(29ee), Revised Statutes, by adding

204-22   Subchapter H to read as follows:

204-23           SUBCHAPTER H.  LICENSE TO CARRY A CONCEALED HANDGUN

204-24         Sec. 411.171.  DEFINITIONS.  In this subchapter:

 205-1               (1)  "Action" means single action, revolver, or

 205-2   semi-automatic action.

 205-3               (2)  "Chemically dependent person" means a person who

 205-4   frequently or repeatedly becomes intoxicated by excessive

 205-5   indulgence in alcohol or uses controlled substances or dangerous

 205-6   drugs so as to acquire a fixed habit and an involuntary tendency to

 205-7   become intoxicated or use those substances as often as the

 205-8   opportunity is presented.

 205-9               (3)  "Concealed handgun" means a handgun, the presence

205-10   of which is not openly discernible to the ordinary observation of a

205-11   reasonable person.

205-12               (4)  "Convicted" means an adjudication of guilt or an

205-13   order of deferred adjudication entered against a person by a court

205-14   of competent jurisdiction whether or not:

205-15                     (A)  the imposition of the sentence is

205-16   subsequently probated and the person is discharged from community

205-17   supervision; or

205-18                     (B)  the person is pardoned for the offense,

205-19   unless the pardon is expressly granted for subsequent proof of

205-20   innocence.

205-21               (5)  "Handgun" has the meaning assigned by Section

205-22   46.01, Penal Code.

205-23               (6)  "Intoxicated" has the meaning assigned by Section

205-24   49.01, Penal Code.

 206-1               (7)  "Qualified handgun instructor" means a person who

 206-2   is certified to instruct in the use of handguns by the department.

 206-3               (8)  "Unsound mind" means the mental condition of a

 206-4   person who:

 206-5                     (A)  has been adjudicated mentally incompetent,

 206-6   mentally ill, or not guilty of a criminal offense by reason of

 206-7   insanity;

 206-8                     (B)  has been diagnosed by a licensed physician

 206-9   as being characterized by a mental disorder or infirmity that

206-10   renders the person incapable of managing the person's self or the

206-11   person's affairs, unless the person furnishes a certificate from a

206-12   licensed physician stating that the person is no longer disabled or

206-13   under any medication for the treatment of a mental or psychiatric

206-14   disorder; or

206-15                     (C)  has been diagnosed by a licensed physician

206-16   as suffering from depression, manic depression, or post-traumatic

206-17   stress syndrome, unless the person furnishes a certificate from a

206-18   licensed physician stating that the person is no longer disabled or

206-19   under any medication for the treatment of a mental or psychiatric

206-20   disorder.

206-21         Sec. 411.172.  ELIGIBILITY.  (a)  A person is eligible for a

206-22   license to carry a concealed handgun if the person:

206-23               (1)  is a legal resident of this state for the

206-24   six-month period preceding the date of application under this

 207-1   subchapter;

 207-2               (2)  is at least 21 years of age;

 207-3               (3)  has not been convicted of a felony;

 207-4               (4)  is not charged with the commission of a Class A or

 207-5   Class B misdemeanor or an offense under Section 42.01, Penal Code,

 207-6   or of a felony under an information or indictment;

 207-7               (5)  is not a fugitive from justice for a felony or a

 207-8   Class A or Class B misdemeanor;

 207-9               (6)  is not a chemically dependent person;

207-10               (7)  is not a person of unsound mind;

207-11               (8)  has not, in the five years preceding the date of

207-12   application, been convicted of a Class A or Class B misdemeanor or

207-13   an offense under Section 42.01, Penal Code;

207-14               (9)  is fully qualified under applicable federal and

207-15   state law to purchase a handgun;

207-16               (10)  has not been finally determined to be delinquent

207-17   in making a child support payment administered or collected by the

207-18   attorney general;

207-19               (11)  has not been finally determined to be delinquent

207-20   in the payment of a tax or other money collected by the

207-21   comptroller, the tax collector of a political subdivision of the

207-22   state, or any agency or subdivision of the state;

207-23               (12)  has not been finally determined to be in default

207-24   on a loan made under Chapter 57, Education Code;

 208-1               (13)  is not currently restricted under a court

 208-2   protective order or subject to a restraining order affecting the

 208-3   spousal relationship, other than a restraining order solely

 208-4   affecting property interests;

 208-5               (14)  has not, in the 10 years preceding the date of

 208-6   application, been adjudicated as having engaged in delinquent

 208-7   conduct violating a penal law of the grade of felony; and

 208-8               (15)  has not made any material misrepresentation, or

 208-9   failed to disclose any material fact, in an application submitted

208-10   pursuant to Section 411.174 or in a request for application

208-11   submitted pursuant to Section 411.175.

208-12         (b)  For the purposes of this section, an offense under the

208-13   laws of this state, another state, or the United States is:

208-14               (1)  a felony if the offense is so designated by law or

208-15   if confinement for one year or more in a penitentiary is affixed to

208-16   the offense as a possible punishment; and

208-17               (2)  a Class A misdemeanor if the offense is not a

208-18   felony and confinement in a jail other than a state jail felony

208-19   facility is affixed as a possible punishment.

208-20         (c)  An individual who has been convicted two times within

208-21   the 10-year period preceding the date on which the person applies

208-22   for a license of an offense of the grade of Class B misdemeanor or

208-23   greater that involves the use of alcohol or a controlled substance

208-24   as a statutory element of the offense is a chemically dependent

 209-1   person for purposes of this section and is not qualified to receive

 209-2   a license under this subchapter.  This subsection does not preclude

 209-3   the disqualification of an individual for being a chemically

 209-4   dependent person if other evidence exists to show that the person

 209-5   is a chemically dependent person.

 209-6         Sec. 411.173.  RECIPROCAL LICENSE.  On application by a

 209-7   person who has a valid license to carry a concealed handgun issued

 209-8   by another state, the department may issue to the person a license

 209-9   under this subchapter without requiring that the person meet

209-10   eligibility requirements or pay fees otherwise imposed under this

209-11   subchapter, but only if the department determines that:

209-12               (1)  the eligibility requirements imposed by the other

209-13   state are at least as rigorous as the requirements imposed by this

209-14   subchapter; and

209-15               (2)  the other state provides reciprocal licensing

209-16   privileges to a person who holds a license issued under this

209-17   subchapter and applies for a license in the other state.

209-18         Sec. 411.174.  APPLICATION.  (a)  An applicant for a license

209-19   to carry a concealed handgun must submit to the director's designee

209-20   described by Section 411.176:

209-21               (1)  a completed application on a form provided by the

209-22   department that requires only the information listed in Subsection

209-23   (b);

209-24               (2)  two recent color passport photographs of the

 210-1   applicant;

 210-2               (3)  a certified copy of the applicant's birth

 210-3   certificate or certified proof of age;

 210-4               (4)  proof of residency in this state;

 210-5               (5)  two complete sets of legible and classifiable

 210-6   fingerprints of the applicant taken by a person employed by a law

 210-7   enforcement agency who is appropriately trained in recording

 210-8   fingerprints;

 210-9               (6)  a nonrefundable application and license fee of

210-10   $140 paid to the department;

210-11               (7)  a handgun proficiency certificate described by

210-12   Section 411.189;

210-13               (8)  an affidavit signed by the applicant stating that

210-14   the applicant:

210-15                     (A)  has read and understands each provision of

210-16   this subchapter that creates an offense under the laws of this

210-17   state and each provision of the laws of this state related to use

210-18   of deadly force; and

210-19                     (B)  fulfills all the eligibility requirements

210-20   listed under Section 411.172; and

210-21               (9)  a form executed by the applicant that authorizes

210-22   the director to make an inquiry into any noncriminal history

210-23   records that are necessary to determine the applicant's eligibility

210-24   for a license under Section 411.172(a).

 211-1         (b)  An applicant must provide on the application a statement

 211-2   of the applicant's:

 211-3               (1)  full name and place and date of birth;

 211-4               (2)  race and sex;

 211-5               (3)  residence and business addresses for the preceding

 211-6   five years;

 211-7               (4)  hair and eye color;

 211-8               (5)  height and weight;

 211-9               (6)  driver's license number or identification

211-10   certificate number issued by the department;

211-11               (7)  criminal history record information of the type

211-12   maintained by the department under this chapter, including a list

211-13   of offenses for which the applicant was arrested, charged, or under

211-14   an information or indictment and the disposition of the offenses;

211-15   and

211-16               (8)  history during the preceding five years, if any,

211-17   of treatment received by, commitment to, or residence in:

211-18                     (A)  a drug or alcohol treatment center licensed

211-19   to provide drug or alcohol treatment under the laws of this state

211-20   or another state; or

211-21                     (B)  a psychiatric hospital.

211-22         (c)  The department shall distribute on request a copy of

211-23   this subchapter and application materials.

211-24         Sec. 411.175.  REQUEST FOR APPLICATION MATERIALS.  (a)  A

 212-1   person applying for a license to carry a concealed handgun must

 212-2   apply by obtaining a request for application materials from a

 212-3   handgun dealer, the department, or any other person or entity

 212-4   approved by the department.  The request for application materials

 212-5   must include the applicant's full name, address, race, sex, height,

 212-6   date of birth, and driver's license number and such other

 212-7   identifying information as required by department rule.  The

 212-8   department shall prescribe the form of the request and make the

 212-9   form available to interested parties.  An individual who desires to

212-10   receive application materials must complete the request for

212-11   application materials and forward it to the department at its

212-12   Austin address.  The department shall review all requests for

212-13   application materials and make a preliminary determination as to

212-14   whether or not the individual is qualified to receive a handgun

212-15   license.  If an individual is not disqualified to receive a handgun

212-16   license, the department shall forward to the individual the

212-17   appropriate application materials.  The applicant must complete the

212-18   application materials and forward the completed materials to the

212-19   department at its Austin address.

212-20         (b)  If a preliminary review indicates that an individual

212-21   will not be qualified to receive a handgun license, the department

212-22   shall send written notification to that individual.  The notice

212-23   shall provide the reason that the preliminary review indicates that

212-24   the individual is not entitled to receive a handgun license.  The

 213-1   department shall give the individual an opportunity to correct

 213-2   whatever defect may exist.

 213-3         Sec. 411.176.  REVIEW OF APPLICATION MATERIALS.  (a)  On

 213-4   receipt of the application materials by the department at its

 213-5   Austin headquarters, the department shall conduct the appropriate

 213-6   criminal history record check of the applicant through its

 213-7   computerized criminal history system.  Not later than the 30th day

 213-8   after the date the department receives the application materials,

 213-9   the department shall forward the materials to the director's

213-10   designee in the geographical area of the applicant's residence so

213-11   that the designee may conduct the investigation described by

213-12   Subsection (b).

213-13         (b)  The director's designee as needed shall conduct an

213-14   additional criminal history record check of the applicant and an

213-15   investigation of the applicant's local official records to verify

213-16   the accuracy of the application materials.  The scope of the record

213-17   check and the investigation are at the sole discretion of the

213-18   department.  The department shall send a fingerprint card to the

213-19   Federal Bureau of Investigation for a national criminal history

213-20   check of the applicant.  On completion of the investigation, the

213-21   director's designee shall return all materials and the result of

213-22   the investigation to the appropriate division of the department at

213-23   its Austin headquarters.  The director's designee may submit to the

213-24   appropriate division of the department, at the department's Austin

 214-1   headquarters, along with the application materials a written

 214-2   recommendation for disapproval of the application, accompanied by

 214-3   an affidavit stating personal knowledge or naming persons with

 214-4   personal knowledge of a ground for denial under Section 411.172.

 214-5   The director's designee in the appropriate geographical area may

 214-6   also submit the application and the recommendation that the license

 214-7   be issued.

 214-8         Sec. 411.177.  ISSUANCE OR DENIAL OF LICENSE.  (a)  The

 214-9   department shall issue a license to carry a concealed handgun to an

214-10   applicant if the applicant meets all the eligibility requirements

214-11   and submits all the application materials.  The department may

214-12   issue a license to carry handguns only of the categories indicated

214-13   on the applicant's certificate of proficiency issued under Section

214-14   411.189.   The department shall administer the licensing procedures

214-15   in good faith so that any applicant who meets all the eligibility

214-16   requirements and submits all the application materials shall

214-17   receive a license.  The department may not deny an application on

214-18   the basis of a capricious or arbitrary decision by the department.

214-19         (b)  The department, not later than the 60th day after the

214-20   date of the receipt by the director's designee of the completed

214-21   application materials, shall:

214-22               (1)  issue the license; or

214-23               (2)  notify the applicant in writing that the

214-24   application was denied:

 215-1                     (A)  on the grounds that the applicant failed to

 215-2   qualify under the criteria listed in Section 411.172;

 215-3                     (B)  based on the affidavit of the director's

 215-4   designee submitted to the department under Section 411.176(b); or

 215-5                     (C)  based on the affidavit of the qualified

 215-6   handgun instructor submitted to the department under Section

 215-7   411.189(c).

 215-8         (c)  Failure of the department to issue or deny a license for

 215-9   a period of more than 30 days after the department is required to

215-10   act under Subsection (b) constitutes denial.

215-11         (d)  A license issued under this subchapter is effective from

215-12   the date of issuance.

215-13         Sec. 411.178.  NOTICE TO LOCAL LAW ENFORCEMENT.  If the

215-14   department issues a license, the department shall notify the

215-15   sheriff of the county in which the license holder resides that a

215-16   license has been issued to the license holder.  On request of a

215-17   local law enforcement agency, the department shall notify the

215-18   agency of the licenses that have been issued to license holders who

215-19   reside in the county in which the agency is located.

215-20         Sec. 411.179.  FORM OF LICENSE.  (a)  The department by rule

215-21   shall adopt the form of the license.  A license must include:

215-22               (1)  a number assigned to the license holder by the

215-23   department;

215-24               (2)  a statement of the period for which the license is

 216-1   effective;

 216-2               (3)  a statement of the category or categories of

 216-3   handguns the license holder may carry as provided by Subsection

 216-4   (b);

 216-5               (4)  a color photograph of the license holder; and

 216-6               (5)  the license holder's full name, date of birth,

 216-7   residence address, hair and eye color, height, weight, signature,

 216-8   and the number of a driver's license or an identification

 216-9   certificate issued to the license holder by the department.

216-10         (b)  A category of handguns contains handguns that are not

216-11   prohibited by law and are of certain actions.  The categories of

216-12   handguns are:

216-13               (1)  SA:  any handguns, whether semi-automatic or not;

216-14   and

216-15               (2)  NSA:  handguns that are not semi-automatic.

216-16         Sec. 411.180.  NOTIFICATION OF DENIAL, REVOCATION, OR

216-17   SUSPENSION OF LICENSE; REVIEW.  (a)  The department shall give

216-18   written notice to each applicant for a handgun license of any

216-19   denial, revocation, or suspension of that license.  Not later than

216-20   the 30th day after the notice is received by the applicant,

216-21   according to the records of the department, the applicant or

216-22   license holder may request a hearing on the denial, revocation, or

216-23   suspension.  The applicant must make a written request for a

216-24   hearing addressed to the department at its Austin address.  The

 217-1   request for hearing must reach the department in Austin prior to

 217-2   the 30th day after the date of receipt of the written notice.  On

 217-3   receipt of a request for hearing from a license holder or

 217-4   applicant, the department shall promptly schedule a hearing in the

 217-5   appropriate justice court in the county of residence of the

 217-6   applicant or license holder.  The justice court shall conduct a

 217-7   hearing to review the denial, revocation, or suspension of the

 217-8   license.  In a proceeding under this section, a justice of the

 217-9   peace shall act as an administrative hearing officer.  A hearing

217-10   under this section is not subject to Chapter 2001 (Administrative

217-11   Procedure Act).  A district attorney or county attorney, the

217-12   attorney general, or a designated member of the department may

217-13   represent the department.

217-14         (b)  The department, on receipt of a request for hearing,

217-15   shall file the appropriate petition in the justice court selected

217-16   for the hearing and send a copy of that petition to the applicant

217-17   or license holder at the address contained in departmental records.

217-18   A hearing under this section must be scheduled within 30 days of

217-19   receipt of the request for a hearing.  The hearing shall be held

217-20   expeditiously but in no event more than 60 days after the date that

217-21   the applicant or license holder requested the hearing.  The date of

217-22   the hearing may be reset on the motion of either party, by

217-23   agreement of the parties, or by the court as necessary to

217-24   accommodate the court's docket.

 218-1         (c)  The justice court shall determine if the denial,

 218-2   revocation, or suspension is supported by a preponderance of the

 218-3   evidence.  Both the applicant or license holder and the department

 218-4   may present evidence.  The court shall affirm the denial,

 218-5   revocation, or suspension if the court determines that denial,

 218-6   revocation, or suspension is supported by a preponderance of the

 218-7   evidence.  If the court determines that the denial, revocation, or

 218-8   suspension is not supported by a preponderance of the evidence, the

 218-9   court shall order the department to immediately issue or return the

218-10   license to the applicant or license holder.

218-11         (d)  A proceeding under this section is subject to Chapter

218-12   105, Civil Practice and Remedies Code, relating to fees, expenses,

218-13   and attorney's fees.

218-14         (e)  A party adversely affected by the court's ruling

218-15   following a hearing under this section may appeal the ruling by

218-16   filing within 30 days after the ruling a petition in a county court

218-17   at law in the county in which the applicant or license holder

218-18   resides or, if there is no county court at law in the county, in

218-19   the county court of the county.  A person who appeals under this

218-20   section must send by certified mail a copy of the person's

218-21   petition, certified by the clerk of the court in which the petition

218-22   is filed, to the appropriate division of the department at its

218-23   Austin headquarters.  The trial on appeal shall be a trial de novo

218-24   without a jury.  A district or county attorney or the attorney

 219-1   general may represent the department.

 219-2         (f)  A suspension of a license may not be probated.

 219-3         (g)  If an applicant or a license holder does not petition

 219-4   the justice court, a denial becomes final and a revocation or

 219-5   suspension takes effect on the 30th day after receipt of written

 219-6   notice.

 219-7         (h)  The department may use and introduce into evidence

 219-8   certified copies of governmental records to establish the existence

 219-9   of certain events that could result in the denial, revocation, or

219-10   suspension of a license under this subchapter, including  records

219-11   regarding convictions, judicial findings regarding mental

219-12   competency, judicial findings regarding chemical dependency, or

219-13   other matters that may be established by governmental records that

219-14   have been properly authenticated.

219-15         Sec. 411.181.  NOTICE OF CHANGE OF ADDRESS OR NAME.  (a)  If

219-16   a person who is a current license holder moves from the address

219-17   stated on the license or if the name of the person is changed by

219-18   marriage or otherwise, the person shall, not later than the 30th

219-19   day after the date of the address or name change, notify the

219-20   department and provide the department with the number of the

219-21   person's license and the person's:

219-22               (1)  former and new addresses; or

219-23               (2)  former and new names.

219-24         (b)  If the name of the license holder is changed by marriage

 220-1   or otherwise, the person shall apply for a duplicate license.

 220-2         (c)  If a license holder moves from the address stated on the

 220-3   license, the person shall apply for a duplicate license.

 220-4         (d)  The department shall charge a license holder a fee of

 220-5   $25 for a duplicate license.

 220-6         (e)  The department shall make the forms available on

 220-7   request.

 220-8         (f)  The department shall notify the sheriff of the county in

 220-9   which a license holder resides of a change made under Subsection

220-10   (a) by the license holder.  On request of a local law enforcement

220-11   agency, the department shall notify the agency of changes made

220-12   under Subsection (a) by license holders who reside in the county in

220-13   which the agency is located.

220-14         (g)  If a license is lost, stolen, or destroyed, the license

220-15   holder shall apply for a duplicate license not later than the 30th

220-16   day after the date of the loss, theft, or destruction of the

220-17   license.

220-18         (h)  If a license holder is required under this section to

220-19   apply for a duplicate license and the license expires not later

220-20   than the 60th day after the date of the loss, theft, or destruction

220-21   of the license, the applicant may renew the license with the

220-22   modified information included on the new license.  The applicant

220-23   must pay only the nonrefundable renewal fee.

220-24         Sec. 411.182.  NOTICE.  (a)  For the purpose of a notice

 221-1   required by this subchapter, the department may assume that the

 221-2   address currently reported to the department by the applicant or

 221-3   license holder is the correct address.

 221-4         (b)  A written notice meets the requirements under this

 221-5   subchapter if the notice is sent by certified mail to the current

 221-6   address reported by the applicant or license holder to the

 221-7   department.

 221-8         (c)  If a notice is returned to the department because the

 221-9   notice is not deliverable, the department may give notice by

221-10   publication once in a newspaper of general interest in the county

221-11   of the applicant's or license holder's last reported address.  On

221-12   the 31st day after the date the notice is published, the department

221-13   may take the action proposed in the notice.

221-14         Sec. 411.183.  EXPIRATION.  (a)  A license issued under this

221-15   subchapter expires on the first birthday of the license holder

221-16   occurring after the fourth anniversary of the date of issuance.

221-17         (b)  A renewed license expires on the license holder's

221-18   birthdate, four years after the date of the expiration of the

221-19   previous license.

221-20         (c)  A duplicate license expires on the date the license that

221-21   was duplicated would have expired.

221-22         (d)  A modified license expires on the date the license that

221-23   was modified would have expired.

221-24         (e)  Notwithstanding Subsection (a), the department by rule

 222-1   may adopt a system to implement staggered and evenly distributed

 222-2   license expiration dates over the four-year period beginning

 222-3   January 1, 1996.  The department may not issue a license that is

 222-4   effective for less than two years.  A license that is effective for

 222-5   less than four years and is renewed expires as provided by

 222-6   Subsection (b).  Notwithstanding Section 411.174(a)(6), the

 222-7   department by rule shall prorate the nonrefundable application and

 222-8   license fee for applicants who receive licenses that are effective

 222-9   for less than four years under this subsection.  This subsection

222-10   expires January 1, 2005.

222-11         Sec. 411.184.  MODIFICATION.  (a)  To modify a license to

222-12   allow a license holder to carry a handgun of a different category

222-13   than the license indicates, the license holder must:

222-14               (1)  complete a proficiency examination as provided by

222-15   Section 411.188(e);

222-16               (2)  obtain a handgun proficiency certificate under

222-17   Section 411.189 not more than six months before the date of

222-18   application for a modified license; and

222-19               (3)  submit to the department:

222-20                     (A)  an application for a modified license on a

222-21   form provided by the department;

222-22                     (B)  a copy of the handgun proficiency

222-23   certificate;

222-24                     (C)  payment of a modified license fee of $25;

 223-1   and

 223-2                     (D)  two recent color passport photographs of the

 223-3   license holder.

 223-4         (b)  The director by rule shall adopt a modified license

 223-5   application form requiring an update of the information on the

 223-6   original completed application.

 223-7         (c)  The department may modify the license of a license

 223-8   holder who meets all the eligibility requirements and submits all

 223-9   the modification materials.  Not later than the 45th day after

223-10   receipt of the modification materials, the department shall issue

223-11   the modified license or notify the license holder in writing that

223-12   the modified license application was denied.

223-13         (d)  On receipt of a modified license, the license holder

223-14   shall return the previously issued license to the department.

223-15         Sec. 411.185.  RENEWAL.  (a)  To renew a license, a license

223-16   holder must:

223-17               (1)  complete a continuing education course in handgun

223-18   proficiency under Section 411.188(c) not more than six months

223-19   before the date of application for renewal;

223-20               (2)  obtain a handgun proficiency certificate under

223-21   Section 411.189 not more than six months before the date of

223-22   application for renewal; and

223-23               (3)  submit to the department:

223-24                     (A)  an application for renewal on a form

 224-1   provided by the department;

 224-2                     (B)  a copy of the handgun proficiency

 224-3   certificate;

 224-4                     (C)  payment of a nonrefundable renewal fee as

 224-5   set by the department; and

 224-6                     (D)  two recent color passport photographs of the

 224-7   applicant.

 224-8         (b)  The director by rule shall adopt a renewal application

 224-9   form requiring an update of the information on the original

224-10   completed application.  The director by rule shall set the renewal

224-11   fee in an amount that is sufficient to cover the actual cost to the

224-12   department to renew a license.  Not later than the 60th day before

224-13   the expiration date of the license, the department shall mail to

224-14   each license holder a written notice of the expiration of the

224-15   license and a renewal form.

224-16         (c)  The department shall renew the license of a license

224-17   holder who meets all the eligibility requirements and submits all

224-18   the renewal materials.  Not later than the 45th day after receipt

224-19   of the renewal materials, the department shall issue the renewal or

224-20   notify the license holder in writing that the renewal application

224-21   was denied.

224-22         (d)  The director by rule shall adopt a procedure by which a

224-23   license holder who satisfies the eligibility criteria may renew a

224-24   license by mail.  The materials for renewal by mail must include a

 225-1   form to be signed and returned to the department by the applicant

 225-2   that describes state law regarding:

 225-3               (1)  the use of deadly force; and

 225-4               (2)  the places where it is unlawful for the holder of

 225-5   a license issued under this subchapter to carry a concealed

 225-6   handgun.

 225-7         Sec. 411.186.  REVOCATION.  (a)  A license may be revoked

 225-8   under this section if the license holder:

 225-9               (1)  was not entitled to the license at the time it was

225-10   issued;

225-11               (2)  gave false information on the application;

225-12               (3)  subsequently becomes ineligible for a license

225-13   under Section 411.172; or

225-14               (4)  is convicted of an offense under Section 46.035,

225-15   Penal Code.

225-16         (b)  If a peace officer believes a reason listed in

225-17   Subsection (a) to revoke a license exists, the officer shall

225-18   prepare an affidavit on a form provided by the department stating

225-19   the reason for the revocation of the license and giving the

225-20   department all of the information available to the officer at the

225-21   time of the preparation of the form.  The officer shall attach the

225-22   officer's reports relating to the license holder to the form and

225-23   send the form and attachments to the appropriate division of the

225-24   department at its Austin headquarters not later than the fifth

 226-1   working day after the date the form is prepared.  The officer shall

 226-2   send a copy of the form and the attachments to the license holder.

 226-3   If the license holder has not surrendered the license or the

 226-4   license was not seized as evidence, the license holder shall

 226-5   surrender the license to the appropriate division of the department

 226-6   not later than the 10th day after the date the license holder

 226-7   receives the notice of revocation from the department, unless the

 226-8   license holder requests a hearing from the department.  The license

 226-9   holder may request that the justice court in the justice court

226-10   precinct in which the license holder resides review the revocation

226-11   as provided by Section 411.180.  If a request is made for the

226-12   justice court to review the revocation and hold a hearing, the

226-13   license holder shall surrender the license on the date an order of

226-14   revocation is entered by the justice court.

226-15         (c)  A license holder whose license is revoked for a reason

226-16   listed in this section may reapply as a new applicant for the

226-17   issuance of a license under this subchapter after the second

226-18   anniversary of the date of the revocation if the cause for

226-19   revocation does not exist on the date of the second anniversary.

226-20   If the cause for revocation exists on the date of the second

226-21   anniversary after the date of revocation, the license holder may

226-22   not apply for a new license until the cause for revocation no

226-23   longer exists and has not existed for a period of two years.

226-24         Sec. 411.187.  SUSPENSION OF LICENSE.  (a)  A license may be

 227-1   suspended under this section if the license holder:

 227-2               (1)  is convicted of disorderly conduct punishable as a

 227-3   Class C misdemeanor under Section 42.01, Penal Code;

 227-4               (2)  fails to display a license as required by Section

 227-5   411.205;

 227-6               (3)  fails to notify the department of a change of

 227-7   address or name as required by Section 411.181;

 227-8               (4)  carries a concealed handgun under the authority of

 227-9   this subchapter of a different category than the license holder is

227-10   licensed to carry;

227-11               (5)  has been charged by indictment with the commission

227-12   of an offense that would make the license holder ineligible for a

227-13   license on conviction; or

227-14               (6)  fails to return a previously issued license after

227-15   a license is modified as required by Section 411.184(d).

227-16         (b)  If a peace officer believes a reason listed in

227-17   Subsection (a) to suspend a license exists, the officer shall

227-18   prepare an affidavit on a form provided by the department stating

227-19   the reason for the suspension of the license and giving the

227-20   department all of the information available to the officer at the

227-21   time of the preparation of the form.  The officer shall attach the

227-22   officer's reports relating to the license holder to the form and

227-23   send the form and the attachments to the appropriate division of

227-24   the department at its Austin headquarters not later than the fifth

 228-1   working day after the date the form is prepared.  The officer shall

 228-2   send a copy of the form and the attachments to the license holder.

 228-3   If the license holder has not surrendered the license or the

 228-4   license was not seized as evidence, the license holder shall

 228-5   surrender the license to the appropriate division of the department

 228-6   not later than the 10th day after the date the license holder

 228-7   receives the notice of suspension from the department unless the

 228-8   license holder requests a hearing from the department.  The license

 228-9   holder may request that the justice court in the justice court

228-10   precinct in which the license holder resides review the suspension

228-11   as provided by Section 411.180.  If a request is made for the

228-12   justice court to review the suspension and hold a hearing, the

228-13   license holder shall surrender the license on the date an order of

228-14   suspension is entered by the justice court.

228-15         (c)  A license may be suspended under this section for not

228-16   less than one year and not more than three years.

228-17         Sec. 411.188.  HANDGUN PROFICIENCY REQUIREMENT.  (a)  The

228-18   director by rule shall establish minimum standards for handgun

228-19   proficiency and shall develop a course to teach handgun proficiency

228-20   and examinations to measure handgun proficiency.  The course to

228-21   teach handgun proficiency must contain training sessions divided

228-22   into two parts.  One part of the course must be classroom

228-23   instruction and the other part must be range instruction and an

228-24   actual demonstration by the applicant of the applicant's ability to

 229-1   safely and proficiently use the category of handgun for which the

 229-2   applicant seeks certification.  An applicant may not be certified

 229-3   unless the applicant demonstrates, at a minimum, the degree of

 229-4   proficiency that is required to effectively operate a 9-millimeter

 229-5   or .38-caliber handgun.  The department shall distribute the

 229-6   standards, course requirements, and examinations on request to any

 229-7   qualified handgun instructor.

 229-8         (b)  Only a qualified handgun instructor may administer a

 229-9   handgun proficiency course.  The handgun proficiency course must

229-10   include at least 10 hours and not more than 15 hours of instruction

229-11   on:

229-12               (1)  the laws that relate to weapons and to the use of

229-13   deadly force;

229-14               (2)  handgun use, proficiency, and safety;

229-15               (3)  nonviolent dispute resolution; and

229-16               (4)  proper storage practices for handguns with an

229-17   emphasis on storage practices that eliminate the possibility of

229-18   accidental injury to a child.

229-19         (c)  The department by rule shall develop a continuing

229-20   education course in handgun proficiency for a license holder who

229-21   wishes to renew a license.  Only a qualified handgun instructor may

229-22   administer the continuing education course.   The course must

229-23   include:

229-24               (1)  at least four hours of instruction on one or more

 230-1   of the subjects listed in Subsection (b); and

 230-2               (2)  other information the director determines is

 230-3   appropriate.

 230-4         (d)  Only a qualified handgun instructor may administer the

 230-5   proficiency examination to obtain or to renew a license.  The

 230-6   proficiency examination must include:

 230-7               (1)  a written section on the subjects listed in

 230-8   Subsection (b); and

 230-9               (2)  a physical demonstration of proficiency in the use

230-10   of one or more handguns of specific categories and in handgun

230-11   safety procedures.

230-12         (e)  Only a qualified handgun instructor may administer the

230-13   proficiency examination to modify a license.  The proficiency

230-14   examination must include a physical demonstration of the

230-15   proficiency in the use of one or more handguns of specific

230-16   categories and in handgun safety procedures.

230-17         (f)  The department shall develop and distribute directions

230-18   and materials for course instruction, test administration, and

230-19   recordkeeping.  All test results shall be sent to the department,

230-20   and the department shall maintain a record of the results.

230-21         (g)  A person who wishes to obtain or renew a license to

230-22   carry a concealed handgun must apply in person to a qualified

230-23   handgun instructor to take the appropriate course in handgun

230-24   proficiency, demonstrate handgun proficiency, and obtain a handgun

 231-1   proficiency certificate as described by Section 411.189.

 231-2         (h)  A license holder who wishes to modify a license to allow

 231-3   the license holder to carry a handgun of a different category than

 231-4   the license indicates must apply in person to a qualified handgun

 231-5   instructor to demonstrate the required knowledge and proficiency to

 231-6   obtain a handgun proficiency certificate in that category as

 231-7   described by Section 411.189.

 231-8         (i)  A certified firearms instructor of the department may

 231-9   monitor any class or training presented by a qualified handgun

231-10   instructor.  A qualified handgun instructor shall cooperate with

231-11   the department in the department's efforts to monitor the

231-12   presentation of training by the qualified handgun instructor.  A

231-13   qualified handgun instructor shall make available for inspection to

231-14   the department any and all records maintained by a qualified

231-15   handgun instructor under this subchapter.  The qualified handgun

231-16   instructor shall keep a record of all certificates of handgun

231-17   proficiency issued by the qualified handgun instructor and other

231-18   information required by department rule.

231-19         Sec. 411.189.  HANDGUN PROFICIENCY CERTIFICATE.  (a)  The

231-20   department shall develop a sequentially numbered handgun

231-21   proficiency certificate and distribute the certificate to qualified

231-22   handgun instructors who administer the handgun proficiency

231-23   examination described in Section 411.188.  The department by rule

231-24   may set a fee not to exceed $5 to cover the cost of the

 232-1   certificates.

 232-2         (b)  If a person successfully completes the proficiency

 232-3   requirements as described in Section 411.188, the instructor shall

 232-4   endorse a certificate of handgun proficiency provided by the

 232-5   department.  An applicant must successfully complete both classroom

 232-6   and range instruction to receive a certificate.  The certificate

 232-7   must indicate the category of any handgun for which the applicant

 232-8   demonstrated proficiency during the examination.

 232-9         (c)  A qualified handgun instructor may submit to the

232-10   department a written recommendation for disapproval of the

232-11   application for a license, renewal, or modification of a license,

232-12   accompanied by an affidavit stating personal knowledge or naming

232-13   persons with personal knowledge of facts that lead the instructor

232-14   to believe that an applicant is not qualified for handgun

232-15   proficiency certification.

232-16         Sec. 411.190.  QUALIFIED HANDGUN INSTRUCTORS.  (a)  The

232-17   director may certify as a qualified handgun instructor a person

232-18   who:

232-19               (1)  is certified by the Commission on Law Enforcement

232-20   Officer Standards and Education or the Texas Board of Private

232-21   Investigators and Private Security Agencies to instruct others in

232-22   the use of handguns;

232-23               (2)  regularly instructs others in the use of handguns

232-24   and has graduated from a handgun instructor school that uses a

 233-1   nationally accepted course designed to train persons as handgun

 233-2   instructors; or

 233-3               (3)  is certified by the National Rifle Association of

 233-4   America as a handgun instructor.

 233-5         (b)  In addition to the qualifications described by

 233-6   Subsection (a), a qualified handgun instructor must be qualified to

 233-7   instruct persons in:

 233-8               (1)  the laws that relate to weapons and to the use of

 233-9   deadly force;

233-10               (2)  handgun use, proficiency, and safety;

233-11               (3)  nonviolent dispute resolution; and

233-12               (4)  proper storage practices for handguns, including

233-13   storage practices that eliminate the possibility of accidental

233-14   injury to a child.

233-15         (c)  The department shall provide training to an individual

233-16   who applies for certification as a qualified handgun instructor.

233-17   An applicant shall pay a fee of $100 to the department for the

233-18   training.  An applicant must take and successfully complete the

233-19   training offered by the department and pay the training fee before

233-20   the department may certify the applicant as a qualified handgun

233-21   instructor.  The department shall waive the requirements regarding

233-22   a handgun proficiency certification under Section 411.189 for an

233-23   applicant for a license to carry a concealed handgun who takes and

233-24   successfully completes training under this subsection and pays the

 234-1   training fee.  The department by rule may prorate or waive the

 234-2   training fee for an employee of another governmental entity.

 234-3         (d)  The certification of a qualified handgun instructor

 234-4   expires on the second anniversary after the date of certification.

 234-5   To renew a certification, the qualified handgun instructor must pay

 234-6   a fee of $100 and take and successfully complete the retraining

 234-7   courses required by department rule.

 234-8         (e)  After certification, a qualified handgun instructor may

 234-9   conduct training for applicants for a license under this

234-10   subchapter.

234-11         (f)  If the department determines that a reason exists to

234-12   revoke, suspend, or deny a license to carry a concealed handgun

234-13   with respect to a person who is a qualified handgun instructor or

234-14   an applicant for certification as a qualified handgun instructor,

234-15   the department shall take that action against the person's

234-16   certification as a qualified handgun instructor regardless of

234-17   whether the person has a license issued under this subchapter to

234-18   carry a concealed handgun.

234-19         Sec. 411.191.  REVIEW OF DENIAL, REVOCATION, OR SUSPENSION OF

234-20   CERTIFICATION AS QUALIFIED HANDGUN INSTRUCTOR.  The procedures for

234-21   the review of a denial, revocation, or suspension of a license

234-22   under Section 411.180 apply to the review of a denial, revocation,

234-23   or suspension of certification as a qualified handgun instructor.

234-24   The notice provisions of this subchapter relating to denial,

 235-1   revocation, or suspension of handgun licenses apply to the proposed

 235-2   denial, revocation, or suspension of a certification of a qualified

 235-3   handgun instructor or an applicant for certification as a qualified

 235-4   handgun instructor.

 235-5         Sec. 411.192.  CONFIDENTIALITY OF RECORDS.  The department

 235-6   shall disclose to a criminal justice agency information contained

 235-7   in its files and records regarding whether a named individual or

 235-8   any individual named in a specified list is licensed under this

 235-9   subchapter.  The department shall, on written request and payment

235-10   of a reasonable fee to cover costs of copying, disclose to any

235-11   other individual whether a named individual or any individual whose

235-12   full name is listed on a specified written list is licensed under

235-13   this subchapter.  Information on an individual subject to

235-14   disclosure under this section includes the individual's name, date

235-15   of birth, gender, race, and zip code.  Except as otherwise provided

235-16   by this section and by Section 411.193, all other records

235-17   maintained under this subchapter are confidential and are not

235-18   subject to mandatory disclosure under the open records law, Chapter

235-19   552, except that the applicant or license holder may be furnished a

235-20   copy of disclosable records on request and the payment of a

235-21   reasonable fee.  The department shall notify a license holder of

235-22   any request that is made for information relating to the license

235-23   holder under this section and provide the name of the person or

235-24   agency making the request.  This section does not prohibit the

 236-1   department from making public and distributing to the public at no

 236-2   cost lists of individuals who are certified as qualified handgun

 236-3   instructors by the department.

 236-4         Sec. 411.193.  STATISTICAL REPORT.  The department shall make

 236-5   available, on request and payment of a reasonable fee to cover

 236-6   costs of copying, a statistical report that includes the number of

 236-7   licenses issued, denied, revoked, or suspended by the department

 236-8   during the preceding month, listed by age, gender, race, and zip

 236-9   code of the applicant or license holder.

236-10         Sec. 411.194.  REDUCTION OF FEES DUE TO INDIGENCY.

236-11   (a)  Notwithstanding any other provision of this subchapter, the

236-12   department shall reduce by 50 percent any fee required for the

236-13   issuance of an original, duplicate, modified, or renewed license

236-14   under this subchapter if the department determines that the

236-15   applicant is indigent.

236-16         (b)  The department shall require an applicant requesting a

236-17   reduction of a fee to submit proof of indigency with the

236-18   application materials.

236-19         (c)  For purposes of this section, an applicant is indigent

236-20   if the applicant's income is not more than 100 percent of the

236-21   applicable income level established by the federal poverty

236-22   guidelines.

236-23         Sec. 411.195.  REDUCTION OF FEES FOR SENIOR CITIZENS.

236-24   Notwithstanding any other provision of this subchapter, the

 237-1   department shall reduce by 50 percent any fee required for the

 237-2   issuance of an original, duplicate, or modified license under this

 237-3   subchapter if the applicant for the license is 60 years of age or

 237-4   older.

 237-5         Sec. 411.196.  METHOD OF PAYMENT.  A person may pay a fee

 237-6   required by this subchapter only by cashier's check, money order

 237-7   made payable to the "Texas Department of Public Safety," or any

 237-8   other method approved by the department.  A fee received by the

 237-9   department under this subchapter is nonrefundable.

237-10         Sec. 411.197.  RULES.  The director shall adopt rules to

237-11   administer this subchapter.

237-12         Sec. 411.198.  LAW ENFORCEMENT OFFICER ALIAS HANDGUN LICENSE.

237-13   (a)  On written approval of the director, the department may issue

237-14   to a law enforcement officer an alias license to carry a concealed

237-15   handgun to be used in supervised activities involving criminal

237-16   investigations.

237-17         (b)  It is a defense to prosecution under Section 46.035,

237-18   Penal Code, that the actor, at the time of the commission of the

237-19   offense, was the holder of an alias license issued under this

237-20   section.

237-21         Sec. 411.199.  HONORABLY RETIRED PEACE OFFICERS.  (a)  A

237-22   person who is licensed as a peace officer under Chapter 415 and who

237-23   has been employed full-time as a peace officer by a law enforcement

237-24   agency may apply for a license under this subchapter on retirement.

 238-1   The application must be made not later than the first anniversary

 238-2   after the date of retirement.

 238-3         (b)  The person shall submit two complete sets of legible and

 238-4   classifiable fingerprints and a sworn statement from the head of

 238-5   the law enforcement agency employing the applicant.  The statement

 238-6   must include:

 238-7               (1)  the name and rank of the applicant;

 238-8               (2)  the status of the applicant before retirement;

 238-9               (3)  whether or not the applicant was accused of

238-10   misconduct at the time of the retirement;

238-11               (4)  the physical and mental condition of the

238-12   applicant;

238-13               (5)  the type of weapons the applicant had demonstrated

238-14   proficiency with during the last year of employment;

238-15               (6)  whether the applicant would be eligible for

238-16   reemployment with the agency, and if not, the reasons the applicant

238-17   is not eligible; and

238-18               (7)  a recommendation from the agency head regarding

238-19   the issuance of a license under this subchapter.

238-20         (c)  The department may issue a license under this subchapter

238-21   to an applicant under this section if the applicant is honorably

238-22   retired and physically and emotionally fit to possess a handgun.

238-23   In this subsection, "honorably retired" means the applicant:

238-24               (1)  did not retire in lieu of any disciplinary action;

 239-1               (2)  was employed as a full-time peace officer for not

 239-2   less than 10 years by one agency; and

 239-3               (3)  is entitled to receive a pension or annuity for

 239-4   service as a law enforcement officer.

 239-5         (d)  An applicant under this section must pay a fee of $25

 239-6   for a license issued under this subchapter.

 239-7         (e)  A retired peace officer who obtains a license under this

 239-8   subchapter must maintain, for the category of weapon licensed, the

 239-9   proficiency required for a peace officer under Section 415.035.

239-10   The department or a local law enforcement agency shall allow a

239-11   retired peace officer of the department or agency an opportunity to

239-12   annually demonstrate the required proficiency.  The proficiency

239-13   shall be reported to the department on application and renewal.

239-14         (f)  A license issued under this section expires as provided

239-15   by Section 411.183.

239-16         (g)  A retired criminal investigator of the United States who

239-17   is designated as a "special agent" is eligible for a license under

239-18   this section.  An applicant described by this subsection may submit

239-19   the application at any time after retirement.  The applicant shall

239-20   submit with the application proper proof of retired status by

239-21   presenting the following documents prepared by the agency from

239-22   which the applicant retired:

239-23               (1)  retirement credentials; and

239-24               (2)  a letter from the agency head stating the

 240-1   applicant retired in good standing.

 240-2         Sec. 411.200.  APPLICATION TO LICENSED SECURITY OFFICERS.

 240-3   This subchapter does not exempt a license holder who is also

 240-4   employed as a security officer and licensed under the Private

 240-5   Investigators and Private Security Agencies Act (Article

 240-6   4413(29bb), Vernon's Texas Civil Statutes) from the duty to comply

 240-7   with that Act or Section 46.02, Penal Code.

 240-8         Sec. 411.201.  ACTIVE AND RETIRED JUDICIAL OFFICERS.  (a)  In

 240-9   this section:

240-10               (1)  "Active judicial officer" means a person serving

240-11   as a judge or justice of the supreme court, the court of criminal

240-12   appeals, a court of appeals, a district court, a criminal district

240-13   court, a constitutional county court, a statutory county court, a

240-14   justice court, or a municipal court.

240-15               (2)  "Retired judicial officer" means:

240-16                     (A)  a special judge appointed under Section

240-17   26.023 or 26.024; or

240-18                     (B)  a senior judge designated under Section

240-19   75.001 or a judicial officer as designated or defined by Section

240-20   75.001, 831.001, or 836.001.

240-21         (b)  Notwithstanding any other provision of this subchapter,

240-22   the department shall issue a license under this subchapter to an

240-23   active or retired judicial officer who meets the requirements of

240-24   this section.

 241-1         (c)  An active judicial officer is eligible for a license to

 241-2   carry a concealed handgun under the authority of this subchapter.

 241-3   A retired judicial officer is eligible for a license to carry a

 241-4   concealed handgun under the authority of this subchapter if the

 241-5   officer:

 241-6               (1)  has not been convicted of a felony;

 241-7               (2)  has not, in the five years preceding the date of

 241-8   application, been convicted of a Class A or Class B misdemeanor;

 241-9               (3)  is not charged with the commission of a Class A or

241-10   Class B misdemeanor or of a felony under an information or

241-11   indictment;

241-12               (4)  is not a chemically dependent person; and

241-13               (5)  is not a person of unsound mind.

241-14         (d)  An applicant for a license who is an active or retired

241-15   judicial officer must submit to the department:

241-16               (1)  a completed application on a form prescribed by

241-17   the department;

241-18               (2)  two recent color passport photographs of the

241-19   applicant;

241-20               (3)  a handgun proficiency certificate issued to the

241-21   applicant as evidence that the applicant successfully completed the

241-22   proficiency requirements of this subchapter;

241-23               (4)  a nonrefundable application and license fee set by

241-24   the department in an amount reasonably designed to cover the

 242-1   administrative costs associated with issuance of a license to carry

 242-2   a concealed handgun under this subchapter; and

 242-3               (5)  if the applicant is a retired judicial officer:

 242-4                     (A)  two complete sets of legible and

 242-5   classifiable fingerprints of the applicant taken by a person

 242-6   employed by a law enforcement agency who is appropriately trained

 242-7   in recording fingerprints; and

 242-8                     (B)  a form executed by the applicant that

 242-9   authorizes the department to make an inquiry into any noncriminal

242-10   history records that are necessary to determine the applicant's

242-11   eligibility for a license under this subchapter.

242-12         (e)  On receipt of all the application materials required by

242-13   this section, the department shall:

242-14               (1)  if the applicant is an active judicial officer,

242-15   issue a license to carry a concealed handgun under the authority of

242-16   this subchapter; or

242-17               (2)  if the applicant is a retired judicial officer,

242-18   conduct an appropriate background investigation to determine the

242-19   applicant's eligibility for the license and, if the applicant is

242-20   eligible, issue a license to carry a concealed handgun under the

242-21   authority of this subchapter.

242-22         (f)  Except as otherwise provided by this subsection, an

242-23   applicant for a license under this section must satisfy the handgun

242-24   proficiency requirements of Section 411.188. The classroom

 243-1   instruction part of the proficiency course for an active judicial

 243-2   officer is not subject to a minimum hour requirement.  The

 243-3   instruction must include instruction only on:

 243-4               (1)  handgun use, proficiency, and safety; and

 243-5               (2)  proper storage practices for handguns with an

 243-6   emphasis on storage practices that eliminate the possibility of

 243-7   accidental injury to a child.

 243-8         (g)  A license issued under this section expires as provided

 243-9   by Section 411.183 and, except as otherwise provided by this

243-10   subsection, may be renewed in accordance with Section 411.185 of

243-11   this subchapter.  An active judicial officer is not required to

243-12   attend the classroom instruction part of the continuing education

243-13   proficiency course to renew a license.

243-14         (h)  The department shall issue a license to carry a

243-15   concealed handgun under the authority of this subchapter to an

243-16   elected attorney representing the state in the prosecution of

243-17   felony cases who meets the requirements of this section for an

243-18   active judicial officer.  The department shall waive any fee

243-19   required for the issuance of an original, duplicate, or renewed

243-20   license under this subchapter for an applicant who is an attorney

243-21   elected or employed to represent the state in the prosecution of

243-22   felony cases.

243-23         Sec. 411.202.  LICENSE A BENEFIT.  The issuance of a license

243-24   under this subchapter is a benefit to the license holder for

 244-1   purposes of those sections of the Penal Code to which the

 244-2   definition of "benefit" under Section 1.07, Penal Code, applies.

 244-3         Sec. 411.203.  RIGHTS OF EMPLOYERS.  This subchapter does not

 244-4   prevent or otherwise limit the right of a public or private

 244-5   employer to prohibit persons who are licensed under this subchapter

 244-6   from carrying a concealed handgun on the premises of the business.

 244-7         Sec. 411.204.  NOTICE REQUIRED ON CERTAIN PREMISES.  (a)  A

 244-8   business that has a permit or license issued under Chapter 25, 28,

 244-9   32, or 69, Alcoholic Beverage Code, and that derives 51 percent or

244-10   more of its income from the sale of alcoholic beverages for

244-11   on-premises consumption shall prominently display at each entrance

244-12   to the business premises a sign that complies with the requirements

244-13   of Subsection (c).

244-14         (b)  A hospital licensed under Chapter 241, Health and Safety

244-15   Code, or a nursing home licensed under Chapter 242, Health and

244-16   Safety Code, shall prominently display at each entrance to the

244-17   hospital or nursing home, as appropriate, a sign that complies with

244-18   the requirements of Subsection (c).

244-19         (c)  The sign required under Subsections (a) and (b) must

244-20   give notice in both English and Spanish that it is unlawful to

244-21   carry a handgun on the premises.  The sign must appear in

244-22   contrasting colors with block letters at least one inch in height

244-23   and be displayed in a conspicuous manner clearly visible to the

244-24   public.

 245-1         Sec. 411.205.  DISPLAYING LICENSE; PENALTY.  (a)  On a demand

 245-2   by a magistrate or a peace officer that a license holder display

 245-3   the license holder's handgun license, the license holder shall

 245-4   display both the license and the license holder's driver's license

 245-5   or identification certificate issued by the department.

 245-6         (b)  If a license holder is carrying a handgun on or about

 245-7   the license holder's person when a magistrate or a peace officer

 245-8   demands that the license holder display identification, the license

 245-9   holder shall display both the license holder's driver's license or

245-10   identification certificate issued by the department and the license

245-11   holder's handgun license.

245-12         (c)  A person commits an offense if the person fails or

245-13   refuses to display the license and identification as required by

245-14   Subsection (a) or (b).  An offense under this subsection is a Class

245-15   B misdemeanor.

245-16         Sec. 411.206.  SEIZURE OF HANDGUN AND LICENSE.  (a)  If a

245-17   peace officer arrests and takes into custody a license holder who

245-18   is carrying a handgun under the authority of this subchapter, the

245-19   officer shall seize the license holder's handgun and license as

245-20   evidence.

245-21         (b)  The provisions of Article 18.19, Code of Criminal

245-22   Procedure, relating to the disposition of weapons seized in

245-23   connection with criminal offenses, apply to a handgun seized under

245-24   this subsection.

 246-1         (c)  Any judgment of conviction entered by any court for an

 246-2   offense under Section 46.035, Penal Code, must contain the handgun

 246-3   license number of the convicted license holder.  A certified copy

 246-4   of the judgment is conclusive and sufficient evidence to justify

 246-5   revocation of a license under Section 411.186(a)(4).

 246-6         Sec. 411.207.  AUTHORITY OF PEACE OFFICER TO DISARM.  A peace

 246-7   officer who is acting in the lawful discharge of the officer's

 246-8   official duties may disarm a license holder at any time the officer

 246-9   reasonably believes it is necessary for the protection of the

246-10   license holder, officer, or another individual.  The peace officer

246-11   shall return the handgun to the license holder before discharging

246-12   the license holder from the scene if the officer determines that

246-13   the license holder is not a threat to the officer, license holder,

246-14   or another individual and if the license holder has not violated

246-15   any provision of this subchapter or committed any other violation

246-16   that results in the arrest of the license holder.

246-17         Sec. 411.208.  LIMITATION OF LIABILITY.  (a)  A court may not

246-18   hold the state, an agency or subdivision of the state, an officer

246-19   or employee of the state, a peace officer, or a qualified handgun

246-20   instructor liable for damages caused by:

246-21               (1)  an action authorized under this subchapter or a

246-22   failure to perform a duty imposed by this subchapter; or

246-23               (2)  the actions of an applicant or license holder that

246-24   occur after the applicant has received a license or been denied a

 247-1   license under this subchapter.

 247-2         (b)  A cause of action in damages may not be brought against

 247-3   the state, an agency or subdivision of the state, an officer or

 247-4   employee of the state, a peace officer, or a qualified handgun

 247-5   instructor for any damage caused by the actions of an applicant or

 247-6   license holder under this subchapter.

 247-7         (c)  The department is not responsible for any injury or

 247-8   damage inflicted on any person by an applicant or license holder

 247-9   arising or alleged to have arisen from an action taken by the

247-10   department under this subchapter.

247-11         (d)  The immunities granted under Subsections (a), (b), and

247-12   (c) do not apply to an act or a failure to act by the state, an

247-13   agency or subdivision of the state, an officer of the state, or a

247-14   peace officer if the act or failure to act was capricious or

247-15   arbitrary.

247-16         (b)  Article 4413(29ee), Revised Statutes, is repealed.

247-17         SECTION 10.02.  Section 46.02(b), Penal Code, as amended by

247-18   Chapters 229, 318, 754, 790, and 998, Acts of the 74th Legislature,

247-19   Regular Session, 1995, is amended to read as follows:

247-20         (b)  It is a defense to prosecution under this section that

247-21   the actor was, at the time of the commission of the offense:

247-22               (1)  in the actual discharge of his official duties as

247-23   a member of the armed forces or state military forces as defined by

247-24   Section 431.001, Government Code, or as a guard employed by a penal

 248-1   institution;

 248-2               (2)  on his own premises or premises under his control

 248-3   unless he is an employee or agent of the owner of the premises and

 248-4   his primary responsibility is to act in the capacity of a security

 248-5   guard to protect persons or property, in which event he must comply

 248-6   with Subdivision (5);

 248-7               (3)  traveling;

 248-8               (4)  engaging in lawful hunting, fishing, or other

 248-9   sporting activity on the immediate premises where the activity is

248-10   conducted, or was directly en route between the premises and the

248-11   actor's residence, if the weapon is a type commonly used in the

248-12   activity;

248-13               (5)  a person who holds a security officer commission

248-14   issued by the Texas Board of Private Investigators and Private

248-15   Security Agencies, if:

248-16                     (A)  he is engaged in the performance of his

248-17   duties as a security officer or traveling to and from his place of

248-18   assignment;

248-19                     (B)  he is wearing a distinctive uniform; and

248-20                     (C)  the weapon is in plain view; [or]

248-21               (6) [(7)]  carrying a concealed handgun and a valid

248-22   license issued under Subchapter H, Chapter 411, Government Code

248-23   [Article 4413(29ee), Revised Statutes], to carry a concealed

248-24   handgun of the same category as the handgun the person is

 249-1   carrying;[.]

 249-2               (7)  a person who holds a security officer commission

 249-3   and a personal protection authorization issued by the Texas Board

 249-4   of Private Investigators and Private Security Agencies and who is

 249-5   providing personal protection under the Private Investigators and

 249-6   Private Security Agencies Act (Article 4413(29bb), Vernon's Texas

 249-7   Civil Statutes); or[.]

 249-8               (8) [(7)]  a holder of an alcoholic beverage permit or

 249-9   license or an employee of a holder of an alcoholic beverage permit

249-10   or license if the actor is supervising the operation of the

249-11   permitted or licensed premises.

249-12         SECTION 10.03.  Section 46.03(f), Penal Code, is amended to

249-13   read as follows:

249-14         (f)  It is not a defense to prosecution under this section

249-15   that the actor possessed a handgun and was licensed to carry a

249-16   concealed handgun under Subchapter H, Chapter 411, Government Code

249-17   [Article 4413(29ee), Revised Statutes].

249-18         SECTION 10.04.  Section 46.035, Penal Code, is amended by

249-19   amending Subsections (a)-(f) to read as follows:

249-20         (a)  A license holder commits an offense if the license

249-21   holder carries a handgun on or about the license holder's person

249-22   under the authority of Subchapter H, Chapter 411, Government Code

249-23   [Article 4413(29ee), Revised Statutes], and intentionally fails to

249-24   conceal the handgun.

 250-1         (b)  A license holder commits an offense if the license

 250-2   holder intentionally, knowingly, or recklessly carries a handgun

 250-3   under the authority of Subchapter H, Chapter 411, Government Code

 250-4   [Article 4413(29ee), Revised Statutes], regardless of whether the

 250-5   handgun is concealed, on or about the license holder's person:

 250-6               (1)  on the premises of a business that has a permit or

 250-7   license issued under Chapter 25, 28, 32, or 69, Alcoholic Beverage

 250-8   Code, if the business derives 51 percent or more of its income from

 250-9   the sale of alcoholic beverages for on-premises consumption;

250-10               (2)  on the premises where a high school, collegiate,

250-11   or professional sporting event or interscholastic event is taking

250-12   place, unless the license holder is a participant in the event and

250-13   a handgun is used in the event;

250-14               (3)  on the premises of a correctional facility;

250-15               (4)  on the premises of a hospital licensed under

250-16   Chapter 241, Health and Safety Code, or on the premises of a

250-17   nursing home licensed under Chapter 242, Health and Safety Code,

250-18   unless the license holder has written authorization of the hospital

250-19   or nursing home administration, as appropriate;

250-20               (5)  in an amusement park; or

250-21               (6)  on the premises of a church, synagogue, or other

250-22   established place of religious worship.

250-23         (c)  A license holder commits an offense if the license

250-24   holder intentionally, knowingly, or recklessly carries a handgun

 251-1   under the authority of Subchapter H, Chapter 411, Government Code

 251-2   [Article 4413(29ee), Revised Statutes], regardless of whether the

 251-3   handgun is concealed, at any meeting of a governmental entity.

 251-4         (d)  A license holder commits an offense if, while

 251-5   intoxicated, the license holder carries a handgun under the

 251-6   authority of Subchapter H, Chapter 411, Government Code [Article

 251-7   4413(29ee), Revised Statutes], regardless of whether the handgun is

 251-8   concealed.

 251-9         (e)  A license holder who is licensed as a security officer

251-10   under the Private Investigators and Private Security Agencies Act

251-11   (Article 4413(29bb), Vernon's Texas Civil Statutes) and employed as

251-12   a security officer commits an offense if, while in the course and

251-13   scope of the security officer's employment, the security officer

251-14   violates a provision of Subchapter H, Chapter 411, Government Code

251-15   [Article 4413(29ee), Revised Statutes].

251-16         (f)  In this section:

251-17               (1)  "Amusement park" means a permanent indoor or

251-18   outdoor facility or park where amusement rides are available for

251-19   use by the public that is located in a county with a population of

251-20   more than one million, encompasses at least 75 acres in surface

251-21   area, is enclosed with access only through controlled entries, is

251-22   open for operation more than 120 days in each calendar year, and

251-23   has security guards on the premises at all times.  The term does

251-24   not include any public or private driveway, street, sidewalk or

 252-1   walkway, parking lot, parking garage, or other parking area.

 252-2               (2)  "License holder" means a person licensed to carry

 252-3   a handgun under Subchapter H, Chapter 411, Government Code [Article

 252-4   4413(29ee), Revised Statutes].

 252-5               (3)  "Premises" means a building or a portion of a

 252-6   building.  The term does not include any public or private

 252-7   driveway, street, sidewalk or walkway, parking lot, parking garage,

 252-8   or other parking area.

 252-9         SECTION 10.05.  (a)  Section 58.003, Family Code, is amended

252-10   by adding Subsection (m) to read as follows:

252-11         (m)  On request of the Department of Public Safety, a

252-12   juvenile court shall reopen and allow the department to inspect the

252-13   files and records of the juvenile court relating to an applicant

252-14   for a license to carry a concealed handgun under Subchapter H,

252-15   Chapter 411, Government Code.

252-16         (b)  Section 51.16(m), Family Code, as added by Chapter 229,

252-17   Acts of the 74th Legislature, Regular Session, 1995, is repealed.

252-18         SECTION 10.06.  Section 411.047(a), Government Code, is

252-19   amended to read as follows:

252-20         (a)  The department shall maintain statistics related to

252-21   responses by law enforcement agencies to incidents in which a

252-22   person licensed to carry a handgun under Subchapter H [Article

252-23   4413(29ee), Revised Statutes,] is arrested for an offense under

252-24   Section 46.035, Penal Code, or discharges a handgun.

 253-1         SECTION 10.07.  Section 215.001(b), Local Government Code, is

 253-2   amended to read as follows:

 253-3         (b)  Subsection (a) does not affect the authority a

 253-4   municipality has under another law to:

 253-5               (1)  require residents or public employees to be armed

 253-6   for personal or national defense, law enforcement, or another

 253-7   lawful purpose;

 253-8               (2)  regulate the discharge of firearms within the

 253-9   limits of the municipality;

253-10               (3)  regulate the use of property, the location of a

253-11   business, or uses at a business under the municipality's fire code,

253-12   zoning ordinance, or land-use regulations as long as the code,

253-13   ordinance, or regulations are not used to circumvent the intent of

253-14   Subsection (a) or Subdivision (5) of this subsection;

253-15               (4)  regulate the use of firearms in the case of an

253-16   insurrection, riot, or natural disaster if the municipality finds

253-17   the regulations necessary to protect public health and safety;

253-18               (5)  regulate the storage or transportation of

253-19   explosives to protect public health and safety, except that 25

253-20   pounds or less of black powder for each private residence and 50

253-21   pounds or less of black powder for each retail dealer are not

253-22   subject to regulation; or

253-23               (6)  regulate the carrying of a firearm by a person

253-24   other than a person licensed to carry a concealed handgun under

 254-1   Subchapter H, Chapter 411, Government Code [Article 4413(29ee),

 254-2   Revised Statutes], at a:

 254-3                     (A)  public park;

 254-4                     (B)  public meeting of a municipality, county, or

 254-5   other governmental body;

 254-6                     (C)  political rally, parade, or official

 254-7   political meeting; or

 254-8                     (D)  nonfirearms-related school, college, or

 254-9   professional athletic event.

254-10            ARTICLE 11. CHANGES RELATING TO EXECUTIVE TITLE,

254-11                             GOVERNMENT CODE

254-12         SECTION 11.01.  (a)  Chapter 441, Government Code, is amended

254-13   to codify Chapter 387, Acts of the 73rd Legislature, Regular

254-14   Session, 1993 (Article 1696c, Vernon's Texas Civil Statutes), by

254-15   adding Subchapter H to read as follows:

254-16                  SUBCHAPTER H.  PRINT ACCESS AIDS FOR

254-17                    PERSONS WITH VISUAL DISABILITIES

254-18         Sec. 441.111.  DEFINITIONS.  In this subchapter:

254-19               (1)  "Print access aid" means an item, piece of

254-20   equipment, or product system that improves or facilitates access to

254-21   standard print by enlarging or magnifying print, or by

254-22   electronically converting print to spoken, recorded, or tactile

254-23   format.

254-24               (2)  "Public library" has the meaning assigned by

 255-1   Section 441.122.

 255-2               (3)  "Standard print" means text that appears on paper,

 255-3   microfilm, microfiche, or other microformat, or in machine-readable

 255-4   form, in a type size smaller than 14 points.

 255-5               (4)  "State library" means the Texas State Library.

 255-6         Sec. 441.112.  PRINT ACCESS AIDS IN PUBLIC LIBRARIES.  (a)

 255-7   To make its services and collections more accessible, a public

 255-8   library may make a print access aid available for use by a person

 255-9   who cannot clearly read printed material because of a visual

255-10   disability.

255-11         (b)  If funds from a gift or grant are available for that

255-12   purpose, the state library may acquire and lend at no cost print

255-13   access aids to a public library.

255-14         (c)  For a public library to be eligible to receive a print

255-15   access aid under Subsection (b), a community need for the aid must

255-16   exist.

255-17         Sec. 441.113.  TRAINING AND INFORMATION.  The state library

255-18   may provide to a library requesting or receiving a print access aid

255-19   under this subchapter technical assistance, including assistance

255-20   in:

255-21               (1)  explaining to library employees the function of a

255-22   print access aid;

255-23               (2)  assessing local needs for use of a print access

255-24   aid;

 256-1               (3)  providing to library employees training and

 256-2   information in the use of a print access aid;

 256-3               (4)  preparing and distributing public information

 256-4   regarding the availability and location of a print access aid; and

 256-5               (5)  providing assistance in developing policies and

 256-6   guidelines for use of an aid.

 256-7         Sec. 441.114.  MAINTENANCE OF EQUIPMENT.  The state library

 256-8   may pay the maintenance or repair cost of a print access aid

 256-9   supplied to a library under this subchapter out of funds available

256-10   to the library from gifts or grants for that purpose.  If the state

256-11   library cannot pay the maintenance or repair cost of an aid, the

256-12   library receiving the aid may pay the maintenance or repair cost or

256-13   return the aid to the state library.

256-14         Sec. 441.115.  RELOCATION.  The state library shall review

256-15   each library that receives a print access aid under this subchapter

256-16   once every two years to determine whether to relocate an aid

256-17   provided to that library.  The state library shall make a

256-18   relocation decision based on population shifts, the use of the

256-19   equipment, and community need.

256-20         Sec. 441.116.  FUNDING.  (a)  The requirements of this

256-21   subchapter for the provision and placement of print access aids by

256-22   the state library are contingent on the receipt of gifts or grants

256-23   for the state library to purchase, maintain, and repair the print

256-24   access aids.  If the state library's funds are not sufficient to

 257-1   place and maintain a print access aid in a library that may need an

 257-2   aid, the state library shall make a placement decision for any

 257-3   available aid based on demonstrated community need and local

 257-4   support provided by a library.

 257-5         (b)  Money from the general revenue fund may not be

 257-6   appropriated to implement this subchapter.

 257-7         (b)  Chapter 387, Acts of the 73rd Legislature, Regular

 257-8   Session, 1993 (Article 1696c, Vernon's Texas Civil Statutes), is

 257-9   repealed.

257-10         ARTICLE 12.  CHANGES RELATING TO TRANSFER OF PAROLE LAW

257-11         SECTION 12.01.  Subtitle G, Title 4, Government Code, is

257-12   amended to codify Article 42.18, Code of Criminal Procedure, except

257-13   for Sections 29(a) and (h) of that article, by adding Chapter 508

257-14   to read as follows:

257-15             CHAPTER 508.  PAROLE AND MANDATORY SUPERVISION

257-16                    SUBCHAPTER A.  GENERAL PROVISIONS

257-17         Sec. 508.001.  DEFINITIONS.  In this chapter:

257-18               (1)  "Board" means the Board of Pardons and Paroles.

257-19               (2)  "Community supervision and corrections department"

257-20   means a department established under Chapter 76.

257-21               (3)  "Director" means the director of the pardons and

257-22   paroles division.

257-23               (4)  "Division" means the pardons and paroles division.

257-24               (5)  "Mandatory supervision" means the release of an

 258-1   eligible inmate sentenced to the institutional division so that the

 258-2   inmate may serve the remainder of the inmate's sentence not on

 258-3   parole but under the supervision of the pardons and paroles

 258-4   division.

 258-5               (6)  "Parole" means the discretionary and conditional

 258-6   release of an eligible inmate sentenced to the institutional

 258-7   division so that the inmate may serve the remainder of the inmate's

 258-8   sentence under the supervision of the pardons and paroles division.

 258-9               (7)  "Parole officer" means a person appointed by the

258-10   director and assigned the duties of assessment of risks and needs,

258-11   investigation, case management, and supervision of releasees to

258-12   ensure that releasees are complying with the conditions of parole

258-13   or mandatory supervision.

258-14               (8)  "Releasee" means a person released on parole or to

258-15   mandatory supervision.

258-16         Sec. 508.002.  CLEMENCY, COMMUTATION DISTINGUISHED.  Neither

258-17   parole nor mandatory supervision is a commutation of sentence or

258-18   any other form of clemency.

258-19         Sec. 508.003.  INAPPLICABLE TO JUVENILES AND CERTAIN INMATES.

258-20   (a)  This chapter does not apply to an emergency absence under

258-21   escort granted to an inmate by the institutional division under

258-22   Section 501.006.

258-23         (b)  Except as provided by Subsection (c), this chapter does

258-24   not apply to release on parole from an institution for juveniles.

 259-1         (c)  The provisions of this chapter not in conflict with

 259-2   Section 508.156 apply to parole of a person from the Texas Youth

 259-3   Commission under that section.

 259-4            (Sections 508.004-508.030 reserved for expansion

 259-5               SUBCHAPTER B.  BOARD OF PARDONS AND PAROLES

 259-6         Sec. 508.031.  COMPOSITION OF BOARD.  (a)  The board consists

 259-7   of 18 members appointed by the governor with the advice and consent

 259-8   of the senate.

 259-9         (b)  Appointments to the board must be made without regard to

259-10   the race, color, handicap, sex, religion, age, or national origin

259-11   of the appointed members.

259-12         Sec. 508.032.  REQUIREMENTS FOR MEMBERSHIP.  (a)  Board

259-13   members must be representative of the general public.

259-14         (b)  A member must have resided in this state for the two

259-15   years before appointment.

259-16         Sec. 508.033.  DISQUALIFICATIONS.  (a)  A person is not

259-17   eligible for appointment as a member of the board if the person or

259-18   the person's spouse:

259-19               (1)  is employed by or participates in the management

259-20   of a business entity or other organization receiving funds from the

259-21   department or the board;

259-22               (2)  owns or controls, directly or indirectly, more

259-23   than a 10-percent interest in a business entity or other

259-24   organization:

 260-1                     (A)  regulated by the department; or

 260-2                     (B)  receiving funds from the department or the

 260-3   board; or

 260-4               (3)  uses or receives a substantial amount of tangible

 260-5   goods, services, or funds from the department or the board, other

 260-6   than compensation or reimbursement authorized by law for board

 260-7   membership, attendance, or expenses.

 260-8         (b)  In determining eligibility under Subsection (a)(3), the

 260-9   compensation or reimbursement that a board member's spouse receives

260-10   as an employee of the board or the department may not be

260-11   considered.  This subsection does not affect any restriction on

260-12   employment or board membership imposed by any other law.

260-13         (c)  An employee or paid officer of or consultant to a trade

260-14   association in the field of criminal justice may not be:

260-15               (1)  a member of the board; or

260-16               (2)  an employee of the division or the board.

260-17         (d)  A person who is the spouse of a manager of or paid

260-18   consultant to a trade association in the field of criminal justice

260-19   may not be:

260-20               (1)  a member of the board; or

260-21               (2)  an employee of the division or the board,

260-22   including an employee who is:

260-23                     (A)  exempt from the state's classification plan;

260-24   and

 261-1                     (B)  compensated at or above the amount

 261-2   prescribed by the General Appropriations Act for step 1, salary

 261-3   group 17, of the position classification salary schedule.

 261-4         (e)  A person who is required to register as a lobbyist under

 261-5   Chapter 305 because of the person's activities for compensation in

 261-6   or on behalf of a profession related to the operation of the board

 261-7   may not:

 261-8               (1)  serve as a member of the board; or

 261-9               (2)  act as the general counsel to the division.

261-10         (f)  In this section, a trade association is a nonprofit,

261-11   cooperative, and voluntarily joined association of business or

261-12   professional competitors that is designed to assist the

261-13   association's members and the association's industry or profession

261-14   in:

261-15               (1)  dealing with mutual business or professional

261-16   problems; and

261-17               (2)  promoting their common interests.

261-18         Sec. 508.034.  GROUNDS FOR REMOVAL.  (a)  It is a ground for

261-19   removal from the board if a member:

261-20               (1)  at the time of appointment is not qualified under

261-21   Section 508.032 or 508.033(a) for appointment to the board;

261-22               (2)  during the member's service on the board becomes

261-23   ineligible under Section 508.033(a) for appointment to the board;

261-24               (3)  violates Section 508.033(c), (d), or (e);

 262-1               (4)  is unable to discharge the member's duties for a

 262-2   substantial part of the term for which the member was appointed

 262-3   because of illness or disability; or

 262-4               (5)  is absent from more than half of the regularly

 262-5   scheduled board or panel meetings that the member is eligible to

 262-6   attend during each calendar year, except when the absence is

 262-7   excused by majority vote of the board.

 262-8         (b)  The validity of an action of the board or panel is not

 262-9   affected by the fact that the action was taken when a ground for

262-10   removal of a board member existed.

262-11         (c)  If the director has knowledge that a potential ground

262-12   for removal exists, the director shall notify the presiding officer

262-13   of the board of the ground.  The presiding officer shall notify the

262-14   governor that a potential ground for removal exists.

262-15         Sec. 508.035.  PRESIDING OFFICER.  (a)  The governor shall

262-16   designate one member to serve as presiding officer of the board.

262-17         (b)  The presiding officer serves in that capacity at the

262-18   pleasure of the governor.

262-19         Sec. 508.036.  EXECUTIVE COMMITTEE.  (a)  To facilitate the

262-20   work of the board, the governor shall appoint the presiding officer

262-21   of the board to serve as presiding officer of the executive

262-22   committee.

262-23         (b)  The presiding officer shall appoint six board members to

262-24   serve on the executive committee.  An executive committee member

 263-1   serves in that capacity at the pleasure of the presiding officer.

 263-2         (c)  The executive committee shall:

 263-3               (1)  coordinate activities of the board;

 263-4               (2)  assure maximum efficiency and fair distribution of

 263-5   the caseload; and

 263-6               (3)  administer other matters as required by the

 263-7   presiding officer.

 263-8         Sec. 508.037.  TERMS; REMOVAL.  (a)  A board member holds

 263-9   office for a term of six years.

263-10         (b)  The terms of one-third of the members expire February 1

263-11   of each odd-numbered year.

263-12         (c)  The governor may remove a board member, other than a

263-13   member appointed by another governor, at any time and for any

263-14   reason.

263-15         Sec. 508.038.  VACANCIES.  If a vacancy occurs, the governor

263-16   shall appoint in the same manner as other appointments are made a

263-17   person to serve the remainder of the unexpired term.

263-18         Sec. 508.039.  COMPENSATION.  A board member is paid the

263-19   salary the legislature determines in the General Appropriations

263-20   Act.

263-21         Sec. 508.040.  PERSONNEL.  (a)  The board shall employ and

263-22   supervise:

263-23               (1)  a general counsel to the board;

263-24               (2)  an administrative assistant;

 264-1               (3)  hearing officers;

 264-2               (4)  personnel to assist in clemency matters; and

 264-3               (5)  secretarial or clerical personnel.

 264-4         (b)  The board may adopt rules as necessary for the

 264-5   employment and supervision of board personnel.

 264-6         (c)  The board shall develop and implement personnel

 264-7   policies.

 264-8         Sec. 508.041.  TRAINING PROGRAM FOR DESIGNATED AGENTS.  (a)

 264-9   The board shall develop and implement a training program for

264-10   designated agents of the board who conduct hearings under Section

264-11   508.281.

264-12         (b)  The training program must assist the designated agents

264-13   in understanding issues relating to the revocation process.

264-14         Sec. 508.042.  TRAINING PROGRAM FOR MEMBERS.  (a)  The board

264-15   shall develop for board members a comprehensive training and

264-16   education program on the criminal justice system, with special

264-17   emphasis on the parole process.

264-18         (b)  A new member may not participate in a vote of the board

264-19   or a panel until the member completes the program.

264-20         Sec. 508.043.  GIFTS AND GRANTS.  The board may apply for and

264-21   accept gifts or grants from any public or private source for use in

264-22   any lawful purpose of the board.

264-23         Sec. 508.044.  POWERS AND DUTIES OF BOARD.  (a)  A board

264-24   member shall give full time to the duties of the member's office.

 265-1         (b)  In addition to performing the duties imposed on the

 265-2   board by the Texas Constitution, board members shall determine:

 265-3               (1)  which inmates are to be released on parole;

 265-4               (2)  conditions of parole or mandatory supervision;

 265-5               (3)  which releasees may be released from supervision

 265-6   and reporting; and

 265-7               (4)  the revocation of parole or mandatory supervision.

 265-8         (c)  The board shall develop and implement a policy that

 265-9   clearly defines circumstances under which a member should

265-10   disqualify himself or herself from voting on:

265-11               (1)  a parole decision; or

265-12               (2)  a decision to revoke parole or mandatory

265-13   supervision.

265-14         (d)  The board may adopt reasonable rules as the board

265-15   considers proper or necessary relating to:

265-16               (1)  the eligibility of an inmate for release on parole

265-17   or release to mandatory supervision;

265-18               (2)  the conduct of a parole or mandatory supervision

265-19   hearing; or

265-20               (3)  conditions to be imposed on a releasee.

265-21         (e)  The board may provide a written plan for the

265-22   administrative review of actions taken by a parole panel by the

265-23   entire membership or by a subset of the entire membership of the

265-24   board.

 266-1         Sec. 508.045.  PAROLE PANELS.  (a)  Except as provided by

 266-2   Section 508.046, board members shall act in panels composed of

 266-3   three persons each in matters of:

 266-4               (1)  release on parole;

 266-5               (2)  release to mandatory supervision; and

 266-6               (3)  revocation of parole or mandatory supervision.

 266-7         (b)  The presiding officer of the board shall designate the

 266-8   composition of each panel.

 266-9         (c)  A parole panel may:

266-10               (1)  grant, deny, or revoke parole;

266-11               (2)  revoke mandatory supervision; and

266-12               (3)  conduct parole revocation hearings and mandatory

266-13   supervision revocation hearings.

266-14         Sec. 508.046.  EXTRAORDINARY VOTE REQUIRED.  To release on

266-15   parole an inmate who was convicted of a capital felony or an

266-16   offense under Section 21.11(a)(1) or 22.021, Penal Code, or who is

266-17   required under Section 508.145(c) to serve 35 calendar years before

266-18   becoming eligible for release on parole, all members of the board

266-19   must vote on the release on parole of the inmate, and at least

266-20   two-thirds of the members must vote in favor of the release on

266-21   parole.  A member of the board may not vote on the release unless

266-22   the member first receives a copy of a written report from the

266-23   department on the probability that the inmate would commit an

266-24   offense after being released on parole.

 267-1         Sec. 508.047.  MEETINGS.  (a)  The members of the board shall

 267-2   meet at least once in each quarter of the calendar year at a site

 267-3   determined by the presiding officer.

 267-4         (b)  The members of the board are not required to meet as a

 267-5   body to perform the members' duties in clemency matters.

 267-6         (c)  A majority of each parole panel constitutes a quorum for

 267-7   the transaction of the panel's business.  A panel's decision must

 267-8   be by majority vote.

 267-9         (d)  The members of a parole panel are not required to meet

267-10   as a body to perform the members' duties, except to conduct a

267-11   hearing under Section 508.281.

267-12         Sec. 508.048.  SUBPOENAS.  (a)  A parole panel may issue a

267-13   subpoena requiring the attendance of a witness or the production of

267-14   any record, book, paper, or document the panel considers necessary

267-15   for investigation of the case of a person before the panel.

267-16         (b)  A member of the board may sign a subpoena and administer

267-17   an oath.

267-18         (c)  A  peace officer, parole officer, or community

267-19   supervision and corrections department officer may serve the

267-20   subpoena in the same manner as similar process in a court of record

267-21   having original jurisdiction of criminal actions is served.

267-22         (d)  A person who testifies falsely, fails to appear when

267-23   subpoenaed, or fails or refuses to produce material under the

267-24   subpoena is subject to the same orders and penalties to which a

 268-1   person taking those actions before a court is subject.

 268-2         (e)  On application of the board, a court of record having

 268-3   original jurisdiction of criminal actions may compel the attendance

 268-4   of a witness, the production of material, or the giving of

 268-5   testimony before the board, by an attachment for contempt or in the

 268-6   same manner as the court may otherwise compel the production of

 268-7   evidence.

 268-8         Sec. 508.049.  MISSION STATEMENT.  (a)  The board, after

 268-9   consultation with the governor and the Texas Board of Criminal

268-10   Justice, shall adopt a mission statement that reflects the

268-11   responsibilities for the operation of the parole process that are

268-12   assigned to the board and the responsibilities that are assigned to

268-13   the division, the department, or the Texas Board of Criminal

268-14   Justice.

268-15         (b)  The board shall include in the mission statement a

268-16   description of specific locations at which the board intends to

268-17   conduct business related to the operation of the parole process.

268-18         Sec. 508.050.  REPORT TO GOVERNOR.  (a)  On request of the

268-19   governor, the board shall investigate a person being considered by

268-20   the governor for:

268-21               (1)  pardon;

268-22               (2)  commutation of sentence;

268-23               (3)  reprieve;

268-24               (4)  remission of fine; or

 269-1               (5)  forfeiture.

 269-2         (b)  The board shall report to the governor on its

 269-3   investigation and make recommendations about the person to the

 269-4   governor.

 269-5         Sec. 508.051.  SUNSET PROVISION.  The Board of Pardons and

 269-6   Paroles is subject to review under Chapter 325 (Texas Sunset Act),

 269-7   but is not abolished under that chapter.

 269-8         Sec. 508.052.  COMPUTERS; OFFICE SPACE; OTHER EQUIPMENT.  (a)

 269-9   The department by interagency contract may provide to the board

269-10   necessary computer equipment and computer access to all

269-11   computerized records and physical access to all printed records in

269-12   the custody of the department that are related to the duties and

269-13   functions of the board.

269-14         (b)  The department by interagency contract may provide to

269-15   the board necessary and appropriate:

269-16               (1)  office space at locations designated by the

269-17   presiding officer of the board; and

269-18               (2)  utilities and communications equipment.

269-19            (Sections 508.053-508.080 reserved for expansion

269-20                SUBCHAPTER C.  REPRESENTATION OF INMATES

269-21         Sec. 508.081.  DEFINITIONS.  In this subchapter:

269-22               (1)  "Compensation" has the meaning assigned by Section

269-23   305.002.

269-24               (2)  "Inmate" includes:

 270-1                     (A)  an administrative releasee;

 270-2                     (B)  an inmate imprisoned in the institutional

 270-3   division; and

 270-4                     (C)  a person confined in a transfer facility or

 270-5   county jail awaiting:

 270-6                           (i)  transfer to the institutional

 270-7   division; or

 270-8                           (ii)  a revocation hearing.

 270-9               (3)  "Represent" means to directly or indirectly

270-10   contact in person or by telephone, facsimile transmission, or

270-11   correspondence a member or employee of the board or an employee of

270-12   the department on behalf of an inmate.

270-13         Sec. 508.082.  RULES.  The board shall adopt rules relating

270-14   to:

270-15               (1)  the submission and presentation of information and

270-16   arguments to the board, a parole panel, and the department for and

270-17   in behalf of an inmate; and

270-18               (2)  the time, place, and manner of contact between a

270-19   person representing an inmate and:

270-20                     (A)  a member of the board;

270-21                     (B)  an employee of the board; or

270-22                     (C)  an employee of the department.

270-23         Sec. 508.083.  ELIGIBILITY TO REPRESENT INMATES.  (a)  A

270-24   person who represents an inmate for compensation must:

 271-1               (1)  be an attorney licensed in this state; and

 271-2               (2)  register with the division.

 271-3         (b)  A person serving as a member or employee of the board or

 271-4   the Texas Board of Criminal Justice may not, before the 10th

 271-5   anniversary of the date the person ceases to be a board member or

 271-6   employee:

 271-7               (1)  represent any person in a matter before the board

 271-8   or a parole panel; or

 271-9               (2)  receive compensation for services rendered on

271-10   behalf of any person regarding a matter pending before the board or

271-11   a parole panel.

271-12         (c)  A person, other than a person subject to Subsection (b),

271-13   who is employed by the department may not, before the 10th

271-14   anniversary of the date the person terminates service with the

271-15   department:

271-16               (1)  represent an inmate in a matter before the board

271-17   or a parole panel; or

271-18               (2)  receive compensation for services rendered on

271-19   behalf of any person regarding a matter pending before the board or

271-20   a parole panel.

271-21         (d)  A former member or employee of the board or the Texas

271-22   Board of Criminal Justice or a former employee of the department

271-23   may not represent any person or receive compensation for services

271-24   rendered on behalf of any person regarding a matter pending before

 272-1   the board or a parole panel with which the former member or

 272-2   employee, during the period of service on or with either board or

 272-3   employment with the department or board, was directly concerned

 272-4   either:

 272-5               (1)  through personal involvement; or

 272-6               (2)  because the matter was within the member's or

 272-7   employee's official responsibility while associated with the board

 272-8   or the department.

 272-9         Sec. 508.084.  FEE AFFIDAVIT.  (a)  A person required to

272-10   register under Section 508.083, before the person first contacts a

272-11   member of the board, an employee of the board, or an employee of

272-12   the department on behalf of an inmate, shall file a fee affidavit

272-13   with the department in a form prescribed by the department for each

272-14   inmate the person represents for compensation.

272-15         (b)  The fee affidavit must be written and verified and

272-16   contain a statement of:

272-17               (1)  the registrant's full name and address;

272-18               (2)  the registrant's normal business, business phone

272-19   number, and business address;

272-20               (3)  the full name of any former member or employee of

272-21   the board or the Texas Board of Criminal Justice or any former

272-22   employee of the department with whom the registrant:

272-23                     (A)  is associated;

272-24                     (B)  has a relationship as an employer or

 273-1   employee; or

 273-2                     (C)  maintains a contractual relationship to

 273-3   provide services;

 273-4               (4)  the full name and institutional identification

 273-5   number of the inmate the registrant represents;

 273-6               (5)  the amount of compensation the registrant has

 273-7   received or expects to receive in exchange for the representation;

 273-8   and

 273-9               (6)  the name of the person providing the compensation.

273-10         (c)  If a registrant receives compensation in excess of the

273-11   amount reported on the fee affidavit, the registrant shall file

273-12   with the department, not later than the fifth day after the date

273-13   the registrant receives compensation in excess of the reported

273-14   amount, a supplemental fee affidavit in a form prescribed by the

273-15   department indicating the total amount of compensation received for

273-16   representing the inmate.

273-17         (d)  For each fee affidavit and supplemental fee affidavit

273-18   received, the department shall:

273-19               (1)  keep a copy of the affidavit in a central

273-20   location; and

273-21               (2)  not later than the third day after the date the

273-22   affidavit is filed, place a copy of the affidavit in the inmate's

273-23   file that is reviewed by a parole panel or the board.

273-24         Sec. 508.085.  REPRESENTATION SUMMARY FORM.  (a)  A person

 274-1   required to register under Section 508.083 shall, for each calendar

 274-2   year in which the person represents an inmate, file a

 274-3   representation summary form with the division on a form prescribed

 274-4   by the division.

 274-5         (b)  The form must be filed not later than January 31 of the

 274-6   year succeeding the year for which the report is filed and must

 274-7   include a statement of:

 274-8               (1)  the registrant's full name and address;

 274-9               (2)  the registrant's normal business, business phone

274-10   number, and business address;

274-11               (3)  the full name of any former member or employee of

274-12   the board or the Texas Board of Criminal Justice or any former

274-13   employee of the department with whom the registrant:

274-14                     (A)  is associated;

274-15                     (B)  has a relationship as an employer or

274-16   employee; or

274-17                     (C)  maintains a contractual relationship to

274-18   provide services;

274-19               (4)  the full name and institutional identification

274-20   number of each inmate the registrant represented in the previous

274-21   calendar year; and

274-22               (5)  the amount of compensation the registrant has

274-23   received for representing each inmate in the previous calendar

274-24   year.

 275-1         (c)  A person who files a form under this section and for

 275-2   whom the information required for the form has changed shall, not

 275-3   later than the 10th day after the date the information changes,

 275-4   file a supplemental statement with the division indicating the

 275-5   change.

 275-6         Sec. 508.086.  CRIMINAL PENALTIES.  (a)  A former member or

 275-7   employee of the board or the Texas Board of Criminal Justice or a

 275-8   former employee of the department commits an offense if the former

 275-9   member or employee violates Section 508.083(b), (c), or (d).

275-10         (b)  A person who represents an inmate for compensation

275-11   commits an offense if the person is not an attorney licensed in

275-12   this state.

275-13         (c)  A person who is required to file an affidavit under

275-14   Section 508.084(a) or (c) or a form or statement under Section

275-15   508.085 commits an offense if the person fails to file the

275-16   affidavit, form, or statement.

275-17         (d)  An offense under Subsection (a) is a Class A

275-18   misdemeanor.  An offense under Subsection (b) or (c) is a Class C

275-19   misdemeanor.

275-20            (Sections 508.087-508.110 reserved for expansion

275-21               SUBCHAPTER D.  PARDONS AND PAROLES DIVISION

275-22         Sec. 508.111.  DIRECTOR.  (a)  The executive director shall

275-23   hire the director of the division.

275-24         (b)  The director is responsible for the administration of

 276-1   the division.

 276-2         Sec. 508.112.  DUTY OF DIVISION.  The division is responsible

 276-3   for the investigation and supervision of all releasees.

 276-4         Sec. 508.113.  PAROLE OFFICERS, SUPERVISORS: QUALIFICATIONS.

 276-5   (a)  This subsection and Subsection (b) apply only to a person

 276-6   employed as a parole officer or supervisor on or before September

 276-7   1, 1990.  A person may not be employed as a parole officer or

 276-8   supervisor, or be responsible for investigating or supervising a

 276-9   releasee, unless the person has:

276-10               (1)  four years of successfully completed education in

276-11   an accredited college or university;

276-12               (2)  two years of full-time paid employment in

276-13   responsible correctional work with adults or juveniles or in a

276-14   related field; and

276-15               (3)  any other qualifications that may be specified by

276-16   the director.

276-17         (b)  Additional experience in a category described by

276-18   Subsection (a)(2) may be substituted year for year for the required

276-19   college education, with a maximum substitution of two years.

276-20         (c)  The director shall establish qualifications for parole

276-21   officers and supervisors that are the same as qualifications for

276-22   community supervision and corrections department officers imposed

276-23   by Section 76.005.  A person may not begin employment as a parole

276-24   officer or supervisor after September 1, 1990, unless the person

 277-1   meets the qualifications established by the director.

 277-2         (d)  A person who is serving as a peace officer or as a

 277-3   prosecuting attorney may not act as a parole officer or be

 277-4   responsible for supervising a releasee.

 277-5         Sec. 508.114.  PAROLE OFFICERS, SUPERVISORS: ADDITIONAL

 277-6   DUTIES.  (a)  The judge of a court having original jurisdiction of

 277-7   criminal actions may, with the approval of the director, designate

 277-8   a parole officer or supervisor as a community supervision and

 277-9   corrections department officer.  The director must give prior

277-10   written approval for the payment of a proportional part of the

277-11   salary paid to the parole officer or supervisor in compensation for

277-12   service as a community supervision and corrections department

277-13   officer.  The director shall periodically report to the governor

277-14   and the legislature the proportional salary payments.

277-15         (b)  A parole officer or supervisor, on request of the

277-16   governor or on order of the director, shall be responsible for

277-17   supervising an inmate placed on conditional pardon or granted an

277-18   emergency absence under escort.

277-19         Sec. 508.115.  NOTIFICATION OF RELEASE OF INMATE.  (a)  Not

277-20   later than the 11th day before the date the board orders the

277-21   release on parole of an inmate or not later than the 11th day after

277-22   the date the board recommends that the governor grant executive

277-23   clemency, the division shall notify the sheriffs, the prosecuting

277-24   attorneys, and the district judges in the county in which the

 278-1   inmate was convicted and the county to which the inmate is released

 278-2   that the board is considering release on parole or the governor is

 278-3   considering clemency.

 278-4         (b)  In a case in which there was a change of venue, the

 278-5   division shall notify the sheriff, the prosecuting attorney, and

 278-6   the district judge in the county in which the prosecution was

 278-7   originated if, not later than the 30th day after the date the

 278-8   inmate was sentenced, those officials request in writing that the

 278-9   division give the officials notice under this section of a release

278-10   of the inmate.

278-11         (c)  Not later than the 10th day after the date a parole

278-12   panel orders the transfer of an inmate to a halfway house under

278-13   this chapter, the division shall give notice in accordance with

278-14   Subsection (d) to:

278-15               (1)  the sheriff of the county in which the inmate was

278-16   convicted;

278-17               (2)  the sheriff of the county in which the halfway

278-18   house is located; and

278-19               (3)  the attorney who represents the state in the

278-20   prosecution of felonies in the county in which the halfway house is

278-21   located.

278-22         (d)  The notice must state:

278-23               (1)  the inmate's name;

278-24               (2)  the county in which the inmate was convicted; and

 279-1               (3)  the offense for which the inmate was convicted.

 279-2         Sec. 508.116.  PAROLE INFORMATION PROGRAM.  (a)  The division

 279-3   shall develop and implement a comprehensive program to inform

 279-4   inmates, the inmates' families, and other interested parties about

 279-5   the parole process.

 279-6         (b)  The division shall update the program annually.

 279-7         Sec. 508.117.  VICTIM NOTIFICATION.  (a)  Before a parole

 279-8   panel considers for release on parole an inmate who is serving a

 279-9   sentence for an offense in which a person was a victim, the

279-10   division, using the name and address provided on the victim impact

279-11   statement, shall make a reasonable effort to notify:

279-12               (1)  the victim;

279-13               (2)  if the victim has a guardian, the guardian; or

279-14               (3)  if the victim is deceased, a close relative of the

279-15   deceased victim.

279-16         (b)  A victim, guardian of a victim, or close relative of a

279-17   deceased victim who would have been entitled to notification of

279-18   parole consideration by the division but failed to provide a victim

279-19   impact statement containing the person's name and address may file

279-20   with the division a written request for notification.  After

279-21   receiving the written request, the division shall grant to the

279-22   person all privileges, including notification under this section,

279-23   to which the person would have been entitled had the person

279-24   submitted a completed victim impact statement.

 280-1         (c)  If the notice is sent to a guardian or close relative of

 280-2   a deceased victim, the notice must contain a request by the

 280-3   division that the guardian or relative inform other persons having

 280-4   an interest in the matter that the inmate is being considered for

 280-5   release on parole.

 280-6         (d)  The failure of the division to comply with notice

 280-7   requirements of this section is not a ground for revocation of

 280-8   parole.

 280-9         (e)  Before an inmate is released from the institutional

280-10   division on parole or to mandatory supervision, the pardons and

280-11   paroles division shall give notice of the release to a person

280-12   entitled to notification of parole consideration for the inmate

280-13   under Subsection (a) or (b).

280-14         (f)  Except as necessary to comply with this section, the

280-15   board or the department may not disclose to any person the name or

280-16   address of a person entitled to notice under this section unless:

280-17               (1)  the person approves the disclosure; or

280-18               (2)  a court determines that there is good cause for

280-19   disclosure and orders the board or the department to disclose the

280-20   information.

280-21         (g)  In this section:

280-22               (1)  "Close relative of a deceased victim" means a

280-23   person who was:

280-24                     (A)  the spouse of the victim at the time of the

 281-1   victim's death;

 281-2                     (B)  a parent of the deceased victim; or

 281-3                     (C)  an adult brother, sister, or child of the

 281-4   deceased victim.

 281-5               (2)  "Guardian of a victim" means a person who is the

 281-6   legal guardian of a victim, whether or not the legal relationship

 281-7   between the guardian and the victim exists because of the age of

 281-8   the victim or the physical or mental incompetency of the victim.

 281-9               (3)  "Victim" means a person who:

281-10                     (A)  is a victim of sexual assault, kidnapping,

281-11   aggravated robbery, or felony stalking; or

281-12                     (B)  has suffered bodily injury or death as the

281-13   result of the criminal conduct of another.

281-14         Sec. 508.118.  HALFWAY HOUSES.  (a)  The division, in

281-15   conjunction with the institutional division, shall use halfway

281-16   houses to divert from housing in regular units of the institutional

281-17   division suitable low-risk inmates and other inmates who would

281-18   benefit from a smoother transition from incarceration to supervised

281-19   release.

281-20         (b)  Before transferring an inmate to a halfway house, the

281-21   division shall send to the director of the halfway house all

281-22   information relating to the inmate that the division determines

281-23   will aid the halfway house in helping the inmate make a transition

281-24   from the institutional division to supervised release.

 282-1         (c)  The division is responsible for supervising an inmate:

 282-2               (1)  for whom a presumptive parole date has been

 282-3   established; and

 282-4               (2)  who is transferred into a preparole residence in a

 282-5   halfway house under Subchapter A, Chapter 499.

 282-6         Sec. 508.119.  COMMUNITY RESIDENTIAL FACILITIES.  (a)  The

 282-7   purpose of a community residential facility is to provide housing,

 282-8   supervision, counseling, personal, social, and work adjustment

 282-9   training, and other programs to:

282-10               (1)  releasees who are required by a parole panel as a

282-11   condition of release on parole or to mandatory supervision to serve

282-12   a period in a community residential facility; and

282-13               (2)  releasees whose parole or mandatory supervision

282-14   has been continued or modified under Section 508.283 and on whom

282-15   sanctions have been imposed under that section.

282-16         (b)  The division may establish and operate, or contract for

282-17   the operation of, community residential facilities.

282-18         (c)  The division may contract with a public or private

282-19   vendor for the financing, construction, operation, or management of

282-20   a community residential facility using a lease-purchase or

282-21   installment sale contract to provide or supplement housing, board,

282-22   or supervision for releasees placed in a community residential

282-23   facility.  A releasee housed or supervised in a facility operated

282-24   by a vendor under a contract is subject to the same laws as if the

 283-1   housing or supervision were provided directly by the division.

 283-2         (d)  Unless the division or a vendor proposing to operate a

 283-3   community residential facility provides notice of a following

 283-4   proposed action and a hearing on the issues in the same manner as

 283-5   required under Section 509.010, the division may not:

 283-6               (1)  establish or contract for a community residential

 283-7   facility;

 283-8               (2)  change the use of a community residential

 283-9   facility;

283-10               (3)  significantly increase the capacity of a community

283-11   residential facility; or

283-12               (4)  increase the capacity of a community residential

283-13   facility to more than 500 residents, regardless of whether the

283-14   increase is significant.

283-15         (e)  Subsection (d) applies to any residential facility that

283-16   the division establishes or contracts for under:

283-17               (1)  this chapter;

283-18               (2)  Subchapter C, Chapter 497; or

283-19               (3)  Subchapter A, Chapter 499.

283-20         (f)  The Texas Board of Criminal Justice shall adopt rules

283-21   necessary for the management of a community residential facility.

283-22         (g)  The division may charge to a releasee housed in a

283-23   community residential facility a reasonable fee for the cost of

283-24   housing, board, and the part of the administrative costs of the

 284-1   facility that is properly allocable to the releasee.  The fee may

 284-2   not exceed the actual costs to the division for services to that

 284-3   releasee.  The division may not deny placement in a community

 284-4   residential facility to a releasee because the releasee is unable

 284-5   to pay the fee.

 284-6         (h)  A parole panel or a designated agent of the division may

 284-7   grant a limited release to a releasee placed in a community

 284-8   residential facility to maintain or seek employment or

 284-9   participation in an education or training course or to seek housing

284-10   after release from the facility.

284-11            (Sections 508.120-508.140 reserved for expansion

284-12   SUBCHAPTER E.  PAROLE AND MANDATORY SUPERVISION; RELEASE PROCEDURES

284-13         Sec. 508.141.  AUTHORITY TO CONSIDER AND ORDER RELEASE ON

284-14   PAROLE.  (a)  A parole panel may consider for release and release

284-15   on parole an inmate who:

284-16               (1)  has been sentenced to a term of imprisonment in

284-17   the institutional division;

284-18               (2)  is confined in a penal or correctional

284-19   institution, including a jail in this state, a federal correctional

284-20   institution, or a jail or a correctional institution in another

284-21   state; and

284-22               (3)  is eligible for release on parole.

284-23         (b)  A parole is issued only on the order of a parole panel.

284-24         (c)  Before releasing an inmate on parole, a parole panel may

 285-1   have the inmate appear before the panel and interview the inmate.

 285-2         (d)  A parole panel may release an inmate on parole during

 285-3   the parole month established for the inmate if the panel determines

 285-4   that the inmate's release will not increase the likelihood of harm

 285-5   to the public.

 285-6         (e)  A parole panel may release an inmate on parole only

 285-7   when:

 285-8               (1)  arrangements have been made for the inmate's

 285-9   employment or for the inmate's maintenance and care; and

285-10               (2)  the parole panel believes that the inmate is able

285-11   and willing to fulfill the obligations of a law-abiding citizen.

285-12         (f)  A parole panel may order a parole only for the best

285-13   interest of society and not as an award of clemency.

285-14         Sec. 508.142.  PERIOD OF PAROLE.  (a)  The institutional

285-15   division shall provide the board with sentence time credit

285-16   information for each inmate who is eligible for release on parole.

285-17         (b)  Good conduct time credit is computed for an inmate as if

285-18   the inmate were confined in the institutional division during the

285-19   entire time the inmate was actually confined.

285-20         (c)  The period of parole is computed by subtracting from the

285-21   term for which the inmate was sentenced the calendar time served on

285-22   the sentence.

285-23         Sec. 508.143.  LEGAL CUSTODY OF RELEASEE.  (a)  A releasee

285-24   while on parole is in the legal custody of the division.

 286-1         (b)  A releasee while on mandatory supervision is in the

 286-2   legal custody of the state.

 286-3         Sec. 508.144.  PAROLE GUIDELINES.  (a)  The board shall:

 286-4               (1)  develop according to an acceptable research method

 286-5   the parole guidelines that are the basic criteria on which a parole

 286-6   decision is made;

 286-7               (2)  base the guidelines on the seriousness of the

 286-8   offense and the likelihood of a favorable parole outcome;

 286-9               (3)  implement the guidelines; and

286-10               (4)  review the guidelines periodically.

286-11         (b)  If a board member deviates from the parole guidelines in

286-12   voting on a parole decision, the member shall:

286-13               (1)  produce a brief written statement describing the

286-14   circumstances regarding the departure from the guidelines; and

286-15               (2)  place a copy of the statement in the file of the

286-16   inmate for whom the parole decision was made.

286-17         (c)  The board shall keep a copy of a statement made under

286-18   Subsection (b) in a central location.

286-19         Sec. 508.145.  ELIGIBILITY FOR RELEASE ON PAROLE; COMPUTATION

286-20   OF PAROLE ELIGIBILITY DATE.  (a)  An inmate under sentence of death

286-21   is not eligible for release on parole.

286-22         (b)  An inmate serving a life sentence for a capital felony

286-23   is not eligible for release on parole until the actual calendar

286-24   time the inmate has served, without consideration of good conduct

 287-1   time, equals 40 calendar years.

 287-2         (c)  An inmate serving a life sentence under Section

 287-3   12.42(d)(2), Penal Code, is not eligible for release on parole

 287-4   until the actual calendar time the inmate has served, without

 287-5   consideration of good conduct time, equals 35 calendar years.

 287-6         (d)  An inmate serving a sentence for an offense described by

 287-7   Section 3g(a)(1)(A), (C), (D), (E), (F), (G), or (H), Article

 287-8   42.12, Code of Criminal Procedure, or for an offense for which the

 287-9   judgment contains an affirmative finding under Section 3g(a)(2) of

287-10   that article, is not eligible for release on parole until the

287-11   inmate's actual calendar time served, without consideration of good

287-12   conduct time, equals one-half of the sentence or 30 calendar years,

287-13   whichever is less, but in no event is the inmate eligible for

287-14   release on parole in less than two calendar years.

287-15         (e)  An inmate serving a sentence for which the punishment is

287-16   increased under Section 481.134, Health and Safety Code, is not

287-17   eligible for release on parole until the inmate's actual calendar

287-18   time served, without consideration of good conduct time, equals

287-19   five years or the term to which the inmate was sentenced, whichever

287-20   is less.

287-21         (f)  Except as provided by Section 508.146, any other inmate

287-22   is eligible for release on parole when the inmate's actual calendar

287-23   time served plus good conduct time equals one-fourth of the

287-24   sentence imposed or 15 years, whichever is less.

 288-1         Sec. 508.146.  SPECIAL NEEDS PAROLE.  (a)  An inmate serving

 288-2   a sentence for which parole eligibility is otherwise determined

 288-3   under Section 508.145(f) may become eligible for release on special

 288-4   needs parole on a date designated by a parole panel that is earlier

 288-5   than the date computed under that section if:

 288-6               (1)  the institutional division identifies the inmate

 288-7   as being elderly, physically handicapped, mentally ill, terminally

 288-8   ill, or mentally retarded;

 288-9               (2)  the parole panel determines that, based on the

288-10   inmate's condition and a medical evaluation, the inmate does not

288-11   constitute a threat to public safety or a threat to commit an

288-12   offense; and

288-13               (3)  the pardons and paroles division has prepared for

288-14   the inmate a special needs parole plan that ensures appropriate

288-15   supervision, service provision, and placement.

288-16         (b)  An inmate diagnosed as mentally ill or mentally retarded

288-17   may be released on special needs parole only if the inmate's

288-18   special needs parole plan under Subsection (a)(3) is approved by

288-19   the Texas Council on Offenders with Mental Impairments.

288-20         Sec. 508.147.  RELEASE TO MANDATORY SUPERVISION.  (a)  Except

288-21   as provided by Section 508.149, a parole panel shall order the

288-22   release of an inmate who is not on parole to mandatory supervision

288-23   when the actual calendar time the inmate has served plus any

288-24   accrued good conduct time equals the term to which the inmate was

 289-1   sentenced.

 289-2         (b)  An inmate released to mandatory supervision is

 289-3   considered to be released on parole.

 289-4         (c)  To the extent practicable, arrangements for the inmate's

 289-5   proper employment, maintenance, and care must be made before the

 289-6   inmate's release to mandatory supervision.

 289-7         Sec. 508.148.  PERIOD OF MANDATORY SUPERVISION.  (a)  The

 289-8   period of mandatory supervision is computed by subtracting from the

 289-9   term for which the inmate was sentenced the calendar time served on

289-10   the sentence.

289-11         (b)  The time served on mandatory supervision is computed as

289-12   calendar time.

289-13         Sec. 508.149.  INMATES INELIGIBLE FOR MANDATORY SUPERVISION.

289-14   (a)  An inmate may not be released to mandatory supervision if the

289-15   inmate is serving a sentence for or has been previously convicted

289-16   of:

289-17               (1)  an offense for which the judgment contains an

289-18   affirmative finding under Section 3g(a)(2), Article 42.12, Code of

289-19   Criminal Procedure;

289-20               (2)  a first degree felony under Section 19.02, Penal

289-21   Code;

289-22               (3)  a capital felony under Section 19.03, Penal Code;

289-23               (4)  a first degree felony or a second degree felony

289-24   under Section 20.04, Penal Code;

 290-1               (5)  a second degree felony under Section 22.011, Penal

 290-2   Code;

 290-3               (6)  a first degree felony or a second degree felony

 290-4   under Section 22.02, Penal Code;

 290-5               (7)  a first degree felony under Section 22.021, Penal

 290-6   Code;

 290-7               (8)  a first degree felony under Section 22.04, Penal

 290-8   Code;

 290-9               (9)  a first degree felony under Section 28.02, Penal

290-10   Code;

290-11               (10)  a second degree felony under Section 29.02, Penal

290-12   Code;

290-13               (11)  a first degree felony under Section 29.03, Penal

290-14   Code;

290-15               (12)  a first degree felony under Section 30.02, Penal

290-16   Code; or

290-17               (13)  a felony for which the punishment is increased

290-18   under Section 481.134, Health and Safety Code.

290-19         (b)  An inmate may not be released to mandatory supervision

290-20   if a parole panel determines that:

290-21               (1)  the inmate's accrued good conduct time is not an

290-22   accurate reflection of the inmate's potential for rehabilitation;

290-23   and

290-24               (2)  the inmate's release would endanger the public.

 291-1         (c)  A parole panel that makes a determination under

 291-2   Subsection (b) shall specify in writing the reasons for the

 291-3   determination.

 291-4         (d)  A determination under Subsection (b) is not subject to

 291-5   administrative or judicial review, except that the parole panel

 291-6   making the determination shall reconsider the inmate for release to

 291-7   mandatory supervision at least twice during the two years after the

 291-8   date of the determination.

 291-9         Sec. 508.150.  CONSECUTIVE FELONY SENTENCES.  (a)  If an

291-10   inmate is sentenced to consecutive felony sentences under Article

291-11   42.08, Code of Criminal Procedure, a parole panel shall designate

291-12   during each sentence the date, if any, the inmate would have been

291-13   eligible for release on parole if the inmate had been sentenced to

291-14   serve a single sentence.

291-15         (b)  For the purposes of Article 42.08, Code of Criminal

291-16   Procedure, the judgment and sentence of an inmate sentenced for a

291-17   felony, other than the last sentence in a series of consecutive

291-18   sentences, cease to operate:

291-19               (1)  when the actual calendar time served by the inmate

291-20   equals the sentence imposed by the court; or

291-21               (2)  on the date a parole panel designates as the date

291-22   the inmate would have been eligible for release on parole if the

291-23   inmate had been sentenced to serve a single sentence.

291-24         (c)  A parole panel may not:

 292-1               (1)  consider consecutive sentences as a single

 292-2   sentence for purposes of parole; or

 292-3               (2)  release on parole an inmate sentenced to serve

 292-4   consecutive felony sentences before the date the inmate becomes

 292-5   eligible for release on parole from the last sentence imposed on

 292-6   the inmate.

 292-7         (d)  A parole panel may not use calendar time served and good

 292-8   conduct time accrued by an inmate that are used by the panel in

 292-9   determining when a judgment and sentence cease to operate:

292-10               (1)  for the same purpose in determining that date in a

292-11   subsequent sentence in the same series of consecutive sentences; or

292-12               (2)  for determining the date an inmate becomes

292-13   eligible for release on parole from the last sentence in a series

292-14   of consecutive sentences.

292-15         Sec. 508.151.  PRESUMPTIVE PAROLE DATE.  (a)  For the purpose

292-16   of diverting inmates to halfway houses under Section 508.118, a

292-17   parole panel, after reviewing all available pertinent information,

292-18   may designate a presumptive parole date for an inmate who:

292-19               (1)  has never been convicted of an offense listed

292-20   under Section 3g(a)(1), Article 42.12, Code of Criminal Procedure;

292-21   and

292-22               (2)  has never had a conviction with a judgment that

292-23   contains an affirmative finding under Section 3g(a)(2), Article

292-24   42.12, Code of Criminal Procedure.

 293-1         (b)  The presumptive parole date may not be a date that is

 293-2   earlier than the inmate's initial parole eligibility date computed

 293-3   under Section 508.145.

 293-4         (c)  A parole panel may rescind or postpone a previously

 293-5   established presumptive parole date on the basis of a report from

 293-6   an agent of the division responsible for supervision or an agent of

 293-7   the institutional division acting in the case.

 293-8         (d)  If an inmate transferred to preparole status has

 293-9   satisfactorily served the inmate's sentence in the halfway house to

293-10   which the inmate is assigned from the date of transfer to the

293-11   presumptive parole date, without rescission or postponement of the

293-12   date, the parole panel shall order the inmate's release on parole

293-13   and issue an appropriate certificate of release.  The releasee is

293-14   subject to the provisions of this chapter governing release on

293-15   parole.

293-16         Sec. 508.152.  PROPOSED PROGRAM OF INSTITUTIONAL PROGRESS.

293-17   (a)  Not later than the 120th day after the date an inmate is

293-18   admitted to the institutional division, the department shall obtain

293-19   all pertinent information relating to the inmate, including:

293-20               (1)  the court judgment;

293-21               (2)  any sentencing report;

293-22               (3)  the circumstances of the inmate's offense;

293-23               (4)  the inmate's previous social history and criminal

293-24   record;

 294-1               (5)  the inmate's physical and mental health record;

 294-2               (6)  a record of the inmate's conduct, employment

 294-3   history, and attitude in the institutional division; and

 294-4               (7)  any written comments or information provided by

 294-5   local trial officials or victims of the offense.

 294-6         (b)  The department shall:

 294-7               (1)  establish for the inmate a proposed program of

 294-8   measurable institutional progress; and

 294-9               (2)  submit the proposed program to the board at the

294-10   time of the board's consideration of the inmate's case for release.

294-11         (c)  The board shall conduct an initial review of an eligible

294-12   inmate not later than the 180th day after the date of the inmate's

294-13   admission to the institutional division.

294-14         (d)  Before the inmate is approved for release on parole, the

294-15   inmate must agree to participate in the programs and activities

294-16   described by the proposed program of measurable institutional

294-17   progress.

294-18         (e)  The institutional division shall:

294-19               (1)  work closely with the board to monitor the

294-20   progress of the inmate in the institutional division; and

294-21               (2)  report the progress to the board before the

294-22   inmate's release.

294-23         Sec. 508.153.  STATEMENTS OF VICTIM.  (a)  A parole panel

294-24   considering for release on parole an inmate who is serving a

 295-1   sentence for an offense in which a person was a victim shall allow:

 295-2               (1)  the victim, a guardian of the victim, a close

 295-3   relative of the deceased victim, or a representative of the victim,

 295-4   the victim's guardian, or the victim's close relative to provide a

 295-5   written statement to the panel; and

 295-6               (2)  the victim, guardian of the victim, or close

 295-7   relative of the deceased victim to appear in person before the

 295-8   board members to present a statement of the person's views about:

 295-9                     (A)  the offense;

295-10                     (B)  the inmate; and

295-11                     (C)  the effect of the offense on the victim.

295-12         (b)  If more than one person is entitled to appear in person

295-13   before the board members, only the person chosen by all persons

295-14   entitled to appear as the persons' sole representative may appear

295-15   before the board members.

295-16         (c)  The panel shall consider the statements and the

295-17   information provided in a victim impact statement in determining

295-18   whether to recommend an inmate for release on parole.

295-19         (d)  This section does not limit the number of persons who

295-20   may provide written statements for or against the release of the

295-21   inmate on parole.

295-22         (e)  In this section, "close relative of a deceased victim,"

295-23   "guardian of a victim," and "victim" have the meanings assigned by

295-24   Section 508.117.

 296-1         Sec. 508.154.  CONTRACT ON RELEASE.  (a)  An inmate to be

 296-2   released on parole shall be furnished a contract stating in clear

 296-3   and intelligible language the conditions and rules of parole.

 296-4         (b)  Acceptance, signing, and execution of the contract by

 296-5   the inmate to be paroled is a precondition to release on parole.

 296-6         (c)  An inmate released to mandatory supervision shall be

 296-7   furnished a written statement stating in clear and intelligible

 296-8   language the conditions and rules of mandatory supervision.

 296-9         (d)  A releasee while on parole or mandatory supervision must

296-10   be amenable to the conditions of supervision ordered by a parole

296-11   panel.

296-12         Sec. 508.155.  COMPLETION OF PAROLE PERIOD.  (a)  To complete

296-13   a parole period, a releasee must serve the entire period of parole.

296-14         (b)  The time on parole is computed as calendar time.

296-15         (c)  The division may allow a releasee to serve the remainder

296-16   of the releasee's sentence without supervision and without being

296-17   required to report if:

296-18               (1)  the releasee has been under supervision for at

296-19   least one-half of the time that remained on the releasee's sentence

296-20   when the releasee was released from imprisonment;

296-21               (2)  during the period of supervision the releasee's

296-22   parole or release to mandatory supervision has not been revoked;

296-23   and

296-24               (3)  the division determines:

 297-1                     (A)  that the releasee has made a good faith

 297-2   effort to comply with any restitution order imposed on the releasee

 297-3   by a court; and

 297-4                     (B)  that allowing the releasee to serve the

 297-5   remainder of the releasee's sentence without supervision and

 297-6   reporting is in the best interest of society.

 297-7         (d)  The division may require a person released from

 297-8   supervision and reporting under Subsection (c) to resubmit to

 297-9   supervision and resume reporting at any time and for any reason.

297-10         Sec. 508.156.  DETERMINATE SENTENCE PAROLE.  (a)  Before the

297-11   release of a person who is transferred under Section 61.081(f) or

297-12   61.084(f) or (g), Human Resources Code, to the division for release

297-13   on parole, a parole panel shall review the person's records and may

297-14   interview the person or any other person the panel considers

297-15   necessary to determine the conditions of parole.  The panel may

297-16   impose any reasonable condition of parole on the person that the

297-17   panel may impose on an adult inmate under this chapter.

297-18         (b)  The panel shall furnish the person with a written

297-19   statement clearly describing the conditions and rules of parole.

297-20   The person must accept and sign the statement as a precondition to

297-21   release on parole.

297-22         (c)  While on parole, the person remains in the legal custody

297-23   of the state and shall comply with the conditions of parole ordered

297-24   by a panel under this section.

 298-1         (d)  The period of parole for a person released on parole

 298-2   under this section is the term for which the person was sentenced

 298-3   less calendar time served at the Texas Youth Commission and in a

 298-4   juvenile detention facility in connection with the conduct for

 298-5   which the person was adjudicated.

 298-6         (e)  If a parole panel revokes the person's parole, the panel

 298-7   may require the person to serve the remaining portion of the

 298-8   person's sentence in the institutional division.  The remaining

 298-9   portion of the person's sentence is computed without credit for the

298-10   time from the date of the person's release to the date of

298-11   revocation.  The panel may not recommit the person to the Texas

298-12   Youth Commission.

298-13         (f)  For purposes of this chapter, a person released from the

298-14   Texas Youth Commission on parole under this section is considered

298-15   to have been convicted of the offense for which the person has been

298-16   adjudicated.

298-17            (Sections 508.157-508.180 reserved for expansion

298-18            SUBCHAPTER F.  MANDATORY CONDITIONS OF PAROLE OR

298-19                          MANDATORY SUPERVISION

298-20         Sec. 508.181.  RESIDENCE DURING RELEASE.  (a)  Except as

298-21   provided by Subsections (b) and (c), a parole panel shall require

298-22   as a condition of parole or mandatory supervision that the releasee

298-23   reside in the county in which:

298-24               (1)  the releasee resided at the time of committing the

 299-1   offense for which the releasee was sentenced to the institutional

 299-2   division; or

 299-3               (2)  the releasee committed the offense for which the

 299-4   releasee was sentenced to the institutional division, if the

 299-5   releasee was not a resident of this state at the time of committing

 299-6   the offense.

 299-7         (b)  A parole panel may require a releasee to reside in a

 299-8   county other than the county required under Subsection (a) to:

 299-9               (1)  protect the life or safety of:

299-10                     (A)  a victim of the releasee's offense;

299-11                     (B)  the releasee;

299-12                     (C)  a witness in the case; or

299-13                     (D)  any other person; or

299-14               (2)  increase the likelihood of the releasee's

299-15   successful completion of parole or mandatory supervision, because

299-16   of:

299-17                     (A)  written expressions of significant public

299-18   concern in the county in which the releasee would otherwise be

299-19   required to reside;

299-20                     (B)  the presence of family members or friends in

299-21   the other county who have expressed a willingness to assist the

299-22   releasee in successfully completing the conditions of the

299-23   releasee's parole or mandatory supervision;

299-24                     (C)  the verified existence of a job offer in the

 300-1   other county; or

 300-2                     (D)  the availability of a treatment program,

 300-3   educational program, or other social service program in the other

 300-4   county that is not available in the county in which the releasee is

 300-5   otherwise required to reside under Subsection (a).

 300-6         (c)  At any time after a releasee is released on parole or to

 300-7   mandatory supervision, a parole panel may modify the conditions of

 300-8   parole or mandatory supervision to require the releasee to reside

 300-9   in a county other than the county required by the original

300-10   conditions.  In making a decision under this subsection, a parole

300-11   panel must consider the factors listed under Subsection (b).

300-12         (d)  If a parole panel initially requires the releasee to

300-13   reside in a county other than the county required under Subsection

300-14   (a), the parole panel shall subsequently require the releasee to

300-15   reside in the county described under Subsection (a) if the

300-16   requirement that the releasee reside in the other county was based

300-17   on:

300-18               (1)  the verified existence of a job offer under

300-19   Subsection (b)(2)(C) and the releasee is no longer employed or

300-20   actively seeking employment; or

300-21               (2)  the availability of a treatment program,

300-22   educational program, or other social service program under

300-23   Subsection (b)(2)(D) and the releasee:

300-24                     (A)  no longer regularly participates in the

 301-1   program as required by a condition of parole or mandatory

 301-2   supervision; or

 301-3                     (B)  has successfully completed the program but

 301-4   has violated another condition of the releasee's parole or

 301-5   mandatory supervision.

 301-6         (e)  If a parole panel requires the releasee to reside in a

 301-7   county other than the county required under Subsection (a), the

 301-8   panel shall:

 301-9               (1)  state in writing the reason for the panel's

301-10   decision; and

301-11               (2)  place the statement in the releasee's permanent

301-12   record.

301-13         (f)  This section does not apply to a decision by a parole

301-14   panel to require a releasee to serve the period of parole or

301-15   mandatory supervision in another state.

301-16         Sec. 508.182.  PAROLE SUPERVISION FEE; ADMINISTRATIVE FEE.

301-17   (a)  A parole panel shall require as a condition of parole or

301-18   mandatory supervision that a releasee pay to the division for each

301-19   month during which the releasee is under parole supervision:

301-20               (1)  a parole supervision fee of $10; and

301-21               (2)  an administrative fee of $8.

301-22         (b)  A fee under this section applies to an inmate released

301-23   in another state who is required as a condition of the inmate's

301-24   release to report to a parole officer or supervisor in this state

 302-1   for parole supervision.

 302-2         (c)  On the request of the releasee, a parole panel may allow

 302-3   the releasee to defer one or more payments under this section.  The

 302-4   releasee remains responsible for payment of the fee and shall pay

 302-5   the amount of the deferred payment not later than the second

 302-6   anniversary of the date the payment becomes due.

 302-7         (d)  The Texas Board of Criminal Justice shall adopt rules

 302-8   relating to the method of payment required of the releasee.

 302-9         (e)  The division shall remit fees collected under this

302-10   section to the comptroller.  The comptroller shall deposit the fees

302-11   collected under:

302-12               (1)  Subsection (a)(1) in the general revenue fund; and

302-13               (2)  Subsection (a)(2) in the compensation to victims

302-14   of crime fund.

302-15         (f)  In a parole or mandatory supervision revocation hearing

302-16   under Section 508.281 at which it is alleged only that the releasee

302-17   failed to make a payment under this section, it is an affirmative

302-18   defense to revocation that the releasee is unable to pay the amount

302-19   as ordered by a parole panel.  The releasee must prove the

302-20   affirmative defense by a preponderance of the evidence.

302-21         Sec. 508.183.  EDUCATIONAL SKILL LEVEL.  (a)  A parole panel

302-22   shall require as a condition of release on parole or release to

302-23   mandatory supervision that an inmate demonstrate to the parole

302-24   panel whether the inmate has an educational skill level that is

 303-1   equal to or greater than the average skill level of students who

 303-2   have completed the sixth grade in a public school in this state.

 303-3         (b)  If the parole panel determines that the inmate has not

 303-4   attained that skill level, the parole panel shall require as a

 303-5   condition of parole or mandatory supervision that the inmate as a

 303-6   releasee attain that level of educational skill, unless the parole

 303-7   panel determines that the inmate lacks the intellectual capacity or

 303-8   the learning ability to ever achieve that level of skill.

 303-9         Sec. 508.184.  CONTROLLED SUBSTANCE TESTING.  (a)  A parole

303-10   panel shall require as a condition of parole or mandatory

303-11   supervision that a releasee submit to testing for controlled

303-12   substances on evidence that:

303-13               (1)  a controlled substance is present in the

303-14   releasee's body;

303-15               (2)  the releasee has used a controlled substance; or

303-16               (3)  the use of a controlled substance is related to

303-17   the offense for which the releasee was convicted.

303-18         (b)  The Texas Board of Criminal Justice by rule shall adopt

303-19   procedures for the administration of a test required under this

303-20   section.

303-21         Sec. 508.185.  SUBSTANCE ABUSE TREATMENT.  (a)  A parole

303-22   panel shall require as a condition of release on parole or release

303-23   to mandatory supervision that an inmate who immediately before

303-24   release is a participant in the program established under Section

 304-1   501.0931 participate as a releasee in a drug or alcohol abuse

 304-2   continuum of care treatment program.

 304-3         (b)  The Texas Commission on Alcohol and Drug Abuse shall

 304-4   develop the continuum of care treatment program.

 304-5         Sec. 508.186.  SEX OFFENDER REGISTRATION.  (a)  A parole

 304-6   panel shall require as a condition of parole or mandatory

 304-7   supervision that a releasee required to register as a sex offender

 304-8   under Article 6252-13c.1, Revised Statutes:

 304-9               (1)  register under that article; and

304-10               (2)  pay to the releasee's supervising officer an

304-11   amount equal to the cost, as evidenced by written receipt, incurred

304-12   by the applicable local law enforcement authority for providing

304-13   notice for publication to a newspaper as required by that article.

304-14         (b)  The division shall remit an amount collected under this

304-15   section to the applicable local law enforcement authority.

304-16         (c)  In a parole or mandatory supervision revocation hearing

304-17   under Section 508.281 at which it is alleged only that the releasee

304-18   failed to make a payment under this section, it is an affirmative

304-19   defense to revocation that the releasee is unable to pay the amount

304-20   as ordered by a parole panel.  The releasee must prove the

304-21   affirmative defense by a preponderance of the evidence.

304-22         Sec. 508.187.  CHILD SAFETY ZONE.  (a)  This section applies

304-23   only to a releasee serving a sentence for an offense under:

304-24               (1)  Section 43.25 or 43.26, Penal Code;

 305-1               (2)  Section 21.11, 22.011, 22.021, or 25.02, Penal

 305-2   Code;

 305-3               (3)  Section 20.04(a)(4), Penal Code, if the releasee

 305-4   committed the offense with the intent to violate or abuse the

 305-5   victim sexually; or

 305-6               (4)  Section 30.02, Penal Code, punishable under

 305-7   Subsection (d) of that section, if the releasee committed the

 305-8   offense with the intent to commit a felony listed in Subdivision

 305-9   (2) or (3).

305-10         (b)  A parole panel shall establish a child safety zone

305-11   applicable to a releasee if the panel determines that a child as

305-12   defined by Section 22.011(c), Penal Code, was the victim of the

305-13   offense, by requiring as a condition of parole or mandatory

305-14   supervision that the releasee:

305-15               (1)  not:

305-16                     (A)  supervise or participate in any program that

305-17   includes as participants or recipients persons who are 17 years of

305-18   age or younger and that regularly provides athletic, civic, or

305-19   cultural activities; or

305-20                     (B)  go in, on, or within a distance specified by

305-21   the panel of premises where children commonly gather, including a

305-22   school, day-care facility, playground, public or private youth

305-23   center, public swimming pool, or video arcade facility; and

305-24               (2)  attend psychological counseling sessions for sex

 306-1   offenders with an individual or organization that provides sex

 306-2   offender treatment or counseling as specified by the parole officer

 306-3   supervising the releasee after release.

 306-4         (c)  A parole officer who under Subsection (b)(2) specifies a

 306-5   sex offender treatment provider to provide counseling to a releasee

 306-6   shall:

 306-7               (1)  contact the provider before the releasee is

 306-8   released;

 306-9               (2)  establish the date, time, and place of the first

306-10   session between the releasee and the provider; and

306-11               (3)  request the provider to immediately notify the

306-12   officer if the releasee fails to attend the first session or any

306-13   subsequent scheduled session.

306-14         (d)  At any time after the imposition of a condition under

306-15   Subsection (b)(1), the releasee may request the parole panel to

306-16   modify the child safety zone applicable to the releasee because the

306-17   zone as created by the panel:

306-18               (1)  interferes with the releasee's ability to attend

306-19   school or hold a job and consequently constitutes an undue hardship

306-20   for the releasee; or

306-21               (2)  is broader than necessary to protect the public,

306-22   given the nature and circumstances of the offense.

306-23         (e)  A parole officer supervising a releasee may permit the

306-24   releasee to enter on an event-by-event basis into the child safety

 307-1   zone that the releasee is otherwise prohibited from entering if:

 307-2               (1)  the releasee has served at least two years of the

 307-3   period of supervision imposed on release;

 307-4               (2)  the releasee enters the zone as part of a program

 307-5   to reunite with the releasee's family;

 307-6               (3)  the releasee presents to the parole officer a

 307-7   written proposal specifying:

 307-8                     (A)  where the releasee intends to go within the

 307-9   zone;

307-10                     (B)  why and with whom the releasee is going; and

307-11                     (C)  how the releasee intends to cope with any

307-12   stressful situations that occur;

307-13               (4)  the sex offender treatment provider treating the

307-14   releasee agrees with the officer that the releasee should be

307-15   allowed to attend the event; and

307-16               (5)  the officer and the treatment provider agree on a

307-17   chaperon to accompany the releasee, and the chaperon agrees to

307-18   perform that duty.

307-19         (f)  In this section, "playground," "premises," "school,"

307-20   "video arcade facility," and "youth center" have the meanings

307-21   assigned by Section 481.134, Health and Safety Code.

307-22         Sec. 508.188.  COMMUNITY SERVICE FOR CERTAIN RELEASEES.  A

307-23   parole panel shall require as a condition of parole or mandatory

307-24   supervision that a releasee for whom the court has made an

 308-1   affirmative finding under Article 42.014, Code of Criminal

 308-2   Procedure, perform not less than 300 hours of community service at

 308-3   a project designated by the parole panel that primarily serves the

 308-4   person or group that was the target of the releasee.

 308-5         Sec. 508.189.  PAROLE FEE FOR CERTAIN RELEASEES.  (a)  A

 308-6   parole panel shall require as a condition of parole or mandatory

 308-7   supervision that a releasee convicted of an offense under Section

 308-8   21.08, 21.11, 22.011, 22.021, 25.02, 43.25, or 43.26, Penal Code,

 308-9   pay to the division a parole supervision fee of $5 each month

308-10   during the period of parole supervision.

308-11         (b)  The division shall send fees collected under this

308-12   section to the comptroller.  The comptroller shall deposit the fees

308-13   in the general revenue fund to the credit of the sexual assault

308-14   program fund established under Section 44.0061, Health and Safety

308-15   Code.

308-16            (Sections 508.190-508.220 reserved for expansion

308-17          SUBCHAPTER G.  DISCRETIONARY CONDITIONS OF PAROLE OR

308-18                          MANDATORY SUPERVISION

308-19         Sec. 508.221.  CONDITIONS PERMITTED GENERALLY.  A parole

308-20   panel may impose as a condition of parole or mandatory supervision

308-21   any condition that a court may impose on a defendant placed on

308-22   community supervision under Article 42.12, Code of Criminal

308-23   Procedure, including the condition that a releasee submit to

308-24   testing for controlled substances or submit to electronic

 309-1   monitoring if the parole panel determines that without testing for

 309-2   controlled substances or participation in an electronic monitoring

 309-3   program the inmate would not be released on parole.

 309-4         Sec. 508.222.  PAYMENT OF CERTAIN DAMAGES.  A parole panel

 309-5   may require as a condition of parole or mandatory supervision that

 309-6   a releasee make payments in satisfaction of damages for which the

 309-7   releasee is liable under Section 500.002.

 309-8         Sec. 508.223.  AVOIDING VICTIM.  (a)  A parole panel may

 309-9   require as a condition of parole or mandatory supervision that a

309-10   releasee serving a sentence for an offense under Section 42.072,

309-11   Penal Code, not:

309-12               (1)  communicate directly or indirectly with the

309-13   victim;

309-14               (2)  go to or near the residence, place of employment,

309-15   or business of the victim; or

309-16               (3)  go to or near a school, day-care facility, or

309-17   similar facility where a dependent child of the victim is in

309-18   attendance.

309-19         (b)  If a parole panel requires the prohibition contained in

309-20   Subsection (a)(2) or (3) as a condition of parole or mandatory

309-21   supervision, the parole panel shall specifically describe the

309-22   prohibited locations and the minimum distances, if any, that the

309-23   releasee must maintain from the locations.

309-24         Sec. 508.224.  SUBSTANCE ABUSE COUNSELING.  A parole panel

 310-1   may require as a condition of parole or mandatory supervision that

 310-2   the releasee attend counseling sessions for substance abusers or

 310-3   participate in substance abuse treatment services in a program or

 310-4   facility approved or licensed by the Texas Commission on Alcohol

 310-5   and Drug Abuse if:

 310-6               (1)  the releasee was sentenced for an offense

 310-7   involving a controlled substance; or

 310-8               (2)  the panel determines that the releasee's substance

 310-9   abuse was related to the commission of the offense.

310-10            (Sections 508.225-508.250 reserved for expansion

310-11                         SUBCHAPTER H.  WARRANTS

310-12         Sec. 508.251.  ISSUANCE OF WARRANT OR SUMMONS.  (a)  In a

310-13   case of parole or mandatory supervision, the director or a

310-14   designated agent of the director or, in another case, the board on

310-15   order by the governor, may issue a warrant as provided by Section

310-16   508.252 for the return of:

310-17               (1)  a releasee;

310-18               (2)  an inmate released although not eligible for

310-19   release;

310-20               (3)  a resident released to a preparole or work

310-21   program;

310-22               (4)  an inmate released on emergency reprieve or on

310-23   emergency absence under escort; or

310-24               (5)  a person released on a conditional pardon.

 311-1         (b)  A warrant issued under Subsection (a) must require the

 311-2   return of the person to the institution from which the person was

 311-3   paroled or released.

 311-4         (c)  Instead of the issuance of a warrant under this section,

 311-5   the division may issue to the person a summons requiring the person

 311-6   to appear for a hearing under Section 508.281.  The summons must

 311-7   state the time, date, place, and purpose of the hearing.

 311-8         (d)  A designated agent of the director acts independently

 311-9   from a parole officer and must receive specialized training as

311-10   determined by the director.

311-11         Sec. 508.252.  GROUNDS FOR ISSUANCE OF WARRANT.  A warrant

311-12   may be issued under Section 508.251 if:

311-13               (1)  there is reason to believe that the person has

311-14   been released although not eligible for release;

311-15               (2)  the person has been arrested for an offense;

311-16               (3)  there is a verified complaint stating that the

311-17   person violated a rule or condition of release; or

311-18               (4)  there is reliable evidence that the person has

311-19   exhibited behavior during the person's release that indicates to a

311-20   reasonable person that the person poses a danger to society that

311-21   warrants the person's immediate return to custody.

311-22         Sec. 508.253.  EFFECT ON SENTENCE AFTER ISSUANCE OF WARRANT.

311-23   If it appears a releasee has violated a condition or provision of

311-24   the releasee's parole or mandatory supervision, the date of the

 312-1   issuance of the warrant to the date of the releasee's arrest is not

 312-2   counted as a part of the time served under the releasee's sentence.

 312-3         Sec. 508.254.  DETENTION UNDER WARRANT.  (a)  A person who is

 312-4   the subject of a warrant may be held in custody pending a

 312-5   determination of all facts surrounding the alleged offense,

 312-6   violation of a rule or condition of release, or dangerous behavior.

 312-7         (b)  A warrant authorizes any officer named by the warrant to

 312-8   take custody of the person and detain the person until a parole

 312-9   panel orders the return of the person to the institution from which

312-10   the person was released.

312-11         (c)  Pending a hearing on a charge of parole violation,

312-12   ineligible release, or violation of a condition of mandatory

312-13   supervision, a person returned to custody shall remain confined.

312-14         Sec. 508.255.  STATUS AS FUGITIVE FROM JUSTICE.  (a)  After

312-15   the issuance of a warrant, a person for whose return a warrant was

312-16   issued is a fugitive from justice.

312-17         (b)  The law relating to the right of the state to extradite

312-18   a person and return a fugitive from justice and Article 42.11, Code

312-19   of Criminal Procedure, relating to the waiver of all legal

312-20   requirements to obtain extradition of a fugitive from justice from

312-21   another state to this state, are not impaired by this chapter and

312-22   remain in full force and effect.

312-23         Sec. 508.256.  WITHDRAWAL OF WARRANT.  At any time before

312-24   setting a revocation hearing date under Section 508.282, the

 313-1   division may withdraw a warrant and continue supervision of a

 313-2   releasee.

 313-3            (Sections 508.257-508.280 reserved for expansion

 313-4                  SUBCHAPTER I.  HEARINGS AND SANCTIONS

 313-5         Sec. 508.281.  HEARING.  (a)  A releasee, a person released

 313-6   although ineligible for release, or a person granted a conditional

 313-7   pardon is entitled to a hearing before a parole panel or a

 313-8   designated agent of the board under the rules adopted by the board

 313-9   if the releasee or person:

313-10               (1)  is accused of a violation of the releasee's parole

313-11   or mandatory supervision or the person's conditional pardon, on

313-12   information and complaint by a peace officer or parole officer; or

313-13               (2)  is arrested after an ineligible release.

313-14         (b)  If a parole panel or designated agent of the board

313-15   determines that a releasee or person granted a conditional pardon

313-16   has been convicted of a felony offense committed while an

313-17   administrative releasee and has been sentenced to a term of

313-18   confinement in a penal institution, the determination is considered

313-19   to be a sufficient hearing to revoke the parole or mandatory

313-20   supervision or recommend to the governor revocation of a

313-21   conditional pardon without further hearing, except that the parole

313-22   panel or designated agent shall conduct a hearing to consider

313-23   mitigating circumstances if requested by the releasee or person

313-24   granted a conditional pardon.

 314-1         Sec. 508.282.  DATE OF HEARING; WITHDRAWAL OF WARRANT.  (a)

 314-2   A hearing under Section 508.281 must be held:

 314-3               (1)  not later than the 70th day after the date of

 314-4   arrest under a warrant issued by the director or a designated agent

 314-5   of the director or by the board on order of the governor; and

 314-6               (2)  at a time and place set by a parole panel or

 314-7   designated agent of the board.

 314-8         (b)  Except as provided by Subsection (c), the panel or

 314-9   designated agent may hold the hearing at a date later than the date

314-10   required under Subsection (a) if the panel or designated agent

314-11   determines a delay is necessary to assure due process for the

314-12   person.

314-13         (c)  The authority issuing the warrant shall immediately

314-14   withdraw the warrant if the hearing is not held before the 121st

314-15   day after the date of arrest unless:

314-16               (1)  the person has been removed from the custody of a

314-17   county sheriff by the department and placed in a community

314-18   residential facility;

314-19               (2)  the person is in custody in another state or in a

314-20   federal correctional facility;

314-21               (3)  the person, the attorney representing the person,

314-22   or the attorney representing the state is granted a continuance to

314-23   a date that is not later than the 181st day after the date of

314-24   arrest; or

 315-1               (4)  the person is subject to pending criminal charges

 315-2   that have not been adjudicated.

 315-3         Sec. 508.283.  SANCTIONS.  (a)  After a parole panel or

 315-4   designated agent of the board has held a hearing under Section

 315-5   508.281, the board may, in any manner warranted by the evidence:

 315-6               (1)  recommend to the governor to continue, revoke, or

 315-7   modify the conditional pardon; or

 315-8               (2)  continue, revoke, or modify the parole or

 315-9   mandatory supervision.

315-10         (b)  The parole panel or designated agent shall make a

315-11   recommendation or decision not later than the 30th day after the

315-12   date the hearing is concluded.

315-13         (c)  If a person's parole, mandatory supervision, or

315-14   conditional pardon is revoked, the person may be required to serve

315-15   the remaining portion of the sentence on which the person was

315-16   released.  The remaining portion is computed without credit for the

315-17   time from the date of the person's release to the date of

315-18   revocation.

315-19         (d)  If a warrant is issued charging a violation of a release

315-20   condition, the sentence time credit may be suspended until a

315-21   determination is made in the case.  The suspended time credit may

315-22   be reinstated if the parole, mandatory supervision, or conditional

315-23   pardon is continued.

315-24            (Sections 508.284-508.310 reserved for expansion

 316-1                      SUBCHAPTER J.  MISCELLANEOUS

 316-2         Sec. 508.311.  DUTY TO PROVIDE INFORMATION.  On request of a

 316-3   member of the board or employee of the board or department, a

 316-4   public official of the state, including a judge, district attorney,

 316-5   county attorney, or police officer, who has information relating to

 316-6   an inmate eligible for parole shall send to the department in

 316-7   writing the information in the official's possession or under the

 316-8   official's control.

 316-9         Sec. 508.312.  INFORMATION ON RECIDIVISM OF RELEASEES.  The

316-10   Texas Board of Criminal Justice shall collect information on

316-11   recidivism of releasees under the supervision of the division and

316-12   shall use the information to evaluate operations.

316-13         Sec. 508.313.  CONFIDENTIAL INFORMATION.  (a)  All

316-14   information obtained and maintained, including a victim protest

316-15   letter or other correspondence, a victim impact statement, a list

316-16   of inmates eligible for release on parole, and an arrest record of

316-17   an inmate, is confidential and privileged if the information

316-18   relates to:

316-19               (1)  an inmate of the institutional division subject to

316-20   release on parole, release to mandatory supervision, or executive

316-21   clemency;

316-22               (2)  a releasee; or

316-23               (3)  a person directly identified in any proposed plan

316-24   of release for an inmate.

 317-1         (b)  Statistical and general information relating to the

 317-2   parole and mandatory supervision system, including the names of

 317-3   releasees and data recorded relating to parole and mandatory

 317-4   supervision services, is not confidential or privileged and must be

 317-5   made available for public inspection at any reasonable time.

 317-6         (c)  The department may provide information that is

 317-7   confidential and privileged under Subsection (a) to:

 317-8               (1)  the governor;

 317-9               (2)  a member of the board;

317-10               (3)  the Criminal Justice Policy Council in performing

317-11   duties of the council under Section 413.021; or

317-12               (4)  an eligible entity requesting information for a

317-13   law enforcement, prosecutorial, correctional, clemency, or

317-14   treatment purpose.

317-15         (d)  In this section, "eligible entity" means:

317-16               (1)  a government agency, including the office of a

317-17   prosecuting attorney;

317-18               (2)  an organization with which the department

317-19   contracts or an organization to which the department provides a

317-20   grant; or

317-21               (3)  an organization to which inmates are referred for

317-22   services by the department.

317-23         (e)  This section does not apply to information relating to a

317-24   sex offender that is authorized for release under Article

 318-1   6252-13c.1, Revised Statutes.

 318-2         Sec. 508.314.  ACCESS TO INMATES.  The department shall:

 318-3               (1)  grant to a member or employee of the board access

 318-4   at all reasonable times to any inmate;

 318-5               (2)  provide for the member or employee or a

 318-6   representative of the member or employee facilities for

 318-7   communicating with or observing an inmate; and

 318-8               (3)  furnish to the member or employee:

 318-9                     (A)  any report the member or employee requires

318-10   relating to the conduct or character of an inmate; or

318-11                     (B)  other facts a parole panel considers

318-12   pertinent in determining whether an inmate will be released on

318-13   parole.

318-14         Sec. 508.315.  ELECTRONIC MONITORING PROGRAMS.  (a)  To

318-15   establish and maintain an electronic monitoring program under this

318-16   chapter, the department may:

318-17               (1)  fund an electronic monitoring program in a parole

318-18   office;

318-19               (2)  develop standards for the operation of an

318-20   electronic monitoring program in a parole office; and

318-21               (3)  fund the purchase, lease, or maintenance of

318-22   electronic monitoring equipment.

318-23         (b)  In determining whether electronic monitoring equipment

318-24   should be leased or purchased, the department shall consider the

 319-1   rate at which technological change makes electronic monitoring

 319-2   equipment obsolete.

 319-3         Sec. 508.316.  SPECIAL PROGRAMS.  (a)  The department may

 319-4   contract for services for releasees if funds are appropriated to

 319-5   the department for the services, including services for releasees

 319-6   who have a history of:

 319-7               (1)  mental impairment or mental retardation;

 319-8               (2)  substance abuse; or

 319-9               (3)  sexual offenses.

319-10         (b)  The department shall seek funding for a contract under

319-11   this section as a priority item.

319-12         Sec. 508.317.  INTENSIVE SUPERVISION PROGRAM.  (a)  The

319-13   department shall establish a program to provide intensive

319-14   supervision to inmates released under Subchapter B, Chapter 499,

319-15   and other inmates determined by a parole panel or the department to

319-16   require intensive supervision.

319-17         (b)  The Texas Board of Criminal Justice shall adopt rules

319-18   that establish standards for determining which inmates require

319-19   intensive supervision.

319-20         (c)  The program must provide the highest level of

319-21   supervision the department provides.

319-22         Sec. 508.318.  CONTINUING EDUCATION PROGRAM.  (a)  The Texas

319-23   Board of Criminal Justice and the Texas Education Agency shall

319-24   adopt a memorandum of understanding that establishes the respective

 320-1   responsibilities of the board and the agency in implementing a

 320-2   continuing education program to increase the literacy of releasees.

 320-3         (b)  The Texas Board of Criminal Justice and the agency shall

 320-4   coordinate the development of the memorandum of understanding and

 320-5   each by rule shall adopt the memorandum.

 320-6         Sec. 508.319.  PROGRAM TO ASSESS AND ENHANCE EDUCATIONAL AND

 320-7   VOCATIONAL SKILLS.  (a)  The department, with the assistance of

 320-8   public school districts, community and public junior colleges,

 320-9   public and private institutions of higher education, and other

320-10   appropriate public and private entities, may establish a

320-11   developmental program based on information obtained under Section

320-12   508.183 for an inmate to be released to the supervision of the

320-13   division.

320-14         (b)  The developmental program may provide the inmate with

320-15   the educational and vocational training necessary to:

320-16               (1)  meet the average skill level required under

320-17   Section 508.183; and

320-18               (2)  acquire employment while in the custody of the

320-19   division to lessen the likelihood that the inmate will return to

320-20   the institutional division.

320-21         (c)  To decrease state expense for a program established

320-22   under this section, the Texas Workforce Commission shall provide to

320-23   the department and the other entities described by Subsection (a)

320-24   information relating to obtaining financial assistance under

 321-1   applicable programs of public or private entities.

 321-2         (d)  The department may establish a developmental program

 321-3   similar to the program described by Subsection (a) for inmates

 321-4   released from the institutional division who will not be supervised

 321-5   by the department.

 321-6         Sec. 508.320.  CONTRACTS FOR LEASE OF FEDERAL FACILITIES.

 321-7   (a)  The department may contract with the federal government for

 321-8   the lease of a military base or other federal facility that is not

 321-9   being used by the federal government.

321-10         (b)  The department may use a facility leased under this

321-11   section to house releasees in the custody of the division.

321-12         (c)  The department may not enter into a contract under this

321-13   section unless funds have been appropriated specifically to make

321-14   payments on a contract under this section.

321-15         (d)  The department shall attempt to enter into contracts

321-16   that will provide the department with facilities located in various

321-17   parts of the state.

321-18         Sec. 508.321.  REPORTING, MANAGEMENT, AND COLLECTION

321-19   SERVICES.  The department, with the approval of the Texas Board of

321-20   Criminal Justice, may contract with a public or private vendor to

321-21   provide telephone reporting, automated caseload management, or

321-22   collection services for:

321-23               (1)  fines, fees, restitution, or other costs ordered

321-24   to be paid by a court; or

 322-1               (2)  fees collected by the division.

 322-2         Sec. 508.322.  RELEASEE RESTITUTION FUND.  (a)  The releasee

 322-3   restitution fund is a fund outside the treasury and consists of

 322-4   restitution payments made by releasees.  Money in the fund may be

 322-5   used only to pay restitution as required by a condition of parole

 322-6   or mandatory supervision to victims of criminal offenses.

 322-7         (b)  The comptroller is the trustee of the releasee

 322-8   restitution fund as provided by Section 404.073.

 322-9         (c)  When the board orders the payment of restitution from a

322-10   releasee as provided by Article 42.037(h), Code of Criminal

322-11   Procedure, the department shall:

322-12               (1)  collect the payment for disbursement to the

322-13   victim;

322-14               (2)  deposit the payment in the releasee restitution

322-15   fund; and

322-16               (3)  transmit the payment to the victim as soon as

322-17   practicable.

322-18         (d)  If a victim who is entitled to restitution cannot be

322-19   located, immediately after receiving a final payment in

322-20   satisfaction of an order of restitution for the victim, the

322-21   department shall attempt to notify the victim of that fact by

322-22   certified mail, mailed to the last known address of the victim.  If

322-23   a victim then makes a claim for payment, the department promptly

322-24   shall remit the payment to the victim.

 323-1         (e)  Money that remains unclaimed shall be transferred to the

 323-2   compensation to victims of crime auxiliary fund on the fifth

 323-3   anniversary of the date the money was deposited to the credit of

 323-4   the releasee restitution fund.

 323-5         Sec. 508.323.  AUDIT.  The financial transactions of the

 323-6   division and the board are subject to audit by the state auditor in

 323-7   accordance with Chapter 321.

 323-8         SECTION 12.02.  Article 15.27(h), Code of Criminal Procedure,

 323-9   is amended to read as follows:

323-10         (h)  This article applies to:

323-11               (1)  an offense listed in Section 508.149, Government

323-12   Code [8(c), Article 42.18, Code of Criminal Procedure]; deadly

323-13   [reckless] conduct, as described by Section 22.05, Penal Code; or a

323-14   terroristic threat, as described by Section 22.07, Penal Code;

323-15               (2)  the unlawful use, sale, or possession of a

323-16   controlled substance, drug paraphernalia, or marihuana, as defined

323-17   by Chapter 481, Health and Safety Code;

323-18               (3)  the unlawful possession of any of the weapons or

323-19   devices listed in Sections 46.01(1)-(14) or (16), Penal Code; or a

323-20   weapon listed as a prohibited weapon under Section 46.05, Penal

323-21   Code; or

323-22               (4)  a criminal offense under Section 71.02, Penal

323-23   Code.

323-24         SECTION 12.03.  Section 3g(a), Article 42.12, Code of

 324-1   Criminal Procedure, as amended by Chapters 260 and 318, Acts of the

 324-2   74th Legislature, Regular Session, 1995, is amended to read as

 324-3   follows:

 324-4         (a)  The provisions of Section 3 of this article do not

 324-5   apply:

 324-6               (1)  to a defendant adjudged guilty of an offense

 324-7   under:

 324-8                     (A)  Section 19.02, Penal Code (Murder);

 324-9                     (B)  Section 19.03, Penal Code (Capital murder);

324-10                     (C)  Section 21.11(a)(1), Penal Code (Indecency

324-11   with a child);

324-12                     (D)  Section 20.04, Penal Code (Aggravated

324-13   kidnapping);

324-14                     (E)  Section 22.021, Penal Code (Aggravated

324-15   sexual assault);

324-16                     (F)  Section 29.03, Penal Code (Aggravated

324-17   robbery); [or]

324-18                     (G)  Chapter 481, Health and Safety Code, for

324-19   which punishment is increased under Section 481.134(c), (d), (e),

324-20   or (f), Health and Safety Code, if it is shown that the defendant

324-21   has been previously convicted of an offense for which punishment

324-22   was increased under any of those subsections; or

324-23                     (H) [(G)]  Section 22.011(a)(2), Penal Code

324-24   (Sexual assault); or

 325-1               (2)  to a defendant when it is shown that a deadly

 325-2   weapon as defined in Section 1.07, Penal Code, was used or

 325-3   exhibited during the commission of a felony offense or during

 325-4   immediate flight therefrom, and that the defendant used or

 325-5   exhibited the deadly weapon or was a party to the offense and knew

 325-6   that a deadly weapon would be used or exhibited.  On an affirmative

 325-7   finding under this subdivision, the trial court shall enter the

 325-8   finding in the judgment of the court.  On an affirmative finding

 325-9   that the deadly weapon was a firearm, the court shall enter that

325-10   finding in its judgment.

325-11         SECTION 12.04.  Article 56.08(a), Code of Criminal Procedure,

325-12   is amended to read as follows:

325-13         (a)  Not later than the 10th day after the date that an

325-14   indictment or information is returned against a defendant for an

325-15   offense, the attorney representing the state shall give to each

325-16   victim of the offense a written notice containing:

325-17               (1)  a brief general statement of each procedural stage

325-18   in the processing of a criminal case, including bail, plea

325-19   bargaining, parole restitution, and appeal;

325-20               (2)  notification of the rights and procedures under

325-21   this chapter;

325-22               (3)  suggested steps the victim may take if the victim

325-23   is subjected to threats or intimidation;

325-24               (4)  notification of the right to receive information

 326-1   regarding compensation to victims of crime as provided by

 326-2   Subchapter B of this chapter, including information about:

 326-3                     (A)  the costs that may be compensated under

 326-4   Subchapter B of this chapter, eligibility for compensation, and

 326-5   procedures for application for compensation under Subchapter B of

 326-6   this chapter;

 326-7                     (B)  the payment for a medical examination for a

 326-8   victim of a sexual assault under Article 56.06 of this code; and

 326-9                     (C)  referral to available social service

326-10   agencies that may offer additional assistance;

326-11               (5)  the name, address, and phone number of the local

326-12   victim assistance coordinator;

326-13               (6)  the case number and assigned court for the case;

326-14               (7)  the right to file a victim impact statement with

326-15   the office of the attorney representing the state and the pardons

326-16   and paroles division of the Texas Department of Criminal Justice;

326-17   and

326-18               (8)  notification of the right of a victim, guardian of

326-19   a victim, or close relative of a deceased victim, as defined by

326-20   Section 508.117, Government Code [8(f), Article 42.18 of this

326-21   code], to appear in person before a member of the Board of Pardons

326-22   and Paroles as provided by Section 508.153, Government Code

326-23   [8(f)(2), Article 42.18 of this code].

326-24         SECTION 12.05.  Section 37.015(a), Education Code, is amended

 327-1   to read as follows:

 327-2         (a)  The principal of a public or private primary or

 327-3   secondary school, or a person designated by the principal under

 327-4   Subsection (d), shall notify any school district police department

 327-5   and the police department of the municipality in which the school

 327-6   is located or, if the school is not in a municipality, the sheriff

 327-7   of the county in which the school is located if the principal has

 327-8   reasonable grounds to believe that any of the following activities

 327-9   occur in school, on school property, or at a school-sponsored or

327-10   school-related activity on or off school property, whether or not

327-11   the activity is investigated by school security officers:

327-12               (1)  conduct that may constitute an offense listed

327-13   under Section 508.149, Government Code [8(c), Article 42.18, Code

327-14   of Criminal Procedure];

327-15               (2)  deadly conduct under Section 22.05, Penal Code;

327-16               (3)  a terroristic threat under Section 22.07, Penal

327-17   Code;

327-18               (4)  the use, sale, or possession of a controlled

327-19   substance, drug paraphernalia, or marihuana under Chapter 481,

327-20   Health and Safety Code;

327-21               (5)  the possession of any of the weapons or devices

327-22   listed under Sections 46.01(1)-(14) or Section 46.01(16), Penal

327-23   Code; or

327-24               (6)  conduct that may constitute a criminal offense

 328-1   under Section 71.02, Penal Code.

 328-2         SECTION 12.06.  Section 491.001(a)(1), Government Code, is

 328-3   amended to read as follows:

 328-4               (1)  "Board" means the Texas Board of Criminal Justice,

 328-5   except as provided by Section 508.001.

 328-6         SECTION 12.07.  Section 491.001(b)(1), Government Code, is

 328-7   amended to read as follows:

 328-8               (1)  "Board of Pardons and Paroles" means:

 328-9                     (A)  the Board of Pardons and Paroles in any

328-10   statute relating to a subject under the board's jurisdiction as

328-11   provided by Chapter 508 [Article 42.18, Code of Criminal

328-12   Procedure]; or

328-13                     (B)  the pardons and paroles division in any

328-14   statute relating to a subject under the division's jurisdiction as

328-15   provided by Chapter 508 [Article 42.18, Code of Criminal

328-16   Procedure].

328-17         SECTION 12.08.  Section 493.009(g), Government Code, is

328-18   amended to read as follows:

328-19         (g)  The department shall provide at least 5,200 beds for the

328-20   purpose of operating the program for persons required to

328-21   participate in the program under Section 14, Article 42.12, Code of

328-22   Criminal Procedure, as amended by Chapter 900, Acts of the 73rd

328-23   Legislature, Regular Session, 1993, except that the beds may also

328-24   be used to house the following categories of persons:

 329-1               (1)  persons transferred under Subchapter A, Chapter

 329-2   499, [Government Code,] and Section 508.118 [8(i), Article 42.18,

 329-3   Code of Criminal Procedure];

 329-4               (2)  persons whose community supervision or parole has

 329-5   been modified;

 329-6               (3)  defendants confined in county jails awaiting

 329-7   transfer to the institutional division; and

 329-8               (4)  inmates participating in the program described by

 329-9   Section 501.0931.

329-10         SECTION 12.09.  Section 493.017(b), Government Code, as added

329-11   by Chapter 256, Acts of the 74th Legislature, Regular Session,

329-12   1995, is amended to read as follows:

329-13         (b)  A sex offender correction program that provides

329-14   counseling sessions for a sex offender under Section 508.187 [8(u),

329-15   Article 42.18, Code of Criminal Procedure,] shall report to the

329-16   parole officer supervising the offender, not later than the 15th

329-17   day of each month, the following information about the offender:

329-18               (1)  the total number of counseling sessions attended

329-19   by the sex offender during the preceding month; and

329-20               (2)  if during the preceding month the sex offender

329-21   terminates participation in the program before completing

329-22   counseling, the reason for the sex offender's termination of

329-23   counseling.

329-24         SECTION 12.10.  Section 498.001(2), Government Code, is

 330-1   amended to read as follows:

 330-2               (2)  "Term" means:

 330-3                     (A)  the [maximum] term of confinement in the

 330-4   institutional division stated in the sentence of the convicting

 330-5   court, if the inmate is serving a sentence for a single offense;

 330-6                     (B)  the [maximum] term of confinement

 330-7   established by Section 508.150 [8(d), Article 42.18, Code of

 330-8   Criminal Procedure], if the inmate is serving two or more sentences

 330-9   consecutively; or

330-10                     (C)  the longest [maximum] term of confinement in

330-11   the institutional division stated in the sentence of the convicting

330-12   court, if the inmate is serving two or more concurrent sentences.

330-13         SECTION 12.11.  Section 498.003(a), Government Code, is

330-14   amended to read as follows:

330-15         (a)  Good conduct time applies only to eligibility for parole

330-16   or mandatory supervision as provided by Section 508.145 or 508.147

330-17   [8, Article 42.18, Code of Criminal Procedure,] and does not

330-18   otherwise affect an inmate's term.  Good conduct time is a

330-19   privilege and not a right.  Regardless of the classification of an

330-20   inmate, the department may grant good conduct time to the inmate

330-21   only if the department finds that the inmate is actively engaged in

330-22   an agricultural, vocational, or educational endeavor or in an

330-23   industrial program or other work program, unless the department

330-24   finds that the inmate is not capable of participating in such an

 331-1   endeavor.

 331-2         SECTION 12.12.  Sections 499.001(1) and (4), Government Code,

 331-3   are amended to read as follows:

 331-4               (1)  "Community residential facility" means a facility

 331-5   under contract with the department under Section 508.119 [8(i),

 331-6   Article 42.18, Code of Criminal Procedure,] or another facility or

 331-7   residence approved by the department.

 331-8               (4)  "Presumptive parole date" means a date specified

 331-9   by a parole panel under Section 508.151 [8(i), Article 42.18, Code

331-10   of Criminal Procedure,] on which an inmate's parole release is to

331-11   become effective.

331-12         SECTION 12.13.  Section 499.005, Government Code, is amended

331-13   to read as follows:

331-14         Sec. 499.005.  Transfer to Parole Status.  (a)  If a

331-15   pre-parolee transferred under this subchapter satisfactorily serves

331-16   a term in a community residential facility until the pre-parolee's

331-17   presumptive parole date, the Board of Pardons and Paroles may

331-18   transfer the pre-parolee from pre-parole status to parole status

331-19   and the Board of Pardons and Paroles may issue the pre-parolee an

331-20   appropriate certificate of release to conditional freedom under

331-21   Chapter 508 [Article 42.18, Code of Criminal Procedure].

331-22         (b)  A pre-parolee transferred from pre-parole status to

331-23   parole status is subject to provisions concerning inmates released

331-24   on parole provided under Chapter 508 [Article 42.18, Code of

 332-1   Criminal Procedure].

 332-2         SECTION 12.14.  Section 499.021(2), Government Code, is

 332-3   amended to read as follows:

 332-4               (2)  "Intensive supervision parole" means a parole

 332-5   supervision program established by the department [pardons and

 332-6   paroles division] under Section 508.317 [24, Article 42.18, Code of

 332-7   Criminal Procedure].

 332-8         SECTION 12.15.  Section 499.026(c), Government Code, is

 332-9   amended to read as follows:

332-10         (c)  An inmate released to parole under this subchapter is

332-11   subject to terms and conditions imposed on parolees released under

332-12   Chapter 508 [Article 42.18, Code of Criminal Procedure].

332-13         SECTION 12.16.  Section 551.124, Government Code, is amended

332-14   to read as follows:

332-15         Sec. 551.124.  Board of Pardons and Paroles.  At the call of

332-16   the presiding officer of the Board of Pardons and Paroles, the

332-17   board may hold a hearing on clemency matters by telephone

332-18   conference call.  [The portion of a meeting that is public is

332-19   subject to the provisions of Section 7(f), Article 42.18, Code of

332-20   Criminal Procedure.]

332-21         SECTION 12.17.  (a)  Section 615.003, Government Code, is

332-22   amended to conform to Sections 1.12 and 1.13, Chapter 988, Acts of

332-23   the 73rd Legislature, Regular Session, 1993, to read as follows:

332-24         Sec. 615.003.  Applicability.  This chapter applies only to

 333-1   eligible survivors of the following individuals:

 333-2               (1)  an individual elected, appointed, or employed as a

 333-3   peace officer by the state or a political subdivision of the state

 333-4   under Article 2.12, Code of Criminal Procedure, or other law;

 333-5               (2)  a paid probation officer appointed by the director

 333-6   of a community supervision and corrections department who has the

 333-7   duties set out in Section 76.002 [2] and the qualifications set out

 333-8   in Section 76.005 [5, Article 42.131, Code of Criminal Procedure],

 333-9   or who was appointed in accordance with prior law;

333-10               (3)  a parole officer employed by the pardons and

333-11   paroles division of the Texas Department of Criminal Justice who

333-12   has the duties set out in Section 508.001 [2] and the

333-13   qualifications set out in Section 508.113 [19, Article 42.18, Code

333-14   of Criminal Procedure,] or in prior law;

333-15               (4)  a paid jailer;

333-16               (5)  a member of an organized police reserve or

333-17   auxiliary unit who regularly assists peace officers in enforcing

333-18   criminal laws;

333-19               (6)  a member of the class of employees of the

333-20   institutional division or the state jail division of the Texas

333-21   Department of Criminal Justice formally designated as custodial

333-22   personnel under Section 615.006 by the Texas Board of Criminal

333-23   Justice or its predecessor in function;

333-24               (7)  a jailer or guard of a county jail who is

 334-1   appointed by the sheriff and who:

 334-2                     (A)  performs a security, custodial, or

 334-3   supervisory function over the admittance, confinement, or discharge

 334-4   of prisoners; and

 334-5                     (B)  is certified by the Texas Commission on Law

 334-6   Enforcement Officer Standards and Education;

 334-7               (8)  a juvenile correctional employee of the Texas

 334-8   Youth Commission;

 334-9               (9)  an employee of the Texas Department of Mental

334-10   Health and Mental Retardation who:

334-11                     (A)  works at the department's maximum security

334-12   unit; or

334-13                     (B)  performs on-site services for the Texas

334-14   Department of Criminal Justice;

334-15               (10)  an individual who is employed by the state or a

334-16   political or legal subdivision and is subject to certification by

334-17   the Texas Commission on Fire Protection;

334-18               (11)  an individual employed by the state or a

334-19   political or legal subdivision whose principal duties are aircraft

334-20   crash and rescue fire fighting; or

334-21               (12)  a member of an organized volunteer fire-fighting

334-22   unit that:

334-23                     (A)  renders fire-fighting services without

334-24   remuneration;

 335-1                     (B)  consists of not fewer than 20 active

 335-2   members, a majority of which are present at each meeting; and

 335-3                     (C)  conducts a minimum of two drills each month,

 335-4   each two hours long.

 335-5         (b)  Sections 1.12 and 1.13, Chapter 988, Acts of the 73rd

 335-6   Legislature, Regular Session, 1993, are repealed.

 335-7         SECTION 12.18.  Section 44.0061(b), Health and Safety Code,

 335-8   is amended to read as follows:

 335-9         (b)  The fund consists of fees collected under Section 19(e)

335-10   [22(e)], Article 42.12, Code of Criminal Procedure, and Section

335-11   508.189, Government Code [8(p), Article 42.18, Code of Criminal

335-12   Procedure].

335-13         SECTION 12.19.  Sections 61.084(f) and (g), Human Resources

335-14   Code, are amended to read as follows:

335-15         (f)  The commission shall transfer a person who has been

335-16   sentenced under a determinate sentence to commitment under Section

335-17   54.04(d)(3), 54.04(m), or 54.05(f), Family Code, or who has been

335-18   returned to the commission under Section 54.11(i)(1), Family Code,

335-19   to the custody of the pardons and paroles division of the Texas

335-20   Department of Criminal Justice to serve the remainder of the

335-21   person's sentence on parole as provided by Section 508.156,

335-22   Government Code [29, Article 42.18, Code of Criminal Procedure],

335-23   when the person is released under supervision after becoming 19

335-24   years of age.

 336-1         (g)  The commission shall transfer a person who has been

 336-2   sentenced under a determinate sentence to commitment under Section

 336-3   54.04(d)(3), 54.04(m), or 54.05(f), Family Code, or who has been

 336-4   returned to the commission under Section 54.11(i)(1), Family Code,

 336-5   to the custody of the pardons and paroles division of the Texas

 336-6   Department of Criminal Justice on the person's 21st birthday, if

 336-7   the person has not already been discharged or transferred, to serve

 336-8   the remainder of the person's sentence on parole as provided by

 336-9   Section 508.156, Government Code [29, Article 42.18, Code of

336-10   Criminal Procedure].

336-11         SECTION 12.20.  Subchapter F, Chapter 61, Human Resources

336-12   Code, is amended to codify Sections 29(a) and (h), Article 42.18,

336-13   Code of Criminal Procedure, by adding Section 61.0841 to read as

336-14   follows:

336-15         Sec. 61.0841.  DETERMINATE SENTENCE PAROLE.  (a)  Not later

336-16   than the 90th day before the date the commission transfers a person

336-17   to the custody of the pardons and paroles division of the Texas

336-18   Department of Criminal Justice for release on parole under Section

336-19   61.081(f) or 61.084(f) or (g), the commission shall submit to the

336-20   department all pertinent information relating to the person,

336-21   including:

336-22               (1)  the juvenile court judgment;

336-23               (2)  the circumstances of the person's offense;

336-24               (3)  the person's previous social history and juvenile

 337-1   court records;

 337-2               (4)  the person's physical and mental health record;

 337-3               (5)  a record of the person's conduct, employment

 337-4   history, and attitude while committed to the commission;

 337-5               (6)  a record of the sentence time served by the person

 337-6   at the commission and in a juvenile detention facility in

 337-7   connection with the conduct for which the person was adjudicated;

 337-8   and

 337-9               (7)  any written comments or information provided by

337-10   the commission, local officials, or victims of the offense.

337-11         (b)  The commission shall provide instruction for parole

337-12   officers of the pardons and paroles division relating to juvenile

337-13   programs at the commission.  The commission and the pardons and

337-14   paroles division shall enter into a memorandum of understanding

337-15   relating to the administration of this subsection.

337-16         SECTION 12.21.  Section 3.307(a), Public Utility Regulatory

337-17   Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

337-18   amended to read as follows:

337-19         (a)  A telecommunications utility that transports or provides

337-20   a "1-900" service under a contract authorized by Chapter 76 or 508,

337-21   Government Code [Article 42.131 or 42.18, Code of Criminal

337-22   Procedure], and its subsequent amendments, that is used by a

337-23   defendant under the supervision of a community supervision and

337-24   corrections department or the pardons and paroles division of the

 338-1   Texas Department of Criminal Justice to pay a fee or cost or to

 338-2   comply with telephone reporting requirements may adjust or

 338-3   authorize the adjustment of an end-user's bill for those fees or

 338-4   costs or charges for reporting only with the consent of the

 338-5   contracting community supervision and corrections department or the

 338-6   contracting pardons and paroles division of the Texas Department of

 338-7   Criminal Justice.

 338-8         SECTION 12.22.  Article 42.18, Code of Criminal Procedure, is

 338-9   repealed.

338-10         SECTION 12.23.  (a)  Section 509.001(1), Government Code, is

338-11   amended to conform to Section 3.009, Chapter 321, Acts of the 74th

338-12   Legislature, Regular Session, 1995, to read as follows:

338-13               (1)  "Community corrections facility" means a physical

338-14   structure, established by a judicial district after authorization

338-15   of the establishment of the structure has been included in the

338-16   local community justice plan, that is operated by a department or

338-17   operated for a department by an entity under contract with the

338-18   department, for the purpose of confining persons placed on

338-19   community supervision and providing services and programs to modify

338-20   criminal behavior, deter criminal activity, protect the public, and

338-21   restore victims of crime.  The term includes:

338-22                     (A)  a restitution center;

338-23                     (B)  a court residential treatment facility;

338-24                     (C)  a substance abuse treatment facility;

 339-1                     (D)  a custody facility or boot camp;

 339-2                     (E)  a facility for an offender with a mental

 339-3   impairment, as defined by Section 614.001, Health and Safety Code;

 339-4   and

 339-5                     (F)  an intermediate sanction facility [; and]

 339-6                     [(G)  a state jail felony facility].

 339-7         (b)  Section 3.009, Chapter 321, Acts of the 74th

 339-8   Legislature, Regular Session, 1995, is repealed.

 339-9         SECTION 12.24.  (a)  Section 509.003, Government Code, is

339-10   amended by amending Subsections (a) and (c) and by adding

339-11   Subsection (d) to conform to Section 3.0091, Chapter 321, Acts of

339-12   the 74th Legislature, Regular Session, 1995, to read as follows:

339-13         (a)  The division shall propose and the board shall adopt

339-14   reasonable rules establishing:

339-15               (1)  minimum standards for programs, community

339-16   corrections facilities and other facilities, equipment, and other

339-17   aspects of the operation of departments;

339-18               (2)  a list and description of core services that

339-19   should be provided by each department;

339-20               (3)  methods for measuring the success of community

339-21   supervision and corrections programs, including methods for

339-22   measuring rates of diversion, program completion, and recidivism;

339-23   [and]

339-24               (4)  a format for community justice plans; and

 340-1               (5)  minimum standards for the operation of substance

 340-2   abuse facilities and programs funded through the division.

 340-3         (c)  [After consultation with the Texas Commission on Alcohol

 340-4   and Drug Abuse, the division by rule shall establish standards for

 340-5   the operation of substance abuse facilities and programs by the

 340-6   division and by departments.]  A substance abuse facility or

 340-7   program operating under the standards is not required to be

 340-8   licensed or otherwise approved by any other state or local agency.

 340-9         (d)  The division shall develop a screening and assessment

340-10   procedure for use in accordance with Section 76.017.  The division

340-11   shall determine if a single screening and assessment procedure may

340-12   be used in each program.  If the division determines that a single

340-13   procedure is not feasible, the division shall identify and approve

340-14   procedures that may be used.

340-15         (b)  Section 3.0091, Chapter 321, Acts of the 74th

340-16   Legislature, Regular Session, 1995, is repealed.

340-17         SECTION 12.25.  (a)  Section 509.004(a), Government Code, is

340-18   amended to conform to Section 62, Chapter 318, Acts of the 74th

340-19   Legislature, Regular Session, 1995, to read as follows:

340-20         (a)  The division shall require each department to:

340-21               (1)  keep financial and statistical records determined

340-22   necessary by the division;

340-23               (2)  submit a community justice plan and all supporting

340-24   information requested by the division;

 341-1               (3)  present data requested by the division as

 341-2   necessary to determine the amount of state aid for which the

 341-3   department is eligible; [and]

 341-4               (4)  submit periodic financial audits and statistical

 341-5   reports to the division;

 341-6               (5)  submit periodic data to the division on the

 341-7   required use of deep-lung breath analysis mechanisms to make

 341-8   impractical the operation of a motor vehicle if ethyl alcohol is

 341-9   detected in the breath of the operator, including the number of

341-10   devices in use, the number of violations detected, malfunctions by

341-11   the devices, and attempts to circumvent the devices; and

341-12               (6)  submit to the Department of Public Safety the full

341-13   name, address, date of birth, social security number, and driver's

341-14   license number of each person restricted to the operation of a

341-15   motor vehicle equipped with a device that uses a deep-lung breath

341-16   analysis mechanism to make impractical the operation of the motor

341-17   vehicle if ethyl alcohol is detected in the breath of the

341-18   restricted operator.

341-19         (b)  Section 62, Chapter 318, Acts of the 74th Legislature,

341-20   Regular Session, 1995, is repealed.

341-21         SECTION 12.26.  (a)  Section 509.005, Government Code, is

341-22   amended to conform to Section 3.010, Chapter 321, Acts of the 74th

341-23   Legislature, Regular Session, 1995, to read as follows:

341-24         Sec. 509.005.  INSPECTIONS; AUDITS; EVALUATIONS.  [(a)]  The

 342-1   division may inspect and evaluate a department or conduct an audit

 342-2   of case management records, financial records, and officer

 342-3   certification and training records of a department at any

 342-4   reasonable time to  determine compliance with the division's rules

 342-5   and standards.

 342-6         [(b)  The division shall authorize payments under Section

 342-7   509.011(a)(1) only if the division determines that the department

 342-8   has made a reasonable effort to maintain workloads established by

 342-9   the division for supervising officers that do not exceed the

342-10   following ratios:]

342-11               [(1)  one officer or full-time equivalent per 25 cases,

342-12   with a workload unit value of 4 per case;]

342-13               [(2)  one officer or full-time equivalent per 40 cases,

342-14   with a workload unit value of 2.5 per case;]

342-15               [(3)  one officer or full-time equivalent per 75 cases,

342-16   with a workload unit value of 1.33 per case; and]

342-17               [(4)  one officer or full-time equivalent per 100

342-18   cases, with a workload unit value of 1 per case.]

342-19         (b)  Section 3.010, Chapter 321, Acts of the 74th

342-20   Legislature,  Regular Session, 1995, is repealed.

342-21         SECTION 12.27.  (a)  Section 509.008(g), Government Code, is

342-22   amended to conform to Section 3.011, Chapter 321, Acts of the 74th

342-23   Legislature, Regular Session, 1995, to read as follows:

342-24         (g)  The division may deny, revoke, or suspend a

 343-1   certification or may reprimand an officer for a violation of a

 343-2   standard adopted under this chapter [or a rule of the board].

 343-3         (b)  Section 3.011, Chapter 321, Acts of the 74th

 343-4   Legislature, Regular Session, 1995, is repealed.

 343-5         SECTION 12.28.  (a) Section 509.011, Government Code, is

 343-6   amended to conform to Section 3.012, Chapter 321, Acts of the 74th

 343-7   Legislature, Regular Session, 1995, by amending Subsections (a) and

 343-8   (b) and by adding Subsection (f) to read as follows:

 343-9         (a)  If the division determines that a department complies

343-10   with division standards and if the department or judges managing

343-11   the department have submitted a community justice plan under

343-12   Section 76.003 and the supporting information required by the

343-13   division and the division determines the plan and supporting

343-14   information are acceptable, the division shall prepare and submit

343-15   to the comptroller vouchers for payment to the department as

343-16   follows:

343-17               (1)  for per capita funding, a per diem amount for each

343-18   felony defendant directly supervised by the department pursuant to

343-19   lawful authority;

343-20               (2)  for per capita funding, a per diem amount for a

343-21   period not to exceed 182 days for each defendant supervised by the

343-22   department pursuant to lawful authority, other than a felony

343-23   defendant;  and

343-24               (3)  for formula funding, an annual amount as computed

 344-1   by multiplying a percentage determined by the allocation formula

 344-2   established under Subsection (f) [Section 499.071(b)] times the

 344-3   total amount provided in the General Appropriations Act for

 344-4   payments under this subdivision.

 344-5         (b)  The division may use discretionary grant funds to

 344-6   further the purposes of this chapter by contracting for services

 344-7   with state agencies or nonprofit organizations.  The division may

 344-8   also make discretionary grants to departments, municipalities, or

 344-9   counties for the following purposes:

344-10               (1)  development and operation of pretrial and

344-11   presentencing services;

344-12               (2)  electronic monitoring services, surveillance

344-13   supervision programs, and controlled substances testing services;

344-14               (3)  research projects to evaluate the effectiveness of

344-15   community corrections programs, if the research is conducted in

344-16   cooperation with the Criminal Justice Policy Council;

344-17               (4)  contract services for felony defendants;

344-18               (5)  residential services for misdemeanor defendants

344-19   who exhibit levels of risk or needs indicating a need for

344-20   confinement and treatment, as described by Section 509.005(b);

344-21               (6)  establishment or operation of county correctional

344-22   centers under Subchapter H, Chapter 351, Local Government Code,

344-23   (FN1) or community corrections facilities for which the division

344-24   has established standards under Section 509.006; [and]

 345-1               (7)  development and operation of treatment alternative

 345-2   to incarceration programs  under Section 76.017; and

 345-3               (8)  other purposes determined appropriate by the

 345-4   division and approved by the board.

 345-5         (f)  The division annually shall compute for each department

 345-6   for community corrections program formula funding a percentage

 345-7   determined by assigning equal weights to the percentage of the

 345-8   state's population residing in the counties served by the

 345-9   department and the department's percentage of all felony defendants

345-10   in the state under direct community supervision.  The division

345-11   shall use the most recent information available in making

345-12   computations under this subsection.  The board by rule may adopt a

345-13   policy limiting for all departments the percentage of benefit or

345-14   loss that may be realized as a result of the operation of the

345-15   formula.

345-16         (b)  Section 3.012, Chapter 321, Acts of the 74th

345-17   Legislature, Regular Session, 1995, is repealed.

345-18         SECTION 12.29.  (a) Section 509.012(b), Government Code, is

345-19   amended to conform to Section 3.013, Chapter 321, Acts of the  74th

345-20   Legislature, Regular Session, 1995, to read as follows:

345-21         (b)  The board shall provide for notice and a hearing in

345-22   cases in which the division proposes to take an action authorized

345-23   by this section, other than a refusal by the division to provide

345-24   discretionary grant funding or a reduction by the division of

 346-1   discretionary grant funding during a funding cycle.  The division

 346-2   shall define with specificity the conduct that constitutes

 346-3   substantial noncompliance with division standards and shall

 346-4   establish the procedures to be used in imposing or waiving a

 346-5   sanction authorized by this section, subject to approval of the

 346-6   definition and the procedures by adoption by the board.

 346-7         (b)  Section 3.013, Chapter 321, Acts of the 74th

 346-8   Legislature, Regular Session, 1995, is repealed.

 346-9         SECTION 12.30.  Section 511.009(a), Government Code, is

346-10   amended to conform to Section 1, Chapter 171, Acts of the 74th

346-11   Legislature, Regular Session, 1995; Section 89, Chapter 262, Acts

346-12   of the 74th Legislature, Regular Session, 1995; and Section 2,

346-13   Chapter 722, Acts of the 74th Legislature, Regular Session, 1995,

346-14   to read as follows:

346-15         (a)  The commission shall:

346-16               (1)  adopt reasonable rules and procedures establishing

346-17   minimum standards for the construction, equipment, maintenance, and

346-18   operation of county jails;

346-19               (2)  adopt reasonable rules and procedures establishing

346-20   minimum standards for the custody, care, and treatment of

346-21   prisoners;

346-22               (3)  adopt reasonable rules establishing minimum

346-23   standards for the number of jail supervisory personnel and for

346-24   programs and services to meet the needs of prisoners;

 347-1               (4)  adopt reasonable rules and procedures establishing

 347-2   minimum requirements for programs of rehabilitation, education, and

 347-3   recreation in county jails;

 347-4               (5)  revise, amend, or change rules and procedures if

 347-5   necessary;

 347-6               (6)  provide to local government officials consultation

 347-7   on and technical assistance for county jails;

 347-8               (7)  review and comment on plans for the construction

 347-9   and major modification or renovation of county jails;

347-10               (8)  require that the sheriff and commissioners of each

347-11   county submit to the commission, on a form prescribed by the

347-12   commission, an annual report on the conditions in each county jail

347-13   within their jurisdiction, including all information necessary to

347-14   determine compliance with state law, commission orders, and the

347-15   rules adopted under this chapter;

347-16               (9)  review the reports submitted under Subdivision (8)

347-17   and require commission employees to inspect county jails regularly

347-18   to ensure compliance with state law, commission orders, and rules

347-19   and procedures adopted under this chapter;

347-20               (10)  adopt a classification system to assist sheriffs

347-21   and judges in determining which defendants are low-risk and

347-22   consequently suitable participants in a county jail work release

347-23   program under Article 42.034, Code of Criminal Procedure; [and]

347-24               (11)  adopt rules relating to requirements for

 348-1   segregation of classes of inmates and to capacities for county

 348-2   jails;[.]

 348-3               (12) [(11)]  require that the chief jailer of each

 348-4   municipal lockup submit to the commission, on a form prescribed by

 348-5   the commission, an annual report of persons under 17 years of age

 348-6   securely detained in the lockup, including all information

 348-7   necessary to determine compliance with state law concerning secure

 348-8   confinement of children in municipal lockups; [and]

 348-9               (13) [(11)]  at least annually determine whether each

348-10   county jail is in compliance with the rules and procedures adopted

348-11   under this chapter; and[.]

348-12               (14) [(12)]  require that the sheriff and commissioners

348-13   court of each county submit to the commission, on a form prescribed

348-14   by the commission, an annual report of persons under 17 years of

348-15   age securely detained in the county jail, including all information

348-16   necessary to determine compliance with state law concerning secure

348-17   confinement of children in county jails.

348-18            ARTICLE 13.  CHANGES RELATING TO OPEN GOVERNMENT;

348-19                      ETHICS TITLE, GOVERNMENT CODE

348-20         SECTION 13.01.  Sections 552.324 and 552.325, Government

348-21   Code, as added by Chapter 578, Acts of the 74th Legislature,

348-22   Regular Session, 1995, are repealed because those sections

348-23   duplicate the same Government Code sections as added by Chapter

348-24   1035, Acts of the 74th Legislature, Regular Session, 1995.

 349-1         ARTICLE 14.  CHANGES RELATING TO STATE MEDICAID PROGRAM

 349-2         SECTION 14.01.  Section 531.001, Government Code, is amended

 349-3   to allow for expansion of Subtitle I, Title 4, Government Code, and

 349-4   to eliminate unnecessary repetition in that subtitle of those

 349-5   definitions, to read as follows:

 349-6         Sec. 531.001.  DEFINITIONS.  In this subtitle [chapter]:

 349-7               (1)  "Commission" means the Health and Human Services

 349-8   Commission.

 349-9               (2)  "Commissioner" means the commissioner of health

349-10   and human services.

349-11               (3)  "Health and human services agencies" includes the:

349-12                     (A)  Interagency Council on Early Childhood

349-13   Intervention Services;

349-14                     (B)  Texas Department on Aging;

349-15                     (C)  Texas Commission on Alcohol and Drug Abuse;

349-16                     (D)  Texas Commission for the Blind;

349-17                     (E)  Texas Commission for the Deaf and Hard of

349-18   Hearing [Impaired];

349-19                     (F)  Texas Department of Health;

349-20                     (G)  Texas Department of Human Services;

349-21                     (H)  Texas Juvenile Probation Commission;

349-22                     (I)  Texas Department of Mental Health and Mental

349-23   Retardation;

349-24                     (J)  Texas Rehabilitation Commission; and

 350-1                     (K)  Department of Protective and Regulatory

 350-2   Services.

 350-3         SECTION 14.02.  (a)  Section 531.011, Government Code, is

 350-4   amended to conform to Section 9.02, Chapter 655, Acts of the 74th

 350-5   Legislature, Regular Session, 1995, and Section 2, Chapter 885,

 350-6   Acts of the 74th Legislature, Regular Session, 1995, to read as

 350-7   follows:

 350-8         Sec. 531.011.  PUBLIC INPUT [INTEREST] INFORMATION AND

 350-9   COMPLAINTS.  (a)  The commission shall develop and implement

350-10   policies that provide the public a reasonable opportunity to appear

350-11   before the commission and to speak on any issue under the

350-12   commission's jurisdiction.

350-13         (b)  The commission shall develop and implement routine and

350-14   ongoing mechanisms, in accessible formats, to:

350-15               (1)  receive consumer input;

350-16               (2)  involve consumers in planning, delivery, and

350-17   evaluation of programs and services under the jurisdiction of the

350-18   commission; and

350-19               (3)  communicate to the public regarding the input

350-20   received by the commission under this section and actions taken in

350-21   response to that input.

350-22         (c)  The commission shall prepare information of public

350-23   interest describing the functions of the commission and the

350-24   commission's procedures  by which complaints are filed with and

 351-1   resolved by the commission.  The commission shall make the

 351-2   information available to the public and appropriate state agencies.

 351-3         (d) [(c)]  The commissioner by rule shall establish methods

 351-4   by which the public, consumers, and service recipients can be

 351-5   notified of the mailing addresses and telephone numbers of

 351-6   appropriate agency personnel for the purpose of directing

 351-7   complaints to the commission.  The commission may provide for that

 351-8   notification:

 351-9               (1)  on each registration form, application, or written

351-10   contract for services of a person regulated by the commission;

351-11               (2)  on a sign prominently displayed in the place of

351-12   business of each person regulated by the commission; or

351-13               (3)  in a bill for service provided by a person

351-14   regulated by the commission.

351-15         (e) [(d)]  The commission shall keep an information file

351-16   about each complaint filed with the commission relating to:

351-17               (1)  a license holder or entity regulated by the

351-18   commission; or

351-19               (2)  a service delivered by the commission.

351-20         (f) [(e)]  If a written complaint is filed with the

351-21   commission relating to a license holder or entity regulated by the

351-22   commission  or a service delivered by the commission, the

351-23   commission, at least quarterly and until final disposition of the

351-24   complaint, shall notify the parties to the complaint of the status

 352-1   of the complaint unless notice would jeopardize an undercover

 352-2   investigation.

 352-3         (b)  Section 9.02, Chapter 655, Acts of the 74th Legislature,

 352-4   Regular Session, 1995, and Section 2, Chapter 885, Acts of the 74th

 352-5   Legislature, Regular Session, 1995, are repealed.

 352-6         SECTION 14.03.  (a)  Subchapter B, Chapter 531, Government

 352-7   Code, is amended to conform to Section 1, Chapter 972, Acts of the

 352-8   74th Legislature, Regular Session, 1995, and Section 1, Chapter

 352-9   575, Acts of the 74th Legislature, Regular Session, 1995, by adding

352-10   Sections 531.0211-531.0214 to read as follows:

352-11         Sec. 531.0211.  MANAGED CARE MEDICAID PROGRAM: RULES;

352-12   EDUCATION PROGRAMS.  (a)  In adopting rules to implement a managed

352-13   care Medicaid program, the commission shall establish guidelines

352-14   for, and require managed care organizations to provide, education

352-15   programs for providers and clients using a variety of techniques

352-16   and mediums.

352-17         (b)  A provider education program must include information

352-18   on:

352-19               (1)  Medicaid policies, procedures, eligibility

352-20   standards, and benefits;

352-21               (2)  the specific problems and needs of Medicaid

352-22   clients; and

352-23               (3)  the rights and responsibilities of Medicaid

352-24   clients under the bill of rights and the bill of responsibilities

 353-1   prescribed by Section 531.0212.

 353-2         (c)  A client education program must present information in a

 353-3   manner that is easy to understand.  A program must include

 353-4   information on:

 353-5               (1)  a client's rights and responsibilities under the

 353-6   bill of rights and the bill of responsibilities prescribed by

 353-7   Section 531.0212;

 353-8               (2)  how to access health care services;

 353-9               (3)  how to access complaint procedures and the

353-10   client's right to bypass the managed care organization's internal

353-11   complaint system and use the notice and appeal procedures otherwise

353-12   required by the Medicaid program;

353-13               (4)  Medicaid policies, procedures, eligibility

353-14   standards, and benefits;

353-15               (5)  the policies and procedures of the managed care

353-16   organization; and

353-17               (6)  the importance of prevention, early intervention,

353-18   and appropriate use of services.

353-19         Sec. 531.0212.  MEDICAID BILL OF RIGHTS AND BILL OF

353-20   RESPONSIBILITIES.  (a)  The commission by rule shall adopt a bill

353-21   of rights and a  bill of responsibilities for each person enrolled

353-22   in the Medicaid program.

353-23         (b)  The bill of rights must address a client's right to:

353-24               (1)  respect, dignity, privacy, confidentiality, and

 354-1   nondiscrimination;

 354-2               (2)  a reasonable opportunity to choose a health care

 354-3   plan and primary care provider and to change to another plan or

 354-4   provider in a  reasonable manner;

 354-5               (3)  consent to or refuse treatment and actively

 354-6   participate in treatment decisions;

 354-7               (4)  ask questions and receive complete information

 354-8   relating to the client's medical condition and treatment options,

 354-9   including specialty care;

354-10               (5)  access each available complaint process, receive a

354-11   timely response to a complaint, and receive a fair hearing; and

354-12               (6)  timely access to care that does not have any

354-13   communication or physical access barriers.

354-14         (c)  The bill of responsibilities must address a client's

354-15   responsibility to:

354-16               (1)  learn and understand each right the client has

354-17   under the Medicaid program;

354-18               (2)  abide by the health plan and Medicaid policies and

354-19   procedures;

354-20               (3)  share information relating to the client's health

354-21   status with the primary care provider and become fully informed

354-22   about service and treatment options; and

354-23               (4)  actively participate in decisions relating to

354-24   service and treatment options, make personal choices, and take

 355-1   action to maintain the client's health.

 355-2         Sec. 531.0213.  SUPPORT SERVICES FOR MEDICAID RECIPIENTS.

 355-3   (a)  The commission shall provide support and information services

 355-4   to a person enrolled in or applying for Medicaid coverage who

 355-5   experiences barriers to receiving health care services.

 355-6         (b)  The commission shall give emphasis to assisting a person

 355-7   with an urgent or immediate medical or support need.

 355-8         (c)  The commission may provide support and information

 355-9   services by contracting with a nonprofit organization that is not

355-10   involved in providing health care, health insurance, or health

355-11   benefits.

355-12         (d)  As a part of the support and information services

355-13   required by this section, the commission or nonprofit organization

355-14   shall:

355-15               (1)  operate a statewide toll-free assistance telephone

355-16   number that includes TDD lines and assistance for persons who speak

355-17   Spanish;

355-18               (2)  intervene promptly with the state Medicaid office,

355-19   managed care organizations and providers, the Texas Department of

355-20   Health, and any other appropriate entity on behalf of a person who

355-21   has an urgent need for medical services;

355-22               (3)  assist a person who is experiencing barriers in

355-23   the Medicaid application and enrollment process and refer the

355-24   person for further assistance if appropriate;

 356-1               (4)  educate persons so that they:

 356-2                     (A)  understand the concept of managed care;

 356-3                     (B)  understand their rights under the Medicaid

 356-4   program, including grievance and appeal procedures; and

 356-5                     (C)  are able to advocate for themselves;

 356-6               (5)  collect and maintain statistical information on a

 356-7   regional basis regarding calls received by the assistance lines and

 356-8   publish quarterly reports that:

 356-9                     (A)  list the number of calls received by region;

356-10                     (B)  identify trends in delivery and access

356-11   problems;

356-12                     (C)  identify recurring barriers in the Medicaid

356-13   system; and

356-14                     (D)  indicate other problems identified with

356-15   Medicaid managed care; and

356-16               (6)  assist the state Medicaid office, managed care

356-17   organizations and providers, and the Texas Department of Health in

356-18   identifying and correcting problems, including site visits to

356-19   affected regions if necessary.

356-20         Sec. 531.0214.  MEDICAID DATA COLLECTION SYSTEM.  (a)  The

356-21   commission and each health and human services agency that

356-22   administers a part of the state Medicaid program shall jointly

356-23   develop a system to coordinate and integrate state Medicaid

356-24   databases to:

 357-1               (1)  facilitate the comprehensive analysis of Medicaid

 357-2   data; and

 357-3               (2)  detect fraud perpetrated by a program provider or

 357-4   client.

 357-5         (b)  To minimize cost and duplication of activities, the

 357-6   commission shall assist and coordinate:

 357-7               (1)  the efforts of the agencies that are participating

 357-8   in the development of the system required by Subsection (a); and

 357-9               (2)  the efforts of those agencies with the efforts of

357-10   other agencies involved in a statewide health care data collection

357-11   system provided for by Section 108.006, Health and Safety Code,

357-12   including avoiding duplication of expenditure of state funds for

357-13   computer hardware, staff, or services.

357-14         (c)  On the request of the commissioner, a state agency that

357-15   administers any part of the state Medicaid program shall assist the

357-16   commission in developing the system required by this section.

357-17         (d)  The commission shall develop the database system in a

357-18   manner that will enable a complete analysis of the use of

357-19   prescription medications, including information relating to:

357-20               (1)  Medicaid clients for whom more than three

357-21   medications have been prescribed; and

357-22               (2)  the medical effect denial of Medicaid coverage for

357-23   more than three medications has had on Medicaid clients.

357-24         (b)  Section 1, Chapter 972, Acts of the 74th Legislature,

 358-1   Regular Session, 1995, and Section 1, Chapter 575, Acts of the 74th

 358-2   Legislature, Regular Session, 1995, are repealed.

 358-3         SECTION 14.04.  (a)  Section 531.022, Government Code, is

 358-4   amended to conform to Section 1, Chapter 798, Acts of the 74th

 358-5   Legislature, Regular Session, 1995, by amending Subsection (d) and

 358-6   adding Subsection (e) to read as follows:

 358-7         (d)  In developing a plan and plan updates under this

 358-8   section, the commissioner shall consider:

 358-9               (1)  existing strategic plans of health and human

358-10   services agencies;

358-11               (2)  health and human services priorities and plans

358-12   submitted by governmental entities under Subsection (e);

358-13               (3)  facilitation of pending reorganizations or

358-14   consolidations of health and human services agencies and programs;

358-15               (4) [(3)]  public comment, including comment documented

358-16   through public hearings conducted under Section 531.036; and

358-17               (5) [(4)]  budgetary issues, including projected agency

358-18   needs and projected availability of funds.

358-19         (e)  The commissioner shall identify the governmental

358-20   entities that coordinate the delivery of health and human services

358-21   in regions, counties, and municipalities and request that each

358-22   entity:

358-23               (1)  identify the health and human services priorities

358-24   in the entity's jurisdiction and the most effective ways to deliver

 359-1   and coordinate services in that jurisdiction;

 359-2               (2)  develop a coordinated plan for the delivery of

 359-3   health and human services in the jurisdiction, including transition

 359-4   services that prepare special education students for adulthood; and

 359-5               (3)  make the information requested under Subdivisions

 359-6   (1) and (2) available to the commission.

 359-7         (b)  Section 1, Chapter 798, Acts of the 74th Legislature,

 359-8   Regular Session, 1995, is repealed.

 359-9         SECTION 14.05.  (a)  Section 531.023, Government Code, is

359-10   amended to conform to Section 9.01, Chapter 655, Acts of the 74th

359-11   Legislature, Regular Session, 1995, and Section 1, Chapter 885,

359-12   Acts of the 74th Legislature, Regular Session, 1995, to read as

359-13   follows:

359-14         Sec. 531.023.  SUBMISSION OF PLANS AND UPDATES BY AGENCIES.

359-15   (a)  All health and human services agencies shall submit to the

359-16   commission strategic plans and biennial updates on a date to be

359-17   determined by commission rule.  The commission shall review and

359-18   comment on the strategic plans and biennial  updates.

359-19         (b)  Not later than January 1 of each even-numbered year, the

359-20   commission shall begin formal discussions with each health and

359-21   human services agency regarding that agency's strategic plan or

359-22   biennial update.

359-23         (b)  Section 9.01, Chapter 655, Acts of the 74th Legislature,

359-24   Regular Session, 1995, and Section 1, Chapter 885, Acts of the 74th

 360-1   Legislature, Regular Session, 1995, are repealed.

 360-2         SECTION 14.06.  Section 531.024, Government Code, is amended

 360-3   to conform to Section 2, Chapter 798, Acts of the 74th Legislature,

 360-4   Regular Session, 1995, to read as follows:

 360-5         Sec. 531.024.  PLANNING AND DELIVERY OF HEALTH AND HUMAN

 360-6   SERVICES.  The commissioner shall:

 360-7               (1)  facilitate and enforce coordinated planning and

 360-8   delivery of health and human services, including:

 360-9                     (A)  compliance with the coordinated strategic

360-10   plan;

360-11                     (B)  co-location of services;

360-12                     (C)  integrated intake; and

360-13                     (D)  coordinated referral and case management;

360-14               (2)  develop with the Department of Information

360-15   Resources automation standards for computer systems to enable

360-16   health and human services agencies, including agencies operating at

360-17   a local level, to share pertinent data;

360-18               (3)  establish and enforce uniform regional boundaries

360-19   for all health and human services agencies;

360-20               (4)  carry out statewide health and human services

360-21   needs surveys and forecasting; [and]

360-22               (5)  perform independent special-outcome evaluations of

360-23   health and human services programs and activities; and

360-24               (6)  at the request of a governmental entity identified

 361-1   under Section 531.022(e), assist that entity in implementing a

 361-2   coordinated plan that may include co-location of services,

 361-3   integrated intake, and coordinated referral and case management and

 361-4   is tailored to the needs and priorities of that entity.

 361-5         SECTION 14.07.  (a)  Subchapter B, Chapter 531, Government

 361-6   Code, is amended to conform to Sections 9.06, 9.07, and 9.08,

 361-7   Chapter 655, Acts of the 74th Legislature, Regular Session, 1995;

 361-8   Section 3, Chapter 798, Acts of the 74th Legislature, Regular

 361-9   Session, 1995; and Sections 6, 7, and 8, Chapter 885, Acts of the

361-10   74th Legislature, Regular Session, 1995, by adding Sections

361-11   531.0241, 531.0242, and 531.0243 to read as follows:

361-12         Sec. 531.0241.  STREAMLINING DELIVERY OF SERVICES.  To

361-13   integrate and streamline service delivery and facilitate access to

361-14   services, the commissioner may request a health and human services

361-15   agency to take a specific action and may recommend the manner in

361-16   which the streamlining is to be accomplished, including requesting

361-17   each health and human services agency to:

361-18               (1)  simplify agency procedures;

361-19               (2)  automate agency procedures;

361-20               (3)  coordinate service planning and management tasks

361-21   between and among health and human services agencies;

361-22               (4)  reallocate staff resources;

361-23               (5)  adopt rules;

361-24               (6)  amend, waive, or repeal existing rules; or

 362-1               (7)  take other necessary actions.

 362-2         Sec. 531.0242.  USE OF AGENCY STAFF.  To the extent requested

 362-3   by the commission, a health and human services agency shall assign

 362-4   existing staff to perform a function imposed under this chapter.

 362-5         Sec. 531.0243.  REPORTS ON DELIVERY OF SERVICES.  (a)  The

 362-6   executive head of each health and human services agency shall

 362-7   report quarterly to the governing body of that agency on that

 362-8   agency's efforts to streamline and simplify the delivery of

 362-9   services.  The agency shall submit a copy of the report to the

362-10   commission.

362-11         (b)  The commission shall prepare and deliver a semiannual

362-12   report to the governor, the lieutenant governor, the speaker of the

362-13   house of representatives, the comptroller, the Legislative Budget

362-14   Board, and appropriate legislative committees on the efforts of the

362-15   health and human services agencies to streamline the delivery of

362-16   services provided by those agencies.

362-17         (c)  The commissioner shall adopt rules relating to the

362-18   reports required by Subsection (a), including rules specifying when

362-19   and in what manner an agency must report and the information to be

362-20   included in the report.  Each agency shall follow the rules adopted

362-21   by the commissioner under this section.

362-22         (b)  Sections 9.06, 9.07, and 9.08, Chapter 655, Acts of the

362-23   74th Legislature, Regular Session, 1995; Section 3, Chapter 798,

362-24   Acts of the 74th Legislature, Regular Session, 1995; and Sections

 363-1   6, 7, and 8, Chapter 885, Acts of the 74th Legislature, Regular

 363-2   Session, 1995, are repealed.

 363-3         SECTION 14.08.  (a)  Section 531.027, Government Code, is

 363-4   amended to conform to Section 9.03, Chapter 655, Acts of the 74th

 363-5   Legislature, Regular Session, 1995, and Section 3, Chapter 885,

 363-6   Acts of the 74th Legislature, Regular Session, 1995, to read as

 363-7   follows:

 363-8         Sec. 531.027.  APPROPRIATIONS REQUEST BY AGENCIES.  (a)  Each

 363-9   health and human services agency shall submit to the commission a

363-10   biennial agency legislative appropriations request on a date to be

363-11   determined by commission rule.

363-12         (b)  A health and human services agency may not submit to the

363-13   legislature or the governor its legislative appropriations request

363-14   until the commission reviews and comments on the legislative

363-15   appropriations request.

363-16         (b)  Section 9.03, Chapter 655, Acts of the 74th Legislature,

363-17   Regular Session, 1995, and Section 3, Chapter 885, Acts of the 74th

363-18   Legislature, Regular Session, 1995, are repealed.

363-19         SECTION 14.09.  (a)  Subchapter B, Chapter 531, Government

363-20   Code, is amended to conform to Section 9.04, Chapter 655, Acts of

363-21   the 74th Legislature, Regular Session, 1995, and Section 4, Chapter

363-22   885, Acts of the 74th Legislature, Regular Session, 1995, by adding

363-23   Sections 531.0271, 531.0272, 531.0273, and 531.0274 to read as

363-24   follows:

 364-1         Sec. 531.0271.  HEALTH AND HUMAN SERVICES AGENCIES OPERATING

 364-2   BUDGETS.  (a)  In addition to the provisions of the General

 364-3   Appropriations Act, the commission shall review and comment on:

 364-4               (1)  the annual operating budget of each health and

 364-5   human services agency; and

 364-6               (2)  the transfer of funds between budget strategies

 364-7   made by each health and human services agency before that transfer.

 364-8         (b)  The commission shall issue a quarterly report regarding

 364-9   the projected expenditures by budget strategy of each health and

364-10   human services agency compared to each agency's operating budget.

364-11         Sec. 531.0272.  FEDERAL FUNDS.  Notwithstanding any other

364-12   state law and to the extent permitted by federal law, the

364-13   commission may review and comment on an operational or funding plan

364-14   or a modification to that plan prepared by a health and human

364-15   services agency designated as the single state agency to administer

364-16   federal funds.

364-17         Sec. 531.0273.  AUTOMATED SYSTEMS.  A health and human

364-18   services agency may not submit its plans to the Department of

364-19   Information Resources under Subchapter E, Chapter 2054, until those

364-20   plans are approved by the commission.

364-21         Sec. 531.0274.  COORDINATION AND APPROVAL OF CASELOAD

364-22   ESTIMATES; REPORT.  (a)  The commission shall coordinate and

364-23   approve caseload estimates made for programs administered by health

364-24   and human services agencies.

 365-1         (b)  To implement this section, the commission shall:

 365-2               (1)  adopt uniform guidelines to be used by health and

 365-3   human services agencies in estimating their caseloads, with

 365-4   allowances given for those agencies for which exceptions from the

 365-5   guidelines may be necessary;

 365-6               (2)  assemble a single set of economic and demographic

 365-7   data and provide that data to each health and human services agency

 365-8   to be used in estimating its caseloads; and

 365-9               (3)  seek advice from health and human services

365-10   agencies, the Legislative Budget Board, the governor's budget

365-11   office, the comptroller, and other relevant agencies as needed to

365-12   coordinate the caseload estimating process.

365-13         (c)  The commission shall assemble caseload estimates made by

365-14   health and human services agencies into a coherent, uniform report

365-15   and shall update that report quarterly with assistance from those

365-16   agencies.  The commission shall publish the report and make it

365-17   readily available to state and local agencies and interested

365-18   private organizations.

365-19         (d)  In the report prepared under Subsection (c), the

365-20   commission shall explain the caseload estimates using monthly

365-21   averages, annual unduplicated recipients, annual service usage, and

365-22   other commonly used measures.

365-23         (e)  The commission shall attach a copy of the report

365-24   prepared under Subsection (c) to the consolidated health and human

 366-1   services budget recommendation submitted to the Legislative Budget

 366-2   Board under Section 531.026 and shall also submit the report to the

 366-3   legislature when it convenes in regular session.

 366-4         (b)  Section 9.04, Chapter 655, Acts of the 74th Legislature,

 366-5   Regular Session, 1995, and Section 4, Chapter 885, Acts of the 74th

 366-6   Legislature, Regular Session, 1995, are repealed.

 366-7         SECTION 14.10.  (a)  Section 531.028, Government Code, is

 366-8   amended to conform to Section 9.05, Chapter 655, Acts of the 74th

 366-9   Legislature, Regular Session, 1995, and Section 5, Chapter 885,

366-10   Acts of the 74th Legislature, Regular Session, 1995, to read as

366-11   follows:

366-12         Sec. 531.028.  MANAGEMENT AND DISTRIBUTION OF FUNDS.  The

366-13   commissioner shall:

366-14               (1)  request budget execution for the transfer of funds

366-15   from one agency to another;

366-16               (2)  establish a federal health and human services

366-17   funds management system and maximize the availability of those

366-18   funds; and

366-19               (3)  review and comment on health and human services

366-20   agency formulas [develop a formula] for the distribution of funds

366-21   to ensure that the formulas, to the extent permitted by federal

366-22   law, consider [considers] such need factors as client base,

366-23   population, and economic and geographic factors within the regions

366-24   of the state.

 367-1         (b)  Subchapter B, Chapter 531, Government Code, is amended

 367-2   to conform to Section 9.05, Chapter 655, Acts of the 74th

 367-3   Legislature, Regular Session, 1995, and Section 5, Chapter 885,

 367-4   Acts of the 74th Legislature, Regular Session, 1995, by adding

 367-5   Section 531.0311 to read as follows:

 367-6         Sec. 531.0311.  ANNUAL WORK PLAN.  Not later than the end of

 367-7   the first month of each fiscal year, the commissioner shall submit

 367-8   to the governor, the lieutenant governor, the speaker of the house

 367-9   of representatives, the comptroller, and the Legislative Budget

367-10   Board a work plan outlining the activities of the commission for

367-11   that fiscal year.  The work plan must establish priorities for the

367-12   commission's activities based on available resources.

367-13         (c)  Section 531.035, Government Code, is amended to conform

367-14   to Section 9.05, Chapter 655, Acts of the 74th Legislature, Regular

367-15   Session, 1995; Section 2, Chapter 798, Acts of the 74th

367-16   Legislature, Regular Session, 1995; and Section 5, Chapter 885,

367-17   Acts of the 74th Legislature, Regular Session, 1995, to read as

367-18   follows:

367-19         Sec. 531.035.  DISPUTE ARBITRATION.  The commissioner shall

367-20   arbitrate and render the [a] final decision on interagency

367-21   disputes.

367-22         (d)  Section 9.05, Chapter 655, Acts of the 74th Legislature,

367-23   Regular Session, 1995; Section 2, Chapter 798, Acts of the 74th

367-24   Legislature, Regular Session, 1995; and Section 5, Chapter 885,

 368-1   Acts of the 74th Legislature, Regular Session, 1995, are repealed.

 368-2         SECTION 14.11.  (a)  Subchapter B, Chapter 531, Government

 368-3   Code, is amended to conform to Section 1, Chapter 627, Acts of the

 368-4   74th Legislature, Regular Session, 1995, by adding Section 531.042

 368-5   to read as follows:

 368-6         Sec. 531.042.  COMMUNITY-BASED SERVICES INFORMATION; REPORTS.

 368-7   (a)  The commissioner by rule shall require each health and human

 368-8   services agency to provide to each patient or client of the agency

 368-9   information regarding community-based services appropriate to the

368-10   needs of the patient or client before the agency allows the patient

368-11   or client to be placed in a care setting to receive care or

368-12   services provided by the agency or by a person under an agreement

368-13   with the agency.

368-14         (b)  The rules must require each health and human services

368-15   agency to provide information about all community-based long-term

368-16   care options and long-term support options available to the patient

368-17   or client, including options available through another agency or a

368-18   private provider.  The information must be provided in a manner

368-19   designed to maximize the patient's or client's understanding of all

368-20   available options.  If the patient or client has a guardian, the

368-21   information must also be provided to the guardian.

368-22         (c)  A health and human services agency that provides a

368-23   patient, client, or guardian with information as provided by

368-24   commission rules shall obtain a statement signed by the patient or

 369-1   client, and, if the patient or client has a guardian, by the

 369-2   patient's or client's guardian, that the patient or client has been

 369-3   informed about community-based care and support options as required

 369-4   by commission rules.  The agency shall retain a copy of each signed

 369-5   statement in the patient's or client's case records.

 369-6         (d)  Each health and human services agency annually and as

 369-7   provided by commission rule shall report to the commission the

 369-8   number of community-based service placements and residential-care

 369-9   placements the agency makes.

369-10         (b)  Section 1, Chapter 627, Acts of the 74th Legislature,

369-11   Regular Session, 1995, is repealed.

369-12         SECTION 14.12.  (a)  Subchapter B, Chapter 531, Government

369-13   Code, is amended to conform to Section 1, Chapter 949, Acts of the

369-14   74th  Legislature, Regular Session, 1995, by adding Section 531.043

369-15   to read as follows:

369-16         Sec. 531.043.  LONG-TERM CARE VISION.  (a)  In conjunction

369-17   with the appropriate state agencies, the commissioner shall develop

369-18   a plan for access to individualized long-term care services for

369-19   persons with functional limitations or medical needs and their

369-20   families that assists those persons in achieving and maintaining

369-21   the greatest possible independence, autonomy, and quality of life.

369-22         (b)  The guiding principles and goals of the plan focusing on

369-23   the individual and the individual's family must:

369-24               (1)  recognize that it is the policy of this state that

 370-1   children should grow up in families and that persons with

 370-2   disabilities and elderly persons should live in the setting of

 370-3   their choice; and

 370-4               (2)  ensure that persons needing assistance and their

 370-5   families will have:

 370-6                     (A)  the maximum possible control over their

 370-7   services;

 370-8                     (B)  a choice of a broad, comprehensive array of

 370-9   services designed to meet individual needs; and

370-10                     (C)  the easiest possible access to appropriate

370-11   care and support, regardless of the area of the state in which they

370-12   live.

370-13         (c)  The guiding principles and goals of the long-term care

370-14   plan focusing on services and delivery of those services by the

370-15   state must:

370-16               (1)  emphasize the development of home-based and

370-17   community-based services and housing alternatives to complement the

370-18   long-term care services already in existence;

370-19               (2)  ensure that services will be of the highest

370-20   possible quality, with a minimum amount of regulation, structure,

370-21   and complexity at the service level;

370-22               (3)  recognize that maximum independence and autonomy

370-23   represent major goals, and with those comes a certain degree of

370-24   risk;

 371-1               (4)  maximize resources to the greatest extent

 371-2   possible, with the consumer receiving only the services that the

 371-3   consumer prefers and that are indicated by a functional assessment

 371-4   of need; and

 371-5               (5)  structure the service delivery system to support

 371-6   these goals, ensuring that any necessary complexity of the system

 371-7   is at the administrative level rather than at the client level.

 371-8         (d)  The commission shall coordinate state services to ensure

 371-9   that:

371-10               (1)  the roles and responsibilities of the agencies

371-11   providing long-term care are clarified; and

371-12               (2)  duplication of services and resources is

371-13   minimized.

371-14         (e)  In this section, "long-term care" means the provision of

371-15   health care, personal care, and assistance related to health and

371-16   social services  over a sustained period to people of all ages and

371-17   their families, regardless of the setting in which the care is

371-18   given.

371-19         (b)  Section 1, Chapter 949, Acts of the 74th  Legislature,

371-20   Regular Session, 1995, is repealed.

371-21         SECTION 14.13.  (a)  Subchapter B, Chapter 531, Government

371-22   Code, is amended to conform to Section 6.01(a), Chapter 655, Acts

371-23   of the 74th Legislature, Regular Session, 1995, by adding Section

371-24   531.044 to read as follows:

 372-1         Sec. 531.044.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS.

 372-2   (a)  The commission shall assist recipients of financial assistance

 372-3   under Chapter 31, Human Resources Code, who are eligible for

 372-4   assistance under federal programs to apply for benefits under those

 372-5   federal programs.  The commission may delegate this responsibility

 372-6   to a health and human service agency, contract with a unit of local

 372-7   government, or use any other cost-effective method to assist

 372-8   financial assistance recipients who are eligible for federal

 372-9   programs.

372-10         (b)  The commission shall organize a planning group involving

372-11   the Texas Department of Human Services, the Texas Education Agency,

372-12   and the Texas Rehabilitation Commission to:

372-13               (1)  improve workload coordination between those

372-14   agencies as necessary to administer this section; and

372-15               (2)  provide information and help train employees to

372-16   correctly screen applicants under this section as requested by the

372-17   commission.

372-18         (b)  Section 6.01(a), Chapter 655, Acts of the 74th

372-19   Legislature, Regular Session, 1995, is repealed.

372-20         SECTION 14.14.  (a)  Subchapter B, Chapter 531, Government

372-21   Code, is amended to conform to Section 8.10, Chapter 655, Acts of

372-22   the 74th  Legislature, Regular Session, 1995, by adding Section

372-23   531.045 to read as follows:

372-24         Sec. 531.045.  INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS

 373-1   TRANSFERS.  (a)  The interagency task force on electronic benefits

 373-2   transfers shall advise and assist the commission in adding new

 373-3   benefit programs to the statewide electronic benefits transfer

 373-4   system.

 373-5         (b)  The task force is composed of:

 373-6               (1)  a representative of:

 373-7                     (A)  the attorney general's office, appointed by

 373-8   the attorney general;

 373-9                     (B)  the comptroller's office, appointed by the

373-10   comptroller;

373-11                     (C)  the commission, appointed by the

373-12   commissioner;

373-13                     (D)  the Texas Department of Health, appointed by

373-14   the commissioner of public health;

373-15                     (E)  the Texas Department of Human Services,

373-16   appointed by the commissioner of human services;

373-17                     (F)  the Texas Workforce Commission, appointed by

373-18   the presiding officer of that agency; and

373-19                     (G)  the Texas Rehabilitation Commission,

373-20   appointed by the commissioner of that agency; and

373-21               (2)  two representatives of each of the following

373-22   groups, appointed by the comptroller:

373-23                     (A)  retailers who maintain electronic benefits

373-24   transfer point-of-sale equipment;

 374-1                     (B)  banks or owners of automatic teller

 374-2   machines; and

 374-3                     (C)  consumer or client advocacy organizations.

 374-4         (c)  A member of the task force serves at the will of the

 374-5   appointing agency.

 374-6         (d)  The representative of the comptroller's office serves as

 374-7   presiding officer.  The task force may elect any other necessary

 374-8   officers.

 374-9         (e)  The task force shall meet at the call of the presiding

374-10   officer.

374-11         (f)  The appointing agency is responsible for the expenses of

374-12   a member's service on the task force.  A member of the task force

374-13   is not entitled to additional compensation for serving on the task

374-14   force.

374-15         (g)  The task force shall:

374-16               (1)  serve as this state's counterpoint to the federal

374-17   electronic benefits transfer task force;

374-18               (2)  identify benefit programs that merit addition to

374-19   this state's electronic benefits transfer system;

374-20               (3)  identify and address problems that may occur if a

374-21   program is added;

374-22               (4)  pursue state-federal partnerships to facilitate

374-23   the development and expansion of this state's electronic benefits

374-24   transfer system;

 375-1               (5)  track and distribute federal legislation and

 375-2   information from other states that relate to electronic benefits

 375-3   transfer systems;

 375-4               (6)  ensure efficiency and planning coordination in

 375-5   relation to this state's electronic benefits transfer system;

 375-6               (7)  develop a plan using the experience and expertise

 375-7   of the Department of Public Safety of the State of Texas for the

 375-8   use of a photograph or other imaging technology on all electronic

 375-9   benefits transfer cards and, if proven to be effective in reducing

375-10   fraud and misuse, begin using the new cards starting with

375-11   replacement cards for cards that were used in the program on June

375-12   13, 1995; and

375-13               (8)  review current and potential fraud problems with

375-14   electronic benefits transfer and propose methods to prevent or

375-15   deter fraud.

375-16         (h)  In determining which benefit programs can be added to

375-17   this state's electronic benefits transfer system, the task force

375-18   shall consider, at a minimum:

375-19               (1)  the savings to this state;

375-20               (2)  the ease of addition to existing infrastructure;

375-21   and

375-22               (3)  the number of clients served.

375-23         (b)  Section 8.10, Chapter 655, Acts of the 74th

375-24   Legislature, Regular Session, 1995, is repealed.

 376-1         SECTION 14.15.  (a)  Subchapter B, Chapter 531, Government

 376-2   Code, is amended to conform to Section 6.08(a), Chapter 655, Acts

 376-3   of the 74th Legislature, Regular Session, 1995, by adding Section

 376-4   531.046 to read as follows:

 376-5         Sec. 531.046.  FEDERAL FUNDING FOR CHEMICAL DEPENDENCY

 376-6   SERVICES.  The commission shall coordinate with the Texas

 376-7   Commission on Alcohol and Drug Abuse and the Texas Department of

 376-8   Human Services to amend the eligibility requirements of this

 376-9   state's emergency assistance plan under Title IV-A, Social Security

376-10   Act (42 U.S.C. Section 601 et seq.), to include either a child or a

376-11   significant adult in a child's family who needs chemical dependency

376-12   treatment.

376-13         (b)  Section 6.08(a), Chapter 655, Acts of the 74th

376-14   Legislature, Regular Session, 1995, is repealed.

376-15         SECTION 14.16.  Chapter 531, Government Code, is amended to

376-16   conform to Section 1, Chapter 444, Acts of the 74th Legislature,

376-17   Regular Session, 1995, by adding Subchapter C to read as follows:

376-18          SUBCHAPTER C.  MEDICAID FRAUD, MISUSE, OR OVERCHARGES

376-19         Sec. 531.101.  AWARD FOR REPORTING MEDICAID FRAUD, MISUSE, OR

376-20   OVERCHARGES.  (a)  The commission may grant an award to an

376-21   individual who reports activity that constitutes fraud or misuse of

376-22   funds in the state Medicaid program or reports overcharges in the

376-23   program if the commission determines that the disclosure results in

376-24   the recovery of an overcharge or in the termination of the

 377-1   fraudulent activity or misuse of funds.

 377-2         (b)  The commission shall determine the amount of an award.

 377-3   The award must be equal to not less than 10 percent of the  savings

 377-4   to this state that result from the individual's disclosure.  In

 377-5   determining the amount of the award, the commission shall consider

 377-6   how important the disclosure is in ensuring the fiscal integrity of

 377-7   the program.

 377-8         (c)  An award under this section is subject to appropriation.

 377-9   The award must be paid from money appropriated to or otherwise

377-10   available to the commission, and additional money may not be

377-11   appropriated to the commission for the purpose of paying the award.

377-12         (d)  Payment of an award under this section from federal

377-13   funds is subject to the permissible use under federal law of funds

377-14   for this purpose.

377-15         SECTION 14.17.  (a)  Subtitle I, Title 4, Government Code, is

377-16   amended to conform to Sections 1 and 2, Chapter 444, Acts of the

377-17   74th  Legislature, Regular Session, 1995, by adding Chapter 532 to

377-18   read as follows:

377-19           CHAPTER 532.  MEDICAID MANAGED CARE DELIVERY SYSTEM

377-20                    SUBCHAPTER A.  GENERAL PROVISIONS

377-21         Sec. 532.001.  DEFINITIONS.  In this chapter:

377-22               (1)  "Managed care organization" means a person who is

377-23   authorized or otherwise permitted by law to arrange for or provide

377-24   a managed care plan.

 378-1               (2)  "Managed care plan" means a plan under which a

 378-2   person undertakes to provide, arrange for, pay for, or reimburse

 378-3   any part of the cost of any health care services.  A part of the

 378-4   plan must consist of arranging for or providing health care

 378-5   services as distinguished from indemnification against the cost of

 378-6   those services on a prepaid basis through insurance or otherwise.

 378-7   The term does not include a plan that indemnifies a person for the

 378-8   cost of health care services through insurance.

 378-9               (3)  "Resources" means:

378-10                     (A)  for an entity listed in Section

378-11   532.104(a)(1), (2), (3), (7), (8), or (9) or Section 532.104(b),

378-12   tax or other public revenues spent on indigent health care; and

378-13                     (B)  for an entity listed in Section

378-14   532.104(a)(4), (5), or (6), the value of unsponsored charity care,

378-15   as described by the General Appropriations Act, provided by or on

378-16   behalf of that entity to indigent persons and general revenue or

378-17   other funds used for matching under the Medicaid disproportionate

378-18   share program.

378-19               (4)  "Resources or other funds available for matching"

378-20   or "resources and other funds available for matching" means

378-21   resources and other funds made available by an entity listed in

378-22   Section 532.104 that the federal government has determined are

378-23   acceptable for matching under a waiver submitted to develop and

378-24   implement the health care delivery system developed under this

 379-1   chapter.

 379-2         Sec. 532.002.  IMPLEMENTATION OF HEALTH CARE DELIVERY SYSTEM;

 379-3   ENFORCEMENT.  (a)  In accordance with this subtitle and other

 379-4   applicable state and federal statutes, the commission shall:

 379-5               (1)  implement a health care delivery system developed

 379-6   under this chapter; and

 379-7               (2)  monitor compliance with, and take action as

 379-8   necessary or appropriate, including the use of administrative

 379-9   penalties, to enforce this chapter and related rules, federal

379-10   waivers, and orders and decisions of the commission.

379-11         (b)  Except as prohibited by federal law, the commission and

379-12   the Texas Department of Insurance shall share confidential

379-13   information, including financial data, that relates to or affects a

379-14   person that may contract with the commission or an

379-15   intergovernmental initiative to carry out the purposes of this

379-16   chapter.

379-17         Sec. 532.003.  RULES FOR HEALTH CARE DELIVERY SYSTEM.  (a)

379-18   The commission shall adopt rules as necessary or appropriate to

379-19   carry out its functions under this chapter.

379-20         (b)  The commissioner of insurance shall adopt rules as

379-21   necessary or appropriate to carry out functions of the Texas

379-22   Department of Insurance under Section 532.002 and Subchapter C.

379-23         (c)  The commission may require a health and human services

379-24   agency that operates a part of the state Medicaid program to adopt,

 380-1   with the approval of the commission, rules under Subsection (a) as

 380-2   necessary or appropriate to implement this chapter.

 380-3         Sec. 532.004.  DELEGATION OF AUTHORITY.  The commission may

 380-4   delegate to a health and human services agency that operates a part

 380-5   of the state Medicaid program the authority to exercise all or part

 380-6   of the commission's functions, powers, and duties under Section

 380-7   532.002 and Subchapters B and C.

 380-8            (Sections 532.005-532.100 reserved for expansion

 380-9                 SUBCHAPTER B.  MEDICAID DELIVERY SYSTEM

380-10         Sec. 532.101.  MEDICAID HEALTH CARE DELIVERY SYSTEM.  (a)

380-11   The commission shall develop a health care delivery system that

380-12   restructures the delivery of health care services provided under

380-13   the state Medicaid program.

380-14         (b)  The commission shall develop the health care delivery

380-15   system only if the commission obtains a waiver or other

380-16   authorization from all necessary federal agencies to implement the

380-17   system.

380-18         Sec. 532.102.  DESIGN AND DEVELOPMENT OF HEALTH CARE DELIVERY

380-19   SYSTEM.  (a)  In developing the health care delivery system under

380-20   this chapter, the commission shall:

380-21               (1)  to the extent possible, design the system in a

380-22   manner that:

380-23                     (A)  improves the health of the people of this

380-24   state by:

 381-1                           (i)  emphasizing prevention;

 381-2                           (ii)  promoting continuity of care; and

 381-3                           (iii)  providing a medical home for

 381-4   Medicaid recipients; and

 381-5                     (B)  ensures that each recipient can receive high

 381-6   quality, comprehensive health care services in the recipient's

 381-7   local community;

 381-8               (2)  design the system in a manner that enables this

 381-9   state and the local governmental entities that make resources and

381-10   other funds available for matching to the commission under this

381-11   subchapter to control the costs associated with the state Medicaid

381-12   program and, to the extent possible, results in cost savings to

381-13   this state and those local governmental entities through health

381-14   care service delivery based on managed care;

381-15               (3)  to the extent it is cost-effective to this state

381-16   and local governments:

381-17                     (A)  maximize the financing of the state Medicaid

381-18   program by obtaining federal matching funds for all resources and

381-19   other funds available for matching; and

381-20                     (B)  expand Medicaid eligibility to include

381-21   persons who were eligible to receive indigent health care services

381-22   through the use of those resources or other funds available for

381-23   matching before expansion of eligibility, with priority to

381-24   expanding eligibility to children and their families;

 382-1               (4)  to the extent possible, develop a plan to expand

 382-2   Medicaid eligibility to include children and other persons, other

 382-3   than those persons described by Subdivision (3), that is funded by

 382-4   using:

 382-5                     (A)  appropriations that have previously been

 382-6   made to other agencies or other programs to provide related health

 382-7   care services to those children and other persons;

 382-8                     (B)  earned federal funds;

 382-9                     (C)  contributions by those children or other

382-10   persons or their families; or

382-11                     (D)  resources or other funds available for

382-12   matching;

382-13               (5)  design the system to ensure that if the system

382-14   includes a method to finance the state Medicaid program by

382-15   obtaining federal matching funds for resources and other funds

382-16   available for matching, each entity listed in Section

382-17   532.104(a)(1), (2), (3), (7), (8), or (9) or Section 532.104(b)

382-18   that makes those resources and other funds available receives funds

382-19   to provide health care services to persons who are eligible for

382-20   Medicaid under the expanded eligibility criteria developed under

382-21   Subdivision (3) or (4) in an amount that is at least equal to the

382-22   amount of resources or other funds available for matching provided

382-23   by that entity under this chapter;

382-24               (6)  to the extent possible, provide for each entity

 383-1   that makes resources and other funds available for matching under

 383-2   this subchapter an option to operate the health care delivery

 383-3   system in its region, including appropriate portions of the

 383-4   eligibility determination process, subject to the standards of and

 383-5   oversight by the commission;

 383-6               (7)  design the system to:

 383-7                     (A)  include methods for ensuring accountability

 383-8   to this state for the provision of health care services under the

 383-9   state Medicaid  program, including methods for financial reporting,

383-10   quality assurance, and utilization review;

383-11                     (B)  provide a single point of accountability for

383-12   collection of uniform data to assess, compile, and analyze outcome

383-13   quality and  cost efficiency;

383-14                     (C)  conduct comparative analyses of compiled

383-15   data to assess the relative value of alternative health care

383-16   delivery systems and report to the governor, lieutenant governor,

383-17   and speaker of the house of representatives;

383-18                     (D)  oversee the procedures for setting

383-19   capitation and provider payment rates to ensure the cost-effective

383-20   provision of quality health care;

383-21                     (E)  ensure that both private and public health

383-22   care providers and managed care organizations, including a hospital

383-23   that has been designated as a disproportionate share hospital under

383-24   the state Medicaid program, have an opportunity to participate in

 384-1   the system;

 384-2                     (F)  ensure, in adopting rules implementing the

 384-3   system, that in developing the provider network for the system, the

 384-4   commission, each intergovernmental initiative, and each managed

 384-5   care organization, as applicable, give extra consideration to a

 384-6   health care provider who has traditionally provided care to

 384-7   Medicaid and charity care patients;

 384-8                     (G)  give extra consideration to providers who

 384-9   agree to ensure continuity of care for Medicaid clients for 12

384-10   months beyond the period of eligibility; and

384-11                     (H)  require that the commission, each

384-12   intergovernmental initiative, and each managed care organization,

384-13   as applicable, include in its provider network, for not less than

384-14   three years, each health care provider who:

384-15                           (i)  previously provided care to Medicaid

384-16   and charity care patients at a significant level as prescribed by

384-17   the commission;

384-18                           (ii)  agrees to accept the standard

384-19   provider reimbursement rate of the commission, the

384-20   intergovernmental initiative, or the managed care organization, as

384-21   applicable;

384-22                           (iii)  meets the credentialing requirements

384-23   under the system of the commission, the intergovernmental

384-24   initiative, or the managed care organization, as applicable,

 385-1   provided that lack of board certification or accreditation by the

 385-2   Joint Commission on Accreditation of Healthcare Organizations may

 385-3   not be the sole grounds for exclusion from the provider network;

 385-4   and

 385-5                           (iv)  agrees to comply and does comply with

 385-6   all of the terms of the standard provider agreement of the

 385-7   commission, intergovernmental initiative, or managed care

 385-8   organization, as applicable;

 385-9               (8)  design the system in a manner that, to the extent

385-10   possible, enables the state to manage care to lower the cost of

385-11   providing Medicaid services through the use of health care delivery

385-12   systems such as a primary care case management system, partially

385-13   capitated system, or fully capitated system or a combination of one

385-14   or more of those systems and use, if possible, multiple, competing

385-15   managed care organizations in those systems;

385-16               (9)  design the system in a manner that enables the

385-17   state to:

385-18                     (A)  use different types of health care delivery

385-19   systems to meet the needs of different populations, including the

385-20   establishment  of pilot programs to deliver health care services to

385-21   children with special health care needs;

385-22                     (B)  recognize the unique role of rural

385-23   hospitals, physicians, home and community support services

385-24   agencies, and other rural health care providers in providing access

 386-1   to health care services for persons who live in rural areas of this

 386-2   state; and

 386-3                     (C)  review data from existing or new pilot

 386-4   programs that cover all prescription drugs that are medically

 386-5   indicated for a person by a licensed health care provider in

 386-6   primary and preventive care and implement any changes in the state

 386-7   Medicaid program that as a result of the review are determined to

 386-8   be cost-effective and cost-neutral;

 386-9               (10)  establish geographic health care service regions

386-10   after consulting with local governmental entities that provide

386-11   resources or other funds available for matching under this section

386-12   and emphasize regional coordination in the provision of indigent

386-13   health care;

386-14               (11)  simplify eligibility criteria and streamline

386-15   eligibility determination processes;

386-16               (12)  to the extent possible, provide a one-stop

386-17   approach for client information and referral for managed care

386-18   services;

386-19               (13)  to the extent possible, design the system in a

386-20   manner that encourages the training of and access to primary care

386-21   physicians;

386-22               (14)  develop and prepare, after consulting with the

386-23   following entities, the waiver or other documents necessary to

386-24   obtain federal authorization for the system:

 387-1                     (A)  governmental entities that provide health

 387-2   care services and assistance to indigent persons in this state;

 387-3                     (B)  consumer representatives;

 387-4                     (C)  managed care organizations; and

 387-5                     (D)  health care providers;

 387-6               (15)  design the system to ensure that if the system

 387-7   includes a method to finance the state Medicaid program by

 387-8   obtaining federal matching funds for resources and other funds

 387-9   available for matching, an amount not to exceed $20 million a year

387-10   must be dedicated under the system as prescribed in the waiver for

387-11   special payments to rural hospitals that:

387-12                     (A)  are sole community providers and provide a

387-13   significant amount of care to Medicaid and charity care patients as

387-14   prescribed by the commission; and

387-15                     (B)  are located in a county in which the county,

387-16   or another entity located in the county and described by Section

387-17   532.104:

387-18                           (i)  has executed a matching funds

387-19   agreement with the commission under this subchapter; and

387-20                           (ii)  participates in an intergovernmental

387-21   initiative under Subchapter C with a county that is contiguous to

387-22   the county in which the rural hospital is located or with another

387-23   entity described by Section 532.104 that is located in the

387-24   contiguous county if the contiguous county or the entity located in

 388-1   the contiguous county is one of the entities that forms an

 388-2   intergovernmental  initiative under Subchapter C;

 388-3               (16)  if necessary to ensure that all resources or

 388-4   other funds available for matching are maximized in accordance with

 388-5   Subdivision (3), design the system to ensure that an amount

 388-6   determined by the commission is dedicated under the system as

 388-7   prescribed in the waiver for special payments to hospitals that

 388-8   provide at least 14,000 low-income patient days as determined by

 388-9   the commission under the procedures used for determining

388-10   eligibility for the Medicaid disproportionate share program;

388-11               (17)  design a cost-neutral system to provide for a

388-12   sliding scale copayment system for individuals who are above 100

388-13   percent of the federal poverty level;

388-14               (18)  to the extent possible and subject to the

388-15   availability of funds, design a cost-neutral system to allow the

388-16   development of a buy-in program with sliding scale premiums for

388-17   Medicaid recipients who are leaving the program and have incomes

388-18   between 150 percent and 250 percent of the federal poverty level;

388-19               (19)  design the system in a manner that, to the extent

388-20   possible, maintains administrative costs at a level not to exceed

388-21   five percent of the cost of the state Medicaid program; and

388-22               (20)  develop and implement, in consultation with a

388-23   professional association representing 51 percent or more of the

388-24   licensed dentists in this state, a pilot program for child and

 389-1   adult dental care that:

 389-2                     (A)  is prevention-based;

 389-3                     (B)  allows the choice of dentists to be at the

 389-4   discretion of the eligible recipient, who chooses from a list of

 389-5   qualified and participating providers or dental managed care

 389-6   organizations; and

 389-7                     (C)  explores the use of local funds spent on

 389-8   dental health care in the period before June 13, 1995, as a method

 389-9   for financing the state share of the pilot program.

389-10         (b)  In determining what constitutes a significant level of

389-11   care provided to Medicaid and charity care patients for purposes of

389-12   Subsection (a)(7)(H)(i), the commission shall include in its

389-13   consideration:

389-14               (1)  minimized disruption to existing physician-patient

389-15   relationships;

389-16               (2)  access by a patient to quality health care

389-17   services in the patient's local community;

389-18               (3)  the dollar amount of Medicaid care delivered by a

389-19   particular nonhospital provider in proportion to the dollar amount

389-20   of Medicaid care delivered by other similar nonhospital providers

389-21   in the same field of practice; and

389-22               (4)  the level of Medicaid and charity care delivered

389-23   by a particular hospital, as measured under the Medicaid

389-24   disproportionate share program, in proportion to that delivered by

 390-1   other hospitals.

 390-2         Sec. 532.103.  RESTRICTION ON USE OF GENERAL REVENUE FUNDS.

 390-3   (a)  If this state is authorized by the federal government to

 390-4   expand the eligibility requirements for participation in the state

 390-5   Medicaid program under the health care delivery system developed

 390-6   under this chapter, the commission shall adopt procedures to ensure

 390-7   that appropriations from the general revenue fund, including

 390-8   accounts consolidated in the general revenue fund, may not be used

 390-9   to provide health care services under the system to persons

390-10   described by Section 532.102(a)(3) or (4).

390-11         (b)  Procedures adopted under Subsection (a) do not apply to:

390-12               (1)  federal funds appropriated from the general

390-13   revenue fund;

390-14               (2)  amounts local governmental entities make available

390-15   for matching under this section;

390-16               (3)  appropriations from the general revenue fund to an

390-17   entity described by Section 532.104(a)(4), (5), or (6) to provide

390-18   indigent health care services;

390-19               (4)  appropriations from the general revenue fund used

390-20   for matching under the Medicaid disproportionate share program; or

390-21               (5)  appropriations from the general revenue fund to

390-22   provide health care services to children.

390-23         Sec. 532.104.  MATCHING FUNDS: ENTITIES AFFECTED.  (a)  If

390-24   the health care delivery system developed under this chapter

 391-1   includes a method to finance the state Medicaid program by

 391-2   obtaining federal matching funds for resources and other funds

 391-3   available for matching and if the commission has obtained federal

 391-4   authorization to implement the system, the following entities, in

 391-5   accordance  with final, binding matching funds agreements executed

 391-6   by those entities under Section 532.109, shall make resources

 391-7   available for matching to the commission for use in implementing

 391-8   the system:

 391-9               (1)  a hospital district created and established under

391-10   the authority of Sections 4 through 11, Article IX, Texas

391-11   Constitution;

391-12               (2)  a hospital authority created and established under

391-13   Chapter 262 or 264, Health and Safety Code, that to some extent

391-14   uses resources for the provision of health care services to

391-15   indigent persons;

391-16               (3)  a hospital owned and operated by a municipality,

391-17   county, or hospital authority and created under Chapter 262 or 264,

391-18   Health and Safety Code;

391-19               (4)  a medical school operated by this state;

391-20               (5)  a medical school that receives state funds under

391-21   Section 61.093, Education Code, or a chiropractic school that

391-22   receives state funds under the General Appropriations Act;

391-23               (6)  a teaching hospital operated by The University of

391-24   Texas System;

 392-1               (7)  a county that provides health care services and

 392-2   assistance to indigent residents of the county under Subchapter B,

 392-3   Chapter 61,  Health and Safety Code, if the commissioners court of

 392-4   the county adopts a resolution requesting that the county

 392-5   participate in the health care delivery system by executing a

 392-6   matching funds agreement under Section 532.109;

 392-7               (8)  a governmental entity that provides funds to a

 392-8   public hospital for the provision of health care services to

 392-9   indigent persons under Section 61.062, Health and Safety Code;

392-10               (9)  a county with a population of more than 400,000

392-11   that provides funds to a public hospital and that is not included

392-12   in the boundaries of a hospital district; and

392-13               (10)  a hospital owned by a municipality and leased to

392-14   and operated by a nonprofit hospital for a public purpose, subject

392-15   to federal approval of matching funds from such an entity.

392-16         (b)  In addition to the entities listed in Subsection (a),

392-17   the following entities may make resources available for matching to

392-18   the commission for use in implementing the health care delivery

392-19   system if the commission designs the system in a manner that

392-20   expands Medicaid eligibility to include some or all of the clients

392-21   of the entity who did not meet the eligibility requirements in

392-22   effect immediately before the Medicaid eligibility requirements

392-23   were expanded and to cover some or all of the health care services

392-24   provided by the entity to those clients:

 393-1               (1)  a local mental health authority or a local mental

 393-2   retardation authority as defined by Section 531.002, Health and

 393-3   Safety Code;

 393-4               (2)  a municipal or county health department; or

 393-5               (3)  any other governmental entity that provides health

 393-6   care services to indigent persons.

 393-7         Sec. 532.105.  COMPUTATION OF AVAILABLE RESOURCES.  The

 393-8   amount of resources an entity makes available to the commission in

 393-9   a fiscal year under Section 532.104 is computed by:

393-10               (1)  adding the total amount of resources the entity

393-11   spent on or provided for indigent health care during the entity's

393-12   fiscal year ending in 1994; and

393-13               (2)  subtracting from the amount computed under

393-14   Subdivision (1) the following adjustments:

393-15                     (A)  the amount of resources the entity spent on

393-16   or provided for health care services during the entity's fiscal

393-17   year ending in 1994 that were provided by the entity or on the

393-18   entity's behalf to indigent persons who would not have been

393-19   eligible to receive services under the eligibility criteria

393-20   developed under Section 532.102(a)(3);

393-21                     (B)  to the extent and while the commission

393-22   determines whether to continue the current Medicaid

393-23   disproportionate share program that was in operation on June 13,

393-24   1995, and before all the disproportionate share funds become part

 394-1   of the health care delivery system developed under the waiver, the

 394-2   estimate of the amount of resources, if any, the entity will

 394-3   transfer in each fiscal year to the Texas Department of Health

 394-4   under the Medicaid disproportionate share program; and

 394-5                     (C)  any other necessary or equitable adjustment

 394-6   as determined by the commission.

 394-7         Sec. 532.106.  ADDITIONAL RESOURCES AND OTHER FUNDS.  (a)

 394-8   The commission and the governing body of an entity that makes

 394-9   resources available for matching to the commission under this

394-10   subchapter may agree that the entity may make available for

394-11   matching resources or other funds in addition to those amounts

394-12   computed under Section 532.105.

394-13         (b)  Additional resources or funds may include an amount that

394-14   reflects the costs associated with the growth in the state Medicaid

394-15   program as estimated in a federal waiver application or other

394-16   federal authorization that is required to be submitted to implement

394-17   the health care delivery system.

394-18         (c)  Additional amounts of resources or other funds made

394-19   available for matching by an entity under this section must be

394-20   contained in the final binding matching funds agreement executed by

394-21   the entity under Section 532.109.

394-22         Sec. 532.107.  RULES FOR MATCHING RESOURCES.  (a)  The

394-23   commission by rule shall determine the manner in which an entity

394-24   described by Section 532.104 shall make resources available for

 395-1   matching to the commission under this subchapter.

 395-2         (b)  If an intergovernmental initiative is formed under

 395-3   Subchapter C, each entity listed under Section 532.104 that

 395-4   participates in the intergovernmental initiative shall make its

 395-5   resources available for matching to the commission by making its

 395-6   resources available to the intergovernmental initiative, subject to

 395-7   federal approval.

 395-8         Sec. 532.108.  MEMORANDUM OF UNDERSTANDING: MATCHING

 395-9   RESOURCES AND OTHER FUNDS.  (a)  The commission shall prepare for

395-10   an entity that makes resources or other funds available for

395-11   matching to the commission under this subchapter a proposed

395-12   memorandum of understanding that states the amount of resources and

395-13   other funds available for matching the entity will make available

395-14   to the commission each year under Sections 532.105 and 532.106.

395-15         (b)  A memorandum of understanding serves as the basis for

395-16   the negotiation of a final binding agreement called a "matching

395-17   funds agreement" between the governing body of the entity, the

395-18   commissioners court, if applicable, and the commission.

395-19         (c)  If an entity under Subsection (a) is a hospital district

395-20   the tax rate for which is set by the commissioners court of a

395-21   county in which the hospital district is located, the commissioners

395-22   court must also agree to the amount of resources or other funds

395-23   available for matching made available by the hospital district

395-24   under Sections 532.105 and 532.106.

 396-1         Sec. 532.109.  MATCHING FUNDS AGREEMENT.  (a)  A matching

 396-2   funds agreement for an entity that makes resources or other funds

 396-3   available for matching to the commission under this subchapter must

 396-4   include for each year the agreement is in effect:

 396-5               (1)  a statement of the amount of resources or other

 396-6   funds available for matching the entity agrees to make available to

 396-7   the commission under Sections 532.105 and 532.106 to provide health

 396-8   care services to eligible individuals described by the commission

 396-9   in the waiver application that a federal agency may require to

396-10   implement the health care delivery system;

396-11               (2)  an estimate of the cost of providing services to

396-12   eligible individuals described by Subdivision (1) by category and

396-13   by income level;

396-14               (3)  an estimate of the number of eligible individuals

396-15   described by Subdivision (1) who are being served, by category and

396-16   by income level;

396-17               (4)  a description of the scope of services to be

396-18   provided to eligible individuals described by Subdivision (1);

396-19               (5)  a provision stating the requirement prescribed by

396-20   Section 532.102(a)(5);

396-21               (6)  a provision stating that if the federal Health

396-22   Care Financing Administration and the commission modify the waiver

396-23   application submitted by the commission to implement the health

396-24   care delivery system with respect to financing, eligibility

 397-1   criteria, or scope of services, the commission or an entity that

 397-2   executes a matching funds agreement may request renegotiation or

 397-3   modification of the terms of the agreement and the other party

 397-4   shall make a good faith effort to renegotiate or modify the terms

 397-5   of the agreement;

 397-6               (7)  a provision stating that if substantial changes in

 397-7   the financing, eligibility criteria, or scope of services provided

 397-8   to eligible individuals described by Subdivision (1) are mandated

 397-9   by federal or state law, the commission and an entity that executes

397-10   a matching funds agreement may mutually agree to modify the

397-11   agreement; and

397-12               (8)  other information the commission may require.

397-13         (b)  The expiration date of the matching funds agreement must

397-14   be the same date as the expiration date of a waiver authorizing the

397-15   implementation of the health care delivery system developed under

397-16   this chapter.

397-17         (c)  If a party to the matching funds agreement is an entity

397-18   located in a metropolitan statistical area as defined by the United

397-19   States Office of Management and Budget on June 13, 1995, the

397-20   matching funds agreement must be executed by the entity and

397-21   commission before the commission submits a waiver application that

397-22   a federal agency may require to implement the health care delivery

397-23   system unless the commission determines to extend the agreement due

397-24   date for an entity because of extraordinary circumstances.

 398-1         (d)  A matching funds agreement entered into by the

 398-2   commission and an entity located outside a metropolitan statistical

 398-3   area may be executed after the waiver application is approved.  The

 398-4   commission by rule shall determine the time by which the matching

 398-5   funds agreement of such an entity must be executed by that entity

 398-6   and the commission.

 398-7         Sec. 532.110.  COUNTY'S LIABILITY FOR INDIGENT HEALTH CARE.

 398-8   The liability of a county described by Section 532.104(a)(7) for

 398-9   health care services and assistance under Subchapter B, Chapter 61,

398-10   Health and Safety Code, is not affected by this subchapter.

398-11         Sec. 532.111.  RULES FOR SPECIAL PAYMENTS TO RURAL HOSPITALS.

398-12   The commission by rule shall develop a procedure for the

398-13   distribution of special payments that may be made to a rural

398-14   hospital under Section 532.102(a)(15).

398-15            (Sections 532.112-532.200 reserved for expansion

398-16              SUBCHAPTER C.  INTERGOVERNMENTAL INITIATIVES

398-17         Sec. 532.201.  FORMATION OF INTERGOVERNMENTAL INITIATIVES.

398-18   (a)  If a health care delivery system developed under this chapter

398-19   includes a method to finance the state Medicaid program by

398-20   obtaining federal matching funds for local and state resources

398-21   spent on or provided for indigent health care, one or more of the

398-22   entities listed in Section 532.104 that make resources or other

398-23   funds available for matching under a matching funds agreement may

398-24   form an intergovernmental initiative to operate the health care

 399-1   delivery system in a geographical area in accordance with this

 399-2   subchapter.

 399-3         (b)  An intergovernmental initiative formed under this

 399-4   section may serve more than one county.  A county may not be served

 399-5   by more than one intergovernmental initiative.

 399-6         (c)  The commission, with the consent of each entity that

 399-7   forms the intergovernmental initiative, may modify the geographical

 399-8   area the intergovernmental initiative serves to:

 399-9               (1)  promote client access to health care services and

399-10   continuity of care; and

399-11               (2)  move toward full regionalization of the health

399-12   care delivery system.

399-13         (d)  An intergovernmental initiative must be formed as:

399-14               (1)  a nonprofit corporation under the Texas Non-Profit

399-15   Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil

399-16   Statutes); or

399-17               (2)  any other nonstock, nonprofit entity that is

399-18   approved by the commission.

399-19         (e)  An intergovernmental initiative formed under this

399-20   section is a governmental unit for purposes of Chapter 101, Civil

399-21   Practice and Remedies Code.

399-22         Sec. 532.202.  DUTIES OF INTERGOVERNMENTAL INITIATIVE.  An

399-23   intergovernmental initiative formed under this subchapter shall:

399-24               (1)  operate the health care delivery system developed

 400-1   under this chapter in the geographical area described by the health

 400-2   care delivery plan agreement of the intergovernmental initiative

 400-3   subject to the standards of and oversight by the commission and the

 400-4   standards and oversight requirements contained in:

 400-5                     (A)  applicable state and federal statutes and

 400-6   rules;

 400-7                     (B)  federal waivers or other federal

 400-8   authorizations required to implement the health care delivery

 400-9   system; and

400-10                     (C)  the health care delivery plan agreement

400-11   executed under this subchapter by the entities forming the

400-12   intergovernmental initiative;

400-13               (2)  perform the functions in operating the health care

400-14   delivery system that are prescribed by the health care delivery

400-15   plan agreement executed by the entities forming the

400-16   intergovernmental initiative and the commission;

400-17               (3)  if applicable, make supplemental payments as

400-18   necessary to entities that make resources and other funds available

400-19   for matching to the intergovernmental initiative under Subchapter B

400-20   to satisfy the purpose of Section 532.102(a)(5) and Section

400-21   532.210(9);

400-22               (4)  to the extent possible, manage care to lower the

400-23   cost of providing Medicaid services through the use of health care

400-24   delivery systems such as a primary care case management system,

 401-1   partially capitated system, or fully capitated system or a

 401-2   combination of one or more of those systems and use, if possible,

 401-3   multiple, competing managed care organizations within those

 401-4   systems;

 401-5               (5)  comply with Chapter 551; and

 401-6               (6)  use any savings that accrue to the

 401-7   intergovernmental initiative or the entities that form the

 401-8   intergovernmental initiative through operation of the health care

 401-9   delivery plan agreement solely to deliver and provide health care

401-10   to indigent persons.

401-11         Sec. 532.203.  GOVERNANCE.  An intergovernmental initiative

401-12   formed under this subchapter shall be governed as provided by

401-13   Sections 532.204-532.206.

401-14         Sec. 532.204.  EXECUTIVE COMMITTEE; MEMBERS AND DUTIES.  (a)

401-15   Each intergovernmental initiative has an executive committee

401-16   composed of representatives of each of the entities that formed the

401-17   intergovernmental initiative.

401-18         (b)  If more than one entity forms an intergovernmental

401-19   initiative, the entities shall share governance of the executive

401-20   committee in proportion to the amount of resources and other funds

401-21   they make available for matching under the matching funds

401-22   agreement.

401-23         (c)  The executive committee has exclusive authority to

401-24   manage the public funds of the intergovernmental initiative,

 402-1   including the authority to determine how those funds will be used

 402-2   in accordance with this subchapter and other applicable law.

 402-3         Sec. 532.205.  GOVERNING BOARD.  (a)  The governing board of

 402-4   an intergovernmental initiative is composed of the executive

 402-5   committee and other persons appointed by the executive committee as

 402-6   prescribed by Subsection (b).

 402-7         (b)  The executive committee shall appoint to the governing

 402-8   board of the intergovernmental initiative at least one person that

 402-9   represents each of the following groups located in the geographical

402-10   area the intergovernmental initiative serves:

402-11               (1)  clients of the intergovernmental initiative;

402-12               (2)  a children's hospital or, if there is not a

402-13   children's hospital located in the geographical area served by the

402-14   intergovernmental initiative, the program director of an approved

402-15   family practice residency training program as defined by Section

402-16   61.501, Education Code;

402-17               (3)  physicians or other individual health care

402-18   providers;

402-19               (4)  a nonprofit hospital;

402-20               (5)  a for-profit hospital;

402-21               (6)  a managed care organization that is licensed by

402-22   the Texas Department of Insurance;

402-23               (7)  each hospital, whether public or private, that

402-24   provided during the state fiscal year ending August 31, 1995, at

 403-1   least 14,000 low-income days of care as determined by the Texas

 403-2   Department of Health for purposes of determining eligibility for

 403-3   the Medicaid disproportionate share program or at least 14,000

 403-4   low-income days of care during the state fiscal year preceding the

 403-5   date of appointment as determined by the commission, as applicable;

 403-6   and

 403-7               (8)  a rural hospital that received payments under the

 403-8   Medicaid disproportionate share program during the hospital's

 403-9   fiscal year preceding the date of appointment.

403-10         (c)  A person appointed to the governing board by the

403-11   executive committee under Subsection (b) may be appointed as a

403-12   representative of more than one group listed in that subsection.

403-13   If a group listed in that subsection is not located in the

403-14   geographical area served by the intergovernmental initiative, the

403-15   executive committee is not required to appoint a representative of

403-16   that group to the governing board.

403-17         (d)  It is a ground for removal from the governing board if

403-18   the group a member represents does not maintain during service on

403-19   the governing board the qualifications required for inclusion on

403-20   the board under this section.

403-21         (e)  Representation on the governing board and the manner in

403-22   which votes are apportioned among members of the governing board

403-23   who are not members of the executive committee shall be based

403-24   primarily on the relative level of Medicaid and charity care

 404-1   services, as defined by Section 311.031, Health and Safety Code,

 404-2   that are provided by those nonexecutive committee members of the

 404-3   governing board during the two years preceding the date of the

 404-4   appointment to the governing board.

 404-5         (f)  Notwithstanding Subsection (e), the executive committee

 404-6   must have at least 51 percent of the voting rights on the governing

 404-7   board.  The votes of the executive committee must be apportioned in

 404-8   the manner described by Section 532.204(b).

 404-9         (g)  The governing board of an intergovernmental initiative

404-10   shall address health care delivery system issues for the

404-11   intergovernmental initiative, including the preparation and

404-12   negotiation of the proposed health care delivery plan for the

404-13   intergovernmental initiative under Section 532.208.

404-14         Sec. 532.206.  COMMISSIONERS COURT APPROVAL.  (a)  If an

404-15   intergovernmental initiative formed under this subchapter includes

404-16   a hospital district the tax rate for which is set by the

404-17   commissioners court of a county in the hospital district, the

404-18   commissioners court of that county must also agree to the structure

404-19   of governance of the intergovernmental initiative within the

404-20   requirements of this subchapter.

404-21         (b)  The commissioners court shall take action required under

404-22   this section not later than the date on which the health care

404-23   delivery plan agreement for the intergovernmental initiative is

404-24   considered approved or is rejected by the commissioners court under

 405-1   Section 532.212.

 405-2         Sec. 532.207.  LETTER OF INTENT.  (a)  Not later than the

 405-3   60th day after the date the commission submits to the federal

 405-4   government an application for a waiver or other authorization

 405-5   required to implement the health care delivery system developed

 405-6   under this chapter, the entities listed in Section 532.104 that

 405-7   have executed a matching funds agreement under Section 532.109(c)

 405-8   or (d) and that intend to form an intergovernmental initiative

 405-9   shall submit to the commission a letter of intent to form the

405-10   intergovernmental initiative.

405-11         (b)  Notwithstanding Subsection (a), if all of the entities

405-12   that intend to form an intergovernmental initiative are located

405-13   outside a metropolitan statistical area, the commission by rule

405-14   shall determine the time by which those entities must submit to the

405-15   commission a letter of intent to form the intergovernmental

405-16   initiative.

405-17         (c)  A letter of intent must include any information required

405-18   by the commission, including at a minimum the names and addresses

405-19   of the entities that intend to form the intergovernmental

405-20   initiative and the geographical area to be served by the

405-21   intergovernmental initiative.

405-22         (d)  A letter of intent is not binding on the entities or the

405-23   commission and only serves to inform the commission of the areas of

405-24   this state that intend to be part of an intergovernmental

 406-1   initiative.

 406-2         Sec. 532.208.  PROPOSED HEALTH CARE DELIVERY PLAN.  (a)

 406-3   Within the time specified by the commission after the date the

 406-4   federal government approves a waiver or gives federal authorization

 406-5   required to implement the health care delivery system developed

 406-6   under this chapter, the entities that have submitted a letter of

 406-7   intent to form an intergovernmental initiative under this

 406-8   subchapter shall jointly submit to the commission a proposed health

 406-9   care delivery plan that contains the information required by the

406-10   commission.

406-11         (b)  A proposed health care delivery plan serves as the basis

406-12   for negotiation of a final binding agreement called a "health care

406-13   delivery plan agreement" between the entities and the commission

406-14   and is not binding on the entities or the commission.

406-15         (c)  The commission by rule shall set a reasonable date by

406-16   which the entities must submit and negotiate the proposed health

406-17   care delivery plan.  The date must be based on the schedule in the

406-18   waiver developed by the commission for phasing in the health care

406-19   delivery system statewide.

406-20         (d)  A negotiated health care delivery plan agreement takes

406-21   effect as provided by the terms of the agreement unless rejected by

406-22   a commissioners court as provided by Section 532.212.

406-23         Sec. 532.209.  RULES REGARDING PLAN AGREEMENT.  (a)  The

406-24   commission shall adopt rules regarding the health care delivery

 407-1   plan agreement and requiring an intergovernmental initiative to

 407-2   seek public input in the development and provisions of the health

 407-3   care delivery plan agreement of the intergovernmental initiative.

 407-4         (b)  The commission shall develop a model plan agreement that

 407-5   includes the minimum requirements established by rule for a health

 407-6   care delivery plan agreement.

 407-7         Sec. 532.210.  MINIMUM REQUIREMENTS OF PLAN AGREEMENT.  The

 407-8   minimum requirements of a health care delivery plan agreement must

 407-9   include:

407-10               (1)  compliance with uniform criteria that are set in

407-11   the waiver described by Section 532.208 for establishing

407-12   eligibility for persons receiving services under the plan;

407-13               (2)  compliance with a uniform description and

407-14   provision of services that is set in the waiver for persons covered

407-15   by the health care delivery plan;

407-16               (3)  the assurance that, to the extent possible,

407-17   payments made to the intergovernmental initiative on a capitated

407-18   basis consider the geographic, risk-adjusted cost of providing care

407-19   to persons eligible for Medicaid;

407-20               (4)  the development of a sufficient provider network

407-21   to ensure adequate access to quality health care services

407-22   consistent with the waiver and any standards prescribed by the

407-23   federal Health Care Financing Administration or the commission,

407-24   including standards relating to travel time and distance that are

 408-1   designed to ensure access by patients to health care providers in

 408-2   the patient's local community;

 408-3               (5)  the development and operation by each

 408-4   intergovernmental initiative, managed care organization, and

 408-5   provider that participates in the health care delivery system of

 408-6   policies regarding financial management, quality assurance,

 408-7   utilization review, and patient access in accordance with standards

 408-8   consistent with the waiver and any standards prescribed by the

 408-9   federal Health Care Financing Administration or the commission;

408-10               (6)  the opportunity for participation of public and

408-11   private managed care organizations and providers in the health care

408-12   delivery system in accordance with standards established by the

408-13   commission, including provisions relating to:

408-14                     (A)  a procedure in the geographic service area

408-15   of an intergovernmental initiative for selection of participating

408-16   managed care organizations and providers, that must provide added

408-17   weight for additional services of value to the state such as a

408-18   continuum of care for Medicaid and charity care patients, trauma,

408-19   Level I emergency services, neonatal intensive care, medical

408-20   education, or other specialty services;

408-21                     (B)  a procedure in the geographic service area

408-22   of an intergovernmental initiative for establishing capitation

408-23   rates and provider payment rates, which rates may be supplemented

408-24   in exchange for the provision of specified additional services; and

 409-1                     (C)  a procedure in the geographic service area

 409-2   of an intergovernmental initiative to ensure recipients have the

 409-3   choice of multiple managed care organizations if possible and

 409-4   multiple providers;

 409-5               (7)  maintenance of adequate stop-loss coverage of the

 409-6   intergovernmental initiative or any managed care organization under

 409-7   contract with the intergovernmental initiative, including

 409-8   provisions to ensure that adequate stop-loss coverage is available;

 409-9               (8)  phasing in operation of the health care delivery

409-10   system, as appropriate to the area served by the intergovernmental

409-11   initiative, in accordance with any waiver application approval or

409-12   other federal authorization to implement the health care delivery

409-13   system, which may include provisions that include methods, such as

409-14   reserve funds, for phasing disproportionate share funds into

409-15   financing the system under the waiver;

409-16               (9)  ensuring that the amount of funds each

409-17   participating entity listed in Section 532.104(a)(1), (2), (3),

409-18   (7), (8), or (9) or Section 532.104(b) receives to provide Medicaid

409-19   health care services to persons who are eligible for Medicaid as a

409-20   result of the expanded eligibility criteria developed under Section

409-21   532.102(a)(3) or (4) is at least equal to the amount of resources

409-22   and other funds made available for matching to the commission by

409-23   the entity;

409-24               (10)  notice to health care providers of the procedures

 410-1   used by the intergovernmental initiative or any managed care

 410-2   organization under contract with the intergovernmental initiative

 410-3   to solicit bids for the delivery of services by health care

 410-4   providers;

 410-5               (11)  grievance and appeal procedures for persons who

 410-6   are denied services or have a complaint regarding the quality of

 410-7   services  under the health care delivery plan;

 410-8               (12)  grievance and appeal procedures for health care

 410-9   providers who are denied participation in the health care delivery

410-10   plan or who want to appeal the:

410-11                     (A)  computation of payment rates under the plan;

410-12                     (B)  denial or reduction of supplemental payment

410-13   amounts; or

410-14                     (C)  denial or reduction of payment for services

410-15   provided or to be provided under the plan; and

410-16               (13)  procedures for transactions made or contracts

410-17   entered into under the health care delivery plan agreement that

410-18   involve conflicts of interest, including procedures that:

410-19                     (A)  require members of an intergovernmental

410-20   initiative's governing board to disclose any financial or other

410-21   interest in entities with which the intergovernmental initiative

410-22   contracts;

410-23                     (B)  ensure compliance with the requirements

410-24   prescribed by Article 2.30, Texas Non-Profit Corporation Act

 411-1   (Article 1396-2.30, Vernon's Texas Civil Statutes), and any other

 411-2   applicable law; and

 411-3                     (C)  at a minimum apply to a contract or

 411-4   transaction between:

 411-5                           (i)  an intergovernmental initiative and

 411-6   one or more of the members of the intergovernmental initiative's

 411-7   governing board;

 411-8                           (ii)  an intergovernmental initiative and a

 411-9   business entity in which one or more members of the

411-10   intergovernmental initiative's governing board are directors or

411-11   officers or have a financial interest; or

411-12                           (iii)  an intergovernmental initiative and

411-13   a business entity listed in Section 532.205(b) that is represented

411-14   on the intergovernmental initiative's governing board.

411-15         Sec. 532.211.  COMMISSION APPROVAL OF PLAN AGREEMENT.  (a)

411-16   Before an intergovernmental initiative may operate the health care

411-17   delivery system developed under this chapter in accordance with the

411-18   health care delivery plan agreement, the commission must approve,

411-19   after notice and a public hearing held in the geographic service

411-20   area, the plan agreement, the structure of governance within the

411-21   requirements of Sections 532.204-532.206, and the geographic

411-22   service area of the intergovernmental initiative.

411-23         (b)  The criteria on which the commission bases its decision

411-24   to approve a health care delivery plan agreement must include:

 412-1               (1)  the cost-effectiveness of the health care delivery

 412-2   plan;

 412-3               (2)  the opportunity for public and private managed

 412-4   care organizations and providers to participate in the health care

 412-5   delivery plan;

 412-6               (3)  access to quality health care services;

 412-7               (4)  any savings to this state; and

 412-8               (5)  whether the plan agreement contains the minimum

 412-9   requirements prescribed by Section 532.210.

412-10         Sec. 532.212.  COMMISSIONERS COURT APPROVAL OF PLAN

412-11   AGREEMENT.  (a)  If an intergovernmental initiative formed under

412-12   this subchapter includes a hospital district the tax rate for which

412-13   is set by the commissioners court of a county in which the hospital

412-14   district is located, the intergovernmental initiative shall file

412-15   the negotiated health care delivery plan agreement with the

412-16   commissioners court.

412-17         (b)  A negotiated agreement is considered approved by the

412-18   commissioners court on the 30th day after the date on which the

412-19   intergovernmental initiative files the negotiated agreement unless

412-20   before the end of that 30-day period the commissioners court adopts

412-21   a resolution rejecting the negotiated agreement.

412-22         (c)  The commissioners court may adopt a resolution to

412-23   delegate the authority to reject the negotiated health care

412-24   delivery plan agreement to the board of directors of the hospital

 413-1   district.

 413-2         Sec. 532.213.  WAIVERS.  (a)  The health care delivery plan

 413-3   agreement for an intergovernmental initiative must be completed

 413-4   before the commission implements an approved waiver in the area

 413-5   covered by the intergovernmental initiative.

 413-6         (b)  If an approved waiver is terminated, the

 413-7   intergovernmental initiative or commission is entitled to terminate

 413-8   the health care delivery plan agreement.  If the waiver is modified

 413-9   in a manner that affects the provision of services in the area

413-10   covered by the health care delivery plan agreement, the

413-11   intergovernmental initiative or the commission may request

413-12   renegotiation and modification of the plan agreement, and the other

413-13   party shall make a good faith effort to renegotiate and modify the

413-14   agreement.

413-15         Sec. 532.214.  CONTRACTUAL POWER.  (a)  An intergovernmental

413-16   initiative formed under this subchapter may contract with any

413-17   public or private person to perform any of the intergovernmental

413-18   initiative's powers or duties.

413-19         (b)  The entities that form the intergovernmental initiative

413-20   may contract, collaborate, or enter into a joint venture with other

413-21   persons as necessary or appropriate to form or carry out the

413-22   functions of or provide services to the intergovernmental

413-23   initiative.

413-24         (c)  A contract, collaborative arrangement, or joint venture

 414-1   entered into under this section by an entity that forms an

 414-2   intergovernmental initiative is subject to the standards of and

 414-3   oversight by the commission as authorized under this chapter.

 414-4         Sec. 532.215.  CONTRACT WITH MANAGED CARE ORGANIZATION.  (a)

 414-5   The intergovernmental initiative shall determine the managed care

 414-6   organizations with which the intergovernmental initiative may

 414-7   contract under the plan agreement.

 414-8         (b)  A contract entered into between an intergovernmental

 414-9   initiative and a managed care organization under this chapter must

414-10   comply with federal requirements and the standards adopted under

414-11   this subchapter.

414-12         Sec. 532.216.  CONTRACTING MANAGED CARE ORGANIZATION:

414-13   REQUIREMENTS.  (a)  A managed care organization that contracts with

414-14   the commission or with an intergovernmental initiative to provide

414-15   or arrange to provide health care benefits or services to Medicaid

414-16   eligible individuals must:

414-17               (1)  be a health maintenance organization that holds a

414-18   certificate of authority to operate under the Texas Health

414-19   Maintenance Organization Act (Article 20A.01 et seq., Vernon's

414-20   Texas Insurance Code); or

414-21               (2)  be regulated by the Texas Department of Insurance

414-22   in a manner determined by the department to be substantially

414-23   similar in all material aspects to the manner in which the

414-24   department regulates health maintenance organizations.

 415-1         (b)  If a managed care organization that contracts with the

 415-2   commission or with an intergovernmental initiative to provide or

 415-3   arrange to provide health care benefits or services to Medicaid

 415-4   eligible individuals is not certified or regulated under Subsection

 415-5   (a), the organization must:

 415-6               (1)  demonstrate to the satisfaction of the Texas

 415-7   Department of Insurance that the managed care organization has

 415-8   obtained insurance or other protection through an insurance company

 415-9   licensed under the Insurance Code to guaranty the cost of health

415-10   care benefits or services to be provided by the managed care

415-11   organization and to provide coverage in the event of failure of the

415-12   managed care organization to meet its obligation under the

415-13   contract; and

415-14               (2)  satisfy federal law and regulations relating to

415-15   minimum solvency requirements applicable to entities or persons

415-16   contracting under the state Medicaid program.

415-17         (c)  Subsections (a) and (b) do not affect the requirement

415-18   that any person subject to Section 26(f)(2), Texas Health

415-19   Maintenance Organization Act (Article 20A.26, Vernon's Texas

415-20   Insurance Code), obtain a certificate of authority from the

415-21   commissioner of insurance.  A state agency or intergovernmental

415-22   initiative may not contract with a person subject to Section

415-23   26(f)(2), Texas Health Maintenance Organization Act (Article

415-24   20A.26, Vernon's Texas Insurance Code), unless that person holds a

 416-1   certificate of authority from the commissioner of insurance.

 416-2         Sec. 532.217.  COMMISSION REVIEW OF CONTRACT.  (a)  Not later

 416-3   than the 30th day after the date on which a contract described by

 416-4   Section 532.215 is executed, the intergovernmental initiative shall

 416-5   submit the contract to the commission for review to ensure that the

 416-6   contract complies with federal requirements and the standards

 416-7   adopted under this subchapter.

 416-8         (b)  The commission on review may require the

 416-9   intergovernmental initiative to modify the contract to comply with

416-10   federal requirements and state standards.

416-11         Sec. 532.218.  EXEMPTION FROM OTHER LAWS.  An

416-12   intergovernmental initiative that operates a health care delivery

416-13   system in accordance with an  approved health care delivery plan

416-14   agreement is exempt from the Texas Health Maintenance Organization

416-15   Act (Article 20A.01 et seq., Vernon's Texas Insurance Code) and

416-16   Articles 21.07-6 and 21.58A, Insurance Code, to the extent that the

416-17   intergovernmental initiative:

416-18               (1)  contracts to purchase services to operate the

416-19   health care delivery system through a managed care organization

416-20   that:

416-21                     (A)  is a health maintenance organization that

416-22   holds a certificate of authority to operate under the Texas Health

416-23   Maintenance Organization Act (Article 20A.01 et seq., Vernon's

416-24   Texas Insurance Code);

 417-1                     (B)  is regulated by the Texas Department of

 417-2   Insurance in a manner determined by the department to be

 417-3   substantially similar in all material aspects to the manner in

 417-4   which the department regulates health maintenance organizations; or

 417-5                     (C)  is qualified under the following by:

 417-6                           (i)  demonstrating to the satisfaction of

 417-7   the Texas Department of Insurance that the managed care

 417-8   organization has obtained insurance or other protection through an

 417-9   insurance company licensed under the Insurance Code to guaranty the

417-10   cost of health care benefits or services to be provided by that

417-11   managed care organization and to provide coverage if the managed

417-12   care organization fails to meet its obligation under the contract;

417-13   and

417-14                           (ii)  satisfying federal law and

417-15   regulations relating to minimum solvency requirements applicable to

417-16   entities or persons contracting under the state Medicaid program;

417-17   or

417-18               (2)  receives capitated payments from the commission

417-19   under this chapter.

417-20         Sec. 532.219.  MEDICAID PAYMENT RATES.  The commission may

417-21   allow rates for services for Medicaid eligible individuals to be

417-22   established for categories of Medicaid eligible individuals based

417-23   on health status and other risk factors, including age and sex.

417-24         Sec. 532.220.  COMMISSION IMPLEMENTED PLAN.  (a)  The

 418-1   commission shall implement the health care delivery system

 418-2   developed under this chapter in a geographical area for which the

 418-3   commission did not receive a letter of intent to form an

 418-4   intergovernmental initiative or that is not covered by a health

 418-5   care delivery plan agreement that has become final and binding by

 418-6   the date specified by the commission under Section 532.208.

 418-7         (b)  In performing its functions under this section, the

 418-8   commission is exempt from the Texas Health Maintenance Organization

 418-9   Act (Article 20A.01 et seq., Vernon's Texas Insurance Code) and

418-10   Articles 21.07-6 and 21.58A, Insurance Code.

418-11            (Sections 532.221-532.300 reserved for expansion

418-12                 SUBCHAPTER D.  MISCELLANEOUS PROVISIONS

418-13         Sec. 532.301.  CONFLICT WITH OTHER LAW.  To the extent

418-14   Subchapters A-C conflict with any other state law, Subchapters A-C

418-15   control.

418-16         Sec. 532.302.  EXPIRATION.  This chapter expires September 1,

418-17   2001.

418-18         (b)  Sections 1 and 2, Chapter 444, Acts of the 74th

418-19   Legislature, Regular Session, 1995, are repealed.

418-20         SECTION 14.18.  Section 531.009(f), Government Code, is

418-21   repealed to conform to Section 23(2), Chapter 693, Acts of the 74th

418-22   Legislature, Regular Session, 1995.

 419-1          ARTICLE 15.  CHANGES RELATING TO PUBLIC OFFICERS AND

 419-2                    EMPLOYEES TITLE, GOVERNMENT CODE

 419-3         SECTION 15.01.  Section 659.151(a), Government Code, is

 419-4   amended to more accurately reflect the source law from which it was

 419-5   derived, which was codified and repealed by Section 5.17, Chapter

 419-6   76, Acts of the 74th Legislature, Regular Session, 1995, to read as

 419-7   follows:

 419-8         (a)  The state policy committee may request the comptroller

 419-9   or state auditor to audit a participating charitable organization,

419-10   a campaign manager, or a local employee committee that the state

419-11   policy committee reasonably believes has misapplied contributions

419-12   under this subchapter.

419-13          ARTICLE 16.  CHANGES RELATING TO SUBTITLE C, GENERAL

419-14                    GOVERNMENT TITLE, GOVERNMENT CODE

419-15         SECTION 16.01.  (a) Subtitle C, Title 10, Government Code, is

419-16   amended to codify Article 6252-33, Revised Statutes, by adding

419-17   Chapter 2110 to read as follows:

419-18             CHAPTER 2110.  STATE AGENCY ADVISORY COMMITTEES

419-19         Sec. 2110.001.  DEFINITION.  In this chapter, "advisory

419-20   committee" means a committee, council, commission, task force, or

419-21   other entity in the executive branch of state government that:

419-22               (1)  is not a state agency;

419-23               (2)  is created by or under state law; and

419-24               (3)  has as its primary function advising a state

 420-1   agency.

 420-2         Sec. 2110.002.  COMPOSITION OF ADVISORY COMMITTEES.  (a)

 420-3   Notwithstanding other law, an advisory committee must be composed

 420-4   of a reasonable number of members not to exceed 24.  The

 420-5   composition of the committee must also provide a balanced

 420-6   representation between:

 420-7               (1)  industries or occupations regulated or directly

 420-8   affected by the advised state agency; and

 420-9               (2)  consumers of services provided either by the

420-10   advised state agency or by industries or occupations regulated by

420-11   the agency.

420-12         (b)  This section does not apply to an advisory committee if

420-13   the committee must be composed in a manner that is inconsistent

420-14   with this section under federal law or for federal funding

420-15   purposes.

420-16         Sec. 2110.003.  PRESIDING OFFICER.  (a)  An advisory

420-17   committee shall select from among its members a presiding officer,

420-18   unless a different procedure for selecting the presiding officer is

420-19   prescribed by other law.

420-20         (b)  The presiding officer shall preside over the advisory

420-21   committee and report to the advised state agency.

420-22         Sec. 2110.004.  REIMBURSEMENT OF MEMBERS' EXPENSES;

420-23   APPROPRIATIONS PROCESS.  (a)  Notwithstanding other law, the manner

420-24   and amount of reimbursement for expenses, including travel

 421-1   expenses, of members of an advisory committee may be prescribed

 421-2   only:

 421-3               (1)  by the General Appropriations Act; or

 421-4               (2)  through the budget execution process under Chapter

 421-5   317 if the advisory committee is created after it is practicable to

 421-6   address the existence of the committee in the General

 421-7   Appropriations Act.

 421-8         (b)  A state agency that is advised by an advisory committee

 421-9   must request authority to reimburse the expenses of members of the

421-10   committee through the appropriations or budget execution process,

421-11   as appropriate, if the agency determines that the expenses of

421-12   committee members should be reimbursed.  The request must:

421-13               (1)  identify the costs related to the advisory

421-14   committee's existence, including the cost of agency staff time

421-15   spent in support of the committee's activities;

421-16               (2)  state the reasons the advisory committee should

421-17   continue in existence; and

421-18               (3)  identify any other advisory committees created to

421-19   advise the agency that should be consolidated or abolished.

421-20         (c)  As part of the appropriations and budget execution

421-21   process, the governor and the Legislative Budget Board shall

421-22   jointly identify advisory committees that should be abolished.  The

421-23   comptroller may recommend to the governor and the Legislative

421-24   Budget Board that an advisory committee should be abolished.

 422-1         (d)  The General Appropriations Act may provide for

 422-2   reimbursing the expenses of members of certain advisory committees

 422-3   without providing for reimbursing the expenses of members of other

 422-4   advisory committees.

 422-5         (e)  This section does not apply to an advisory committee the

 422-6   services of which are determined by the governing board of a

 422-7   retirement system trust fund to be necessary for the performance of

 422-8   the governing board's fiduciary duties under the state

 422-9   constitution.

422-10         Sec. 2110.005.  AGENCY-DEVELOPED STATEMENT OF PURPOSE;

422-11   REPORTING REQUIREMENTS.  A state agency that is advised by an

422-12   advisory committee shall adopt rules that:

422-13               (1)  state the purpose of the committee; and

422-14               (2)  describe the task of the committee and the manner

422-15   in which the committee will report to the agency.

422-16         Sec. 2110.006.  AGENCY EVALUATION OF COMMITTEE COSTS AND

422-17   EFFECTIVENESS.  A state agency that is advised by an advisory

422-18   committee shall evaluate annually:

422-19               (1)  the committee's work;

422-20               (2)  the committee's usefulness; and

422-21               (3)  the costs related to the committee's existence,

422-22   including the cost of agency staff time spent in support of the

422-23   committee's activities.

422-24         Sec. 2110.007.  REPORT TO THE LEGISLATIVE BUDGET BOARD.  A

 423-1   state agency that is advised by an advisory committee shall report

 423-2   to the Legislative Budget Board the information developed in the

 423-3   evaluation required by Section 2110.006.   The agency shall file

 423-4   the report biennially in connection with the agency's request for

 423-5   appropriations.

 423-6         Sec. 2110.008.  DURATION OF ADVISORY COMMITTEES.  (a)  A

 423-7   state agency that is advised by an advisory committee shall

 423-8   establish by rule a date on which the committee will automatically

 423-9   be abolished.  The advisory committee may continue in existence

423-10   after that date only if the governing body of the agency

423-11   affirmatively votes to continue the committee in existence.

423-12         (b)  An advisory committee is automatically abolished on the

423-13   fourth anniversary of the date of its creation unless the governing

423-14   body of the agency establishes a different date under Subsection

423-15   (a).

423-16         (c)  This section does not apply to an advisory committee

423-17   that has a specific duration prescribed by statute.

423-18         (b)  Article 6252-33, Revised Statutes, is repealed.

423-19         SECTION 16.02.  (a) Subtitle C, Title 10, Government Code, is

423-20   amended to codify Chapter 307, Acts of the 73rd Legislature,

423-21   Regular Session, 1993 (Article 6252-34, Vernon's Texas Civil

423-22   Statutes), by adding Chapter 2111 to read as follows:

423-23   CHAPTER 2111.  STATE AGENCY REPORTING OF TECHNOLOGICAL INNOVATIONS

423-24         Sec. 2111.001.  DEFINITION.  In this chapter, "state agency":

 424-1               (1)  means an office, institution, or other agency

 424-2   that:

 424-3                     (A)  is in the executive branch of state

 424-4   government;

 424-5                     (B)  has authority that is not limited to a

 424-6   geographic portion of the state; and

 424-7                     (C)  was created by the constitution or a statute

 424-8   of this state; and

 424-9               (2)  does not include an institution of higher

424-10   education as defined by Section 61.003, Education Code.

424-11         Sec. 2111.002.  REPORTING.  (a)  Not later than January 31 of

424-12   each year, each state agency shall report to the attorney general

424-13   each technological innovation developed by the agency that:

424-14               (1)  has potential commercial application, is

424-15   proprietary, or could be protected under intellectual property

424-16   laws; and

424-17               (2)  was developed:

424-18                     (A)  during the preceding calendar year; or

424-19                     (B)  before the preceding calendar year but was

424-20   not previously reported to the attorney general.

424-21         (b)  The attorney general may prescribe a form for the

424-22   report.

424-23         (b)  Chapter 307, Acts of the 73rd Legislature, Regular

424-24   Session, 1993 (Article 6252-34, Vernon's Texas Civil Statutes), is

 425-1   repealed.

 425-2         SECTION 16.03.  (a)  Subtitle C, Title 10, Government Code,

 425-3   is amended to codify Article 6252-5g, Revised Statutes, by adding

 425-4   Chapter 2112 to read as follows:

 425-5       CHAPTER 2112.  UTILITY BILLING AUDITS BY STATE AGENCIES AND

 425-6                    INSTITUTIONS OF HIGHER EDUCATION

 425-7         Sec. 2112.001.  AUDIT REQUIREMENT.  (a)  Except as provided

 425-8   by Section 2112.003, every four years each state agency and

 425-9   institution of higher education shall perform an audit of its

425-10   electric, telephone, gas, and water utility billing during the

425-11   preceding four years or the maximum recovery period.

425-12         (b)  The agency or institution may contract with a private

425-13   consultant in the performance of the audit.

425-14         Sec. 2112.002.  FACTS DETERMINED BY AUDIT.  The audit must

425-15   provide information to allow the agency or institution to ensure

425-16   that it is properly classified and subscribed and that the amounts

425-17   paid for service are proper.

425-18         Sec. 2112.003.  DECIDING WHETHER AUDIT WILL BE

425-19   COST-EFFECTIVE.  (a)  Before the agency or institution conducts an

425-20   audit, it shall analyze the potential benefit of the audit.

425-21         (b)  The agency or institution is not required to perform the

425-22   audit if it determines that the savings and refunds provided by the

425-23   audit will not exceed its cost.

425-24         Sec. 2112.004.  RECOVERING REFUNDS; PAYING FOR AUDIT OUT OF

 426-1   REFUNDS.  (a)  The audit must be funded from refunds received as a

 426-2   result of the audit.

 426-3         (b)  The agency or institution shall take appropriate action

 426-4   to recover any refund due.

 426-5         (c)  The attorney general may assist in recovering a refund.

 426-6         (d)  The amount of any refunds received shall be deposited in

 426-7   the state treasury to the credit of the general revenue fund.  The

 426-8   costs of the audit shall be paid from amounts appropriated from

 426-9   those funds for that purpose.

426-10         Sec. 2112.005.  REPORTS.  (a) During January and June of each

426-11   year during which an audit is being conducted, the agency or

426-12   institution shall submit to the Legislative Budget Board and

426-13   comptroller a report on the status of the audit. The report must

426-14   include a summary of the costs of the audit, current audit

426-15   activity, a schedule of future activity, audit recommendations and

426-16   results, pending refunds, and recovered refunds.

426-17         (b)  Not later than the 30th day after the date an audit is

426-18   completed, the agency or institution shall submit to the

426-19   Legislative Budget Board and comptroller a report on:

426-20               (1)  the savings resulting from the audit, including

426-21   their source; and

426-22               (2)  the costs of the audit.

426-23         (b)  Article 6252-5g, Revised Statutes, is repealed.

 427-1          ARTICLE 17.  CHANGES RELATING TO SUBTITLE D, GENERAL

 427-2                    GOVERNMENT TITLE, GOVERNMENT CODE

 427-3         SECTION 17.01.  (a)  Subchapter C, Chapter 2155, Government

 427-4   Code, is amended to conform to Section 1, Chapter 420, Acts of the

 427-5   74th Legislature, Regular Session, 1995, by adding Section 2155.144

 427-6   to read as follows:

 427-7         Sec. 2155.144.  HEALTH CARE PURCHASING.  (a)  A state agency

 427-8   shall acquire goods and services used in support of the agency's

 427-9   health care programs by the method that provides the greatest

427-10   volume discount for the goods or services, including group

427-11   purchasing programs, state agency purchasing consortiums, or

427-12   competitive sealed proposals.

427-13         (b)  A state agency may contract with a medical and dental

427-14   unit to have the unit perform all or part of the purchasing

427-15   functions of the agency under this section or to participate in a

427-16   state agency purchasing consortium or group purchasing program with

427-17   the medical and dental unit.

427-18         (c)  If a state agency determines that it should consider

427-19   factors in addition to volume discounts in acquiring a particular

427-20   good or service, the agency may acquire the good or service by the

427-21   most cost-effective method of acquisition available, including

427-22   group purchasing programs, state agency purchasing consortiums, or

427-23   competitive sealed proposals.

427-24         (d)  A state agency shall provide appropriate information to

 428-1   the commission concerning acquisitions made by the agency under

 428-2   this section, but the commission's authority under this chapter and

 428-3   Chapters 2156, 2157, and 2158 does not extend to the acquisition of

 428-4   goods and services made under this section.

 428-5         (e)  The central administration of The University of Texas

 428-6   System shall develop methods for sharing information concerning

 428-7   acquisitions made under this section, including methods for sharing

 428-8   the information electronically.  Electronic sharing may include

 428-9   posting information on acquisitions on the comptroller's state

428-10   government electronic bulletin board.

428-11         (f)  A state agency shall collect and maintain information as

428-12   specified by the central administration of The University of Texas

428-13   System relating to the agency's acquisitions under this section.

428-14   The central administration of The University of Texas System is

428-15   entitled to access to all information collected and maintained

428-16   under this section.

428-17         (g)  In this section:

428-18               (1)  "Goods" means material, supplies, equipment, or

428-19   other tangible items.

428-20               (2)  "Group purchasing program" means a program

428-21   administered by a business entity that offers discount prices on

428-22   goods and services to participants in the program.

428-23               (3)  "Health care program" means a program or activity

428-24   administered or funded by a state agency to provide health care

 429-1   services, research, education, or goods.

 429-2               (4)  "Medical and dental unit" has the meaning assigned

 429-3   by Section 61.003, Education Code.

 429-4               (5)  "State agency purchasing consortium" means a group

 429-5   of three or more state agencies acting under a written agreement to

 429-6   receive discount prices from vendors based on volume purchases of

 429-7   goods and services.

 429-8         (h)  This section does not apply to the state Medicaid

 429-9   program.

429-10         (b)  Section 1, Chapter 420, Acts of the 74th Legislature,

429-11   Regular Session, 1995, is repealed.

429-12         SECTION 17.02.  (a)  Subchapter A, Chapter 2158, Government

429-13   Code, is amended to conform to Section 15, Chapter 11, Acts of the

429-14   74th Legislature, Regular Session, 1995, to read as follows:

429-15              SUBCHAPTER A.  PURCHASE OF PASSENGER VEHICLES

429-16         Sec. 2158.001.  DEFINITION.  In this subchapter,

429-17   "conventional gasoline" has the meaning assigned by Section

429-18   382.131, Health and Safety Code.

429-19         Sec. 2158.002.  APPLICABILITY.  This subchapter does not

429-20   apply to a vehicle acquired by the Texas Transportation Institute

429-21   for the purpose of performing crash tests and related research.

429-22         Sec. 2158.003 [2158.001].  WHEELBASE AND HORSEPOWER

429-23   RESTRICTIONS.  (a)  A state agency may not purchase or lease a

429-24   vehicle designed or used primarily for the transportation of

 430-1   individuals, including a station wagon, that has a wheelbase longer

 430-2   than 113 inches or that has more than 160 SAE net horsepower.  The

 430-3   vehicle may have a wheelbase of up to 116 inches or SAE net

 430-4   horsepower of up to 280 if the vehicle will be converted so that it

 430-5   is capable of using compressed natural gas, liquefied natural gas,

 430-6   liquefied petroleum gas, methanol or methanol/gasoline blends of 85

 430-7   percent or greater, ethanol or ethanol/gasoline blends of 85

 430-8   percent or greater, or electricity [or another alternative fuel

 430-9   that results in comparably lower emissions of oxides of nitrogen,

430-10   volatile organic compounds, carbon monoxide, or particulates].

430-11   This exception to the wheelbase and horsepower limitations applies

430-12   to a state agency regardless of the size of the agency's vehicle

430-13   fleet.

430-14         (b)  The wheelbase and horsepower limitations prescribed by

430-15   Subsection (a) do not apply to the purchase or lease of:

430-16               (1)  a vehicle to be used primarily for criminal law

430-17   enforcement;

430-18               (2)  a bus, motorcycle, pickup, van, truck, three-wheel

430-19   vehicle, or tractor; or

430-20               (3)  an ambulance.

430-21         Sec. 2158.004 [2158.002].  VEHICLES USING ALTERNATIVE FUELS.

430-22   (a)  A state agency operating a fleet of more than 15 vehicles,

430-23   excluding law enforcement and emergency vehicles, may not purchase

430-24   or lease a motor vehicle unless that vehicle is capable of using

 431-1   compressed natural gas, liquefied natural gas, liquefied petroleum

 431-2   gas, methanol or methanol/gasoline blends of 85 percent or greater,

 431-3   ethanol or ethanol/gasoline blends of 85 percent or greater, or

 431-4   electricity [or other alternative fuels that result in comparably

 431-5   lower emissions of oxides of nitrogen, volatile organic compounds,

 431-6   carbon monoxide, particulates, or a combination of those

 431-7   substances].

 431-8         (b)  A state agency may obtain equipment or refueling

 431-9   facilities necessary to operate vehicles using compressed natural

431-10   gas, liquefied natural gas, liquefied petroleum gas, methanol or

431-11   methanol/gasoline blends of 85 percent or greater, ethanol or

431-12   ethanol/gasoline blends of 85 percent or greater, or electricity

431-13   [or other alternative fuels]:

431-14               (1)  by purchase or lease as authorized by law;

431-15               (2)  by gift or loan of the equipment or facilities; or

431-16               (3)  by gift or loan of the equipment or facilities or

431-17   by another arrangement under a service contract for the supply of

431-18   compressed natural gas, liquefied natural gas, liquefied petroleum

431-19   gas, methanol or methanol/gasoline blends of 85 percent or greater,

431-20   ethanol or ethanol/gasoline blends of 85 percent or greater, or

431-21   electricity [or other alternative fuels].

431-22         (c)  If the equipment or facilities are donated, loaned, or

431-23   provided through another arrangement with the supplier of

431-24   compressed natural gas, liquefied natural gas, liquefied petroleum

 432-1   gas, methanol or methanol/gasoline blends of 85 percent or greater,

 432-2   ethanol or ethanol/gasoline blends of 85 percent or greater, or

 432-3   electricity [or other alternative fuels], the supplier is entitled

 432-4   to recoup its actual cost of donating, loaning, or providing the

 432-5   equipment or facilities through its fuel charges under the supply

 432-6   contract.

 432-7         (d)  The commission may waive the requirements of this

 432-8   section for a state agency on receipt of certification supported by

 432-9   evidence acceptable to the commission that:

432-10               (1)  the agency's vehicles will be operating primarily

432-11   in an area in which neither the agency nor a supplier has or can

432-12   reasonably be expected to establish adequate [a central] refueling

432-13   [station] for compressed natural gas, liquefied natural gas,

432-14   liquefied petroleum gas, methanol or methanol/gasoline blends of 85

432-15   percent or greater, ethanol or ethanol/gasoline blends of 85

432-16   percent or greater, or electricity [or other alternative fuels]; or

432-17               (2)  the agency is unable to obtain equipment or

432-18   refueling facilities necessary to operate vehicles using compressed

432-19   natural gas, liquefied natural gas, liquefied petroleum gas,

432-20   methanol or methanol/gasoline blends of 85 percent or greater,

432-21   ethanol or ethanol/gasoline blends of 85 percent or greater, or

432-22   electricity [or other alternative fuels] at a projected cost that

432-23   is reasonably expected to be no greater than the net costs of

432-24   continued use of conventional [traditional] gasoline or diesel

 433-1   fuels, measured over the expected useful life of the equipment or

 433-2   facilities supplied.

 433-3         Sec. 2158.005 [2158.003].  PERCENTAGE REQUIREMENTS FOR

 433-4   VEHICLES CAPABLE OF USING ALTERNATIVE FUELS; PROGRAM REVIEW.

 433-5   (a)  Not later than September 1, 1996, a state agency that operates

 433-6   a fleet of more than 15 motor vehicles, excluding law enforcement

 433-7   and emergency vehicles, shall have a fleet consisting of vehicles

 433-8   of which at least 50 percent are capable of using compressed

 433-9   natural gas, liquefied natural gas, liquefied petroleum gas,

433-10   methanol or methanol/gasoline blends of 85 percent or greater,

433-11   ethanol or ethanol/gasoline blends of 85 percent or greater, or

433-12   electricity [or other alternative fuels].

433-13         (b)  The Texas Natural Resource Conservation Commission shall

433-14   review the [alternative fuel use] program established by this

433-15   subchapter by December 31, 1996.  If the Texas Natural Resource

433-16   Conservation Commission determines that the program has been

433-17   effective in reducing total annual emissions from motor vehicles in

433-18   the area, then after August 31, 1998, a state agency operating a

433-19   fleet of more than 15 motor vehicles shall have a fleet consisting

433-20   of vehicles of which at least 90 percent are capable of using

433-21   compressed natural gas, liquefied natural gas, liquefied petroleum

433-22   gas, methanol or methanol/gasoline blends of 85 percent or greater,

433-23   ethanol or ethanol/gasoline blends of 85 percent or greater, or

433-24   electricity [or other alternative fuels].

 434-1         (c)  The commission shall support the Texas Natural Resource

 434-2   Conservation Commission in collecting reasonable information needed

 434-3   to determine the air quality benefits from use of compressed

 434-4   natural gas, liquefied natural gas, liquefied petroleum gas,

 434-5   methanol or methanol/gasoline blends of 85 percent or greater,

 434-6   ethanol or ethanol/gasoline blends of 85 percent or greater, or

 434-7   electricity [alternative fuels] at affected agencies.

 434-8         (d)  A state agency in its annual financial report to the

 434-9   legislature shall report its progress in achieving the percentage

434-10   requirements of this section by itemizing:

434-11               (1)  purchases, leases, and conversions of motor

434-12   vehicles; and

434-13               (2)  usage of compressed natural gas, liquefied natural

434-14   gas, liquefied petroleum gas, methanol or methanol/gasoline blends

434-15   of 85 percent or greater, ethanol or ethanol/gasoline blends of 85

434-16   percent or greater, or electricity [or other alternative fuels].

434-17         (e)  A state agency may meet the percentage requirements of

434-18   this section through purchase of new vehicles or the conversion of

434-19   existing vehicles, in accordance with federal and state

434-20   requirements and applicable safety laws[, to use the alternative

434-21   fuels].

434-22         (f)  The commission may reduce a percentage specified by this

434-23   section or waive the requirements of this section for a state

434-24   agency on receipt of certification supported by evidence acceptable

 435-1   to the commission that:

 435-2               (1)  the agency's vehicles will be operating primarily

 435-3   in an area in which neither the agency nor a supplier has or can

 435-4   reasonably be expected to establish adequate [a central] refueling

 435-5   [station] for compressed natural gas, liquefied natural gas,

 435-6   liquefied petroleum gas, methanol or methanol/gasoline blends of 85

 435-7   percent or greater, ethanol or ethanol/gasoline blends of 85

 435-8   percent or greater, or electricity [or other alternative fuels]; or

 435-9               (2)  the agency is unable to obtain equipment or

435-10   refueling facilities necessary to operate vehicles using compressed

435-11   natural gas, liquefied natural gas, liquefied petroleum gas,

435-12   methanol or methanol/gasoline blends of 85 percent or greater,

435-13   ethanol or ethanol/gasoline blends of 85 percent or greater, or

435-14   electricity [or other alternative fuels] at a projected cost that

435-15   is reasonably expected to be no greater than the net costs of

435-16   continued use of conventional [traditional] gasoline or diesel

435-17   fuels, measured over the expected useful life of the equipment or

435-18   facilities supplied.

435-19         Sec. 2158.006 [2158.004].  DETERMINATION OF ALTERNATIVE FUELS

435-20   PROGRAM PARAMETERS.  In developing the use of compressed natural

435-21   gas, liquefied natural gas, liquefied petroleum gas, methanol or

435-22   methanol/gasoline blends of 85 percent or greater, ethanol or

435-23   ethanol/gasoline blends of 85 percent or greater, or electricity

435-24   [or other alternative fuels use program], the commission should

 436-1   work with state agency fleet operators, vehicle manufacturers and

 436-2   converters, fuel distributors, and others to determine the vehicles

 436-3   to be covered, taking into consideration:

 436-4               (1)  range;

 436-5               (2)  specialty uses;

 436-6               (3)  fuel availability;

 436-7               (4)  vehicle manufacturing and conversion capability;

 436-8               (5)  safety;

 436-9               (6)  resale values; and

436-10               (7)  other relevant factors.

436-11         Sec. 2158.007 [2158.005].  COMPLIANCE WITH APPLICABLE SAFETY

436-12   STANDARDS.  In purchasing, leasing, maintaining, or converting

436-13   vehicles for use with compressed natural gas, liquefied natural

436-14   gas, liquefied petroleum gas, methanol or methanol/gasoline blends

436-15   of 85 percent or greater, ethanol or ethanol/gasoline blends of 85

436-16   percent or greater, or electricity [or other alternative fuels],

436-17   the commission shall comply with all applicable safety standards

436-18   adopted by the United States Department of Transportation and the

436-19   Railroad Commission of Texas.

436-20         Sec. 2158.008 [2158.006].  WHEN VEHICLE CONSIDERED CAPABLE OF

436-21   USING ALTERNATIVE FUELS.  In this subchapter, a vehicle is

436-22   considered to be capable of using compressed natural gas, liquefied

436-23   natural gas, liquefied petroleum gas, methanol or methanol/gasoline

436-24   blends of 85 percent or greater, ethanol or ethanol/gasoline blends

 437-1   of 85 percent or greater, or electricity [or other alternative

 437-2   fuels] if the vehicle is capable of using those fuels either in its

 437-3   original equipment engine or in an engine that has been converted

 437-4   to use those fuels.

 437-5         (b)  Section 15, Chapter 11, Acts of the 74th Legislature,

 437-6   Regular Session, 1995, is repealed.

 437-7         SECTION 17.03.  (a)  Section 2161.061, Government Code, is

 437-8   amended to conform to Section 11, Chapter 746, Acts of the 74th

 437-9   Legislature, Regular Session, 1995, to read as follows:

437-10         Sec. 2161.061.  COMMISSION CERTIFICATION OF HISTORICALLY

437-11   UNDERUTILIZED BUSINESSES; MUNICIPAL CERTIFICATION.  (a)  The

437-12   commission shall certify historically underutilized businesses.

437-13         (b)  As part [one] of its certification procedures, the

437-14   commission may[:]

437-15               [(1)] approve another certification [a municipal]

437-16   program that certifies historically underutilized businesses under

437-17   substantially the same definition used by Section 2161.001[; and]

437-18               [(2)  certify a business certified under the municipal

437-19   program as a historically underutilized business under this

437-20   chapter].

437-21         (c) A municipality, in certifying historically underutilized

437-22   businesses, may adopt the certification program of the commission,

437-23   of the federal Small Business Administration, or of another

437-24   political subdivision or other governmental entity.

 438-1         (b)  Section 11, Chapter 746, Acts of the 74th Legislature,

 438-2   Regular Session, 1995, is repealed.

 438-3         SECTION 17.04.  (a)  Section 2165.251, Government Code, is

 438-4   amended to conform to Section 1, Chapter 168, Acts of the 74th

 438-5   Legislature, Regular Session, 1995, to read as follows:

 438-6         Sec. 2165.251.  BUILDINGS ALLOCATED TO LEGISLATIVE USE [OLD

 438-7   STATE BOARD OF INSURANCE BUILDING].  (a)  The space in the old

 438-8   State Board of Insurance State Office Building, located on San

 438-9   Jacinto Street between 11th and 12th streets in Austin, the Sam

438-10   Houston Building, and the John H.  Reagan Building are [is]

438-11   allocated to the legislature and legislative agencies for their

438-12   use.

438-13         (b)  On written notice signed by both presiding officers of

438-14   the legislature and delivered to the commission, the following

438-15   buildings are allocated to the legislature and legislative agencies

438-16   to the extent described in the notice: Lorenzo de Zavala State

438-17   Library and Archives Building, Stephen F. Austin Building, Lyndon

438-18   B. Johnson Building, and William B. Travis Building.  On receipt of

438-19   notice under this subsection, the commission shall begin

438-20   immediately to undertake the relocation of agencies occupying space

438-21   in buildings allocated to legislative use.  The space must be made

438-22   available for legislative use on a date determined by the presiding

438-23   officers of the legislature.

438-24         (c)  The presiding officers of each house of the legislature

 439-1   shall jointly allocate space within each [the] building.

 439-2         (b)  Section 1, Chapter 168, Acts of the 74th Legislature,

 439-3   Regular Session, 1995, is repealed.

 439-4         SECTION 17.05.  (a)  Section 2165.256, Government Code, is

 439-5   amended to conform to Section 1, Chapter 264, Acts of the 74th

 439-6   Legislature, Regular Session, 1995, to read as follows:

 439-7         Sec. 2165.256.  STATE CEMETERY AND OTHER BURIAL GROUNDS.  (a)

 439-8   The commission shall:

 439-9               (1)  control, manage, and beautify the grounds of the

439-10   State Cemetery;

439-11               (2)  preserve the grounds of the cemetery and related

439-12   property; and

439-13               (3)  protect the property from depreciation and injury.

439-14         (b)  In addition to the property described as Lot No. 5,

439-15   Division B, City of Austin, Travis County, Texas, the following

439-16   property is dedicated for cemetery purposes as part of the State

439-17   Cemetery:

439-18   BEING APPROXIMATELY 50.00 ACRES OF LAND OUT OF AND A PORTION OF THE

439-19   FOLLOWING DESCRIBED TRACT OF LAND.  75.688 RECORD ACRES OF LAND OUT

439-20   OF THE GEORGE W. SPEAR SURVEY IN THE CITY OF AUSTIN, TRAVIS COUNTY,

439-21   TEXAS, DESCRIBED BY DEED TO THE STATE OF TEXAS AS RECORDED IN

439-22   VOLUME 76, PAGE 225, OF THE DEED RECORDS OF TRAVIS COUNTY, TEXAS,

439-23   SAID 75.688 ACRE TRACT OF LAND BEING MORE PARTICULARLY DESCRIBED AS

439-24   FOLLOWS:

 440-1               (1)  Bounded on the west by Bull Creek Road.

 440-2               (2)  Bounded on the north by the following subdivisions

 440-3   in the City of Austin, Texas,

 440-4                     (A)  Shoal Village Section 2, as recorded in Plat

 440-5   Book 5, Page 150 of the Plat Records of Travis County, Texas,

 440-6                     (B)  Shoal Village Section 3, as recorded in Plat

 440-7   Book 6, Page 71, of the Plat Records of Travis County, Texas,

 440-8                     (C)  Shoal Village Section 5, as recorded in Plat

 440-9   Book 6, Page 72, of the Plat Records of Travis County, Texas,

440-10                     (D)  Shoal Village Section 6, as recorded in Plat

440-11   Book 7, Page 7, of the Plat Records of Travis County, Texas,

440-12                     (E)  Shoal Village Section 7, as recorded in Plat

440-13   Book 14, Page 80 of the Plat Records of Travis County, Texas,

440-14                     (F)  Oak Haven Section 3, as recorded in Plat

440-15   Book 11, Page 40, of the Plat Records of Travis County, Texas.

440-16               (3)  Bounded on the east by the centerline of Shoal

440-17   Creek,

440-18               (4)  Bounded along the south by Ridgelea, a subdivision

440-19   of record in the City of Austin, Texas, as recorded in Plat Book 4,

440-20   Page 258 of the Plat Records of Travis County, Texas.

440-21         (c) [(b)]  The commission shall procure and erect at the head

440-22   of each grave that does not have a permanent monument a marble

440-23   obelisk on which shall be engraved the name of the dead buried in

440-24   the grave.

 441-1         (d) [(c)]  Persons eligible for burial in the State Cemetery

 441-2   are:

 441-3               (1)  a former member of the legislature or a member who

 441-4   dies in office;

 441-5               (2)  a former elective state official or an elective

 441-6   state official who dies in office;

 441-7               (3)  a former state official or a state official who

 441-8   dies in office who has been appointed by the governor and confirmed

 441-9   by the senate and who served at least 12 years in the office to

441-10   which appointed;

441-11               (4)  a person specified by a governor's proclamation,

441-12   subject to review and approval by the Texas Historical Commission

441-13   under Subsection (e); [and]

441-14               (5)  a person specified by a concurrent resolution

441-15   adopted by the legislature, subject to review and approval by the

441-16   Texas Historical Commission under Subsection (e); and

441-17               (6)  a person specified by order of the Texas

441-18   Historical Commission under Subsection (e).

441-19         (e)  The Texas Historical Commission shall review

441-20   proclamations under Subsection (d)(4) and resolutions under

441-21   Subsection (d)(5).  A person specified in a proclamation or

441-22   resolution is eligible for burial in the State Cemetery only if the

441-23   historical commission, following its review, finds that the person

441-24   specified made a significant contribution to Texas history and only

 442-1   if based on that finding the historical commission approves the

 442-2   person's burial in the cemetery.  The historical commission may by

 442-3   order authorize a burial under Subsection (d)(6) only during a

 442-4   period in which the legislature is not convened in regular or

 442-5   special session and only if the historical commission finds that

 442-6   the person made a significant contribution to Texas history.

 442-7         (f) [(d)]  Grave spaces are allotted for:

 442-8               (1)  a person eligible for burial under Subsection (d)

 442-9   [(c)];

442-10               (2)  the person's spouse; and

442-11               (3)  the person's unmarried child, if the child, on

442-12   September 1, 1979, or at the time of the child's death, is a

442-13   resident in a state eleemosynary institution.

442-14         (g) [(e)]  A child eligible for burial under Subsection (f)

442-15   [(d)](3) must be buried alongside the child's parent or parents.

442-16         (h) [(f)]  A grave plot may not be longer than eight feet nor

442-17   wider than three [five] feet times the number of persons of one

442-18   family authorized to be buried alongside one another.

442-19         (i) [(g)]  A monument or statue may not be erected that is

442-20   taller than a monument or statue that existed in the State Cemetery

442-21   on September 1, 1979.

442-22         (j) [(h)]  A tree, shrub, or flower may not be planted in the

442-23   State Cemetery without the commission's written permission.

442-24         (k) [(i)]  A person may be buried on state property only in

 443-1   the State Cemetery or in a cemetery maintained by a state

 443-2   eleemosynary institution.  Other state property, including the

 443-3   State Capitol grounds, may not be used as a burial site.

 443-4         (l) [(j)]  The commission shall allot and locate the

 443-5   necessary number of grave plots authorized on application made by:

 443-6               (1)  the person primarily eligible for burial under

 443-7   Subsection (d) [(c)];

 443-8               (2)  the person's spouse; or

 443-9               (3)  the executor or administrator of the person's

443-10   estate.

443-11         (b)  Section 1, Chapter 264, Acts of the 74th Legislature,

443-12   Regular Session, 1995, is repealed.

443-13         SECTION 17.06.  (a)  Section 2166.151(a), Government Code, is

443-14   amended to conform to Section 14, Chapter 108, Acts of the 74th

443-15   Legislature, Regular Session, 1995, to read as follows:

443-16         (a)  A using agency requesting a project shall prepare and

443-17   send to the commission a general description of the project. The

443-18   description must specify whether the using agency requests that a

443-19   portion of the cost of the project be used for fine arts projects

443-20   at or near the site of the project as provided by Section 2166.552.

443-21         (b)  Section 2166.552, Government Code, is amended to conform

443-22   to Section 15, Chapter 108, Acts of the 74th Legislature, Regular

443-23   Session, 1995, to read as follows:

443-24         Sec. 2166.552.  FINE ARTS PROJECTS.  (a)  A using agency that

 444-1   requests a project analysis by the commission for a building

 444-2   construction project that is estimated to cost more than $250,000

 444-3   may specify in the general description of the project that up to

 444-4   one percent of the amount of the original project cost estimate be

 444-5   spent for fine arts projects at or near the site of the project.

 444-6   The using agency may consult the Texas Commission on the Arts in

 444-7   preparing the general description of the project.

 444-8         (b)  The using agency, the commission, and the Texas

 444-9   Commission on the Arts may conduct a public hearing to take

444-10   testimony from interested persons regarding the costs and benefits

444-11   of using a portion of the cost of the project for fine arts

444-12   projects.

444-13         (c)  The commission shall initiate negotiations for and enter

444-14   into a memorandum of understanding with the Texas Commission on the

444-15   Arts to establish guidelines for implementing this section.  The

444-16   memorandum of understanding must be adopted by the governing bodies

444-17   of the commission and the Texas Commission on the Arts.  After a

444-18   memorandum of understanding is adopted, the Texas Commission on the

444-19   Arts shall publish the memorandum of understanding in the Texas

444-20   Register.

444-21         (d)  If the legislature authorizes and appropriates money for

444-22   a fine arts project, the commission shall cooperate with the Texas

444-23   Commission on the Arts and consult it for advice in determining how

444-24   to use the money appropriated for the fine arts project.

 445-1         (e) [(c)]  In selecting a fine arts project, emphasis should

 445-2   be placed, whenever feasible, on works by living Texas artists.

 445-3   Consideration shall be given to artists of all ethnic origins.

 445-4         (f) [(d)]  This section does not limit, restrict, or prohibit

 445-5   the commission from including expenditures for fine arts in its

 445-6   original project cost estimate.

 445-7         (g) [(e)]  In this section, "fine arts project" includes

 445-8   murals, fountains, mosaics, and other aesthetic improvements.

 445-9         (c)  Sections 14 and 15, Chapter 108, Acts of the 74th

445-10   Legislature, Regular Session, 1995, are repealed.

445-11         SECTION 17.07.  Section 2166.204, Government Code, is amended

445-12   to correct a reference to read as follows:

445-13         Sec. 2166.204.  USING AGENCY RECOMMENDATIONS.  The commission

445-14   shall request that the using agency make recommendations regarding

445-15   private design professionals [project designers].  The commission

445-16   shall consider the recommendations in selecting a private design

445-17   professional to be retained for a particular project.

445-18         SECTION 17.08.  (a)  Section 2166.451, Government Code, is

445-19   amended to conform to Section 23, Chapter 109, Acts of the 74th

445-20   Legislature, Regular Session, 1995, to read as follows:

445-21         Sec. 2166.451.  ACQUISITION OF HISTORIC STRUCTURES.  (a)  In

445-22   acquiring real property, each using agency shall first consider a

445-23   building that is designated as a historic structure under Section

445-24   442.001 or a building that has been designated a landmark by the

 446-1   local governing authority if:

 446-2               (1)  the building meets requirements and

 446-3   specifications; and

 446-4               (2)  the cost is not substantially higher than that of

 446-5   other available structures that meet requirements and

 446-6   specifications.

 446-7         (b)  [When considering the construction of a new state

 446-8   building, a using agency shall notify the Texas Historical

 446-9   Commission and request from it a list of historic structures in the

446-10   proposed construction area that are suitable and available for

446-11   state acquisition.]

446-12         [(c)  If the using agency decides to proceed with new

446-13   construction, the agency shall forward to the commission for

446-14   inclusion in the project analysis for the new construction:]

446-15               [(1)  the date it notified the Texas Historical

446-16   Commission of the proposed construction;]

446-17               [(2)  the date of the Texas Historical Commission's

446-18   response;]

446-19               [(3)  a copy of the list of historic structures

446-20   furnished by the Texas Historical Commission; and]

446-21               [(4)  a statement of the reasons for the rejection of

446-22   each of the historic structures on the list.]

446-23         [(d)]  If the using agency rejects acquisition of a historic

446-24   structure because of the structure's cost, the agency shall forward

 447-1   to the commission for inclusion in the project analysis for the new

 447-2   construction or acquisition a comparison of the cost of the new

 447-3   construction or acquisition with the cost of the purchase and

 447-4   rehabilitation of the historic structure.

 447-5         (c) [(e)]  In determining the feasibility of acquiring a

 447-6   historic structure, the using agency shall evaluate the possibility

 447-7   of providing the space needed by the agency by combining new

 447-8   construction with acquisition of the historic structure.

 447-9         (d) [(f)]  On request of the using agency, the commission

447-10   shall assist the agency in evaluating the feasibility of acquiring

447-11   a historic structure and in preparing the information required by

447-12   Subsection (b) [Subsections (c) and (d)].

447-13         (e) [(g)]  The commission shall comply with Subsections

447-14   (a)-(c)[(e)] for a:

447-15               (1)  project for which it is the using agency; or

447-16               (2)  multiagency state office building for which it

447-17   serves as the coordinating authority.

447-18         (b)  Section 2167.003(a), Government Code, is amended to

447-19   conform to Section 24, Chapter 109, Acts of the 74th Legislature,

447-20   Regular Session, 1995, to read as follows:

447-21         (a)  In leasing space for the use of a state agency, the

447-22   commission shall give first consideration to a building that is

447-23   designated as a historic structure under Section 442.001 or to a

447-24   building that has been designated a landmark by a local governing

 448-1   authority, if:

 448-2               (1)  the building meets requirements and

 448-3   specifications; and

 448-4               (2)  the cost is not substantially higher than the cost

 448-5   for other available buildings that meet requirements and

 448-6   specifications.

 448-7         (c)  Sections 23 and 24, Chapter 109, Acts of the 74th

 448-8   Legislature, Regular Session, 1995, are repealed.

 448-9         SECTION 17.09.  (a)  Section 2167.004(a), Government Code, is

448-10   amended to conform to Section 9.10 of Chapter 655 and to Section 10

448-11   of Chapter 885, Acts of the 74th Legislature, Regular Session,

448-12   1995, to read as follows:

448-13         (a)  Notwithstanding any other provision of this chapter or

448-14   of Subchapter C, Chapter 2165, the [The] commission may not lease

448-15   office space to serve the needs of any [a single] health and human

448-16   services agency unless the Health and Human Services Commission has

448-17   approved the office space for the agency [provides the commission

448-18   with a reason for not sharing the office space with one or more

448-19   other health and human services agencies].

448-20         (b)  Section 9.10 of Chapter 655 and Section 10 of Chapter

448-21   885, Acts of the 74th Legislature, Regular Session, 1995, are

448-22   repealed.

448-23         SECTION 17.10.  (a)  Section 2167.005, Government Code, is

448-24   amended to conform to Section 2, Chapter 823, Acts of the 74th

 449-1   Legislature, Regular Session, 1995, to read as follows:

 449-2         Sec. 2167.005.  DELEGATION OF AUTHORITY TO INSTITUTIONS OF

 449-3   HIGHER EDUCATION.  (a)  The commission may delegate to an

 449-4   institution of higher education the authority to enter into lease

 449-5   contracts for space for which payments are not made from money

 449-6   appropriated from the general revenue fund.

 449-7         (b)  Any reports on the lease contracts made by an

 449-8   institution of higher education under this delegated authority

 449-9   shall be required annually.

449-10         (b)  Section 2171.101(a), Government Code, is amended to

449-11   conform to Section 3, Chapter 823, Acts of the 74th Legislature,

449-12   Regular Session, 1995, to read as follows:

449-13         (a)  The office of vehicle fleet management shall establish a

449-14   vehicle reporting system to assist each state agency in the

449-15   management of its vehicle fleet. A state agency shall be required

449-16   to submit the reports not more often than semiannually.

449-17         (c)  Sections 2 and 3, Chapter 823, Acts of the 74th

449-18   Legislature, Regular Session, 1995, are repealed.

449-19         SECTION 17.11.  (a)  Section 2171.052, Government Code, is

449-20   amended to conform to Section 1, Chapter 976, Acts of the 74th

449-21   Legislature, Regular Session, 1995, to read as follows:

449-22         Sec. 2171.052.  CONTRACTS WITH PROVIDERS OF TRAVEL SERVICES.

449-23   (a)  The central travel office shall [may] negotiate contracts with

449-24   private travel agents, with travel and transportation providers,

 450-1   and with credit card companies that provide travel services and

 450-2   other benefits to the state.

 450-3         (b)  The commission shall make contracts with travel agents

 450-4   that meet certain reasonable requirements prescribed by the central

 450-5   travel office, allowing contracts to provide travel services by as

 450-6   many private travel agents as possible with preference given to

 450-7   resident entities of this state [more than one provider of travel

 450-8   agency services].

 450-9         (c)  To the greatest extent possible, the commission shall

450-10   use electronic means to solicit and receive bids under this

450-11   section.

450-12         (b)  Section 2171.055(a), Government Code, is amended to

450-13   conform to Section 1, Chapter 976, Acts of the 74th Legislature,

450-14   Regular Session, 1995, to read as follows:

450-15         (a)  State agencies in the executive branch of state

450-16   government shall participate under commission rules in the

450-17   commission's contracts for travel services, provided that all

450-18   travel agents approved by the commission are permitted to contract

450-19   with the state and provide travel services to all state agencies.

450-20         (c)  Section 1, Chapter 976, Acts of the 74th Legislature,

450-21   Regular Session, 1995, is repealed.

450-22         SECTION 17.12.  (a)  Section 2171.103(b), Government Code, is

450-23   amended to conform to Section 48, Chapter 260, Acts of the 74th

450-24   Legislature, Regular Session, 1995, to read as follows:

 451-1         (b)  The office may:

 451-2               (1)  establish centralized refueling stations

 451-3   throughout the state;

 451-4               (2)  operate regional conversion and repair facilities;

 451-5   and

 451-6               (3)  provide all services and support necessary to

 451-7   expedite the use of compressed natural gas or other alternative

 451-8   fuels by state agencies as required by Subchapter A, Chapter 2158[,

 451-9   and by school districts as required by Section 2155.201].

451-10         (b)  Section 2155.201, Government Code, is repealed to

451-11   conform to Section 58(d), Chapter 260, Acts of the 74th

451-12   Legislature, Regular Session, 1995.

451-13         (c)  Sections 48 and 58(d), Chapter 260, Acts of the 74th

451-14   Legislature, Regular Session, 1995, are repealed.

451-15         SECTION 17.13.  Section 533.002, Health and Safety Code, is

451-16   amended to conform to Section 68(a)(3), Chapter 684, Acts of the

451-17   73rd Legislature, Regular Session, 1993, to read as follows:

451-18         Sec. 533.002.  COMPETITIVE REVIEW REQUIREMENT.  [(a)]  The

451-19   department shall establish procedures to:

451-20               (1)  promote more efficient use of public funds;

451-21               (2)  ensure periodic review of department management

451-22   and support activities in order to:

451-23                     (A)  improve department operations;

451-24                     (B)  improve the determination of costs;

 452-1                     (C)  increase department productivity; and

 452-2                     (D)  remain competitive with the private sector;

 452-3   and

 452-4               (3)  ensure that the state not provide a service that

 452-5   is available through the private sector unless the state can

 452-6   provide the service at a lower cost.

 452-7         [(b)  In developing the procedures, the department shall

 452-8   comply with Article 13, State Purchasing and General Services Act

 452-9   (Article 601b, Vernon's Texas Civil Statutes).]

452-10         SECTION 17.14.  Section 61.033, Education Code, is repealed

452-11   to conform to Section 68(a)(3), Chapter 684, Acts of the 73rd

452-12   Legislature, Regular Session, 1993.

452-13         SECTION 17.15.  Section 12.052(b), Health and Safety Code, is

452-14   amended to correct a reference to read as follows:

452-15         (b)  The expenditure of funds received by other state

452-16   agencies from the department is governed by Subtitle D, Title 10,

452-17   Government Code, [the State Purchasing and General Services Act

452-18   (Article 601b, Vernon's Texas Civil Statutes)] and the rules

452-19   adopted under that subtitle [Act].

452-20         SECTION 17.16.  Section 481.027(e), Government Code, is

452-21   amended to correct a reference and to conform to Section 6.01(d),

452-22   Chapter 8, Acts of the 72nd Legislature, 2nd Called Session, 1991,

452-23   to read as follows:

452-24         (e)  Chapter 2175 applies [Articles 8 and 9, State Purchasing

 453-1   and General Services Act (Article 601b, Vernon's Texas Civil

 453-2   Statutes), apply] to the operation and maintenance of the offices.

 453-3   No other provisions of Subtitle D, Title 10, [that Act] apply to

 453-4   the operation and maintenance of the offices, or to transactions of

 453-5   the department that are authorized by this section.

 453-6         SECTION 17.17.  Section 481.078(f), Government Code, is

 453-7   amended to correct a reference to read as follows:

 453-8         (f)  The corporation shall make a good faith effort to assist

 453-9   historically underutilized [disadvantaged] businesses to receive at

453-10   least 10 percent of the total value of each construction contract

453-11   award for construction and the purchase of supplies, materials,

453-12   services, and equipment that the corporation expects to make in

453-13   connection with the issuance of bonds and any lease, sale, and loan

453-14   agreement made under this section by the corporation.  The

453-15   corporation shall annually report to the legislature and the

453-16   governor on the level of historically underutilized [disadvantaged]

453-17   business participation as it pertains to the corporation's

453-18   contracts.  This report shall include recommendations for the

453-19   improvement of historically underutilized [disadvantaged] business

453-20   opportunities with the corporation.  "Historically underutilized

453-21   [Disadvantaged] business" means a historically underutilized

453-22   [disadvantaged] business as defined by Section 2161.001 [1.02,

453-23   State Purchasing and General Services Act (Article 601b, Vernon's

453-24   Texas Civil Statutes)].

 454-1         SECTION 17.18.  Section 252.0215, Local Government Code, is

 454-2   amended to correct references to read as follows:

 454-3         Sec. 252.0215.  COMPETITIVE BIDDING IN RELATION TO

 454-4   HISTORICALLY UNDERUTILIZED BUSINESS.  A municipality, in making an

 454-5   expenditure of more than $3,000 but less than $15,000, shall

 454-6   contact at least two historically underutilized [disadvantaged]

 454-7   businesses on a rotating basis, based on information provided by

 454-8   the General Services Commission [Office of Small Business

 454-9   Assistance of the Texas Department of Commerce] pursuant to Chapter

454-10   2161, Government Code [Section 1.03, State Purchasing and General

454-11   Services Act (Article 601b, Vernon's Texas Civil Statutes)].  If

454-12   the list fails to identify a historically underutilized

454-13   [disadvantaged] business in the county in which the municipality

454-14   [city] is situated, the municipality [city] is exempt from this

454-15   section.

454-16         SECTION 17.19.  In the following table of cross-reference

454-17   amendments, a reference described in Column A is amended to read as

454-18   provided by the corresponding reference described in Column B, at

454-19   each place at which the reference appears in a code provision cited

454-20   in Column C:

454-21         Column A                Column B              Column C

454-22       Reference to           New Reference        Law in Which the

454-23        Be Amended                                 Reference Appears

454-24   (1)  "Article 3,        (1)  "Chapters         (1)  Sections

454-25   State Purchasing and    2155-2158"             81.0151,

454-26   General Services Act                           403.019(b), and

454-27   (Article 601b,                                 2254.024(b),

 455-1         Column A                Column B              Column C

 455-2       Reference to           New Reference        Law in Which the

 455-3        Be Amended                                 Reference Appears

 455-4   Vernon's Texas Civil                           Government Code

 455-5   Statutes)"

 455-6   (2)  "Article 3,        (2)  "Chapters         (2)  Section

 455-7   State Purchasing and    2155-2158"             496.0515(a),

 455-8   General Services Act                           Government Code

 455-9   (Article 601b,

455-10   Vernon's Texas Civil

455-11   Statutes),"

455-12   (3)  "Article 3,        (3)  "Chapters         (3)  Section

455-13   State Purchasing and    2155-2158 do"          401.005(d),

455-14   General Services Act                           Government Code

455-15   (Article 601b,

455-16   Vernon's Texas Civil

455-17   Statutes), does"

455-18   (4)  "the State         (4)  "Subtitle D,      (4)  Section

455-19   Purchasing and          Title 10, Government   73.115(f),

455-20   General Services Act    Code"                  Education Code;

455-21   (Article 601b,                                 Section 22.016,

455-22   Vernon's Texas Civil                           Human Resources

455-23   Statutes)"                                     Code; and Sections

455-24                                                  35.012(b),

455-25                                                  361.426(a),

455-26                                                  361.477(b),

455-27                                                  402.032, and

455-28                                                  756.022(d), Health

455-29                                                  and Safety Code

455-30   (5)  "the State         (5)  "Subtitle D,      (5)  Sections

455-31   Purchasing and          Title 10"              466.104,

455-32   General Services Act                           466.105(a),

455-33   (Article 601b,                                 481.027(f),

455-34   Vernon's Texas Civil                           496.051(a),

455-35   Statutes)"                                     609.510,

455-36                                                  663.105(b), and

455-37                                                  2101.039(a),

455-38                                                  Government Code

455-39   (6)  "Sec. 3.12,        (6)  "Subchapter B,    (6)  Section

455-40   Article 601b,           Chapter 2156,          51.927(g),

455-41   Revised Statutes"       Government Code"       Education Code

 456-1         Column A                Column B              Column C

 456-2       Reference to           New Reference        Law in Which the

 456-3        Be Amended                                 Reference Appears

 456-4   (7)  "Article 7,        (7)  "Article 9102,    (7)  Section

 456-5   State Purchasing and    Revised Statutes"      61.0572(b),

 456-6   General Services Act                           Education Code

 456-7   (Article 601b,

 456-8   Vernon's Texas Civil

 456-9   Statutes)"

456-10   (8)  "Section 9.16,     (8)  "Subchapter G,    (8)  Section

456-11   State Purchasing and    Chapter 2175"          403.271(a)(2),

456-12   General Services Act                           Government Code

456-13   (Article 601b,

456-14   Vernon's Texas Civil

456-15   Statutes)"

456-16   (9)  "Article 9,        (9)  "Chapter 2175"    (9)  Section

456-17   State Purchasing and                           443.006(b),

456-18   General Services Act                           Government Code

456-19   (Article 601b,

456-20   Vernon's Texas Civil

456-21   Statutes)"

456-22   (10)  "Article 9,       (10)  "Chapter 2175,   (10)  Sections

456-23   State Purchasing and    Government Code"       12.054(a) and (c),

456-24   General Services Act                           Health and Safety

456-25   (Article 601b,                                 Code

456-26   Vernon's Texas Civil

456-27   Statutes)"

456-28   (11)  "Section 1.02,    (11)  "Section         (11)  Sections

456-29   State Purchasing and    2151.002"              552.2611(f) and

456-30   General Services Act                           2254.021(4),

456-31   (Article 601b,                                 Government Code

456-32   Vernon's Texas Civil

456-33   Statutes)"

456-34   (12)  "The State        (12)  "Subtitle D,     (12)  Section

456-35   Purchasing and          Title 10,"             496.051(b),

456-36   General Services Act                           Government Code

456-37   (Article 601b,

456-38   Vernon's Texas Civil

456-39   Statutes)"

 457-1         Column A                Column B              Column C

 457-2       Reference to           New Reference        Law in Which the

 457-3        Be Amended                                 Reference Appears

 457-4   (13)  "The State        (13)  "Subtitle D,     (13)  Section

 457-5   Purchasing and          Title 10, Government   242.099, Health and

 457-6   General Services Act    Code,"                 Safety Code

 457-7   (Article 601b,

 457-8   Vernon's Texas Civil

 457-9   Statutes)"

457-10   (14)  "Section          (14)  "Section         (14)  Section

457-11   3.08(a), State          2155.132(a)"           497.027(a),

457-12   Purchasing and                                 Government Code

457-13   General Services Act

457-14   (Article 601b,

457-15   Vernon's Texas Civil

457-16   Statutes),"

457-17   (15)  "Section          (15)  "Section         (15)  Section

457-18   5.01(b), State          2166.551"              663.002, Government

457-19   Purchasing and                                 Code

457-20   General Services Act

457-21   (Article 601b,

457-22   Vernon's Texas Civil

457-23   Statutes)"

457-24   (16)  "Section 4.15,    (16)  "Subchapter E,   (16)  Section

457-25   State Purchasing and    Chapter 2165,          94.002(b), Human

457-26   General Services Act    Government Code"       Resources Code

457-27   (Article 601b,

457-28   Vernon's Texas Civil

457-29   Statutes)"

457-30   (17)  "Section          (17)  "Section         (17)  Section

457-31   5.321, State            2166.404, Government   373.001(c)(2),

457-32   Purchasing and          Code"                  Health and Safety

457-33   General Services Act                           Code

457-34   (Article 601b,

457-35   Vernon's Texas Civil

457-36   Statutes)"

457-37   (18)  "Subdivisions     (18)  "Sections        (18)  Section

457-38   (1) through (9) of      2156.007(d)(1)-(9),    31.159(d)(2),

457-39   Subsection (e) of       Government Code"       Natural Resources

457-40   Section 3.11, State                            Code

457-41   Purchasing and

457-42   General Services Act

 458-1         Column A                Column B              Column C

 458-2       Reference to           New Reference        Law in Which the

 458-3        Be Amended                                 Reference Appears

 458-4   (Article 601(b),

 458-5   Vernon's Texas Civil

 458-6   Statutes)"

 458-7   (19)  "Sections         (19)  "Sections        (19)  Section

 458-8   1.02(2)(A) and (C),     2151.002(2)(A) and     552.270(b),

 458-9   State Purchasing and    (C), Government        Government Code, as

458-10   General Services Act    Code"                  added by Section

458-11   (Article 601b,                                 17, Chapter 693,

458-12   Vernon's Texas Civil                           Acts of the 74th

458-13   Statutes)"                                     Legislature,

458-14                                                  Regular Session,

458-15                                                  1995

458-16   (20)  "Section          (20)  "Section         (20)  Section

458-17   6.021, State            2165.104"              821.007, Government

458-18   Purchasing and                                 Code

458-19   General Services Act

458-20   (Article 601b,

458-21   Vernon's Texas Civil

458-22   Statutes)"

458-23   (21)  "Sections 1.03    (21)  "Chapter 2161"   (21)  Section

458-24   and 3.10, of the                               825.514, Government

458-25   State Purchasing and                           Code

458-26   General Services Act

458-27   (Article 601b,

458-28   Vernon's Texas Civil

458-29   Statutes)"

458-30   (22)  "Section          (22)  "Section         (22)  Section

458-31   15.06(5), State         2162.102(c)(2),        223.042(c),

458-32   Purchasing and          Government Code"       Transportation Code

458-33   General Services Act

458-34   (Article 601b,

458-35   Vernon's Texas Civil

458-36   Statutes)"

458-37   (23)  "Section          (23)  "Section         (23)  Sections

458-38   5.321, State            2166.404, Government   392.002(b) and (c),

458-39   Purchasing and          Code"                  Transportation Code

458-40   General Services Act

458-41   (Article 601b,

458-42   Vernon's Texas Civil

 459-1         Column A                Column B              Column C

 459-2       Reference to           New Reference        Law in Which the

 459-3        Be Amended                                 Reference Appears

 459-4   Statutes)"

 459-5          ARTICLE 18.  CHANGES RELATING TO SUBTITLE F, GENERAL

 459-6                    GOVERNMENT TITLE, GOVERNMENT CODE

 459-7         SECTION 18.01.  Section 2258.021, Government Code, is amended

 459-8   to more closely conform to the law from which Chapter 2258,

 459-9   Government Code, was derived to read as follows:

459-10         Sec. 2258.021.  RIGHT TO BE PAID  [DUTY OF GOVERNMENTAL

459-11   ENTITY TO PAY] PREVAILING WAGE RATES.  (a)  A  [The state or any

459-12   political subdivision of the state shall pay  a] worker employed on

459-13   a public work by [it] or on behalf of the state or a political

459-14   subdivision of the state shall be paid [it]:

459-15               (1)  not less than the general prevailing rate of per

459-16   diem wages for work of a similar character in the locality in which

459-17   the work is performed; and

459-18               (2)  not less than the general prevailing rate of per

459-19   diem wages for legal holiday and overtime work.

459-20         (b)  Subsection (a) does not apply to maintenance work.

459-21         (c)  A worker is employed on a public work for the purposes

459-22   of this section if the worker is employed by a contractor or

459-23   subcontractor in the execution of a contract for the public work

459-24   with the state, a political subdivision of the state, or any

459-25   officer or public body of the state or a political subdivision of

 460-1   the state.

 460-2         SECTION 18.02.  Section 2258.022, Government Code, is amended

 460-3   to more closely conform to the law from which Chapter 2258,

 460-4   Government Code, was derived by adding Subsection (d) to read as

 460-5   follows:

 460-6         (d)  The public body's determination of the general

 460-7   prevailing rate of per diem wages is final.

 460-8     ARTICLE 19.  CHANGES RELATING TO SUBTITLE G, GENERAL GOVERNMENT

 460-9                         TITLE, GOVERNMENT CODE

460-10         SECTION 19.01.  (a)  Section 2308.002, Government Code, is

460-11   amended to conform to Section 11.11, Chapter 655, Acts of the 74th

460-12   Legislature, Regular Session, 1995, to read as follows:

460-13         Sec. 2308.002.  DEFINITIONS.  In this chapter:

460-14               (1)  ["Administering state agency" means the agency

460-15   designated by the governor to administer the federal Job Training

460-16   Partnership Act (29 U.S.C.  Section 1501 et seq.) in this state.]

460-17               [(2)]  "Council" means the Council on Workforce and

460-18   Economic Competitiveness.

460-19               (2)  "Division" means the division of workforce

460-20   development of the Texas Workforce Commission.

460-21               (3)  "Local labor market" means an economically

460-22   integrated geographical area within which individuals may reside

460-23   and find employment within a reasonable distance.

460-24               (4) [(3)]  "Workforce development" includes workforce

 461-1   education and workforce training and services.

 461-2               (5) [(4)]  "Workforce education" means articulated

 461-3   career-path programs and the constituent courses of those programs

 461-4   that lead to initial or continuing licensing or certification or

 461-5   associate degree-level accreditation and that:

 461-6                     (A)  are subject to:

 461-7                           (i) [(A)]  initial and ongoing state

 461-8   approval or regional or specialized accreditation;

 461-9                           (ii) [(B)]  a formal state evaluation that

461-10   provides the basis for program continuation or termination;

461-11                           (iii) [(C)]  state accountability and

461-12   performance standards; and

461-13                           (iv) [(D)]  a regional or statewide

461-14   documentation of the market demand for labor according to

461-15   employers' needs; or

461-16                     (B)  are subject to approval by the Texas Higher

461-17   Education Coordinating Board as adult vocational or continuing

461-18   education courses.

461-19               (6) [(5)]  "Workforce training and services" means

461-20   training and services programs that are not workforce education.

461-21         (b)  Section 11.11, Chapter 655, Acts of the 74th

461-22   Legislature, Regular Session, 1995, is repealed.

461-23         SECTION 19.02.  (a)  Section 2308.005, Government Code, is

461-24   amended to conform to Section 11.10, Chapter 655, Acts of the 74th

 462-1   Legislature, Regular Session, 1995, to read as follows:

 462-2         Sec. 2308.005.  APPLICATION OF SUNSET ACT.  The Council on

 462-3   Workforce and Economic Competitiveness is subject to Chapter 325

 462-4   (Texas Sunset Act).  Unless continued in existence as provided by

 462-5   that chapter, the council is abolished September 1, 1999 [2001].

 462-6         (b)  Section 11.10, Chapter 655, Acts of the 74th

 462-7   Legislature, Regular Session, 1995, is repealed.

 462-8         SECTION 19.03.  (a)  Section 2308.051, Government Code, is

 462-9   amended to conform to Section 11.12, Chapter 655, Acts of the 74th

462-10   Legislature, Regular Session, 1995, to read as follows:

462-11         Sec. 2308.051.  COUNCIL.  (a)  The Council on Workforce and

462-12   Economic Competitiveness [is a state agency that] acts as a state

462-13   human resource [resources] investment council under the Job

462-14   Training Reform Amendments of 1992 (29 U.S.C. Section 1792 [1501]

462-15   et seq.).

462-16         (b)  The council is attached for administrative purposes to

462-17   the office of the governor.

462-18         (b)  Section 11.12, Chapter 655, Acts of the 74th

462-19   Legislature, Regular Session, 1995, is repealed.

462-20         SECTION 19.04.  (a)  Section 2308.052(b), Government Code, is

462-21   amended to conform to Section 11.13, Chapter 655, Acts of the 74th

462-22   Legislature, Regular Session, 1995, to read as follows:

462-23         (b)  The council is composed of:

462-24               (1)  three [the following ex officio voting members:]

 463-1                     [(A)  the commissioner of education;]

 463-2                     [(B)  the commissioner of higher education;]

 463-3                     [(C)  the commissioner of health and human

 463-4   services;]

 463-5                     [(D)  the executive director of the Texas

 463-6   Department of Commerce; and]

 463-7                     [(E)  the administrator of the Texas Employment

 463-8   Commission;]

 463-9               [(2)  six] voting members who represent education, [at

463-10   least] one of whom represents local public education, one of whom

463-11   represents public postsecondary education, [one of whom represents

463-12   secondary vocational education,] and one of whom represents

463-13   [postsecondary] vocational education;

463-14               (2)  five [(3)  seven] voting members who represent

463-15   organized labor appointed from recommendations made by recognized

463-16   labor organizations;

463-17               (3)  five [(4)  seven] voting members who represent

463-18   business and industry, including business members serving on local

463-19   workforce development boards or private industry councils;

463-20               (4)  two [(5)  one] voting members [member] who

463-21   represent [represents a] community-based organizations

463-22   [organization]; and

463-23               (5) [(6)  one voting member who represents a

463-24   joint-sponsored apprenticeship program as defined by the United

 464-1   States Department of Labor's Bureau of Apprenticeship and Training

 464-2   appointed from a list of three nominees submitted to the governor

 464-3   by the Apprenticeship and Training Association of Texas;]

 464-4               [(7)  one voting member who represents a

 464-5   community-based adult literacy organization;]

 464-6               [(8)  one voting member who represents adult basic and

 464-7   continuing education programs;]

 464-8               [(9)  six voting members, each of whom represents not

 464-9   more than one of the following categories:]

464-10                     [(A)  literacy groups;]

464-11                     [(B)  local welfare or public housing agencies;]

464-12                     [(C)  units of local government;]

464-13                     [(D)  adult education organizations;]

464-14                     [(E)  teachers or counselors;]

464-15                     [(F)  local service delivery organizations;]

464-16                     [(G)  special needs populations;]

464-17                     [(H)  rural and agricultural organizations;]

464-18                     [(I)  proprietary schools;]

464-19                     [(J)  members of the state legislature; and]

464-20                     [(K)  other groups and organizations; and]

464-21               [(10)]  the following ex officio voting [nonvoting]

464-22   members:

464-23                     (A)  the chair of the State Board of Education;

464-24                     (B)  the chair of the Texas Higher Education

 465-1   Coordinating Board;

 465-2                     (C)  the presiding officer of the Texas Board of

 465-3   Human Services;

 465-4                     (D)  the presiding officer of the policy advisory

 465-5   [governing] board of the Texas Department of Commerce; and

 465-6                     (E)  the chair [chairman] of the Texas Workforce

 465-7   [Employment] Commission[;]

 465-8                     [(F)  the commissioner of the Texas

 465-9   Rehabilitation Commission; and]

465-10                     [(G)  the executive director of the Texas

465-11   Commission for the Blind].

465-12         (b)  Section 2308.052, Government Code, is amended to conform

465-13   to Section 11.13, Chapter 655, Acts of the 74th Legislature,

465-14   Regular Session, 1995, by adding Subsection (d) to read as follows:

465-15         (d)  A member of the council who represents a community-based

465-16   organization may not be a provider of services.

465-17         (c)  Section 11.13, Chapter 655, Acts of the 74th

465-18   Legislature, Regular Session, 1995, is repealed.

465-19         SECTION 19.05.  (a)  Section 2308.059, Government Code, is

465-20   amended to conform to Section 11.18, Chapter 655, Acts of the 74th

465-21   Legislature, Regular Session, 1995, to read as follows:

465-22         Sec. 2308.059.  FISCAL AGENT.  The office of the governor

465-23   shall [council may designate another state agency to] serve as the

465-24   council's fiscal agent [if the designated agent agrees to the

 466-1   designation].

 466-2         (b)  Section 11.18, Chapter 655, Acts of the 74th

 466-3   Legislature, Regular Session, 1995, is repealed.

 466-4         SECTION 19.06.  (a)  Section 2308.060(c), Government Code, is

 466-5   amended to conform to Section 11.19, Chapter 655, Acts of the 74th

 466-6   Legislature, Regular Session, 1995, to read as follows:

 466-7         (c)  The executive director shall [may] adopt the

 466-8   administrative and personnel procedures of the council's fiscal

 466-9   agent [rather than adopt new procedures for the council].

466-10         (b)  Section 11.19, Chapter 655, Acts of the 74th

466-11   Legislature, Regular Session, 1995, is repealed.

466-12         SECTION 19.07.  (a)  Section 2308.101, Government Code, is

466-13   amended to conform to Section 11.14, Chapter 655, Acts of the 74th

466-14   Legislature, Regular Session, 1995, to read as follows:

466-15         Sec. 2308.101.  GENERAL DUTIES.  The council shall:

466-16               (1)  promote the development of a well-educated, highly

466-17   skilled workforce in this state [through literacy, adult basic

466-18   education, community education, apprenticeship, and

466-19   state-of-the-art occupational skills education and training

466-20   programs];

466-21               (2)  [serve as an] advocate [for] the development of an

466-22   integrated workforce development system to provide quality services

466-23   addressing the needs of business and workers in this state;

466-24               (3)  [promote and assist in the development of an

 467-1   industry-based skills standards and certification system for

 467-2   occupations requiring less than a baccalaureate-level education and

 467-3   training;]

 467-4               [(4)  promote the development of workplaces of high

 467-5   productivity in this state;]

 467-6               [(5)  recommend to the governor the components of a

 467-7   school and training-to-work transition process;]

 467-8               [(6)]  recommend to the governor the designation or

 467-9   redesignation of workforce development areas for the local planning

467-10   and delivery of workforce development;

467-11               (4) [(7)]  identify and recommend to the governor

467-12   incentives to encourage the consolidation, on a regional labor

467-13   market basis, of:

467-14                     (A)  local boards, councils, and committees; and

467-15                     (B)  service delivery areas authorized under the

467-16   Job Training Partnership Act (29 U.S.C. Section 1501 et seq.);

467-17               (5) [(8)  design and implement a combined state and

467-18   local planning process for the state's workforce training and

467-19   services;]

467-20               [(9)]  review plans for local workforce training and

467-21   services and make recommendations to the governor for approval;

467-22               (6)  evaluate [(10)  implement a statewide system for

467-23   evaluating] the effectiveness of all workforce development using

467-24   the administrative records of the state's unemployment compensation

 468-1   program and other sources as appropriate;

 468-2               (7) [(11)]  support research and demonstration projects

 468-3   designed to develop new programs and approaches to service

 468-4   delivery;

 468-5               (8)  recommend measures to [(12)  provide for training

 468-6   and professional development for council members, local chief

 468-7   elected officials, local workforce development boards and staff,

 468-8   and private industry councils and staff;]

 468-9               [(13)  serve as an advocate at the state and federal

468-10   levels for the local workforce development boards;]

468-11               [(14)  establish and operate a comprehensive labor

468-12   market information system that serves employers, students, workers,

468-13   and state and local planning organizations;]

468-14               [(15)]  ensure that occupational skills training is:

468-15                     (A)  provided in occupations that are locally in

468-16   demand; and

468-17                     (B)  directed toward high-skill and high-wage

468-18   jobs;

468-19               (9)  monitor [(16)  oversee] the operation of the

468-20   state's workforce development programs to assess the degree to

468-21   which these programs are effective in achieving state and local

468-22   goals and objectives;

468-23               (10) [(17)]  develop and recommend to the governor

468-24   criteria for the establishment of local workforce development

 469-1   boards; and

 469-2               (11) [(18)  develop objective criteria for granting

 469-3   waivers allowed under this chapter;]

 469-4               [(19)  develop and recommend to the governor a plan to

 469-5   ensure the accessibility of workforce development to clients that

 469-6   includes a uniform statewide client application system to determine

 469-7   an applicant's eligibility for workforce development for which

 469-8   state or federal financial assistance is available; and]

 469-9               [(20)]  carry out the federal and state duties and

469-10   responsibilities of advisory councils under applicable federal and

469-11   state workforce development.

469-12         (b)  Section 2308.104(a), Government Code, is amended to

469-13   conform to Section 11.14, Chapter 655, Acts of the 74th

469-14   Legislature, Regular Session, 1995, to read as follows:

469-15         (a)  The council shall develop and recommend to the governor

469-16   a single strategic plan that establishes the framework for the

469-17   budgeting and operation of all workforce development programs,

469-18   including school to work transition programs, administered by

469-19   agencies represented on the council.

469-20         (c)  Section 11.14, Chapter 655, Acts of the 74th

469-21   Legislature, Regular Session, 1995, is repealed.

469-22         SECTION 19.08.  (a)  Section 2308.102(c), Government Code, is

469-23   amended to conform to Section 11.17, Chapter 655, Acts of the 74th

469-24   Legislature, Regular Session, 1995, to read as follows:

 470-1         (c)  The council shall assume the responsibilities formerly

 470-2   exercised by the following state advisory councils and committees:

 470-3               (1)  the State Job Training Coordinating Council;

 470-4               (2)  the Texas Council on Vocational Education;

 470-5               (3)  [the technical advisory committee to the State

 470-6   Occupational Information Coordinating Council;]

 470-7               [(4)]  the Texas Literacy Council; and

 470-8               (4) [(5)]  the Apprenticeship and Training Advisory

 470-9   Committee.

470-10         (b)  Section 11.17, Chapter 655, Acts of the 74th

470-11   Legislature, Regular Session, 1995, is repealed.

470-12         SECTION 19.09.  (a)  Section 2308.106, Government Code, is

470-13   amended to conform to Section 11.23, Chapter 655, Acts of the 74th

470-14   Legislature, Regular Session, 1995, to read as follows:

470-15         Sec. 2308.106.  DIVISION [COUNCIL] ASSISTANCE.  The division

470-16   [council] shall assist a local workforce development board in

470-17   designing effective measures to accomplish the board's

470-18   responsibilities under Section 2308.302.

470-19         (b)  Section 2308.253, Government Code, is amended to conform

470-20   to Section 11.23, Chapter 655, Acts of the 74th Legislature,

470-21   Regular Session, 1995, by adding Subsection (g) to read as follows:

470-22         (g)  The chief elected officials designated under Subsection

470-23   (c) shall enter into a partnership agreement with the board to:

470-24               (1)  select the grant recipient and the administrative

 471-1   entity for the local workforce development area; and

 471-2               (2)  determine procedures for the development of the

 471-3   local workforce development plan.

 471-4         (c)  Section 2308.302, Government Code, is amended to conform

 471-5   to Section 11.23, Chapter 655, Acts of the 74th Legislature,

 471-6   Regular Session, 1995, to read as follows:

 471-7         Sec. 2308.302.  RESPONSIBILITY OF BOARD.  (a)  A board is

 471-8   directly responsible and accountable to the division [council] for

 471-9   the planning and oversight of all workforce training and services

471-10   and the evaluation of all workforce development programs in the

471-11   workforce development area.  A board shall ensure effective

471-12   outcomes consistent with statewide goals, objectives, and

471-13   performance standards approved by the governor.

471-14         (b)  A board is directly responsible to the division for the

471-15   operational planning and administration of all workforce training

471-16   and services funded through the Texas Workforce Commission to the

471-17   local area [administering state agency].

471-18         (d)  Section 2308.303, Government Code, is amended to conform

471-19   to Section 11.23, Chapter 655, Acts of the 74th Legislature,

471-20   Regular Session, 1995, to read as follows:

471-21         Sec. 2308.303.  BOARD DUTIES.  (a)  A board shall:

471-22               (1)  serve as a single point of contact for local

471-23   businesses to communicate their skill needs and to influence the

471-24   direction of all workforce development programs in the workforce

 472-1   development area;

 472-2               (2)  serve as a private industry council under the Job

 472-3   Training Partnership Act (29 U.S.C. Section 1501 et seq.);

 472-4               (3)  develop a local plan to address the workforce

 472-5   development needs of the workforce development area that:

 472-6                     (A)  is responsive to the goals, objectives, and

 472-7   performance standards established by the governor;

 472-8                     (B)  targets services to meet local needs,

 472-9   including the identification of industries and employers likely to

472-10   employ workers who complete job training programs; and

472-11                     (C)  ensures that the workforce development

472-12   system, including the educational system, has the flexibility to

472-13   meet the needs of local businesses;

472-14               (4) [(3)]  designate the board or another entity as the

472-15   board's fiscal agent to be responsible and accountable for the

472-16   management of all workforce development funds available to the

472-17   board;

472-18               (5) [(4)]  create local career [workforce] development

472-19   centers under Section 2308.312;

472-20               (6) [(5)]  review plans for workforce education to

472-21   ensure that the plans address the needs of local businesses and

472-22   recommend appropriate changes in the delivery of education

472-23   services;

472-24               (7) [(6)]  assume the functions and responsibilities of

 473-1   local workforce development advisory boards, councils, and

 473-2   committees authorized by federal or state law, including private

 473-3   industry councils, quality workforce planning committees, job

 473-4   service employer committees, and local general vocational program

 473-5   advisory committees;

 473-6               (8) [(7)]  monitor and evaluate the effectiveness of

 473-7   the career [workforce] development centers, state agencies and

 473-8   other contractors providing workforce training and services, and

 473-9   vocational and technical education programs operated by local

473-10   education agencies and institutions of higher education to ensure

473-11   that performance is consistent with state and local goals and

473-12   objectives; and

473-13               (9) [(8)]  promote cooperation and coordination among

473-14   public organizations, community organizations, and private

473-15   businesses providing workforce development[; and]

473-16               [(9)  review applications for consistency with rules

473-17   developed by the Texas Department of Commerce for funds under the

473-18   smart jobs fund program under Subchapter J, Chapter 481].

473-19         (b)  The board shall ensure that employment services are

473-20   provided for persons seeking employment in the local workforce

473-21   development area.  The board shall contract with an appropriate

473-22   entity for the provision of services, or, if all necessary waivers

473-23   are granted, the board may provide the services directly.

473-24         (c)  In performing its duties under this section [Subsection

 474-1   (a)(9)], a board may provide to the division [department] relevant

 474-2   labor market information and information regarding the availability

 474-3   of existing workforce development.

 474-4         (d) [(c)]  A provider must respond to a change recommended by

 474-5   a board under Subsection (a)(6) [(5)] not later than the 30th day

 474-6   after the date the provider receives the recommendation.

 474-7         (e)  Section 11.23, Chapter 655, Acts of the 74th

 474-8   Legislature, Regular Session, 1995, is repealed.

 474-9         SECTION 19.10.  (a)  Section 2308.154, Government Code, is

474-10   amended to conform to Section 11.15, Chapter 655, Acts of the 74th

474-11   Legislature, Regular Session, 1995, to read as follows:

474-12         Sec. 2308.154.  ANALYSIS.  At least annually, the council

474-13   shall issue an analysis, by occupation and by the provider of the

474-14   job placement performance, of each workforce education program for

474-15   the previous one-year, three-year, and five-year periods to:

474-16               (1)  each provider of workforce education or workforce

474-17   training and services;

474-18               (2)  the Texas Higher Education Coordinating Board for

474-19   each provider of workforce education approved and administered by

474-20   the board; [and]

474-21               (3)  each local workforce development board for each

474-22   provider of workforce training and services within the workforce

474-23   development area; and

474-24               (4)  the division.

 475-1         (b)  Section 11.15, Chapter 655, Acts of the 74th

 475-2   Legislature, Regular Session, 1995, is repealed.

 475-3         SECTION 19.11.  (a)  Section 2308.203(a), Government Code, is

 475-4   amended to conform to Section 11.20, Chapter 655, Acts of the 74th

 475-5   Legislature, Regular Session, 1995, to read as follows:

 475-6         (a)  A state agency that is responsible for the

 475-7   administration of human resources and workforce development in this

 475-8   state shall implement a recommendation under this subchapter if the

 475-9   recommendation does not violate a federal or state law[,

475-10   regulation, or rule].   

475-11         (b)  Section 11.20, Chapter 655, Acts of the 74th

475-12   Legislature, Regular Session, 1995, is repealed.

475-13         SECTION 19.12.  (a)  Section 2308.253, Government Code, is

475-14   amended to conform to Section 11.22, Chapter 655, Acts of the 74th

475-15   Legislature, Regular Session, 1995, to read as follows:

475-16         Sec. 2308.253.  CREATION OF LOCAL WORKFORCE DEVELOPMENT

475-17   BOARDS.  (a)  The chief elected officials in a workforce

475-18   development area may form, in accordance with rules established by

475-19   the Texas Workforce Commission [council], a local workforce

475-20   development board to:

475-21               (1)  plan and oversee the delivery of workforce

475-22   training and services; and

475-23               (2)  evaluate workforce development in the workforce

475-24   development area.

 476-1         (b)  The authority granted under Subsection (a) does not give

 476-2   a local workforce development board any direct authority or control

 476-3   over workforce funds and programs in its workforce development

 476-4   area, other than programs funded through that board.

 476-5         (c)  Before a local workforce development board may be

 476-6   created, at least three-fourths of the chief elected officials in

 476-7   the workforce development area who represent units of general local

 476-8   government must agree to the creation of the board, including all

 476-9   of the chief elected officials who represent units of general local

476-10   government that have populations of at least 200,000.  The elected

476-11   officials who agree to the creation of the board must represent at

476-12   least 75 percent of the population of the workforce development

476-13   area.

476-14         (d)  The chief elected officials shall consider the views of

476-15   all affected local organizations, including private industry

476-16   councils and quality workforce planning committees, before making a

476-17   final decision on the formation of a board.

476-18         (e) [(c)]  An agreement on the formation of a board must be

476-19   in writing and must include:

476-20               (1)  the purpose for the agreement;

476-21               (2)  the process to be used to select the chief elected

476-22   official who will act on behalf of the other chief elected

476-23   officials;

476-24               (3)  the process to be used to keep the chief elected

 477-1   officials informed regarding local workforce development

 477-2   activities;

 477-3               (4)  the initial size of the board;

 477-4               (5)  how resources allocated to the local workforce

 477-5   development area are to be shared among the parties to the

 477-6   agreement;

 477-7               (6) [(4)]  the process, consistent with applicable

 477-8   federal and state law, for the appointment of the board members;

 477-9   and

477-10               (7) [(5)]  the terms of office of the board members.

477-11         (f)  In a state planning area in which there is more than one

477-12   local workforce development area, the quality workforce planning

477-13   committee of that state planning area shall continue in existence

477-14   to provide labor market information for the entire state planning

477-15   area until local workforce development boards are certified in each

477-16   workforce development area in that state planning area.

477-17         (b)  Section 2308.254(a), Government Code, is amended to

477-18   conform to Section 11.22, Chapter 655, Acts of the 74th

477-19   Legislature, Regular Session, 1995, to read as follows:

477-20         (a)  A power or duty granted a board under this chapter may

477-21   not be exercised in a workforce development area until:

477-22               (1)  the chief elected officials in that area agree on

477-23   the establishment of a board as provided by Section 2308.253(c);

477-24   and

 478-1               (2)  the board is certified by the governor.

 478-2         (c)  The heading to Section 2308.255, Government Code, is

 478-3   amended to conform to Section 11.22, Chapter 655, Acts of the 74th

 478-4   Legislature, Regular Session, 1995, to read as follows:

 478-5         Sec. 2308.255.  APPOINTMENT OF BOARD; LIABILITY OF BOARD

 478-6   MEMBERS.

 478-7         (d)  Section 2308.255, Government Code, is amended to conform

 478-8   to Section 11.22, Chapter 655, Acts of the 74th Legislature,

 478-9   Regular Session, 1995, by adding Subsection (e) to read as follows:

478-10         (e)  A member or former member of a board may not be held

478-11   personally liable for a claim, damage, loss, or repayment

478-12   obligation of federal or state funds that arises under this chapter

478-13   unless the act or omission that causes the claim, damage, loss, or

478-14   repayment obligation constitutes, on the part of the board member

478-15   or former board member:

478-16               (1)  official misconduct;

478-17               (2)  wilful disregard of the requirements of this

478-18   chapter; or

478-19               (3)  gross negligence.

478-20         (e)  Section 11.22, Chapter 655, Acts of the 74th

478-21   Legislature, Regular Session, 1995, is repealed.

478-22         SECTION 19.13.  (a)  Section 2308.262, Government Code, is

478-23   amended to conform to Section 11.26, Chapter 655, Acts of the 74th

478-24   Legislature, Regular Session, 1995, to read as follows:

 479-1         Sec. 2308.262.  BUDGET.  A board shall adopt a budget for the

 479-2   board that must be included in the local workforce development plan

 479-3   submitted to the division [council].

 479-4         (b)  Section 2308.267(a), Government Code, is amended to

 479-5   conform to Section 11.26, Chapter 655, Acts of the 74th

 479-6   Legislature, Regular Session, 1995, to read as follows:

 479-7         (a)  A board may employ professional, technical, and support

 479-8   staff to carry out its [strategic] planning, oversight, and

 479-9   evaluation functions.

479-10         (c)  Section 11.26, Chapter 655, Acts of the 74th

479-11   Legislature, Regular Session, 1995, is repealed.

479-12         SECTION 19.14.  Section 2308.263, Government Code, is amended

479-13   to conform to Section 301.063, Labor Code, as amended by Section

479-14   11.02, Chapter 655, Acts of the 74th Legislature, Regular Session,

479-15   1995, to read as follows:

479-16         Sec. 2308.263.  APPROVAL OF FISCAL AGENT.  (a)  The Texas

479-17   Workforce Commission [administering state agency] must approve the

479-18   fiscal agent selected by a board before any federal or state

479-19   workforce development funds may be disbursed to the board.

479-20         (b)  The commission [agency] shall base its approval on an

479-21   audit of the financial capability of the fiscal agent to ensure

479-22   that fiscal controls and fund accounting procedures necessary to

479-23   guarantee the proper disbursal of and accounting for federal and

479-24   state funds are in place.

 480-1         SECTION 19.15.  Section 2308.269, Government Code, is amended

 480-2   to conform to Section 301.063, Labor Code, as amended by Section

 480-3   11.02, Chapter 655, Acts of the 74th Legislature, Regular Session,

 480-4   1995, to read as follows:

 480-5         Sec. 2308.269.  SANCTIONS FOR LACK OF FISCAL ACCOUNTABILITY.

 480-6   If, as a result of financial and compliance audits or for another

 480-7   reason, the Texas Workforce Commission [administering state agency]

 480-8   finds a substantial violation of a specific provision of this

 480-9   chapter or another federal or state law or regulation and

480-10   corrective action has not been taken, the council shall:

480-11               (1)  issue a notice of intent to revoke all or part of

480-12   the affected local plan;

480-13               (2)  issue a notice of intent to cease immediately

480-14   reimbursement of local program costs; or

480-15               (3)  impose a reorganization plan under Section

480-16   2308.268 for the local workforce development area.

480-17         SECTION 19.16.  (a)  Section 2308.304, Government Code, is

480-18   amended to conform to Section 11.24, Chapter 655, Acts of the 74th

480-19   Legislature, Regular Session, 1995, to read as follows:

480-20         Sec. 2308.304.  LOCAL PLAN.  (a)  A board shall adopt a

480-21   single plan that includes the components specified in this section.

480-22         (b)  The plan must include a strategic component that:

480-23               (1)  assesses the labor market needs of the local

480-24   workforce development area;

 481-1               (2)  identifies existing workforce development

 481-2   programs;

 481-3               (3)  evaluates the effectiveness of existing programs

 481-4   and services; and

 481-5               (4)  sets broad goals and objectives for all workforce

 481-6   development programs in the local area consistent with statewide

 481-7   goals, objectives, and performance standards.

 481-8         (c)  The plan must include an operational component that

 481-9   specifies how all of the resources available to the local workforce

481-10   development area from the Texas Workforce Commission will be used

481-11   to achieve the goals and objectives of the plan for the area.  At a

481-12   minimum, this component must establish:

481-13               (1)  the goals, objectives, and performance measures to

481-14   be used in overseeing and evaluating the operation of all workforce

481-15   training and services;

481-16               (2)  the segments of the population targeted for

481-17   various services;

481-18               (3)  the mix of services to be provided and how those

481-19   services are to be provided; and

481-20               (4)  the structure of the local service delivery

481-21   system.

481-22         (d)  Program resources included in the operational component

481-23   are [for the delivery of all workforce training and services in the

481-24   board's service area under the following]:

 482-1               (1)  job training programs funded under the Job

 482-2   Training Partnership Act (29 U.S.C. Section 1501 et seq.) [Chapter

 482-3   301, Labor Code];

 482-4               (2)  postsecondary vocational and technical job

 482-5   training programs that are not part of approved courses or programs

 482-6   that lead to licensing, certification, or an associate degree under

 482-7   Chapters 61, [108,] 130, and 135, or Subchapter E, Chapter 88,

 482-8   Education Code;

 482-9               (3)  adult education programs under Subchapter H,

482-10   Chapter 29 [Section 11.18], Education Code;

482-11               (4)  employment services programs [apprenticeship

482-12   programs under Chapter 33, Education Code];

482-13               (5)  [the trade adjustment assistance program under

482-14   Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et

482-15   seq.);]

482-16               [(6)  the senior citizens employment program under

482-17   Chapter 101, Human Resources Code;]

482-18               [(7)  Subtitle A, Title 4, Labor Code;]

482-19               [(8)]  literacy funds available to the state under the

482-20   National Literacy Act of 1991 (20 U.S.C. Section 1201 et seq.);

482-21               (6) [(9)  the National and Community Service Act of

482-22   1990 (42 U.S.C. Section 12501 et seq.);]

482-23               [(10)]  the job opportunities and basic skills program

482-24   under Part F, Subchapter IV, Social Security Act (42 U.S.C.

 483-1   Section 682); and

 483-2               (7) [(11)]  the food stamp employment and training

 483-3   program authorized under 7 U.S.C. Section 2015(d).

 483-4         [(b)  A local plan must identify:]

 483-5               [(1)  goals, objectives, and performance measures;]

 483-6               [(2)  the people and groups to be served;]

 483-7               [(3)  the types of services to be provided;]

 483-8               [(4)  the service providers; and]

 483-9               [(5)  the structure of the delivery system.]

483-10         (b)  Section 11.24, Chapter 655, Acts of the 74th

483-11   Legislature, Regular Session, 1995, is repealed.

483-12         SECTION 19.17.  (a)  Section 2308.305, Government Code, is

483-13   amended to conform to Section 11.25, Chapter 655, Acts of the 74th

483-14   Legislature, Regular Session, 1995, to read as follows:

483-15         Sec. 2308.305.  USE OF LABOR MARKET INFORMATION SYSTEM.   A

483-16   board[, in conjunction with the council,] shall review, verify,

483-17   modify, and use local labor market information developed through

483-18   the state's [establish and operate an automated, interactive] labor

483-19   market information system to identify, by occupation, the labor

483-20   demand by employers in each workforce development area.

483-21         (b)  Section 2308.308, Government Code, is amended to conform

483-22   to Section 11.25, Chapter 655, Acts of the 74th Legislature,

483-23   Regular Session, 1995, to read as follows:

483-24         Sec. 2308.308.  PUBLIC COMMUNITY COLLEGE.  A public community

 484-1   college shall promptly provide workforce training and services that

 484-2   are requested:

 484-3               (1)  by a board if the need for the training and

 484-4   services is based on the [board's] labor market information system

 484-5   available for the [board's] area;

 484-6               (2)  by employers located in the college's taxing

 484-7   district when the request is presented directly to the college by

 484-8   the employers or through the board; or

 484-9               (3)  as part of economic development incentives

484-10   designed to attract or retain an employer, including incentives

484-11   offered under the smart jobs fund program under Subchapter J,

484-12   Chapter 481.

484-13         (c)  Section 11.25, Chapter 655, Acts of the 74th

484-14   Legislature, Regular Session, 1995, is repealed.

484-15         SECTION 19.18.  (a)  Subchapter G, Chapter 2308, Government

484-16   Code, is amended to conform to Section 11.27, Chapter 655, Acts of

484-17   the 74th Legislature, Regular Session, 1995, by adding Section

484-18   2308.3035 to read as follows:

484-19         Sec. 2308.3035.  COMPONENTS OF LOCAL WORKFORCE DEVELOPMENT

484-20   SYSTEM.  The local workforce development system is composed of two

484-21   major components as follows:

484-22               (1)  an employer services component that provides labor

484-23   market information and services and other services as appropriate

484-24   to local employers; and

 485-1               (2)  an integrated service delivery system composed of

 485-2   a network of career development centers that serve the people of

 485-3   this state based on a "one-stop for service" approach and supported

 485-4   by electronic access to comprehensive labor market information.

 485-5         (b)  Section 2308.312, Government Code, is amended to conform

 485-6   to Section 11.27, Chapter 655, Acts of the 74th Legislature,

 485-7   Regular Session, 1995, to read as follows:

 485-8         Sec. 2308.312.  CAREER [WORKFORCE] DEVELOPMENT CENTERS.

 485-9   (a)  A board shall establish career [workforce] development centers

485-10   accessible to students and[,] workers[, and employers] throughout

485-11   the workforce development area.  The board shall establish the

485-12   centers not later than the 180th day after the date the board is

485-13   certified.

485-14         (b)  Each center shall provide access to information and

485-15   services available in the workforce development area, including

485-16   employment services, and shall address the individual needs of

485-17   students and[,] workers[, and employers].

485-18         (c)  The services [available at a center] must include:

485-19               (1)  labor market information, including:

485-20                     (A)  [skills] available [in the workforce area;]

485-21                     [(B)]  job openings; and

485-22                     (B) [(C)]  education and[,] training[, and

485-23   employment] opportunities in the local area, in the state, and, as

485-24   feasible, in the nation;

 486-1               (2)  uniform eligibility requirements and application

 486-2   procedures for all workforce training [development];

 486-3               (3)  independent assessment of individual needs and the

 486-4   development of an individual service strategy;

 486-5               (4)  centralized and continuous case management and

 486-6   counseling;

 486-7               (5)  individual referral for services, including basic

 486-8   education, classroom skills training, on-the-job training, and

 486-9   customized training; and

486-10               (6)  support services, including child care assistance,

486-11   student loans, and other forms of financial assistance required to

486-12   participate in and complete training.

486-13         (c)  Subchapter G, Chapter 2308, Government Code, is amended

486-14   to conform to Section 11.27, Chapter 655, Acts of the 74th

486-15   Legislature, Regular Session, 1995, by adding Sections 2308.3121

486-16   and 2308.3122 to read as follows:

486-17         Sec. 2308.3121.  SERVICE PROVIDER LIMITATION; WAIVER.  (a)

486-18   Except as provided by Subsection (b), a person who provides

486-19   one-stop services may not also provide developmental services such

486-20   as basic education and skills training.

486-21         (b)  The division may develop a waiver process for a person

486-22   subject to Subsection (a).  A request for a waiver must include a

486-23   detailed justification based on the lack of an existing qualified

486-24   alternative for delivery of developmental services in the

 487-1   applicable workforce development area.

 487-2         Sec. 2308.3122.  UNEMPLOYMENT INSURANCE CLAIMS.  In

 487-3   cooperation with the boards, the Texas Workforce Commission shall

 487-4   provide for the filing of unemployment insurance claims through

 487-5   career development centers in each local workforce development

 487-6   area.

 487-7         (d)  Section 2308.313, Government Code, is amended to conform

 487-8   to Section 11.27, Chapter 655, Acts of the 74th Legislature,

 487-9   Regular Session, 1995, to read as follows:

487-10         Sec. 2308.313.  RIGHT TO KNOW.  A career [workforce]

487-11   development center shall provide to each person, before the person

487-12   participates in a vocational or technical training program, a

487-13   document that informs the person of:

487-14               (1)  current employment prospects; [and]

487-15               (2)  the current wage level for a person who completes

487-16   the vocational or technical training program in which the person is

487-17   considering participating; and

487-18               (3)  the most recent information available on the

487-19   performance of institutions that provide that training in the local

487-20   workforce development area.

487-21         (e)  Section 11.27, Chapter 655, Acts of the 74th

487-22   Legislature, Regular Session, 1995, is repealed.

487-23         SECTION 19.19.  (a)  Chapter 2308, Government Code, is

487-24   amended to conform to Section 11.28, Chapter 655, Acts of the 74th

 488-1   Legislature, Regular Session, 1995, by adding Subchapter H to read

 488-2   as follows:

 488-3                  SUBCHAPTER H.  SKILL STANDARDS BOARD

 488-4         Sec. 2308.401.  TEXAS SKILL STANDARDS BOARD.  (a)  The Texas

 488-5   Skill Standards Board is an advisory board to the governor and the

 488-6   legislature on the development of a statewide system of

 488-7   industry-defined and industry-recognized skill standards and

 488-8   credentials for all major skilled occupations that:

 488-9               (1)  provide strong employment and earnings

488-10   opportunities in this state; and

488-11               (2)  require less than a baccalaureate degree.

488-12         (b)  The skill standards board is composed of 11 members

488-13   appointed by and serving at the pleasure of the governor.  The

488-14   skill standards board consists of the following members:

488-15               (1)  seven members who represent business, two of whom

488-16   must be from business entities that employ fewer than 50 employees;

488-17               (2)  two members who represent labor;

488-18               (3)  one member who represents secondary education; and

488-19               (4)  one member who represents postsecondary education.

488-20         (c)  The governor shall appoint the presiding officer of the

488-21   skill standards board from the members who represent business.  The

488-22   skill standards board shall meet at the call of the presiding

488-23   officer as often as necessary to accomplish its duties.

488-24         (d)  A member of the skill standards board is not entitled to

 489-1   compensation for service on the board but is entitled to

 489-2   reimbursement for reasonable expenses incurred in performing duties

 489-3   as a member of the board, subject to any applicable limitation in

 489-4   the General Appropriations Act.

 489-5         (e)  Chapter 2110 does not apply to the skill standards

 489-6   board.

 489-7         Sec. 2308.402.  DUTIES OF SKILL STANDARDS BOARD.  (a)  The

 489-8   skill standards board shall:

 489-9               (1)  validate nationally established skill standards to

489-10   guide curriculum development, training, assessment, and

489-11   certification of workforce skills;

489-12               (2)  convene industry groups to develop skill standards

489-13   and certification procedures for industries and occupations in

489-14   which standards have not been established or adopted;

489-15               (3)  review the standards developed by other states and

489-16   foreign countries and enter into agreements for mutual recognition

489-17   of credentials to enhance portability of skills; and

489-18               (4)  promote the use of standards and credentials among

489-19   employers.

489-20         (b)  The board shall:

489-21               (1)  report periodically to the governor; and

489-22               (2)  provide annual reports to the governor, the

489-23   division, and the legislature.

489-24         Sec. 2308.403.  STAFF SUPPORT.  The council shall provide

 490-1   staff support for the Texas Skill Standards Board as necessary.

 490-2         (b)  Section 11.28, Chapter 655, Acts of the 74th

 490-3   Legislature, Regular Session, 1995, is repealed.

 490-4         SECTION 19.20.  (a)  Section 2308.064, Government Code, is

 490-5   repealed to conform to Section 11.21, Chapter 655, Acts of the 74th

 490-6   Legislature, Regular Session, 1995.

 490-7         (b)  The following laws are repealed to conform to Section

 490-8   11.29, Chapter 655, Acts of the 74th Legislature, Regular Session,

 490-9   1995:

490-10               (1)  Section 2308.062, Government Code;

490-11               (2)  Section 2308.063, Government Code;

490-12               (3)  Section 2308.157, Government Code;

490-13               (4)  Section 2308.159, Government Code; and

490-14               (5)  Section 2308.204, Government Code.

490-15         (c)  Sections 11.21 and 11.29, Chapter 655, Acts of the 74th

490-16   Legislature, Regular Session, 1995, are repealed.

490-17         ARTICLE 20.  CHANGES RELATING TO HEALTH AND SAFETY CODE

490-18         SECTION 20.01.  Subchapter H, Chapter 285, Health and Safety

490-19   Code, as added by Chapters 46 and 444, Acts of the 74th

490-20   Legislature, Regular Session, 1995, is amended and reenacted to

490-21   read as follows:

490-22      SUBCHAPTER H.  CONTRACTS, COLLABORATIONS, AND JOINT VENTURES

490-23         Sec. 285.091.  HOSPITAL DISTRICT CONTRACTS, COLLABORATIONS,

490-24   AND JOINT VENTURES.  (a)  A hospital district created under general

 491-1   or special law may contract, collaborate, or enter into a joint

 491-2   venture with any public or private entity as necessary to form or

 491-3   carry out the functions of or provide services to an

 491-4   intergovernmental initiative under Section 16B, Article 4413(502),

 491-5   Revised Statutes.

 491-6         (b)  A hospital district created under general or special law

 491-7   may contract with the Texas Department of Health for the provision

 491-8   of health care services and assistance, including preventive health

 491-9   care services, to eligible residents of the district.

491-10         SECTION 20.02.  Section 361.344(a), Health and Safety Code,

491-11   is amended to omit a reference to a repealed law to read as

491-12   follows:

491-13         (a)  A person subject to a court injunction or an

491-14   administrative order issued under this chapter[, or a third person

491-15   identified by Section 361.192(c)] who acts to eliminate a release

491-16   or threatened release, in addition to having the right to file an

491-17   action for contribution or indemnity, or both, in an appeal

491-18   proceeding or in an action brought by the attorney general, may

491-19   bring suit in a district court to recover costs incurred to

491-20   eliminate the release or threatened release and other costs as the

491-21   court, in its discretion, considers reasonable.

491-22          ARTICLE 21.  CHANGES RELATING TO HUMAN RESOURCES CODE

491-23         SECTION 21.01.  (a)  Subchapter A, Chapter 40, Human

491-24   Resources Code, is amended to conform to Section 20, Chapter 693,

 492-1   Acts of the 74th Legislature, Regular Session, 1995, by adding

 492-2   Section 40.007 to read as follows:

 492-3         Sec. 40.007.  REPORTING REQUIREMENT; PROFESSIONAL FEES.  (a)

 492-4   The department shall include in any report required by law

 492-5   concerning the department's expenditures information relating to

 492-6   fees for professional or consultative services provided for the

 492-7   general administration of the department.

 492-8         (b)  The report required under Subsection (a) may not

 492-9   include:

492-10               (1)  professional fees paid for  routine or special

492-11   examinations to determine an individual's eligibility for a program

492-12   administered by the department;

492-13               (2)  professional fees for treatment, services, or care

492-14   for individual recipients; or

492-15               (3)  fees for providing for the special needs of

492-16   individual recipients, including the provision of appliances.

492-17         (b)  Section 20, Chapter 693, Acts of the 74th Legislature,

492-18   Regular Session, 1995, is repealed.

492-19         SECTION 21.02.  (a)  Subchapter C, Chapter 40, Human

492-20   Resources Code, is amended to conform to Section 1, Chapter 559,

492-21   Acts of the 74th Legislature, Regular Session, 1995, by adding

492-22   Section 40.0521 to read as follows:

492-23         Sec. 40.0521.  RULES REGARDING DOMESTIC VIOLENCE.  (a)  The

492-24   department shall adopt and implement rules that require an

 493-1   investigating employee to document indications of domestic

 493-2   violence, including elder, spousal, and child abuse. The department

 493-3   may develop forms to facilitate the documentation process.

 493-4         (b)  The department by rule shall require that written

 493-5   information, printed in English and Spanish, concerning community

 493-6   services that are available to victims of domestic violence be

 493-7   distributed to those victims.  The department may coordinate its

 493-8   efforts under this subsection with local law enforcement agencies

 493-9   already providing that information.

493-10         (c)  The department shall include in its annual report

493-11   statistical compilations of  information regarding domestic abuse

493-12   documented under Subsection (a).

493-13         (b)  Section 1, Chapter 559, Acts of the 74th Legislature,

493-14   Regular Session, 1995, is repealed.

493-15         SECTION 21.03.  (a)  Subchapter C, Chapter 40, Human

493-16   Resources Code, is amended to conform to Section 98, Chapter 262,

493-17   Acts of the 74th Legislature, Regular Session, 1995, by adding

493-18   Section 40.0561 to read as follows:

493-19         Sec. 40.0561.  COMMUNITY YOUTH DEVELOPMENT GRANTS.

493-20   (a)  Subject to available funding, the department shall award

493-21   community youth development grants to communities identified by

493-22   incidence of crime.  The department shall give priority in awarding

493-23   grants under this section to areas of the state in which there is a

493-24   high incidence of juvenile crime.

 494-1         (b)  The purpose of a grant under this section is to assist a

 494-2   community in alleviating conditions in the family and community

 494-3   that lead to juvenile crime.

 494-4         (b)  Section 98, Chapter 262, Acts of the 74th Legislature,

 494-5   Regular Session, 1995, is repealed.

 494-6         SECTION 21.04.  (a)  Subchapter C, Chapter 40, Human

 494-7   Resources Code, is amended to conform to Section 6.09(a), Chapter

 494-8   655, Acts of the 74th Legislature, Regular Session, 1995, by adding

 494-9   Section 40.0562 to read as follows:

494-10         Sec. 40.0562.  FEDERAL FUNDING FOR CERTAIN CHILDREN.

494-11   (a)  For purposes of Medicaid eligibility only, the department

494-12   shall classify as a "child in substitute care" each child who is in

494-13   the conservatorship of the state and placed in the home of a

494-14   relative.  A child classified as a "child in substitute care" under

494-15   this subsection is not automatically eligible to receive foster

494-16   care payments because of that classification.

494-17         (b)  The department shall ensure that each time study used to

494-18   allocate costs identifies all costs incurred on behalf of a child

494-19   if the child's case plan clearly indicates that substitute care is

494-20   the planned arrangement for that child.

494-21         (c)  The department shall claim federal financial

494-22   participation under Title IV-E, Social Security Act (42 U.S.C.

494-23   Section 670 et seq.), for all nonrecurring adoption expenses at the

494-24   highest rate authorized by federal law.  The department shall

 495-1   include all charges from state attorneys and state courts and any

 495-2   applicable overhead.  The department may claim the expenses as

 495-3   either administrative or training expenses depending on which

 495-4   classification results in a higher federal match.

 495-5         (b)  Section 6.09(a), Chapter 655, Acts of the 74th

 495-6   Legislature, Regular Session, 1995, is repealed.

 495-7         SECTION 21.05.  Section 8.004(a), Chapter 76, Acts of the

 495-8   74th Legislature, Regular Session, 1995, and Section 1.03, Chapter

 495-9   970, Acts of the 74th Legislature, Regular Session, 1995, are

495-10   repealed as duplicative of Section 1, Chapter 920,  Acts of the

495-11   74th Legislature, Regular Session, 1995.

495-12         SECTION 21.06.  The heading of Section 132.003, Human

495-13   Resources Code, is amended to conform to Section 9.09, Chapter 655,

495-14   Acts of the 74th Legislature, Regular Session, 1995, and Section 9,

495-15   Chapter 885, Acts of the 74th Legislature, Regular Session, 1995,

495-16   to read as follows:

495-17         Sec. 132.003.  LOCATION  [CO-LOCATION] OF OFFICES AND

495-18   FACILITIES.

495-19         SECTION 21.07.  (a)  Section 132.003(a), Human Resources

495-20   Code, is amended to conform to Section 9.09, Chapter 655, Acts of

495-21   the 74th Legislature, Regular Session, 1995, and Section 9,

495-22   Chapter 885, Acts of the 74th Legislature, Regular Session, 1995,

495-23   to read as follows:

495-24         (a)  As leases on office space expire, the Health and Human

 496-1   Services Commission shall determine the needs for space and the

 496-2   location of offices of the health and human services agencies to

 496-3   enable the commission to achieve a cost-effective, one-stop or

 496-4   service center method of service delivery.  [On receiving approval

 496-5   from the Health and Human Services Commission the administrative

 496-6   heads of two or more health and human services agencies with

 496-7   offices or facilities located in the same geographic region shall

 496-8   co-locate the offices or facilities if the results of the

 496-9   co-location study conducted by the agencies show that:]

496-10               [(1)  client access would be enhanced;]

496-11               [(2)  the cost of co-location is not greater than the

496-12   combined operating costs of the separate offices or facilities of

496-13   those agencies; and]

496-14               [(3)  the co-location would improve the efficiency of

496-15   the delivery of services.]

496-16         (b)  Section 9.09, Chapter 655, Acts of the 74th Legislature,

496-17   Regular Session, 1995, and Section 9,  Chapter 885, Acts of the

496-18   74th Legislature, Regular Session, 1995, are repealed.

496-19               ARTICLE 22.  CHANGES RELATING TO LABOR CODE

496-20         SECTION 22.01.  Section 217.007, Labor Code, as added by

496-21   Section 2, Chapter 611, Acts of the 74th Legislature, Regular

496-22   Session, 1995, is redesignated as Section 306.007, Labor Code, to

496-23   conform to Section 11.06, Chapter 655, Acts of the 74th

496-24   Legislature, Regular Session, 1995, and amended to correct a

 497-1   citation to read as follows:

 497-2         Sec. 306.007 [217.007].  Provision of Information on State

 497-3   Services for Ex-Offenders and Employers.  (a)  To assist in the

 497-4   reintegration into the labor force of persons formerly sentenced to

 497-5   the institutional division or the state jail division, the

 497-6   commission through Project Rio shall provide:

 497-7               (1)  to those persons:

 497-8                     (A)  information from local workforce development

 497-9   boards on job training and employment referral services;

497-10                     (B)  information from the Texas Commission on

497-11   Alcohol and Drug Abuse on substance abuse treatment services;

497-12                     (C)  information from the Texas Department of

497-13   Housing and Community Affairs on housing services;

497-14                     (D)  information from the Texas Veterans

497-15   Commission on services for veterans; and

497-16                     (E)  information from the Texas Department of

497-17   Human Services on tax refund voucher programs under Subchapter D,

497-18   Chapter 31, Human Resources Code; and

497-19               (2)  to the employers and potential employers of those

497-20   persons:

497-21                     (A)  information from the Texas Department of

497-22   Commerce on the enterprise zone program and smart jobs fund

497-23   program; and

497-24                     (B)  information from local workforce development

 498-1   boards on services listed in Section 2308.304, Government Code

 498-2   [4.05(a), Workforce and Economic Competitiveness Act (Article

 498-3   5190.7a, Vernon's Texas Civil Statutes)].

 498-4         (b)  The commission shall adopt a memorandum of understanding

 498-5   with each of the following agencies that establishes the respective

 498-6   responsibilities of the commission and the agencies in providing

 498-7   information described by Subsection (a) to persons formerly

 498-8   sentenced to the institutional division or the state jail division

 498-9   of the Texas Department of Criminal Justice, to employers or

498-10   potential employers of those persons, and to local workforce

498-11   development boards:

498-12               (1)  the Texas Commission on Alcohol and Drug Abuse;

498-13               (2)  the Texas Department of Housing and Community

498-14   Affairs;

498-15               (3)  the Texas Veterans Commission;

498-16               (4)  the Texas Department of Human Services;

498-17               (5)  the Texas Department of Commerce; and

498-18               (6)  the Council on Workforce and Economic

498-19   Competitiveness.

498-20         (c)  The commission shall coordinate the development of the

498-21   memoranda of understanding and shall prepare an annual report

498-22   describing the number of ex-offenders in the preceding year

498-23   receiving services under each memorandum.  The commission shall

498-24   file a copy of the annual report with the governor's office.

 499-1         SECTION 22.02.  Section 302.042, Labor Code, is amended to

 499-2   correct a citation to read as follows:

 499-3         Sec. 302.042.  Review of Local Plans; Recommendations.  The

 499-4   commission shall review the local [workforce training and services]

 499-5   plans developed under Section 2308.304, Government Code [4.05,

 499-6   Workforce and Economic Competitiveness Act (Article 5190.7a,

 499-7   Vernon's Texas Civil Statutes)], and shall make recommendations to

 499-8   the council regarding the implementation of those plans.

 499-9         SECTION 22.03.  Section 306.005, Labor Code, is amended to

499-10   conform to Section 92, Chapter 262, Acts of the 74th Legislature,

499-11   Regular Session, 1995, and Section 3.018, Chapter 321, Acts of the

499-12   74th Legislature, Regular Session, 1995, to read as follows:

499-13         Sec. 306.005.  Memorandum of Understanding--Contents.  (a)

499-14   The memorandum of understanding between the department and the

499-15   commission must establish the role of:

499-16               (1)  the institutional division and the state jail

499-17   division in ascertaining and encouraging an inmate's chances for

499-18   employment by:

499-19                     (A)  providing vocational and educational

499-20   assessment for the person while incarcerated;

499-21                     (B)  developing a skills enhancement program for

499-22   the person while incarcerated, in cooperation with other

499-23   governmental, educational, and private entities, using available

499-24   public or private financial resources authorized by statute; and

 500-1                     (C)  referring the person on release to the

 500-2   project through the person's parole officer or supervision officer;

 500-3               (2)  the community justice assistance division and the

 500-4   pardons and paroles division of the department in:

 500-5                     (A)  encouraging and referring persons to the

 500-6   project; and

 500-7                     (B)  ensuring that those persons participate in

 500-8   the project and avail themselves of its services; and

 500-9               (3)  the commission in developing and maintaining a

500-10   statewide network for finding positions of employment that require

500-11   the skills possessed by project participants and in helping those

500-12   participants to secure employment.

500-13         (b) [(c)]  The memorandum of understanding between the Texas

500-14   Youth Commission and the commission must establish the roles of the

500-15   institutional and community services division in the Texas Youth

500-16   Commission and the role of the commission in the same manner the

500-17   roles of the department and commission are established under

500-18   Subsection [Subsections] (a) [and (b)].

500-19         SECTION 22.04.  Article 8308, Revised Statutes, is repealed

500-20   because of the liquidation of the Texas Employers' Insurance

500-21   Association.

500-22         ARTICLE 23.  CHANGES RELATING TO LOCAL GOVERNMENT CODE

500-23         SECTION 23.01.  Section 43.0565(b), Local Government Code, is

500-24   amended to correct a reference to read as follows:

 501-1         (b)  A municipality with a population of more than 1.5

 501-2   million that includes within its boundaries annexed areas without

 501-3   water service, sewer service, or both:

 501-4               (1)  shall develop a service plan that:

 501-5                     (A)  must identify developed tracts in annexed

 501-6   areas of the municipality that do not have water service, sewer

 501-7   service, or both and must provide a procedure for providing water

 501-8   service, sewer service, or both to those developed tracts;

 501-9                     (B)  must establish a timetable for providing

501-10   service based on a priority system that considers potential health

501-11   hazards, population density, the number of existing buildings, the

501-12   reasonable cost of providing service, and the desires of the

501-13   residents;

501-14                     (C)  must include a capital improvements plan

501-15   committing the necessary financing;

501-16                     (D)  may relieve the municipality from an

501-17   obligation to provide water service, sewer service, or both in an

501-18   area described in the service plan if a majority of the households

501-19   in the area sign a petition stating they do not want to receive the

501-20   services; and

501-21                     (E)  may require property owners to connect to

501-22   service lines constructed to serve their area;

501-23               (2)  shall provide water service, sewer service, or

501-24   both to at least 75 percent of the residential buildings in annexed

 502-1   areas of the municipality that did not have water service, sewer

 502-2   service, or both on September 1, 1991;

 502-3               (3)  shall provide water service to each area annexed

 502-4   before January 1, 1993, if the area or subdivision as described in

 502-5   the service plan contains at least 25 residences without water

 502-6   service, unless a majority of the households in the area state in a

 502-7   petition that they do not want municipal water service; and

 502-8               (4)  is subject to the penalty prescribed by Section

 502-9   5.235(n)(6) [5.235(n)(7)(C)], Water Code, for the failure to

502-10   provide services.

502-11         SECTION 23.02.  (a)  Chapter 212, Local Government Code, is

502-12   amended to codify Article 1010a, Revised Statutes, by adding

502-13   Subchapter D to read as follows:

502-14            SUBCHAPTER D.  REGULATION OF PROPERTY DEVELOPMENT

502-15                   PROHIBITED IN CERTAIN CIRCUMSTANCES

502-16         Sec. 212.101.  APPLICATION OF SUBCHAPTER TO CERTAIN HOME-RULE

502-17   MUNICIPALITY.  This subchapter applies only to a home-rule

502-18   municipality that:

502-19               (1)  has a charter provision allowing for

502-20   limited-purpose annexation; and

502-21               (2)  has annexed territory for a limited purpose.

502-22         Sec. 212.102.  DEFINITIONS.  In this subchapter:

502-23               (1)  "Affected area" means an area that is:

502-24                     (A)  in a municipality or a municipality's

 503-1   extraterritorial jurisdiction;

 503-2                     (B)  in a county other than the county in which a

 503-3   majority of the territory of the municipality is located;

 503-4                     (C)  within the boundaries of one or more school

 503-5   districts other than the school district in which a majority of the

 503-6   territory of the municipality is located; and

 503-7                     (D)  within the area of or within 1,500 feet of

 503-8   the boundary of an assessment road district in which there are two

 503-9   state highways.

503-10               (2)  "Assessment road district" means a road district

503-11   that has issued refunding bonds and that has imposed assessments on

503-12   each parcel of land under Section 2.018, Article 726, Revised

503-13   Statutes.

503-14               (3)  "State highway" means a highway that is part of

503-15   the state highway system under Section 221.001, Transportation

503-16   Code.

503-17         Sec. 212.103.  TRAFFIC OR TRAFFIC OPERATIONS.  (a)  A

503-18   municipality may not deny, limit, delay, or condition the use or

503-19   development of land, any part of which is within an affected area,

503-20   because of:

503-21               (1)  traffic or traffic operations that would result

503-22   from the proposed use or development of the land; or

503-23               (2)  the effect that the proposed use or development of

503-24   the land would have on traffic or traffic operations.

 504-1         (b)  In this section, an action to deny, limit, delay, or

 504-2   condition the use or development of land includes a decision or

 504-3   other action by the governing body of the municipality or by a

 504-4   commission, board, department, agency, office, or employee of the

 504-5   municipality related to zoning, subdivision, site planning, the

 504-6   construction or building permit process, or any other municipal

 504-7   process, approval, or permit.

 504-8         (c)  This subchapter does not prevent a municipality from

 504-9   exercising its authority to require the dedication of right-of-way.

504-10         Sec. 212.104.  PROVISION NOT ENFORCEABLE.  A provision in a

504-11   covenant or agreement relating to land in an affected area that

504-12   would have the effect of denying, limiting, delaying, or

504-13   conditioning the use or development of the land because of its

504-14   effect on traffic or traffic operations may not be enforced by a

504-15   municipality.

504-16         Sec. 212.105.  SUBCHAPTER CONTROLS.  This subchapter controls

504-17   over any other law relating to municipal regulation of land use or

504-18   development based on traffic.

504-19         (b)  Article 1010a, Revised Statutes, is repealed.

504-20         SECTION 23.03.  (a)  Subtitle C, Title 11, Local Government

504-21   Code, is amended to codify the Crime Control and Prevention

504-22   District Act (Article 2370c-4, Vernon's Texas Civil Statutes) by

504-23   adding Chapter 363 to read as follows:

504-24          CHAPTER 363.  CRIME CONTROL AND PREVENTION DISTRICTS

 505-1                    SUBCHAPTER A.  GENERAL PROVISIONS

 505-2         Sec. 363.001.  SHORT TITLE.  This chapter may be cited as the

 505-3   Crime Control and Prevention District Act.

 505-4         Sec. 363.002.  DEFINITIONS.  In this chapter:

 505-5               (1)  "Board" means the board of directors of a

 505-6   district.

 505-7               (2)  "Director" means a member of a board.

 505-8               (3)  "District" means a crime control and prevention

 505-9   district created under this chapter.

505-10         Sec. 363.003.  LIABILITY OF STATE.  The state is not

505-11   obligated for the support, maintenance, or dissolution of a crime

505-12   control district created under this chapter.

505-13            (Sections 363.004-363.050 reserved for expansion

505-14         SUBCHAPTER B.  CREATION OF DISTRICT AND TEMPORARY BOARD

505-15         Sec. 363.051.  POLITICAL SUBDIVISIONS AUTHORIZED TO CREATE

505-16   DISTRICT.  (a)  The creation of a crime control and prevention

505-17   district may be proposed under this chapter by a majority vote of

505-18   the governing body of a:

505-19               (1)  county with a population of more than 130,000; or

505-20               (2)  municipality that is partially or wholly located

505-21   in a county with a population of more than one million.

505-22         (b)  The governing body may create a district composed of all

505-23   or part of the political subdivision governed by that body.  A

505-24   district created by a county may not contain area in more than one

 506-1   county.

 506-2         Sec. 363.052.  TEMPORARY BOARD.  (a)  Not later than the 60th

 506-3   day after the date a district is proposed to be created by a

 506-4   governing body, the governing body shall appoint seven persons that

 506-5   reside in the proposed district to serve as temporary directors of

 506-6   the district.

 506-7         (b)  Not later than the 75th day after the date the district

 506-8   is proposed, the temporary board shall organize.  The directors of

 506-9   the temporary board shall elect one of the directors as presiding

506-10   officer of the board not later than the 15th day after the date of

506-11   the appointments under Subsection (a).

506-12         (c)  A temporary director who is not serving as presiding

506-13   officer may designate another person to serve in the director's

506-14   place.

506-15         (d)  The governing body shall fill a vacancy in the office of

506-16   a temporary director in the same manner that it originally filled

506-17   the vacant position.

506-18         Sec. 363.053.  ELECTION REQUIRED.  A district proposed by the

506-19   governing body may be created and a tax may be authorized only if

506-20   the creation and the tax are approved by a majority of the

506-21   qualified voters of the proposed district voting at an election

506-22   called and held for that purpose.

506-23         Sec. 363.054.  ELECTION ORDER.  (a)  After a majority of the

506-24   temporary directors of a proposed district have approved a budget

 507-1   plan and a crime control plan in accordance with Section 363.061, a

 507-2   majority of the temporary directors may order that a creation

 507-3   election be held.

 507-4         (b)  An order calling an election under Subsection (a) must

 507-5   state:

 507-6               (1)  the nature of the election, including the

 507-7   proposition that is to appear on the ballot;

 507-8               (2)  the date of the election;

 507-9               (3)  the hours during which the polls will be open;

507-10               (4)  the location of the polling places;

507-11               (5)  in summary form, the approved budget plan and

507-12   crime control plan of the proposed district; and

507-13               (6)  the proposed rate of the sales and use tax for the

507-14   district.

507-15         Sec. 363.055.  SALES TAX:  RATE; LIMITATION; MUNICIPAL

507-16   AUTHORITY.  (a)  The proposed rate for the district sales and use

507-17   tax imposed under Subchapter B, Chapter 323, Tax Code, may be only:

507-18               (1)  one-fourth of one percent; or

507-19               (2)  one-half of one percent.

507-20         (b)  A sales and use tax approved under this chapter may be

507-21   charged in addition to any other sales and use tax authorized by

507-22   law and is included in computing a combined sales and use tax rate

507-23   for purposes of any limitation provided by law on the maximum

507-24   combined sales and use tax rate of political subdivisions.

 508-1         (c)  A municipality that creates a district shall adopt a

 508-2   sales and use tax under Section 323.105, Tax Code, for financing

 508-3   the operation of the district in the same manner as a county under

 508-4   that section.

 508-5         Sec. 363.056.  NOTICE OF ELECTION.  In addition to the notice

 508-6   required by Section 4.003(c), Election Code, the temporary

 508-7   directors of a proposed district shall give notice of an election

 508-8   to create a district by publishing a substantial copy of the

 508-9   election order in a newspaper with general circulation in the

508-10   proposed district once a week for two consecutive weeks.  The first

508-11   publication must appear before the 35th day before the date set for

508-12   the election.

508-13         Sec. 363.057.  ELECTION DATE.  (a)  The election shall be

508-14   held after the 34th day and before the 61st day after the date on

508-15   which the election is ordered.

508-16         (b)  The requirement that an election be held on a uniform

508-17   election date as prescribed by Section 41.001(a), Election Code,

508-18   does not apply to an election creating a district under this

508-19   chapter.

508-20         Sec. 363.058.  BALLOT PROPOSITION.  The ballot for an

508-21   election to create a district shall be printed to permit voting for

508-22   or against the proposition:  "The creation of the ________ (name of

508-23   the political subdivision proposing to create the district) Crime

508-24   Control and Prevention District dedicated to crime reduction

 509-1   programs and the adoption of a proposed local sales and use tax at

 509-2   a rate of ______ (rate specified in the election order)."

 509-3         Sec. 363.059.  CANVASSING RETURNS.  (a)  Not earlier than the

 509-4   second day or later than the 13th day after the date of the

 509-5   election, the temporary board of a proposed district shall meet and

 509-6   canvass the returns of the election.

 509-7         (b)  If a majority of the votes cast favor the creation of

 509-8   the district, the temporary board shall issue an order declaring

 509-9   the district created.

509-10         (c)  If less than a majority of the votes cast favor the

509-11   creation of the district, the temporary board may order another

509-12   election on the matter not earlier than the first anniversary of

509-13   the date of the preceding election.

509-14         Sec. 363.060.  DISSOLUTION OF TEMPORARY BOARD.  If a district

509-15   has not been created under this chapter before the fifth

509-16   anniversary of the date a district is proposed by the governing

509-17   body, the temporary board is dissolved on that date and a district

509-18   may not be created under this chapter.

509-19         Sec. 363.061.  CRIME CONTROL PLAN AND BUDGET PLAN.  (a)  The

509-20   temporary board of a proposed district shall formulate and approve

509-21   a two-year crime control plan and a two-year budget plan.  The

509-22   crime control plan must include:

509-23               (1)  a detailed list of the crime control and crime

509-24   prevention strategies to be supported by the district; and

 510-1               (2)  the method of annually evaluating the

 510-2   effectiveness and efficiency of individual crime control and crime

 510-3   prevention strategies.

 510-4         (b)  The budget plan must include:

 510-5               (1)  the amount of money budgeted by the district for

 510-6   each crime control and crime prevention strategy;

 510-7               (2)  the amount of money budgeted by the district and

 510-8   the percentage of the total budget of the district for

 510-9   administration, with individual amounts showing the cost of the

510-10   administration that would be conducted by the district and the cost

510-11   of administration that would be conducted by private or public

510-12   entities;

510-13               (3)  the estimated amount of money available to the

510-14   district from all sources during the ensuing year;

510-15               (4)  the amount of balances expected at the end of the

510-16   years for which the budget is prepared; and

510-17               (5)  the estimated tax rate that will be required.

510-18         (c)  The crime control plan and budget plan must be adopted

510-19   in the same manner as provided for adoption of a proposed annual

510-20   budget under Section 363.204.

510-21         (d)  The temporary board shall coordinate its efforts with

510-22   local law enforcement officials, the local community supervision

510-23   and corrections department, and the local juvenile probation

510-24   department in developing its crime control plan and budget plan.

 511-1         Sec. 363.062.  FINANCING CREATION OF DISTRICT.  (a)  Except

 511-2   as provided by Subsections (b) and (c), the costs of creating a

 511-3   district by a county to be composed of the whole county shall be

 511-4   allocated as follows:

 511-5               (1)  the county shall pay 40 percent;

 511-6               (2)  the municipality having the largest population in

 511-7   the county shall pay 40 percent; and

 511-8               (3)  the municipality having the second largest

 511-9   population in the county shall pay 20 percent.

511-10         (b)  The county and the two municipalities may contract for a

511-11   division of the costs of creating a district that is different from

511-12   the division of costs described by Subsection (a).

511-13         (c)  If a district is proposed for only a part of the county,

511-14   the county shall pay the entire cost of creating the district.

511-15         (d)  A municipality creating a district shall pay the entire

511-16   cost of creating the district.

511-17         (e)  If a district is created, the district shall reimburse

511-18   each political subdivision that paid creation costs for the actual

511-19   expenses the subdivision incurred in the creation of the district.

511-20         Sec. 363.063.  DONATIONS, GIFTS, AND ENDOWMENTS.  On behalf

511-21   of a district, the temporary board may accept donations, gifts, and

511-22   endowments to be held in trust for any purpose and under any

511-23   direction, limitation, or provision prescribed in writing by the

511-24   donor that is consistent with this chapter and the proper

 512-1   management of the district.

 512-2            (Sections 363.064-363.100 reserved for expansion

 512-3                 SUBCHAPTER C.  DISTRICT ADMINISTRATION

 512-4         Sec. 363.101.  BOARD OF DIRECTORS.  (a)  A district is

 512-5   governed by a board of seven directors appointed in the same manner

 512-6   as provided for the selection of temporary directors under Section

 512-7   363.052(a).

 512-8         (b)  Board members serve staggered two-year terms that expire

 512-9   September 1, except that the initial appointees under this section

512-10   shall draw lots to determine:

512-11               (1)  the three directors to serve terms that expire on

512-12   September 1 of the first year following creation of the district;

512-13   and

512-14               (2)  the four directors to serve terms that expire on

512-15   September 1 of the second year following creation of the district.

512-16         (c)  A director, other than the president or vice president,

512-17   may designate a person to serve in the director's absence.

512-18         (d)  A vacancy in the office of director shall be filled for

512-19   the unexpired term in the same manner that the vacant position was

512-20   originally filled.

512-21         (e)  A member of the board is not liable for civil damages or

512-22   criminal prosecution for any act performed in good faith in the

512-23   execution of duties as a board member or for an action taken by the

512-24   board.

 513-1         Sec. 363.102.  FILING OF OFFICER'S BOND.  (a)  Before

 513-2   assuming the duties of the office, each director or officer,

 513-3   including a person designated under Section 363.101(c), must

 513-4   execute a bond for $5,000 payable to the district, conditioned on

 513-5   the faithful performance of the person's duties as director or

 513-6   officer.

 513-7         (b)  The bond shall be kept in the permanent records of the

 513-8   district.

 513-9         (c)  The board may pay for the bonds of the directors or

513-10   officers with district funds.

513-11         (d)  The board and the district may issue or sell bonds

513-12   conditioned on the faithful performance of a person's duties as a

513-13   director as provided by this section.

513-14         Sec. 363.103.  OFFICERS.  (a)  The board shall elect from

513-15   among its members a president and vice president.  The board shall

513-16   appoint a secretary.  The secretary need not be a director.  The

513-17   person who performs the duties of auditor for the political

513-18   subdivision shall serve as treasurer for the district.

513-19         (b)  Each officer of the board serves for a term of one year.

513-20         (c)  A vacancy in a board office shall be filled for the

513-21   unexpired term by the board.

513-22         Sec. 363.104.  COMPENSATION.  A director or officer serves

513-23   without compensation, but a director or officer may be reimbursed

513-24   for actual expenses incurred in the performance of official duties.

 514-1   Those expenses must be reported in the district's minute book or

 514-2   other district record and must be approved by the board.

 514-3         Sec. 363.105.  VOTING REQUIREMENT.  A concurrence of a

 514-4   majority of the members of the board is necessary in matters

 514-5   relating to the business of a district.  A two-thirds majority vote

 514-6   of the board is required to reject any application for funding

 514-7   available under this chapter.

 514-8         Sec. 363.106.  CONTRACT FOR ADMINISTRATIVE ASSISTANCE.  The

 514-9   board may contract with a public agency or private vendor to assist

514-10   in the administration or management of the district or to assist in

514-11   the review of applications for funding available under this

514-12   chapter.

514-13            (Sections 363.107-363.150 reserved for expansion

514-14                    SUBCHAPTER D.  POWERS AND DUTIES

514-15         Sec. 363.151.  DISTRICT RESPONSIBILITIES; LIMITATIONS ON

514-16   EXPENDITURES.  (a)  The district may finance all the costs of a

514-17   crime control and crime prevention program, including the costs for

514-18   personnel, administration, expansion, enhancement, and capital

514-19   expenditures.

514-20         (b)  The program may include police and law enforcement

514-21   related programs, including:

514-22               (1)  a multijurisdiction crime analysis center;

514-23               (2)  mobilized crime analysis units;

514-24               (3)  countywide crime stoppers telephone lines;

 515-1               (4)  united property-marking programs;

 515-2               (5)  home security inspection programs;

 515-3               (6)  an automated fingerprint analysis center;

 515-4               (7)  an enhanced radio dispatch center;

 515-5               (8)  a computerized criminal history system;

 515-6               (9)  enhanced information systems programs;

 515-7               (10)  a drug and chemical disposal center;

 515-8               (11)  a county crime lab or medical examiner's lab; and

 515-9               (12)  a regional law enforcement training center.

515-10         (c)  The program may include community-related crime

515-11   prevention strategies, including:

515-12               (1)  block watch programs;

515-13               (2)  a community crime resistance program;

515-14               (3)  school-police programs;

515-15               (4)  senior citizen community safety programs;

515-16               (5)  senior citizen anticrime networks;

515-17               (6)  citizen crime-reporting projects;

515-18               (7)  home alert programs;

515-19               (8)  a police-community cooperation program;

515-20               (9)  a radio alert program; and

515-21               (10)  ride along programs.

515-22         (d)  The program may include specific treatment and

515-23   prevention programs, including:

515-24               (1)  positive peer group interaction programs;

 516-1               (2)  drug and alcohol awareness programs;

 516-2               (3)  countywide family violence centers;

 516-3               (4)  work incentive programs;

 516-4               (5)  social learning centers;

 516-5               (6)  transitional aid centers and preparole centers;

 516-6               (7)  guided group interaction programs;

 516-7               (8)  social development centers;

 516-8               (9)  street gang intervention centers;

 516-9               (10)  predelinquency intervention centers;

516-10               (11)  school relations bureaus;

516-11               (12)  integrated community education systems;

516-12               (13)  steered straight programs;

516-13               (14)  probation subsidy programs;

516-14               (15)  Juvenile Offenders Learn Truth (JOLT) programs;

516-15               (16)  reformatory visitation programs;

516-16               (17)  juvenile awareness programs;

516-17               (18)  shock incarceration;

516-18               (19)  shock probation;

516-19               (20)  community restitution programs;

516-20               (21)  team probation;

516-21               (22)  electronic monitoring programs;

516-22               (23)  community improvement programs;

516-23               (24)  at-home arrest;

516-24               (25)  victim restitution programs;

 517-1               (26)  additional probation officers; and

 517-2               (27)  additional parole officers.

 517-3         (e)  The program may include court and prosecution services,

 517-4   including:

 517-5               (1)  court watch programs;

 517-6               (2)  community arbitration and mediation centers;

 517-7               (3)  night prosecutors programs;

 517-8               (4)  automated legal research systems;

 517-9               (5)  an automated court management system;

517-10               (6)  a criminal court administrator;

517-11               (7)  an automated court reporting system;

517-12               (8)  additional district courts that are required by

517-13   law to give preference to criminal cases, judges, and staff; and

517-14               (9)  additional prosecutors and staff.

517-15         (f)  The program may include additional jails, jailers,

517-16   guards, and other necessary staff.

517-17         Sec. 363.152.  COORDINATION; EVALUATION; GRANTS.  (a)  The

517-18   district shall coordinate its efforts with the local community

517-19   justice council in developing its crime control and crime

517-20   prevention program.

517-21         (b)  The district shall fund an annual evaluation program to

517-22   study the impact, efficiency, and effectiveness of new or expanded

517-23   crime control and crime prevention programs.

517-24         (c)  The board may seek the assistance of the Office of

 518-1   State-Federal Relations in identifying and applying for federal

 518-2   grants for criminal justice programs.  The board shall notify the

 518-3   appropriate council of government of any intent to submit

 518-4   applications for federal funds and for inclusion in the regional

 518-5   criminal justice planning process.

 518-6         (d)  The district may apply for and receive grants for

 518-7   criminal and juvenile justice programs from the criminal justice

 518-8   division in the governor's office.

 518-9         Sec. 363.153.  GENERAL BOARD POWER OVER FUNDS.  The board

518-10   shall manage, control, and administer the district funds except as

518-11   provided by Section 363.205.

518-12         Sec. 363.154.  USE OF REVENUE.  (a)  In a district created by

518-13   a county, the board, from the sales and use tax revenue distributed

518-14   to the district under Section 323.105, Tax Code, must budget, to

518-15   the extent practicable:

518-16               (1)  not less than 49.75 percent of the revenue to

518-17   finance programs for which applications are submitted under Section

518-18   363.209(a);

518-19               (2)  not less than 24.87 percent of the revenue to

518-20   finance programs for which applications are submitted under Section

518-21   363.209(b); and

518-22               (3)  not less than 24.87 percent of the revenue to be

518-23   distributed under Subsection (b) or (d).

518-24         (b)  In a district containing more than one municipality, the

 519-1   funds under Subsection (a)(3) shall be apportioned to the

 519-2   municipalities of the district based on a formula that averages the

 519-3   proportionate percentage of:

 519-4               (1)  the population of a municipality to the total

 519-5   population of the district;

 519-6               (2)  the index crime reported in each municipality in

 519-7   the district to the total index crime reported in the district; and

 519-8               (3)  the sales tax generated by each municipality to

 519-9   the total sales tax generated in the district based on the amount

519-10   collected during the preceding year.

519-11         (c)  The regional council of governments of a county shall

519-12   compute the formula described by Subsection (b).  The regional

519-13   council of governments shall provide the population estimates and

519-14   the index crime statistics that are required to compute the

519-15   formula.  The regional council of governments shall provide the

519-16   district with a statement of the amounts that the district must

519-17   make available to each municipality in a district before the board

519-18   adopts the budget and at that time also shall provide the district

519-19   with a detailed summary of the computation.

519-20         (d)  In a district containing only one municipality, the

519-21   funds under Subsection (a)(3) shall be apportioned to the

519-22   municipality.

519-23         (e)  In a district created by a municipality, the board may

519-24   spend the revenue derived from the sales and use tax distributed

 520-1   under Section 323.105, Tax Code, only for a purpose authorized by

 520-2   Section 363.151.

 520-3         (f)  The budget distribution described by Subsection (a) or

 520-4   (e) shall be computed after a county or municipality has been

 520-5   properly reimbursed for expenses described by Section 363.062.

 520-6         Sec. 363.155.  RULES AND PROCEDURES.  (a)  A board may adopt

 520-7   rules governing district-funded programs and the functions of

 520-8   district staff.

 520-9         (b)  The board may prescribe accounting and control

520-10   procedures for the district.

520-11         (c)  The board is subject to the administrative procedure

520-12   law, Chapter 2001, Government Code.

520-13         Sec. 363.156.  PURCHASING.  (a)  Except as provided by

520-14   Subsection (b), the board may prescribe the method of making

520-15   purchases and expenditures by and for the district.

520-16         (b)  To the extent competitive bidding procedures in Title 8

520-17   apply, the board may not enter purchasing contracts that involve

520-18   spending more than $15,000 unless the board complies with:

520-19               (1)  Subchapter C, Chapter 262, if the district was

520-20   created by a county; or

520-21               (2)  Chapter 252, if the district was created by a

520-22   municipality.

520-23         (c)  If the political subdivision that created the district

520-24   has a purchasing agent authorized by law, that agent shall serve as

 521-1   purchasing agent for the district.

 521-2         Sec. 363.157.  PROPERTY TO BE USED IN ADMINISTRATION.  The

 521-3   board may lease or acquire in another manner facilities, equipment,

 521-4   or other property for the sole purpose of administering the

 521-5   district.

 521-6         Sec. 363.158.  REIMBURSEMENT FOR SERVICES.  (a)  A county or

 521-7   municipality located entirely outside the boundaries of the

 521-8   district shall, on request, reimburse a district for the district's

 521-9   cost of including in a district program a resident of that county

521-10   or municipality.

521-11         (b)  The board may require reimbursement from the state for

521-12   the district's cost of including in a district program or facility

521-13   a person who is a resident of the state but is not a resident of

521-14   the district.

521-15         (c)  On behalf of the district, the board may contract with a

521-16   municipal or county government or with the state or federal

521-17   government for the municipal, county, state, or federal government

521-18   to reimburse the district for including a person in a district

521-19   program.

521-20         Sec. 363.159.  SERVICE CONTRACTS.  When acting on behalf of

521-21   the district, the board may contract with the following entities to

521-22   furnish the staff, facilities, equipment, programs, and services

521-23   the board considers necessary for the effective operation of the

521-24   district:

 522-1               (1)  a municipality, county, special district, or other

 522-2   political subdivision of the state;

 522-3               (2)  a state or federal agency;

 522-4               (3)  an individual; or

 522-5               (4)  an entity in the private sector.

 522-6         Sec. 363.160.  DONATIONS, GIFTS, AND ENDOWMENTS.  On behalf

 522-7   of the district, the board may accept donations, gifts, and

 522-8   endowments to be held in trust for any purpose and under any

 522-9   direction, limitation, or other provision prescribed in writing by

522-10   the donor that is consistent with this chapter and the proper

522-11   management of the district.

522-12         Sec. 363.161.  AUTHORITY TO SUE AND BE SUED.  The board may

522-13   sue and be sued in the name of the district.

522-14            (Sections 363.162-363.200 reserved for expansion

522-15                    SUBCHAPTER E.  DISTRICT FINANCES

522-16         Sec. 363.201.  FISCAL YEAR.  (a)  The board shall establish

522-17   the fiscal year for the district, and the district shall operate on

522-18   the basis of that year.

522-19         (b)  The fiscal year may not be changed more than once in a

522-20   24-month period.

522-21         Sec. 363.202.  AUDITS AND DISTRICT RECORDS.  (a)  The board

522-22   shall have an annual audit made of the financial condition of the

522-23   district by an independent auditor.

522-24         (b)  The annual audit and other district records shall be

 523-1   open to inspection during regular business hours at the principal

 523-2   office of the district.

 523-3         Sec. 363.203.  ANNUAL BUDGET PROPOSAL.  (a)  The board shall

 523-4   propose an annual budget based on the apportionment described by

 523-5   Section 363.154.  The board shall consider the applications for

 523-6   program funding in preparing the proposed budget.

 523-7         (b)  The proposed budget must contain a complete financial

 523-8   statement, including a statement of:

 523-9               (1)  the outstanding obligations of the district;

523-10               (2)  the amount of cash on hand to the credit of each

523-11   fund of the district;

523-12               (3)  the amount of money received by the district from

523-13   all sources during the previous year;

523-14               (4)  the estimated amount of money available to the

523-15   district from all sources during the current fiscal year;

523-16               (5)  the amount of money needed to fund programs

523-17   approved for funding by the board;

523-18               (6)  the amount of money requested for programs that

523-19   were not approved for funding by the board;

523-20               (7)  the tax rate for the next fiscal year;

523-21               (8)  the amount of the balances expected at the end of

523-22   the year in which the budget is being prepared; and

523-23               (9)  the estimated amount of revenues and balances

523-24   available to cover the proposed budget.

 524-1         Sec. 363.204.  ADOPTION OF BUDGET BY BOARD.  (a)  Not later

 524-2   than the 100th day before the date each fiscal year begins, the

 524-3   board shall hold a public hearing on the proposed annual budget.

 524-4         (b)  The board shall publish notice of the hearing in a

 524-5   newspaper with general circulation in the district not later than

 524-6   the 10th day before the date of the hearing.

 524-7         (c)  Any resident of the district is entitled to be present

 524-8   and participate at the hearing.

 524-9         (d)  Not later than the 80th day before the date each fiscal

524-10   year begins, the board shall adopt a budget.  The board may make

524-11   any changes in the proposed budget that in its judgment the

524-12   interests of the taxpayers demand.

524-13         (e)  Not later than the 10th day after the date the budget is

524-14   adopted, the board shall submit the budget to the governing body of

524-15   the political subdivision that created the district.

524-16         (f)  The board by rule may adopt procedures for adopting a

524-17   budget different from the procedures outlined in this subchapter,

524-18   but the board must hold public hearings relating to the budget.

524-19         Sec. 363.205.  APPROVAL OF BUDGET BY GOVERNING BODY OF

524-20   CREATING POLITICAL SUBDIVISION.  (a)  Not later than the 45th day

524-21   before the date each fiscal year begins, the governing body of the

524-22   political subdivision that created the district shall hold a public

524-23   hearing on the budget adopted by the board and submitted to the

524-24   governing body.

 525-1         (b)  The governing body must publish notice of the hearing in

 525-2   a newspaper with general circulation in the district not later than

 525-3   the 10th day before the date of the hearing.

 525-4         (c)  Any resident of the district is entitled to be present

 525-5   and to participate at the hearing.

 525-6         (d)  Not later than the 30th day before the date the fiscal

 525-7   year begins, the governing body shall approve or reject the budget

 525-8   submitted by the board.  The governing body may not amend the

 525-9   budget.

525-10         (e)  If the governing body rejects the budget submitted by

525-11   the board, the governing body and the board shall meet and together

525-12   amend and approve the budget before the beginning of the fiscal

525-13   year.

525-14         (f)  The budget may be amended after the beginning of the

525-15   fiscal year on approval by the board and the governing body.

525-16         Sec. 363.206.  LIMITATIONS ON EXPENDITURES AND INVESTMENTS.

525-17   (a)  Money may be spent only for an expense included in the annual

525-18   budget or an amendment to it.

525-19         (b)  A district may not incur a debt payable from revenues of

525-20   the district other than the revenues on hand or to be on hand in

525-21   the current or immediately following fiscal year of the district.

525-22         (c)  The board may not invest district funds in funds or

525-23   securities other than those specified by Article 836 or 837,

525-24   Revised Statutes, or by Chapter 2256, Government Code.

 526-1         Sec. 363.207.  ACCOUNT OF DISBURSEMENTS OF DISTRICT.  Not

 526-2   later than the 60th day after the last day of each fiscal year, an

 526-3   administrator shall prepare for the board a sworn statement of the

 526-4   amount of money that belongs to the district and an account of the

 526-5   disbursements of that money.

 526-6         Sec. 363.208.  DEPOSIT OF FUNDS.  (a)  The board shall

 526-7   deposit district funds in a special account in the treasury of the

 526-8   political subdivision that created the district.

 526-9         (b)  District funds, other than those invested as provided by

526-10   Section 363.206(c), shall be deposited as received in the treasury

526-11   of the political subdivision and must remain on deposit.

526-12         (c)  The board shall reimburse the political subdivision for

526-13   any costs, other than personnel costs, the political subdivision

526-14   incurs for performing the duties under this section.

526-15         Sec. 363.209.  APPLICATIONS FOR PROGRAM FUNDING.  (a)  An

526-16   officer of the political subdivision that created the district or

526-17   the head of a department of that political subdivision may, with

526-18   the consent of the political subdivision, apply to the board for

526-19   funding of a program as described by Section 363.151.

526-20         (b)  If the district was created by a county, the chief

526-21   administrative officer of a municipality that is completely or

526-22   partly located within the district may, with the consent of the

526-23   governing body of the municipality, apply to the board for funding

526-24   of a program as described by Section 363.151.

 527-1         (c)  An application under this section must be submitted not

 527-2   later than the 140th day before the date the fiscal year begins,

 527-3   unless an exception has been adopted by rule.

 527-4         (d)  The board by rule may adopt application procedures.

 527-5         Sec. 363.210.  BONDS PROHIBITED.  The board may not issue or

 527-6   sell general obligation bonds, revenue bonds, or refunding bonds.

 527-7            (Sections 363.211-363.250 reserved for expansion

 527-8        SUBCHAPTER F.  REFERENDUM ON CONTINUATION OR DISSOLUTION

 527-9                               OF DISTRICT

527-10         Sec. 363.251.  REFERENDUM AUTHORIZED.  (a)  The board may

527-11   hold a referendum on the question of whether to:

527-12               (1)  continue the district; or

527-13               (2)  dissolve the district.

527-14         (b)  A board may order a referendum authorized by this

527-15   subchapter on its own motion by a majority vote of its members.

527-16         (c)  The board shall order a referendum authorized by this

527-17   subchapter:

527-18               (1)  on presentation of a petition that requests

527-19   continuation or dissolution of the district and complies with the

527-20   requirements of Sections 363.252-363.256; or

527-21               (2)  if a majority of the governing body of the

527-22   political subdivision that created the district by resolution

527-23   requests a referendum on continuation or dissolution after notice

527-24   and a public hearing on the matter.

 528-1         (d)  The board may not hold a referendum under this

 528-2   subchapter earlier than the fifth anniversary of the date the

 528-3   district was created or earlier than the third anniversary of the

 528-4   date of the last continuation or dissolution referendum.

 528-5         (e)  For a continuation referendum, the ballot shall be

 528-6   printed to permit voting for or against the proposition: "Whether

 528-7   the ____________ (name of the political subdivision that created

 528-8   the district) Crime Control and Prevention District should be

 528-9   continued and the crime control and prevention district sales and

528-10   use tax should be continued."

528-11         (f)  For a dissolution referendum, the ballot shall be

528-12   printed to permit voting for or against the proposition: "Whether

528-13   the ____________ (name of the political subdivision that created

528-14   the district) Crime Control and Prevention District should be

528-15   dissolved and the crime control and prevention district sales and

528-16   use tax should be abolished."

528-17         Sec. 363.252.  APPLICATION FOR PETITION.  (a)  On written

528-18   application of 10 or more registered voters of the district, the

528-19   clerk of the political subdivision that created the district shall

528-20   issue to the applicants a petition to be circulated among

528-21   registered voters for their signatures.

528-22         (b)  To be valid, an application for a petition to continue

528-23   the district must contain:

528-24               (1)  the following heading:  "Application for a

 529-1   Petition for a Local Option Referendum to Continue the Crime

 529-2   Control and Prevention District and to Continue the Crime Control

 529-3   and Prevention District Sales and Use Tax";

 529-4               (2)  the following statement of the issue to be voted

 529-5   on:  "Whether the ____________ (name of the political subdivision

 529-6   that created the district) Crime Control and Prevention District

 529-7   should be continued and the crime control and prevention district

 529-8   sales and use tax should be continued";

 529-9               (3)  the following statement immediately above the

529-10   signatures of the applicants:  "It is the purpose and intent of the

529-11   applicants whose signatures appear below that the crime control and

529-12   prevention district be continued and the crime control and

529-13   prevention district sales and use tax in ____________ (name of the

529-14   political subdivision that created the district) be continued"; and

529-15               (4)  the printed name, signature, residence address,

529-16   and voter registration certificate number of each applicant.

529-17         (c)  To be valid, an application for a petition to dissolve

529-18   the district must contain:

529-19               (1)  the following heading: "Application for a Petition

529-20   for a Local Option Referendum to Dissolve the Crime Control and

529-21   Prevention District and to Abolish the Crime Control and Prevention

529-22   District Sales and Use Tax";

529-23               (2)  the following statement of the issue to be voted

529-24   on: "Whether the ____________ (name of the political subdivision

 530-1   that created the district) Crime Control and Prevention District

 530-2   should be dissolved and the crime control and prevention district

 530-3   sales and use tax should be abolished";

 530-4               (3)  the following statement immediately above the

 530-5   signatures of the applicants: "It is the purpose and intent of the

 530-6   applicants whose signatures appear below that the crime control and

 530-7   prevention district be dissolved and the crime control and

 530-8   prevention district sales and use tax in ____________ (name of the

 530-9   political subdivision that created the district) be abolished"; and

530-10               (4)  the printed name, signature, residence address,

530-11   and voter registration certificate number of each applicant.

530-12         Sec. 363.253.  PETITION.  (a)  To be valid, a petition for a

530-13   referendum to continue a district must contain:

530-14               (1)  the following heading: "Petition for a Local

530-15   Option Referendum to Continue the ____________ (name of the

530-16   political subdivision that created the district) Crime Control and

530-17   Prevention District and to Continue the Crime Control and

530-18   Prevention District Sales and Use Tax";

530-19               (2)  a statement of the issue to be voted on in the

530-20   same words used in the application;

530-21               (3)  the following statement immediately above the

530-22   signatures of the petitioners:  "It is the purpose and intent of

530-23   the petitioners whose signatures appear below that the crime

530-24   control and prevention district be continued and the crime control

 531-1   and prevention district sales and use tax in ____________ (name of

 531-2   the political subdivision that created the district) be continued";

 531-3               (4)  lines and spaces for the names, signatures,

 531-4   residence addresses, and voter registration certificate numbers of

 531-5   the petitioners; and

 531-6               (5)  the date of issuance, the serial number, and the

 531-7   seal of the clerk of the political subdivision on each page.

 531-8         (b)  To be valid, a petition for a referendum to dissolve a

 531-9   district must contain:

531-10               (1)  the following heading:  "Petition for a Local

531-11   Option Referendum to Dissolve the ____________ (name of the

531-12   political subdivision that created the district) Crime Control and

531-13   Prevention District and to Abolish the Crime Control and Prevention

531-14   District Sales and Use Tax";

531-15               (2)  a statement of the issue to be voted on in the

531-16   same words used in the application;

531-17               (3)  the following statement immediately above the

531-18   signatures of the petitioners:  "It is the purpose and intent of

531-19   the petitioners whose signatures appear below that the crime

531-20   control and prevention district be dissolved and the crime control

531-21   and prevention district sales and use tax in ____________ (name of

531-22   the political subdivision that created the district) be abolished";

531-23               (4)  lines and spaces for the names, signatures,

531-24   residence addresses, and voter registration certificate numbers of

 532-1   the petitioners; and

 532-2               (5)  the date of issuance, the serial number, and the

 532-3   seal of the clerk of the political subdivision on each page.

 532-4         Sec. 363.254.  COPIES OF APPLICATION AND PETITION.  The clerk

 532-5   of the political subdivision shall keep an application and a copy

 532-6   of the petition in the files of the clerk's office.  The clerk

 532-7   shall issue to the applicants as many copies as they request.

 532-8         Sec. 363.255.  FILING OF PETITION.  To form the basis for the

 532-9   ordering of a referendum, the petition must:

532-10               (1)  be filed with the clerk of the political

532-11   subdivision not later than the 60th day after the date of its

532-12   issuance; and

532-13               (2)  contain at least a number of signatures of

532-14   registered voters of the political subdivision equal to five

532-15   percent of the number of votes cast in the political subdivision

532-16   for all candidates for governor in the most recent gubernatorial

532-17   general election.

532-18         Sec. 363.256.  REVIEW BY CLERK.  (a)  The clerk of the

532-19   political subdivision shall, on the request of any person, check

532-20   each name on a petition to determine whether the signer is a

532-21   registered voter of the district.  A person requesting verification

532-22   by the clerk shall pay the clerk a sum equal to 20 cents for each

532-23   name before the verification begins.

532-24         (b)  The clerk may not count a signature if the clerk has a

 533-1   reason to believe that:

 533-2               (1)  it is not the actual signature of the purported

 533-3   signer;

 533-4               (2)  the voter registration certificate number is not

 533-5   correct;

 533-6               (3)  it is a duplication either of a name or of

 533-7   handwriting used in any other signature on the petition;

 533-8               (4)  the residence address of the signer is not

 533-9   correct; or

533-10               (5)  the name of the voter is not signed exactly as it

533-11   appears on the official copy of the current list of registered

533-12   voters for the voting year in which the petition is issued.

533-13         Sec. 363.257.  CERTIFICATION.  Not later than the 40th day

533-14   after the date a petition is filed, excluding Saturdays, Sundays,

533-15   and legal holidays, the clerk of the political subdivision shall

533-16   certify to the board the number of registered voters signing the

533-17   petition.

533-18         Sec. 363.258.  ELECTION ORDER.  (a)  The board shall record

533-19   on its minutes the date the petition is filed and the date it is

533-20   certified by the clerk.

533-21         (b)  If the petition contains the required number of

533-22   signatures and is in proper order, the board shall, at its next

533-23   regular session after the certification by the clerk, order a

533-24   referendum to be held at the regular polling place in each election

 534-1   precinct in the political subdivision on the next uniform election

 534-2   date authorized by Section 41.001(a), Election Code, that occurs at

 534-3   least 20 days after the date of the order.

 534-4         (c)  The board shall state in the order the proposition to be

 534-5   voted on in the referendum.  The order is prima facie evidence of

 534-6   compliance with all provisions necessary to give it validity.

 534-7         Sec. 363.259.  APPLICABILITY OF ELECTION CODE.  A referendum

 534-8   authorized by this subchapter shall be held and the returns shall

 534-9   be prepared and canvassed in conformity with the Election Code.

534-10         Sec. 363.260.  RESULTS OF REFERENDUM.  (a)  If less than a

534-11   majority of the votes cast in a continuation referendum are for the

534-12   continuation of a district or if a majority of the votes cast in a

534-13   dissolution referendum are for dissolution of the district:

534-14               (1)  the board shall certify that fact to the secretary

534-15   of state not later than the 10th day after the date of the canvass

534-16   of the returns; and

534-17               (2)  the district is dissolved and ceases to operate.

534-18         (b)  If a majority of the votes cast in a continuation

534-19   referendum are for the continuation of the district or if less than

534-20   a majority of the votes cast in a dissolution referendum are for

534-21   dissolution of the district, another referendum may not be held

534-22   except as authorized by Section 363.251.

534-23         Sec. 363.261.  ELECTION CONTEST.  Not later than the 30th day

534-24   after the date the result of a referendum is declared, any

 535-1   qualified voter of the district may contest the election by filing

 535-2   a petition in a district court located in the district.

 535-3            (Sections 363.262-363.300 reserved for expansion

 535-4                   SUBCHAPTER G.  DISTRICT DISSOLUTION

 535-5         Sec. 363.301.  TIME FOR DISSOLUTION OF DISTRICT.  (a)  The

 535-6   district is dissolved on the fifth anniversary of the date the

 535-7   district was created if the district has not held a continuation or

 535-8   dissolution referendum.

 535-9         (b)  The district is dissolved on the fifth anniversary of

535-10   the date of the most recent continuation or dissolution referendum.

535-11         Sec. 363.302.  DISSOLUTION OF DISTRICT.  (a)  On the date

535-12   that the district is dissolved, the district shall convey or

535-13   transfer, as provided by Subsection (h):

535-14               (1)  title to land, buildings, real and tangible

535-15   improvements, and equipment owned by the district;

535-16               (2)  operating funds and reserves for operating

535-17   expenses and funds that have been budgeted by the district for the

535-18   remainder of the fiscal year in which the district is dissolved to

535-19   support crime control activities and programs for residents of the

535-20   political subdivision that created the district;

535-21               (3)  taxes levied by the district during the current

535-22   year for crime control purposes;

535-23               (4)  funds established for payment of indebtedness

535-24   assumed by the district; and

 536-1               (5)  any accumulated employee retirement funds.

 536-2         (b)  After the date the district is dissolved, the district

 536-3   may not impose taxes for district purposes or for providing crime

 536-4   control activities and programs for the residents of the district.

 536-5         (c)  If on the date that the district is dissolved the

 536-6   district has outstanding short-term or long-term liabilities, the

 536-7   board shall, not later than the 30th day after the date of the

 536-8   dissolution, adopt a resolution certifying each outstanding

 536-9   short-term and long-term liability.  The political subdivision that

536-10   created the district shall assume the outstanding short-term and

536-11   long-term liabilities.  The political subdivision shall collect the

536-12   sales and use tax under Section 323.105, Tax Code, for the

536-13   remainder of the calendar year and may by resolution of its

536-14   governing body continue to collect the tax for an additional

536-15   calendar year if the revenue from the tax is needed to retire

536-16   liabilities of the district that were assumed by the political

536-17   subdivision.  The governing body shall notify the comptroller of

536-18   this continuation not later than the 60th day before the date the

536-19   tax would otherwise expire.  Any tax collected after the

536-20   liabilities have been retired shall be transferred or conveyed as

536-21   provided by Subsection (a).

536-22         (d)  The district and the board may continue to operate for a

536-23   period not to exceed two months after carrying out the

536-24   responsibilities required by Subsections (a) and (c).  The board

 537-1   and the district are continued in effect for the purpose of

 537-2   satisfying these responsibilities.

 537-3         (e)  If the board and the district are continued in effect

 537-4   under Subsection (d), the board and district are dissolved entirely

 537-5   on the first day of the month following the month in which the

 537-6   board issues an order certifying to the secretary of state that no

 537-7   responsibilities of Subsections (a) and (c) are left unsatisfied.

 537-8         (f)  A district or board that continues to operate under

 537-9   Subsection (d) may not incur any new liabilities without the

537-10   approval of the governing body of the political subdivision that

537-11   created the district.  Not later than the 60th day after the date

537-12   of the dissolution referendum, the governing body shall review the

537-13   outstanding liabilities of the district and set a specific date by

537-14   which the political subdivision must retire the district's

537-15   outstanding liabilities.

537-16         (g)  On the date that the district is dissolved,

537-17   district-funded programs, including additional courts, shall

537-18   immediately terminate and district-funded personnel, except

537-19   personnel required to retire the responsibilities of the district,

537-20   are terminated.

537-21         (h)  In a district created by a county, the board shall

537-22   convey or transfer the value of the items described by Subsection

537-23   (a) following the apportionment formula described by Section

537-24   363.154(a).  In a district created by a municipality, the board

 538-1   shall convey or transfer the value of the items described by

 538-2   Subsection (a) to the municipality.

 538-3         (b)  The Crime Control and Prevention District Act (Article

 538-4   2370c-4, Vernon's Texas Civil Statutes) is repealed.

 538-5         SECTION 23.04.  (a)  The chapter heading of Chapter 375,

 538-6   Local Government Code, is amended to conform to Chapters 436, 491,

 538-7   and 496, Acts of the 74th Legislature, Regular Session, 1995, and

 538-8   Chapter 817, Acts of the 72nd Legislature, Regular Session, 1991,

 538-9   to read as follows:

538-10         CHAPTER 375.  MUNICIPAL MANAGEMENT DISTRICTS IN GENERAL

538-11         (b)  Subtitle A, Title 12, Local Government Code, is amended

538-12   to codify Chapters 436, 491, and 496, Acts of the 74th Legislature,

538-13   Regular Session, 1995, and Chapter 817, Acts of the 72nd

538-14   Legislature, Regular Session, 1991, by adding Chapter 376 to read

538-15   as follows:

538-16          CHAPTER 376.  SPECIFIC MUNICIPAL MANAGEMENT DISTRICTS

538-17           SUBCHAPTER A.  HOUSTON DOWNTOWN MANAGEMENT DISTRICT

538-18         Sec. 376.001.  CREATION OF DISTRICT.  (a)  A special district

538-19   to be known as the "Houston Downtown Management District" exists as

538-20   a governmental agency, body politic and corporate, and political

538-21   subdivision of the state.

538-22         (b)  The name of the district may be changed by resolution of

538-23   the board.

538-24         (c)  The creation of the district is essential to accomplish

 539-1   the purposes of Section 52, Article III, Section 59, Article XVI,

 539-2   and Section 52-a, Article III, Texas Constitution, and other public

 539-3   purposes stated in this subchapter.

 539-4         Sec. 376.002.  DECLARATION OF INTENT.  (a)  The creation of

 539-5   the district is necessary to promote, develop, encourage, and

 539-6   maintain employment, commerce, transportation, housing, tourism,

 539-7   recreation, arts, entertainment, economic development, safety, and

 539-8   the public welfare in the downtown area of the municipality.

 539-9         (b)  The creation of the district and this legislation is not

539-10   to be interpreted to relieve the county or the municipality from

539-11   providing the level of services, as of August 28, 1995, to the area

539-12   in the district or to release the county or the municipality from

539-13   the obligations each entity has to provide services to that area.

539-14   The district is created to supplement and not supplant the

539-15   municipal or county services provided in the area in the district.

539-16         (c)  By creating the district and in authorizing the

539-17   municipality, county, and other political subdivisions to contract

539-18   with the district, the legislature has established a program to

539-19   accomplish the public purposes set out in Section 52-a, Article

539-20   III, Texas Constitution.

539-21         Sec. 376.003.  DEFINITIONS.  In this subchapter:

539-22               (1)  "Board" means the board of directors of the

539-23   district.

539-24               (2)  "County" means Harris County, Texas.

 540-1               (3)  "District" means the Houston Downtown Management

 540-2   District.

 540-3               (4)  "Municipality" means the City of Houston, Texas.

 540-4         Sec. 376.004.  BOUNDARIES.  The district includes all the

 540-5   territory contained in the following described area:

 540-6         705 acres, more or less, in the J. Austin Survey, Abstract 1,

 540-7   the J.S.  Holman Survey, Abstract 323, the O. Smith Survey,

 540-8   Abstract 696, and the J. Wells Survey, Abstract 832, Harris County,

 540-9   Texas, more particularly described as follows:

540-10         BEGINNING at the intersection of the center line of the

540-11   right-of-way of Commerce Avenue with the center line of the

540-12   right-of-way of Austin Street;

540-13         Thence in a southwesterly direction with the center line of

540-14   the right-of-way of Austin street to the intersection with the

540-15   center line of the right-of-way of Capitol Avenue;

540-16         Thence in a southeasterly direction with the center line of

540-17   the right-of-way of Capitol Avenue to the intersection with the

540-18   center line of the right-of-way of Chartres Street;

540-19         Thence in a southwesterly direction with the center line of

540-20   the right-of-way of Chartres Street to the intersection with the

540-21   center line of the right-of-way of Clay Avenue;

540-22         Thence in a northwesterly direction with the center line of

540-23   the right-of-way of Clay Avenue to the intersection with the center

540-24   line of the right-of-way of Caroline Street;

 541-1         Thence in a southwesterly direction with the center line of

 541-2   the right-of-way of Caroline Street to the intersection with the

 541-3   center line of the right-of-way of Pierce Avenue;

 541-4         Thence in a northwesterly direction with the center line of

 541-5   the right-of-way of Pierce Avenue to the intersection with the

 541-6   center line of the right-of-way of Bagby Street;

 541-7         Thence in a northeasterly direction with the center line of

 541-8   the right-of-way of Bagby Street to the intersection with a

 541-9   southerly projection of the west line of the right-of-way of Heiner

541-10   Street;

541-11         Thence in a northerly direction with the west line of the

541-12   right-of-way of Heiner Street and southerly and northerly

541-13   projections thereof to the intersection with the center line of the

541-14   right-of-way of W. Dallas Street;

541-15         Thence in a westerly direction with the center line of the

541-16   right-of-way of W. Dallas Street to the intersection with a

541-17   southerly projection of the west line of the right-of-way of Heiner

541-18   Street;

541-19         Thence in a northerly direction with the west line of the

541-20   right-of-way of Heiner Street and southerly and northerly

541-21   projections thereof to the intersection with the center line of the

541-22   right-of-way of Allen Parkway;

541-23         Thence in an easterly direction with the center line of the

541-24   right-of-way of Allen Parkway to the intersection with a southerly

 542-1   projection of the center line of the right-of-way of Sabine Street;

 542-2         Thence in a northerly direction with a southerly projection

 542-3   of the center line of the right-of-way of Sabine Street and then

 542-4   with the center line of the right-of-way of Sabine Street to the

 542-5   intersection with the north right-of-way line of Memorial Drive;

 542-6         Thence in an easterly direction with the north right-of-way

 542-7   line of Memorial Drive to the intersection with the west

 542-8   right-of-way line of Interstate Highway 45;

 542-9         Thence in a northeasterly direction with the west

542-10   right-of-way line of Interstate Highway 45 to the intersection with

542-11   the center line of the right-of-way of Franklin Avenue;

542-12         Thence in an easterly direction with the center line of the

542-13   right-of-way of Franklin Avenue to the intersection with a

542-14   southerly projection of the center line of the northbound ramp to

542-15   Interstate Highway 10, a continuation of Louisiana Street;

542-16         Thence in a northerly direction with the center line of the

542-17   right-of-way of the northbound ramp to Interstate Highway 10 and

542-18   the southerly projection thereof, to the intersection with the

542-19   center line of the Southern Pacific Rail Road's "Main Passenger

542-20   Line" right-of-way;

542-21         Thence in an easterly direction with the center line of the

542-22   Southern Pacific Rail Road's "Main Passenger Line" right-of-way to

542-23   the intersection with the center line of the right-of-way of North

542-24   San Jacinto Street;

 543-1         Thence in a southerly direction with the center line of the

 543-2   right-of-way of North San Jacinto Street to the intersection with

 543-3   the center line of the right-of-way of Commerce Avenue;

 543-4         Thence in a southeasterly direction with the center line of

 543-5   the right-of-way of Commerce Avenue to The Point of Beginning,

 543-6   containing 705 acres, more or less, including, without limitation,

 543-7   all air space above and all subsurface below said property.

 543-8         Sec. 376.005.  FINDINGS RELATING TO BOUNDARIES.  The

 543-9   boundaries and field notes of the district form a closure.  If a

543-10   mistake is made in the field notes or in copying the field notes in

543-11   the legislative process, the mistake does not in any way affect

543-12   the:

543-13               (1)  organization, existence, and validity of the

543-14   district;

543-15               (2)  right of the district to issue any type of bonds

543-16   or refunding bonds for the purposes for which the district is

543-17   created or to pay the principal of and interest on the bonds;

543-18               (3)  right of the district to impose and collect

543-19   assessments or taxes; or

543-20               (4)  legality or operation of the district or its

543-21   governing body.

543-22         Sec. 376.006.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)

543-23   All the land and other property included in the district will be

543-24   benefited by the improvements and services to be provided by the

 544-1   district under powers conferred by Section 52, Article III, Section

 544-2   59, Article XVI, and Section 52-a, Article III, Texas Constitution,

 544-3   and other powers granted under this subchapter, and the district is

 544-4   created to serve a public use and benefit.

 544-5         (b)  The creation of the district is in the public interest

 544-6   and is essential to:

 544-7               (1)  further the public purposes of the development and

 544-8   diversification of the economy of the state; and

 544-9               (2)  eliminate unemployment and underemployment and

544-10   develop or expand transportation and commerce.

544-11         (c)  The district will:

544-12               (1)  promote the health, safety, and general welfare of

544-13   residents, employers, employees, visitors, consumers in the

544-14   district, and the general public;

544-15               (2)  provide needed funding for the municipal downtown

544-16   area to preserve, maintain, and enhance the economic health and

544-17   vitality of the area as a community and business center; and

544-18               (3)  further promote the health, safety, welfare, and

544-19   enjoyment of the public by providing pedestrian ways and by

544-20   landscaping and developing certain areas in the district, which are

544-21   necessary for the restoration, preservation, and enhancement of

544-22   scenic and aesthetic beauty.

544-23         (d)  Pedestrian ways along or across a street, whether at

544-24   grade or above or below the surface, and street lighting, street

 545-1   landscaping, and street art objects are parts of and necessary

 545-2   components of a street and are considered to be a street or road

 545-3   improvement.

 545-4         (e)  The district will not act as the agent or

 545-5   instrumentality of any private interest even though many private

 545-6   interests will be benefited by the district, as will the general

 545-7   public.

 545-8         Sec. 376.007.  APPLICATION OF OTHER LAW.  Except as otherwise

 545-9   provided by this subchapter, Chapter 375 applies to the district.

545-10         Sec. 376.008.  CONSTRUCTION OF SUBCHAPTER.  This subchapter

545-11   shall be liberally construed in conformity with the findings and

545-12   purposes stated in this subchapter.

545-13         Sec. 376.009.  BOARD OF DIRECTORS IN GENERAL.  (a)  The

545-14   district is governed by a board of 30 directors who serve staggered

545-15   terms of four years with seven or eight members' terms expiring

545-16   June 1 of each year.

545-17         (b)  Subchapter D, Chapter 375, applies to the board to the

545-18   extent that subchapter does not conflict with this subchapter.

545-19         Sec. 376.010.  APPOINTMENT OF DIRECTORS; VACANCY.  (a)  The

545-20   mayor and members of the governing body of the municipality shall

545-21   appoint directors from persons recommended by the board.  A vacancy

545-22   in the office of director because of the death, resignation, or

545-23   removal of a director shall be filled by the remaining members of

545-24   the board by appointing a qualified person for the unexpired term.

 546-1         (b)  A person may not be appointed to the board if the

 546-2   appointment of that person would result in less than two-thirds of

 546-3   the board members being residents of the municipality.

 546-4         Sec. 376.011.  EX OFFICIO MEMBERS OF BOARD OF DIRECTORS.  (a)

 546-5   The directors of the parks and recreation, planning and

 546-6   development, public works, and civic center departments of the

 546-7   municipality, the chief of police of the municipality, and the

 546-8   general manager of the metropolitan transit authority of the county

 546-9   each shall serve as a nonvoting ex officio member of the board.

546-10         (b)  If any of the departments described by Subsection (a)

546-11   are consolidated, renamed, changed, or abolished, the board may

546-12   appoint the directors of the consolidated, renamed, or changed

546-13   departments as nonvoting ex officio members of the board or the

546-14   board may appoint a representative of another department of the

546-15   municipality that performs duties comparable to those performed by

546-16   the abolished department.

546-17         (c)  The board may appoint the presiding officers of other

546-18   nonprofit corporations actively involved in downtown activities in

546-19   the municipality to serve as nonvoting ex officio members of the

546-20   board.

546-21         Sec. 376.012.  POWERS OF DISTRICT.  (a)  The district has:

546-22               (1)  all powers necessary or required to accomplish the

546-23   purposes for which the district was created;

546-24               (2)  the rights, powers, privileges, authority, and

 547-1   functions of a district created under Chapter 375;

 547-2               (3)  the powers given to a corporation under Section

 547-3   4B, the Development Corporation Act of 1979 (Article 5190.6,

 547-4   Vernon's Texas Civil Statutes) and the power to own, operate,

 547-5   acquire, construct, lease, improve, and maintain projects, other

 547-6   than a domed football stadium, described by that section;

 547-7               (4)  the power of a housing finance corporation created

 547-8   under Chapter 394 to provide housing or residential development

 547-9   projects in the district;

547-10               (5)  the power to impose ad valorem taxes, assessments,

547-11   or impact fees in accordance with Chapter 375 to provide

547-12   improvements and services for a project or activity the district is

547-13   authorized to acquire, construct, improve, or provide under this

547-14   subchapter; and

547-15               (6)  the power to correct, add to, or delete

547-16   assessments from its assessment rolls after notice and hearing as

547-17   provided by Subchapter F, Chapter 375.

547-18         (b)  The district may not impose a sales and use tax and may

547-19   not acquire property through eminent domain.

547-20         Sec. 376.013.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS

547-21   AFFECTING PROPERTY.  (a)  If the district, in exercising a power

547-22   conferred by this subchapter, requires a relocation, adjustment,

547-23   raising, lowering, rerouting, or changing of the grade or the

547-24   construction of any of the following items, the district must take

 548-1   that required action at the sole expense of the district:

 548-2               (1)  a street, alley, highway, overpass, underpass,

 548-3   road, railroad track, bridge, facility, or other property;

 548-4               (2)  an electric line, conduit, facility, or other

 548-5   property;

 548-6               (3)  a telephone or telegraph line, conduit, facility,

 548-7   or other property;

 548-8               (4)  a gas transmission or distribution pipe, pipeline,

 548-9   main, facility, or other property;

548-10               (5)  a water, sanitary sewer, or storm sewer pipe,

548-11   pipeline, main, facility, or other property;

548-12               (6)  a cable television line, cable, conduit, facility,

548-13   or other property; or

548-14               (7)  another pipeline, facility, or other property

548-15   relating to the pipeline.

548-16         (b)  The district shall bear damages that are suffered by

548-17   owners of the facility or other property.

548-18         Sec. 376.014.  RELATION TO OTHER LAW.  If any provision of a

548-19   law referenced in Section 376.012 is in conflict with or is

548-20   inconsistent with this subchapter, this subchapter prevails.  Any

548-21   law referenced in this subchapter that is not in conflict or

548-22   inconsistent with this subchapter is adopted and incorporated by

548-23   reference.

548-24         Sec. 376.015.  REQUIREMENTS FOR FINANCING SERVICES AND

 549-1   IMPROVEMENTS.  The board may not finance services and improvement

 549-2   projects under this subchapter unless a written petition requesting

 549-3   those improvements or services has been filed with the board.  The

 549-4   petition must be signed by:

 549-5               (1)  the owners of a majority of the assessed value of

 549-6   real property in the district as determined by the most recent

 549-7   certified county property tax rolls; or

 549-8               (2)  at least 50 persons who own land in the district,

 549-9   if there are more than 50 persons who own property in the district

549-10   as determined by the most recent certified county property tax

549-11   rolls.

549-12         Sec. 376.016.  PROHIBITED EXEMPTIONS.  A single family

549-13   residential property or a residential duplex, triplex, quadruplex,

549-14   or condominium may not be exempt from the imposition of a tax, an

549-15   impact fee, or an assessment if the tax, impact fee, or assessment

549-16   is imposed in accordance with this subchapter.

549-17         Sec. 376.017.  NONPROFIT CORPORATION.  (a)  The board by

549-18   resolution may authorize the creation of a nonprofit corporation to

549-19   assist and act on behalf of the district in implementing a project

549-20   or providing a service authorized by this subchapter.

549-21         (b)  The board shall appoint the board of directors of a

549-22   nonprofit corporation created under this section.  The board of

549-23   directors of  the nonprofit corporation shall serve in the same

549-24   manner as, for the same term as, and on the conditions of the board

 550-1   of directors of a local government corporation created under

 550-2   Chapter 431, Transportation Code.

 550-3         (c)  A nonprofit corporation created under this section has

 550-4   the powers of and is considered for purposes of this subchapter to

 550-5   be a local government corporation created under Chapter 431,

 550-6   Transportation Code.

 550-7         (d)  A nonprofit corporation created under this section may

 550-8   implement any project and provide any services authorized by this

 550-9   subchapter.

550-10         Sec. 376.018.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The

550-11   board by resolution shall establish the number of directors'

550-12   signatures and the procedure required for a disbursement or

550-13   transfer of the district's money.

550-14         Sec. 376.019.  BONDS.  (a)  The district may issue bonds or

550-15   other obligations payable in whole or in part from ad valorem

550-16   taxes, assessments, impact fees, revenues, grants, or other money

550-17   of the district, or any combination of those sources of money, to

550-18   pay for any authorized purpose of the district, other than to

550-19   finance a domed football stadium.

550-20         (b)  Bonds or other obligations of the district may be issued

550-21   in the form of bonds, notes, certificates of participation,

550-22   including other instruments evidencing a proportionate interest in

550-23   payments to be made by the district, or other obligations that are

550-24   issued in the exercise of the district's borrowing power and may be

 551-1   issued in bearer or registered form or not represented by an

 551-2   instrument but the transfer of which is registered on books

 551-3   maintained by or on behalf of the district.

 551-4         (c)  Except as provided by Subsection (d), the district must

 551-5   obtain the municipality's approval of:

 551-6               (1)  the issuance of bonds for an improvement project;

 551-7   and

 551-8               (2)  the plans and specifications of the improvement

 551-9   project to be financed by the bonds.

551-10         (d)  If the district obtains the municipality's approval of a

551-11   capital improvements budget for a specified period not to exceed

551-12   five years, the district may finance the capital improvements and

551-13   issue bonds specified in the budget without further municipal

551-14   approval.

551-15         (e)  Before the district issues bonds, the district shall

551-16   submit the bonds and the record of proceedings of the district

551-17   relating to authorization of the bonds to the attorney general for

551-18   approval as provided by Chapter 53, Acts of the 70th Legislature,

551-19   2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil

551-20   Statutes).

551-21         Sec. 376.020.  ASSESSMENTS.  (a)  The board may impose and

551-22   collect an assessment for any purpose authorized by this

551-23   subchapter.

551-24         (b)  Assessments, reassessments, or  assessments resulting

 552-1   from an addition to or correction of the assessment roll by the

 552-2   district, penalties and interest on an assessment or reassessment,

 552-3   expenses of collection, and reasonable attorney's fees incurred by

 552-4   the district:

 552-5               (1)  are a first and prior lien against the property

 552-6   assessed;

 552-7               (2)  are superior to any other lien or claim other than

 552-8   a lien or claim for county, school district, or municipal ad

 552-9   valorem taxes; and

552-10               (3)  are the personal liability of and charge against

552-11   the owners of the property even if the owners are not named in the

552-12   assessment proceedings.

552-13         (c)  The lien is effective from the date of the resolution of

552-14   the board levying the assessment until the assessment is paid.  The

552-15   board may enforce the lien in the same manner that the board may

552-16   enforce an ad valorem tax lien against real property.

552-17         Sec. 376.021.  APPROVAL OF CERTAIN IMPROVEMENT PROJECTS.  The

552-18   district must obtain the municipality's approval of the plans and

552-19   specifications of any district improvement project related to the

552-20   use of land owned by the municipality, an easement granted by the

552-21   municipality, or a right-of-way of a street, road, or highway.

552-22         Sec. 376.022.  ELECTIONS.  (a)  In addition to the elections

552-23   the district must hold under Subchapter L, Chapter 375, the

552-24   district shall hold an election in the manner provided by that

 553-1   subchapter to obtain voter approval before the district imposes a

 553-2   maintenance tax or issues bonds payable from ad valorem taxes or

 553-3   assessments.

 553-4         (b)  The board may submit multiple purposes in a single

 553-5   proposition at an election.

 553-6         (c)  The board may not call an election under this subchapter

 553-7   unless a written petition requesting an election has been filed

 553-8   with the board.  The petition must be signed by:

 553-9               (1)  the owners of a majority of the assessed value of

553-10   real property in the district as determined by the most recent

553-11   certified county property tax rolls; or

553-12               (2)  at least 50 persons who own land in the district,

553-13   if there are more than 50 persons who own property in the district

553-14   as determined by the most recent certified county property tax

553-15   rolls.

553-16         Sec. 376.023.  IMPACT FEES.  The district may impose an

553-17   impact fee for an authorized purpose as provided by Subchapter G,

553-18   Chapter 375.

553-19         Sec. 376.024.  MAINTENANCE TAX.  (a)  If authorized at an

553-20   election held in accordance with Section 376.022, the district may

553-21   impose and collect an annual ad valorem tax on taxable property in

553-22   the district for the maintenance and operation of the district and

553-23   the improvements constructed or acquired by the district or for the

553-24   provision of services to industrial or commercial businesses,

 554-1   residents, or property owners.

 554-2         (b)  The board shall determine the tax rate.

 554-3         Sec. 376.025.  DISSOLUTION OF DISTRICT.  (a)  The district

 554-4   may be dissolved as provided by Subchapter M, Chapter 375.

 554-5         (b)  Regardless of Section 375.264, a district that has debt

 554-6   may be dissolved as provided by Subchapter M, Chapter 375.  If the

 554-7   district has debt and is dissolved, the district shall remain in

 554-8   existence solely for the limited purpose of discharging its bonds

 554-9   or other obligations according to their terms.

554-10         Sec. 376.026.  CONTRACTS.  (a)  To protect the public

554-11   interest, the district may contract with the municipality or county

554-12   for the provision of law enforcement services by the county or

554-13   municipality in the district on a fee basis.

554-14         (b)  The municipality, county, or another political

554-15   subdivision of the state, without further authorization, may

554-16   contract with the district to implement a project of the district

554-17   or assist the district in providing the services authorized under

554-18   this subchapter.  A contract under this subsection may:

554-19               (1)  be for a period on which the parties agree;

554-20               (2)  include terms on which the parties agree;

554-21               (3)  be payable from taxes or any other sources of

554-22   revenue that may be available for such purpose; or

554-23               (4)  provide that taxes or other revenue collected at a

554-24   district project or from a person using or purchasing a commodity

 555-1   or service at a district project may be paid or rebated to the

 555-2   district under the terms of the contract.

 555-3         (c)  The district may enter into a contract, lease, or other

 555-4   agreement with or make or accept grants and loans to or from:

 555-5               (1)  the United States;

 555-6               (2)  the state or a state agency;

 555-7               (3)  any county, any municipality, or another political

 555-8   subdivision of the state;

 555-9               (4)  a public or private corporation, including a

555-10   nonprofit corporation created by the board under this subchapter;

555-11   or

555-12               (5)  any other person.

555-13         (d)  The district may perform all acts necessary for the full

555-14   exercise of the powers vested in the district on terms and for the

555-15   period the board determines advisable.

555-16         Sec. 376.027.  COMPETITIVE BIDDING.  The district may enter a

555-17   contract for more than $10,000 for services, improvements, or the

555-18   purchase of property, including materials, machinery, equipment, or

555-19   supplies, only as provided by Subchapter K, Chapter 375.

555-20         Sec. 376.028.  REINVESTMENT ZONES.  All or any part of the

555-21   area of the district is eligible to be included in a tax

555-22   incremental reinvestment zone created by the municipality under

555-23   Chapter 311, Tax Code, or included in a tax abatement reinvestment

555-24   zone created by the municipality under Chapter 312, Tax Code.

 556-1         Sec. 376.029.  INITIAL DIRECTORS.  (a)  The initial board

 556-2   consists of the following persons:

 556-3    Pos. No.      Name of Director

 556-4       1          Charles Baughn          

 556-5       2          Patrick Ezzell          

 556-6       3          Cindy Garcia            

 556-7       4          Nick Gonzales           

 556-8       5          Dennis L. Greer         

 556-9       6          Valerie D. Marshall     

556-10       7          William E. Penland, Jr. 

556-11       8          Peggy Menchaca          

556-12       9          Sharon Michael          

556-13      10          Melanie Ringo           

556-14      11          Mark M. Sacco           

556-15      12          Paula T. Saizan         

556-16      13          James B. Seigler        

556-17      14          Richard Veith           

556-18      15          Ben I. Wilson           

556-19      16          Azalea Aleman           

556-20      17          Sherea A. McKenzie       

556-21      18          Tom Mene                 

556-22      19          Elsa Pagan               

556-23      20          James J. Smith           

556-24      21          C. Richard Vermillion    

 557-1      22          Gary Warwick             

 557-2      23          J. Mark Russell          

 557-3      24          Robert Bradford          

 557-4      25          Anthony Choy             

 557-5      26          Patricia C. Hewlett      

 557-6      27          Gary L. Marks            

 557-7      28          Joel B. Otte             

 557-8      29          Gary D. Schuman          

 557-9      30          Jane Bass Page           

557-10         (b)  Of the initial directors, the directors appointed for

557-11   positions 1 through 7 serve until June 1, 1996, the directors

557-12   appointed for positions 8 through 15 serve until June 1, 1997, the

557-13   directors appointed for positions 16 through 23 serve until June 1,

557-14   1998, and the directors appointed for positions 24 through 30 serve

557-15   until June 1, 1999.

557-16         (c)  This section expires September 1, 1999.

557-17            (Sections 376.030-376.040 reserved for expansion

557-18            SUBCHAPTER B.  WESTCHASE AREA MANAGEMENT DISTRICT

557-19         Sec. 376.041.  CREATION OF DISTRICT.  (a)  A special district

557-20   in Harris County to be known as the "Westchase Area Management

557-21   District" exists as a governmental agency, body politic and

557-22   corporate, and political subdivision of the state.

557-23         (b)  The name of the district may be changed by resolution of

557-24   the board.

 558-1         (c)  The creation of the district is essential to accomplish

 558-2   the purposes of Section 52, Article III, Section 59, Article XVI,

 558-3   and Section 52-a, Article III, Texas Constitution, and other public

 558-4   purposes stated in this subchapter.

 558-5         Sec. 376.042.  DECLARATION OF INTENT.  (a)  The creation of

 558-6   the district is necessary to promote, develop, encourage, and

 558-7   maintain employment, commerce, transportation, housing, tourism,

 558-8   recreation, arts, entertainment, economic development, safety, and

 558-9   the public welfare in the  Westchase area of the county.

558-10         (b)  The creation of the district and this legislation is not

558-11   to be interpreted to relieve the county or the municipality from

558-12   providing the level of services, as of August 28, 1995, to the area

558-13   in the district or to release the county or the municipality from

558-14   the obligations each entity has to provide services to that area.

558-15   The district is created to supplement and not supplant the

558-16   municipal or county services provided in the area in the district.

558-17         (c)  By creating the district and in authorizing the

558-18   municipality, county, and other political subdivisions to contract

558-19   with the district, the legislature has established a program to

558-20   accomplish the public purposes set out in Section 52-a, Article

558-21   III, Texas Constitution.

558-22         Sec. 376.043.  DEFINITIONS.  In this subchapter:

558-23               (1)  "Board" means the board of directors of the

558-24   district.

 559-1               (2)  "County" means Harris County, Texas.

 559-2               (3)  "District" means the Westchase Area Management

 559-3   District.

 559-4               (4)  "Municipality" means the City of Houston, Texas.

 559-5         Sec. 376.044.  BOUNDARIES.  The district includes all the

 559-6   territory contained in the following described area:

 559-7         Being 2,460 acres, more or less, out of the G.L. Bellows

 559-8   Survey, Abstract No.  3, the C. Ennis Survey, Abstract No. 253, the

 559-9   J.D. Taylor Survey, Abstract No. 72, the I.E. Wade Survey, Abstract

559-10   No. 854, the  I.E. Wade Survey, Abstract No. 855, the E. Williams

559-11   Survey, Abstract No. 834, and the H. Woodruff Survey, Abstract No.

559-12   844, all located in Harris County, Texas, being more particularly

559-13   described by metes and bounds as follows:

559-14         BEGINNING AT A POINT being the most westerly southwest corner

559-15   of the Woodlake, Section 4 Subdivision described by plat recorded

559-16   in Vol. 174, Pg. 115 of the Map Records of the Harris County, being

559-17   also a point in the East line of South Gessner Road, originally

559-18   described in the instrument recorded in Vol. 6369, Pg.  234 of the

559-19   Deed Records of Harris County,

559-20         Thence in a northerly direction with the western boundary of

559-21   the Woodlake, Section 4 Subdivision and the East line of South

559-22   Gessner Road to the point of intersection with the easterly

559-23   projection of the South line of the Woodlake Townhouse Apartments

559-24   Parcel as described in the conveyance recorded in Vol. 8577, Pg. 38

 560-1   of the Deed Records of Harris County,

 560-2         Thence in a westerly direction along the easterly projection

 560-3   of the South line of the Woodlake Townhouse Apartments Parcel and

 560-4   then continuing with the South Line of the Woodlake Townhouse

 560-5   Apartments Parcel to the southwest corner of that parcel, being

 560-6   also a point in the West line of the Woodlake Section 5

 560-7   Subdivision, being also a point in the West line of the J. D.

 560-8   Taylor Survey, Abstract 72,

 560-9         Thence in a southerly direction with the West line of the

560-10   J.D. Taylor Survey, Abstract 72 to the point of intersection with

560-11   the North right of way of Westheimer Road, also known as Texas Farm

560-12   to Market Road No. 1093,

560-13         Thence in a westerly direction with the North right of way

560-14   line of Westheimer Road, also known as Texas Farm to Market Road

560-15   No. 1093 to the point of intersection the East right of way of

560-16   Seagler Road,

560-17         Thence in a northerly direction with the East right of way

560-18   line of Seagler Road to the point of intersection with the easterly

560-19   projection of the North right of way line of Ella Lee Lane,

560-20         Thence in westerly direction with the easterly projection of

560-21   the North right of way line of Ella Lee Lane and then continuing

560-22   with the North right of way line of Ella Lee Lane to the point of

560-23   intersection with the East right of way line Beltway 8, also known

560-24   as the Sam Houston Tollway,

 561-1         Thence in a northerly direction with the East right of way

 561-2   line Beltway 8 to the point of intersection with the easterly

 561-3   projection of the centerline of the right of way line of Deerwood

 561-4   Drive as dedicated by plat for the Greentree Place Subdivision as

 561-5   recorded in Vol. 228, Pg. 125 of the Map Records of Harris County,

 561-6         Thence in a westerly direction with the easterly projection

 561-7   of the centerline of the right of way of Deerwood Drive and then

 561-8   continuing with the centerline of the right of way of Deerwood

 561-9   Drive through a curve to the South to the point of intersection

561-10   with the easterly projection of the centerline of the right of way

561-11   of River View Drive as described by the plat of the Walnut Bend

561-12   Subdivision, Section 8, as recorded in Vol. 129, Pg. 59 of the Map

561-13   Records of Harris County,

561-14         Thence continuing in a westerly direction with the easterly

561-15   projection of the centerline of the right of way of River View

561-16   Drive to the West line of the Greentree Place Subdivision, being

561-17   also the West Line of the G.L. Bellows Survey, Abstract No. 3,

561-18         Thence in a southerly direction with the West line of the

561-19   G.L. Bellows Survey, Abstract No. 3, to the point of intersection

561-20   with the most easterly southeast corner of the Walnut Bend, Section

561-21   5 Subdivision as described by plat recorded in Vol. 89, Pg. 54 of

561-22   the Map Records of Harris County,

561-23         Thence in a westerly direction with the South line of the

561-24   Walnut Bend, Section 5 to a point in the East right of way line of

 562-1   Blue Willow Drive, being also the southwest corner of lot 18, block

 562-2   5 of Walnut Bend, Section 5 Subdivision,

 562-3         Thence continuing in a westerly direction to a point in the

 562-4   West right of way line of Blue Willow Drive, being also the

 562-5   southeast corner of lot 17, block 17 of the Walnut Bend, Section 5

 562-6   Subdivision,

 562-7         Thence continuing in a westerly direction with the South line

 562-8   of the Walnut Bend, Section 5 Subdivision to a point in the East

 562-9   right of way line of Walnut Bend Lane, being also the southwest

562-10   corner of lot 1, block 17 of the Walnut Bend, Section 5

562-11   Subdivision,

562-12         Thence continuing in a westerly direction to a point in the

562-13   West right of way line of Walnut Bend Lane, being also the

562-14   southeast corner of lot 10, block 1 of the Walnut Bend, Section 5

562-15   Subdivision,

562-16         Thence in a westerly direction to the southwest corner of

562-17   said lot 10 block 1, being also the most westerly southwest corner

562-18   of the Walnut Bend, Section 5 Subdivision, being also a point in

562-19   the East line of lot 6, block 1 of the Lakeside Estates, Section 1

562-20   Subdivision as described by plat recorded in Vol. 152, Pg. 97 of

562-21   the Map Records of Harris County,

562-22         Thence in a southerly direction with the East line of the

562-23   Lakeside Estates, Section 1 Subdivision to the most easterly

562-24   southeast corner of said Lakeside Estates Section 1 Subdivision,

 563-1         Thence in a westerly direction with the South line of the

 563-2   Lakeside Estates, Section 1 Subdivision to a point in the East

 563-3   right of way line of Lakeside Country Club, being also the

 563-4   southwest corner of lot 1, block 1 of the Lakeside Estates, Section

 563-5   1 Subdivision,

 563-6         Thence continuing in a westerly direction to a point in the

 563-7   west right of way line of Lakeside Country Club Drive, being also

 563-8   the southeast corner of lot 10, block 2 of the Lakeside Estates,

 563-9   Section 1 Subdivision,

563-10         Thence continuing in a westerly direction with the South line

563-11   of the Lakeside Estates, Section 1 Subdivision to a point in the

563-12   East right of way line of Wilcrest Drive, being also the southwest

563-13   corner of lot 1, block 2 of the Lakeside Estates, Section 1

563-14   Subdivision,

563-15         Thence in a northwesterly direction to a point in the West

563-16   right of way line of Wilcrest Drive, being also the northeast

563-17   corner of reserve lot A5 of the Lakeside Estates, Section 1

563-18   Subdivision,

563-19         Thence in a westerly direction with the North line of reserve

563-20   lot A5 of the Lakeside Estates, Section 1 Subdivision to the

563-21   northwest corner of that lot,

563-22         Thence in a southwesterly direction across a 150 foot wide

563-23   power line corridor owned by Houston Lighting and Power Company, as

563-24   described in instrument recorded in Vol. 1220, Pg. 519 of the Deed

 564-1   Records of Harris County, to the Southeast corner of a 9.54 acre,

 564-2   more or less, tract of land described in the instrument recorded

 564-3   under Clerk's File No. M462865 of the Official Public Records of

 564-4   Real Property of Harris County,

 564-5         Thence in a westerly direction with the South line of that

 564-6   9.54 acre parcel 782 feet, more or less, to the southwest corner of

 564-7   9.54 acre parcel, being also a point in the East right of way line

 564-8   of Hayes Road,

 564-9         Thence continuing in a westerly direction to a point in the

564-10   West right of way line of Hayes Road, being also the southeast

564-11   corner of the Village West, Section 2 Subdivision, as described by

564-12   plat recorded in Vol. 250, Pg. 1 of the Map Records of Harris

564-13   County,

564-14         Thence continuing in a westerly direction with the South line

564-15   of Village West, Section 2 Subdivision to the southwest corner of

564-16   that subdivision South line of Village West, Section 2 Subdivision,

564-17         Thence continuing in a westerly direction with a westerly

564-18   projection of the South line of Village West, Section 2 Subdivision

564-19   to the point of intersection with the West right of way line of

564-20   Woodland Park Drive,

564-21         Thence in a southerly direction with the West right of way

564-22   line of Woodland Park Drive to the point of intersection with the

564-23   North right of way line of Westheimer Road, also known as Texas

564-24   Farm to Market Road No. 1093,

 565-1         Thence in westerly direction with the North right of way line

 565-2   of Westheimer Road to the point of intersection with the northerly

 565-3   projection of the West line of the Westchase Section 18 subdivision

 565-4   as described in Vol. 291, Pg. 49 of the Map Records of Harris

 565-5   County,

 565-6         Thence in a southerly direction with the northerly projection

 565-7   of the West line of the Westchase Section 18 subdivision, and then

 565-8   continuing in a southerly direction with the West line of the

 565-9   Westchase Section 18 subdivision to the southwest corner of that

565-10   subdivision, being also a point in the North right of way line of

565-11   Richmond Avenue,

565-12         Thence continuing in a southerly direction to a point in the

565-13   South right of way line of Richmond Avenue, being also the

565-14   northwest corner of the Westchase Section 17 subdivision as

565-15   described in Vol. 294, Pg. 3 of the Map Records of Harris County,

565-16         Thence continuing in a southerly direction with the West line

565-17   of the Westchase Section 17 to the southwest corner of that

565-18   subdivision,

565-19         Thence in an easterly direction with the South line of the

565-20   Westchase Section 17 subdivision to the southeast corner reserve

565-21   lot "B" of the Westchase Section 17 subdivision,

565-22         Thence continuing in a easterly direction 150 feet, more or

565-23   less, crossing the power line corridor owned by Houston Lighting

565-24   and Power Company, to the southwest corner of reserve lot "C" of

 566-1   Westchase Section 17,

 566-2         Thence continuing in an easterly direction with the South

 566-3   line of reserve lot "C" of Westchase Section 17 to the southeast

 566-4   corner of that parcel, being also a point in the West right of way

 566-5   line of Wilcrest Drive,

 566-6         Thence in a southerly direction with the West right of way

 566-7   line of Wilcrest Drive to the point of intersection with the South

 566-8   line of the Southern Pacific Railroad right of way, formerly known

 566-9   as the Texas & New Orleans Railroad right of way, said point being

566-10   also the northeast corner of Unrestricted Reserve "A" of the

566-11   Briarleaf Section 2 Subdivision, as described by plat recorded in

566-12   Volume 287, Pg. 12 of the Map Records of Harris County,

566-13         Thence in an easterly direction with the South line of the

566-14   Southern Pacific Railroad right of way to the point of intersection

566-15   with the East right of way line of South Gessner Road,

566-16         Thence in a northerly direction with the East right of way

566-17   line of South Gessner Road to the point of intersection with the

566-18   North line of the Tanglewilde, Section 1 Subdivision as described

566-19   by plat recorded in Vol. 49, Pg. 25 of the Map Records of Harris

566-20   County,

566-21         Thence in an easterly direction with the North line of the

566-22   Tanglewilde, Section 1 Subdivision to the northeast corner of lot

566-23   16, block 1 of the Tanglewilde, Section 1 Subdivision,

566-24         Thence continuing in an easterly direction to the most

 567-1   westerly southwest corner of that certain 7.0276 acre, more or

 567-2   less, parcel of land more particularly described by metes and

 567-3   bounds in the instrument recorded under County Clerk's File No.

 567-4   R247328 of the Official Public Records of Real Property of Harris

 567-5   County,

 567-6         Thence continuing in an easterly direction with the South

 567-7   line of the said 7.0276 acre parcel 328 feet, more or less, to an

 567-8   interior corner of that parcel,

 567-9         Thence in a southerly direction with a westerly line of the

567-10   said 7.0276 acre parcel, 106.41 feet, more or less, to a southwest

567-11   corner of that parcel, being also a point in the North line of the

567-12   Tanglewilde, Section 1 Subdivision,

567-13         Thence in an easterly direction with the North line of the

567-14   Tanglewilde, Section 1 Subdivision, 441.71 feet, more or less, to

567-15   an interior corner of that subdivision, being also a point in the

567-16   West right of way line of Rockyridge Drive,

567-17         Thence in a northerly direction with the West right of way

567-18   line of Rockyridge Drive to the point of intersection with the

567-19   westerly projection of the North line of lot 1, block four of the

567-20   Tanglewilde Section 1 Subdivision,

567-21         Thence in an easterly direction with the westerly projection

567-22   of the North line of lot 1, block four of the Tanglewilde Section 1

567-23   Subdivision to the northwest corner of that lot 1, block four,

567-24         Thence continuing in an easterly direction with the North

 568-1   line of lot 1, block four of the Tanglewilde Section 1 Subdivision

 568-2   to the northeast corner of that lot, being also a point in the West

 568-3   line of the replatted Westmont Subdivision as described by plat

 568-4   recorded in Vol. 75, Pg. 50 of the Map Records of Harris County,

 568-5         Thence in a northerly direction with the West line of the

 568-6   replatted Westmont Subdivision to the northwest corner of said

 568-7   replatted Westmont Subdivision,

 568-8         Thence in an easterly direction with the North line of the

 568-9   replatted Westmont Subdivision to the point of intersection with

568-10   the centerline of Westerland Drive,

568-11         Thence in a northerly direction with the centerline of

568-12   Westerland Drive to the point of intersection with the easterly

568-13   projection of the North right of way line of Ella Lee Lane,

568-14         Thence in a westerly direction with the easterly projection

568-15   of the North right of way line of Ella Lee Lane and continuing with

568-16   the North right of way line of Ella Lee Lane to the POINT OF

568-17   BEGINNING.

568-18         SAVE AND EXCEPT THE FOLLOWING PARCELS OF LAND:

568-19         That certain parcel of land containing approximately 6.7912

568-20   acres, in the Henry Woodruff Survey, Abstract No. 844, described in

568-21   deed dated June 29, 1979, from Southern Pacific Transportation

568-22   Company, as grantor to Crystal Chemical Company, as grantee,

568-23   recorded under County Clerk's File Number G154538 of the Official

568-24   Public Records of Real Property of Harris, County, Texas,

 569-1         That certain parcel of land containing approximately 99.542

 569-2   acres, in the George Bellows Survey, Abstract No. 3, described in

 569-3   deed dated April 30, 1987, from Dresser Industries, Inc., as

 569-4   grantor to Western Atlas International, Inc., as grantee, recorded

 569-5   under County Clerk's File Number L169978 of the Official Public

 569-6   Records of Real Property of Harris, County, Texas,

 569-7         The Condominium project known as Westchase Gardens originally

 569-8   described by declaration filed in Volume 109, PAGE 48 of the

 569-9   Condominium Records of Harris County, Texas,

569-10         The Condominium project known as Terra Courtyard Condominiums

569-11   described by declaration filed in Volume 110, PAGE 124 of the

569-12   Condominium Records of Harris County, Texas,

569-13         The Condominium projects known as River Stone I, II and III

569-14   originally described by declaration filed in Volume 100, PAGE 137

569-15   of the Condominium Records of Harris County, Texas, and amended by

569-16   declaration filed in Volume 101, PAGE 79 of the Condominium Records

569-17   of Harris County, Texas,

569-18         The Condominium project known as Townhomes at Westchase

569-19   Condominiums described by declaration originally filed in Volume

569-20   77, PAGE 1 and subsequently amended by declarations file in Volume

569-21   85, Page 40 and Volume 164, Page 21 of the Condominium Records of

569-22   Harris County, Texas,

569-23         The Condominium project known as The Elm Grove Condominium

569-24   described by declaration filed in Volume 85, PAGE 41 of the

 570-1   Condominium Records of Harris County, Texas,

 570-2         The Condominium project known as Doma Chase Condominium

 570-3   described by declaration filed in Volume 88, PAGE 82 of the

 570-4   Condominium Records of Harris County, Texas,

 570-5         The Condominium project known as Westchase Forest Townhomes

 570-6   described by declaration filed in Volume 144, PAGE 88 of the

 570-7   Condominium Records of Harris County, Texas,

 570-8         The Condominium project known as Westchase Forest Townhomes

 570-9   described by declaration filed in Volume 145, PAGE 98 of the

570-10   Condominium Records of Harris County, Texas,

570-11         The Condominium project known as Westchase Forest Townhomes

570-12   described by declaration filed in Volume 152, PAGE 39 of the

570-13   Condominium Records of Harris County, Texas,

570-14         The Condominium project known as Parkwest Place Condominiums

570-15   described by declaration filed in Volume 160, PAGE 28 of the

570-16   Condominium Records of Harris County, Texas,

570-17         The Condominium project known as Woodchase Village

570-18   Condominiums described by declaration filed in Volume 92, PAGE 128

570-19   of the Condominium Records of Harris County, Texas,

570-20         The Condominium project known as Meadowridge described by

570-21   declaration filed in Volume 123, PAGE 51 of the Condominium Records

570-22   of Harris County, Texas,

570-23         The Condominium project known as SunStream Villas, A

570-24   Condominium Community described by declaration filed in Volume 90,

 571-1   PAGE 1 of the Condominium Records of Harris County, Texas,

 571-2         The Residential Subdivision known as Sunridge Villas

 571-3   described by declaration filed in Volume 290, PAGE 70 of the Map

 571-4   Records of Harris County, Texas,

 571-5         The Condominium project known as Sunridge Villas II

 571-6   Condominiums described by declaration filed in Volume 134, PAGE 81

 571-7   of the Condominium Records of Harris County, Texas,

 571-8         The Condominium project known as Idlewood described by

 571-9   declaration filed in Volume 59, PAGE 23 of the Condominium Records

571-10   of Harris County, Texas,

571-11         The Residential Subdivision known as Wind River Park Townhome

571-12   Apartments described by declaration filed in Volume 265, PAGE 42 of

571-13   the Map Records of Harris County, Texas.

571-14         Sec. 376.045.  FINDINGS RELATING TO BOUNDARIES.  The

571-15   boundaries and field notes of the district form a closure.  If a

571-16   mistake is made in the field notes or in copying the field notes in

571-17   the legislative process, the mistake does not in any way affect

571-18   the:

571-19               (1)  organization, existence, and validity of the

571-20   district;

571-21               (2)  right of the district to issue any type of bonds

571-22   or refunding bonds for the purposes for which the district is

571-23   created or to pay the principal of and interest on the bonds;

571-24               (3)  right of the district to impose and collect

 572-1   assessments or taxes; or

 572-2               (4)  legality or operation of the district or its

 572-3   governing body.

 572-4         Sec. 376.046.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

 572-5   (a)  All the land and other property included in the district will

 572-6   be benefited by the improvements and services to be provided by the

 572-7   district under powers conferred by Section 52, Article III, Section

 572-8   59, Article XVI, and Section 52-a, Article III, Texas Constitution,

 572-9   and other powers granted under this subchapter, and the district is

572-10   created to serve a public use and benefit.

572-11         (b)  The creation of the district is in the public interest

572-12   and is essential to:

572-13               (1)  further the public purposes of the development and

572-14   diversification of the economy of the state; and

572-15               (2)  eliminate unemployment and underemployment and

572-16   develop or expand transportation and commerce.

572-17         (c)  The district will:

572-18               (1)  promote the health, safety, and general welfare of

572-19   residents, employers, employees, visitors, consumers in the

572-20   district, and the general public;

572-21               (2)  provide needed funding for the Westchase area to

572-22   preserve, maintain, and enhance the economic health and vitality of

572-23   the area as a community and business center; and

572-24               (3)  further promote the health, safety, welfare, and

 573-1   enjoyment of the public by providing pedestrian ways and by

 573-2   landscaping and developing certain areas in the district, which are

 573-3   necessary for the restoration, preservation, and enhancement of

 573-4   scenic and aesthetic beauty.

 573-5         (d)  Pedestrian ways along or across a street, whether at

 573-6   grade or above or below the surface, and street lighting, street

 573-7   landscaping, and street art objects are parts of and necessary

 573-8   components of a street and are considered to be a street or road

 573-9   improvement.

573-10         (e)  The district will not act as the agent or

573-11   instrumentality of any private interest even though many private

573-12   interests will be benefited by the district, as will the general

573-13   public.

573-14         Sec. 376.047.  APPLICATION OF OTHER LAW.  Except as otherwise

573-15   provided by this subchapter, Chapter 375 applies to the district.

573-16         Sec. 376.048.  CONSTRUCTION OF SUBCHAPTER.  This subchapter

573-17   shall be liberally construed in conformity with the findings and

573-18   purposes stated in this subchapter.

573-19         Sec. 376.049.  BOARD OF DIRECTORS IN GENERAL.  (a)  The

573-20   district is governed by a board of 17 directors who serve staggered

573-21   terms of four years with eight or nine members' terms expiring June

573-22   1 of each odd-numbered year.

573-23         (b)  Subchapter D, Chapter 375, applies to the board to the

573-24   extent that subchapter does not conflict with this subchapter.

 574-1         Sec. 376.050.  APPOINTMENT OF DIRECTORS; VACANCY.  The mayor

 574-2   and members of the governing body of the municipality shall appoint

 574-3   directors from persons recommended by the board.  A vacancy in the

 574-4   office of director because of the death, resignation, or removal of

 574-5   a director shall be filled by the remaining members of the board by

 574-6   appointing a qualified person for the unexpired term.  The mayor

 574-7   and members of the governing body of the municipality shall appoint

 574-8   as directors for the positions indicated persons representing the

 574-9   following interests:

574-10               (1)  positions 1, 11, and 12 must represent owners of

574-11   multifamily rental housing with a minimum of 200 rental units;

574-12               (2)  position 2 must be a lessee of office space of at

574-13   least 30,000 square feet of rentable area;

574-14               (3)  positions 9 and 10 must represent owners of office

574-15   facilities with a minimum of 500 employees or taxable value in

574-16   excess of $10 million;

574-17               (4)  positions 8, 13, and 14 must represent owners of

574-18   multitenant office buildings;

574-19               (5)  position 15 must represent owners of multitenant

574-20   retail property or major retail tenants of 20,000 square feet or

574-21   more;

574-22               (6)  position 16 must represent owners of temporary

574-23   lodging facilities with on-site food service;

574-24               (7)  position 17 must represent owners of undeveloped

 575-1   property with a contiguous area of 5 acres or more; and

 575-2               (8)  positions 3, 4, 5, 6, and 7 must represent the

 575-3   district at large and any person qualified to serve on the board as

 575-4   provided by Section 375.063 may be appointed for those positions.

 575-5         Sec. 376.051.  EX OFFICIO MEMBERS OF BOARD OF DIRECTORS.  The

 575-6   board may appoint nonvoting ex officio members to serve on the

 575-7   board.

 575-8         Sec. 376.052.  POWERS OF DISTRICT.  (a)  The district has:

 575-9               (1)  all powers necessary or required to accomplish the

575-10   purposes for which the district was created;

575-11               (2)  the rights, powers, privileges, authority, and

575-12   functions of a district created under Chapter 375;

575-13               (3)  the powers given to a corporation under Section

575-14   4B, the Development Corporation Act of 1979 (Article 5190.6,

575-15   Vernon's Texas Civil Statutes), and the power to own, operate,

575-16   acquire, construct, lease, improve, and maintain projects described

575-17   by that section;

575-18               (4)  the power to impose ad valorem taxes, assessments,

575-19   or impact fees in accordance with Chapter 375 to provide

575-20   improvements and services for a project or activity the district is

575-21   authorized to acquire, construct, improve, or provide under this

575-22   subchapter; and

575-23               (5)  the power to correct, add to, or delete

575-24   assessments from its assessment rolls after notice and hearing as

 576-1   provided by Subchapter F, Chapter 375.

 576-2         (b)  The district may not impose a sales and use tax and may

 576-3   not acquire property through eminent domain.

 576-4         Sec. 376.053.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS

 576-5   AFFECTING PROPERTY.  (a)  If the district, in exercising a power

 576-6   conferred by this subchapter, requires a relocation, adjustment,

 576-7   raising, lowering, rerouting, or changing of the grade or the

 576-8   construction of any of the following items, the district must take

 576-9   that required action at the sole expense of the district:

576-10               (1)  a street, alley, highway, overpass, underpass,

576-11   road, railroad track, bridge, facility, or other property;

576-12               (2)  an electric line, conduit, facility, or other

576-13   property;

576-14               (3)  a telephone or telegraph line, conduit, facility,

576-15   or other property;

576-16               (4)  a gas transmission or distribution pipe, pipeline,

576-17   main, facility, or other property;

576-18               (5)  a water, sanitary sewer, or storm sewer pipe,

576-19   pipeline, main, facility, or other property;

576-20               (6)  a cable television line, cable, conduit, facility,

576-21   or other property; or

576-22               (7)  another pipeline, facility, or other property

576-23   relating to the pipeline.

576-24         (b)  The district shall bear damages that are suffered by

 577-1   owners of the facility or other property.

 577-2         Sec. 376.054.  RELATION TO OTHER LAW.  If any provision of a

 577-3   law referred to in Section 376.052 is in conflict with or is

 577-4   inconsistent with this subchapter, this subchapter prevails.  Any

 577-5   law referred to in this subchapter that is not in conflict or

 577-6   inconsistent with this subchapter is adopted and incorporated by

 577-7   reference.

 577-8         Sec. 376.055.  REQUIREMENTS FOR FINANCING SERVICES AND

 577-9   IMPROVEMENTS.  The board may not finance services and improvement

577-10   projects under this subchapter unless a written petition requesting

577-11   those improvements or services has been filed with the board.  The

577-12   petition must be signed by:

577-13               (1)  the owners of a majority of the assessed value of

577-14   real property in the district as determined by the most recent

577-15   certified county property tax rolls; or

577-16               (2)  at least 50 persons who own property in the

577-17   district, if there are more than 50 persons who own property in the

577-18   district as determined by the most recent certified county property

577-19   tax rolls.

577-20         Sec. 376.056.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The

577-21   board by resolution shall establish the number of directors'

577-22   signatures and the procedure required for a disbursement or

577-23   transfer of the district's money.

577-24         Sec. 376.057.  BONDS.  (a)  The district may issue bonds or

 578-1   other obligations payable in whole or in part from ad valorem

 578-2   taxes, assessments, impact fees, revenues, grants, or other money

 578-3   of the district, or any combination of those sources of money, to

 578-4   pay for any authorized purpose of the district.

 578-5         (b)  Bonds or other obligations of the district may be issued

 578-6   in the form of bonds, notes, certificates of participation,

 578-7   including other instruments evidencing a proportionate interest in

 578-8   payments to be made by the district, or other obligations that are

 578-9   issued in the exercise of the district's borrowing power and may be

578-10   issued in bearer or registered form or may be issued in a form not

578-11   represented by an instrument but with their transfer registered on

578-12   books maintained by or on behalf of the district.

578-13         (c)  Except as provided by Subsection (d), the district must

578-14   obtain the municipality's approval of:

578-15               (1)  the issuance of bonds for an improvement project;

578-16   and

578-17               (2)  the plans and specifications of the improvement

578-18   project to be financed by the bonds.

578-19         (d)  If the district obtains the municipality's approval of a

578-20   capital improvements budget for a specified period not to exceed

578-21   five years, the district may finance the capital improvements and

578-22   issue bonds specified in the budget without further municipal

578-23   approval.

578-24         (e)  Before the district issues bonds, the district shall

 579-1   submit the bonds and the record of proceedings of the district

 579-2   relating to authorization of the bonds to the attorney general for

 579-3   approval as provided by Chapter 53, Acts of the 70th Legislature,

 579-4   2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil

 579-5   Statutes).

 579-6         Sec. 376.058.  ASSESSMENTS.  (a)  The board may impose and

 579-7   collect an assessment for any purpose authorized by this

 579-8   subchapter.

 579-9         (b)  Assessments, reassessments, or assessments resulting

579-10   from an addition to or correction of the assessment roll by the

579-11   district, penalties and interest on an assessment or reassessment,

579-12   expenses of collection, and reasonable attorney's fees incurred by

579-13   the district:

579-14               (1)  are a first and prior lien against the property

579-15   assessed;

579-16               (2)  are superior to any other lien or claim other than

579-17   a lien or claim for county, school district, or municipal ad

579-18   valorem taxes; and

579-19               (3)  are the personal liability of and charge against

579-20   the owners of the property even if the owners are not named in the

579-21   assessment proceedings.

579-22         (c)  The lien is effective from the date of the resolution of

579-23   the board levying the assessment until the assessment is paid.  The

579-24   board may enforce the lien in the same manner that the board may

 580-1   enforce an ad valorem tax lien against real property.

 580-2         (d)  The district may not impose an assessment on the

 580-3   property, equipment, or facilities of a public utility, as defined

 580-4   by Section 2.0011 or 3.002, Public Utility Regulatory Act of 1995

 580-5   (Article 1446c-0, Vernon's Texas Civil Statutes).

 580-6         Sec. 376.059.  APPROVAL OF CERTAIN IMPROVEMENT PROJECTS.  The

 580-7   district must obtain the municipality's approval of the plans and

 580-8   specifications of any district improvement project related to the

 580-9   use of land owned by the municipality, an easement granted by the

580-10   municipality, or a right-of-way of a street, road, or highway.

580-11         Sec. 376.060.  ELECTIONS.  (a)  In addition to the elections

580-12   the district must hold under Subchapter L, Chapter 375, the

580-13   district shall hold an election in the manner provided by that

580-14   subchapter to obtain voter approval before the district imposes a

580-15   maintenance tax or issues bonds payable from ad valorem taxes or

580-16   assessments.

580-17         (b)  The board may submit multiple purposes in a single

580-18   proposition at an election.

580-19         (c)  The board may not call an election under this subchapter

580-20   unless a written petition requesting an election has been filed

580-21   with the board.  The petition must be signed by:

580-22               (1)  the owners of a majority of the assessed value of

580-23   real property in the district as determined by the most recent

580-24   certified county property tax rolls; or

 581-1               (2)  at least 50 persons who own property in the

 581-2   district, if there are more than 50 persons who own property in the

 581-3   district as determined by the most recent certified county property

 581-4   tax rolls.

 581-5         Sec. 376.061.  IMPACT FEES.  (a)  The district may impose an

 581-6   impact fee for an authorized purpose as provided by Subchapter G,

 581-7   Chapter 375.

 581-8         (b)  The district may not impose an impact fee on the

 581-9   property, equipment, or facilities of a public utility, as defined

581-10   by Section 2.0011 or 3.002, Public Utility Regulatory Act of 1995

581-11   (Article 1446c-0, Vernon's Texas Civil Statutes).

581-12         Sec. 376.062.  MAINTENANCE TAX.  (a)  If authorized at an

581-13   election held in accordance with Section 376.060, the district may

581-14   impose and collect an annual ad valorem tax on taxable property in

581-15   the district for the maintenance and operation of the district and

581-16   the improvements constructed or acquired by the district or for the

581-17   provision of services to industrial or commercial businesses,

581-18   residents, or property owners.

581-19         (b)  The board shall determine the tax rate.

581-20         Sec. 376.063.  DISSOLUTION OF DISTRICT.  (a)  The district

581-21   may be dissolved as provided by Subchapter M, Chapter 375.

581-22         (b)  Notwithstanding Section 375.264, a district that has

581-23   debt may be dissolved as provided by Subchapter M, Chapter 375.  If

581-24   the district has debt and is dissolved, the district shall remain

 582-1   in existence solely for the limited purpose of discharging its

 582-2   bonds or other obligations according to their terms.

 582-3         Sec. 376.064.  CONTRACTS.  (a)  To protect the public

 582-4   interest, the district may contract with the municipality or county

 582-5   for the provision of law enforcement services by the county or

 582-6   municipality in the district on a fee basis.

 582-7         (b)  The municipality, county, or another political

 582-8   subdivision of the state, without further authorization, may

 582-9   contract with the district to implement a project of the district

582-10   or assist the district in providing the services authorized under

582-11   this subchapter.  A contract under this subsection may:

582-12               (1)  be for a period on which the parties agree;

582-13               (2)  include terms on which the parties agree;

582-14               (3)  be payable from taxes or any other sources of

582-15   revenue that may be available for such purpose; or

582-16               (4)  provide that taxes or other revenue collected at a

582-17   district project or from a person using or purchasing a commodity

582-18   or service at a district project may be paid or rebated to the

582-19   district under the terms of the contract.

582-20         (c)  The district may enter into a contract, lease, or other

582-21   agreement with or make or accept grants and loans to or from:

582-22               (1)  the United States;

582-23               (2)  the state or a state agency;

582-24               (3)  any county, any municipality, or another political

 583-1   subdivision of the state;

 583-2               (4)  a public or private corporation, including a

 583-3   nonprofit corporation created by the board under other law; or

 583-4               (5)  any other person.

 583-5         (d)  The district may perform all acts necessary for the full

 583-6   exercise of the powers vested in the district on terms and for the

 583-7   period the board determines advisable.

 583-8         Sec. 376.065.  COMPETITIVE BIDDING.  The district may enter a

 583-9   contract for more than $10,000 for services, improvements, or the

583-10   purchase of property, including materials, machinery, equipment, or

583-11   supplies, only as provided by Subchapter K, Chapter 375.

583-12         Sec. 376.066.  INITIAL DIRECTORS.  (a)  The initial board

583-13   consists of the following persons:

583-14         Position Number                      Director

583-15                1                         Paul S. McDonald

583-16                2                         Don R. Mathis

583-17                3                         Donna J. Flowers

583-18                4                         Steve Hilton

583-19                5                         Bruce Wilkerson

583-20                6                         James R. Murphy

583-21                9                         Jack W. Michael

583-22               10                         Mark Taylor

583-23               11                         Michael W. Biggs

583-24               12                         Ted M. Kerr

 584-1               13                         David J. Lee

 584-2               14                         Douglas L. Elliott

 584-3               15                         Candy A. Tillack

 584-4               16                         Fred S. Kummer III

 584-5               17                         Andrew R. Lear

 584-6         (b)  The board shall appoint the initial directors for

 584-7   positions 7 and 8.

 584-8         (c)  The terms of the initial directors for positions 1

 584-9   through 8 expire June 1, 1997, and the terms of the initial

584-10   directors for positions 9 through 17 expire June 1, 1999.

584-11         (d)  This section expires September 1, 1999.

584-12            (Sections 376.067-376.080 reserved for expansion

584-13         SUBCHAPTER C.  GREATER GREENSPOINT MANAGEMENT DISTRICT

584-14         Sec. 376.081.  CREATION OF DISTRICT.  (a)  A special district

584-15   to be known as the "Greater Greenspoint Management District of

584-16   Harris County" exists as a governmental agency, a body politic and

584-17   corporate, and a political subdivision of the state.

584-18         (b)  The name of the district may be changed by resolution of

584-19   the board.

584-20         (c)  The creation of the district is essential to accomplish

584-21   the purposes of Section 52, Article III, Section 59, Article XVI,

584-22   and Section 52-a, Article III, Texas Constitution, and to other

584-23   public purposes stated in this subchapter.

584-24         Sec. 376.082.  DECLARATION OF INTENT.  (a)  The creation of

 585-1   the district is necessary to promote, develop, encourage, and

 585-2   maintain employment, commerce, economic development, the public

 585-3   welfare, transportation, housing, tourism, convention and

 585-4   convocation activities, recreation, arts, entertainment, and safety

 585-5   in the greater Greenspoint area of the county.

 585-6         (b)  The creation of the district and this legislation is not

 585-7   to be interpreted to relieve the county or the municipality from

 585-8   providing the level of services, as of August 26, 1991, to the area

 585-9   in the district or to release the county or the municipality from

585-10   the obligations each entity has to provide services to that area.

585-11   The district is created to supplement and not supplant the

585-12   municipal or county services in the area in the district.

585-13         (c)  By creating the district and in authorizing the

585-14   municipality, county, and other political subdivisions to contract

585-15   with the district, the legislature has established a program to

585-16   accomplish the public purposes set out in Section 52-a, Article

585-17   III, Texas Constitution.

585-18         Sec. 376.083.  DEFINITIONS.  In this subchapter:

585-19               (1)  "Board" means the board of directors of the

585-20   district.

585-21               (2)  "County" means Harris County, Texas.

585-22               (3)  "District" means the Greater Greenspoint

585-23   Management District of Harris County.

585-24               (4)  "Municipality" means the City of Houston, Texas.

 586-1         Sec. 376.084.  BOUNDARIES.  The district includes all the

 586-2   territory contained in the following described area:

 586-3         BEING 7,370 acres, more or less, out of the B.B.B. & C.R.R.

 586-4   Abstract 174, B.B.B. & C.R.R. Abstract 175, Peter Craft Abstract

 586-5   201, Simon Contreras Abstract 220, Francis Dirks Abstract 235,

 586-6   E. Farias Abstract 278, S. L. Noble Abstract 608, Daniel O'Neal

 586-7   Abstract 617, M. Sevey Abstract 699, Jesse B. Sanders Abstract 732,

 586-8   John Schnell Abstract 741, P. Sullivan Abstract 749, P. Sullivan

 586-9   Abstract 750, S. W. Upshaw Abstract 821, C. Walter Abstract 849,

586-10   W.C.R.R.CO. Abstract 889, W.C.R.R.CO. Abstract 895, W.C.R.R.CO.

586-11   Abstract 925, W.C.R.R.CO. Abstract 937, John Durkee Abstract 1069,

586-12   D. U. Weld Abstract 1133, J. & R. Schmidt Abstract 1286,

586-13   S. S. Reynolds Abstract 1356, J. Schmidt Abstract 1453,

586-14   J. H. Stewart Abstract 1493, J. H. Stewart Abstract 1494,

586-15   D. U. Weld Abstract 1496, Robert Windt Abstract 1500, located in

586-16   Harris County, Texas and described by metes and bounds as follows:

586-17         BEGINNING at the southeast corner of the John E. Durkee

586-18   League, Abstract 1069;

586-19         Thence in a northerly direction with the east line of

586-20   Abstract 1069 to the point of intersection with the southern right

586-21   of way line of West Road;

586-22         Thence in an easterly direction with the southern right of

586-23   way line of West Road to the point of intersection with a southerly

586-24   projection of the west boundary line of the Green Ridge North

 587-1   subdivision, Section 1 as described by plat recorded in Volume 139,

 587-2   Page 40, of the Harris County Map Records (H.C.M.R.);

 587-3         Thence in a northerly direction with the west line of Green

 587-4   Ridge North Section 1, and the southerly projection thereof, at 370

 587-5   feet, more or less, pass the southern right of way line of Woodson

 587-6   Road, continuing to the most northern northwest corner of Green

 587-7   Ridge North Section 1;

 587-8         Thence in a northerly direction with a projection of the west

 587-9   line Green Ridge North Section 1 to the point of intersection with

587-10   the center right of way line of Hardwicke Road;

587-11         Thence in an easterly direction with the center right of way

587-12   line of Hardwicke Road to the point of intersection with the center

587-13   right of way line of Chipman Lane;

587-14         Thence in a northerly direction with the center right of way

587-15   line of Chipman Lane and a northerly projection thereof to the

587-16   point of intersection with the center right of way line of Goodson

587-17   Drive;

587-18         Thence in an easterly direction with the center right of way

587-19   line of Goodson Drive to the point of intersection with the center

587-20   right of way line of Imperial Valley Drive;

587-21         Thence in a northerly direction with the center right of way

587-22   line of Imperial Valley Drive to the point of intersection with an

587-23   easterly projection of the southern boundary line of Imperial

587-24   Valley subdivision, Section 2 as described together with Section 1

 588-1   by Plat Recorded in Volume 130, Page 27, H.C.M.R.;

 588-2         Thence in a westerly direction with the southern boundary

 588-3   line of Imperial Valley Section 2, and the easterly projection, to

 588-4   the southwest corner of that subdivision;

 588-5         Thence in a northerly direction with the western boundary of

 588-6   the Imperial Valley Sections 1 & 2, being also the western right of

 588-7   way line of Wagon Road, to the northwest corner of Imperial Valley

 588-8   Section 1, being a point in the south line of Aldine-Bender Road

 588-9   (F.M. 525);

588-10         Thence in an easterly direction with the south line of

588-11   Aldine-Bender Road (F.M. 525) to the point of intersection with the

588-12   eastern right of way line of the Hardy Toll Road;

588-13         Thence in a northerly direction with the eastern right of way

588-14   line of the Hardy Toll Road to the point of intersection with the

588-15   northern right of way line of Rankin Road;

588-16         Thence in a westerly direction with the northern right of way

588-17   line of Rankin Road to the point of intersection with the eastern

588-18   boundary line of the S. L. Noble League, Abstract 608;

588-19         Thence in a northerly direction with the eastern boundary

588-20   line of Abstract 608, 1,244 feet, more or less, to a point marking

588-21   the southeast corner of the parcel of land conveyed by deed from

588-22   Bird Pyle to O. P. Hairgrove, recorded in Volume 247, Page 434, of

588-23   the Harris County Deed Records, (The Pyle Parcel);

588-24         Thence in a westerly direction, along the south line of the

 589-1   Pyle Parcel, one mile, more or less, to the southwest corner of

 589-2   that parcel, being a point in the western boundary line of the

 589-3   S. L. Noble League, Abstract 608, being also in the eastern line of

 589-4   the P. Sullivan League, Abstract 750;

 589-5         Thence in a northerly direction with the east line of

 589-6   Abstract 750 to the northeast corner of that league;

 589-7         Thence in a westerly direction with the north line of

 589-8   Abstract 750 to the northwest corner of that league;

 589-9         Thence in a southerly direction with the west line of

589-10   Abstract 750 to the southwest corner of that league, being also a

589-11   point in the north line of the Daniel O'Neal League, Abstract 617;

589-12         Thence in a westerly direction with the north line of

589-13   Abstract 617 to a point, being both the northwest corner of that

589-14   league and the northeast corner of the John Schnell League,

589-15   Abstract 741;

589-16         Thence continuing in an westerly direction with the north

589-17   line of Abstract 741 to the northwest corner of that league;

589-18         Thence in a southerly direction with the west line of

589-19   Abstract 741 to the southwest corner of that league;

589-20         Thence in an easterly direction with the south line of

589-21   Abstract 741 to the southeast corner of that league, being also a

589-22   point in the western line of the B.B.B. & C.R.R. League, Abstract

589-23   174;

589-24         Thence in a southerly direction with the west line Abstract

 590-1   174, to the point of intersection with the center line of Greens

 590-2   Bayou;

 590-3         Thence in a southwesterly direction with the center line of

 590-4   Greens Bayou to the point of intersection with the north right of

 590-5   way line of Gears Road;

 590-6         Thence in a westerly direction with the north right of way

 590-7   line of Gears Road to the point of intersection with a northerly

 590-8   projection of the western boundary of Greens Crossing, Section One,

 590-9   a commercial subdivision described by plat recorded in Volume 303,

590-10   Page 103, H.C.M.R.;

590-11         Thence in a southerly direction with the western boundary of

590-12   Greens Crossing, Section One, and the northerly projection thereof,

590-13   to the southwest corner of that subdivision;

590-14         Thence in an easterly direction with the most southern

590-15   boundary of Greens Crossing, Section One, and an easterly

590-16   projection thereof, to the point of intersection with the center

590-17   line of Greens Bayou;

590-18         Thence in a southwesterly direction with the center line of

590-19   Greens Bayou to the point of intersection with the northern right

590-20   of way line the Sam Houston Toll Road (Beltway 8);

590-21         Thence in a westerly direction with the north right of way

590-22   line of Beltway 8 to the point of intersection with the east right

590-23   of way line of Veterans Memorial Parkway, formerly known as

590-24   Steubner-Airline Road;

 591-1         Thence in a southerly direction with the east right of way

 591-2   line of Veterans Memorial Parkway to the point of intersection with

 591-3   the south right of way line of Aldine-Western Road;

 591-4         Thence in an easterly direction with the south right of way

 591-5   line of Aldine-Western Road and an easterly projection thereof, to

 591-6   the point of intersection with the western boundary line of the

 591-7   D.U. Weld League, Abstract 1496;

 591-8         Thence in a southerly direction with the west line of the

 591-9   D.U. Weld League, Abstract 1496 to the southwest corner of that

591-10   league, being also the northwest corner of the J. H. Stewart

591-11   League, Abstract 1493;

591-12         Thence in a southerly direction with west line of Abstract

591-13   1493 to the southeast corner of the S.S. Reynolds League, Abstract

591-14   1356;

591-15         Thence in a westerly direction with the south line of

591-16   Abstract 1356 to a northeastern corner of the Fallbrook

591-17   subdivision, Section 3, as described by plat recorded in Volume

591-18   232, Page 11, H.C.M.R.;

591-19         Thence in a southerly direction with the east line Fallbrook

591-20   Section 3 to the southeast corner of that subdivision, being also

591-21   the northeast corner of the Fallbrook subdivision, Section 2, as

591-22   described by plat recorded in Volume 214, Page 10, H.C.M.R.;

591-23         Thence in a southerly direction with an eastern boundary of

591-24   Fallbrook Section 2 to an interior corner of that subdivision;

 592-1         Thence in an easterly direction with a north line of

 592-2   Fallbrook Section 2, to the most easterly northeast corner of that

 592-3   section, being also the most northerly northwest corner of the

 592-4   Fallbrook subdivision, Section 1 as described by plat recorded in

 592-5   Volume 167, Page 91, H.C.M.R.;

 592-6         Thence in an easterly direction with the northern most

 592-7   Boundary of Fallbrook Section 1 to the point of intersection with

 592-8   the west line of the John E. Durkee League, Abstract 1069;

 592-9         Thence in a southerly direction with the west line of

592-10   Abstract 1069 to the southwest corner of that league;

592-11         Thence in an easterly direction with the south line of

592-12   Abstract 1069 to the southeast corner of that league, and the POINT

592-13   OF BEGINNING.

592-14         There is excluded from the district the following tract of

592-15   land which is described by metes and bounds as follows:

592-16         BEGINNING at a 1/2 inch iron rod in the Northeast

592-17   right-of-way line of Stuebner Airline Road at its intersection with

592-18   the North line of said Francis Dirks Survey;

592-19         THENCE South 89 50' 32" East, 44.25 feet to a 1/2 inch iron

592-20   rod for corner at the Northeast corner of said Francis Dirks

592-21   Survey;

592-22         THENCE South 00 14' 44" East, along the East line of said

592-23   Francis Dirks Survey, 23.61 feet to a 3/4 inch iron pipe for corner

592-24   at the Northwest corner of said Jesse B. Sanders Survey;

 593-1         THENCE North 89 55' 25" East, along the North line of said

 593-2   Jesse B. Sanders Survey, 2,646.75 feet to a 5/8 inch iron rod for

 593-3   corner at the Northeast corner of said Sanders Survey;

 593-4         THENCE South 00 15' 13" West, along the East line of said

 593-5   Sanders Survey, 1,047.80 feet to a 1-1/4 inch iron pipe for corner

 593-6   on the North right-of-way line of Aldine Western Road (based on a

 593-7   width of 60.00 feet);

 593-8         THENCE South 89 46' 28" West, along the North right-of-way

 593-9   line of said Aldine Western Road, 1,987.35 feet to a 5/8 inch iron

593-10   rod for corner in the Northeasterly right-of-way line of Stuebner

593-11   Airline Road (based on a width of 80.00 feet);

593-12         THENCE North 33 01' 05" West, along the Northeasterly

593-13   right-of-way line of Stuebner Airline Road, 334.62 feet to a point

593-14   for corner on the South line of a 130.00 foot wide Harris County

593-15   Flood Control District easement and the beginning point of a curve

593-16   to the left;

593-17         THENCE Northeasterly, along the arc of said curve to the left

593-18   having a chord of North 61 54' 19" East, 479.94 feet, a radius of

593-19   966.84 feet, a central angle of 28 44' 32", a distance of 485.01

593-20   feet to a point for corner;

593-21         THENCE North 39 40' 00" West, along the Northeasterly line

593-22   of said drainage easement, 130.16 feet to a point for corner;

593-23         THENCE South 47 32' 03" West, along the Northerly line of

593-24   said drainage easement, 6.36 feet to a point for corner and the

 594-1   beginning point of a curve to the right;

 594-2         THENCE Westerly, continuing along the Northerly line of said

 594-3   drainage easement, along the arc of said curve to the right having

 594-4   a chord of South 63 28' 44.5" West, 459.78 feet, a radius of

 594-5   836.84 feet, a central angel of 31 53' 23", a distance of 465.77

 594-6   feet to a point for corner on the Northwesterly right-of-way line

 594-7   of Stuebner Airline Road;

 594-8         THENCE North 33 01' 05" West, along the Northeasterly

 594-9   right-of-way line of said Stuebner Airline Road, 826.04 feet to the

594-10   PLACE OF BEGINNING, containing 54.832 acres of land, more or less.

594-11   SAVE AND EXCEPT ALL AREA TAKEN BY CONDEMNATION BY THE STATE OF

594-12   TEXAS FOR SAM HOUSTON TOLLWAY (BELTWAY 8).

594-13         Sec. 376.085.  FINDINGS RELATING TO BOUNDARIES.  The

594-14   boundaries and field notes of the district form a closure.  If a

594-15   mistake is made in the field notes or in copying the field notes in

594-16   the legislative process, the mistake does not in any way affect

594-17   the:

594-18               (1)  organization, existence, and validity of the

594-19   district;

594-20               (2)  right of the district to issue any type of bonds

594-21   or refunding bonds for the purposes for which the district is

594-22   created or to pay the principal of and interest on the bonds;

594-23               (3)  right of the district to impose and collect

594-24   assessments or taxes; or

 595-1               (4)  legality or operation of the district or its

 595-2   governing body.

 595-3         Sec. 376.086.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)

 595-4   All the land and other property included within the boundaries of

 595-5   the district will be benefited by the improvements and services to

 595-6   be provided by the district under powers conferred by Section 52,

 595-7   Article III, Section 59, Article XVI, and Section 52-a, Article

 595-8   III, Texas Constitution, and other powers granted under this

 595-9   subchapter, and the district is created to serve a public use and

595-10   benefit.

595-11         (b)  The creation of the district is in the public interest

595-12   and is essential to:

595-13               (1)  further the public purposes of the development and

595-14   diversification of the economy of the state; and

595-15               (2)  eliminate unemployment and underemployment and

595-16   develop or expand transportation and commerce.

595-17         (c)  The district will:

595-18               (1)  promote the health, safety, and general welfare of

595-19   residents, employers, employees, and consumers in the district, and

595-20   the general public;

595-21               (2)  provide needed funding for the greater Greenspoint

595-22   area to preserve, maintain, and enhance the economic health and

595-23   vitality of the area as a community and business center; and

595-24               (3)  further promote the health, safety, welfare, and

 596-1   enjoyment of the public by providing pedestrian ways and by

 596-2   landscaping and developing certain areas in the district, which are

 596-3   necessary for the restoration, preservation, and enhancement of

 596-4   scenic and aesthetic beauty.

 596-5         (d)  Pedestrian ways along or across a street, whether at

 596-6   grade or above or below the surface, and street lighting, street

 596-7   landscaping, and street art objects are parts of and necessary

 596-8   components of a street and are considered to be a street or road

 596-9   improvement.

596-10         (e)  The district will not act as the agent or

596-11   instrumentality of any private interest even though many private

596-12   interests will be benefited by the district, as will the general

596-13   public.

596-14         Sec. 376.087.  CONSTRUCTION OF SUBCHAPTER.  This subchapter

596-15   shall be liberally construed in conformity with the legislative

596-16   findings and purposes stated in this subchapter.

596-17         Sec. 376.088.  BOARD OF DIRECTORS IN GENERAL.  The district

596-18   is governed by a board of 22 directors who serve staggered terms of

596-19   four years with 11 members' terms expiring June 1 of each

596-20   odd-numbered year.

596-21         Sec. 376.089.  APPOINTMENT OF DIRECTORS; VACANCY.  (a) A

596-22   vacancy in the office of director because of the death,

596-23   resignation, or removal of a director shall be filled by the

596-24   remaining members of the board by appointing a qualified person for

 597-1   the unexpired term.

 597-2         (b)  Directors shall be appointed and qualify as provided by

 597-3   Subchapter D, Chapter 375.

 597-4         Sec. 376.090.  POWERS OF DISTRICT.  (a)  The district has:

 597-5               (1)  all powers necessary or required to accomplish the

 597-6   purposes for which the district was created;

 597-7               (2)  the rights, powers, privileges, and authority of a

 597-8   district created under Chapter 375;

 597-9               (3)  the powers given to a corporation created under

597-10   the Development Corporation Act of 1979 (Article 5190.6, Vernon's

597-11   Texas Civil Statutes), the power to own, operate, acquire,

597-12   construct, lease, improve, and maintain the projects described in

597-13   that act and in this subchapter and any other authorized project,

597-14   and the power to acquire land and other property in accordance with

597-15   Section 4B, Development Corporation Act of 1979 (Article 5190.6,

597-16   Vernon's Texas Civil Statutes);

597-17               (4)  except as provided by Section 376.098, the power

597-18   to impose ad valorem taxes, assessments, or impact fees in

597-19   accordance with Chapter 375 to provide improvements and services

597-20   for a project or activity the district is authorized to acquire,

597-21   construct, improve, or provide under this subchapter;

597-22               (5)  the power to correct, add to, or delete

597-23   assessments from its assessment rolls and to collect assessments

597-24   due under the corrections, additions, and deletions after notice

 598-1   and hearing in the manner required by Section 375.115; and

 598-2               (6)  the power to create, tax, assess, and hold

 598-3   elections in a defined area under Chapter 54, Water Code, to

 598-4   provide improvements or services in the defined area for any

 598-5   project or activity the district is authorized to acquire,

 598-6   construct, improve, or provide.

 598-7         (b)  The district may not impose a sales and use tax.

 598-8         Sec. 376.091.  RELATION TO OTHER LAW.  If any provision of a

 598-9   law referenced in this subchapter is in conflict with or

598-10   inconsistent with this subchapter, this subchapter prevails.  Any

598-11   law referenced in this subchapter that is not in conflict with or

598-12   inconsistent with this subchapter is adopted and incorporated by

598-13   reference and may be used by the district independently of each

598-14   other.

598-15         Sec. 376.092.  REQUIREMENTS FOR FINANCING SERVICES AND

598-16   IMPROVEMENTS.  The board may not finance services and improvement

598-17   projects under this subchapter unless a written petition requesting

598-18   those improvements or services has been filed with the board.  The

598-19   petition must be signed by:

598-20               (1)  the owners of a majority of the assessed value of

598-21   real property in the district as determined by the most recent

598-22   certified county property tax rolls; or

598-23               (2)  at least 50 persons who own land in the district,

598-24   if there are more than 50 persons who own land in the district as

 599-1   determined by the most recent certified county property tax rolls.

 599-2         Sec. 376.093.  NONPROFIT CORPORATION.  (a)  The board by

 599-3   resolution may authorize the creation of a nonprofit corporation to

 599-4   assist and act on behalf of the district in implementing a project,

 599-5   providing residential housing, or providing a service authorized by

 599-6   this subchapter.

 599-7         (b)  The board shall appoint the board of directors of a

 599-8   nonprofit corporation created under this section.  The board of

 599-9   directors of the nonprofit corporation shall serve in the same

599-10   manner as, for the same term as, and on the conditions of the board

599-11   of directors of a local government corporation created under

599-12   Chapter 431, Transportation Code.

599-13         (c)  A nonprofit corporation created under this section has

599-14   the powers of and is considered for all purposes to be a local

599-15   government corporation created under Chapter 431, Transportation

599-16   Code.

599-17         (d)  A nonprofit corporation created under this section may

599-18   implement any project and provide any services authorized by this

599-19   subchapter.

599-20         (e)  A nonprofit corporation created under this section may

599-21   be dissolved as provided by Chapter 431, Transportation Code, for a

599-22   corporation created under that chapter.

599-23         Sec. 376.094.  BONDS.  (a)  The district may issue bonds or

599-24   other obligations payable in whole or in part from ad valorem

 600-1   taxes, assessments, impact fees, revenues, grants, or other money

 600-2   of the district, or any combination of those sources of money, to

 600-3   pay for any authorized purpose of the district.

 600-4         (b)  Bonds or other obligations of the district may be issued

 600-5   in the form of bonds, notes, certificates of participation,

 600-6   including other instruments evidencing a proportionate interest in

 600-7   payments to be made by the district, or other obligations that are

 600-8   issued in the exercise of the district's borrowing power.

 600-9         Sec. 376.095.  ASSESSMENTS.  (a)  Assessments, reassessments,

600-10   or assessments resulting from an addition to or correction of the

600-11   assessment roll by the district, penalties and interest on an

600-12   assessment or reassessment, expenses of collection, and reasonable

600-13   attorney's fees incurred by the district:

600-14               (1)  are a first and prior lien against the property

600-15   assessed;

600-16               (2)  are superior to any other lien or claim other than

600-17   a lien or claim for county, school district, or municipal ad

600-18   valorem taxes; and

600-19               (3)  are the personal liability of and charge against

600-20   the owners of the property even if the owners are not named in the

600-21   assessment proceedings.

600-22         (b)  The lien is effective from the date of the resolution of

600-23   the board levying the assessment until the assessment is paid.  The

600-24   board may enforce the lien in the same manner that the board may

 601-1   enforce an ad valorem tax lien against real property.

 601-2         Sec. 376.096.  ELECTIONS.  (a)  The district shall hold an

 601-3   election in the manner provided by Subchapter L, Chapter 375, to

 601-4   obtain voter approval before the district imposes a maintenance tax

 601-5   or issues bonds payable from ad valorem taxes or assessments.

 601-6         (b)  The board may submit multiple purposes in a single

 601-7   proposition at an election.

 601-8         (c)  The board may not call an election under this subchapter

 601-9   unless a written petition requesting an election has been filed

601-10   with the board.  The petition must be signed by 50 owners of

601-11   property in the district, if there are more than 50 persons who own

601-12   property in the district as determined by the most recent certified

601-13   county property tax rolls.

601-14         (d)  When issuing bonds payable from a defined area under

601-15   Chapter 54, Water Code, a required election must be held only in

601-16   the defined area and not in the entire district.

601-17         Sec. 376.097.  MAINTENANCE TAX.  (a)  If authorized at an

601-18   election held in accordance with Section 376.096, the district may

601-19   impose and collect an annual ad valorem tax on taxable property in

601-20   the district for maintenance and operation of the district and the

601-21   improvements constructed or acquired by the district and for the

601-22   provision of services to industrial or commercial businesses,

601-23   residents, or property owners.

601-24         (b)  The board shall determine the tax rate.

 602-1         Sec. 376.098.  EXEMPTION FROM ASSESSMENT AND IMPACT FEES.

 602-2   Because the district is created in an area that is devoted

 602-3   primarily to commercial and business activity, the district may not

 602-4   impose an impact fee or assessment on a single family residential

 602-5   property or a residential duplex, triplex, quadruplex, or

 602-6   condominium.

 602-7         Sec. 376.099.  TAX AND ASSESSMENT ABATEMENTS.  Without

 602-8   further authorization or other procedural requirement, the district

 602-9   may grant, consistent with Chapter 312, Tax Code, an abatement for

602-10   a tax or assessment owed to the district.

602-11         Sec. 376.100.  CONTRACTS.  (a)  To protect the public

602-12   interest, the district may contract with any municipality or any

602-13   county in which all or part of the district is located for the

602-14   provision of law enforcement services by the county or municipality

602-15   in the district on a fee basis.

602-16         (b)  The municipality, the county, or another political

602-17   subdivision, without further authorization, may contract with the

602-18   district to implement a project of the district or to assist the

602-19   district in providing authorized services.  A contract under this

602-20   subsection may:

602-21               (1)  be for a period on which the parties agree;

602-22               (2)  include terms on which the parties agree;

602-23               (3)  be payable from taxes or any other sources of

602-24   revenue that may be available for such purpose; and

 603-1               (4)  provide that taxes or other revenues collected at

 603-2   a district project, at a project in a tax increment reinvestment

 603-3   zone, or from a person using or purchasing a commodity or service

 603-4   at a district project may be paid or rebated to the district under

 603-5   the terms specified in the contract.

 603-6         (c)  The district may enter into a contract, lease, or other

 603-7   agreement with or make or accept grants and loans to or from:

 603-8               (1)  the United States;

 603-9               (2)  the state or a state agency;

603-10               (3)  any county, any municipality, or another political

603-11   subdivision of the state;

603-12               (4)  a public or private corporation, including a

603-13   nonprofit corporation created by the board under this subchapter;

603-14   or

603-15               (5)  any other person.

603-16         (d)  The district may perform all acts necessary for the full

603-17   exercise of the powers vested in the district on terms and for the

603-18   period the board determines advisable.

603-19         Sec. 376.101.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS.  The

603-20   district may join and pay dues to an organization that enjoys

603-21   tax-exempt status under Sections 501(c)(3), 501(c)(4), and

603-22   501(c)(6), Internal Revenue Code of 1986 (26 U.S.C. Section

603-23   501(c)), and perform services or provide activities consistent with

603-24   the furtherance of the purposes of the district.  An expenditure of

 604-1   public money for membership in the organization is considered to

 604-2   further the purposes of the district and to be for a public

 604-3   purpose.

 604-4         Sec. 376.102.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.

 604-5   All or any part of the area of the district is eligible,

 604-6   notwithstanding other statutory criteria, to be included in a tax

 604-7   increment reinvestment zone created by the municipality under

 604-8   Chapter 311, Tax Code, or included in a tax abatement reinvestment

 604-9   zone created by the municipality under Chapter 312, Tax Code.  All

604-10   or any part of the area of the district is also eligible to be

604-11   included in an enterprise zone by the municipality under Chapter

604-12   2303, Government Code.

604-13         Sec. 376.103.  OWNERSHIP OF PROPERTY BY THE DISTRICT.  After

604-14   title to real property is acquired by the district, an independent

604-15   school district, community college district, county, municipality,

604-16   hospital district, or other political subdivision or taxing

604-17   authority may not foreclose its tax lien or otherwise pursue unpaid

604-18   taxes on the property that accrued before the district's ownership

604-19   of the property, against the district or any successor in title to

604-20   the district that is a political subdivision of this state,

604-21   regardless of the manner in which or the price for which the

604-22   district obtained title to the property.

604-23         (c)  The following laws are repealed:

604-24               (1)  Chapters 436, 491, and 496, Acts of the 74th

 605-1   Legislature, Regular Session, 1995; and

 605-2               (2)  Chapter 817, Acts of the 72nd Legislature, Regular

 605-3   Session, 1991.

 605-4         SECTION 23.05.  Subchapter D, Chapter 312, Tax Code, is

 605-5   transferred to the Local Government Code, designated as Chapter

 605-6   383, Local Government Code, and amended to read as follows:

 605-7                CHAPTER 383. COUNTY DEVELOPMENT DISTRICTS

 605-8                    SUBCHAPTER A.  GENERAL PROVISIONS

 605-9         Sec. 383.001.  SHORT TITLE.  This chapter may be cited as the

605-10   County Development District Act.

605-11         Sec. 383.002.  LEGISLATIVE INTENT.  This chapter furthers the

605-12   public purpose of developing and diversifying the economy of this

605-13   state by providing incentives for the location and development of

605-14   projects in certain counties to attract visitors and tourists.

605-15         Sec. 383.003.  FINDINGS.  (a)  Small and medium-sized

605-16   counties in this state need incentives for the development of

605-17   public improvements to attract visitors and tourists to those

605-18   counties, and those counties are at a disadvantage in competing

605-19   with counties in other states for the location and development of

605-20   projects that attract visitors by virtue of the availability and

605-21   prevalent use of financial incentives in other states.

605-22         (b)  The means and measures authorized by this chapter are in

605-23   the public interest and serve a public purpose of this state in

605-24   promoting the economic welfare of the residents of this state by

 606-1   providing incentives for the location and development in certain

 606-2   counties of this state of projects that attract visitors and

 606-3   tourists and that result in employment and economic activity.

 606-4         (c)  The creation of development districts is essential to

 606-5   the accomplishment of Section 52-a, Article III, Texas

 606-6   Constitution, and to the accomplishment of the other public

 606-7   purposes stated in this chapter and further serves the purpose of

 606-8   Section 59, Article XVI, and Section 52, Article III, Texas

 606-9   Constitution.

606-10         Sec. 383.004.  DEFINITIONS.  In this chapter:

606-11               (1)  "Board" means the board of directors of the

606-12   district.

606-13               (2)  "Bonds" includes notes and other obligations.

606-14               (3)  "Commissioners court" means the governing body of

606-15   the county.

606-16               (4)  "Cost" has the meaning assigned by Section 2(4),

606-17   Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas

606-18   Civil Statutes).

606-19               (5)  "County" means the county in which the district is

606-20   located.

606-21               (6)  "Director" means a member of the board.

606-22               (7)  "District" means a county development district

606-23   created under this chapter.

606-24               (8)  "Project" has the meaning assigned by Section

 607-1   4B(a)(2), Development Corporation Act of 1979 (Article 5190.6,

 607-2   Vernon's Texas Civil Statutes).

 607-3         Sec. 383.005.  GOVERNMENTAL AGENCY; TORT CLAIMS.  A district

 607-4   is a governmental agency, a body politic and corporate, and a

 607-5   political subdivision of the state.  Section 375.004 applies to a

 607-6   district.

 607-7            (Sections 383.006-383.020 reserved for expansion

 607-8          SUBCHAPTER B.  CREATION OF DISTRICT; TEMPORARY BOARD

 607-9         Sec. 383.021.  COUNTIES AUTHORIZED TO CREATE DISTRICTS.  (a)

607-10   The commissioners court of a county with a population of 400,000 or

607-11   less, on petition of the owners of land in a proposed district, may

607-12   commence the creation of a county development district.

607-13         (b)  The creation of the district is subject to a

607-14   confirmation election held as provided by this chapter.

607-15         Sec. 383.022.  PETITION OF LANDOWNERS.  To create a district,

607-16   a petition requesting creation must be filed with the commissioners

607-17   court of the county in which all of the land in the proposed

607-18   district is located.  The petition must be accompanied by a sworn

607-19   statement indicating consent to creation signed by the holders of

607-20   fee simple title of all of the land in the proposed district.

607-21         Sec. 383.023.  CONTENTS OF PETITION.  The petition must:

607-22               (1)  describe the boundaries of the proposed district

607-23   by metes and bounds or by lot and block number, if there is a

607-24   recorded map or plat and survey of the area;

 608-1               (2)  include a name for the proposed district, which

 608-2   must include the name of the county followed by the words

 608-3   "Development District No.______";

 608-4               (3)  include the names of five persons who are willing

 608-5   and qualified to serve as temporary directors of the proposed

 608-6   district;

 608-7               (4)  state the general nature of the work proposed to

 608-8   be done and the cost of the project as then estimated by the

 608-9   petitioners; and

608-10               (5)  state the necessity and feasibility of the

608-11   proposed district and whether the district will serve the public

608-12   purpose of attracting visitors and tourists to the county.

608-13         Sec. 383.024.  COMMISSION HEARING; CONTENTS OF NOTICE.

608-14   Before the 61st day after the date a petition is received, the

608-15   commissioners court shall set a date, time, and place at which the

608-16   petition shall be heard and shall issue notice of the date, time,

608-17   place, and subject matter of the hearing.  The notice shall inform

608-18   all persons of their right to appear and present evidence and

608-19   testify for or against the creation of the district.

608-20         Sec. 383.025.  NOTICE OF HEARING.  Before the 30th day before

608-21   the date set for the hearing, notice of the hearing shall be mailed

608-22   to the developer who signed the petition and the landowners of all

608-23   the land in the district and shall be published in a newspaper with

608-24   general circulation in the county in which the proposed district is

 609-1   located.

 609-2         Sec. 383.026.  HEARING.  At the hearing, the commissioners

 609-3   court shall examine the petition to ascertain its sufficiency, and

 609-4   any interested person may appear before the commissioners court to

 609-5   offer testimony on the sufficiency of the petition and whether the

 609-6   district should be created.

 609-7         Sec. 383.027.  GRANTING OR REFUSING PETITION.  (a)  After the

 609-8   hearing, if the commissioners court finds that the petition

 609-9   conforms to the requirements of Section 383.022 and that the

609-10   creation of the district and the proposed project is feasible and

609-11   necessary and would serve the public purpose of attracting visitors

609-12   and tourists to the county, the commissioners court shall make that

609-13   finding and enter an order creating the district.

609-14         (b)  If the commissioners court finds that the petition does

609-15   not conform to the requirements of Section 383.022 or that the

609-16   creation of the district and the proposed project is not feasible

609-17   and necessary and would not serve the purpose of attracting

609-18   visitors and tourists to the county, the commissioners court shall

609-19   make that finding in an order and deny the petition.

609-20         Sec. 383.028.  TEMPORARY DIRECTORS; VACANCY IN OFFICE.  (a)

609-21   If the commissioners court grants the petition, it shall appoint to

609-22   serve as temporary directors of the district five persons who are

609-23   qualified under this chapter to serve as directors.

609-24         (b)  A vacancy in the office of temporary director shall be

 610-1   filled by appointment by the commissioners court.

 610-2         Sec. 383.029.  QUALIFICATION OF TEMPORARY DIRECTORS;

 610-3   ORGANIZATION.  (a)  Each temporary director shall execute a bond in

 610-4   accordance with Section 383.046 and shall take an oath of office.

 610-5         (b)  The board shall meet and organize.

 610-6         Sec. 383.030.  CONFIRMATION AND SALES AND USE TAX ELECTION.

 610-7   The temporary board of directors shall conduct an election in the

 610-8   district to confirm the creation of the district and authorize a

 610-9   sales and use tax in conformity with this chapter.

610-10         Sec. 383.031.  ELECTION ORDER.  An order calling an election

610-11   under Section 383.030 must state:

610-12               (1)  the nature of the election, including the

610-13   proposition that is to appear on the ballot;

610-14               (2)  the date of the election;

610-15               (3)  the hours during which the polls will be open;

610-16               (4)  the location of the polling places; and

610-17               (5)  the proposed rate of the sales and use tax for the

610-18   district.

610-19         Sec. 383.032.  NOTICE.  The temporary directors shall give

610-20   notice of the election by publishing a substantial copy of the

610-21   election order once a week for two consecutive weeks in a newspaper

610-22   with general circulation in the county in which the proposed

610-23   district is located.  The first publication must appear before the

610-24   14th day before the date set for the election.

 611-1         Sec. 383.033.  CONDUCT OF ELECTION.  (a)  The election shall

 611-2   be held in accordance with the provisions of the Election Code, to

 611-3   the extent not inconsistent with this chapter.

 611-4         (b)  The ballot shall be printed to permit voting for or

 611-5   against the proposition:  "The creation of ____________ County

 611-6   Development District No. _____ and the adoption of a proposed local

 611-7   sales and use tax rate of _____ (the rate specified in the election

 611-8   order) to be used for the promotion and development of tourism."

 611-9         Sec. 383.034.  RESULTS OF ELECTION.  (a)  After the election,

611-10   the presiding judge shall make returns of the result to the

611-11   temporary board of directors.  The temporary board of directors

611-12   shall canvass the returns and declare the results.

611-13         (b)  If a majority of the votes cast in the election favor

611-14   the creation of the district and the adoption of the sales and use

611-15   tax, the temporary board shall declare that the district is created

611-16   and shall declare the amount of the local sales and use tax adopted

611-17   and enter the result in its minutes.  If a majority of the votes

611-18   cast in the election are against the creation of the district and

611-19   the adoption of the sales and use tax, the temporary board shall

611-20   declare that the proposition to create the district was defeated

611-21   and enter the result in its minutes.

611-22         (c)  A certified copy of the minute order declaring that the

611-23   district is created and the local sales and use tax adopted and

611-24   including the rate of the sales and use tax, or declaring that the

 612-1   proposition to create the district was defeated, shall be sent to

 612-2   the commissioners court, the comptroller, and any taxing entity by

 612-3   certified or registered mail.  The order shall also show the date

 612-4   of the election, the proposition on which the vote was held, the

 612-5   total number of votes cast for or against the proposition, and the

 612-6   number of votes by which the proposition was approved.

 612-7            (Sections 383.035-383.040 reserved for expansion

 612-8       SUBCHAPTER C. ADMINISTRATIVE PROVISIONS; BOARD OF DIRECTORS

 612-9         Sec. 383.041.  BOARD OF DIRECTORS; TERMS.  (a)  A district is

612-10   governed by a board of five directors appointed by the

612-11   commissioners court of the county in which the district is located.

612-12   The temporary directors appointed under Section 383.028 shall

612-13   become permanent directors of the district, if the creation of the

612-14   district is confirmed at the confirmation election.

612-15         (b)  Directors serve staggered terms of four years with two

612-16   or three members' terms expiring September 1 of every other year.

612-17   Following confirmation of the district at the election, the

612-18   temporary directors shall draw lots to determine:

612-19               (1)  the two directors to serve terms that expire on

612-20   September 1 of the second year following creation of the district;

612-21   and

612-22               (2)  the three directors to serve terms that expire on

612-23   September 1 of the fourth year following creation of the district.

612-24         Sec. 383.042.  QUALIFICATIONS OF DIRECTOR.  To be qualified

 613-1   to serve as a director, a person must be at least 21 years of age,

 613-2   a resident citizen of this state, and a qualified voter of the

 613-3   county in which the district is located.

 613-4         Sec. 383.043.  PERSONS DISQUALIFIED TO SERVE.  Section

 613-5   50.026, Water Code, applies to a director of a district.

 613-6         Sec. 383.044.  REMOVAL OF DIRECTOR.  The commissioners court,

 613-7   after notice and hearing, may remove a director for misconduct or

 613-8   failure to carry out the director's duties if petitioned by a

 613-9   majority of the remaining directors.

613-10         Sec. 383.045.  BOARD VACANCY.  A vacancy in the office of

613-11   director shall be filled by appointment of the commissioners court.

613-12         Sec. 383.046.  DIRECTOR'S COMPENSATION; BOND AND OATH OF

613-13   OFFICE.  A director is not entitled to receive compensation for

613-14   service on the board.  Sections 375.067, 375.069, and 375.070 apply

613-15   to a director.

613-16         Sec. 383.047.  OFFICERS.  After each appointment of directors

613-17   by the commissioners court, and after the directors have qualified

613-18   by taking the proper oath, the directors shall organize by electing

613-19   a president, a vice president, a secretary, and any other officer

613-20   the board considers necessary.

613-21         Sec. 383.048.  QUORUM; OFFICERS' DUTIES.  (a)  Three

613-22   directors constitute a quorum and a concurrence of three is

613-23   sufficient in any matter relating to the business of the district.

613-24         (b)  The president presides at all board meetings and is the

 614-1   chief executive officer of the district.  The vice president acts

 614-2   as president if the president is absent or disabled.

 614-3         (c)  The secretary acts as president if both the president

 614-4   and vice president are absent or disabled.  The secretary acts as

 614-5   secretary of the board and is responsible for seeing that all

 614-6   records and books of the district are properly kept.

 614-7         (d)  The board may appoint another director, the general

 614-8   manager, or an employee as assistant or deputy secretary to assist

 614-9   the secretary.  The assistant or deputy secretary may certify the

614-10   authenticity of any record of the district, including a proceeding

614-11   relating to a bond, contract, or indebtedness of the district.

614-12         Sec. 383.049.  BYLAWS.  The board may adopt bylaws to govern:

614-13               (1)  the time, place, and manner of conducting board

614-14   meetings;

614-15               (2)  the powers, duties, and other responsibilities of

614-16   the board's officers and employees;

614-17               (3)  the disbursement of money by a check, draft, or

614-18   warrant;

614-19               (4)  the appointment and authority of director

614-20   committees;

614-21               (5)  the keeping of accounts and other records; and

614-22               (6)  any other matter the board considers appropriate.

614-23         Sec. 383.050.  MANAGEMENT OF DISTRICT.  (a)  The board has

614-24   control over and shall manage the affairs of the district and shall

 615-1   employ any person, firm, partnership, or corporation the board

 615-2   considers necessary for conducting the affairs of the district,

 615-3   including engineers, attorneys, financial advisors, a general

 615-4   manager, a utility operator, bookkeepers, auditors, and

 615-5   secretaries.

 615-6         (b)  The board shall determine the term of office and the

 615-7   compensation of any employee and consultant by contract or by

 615-8   resolution of the board.

 615-9         (c)  The board may remove any employee.

615-10         (d)  The board may require an officer or employer to execute

615-11   a bond payable to the district and conditioned on the faithful

615-12   performance of the person's duties.

615-13         Sec. 383.051.  DIRECTOR INTERESTED IN CONTRACT.  (a)  A

615-14   director who is financially interested in a contract with the

615-15   district or a director who is an employee of a person who or firm

615-16   that is financially interested in a contract with the district

615-17   shall disclose that fact to the other directors.  The disclosure

615-18   shall be entered into the minutes of the meeting.

615-19         (b)  An interested director may not vote on the acceptance of

615-20   the contract or participate in the discussion on the contract.

615-21         (c)  The failure of a director to disclose the director's

615-22   financial interest in a contract and to have the disclosure entered

615-23   in the minutes invalidates the contract.

615-24         Sec. 383.052.  DISTRICT OFFICE.  The board shall designate

 616-1   and establish a district office in the county.

 616-2         Sec. 383.053.  MEETINGS AND NOTICE.  (a)  The board may

 616-3   establish regular meetings to conduct district business and may

 616-4   hold special meetings at other times as the business of the

 616-5   district requires.

 616-6         (b)  Notice of the time, place, and purpose of a meeting of

 616-7   the board shall be given by posting the notice at a place

 616-8   convenient to the public in the district.  A copy of the notice

 616-9   shall be furnished to a clerk of the county, who shall post it on a

616-10   bulletin board in the county courthouse used for that purpose.

616-11         (c)  Except as otherwise provided by this chapter, Chapter

616-12   551, Government Code, applies to the meetings of the board.  Any

616-13   interested person may attend any meeting of the board.

616-14            (Sections 383.054-383.060 reserved for expansion

616-15                     SUBCHAPTER D. POWERS AND DUTIES

616-16         Sec. 383.061.  GENERAL POWERS OF DISTRICT.  (a)  A district

616-17   may acquire and dispose of projects and has all of the other

616-18   powers, authority, rights, and duties that will permit

616-19   accomplishment of the purposes for which the district was created.

616-20         (b)  The district has the powers of a municipal management

616-21   district created under Chapter 375 to the extent not inconsistent

616-22   with this chapter.

616-23         (c)  The district has the power to provide for general

616-24   promotion and tourist advertising of the district and its vicinity

 617-1   and to conduct a marketing program to attract visitors, any of

 617-2   which may be conducted by the district pursuant to contracts for

 617-3   professional services with persons or organizations selected by the

 617-4   district.

 617-5         Sec. 383.062.  SUITS.  A district, after it is created and

 617-6   confirmed, through its directors may sue and be sued in any court

 617-7   of this state in the name of the district.  Service of process in

 617-8   any suit may be made by serving any two directors.

 617-9         Sec. 383.063.  EMINENT DOMAIN.  (a)  A district that is not

617-10   located within a municipality may exercise the power of eminent

617-11   domain to acquire land or interests in land in the district

617-12   considered necessary by the board for the purpose of providing

617-13   water and sewer services to an authorized project.

617-14         (b)  The power of eminent domain shall be exercised in the

617-15   manner provided by Chapter 21, Property Code.

617-16         Sec. 383.064.  EXPENDITURES.  A district's money may be

617-17   disbursed only by check, draft, order, or another instrument that

617-18   must be signed by at least three directors.  The general manager,

617-19   treasurer, or other employee of the district, if authorized by

617-20   resolution of the board, may sign checks, drafts, orders, or other

617-21   instruments on any district operation account and these need not be

617-22   signed by any other person.

617-23         Sec. 383.065.  PURPOSES FOR BORROWING MONEY.  The district

617-24   may borrow money for any corporate purpose or combination of

 618-1   corporate purposes.

 618-2         Sec. 383.066.  REPAYMENT OF ORGANIZATIONAL EXPENSES.  (a)

 618-3   The directors may pay:

 618-4               (1)  all costs and expenses necessarily incurred in the

 618-5   creation and organization of the district;

 618-6               (2)  the cost of investigation and making plans;

 618-7               (3)  the cost of the engineer's report;

 618-8               (4)  project designer fees;

 618-9               (5)  legal fees; and

618-10               (6)  other incidental expenses.

618-11         (b)  A director may reimburse any person for money advanced

618-12   for the costs, fees, and expenses described by Subsection (a).

618-13         (c)  Payments under this section may be made from money

618-14   obtained from the issuance of notes or the sale of bonds first

618-15   issued by the district or from other district revenues.

618-16            (Sections 383.067-383.080 reserved for expansion

618-17                           SUBCHAPTER E. BONDS

618-18         Sec. 383.081.  ISSUANCE OF BONDS.  The district may issue

618-19   bonds for the purpose of defraying all or part of the cost of any

618-20   project as provided in this chapter.  Sections 375.201 through

618-21   375.208 apply to a district to the extent not inconsistent with

618-22   this chapter.

618-23         Sec. 383.082.  MANNER OF REPAYMENT OF BONDS.  The board may

618-24   provide for the payment of principal of and interest and redemption

 619-1   price on bonds:

 619-2               (1)  from taxes;

 619-3               (2)  by pledging all or any part of the designated

 619-4   revenues, license fees, or other compensation from a project or any

 619-5   part of a project, including revenues and receipts derived by the

 619-6   district from the lease or sale of the project;

 619-7               (3)  by pledging all or any part of any grant,

 619-8   donation, revenue, or income received or to be received from any

 619-9   public or private source; or

619-10               (4)  from a combination of such sources.

619-11         Sec. 383.083.  USE OF BOND PROCEEDS.  The district may use

619-12   bond proceeds to:

619-13               (1)  pay interest on the bonds during and after the

619-14   period of the acquisition or construction of a project;

619-15               (2)  pay administrative and operating expenses;

619-16               (3)  create a reserve fund for the payment of principal

619-17   and interest on the bonds; and

619-18               (4)  pay all expenses incurred or that will be incurred

619-19   in the issuance, sale, and delivery of the bonds.

619-20         Sec. 383.084.  ADDING AND EXCLUDING LAND FROM THE DISTRICT.

619-21   (a)  Before the board issues bonds, the board, on its own motion or

619-22   on request of a landowner in the district, may petition the

619-23   commissioners court for the addition of land to or exclusion of

619-24   land from the district.

 620-1         (b)  If the commissioners court unanimously determines from

 620-2   the evidence that the best interests of the persons and property in

 620-3   the district will be served by adding or excluding land, the

 620-4   commissioners court shall enter in its records the appropriate

 620-5   findings and order adding or excluding land.

 620-6            (Sections 383.085-383.100 reserved for expansion

 620-7                     SUBCHAPTER F. SALES AND USE TAX

 620-8         Sec. 383.101.  SALES AND USE TAX.  (a) A district may impose

 620-9   a sales and use tax for the benefit of the district if authorized

620-10   by a majority of the qualified voters of the district voting at an

620-11   election called for that purpose.  The sales and use tax, if

620-12   adopted, does not count toward the limitation imposed by Chapter

620-13   323, Tax Code, on any sales and use tax that has been levied by the

620-14   county.

620-15         (b)  If a district adopts the tax, there is imposed a tax on

620-16   the receipts from the sale at retail of taxable items in the

620-17   district at a rate of up to one-half of one percent.  There is also

620-18   imposed an excise tax on the use, storage, or other consumption in

620-19   the district of taxable items purchased, leased, or rented from a

620-20   retailer during the period that the tax is effective in the

620-21   district.  The rate of the excise tax is the same as the rate of

620-22   the sales tax portion of the tax applied to the sales price of the

620-23   taxable items and is included in the sales tax.

620-24         (c)  For purposes of this section, "taxable items" includes

 621-1   all items subject to any sales and use tax that is imposed by the

 621-2   county if the county has imposed a sales and use tax.

 621-3         Sec. 383.102.  IMPOSITION, COMPUTATION, ADMINISTRATION, AND

 621-4   GOVERNANCE OF TAX.  (a)  Chapter 323, Tax Code, to the extent not

 621-5   inconsistent with this chapter, governs the imposition,

 621-6   computation, administration, and governance of the tax under this

 621-7   subchapter, except that Sections 323.101(b) and (e), Tax Code, and

 621-8   Sections 323.209, 323.401 through 323.406, and 323.505, Tax Code,

 621-9   do not apply.

621-10         (b)  Chapter 323, Tax Code, does not apply to the use and

621-11   allocation of revenues under this chapter.

621-12         (c)  In applying the procedures under Chapter 323, Tax Code,

621-13   the district's name shall be substituted for "the county" and

621-14   "board of directors" is substituted for "commissioners court."

621-15         Sec. 383.103.  TAX RATES.  The permissible rates for a local

621-16   sales and use tax levied under this chapter  are one-fourth of one

621-17   percent, three-eighths of one percent, and one-half of one percent.

621-18         Sec. 383.104.  ABOLITION OF OR CHANGE IN TAX RATE.  (a)  The

621-19   board by order may decrease or abolish the local sales and use tax

621-20   rate or may call an election to increase, decrease, or abolish the

621-21   local sales and use tax rate.

621-22         (b)  At the election, the ballots shall be printed to permit

621-23   voting for or against the proposition:  "The increase (decrease) in

621-24   the local sales and use tax rate of (name of district) to

 622-1   (percentage) to be used for the promotion and development of

 622-2   tourism" or "The abolition of the district sales and use tax used

 622-3   for the promotion and development of tourism."  The increase or

 622-4   decrease in the tax rate is effective if it is approved by a

 622-5   majority of the votes cast.  In calling and holding the election,

 622-6   the board shall use the procedure for the confirmation and tax

 622-7   election set forth in this chapter.

 622-8         Sec. 383.105.  USE OF TAX.  Taxes collected under this

 622-9   subchapter may be used only for the purposes for which the district

622-10   was created, and the district may pledge the revenue derived from

622-11   the taxes imposed under this subchapter to the payment of bonds

622-12   issued by the district.

622-13         Sec. 383.106.  LIMITATION ON ADOPTION OF TAX.  (a)  A

622-14   district may adopt a tax under this subchapter only if as a result

622-15   of adoption of the tax the combined rate of all local sales and use

622-16   taxes imposed by political subdivisions having territory in the

622-17   district will not exceed two percent.

622-18         (b)  If, as a result of the imposition or increase in a sales

622-19   and use tax by a municipality in which there is located a district

622-20   with an existing sales and use tax or as a result of the annexation

622-21   by a municipality of the territory in a district with an existing

622-22   sales and use tax, the overlapping local sales and use taxes in the

622-23   area in the district will exceed two percent, the district's sales

622-24   and use tax rate is automatically reduced to a rate that when added

 623-1   to the combined rate of local sales and use taxes will equal two

 623-2   percent.

 623-3         (c)  If a district's tax rate is reduced in accordance with

 623-4   Subsection (b), the municipality shall make payments to the

 623-5   district equal to the amounts that would have been collected by the

 623-6   district had the municipality not imposed or increased its sales

 623-7   and use tax or annexed the area in the district, less amounts that

 623-8   the district collects following the municipality's levy of or

 623-9   increase in its sales and use tax or annexation of the area in the

623-10   district.  The payment shall be made by the municipality to the

623-11   district within 10 days after the date of receipt of the money from

623-12   the comptroller's office and shall continue only for so long as any

623-13   bonds of the district are outstanding.

623-14            (Sections 383.107-383.110 reserved for expansion

623-15                    SUBCHAPTER G. COMPETITIVE BIDDING

623-16         Sec. 383.111.  COMPETITIVE BIDDING.  Sections 375.221 and

623-17   375.223 apply to a district created under this chapter.

623-18         Sec. 383.112.  EXEMPTION.  Notwithstanding any other

623-19   provision of this chapter to the contrary, any contract between the

623-20   district and a governmental entity or nonprofit corporation created

623-21   under the Development Corporation Act of 1979 (Article 5190.6,

623-22   Vernon's Texas Civil Statutes) is not subject to the competitive

623-23   bidding requirements of this chapter.

623-24            (Sections 383.113-383.120 reserved for expansion

 624-1                        SUBCHAPTER H. DISSOLUTION

 624-2         Sec. 383.121.  DISSOLUTION OF DISTRICT.  A district may be

 624-3   dissolved only as provided by this subchapter.

 624-4         Sec. 383.122.  DISSOLUTION BY ORDER OF COMMISSIONERS COURT.

 624-5   (a)  The board may petition the commissioners court to dissolve the

 624-6   district if a majority of the board finds at any time:

 624-7               (1)  before the authorization of bonds or the final

 624-8   lending of its credit, that the proposed undertaking is

 624-9   impracticable or cannot be successfully and beneficially

624-10   accomplished; or

624-11               (2)  that all bonds of the district or other debts of

624-12   the district have been paid and the purposes of the district have

624-13   been accomplished.

624-14         (b)  On receipt of a petition from the board for the

624-15   dissolution of the district, the commissioners court shall hold a

624-16   hearing as provided by Section 383.024.

624-17         (c)  If the commissioners court unanimously determines from

624-18   the evidence that the best interests of the county and the owners

624-19   of property and interests in property in the district will be

624-20   served by dissolving the district, the commissioners court shall

624-21   enter in its records the appropriate findings and order dissolution

624-22   of the district.  Otherwise the commissioners court shall enter its

624-23   order providing that the district has not been dissolved.  On

624-24   dissolution of the district, funds and property of the district, if

 625-1   any, shall be transferred to the commissioners court.

 625-2         Sec. 383.123.  DISSOLUTION OF DISTRICT ON AGREEMENT WITH

 625-3   MUNICIPALITY.  A district may be dissolved by agreement between the

 625-4   governing body of a municipality and the board if all of the

 625-5   territory in the district is located in or is annexed by the

 625-6   municipality.  The agreement shall require the municipality to

 625-7   acquire all of the money, property, and other assets of the

 625-8   district and assume all contracts, debts, bonds, and other

 625-9   obligations of the district, and the municipality shall be bound in

625-10   the same manner and to the same extent that the district was bound

625-11   with respect to those contracts, debts, bonds, and other

625-12   obligations.  On dissolution of the district, the taxes levied by

625-13   the district are abolished.

625-14         SECTION 23.06.  Section 402.903(d), Local Government Code, is

625-15   amended to correct references to read as follows:

625-16         (d)  Notwithstanding any express or implied limitation on

625-17   municipal power or purposes under any general or special law,

625-18   charter provision, or ordinance, this section [chapter] is

625-19   authority for the performance of an agreement or contract entered

625-20   into under this section [chapter].

625-21   ARTICLE 24.  CHANGES RELATING TO NATURAL RESOURCES CODE (WETLANDS)

625-22         SECTION 24.01.  (a)  The  Natural Resources Code is amended

625-23   to codify Article 6, Chapter 3, Acts of the 72nd Legislature, 1st

625-24   Called Session, 1991 (Article 5421u, Vernon's Texas Civil

 626-1   Statutes), by adding Title 12 to read as follows:

 626-2                           TITLE 12.  WETLANDS

 626-3                    CHAPTER 221.  WETLAND MITIGATION

 626-4                    SUBCHAPTER A.  GENERAL PROVISIONS

 626-5         Sec. 221.001.  DEFINITIONS.  In this chapter:

 626-6               (1)  "Buffer zone" means a strip of land adjoining a

 626-7   wetland mitigation bank to protect the wetland habitat and wildlife

 626-8   within the bank from the impact of an activity outside the zone.

 626-9   The term includes a strip of land composed primarily of water or a

626-10   strip of land that includes a fence, wall, or screen of vegetation.

626-11               (2)  "Eligible political subdivision" means:

626-12                     (A)  a county with a population of 2,100,000 or

626-13   more or a county adjacent to such a county; or

626-14                     (B)  a conservation and reclamation district:

626-15                           (i)  that is established under Section 59,

626-16   Article XVI, Texas Constitution;

626-17                           (ii)  the boundaries of which are within a

626-18   county that has a population of 2,100,000 or more; and

626-19                           (iii)  that is authorized under other law

626-20   to participate in a program under this chapter.

626-21               (3)  "Federal requirement" means a requirement of the

626-22   federal government contained in a statute, regulation, or guideline

626-23   for an eligible mitigation bank program or a wetland regulation

626-24   program.

 627-1               (4)  "Mitigation bank" means a parcel of land that has

 627-2   undergone or is proposed to undergo a physical change necessary to

 627-3   create or optimize the acreage or quality of wetland habitat on the

 627-4   parcel expressly to provide a mitigation credit to offset an

 627-5   adverse impact to wetland caused by an approved project located

 627-6   elsewhere.

 627-7               (5)  "Mitigation credit" means a unit of measured area

 627-8   that supports wetland habitat or wetland habitat value that did not

 627-9   exist at the mitigation bank site before the mitigation bank was

627-10   developed.

627-11               (6)  "Wetland" means land that:

627-12                     (A)  has a predominance of hydric soil;

627-13                     (B)  is inundated or saturated by surface or

627-14   groundwater at a frequency and duration sufficient to support a

627-15   prevalence of hydrophytic vegetation typically adapted for life in

627-16   saturated soil conditions; and

627-17                     (C)  under normal circumstances does support a

627-18   prevalence of that vegetation.

627-19               (7)  "Wetland regulation program" means a program of

627-20   the state, a state agency, or an eligible political subdivision

627-21   under which the state, agency, or subdivision administers its own

627-22   individual or general permit program regulating the use of wetland.

627-23         Sec. 221.002.  USE OF MONEY.  A state agency or an eligible

627-24   political subdivision may use any money to accomplish a purpose of

 628-1   this chapter.

 628-2         Sec. 221.003.  COST OF MOVING OR CHANGING FACILITY.  If a

 628-3   state agency, eligible political subdivision, or nonprofit

 628-4   corporation, in exercising a power under this chapter, makes it

 628-5   necessary to move, raise, lower, reroute, or change the grade of or

 628-6   alter the construction of a pipeline, highway, railroad, electric

 628-7   transmission or distribution line, or telephone or telegraph

 628-8   property or facility, the agency, subdivision, or corporation must

 628-9   bear the sole expense of the action.

628-10            (Sections 221.004-221.020 reserved for expansion

628-11         SUBCHAPTER B.  WETLAND MITIGATION BANKING AND CONTRACTS

628-12         Sec. 221.021.  ACTIONS TO ESTABLISH OR MAINTAIN MITIGATION

628-13   BANK.  (a)  With the approval of the General Land Office, a state

628-14   agency or eligible political subdivision may take any necessary and

628-15   reasonable action to comply with a federal requirement to establish

628-16   or maintain a mitigation bank.  An action under this section may

628-17   include:

628-18               (1)  authorizing or making a continuing study of

628-19   wetland areas and wetland mitigation programs;

628-20               (2)  consistent with federal requirements, engaging in

628-21   a wetland mitigation program and adopting and enforcing permanent

628-22   land use and control measures on land the agency or subdivision

628-23   owns in a mitigation bank;

628-24               (3)  consulting with, providing information to, and

 629-1   entering into an agreement with a federal agency to identify and

 629-2   publish information about wetland areas;

 629-3               (4)  cooperating with a federal or state agency in

 629-4   connection with a study or investigation regarding the adequacy of

 629-5   a local measure with respect to a federal or state wetland program;

 629-6               (5)  improving the long-range management or use of

 629-7   wetland or a wetland mitigation bank;

 629-8               (6)  purchasing, leasing, condemning, or otherwise

 629-9   acquiring property inside or outside the eligible political

629-10   subdivision that is necessary for a wetland mitigation bank or

629-11   buffer zone and, as necessary, improving the land or other property

629-12   as a wetland mitigation bank, including any adjacent buffer zone,

629-13   to comply with a federal requirement;

629-14               (7)  requesting or receiving aid from a federal or

629-15   state agency or an eligible political subdivision;

629-16               (8)  purchasing, selling, or contracting to purchase or

629-17   sell a mitigation credit in a mitigation bank;

629-18               (9)  incurring a liability or borrowing money on terms

629-19   approved by the governing body of the subdivision;

629-20               (10)  acquiring, holding, using, selling, leasing, or

629-21   disposing of real or personal property, including a license,

629-22   patent, right, or interest, that is necessary, convenient, or

629-23   useful for the full exercise of a power under this chapter;

629-24               (11)  contracting with any operator to use or operate

 630-1   any part of a mitigation bank; and

 630-2               (12)  procuring any type of insurance and paying an

 630-3   insurance premium in an amount the governing body of the eligible

 630-4   political subdivision considers necessary or advisable.

 630-5         (b)  The power of eminent domain granted by this section does

 630-6   not enable a state agency or eligible political subdivision to

 630-7   acquire by condemnation an interest in land that is owned or used

 630-8   by a public utility.  In this subsection, "public utility" has the

 630-9   meaning assigned by the Public Utility Regulatory Act of 1995

630-10   (Article 1446c-0, Vernon's Texas Civil Statutes).

630-11         Sec. 221.022.  OPTIONAL MITIGATION BANK PROVISIONS.  A

630-12   mitigation bank project may include a provision for:

630-13               (1)  a park;

630-14               (2)  recreation;

630-15               (3)  a scenic area; or

630-16               (4)  flood control.

630-17         Sec. 221.023.  MITIGATION BANK CONTRACTS; CONTRACT PAYMENTS.

630-18   (a)  A state agency or eligible political subdivision may contract

630-19   with another state agency or eligible political subdivision to pay

630-20   jointly any part of the cost to acquire, design, construct,

630-21   improve, or maintain a wetland mitigation bank or a buffer zone.

630-22         (b)  Payment of the cost of a project or a payment required

630-23   to be made under a contract may be made out of bond proceeds,

630-24   taxes, or any other money available for the payment.

 631-1         (c)  If a contract provides for payment over a term of years,

 631-2   an eligible political subdivision may impose a tax in an amount

 631-3   necessary to:

 631-4               (1)  create a sinking fund for the contract payments;

 631-5   and

 631-6               (2)  make the payments when due.

 631-7            (Sections 221.024-221.040 reserved for expansion

 631-8          SUBCHAPTER C.  PROVISIONS FOR POLITICAL SUBDIVISIONS

 631-9         Sec. 221.041.  APPLICATION TO FEDERAL AGENCY.  On behalf of

631-10   an eligible political subdivision that proposes to administer its

631-11   own individual or general wetland regulation program, the governor

631-12   may apply to the appropriate federal agency for program approval.

631-13         Sec. 221.042.  COMPLIANCE WITH FEDERAL PROGRAM.  An eligible

631-14   political subdivision authorized to implement a wetland mitigation

631-15   program may comply with a program established by the federal

631-16   government with respect to the implementation of a wetland

631-17   regulation program or for the acquisition, ownership, or operation

631-18   of a wetland mitigation bank.

631-19         Sec. 221.043.  COUNTY APPROVAL OF POLITICAL SUBDIVISION

631-20   PROGRAM.  An eligible political subdivision may not institute a

631-21   wetland regulation program unless the commissioners court of each

631-22   county in which the eligible political subdivision lies approves

631-23   the program after conducting a public hearing.

631-24         Sec. 221.044.  RULES FOR WETLAND DELINEATION.  (a)  An

 632-1   eligible political subdivision authorized to implement a wetland

 632-2   mitigation program may adopt and compile reasonably necessary

 632-3   rules.

 632-4         (b)  An eligible political subdivision by rule may set

 632-5   standards for delineating land as wetland for purposes of:

 632-6               (1)  this chapter; or

 632-7               (2)  a federal requirement.

 632-8         (c)  A rule under Subsection (b) may be adopted after

 632-9   consultation with federal agencies, including the United States

632-10   Fish and Wildlife Service, the United States Environmental

632-11   Protection Agency, the United States Army Corps of Engineers, and

632-12   the Soil Conservation Service of the United States Department of

632-13   Agriculture.

632-14         (d)  A standard for delineating wetland must comply with

632-15   federal requirements for delineating wetland.

632-16         Sec. 221.045.  PERMIT.  (a)  An eligible political

632-17   subdivision authorized to implement a wetland mitigation program

632-18   may issue a permit that incorporates, and assures compliance with,

632-19   an applicable:

632-20               (1)  requirement of this chapter; or

632-21               (2)  federal requirement.

632-22         (b)  A permit may be terminated or modified for cause,

632-23   including:

632-24               (1)  violation of a permit condition;

 633-1               (2)  obtaining a permit by misrepresentation or not

 633-2   fully disclosing all relevant facts; or

 633-3               (3)  a change in a condition that requires temporarily

 633-4   or permanently reducing or eliminating the permitted activity.

 633-5         Sec. 221.046.  MITIGATION BANK FINANCING.  (a)  A mitigation

 633-6   project participant may issue a bond, note, or other obligation to

 633-7   acquire land for, to pay any part of the cost of, or to acquire,

 633-8   construct, improve, operate, or maintain a wetland mitigation bank.

 633-9         (b)  The subdivision may issue a bond, note, or obligation:

633-10               (1)  in one or more series; and

633-11               (2)  payable from and secured by:

633-12                     (A)  a tax;

633-13                     (B)  an assessment;

633-14                     (C)  an impact fee;

633-15                     (D)  revenue;

633-16                     (E)  a grant or gift;

633-17                     (F)  a lease or contract; or

633-18                     (G)  a combination of resources listed in

633-19   Paragraphs (A)-(F).

633-20         (c)  In this section, "mitigation project participant" means

633-21   an eligible political subdivision that seeks to:

633-22               (1)  implement a project the unavoidable result of

633-23   which would adversely affect wetland; and

633-24               (2)  compensate for the loss of wetland acreage or

 634-1   wetland habitat value through participation in a mitigation bank.

 634-2         Sec. 221.047.  BOND REQUIREMENTS.  (a)  A bond issued under

 634-3   Section 221.046 is a negotiable instrument within the meaning and

 634-4   for purposes of the Business & Commerce Code.

 634-5         (b)  The bond may be:

 634-6               (1)  issued registrable as to principal or as to both

 634-7   principal and interest; or

 634-8               (2)  made redeemable before maturity.

 634-9         (c)  The bond may be:

634-10               (1)  issued in the form, denominations, and manner and

634-11   under the terms provided by the order or resolution authorizing the

634-12   issuance of the bond; and

634-13               (2)  sold in the manner, at the price, and under the

634-14   terms provided by the order or resolution authorizing the issuance

634-15   of the bond.

634-16         (d)  The bond shall:

634-17               (1)  be executed in accordance with the order or

634-18   resolution authorizing the issuance of the bond; and

634-19               (2)  bear interest at the rate provided by the order or

634-20   resolution authorizing the issuance of the bond.

634-21         (e)  The bond may bear interest and may be issued in

634-22   accordance with:

634-23               (1)  Chapter 503, Acts of the 54th Legislature, 1955

634-24   (Article 717k, Vernon's Texas Civil Statutes);

 635-1               (2)  Chapter 3, Acts of the 61st Legislature, Regular

 635-2   Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes);

 635-3               (3)  the Bond Procedures Act of 1981 (Article 717k-6,

 635-4   Vernon's Texas Civil Statutes); or

 635-5               (4)  Chapter 656, Acts of the 68th Legislature, Regular

 635-6   Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).

 635-7         (f)  The bond may be additionally secured by a:

 635-8               (1)  mortgage or deed of trust on real property that is

 635-9   related to the mitigation bank; or

635-10               (2)  chattel mortgage, lien, or security interest on

635-11   personal property appurtenant to that real property.

635-12         (g)  The eligible political subdivision may authorize the

635-13   execution of a trust indenture, mortgage, deed of trust, or other

635-14   encumbrance to evidence the indebtedness.

635-15         (h)  The eligible political subdivision may pledge to the

635-16   payment of the bond any part of a grant, a donation, revenue, or

635-17   income received or to be received from the United States or any

635-18   other source.

635-19         Sec. 221.048.  BOND PROCEEDS.  If the use authorized by the

635-20   order or resolution authorizing the issuance of a bond under

635-21   Section 221.046, the bond proceeds may be used to:

635-22               (1)  pay interest on the bond during or after the

635-23   acquisition or construction of an improvement project financed by

635-24   the bond issue;

 636-1               (2)  pay administrative and operation expenses;

 636-2               (3)  create a reserve fund for payment of the principal

 636-3   of and interest on the bonds; or

 636-4               (4)  create any other fund.

 636-5         (b)  Article 6, Chapter 3, Acts of the 72nd Legislature, 1st

 636-6   Called Session, 1991 (Article 5421u, Vernon's Texas Civil

 636-7   Statutes), is repealed.

 636-8     ARTICLE 25.  CHANGES RELATING TO NATURAL RESOURCES CODE (TEXAS

 636-9                SURFACE COAL MINING AND RECLAMATION ACT)

636-10         SECTION 25.01.  (a)  Section 134.004, Natural Resources Code,

636-11   is amended to more closely conform to the law from which it was

636-12   derived to read as follows:

636-13         Sec. 134.004.  DEFINITIONS.  In this chapter:

636-14               (1)  "Affected person" means a person having an

636-15   interest that is or may be affected.

636-16               (2)  "Alluvial valley floors" means the unconsolidated

636-17   stream-laid deposits holding streams where water availability is

636-18   sufficient for subirrigation or flood irrigation agricultural

636-19   activities.  The term does not include upland areas that are

636-20   generally overlaid by a thin veneer of colluvial deposits composed

636-21   chiefly of debris from sheet erosion, deposits by unconcentrated

636-22   runoff or slope wash, together with talus, other mass movement

636-23   accumulation, or windblown deposits.

636-24               (3)  "Applicant" means a person or other legal entity

 637-1   seeking a permit from the commission to conduct surface coal mining

 637-2   activities or underground mining activities under this chapter.

 637-3               (4)  "Approximate original contour" means the surface

 637-4   configuration achieved by backfilling and grading the mined area so

 637-5   that the reclaimed area, including any terracing or access roads,

 637-6   closely resembles the general surface configuration of the land

 637-7   before mining and blends into and complements the drainage pattern

 637-8   of the surrounding terrain, with all highwalls and spoil piles

 637-9   eliminated.

637-10               (5) [(4)]  "Coal" means all forms of coal and includes

637-11   lignite.

637-12               (6) [(5)]  "Coal exploration operations" means the

637-13   substantial disturbance of the surface or subsurface for or related

637-14   to the purpose of determining the location, quantity, or quality of

637-15   a coal deposit.

637-16               (7) [(6)]  "Commission" means the Railroad Commission

637-17   of Texas.

637-18               (8) [(7)]  "Federal Act" means the Surface Mining

637-19   Control and Reclamation Act of 1977 (30 U.S.C. Section 1201 et

637-20   seq.).

637-21               (9) [(8)]  "Imminent danger to the health or safety of

637-22   the public" means the existence of a condition or practice or a

637-23   violation of a permit or other requirement of this chapter in a

637-24   surface coal mining and reclamation operation that could reasonably

 638-1   be expected to cause substantial physical harm to persons outside

 638-2   the permit area before the condition, practice, or violation can be

 638-3   abated.  A reasonable expectation of death or serious injury before

 638-4   abatement exists if a rational person, subjected to the same

 638-5   conditions or practices giving rise to the peril, would not expose

 638-6   himself to the danger during the time necessary for abatement.

 638-7               (10) [(9)]  "Operator" means a person engaged in coal

 638-8   mining who removes or intends to remove more than 250 tons of coal

 638-9   from the earth by coal mining within 12 consecutive months in one

638-10   location.

638-11               (11) [(10)]  "Other minerals" means clay, stone, sand,

638-12   gravel, metalliferous and nonmetalliferous ores, and other solid

638-13   materials or substances of commercial value excavated in solid form

638-14   from natural deposits on or in the earth, exclusive of coal and

638-15   those minerals that occur naturally in liquid or gaseous form.

638-16               (12) [(11)]  "Permit" means a permit to conduct surface

638-17   coal mining and reclamation operations or underground mining

638-18   operations issued by the commission.

638-19               (13) [(12)]  "Permit area" means the area of land

638-20   indicated on the approved map submitted by the operator with the

638-21   operator's application, which area of land must be covered by an

638-22   operator's bond as required by Subchapter F and readily

638-23   identifiable by appropriate markers on the site.

638-24               (14) [(13)]  "Permit holder" means a person holding a

 639-1   permit to conduct surface coal mining and reclamation operations or

 639-2   underground mining activities under this chapter.

 639-3               (15) [(14)]  "Person" means an individual, partnership,

 639-4   society, joint-stock company, firm, company, corporation, business

 639-5   organization, governmental agency, or any organization or

 639-6   association of citizens.

 639-7               (16) [(15)]  "Prime farmland" means land that the

 639-8   commission determines meets the criteria prescribed by the

 639-9   secretary of agriculture and published in the Federal Register,

639-10   including moisture availability, temperature regime, chemical

639-11   balance, permeability without regard to annual mean soil

639-12   temperatures, surface layer composition, susceptibility to

639-13   flooding, and erosion characteristics, and that historically has

639-14   been used for intensive agricultural purposes.  Land has not

639-15   historically been used for the production of cultivated crops if:

639-16                     (A)  the land has been used as woodland or

639-17   rangeland; or

639-18                     (B)  the only cultivation has been disking to:

639-19                           (i)  establish or help maintain bermuda

639-20   grass used as forage; or

639-21                           (ii)  plant oats or rye for quick cover, to

639-22   be used as forage and not as a grain crop.

639-23               (17) [(16)]  "Secretary of agriculture" means the

639-24   secretary of the United States Department of Agriculture.

 640-1               (18) [(17)]  "Secretary of the interior" means the

 640-2   secretary of the United States Department of the Interior.

 640-3               (19) [(18)]  "Surface coal mining and reclamation

 640-4   operations" means surface coal mining operations and the activities

 640-5   necessary and incidental to the reclamation of those operations.

 640-6               (20) [(19)]  "Surface coal mining operations" means:

 640-7                     (A)  activities conducted on the surface of land

 640-8   in connection with a surface coal mine or subject to the

 640-9   requirements of Section 134.015 incidental to an underground coal

640-10   mine, including excavation for the purpose of obtaining coal,

640-11   including such common methods as contour, strip, auger, mountaintop

640-12   removal, box cut, open pit, and area mining, the use of explosives

640-13   and blasting, and in situ distillation or retorting, leaching or

640-14   other chemical or physical processing, and the cleaning,

640-15   concentrating, or other processing or preparation, loading of coal

640-16   at or near the mine site;  excluding the extraction of coal

640-17   incidental to the extraction of other minerals where the coal does

640-18   not exceed 16 2/3 percent of the total tonnage of coal and other

640-19   minerals removed annually for purposes of commercial use or sale or

640-20   coal explorations subject to this chapter;  and

640-21                     (B)  the areas on which those activities occur or

640-22   where those activities disturb the natural land surface, areas

640-23   adjacent to land the use of which is incidental to any of those

640-24   activities, all land affected by the construction of new roads or

 641-1   the improvement or use of existing roads to gain access to the site

 641-2   of those activities and for haulage, and excavations, workings,

 641-3   impoundments, dams, ventilation shafts, entryways, refuse banks,

 641-4   dumps, stockpiles, overburden piles, spoil banks, culm banks,

 641-5   tailings, holes or depressions, repair areas, storage areas,

 641-6   processing areas, shipping areas, and other areas on which are

 641-7   sited structures, facilities, or other property or materials on the

 641-8   surface, resulting from or incident to those activities.

 641-9               (21) [(20)]  "Unwarranted failure to comply" means the

641-10   failure of a permit holder to prevent the occurrence of any

641-11   violation of the permit holder's permit or any requirement of this

641-12   chapter due to indifference, lack of diligence, or lack of

641-13   reasonable care, or the failure to abate any violation of the

641-14   permit holder's permit or this chapter due to indifference, lack of

641-15   diligence, or lack of reasonable care.

641-16         (b)  Section 134.005(a), Natural Resources Code, is amended

641-17   to more closely conform to Section 528, Surface Mining Control and

641-18   Reclamation Act of 1977 (30 U.S.C. Section 1278), to read as

641-19   follows:

641-20         (a)  This chapter does not apply to the extraction of coal:

641-21               (1)  by a landowner for the landowner's own

641-22   noncommercial use from land owned or leased by the landowner; or

641-23               (2)  [for commercial purposes if the surface mining

641-24   operation affects two acres or less; and]

 642-1               [(3)]  incidental to federal, state, or local

 642-2   government-financed highway or other construction under commission

 642-3   rules.

 642-4         (c)  Subchapter A, Chapter 134, Natural Resources Code, is

 642-5   amended to more closely conform to the law from which it was

 642-6   derived by adding Section 134.008 to read as follows:

 642-7         Sec. 134.008.  APPLICABILITY TO GOVERNMENTAL UNITS.  An

 642-8   agency, unit, or instrumentality of federal, state, or local

 642-9   government, including a publicly owned utility or publicly owned

642-10   corporation of federal, state, or local government, that proposes

642-11   to engage in surface coal mining operations that are subject to

642-12   this chapter shall comply with this chapter.

642-13         (d)  Section 134.014, Natural Resources Code, is amended to

642-14   more closely conform to the law from which it was derived to read

642-15   as follows:

642-16         Sec. 134.014.  COAL EXPLORATION OPERATIONS.  (a)  A person

642-17   who conducts coal exploration operations that substantially disturb

642-18   the natural land surface shall comply with commission rules adopted

642-19   to govern those operations.  The rules shall require that before

642-20   conducting the exploration, a person file with the commission

642-21   notice of intent to explore and include with the notice:

642-22               (1)  a description of the exploration area and the

642-23   period of proposed exploration; and

642-24               (2)  provisions for reclaiming, in accordance with the

 643-1   performance standards in Sections 134.091 through 134.109, the land

 643-2   disturbed in exploration, including provisions for reclamation of

 643-3   excavations, roads, and drill holes and for removal of necessary

 643-4   facilities and equipment.

 643-5         (b)  A person who conducts coal exploration operations that

 643-6   substantially disturb the natural land surface in violation of this

 643-7   section or a rule adopted under this section is subject to Sections

 643-8   134.174 through 134.181.

 643-9         (c)  An operator may not remove more than 250 tons of coal

643-10   under an exploration permit without the specific written approval

643-11   of the commission.

643-12         (e)  Section 134.022(c), Natural Resources Code, is amended

643-13   to more closely conform to the law from which it was derived to

643-14   read as follows:

643-15         (c)  This section is subject to rights existing on August 3,

643-16   1977 [May 9, 1979], and does not affect surface coal mining

643-17   operations that  existed on August 3, 1977.

643-18         (f)  Sections 134.068 and 134.069, Natural Resources Code,

643-19   are amended to conform to Section 2, Chapter 272, Acts of the 74th

643-20   Legislature, Regular Session, 1995, to read as follows:

643-21         Sec. 134.068.  SCHEDULE OF NOTICES OF VIOLATIONS.  (a)  The

643-22   applicant shall file with the application a schedule listing any

643-23   notices of violations of this chapter, the federal Act, a federal

643-24   regulation or federal or state program adopted under the federal

 644-1   Act, or another [of a] law, rule, or regulation of the United

 644-2   States, [or] this state, or a department or agency in the United

 644-3   States pertaining to air or water environmental protection incurred

 644-4   by the applicant in connection with a surface coal mining operation

 644-5   [in this state] during the three years before the application date.

 644-6         (b)  The schedule must indicate [applicant shall include in

 644-7   the schedule] the final resolution of any notice of violation.

 644-8         Sec. 134.069.  EFFECT OF PAST OR PRESENT VIOLATION.  (a)  If

 644-9   the schedule under Section 134.068 or other information available

644-10   to the commission indicates that a surface coal mining operation

644-11   owned or controlled by the applicant is currently in violation of

644-12   this chapter or another law referred to in Section 134.068 [that

644-13   section], the commission may not issue a permit until the applicant

644-14   submits proof that[:]

644-15               [(1)]  the violation has been corrected or is being

644-16   corrected to the satisfaction of the commission, department, or

644-17   agency with jurisdiction over the violation[; or]

644-18               [(2)  the applicant is contesting the notice of

644-19   violation].

644-20         (b)  The commission may not issue a permit to an applicant if

644-21   it finds, after opportunity for hearing, that the applicant or

644-22   operator specified in the application controls or has controlled

644-23   mining operations with a demonstrated pattern of wilful violations

644-24   of this chapter or another law referred to in Section 134.068 that,

 645-1   by their nature and duration and the resulting irreparable damage

 645-2   to the environment, indicate an intent not to comply with this

 645-3   chapter or another law referred to in that section.

 645-4         (g)  Subchapter D, Chapter 134, Natural Resources Code, is

 645-5   amended by adding Section 134.084 to conform to Sections 1 and 3,

 645-6   Chapter 272, Acts of the 74th Legislature, Regular Session, 1995,

 645-7   to read as follows:

 645-8         Sec. 134.084.  SUSPENSION OR RESCISSION OF IMPROVIDENTLY

 645-9   ISSUED PERMIT.  (a)  The commission may suspend or rescind an

645-10   improvidently issued permit under rules adopted by the commission.

645-11         (b)  A rule adopted by the commission under this section must

645-12   be consistent with and not less effective than a regulation adopted

645-13   under the federal Act.

645-14         (c)  Except as provided by Subsection (d), Chapter 2001,

645-15   Government Code, does not apply to an action by the commission

645-16   under this section to suspend or rescind an improvidently issued

645-17   permit.

645-18         (d)  A permit holder who is given notice of suspension or

645-19   rescission of an improvidently issued permit under this section may

645-20   file an appeal for administrative review of the notice as provided

645-21   by commission rules.  The review is governed by Chapter 2001,

645-22   Government Code.

645-23         (h)  Section 134.092(a), Natural Resources Code, is amended

645-24   to more closely conform to the law from which it was derived to

 646-1   read as follows:

 646-2         (a)  Performance standards for surface coal mining and

 646-3   reclamation operations shall require an operator:

 646-4               (1)  to conduct surface coal mining operations to

 646-5   maximize the use and conservation of the solid fuel resource being

 646-6   recovered so that reaffecting the land in the future through

 646-7   surface coal mining can be minimized;

 646-8               (2)  to restore the land affected to a condition

 646-9   capable of supporting the uses that it could support before mining

646-10   or reasonably likely higher or better uses if:

646-11                     (A)  the uses do not present an actual or

646-12   probable hazard to public health or safety or pose an actual or

646-13   probable threat of water diminution or pollution;  and

646-14                     (B)  the permit applicant's declared proposed

646-15   land use following reclamation:

646-16                           (i)  is not considered impractical or

646-17   unreasonable;

646-18                           (ii)  is not inconsistent with applicable

646-19   land use policies and plans;

646-20                           (iii)  does not involve unreasonable delay

646-21   in implementation;  and

646-22                           (iv)  does not violate federal, state, or

646-23   local law;

646-24               (3)  except as provided by Sections 134.093(b),

 647-1   134.094(b), and 134.107, to backfill, compact where advisable to

 647-2   ensure stability or to prevent leaching of toxic materials, and

 647-3   grade to restore the approximate original contour of the land with

 647-4   all highwalls, spoil piles, and depressions eliminated, unless

 647-5   small  depressions are needed to retain moisture to assist

 647-6   revegetation or as otherwise authorized under this chapter;

 647-7               (4)  to stabilize and protect the surface areas,

 647-8   including spoil piles affected by the surface coal mining and

 647-9   reclamation operation, for effective control of erosion and

647-10   attendant air and water pollution;

647-11               (5)  to remove the topsoil from the land in a separate

647-12   layer and replace it on the backfill area or, if the topsoil is not

647-13   used immediately, to segregate it in a separate pile from other

647-14   spoil;

647-15               (6)  to restore the topsoil or the best available

647-16   subsoil that is best able to support vegetation;

647-17               (7)  for prime farmland to be mined and reclaimed, at a

647-18   minimum:

647-19                     (A)  to segregate the A horizon of the natural

647-20   soil, unless it can be shown that other available soil materials

647-21   will create a final soil having a greater productive capacity, and,

647-22   if this material is not used immediately, to stockpile it

647-23   separately from other spoil and provide needed protection from wind

647-24   and water erosion or contamination by other acid or toxic

 648-1   materials;

 648-2                     (B)  to segregate the B horizon of the natural

 648-3   soil, underlying C horizons or other strata, or a combination of

 648-4   those horizons or other strata that are shown to be texturally and

 648-5   chemically suitable for plant growth and that can be shown to be

 648-6   equally or more favorable for plant growth than the B horizon, in

 648-7   sufficient quantities to create in the regraded final soil a root

 648-8   zone of a depth and quality comparable to that which existed in the

 648-9   natural soil and, if this material is not used immediately, to

648-10   stockpile it separately from other spoil and provide needed

648-11   protection from wind and water erosion or contamination by other

648-12   acid or toxic material;

648-13                     (C)  to replace and regrade the root zone

648-14   material described by Subdivision (7)(B) with proper compaction and

648-15   uniform depth over the regraded spoil material; and

648-16                     (D)  to redistribute and grade uniformly the

648-17   surface soil horizon described by Subdivision (7)(A);

648-18               (8)  to create a permanent impoundment of water on a

648-19   mining site as part of a reclamation activity if:

648-20                     (A)  the approved mining and reclamation plan and

648-21   permit authorize impoundment;  and

648-22                     (B)  it is adequately demonstrated that:

648-23                           (i)  the size of the impoundment is

648-24   adequate for its intended purposes;

 649-1                           (ii)  the impoundment dam construction will

 649-2   be designed to achieve necessary stability with an adequate margin

 649-3   of safety compatible with that of structures constructed under the

 649-4   Watershed Protection and Flood Prevention Act (16 U.S.C. Section

 649-5   1001 et seq.);

 649-6                           (iii)  the quality of impounded water will

 649-7   be permanently suitable for its intended use;

 649-8                           (iv)  discharges from the impoundment will

 649-9   not degrade the water quality in the receiving stream below water

649-10   quality standards established under applicable federal and state

649-11   law;

649-12                           (v)  the water level will be reasonably

649-13   stable;

649-14                           (vi)  final grading will provide adequate

649-15   safety and access for proposed water users;  and

649-16                           (vii)  the impoundment will not reduce the

649-17   quality or quantity of water used by adjacent or surrounding

649-18   landowners for agricultural, industrial, recreational, or domestic

649-19   uses;

649-20               (9)  to conduct any augering operation associated with

649-21   surface mining so as to maximize recoverability of coal reserves

649-22   remaining after the operation and reclamation are complete and to

649-23   seal the auger holes with an impervious and noncombustible material

649-24   to prevent drainage unless the commission determines that the

 650-1   resulting impoundment of water in the auger holes may create a

 650-2   hazard to the environment or the public health or safety;

 650-3               (10)  to minimize disturbances to the prevailing

 650-4   hydrologic balance at the mine site in associated offsite areas and

 650-5   to the quality and quantity of water in surface-water systems and

 650-6   groundwater systems both during and after surface coal mining

 650-7   operations and during reclamation by:

 650-8                     (A)  avoiding acid or other toxic mine drainage

 650-9   by measures including:

650-10                           (i)  preventing water from contacting or

650-11   removing water from contact with toxic-producing deposits;

650-12                           (ii)  treating drainage to reduce toxic

650-13   content that adversely affects downstream water when the drainage

650-14   is released to a watercourse;  or

650-15                           (iii)  casing, sealing, or otherwise

650-16   managing boreholes, shafts, and wells and keeping acid or other

650-17   toxic drainage from entering surface water and groundwater;

650-18                     (B)  conducting surface coal mining operations

650-19   to:

650-20                           (i)  prevent, to the extent possible using

650-21   the best technology currently available, additional contributions

650-22   of suspended solids to streamflow or runoff outside the permit

650-23   area;  and

650-24                           (ii)  prevent those contributions from

 651-1   exceeding requirements set by applicable state or federal law;

 651-2                     (C)  constructing any siltation structures under

 651-3   Paragraph (B) before beginning surface coal mining operations;

 651-4                     (D)  cleaning out and removing temporary or large

 651-5   settling ponds or other siltation structures from drainways after

 651-6   disturbed areas are revegetated and stabilized and depositing the

 651-7   silt and debris at a site and in a manner approved by the

 651-8   commission;

 651-9                     (E)  restoring the recharge capacity of the mined

651-10   area to approximate premining conditions;

651-11                     (F)  avoiding channel deepening or enlargement in

651-12   operations requiring the discharge of water from a mine;

651-13                     (G)  preserving throughout the mining and

651-14   reclamation process the essential hydrologic functions of alluvial

651-15   valley floors in the arid and semiarid areas of the country;  and

651-16                     (H)  performing other actions the commission

651-17   prescribes;

651-18               (11)  with respect to surface disposal of mine wastes,

651-19   tailings, coal processing wastes, and other wastes in areas other

651-20   than the mine workings or excavations:

651-21                     (A)  to stabilize the waste piles in designated

651-22   areas through construction in compacted layers including the use of

651-23   incombustible and impervious materials, if necessary;  and

651-24                     (B)  to assure that the final contour of the

 652-1   waste pile will be compatible with natural surroundings and that

 652-2   the site can and will be stabilized and revegetated according to

 652-3   this chapter;

 652-4               (12)  to refrain from surface coal mining within 500

 652-5   feet of an active or abandoned underground mine to prevent a

 652-6   breakthrough and to protect the health or safety of miners;

 652-7               (13)  to design, locate, construct, operate, maintain,

 652-8   enlarge, modify, and remove or abandon, in accordance with the

 652-9   standards developed under commission rule, existing and new coal

652-10   mine waste piles used temporarily or permanently as dams or

652-11   embankments;

652-12               (14)  to ensure that debris, acid-forming materials,

652-13   toxic materials, or materials constituting a fire hazard are

652-14   treated, buried and compacted, or otherwise disposed of in a manner

652-15   designed to prevent contamination of surface water or groundwater

652-16   and that contingency plans are developed to prevent sustained

652-17   combustion;

652-18               (15)  to ensure that explosives are used in accordance

652-19   with state and federal law, including commission rules;

652-20               (16)  to ensure that reclamation efforts proceed in an

652-21   environmentally sound manner and as contemporaneously as

652-22   practicable with the surface coal mining operations;

652-23               (17)  to ensure that the construction, maintenance, and

652-24   postmining conditions of access roads into and across the site of

 653-1   operations will control or prevent:

 653-2                     (A)  erosion and siltation;

 653-3                     (B)  water pollution;  and

 653-4                     (C)  damage to:

 653-5                           (i)  fish or wildlife or their habitat;  or

 653-6                           (ii)  public or private property;

 653-7               (18)  to refrain from constructing roads or other

 653-8   access ways up a stream bed or drainage channel or so near the

 653-9   channel as to seriously alter the normal flow of water;

653-10               (19)  to establish on regraded areas and other affected

653-11   land a diverse, effective, and permanent vegetative cover:

653-12                     (A)  of the seasonal variety native to the area

653-13   of land to be affected;

653-14                     (B)  capable of self-regeneration and plant

653-15   succession;  and  

653-16                     (C)  at least equal in extent of cover to the

653-17   natural vegetation of the area;

653-18               (20)  to assume responsibility for successful

653-19   revegetation as required by Subdivision (19) for five years after

653-20   the last year of augmented seeding, fertilizing, irrigation, or

653-21   other work in order to assure compliance with that subsection;

653-22               (21)  to protect off-site areas from slides or damage

653-23   occurring during the surface coal mining and reclamation operations

653-24   and to refrain from depositing spoil material or locating any part

 654-1   of the operations or waste accumulations outside the permit area;

 654-2               (22)  to place the excess spoil material resulting from

 654-3   surface coal mining and reclamation activities in accordance with

 654-4   Section 134.106;

 654-5               (23)  to meet other standards necessary to achieve

 654-6   reclamation in accordance with the purposes of this chapter,

 654-7   considering the physical, climatological, and other characteristics

 654-8   of the site;

 654-9               (24)  to the extent possible, using the best technology

654-10   currently available, to minimize disturbance and adverse impacts of

654-11   the operation on fish, wildlife, and related environmental values

654-12   and to enhance those resources where practicable;  and

654-13               (25)  to provide an undisturbed natural barrier

654-14   beginning at the elevation of the lowest coal seam to be mined and

654-15   extending from the outslope for the distance the commission

654-16   determines shall be retained in place as a barrier to slides and

654-17   erosion.

654-18         (i)  Section 134.163, Natural Resources Code, is amended to

654-19   more closely conform to the law from which it was derived to read

654-20   as follows:

654-21         Sec. 134.163.  TERM OF CESSATION ORDER.  Except as provided

654-22   by Section 134.167, a cessation order under Section 134.161 or

654-23   134.162 remains in effect until the commission:

654-24               (1)  determines the condition, practice, or violation

 655-1   has been abated;  or

 655-2               (2)  modifies, vacates, or terminates the order under

 655-3   Section 134.166.

 655-4         (j)  Chapter 272, Acts of the 74th Legislature, Regular

 655-5   Session, 1995, is repealed.

 655-6        ARTICLE 26.  CHANGES RELATING TO PARKS AND WILDLIFE CODE

 655-7         SECTION 26.01.  Section 31.003(14), Parks and Wildlife Code,

 655-8   as amended by Chapters 450 and 739, Acts of the 73rd Legislature,

 655-9   Regular Session, 1993, is revised to read as follows:

655-10               (14)  "Personal watercraft" means a vessel of a type

655-11   which is specifically designed to be operated by a person or

655-12   persons sitting, standing, or kneeling on the vessel rather than in

655-13   the conventional manner of sitting or standing inside the vessel.

655-14               ARTICLE 27.  CHANGES RELATING TO PENAL CODE

655-15         SECTION 27.01.  Section 22.01(b), Penal Code, as amended by

655-16   Chapters 318 and 659, Acts of the 74th Legislature, Regular

655-17   Session, 1995, is amended and reenacted to read as follows:

655-18         (b)  An offense under Subsection (a)(1) is a Class A

655-19   misdemeanor, except that the offense is:

655-20               (1)  a felony of the third degree if the offense is

655-21   committed against a person the actor knows is a public servant

655-22   while the public servant is lawfully discharging an official duty,

655-23   or in retaliation or on account of an exercise of official power or

655-24   performance of an official duty as a public servant; or

 656-1               (2)  a state jail felony if [unless] it is shown on the

 656-2   trial of the offense that the offense was committed against a

 656-3   family member and that the defendant has been previously convicted

 656-4   of an offense against a family member under this section two or

 656-5   more times[, in which event the offense is a state jail felony].

 656-6             ARTICLE 28.  CHANGES RELATING TO PROPERTY CODE

 656-7         SECTION 28.01.  Section 92.2611(d), Property Code, as added

 656-8   by Section 10, Chapter 869, Acts of the 74th Legislature, Regular

 656-9   Session, 1995, is repealed.

656-10         SECTION 28.02.  Chapter 141, Property Code, is amended to

656-11   conform to Section 1, Chapter 1043, Acts of the 74th Legislature,

656-12   Regular Session, 1995, by adding a chapter heading to read as

656-13   follows:

656-14                    CHAPTER 141.  TRANSFERS TO MINORS

656-15                ARTICLE 29.  CHANGES RELATING TO TAX CODE

656-16         SECTION 29.01.  Sections 26.012(2) and (7), Tax Code, are

656-17   amended to conform to Section 1, Chapter 699, and Section 1,

656-18   Chapter 988, Acts of the 70th Legislature, Regular Session, 1987,

656-19   to read as follows:

656-20               (2)  "Collection rate" means the amount, expressed as a

656-21   percentage, calculated by:

656-22                     (A)  adding together estimates of the following

656-23   amounts:

656-24                           (i)  [an estimate of] the total amount of

 657-1   taxes to be levied in the current year and collected before July 1

 657-2   of the next year, including any penalties and interest on those

 657-3   taxes that will be collected during that period;

 657-4                           (ii)  [plus] any additional taxes imposed

 657-5   under Chapter 23 [of this code] collected between July 1 of the

 657-6   current year and June 30 of the following year; and

 657-7                           (iii)  [during the same period, plus] the

 657-8   total amount of delinquent taxes levied in any preceding year that

 657-9   will be collected between July 1 of the current year and June 30 of

657-10   the following year, including any penalties and interest on those

657-11   taxes that will be collected during that period; and

657-12                     (B)  dividing the amount  calculated under

657-13   Paragraph (A) by [expressed as a percentage of] the total amount of

657-14   taxes that will be levied in the current year.

657-15               (7)  "Debt" means a bond, warrant, certificate of

657-16   obligation, or other evidence of indebtedness owed by a taxing unit

657-17   that is payable solely from property taxes in installments over a

657-18   period of more than one year, not budgeted for payment from

657-19   maintenance and operations funds, and secured by a pledge of

657-20   property taxes, or a payment made under contract to secure

657-21   indebtedness of a similar nature issued by another political

657-22   subdivision on behalf of the taxing unit.

657-23         SECTION 29.02.  Section  26.012(13), Tax Code, is amended to

657-24   conform to Section 2, Chapter 849, Acts of the 70th Legislature,

 658-1   Regular Session, 1987, to read as follows:

 658-2               (13)  "Last year's levy" means the total of:

 658-3                     (A)  the amount of taxes that would be generated

 658-4   by multiplying the total tax rate adopted by the governing body in

 658-5   the preceding year by the total taxable value of property on the

 658-6   appraisal roll for the preceding year, including:

 658-7                           (i)  taxable value that was reduced in an

 658-8   appeal under Chapter 42; and

 658-9                           (ii)  all appraisal roll supplements and

658-10   corrections other than corrections made pursuant to Section

658-11   25.25(d) [of this code], as of the date of the calculation, except

658-12   that last year's taxable value for a school district excludes the

658-13   total value of homesteads that qualified for a tax limitation as

658-14   provided by Section 11.26 [of this code]; and

658-15                     (B)  the amount of taxes refunded by the taxing

658-16   unit in the preceding year for tax years before that year.

658-17         SECTION 29.03.  Section 26.04, Tax Code, as amended by

658-18   Section 1, Chapter 699, Section 2, Chapter 849, Section 3, Chapter

658-19   947, and Section 1, Chapter 988, Acts of the 70th Legislature,

658-20   Regular Session, 1987; by Section 284(18), Chapter 14, Acts of the

658-21   72nd Legislature, Regular Session, 1991; by Section 45, Chapter 6,

658-22   Acts of the 72nd Legislature, 2nd Called Session, 1991; and by

658-23   Section 2, Chapter 81, and Sections 1 and 2, Chapter 611, Acts of

658-24   the 73rd Legislature, Regular Session, 1993; is reenacted to read

 659-1   as follows:

 659-2         Sec. 26.04.  SUBMISSION OF ROLL TO GOVERNING BODY; EFFECTIVE

 659-3   AND ROLLBACK TAX RATES.  (a)  On receipt of the appraisal roll, the

 659-4   assessor for a taxing unit shall determine the total appraised

 659-5   value, the total assessed value, and the total taxable value of

 659-6   property taxable by the unit.  He shall also determine, using

 659-7   information provided by the appraisal office, the appraised,

 659-8   assessed, and taxable value of new property.

 659-9         (b)  The assessor shall submit the appraisal roll for the

659-10   unit showing the total appraised, assessed, and taxable values of

659-11   all property and the total taxable value of new property to the

659-12   governing body of the unit by August 1 or as soon thereafter as

659-13   practicable.  By August 1 or as soon thereafter as practicable, the

659-14   taxing unit's collector shall certify an estimate of the collection

659-15   rate for the current year to the governing body.  If the collector

659-16   certified an anticipated collection rate in the preceding year and

659-17   the actual collection rate in that year exceeded the anticipated

659-18   rate, the collector shall also certify the amount of debt taxes

659-19   collected in excess of the anticipated amount in the preceding

659-20   year.

659-21         (c)  An officer or employee designated by the governing body

659-22   shall calculate the effective tax rate and the rollback tax rate

659-23   for the unit, where:

659-24               (1)  "Effective tax rate" means a rate expressed in

 660-1   dollars per $100 of taxable value calculated according to the

 660-2   following formula:

 660-4                        _____________________________________________            

 660-5                         (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)

 660-6   ; and

 660-7               (2)  "Rollback tax rate" means a rate expressed in

 660-8   dollars per $100 of taxable value [and] calculated according to the

 660-9   following formula:

660-11                         X 1.08) + CURRENT DEBT RATE

660-12         (d)  The effective tax rate for a county is the sum of the

660-13   effective tax rates calculated for each type of tax the county

660-14   levies and the rollback tax rate for a county is the sum of the

660-15   rollback tax rates calculated for each type of tax the county

660-16   levies.

660-17         (e)  By August 7 or as soon thereafter as practicable, the

660-18   designated officer or employee shall submit the rates to the

660-19   governing body.  He shall deliver by mail to each property owner in

660-20   the unit or publish in a newspaper in the form prescribed by the

660-21   comptroller:

660-22               (1)  the effective tax rate, the rollback tax rate, and

660-23   an explanation of how they were calculated;

660-24               (2)  the estimated amount of interest and sinking fund

 661-1   balances and the estimated amount of maintenance and operation or

 661-2   general fund balances remaining at the end of the current fiscal

 661-3   year that are not encumbered with or by corresponding existing debt

 661-4   obligation, except that for a school district, estimated funds

 661-5   necessary for the operation of the district prior to the receipt of

 661-6   the first state education aid payment in the succeeding school year

 661-7   shall be subtracted from the estimated fund balances;

 661-8               (3)  a schedule of the unit's debt obligations showing:

 661-9                     (A)  the amount of principal and interest that

661-10   will be paid to service the unit's debts in the next year from

661-11   property tax revenue, including payments of lawfully incurred

661-12   contractual obligations providing security for the payment of the

661-13   principal of and interest on bonds and other evidences of

661-14   indebtedness issued on behalf of the unit by another political

661-15   subdivision;

661-16                     (B)  the amount by which taxes imposed for debt

661-17   are to be increased because of the unit's anticipated collection

661-18   rate; and

661-19                     (C)  the total of the amounts listed in

661-20   Paragraphs (A)-(B), less any amount collected in excess of the

661-21   previous year's anticipated collections certified as provided in

661-22   Subsection (b) [of this section]; and

661-23               (4)  the amount of additional sales and use tax revenue

661-24   anticipated in calculations under Section 26.041 [of this code].

 662-1               (5)  in the year that a taxing unit calculates an

 662-2   adjustment under Subsection (i) or (j) [Section 26.04(k) or (l) of

 662-3   this code], the unit shall publish a schedule that includes the

 662-4   following elements:

 662-5                     (A)  the name of the unit discontinuing the

 662-6   department, function, or activity;

 662-7                     (B)  the amount of property tax revenue spent by

 662-8   the unit listed under Paragraph (A) [of this subsection] to operate

 662-9   the discontinued department, function, or activity in the 12 months

662-10   preceding the month in which the calculations required by this

662-11   chapter are made; and

662-12                     (C)  the name of the unit that operates a

662-13   distinct department, function, or activity in all or a majority of

662-14   the territory of a taxing unit that has discontinued operating the

662-15   distinct department, function, or activity; and

662-16               (6)  in the year following the year in which a taxing

662-17   unit raised its rollback rate as required by Subsection (j)

662-18   [Section 26.04(l) of this code], the taxing unit shall publish a

662-19   schedule that includes the following elements:

662-20                     (A)  the amount of property tax revenue spent by

662-21   the unit to operate the department, function, or activity for which

662-22   the taxing unit raised the rollback rate as required by Subsection

662-23   (j) [Section 26.04(l) of this code] for the 12 months preceding the

662-24   month in which the calculations required by this chapter are made;

 663-1   and

 663-2                     (B)  the amount published by the unit in the

 663-3   preceding tax year under Subdivision (5)(B) [Section 26.04(e)(5)(B)

 663-4   of this code].

 663-5         (f)  If as a result of consolidation of taxing units a taxing

 663-6   unit includes territory that was in two or more taxing units in the

 663-7   preceding year, the amount of taxes imposed in each in the

 663-8   preceding year is combined for purposes of calculating the

 663-9   effective and rollback tax rates under this section.

663-10         (g)  A person who owns taxable property is entitled to an

663-11   injunction prohibiting the taxing unit in which the property is

663-12   taxable from adopting a tax rate if the assessor or designated

663-13   officer or employee of the unit, as applicable, has not complied

663-14   with the computation or publication requirements of this section

663-15   and the failure to comply was not in good faith.

663-16         (h) [(i)]  For purposes of this section, the anticipated

663-17   collection rate of a taxing unit is the percentage relationship

663-18   that the total amount of estimated tax collections for the current

663-19   year bears to the total amount of taxes imposed for the current

663-20   year.  The total amount of estimated tax collections for the

663-21   current year is the sum of the collector's estimate of:

663-22               (1)  the total amount of property taxes imposed in the

663-23   current year that will be collected before July 1 of the following

663-24   year, including any penalties and interest on those taxes that will

 664-1   be collected during that period; and

 664-2               (2)  the total amount of delinquent property taxes

 664-3   imposed in previous years that will be collected on or after July 1

 664-4   of the current year and before July 1 of the following year,

 664-5   including any penalties and interest on those taxes that will be

 664-6   collected during that period.

 664-7         [(j)  Subsections (b)(2)(B) and (e)(3)(C)(ii) of this section

 664-8   do not apply to a taxing unit in a tax year if the taxing unit did

 664-9   not impose ad valorem taxes in the preceding year.]

664-10         (i) [(k)]  This subsection applies to a taxing unit that has

664-11   agreed by written contract to transfer a distinct department,

664-12   function, or activity to another taxing unit and discontinues

664-13   operating that distinct department, function, or activity if the

664-14   operation of that department, function, or activity in all or a

664-15   majority of the territory of the taxing unit is continued by

664-16   another existing taxing unit or by a new taxing unit.  The rollback

664-17   tax rate of a taxing unit to which this subsection applies in the

664-18   first tax year in which a budget is adopted that does not allocate

664-19   revenue to the discontinued department, function, or activity is

664-20   calculated as otherwise provided by this section, except that last

664-21   year's levy used to calculate the effective maintenance and

664-22   operations rate of the unit is reduced by the amount of maintenance

664-23   and operations tax revenue spent by the taxing unit to operate the

664-24   department, function, or activity for the 12 months preceding the

 665-1   month in which the calculations required by this chapter are made

 665-2   and in which the unit operated the discontinued department,

 665-3   function, or activity.  If the unit did not operate that

 665-4   department, function, or activity for the full 12 months preceding

 665-5   the month in which the calculations required by this chapter are

 665-6   made, the unit shall reduce last year's levy used for calculating

 665-7   the effective maintenance and operations rate of the unit by the

 665-8   amount of the revenue spent in the last full fiscal year in which

 665-9   the unit operated the discontinued department, function, or

665-10   activity.

665-11         (j) [(l)]  This subsection applies to a taxing unit that had

665-12   agreed by written contract to accept the transfer of a distinct

665-13   department, function, or activity from another taxing unit and

665-14   operates a distinct department, function, or activity if the

665-15   operation of a substantially similar department, function, or

665-16   activity in all or a majority of the territory of the taxing unit

665-17   has been discontinued by another taxing unit, including a dissolved

665-18   taxing unit.  The rollback tax rate of a taxing unit to which this

665-19   subsection applies in the first tax year after the other taxing

665-20   unit discontinued the substantially similar department, function,

665-21   or activity in which a budget is adopted that allocates revenue to

665-22   the department, function, or activity is calculated as otherwise

665-23   provided by this section, except that last year's levy used to

665-24   calculate the effective maintenance and operations rate of the unit

 666-1   is increased by the amount of maintenance and operations tax

 666-2   revenue spent by the taxing unit that discontinued operating the

 666-3   substantially similar department, function, or activity to operate

 666-4   that department, function, or activity for the 12 months preceding

 666-5   the month in which the calculations required by this chapter are

 666-6   made and in which the unit operated the discontinued department,

 666-7   function, or activity.  If the unit did not operate the

 666-8   discontinued department, function, or activity for the full 12

 666-9   months preceding the month in which the calculations required by

666-10   this chapter are made, the unit may increase last year's levy used

666-11   to calculate the effective maintenance and operations rate by an

666-12   amount not to exceed the amount of property tax revenue spent by

666-13   the discontinuing unit to operate the discontinued department,

666-14   function, or activity in the last full fiscal year in which the

666-15   discontinuing unit operated the department, function, or activity.

666-16         SECTION 29.04.  Section 26.041(a), Tax Code, is amended to

666-17   conform to the terminology of Section 26.012(9), Tax Code, to read

666-18   as follows:

666-19         (a)  In the first year in which an additional sales and use

666-20   tax is required to be collected, the effective tax rate and

666-21   rollback tax rate for the unit are calculated according to the

666-22   following formulas:

666-24                    __________________________________________________  

 667-1                    (CURRENT TOTAL VALUE [LEVY] - NEW PROPERTY VALUE)

 667-2                              - SALES TAX GAIN RATE

 667-3   and

 667-5                         X 1.08) + CURRENT DEBT RATE - SALES TAX

 667-6                         GAIN RATE

 667-7   where "sales tax gain rate" means a number expressed in dollars per

 667-8   $100 of taxable value, calculated by dividing the revenue that will

 667-9   be generated by the additional sales and use tax in the following

667-10   year as calculated under Subsection (d) of this section by the

667-11   current total value.

667-12         SECTION 29.05.  Sections 26.043(a) and (b), Tax Code, are

667-13   amended to conform to Section 26.012, Tax Code, and to Section

667-14   26.04, Tax Code, as amended by Section 3, Chapter 947, Acts of the

667-15   70th Legislature, Regular Session, 1987, and reenacted by this Act,

667-16   and to correct a reference, to read as follows:

667-17         (a)  In the tax year in which a city has set an election on

667-18   the question of whether to impose a local sales and use tax under

667-19   Subchapter H, Chapter 453, Transportation Code [Section 8(a),

667-20   Article 1118z, Revised Statutes], the officer or employee

667-21   designated to make the calculations provided by Section 26.04 [of

667-22   this code] may not make those calculations until the outcome of the

667-23   election is determined.  If the election is determined in favor of

667-24   the imposition of the tax, the representative shall subtract from

 668-1   the city's rollback and effective tax rates the amount that, if

 668-2   applied to the city's current total value [total taxable value

 668-3   submitted to the governing body], would impose an amount equal to

 668-4   the amount of property taxes budgeted in the current tax year to

 668-5   pay for expenses related to mass transit services.

 668-6         (b)  In a tax year to which this section applies, a reference

 668-7   in this chapter [Section 26.04(d), 26.05, 26.06, or 26.07 of this

 668-8   code] to the city's effective or rollback tax rate refers to that

 668-9   rate as adjusted under this section.

668-10         SECTION 29.06.  Section 26.05(d), Tax Code, is amended to

668-11   conform to the other provisions of Chapter 26, Tax Code, defining

668-12   the rollback and effective tax rates for a taxing unit to read as

668-13   follows:

668-14         (d)  The governing body may not adopt a tax rate that exceeds

668-15   the lower of the rollback tax rate or 103 percent of the effective

668-16   tax rate calculated as provided by this chapter [Section 26.04 of

668-17   this code] until it has held a public hearing on the proposed

668-18   increase and has otherwise complied with Section 26.06 [of this

668-19   code].  The governing body of a taxing unit shall reduce a tax rate

668-20   set by law or by vote of the electorate to the lower of the

668-21   rollback tax rate or 103 percent of the effective tax rate and may

668-22   not adopt a higher rate unless it first complies with Section 26.06

668-23   [of this code].

668-24         SECTION 29.07.  Section 26.06(b), Tax Code, as amended by

 669-1   Section 1, Chapter 456, and Section 8, Chapter 947, Acts of the

 669-2   70th Legislature, Regular Session, 1987, is reenacted to read as

 669-3   follows:

 669-4         (b)  The notice of a public hearing may not be smaller than

 669-5   one-quarter page of a standard-size or a tabloid-size newspaper,

 669-6   and the headline on the notice must be in 18-point or larger type.

 669-7   The notice must:

 669-8               (1)  contain a statement in the following form:

 669-9             "NOTICE OF PUBLIC HEARING ON TAX RATE INCREASE

669-10         "The (name of the taxing unit) will hold a public hearing on

669-11   a proposal to increase total tax revenues from properties on the

669-12   tax roll in (the preceding year) by (percentage of increase over

669-13   the lower of the effective or rollback tax rates) percent.  Your

669-14   individual taxes may increase at a greater or lesser rate, or even

669-15   decrease, depending on the change in the taxable value of your

669-16   property in relation to the change in taxable value of all other

669-17   property.

669-18         "The public hearing will be held on (date and time) at

669-19   (meeting place).

669-20         "(Names of all members of the governing body, showing how

669-21   each voted on the proposal to consider the tax increase or, if one

669-22   or more were absent, or indicating the absences.)"; and

669-23               (2)  contain the following information:

669-24                     (A)  the unit's adopted tax rate for the

 670-1   preceding year and the proposed tax rate, expressed as an amount

 670-2   per $100;

 670-3                     (B)  the difference, expressed as an amount per

 670-4   $100 and as a percent increase or decrease, as applicable, in the

 670-5   proposed tax rate compared to the adopted tax rate for the

 670-6   preceding year;

 670-7                     (C)  the average appraised value of a residence

 670-8   homestead in the taxing unit in the preceding year and in the

 670-9   current year; the unit's homestead exemption, other than an

670-10   exemption available only to disabled persons or persons 65 years of

670-11   age or older, applicable to that appraised value in each of those

670-12   years; and the average taxable value of a residence homestead in

670-13   the unit in each of those years, disregarding any homestead

670-14   exemption available only to disabled persons or persons 65 years of

670-15   age or older;

670-16                     (D)  the amount of tax that would have been

670-17   imposed by the unit in the preceding year on a residence homestead

670-18   appraised at the average appraised value of a residence homestead

670-19   in that year, disregarding any homestead exemption available only

670-20   to disabled persons or persons 65 years of age or older;

670-21                     (E)  the amount of tax that would be imposed by

670-22   the unit in the current year on a residence homestead appraised at

670-23   the average appraised value of a residence homestead in the current

670-24   year, disregarding any homestead exemption available only to

 671-1   disabled persons or persons 65 years of age or older, if the

 671-2   proposed tax rate is adopted; and

 671-3                     (F)  the difference between the amounts of tax

 671-4   calculated under Paragraphs (D) and (E) [of this subdivision],

 671-5   expressed in dollars and cents and described as the annual increase

 671-6   or decrease, as applicable, in the tax to be imposed by the unit on

 671-7   the average residence homestead in the unit in the current year if

 671-8   the proposed tax rate is adopted.

 671-9         SECTION 29.08.  Sections 26.07(a), (d), and (e), Tax Code,

671-10   are amended to conform to the other provisions of Chapter 26, Tax

671-11   Code, defining the rollback tax rate for a taxing unit, to read as

671-12   follows:

671-13         (a)  If the governing body of a taxing unit other than a

671-14   school district adopts a tax rate that exceeds the rollback tax

671-15   rate calculated as provided by this chapter [Section 26.04 of this

671-16   code], the qualified voters of the taxing unit by petition may

671-17   require that an election be held to determine whether or not to

671-18   reduce the tax rate adopted for the current year to the rollback

671-19   tax rate calculated as provided by this chapter [Section 26.04 of

671-20   this code].

671-21         (d)  If the governing body finds that the petition is valid

671-22   (or fails to act within the time allowed), it shall order that an

671-23   election be held in the taxing unit on a date not less than 30 or

671-24   more than 90 days after the last day on which it could have acted

 672-1   to approve or disapprove the petition.  A state law requiring local

 672-2   elections to be held on a specified date does not apply to the

 672-3   election unless a specified date falls within the time permitted by

 672-4   this section.  At the election, the ballots shall be prepared to

 672-5   permit voting for or against the proposition:  "Reducing the tax

 672-6   rate in (name of taxing unit) for the current year from (the rate

 672-7   adopted) to (the rollback tax rate calculated as provided by this

 672-8   chapter [Section 26.04 of this code])."

 672-9         (e)  If a majority of the qualified voters voting on the

672-10   question in the election favor the proposition, the tax rate for

672-11   the taxing unit for the current year is the rollback tax rate

672-12   calculated as provided by this chapter [Section 26.04 of this

672-13   code]; otherwise, the tax rate for the current year is the one

672-14   adopted by the governing body.

672-15         SECTION 29.09.  Section 26.042, Tax Code, as amended by

672-16   Section 12, Chapter 11, Acts of the 70th Legislature, Regular

672-17   Session, 1987, is repealed in conformity with Section 5, Chapter

672-18   947, Acts of the 70th Legislature, Regular Session, 1987.

672-19         SECTION 29.10.  (a)  Section 111.006(a), Tax Code, is amended

672-20   to conform to Section 1, Chapter 175, Acts of the 74th Legislature,

672-21   Regular Session, 1995, and Section 4, Chapter 351, Acts of the 74th

672-22   Legislature, Regular Session, 1995, to read as follows:

672-23         (a)  The [Except as provided by Subsection (d), the]

672-24   following matter is confidential and may not be used publicly,

 673-1   opened to public inspection, or disclosed except as permitted under

 673-2   Subsection (b), [or] (d), or (e):

 673-3               (1)  a federal tax return or federal tax return

 673-4   information required to have been submitted to the comptroller with

 673-5   a state tax return or report; and

 673-6               (2)  all information secured, derived, or obtained by

 673-7   the comptroller or the attorney general during the course of an

 673-8   examination of the taxpayer's books, records, papers, officers, or

 673-9   employees, including an examination of the business affairs,

673-10   operations, source of income, profits, losses, or expenditures of

673-11   the taxpayer.

673-12         (b)  Subsection (d), Section 111.006, Tax Code, as added by

673-13   Section 4, Chapter 351, Acts of the 74th Legislature, Regular

673-14   Session, 1995, is relettered as Subsection (e), Section 111.006,

673-15   Tax Code.

673-16         SECTION 29.11.  Section 352.1033, Tax Code, is amended to

673-17   read as follows:

673-18         Sec. 352.1033.  USE OF REVENUE; COUNTIES BORDERING THE GULF

673-19   OF MEXICO.  (a)  The revenue from a tax imposed under this chapter

673-20   by a county that borders the Gulf of Mexico authorized to impose

673-21   the tax by Section 352.002(a)(6) may be used only to:

673-22               (1)  clean public beaches;

673-23               (2)  acquire, furnish, or maintain facilities,

673-24   including parks, that enhance public access to beaches;

 674-1               (3)  provide and maintain public restrooms on or

 674-2   adjacent to beaches or beach access facilities;

 674-3               (4)  provide and maintain litter containers on or

 674-4   adjacent to beaches or beach access facilities; and

 674-5               (5)  advertise and conduct solicitations and

 674-6   promotional programs to attract tourists and convention delegates

 674-7   or registrants to the county or its vicinity, any of which may be

 674-8   conducted by the county or through contracts with persons or

 674-9   organizations selected by the county.

674-10         (b)  A county that borders the Gulf of Mexico and that is

674-11   authorized to impose the tax by Section 352.002(a)(6) may use 50

674-12   percent or less of the revenue from the tax for the promotion of

674-13   tourism.

674-14          ARTICLE 30.  CHANGES RELATING TO TRANSPORTATION CODE

674-15         SECTION 30.01.  (a)  Section 5.001(a), Transportation Code,

674-16   is amended to conform to Section 12, Chapter 705 (S.B. No. 3), Acts

674-17   of the 74th Legislature, Regular Session, 1995, to read as follows:

674-18         (a)  Unless otherwise provided by this code or other law:

674-19               (1)  the duties and liabilities of a carrier in this

674-20   state and the remedies against the carrier are the same as

674-21   prescribed by the common law; and

674-22               (2)  a carrier for hire may not limit its common-law

674-23   liability, unless the limitation is in conspicuous writing in a

674-24   written arrangement for transportation, including a bill of lading

 675-1   or contract for transportation.

 675-2         (b)  Section 5.002, Transportation Code, is repealed to

 675-3   conform to Section 12, Chapter 705 (S.B. No. 3), Acts of the 74th

 675-4   Legislature, Regular Session, 1995.

 675-5         (c)  Section 5.003, Transportation Code, is amended to

 675-6   conform to Section 13, Chapter 705 (S.B. No. 3), Acts of the 74th

 675-7   Legislature, Regular Session, 1995, to read as follows:

 675-8         Sec. 5.003.  LIABILITY OF CARRIER OF [TRANSPORTING] HOUSEHOLD

 675-9   GOODS[, PERSONAL EFFECTS, OR USED OFFICE FURNITURE].  (a)  A

675-10   carrier of household goods, as defined by 49 U.S.C. Section 10102,

675-11   [for hire] is not required to accept for transportation household

675-12   goods[, personal effects, or used office furniture and equipment]

675-13   unless the shipper or owner of the property or the agent of the

675-14   shipper or owner declares in writing the reasonable value of the

675-15   property.

675-16         (b)  A carrier transporting property with a value declared

675-17   under Subsection (a) is not liable in damages for an amount more

675-18   than the declared value of the property lost, destroyed, or

675-19   damaged.

675-20         (c)  [The Railroad Commission of Texas shall establish

675-21   adequate rates to be charged by a carrier consistent with the

675-22   declared value of property under this section.  If the commission

675-23   fails to establish a rate, a carrier is authorized to collect

675-24   reasonable transportation charges consistent with the declared

 676-1   value of the property.]

 676-2         [(d)]  A shipper's declaration of value is not admissible

 676-3   evidence in a court action unless the carrier, when accepting the

 676-4   shipment, provides and maintains in an amount at least equal to the

 676-5   declared value of the property:

 676-6               (1)  insurance in a solvent company authorized to do

 676-7   business in this state; or

 676-8               (2)  bonds.

 676-9         (d) [(e)]  The security requirement of Subsection (c) [(d)]

676-10   does not apply to steam or electric railroads.

676-11         (d)  Sections 12 and 13, Chapter 705 (S.B. No. 3), Acts of

676-12   the 74th Legislature, Regular Session, 1995, are repealed.

676-13         SECTION 30.02.  (a)  Section 20.001, Transportation Code, as

676-14   added by Chapter 165, Acts of the 74th Legislature, Regular

676-15   Session, 1995, is repealed to conform to the repeal of Article

676-16   911h, Revised Statutes, the source law for that section, by Section

676-17   31(a)(7), Chapter 705 (S.B. No. 3), Acts of the 74th Legislature,

676-18   Regular Session, 1995.

676-19         (b)  Chapter 20, Transportation Code, is amended by adding a

676-20   new Section 20.001 to codify Article 911k, Revised Statutes, as

676-21   amended by Section 14, Chapter 705 (S.B. No. 3), Acts of the 74th

676-22   Legislature, Regular Session, 1995, to read as follows:

676-23         Sec. 20.001.  CERTAIN CARRIERS EXEMPT FROM GROSS RECEIPTS

676-24   TAXES.  A motor bus carrier or motor carrier transporting persons

 677-1   or property for hire is exempt from any occupation tax measured by

 677-2   gross receipts imposed by any law of this state.

 677-3         (c)  Article 911k, Revised Statutes, is repealed.

 677-4         SECTION 30.03.  (a)  Section 21.111(a), Transportation Code,

 677-5   is amended to conform to Section 1, Chapter 636 (H.B. No. 2180),

 677-6   Acts of the 74th Legislature, Regular Session, 1995, to read as

 677-7   follows:

 677-8         (a)  The commission or the commission's authorized

 677-9   representative shall hold a public hearing before approving any

677-10   financial assistance under this subchapter, except as provided by

677-11   Section 21.1115.

677-12         (b)  Subchapter C, Chapter 21, Transportation Code, is

677-13   amended to conform to Section 1, Chapter 636 (H.B. No. 2180), Acts

677-14   of the 74th Legislature, Regular Session, 1995, by adding Section

677-15   21.1115 to read as follows:

677-16         Sec. 21.1115.  EMERGENCY LOAN OR GRANT.  (a)  In an

677-17   emergency, the director or the director's designee may award a loan

677-18   or grant without holding a public hearing under rules adopted by

677-19   the commission.

677-20         (b)  Before awarding a contract under this section, the

677-21   director or the director's designee must certify in writing the

677-22   fact and nature of the emergency that requires the award of the

677-23   contract.

677-24         (c)  Not later than the fifth working day after the date a

 678-1   contract is awarded under this section, the director shall notify

 678-2   in writing each member of the commission of the details of the

 678-3   emergency and the award.

 678-4         (d)  In this section, "emergency" means a situation or

 678-5   condition at a general aviation airport that requires immediate

 678-6   attention because of an existing unsafe condition that should be of

 678-7   sufficient concern to require a notice to airmen under FAA Order

 678-8   7930.2E.

 678-9         (c)  Section 1, Chapter 636 (H.B. No. 2180), Acts of the 74th

678-10   Legislature, Regular Session, 1995, is repealed.

678-11         SECTION 30.04.  Section 24.021(a), Transportation Code, is

678-12   amended to correct a reference to read as follows:

678-13         (a)  A person commits an offense if the person takes off,

678-14   lands, or maneuvers an aircraft, whether heavier or lighter than

678-15   air, on a public highway, road, or street except:

678-16               (1)  when necessary to prevent serious injury to a

678-17   person or property;

678-18               (2)  during or within a reasonable time after an

678-19   emergency; or

678-20               (3)  as provided by Section 24.022 [25.022].

678-21         SECTION 30.05.  (a)  Section 25.004(b), Transportation Code,

678-22   is amended to conform to Section 1(16), Chapter 1058 (H.B. No.

678-23   3050), Acts of the 74th Legislature, Regular Session, 1995, to read

678-24   as follows:

 679-1         (b)  The application filed with the department must be

 679-2   accompanied by a filing fee of $200.  The department shall send

 679-3   each filing fee to the comptroller for deposit to the credit of the

 679-4   aviation trust fund account.

 679-5         (b)  Section 25.012, Transportation Code, is amended to

 679-6   conform to Section 1(16), Chapter 1058 (H.B. No. 3050), Acts of the

 679-7   74th Legislature, Regular Session, 1995, to read as follows:

 679-8         Sec. 25.012.  AVIATION TRUST FUND ACCOUNT; Private Donations;

 679-9   Disposition of Revenue.  (a)  The aviation trust fund account is an

679-10   account in the general revenue fund.

679-11         (b)  The department may accept donations from private

679-12   entities.  Money donated to the department shall be deposited to

679-13   the credit of the aviation trust fund account.

679-14         (c) [(b)]  The department may use money deposited to the

679-15   credit of the aviation trust fund account [revenue it receives

679-16   under this chapter] in the payment of administrative expenses and

679-17   in the performance of its functions related to aviation safety,

679-18   including the prevention of an obstruction to air navigation.

679-19         SECTION 30.06.  (a)  Section 51.002, Transportation Code, is

679-20   amended to conform to Section 1, Chapter 505 (H.B. No. 1536), Acts

679-21   of the 74th Legislature, Regular Session, 1995, by adding

679-22   Subdivision (5) to read as follows:

679-23               (5)  "Department" means the Texas Department of

679-24   Transportation.

 680-1         (b)  Chapter 51, Transportation Code, is amended to conform

 680-2   to Section 3, Chapter 505 (H.B. No. 1536), Acts of the 74th

 680-3   Legislature, Regular Session, 1995, by adding Sections

 680-4   51.009-51.011 to read as follows:

 680-5         Sec. 51.009.  BENEFICIAL USE OF DREDGE MATERIAL.  (a)  The

 680-6   commission, through the department, may enter into an agreement

 680-7   with the Department of the Army to participate in the cost of a

 680-8   project to beneficially use material dredged from the Gulf

 680-9   Intracoastal Waterway.

680-10         (b)  The commission by rule shall establish eligibility

680-11   criteria for a project to beneficially use the dredge material.

680-12         (c)  In this section and Sections 51.010 and 51.011,

680-13   beneficial use of dredge material means any productive and positive

680-14   use of dredge material and includes broad use categories such as

680-15   fish and wildlife habitat development, human recreation, and

680-16   industrial and commercial uses.

680-17         Sec. 51.010.  PROPERTY ACQUISITION.  The commission, through

680-18   the department, may acquire an interest in property required for a

680-19   project to beneficially use dredge material in the manner provided

680-20   by Section 51.005.

680-21         Sec. 51.011.  HEARING REQUIRED BEFORE PARTICIPATION IN

680-22   PROJECT.  (a)  Before the department agrees to participate in the

680-23   cost of a project to beneficially use dredge material that requires

680-24   the acquisition of an interest in property, the commission shall

 681-1   hold a public hearing on the desirability of the project.

 681-2         (b)  The commission shall publish notice of the date, time,

 681-3   and place of the hearing at least once a week for three successive

 681-4   weeks before the hearing in a newspaper of general circulation

 681-5   published in the county seat of each county in which the project is

 681-6   located.

 681-7         (c)  The department may agree to participate in the cost of

 681-8   the project if the commission determines, after the public hearing,

 681-9   that the project can be accomplished without unjustifiable waste of

681-10   publicly or privately owned natural resources or a permanent and

681-11   substantial adverse effect on the environment, wildlife, or

681-12   fisheries.

681-13         (c)  Sections 1-3, Chapter 505 (H.B. No. 1536), Acts of the

681-14   74th Legislature, Regular Session, 1995, are repealed.

681-15         SECTION 30.07.  (a)  Subchapter D, Chapter 201,

681-16   Transportation Code, is amended to codify Article 6673a-4, Revised

681-17   Statutes, as added by Section 1, Chapter 431 (S.B. No. 1470), Acts

681-18   of the 74th Legislature, Regular Session, 1995, by adding Section

681-19   201.205 to read as follows:

681-20         Sec. 201.205.  PROTECTION AND USE OF INTELLECTUAL PROPERTY

681-21   AND PUBLICATIONS.  (a)  The department may:

681-22               (1)  apply for, register, secure, hold, and protect

681-23   under the laws of the United States, any state, or any nation a

681-24   patent, copyright, trademark, or other evidence of protection or

 682-1   exclusivity issued in or for an idea, publication, or other

 682-2   original innovation fixed in a tangible medium, including:

 682-3                     (A)  a literary work;

 682-4                     (B)  a logo;

 682-5                     (C)  a service mark;

 682-6                     (D)  a study;

 682-7                     (E)  a map or planning document;

 682-8                     (F)  an engineering, architectural, or graphic

 682-9   design;

682-10                     (G)  a manual;

682-11                     (H)  automated systems software;

682-12                     (I)  an audiovisual work;

682-13                     (J)  a sound recording; or

682-14                     (K)  travel literature, including a pamphlet,

682-15   bulletin, book, map, periodical, or electronic information

682-16   published or produced under Section 3, Chapter 193, Acts of the

682-17   56th Legislature, Regular Session, 1959 (Article 6144e, Vernon's

682-18   Texas Civil Statutes);

682-19               (2)  enter into a nonexclusive license agreement with a

682-20   third party for the receipt of a fee, royalty, or other thing of

682-21   monetary or nonmonetary value;

682-22               (3)  waive or reduce the amount of a fee, royalty, or

682-23   other thing of monetary or nonmonetary value to be assessed if the

682-24   department determines that the waiver will:

 683-1                     (A)  further the goals and missions of the

 683-2   department; and

 683-3                     (B)  result in a net benefit to the state; and

 683-4               (4)  adopt and enforce rules necessary to implement

 683-5   this section.

 683-6         (b)  Money paid to the department under this section shall be

 683-7   deposited to the credit of the state highway fund.

 683-8         (b)  Article 6673a-4, Revised Statutes, as added by Section

 683-9   1, Chapter 431 (S.B. No. 1470), Acts of the 74th Legislature,

683-10   Regular Session, 1995, is repealed.

683-11         SECTION 30.08.  (a)  Subchapter H, Chapter 201,

683-12   Transportation Code, is amended to codify Article 6674v-8, Revised

683-13   Statutes, as added by Section 1, Chapter 153 (S.B. No. 1633), Acts

683-14   of the 74th Legislature, Regular Session, 1995, by adding Section

683-15   201.610 to read as follows:

683-16         Sec. 201.610.  APPROVAL BY COMMISSION OF BRIDGE OVER RIO

683-17   GRANDE.  (a)  A political subdivision or private entity authorized

683-18   to construct or finance the construction of a bridge over the Rio

683-19   Grande:

683-20               (1)  must obtain approval from the commission for the

683-21   construction of the bridge before requesting approval from the

683-22   United States under Subchapter IV, Chapter 11, Title 33, United

683-23   States Code; and

683-24               (2)  shall submit to the commission a report that

 684-1   details the feasibility, location, economic effect, and

 684-2   environmental impact of the bridge and any other information the

 684-3   commission by rule may require.

 684-4         (b)  To the maximum extent practicable, the department shall

 684-5   implement the approval process in the manner least burdensome to an

 684-6   applicant.

 684-7         (c)  In determining whether to approve construction of the

 684-8   bridge, the commission shall consider:

 684-9               (1)  the financial resources available to the political

684-10   subdivision or private entity for construction of the bridge;

684-11               (2)  whether the revenue to be generated by the bridge

684-12   is sufficient to finance the planning, design, construction,

684-13   operation, and maintenance of the bridge;

684-14               (3)  whether the construction of the bridge is

684-15   consistent with the transportation plan adopted by the state and,

684-16   if appropriate, by the metropolitan planning organization with

684-17   jurisdiction over the bridge;

684-18               (4)  the potential effect of the bridge on:

684-19                     (A)  the economy of the region in which the

684-20   bridge is to be located;

684-21                     (B)  the environment of the region in which the

684-22   bridge is to be located;

684-23                     (C)  traffic congestion and mobility; and

684-24                     (D)  the free flow of trade between the United

 685-1   Mexican States and this state; and

 685-2               (5)  commitments from the appropriate jurisdictions of

 685-3   the United Mexican States to provide adequate approach roadways to

 685-4   the bridge.

 685-5         (d)  In determining whether to approve the construction of

 685-6   the bridge, the commission shall solicit the advice of:

 685-7               (1)  the Department of Public Safety;

 685-8               (2)  the Texas Natural Resource Conservation

 685-9   Commission;

685-10               (3)  the Texas Historical Commission;

685-11               (4)  the Department of Agriculture;

685-12               (5)  the Texas Alcoholic Beverage Commission;

685-13               (6)  the Texas Department of Commerce; and

685-14               (7)  any other state agency the commission determines

685-15   is appropriate.

685-16         (e)  If the commission fails to make a determination before

685-17   the 121st day after the date the commission receives a request for

685-18   approval under Subsection (a), the request is considered approved.

685-19         (f)  The commission may adopt rules to administer this

685-20   section.

685-21         (b)  Article 6674v-8, Revised Statutes, as added by Section

685-22   1, Chapter 153 (S.B. No. 1633), Acts of the 74th Legislature,

685-23   Regular Session, 1995, is repealed.

685-24         SECTION 30.09.  (a)  Subchapter J, Chapter 201,

 686-1   Transportation Code, is amended to codify Article 6674o-2, Revised

 686-2   Statutes, as added by  Section 9, Chapter 624 (H.B. No. 1547), Acts

 686-3   of the 74th Legislature, Regular Session, 1995, by adding Section

 686-4   201.8035 to read as follows:

 686-5         Sec. 201.8035.  INSPECTION OF COUNTY AND MUNICIPAL BRIDGES.

 686-6   (a)  If the department inspects a bridge under the jurisdiction of

 686-7   a county or a municipality and determines that the bridge qualifies

 686-8   for a lower load rating under 23 C.F.R. Part 650, Subpart C, than

 686-9   is currently permitted, the department shall notify the

686-10   commissioners court of the county or the governing body of the

686-11   municipality.

686-12         (b)  A commissioners court or governing body that is notified

686-13   under Subsection (a) shall post notices on the road or highway

686-14   approaching the bridge that state the maximum load permitted on the

686-15   bridge.  The notices must be posted at locations that enable

686-16   affected drivers to detour to avoid the restricted bridge.

686-17         (b)  Article 6674o-2, Revised Statutes, as added by Section

686-18   9, Chapter 624 (H.B. No. 1547), Acts of the 74th Legislature,

686-19   Regular Session, 1995, is repealed.

686-20         SECTION 30.10.  (a)  Section 202.052, Transportation Code, is

686-21   amended to conform to Section 1, Chapter 283 (S.B. No. 831), Acts

686-22   of the 74th Legislature, Regular Session, 1995, by amending

686-23   Subsection (d) and adding Subsection (e) to read as follows:

686-24         (d)  The department may authorize exceptions to the charges

 687-1   under Subsection (c) for:

 687-2               (1)  the lease of a highway asset to a public utility

 687-3   provider;

 687-4               (2)  a lease [and] for a social, environmental, or

 687-5   economic mitigation purpose; or

 687-6               (3)  a lease to an institution of higher education for

 687-7   a purpose of the institution.

 687-8         (e)  In this section, "institution of higher education" has

 687-9   the meaning assigned by Section 61.003, Education Code.

687-10         (b)  Section 1, Chapter 283 (S.B. No. 831), Acts of the 74th

687-11   Legislature, Regular Session, 1995, is repealed.

687-12         SECTION 30.11.  (a)  Section 202.082, Transportation Code, is

687-13   amended to conform to Section 1, Chapter 115 (S.B. No. 688), Acts

687-14   of the 74th Legislature, Regular Session, 1995, to read as follows:

687-15         Sec. 202.082.  DISPOSAL [OWNERSHIP AND USE] OF ASPHALT.

687-16   (a)  The department [owns and] shall dispose [retain ownership] of

687-17   all reclaimed asphalt pavement from a road in the state highway

687-18   system in the most cost-effective and environmentally sensitive

687-19   manner the department considers appropriate, giving priority to

687-20   political subdivisions of this state for the maintenance,

687-21   development, and construction of public works projects.

687-22         (b)  Disposal [The department shall maximize the use] of

687-23   [the] reclaimed asphalt pavement under this section is not subject

687-24   to:

 688-1               (1)  Chapter 2175, Government Code; or

 688-2               (2)  the statutory or regulatory authority of the

 688-3   General Services Commission.

 688-4         [(c)  The department shall, when feasible, remove and recycle

 688-5   hot mix asphalt from any road in the state highway system being

 688-6   repaved.]

 688-7         [(d)  The department may transfer ownership of reclaimed

 688-8   asphalt pavement to another governmental entity for use on a road.]

 688-9         (b)  Sections 202.083, 202.084, and 202.085, Transportation

688-10   Code, are repealed to conform to the repeal of the law from which

688-11   those sections were derived by Section 1, Chapter 115 (S.B. No.

688-12   688), Acts of the 74th Legislature, Regular Session, 1995.

688-13         (c)  Section 1, Chapter 115 (S.B. No. 688), Acts of the 74th

688-14   Legislature, Regular Session, 1995, is repealed.

688-15         SECTION 30.12.  Section 222.031, Transportation Code, is

688-16   amended to more closely conform to the law from which that section

688-17   was derived to read as follows:

688-18         Sec. 222.031.  Use of Federal Aid for Road Construction.

688-19   Money appropriated by the United States for public road

688-20   construction in this state may be spent only by and under the

688-21   supervision of the department.

688-22         SECTION 30.13.  (a)  Sections 223.002(c) and (d),

688-23   Transportation Code, are amended to conform to Section 1, Chapter

688-24   396 (H.B. No. 2176), Acts of the 74th Legislature, Regular Session,

 689-1   1995, to read as follows:

 689-2         (c)  Instead of the notice required by Subsection (b), if the

 689-3   department estimates that the contract involves an amount less than

 689-4   $300,000 [$100,000], notice may be published in two successive

 689-5   issues of a newspaper published in the county in which the

 689-6   improvement is to be made.

 689-7         (d)  If a newspaper is not published in the county in which

 689-8   the improvement is to be made, notice shall be published in a

 689-9   newspaper published in the county:

689-10               (1)  nearest the county seat of the county in which the

689-11   improvement is to be made; and

689-12               (2)  in which a newspaper is published.

689-13         (b)  Section 223.003, Transportation Code, is amended to

689-14   conform to Section 1, Chapter 396 (H.B. No. 2176), Acts of the 74th

689-15   Legislature, Regular Session, 1995, by amending Subsections (b) and

689-16   (c) and adding Subsection (d) to read as follows:

689-17         (b)  The department [commission] shall mail the notice to

689-18   each person on that mailing list.

689-19         (c)  The department [commission] may require each applicant

689-20   to pay an annual subscription fee set by the department in an

689-21   amount not to exceed the average annual [deposit with the

689-22   commission not more than $25 a year to cover] costs of mailing

689-23   notices to the applicant.

689-24         (d)  The department shall deposit money received under this

 690-1   section to the credit of the state highway fund.

 690-2         (c)  Sections 223.004(a), (c), and (d), Transportation Code,

 690-3   are amended to conform to Section 2, Chapter 396 (H.B. No. 2176),

 690-4   Acts of the 74th Legislature, Regular Session, 1995, to read as

 690-5   follows:

 690-6         (a)  Except as provided by Section 223.005, a bid submitted

 690-7   under this subchapter must be sealed and filed with the director or

 690-8   the director's designee in Austin and shall be opened at a public

 690-9   meeting by the director or the director's designee [hearing of the

690-10   commission].

690-11         (c)  [A copy of each bid shall be filed with the county in

690-12   which the improvement is to be made.]

690-13         [(d)]  The commission by rule may prescribe conditions under

690-14   which a bid may be rejected by the department [may reject any or

690-15   all bids].

690-16         (d)  Section 223.005, Transportation Code, is amended to

690-17   conform to Section 2, Chapter 396 (H.B. No. 2176), Acts of the 74th

690-18   Legislature, Regular Session, 1995, to read as follows:

690-19         Sec. 223.005.  BIDS ON CONTRACTS INVOLVING LESS THAN $300,000

690-20   [$100,000].  (a)  The commission by rule may allow bids [Bids] on a

690-21   contract estimated by the department to involve [involving] an

690-22   amount less than $300,000 to [$100,000 may, in the commission's

690-23   discretion,] be filed with [received at a public hearing by] the

690-24   district engineer at the headquarters for the district in which the

 691-1   improvement is to be made and opened and read at a public meeting

 691-2   held by the district engineer or the district engineer's designee.

 691-3         (b)  Except as provided by Subsection (d), all [All] bids

 691-4   received under this section and not rejected by the department

 691-5   shall be tabulated and forwarded to the commission and may be

 691-6   accepted or rejected by the commission.

 691-7         (c)  If the bids are accepted, the commission shall award the

 691-8   contract to the lowest bidder, subject to Section 223.045.

 691-9         (d)  The commission may delegate to the director or the

691-10   director's designee the right to:

691-11               (1)  accept or reject bids received, subject to Section

691-12   223.045; and

691-13               (2)  award a contract to the lowest bidder [shall adopt

691-14   rules governing bids received by a district engineer.  Rules

691-15   adopted by the commission for bids received in Austin by the

691-16   commission do not apply to bidders submitting bids to district

691-17   engineers].

691-18         (e)  Section 223.007, Transportation Code, is amended to

691-19   conform to Sections 3 and 4, Chapter 396 (H.B. No. 2176), Acts of

691-20   the 74th Legislature, Regular Session, 1995, by amending Subsection

691-21   (c) and adding Subsection (d) to read as follows:

691-22         (c)  A contract must be:

691-23               (1)  made in the name of the state;

691-24               (2)  signed by the director or the director's designee;

 692-1               (3)  approved by at least two members of the commission

 692-2   or a designee under Section 2103.064(a), Government Code; and

 692-3               (4)  signed by the successful bidder.

 692-4         (d)  The commission may delegate its authority under

 692-5   Subsections (a) and (b) to the director, who may delegate the

 692-6   delegated authority to an employee of the department who holds the

 692-7   rank of division director or higher.

 692-8         (f)  Sections 1-4, Chapter 396 (H.B. No. 2176), Acts of the

 692-9   74th Legislature, Regular Session, 1995, are repealed.

692-10         SECTION 30.14.  (a)  Subchapter A, Chapter 223,

692-11   Transportation Code, is amended to conform to Section 1, Chapter

692-12   232 (S.B. No. 532), Acts of the 74th Legislature, Regular Session,

692-13   1995, by adding Section 223.011 to read as follows:

692-14         Sec. 223.011.  PARTIAL PAYMENT EXCEPTION:  MAINTENANCE AND

692-15   PRECONSTRUCTION CONTRACTS.  The limitation on partial payments

692-16   provided by Section 223.009 and the retainage requirement under

692-17   Section 223.010(a) do not apply to a contract for:

692-18               (1)  maintenance; or

692-19               (2)  the making of all necessary plans and surveys

692-20   preliminary to construction, reconstruction, or maintenance.

692-21         (b)  Section 1, Chapter 232 (S.B. No. 532), Acts of the 74th

692-22   Legislature, Regular Session, 1995, is repealed.

692-23         SECTION 30.15.  (a)  Chapter 223, Transportation Code, is

692-24   amended to codify Article 6674i-5, Revised Statutes, as added by

 693-1   Section 1, Chapter 780 (S.B. No. 1058), Acts of the 74th

 693-2   Legislature, Regular Session, 1995, by adding Subchapter D to read

 693-3   as follows:

 693-4    SUBCHAPTER D.  CONTRACTS FOR ENVIRONMENTAL OR CULTURAL ASSESSMENT

 693-5         Sec. 223.151.  APPLICABILITY.  This subchapter:

 693-6               (1)  applies to services of a technical expert,

 693-7   including an archeologist, biologist, geologist, or historian, to

 693-8   conduct an environmental or cultural assessment required by state

 693-9   or federal law for a transportation project under the authority or

693-10   jurisdiction of the department; and

693-11               (2)  does not apply to services defined as engineering

693-12   by the State Board of Registration for Professional Engineers under

693-13   The Texas Engineering Practice Act (Article 3271a, Vernon's Texas

693-14   Civil Statutes).

693-15         Sec. 223.152.  DETERMINATION BY DEPARTMENT.  The department

693-16   may use competitive sealed proposals to obtain services under this

693-17   subchapter if the department determines that competitive sealed

693-18   bidding or informal competitive bidding is:

693-19               (1)  not practical; or

693-20               (2)  disadvantageous to the state.

693-21         Sec. 223.153.  SOLICITATION OF PROPOSALS.  The department

693-22   shall solicit proposals under this subchapter using the procedure

693-23   by which the department procures services under Subchapter A,

693-24   Chapter 2254, Government Code.

 694-1         Sec. 223.154.  OPENING OF PROPOSALS; DISCLOSURE OF

 694-2   INFORMATION.  (a)  The department:

 694-3               (1)  shall open each proposal received under this

 694-4   subchapter so as to avoid disclosure of contents to competing

 694-5   offerors during the process of negotiation; and

 694-6               (2)  may not disclose any information to an offeror

 694-7   that is derived from a proposal received from another offeror.

 694-8         (b)  After the award of a contract under this subchapter,

 694-9   each proposal submitted to the department is open for public

694-10   inspection, except as provided by Chapter 552, Government Code.

694-11         Sec. 223.155.  DISCUSSIONS WITH OFFERORS.  (a)  As provided

694-12   in a request for proposals and under rules adopted by the

694-13   commission, the department may discuss an acceptable or potentially

694-14   acceptable proposal with the offeror to assess that offeror's

694-15   ability to meet each requirement of the solicitation.

694-16         (b)  To obtain the best final offer, before the department

694-17   awards a contract under this subchapter, the department may permit

694-18   an offeror to revise the offeror's proposal.

694-19         (c)  The department shall provide each offeror an equal

694-20   opportunity to discuss and revise the offeror's proposal.

694-21         Sec. 223.156.  AWARD OF CONTRACT.  (a)  Except as provided by

694-22   Subsection (c), the department shall make a written award of a

694-23   contract under this subchapter to the offeror whose proposal is the

694-24   most advantageous to the state, considering price and the

 695-1   evaluation factors in the request for proposals.

 695-2         (b)  The contract file must state in writing the basis on

 695-3   which the award is made.

 695-4         (c)  If the department finds that none of the proposals is

 695-5   acceptable, the department shall reject all proposals.

 695-6         Sec. 223.157.  RULES.  The department may adopt rules to

 695-7   implement this subchapter.

 695-8         (b)  Article 6674i-5, Revised Statutes, as added by Section

 695-9   1, Chapter 780 (S.B. No. 1058), Acts of the 74th Legislature,

695-10   Regular Session, 1995, is repealed.

695-11         SECTION 30.16.  (a)  Subchapter B, Chapter 225,

695-12   Transportation Code, is amended to conform to Chapters 13 (S.B. No.

695-13   304), 14 (S.B. No. 318), 447 (H.B. No. 1544), 530 (S.B.  No. 1129),

695-14   546 (S.B. No. 1701), and 569 (S.B. No. 443), Acts of the 74th

695-15   Legislature, Regular Session, 1995 (Articles 6673e-11, 6673e-12,

695-16   6673e-13, 6673e-15, 6673e-16, and 6673e-14, Vernon's Texas Civil

695-17   Statutes), by adding Sections 225.028-225.033 to read as follows:

695-18         Sec. 225.028.  PEARL HARBOR MEMORIAL HIGHWAY.  (a)  The part

695-19   of U.S. Highway 290 between Johnson City and Interstate Highway 10

695-20   is the Pearl Harbor Memorial Highway.

695-21         (b)  The department shall design and construct markers

695-22   indicating the highway number, the designation as the Pearl Harbor

695-23   Memorial Highway, and any other appropriate information.

695-24         (c)  The department shall erect a marker at each end of the

 696-1   memorial highway and at appropriate intermediate sites along the

 696-2   highway.

 696-3         Sec. 225.029.  PRESIDENTIAL CORRIDOR.  (a)  In recognition of

 696-4   the connection between the Lyndon Baines Johnson Library in Austin

 696-5   and the George Herbert Walker Bush Library in College Station, the

 696-6   parts of U.S. Highway 290 from Interstate Highway 35 to State

 696-7   Highway 21 and State Highway 21 from U.S. Highway 290 to State

 696-8   Highway 6 are the Presidential Corridor.  The designation is in

 696-9   addition to any other designation.

696-10         (b)  The department shall design and construct markers

696-11   indicating the highway number, the designation as the Presidential

696-12   Corridor, and any other appropriate information.

696-13         (c)  The department shall erect a marker at each end of the

696-14   corridor and at appropriate intermediate sites along the corridor.

696-15         Sec. 225.030.  HENRY G. "BUD" LEHMAN HIGHWAY.  (a)  The part

696-16   of U.S. Highway 290 in Lee County is the Henry G. "Bud" Lehman

696-17   Highway.

696-18         (b)  The department shall design and construct markers

696-19   indicating the highway number, the designation as the Henry G.

696-20   "Bud" Lehman Highway, and any other appropriate information.

696-21         (c)  The department shall erect a marker at each end of the

696-22   highway and at appropriate intermediate sites along the highway.

696-23         Sec. 225.031.  RAY C. STOKER, JR., HIGHWAY.  (a)  The parts

696-24   of Farm-to-Market Road 503 from Valera to Farm-to-Market Road 1929

 697-1   and Farm-to-Market Road 1929 from Farm-to-Market Road 503 to U.S.

 697-2   Highway 83 are the Ray C. Stoker, Jr., Highway.

 697-3         (b)  The department shall design and construct markers

 697-4   indicating the highway number, the designation as the Ray C.

 697-5   Stoker, Jr., Highway, and any other appropriate information.

 697-6         (c)  The department shall erect a marker at each end of the

 697-7   highway and at appropriate intermediate sites along the highway.

 697-8         Sec. 225.032.  S. M. WRIGHT FREEWAY.  (a)  In recognition of

 697-9   S. M. Wright's outstanding spiritual and civic contributions to the

697-10   city of Dallas and the state, the parts of U.S. Highway 175 in

697-11   Dallas County between Interstate Highway 45 and State Highway 310

697-12   and State Highway 310 between U.S. Highway 175 and State Loop 12

697-13   are the S. M.  Wright Freeway.  The designation is in addition to

697-14   any other designation.

697-15         (b)  The department shall design and construct memorial

697-16   markers indicating the highway number, the designation as the S. M.

697-17   Wright Freeway, and any other appropriate information.

697-18         (c)  The department shall erect a marker at each end of the

697-19   freeway and at appropriate intermediate sites along the freeway.

697-20         Sec. 225.033.  PRESIDENT GEORGE BUSH HIGHWAY.  (a)  The part

697-21   of U.S. Highway 190 in Dallas, Collin, and Denton counties is the

697-22   President George Bush Highway.  The designation is in addition to

697-23   any other designation.

697-24         (b)  The department shall design and construct markers

 698-1   indicating the highway number, the designation as the President

 698-2   George Bush Highway, and any other appropriate information.

 698-3         (c)  The department shall erect a marker at each end of the

 698-4   highway and at appropriate intermediate sites along the highway.

 698-5         (d)  If the Texas Turnpike Authority assumes jurisdiction

 698-6   over the highway, the authority has the powers and shall perform

 698-7   the duties of the department under this section and Section

 698-8   225.021.

 698-9         (b)  Chapters 13 (S.B. No. 304), 14 (S.B. No. 318), 447 (H.B.

698-10   No. 1544), 530 (S.B. No. 1129), 546 (S.B. No. 1701), and 569 (S.B.

698-11   No. 443), Acts of the 74th Legislature, Regular Session, 1995

698-12   (Articles 6673e-11, 6673e-12, 6673e-13, 6673e-15, 6673e-16, and

698-13   6673e-14, Vernon's Texas Civil Statutes), are repealed.

698-14         SECTION 30.17.  (a)  Subchapter A, Chapter 256,

698-15   Transportation Code, is amended to conform to Section 1, Chapter

698-16   568 (S.B. No. 437), Acts of the 74th Legislature, Regular Session,

698-17   1995, by adding Section 256.009 to read as follows:

698-18         Sec. 256.009.  REPORT TO COMPTROLLER.  (a)  Not later than

698-19   January 30 of each year, the county auditor or, if the county does

698-20   not have a county auditor, the official having the duties of the

698-21   county auditor shall file a report with the comptroller stating the

698-22   total amount of expenditures for county road and bridge

698-23   construction, maintenance, rehabilitation, right-of-way

698-24   acquisition, and utility construction and other appropriate road

 699-1   expenditures of county funds in the preceding calendar year that

 699-2   are required by the constitution or other law to be spent on public

 699-3   roads or highways.  The report must be in a form prescribed by the

 699-4   comptroller.

 699-5         (b)  The comptroller may distribute money under Section

 699-6   256.002(a) to a county only if the most recent report required by

 699-7   Subsection (a) has been filed.

 699-8         (b)  Section 1, Chapter 568 (S.B. No. 437), Acts of the 74th

 699-9   Legislature, Regular Session, 1995, is repealed.

699-10         SECTION 30.18.  (a)  Chapter 284, Transportation Code, is

699-11   amended to conform to Section 1, Chapter 960 (H.B. No. 3143), Acts

699-12   of the 74th Legislature, Regular Session, 1995, by adding

699-13   Subchapter D to read as follows:

699-14            SUBCHAPTER D.  UNAUTHORIZED USE OF TOLL ROADS IN

699-15                            CERTAIN COUNTIES

699-16         Sec. 284.201.  APPLICABILITY OF SUBCHAPTER.  This subchapter

699-17   applies only to a county with a population of more than 2.2

699-18   million.

699-19         Sec. 284.202.  ORDER PROHIBITING OPERATION OF MOTOR VEHICLE

699-20   ON TOLL PROJECT.  (a)  The commissioners court of a county by order

699-21   may prohibit the operation of a motor vehicle on a county project

699-22   described by Section 284.001(3) if:

699-23               (1)  an operator of the vehicle has failed to pay a

699-24   required toll or charge; and

 700-1               (2)  the county provides the registered owner of the

 700-2   vehicle with notice of the unpaid toll or charge.

 700-3         (b)  The notice required by Subsection (a)(2) must be mailed

 700-4   to the registered owner of the vehicle at least 10 days before the

 700-5   date the prohibition takes effect.

 700-6         Sec. 284.203.  VIOLATION OF ORDER; OFFENSE.  (a)  A person

 700-7   commits an offense if the person operates a motor vehicle or causes

 700-8   or allows the operation of a motor vehicle in violation of an order

 700-9   adopted under Section 284.202(a).

700-10         (b)  An offense under this section is a Class C misdemeanor.

700-11         Sec. 284.204.  ADMINISTRATIVE ADJUDICATION HEARING PROCEDURE.

700-12   (a)  The commissioners court of a county may adopt an

700-13   administrative adjudication hearing procedure for a person who is

700-14   suspected of having violated an order adopted under Section

700-15   284.202(a) on at least two separate occasions within a 12-month

700-16   period in connection with a toll to be paid by electronic means.

700-17         (b)  A hearing procedure adopted under Subsection (a) must

700-18   provide:

700-19               (1)  a period for a person charged with violating the

700-20   order:

700-21                     (A)  to pay the toll or charge plus

700-22   administrative costs; or

700-23                     (B)  to request a hearing;

700-24               (2)  for appointment of one or more hearing officers

 701-1   with authority to administer oaths and issue orders compelling the

 701-2   attendance of witnesses and the production of documents; and

 701-3               (3)  for the amount and disposition of civil fines,

 701-4   costs, and fees.

 701-5         (c)  An order issued under Subsection (b)(2) may be enforced

 701-6   by a justice of the peace.

 701-7         Sec. 284.205.  CITATION OR SUMMONS.  (a)  A citation or

 701-8   summons issued under this subchapter must:

 701-9               (1)  inform the recipient of the time and place of the

701-10   hearing; and

701-11               (2)  notify the person charged with a violation that

701-12   the person has the right of a hearing without delay.

701-13         (b)  The original or any copy of the summons or citation is a

701-14   record kept in the ordinary course of business of the county and is

701-15   rebuttable proof of the facts it contains.

701-16         Sec. 284.206.  ADMINISTRATIVE HEARING:  PRESUMPTION; EVIDENCE

701-17   OF OWNERSHIP.  In an administrative adjudication hearing under this

701-18   subchapter it is presumed that:

701-19               (1)  the registered owner of the motor vehicle that is

701-20   the subject of the hearing is the person who operated or allowed

701-21   another person to operate the motor vehicle in violation of the

701-22   order; and

701-23               (2)  a computer record of the department of the

701-24   registered vehicle owner is prima facie evidence of its contents.

 702-1         Sec. 284.207.  ATTENDANCE ON HEARING.  (a)  The peace officer

 702-2   or toll road agent who alleges a violation is not required to

 702-3   attend the hearing.

 702-4         (b)  The failure of a person charged with an offense to

 702-5   appear at the hearing is considered an admission of liability for

 702-6   the violation.

 702-7         Sec. 284.208.  DECISION OF HEARING OFFICER.  (a)  The hearing

 702-8   officer shall issue a decision stating:

 702-9               (1)  whether the person charged is liable for a

702-10   violation of the order; and

702-11               (2)  the amount of the fine and costs to be assessed

702-12   against the person.

702-13         (b)  The hearing officer shall file the decision with the

702-14   county clerk.

702-15         (c)  A decision of a hearing officer filed under Subsection

702-16   (b) must be kept in a separate index and file.  The decision may be

702-17   recorded using a computer printout, microfilm, microfiche, or a

702-18   similar data processing technique.

702-19         Sec. 284.209.  ENFORCEMENT OF DECISION.  A decision issued

702-20   under Section 284.208(a) may be enforced by:

702-21               (1)  placing a device that prohibits movement of a

702-22   motor vehicle on the vehicle that is the subject of the decision;

702-23               (2)  imposing an additional fine if the fine for the

702-24   offense is not paid within a specified time; or

 703-1               (3)  refusing to allow the registration of the vehicle.

 703-2         Sec. 284.210.  APPEAL OF HEARING OFFICER DECISION.  (a)  A

 703-3   person determined by a hearing officer to be in violation of an

 703-4   order may appeal the determination to a county court at law.

 703-5         (b)  To appeal, the person must file a petition with the

 703-6   court not later than the 30th day after the date the hearing

 703-7   officer's decision is filed with the county clerk.  The petition

 703-8   must be accompanied by payment of the costs required by law for the

 703-9   court.

703-10         Sec. 284.211.  HEARING ON APPEAL.  The court in which an

703-11   appeal petition is filed shall:

703-12               (1)  schedule a hearing; and

703-13               (2)  notify all parties of the date, time, and place of

703-14   the hearing.

703-15         Sec. 284.212.  EFFECT OF APPEAL.  Service of notice of appeal

703-16   does not stay the enforcement and collection of the decision of the

703-17   hearing officer unless the person who files the appeal posts a bond

703-18   with an agency designated by the county to accept payment for a

703-19   violation.

703-20         (b)  Section 1, Chapter 960 (H.B. No. 3143), Acts of the 74th

703-21   Legislature, Regular Session, 1995, is repealed.

703-22         SECTION 30.19.  (a)  Section 361.055, Transportation Code, is

703-23   amended to conform to Section 2, Chapter 148 (S.B. No. 927), Acts

703-24   of the 74th Legislature, Regular Session, 1995, to read as follows:

 704-1         Sec. 361.055.  SUCCESSOR AGENCY TO AUTHORITY.  The following

 704-2   are successor agencies to the authority for purposes of Section

 704-3   52-b, Article III, Texas Constitution:

 704-4               (1)  a county, municipality, or local government

 704-5   corporation that leases, buys, or receives a turnpike project under

 704-6   Subchapter H;

 704-7               (2)  a county with a population of more than 1.5

 704-8   million that constructs a toll road, toll bridge, or turnpike

 704-9   project;

704-10               (3)  a local government corporation serving a county

704-11   with a population of more than 1.5 million that constructs a toll

704-12   road, toll bridge, or turnpike project; and

704-13               (4)  an adjacent county in a joint turnpike authority

704-14   with a county with a population of more than 1.5 million that

704-15   constructs a toll road, toll bridge, or turnpike project.

704-16         (b)  Section 361.251, Transportation Code, is amended to

704-17   conform to Section 16, Chapter 705 (S.B. No. 3), Acts of the 74th

704-18   Legislature, Regular Session, 1995, to read as follows:

704-19         Sec. 361.251.  [OPERATION OF MOTOR VEHICLE FOR COMPENSATION

704-20   ON] TURNPIKE PROJECT A PUBLIC HIGHWAY.  A turnpike project is a

704-21   public highway [under Chapters 801 and 802.  A motor bus company,

704-22   common carrier motor carrier, specialized motor carrier, contract

704-23   carrier, or other motor vehicle operation for compensation may not

704-24   be conducted on the turnpike project except under Chapter 270, Acts

 705-1   of the 40th Legislature, Regular Session, 1927 (Article 911a,

 705-2   Vernon's Texas Civil Statutes), and Chapter 314, Acts of the 41st

 705-3   Legislature, Regular Session, 1927 (Article 911b, Vernon's Texas

 705-4   Civil Statutes)].

 705-5         (c)  Section 361.281, Transportation Code, is amended to

 705-6   conform to Section 1, Chapter 148 (S.B. No. 927), Acts of the 74th

 705-7   Legislature, Regular Session, 1995, to read as follows:

 705-8         Sec. 361.281.  APPLICABILITY OF SUBCHAPTER.  This subchapter

 705-9   applies only to:

705-10               (1)  a county with a population of more than 1.5

705-11   million;

705-12               (2)  a local government corporation serving a county

705-13   with a population of more than 1.5 million; [or]

705-14               (3)  an adjacent county in a joint turnpike authority

705-15   with a county with a population of more than 1.5 million; or

705-16               (4)  a municipality with a population of more than

705-17   120,000 that is adjacent to the United Mexican States.

705-18         (d)  Section 361.282, Transportation Code, is amended to

705-19   conform to Section 1, Chapter 148 (S.B. No. 927), Acts of the 74th

705-20   Legislature, Regular Session, 1995, to read as follows:

705-21         Sec. 361.282.  LEASE, SALE, OR CONVEYANCE OF TURNPIKE

705-22   PROJECT.  (a)  The authority may lease, sell, or convey in another

705-23   manner a turnpike project to a county, a municipality, or a local

705-24   government corporation created under Chapter 431.

 706-1         (b)  Except as provided by Subsection (c), the [The]

 706-2   authority, the commission, and the governor must approve the

 706-3   transfer of the turnpike project as being in the best interests of

 706-4   the state and the county.

 706-5         (c)  If the lease, sale, or conveyance is to a municipality,

 706-6   the authority, the commission, and the governor must approve the

 706-7   transfer of the turnpike project as being in the best interests of

 706-8   the state and the municipality.

 706-9         (e)  Sections 1 and 2, Chapter 148 (S.B. No. 927), and

706-10   Section 16, Chapter 705 (S.B. No. 3), Acts of the 74th Legislature,

706-11   Regular Session, 1995, are repealed.

706-12         SECTION 30.20.  Section 362.003(c), Transportation Code, is

706-13   amended to conform to Chapter 165 (S.B. No. 971), Acts of the 74th

706-14   Legislature, Regular Session, 1995, to read as follows:

706-15         (c)  This chapter is cumulative of all laws affecting the

706-16   authority, and the authority is authorized to enter into all

706-17   agreements necessary or convenient to effectuate the purposes of

706-18   this chapter.  Particularly, but not by way of limitation, the

706-19   provisions of [Chapter 410, Acts of the 53rd Legislature, Regular

706-20   Session, 1953 (Article 6674v, Vernon's Texas Civil Statutes),]

706-21   Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k,

706-22   Vernon's Texas Civil Statutes), the Bond Procedures Act of 1981

706-23   (Article 717k-6, Vernon's Texas Civil Statutes), [and] Chapter 656,

706-24   Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,

 707-1   Vernon's Texas Civil Statutes), and Chapter 361 are applicable to

 707-2   the bonds issued by the authority under this chapter.

 707-3         SECTION 30.21.  Subchapter A, Chapter 391, Transportation

 707-4   Code, is amended to conform to Section 1(18), Chapter 1058 (H.B.

 707-5   No. 3050), Acts of the 74th Legislature, Regular Session, 1995, by

 707-6   adding Section 391.004 to read as follows:

 707-7         Sec. 391.004.  TEXAS HIGHWAY BEAUTIFICATION FUND ACCOUNT.

 707-8   The Texas highway beautification fund account is an account in the

 707-9   general revenue fund.  Money the commission receives under this

707-10   chapter shall be deposited to the credit of the Texas highway

707-11   beautification fund account.  The commission shall use money in the

707-12   Texas highway beautification fund account to administer this

707-13   chapter.

707-14         SECTION 30.22.  (a)  Sections 391.001 and 391.091,

707-15   Transportation Code, are amended to conform to Section 1, Chapter

707-16   284 (S.B. No. 882), Acts of the 74th Legislature, Regular Session,

707-17   1995, to read as follows:

707-18         Sec. 391.001.  DEFINITIONS.  In this chapter:

707-19               (1)  "Automobile graveyard" means an establishment that

707-20   is maintained, used, or operated for storing, buying, or selling

707-21   wrecked, scrapped, ruined, or dismantled motor vehicles or motor

707-22   vehicle parts.

707-23               (2)  "Eligible highway" means a highway that:

707-24                     (A)  is located outside an urbanized area with a

 708-1   population of 50,000 or more; and

 708-2                     (B)  qualifies for a maximum speed limit of 65

 708-3   miles per hour under 23 U.S.C. Section 154 or, if that law is

 708-4   repealed, qualified for a maximum speed limit of 65 miles per hour

 708-5   on the day before the effective date of the repeal.

 708-6               (3)  "Eligible urban highway" means an interstate

 708-7   highway that is located inside an urbanized area with a population

 708-8   of 200,000 or more.

 708-9               (4)  "Information logo sign" means a specific

708-10   information logo sign or a major shopping area guide sign.

708-11               (5)  "Interstate system" means that portion of the

708-12   national system of interstate and defense highways that is located

708-13   in this state and is designated officially by the commission and

708-14   approved under Title 23, United States Code.

708-15               (6) [(3)]  "Junk" means:

708-16                     (A)  old or scrap copper, brass, rope, rags,

708-17   batteries, paper, trash, rubber, debris, or waste;

708-18                     (B)  junked, dismantled, or wrecked automobiles

708-19   or automobile parts; or

708-20                     (C)  iron, steel, and other old or scrap ferrous

708-21   or nonferrous material.

708-22               (7) [(4)]  "Junkyard" means:

708-23                     (A)  an automobile graveyard;

708-24                     (B)  an establishment maintained, used, or

 709-1   operated for storing, buying, or selling junk or processing scrap

 709-2   metal; or

 709-3                     (C)  a garbage dump or sanitary fill.

 709-4               (8)  "Major shopping area" means a geographic area

 709-5   that:

 709-6                     (A)  consists of 30 acres or more of land; and

 709-7                     (B)  includes an enclosed retail shopping mall

 709-8   that contains 1 million square feet or more of gross building area.

 709-9               (9)  "Major shopping area guide sign" means a

709-10   rectangular guide sign panel imprinted with the name of a major

709-11   shopping area, as it is commonly known to the public, and

709-12   containing directional information to the major shopping area.

709-13               (10) [(5)]  "Outdoor advertising" means an outdoor

709-14   sign, display, light, device, figure, painting, drawing, message,

709-15   plaque, poster, billboard, or other thing designed, intended, or

709-16   used to advertise or inform if any part of the advertising or

709-17   information content is visible from the main-traveled way of the

709-18   interstate or primary system.  The term does not include a sign or

709-19   marker giving information about the location of an underground

709-20   electric transmission line, telegraph or telephone property or

709-21   facility, pipeline, public sewer, or waterline.

709-22               (11) [(6)]  "Primary system" means that portion of

709-23   connected main highways located in this state that is designated

709-24   officially by the commission and approved under Title 23, United

 710-1   States Code.

 710-2               (12) [(7)]  "Specific information logo sign" means a

 710-3   rectangular sign panel imprinted with the words "GAS," "FOOD,"

 710-4   "LODGING," or "CAMPING," or with a combination of those words, and

 710-5   the specific brand names of commercial establishments offering

 710-6   those services[, including specific brand names, giving specific

 710-7   information of interest to the traveling public].

 710-8               (13) [(8)]  "Urban area" means an area defined by the

 710-9   commission in cooperation with local officials, subject to approval

710-10   by the secretary of the United States Department of Transportation,

710-11   that as a minimum includes an urban place as designated by the

710-12   United States Bureau of the Census having a population of 5,000 or

710-13   more and not located within an urbanized area.

710-14               (14) [(9)]  "Urbanized area" means an area defined by

710-15   the commission in cooperation with local officials, subject to

710-16   approval by the secretary of the United States Department of

710-17   Transportation, that as a minimum includes an urbanized area as

710-18   defined by the United States Bureau of the Census or that part of a

710-19   multistate urbanized area located in this state.

710-20         Sec. 391.091.  ERECTION AND MAINTENANCE OF SIGNS.  The

710-21   commission shall contract with an individual, firm, group, or

710-22   association in this state to erect and maintain specific

710-23   information logo signs at appropriate locations along an eligible

710-24   highway [interstate highways in each county with a population of

 711-1   less than 20,000].

 711-2         (b)  Sections 391.092(a) and (c), Transportation Code, are

 711-3   amended to conform to Section 1, Chapter 284 (S.B. No. 882), Acts

 711-4   of the 74th Legislature, Regular Session, 1995, to read as follows:

 711-5         (a)  The commission shall:

 711-6               (1)  regulate the content, composition, placement,

 711-7   erection, and maintenance of specific information logo signs and

 711-8   supports on an eligible [interstate] highway right-of-way; and

 711-9               (2)  adopt rules necessary to administer and enforce

711-10   this subchapter.

711-11         (c)  A specific information logo sign may not:

711-12               (1)  contain a message, symbol, or trademark that

711-13   resembles an official traffic-control device; or

711-14               (2)  [have vertical spacing between establishment names

711-15   that exceeds eight inches or horizontal spacing between

711-16   establishment names that exceeds 12 inches;]

711-17               [(3)]  contain more than six [four] establishment names

711-18   for each [service on one] sign panel[; or]

711-19               [(4)  contain logos for more than one service on a sign

711-20   panel except in an area in which not more than two eligible

711-21   establishments are available for a service, in which case a sign

711-22   panel may contain logos for two services].

711-23         (c)  Section 391.093(a), Transportation Code, is amended to

711-24   conform to Section 1, Chapter 284 (S.B. No. 882), Acts of the 74th

 712-1   Legislature, Regular Session, 1995, to read as follows:

 712-2         (a)  A commercial establishment, to be eligible to have its

 712-3   name displayed on a specific information logo sign, must provide

 712-4   gas, food, lodging, or camping and be located not more than three

 712-5   miles from an interchange on an eligible [interstate] highway.  If

 712-6   no service participating or willing to participate in the specific

 712-7   information logo sign program is located within three miles of an

 712-8   interchange, the commission may grant permits for commercial

 712-9   establishments located not farther than:

712-10               (1)  six miles from the interchange;

712-11               (2)  nine miles from the interchange if no service

712-12   participating or willing to participate in the program is located

712-13   within six miles from the interchange;

712-14               (3)  12 miles from the interchange if no service

712-15   participating or willing to participate in the program is located

712-16   within nine miles of the interchange; or

712-17               (4)  15 miles from the interchange if no service

712-18   participating or willing to participate in the program is located

712-19   within 12 miles of the interchange [more than 15 miles from the

712-20   interchange].

712-21         (d)  Subchapter D, Chapter 391, Transportation Code, is

712-22   amended to conform to Section 1, Chapter 284 (S.B. No. 882), Acts

712-23   of the 74th Legislature, Regular Session, 1995, by adding Section

712-24   391.0935 to read as follows:

 713-1         Sec. 391.0935.  MAJOR SHOPPING AREA GUIDE SIGNS.  (a)  Unless

 713-2   the commission determines there is a conflict with federal law, the

 713-3   commission shall establish a program that allows the erection and

 713-4   maintenance of major shopping area guide signs at appropriate

 713-5   locations along eligible urban highways.

 713-6         (b)  The commission shall adopt rules regulating the content,

 713-7   composition, placement, erection, and maintenance of major shopping

 713-8   area guide signs and supports within eligible urban highway

 713-9   rights-of-way.  A major shopping area is entitled to have its name

713-10   displayed on major shopping area guide signs if it is located not

713-11   farther than three miles from an interchange on an eligible urban

713-12   highway.

713-13         (c)  A major shopping area that has its name displayed on a

713-14   major shopping area guide sign shall reimburse the commission for

713-15   all costs associated with the composition, placement, erection, and

713-16   maintenance of the sign.

713-17         (d)  Major shopping area guide signs may be included as part

713-18   of exit direction signs, advance guide signs, and supplemental

713-19   guide signs and must include guide signs for both directions of

713-20   traffic on an eligible urban highway.

713-21         (e)  Sections 391.093(b)-(e) do not apply to major shopping

713-22   area guide signs.

713-23         (e)  Section 391.095, Transportation Code, is amended to

713-24   conform to Section 1, Chapter 284 (S.B. No. 882), Acts of the 74th

 714-1   Legislature, Regular Session, 1995, to read as follows:

 714-2         Sec. 391.095.  PLACEMENT OF SIGNS.  (a)  The contractor

 714-3   installing a specific information logo sign shall place the sign so

 714-4   that:

 714-5               (1)  the sign is at least 800 feet from the previous

 714-6   interchange and at least 800 feet from the exit direction sign at

 714-7   the interchange from which the services are available;

 714-8               (2)  two signs having the same legend are at least 800

 714-9   feet apart, but are not excessively spaced; and

714-10               (3)  a motorist, after following the sign, can

714-11   conveniently reenter the highway and continue in the original

714-12   direction of travel[; and]

714-13               [(4)  if the service facilities are not visible from a

714-14   single-exit interchange ramp terminal, the signs are placed along

714-15   the ramp or at the ramp terminal].

714-16         (b)  A specific information logo sign that is placed along a

714-17   ramp or at a ramp terminal must be a duplicate of the corresponding

714-18   establishment logo sign, except that the ramp sign must:

714-19               (1)  be smaller [and omit the service information];

714-20               (2)  include the distance to the commercial

714-21   establishment; and

714-22               (3)  include directional arrows instead of directions

714-23   shown in words.

714-24         (c)  If the service facilities are not visible from an

 715-1   interchange ramp terminal, additional signs may be placed along the

 715-2   ramp or at the ramp terminal.

 715-3         (f)  Section 1, Chapter 284 (S.B. No. 882), Acts of the 74th

 715-4   Legislature, Regular Session, 1995, is repealed.

 715-5         SECTION 30.23.  (a)  Section 394.003(a), Transportation Code,

 715-6   is amended to conform to Section 1, Chapter 343 (S.B. No. 888),

 715-7   Acts of the 74th Legislature, Regular Session, 1995, to read as

 715-8   follows:

 715-9         (a)  This chapter does not apply to:

715-10               (1)  a sign that is allowed to be erected and

715-11   maintained under the highway beautification provisions contained in

715-12   Chapter 391;

715-13               (2)  a sign in existence before September 1, 1985;

715-14               (3)  a sign that has as its purpose the protection of

715-15   life or property;

715-16               (4)  a directional or other official sign authorized by

715-17   law, including a sign that pertains to a natural wonder or a scenic

715-18   or historic attraction;

715-19               (5)  a sign that gives information about the location

715-20   of an underground electric transmission line or a telegraph or

715-21   telephone property or facility, a pipeline, a public sewer, or a

715-22   waterline;

715-23               (6)  a sign erected by an agency or political

715-24   subdivision of the state; or

 716-1               (7)  a sign erected solely for and relating to a public

 716-2   election if the sign:

 716-3                     (A)  is on private property;

 716-4                     (B)  is erected not earlier than the 90th [60th]

 716-5   day before the date of the election and is removed not later than

 716-6   the 10th day after the election date;

 716-7                     (C)  is constructed of lightweight material; and

 716-8                     (D)  has a surface area not larger than 50 square

 716-9   feet.

716-10         (b)  Section 1, Chapter 343 (S.B. No. 888), Acts of the 74th

716-11   Legislature, Regular Session, 1995, is repealed.

716-12         SECTION 30.24.  Section 431.101, Transportation Code, is

716-13   amended to more closely conform to the law from which it was

716-14   derived to read as follows:

716-15         Sec. 431.101.  CREATION OF LOCAL GOVERNMENT CORPORATION.  (a)

716-16   A local government corporation may be created to aid and act on

716-17   behalf of one or more local governments.

716-18         (b)  A local government corporation has the powers of a

716-19   corporation authorized for creation by the commission under this

716-20   chapter.

716-21         SECTION 30.25.  (a)  Subchapter C, Chapter 451,

716-22   Transportation Code, is amended to conform to Section 74(a),

716-23   Chapter 318 (S.B. No. 15), Acts of the 74th Legislature, Regular

716-24   Session, 1995, by adding Section 451.1075 to read as follows:

 717-1         Sec. 451.1075.  PROHIBITION OF CONSUMPTION OF ALCOHOLIC

 717-2   BEVERAGE.  (a)  A board by resolution may prohibit the consumption

 717-3   of an alcoholic beverage on property an authority possesses or

 717-4   controls.  The resolution must describe with particularity each

 717-5   place where consumption of an alcoholic beverage is prohibited.

 717-6         (b)  The authority shall post a sign in each place where

 717-7   consumption of an alcoholic beverage is prohibited under this

 717-8   section.  The sign must indicate that a person may not consume an

 717-9   alcoholic beverage in that place.

717-10         (c)  A person commits an offense if the person consumes an

717-11   alcoholic beverage in a place where the consumption of an alcoholic

717-12   beverage is prohibited under this section.

717-13         (d)  An offense under this section is a Class C misdemeanor.

717-14         (e)  In this section, "alcoholic beverage" has the meaning

717-15   assigned by Section 1.04, Alcoholic Beverage Code.

717-16         (b)  Section 74(a), Chapter 318 (S.B. No. 15), Acts of the

717-17   74th Legislature, Regular Session, 1995, is repealed.

717-18         SECTION 30.26.  (a)  Subchapter G, Chapter 451,

717-19   Transportation Code, is amended to conform to Sections 11 and 12,

717-20   Chapter 11 (S.B. No. 200), Acts of the 74th Legislature, Regular

717-21   Session, 1995, to read as follows:

717-22           SUBCHAPTER G.  ALTERNATIVE FUEL [FUELS] USE PROGRAM

717-23         Sec. 451.301.  DEFINITIONS.  In this subchapter, "alternative

717-24   fuel" and "conventional gasoline" have the meanings assigned by

 718-1   Section 382.131, Health and Safety Code.

 718-2         Sec. 451.3015.  PURCHASE AND PERCENT OF VEHICLES USING

 718-3   ALTERNATIVE FUEL [FUELS].  (a)  The board may not purchase or lease

 718-4   a motor vehicle that is not capable of using [compressed natural

 718-5   gas or another] alternative fuel [the use of which results in

 718-6   comparably lower emissions of oxides of nitrogen, volatile organic

 718-7   compounds, carbon monoxide, or particulates or combinations of

 718-8   those materials].

 718-9         (b)  After August 31, 1996, at least 50 percent of the fleet

718-10   vehicles of an authority must be capable of using [compressed

718-11   natural gas or other] alternative fuel [fuels].

718-12         (b-1)  At least 30 percent of the fleet vehicles of an

718-13   authority operated in 1994 must be capable of using [compressed

718-14   natural gas or other] alternative fuel [fuels].  This subsection

718-15   expires September 1, 1996.

718-16         (c)  The Texas Natural Resource Conservation Commission,

718-17   before 1997, shall review the alternative fuel [fuels] use program

718-18   under this section.  If the commission determines that the program

718-19   has been effective in reducing total annual emissions from motor

718-20   vehicles in the area, the board shall achieve a percentage of fleet

718-21   vehicles capable of using [compressed natural gas or other]

718-22   alternative fuel [fuels] of at least 90 percent of the number of

718-23   fleet vehicles operated after August 31, 1998.

718-24         Sec. 451.302.  ALTERNATIVE FUEL [FUELS] USE PROGRAM:

 719-1   EXCEPTIONS.  (a)  The board, other than the board of an authority

 719-2   described by Subsection (b), may make exceptions to the

 719-3   requirements of Section 451.3015(a) [451.301(a)] if the board

 719-4   certifies the facts described by Subsection (c).

 719-5         (b)  The Texas Natural Resource Conservation Commission may

 719-6   make exceptions to, waive the requirements of, or reduce the

 719-7   applicable percentage provided by Section 451.3015 [451.301] for an

 719-8   authority that was confirmed before July 1, 1985, and in which the

 719-9   principal municipality has a population of less than 750,000 if the

719-10   board submits to the commission a certification of the facts

719-11   described by Subsection (c) supported by evidence acceptable to the

719-12   commission.

719-13         (c)  A certification under this section must state that:

719-14               (1)  the authority's vehicles will be operating

719-15   primarily in an area in which neither the authority nor a supplier

719-16   has or can reasonably be expected to establish a central refueling

719-17   station for [compressed natural gas or other] alternative fuel

719-18   [fuels]; or

719-19               (2)  the authority is unable to acquire or be provided

719-20   equipment or refueling facilities necessary to operate vehicles

719-21   using [compressed natural gas or other] alternative fuel [fuels] at

719-22   a projected cost that is reasonably expected to result in no

719-23   greater net cost than the continued use of conventional

719-24   [traditional] gasoline or diesel fuel measured over the expected

 720-1   useful life of the equipment or facilities supplied.

 720-2         (d)  The Texas Natural Resource Conservation Commission shall

 720-3   adopt rules for the certification process under Subsection (b),

 720-4   including requirements that the authority:

 720-5               (1)  hold a public hearing; and

 720-6               (2)  propose an alternative implementation schedule for

 720-7   meeting the percentages provided by Section 451.3015 [451.301]

 720-8   before applying to the commission for a waiver or reduction of

 720-9   those percentage requirements.

720-10         Sec. 451.303.  ALTERNATIVE FUEL [FUELS] EQUIPMENT AND

720-11   FACILITIES.  (a)  In addition to other methods authorized by law,

720-12   an authority may acquire or be provided equipment or refueling

720-13   facilities by an arrangement, including a gift or loan, under a

720-14   service contract for the supply  of [compressed natural gas or

720-15   other] alternative fuel [fuels].

720-16         (b)  If an authority acquires or is provided equipment or

720-17   facilities as authorized by Subsection (a), the supplier is

720-18   entitled, under the supply contract, to recover the cost of giving,

720-19   loaning, or providing the equipment or facilities through the fuel

720-20   charges.

720-21         Sec. 451.304.  ALTERNATIVE FUEL [FUELS] USE PROGRAM:

720-22   VEHICLES COVERED AND SAFETY.  (a)  In developing an [a compressed

720-23   natural gas or other] alternative fuel [fuels] use program, the

720-24   board should work with vehicle manufacturers and converters, fuel

 721-1   distributors, and others to specify the vehicles to be covered

 721-2   considering relevant factors, including vehicle range, specialty

 721-3   vehicle uses, fuel availability, vehicle manufacturing and

 721-4   conversion capability, safety, and resale value.

 721-5         (b)  The board may meet the percentage requirements of

 721-6   Section 451.3015 [451.301] by:

 721-7               (1)  purchasing new vehicles; or

 721-8               (2)  converting existing vehicles, in conformity with

 721-9   federal and state requirements and applicable safety laws, to

721-10   alternative fuel [fuels] use.

721-11         (c)  In purchasing, leasing, maintaining, or converting a

721-12   vehicle for alternative fuel [fuels] use, the board shall comply

721-13   with all applicable safety standards adopted by the United States

721-14   Department of Transportation or the Railroad Commission of Texas or

721-15   a successor agency.

721-16         Sec. 451.305.  ALTERNATIVE FUEL [FUELS] USE

721-17   PROGRAM:  REPORTS.  (a)  On or before December 31 of each year, the

721-18   board shall file an annual report with the Texas Natural Resource

721-19   Conservation Commission showing:

721-20               (1)  purchases, leases, and conversions of motor

721-21   vehicles;

721-22               (2)  the amount of [compressed natural gas and other]

721-23   alternative fuel [fuels] used; and

721-24               (3)  any other information required by the commission

 722-1   relevant to the alternative fuel [fuels] use program.

 722-2         (b)  The commission may require reporting from a board to

 722-3   document air quality benefits from an alternative fuel [fuels] use

 722-4   program.

 722-5         (b)  Sections 11 and 12, Chapter 11 (S.B. No. 200), Acts of

 722-6   the 74th Legislature, Regular Session, 1995, are repealed.

 722-7         SECTION 30.27.  (a)  Subchapter K, Chapter 451,

 722-8   Transportation Code, is amended to conform to Section 1, Chapter

 722-9   352 (S.B. No. 983), Acts of the 74th Legislature, Regular Session,

722-10   1995, by adding Section 451.5035 to read as follows:

722-11         Sec. 451.5035.  DESIGNATION OF ALTERNATE BY MAYOR.  (a)  This

722-12   section applies only to an authority in which the principal

722-13   municipality has a population of less than 300,000.

722-14         (b)  The mayor of a municipality who is unable to attend a

722-15   meeting of an appointments panel may designate a person to:

722-16               (1)  represent the municipality at the meeting; and

722-17               (2)  vote at the meeting.

722-18         (c)  To be eligible to be designated under Subsection (b), a

722-19   person must be a council member, alderman, commissioner, or other

722-20   officer of the municipality.

722-21         (d)  A designation under Subsection (b) must:

722-22               (1)  be in writing;

722-23               (2)  be signed by the mayor; and

722-24               (3)  be filed with the minutes of the appointments

 723-1   panel kept by the authority.

 723-2         (b)  Section 1, Chapter 352 (S.B. No. 983), Acts of the 74th

 723-3   Legislature, Regular Session, 1995, is repealed.

 723-4         SECTION 30.28.  (a)  Section 451.508, Transportation Code, is

 723-5   amended to conform to Section 3, Chapter 225 (H.B. No. 3157), Acts

 723-6   of the 74th Legislature, Regular Session, 1995, to read as follows:

 723-7         Sec. 451.508.  REMOVAL BY BOARD.  [(a)]  A board member may

 723-8   be removed from office by the other members of the board because of

 723-9   a ground for removal described by Section 451.510 [451.510(1) or

723-10   (2)].

723-11         [(b)  In an authority in which the principal municipality has

723-12   a population of less than 750,000 or more than 1.2 million, a board

723-13   member may also be removed under Subsection (a) because of any

723-14   other ground described by Section 451.510.]

723-15         (b)  Section 451.509(c), Transportation Code, is amended to

723-16   conform to Section 2, Chapter 225 (H.B. No. 3157), Acts of the 74th

723-17   Legislature, Regular Session, 1995, to read as follows:

723-18         (c)  In an authority in which the principal municipality has

723-19   a population of more than 750,000 [1.2 million], a member of the

723-20   board may be removed for any ground described by Section 451.510 by

723-21   the person or entity that appointed the member.  If the person who

723-22   appointed the member is the mayor of the principal municipality,

723-23   the removal is by recommendation of the mayor and confirmation by

723-24   the municipality's governing body.  If the member to be removed was

 724-1   appointed by the mayor of the principal municipality, the statement

 724-2   required by Section 451.511(a) shall be given by the mayor, and

 724-3   confirmation of removal by the governing body of the municipality

 724-4   is necessary.

 724-5         (c)  Section 451.513(a), Transportation Code, is amended to

 724-6   conform to Section 1, Chapter 225 (H.B. No. 3157), Acts of the 74th

 724-7   Legislature, Regular Session, 1995, to read as follows:

 724-8         (a)  A board member of an authority that [imposes a sales and

 724-9   use tax at the rate of one percent and that] has a principal

724-10   municipality with a population of more than 750,000 [1.2 million]

724-11   may be removed, as provided by this section, on a petition for the

724-12   recall of the member submitted by the registered voters of the

724-13   authority.  Recall of a member under this section is in addition to

724-14   any other method for removal under this subchapter.

724-15         (d)  Sections 1-3, Chapter 225 (H.B. No. 3157), Acts of the

724-16   74th Legislature, Regular Session, 1995, are repealed.

724-17         SECTION 30.29.  (a)  Subchapter C, Chapter 452,

724-18   Transportation Code, is amended to conform to Section 74(b),

724-19   Chapter 318 (S.B. No. 15), Acts of the 74th Legislature, Regular

724-20   Session, 1995, by adding Section 452.1055 to read as follows:

724-21         Sec. 452.1055.  PROHIBITION OF CONSUMPTION OF ALCOHOLIC

724-22   BEVERAGE.  (a)  A board by resolution may prohibit the consumption

724-23   of an alcoholic beverage on property an authority possesses or

724-24   controls.  The resolution must describe with particularity each

 725-1   place where consumption of an alcoholic beverage is prohibited.

 725-2         (b)  The authority shall post a sign in each place where

 725-3   consumption of an alcoholic beverage is prohibited under this

 725-4   section.  The sign must indicate that a person may not consume an

 725-5   alcoholic beverage in that place.

 725-6         (c)  A person commits an offense if the person consumes an

 725-7   alcoholic beverage in a place where the consumption of an alcoholic

 725-8   beverage is prohibited under this section.

 725-9         (d)  An offense under this section is a Class C misdemeanor.

725-10         (e)  In this section, "alcoholic beverage" has the meaning

725-11   assigned by Section 1.04, Alcoholic Beverage Code.

725-12         (b)  Section 74(b), Chapter 318 (S.B. No. 15), Acts of the

725-13   74th Legislature, Regular Session, 1995, is repealed.

725-14         SECTION 30.30.  (a)  Subchapter F, Chapter 452,

725-15   Transportation Code, is amended to conform to Section 13, Chapter

725-16   11 (S.B. No. 200), Acts of the 74th Legislature, Regular Session,

725-17   1995, to read as follows:

725-18           SUBCHAPTER F.  ALTERNATIVE FUEL [FUELS] USE PROGRAM

725-19         Sec. 452.251.  DEFINITIONS.  In this subchapter, "alternative

725-20   fuel" and "conventional gasoline" have the meanings assigned by

725-21   Section 382.131, Health and Safety Code.

725-22         Sec. 452.2515.  PURCHASE AND PERCENT OF VEHICLES USING

725-23   ALTERNATIVE FUEL [FUELS].  (a)  An authority may not purchase or

725-24   lease a motor vehicle that is not capable of using [compressed

 726-1   natural gas or another] alternative fuel [the use of which results

 726-2   in comparably lower emissions of oxides of nitrogen, volatile

 726-3   organic compounds, carbon monoxide, or particulates or combinations

 726-4   of those materials].

 726-5         (b)  After August 31, 1996, at least 50 percent of the fleet

 726-6   vehicles operated by an authority must be capable of using

 726-7   [compressed natural gas or another] alternative fuel.

 726-8         (b-1)  At least 30 percent of the fleet vehicles operated by

 726-9   an authority must be capable of using [compressed natural gas or

726-10   another] alternative fuel.  This subsection expires September 1,

726-11   1996.

726-12         (c)  The Texas Natural Resource Conservation Commission,

726-13   before 1997, shall review the alternative fuel [fuels] use program

726-14   under this section.  If the commission determines that the program

726-15   has been effective in reducing total annual emissions from motor

726-16   vehicles in the area, the authority shall achieve a percentage of

726-17   fleet vehicles capable of using [compressed natural gas or other]

726-18   alternative fuel [fuels] of at least 90 percent of the number of

726-19   fleet vehicles operated after August 31, 1998.

726-20         Sec. 452.252.  ALTERNATIVE FUEL [FUELS] USE PROGRAM:

726-21   EXCEPTIONS.  (a)  An authority may make exceptions to the

726-22   requirements of Section 452.2515(a) [452.251(a)] if the authority

726-23   certifies the facts described by Subsection (b).

726-24         (b)  A certification under this section must state that:

 727-1               (1)  the authority's vehicles will be operating

 727-2   primarily in an area in which neither the authority nor a supplier

 727-3   has or can reasonably be expected to establish a central refueling

 727-4   station for [compressed natural gas or other] alternative fuel

 727-5   [fuels]; or

 727-6               (2)  the authority is unable to acquire or be provided

 727-7   equipment or refueling facilities necessary to operate vehicles

 727-8   using [compressed natural gas or other] alternative fuel [fuels] at

 727-9   a projected cost that is reasonably expected to result in no

727-10   greater net cost than the continued use of conventional

727-11   [traditional] gasoline or diesel fuel measured over the expected

727-12   useful life of the equipment or facilities supplied.

727-13         Sec. 452.253.  ALTERNATIVE FUEL [FUELS] EQUIPMENT AND

727-14   FACILITIES.  (a)  In addition to other methods authorized by law,

727-15   an authority may acquire or be provided equipment or refueling

727-16   facilities by an arrangement, including a gift or loan, under a

727-17   service contract for the supply of [compressed natural gas or

727-18   other] alternative fuel [fuels].

727-19         (b)  If an authority acquires or is provided equipment or

727-20   facilities as authorized by Subsection (a), the supplier is

727-21   entitled, under the supply contract, to recover the cost of giving,

727-22   loaning, or providing the equipment or facilities through the fuel

727-23   charges.

727-24         Sec. 452.254.  ALTERNATIVE FUEL [FUELS] USE PROGRAM:

 728-1   VEHICLES COVERED AND SAFETY.  (a)  In developing an [a compressed

 728-2   natural gas or other] alternative fuel [fuels] use program, the

 728-3   authority should work with vehicle manufacturers and converters,

 728-4   fuel distributors, and others to specify the vehicles to be covered

 728-5   considering relevant factors, including vehicle range, specialty

 728-6   vehicle uses, fuel availability, vehicle manufacturing and

 728-7   conversion capability, safety, and resale value.

 728-8         (b)  The authority may meet the percentage requirements of

 728-9   Section 452.2515 [452.251] by:

728-10               (1)  purchasing new vehicles; or

728-11               (2)  converting existing vehicles, in conformity with

728-12   federal and state requirements and applicable safety laws, to

728-13   alternative fuel [fuels] use.

728-14         (c)  In purchasing, leasing, maintaining, or converting a

728-15   vehicle for [compressed natural gas or other] alternative fuel

728-16   [fuels] use, the authority shall comply with all applicable safety

728-17   standards adopted by the United States Department of Transportation

728-18   or the Railroad Commission of Texas or their successor agencies.

728-19         Sec. 452.255.  ALTERNATIVE FUEL [FUELS] USE PROGRAM:

728-20   REPORTS.  (a)  On or before December 31 of each year, an authority

728-21   shall file an annual report with the Texas Natural Resource

728-22   Conservation Commission showing:

728-23               (1)  purchases, leases, and conversions of motor

728-24   vehicles;

 729-1               (2)  the amount of [compressed natural gas and other]

 729-2   alternative fuel [fuels] used; and

 729-3               (3)  any other information required by the commission

 729-4   relevant to the alternative fuel [fuels] use program.

 729-5         (b)  The commission may require reporting from an authority

 729-6   to document air quality benefits from an alternative fuel [fuels]

 729-7   use program.

 729-8         (b)  Section 13, Chapter 11 (S.B. No. 200), Acts of the 74th

 729-9   Legislature, Regular Session, 1995, is repealed.

729-10         SECTION 30.31.  (a)  Section 453.051(a), Transportation Code,

729-11   is amended to conform to Section 1, Chapter 104 (H.B. No. 2183),

729-12   Acts of the 74th Legislature, Regular Session, 1995, to read as

729-13   follows:

729-14         (a)  The governing body of a municipality, by ordinance or

729-15   resolution, may create a transit department if:

729-16               (1)  the municipality operates a mass transportation

729-17   system;

729-18               (2)  the municipality has a population of 50,000

729-19   [56,000] or more; and

729-20               (3)  the governing body determines that the creation of

729-21   a transit department and operation of a transit department system

729-22   would be in the public interest and of benefit to persons residing

729-23   in the municipality.

729-24         (b)  Section 1, Chapter 104 (H.B. No. 2183), Acts of the 74th

 730-1   Legislature, Regular Session, 1995, is repealed.

 730-2         SECTION 30.32.  (a)  Subchapter B, Chapter 453,

 730-3   Transportation Code, is amended to conform to Section 74(c),

 730-4   Chapter 318 (S.B. No. 15), Acts of the 74th Legislature, Regular

 730-5   Session, 1995, by adding Section 453.060 to read as follows:

 730-6         Sec. 453.060.  PROHIBITION OF CONSUMPTION OF ALCOHOLIC

 730-7   BEVERAGE.  (a)  A board by resolution may prohibit the consumption

 730-8   of an alcoholic beverage on property a transit department possesses

 730-9   or controls.  The resolution must describe with particularity each

730-10   place where consumption of an alcoholic beverage is prohibited.

730-11         (b)  The transit department shall post a sign in each place

730-12   where consumption of an alcoholic beverage is prohibited under this

730-13   section.  The sign must indicate that a person may not consume an

730-14   alcoholic beverage in that place.

730-15         (c)  A person commits an offense if the person consumes an

730-16   alcoholic beverage in a place where the consumption of an alcoholic

730-17   beverage is prohibited under this section.

730-18         (d)  An offense under this section is a Class C misdemeanor.

730-19         (e)  In this section, "alcoholic beverage" has the meaning

730-20   assigned by Section 1.04, Alcoholic Beverage Code.

730-21         (b)  Section 74(c), Chapter 318 (S.B. No. 15), Acts of the

730-22   74th Legislature, Regular Session, 1995, is repealed.

730-23         SECTION 30.33.  (a)  Subchapter F, Chapter 453,

730-24   Transportation Code, is amended to conform to Section 14, Chapter

 731-1   11, Acts of the 74th Legislature, Regular Session, 1995, to read as

 731-2   follows:

 731-3           SUBCHAPTER F.  ALTERNATIVE FUEL [FUELS] USE PROGRAM

 731-4         Sec. 453.251.  DEFINITIONS.  In this subchapter, "alternative

 731-5   fuel" and "conventional gasoline" have the meanings assigned those

 731-6   terms by Section 382.131, Health and Safety Code.

 731-7         Sec. 453.2515.  PURCHASE AND PERCENT OF VEHICLES USING

 731-8   ALTERNATIVE FUELS.  (a)  A transit department may not purchase or

 731-9   lease a motor vehicle that is not capable of using [compressed

731-10   natural gas or another] alternative fuel [the use of which results

731-11   in comparably lower emissions of oxides of nitrogen, volatile

731-12   organic compounds, carbon monoxide, or particulates or combinations

731-13   of those materials].

731-14         (b)  After August 31, 1996, at least 50 percent of the fleet

731-15   vehicles operated by a transit department must be capable of using

731-16   [compressed natural gas or another] alternative fuel.

731-17         (c)  The Texas Natural Resource Conservation Commission,

731-18   before 1997, shall review the alternative fuel [fuels] use program

731-19   under this section.  If the commission determines that the program

731-20   has been effective in reducing total annual emissions from motor

731-21   vehicles in the area, the transit department shall achieve a

731-22   percentage of fleet vehicles capable of using [compressed natural

731-23   gas or other] alternative fuel [fuels] of at least 90 percent of

731-24   the number of fleet vehicles operated after August 31, 1998.

 732-1         Sec. 453.252.  ALTERNATIVE FUEL [FUELS] USE PROGRAM:

 732-2   EXCEPTIONS.  (a)  A transit department may make exceptions to the

 732-3   requirements of Section 453.2515(a) [453.251(a)] if the transit

 732-4   department certifies the facts described by Subsection (b).

 732-5         (b)  A certification under this section must state that:

 732-6               (1)  the transit department's vehicles will be

 732-7   operating primarily in an area in which neither the transit

 732-8   department nor a supplier has or can reasonably be expected to

 732-9   establish a central refueling station for [compressed natural gas

732-10   or other] alternative fuel [fuels]; or

732-11               (2)  the transit department is unable to acquire or be

732-12   provided equipment or refueling facilities necessary to operate

732-13   vehicles using [compressed natural gas or other] alternative fuel

732-14   [fuels] at a project cost that is reasonably expected to result in

732-15   no greater net cost than the continued use of conventional

732-16   [traditional] gasoline or diesel fuel measured over the expected

732-17   useful life of the equipment or facilities supplied.

732-18         Sec. 453.253.  ALTERNATIVE FUEL [FUELS] EQUIPMENT AND

732-19   FACILITIES.  (a)  In addition to other methods authorized by law, a

732-20   transit department may acquire or be provided equipment or

732-21   refueling facilities by an arrangement, including a gift or a loan,

732-22   under a service contract for the supply of [compressed natural gas

732-23   or other] alternative fuel [fuels].

732-24         (b)  If a transit department acquires or is provided

 733-1   equipment or facilities as authorized by Subsection (a), the

 733-2   supplier is entitled, under the supply contract, to recover the

 733-3   cost of giving, loaning, or providing the equipment or facilities

 733-4   through the fuel charges.

 733-5         Sec. 453.254.  ALTERNATIVE FUEL [FUELS] USE PROGRAM:

 733-6   VEHICLES COVERED AND SAFETY.  (a)  In developing an [a compressed

 733-7   natural gas or other] alternative fuel [fuels] use program, a

 733-8   transit department should work with vehicle manufacturers and

 733-9   converters, fuel distributors, and others to specify the vehicles

733-10   to be covered considering relevant factors, including vehicle

733-11   range, specialty vehicle uses, fuel availability, vehicle

733-12   manufacturing and conversion capability, safety, and resale value.

733-13         (b)  The transit department may meet the percentage

733-14   requirements of Section 453.2515 [453.251] by:

733-15               (1)  purchasing new vehicles; or

733-16               (2)  converting existing vehicles, in conformity with

733-17   federal and state requirements and applicable safety laws, to

733-18   alternative fuel [fuels] use.

733-19         (c)  In purchasing, leasing, maintaining, or converting a

733-20   vehicle for alternative fuel [fuels] use, the transit department

733-21   shall comply with all applicable safety standards adopted by the

733-22   United States Department of Transportation or the Railroad

733-23   Commission of Texas or their successor agencies.

733-24         Sec. 453.255.  ALTERNATIVE FUEL [FUELS] USE PROGRAM:

 734-1   REPORTS.  (a)  Not later than December 31 of each year, a transit

 734-2   department shall file an annual report with the Texas Natural

 734-3   Resource Conservation Commission showing:

 734-4               (1)  purchases, leases, and conversions of motor

 734-5   vehicles;

 734-6               (2)  the amount of [compressed natural gas and other]

 734-7   alternative fuel [fuels] used; and

 734-8               (3)  any other information required by the commission

 734-9   relevant to the alternative fuel [fuels] use program.

734-10         (b)  The commission may require reporting from a transit

734-11   department to document air quality benefits from an alternative

734-12   fuel [fuels] use program.

734-13         (b)  Section 14, Chapter 11, Acts of the 74th Legislature,

734-14   Regular Session, 1995, is repealed.

734-15         SECTION 30.34.  (a)  Section 456.001, Transportation Code, is

734-16   amended to conform to Section 1, Chapter 644 (H.B. No. 2496), Acts

734-17   of the 74th Legislature, Regular Session, 1995, by amending

734-18   Subdivisions (2) and (12) and adding Subdivision (13) to read as

734-19   follows:

734-20               (2)  "Designated recipient" means an entity that

734-21   receives money from the United States or this state for public

734-22   transportation through the department or the Federal Transit

734-23   Administration or the administration's successor and is a transit

734-24   authority, a municipality not included in a transit authority, a

 735-1   local governmental body, or a nonprofit entity providing rural

 735-2   public transportation service.

 735-3               (12)  "Urbanized area" means an area with a population

 735-4   of more than 50,000 and less than 200,000 and so designated by the

 735-5   United States Bureau of the Census [or by general state law].

 735-6               (13)  "Rural area" means an area with a population of

 735-7   50,000 or less and so designated by the United States Bureau of the

 735-8   Census.

 735-9         (b)  Section 456.002(b), Transportation Code, is amended to

735-10   conform to Section 3, Chapter 644 (H.B. No. 2496), Acts of the 74th

735-11   Legislature, Regular Session, 1995, to read as follows:

735-12         (b)  Each public transportation program provided by this

735-13   chapter is a [matching] grant program for public transportation

735-14   projects.  Approval by the United States of a proposed public

735-15   transportation project means that the project is consistent with

735-16   the purposes of this chapter and with the continuing, cooperative,

735-17   and comprehensive regional transportation planning implemented in

735-18   accordance with the Federal Transit Act and the Federal-Aid Highway

735-19   Act.

735-20         (c)  Section 456.004, Transportation Code, is amended to

735-21   conform to Section 3, Chapter 644 (H.B. No. 2496), Acts of the 74th

735-22   Legislature, Regular Session, 1995, to read as follows:

735-23         Sec. 456.004.  GENERAL FINANCING APPLICATION REQUIREMENTS.

735-24   An application for project financing under this chapter must be

 736-1   certified and contain a statement by the applicant that[:]

 736-2               [(1)]  the proposed public transportation project is

 736-3   consistent with the continuing, cooperative, and comprehensive

 736-4   regional transportation planning implemented in accordance with the

 736-5   Federal Transit Act and the Federal-Aid Highway Act[; and]

 736-6               [(2)  money is available to provide:]

 736-7                     [(A)  35 percent of the local share requirement,

 736-8   if the project is a federally financed capital improvement or

 736-9   planning project, or 50 percent of the local share requirement, if

736-10   the project is a federally financed project for operating expenses;

736-11   or]

736-12                     [(B)  50 percent of the total cost of the public

736-13   transportation capital improvement project, if the project is not

736-14   described in Paragraph (A)].

736-15         (d)  Section 456.006, Transportation Code, is amended to

736-16   conform to Section 3, Chapter 644 (H.B. No. 2496), Acts of the 74th

736-17   Legislature, Regular Session, 1995, to read as follows:

736-18         Sec. 456.006.  USE OF FINANCING.  (a)  Except as provided by

736-19   Subsection (b), a [A] designated recipient may use money from the

736-20   formula or discretionary program to provide for capital

736-21   improvements, planning activities, and operating expenses.

736-22         (b)  A municipality that has a population of more than

736-23   200,000 and that is not ineligible under Section 456.003 may use

736-24   money from the formula or discretionary program to provide:

 737-1               (1)  65 percent of the local share requirement for a

 737-2   federally financed capital improvement project;

 737-3               (2)  50 percent of the local share requirement for a

 737-4   federally financed project for operating expenses;

 737-5               (3)  65 percent of the local share requirement for

 737-6   federally financed planning activities; and

 737-7               (4)  50 percent of the total cost of a public

 737-8   transportation capital improvement project, if the designated

 737-9   recipient certifies that money from the United States is

737-10   unavailable for the project and the commission determines that the

737-11   project is vitally important to the development of public

737-12   transportation in this state.

737-13         (e)  Section 456.007, Transportation Code, is amended to

737-14   conform to Section 1(17), Chapter 1058 (H.B. No. 3050), Acts of the

737-15   74th Legislature, Regular Session, 1995, to read as follows:

737-16         Sec. 456.007.  PUBLIC TRANSPORTATION ACCOUNT FUND;

737-17   Appropriations and Grants.  (a)  The public transportation account

737-18   fund is an account in the general revenue fund.  A grant of money

737-19   to the state for public transportation purposes from a public or

737-20   private source shall be deposited to the credit of the public

737-21   transportation account fund.  Money in the public transportation

737-22   account fund may be used only by the department to carry out the

737-23   responsibilities of the commission and the department for public

737-24   transportation under this chapter.

 738-1         (b)  The legislature may appropriate money for public

 738-2   transportation purposes from the portion of the state highway fund

 738-3   that is not dedicated by the constitution.

 738-4         [(b)  The state may receive a grant for public transportation

 738-5   purposes from a public or private source.]

 738-6         (f)  Section 456.022, Transportation Code, is amended to

 738-7   conform to Section 1, Chapter 644 (H.B. No. 2496), Acts of the 74th

 738-8   Legislature, Regular Session, 1995, to read as follows:

 738-9         Sec. 456.022.  ALLOCATION BY CATEGORIES.  Under the formula

738-10   program the commission shall allocate:

738-11               (1)  50 percent of the money:

738-12                     (A)  to urbanized areas [that have populations of

738-13   not less than 50,000 and] that are not served by a transit

738-14   authority; and

738-15                     (B)  to areas not served by a transit authority

738-16   but located in urbanized areas [that have populations of not less

738-17   than 50,000 and] that include one or more transit authorities; and

738-18               (2)  50 percent of the money:

738-19                     (A)  to urban areas [that have populations of

738-20   less than 50,000]; or

738-21                     (B)  to rural areas.

738-22         (g)  Section 456.041(a), Transportation Code, is amended to

738-23   conform to Section 2, Chapter 644 (H.B. No. 2496), Acts of the 74th

738-24   Legislature, Regular Session, 1995, to read as follows:

 739-1         (a)  To participate in the discretionary program provided by

 739-2   this subchapter, a designated recipient must submit to the

 739-3   commission an application for project financing.  The application

 739-4   must contain:

 739-5               (1)  a description of the project, including an

 739-6   estimate of the population that the project would benefit and the

 739-7   anticipated completion date of the project;

 739-8               (2)  a statement of the estimated cost of the project,

 739-9   including an estimate of the portion of the cost of the project

739-10   financed by the United States; and

739-11               (3)  the certification required by Section

739-12   456.006(b)(4) [456.004].

739-13         (h)  Sections 1-3, Chapter 644 (H.B. No. 2496), Acts of the

739-14   74th Legislature, Regular Session, 1995, are repealed.

739-15         SECTION 30.35.  (a)  Subtitle K, Title 6, Transportation

739-16   Code, is amended to codify Article 1118z-1, Revised Statutes, as

739-17   added by Section 1, Chapter 786 (S.B. No. 1388), Acts of the 74th

739-18   Legislature, Regular Session, 1995, and to conform to the changes

739-19   in law made by Chapter 655 (H.B. No.  1863), Acts of the 74th

739-20   Legislature, Regular Session, 1995, by adding Chapter 457 to read

739-21   as follows:

739-22               CHAPTER 457.  COUNTY MASS TRANSIT AUTHORITY

739-23                    SUBCHAPTER A.  GENERAL PROVISIONS

739-24         Sec. 457.001.  DEFINITIONS.  In this chapter:

 740-1               (1)  "Authority" means a mass transit authority created

 740-2   under this chapter or former Article 1118z-1, Revised Statutes.

 740-3               (2)  "Board" means the governing body of an authority.

 740-4               (3)  "Bond" includes a note.

 740-5               (4)  "Mass transit" means the transportation of

 740-6   passengers and hand-carried packages or baggage of a passenger by

 740-7   any means of surface, overhead, or underground transportation,

 740-8   other than an aircraft or taxicab.

 740-9               (5)  "Principal municipality" means the municipality of

740-10   greatest population in a county to which this chapter applies.

740-11               (6)  "Transit authority system" means:

740-12                     (A)  property owned or held by an authority for

740-13   mass transit purposes; and

740-14                     (B)  facilities necessary or convenient for:

740-15                           (i)  the use of or access to mass transit

740-16   by persons or vehicles; or

740-17                           (ii)  the protection or environmental

740-18   enhancement of mass transit.

740-19               (7)  "Unit of election" means a municipality, including

740-20   the principal municipality, or the unincorporated area of a county.

740-21         Sec. 457.002.  APPLICABILITY.  This chapter applies only to a

740-22   county containing a municipality with a population of 500,000 or

740-23   more that has created a mass transit department under Chapter 453

740-24   or former Article 1118z, Revised Statutes.

 741-1            (Sections 457.003-457.050 reserved for expansion

 741-2         SUBCHAPTER B.  CREATION AND ADMINISTRATION OF AUTHORITY

 741-3         Sec. 457.051.  CREATION OF AUTHORITY.  (a)  An authority is

 741-4   created under this chapter if a resolution finding that the

 741-5   creation of an authority would be in the public interest and a

 741-6   benefit to persons residing in the county is adopted by:

 741-7               (1)  the county commissioners court;

 741-8               (2)  the governing body of the principal municipality;

 741-9   and

741-10               (3)  the governing body of at least one municipality

741-11   other than the principal municipality.

741-12         (b)  An authority may not be created if the rate of the sales

741-13   and use tax charged by the city transit department of the principal

741-14   municipality, when added to an existing sales and use tax collected

741-15   in the county other than by the principal municipality, would

741-16   exceed the limit imposed by Section 457.302.

741-17         Sec. 457.052.  BOARD OF AUTHORITY.  (a)  The board of an

741-18   authority consists of seven members.  A member of the board serves

741-19   without compensation but is entitled to reimbursement for expenses

741-20   incurred in board service.  The board shall elect one of its

741-21   members as presiding officer.  The members are appointed as

741-22   follows:

741-23               (1)  two members by the county commissioners court;

741-24               (2)  four members by the governing body of the

 742-1   principal municipality; and

 742-2               (3)  one member by the governing bodies of all

 742-3   municipalities that adopt the resolution described by Section

 742-4   457.051.

 742-5         (b)  A member of the board serves at the pleasure of the

 742-6   appointing entity.

 742-7         (c)  The board shall administer and operate the authority.

 742-8         (d)  The board shall hold at least one regular meeting each

 742-9   month for the purpose of transacting business of the authority.

742-10         (e)  The presiding officer may call a special meeting of the

742-11   board.

742-12         Sec. 457.053.  CONFIRMATION ELECTION.  (a)  If an authority

742-13   is created under Section 457.051, the board shall propose a service

742-14   plan and an initial tax rate for the authority.  The initial tax

742-15   rate must be the same rate as that collected by the city transit

742-16   department created by the principal municipality.

742-17         (b)  After proposing a service plan and an initial tax rate,

742-18   the board shall call an election in the county to approve the

742-19   creation of the authority and the tax rate.  The election must be

742-20   held on a uniform election date but may not be held on the same day

742-21   as an election held by the county under Section 323.101, Tax Code.

742-22   The election is not held in the territory of the principal

742-23   municipality.

742-24         (c)  Notice of the election must include a description of the

 743-1   nature and rate of the proposed tax.  The board shall send a copy

 743-2   of the notice to the department and the comptroller.

 743-3         (d)  At the election, the ballots shall be printed to permit

 743-4   voting for or against the following proposition:  "The creation of

 743-5   the (name of county) Transit Authority and the imposition of a

 743-6   (rate of tax) percent sales and use tax in (name of county)

 743-7   County."

 743-8         (e)  If a majority of the votes cast at the election approve

 743-9   the proposition:

743-10               (1)  the board shall record the result in its minutes

743-11   and adopt an order implementing the service plan; and

743-12               (2)  on the day the sales and use tax takes effect in

743-13   the authority, the city transit department created by the principal

743-14   municipality under Chapter 453 or former Article 1118z, Revised

743-15   Statutes, is dissolved, and its assets, personnel, and obligations

743-16   are transferred to the authority.

743-17         (f)  If less than a majority of the votes cast at the

743-18   election approve the proposition, the board shall adopt an order

743-19   dissolving  the authority, and the city transit department of the

743-20   principal municipality is not affected.

743-21         (g)  The jurisdiction of an authority is coextensive with the

743-22   territory of the county.

743-23         (h)  The board shall file a certified copy of an order

743-24   adopted under Subsection (e)(1) or (f) with the department, with

 744-1   the comptroller, and in the deed records of the county.

 744-2         Sec. 457.054.  CONFLICTS OF INTEREST:  AUTHORITY EMPLOYEES.

 744-3   An employee of an authority may not have a pecuniary interest in,

 744-4   or receive a benefit from, an agreement to which the authority is a

 744-5   party.

 744-6         Sec. 457.055.  TRANSFER OF RESOURCES BETWEEN MUNICIPALITY AND

 744-7   AUTHORITY.  (a)  The governing body of a municipality may transfer

 744-8   to an authority created under this chapter:

 744-9               (1)  property and employees of a division of the

744-10   municipality that before the creation of the authority was

744-11   responsible for municipal public transportation; and

744-12               (2)  municipal funds that may be used for mass transit.

744-13         (b)  The governing body may abolish or change the functions

744-14   of the municipal division formerly responsible for municipal public

744-15   transportation.

744-16         (c)  If an authority is required to be dissolved under this

744-17   chapter, the board, on dissolution of the authority, shall transfer

744-18   to a municipality the funds, property, and employees that were

744-19   transferred to the authority under this section.  The governing

744-20   body of the municipality may then re-create or change the duties of

744-21   any municipal division abolished or changed as a result of

744-22   transfers made under this section.

744-23         Sec. 457.056.  INVESTMENTS.  (a)  A board may invest

744-24   authority funds in any obligation, security, or evidence of

 745-1   indebtedness in which the principal municipality may invest

 745-2   municipal funds.

 745-3         (b)  In making an investment of authority funds, a board

 745-4   shall exercise the judgment and care, under the circumstances

 745-5   prevailing at the time of making the investment, that persons of

 745-6   ordinary prudence, discretion, and intelligence exercise in the

 745-7   management of their own affairs in making a permanent and

 745-8   nonspeculative disposition of their funds, considering the probable

 745-9   income from the disposition and the probable safety of their

745-10   capital.

745-11         Sec. 457.057.  DEPOSIT OF MONEY.  (a)  The board shall

745-12   designate one or more banks as depositories for authority funds.

745-13   All authority money, other than money invested as provided by

745-14   Section 457.056, shall be deposited in one or more of the

745-15   authority's depository banks.

745-16         (b)  Funds in a depository, to the extent that those funds

745-17   are not insured by the Federal Deposit Insurance Corporation, shall

745-18   be secured in the manner provided by law for the security of county

745-19   funds.

745-20         Sec. 457.058.  LIABILITY OF CREATING ENTITIES.  The political

745-21   subdivisions that adopt a resolution under Section 457.051(a) are

745-22   liable for an expense the authority incurs before the date a sales

745-23   and use tax is approved for the authority under this chapter,

745-24   including the costs of holding the election.

 746-1            (Sections 457.059-457.100 reserved for expansion

 746-2                  SUBCHAPTER C.  POWERS OF AUTHORITY  

 746-3         Sec. 457.101.  ACQUIRING AND DISPOSING OF PROPERTY.  (a)  An

 746-4   authority may acquire, hold, use, sell, lease, or dispose of

 746-5   property, including licenses, patents, rights, and other interests,

 746-6   necessary, convenient, or useful for the full exercise of any of

 746-7   its powers under this chapter.

 746-8         (b)  The authority may acquire property described in

 746-9   Subsection (a) in any manner, including by gift or devise.

746-10         (c)  An authority may dispose of, by sale, lease, or other

746-11   conveyance:

746-12               (1)  any property of the authority not needed for the

746-13   efficient operation and maintenance of the transit authority

746-14   system; and

746-15               (2)  any surplus property not needed for its

746-16   requirements or for the purpose of carrying out its powers under

746-17   this chapter.

746-18         (d)  The lease of unneeded property under Subsection (c) must

746-19   be consistent with the efficient operation and maintenance of the

746-20   transit authority system.

746-21         Sec. 457.102.  TRANSIT AUTHORITY SYSTEM.  (a)  An authority

746-22   may:

746-23               (1)  acquire, construct, own, operate, and maintain a

746-24   transit authority system;

 747-1               (2)  use any public way; and

 747-2               (3)  construct, repair, and maintain a municipal

 747-3   street, as authorized by the governing body of a municipality in

 747-4   the authority.

 747-5         (b)  In the exercise of a power under Subsection (a), an

 747-6   authority may relocate or reroute, or alter the construction of,

 747-7   any public or private property, including:

 747-8               (1)  an alley, road, street, or railroad;

 747-9               (2)  an electric line and facility;

747-10               (3)  a telegraph and telephone property and facility;

747-11               (4)  a pipeline and facility; and

747-12               (5)  a conduit and facility.

747-13         Sec. 457.103.  FARES AND OTHER CHARGES.  The board shall,

747-14   after a public hearing, impose reasonable and nondiscriminatory

747-15   fares, tolls, charges, rents, or other compensation for the use of

747-16   the transit authority system sufficient to produce revenue,

747-17   together with receipts from taxes imposed by the authority, in an

747-18   amount adequate to:

747-19               (1)  pay all the expenses necessary to operate and

747-20   maintain the transit authority system;

747-21               (2)  pay when due the principal of and interest on, and

747-22   sinking fund and reserve fund payments agreed to be made with

747-23   respect to, all bonds that are issued by the board and payable in

747-24   whole or part from the revenue; and

 748-1               (3)  fulfill the terms of any other agreement with the

 748-2   holders of bonds described by Subdivision (2) or with a person

 748-3   acting on behalf of the bondholders.

 748-4         Sec. 457.104.  AGREEMENT WITH UTILITIES AND CARRIERS.  An

 748-5   authority may agree with a public or private utility, communication

 748-6   system, common carrier, or transportation system for:

 748-7               (1)  the joint use of the property of the agreeing

 748-8   entities in the authority; or

 748-9               (2)  the establishment of through routes, joint fares,

748-10   or transfers of passengers.

748-11         Sec. 457.105.  CONTRACTS; ACQUISITION OF PROPERTY BY

748-12   AGREEMENT.  (a)  An authority may contract with any person and may

748-13   accept a grant or loan from any person.

748-14         (b)  An authority may acquire rolling stock or other property

748-15   under a contract or trust agreement, including a conditional sales

748-16   contract, lease, and equipment trust certificate.

748-17         Sec. 457.106.  USE AND ACQUISITION OF PROPERTY OF OTHERS.

748-18   (a)  An authority may not alter or damage any property of this

748-19   state or a political subdivision of this state or owned by a person

748-20   rendering public services and may not disrupt services being

748-21   provided by others or inconvenience in any other manner an owner of

748-22   property, without first having obtained:

748-23               (1)  the written consent of the owner; or

748-24               (2)  the right from the governing body of the

 749-1   municipality to take the action under the municipality's power of

 749-2   eminent domain.

 749-3         (b)  An authority may agree with an owner of property to

 749-4   provide for:

 749-5               (1)  a necessary relocation or alteration of property

 749-6   by the owner or a contractor chosen by the owner; and

 749-7               (2)  the reimbursement by the authority to the owner of

 749-8   the costs incurred by the owner in making the relocation or

 749-9   alteration.

749-10         (c)  The authority shall pay the cost of any relocation,

749-11   rerouting, or other alteration in the construction made under this

749-12   chapter and is liable for any damage to property occurring because

749-13   of the change.

749-14         Sec. 457.107.  ROUTES.  An authority shall determine each

749-15   route, including route changes, as the board considers advisable.

749-16         Sec. 457.108.  TORT LIABILITY AND GOVERNMENTAL IMMUNITY.

749-17   (a)  An  authority is a separate governmental unit for purposes of

749-18   Chapter 101, Civil Practice and Remedies Code, and operations of an

749-19   authority are essential governmental functions and not proprietary

749-20   functions for all purposes, including the purposes of that chapter.

749-21         (b)  This chapter does not create or confer any governmental

749-22   immunity or limitation of liability on any entity that is not a

749-23   governmental unit, governmental entity or authority, or public

749-24   agency or a subdivision of one of those persons.  In this

 750-1   subsection, "governmental unit" has the meaning assigned by Section

 750-2   101.001, Civil Practice and Remedies Code.

 750-3         Sec. 457.109.  TAX EXEMPTION.  The assets of an authority are

 750-4   exempt from any tax of the state or a state taxing authority.

 750-5            (Sections 457.110-457.150 reserved for expansion

 750-6             SUBCHAPTER D.  SPECIAL TRANSPORTATION PROGRAMS

 750-7         Sec. 457.151.  TRANSPORTATION FOR JOBS PROGRAM PARTICIPANTS.

 750-8   (a)  An authority shall contract with the Texas Workforce

 750-9   Commission to provide, in accordance with federal law,

750-10   transportation services to a person who:

750-11               (1)  resides in the area served by the authority;

750-12               (2)  is receiving financial assistance under Chapter

750-13   31, Human Resources Code; and

750-14               (3)  is registered in the jobs opportunities and basic

750-15   skills training program under Part F, Subchapter IV, Social

750-16   Security Act, as amended (42 U.S.C. Section 682).

750-17         (b)  The contract must include provisions to ensure that:

750-18               (1)  the authority is required to provide

750-19   transportation services only to a location:

750-20                     (A)  to which the person travels in connection

750-21   with participation in the jobs opportunities and basic skills

750-22   training program; and

750-23                     (B)  that the authority serves under the

750-24   authority's authorized rate structure and existing services;

 751-1               (2)  the authority is to provide directly to the Texas

 751-2   Workforce Commission trip vouchers for distribution by the

 751-3   workforce commission to a person who is eligible under this section

 751-4   to receive transportation services;

 751-5               (3)  the workforce commission reimburses the authority

 751-6   for allowable costs, at the applicable federal matching rate; and

 751-7               (4)  the workforce commission may return undistributed

 751-8   trip vouchers to the authority.

 751-9         (c)  An authority shall certify the amount of public funds

751-10   spent by the authority under this section for the purpose of

751-11   obtaining federal funds under the jobs opportunities and basic

751-12   skills training program.

751-13         Sec. 457.152.  WAIVER OF FEDERAL REQUIREMENTS.  If, before

751-14   implementing Section 457.151, the Texas Workforce Commission

751-15   determines that a waiver or authorization from a federal agency is

751-16   necessary for implementation, the workforce commission shall

751-17   request the waiver or authorization, and the workforce commission

751-18   and an authority may delay implementing Section 457.151 until the

751-19   waiver or authorization is granted.

751-20            (Sections 457.153-457.200 reserved for expansion

751-21               SUBCHAPTER E.  ALTERNATIVE FUEL USE PROGRAM

751-22         Sec. 457.201.  PURCHASE AND PERCENT OF VEHICLES USING

751-23   ALTERNATIVE FUEL.  (a)  An authority may not purchase or lease a

751-24   motor vehicle that is not capable of using compressed natural gas

 752-1   or another alternative fuel the use of which results in comparably

 752-2   lower emissions of oxides of nitrogen, volatile organic compounds,

 752-3   carbon monoxide, or particulates or combinations of those

 752-4   materials.

 752-5         (b)  After August 31, 1996, at least 50 percent of the fleet

 752-6   vehicles operated by an authority must be capable of using

 752-7   compressed natural gas or another alternative fuel.

 752-8         (b-1)  At least 30 percent of the fleet vehicles operated by

 752-9   an authority must be capable of using compressed natural gas or

752-10   another alternative fuel.  This subsection expires September 1,

752-11   1996.

752-12         (c)  The Texas Natural Resource Conservation Commission,

752-13   before 1997, shall review the alternative fuel use program under

752-14   this section.  If the commission determines that the program has

752-15   been effective in reducing total annual emissions from motor

752-16   vehicles in the area, the authority shall achieve a percentage of

752-17   fleet vehicles capable of using compressed natural gas or other

752-18   alternative fuel of at least 90 percent of the number of fleet

752-19   vehicles operated after August 31, 1998.

752-20         Sec. 457.202.  ALTERNATIVE FUEL USE PROGRAM:  EXCEPTIONS.

752-21   (a)  An authority may make exceptions to the requirements of

752-22   Section 457.201 if the authority certifies the facts described by

752-23   Subsection (b).

752-24         (b)  A certification under this section must state that:

 753-1               (1)  the authority's vehicles will be operating

 753-2   primarily in an area in which neither the authority nor a supplier

 753-3   has or can reasonably be expected to establish a central refueling

 753-4   station for compressed natural gas or other alternative fuel; or

 753-5               (2)  the authority is unable to acquire or be provided

 753-6   equipment or refueling facilities necessary to operate vehicles

 753-7   using compressed natural gas or other alternative fuel at a project

 753-8   cost that is reasonably expected to result in no greater net cost

 753-9   than the continued use of traditional gasoline or diesel fuel

753-10   measured over the expected useful life of the equipment or

753-11   facilities supplied.

753-12         Sec. 457.203.  ALTERNATIVE FUEL EQUIPMENT AND FACILITIES.

753-13   (a)  In addition to other methods authorized by law, an authority

753-14   may acquire or be provided equipment or refueling facilities by an

753-15   arrangement, including a gift or a loan, under a service contract

753-16   for the supply of compressed natural gas or other alternative fuel.

753-17         (b)  If an authority acquires or is provided equipment or

753-18   facilities as authorized by Subsection (a), the supplier is

753-19   entitled, under the supply contract, to recover the cost of giving,

753-20   loaning, or providing the equipment or facilities through the fuel

753-21   charges.

753-22         Sec. 457.204.  ALTERNATIVE FUEL USE PROGRAM:  VEHICLES

753-23   COVERED AND SAFETY.  (a)  In developing a compressed natural gas or

753-24   other alternative fuel use program, an authority should work with

 754-1   vehicle manufacturers and converters, fuel distributors, and others

 754-2   to specify the vehicles to be covered considering relevant factors,

 754-3   including vehicle range, specialty vehicle uses, fuel availability,

 754-4   vehicle manufacturing and conversion capability, safety, and resale

 754-5   value.

 754-6         (b)  The authority may meet the percentage requirements of

 754-7   Section 457.201 by:

 754-8               (1)  purchasing new vehicles; or

 754-9               (2)  converting existing vehicles, in conformity with

754-10   federal and state requirements and applicable safety laws, to

754-11   alternative fuel use.

754-12         (c)  In purchasing, leasing, maintaining, or converting a

754-13   vehicle for alternative fuel use, the authority shall comply with

754-14   all applicable safety standards adopted by the United States

754-15   Department of Transportation or the Railroad Commission of Texas or

754-16   their successor agencies.

754-17         Sec. 457.205.  ALTERNATIVE FUEL USE PROGRAM:  REPORTS.

754-18   (a)  Not later than December 31 of each year, an authority shall

754-19   file an annual report with the Texas Natural Resource Conservation

754-20   Commission showing:

754-21               (1)  purchases, leases, and conversions of motor

754-22   vehicles;

754-23               (2)  the amount of compressed natural gas and other

754-24   alternative fuel used; and

 755-1               (3)  any other information required by the commission

 755-2   relevant to the alternative fuel use program.

 755-3         (b)  The commission may require reporting from an authority

 755-4   to document air quality benefits from an alternative fuel use

 755-5   program.

 755-6            (Sections 457.206-457.250 reserved for expansion

 755-7                          SUBCHAPTER F.  BONDS

 755-8         Sec. 457.251.  POWER TO ISSUE BONDS.  (a)  An authority may

 755-9   issue revenue bonds at any time and for any amounts it considers

755-10   necessary or appropriate for:

755-11               (1)  the acquisition, construction, repair, equipping,

755-12   improvement, or extension of its transit system; or

755-13               (2)  the construction or general maintenance of streets

755-14   of the creating municipality.

755-15         (b)  Bonds payable solely from revenues may be issued by

755-16   resolution of the board.

755-17         (c)  Bonds, other than refunding bonds, any portion of which

755-18   is payable from tax revenue may not be issued until authorized by a

755-19   majority vote of the voters of the authority voting in an election.

755-20         Sec. 457.252.  BOND TERMS.  (a)  An authority's bonds are

755-21   fully negotiable.

755-22         (b)  The authority may make the bonds redeemable before

755-23   maturity at the price and subject to the terms that are provided in

755-24   the resolution authorizing the bonds.

 756-1         (c)  A revenue bond indenture may limit a power of the

 756-2   authority provided by this chapter as long as the bond containing

 756-3   the indenture is outstanding and unpaid.

 756-4         Sec. 457.253.  SALE.  Bonds may be sold at a public or

 756-5   private sale as determined by the board.

 756-6         Sec. 457.254.  APPROVAL; REGISTRATION.  (a)  An authority's

 756-7   bonds and the records relating to their issuance shall be submitted

 756-8   to the attorney general for examination before the bonds may be

 756-9   delivered.

756-10         (b)  If the attorney general finds that the bonds have been

756-11   issued in conformity with the constitution and this chapter and

756-12   that the bonds will be a binding obligation of the issuing

756-13   authority, the attorney general shall approve the bonds.

756-14         (c)  After the bonds are approved by the attorney general,

756-15   the comptroller shall register the bonds.

756-16         Sec. 457.255.  INCONTESTABILITY.  Bonds are incontestable

756-17   after they are:

756-18               (1)  approved by the attorney general;

756-19               (2)  registered by the comptroller; and

756-20               (3)  sold and delivered to the purchaser.

756-21         Sec. 457.256.  SECURITY PLEDGED.  (a)  To secure the payment

756-22   of an authority's bonds, the authority may:

756-23               (1)  pledge all or part of revenue received from any

756-24   tax that the authority may impose;

 757-1               (2)  pledge all or part of the revenue of the transit

 757-2   authority system; and

 757-3               (3)  mortgage all or part of the transit authority

 757-4   system, including any part of the system subsequently acquired.

 757-5         (b)  Under Subsection (a)(3), the authority may, subject to

 757-6   the terms of the bond indenture or resolution authorizing the

 757-7   issuance of the bonds, encumber a separate item of the transit

 757-8   authority system and acquire, use, hold, or contract for any

 757-9   property by lease, chattel mortgage, or other conditional sale,

757-10   including an equipment trust transaction.

757-11         Sec. 457.257.  PLEDGE OF REVENUE LIMITED.  The expenses of

757-12   operation and maintenance of a transit authority system, including

757-13   salaries, labor, materials, and repairs necessary to provide

757-14   efficient service and every other proper item of expense, are a

757-15   first lien and charge against any revenue of an authority that is

757-16   encumbered under this chapter.

757-17         Sec. 457.258.  REFUNDING BONDS.  An authority may issue

757-18   refunding bonds for the purposes and in the manner authorized by

757-19   Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k,

757-20   Vernon's Texas Civil Statutes), Chapter 784, Acts of the 61st

757-21   Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas

757-22   Civil Statutes), or other law.

757-23         Sec. 457.259.  BONDS AS AUTHORIZED INVESTMENTS.  (a)  An

757-24   authority's bonds are authorized investments for:

 758-1               (1)  a bank;

 758-2               (2)  a trust company;

 758-3               (3)  a savings and loan association; and

 758-4               (4)  an insurance company.

 758-5         (b)  The bonds, when accompanied by all appurtenant,

 758-6   unmatured coupons and to the extent of the lesser of their face

 758-7   value or market value, are eligible to secure the deposit of public

 758-8   funds of this state, a political subdivision of this state, and any

 758-9   other political corporation of this state.

758-10         Sec. 457.260.  INTEREST EXEMPTION.  Interest on bonds issued

758-11   by an authority is exempt from any tax of the state or a state

758-12   taxing authority.

758-13            (Sections 457.261-457.300 reserved for expansion

758-14                          SUBCHAPTER G.  TAXES

758-15         Sec. 457.301.  SALES AND USE TAX.  (a)  The board may impose

758-16   for the authority a sales and use tax at a permissible rate that

758-17   does not exceed the rate approved by the voters at an election

758-18   under this chapter.

758-19         (b)  The board by order may:

758-20               (1)  decrease the rate of the sales and use tax for the

758-21   authority to a permissible rate; or

758-22               (2)  call an election for the increase or decrease of

758-23   the sales and use tax to a permissible rate.

758-24         (c)  The permissible rates for a sales and use tax imposed

 759-1   under this chapter are:

 759-2               (1)  one-quarter of one percent; and

 759-3               (2)  one-half of one percent.

 759-4         (d)  Chapter 322, Tax Code, applies to an authority's sales

 759-5   and use tax.

 759-6         Sec. 457.302.  MAXIMUM TAX RATE.  (a)  A board may not adopt

 759-7   a sales and use tax rate, including a rate increase, that when

 759-8   combined with the rates of all sales and use taxes imposed by all

 759-9   political subdivisions of this state having territory in the county

759-10   exceeds two percent in any location in the county.

759-11         (b)  An election by an authority to approve a sales and use

759-12   tax or increase the rate of the authority's sales and use tax has

759-13   no effect if:

759-14               (1)  the voters of the authority approve the

759-15   authority's sales and use tax rate or rate increase at an election

759-16   held on the same day on which the municipality or county having

759-17   territory in the jurisdiction of the authority adopts a sales and

759-18   use tax or an additional sales and use tax; and

759-19               (2)  the combined rates of all sales and use taxes

759-20   imposed by the authority and all political subdivisions of this

759-21   state would exceed two percent in any part of the territory in the

759-22   jurisdiction of the authority.

759-23         Sec. 457.303.  ELECTION TO CHANGE TAX RATE.  (a)  At an

759-24   election ordered under Section 457.301(b)(2), the ballots shall be

 760-1   printed to permit voting for or against the proposition:  "The

 760-2   increase (decrease) of the local sales and use tax rate of (name of

 760-3   authority) to (percentage)."

 760-4         (b)  The increase or decrease in the tax rate becomes

 760-5   effective only if it is approved by a majority of the votes cast.

 760-6         (c)  A notice of the election and a certified copy of the

 760-7   order canvassing the election results shall be:

 760-8               (1)  sent to the department and the comptroller; and

 760-9               (2)  filed in the deed records of the county.

760-10         Sec. 457.304.  SALES TAX:  EFFECTIVE DATES.  (a)  An

760-11   authority's sales and use tax takes effect on the first day of the

760-12   second calendar quarter that begins after the date the comptroller

760-13   receives a copy of the order required to be sent under Section

760-14   457.053(h).

760-15         (b)  An increase or decrease in the rate of an authority's

760-16   sales and use tax takes effect on:

760-17               (1)  the first day of the first calendar quarter that

760-18   begins after the date the comptroller receives the notice provided

760-19   under Section 457.303(c); or

760-20               (2)  the first day of the second calendar quarter that

760-21   begins after the date the comptroller receives the notice, if

760-22   within 10 days after the date of receipt of the notice the

760-23   comptroller gives written notice to the presiding officer of the

760-24   board that the comptroller requires more time to implement tax

 761-1   collection and reporting procedures.

 761-2            (Sections 457.305-457.350 reserved for expansion

 761-3           SUBCHAPTER H.  DISSOLUTION OF AUTHORITY; WITHDRAWAL

 761-4                           OF UNIT OF ELECTION

 761-5         Sec. 457.351.  ELECTION TO DISSOLVE AUTHORITY.  (a)  A board

 761-6   may order an election on the question of dissolving the authority.

 761-7         (b)  The board shall dissolve the authority if the

 761-8   dissolution is approved by a majority of the votes cast.

 761-9         (c)  The provisions of Section 457.053 that relate to the

761-10   notice and conduct of an election under that section apply to an

761-11   election to dissolve an authority unless a different requirement is

761-12   specified in this section.

761-13         (d)  The board shall send a notice of the election to the

761-14   department and the comptroller.

761-15         (e)  At the election, the ballots shall be printed to permit

761-16   voting for or against the proposition:  "Dissolution of (name of

761-17   authority)."

761-18         (f)  The board shall send a certified copy of the order

761-19   canvassing the election results to the department and the

761-20   comptroller and file a copy in the deed records of the county.

761-21         (g)  The repeal of an authority's sales and use tax under

761-22   this chapter takes effect on:

761-23               (1)  the first day of the first calendar quarter that

761-24   begins after the date the comptroller receives the notice of the

 762-1   dissolution of the authority; or

 762-2               (2)  the first day of the second calendar quarter that

 762-3   begins after the date the comptroller receives the notice, if

 762-4   within 10 days after the date of receipt of the notice the

 762-5   comptroller gives written notice to the presiding officer of the

 762-6   board that the comptroller requires more time to implement the

 762-7   repeal of the tax.

 762-8         Sec. 457.352.  WITHDRAWAL FROM AUTHORITY.  (a)  The governing

 762-9   body of a unit of election may order an election to withdraw the

762-10   unit from an authority.

762-11         (b)  On the determination by a governing body of a unit of

762-12   election that a petition for withdrawal under this chapter is

762-13   valid, the governing body shall order an election to withdraw the

762-14   unit of election from the authority.

762-15         (c)  An election to withdraw may not be ordered, and a

762-16   petition for an election to withdraw may not be accepted for

762-17   filing, more frequently than once during each period of 12 months

762-18   preceding the anniversary of the date of the election confirming

762-19   the authority.

762-20         Sec. 457.353.  PETITION FOR WITHDRAWAL.  (a)  At the request

762-21   of a qualified voter of a unit of election in an authority, the

762-22   municipal secretary or other clerk or administrator of the unit of

762-23   election shall deliver to the voter, in the number requested,

762-24   petition signature sheets for a petition to withdraw from the

 763-1   authority prepared, numbered, and authenticated by the municipal

 763-2   secretary or other official.  During the period when signatures on

 763-3   the petition may be obtained, the official shall authenticate and

 763-4   deliver additional petition signature sheets as requested by the

 763-5   voter.  Only one petition for withdrawal may be in circulation at a

 763-6   time.

 763-7         (b)  Each sheet of a petition must have a heading in capital

 763-8   letters as follows:

 763-9         "THIS PETITION IS TO REQUIRE AN ELECTION TO BE HELD IN (name

763-10         of the unit of election) TO DISSOLVE (name of authority) IN

763-11         (name of the unit of election) SUBJECT TO THE CONTINUED

763-12         COLLECTION OF SALES TAXES FOR THE PERIOD REQUIRED BY LAW."

763-13         (c)  In addition to the requirements of Section 277.002,

763-14   Election Code, to be valid a petition must:

763-15               (1)  be signed on authenticated petition sheets by not

763-16   less than 10 percent of the number of registered voters of the unit

763-17   of election as shown on the voter registration list of the county;

763-18               (2)  be filed with the secretary, clerk, or

763-19   administrator of the unit of election not later than the 60th day

763-20   after the date the first sheet of the petition was received under

763-21   Subsection (a);

763-22               (3)  contain signatures that are signed in ink or

763-23   indelible pencil by the voter; and

763-24               (4)  have affixed or printed on each sheet an affidavit

 764-1   that is executed before a notary public by the person who

 764-2   circulated the sheet and that is in the following form and

 764-3   substance:

 764-4         "STATE OF TEXAS

 764-5         "COUNTY OF _______________

 764-6               "I, ____________________, affirm that I personally

 764-7         witnessed each signer affix his or her signature to this page

 764-8         of this petition for the dissolution of (name of authority)

 764-9         in (name of unit of election).  I affirm to the best of my

764-10         knowledge and belief that each signature is the genuine

764-11         signature of the person whose name is signed and that the

764-12         date entered next to each signature is the date the signature

764-13         was affixed to this page.

764-14                                               _______________________

764-15               "Sworn to and subscribed before me this the ____ day of

764-16         ___, ____.

764-17         (SEAL)                        _______________________________

764-18                                        Notary Public, State of Texas"

764-19         (d)  Each sheet of the petition must be filed under

764-20   Subsection (c)(2) at the same time as a single filing.

764-21         (e)  The secretary, clerk, or administrator of a unit of

764-22   election in which a petition for withdrawal from an authority is

764-23   filed shall examine the petition and file with the governing body

764-24   of the unit a report stating whether the petition, in the opinion

 765-1   of the secretary, clerk, or administrator, is valid.

 765-2         (f)  On receipt of a petition and a report under Subsection

 765-3   (e), the governing body shall examine the petition to determine

 765-4   whether the petition is valid.  The governing body may hold public

 765-5   hearings and conduct or order investigations as appropriate to make

 765-6   the determination.  The governing body's determination is

 765-7   conclusive of the issues.

 765-8         (g)  The governing body of a unit of election that receives

 765-9   an invalid petition shall reject the petition.

765-10         (h)  A petition that is rejected is void, and the petition

765-11   and each sheet of the rejected petition may not be used in

765-12   connection with a subsequent petition.

765-13         Sec. 457.354.  WITHDRAWAL ELECTION.  (a)  An election to

765-14   withdraw from an authority must be held on the first applicable

765-15   uniform election date occurring after the expiration of 12 calendar

765-16   months after the date the governing body orders the election.

765-17         (b)  The governing body shall give notice of the election to

765-18   the board, the department, and the comptroller immediately on

765-19   calling the election.

765-20         (c)  At the election, the ballots shall be printed to permit

765-21   voting for or against the proposition:  "Shall the (name of

765-22   authority) be continued in (name of unit of election)?"

765-23         (d)  If a majority of the votes received on the measure in an

765-24   election favor the proposition, the authority continues in the unit

 766-1   of election.

 766-2         (e)  If less than a majority of the votes received on the

 766-3   measure in the election favor the proposition, the authority ceases

 766-4   in the unit of election on the day after the date of the canvass of

 766-5   the election.

 766-6         (f)  On the effective date of a withdrawal from an authority:

 766-7               (1)  the authority shall cease providing transportation

 766-8   services in the withdrawn unit of election; and

 766-9               (2)  the financial obligations of the authority

766-10   attributable to the withdrawn unit of election cease to accrue.

766-11         (g)  Withdrawal from an authority does not affect the right

766-12   of the authority to travel through the territory of the unit of

766-13   election to provide service to a unit of election that is a part of

766-14   the authority.

766-15         Sec. 457.355.  PROCEDURE AFTER WITHDRAWAL ELECTION.  (a)

766-16   Until the amount of revenue from an authority's sales and use tax

766-17   collected in a withdrawn unit of election after the effective date

766-18   of withdrawal and paid to the authority equals the total financial

766-19   obligation of the unit, the sales and use tax continues to be

766-20   collected in the territory of the election unit.

766-21         (b)  After the amount described by Subsection (a) has been

766-22   collected, the comptroller shall discontinue collecting the tax in

766-23   the territory of the unit of election.

766-24         (c)  The total financial obligation of a withdrawn unit of

 767-1   election to the authority is an amount equal to:

 767-2               (1)  the unit's apportioned share of the authority's

 767-3   outstanding obligations; and

 767-4               (2)  the amount, not computed under Subdivision (1),

 767-5   that is necessary and appropriate to allocate to the unit because

 767-6   of financial obligations of the authority that specifically relate

 767-7   to the unit.

 767-8         (d)  An authority's outstanding obligation under Subsection

 767-9   (c)(1) is the sum of:

767-10               (1)  the obligations of the authority authorized in the

767-11   budget of, and contracted for by, the authority;

767-12               (2)  outstanding contractual obligations for capital or

767-13   other expenditures, including expenditures for a subsequent year,

767-14   the payment of which is not made or provided for from the proceeds

767-15   of notes, bonds, or other obligations;

767-16               (3)  payments due or to become due in a subsequent year

767-17   on notes, bonds, or other securities or obligations for debt issued

767-18   by the authority;

767-19               (4)  the amount required by the authority to be

767-20   reserved for all years to comply with financial covenants made with

767-21   lenders, note or bond holders, or other creditors or contractors;

767-22   and

767-23               (5)  the amount necessary for the full and timely

767-24   payment of the obligations of the authority, to avoid a default or

 768-1   impairment of those obligations, including contingent liabilities.

 768-2         (e)  The apportioned share of a unit's obligation is the

 768-3   amount of the obligation times a fraction, the numerator of which

 768-4   is the number of inhabitants of the withdrawing unit of election

 768-5   and the denominator of which is the number of inhabitants of the

 768-6   authority, including the number of inhabitants of the unit.

 768-7         (f)  The board shall determine the amount of each component

 768-8   of the computations required under this section, including the

 768-9   components of the unit's apportioned share, as of the effective

768-10   date of withdrawal.  The number of inhabitants shall be determined

768-11   according to the most recent and available applicable data of an

768-12   agency of the United States.

768-13         (g)  The board shall certify to a withdrawn unit of election

768-14   and to the comptroller the total financial obligation of the unit

768-15   to the authority as determined under this section.

768-16         (b)  Article 1118z-1, Revised Statutes, as added by Section

768-17   1, Chapter 786 (S.B. No. 1388), Acts of the 74th Legislature,

768-18   Regular Session, 1995, is repealed.

768-19         (c)  A confirmation election may not be held under Chapter

768-20   457, Transportation Code, as added by this section, before

768-21   September 1, 1997.

768-22         SECTION 30.36.  (a)  Subtitle K, Title 6, Transportation

768-23   Code, is amended to codify Chapter 645 (H.B. No. 2588), Acts of the

768-24   74th Legislature, Regular Session, 1995 (Article 6663c-1, Vernon's

 769-1   Texas Civil Statutes), by adding Chapter 458 to read as follows:

 769-2             CHAPTER 458.  RURAL AND URBAN TRANSIT DISTRICTS

 769-3         Sec. 458.001.  DEFINITIONS.  In this chapter:

 769-4               (1)  "Public transportation" means mass transportation

 769-5   of passengers and their hand-carried packages or baggage on a

 769-6   regular and continuing basis by means of surface, fixed guideway,

 769-7   or underground transportation or transit, other than aircraft,

 769-8   taxicab, ambulance, or emergency vehicle.

 769-9               (2)  "Rural public transportation provider" means:

769-10                     (A)  a nonprofit entity, local governmental body

769-11   created under Chapter 791, Government Code, or political

769-12   subdivision of this state, which on August 31, 1995, provided rural

769-13   public transportation services and received state or federal public

769-14   transportation money through the department, the Federal Transit

769-15   Administration, or the administration's successor; or

769-16                     (B)  a nonprofit entity, local governmental body

769-17   created under Chapter 791, Government Code, or political

769-18   subdivision of this state, which after September 1, 1995, provides

769-19   rural public transportation services and receives state or federal

769-20   public transportation money through the department, the Federal

769-21   Transit Administration, or the administration's successor.

769-22               (3)  "Rural transit district" means a political

769-23   subdivision of this state that provides and coordinates rural

769-24   public transportation in its territory.  The term includes a rural

 770-1   public transportation provider within the meaning of Chapter 456

 770-2   that on August 31, 1995, received public transportation money

 770-3   through the department.

 770-4               (4)  "Urban transit district" means a local

 770-5   governmental body or political subdivision of this state that

 770-6   operates a public transportation system in an urbanized area with a

 770-7   population of more than 50,000 but less than 200,000.  The term

 770-8   includes a small urban transportation provider under Chapter 456

 770-9   that on September 1, 1994, received public transportation money

770-10   through the department.

770-11         Sec. 458.002.  CONTRACTS WITH DEPARTMENT FOR PROVISION OF

770-12   RURAL PUBLIC TRANSPORTATION SERVICES.  A public transportation

770-13   provider may contract with the department to provide rural public

770-14   transportation services only if the provider becomes a rural

770-15   transit district in compliance with this chapter.

770-16         Sec. 458.003.  RURAL PUBLIC TRANSPORTATION CONFERENCE.  (a)

770-17   The commissioners court of a county in which no provider on August

770-18   31, 1995, was receiving public transportation funds through the

770-19   department must convene a rural public transportation conference

770-20   before creating a rural transit district.

770-21         (b)  If the commissioners courts of two or more adjacent

770-22   counties that are not served by a rural transit district determine

770-23   that the need for public transportation services extends across the

770-24   boundaries of the counties, those courts may convene a multicounty

 771-1   rural public transportation conference.

 771-2         (c)  Written notice of a conference shall be given to the

 771-3   public and to the governing body of each municipality in each

 771-4   county before the 30th day before the conference is convened.

 771-5         (d)  A conference must evaluate whether a rural transit

 771-6   district to provide public transportation services in the area

 771-7   should be created.  The conference must consider whether existing

 771-8   rural transit districts have the capacity to provide public

 771-9   transportation service in that area.

771-10         Sec. 458.004.  ATTENDANCE AT CONFERENCE.  (a)  An elected

771-11   representative selected by the governing body of each municipality

771-12   in each affected county and the commissioners court of each

771-13   affected county shall attend a rural public transportation

771-14   conference.

771-15         (b)  Representatives attending the conference shall elect a

771-16   presiding officer from the representatives.

771-17         Sec. 458.005.  PUBLIC HEARING ON CREATION OF RURAL

771-18   TRANSPORTATION DISTRICT; NOTICE.  (a)  If a conference finds it

771-19   advisable to create a new rural transit district, the conference

771-20   shall set a public hearing on the creation of the district.

771-21         (b)  Before the public hearing is convened, the conference

771-22   shall:

771-23               (1)  identify each county that will be included in the

771-24   territory of the proposed rural transit district; and

 772-1               (2)  advise each component county and municipality in

 772-2   the proposed territory.

 772-3         (c)  Notice of the public hearing shall be published once a

 772-4   week for two consecutive weeks in at least one newspaper of general

 772-5   circulation in the territory of the proposed district.  The notice

 772-6   must include:

 772-7               (1)  the time and place of the hearing; and

 772-8               (2)  a description of and a map showing the boundaries

 772-9   of the proposed district.

772-10         (d)  At the hearing, any interested person may appear and be

772-11   heard on any matter relating to the effect of the formation of the

772-12   proposed rural transit district.

772-13         (e)  After the hearing is concluded, the conference may by

772-14   resolution create and establish the boundaries of a rural transit

772-15   district if the conference determines that:

772-16               (1)  the creation of the rural transit district will

772-17   serve the general public and be conducive to the welfare and

772-18   benefit of persons and property in the district; and

772-19               (2)  the general public cannot be better served by an

772-20   existing rural transit district.

772-21         (f)  A nonurbanized area of a county may not be excluded from

772-22   the district.

772-23         Sec. 458.006.  GOVERNING BODY OF RURAL TRANSIT DISTRICT.  (a)

772-24   Not later than the 60th day after the date the boundaries of a

 773-1   rural transit district are established, the commissioners court of

 773-2   each county and one elected representative from the governing body

 773-3   of each municipality in the territory of the district shall provide

 773-4   for the selection of the governing body of the district.

 773-5         (b)  The governing body of the district consists of elected

 773-6   officers who are selected by and serve at the pleasure of the

 773-7   governing bodies of the component municipalities in the district

 773-8   and the commissioners court of each county in the district.

 773-9         (c)  The number of members of the governing body of a

773-10   single-county rural transit district may not exceed nine.  The

773-11   number of members of the governing body of a multicounty district

773-12   may not exceed 15, except that each member county is entitled to at

773-13   least one representative on the governing body.

773-14         Sec. 458.007.  UNSERVED RURAL AREAS MAY JOIN RURAL TRANSIT

773-15   DISTRICT.  An unserved rural area may join an existing rural

773-16   transit district on the adoption of a resolution by the

773-17   commissioners court of the county to that effect.

773-18         Sec. 458.008.  MERGER OF RURAL TRANSIT DISTRICTS.  (a)  Two

773-19   or more rural transit districts may merge into a new rural transit

773-20   district.  The territory of the new district must include all the

773-21   territory of each merged district.

773-22         (b)  The merger is made when the governing board of each

773-23   district by resolution adopts an interlocal agreement that

773-24   specifies:

 774-1               (1)  the boundaries of each district to be merged and

 774-2   of the new district;

 774-3               (2)  the terms of the merger; and

 774-4               (3)  a schedule for execution of the merger.

 774-5         Sec. 458.009.  URBAN TRANSIT DISTRICTS.  (a)  A public

 774-6   transportation provider that on September 1, 1994, was not

 774-7   receiving public transportation money through the department may

 774-8   contract with the department to provide small urban public

 774-9   transportation services and receive state or federal public

774-10   transportation money through the department, the Federal Transit

774-11   Administration, or the administration's successor only if the

774-12   provider becomes an urban transit district as provided by this

774-13   section.

774-14         (b)  The public transportation provider must be:

774-15               (1)  a local governmental body created under Chapter

774-16   791, Government Code; or

774-17               (2)  a political subdivision of this state.

774-18         (c)  The governing body of the provider may by resolution

774-19   create a small urban transit district to serve the general public.

774-20         Sec. 458.010.  GENERAL POWERS OF RURAL TRANSIT DISTRICTS.

774-21   (a)  In addition to a power expressly granted by this chapter, a

774-22   rural transit district has any power necessary to carry out a

774-23   purpose of the district.

774-24         (b)  A rural transit district may contract with the United

 775-1   States, a state or state agency, another rural transit district, an

 775-2   urban transit district, a metropolitan or regional transit

 775-3   authority, a county, a municipality, a metropolitan municipal

 775-4   corporation, a special district, a governmental agency in or

 775-5   outside this state, or any private person, firm, or corporation:

 775-6               (1)  to receive a gift or grant or secure a loan or

 775-7   advance for a preliminary planning and feasibility study; or

 775-8               (2)  for the design, construction, or operation of a

 775-9   transportation facility, including an intermodal transportation

775-10   facility.

775-11         Sec. 458.011.  ADDITIONAL POWERS OF RURAL OR URBAN TRANSIT

775-12   DISTRICT.  A rural or urban transit district may contract with any

775-13   governmental agency or private person, firm, or corporation for:

775-14               (1)  the use by either party to the contract of all or

775-15   any part of a facility, structure, interest in land, air right over

775-16   land, or right-of-way that is owned, leased, or held by the other

775-17   party; or

775-18               (2)  the purpose of planning, constructing, or

775-19   operating a facility or performing a service that the rural transit

775-20   district is authorized to operate or perform.

775-21         Sec. 458.012.  OPERATION OF LOCAL PUBLIC PASSENGER

775-22   TRANSPORTATION IN RURAL TRANSIT DISTRICT PROHIBITED.  (a)  From the

775-23   effective date a rural transit district begins providing a public

775-24   transportation service, another person or private corporation may

 776-1   not operate a local public passenger transportation service in the

 776-2   rural transit district, except as provided by Subsection (b).

 776-3         (b)  Subsection (a) does not apply to:

 776-4               (1)  the operation of:

 776-5                     (A)  a taxicab; or

 776-6                     (B)  a bus owned or operated by a corporation or

 776-7   organization exclusively for a purpose of the corporation or

 776-8   organization and for the use of which a fee or fare is not charged;

 776-9               (2)  an intercity passenger rail service;

776-10               (3)  an intercity bus carrier; or

776-11               (4)  a rural public transportation provider operating

776-12   under an agreement entered into under this chapter that provides

776-13   local public passenger transportation service.

776-14         (b)  Chapter 645 (H.B. No. 2588), Acts of the 74th

776-15   Legislature, Regular Session, 1995 (Article 6663c-1, Vernon's Texas

776-16   Civil Statutes), is repealed.

776-17         SECTION 30.37.  (a)  Subchapter B, Chapter 501,

776-18   Transportation Code, is amended to conform to Section 5, Chapter

776-19   1015 (S.B. No. 1445), Acts of the 74th Legislature, Regular

776-20   Session, 1995, by adding Section 501.0234 to read as follows:

776-21         Sec. 501.0234.  DUTY OF VEHICLE DEALER ON SALE OF CERTAIN

776-22   VEHICLES.  (a)  A person who sells at the first or a subsequent

776-23   sale a motor vehicle and who holds a general distinguishing number

776-24   issued under Chapter 503 or the Texas Motor Vehicle Commission Code

 777-1   (Article 4413(36), Vernon's Texas Civil Statutes) shall:

 777-2               (1)  in the time and manner provided by law, apply, in

 777-3   the name of the purchaser of the vehicle, for the registration of

 777-4   the vehicle and a certificate of title for the vehicle and file

 777-5   with the appropriate designated agent each document necessary to

 777-6   transfer title to and register the vehicle; and at the same time

 777-7               (2)  remit any required motor vehicle sales tax.

 777-8         (b)  This section does not apply to a vehicle:

 777-9               (1)  that has been declared a total loss by an

777-10   insurance company in the settlement or adjustment of a claim; or

777-11               (2)  for which the certificate of title has been

777-12   surrendered in exchange for:

777-13                     (A)  a salvage certificate of title issued under

777-14   this chapter;

777-15                     (B)  a nonrepairable motor vehicle certificate of

777-16   title issued under this chapter;

777-17                     (C)  a certificate of authority issued under

777-18   Subchapter D, Chapter 683; or

777-19                     (D)  an ownership document issued by another

777-20   state that is comparable to a document described by Paragraphs

777-21   (A)-(C).

777-22         (c)  Each duty imposed by this section on the seller of a

777-23   motor vehicle is solely that of the seller.

777-24         (b)  Section 5, Chapter 1015 (S.B. No. 1445), Acts of the

 778-1   74th Legislature, Regular Session, 1995, is repealed.

 778-2         SECTION 30.38.  (a)  Subchapter B, Chapter 501,

 778-3   Transportation Code, is amended to conform to Section 8.05, Chapter

 778-4   655 (H.B. No. 1863), Acts of the 74th Legislature, Regular Session,

 778-5   1995, by adding Section 501.0235 to read as follows:

 778-6         Sec. 501.0235.  SOCIAL SECURITY NUMBER OF TITLE APPLICANT:

 778-7   AUTOMATED REGISTRATION AND TITLE SYSTEM.  (a)  The department shall

 778-8   require an applicant for a certificate of title to provide the

 778-9   applicant's social security number to the department.

778-10         (b)  The department or the county shall enter the applicant's

778-11   social security number in the department's electronic database but

778-12   may not print that number on the certificate of title.

778-13         (c)  This section applies only in a county in which the

778-14   department's automated registration and title system has been

778-15   implemented.

778-16         (b)  Section 8.05, Chapter 655 (H.B. No. 1863), Acts of the

778-17   74th Legislature, Regular Session, 1995, is repealed.

778-18         SECTION 30.39.  (a)  Section 501.031, Transportation Code, is

778-19   amended to conform to Sections 1 and 2, Chapter 540 (S.B. No.

778-20   1435), Acts of the 74th Legislature, Regular Session, 1995, to read

778-21   as follows:

778-22         Sec. 501.031.  RIGHTS OF SURVIVORSHIP AGREEMENT.  (a)  The

778-23   department shall include on each certificate of title a rights of

778-24   survivorship agreement form.  The form must:

 779-1               (1)  provide that if the agreement is signed by a

 779-2   husband and wife jointly with the interest of either spouse who

 779-3   dies to survive to the surviving spouse; and

 779-4               (2)  provide blanks for the signatures of the husband

 779-5   and wife.

 779-6         (b)  If the vehicle is registered in the name of the husband,

 779-7   the wife, or both, and if the rights of survivorship agreement is

 779-8   signed by both the husband and the wife:

 779-9               (1)  ownership of the vehicle may be transferred only

779-10   by both spouses acting jointly, if both spouses are alive; and

779-11               (2)  on the death of one of the spouses:

779-12                     (A)  ownership of the vehicle may be transferred

779-13   by the surviving spouse by transferring the certificate of title,

779-14   in the manner otherwise required by law for transfer of ownership

779-15   of the vehicle, with a copy of the death certificate of the

779-16   deceased spouse attached to the certificate of title; and

779-17                     (B)  the department shall issue a new certificate

779-18   of title in the name of the surviving spouse or the surviving

779-19   spouse's transferee on presentation of a copy of the certificate of

779-20   title with the death certificate of the deceased spouse attached

779-21   without requiring additional evidence of the spouse's death.

779-22         (c)  A rights of survivorship agreement under this section

779-23   may be revoked only by surrender of the certificate of title to the

779-24   department and joint application by the husband and wife for a new

 780-1   title in the name of the person or persons designated in the

 780-2   application [An agreement providing that a motor vehicle is to be

 780-3   held by a husband and wife jointly with the interest of either

 780-4   spouse who dies passing to the surviving spouse is valid only if

 780-5   the agreement is:]

 780-6               [(1)  signed by both spouses; and]

 780-7               [(2)  submitted with the application for certificate of

 780-8   title.]

 780-9         [(b)  If a valid rights of survivorship agreement is made and

780-10   submitted, the department shall issue the certificate of title for

780-11   the motor vehicle in the name of both spouses].

780-12         (b)  Sections 1 and 2, Chapter 540 (S.B. No. 1435), Acts of

780-13   the 74th Legislature, Regular Session, 1995, are repealed.

780-14         SECTION 30.40.  (a)  Subchapter B, Chapter 501,

780-15   Transportation Code, is amended to conform to Section 2, Chapter

780-16   443 (H.B. No. 1225), Acts of the 74th Legislature, Regular Session,

780-17   1995, by adding Section 501.035 to read as follows:

780-18         Sec. 501.035.  CERTIFICATE OF TITLE FOR FORMER MILITARY

780-19   VEHICLE.  (a)  Notwithstanding any other law, the department shall

780-20   issue a certificate of title for a former military vehicle that is

780-21   not registered under the laws of this state if all other

780-22   requirements for issuance of a certificate of title are met.

780-23         (b)  In this section, "former military vehicle" has the

780-24   meaning assigned by Section 502.275(o).

 781-1         (b)  Section 2, Chapter 443 (H.B. No. 1225), Acts of the 74th

 781-2   Legislature, Regular Session, 1995, is repealed.

 781-3         SECTION 30.41.  Section 501.074(d), Transportation Code, is

 781-4   repealed to conform to the repeal of the law from which it was

 781-5   derived by Section 2, Chapter 540 (S.B. No. 1435), Acts of the 74th

 781-6   Legislature, Regular Session, 1995.

 781-7         SECTION 30.42.  (a)  Section 501.134, Transportation Code, is

 781-8   amended to conform to Section 6, Chapter 1015 (S.B. No. 1445), Acts

 781-9   of the 74th Legislature, Regular Session, 1995, by amending

781-10   Subsection (a) and adding Subsections (f)-(i) to read as follows:

781-11         (a)  If an original or duplicate original certificate of

781-12   title is lost or destroyed, the owner or lienholder disclosed on

781-13   the certificate may obtain, in the manner provided by this section

781-14   and department rule, a certified copy of the lost or destroyed

781-15   certificate of title directly from the department by applying on a

781-16   form prescribed by the department and paying a fee of $2.  A fee

781-17   collected under this subsection shall be deposited to the credit of

781-18   the state highway fund and may be spent only as provided by Section

781-19   501.138.

781-20         (f)  Except as provided by Subsection (g), the department may

781-21   not issue a certified copy of a certificate of title before the

781-22   fourth business day after the date application is made.

781-23         (g)  The department may issue a certified copy of a

781-24   certificate of title before the fourth business day after the date

 782-1   application is made only if the applicant:

 782-2               (1)  is the registered owner of the vehicle, the holder

 782-3   of a recorded lien against the vehicle, or a verified agent of the

 782-4   owner or lienholder; and

 782-5               (2)  submits personal identification, including a

 782-6   photograph, issued by an agency of this state or the United States.

 782-7         (h)  If the applicant is the agent of the owner or lienholder

 782-8   of the vehicle and is applying on behalf of the owner or

 782-9   lienholder, the applicant must submit verifiable proof that the

782-10   person is the agent of the owner or lienholder.

782-11         (i)  If an applicant for a certified copy of a certificate of

782-12   title is a person other than a person described by Subsection

782-13   (g)(1), the department may issue a certified copy of the

782-14   certificate of title only by mail.

782-15         (b)  Section 6, Chapter 1015 (S.B. No. 1445), Acts of the

782-16   74th Legislature, Regular Session, 1995, is repealed.

782-17         SECTION 30.43.  (a)  Subchapter E, Chapter 501,

782-18   Transportation Code, is amended to conform to Section 1, Chapter

782-19   394 (H.B. No. 2151), Acts of the 74th Legislature, Regular Session,

782-20   1995, to read as follows:

782-21         SUBCHAPTER E.  NONREPAIRABLE AND SALVAGE MOTOR VEHICLES

782-22         Sec. 501.0911.  DEFINITIONS.  (a)  In this subchapter:

782-23               (1)  "Actual cash value" means the market value of a

782-24   motor vehicle as determined:

 783-1                     (A)  from publications commonly used by the

 783-2   automotive and insurance industries to establish the values of

 783-3   motor vehicles; or

 783-4                     (B)  if the entity determining the value is an

 783-5   insurance company, by any other procedure recognized by the

 783-6   insurance industry, including market surveys, that is applied by

 783-7   the company in a uniform manner.

 783-8               (2)  "Automobile recycler" means a person in the

 783-9   business of dealing in salvage motor vehicles for the purpose of

783-10   dismantling the vehicles to sell used parts or a person otherwise

783-11   engaged in the business of acquiring, selling, or dealing in

783-12   salvage parts for reuse or resale as parts.  The term includes a

783-13   dealer in used motor vehicle parts.

783-14               (3)  "Casual sale" means the sale at auction of not

783-15   more than one nonrepairable motor vehicle or late model salvage

783-16   motor vehicle to the same person during a calendar year.

783-17               (4)  "Insurance company" means a person authorized to

783-18   write automobile insurance in this state or an out-of-state

783-19   insurance company that pays a loss claim for a motor vehicle in

783-20   this state.

783-21               (5)  "Late model motor vehicle" means a motor vehicle

783-22   with the same model year as the current calendar year or one of the

783-23   five calendar years preceding that calendar year.

783-24               (6)  "Late model salvage motor vehicle" or "salvage

 784-1   motor vehicle" means a late model motor vehicle, other than a late

 784-2   model vehicle that is a nonrepairable motor vehicle, that is

 784-3   damaged to the extent that the total estimated cost of repairs,

 784-4   other than repairs related to hail damage but including parts and

 784-5   labor, is equal to or greater than an amount equal to 75 percent of

 784-6   the actual cash value of the vehicle in its predamaged condition.

 784-7               (7)  "Major component part" means one of the following

 784-8   parts of a motor vehicle:

 784-9                     (A)  the engine;

784-10                     (B)  the transmission;

784-11                     (C)  the frame;

784-12                     (D)  the right or left front fender;

784-13                     (E)  the hood;

784-14                     (F)  a door allowing entrance to or egress from

784-15   the passenger compartment of the vehicle;

784-16                     (G)  the front or rear bumper;

784-17                     (H)  the right or left quarter panel;

784-18                     (I)  the deck lid, tailgate, or hatchback;

784-19                     (J)  the cargo box of a pickup truck;

784-20                     (K)  the cab of a truck; or

784-21                     (L)  the body of a passenger vehicle.

784-22               (8)  "Nonrepairable motor vehicle" means a late model

784-23   motor vehicle that is damaged or missing a major component part to

784-24   the extent that the total estimated cost of repairs to rebuild or

 785-1   reconstruct the vehicle, including parts and labor other than the

 785-2   costs of materials and labor for repainting the vehicle and

 785-3   excluding sales taxes on the total cost of the repairs, and

 785-4   excluding the cost of repairs to repair hail damage, is equal to or

 785-5   greater than an amount equal to 95 percent of the actual cash value

 785-6   of the vehicle in its predamaged condition.

 785-7               (9)  "Nonrepairable motor vehicle certificate of title"

 785-8   means a document issued by the department that evidences ownership

 785-9   of a nonrepairable motor vehicle.

785-10               (10)  "Older model motor vehicle" means a motor vehicle

785-11   that was manufactured in a model year before the sixth preceding

785-12   model year, including the current model year.

785-13               (11)  "Other negotiable evidence of ownership" means a

785-14   document other than a Texas certificate of title or a salvage

785-15   certificate of title that relates to a motor vehicle that the

785-16   department considers sufficient to support issuance of a Texas

785-17   certificate of title for the vehicle.

785-18               (12)  "Out-of-state buyer" means a person licensed in

785-19   an automotive business by another state or jurisdiction if the

785-20   department has listed the holders of such a license as permitted

785-21   purchasers of salvage motor vehicles or nonrepairable motor

785-22   vehicles based on substantially similar licensing requirements and

785-23   on whether salvage vehicle dealers licensed in Texas are permitted

785-24   to purchase salvage motor vehicles or nonrepairable motor vehicles

 786-1   in the other state or jurisdiction.

 786-2               (13)  "Rebuilder" means a person who acquires and

 786-3   repairs, for operation on public highways, five or more late model

 786-4   salvage motor vehicles in any 12-month period.

 786-5               (14)  "Salvage motor vehicle certificate of title"

 786-6   means any document issued by the department that evidences

 786-7   ownership of a salvage motor vehicle.

 786-8               (15)  "Salvage vehicle dealer" has the meaning assigned

 786-9   by Section 1.01, Article 6687-1a, Revised Statutes.

786-10         (b)  For purposes of this subchapter:

786-11               (1)  the estimated cost of repair parts shall be

786-12   determined by using a manual of repair costs or other instrument

786-13   that is generally recognized and commonly used in the motor vehicle

786-14   insurance industry to determine those costs or an estimate of the

786-15   actual cost of the repair parts; and

786-16               (2)  the estimated labor costs shall be computed by

786-17   using the hourly rate and time allocations that are reasonable and

786-18   commonly assessed in the repair industry in the community in which

786-19   the repairs are performed.

786-20         Sec. 501.0912.  INSURANCE COMPANY TO SURRENDER CERTIFICATES

786-21   OF TITLE TO CERTAIN LATE MODEL SALVAGE MOTOR VEHICLES.  (a)  An

786-22   insurance company that is licensed to conduct business in this

786-23   state and that acquires ownership of a late model salvage motor

786-24   vehicle through payment of a claim shall surrender a properly

 787-1   assigned certificate of title to the department, on a form

 787-2   prescribed by the department.

 787-3         (b)  For a vehicle described by Section 501.0911(6) but not

 787-4   by Section 501.0911(8), the insurance company shall apply for a

 787-5   salvage motor vehicle certificate of title.  For a vehicle

 787-6   described by Section 501.0911(8), the insurance company shall apply

 787-7   for a nonrepairable motor vehicle certificate of title.

 787-8         (c)  An insurance company may not sell a late model salvage

 787-9   motor vehicle to which this section applies unless the department

787-10   has issued a salvage motor vehicle certificate of title or a

787-11   nonrepairable motor vehicle certificate of title for the vehicle or

787-12   a comparable ownership document has been issued by another state or

787-13   jurisdiction for the vehicle.

787-14         (d)  An insurance company may sell a late model salvage motor

787-15   vehicle to which this section applies, or assign a salvage motor

787-16   vehicle certificate of title or a nonrepairable motor vehicle

787-17   certificate of title for the vehicle, only to a salvage vehicle

787-18   dealer, an out-of-state buyer, a buyer in a casual sale at auction,

787-19   or a person described by Subsection (g), Article 6687-2b, Revised

787-20   Statutes.  If the vehicle is not a late model salvage motor vehicle

787-21   or a nonrepairable motor vehicle, the insurance company is not

787-22   required to surrender the regular certificate of title for the

787-23   vehicle or to be issued a salvage motor vehicle certificate of

787-24   title or a nonrepairable motor vehicle certificate of title for the

 788-1   vehicle.

 788-2         Sec. 501.0913.  INSURANCE COMPANY TO DELIVER CERTIFICATES OF

 788-3   TITLE TO CERTAIN MOTOR VEHICLES.  (a)  If an insurance company

 788-4   acquires ownership of a motor vehicle other than a late model

 788-5   salvage motor vehicle or a nonrepairable motor vehicle through

 788-6   payment of a claim, the company shall, on delivery of the vehicle

 788-7   to a buyer of the vehicle, deliver the buyer a properly assigned

 788-8   certificate of title for the vehicle.

 788-9         (b)  An insurance company or other person who acquires

788-10   ownership of a motor vehicle other than a late model salvage motor

788-11   vehicle or a nonrepairable motor vehicle may voluntarily and on

788-12   proper application obtain a salvage motor vehicle certificate of

788-13   title or a nonrepairable motor vehicle certificate of title for the

788-14   vehicle.

788-15         Sec. 501.0914.  NONAPPLICABILITY.  Sections 501.0912 and

788-16   501.0913 do not apply to a vehicle that has been stolen and

788-17   recovered unless the damage to the vehicle causes the vehicle to be

788-18   a salvage motor vehicle or a nonrepairable motor vehicle.

788-19         Sec. 501.0915.  INSURANCE COMPANY TO SUBMIT REPORT TO

788-20   DEPARTMENT.  (a)  If after payment of a total loss claim on a late

788-21   model salvage motor vehicle or a nonrepairable motor vehicle an

788-22   insurance company does not acquire ownership of the vehicle, the

788-23   insurance company shall submit to the department, before the 31st

788-24   day after the date of the payment of the claim, on the form

 789-1   prescribed by the department, a report stating that:

 789-2               (1)  the insurance company has paid a total loss claim

 789-3   on the vehicle; and

 789-4               (2)  the insurance company has not acquired ownership

 789-5   of the vehicle.

 789-6         (b)  The owner of a late model salvage motor vehicle to which

 789-7   this section applies may not transfer ownership of the vehicle by

 789-8   sale or otherwise unless the department has issued a salvage motor

 789-9   vehicle certificate of title or a nonrepairable motor vehicle

789-10   certificate of title for the vehicle or a comparable ownership

789-11   document has been issued by another state or jurisdiction for the

789-12   vehicle.

789-13         Sec. 501.0916.  SALE, TRANSFER, OR RELEASE OF LATE MODEL

789-14   SALVAGE MOTOR VEHICLE.  (a)  A person who owns a late model salvage

789-15   motor vehicle may not sell, transfer, or release the vehicle to a

789-16   person other than a salvage vehicle dealer, the former owner of the

789-17   vehicle, a governmental entity, an out-of-state buyer, a buyer in a

789-18   casual sale at auction, or a person described by Subsection (g),

789-19   Article 6687-2b, Revised Statutes, and shall deliver to that person

789-20   a properly assigned certificate of title for the vehicle.

789-21         (b)  If the assigned certificate of title is not a salvage

789-22   motor vehicle certificate of title, a nonrepairable motor vehicle

789-23   certificate of title, or a comparable ownership document issued by

789-24   another state or jurisdiction, the purchaser shall, not later than

 790-1   the 10th day after the date the purchaser receives the certificate

 790-2   of title from the owner:

 790-3               (1)  surrender the certificate of title to the

 790-4   department; and

 790-5               (2)  apply for a salvage motor vehicle certificate of

 790-6   title or a nonrepairable motor vehicle certificate of title for the

 790-7   vehicle, as appropriate.

 790-8         (c)  A salvage vehicle dealer that acquires ownership of a

 790-9   late model salvage motor vehicle or a nonrepairable motor vehicle

790-10   for the purpose of dismantling, scrapping, or destroying the

790-11   vehicle shall, before the 31st day after the date the dealer

790-12   acquires the vehicle, submit to the department, on the form

790-13   prescribed by the department, a report stating that the vehicle

790-14   will be dismantled, scrapped, or destroyed, accompanied by a

790-15   properly assigned regular certificate of title, salvage motor

790-16   vehicle certificate of title, nonrepairable motor vehicle

790-17   certificate of title, or comparable ownership document issued by

790-18   another state or jurisdiction for the vehicle.

790-19         (d)  On receipt of the report and the certificate of title,

790-20   the department shall issue the salvage vehicle dealer a receipt for

790-21   the certificate of title, salvage motor vehicle certificate of

790-22   title, nonrepairable motor vehicle certificate of title, or

790-23   comparable ownership document issued by another state or

790-24   jurisdiction.

 791-1         Sec. 501.0917.  SALVAGE VEHICLE DEALER TO SUBMIT REPORT TO

 791-2   DEPARTMENT.  A salvage vehicle dealer that acquires an older model

 791-3   vehicle for the purpose of dismantling, scrapping, or destroying

 791-4   the vehicle and that receives a properly assigned certificate of

 791-5   title for the vehicle shall, before the 31st day after the date the

 791-6   dealer acquires the vehicle:

 791-7               (1)  submit to the department, on the form prescribed

 791-8   by the department, a report stating that the vehicle will be

 791-9   dismantled, scrapped, or destroyed, accompanied by the properly

791-10   assigned regular certificate of title, salvage motor vehicle

791-11   certificate of title, nonrepairable motor vehicle certificate of

791-12   title, or comparable ownership document issued by another state or

791-13   jurisdiction for the vehicle; and

791-14               (2)  keep on the business premises of the dealer, until

791-15   the third anniversary of the date the report on the vehicle is

791-16   submitted to the department, a record of the vehicle.

791-17         Sec. 501.0918.  PERSON ACQUIRING LATE MODEL SALVAGE MOTOR

791-18   VEHICLE TO SURRENDER CERTIFICATE OF TITLE.  A person, other than a

791-19   salvage vehicle dealer or an insurance company licensed to do

791-20   business in this state, who acquires ownership of a late model

791-21   salvage motor vehicle or a nonrepairable motor vehicle that has not

791-22   been issued a salvage motor vehicle certificate of title, a

791-23   nonrepairable motor vehicle certificate of title, or a comparable

791-24   ownership document issued by another state or jurisdiction shall,

 792-1   before selling the vehicle, surrender the properly assigned

 792-2   certificate of title for the vehicle to the department and:

 792-3               (1)  if the vehicle is a vehicle described by Section

 792-4   501.0911(6) but not by Section 501.0911(8), apply to the department

 792-5   for a salvage motor vehicle certificate of title for the vehicle;

 792-6   or

 792-7               (2)  if the vehicle is a vehicle described by Section

 792-8   501.0911(8), apply to the department for a nonrepairable motor

 792-9   vehicle certificate of title for the vehicle.

792-10         Sec. 501.0919.  SALE OF CERTAIN LATE MODEL SALVAGE MOTOR

792-11   VEHICLES.  The owner of a late model salvage motor vehicle that has

792-12   been issued a salvage motor vehicle certificate of title or a

792-13   nonrepairable motor vehicle certificate of title may sell the

792-14   vehicle only to a salvage vehicle dealer in this state, an

792-15   out-of-state buyer, a buyer in a casual sale at auction, or a

792-16   person described by Subsection (g), Article 6687-2b, Revised

792-17   Statutes.

792-18         Sec. 501.0920.  APPLICATION FOR SALVAGE MOTOR VEHICLE

792-19   CERTIFICATE OF TITLE.  (a)  An application for a salvage motor

792-20   vehicle certificate of title or a nonrepairable motor vehicle

792-21   certificate of title must:

792-22               (1)  be made on a form prescribed by the department and

792-23   accompanied by a fee established by the department, not to exceed

792-24   an amount that is sufficient, when added to other fees collected

 793-1   under this chapter, to recover the actual costs to the department

 793-2   of issuing the certificate; and

 793-3               (2)  include, in addition to any other information

 793-4   required by the department:

 793-5                     (A)  the name and current address of the owner;

 793-6                     (B)  a description of the vehicle, including the

 793-7   make, style of body, model year, and vehicle identification number;

 793-8                     (C)  a description of the damage to the vehicle;

 793-9                     (D)  the estimated cost of repairs to the

793-10   vehicle, including parts and labor; and

793-11                     (E)  the predamaged actual cash value of the

793-12   vehicle.

793-13         (b)  On receipt of a complete application and the prescribed

793-14   application fee, the department shall, before the sixth business

793-15   day after the date the department receives the application, issue

793-16   the applicant a salvage motor vehicle certificate of title or a

793-17   nonrepairable motor vehicle certificate of title, as appropriate.

793-18         (c)  A nonrepairable motor vehicle certificate of title must

793-19   state on its face that, except as provided by Sections 501.0925 and

793-20   501.0927, the vehicle:

793-21               (1)  may not be issued a regular certificate of title

793-22   or registered in this state; and

793-23               (2)  may only be used for parts or scrap metal.

793-24         Sec. 501.0921.  POSSESSION AND OPERATION OF SALVAGE MOTOR

 794-1   VEHICLE.  (a)  A person who holds a salvage motor vehicle

 794-2   certificate of title is entitled to possess the vehicle, record a

 794-3   lien on the vehicle, transport the vehicle, and transfer ownership

 794-4   of the vehicle.

 794-5         (b)  A vehicle for which a salvage motor vehicle certificate

 794-6   of title is the most current title may not be operated on a public

 794-7   highway.

 794-8         Sec. 501.0922.  APPLICATION FOR REGULAR CERTIFICATE OF TITLE

 794-9   FOR SALVAGE MOTOR VEHICLE.  (a)  A vehicle for which a salvage

794-10   motor vehicle certificate of title has been issued may be issued a

794-11   regular certificate of title only after application and, in

794-12   addition to any other requirement of law, only if the application:

794-13               (1)  describes each major component part used to repair

794-14   the vehicle and shows the identification number required by federal

794-15   law to be affixed to or inscribed on the part; and

794-16               (2)  is accompanied by a written statement signed by a

794-17   specially trained commissioned officer of the Department of Public

794-18   Safety certifying to the department that:

794-19                     (A)  the vehicle identification numbers and parts

794-20   identification numbers are accurate;

794-21                     (B)  the applicant has proof that the applicant

794-22   owns the parts used to repair the vehicle; and

794-23                     (C)  the vehicle may be safely operated and

794-24   complies with all applicable motor vehicle safety standards of this

 795-1   state.

 795-2         (b)  The Department of Public Safety may impose a fee, in an

 795-3   amount not to exceed the lesser of $200 or the actual cost to that

 795-4   department, for conducting an inspection and providing the written

 795-5   statement required by Subsection (a).

 795-6         Sec. 501.0923.  ISSUANCE OF CERTIFICATE OF TITLE FOR REBUILT

 795-7   SALVAGE MOTOR VEHICLE.  (a)  On receipt of a complete application

 795-8   under Section 501.0922, accompanied by the peace officer's

 795-9   statement and the appropriate fee for the certificate of title, the

795-10   department shall issue the applicant a certificate of title for the

795-11   vehicle.

795-12         (b)  A certificate of title issued under this section must:

795-13               (1)  bear on its face the words "REBUILT SALVAGE"; and

795-14               (2)  describe or disclose the vehicle's former

795-15   condition in a manner understandable to a potential purchaser of

795-16   the vehicle.

795-17         Sec. 501.0924.  ISSUANCE OF CERTIFICATE OF TITLE TO CERTAIN

795-18   VEHICLES BROUGHT INTO STATE.  (a)  On proper application by the

795-19   owner of a vehicle brought into this state from another state or

795-20   jurisdiction that has on any certificate of title issued by the

795-21   other state or jurisdiction a "rebuilt," "salvage,"

795-22   "nonrepairable," or analogous notation, the department shall issue

795-23   the applicant a certificate of title or other appropriate document

795-24   for the vehicle.

 796-1         (b)  A certificate of title or other appropriate document

 796-2   issued under this section must show on its face:

 796-3               (1)  the date of issuance;

 796-4               (2)  the name and address of the owner;

 796-5               (3)  any registration number assigned to the vehicle;

 796-6               (4)  a description of the vehicle as determined by the

 796-7   department; and

 796-8               (5)  any notation the department considers necessary or

 796-9   appropriate.

796-10         Sec. 501.0925.  RIGHTS OF HOLDER OF NONREPAIRABLE MOTOR

796-11   VEHICLE CERTIFICATE OF TITLE.  A person who holds a nonrepairable

796-12   motor vehicle certificate of title for a vehicle:

796-13               (1)  is entitled to possess the vehicle, dismantle,

796-14   scrap, or destroy the vehicle, transport the vehicle or parts of

796-15   the vehicle, or rebuild the vehicle;

796-16               (2)  may not operate or permit the operation of the

796-17   vehicle on a public highway; and

796-18               (3)  may transfer ownership of the vehicle only as

796-19   permitted by law.

796-20         Sec. 501.0926.  OFFENSE.  Except as provided by Section

796-21   501.0927, a person commits an offense if the person:

796-22               (1)  applies to the department for a certificate of

796-23   title for a motor vehicle; and

796-24               (2)  knows that the vehicle is a nonrepairable motor

 797-1   vehicle that has been rebuilt.

 797-2         Sec. 501.0927.  APPLICATION FOR CERTIFICATE OF TITLE BY

 797-3   REBUILDER OF NONREPAIRABLE MOTOR VEHICLE.  (a)  A person who

 797-4   rebuilds a nonrepairable vehicle may apply to the department for a

 797-5   certificate of title for the vehicle if, in addition to any other

 797-6   requirement of law, the application:

 797-7               (1)  contains the information required by Section

 797-8   501.0922(a)(1); and

 797-9               (2)  is accompanied by a written statement that

797-10   complies with Section 501.0922(a)(2).

797-11         (b)  The Department of Public Safety may impose a fee, in an

797-12   amount not to exceed the lesser of $200 or the actual cost to that

797-13   department, for conducting an inspection and providing the written

797-14   statement required by Subsection (a).

797-15         (c)  On receipt of a complete application under this section,

797-16   accompanied by the appropriate fee for the certificate of title,

797-17   the department shall issue the applicant a certificate of title for

797-18   the vehicle that conforms to Section 501.0923(b).

797-19         Sec. 501.0928.  DEPARTMENT TO PRINT SALVAGE AND NONREPAIRABLE

797-20   MOTOR VEHICLE CERTIFICATES OF TITLE.  (a)  The department shall

797-21   print salvage motor vehicle certificates of title and nonrepairable

797-22   motor vehicle certificates of title in a color that distinguishes

797-23   them from certificates of title and so that each document clearly

797-24   shows that it is the ownership document for a late model salvage

 798-1   motor vehicle or a nonrepairable motor vehicle.

 798-2         (b)  A nonrepairable motor vehicle certificate of title for a

 798-3   vehicle that is nonrepairable because of damage caused exclusively

 798-4   by flood must bear an appropriate notation on its face.

 798-5         (c)  A salvage motor vehicle certificate of title for a

 798-6   vehicle that is a salvage motor vehicle because of damage caused

 798-7   exclusively by flood must bear an appropriate notation on its face.

 798-8         Sec. 501.0929.  REBUILDER TO POSSESS CERTIFICATE OF TITLE.

 798-9   (a)  A rebuilder must possess a certificate of title, a salvage

798-10   motor vehicle certificate of title, a nonrepairable motor vehicle

798-11   certificate of title, or a comparable ownership document issued by

798-12   another state or jurisdiction for any motor vehicle that is:

798-13               (1)  in the rebuilder's inventory; and

798-14               (2)  being offered for resale.

798-15         (b)  A person who rebuilds a late model salvage motor vehicle

798-16   for which the department has issued a salvage motor vehicle

798-17   certificate of title, or who assembles a late model salvage motor

798-18   vehicle from component parts, may apply to the department for a

798-19   certificate of title for the vehicle.  A certificate of title

798-20   issued by the department under this subsection must bear the words

798-21   "REBUILT SALVAGE."

798-22         Sec. 501.0930.  ENFORCEMENT OF SUBCHAPTER.  (a)  This

798-23   subchapter shall be exclusively enforced by the department or any

798-24   other governmental or law enforcement agency or its personnel,

 799-1   except as provided by this subchapter.

 799-2         (b)  The department, or an agent, officer, or employee of the

 799-3   department, is not liable to a person damaged or injured by an act

 799-4   or omission relating to the issuance of a certificate of title,

 799-5   salvage motor vehicle certificate of title, or nonrepairable motor

 799-6   vehicle certificate of title under this subchapter.

 799-7         Sec. 501.0931.  APPLICABILITY OF SUBCHAPTER.  (a)  This

 799-8   subchapter does not apply to, and does not preclude or prohibit a

 799-9   sale to, purchase by, or other transaction by or with, a person

799-10   described by Subsection (g), Article 6687-2b, Revised Statutes,

799-11   except as provided by Subsections (b) and (c).

799-12         (b)  A person described by Subsection (g), Article 6687-2b,

799-13   Revised Statutes, shall submit to the department the certificate of

799-14   title or equivalent document that the person receives in

799-15   conjunction with the purchase of a motor vehicle not later than the

799-16   60th day after the date the person receives the certificate of

799-17   title or equivalent document.

799-18         (c)  This subchapter applies to a transaction with a person

799-19   described by Subsection (g), Article 6687-2b, Revised Statutes, in

799-20   which a motor vehicle is sold or delivered to the person for the

799-21   purpose of reuse or resale as a motor vehicle or as motor vehicle

799-22   parts if the motor vehicle is so used.

799-23         (d)  This subchapter does not:

799-24               (1)  prohibit the owner of a late model salvage motor

 800-1   vehicle or a nonrepairable motor vehicle from selling the vehicle

 800-2   to any person, if the vehicle is so classified solely because of

 800-3   water damage caused by a flood; or

 800-4               (2)  limit the ability or authority of an insurance

 800-5   company to adjust or settle a claim for loss on a motor vehicle.

 800-6    [SUBCHAPTER E.  JUNKED, REBUILT, AND FLOOD-DAMAGED MOTOR VEHICLES]

 800-7         [Sec. 501.091.  JUNKED MOTOR VEHICLES.  (a)  The person named

 800-8   in a certificate of title as the present owner of a motor vehicle

 800-9   registered in this state shall surrender the certificate of title

800-10   to the department together with the written consent of the holder

800-11   of each unreleased lien noted on the certificate of title if:]

800-12               [(1)  the vehicle is junked, dismantled, or destroyed;]

800-13               [(2)  the vehicle's motor number is changed; or]

800-14               [(3)  the vehicle is changed in a manner such that the

800-15   vehicle:]

800-16                     [(A)  loses its character as a motor vehicle; or]

800-17                     [(B)  is not the vehicle described in the

800-18   certificate of title.]

800-19         [(b)  The department shall cancel in its records a

800-20   certificate of title surrendered under Subsection (a).]

800-21         [(c)  This section does not affect the sale of used parts for

800-22   an automobile when sold as used parts.]

800-23         [Sec. 501.092.  REBUILT OR ASSEMBLED MOTOR VEHICLE.  (a)  A

800-24   person who rebuilds or assembles a motor vehicle must obtain a

 801-1   certificate of title for the vehicle before the person:]

 801-2               [(1)  transfers the vehicle; or]

 801-3               [(2)  operates or permits the operation of the vehicle.]

 801-4         [(b)  To obtain the certificate of title, the person must

 801-5   provide to the department an affidavit stating where, when, how,

 801-6   and from whom the parts used in rebuilding or assembling the

 801-7   vehicle were obtained.]

 801-8         [(c)  The department may issue a certificate of title under

 801-9   this section only if it is satisfied that:]

801-10               [(1)  the affidavit is true; and]

801-11               [(2)  the affiant is the person described in the

801-12   affidavit as its maker.]

801-13         [Sec. 501.093.  FLOOD-DAMAGED MOTOR VEHICLE.  (a)  The owner

801-14   of a motor vehicle that has been rendered a total loss because of

801-15   flood damage to the vehicle must surrender to the department the

801-16   certificate of title or the manufacturer's statement of origin and

801-17   the written consent of the holders of an unreleased lien noted on

801-18   the certificate of title or manufacturer's statement of origin.]

801-19         [(b)  On receipt of the certificate of title, the department

801-20   shall cancel the certificate.]

801-21         [(c)  Before a motor vehicle that has been rendered a total

801-22   loss because of flood damage to the vehicle may be operated in this

801-23   state, the owner of the vehicle must:]

801-24               [(1)  disclose to the department that the vehicle has

 802-1   been rendered a total loss because of flood damage, whether the

 802-2   vehicle was last titled in this state or elsewhere; and]

 802-3               [(2)  obtain a new certificate of title from the

 802-4   department.]

 802-5         [Sec. 501.094.  CERTIFICATE OF TITLE DESIGNATION FOR JUNKED,

 802-6   REBUILT, OR FLOOD-DAMAGED MOTOR VEHICLE.  The department shall make

 802-7   an appropriate designation on the face of a certificate of title:]

 802-8               [(1)  issued under Section 501.092 for a vehicle as to

 802-9   which the certificate of title or other evidence of ownership is

802-10   surrendered to the department under Section 501.091 or Chapter 506,

802-11   Acts of the 57th Legislature, Regular Session, 1961 (Article

802-12   6687-2, Vernon's Texas Civil Statutes); or]

802-13               [(2)  issued under Section 501.093.]

802-14         (b)  Section 501.157, Transportation Code, is amended to

802-15   conform to Section 2, Chapter 394 (H.B. No. 2151), Acts of the 74th

802-16   Legislature, Regular Session, 1995, to read as follows:

802-17         Sec. 501.157.  PENALTIES [PENALTY].  (a)  Unless otherwise

802-18   provided by this chapter, an offense under this chapter is a

802-19   misdemeanor punishable by a fine of not less than $1 or more than

802-20   $100 for the first offense.  If a person is subsequently convicted

802-21   of the same offense, at the jury's discretion, a person may be

802-22   fined not less than $2 or more than $200.

802-23         (b)  A person commits an offense if the person violates

802-24   Subchapter E or a rule adopted under that subchapter.  An offense

 803-1   under this subsection is a Class A misdemeanor.

 803-2         (c)  Chapter 20, Title 132, Revised Statutes, is amended to

 803-3   conform to Sections 1 and 2, Chapter 394 (H.B. No. 2151), Acts of

 803-4   the 74th Legislature, Regular Session, 1995, by adding Articles

 803-5   9026a and 9026b to read as follows:

 803-6         Art. 9026a.  CHARGES FOR TITLE FEES, REGISTRATION FEES, AND

 803-7   PROPERTY TAXES.  (a)  A person required to register under Section

 803-8   152.065, Tax Code, may include in a customer agreement a separate

 803-9   charge for the proportionate amount of title fees, registration

803-10   fees, and property taxes paid in the preceding calendar year on the

803-11   person's vehicle fleet.

803-12         (b)  If a person includes a charge under Subsection (a) of

803-13   this article in a customer agreement, the charge:

803-14               (1)  must be included on a nondiscriminatory basis; and

803-15               (2)  shall be collected in each agreement other than an

803-16   agreement that is exempt from a tax imposed under Section 152.026,

803-17   Tax Code.

803-18         (c)  A person commits an offense if the person violates this

803-19   article.  An offense under this subsection is a Class A

803-20   misdemeanor.

803-21         Art. 9026b.  RETENTION OR USE OF CERTAIN MOTOR VEHICLES

803-22   PROHIBITED.  (a)  An owner to whom Section 152.065, Tax Code,

803-23   applies is prohibited from retaining for use or using a motor

803-24   vehicle that has been issued a certificate of title under Section

 804-1   501.0923, Transportation Code, for a usual commercial purpose of

 804-2   that owner.

 804-3         (b)  A person commits an offense if the person violates

 804-4   Subsection (a) of this article.  An offense under this subsection

 804-5   is a Class A misdemeanor.

 804-6         (c)  In this article, "certificate of title," "owner," and

 804-7   "motor vehicle" have the meanings assigned by Section 501.001,

 804-8   Transportation Code.

 804-9         (d)  Sections 1 and 2, Chapter 394 (H.B. No. 2151), Acts of

804-10   the 74th Legislature, Regular Session, 1995, are repealed.

804-11         SECTION 30.44.  (a)  Section 502.002, Transportation Code, is

804-12   amended to conform to Section 4, Chapter 34 (S.B. No. 178), Acts of

804-13   the 74th Legislature, Regular Session, 1995, by adding Subsection

804-14   (d) to read as follows:

804-15         (d)  A county assessor-collector, a deputy county

804-16   assessor-collector, or a person acting on behalf of a county

804-17   assessor-collector is not liable to any person for:

804-18               (1)  refusing to register a motor vehicle because of

804-19   the person's failure to submit evidence of residency that complies

804-20   with the department's rules; or

804-21               (2)  registering a motor vehicle under this section.

804-22         (b)  Section 502.109, Transportation Code, is amended to

804-23   conform to the repeal of the law from which Subsections (b) and (c)

804-24   of that section were derived by Section 9(7), Chapter 34 (S.B. No.

 805-1   178), Acts of the 74th Legislature, Regular Session, 1995, to read

 805-2   as follows:

 805-3         Sec. 502.109.  COMPENSATION OF ASSESSOR-COLLECTOR.  (a)  A

 805-4   county assessor-collector shall receive a fee of $1.90 for each

 805-5   receipt issued under this chapter.  If the assessor-collector may

 805-6   be compensated by fees, a fee received is compensation for services

 805-7   under this chapter.  The assessor-collector shall deduct the fee

 805-8   weekly from the gross collections made under this chapter.

 805-9         (b)  [A county assessor-collector required by Section 502.154

805-10   to collect a vehicle emissions inspection certificate, another

805-11   verification of compliance, or a waiver from an applicant for

805-12   registration shall collect and retain for the county a fee of 50

805-13   cents for each document collected.]

805-14         [(c)  A county assessor-collector required by Section 502.155

805-15   to require an applicant for registration to provide evidence that

805-16   the applicant is a resident of that county shall collect and retain

805-17   for the county a fee of 25 cents for each registration.]

805-18         [(d)]  A county assessor-collector who is compensated under

805-19   this section shall pay the entire expense of issuing registration

805-20   receipts and license plates under this chapter from the

805-21   compensation allowed under this section.

805-22         (c)  Section 502.154, Transportation Code, is amended to

805-23   conform to the repeal of a portion of the law from which it was

805-24   derived by Sections 9(4) and (5), Chapter 34 (S.B. No. 178), Acts

 806-1   of the 74th Legislature, Regular Session, 1995, to read as follows:

 806-2         Sec. 502.154.  REPORT BY COUNTY ASSESSOR-COLLECTOR [EMISSIONS

 806-3   INSPECTION CERTIFICATE REQUIRED IN CERTAIN COUNTIES].  [(a)  The

 806-4   county assessor-collector of a county that is included in a vehicle

 806-5   emissions inspection and maintenance program under Subchapter F,

 806-6   Chapter 548, may not register a motor vehicle unless the applicant

 806-7   for registration submits:]

 806-8               [(1)  a vehicle emissions inspection certificate for

 806-9   the vehicle issued:]

806-10                     [(A)  by an inspection station located in a

806-11   county included in the vehicle emissions inspection and maintenance

806-12   program; and]

806-13                     [(B)  within the applicable period prescribed by

806-14   Section 382.037(h), Health and Safety Code; or]

806-15               [(2)  other verification of compliance, as provided by

806-16   Section 382.037, Health and Safety Code.]

806-17         [(b)]  A county assessor-collector [described by Subsection

806-18   (a)] shall[:]

806-19               [(1)  collect the original emissions inspection

806-20   certificates, waivers, or other verifications of compliance and

806-21   shall submit them to the Texas Natural Resource Conservation

806-22   Commission on the commission's request; and]

806-23               [(2)]  submit an annual report to the Texas Natural

806-24   Resource Conservation Commission and the department that shows:

 807-1               (1) [(A)]  the number of registrations denied because

 807-2   of the applicant's failure to provide an original emissions

 807-3   inspection certificate or a valid waiver;

 807-4               (2) [(B)]  the number of registrations denied because

 807-5   of the failure to provide proof of residency; and

 807-6               (3) [(C)]  an itemized accounting of the costs to the

 807-7   county of administering Sections 502.002 and 502.006(a), (b), and

 807-8   (c) [this section].

 807-9         [(c)  A county assessor-collector, a deputy county

807-10   assessor-collector, or a person acting on behalf of a county

807-11   assessor-collector is not liable to any person for:]

807-12               [(1)  refusing to register a motor vehicle to which

807-13   this section applies because of the person's failure to submit a

807-14   vehicle emissions inspection certificate, waiver, or other

807-15   verification of compliance; or]

807-16               [(2)  registering a motor vehicle under this section.]

807-17         [(d)  The department may not register a motor vehicle owned

807-18   by a resident of a county that is included in a vehicle emissions

807-19   inspection and maintenance program under Subchapter F, Chapter 548,

807-20   unless the applicant for registration submits a vehicle emissions

807-21   inspection certificate for the vehicle or other verification of

807-22   compliance, as provided by Section 382.037, Health and Safety

807-23   Code.]

807-24         (d)  Section 502.155, Transportation Code, is repealed to

 808-1   conform to the repeal of the law from which it was derived by

 808-2   Sections 4 and 9(4), Chapter 34 (S.B. No. 178), Acts of the 74th

 808-3   Legislature, Regular Session, 1995.

 808-4         (e)  Section 4, Chapter 34 (S.B. No. 178), Acts of the 74th

 808-5   Legislature, Regular Session, 1995, is repealed.

 808-6         SECTION 30.45.  Section 502.003(b), Transportation Code, is

 808-7   amended to conform to the termination of the Interstate Commerce

 808-8   Commission and the creation of the Surface Transportation Board by

 808-9   the Interstate Commerce Commission Termination Act of 1995 (Pub. L.

808-10   No. 104-88) and to the transfer of motor carrier registration

808-11   responsibilities from the Railroad Commission of Texas to the Texas

808-12   Department of Transportation by Chapter 705 (S.B. No. 3), Acts of

808-13   the 74th Legislature, Regular Session, 1995, to read as follows:

808-14         (b)  This section does not affect the authority of a

808-15   municipality to:

808-16               (1)  license and regulate the use of motor vehicles for

808-17   compensation within the municipal limits; and

808-18               (2)  impose a permit fee or street rental charge for

808-19   the operation of each motor vehicle used to transport passengers

808-20   for compensation, other than a motor vehicle operating under a

808-21   registration [permit or] certificate from the department [Railroad

808-22   Commission of Texas] or  a permit from the federal Surface

808-23   Transportation Board [the Interstate Commerce Commission].

808-24         SECTION 30.46.  (a)  Section 502.008, Transportation Code, is

 809-1   amended to conform to Section 8.06, Chapter 655 (H.B. No. 1863),

 809-2   Acts of the 74th Legislature, Regular Session, 1995, by amending

 809-3   Subsection (b) and adding Subsection (c) to read as follows:

 809-4         (b)  This section does not apply to the release of

 809-5   information to:

 809-6               (1)  a peace officer, as defined in Article 2.12, Code

 809-7   of Criminal Procedure, acting in an official capacity; or

 809-8               (2)  an official of this state or a political

 809-9   subdivision of this state if the official is requesting the

809-10   information for:

809-11                     (A)  tax purposes; or

809-12                     (B)  the purpose of determining eligibility for a

809-13   state public assistance program.

809-14         (c)  The department shall provide a dedicated line to its

809-15   vehicle registration record database for use by other state

809-16   agencies.  The access to or transmission of information under this

809-17   subsection does not affect whether the information is subject to

809-18   disclosure under Chapter 552, Government Code.

809-19         (b)  Section 8.06, Chapter 655 (H.B. No. 1863), Acts of the

809-20   74th Legislature, Regular Session, 1995, is repealed.

809-21         SECTION 30.47.  (a)  Section 502.108(f), Transportation Code,

809-22   is repealed to conform to the repeal of the law from which it was

809-23   derived by Section 2, Chapter 568 (S.B. No.  437), Acts of the 74th

809-24   Legislature, Regular Session, 1995.

 810-1         (b)  Section 2, Chapter 568 (S.B. No. 437), Acts of the 74th

 810-2   Legislature, Regular Session, 1995, is repealed.

 810-3         SECTION 30.48.  Section 502.173(g), Transportation Code, is

 810-4   amended to conform to Section 10.01, Chapter 76 (S.B. No. 959),

 810-5   Acts of the 74th Legislature, Regular Session, 1995, to read as

 810-6   follows:

 810-7         (g)  A municipality with a population greater than 850,000

 810-8   shall deposit revenue from a fee imposed under this subsection to

 810-9   the credit of the child safety trust fund created under Section

810-10   106.001, Local Government Code [Article 6701d-26, Revised

810-11   Statutes].  A municipality with a population less than 850,000

810-12   shall use revenue from a fee imposed under this section in

810-13   accordance with Subsection (f), Article 102.014, Code of Criminal

810-14   Procedure.

810-15         SECTION 30.49.  (a)  Section 502.180, Transportation Code, is

810-16   amended to conform to Section 1, Chapter 204 (H.B. No.  1542), Acts

810-17   of the 74th Legislature, Regular Session, 1995, by amending

810-18   Subsection (d) and adding Subsection (h) to read as follows:

810-19         (d)  Except as provided by Subsection (h), the [The]

810-20   registration insignia for validation of a license plate shall be

810-21   attached to the inside of the vehicle's windshield, if the vehicle

810-22   has a windshield, within six inches of [directly above] the place

810-23   where the motor vehicle inspection sticker is required to be

810-24   placed.  If the vehicle does not have a windshield, the owner, when

 811-1   applying for registration or renewal of registration, shall notify

 811-2   the department, and the department shall issue a distinctive device

 811-3   for attachment to the rear license plate of the vehicle.

 811-4         (h)  The registration insignia for validation of a license

 811-5   plate shall be attached to the rear license plate of the vehicle,

 811-6   if the vehicle is:

 811-7               (1)  a motorcycle;

 811-8               (2)  machinery used exclusively to drill water wells or

 811-9   construction machinery for which a distinguishing license plate has

811-10   been issued under Section 502.276; or

811-11               (3)  oil well servicing, oil clean out, or oil well

811-12   drilling machinery or equipment for which a distinguishing license

811-13   plate has been issued under Subchapter G, Chapter 623.

811-14         (b)  The heading to Section 502.184, Transportation Code, is

811-15   amended to conform to Section 2, Chapter 204 (H.B. No. 1542), Acts

811-16   of the 74th Legislature, Regular Session, 1995, to read as follows:

811-17         Sec. 502.184.  REPLACEMENT OF LOST, STOLEN, OR MUTILATED

811-18   LICENSE PLATE OR REGISTRATION INSIGNIA.

811-19         (c)  Section 502.184, Transportation Code, is amended to

811-20   conform to Section 2, Chapter 204 (H.B. No. 1542), Acts of the 74th

811-21   Legislature, Regular Session, 1995, by amending Subsections (a),

811-22   (e), and (f) and adding Subsection (i) to read as follows:

811-23         (a)  The owner of a registered motor vehicle may obtain from

811-24   the department through the county assessor-collector replacement

 812-1   license plates or a replacement registration insignia by:

 812-2               (1)  filing with the assessor-collector a statement:

 812-3                     (A)  showing that one or both of the license

 812-4   plates or the registration insignia to be replaced has [have] been

 812-5   lost, stolen, or mutilated; and

 812-6                     (B)  stating that no license plate or

 812-7   registration insignia to be replaced will be used on any vehicle

 812-8   owned or operated by the person making the statement;

 812-9               (2)  paying a fee of $5 plus the fee required by

812-10   Section 502.170(a) for each set of replacement license plates or

812-11   each replacement registration insignia, except as provided by

812-12   Subsection (b), [or] (c), or (i); and

812-13               (3)  returning to the assessor-collector each replaced

812-14   plate or registration insignia in the owner's possession.

812-15         (e)  A county assessor-collector may not issue replacement

812-16   license plates or a replacement registration insignia without

812-17   complying with this section.

812-18         (f)  A county assessor-collector shall retain $2.50

812-19   [one-half] of each [a] fee collected under this section and shall

812-20   report and send the remainder to the department as provided by

812-21   Sections 502.102 and 502.105.

812-22         (i)  The owner of a vehicle listed in Section 502.180(h) may

812-23   obtain replacement plates and a replacement registration insignia

812-24   by paying a fee of $5 plus the fee required by Section 502.170(a).

 813-1         (d)  Sections 1 and 2, Chapter 204 (H.B. No. 1542), Acts of

 813-2   the 74th Legislature, Regular Session, 1995, are repealed.

 813-3         SECTION 30.50.  (a)  Subchapter E, Chapter 502,

 813-4   Transportation Code, is amended to conform to Section 1, Chapter

 813-5   453 (H.B. No. 2053), Acts of the 74th Legislature, Regular Session,

 813-6   1995, by adding Section 502.2015 to read as follows:

 813-7         Sec. 502.2015.  LIMITATION ON ISSUANCE OF EXEMPT LICENSE

 813-8   PLATES; SEIZURE OF CERTAIN VEHICLES.  (a)  The department may not

 813-9   issue exempt license plates for a vehicle owned by the United

813-10   States, this state, or a political subdivision of this state

813-11   unless, when application is made for registration of the vehicle,

813-12   the person who under Section 502.202 has authority to certify to

813-13   the department that the vehicle qualifies for registration under

813-14   that section also certifies in writing to the department that there

813-15   is printed on each side of the vehicle, in letters that are at

813-16   least two inches high and of a color sufficiently different from

813-17   the body of the vehicle to be clearly legible from a distance of

813-18   100 feet, the name of the agency, department, bureau, board,

813-19   commission, or officer of the United States, this state, or

813-20   political subdivision of this state that has custody of the

813-21   vehicle.

813-22         (b)  The department may not issue exempt license plates for a

813-23   vehicle owned by a person other than the United States, this state,

813-24   or a political subdivision of this state unless, when application

 814-1   is made for registration of the vehicle, the person who under

 814-2   Section 502.202 has authority to certify to the department that the

 814-3   vehicle qualifies for registration under that section also

 814-4   certifies in writing to the department that the name of the owner

 814-5   of the vehicle is printed on the vehicle in the manner prescribed

 814-6   by Subsection (a).

 814-7         (c)  A peace officer listed in Article 2.12, Code of Criminal

 814-8   Procedure, may seize a motor vehicle displaying exempt license

 814-9   plates if the vehicle is:

814-10               (1)  operated on a public highway; and

814-11               (2)  not identified in the manner prescribed by

814-12   Subsection (a) or (b).

814-13         (d)  A peace officer who seizes a motor vehicle under

814-14   Subsection (c) may require that the vehicle be:

814-15               (1)  moved to the nearest place of safety off the

814-16   main-traveled part of the highway; or

814-17               (2)  removed and placed in the nearest vehicle storage

814-18   facility designated or maintained by the law enforcement agency

814-19   that employs the peace officer.

814-20         (e)  To obtain the release of the vehicle, in addition to any

814-21   other requirement of law, the owner of a vehicle seized under

814-22   Subsection (c) must:

814-23               (1)  remedy the defect by identifying the vehicle as

814-24   required by Subsection (a) or (b); or

 815-1               (2)  agree in writing with the law enforcement agency

 815-2   to provide evidence to that agency, before the 10th day after the

 815-3   date the vehicle is released, that the defect has been remedied by

 815-4   identifying the vehicle as required by Subsection (a) or (b).

 815-5         (f)  Subsections (a) and (b) do not apply to a law

 815-6   enforcement vehicle to which Section 502.206 applies.

 815-7         (g)  For purposes of this section, an exempt license plate is

 815-8   a license plate issued by the department that is plainly marked

 815-9   with the word "Exempt."

815-10         (b)  Section 1, Chapter 453 (H.B. No. 2053), Acts of the 74th

815-11   Legislature, Regular Session, 1995, is repealed.

815-12         SECTION 30.51.  (a)  Section 502.252, Transportation Code, is

815-13   amended to conform to Section 1, Chapter 325 (S.B. No. 209),

815-14   Section 1, Chapter 558 (S.B. No. 123), and Section 1, Chapter 164

815-15   (S.B. No. 832), Acts of the 74th Legislature, Regular Session,

815-16   1995, to read as follows:

815-17         Sec. 502.252.  CERTAIN SPECIALIZED PLATES AVAILABLE

815-18   PERSONALIZED.  A person applying for license plates under Section

815-19   502.2555, 502.258, 502.259, 502.260, 502.261, 502.262, 502.263,

815-20   502.264, 502.265, 502.269, 502.270, 502.271, 502.272, 502.273, [or]

815-21   502.274, 502.289, or 502.291 may:

815-22               (1)  have a license plate number assigned by the

815-23   department; or

815-24               (2)  apply for personalized prestige license plates

 816-1   under Section 502.251.

 816-2         (b)  Subchapter F, Chapter 502, Transportation Code, is

 816-3   amended to conform to Section 1, Chapter 325 (S.B. No. 209), Acts

 816-4   of the 74th Legislature, Regular Session, 1995, by adding Section

 816-5   502.289 to read as follows:

 816-6         Sec. 502.289.  PEACE OFFICERS WOUNDED OR KILLED IN LINE OF

 816-7   DUTY.  (a)  The department shall issue specially designed licensed

 816-8   plates for a vehicle owned by:

 816-9               (1)  a person wounded in the line of duty as a peace

816-10   officer; or

816-11               (2)  a surviving spouse, parent, or adult child of a

816-12   person killed in the line of duty as a peace officer.

816-13         (b)  License plates issued under this section must include

816-14   the words "To Protect and Serve" above an insignia depicting a

816-15   yellow rose superimposed over the outline of a badge.

816-16         (c)  The department shall issue license plates under this

816-17   section to a person who:

816-18               (1)  applies to the department on a form prescribed by

816-19   the department;

816-20               (2)  pays an annual fee of $20, in addition to the fee

816-21   prescribed by Section 502.160 or 502.161, and, if personalized

816-22   prestige license plates are issued, in addition to the fee

816-23   prescribed by Section 502.251; and

816-24               (3)  submits proof acceptable to the department that

 817-1   the person is eligible under this section.

 817-2         (d)  If the owner of a vehicle registered under this section

 817-3   disposes of the vehicle during the registration year, the owner

 817-4   shall return the special license plates to the department.

 817-5         (e)  The department shall deposit each fee collected under

 817-6   this section to the credit of the state highway fund.

 817-7         (f)  In this section, "peace officer" has the meaning

 817-8   assigned by Section 1.07, Penal Code.

 817-9         (c)  Section 1, Chapter 325 (S.B. No. 209), Acts of the 74th

817-10   Legislature, Regular Session, 1995, is repealed.

817-11         SECTION 30.52.  Sections 502.253(b) and (e), Transportation

817-12   Code, are amended to conform to Section 1, Chapter 929 (H.B. No.

817-13   2083), Acts of the 74th Legislature, Regular Session, 1995, to read

817-14   as follows:

817-15         (b)  In this section:

817-16               (1)  "Disability" and "mobility problem that

817-17   substantially impairs a person's ability to ambulate" have the

817-18   meanings assigned by Section 681.001.

817-19               (2)  "Legally blind" means a condition described by

817-20   Section 681.001(2)(B) or (C) [A person has a disability if the

817-21   person has:]

817-22               [(1)  mobility problems that substantially impair the

817-23   person's ability to ambulate;]

817-24               [(2)  visual acuity of 20/200 or less in the better eye

 818-1   with correcting lenses; or]

 818-2               [(3)  visual acuity of more than 20/200 but with a

 818-3   limited field of vision in which the widest diameter of the visual

 818-4   field subtends an angle of 20 degrees or less].

 818-5         (e)  The first application for registration must be

 818-6   accompanied by a written statement of a physician licensed to

 818-7   practice medicine in this state certifying to the department

 818-8   [acceptable medical proof] that the person making the application

 818-9   or on whose behalf the application is made is legally blind or has

818-10   a mobility problem that substantially impairs the person's ability

818-11   to ambulate.  The statement must include a certification of whether

818-12   a mobility problem, if applicable, is temporary or permanent

818-13   [operator or regularly transported passenger has a permanent

818-14   disability].  A written statement from a physician is not required

818-15   as acceptable medical proof if:

818-16               (1)  the person with a disability:

818-17                     (A)  has had a limb, hand, or foot amputated; or

818-18                     (B)  must use a wheelchair; and

818-19               (2)  the applicant and the county assessor-collector

818-20   issuing the special license plates execute an affidavit attesting

818-21   to the person's disability.

818-22         SECTION 30.53.  (a)  Subchapter F, Chapter 502,

818-23   Transportation Code, is amended to conform to Section 1, Chapter

818-24   558 (S.B. No. 123), Acts of the 74th Legislature, Regular Session,

 819-1   1995, by adding Section 502.2555 to read as follows:

 819-2         Sec. 502.2555.  AIR FORCE CROSS OR DISTINGUISHED SERVICE

 819-3   CROSS, ARMY DISTINGUISHED SERVICE CROSS, NAVY CROSS, OR MEDAL OF

 819-4   HONOR RECIPIENTS.  (a)  The department shall issue specially

 819-5   designed license plates for passenger cars and light trucks owned

 819-6   by recipients of the Air Force Cross or Distinguished Service

 819-7   Cross, the Army Distinguished Service Cross, the Navy Cross, or the

 819-8   Medal of Honor.

 819-9         (b)  License plates issued under this section must include

819-10   the words "Legion of Valor."

819-11         (c)  The department shall issue license plates under this

819-12   section to a person who:

819-13               (1)  applies to the department on a form prescribed by

819-14   the department;

819-15               (2)  pays an annual fee of $3;

819-16               (3)  submits proof that the person has been awarded the

819-17   Air Force Cross or Distinguished Service Cross, the Army

819-18   Distinguished Service Cross, the Navy Cross, or the Medal of Honor;

819-19   and

819-20               (4)  submits proof that the person is:

819-21                     (A)  an honorably discharged veteran of the

819-22   United States armed forces; or

819-23                     (B)  a member of the United States armed forces

819-24   on active duty.

 820-1         (d)  The department shall send 50 cents of each fee collected

 820-2   under this section to the county treasury of the county in which

 820-3   the applicant resides.  The county treasurer shall credit money

 820-4   received under this section to the general fund of the county to

 820-5   pay the costs of administering this section.

 820-6         (e)  A vehicle for which license plates are issued under this

 820-7   section is exempt from the fee under Section 502.161.

 820-8         (f)  A person may be issued only one set of license plates

 820-9   under this section.

820-10         (g)  If the owner of a vehicle registered under this section

820-11   disposes of the vehicle during the registration year, the owner

820-12   shall return the special license plates to the department.  The

820-13   owner may then apply for issuance of those plates to another

820-14   vehicle.

820-15         (b)  Section 1, Chapter 558 (S.B. No. 123), Acts of the 74th

820-16   Legislature, Regular Session, 1995, is repealed.

820-17         SECTION 30.54.  (a)  The heading to Section 502.258,

820-18   Transportation Code, is amended to conform to Section 1, Chapter

820-19   179 (H.B. No. 247), Acts of the 74th Legislature, Regular Session,

820-20   1995, to read as follows:

820-21         Sec. 502.258.  [ACTIVE OR RETIRED] MEMBERS OR FORMER MEMBERS

820-22   OF UNITED STATES ARMED FORCES.

820-23         (b)  Sections 502.258(a), (c), and (e), Transportation Code,

820-24   are amended to conform to Sections 1 and 2, Chapter 179 (H.B. No.

 821-1   247), Acts of the 74th Legislature, Regular Session, 1995, to read

 821-2   as follows:

 821-3         (a)  The department shall issue specially designed license

 821-4   plates for passenger cars and light trucks owned by active, [or]

 821-5   retired, or honorably discharged members of the United States armed

 821-6   forces.

 821-7         (c)  The department shall issue license plates under this

 821-8   section to a person who:

 821-9               (1)  applies to the department on a form prescribed by

821-10   the department;

821-11               (2)  pays the [an] annual fee prescribed by Subsection

821-12   (e) [of $10], in addition to the fee prescribed by Section 502.161,

821-13   and, if personalized prestige license plates are issued, in

821-14   addition to the fee prescribed by Section 502.251; and

821-15               (3)  submits proof that the person is eligible under

821-16   this section.

821-17         (e)  The annual fee for issuance of license plates under this

821-18   section is:

821-19               (1)  $10 for the first set of license plates; and

821-20               (2)  $15 for each additional set of license plates [A

821-21   person may be issued only one set of license plates under this

821-22   section].

821-23         (c)  Sections 502.259(c), (e), (f), and (g), Transportation

821-24   Code, are amended to conform to Section 2, Chapter 179 (H.B. No.

 822-1   247), Acts of the 74th Legislature, Regular Session, 1995, to read

 822-2   as follows:

 822-3         (c)  The department shall issue license plates under this

 822-4   section to a person who:

 822-5               (1)  applies to the department on a form prescribed by

 822-6   the department;

 822-7               (2)  pays an annual fee of:

 822-8                     (A)  $3 for the first set of license plates

 822-9   issued under this section; and

822-10                     (B)  $15 for each additional set of license

822-11   plates issued under this section; and

822-12               (3)  submits proof that the person:

822-13                     (A)  served in the United States armed forces;

822-14                     (B)  was stationed in the Hawaiian Islands on

822-15   December 7, 1941; and

822-16                     (C)  survived the attack on Pearl Harbor on

822-17   December 7, 1941.

822-18         (e)  A person who registers one or more vehicles under this

822-19   section is entitled to only one exemption [vehicle for which

822-20   license plates are issued under this section is exempt] from the

822-21   fee under Section 502.161.

822-22         (f)  [A person may be issued only one set of license plates

822-23   under this section.]

822-24         [(g)]  If the owner of a vehicle registered under this

 823-1   section disposes of the vehicle during the registration year, the

 823-2   owner shall return the special license plates to the department.

 823-3   The owner may then apply for issuance of those plates to another

 823-4   vehicle.

 823-5         (d)  Sections 502.260(c), (e), (f), and (g), Transportation

 823-6   Code, are amended to conform to Section 2, Chapter 179 (H.B. No.

 823-7   247), Acts of the 74th Legislature, Regular Session, 1995, to read

 823-8   as follows:

 823-9         (c)  The department shall issue license plates under this

823-10   section to a person who:

823-11               (1)  applies to the department on a form prescribed by

823-12   the department;

823-13               (2)  pays an annual fee of:

823-14                     (A)  $3 for the first set of license plates

823-15   issued under this section; and

823-16                     (B)  $15 for each additional set of license

823-17   plates issued under this section; and

823-18               (3)  submits proof that the person has been awarded the

823-19   Purple Heart and is:

823-20                     (A)  an honorably discharged veteran of the

823-21   United States armed forces; or

823-22                     (B)  a member of the United States armed forces

823-23   on active duty.

823-24         (e)  A person who registers one or more vehicles under this

 824-1   section is entitled to only one exemption [vehicle for which

 824-2   license plates are issued under this section is exempt] from the

 824-3   fee under Section 502.161.

 824-4         (f)  [A person may be issued only one set of license plates

 824-5   under this section.]

 824-6         [(g)]  If the owner of a vehicle registered under this

 824-7   section disposes of the vehicle during the registration year, the

 824-8   owner shall return the special license plates to the department.

 824-9   The owner may then apply for issuance of those plates to another

824-10   vehicle.

824-11         (e)  Sections 502.261(c) and (e), Transportation Code, are

824-12   amended to conform to Section 2, Chapter 179 (H.B. No. 247), Acts

824-13   of the 74th Legislature, Regular Session, 1995, to read as follows:

824-14         (c)  The department shall issue license plates under this

824-15   section to a person who:

824-16               (1)  applies to the department on a form prescribed by

824-17   the department;

824-18               (2)  pays the [an] annual fee prescribed by Subsection

824-19   (e) [of $10], in addition to the fee prescribed by Section 502.161,

824-20   and, if personalized prestige license plates are issued, in

824-21   addition to the fee prescribed by Section 502.251; and

824-22               (3)  submits proof that the person is eligible under

824-23   this section.

824-24         (e)  The annual fee for issuance of license plates under this

 825-1   section is:

 825-2               (1)  $10 for the first set of license plates; and

 825-3               (2)  $15 for each additional set of license plates [A

 825-4   person may be issued only one set of Civil Air Patrol license

 825-5   plates or Coast Guard Auxiliary license plates].

 825-6         (f)  Sections 502.262(c) and (e), Transportation Code, are

 825-7   amended to conform to Section 2, Chapter 179 (H.B. No. 247), Acts

 825-8   of the 74th Legislature, Regular Session, 1995, to read as follows:

 825-9         (c)  The department shall issue license plates under this

825-10   section to a person who:

825-11               (1)  applies to the department on a form prescribed by

825-12   the department;

825-13               (2)  pays the [an] annual fee prescribed by Subsection

825-14   (e) [of $10], in addition to the fee prescribed by Section 502.161,

825-15   and, if personalized prestige license plates are issued, in

825-16   addition to the fee prescribed by Section 502.251; and

825-17               (3)  submits proof that the person:

825-18                     (A)  served in the United States armed forces

825-19   after December 6, 1941, and before January 1, 1947; and

825-20                     (B)  is an honorably discharged veteran of the

825-21   United States armed forces.

825-22         (e)  The annual fee for issuance of license plates under this

825-23   section is:

825-24               (1)  $10 for the first set of license plates; and

 826-1               (2)  $15 for each additional set of license plates [A

 826-2   person may be issued only one set of license plates under this

 826-3   section].

 826-4         (g)  Sections 502.263(c) and (e), Transportation Code, are

 826-5   amended to conform to Section 2, Chapter 179 (H.B. No. 247), Acts

 826-6   of the 74th Legislature, Regular Session, 1995, to read as follows:

 826-7         (c)  The department shall issue license plates under this

 826-8   section to a person who:

 826-9               (1)  applies to the department on a form prescribed by

826-10   the department;

826-11               (2)  pays the [an] annual fee prescribed by Subsection

826-12   (e) [of $10], in addition to the fee prescribed by Section 502.161,

826-13   and, if personalized prestige license plates are issued, in

826-14   addition to the fee prescribed by Section 502.251; and

826-15               (3)  submits proof that the person:

826-16                     (A)  served in the United States armed forces

826-17   after June 26, 1950, and before February 1, 1955; and

826-18                     (B)  is an honorably discharged veteran of the

826-19   United States armed forces.

826-20         (e)  The annual fee for issuance of license plates under this

826-21   section is:

826-22               (1)  $10 for the first set of license plates; and

826-23               (2)  $15 for each additional set of license plates [A

826-24   person may be issued only one set of license plates under this

 827-1   section].

 827-2         (h)  Sections 502.264(c) and (e), Transportation Code, are

 827-3   amended to conform to Section 2, Chapter 179 (H.B. No. 247), Acts

 827-4   of the 74th Legislature, Regular Session, 1995, to read as follows:

 827-5         (c)  The department shall issue license plates under this

 827-6   section to a person who:

 827-7               (1)  applies to the department on a form prescribed by

 827-8   the department;

 827-9               (2)  pays the [an] annual fee prescribed by Subsection

827-10   (e) [of $10], in addition to the fee prescribed by Section 502.161,

827-11   and, if personalized prestige license plates are issued, in

827-12   addition to the fee prescribed by Section 502.251; and

827-13               (3)  submits proof that the person served in the United

827-14   States armed forces after August 4, 1964, and before May 8, 1975,

827-15   and is:

827-16                     (A)  an honorably discharged veteran of the

827-17   United States armed forces; or

827-18                     (B)  a member of the United States armed forces

827-19   on active duty.

827-20         (e)  The annual fee for issuance of license plates under this

827-21   section is:

827-22               (1)  $10 for the first set of license plates; and

827-23               (2)  $15 for each additional set of license plates [A

827-24   person may be issued only one set of license plates under this

 828-1   section].

 828-2         (i)  Sections 502.265(c) and (e), Transportation Code, are

 828-3   amended to conform to Section 2, Chapter 179 (H.B. No. 247), Acts

 828-4   of the 74th Legislature, Regular Session, 1995, to read as follows:

 828-5         (c)  The department shall issue license plates under this

 828-6   section to a person who:

 828-7               (1)  applies to the department on a form prescribed by

 828-8   the department;

 828-9               (2)  pays the [an] annual fee prescribed by Subsection

828-10   (e) [of $10], in addition to the fee prescribed by Section 502.161,

828-11   and, if personalized prestige license plates are issued, in

828-12   addition to the fee prescribed by Section 502.251; and

828-13               (3)  submits proof that the person:

828-14                     (A)  served in the United States armed forces and

828-15   was deployed to the Middle East, where the person participated in

828-16   Operation Desert Shield or Desert Storm; and

828-17                     (B)  is:

828-18                           (i)  an honorably discharged veteran of the

828-19   United States armed forces or reserve component of the United

828-20   States armed forces; or

828-21                           (ii)  a member of the United States armed

828-22   forces, the Texas National Guard, or a reserve component of the

828-23   United States armed forces.

828-24         (e)  The annual fee for issuance of license plates under this

 829-1   section is:

 829-2               (1)  $10 for the first set of license plates; and

 829-3               (2)  $15 for each additional set of license plates [A

 829-4   person may be issued only one set of license plates under this

 829-5   section].

 829-6         (j)  Section 502.266, Transportation Code, is amended to

 829-7   conform to Sections 1 and 2, Chapter 179 (H.B. No. 247), Acts of

 829-8   the 74th Legislature, Regular Session, 1995, to read as follows:

 829-9         Sec. 502.266.  SURVIVING SPOUSES OF CERTAIN MILITARY

829-10   VETERANS.  (a)  The surviving spouse of a person who was issued

829-11   license plates under Section 502.254 is entitled to continue to

829-12   register one motor vehicle under that section as long as the spouse

829-13   remains unmarried.

829-14         (b)  The surviving spouse of a person who would be eligible

829-15   for license plates under Section 502.257[, 502.259, or 502.260] is

829-16   entitled to register one motor vehicle under that section as long

829-17   as the spouse remains unmarried.

829-18         (c)  The surviving spouse of a person who was killed in

829-19   action while serving in the United States armed forces is entitled

829-20   to register one or more motor vehicles [vehicle] under Section

829-21   502.258 as long as the spouse remains unmarried.

829-22         (d)  The surviving spouse of a person who would be eligible

829-23   for license plates under Section 502.259 or 502.260 is eligible to

829-24   register one or more motor vehicles under that section as long as

 830-1   the spouse remains unmarried.

 830-2         (e)  The surviving spouse of a person who would be eligible

 830-3   for license plates under Section 502.264 is eligible to register

 830-4   one or more motor vehicles under that section.

 830-5         (f)  An applicant for registration under this section must

 830-6   submit proof of the eligibility of the applicant's deceased spouse

 830-7   for registration under Section 502.254, 502.257, 502.258, 502.259,

 830-8   [or] 502.260, or 502.264, as applicable.

 830-9         (g) [(e)]  The county assessor-collector shall require an

830-10   applicant for registration under this section to make a statement

830-11   that the spouse is unmarried.  The statement must be sworn if the

830-12   spouse renews a registration under Section 502.257, 502.259, or

830-13   502.260.

830-14         (k)  Sections 1 and 2, Chapter 179 (H.B. No. 247), Acts of

830-15   the 74th Legislature, Regular Session, 1995, are repealed.

830-16         SECTION 30.55.  Section 502.270, Transportation Code, is

830-17   amended to conform to Section 1(11), Chapter 1058 (H.B. No. 3050),

830-18   Acts of the 74th Legislature, Regular Session, 1995, by amending

830-19   Subsections (d) and (e) and adding Subsections (f)-(h) to read as

830-20   follows:

830-21         (d)  The department shall send [deposit] $25 of each fee

830-22   collected under this section to the comptroller for deposit in the

830-23   general revenue fund.  If the fee is for the issuance of license

830-24   plates described by Subsection (a)(1), the money shall be deposited

 831-1   to the credit of the institution of higher education designated on

 831-2   the license plates.  If the fee is for the issuance of license

 831-3   plates described by Subsection (a)(2), the money shall be deposited

 831-4   to the credit of the Texas Higher Education Coordinating Board.

 831-5         (e)  Money deposited under Subsection (d) may be used only

 831-6   for scholarships to students who demonstrate a need for financial

 831-7   assistance under Texas Higher Education Coordinating Board rule.

 831-8         (f)  Money deposited for the issuance of license plates

 831-9   described by Subsection (a)(1) is supplementary and is not income

831-10   for purposes of reducing general revenue appropriations to the

831-11   institution of higher education designated on the license plates.

831-12         (g)  Money deposited for the issuance of license plates

831-13   described by Subsection (a)(2):

831-14               (1)  shall be allocated to students at the college or

831-15   university designated on the plates; and

831-16               (2)  is in addition to other money that the board may

831-17   allocate to that college or university.

831-18         (h) [(e)]  If the owner of a vehicle registered under this

831-19   section disposes of the vehicle during the registration year, the

831-20   owner shall return the special license plates to the department.

831-21         SECTION 30.56.  (a)  Section 502.275, Transportation Code, is

831-22   amended to conform to Section 1, Chapter 443 (H.B. No. 1225), Acts

831-23   of the 74th Legislature, Regular Session, 1995, to read as follows:

831-24         Sec. 502.275.  CERTAIN EXHIBITION [ANTIQUE] VEHICLES;

 832-1   OFFENSE.  (a)  The department shall issue specially designed

 832-2   license plates for a passenger car, truck, or motorcycle that:

 832-3               (1)  is at least 25 years old;

 832-4               (2)  is a collector's item;

 832-5               (3)  is used exclusively for exhibitions, club

 832-6   activities, parades, and other functions of public interest, and is

 832-7   not used for regular transportation; and

 832-8               (4)  does not carry advertising.

 832-9         (b)  Special license plates issued under Subsection (a) [this

832-10   section] must include the words "Antique Auto," "Antique Truck," or

832-11   "Antique Motorcycle," as appropriate.

832-12         (c)  In lieu of issuing plates under Subsection (a), the

832-13   department may approve for use license plates presented by the

832-14   owner that were issued by this state in the same year as the model

832-15   year of a vehicle described by Subsection (a).  If the department

832-16   approves license plates under this subsection [section], the

832-17   department shall issue a symbol for attachment to one of the

832-18   license plates, as determined by the department, showing the year

832-19   in which the vehicle was registered under this section.

832-20         (d)  License plates issued under Subsection (a) or approved

832-21   under Subsection (c) [this section] are valid for a maximum period

832-22   of five years.

832-23         (e)  The department shall issue license plates under

832-24   Subsection (a) or approve license plates under Subsection (c) [this

 833-1   section] and shall issue a registration receipt to a person who:

 833-2               (1)  files a sworn written application with the county

 833-3   assessor-collector of the county in which the person resides that:

 833-4                     (A)  is on a form provided by the department;

 833-5                     (B)  if the vehicle is a passenger car, truck, or

 833-6   motorcycle, contains the make, body style, motor number, age of the

 833-7   vehicle, and any other information required by the department; and

 833-8                     (C)  states that the vehicle and the use of the

 833-9   vehicle comply with Subsection (a); and

833-10               (2)  pays a fee of:

833-11                     (A)  $10 for each year or portion of a year

833-12   remaining in the five-year registration period, if the vehicle was

833-13   manufactured in 1921 or a later year; or

833-14                     (B)  $8 for each year or portion of a year

833-15   remaining in the five-year registration period, if the vehicle was

833-16   manufactured before 1921.

833-17         (f)  The department shall issue a registration receipt to a

833-18   person who:

833-19               (1)  files a sworn written application for registration

833-20   of a former military vehicle with the county assessor-collector of

833-21   the county in which the person resides that:

833-22                     (A)  is on a form provided by the department;

833-23                     (B)  contains the information required by the

833-24   department, including:

 834-1                           (i)  the vehicle's year of manufacture; and

 834-2                           (ii)  a description of the vehicle as

 834-3   required by the department; and

 834-4                     (C)  states that the vehicle and the use of the

 834-5   vehicle comply with Subsections (a)(2)-(4); and

 834-6               (2)  pays the fee required by Subsection (e)(2).

 834-7         (g)  A vehicle registered under this section is exempt from

 834-8   the registration fee otherwise prescribed by this chapter.

 834-9         (h) [(g)]  Registration under this section is valid without

834-10   renewal for the period for which the vehicle was registered if the

834-11   vehicle is owned by the same person.

834-12         (i) [(h)]  A county assessor-collector may not renew the

834-13   registration of a vehicle under this section until the registered

834-14   owner surrenders to the assessor-collector any [the] license plates

834-15   or symbol and the registration receipt issued for the vehicle for

834-16   the previous period.

834-17         (j) [(i)]  If a vehicle registered under this section is

834-18   transferred to another owner or is junked, is destroyed, or

834-19   otherwise ceases to exist, the registration receipt and any license

834-20   plates or symbol are immediately void and the license plates or

834-21   symbol issued under this section shall be sent immediately to the

834-22   department.

834-23         (k)  A former military vehicle operated on a public highway

834-24   is not required to display license plates or registration insignia

 835-1   if:

 835-2               (1)  proof of current registration for the vehicle, in

 835-3   the form prescribed by the department, is carried in the vehicle;

 835-4   and

 835-5               (2)  the vehicle displays in a prominent location on

 835-6   the vehicle a registration mark prescribed by the department.

 835-7         (l)  The department shall allow use of a unique

 835-8   identification mark on a former military vehicle that is similar to

 835-9   the mark assigned the vehicle by the armed force in which the

835-10   vehicle was used.  If such a mark is not used, the department shall

835-11   designate a registration mark for the vehicle.  A registration mark

835-12   designated by the department must consist of numbers or letters, or

835-13   both numbers and letters, that are at least two inches high.

835-14         (m)  To the extent possible, the location and design of a

835-15   registration mark for a former military vehicle registered under

835-16   this section must conform to the vehicle's official military design

835-17   and markings.

835-18         (n) [(j)]  An owner of a vehicle registered under this

835-19   section who violates this section commits an offense.  An offense

835-20   under this section is a misdemeanor punishable by a fine of not

835-21   less than $5 or more than $200.

835-22         (o)  In this section, "former military vehicle" means a

835-23   vehicle that:

835-24               (1)  has been, but is not currently, used by the armed

 836-1   forces of a national government; and

 836-2               (2)  displays markings indicating it was a military

 836-3   vehicle.

 836-4         (b)  Section 1, Chapter 443 (H.B. No. 1225), Acts of the 74th

 836-5   Legislature, Regular Session, 1995, is repealed.

 836-6         SECTION 30.57.  Section 502.276(a), Transportation Code, is

 836-7   amended to more closely conform to the law from which that section

 836-8   was derived to read as follows:

 836-9         (a)  An owner is not required to register a farm tractor, a

836-10   farm trailer[,] or farm semitrailer that has a gross weight of

836-11   4,000 pounds or less, or an implement of husbandry, if the vehicle

836-12   [that] is operated only temporarily on the highways.

836-13         SECTION 30.58.  (a)  Section 502.280(e), Transportation Code,

836-14   is amended to conform to Section 1, Chapter 733 (H.B. No. 1794),

836-15   Acts of the 74th Legislature, Regular Session, 1995, to read as

836-16   follows:

836-17         (e)  In this section, "forestry vehicle" means a vehicle used

836-18   exclusively for transporting forest products in their natural

836-19   state, including logs, debarked logs, untreated ties, stave bolts,

836-20   plywood bolts, pulpwood billets, wood chips, stumps, sawdust, moss,

836-21   bark, wood shavings, and property used in production of those

836-22   products.

836-23         (b)  Section 1, Chapter 733 (H.B. No. 1794), Acts of the 74th

836-24   Legislature, Regular Session, 1995, is repealed.

 837-1         SECTION 30.59.  Section 502.281(c), Transportation Code, is

 837-2   amended to conform to the transfer of motor carrier registration

 837-3   responsibilities from the Railroad Commission of Texas to the Texas

 837-4   Department of Transportation by Chapter 705 (S.B. No. 3), Acts of

 837-5   the 74th Legislature, Regular Session, 1995, to read as follows:

 837-6         (c)  The department shall issue license plates under this

 837-7   section to a person engaged in the business of using a tow truck

 837-8   who:

 837-9               (1)  applies on a form prescribed by the department to

837-10   the county assessor-collector of the county in which the person

837-11   resides;

837-12               (2)  pays a fee of $15, in addition to the fee

837-13   prescribed by Section 502.162; and

837-14               (3)  submits a certified copy of the registration

837-15   certificate [of registration] issued by the department [Railroad

837-16   Commission of Texas] for the tow truck.

837-17         SECTION 30.60.  (a)  Subchapter F, Chapter 502,

837-18   Transportation Code, is amended to conform to Section 1, Chapter

837-19   441 (H.B. No. 496), Acts of the 74th Legislature, Regular Session,

837-20   1995, by adding Section 502.290 to read as follows:

837-21         Sec. 502.290.  FOREIGN ORGANIZATION VEHICLES.  (a)  The

837-22   department shall issue specially designed license plates for

837-23   passenger cars and light trucks owned by an instrumentality

837-24   established by a foreign government recognized by the United States

 838-1   before January 1, 1979, that is without official representation or

 838-2   diplomatic relations with the United States.

 838-3         (b)  A vehicle for which license plates are issued under this

 838-4   section is exempt from the fee under Section 502.161.

 838-5         (c)  License plates issued under this section must include

 838-6   the words "Foreign Organization."

 838-7         (b)  Section 1, Chapter 441 (H.B. No. 496), Acts of the 74th

 838-8   Legislature, Regular Session, 1995, is repealed.

 838-9         SECTION 30.61.  (a)  Sections 502.352(a), (c), and (f),

838-10   Transportation Code, are amended to conform to Section 1, Chapter

838-11   875 (S.B. No. 1420), Acts of the 74th Legislature, Regular Session,

838-12   1995, to read as follows:

838-13         (a)  The department may issue a temporary permit for a

838-14   commercial motor vehicle, trailer, semitrailer, or motor bus that:

838-15               (1)  is owned by a resident of the United States, the

838-16   United Mexican States, or Canada;

838-17               (2)  is subject to registration in this state; and

838-18               (3)  is not authorized to travel on a public highway

838-19   because of the lack of registration in this state or the lack of

838-20   reciprocity with the state or province in which the vehicle is

838-21   registered.

838-22         (c)  A person may obtain a permit under this section by:

838-23               (1)  applying to the county assessor-collector or the

838-24   department; [and]

 839-1               (2)  paying a fee, in cash or by postal money order or

 839-2   certified check, of:

 839-3                     (A)  $25 for a 72-hour permit; or

 839-4                     (B)  $50 for a 144-hour permit; and

 839-5               (3)  furnishing to the assessor-collector or the

 839-6   department evidence of financial responsibility for the vehicle,

 839-7   the policies to comply with Sections 502.153(c) and 601.168(a) and

 839-8   be written by an insurance company or surety company authorized to

 839-9   write motor vehicle liability insurance in this state.

839-10         (f)  A vehicle issued a permit under this section is subject

839-11   to Subchapters B and F, Chapter 548, unless the vehicle:

839-12               (1)  is registered in another state of the United

839-13   States, in a state of the United Mexican States, or in a province

839-14   of Canada; or

839-15               (2)  is mobile drilling or servicing equipment used in

839-16   the production of gas, crude petroleum, or oil, including a mobile

839-17   crane or hoisting equipment, mobile lift equipment, forklift, or

839-18   tug.

839-19         (b)  Section 1, Chapter 875 (S.B. No. 1420), Acts of the 74th

839-20   Legislature, Regular Session, 1995, is repealed.

839-21         SECTION 30.62.  (a)  Subchapter F, Chapter 502,

839-22   Transportation Code, is amended to conform to Section 1, Chapter

839-23   164 (S.B. No. 832), Acts of the 74th Legislature, Regular Session,

839-24   1995, by adding Section 502.291 to read as follows:

 840-1         Sec. 502.291.  UNITED STATES OLYMPIC COMMITTEE LICENSE

 840-2   PLATES.  (a)  The department shall issue specially designed United

 840-3   States Olympic Committee license plates for passenger cars and

 840-4   light trucks.

 840-5         (b)  The license plates must include the words "United States

 840-6   Olympic Committee" and be of a color, quality, and design approved

 840-7   by the United States Olympic Committee.

 840-8         (c)  The department shall issue license plates under this

 840-9   section to a person who:

840-10               (1)  applies to the assessor-collector of the county in

840-11   which the person resides on a form provided by the department; and

840-12               (2)  pays an annual fee of $20, in addition to the fee

840-13   prescribed by Section 502.161, and, if personalized prestige

840-14   license plates are issued, in addition to the fee prescribed by

840-15   Section 502.251.

840-16         (d)  Of each fee collected under this section, the department

840-17   shall deposit $10 to the credit of the state highway fund.

840-18         (e)  If the owner of a vehicle registered under this section

840-19   disposes of the vehicle during the registration year, the owner

840-20   shall return the special license plates to the department.

840-21         (b)  Section 1, Chapter 164 (S.B. No. 832), Acts of the 74th

840-22   Legislature, Regular Session, 1995, is repealed.

840-23         SECTION 30.63.  (a) Section 502.353, Transportation Code, is

840-24   amended to conform to Section 1, Chapter 350 (S.B. No. 981), Acts

 841-1   of the 74th Legislature, Regular Session, 1995, to read as follows:

 841-2         Sec. 502.353.  FOREIGN COMMERCIAL VEHICLES; ANNUAL PERMITS

 841-3   [IN COUNTIES BORDERING MEXICO]; OFFENSE.  (a)  The department may

 841-4   issue an annual [a temporary] permit to a foreign commercial motor

 841-5   vehicle, trailer, or semitrailer that:

 841-6               (1)  is subject to registration in this state; and

 841-7               (2)  is not authorized to travel on a public highway

 841-8   because of the lack of registration in this state or the lack of

 841-9   reciprocity with the state or country in which the vehicle is

841-10   registered.

841-11         (b)  A permit issued under this section:

841-12               (1)  is in lieu of registration; and

841-13               (2)  is valid for a vehicle registration year to begin

841-14   on the first day of a calendar month designated by the department

841-15   and end on the last day of the last calendar month of the

841-16   registration year  [not more than 24 hours, effective from the date

841-17   and time shown on the receipt issued as evidence of registration

841-18   under this section; and]

841-19               [(3)  allows a vehicle to transport property between

841-20   the United Mexican States, the county of entry, and a second

841-21   contiguous county bordering the United Mexican States, as specified

841-22   in the permit].

841-23         (c)  A permit may not be issued under this section for the

841-24   importation of citrus fruit into this state from a foreign country

 842-1   except for foreign export or processing for foreign export.

 842-2         (d)  A person may obtain a permit under this section by:

 842-3               (1)  applying to the [county assessor-collector or the]

 842-4   department;

 842-5               (2)  paying a fee in the amount required by Subsection

 842-6   (e) [of $5] in cash or by postal money order or certified check;

 842-7   and

 842-8               (3)  furnishing evidence of financial responsibility

 842-9   for [that] the motor vehicle [is insured under an insurance policy]

842-10   that complies with Sections 502.153(c) and 601.168(a), the policies

842-11   to be [Section 601.072 and that is] written by an insurance company

842-12   or surety company authorized to write motor vehicle liability

842-13   insurance in this state.

842-14         (e)  The fee for a permit under this section is the fee that

842-15   would be required for registering the vehicle under Section 502.162

842-16   or 502.167, except as provided by Subsection (f).

842-17         (f)  A vehicle registered under this section is exempt from

842-18   the token fee and is not required to display the associated

842-19   distinguishing license plate if the vehicle:

842-20               (1)  is a semitrailer that has a gross weight of more

842-21   than 6,000 pounds; and

842-22               (2)  is used or intended to be used in combination with

842-23   a truck tractor or commercial motor vehicle with a manufacturer's

842-24   rated carrying capacity of more than one ton.

 843-1         (g)  A vehicle registered under this section is not subject

 843-2   to the fee required by Section 502.172 or 502.173.

 843-3         (h)  [A county assessor-collector shall report and send a fee

 843-4   collected under this section in the manner provided by Sections

 843-5   502.102 and 502.105.]

 843-6         [(f)]  The department may:

 843-7               (1)  adopt rules to administer this section; and

 843-8               (2)  prescribe an application for a permit and other

 843-9   forms under this section.

843-10         (i) [(g)]  A person who violates this section commits an

843-11   offense.  An offense under this section is a misdemeanor punishable

843-12   by a fine not to exceed $200.

843-13         (b)  Section 1, Chapter 350 (S.B. No. 981), Acts of the 74th

843-14   Legislature, Regular Session, 1995, is repealed.

843-15         SECTION 30.64.  Sections 502.402(b) and (c), Transportation

843-16   Code, are repealed to conform to the repeal of the law from which

843-17   those subsections were derived by Section 9(6), Chapter 34 (S.B.

843-18   No. 178), Acts of the 74th Legislature, Regular Session, 1995.

843-19         SECTION 30.65.  Sections 502.408(b), (c), and (d),

843-20   Transportation Code, are repealed to conform to the repeal of the

843-21   law from which those subsections were derived by Section 9(6),

843-22   Chapter 34 (S.B. No. 178), Acts of the 74th Legislature, Regular

843-23   Session, 1995.

843-24         SECTION 30.66.  Sections 502.409(c), (d), and (e),

 844-1   Transportation Code, are repealed to conform to the repeal of the

 844-2   law from which those subsections were derived by Section 9(6),

 844-3   Chapter 34 (S.B. No. 178), Acts of the 74th Legislature, Regular

 844-4   Session, 1995.

 844-5         SECTION 30.67.  (a)  Section 502.410, Transportation Code, is

 844-6   amended to conform more closely to the law from which it was

 844-7   derived to read as follows:

 844-8         Sec. 502.410.  FALSIFICATION OR FORGERY.  (a)  A person

 844-9   commits an offense if the person knowingly provides false or

844-10   incorrect information or without legal authority signs the name of

844-11   another person on a statement or application filed or given as

844-12   required by this chapter.

844-13         (b)  Subsection (a) does not apply to a statement or

844-14   application filed or given under Section 502.184, 502.253, 502.267,

844-15   502.281, 502.352, 502.353, 502.354, or 502.355.

844-16         (c)  An offense under this section is a felony of the third

844-17   degree.

844-18         (b)  The change in law made by Subsection (a) of this section

844-19   to Section 502.410, Transportation Code, does not prohibit a person

844-20   who knowingly provides false or incorrect information or who

844-21   without legal authority signs the name of another person on a

844-22   statement or application filed or given under Section 502.184,

844-23   502.253, 502.267, 502.281, 502.352, 502.353, 502.354, or 502.355,

844-24   Transportation Code, from being prosecuted for the offense under a

 845-1   law other than Section 502.410, Transportation Code.

 845-2         SECTION 30.68.  Section 17, Chapter 705 (S.B. No. 3), Acts of

 845-3   the 74th Legislature, Regular Session, 1995, is repealed.

 845-4         SECTION 30.69.  (a)  Section 503.001, Transportation Code, is

 845-5   amended to conform to Section 1, Chapter 430 (S.B. No. 1446), Acts

 845-6   of the 74th Legislature, Regular Session, 1995, to read as follows:

 845-7         Sec. 503.001.  DEFINITIONS.  In this chapter:

 845-8               (1)  "Commission" means the Texas Transportation

 845-9   Commission.

845-10               (2)  "Dealer" means a person who regularly and actively

845-11   buys, sells, or exchanges vehicles at an established and permanent

845-12   location.  The term includes a franchised motor vehicle dealer, an

845-13   independent motor vehicle dealer, and a wholesale motor vehicle

845-14   dealer.

845-15               (3)  "Department" means the Texas Department of

845-16   Transportation.

845-17               (4)  "Drive-a-way operator" means a person who

845-18   transports and delivers a vehicle in this state from the

845-19   manufacturer or another point of origin to a location in this state

845-20   using the vehicle's own power or using the full-mount method, the

845-21   saddle-mount method, the tow-bar method, or a combination of those

845-22   methods.

845-23               (5)  "Franchise" has the meaning assigned by the Texas

845-24   Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas

 846-1   Civil Statutes).

 846-2               (6)  "Franchised motor vehicle dealer" means a person

 846-3   engaged in the business of buying, selling, or exchanging new motor

 846-4   vehicles at an established and permanent place of business under a

 846-5   franchise in effect with a motor vehicle manufacturer or

 846-6   distributor.

 846-7               (7)  "Independent motor vehicle dealer" means a dealer

 846-8   other than a franchised motor vehicle dealer or a wholesale motor

 846-9   vehicle dealer.

846-10               (8)  "Manufacturer" means a person who manufactures,

846-11   distributes, or assembles new vehicles.

846-12               (9) [(6)]  "Motorcycle" has the meaning assigned by

846-13   Section 502.001.

846-14               (10) [(7)]  "Motor vehicle" has the meaning assigned by

846-15   Section 502.001.

846-16               (11) [(8)]  "Semitrailer" has the meaning assigned by

846-17   Section 502.001.

846-18               (12) [(9)]  "Trailer" has the meaning assigned by

846-19   Section 502.001.

846-20               (13) [(10)]  "Vehicle" means a motor vehicle,

846-21   motorcycle, house trailer, trailer, or semitrailer.

846-22               (14) [(11)]  "Wholesale motor vehicle auction" means

846-23   the offering of a motor vehicle for sale to the highest bidder

846-24   during a transaction that is one of a series of regular periodic

 847-1   transactions that occur at a permanent location.

 847-2               (15)  "Wholesale motor vehicle dealer" means a dealer

 847-3   who sells motor vehicles only to a person who is:

 847-4                     (A)  the holder of a dealer's general

 847-5   distinguishing number; or

 847-6                     (B)  a foreign dealer authorized by a law of this

 847-7   state or interstate reciprocity agreement to purchase a vehicle in

 847-8   this state without remitting the motor vehicle sales tax.

 847-9         (b)  Sections 503.007(a) and (b), Transportation Code, are

847-10   amended to conform to Section 4, Chapter 430 (S.B. No. 1446), Acts

847-11   of the 74th Legislature, Regular Session, 1995, to read as follows:

847-12         (a)  The fee for an original general distinguishing number is

847-13   $500 [$250].

847-14         (b)  The fee for the renewal of a general distinguishing

847-15   number is $200 [$100].

847-16         (c)  Sections 503.008(a) and (b), Transportation Code, are

847-17   amended to conform to Section 4, Chapter 430 (S.B. No. 1446), Acts

847-18   of the 74th Legislature, Regular Session, 1995, to read as follows:

847-19         (a)  The fee for a metal dealer's license plate is $20 [$10].

847-20         (b)  The fee for a manufacturer's license plate is $40 [$20].

847-21         (d)  Section 503.021, Transportation Code, is amended to

847-22   conform to Section 1, Chapter 430 (S.B. No. 1446), Acts of the 74th

847-23   Legislature, Regular Session, 1995, to read as follows:

847-24         Sec. 503.021.  DEALER GENERAL DISTINGUISHING NUMBER.  A

 848-1   person may not engage in business as a dealer, directly or

 848-2   indirectly, including by consignment, without a dealer general

 848-3   distinguishing number in one of the six categories described by

 848-4   Section 503.029(a)(6) for each location from which the person

 848-5   conducts business as a dealer.

 848-6         (e)  Section 503.029(a), Transportation Code, is amended to

 848-7   conform to Section 1, Chapter 430 (S.B. No. 1446), Acts of the 74th

 848-8   Legislature, Regular Session, 1995, to read as follows:

 848-9         (a)  An applicant for an original or renewal dealer general

848-10   distinguishing number must submit to the department a written

848-11   application on a form that:

848-12               (1)  is provided by the department;

848-13               (2)  contains the information required by the

848-14   department;

848-15               (3)  contains information that demonstrates the person

848-16   meets the requirements prescribed by Section 503.032;

848-17               (4)  contains information that demonstrates the

848-18   applicant has complied with all applicable state laws and municipal

848-19   ordinances;

848-20               (5)  states that the applicant agrees to allow the

848-21   department to examine during working hours the ownership papers for

848-22   each registered or unregistered vehicle in the applicant's

848-23   possession or control; and

848-24               (6)  specifies whether the applicant proposes to be a:

 849-1                     (A)  franchised motor vehicle dealer;

 849-2                     (B)  independent motor vehicle dealer;

 849-3                     (C)  wholesale motor vehicle dealer;

 849-4                     (D)  motorcycle dealer;

 849-5                     (E)  house trailer dealer; or

 849-6                     (F)  trailer or semitrailer dealer [in motor

 849-7   vehicles, motorcycles, house trailers, or trailers or

 849-8   semitrailers].

 849-9         (f)  Section 503.032(b), Transportation Code, is amended to

849-10   conform to Section 1, Chapter 430 (S.B. No. 1446), Acts of the 74th

849-11   Legislature, Regular Session, 1995, to read as follows:

849-12         (b)  An applicant for a general distinguishing number as a

849-13   wholesale motor vehicle dealer is not required to maintain display

849-14   space in accordance with Subsection (a)(3) [if the applicant buys a

849-15   vehicle from, sells a vehicle to, or exchanges vehicles with only

849-16   another dealer who has a general distinguishing number].

849-17         (g)  Section 503.034(c), Transportation Code, is amended to

849-18   conform to Section 4, Chapter 430 (S.B. No. 1446), Acts of the 74th

849-19   Legislature, Regular Session, 1995, to read as follows:

849-20         (c)  A dealer's general distinguishing number expires on

849-21   March 31 of each year, unless provided otherwise by law or rule of

849-22   the department's Motor Vehicle Board.

849-23         (h)  Section 503.036, Transportation Code, is amended to

849-24   conform to Section 2, Chapter 430 (S.B. No. 1446), Acts of the 74th

 850-1   Legislature, Regular Session, 1995, to read as follows:

 850-2         Sec. 503.036.  RIGHTS [REASSIGNMENT] OF DEALER [EVIDENCE OF

 850-3   OWNERSHIP].  (a)  Except as provided by Subsections (b), (c), and

 850-4   (d), a [A] dealer may reassign any basic evidence of ownership,

 850-5   including a manufacturer's certificate of origin or a certificate

 850-6   of title, for a vehicle owned by the dealer that the dealer is not

 850-7   otherwise prohibited by law from selling only if the dealer:

 850-8               (1)  is licensed by the department's Motor Vehicle

 850-9   Board; or

850-10               (2)  has filed security as required by Section 503.033.

850-11         (b)  A person who holds a franchised motor vehicle dealer's

850-12   general distinguishing number may buy, sell, or exchange a new or

850-13   used motor vehicle and may reassign a manufacturer's certificate of

850-14   origin, a certificate of title, or other basic evidence of

850-15   ownership for a vehicle owned by the person that the person is not

850-16   otherwise prohibited by law from selling.

850-17         (c)  A person who holds an independent motor vehicle dealer's

850-18   general distinguishing number may reassign a basic evidence of

850-19   ownership, including a certificate of title, for a vehicle owned by

850-20   the person that the person is not otherwise prohibited by law from

850-21   selling.

850-22         (d)  A person who holds a wholesale motor vehicle dealer's

850-23   general distinguishing number may sell a motor vehicle only to a

850-24   person who is:

 851-1               (1)  a dealer who holds a general distinguishing

 851-2   number; or

 851-3               (2)  a foreign dealer authorized by a law of this state

 851-4   or interstate reciprocity agreement to purchase a vehicle in this

 851-5   state without remitting the motor vehicle sales tax.

 851-6         (i)  Section 503.038(a), Transportation Code, is amended to

 851-7   conform to Section 3, Chapter 430 (S.B. No. 1446), Acts of the 74th

 851-8   Legislature, Regular Session, 1995, to read as follows:

 851-9         (a)  The department may cancel a dealer's general

851-10   distinguishing number if the dealer:

851-11               (1)  files a false or forged title document, including

851-12   an affidavit making application for a certified copy of a title;

851-13               (2)  files a false or forged tax document, including a

851-14   sales tax affidavit;

851-15               (3)  fails to take assignment of any basic evidence of

851-16   ownership, including a certificate of title or manufacturer's

851-17   certificate, for a vehicle the dealer acquires;

851-18               (4)  fails to assign any basic evidence of ownership,

851-19   including a certificate of title or manufacturer's certificate, for

851-20   a vehicle the dealer sells;

851-21               (5)  uses or permits the use of a metal dealer's

851-22   license plate or a dealer's temporary cardboard tag on a vehicle

851-23   that the dealer does not own or control or that is not in stock and

851-24   offered for sale;

 852-1               (6)  makes a material misrepresentation in an

 852-2   application or other information filed with the department;

 852-3               (7)  fails to maintain the qualifications for a general

 852-4   distinguishing number;

 852-5               (8)  fails to provide to the department within 30 days

 852-6   after the date of demand by the department satisfactory and

 852-7   reasonable evidence that the person is regularly and actively

 852-8   engaged in business as a wholesale or retail dealer;

 852-9               (9)  has been licensed for at least 12 months and has

852-10   not assigned at least five vehicles during the previous 12-month

852-11   period;

852-12               (10)  has failed to demonstrate compliance with

852-13   Sections 23.12, 23.121, and 23.122, Tax Code;

852-14               (11)  uses or allows the use of the dealer's general

852-15   distinguishing number or the location for which the general

852-16   distinguishing number is issued to avoid the requirements of this

852-17   chapter;

852-18               (12) [(11)]  misuses or allows the misuse of a

852-19   temporary cardboard tag authorized under this chapter;

852-20               (13) [(12)]  refuses to show on a buyer's temporary

852-21   cardboard tag the date of sale or other reasonable information

852-22   required by the department; or

852-23               (14) [(13)]  otherwise violates this chapter or a rule

852-24   adopted under this chapter.

 853-1         (j)  Section 503.066(e), Transportation Code, is amended to

 853-2   conform to Section 4, Chapter 430 (S.B. No. 1446), Acts of the 74th

 853-3   Legislature, Regular Session, 1995, to read as follows:

 853-4         (e)  A license plate issued under this section expires on

 853-5   March 31 of the year after the year of issuance, unless provided

 853-6   otherwise by law or rule of the department's Motor Vehicle Board.

 853-7         (k)  Sections 1-4, Chapter 430 (S.B. No. 1446), Acts of the

 853-8   74th Legislature, Regular Session, 1995, are repealed.

 853-9         SECTION 30.70.  (a)  Section 503.037, Transportation Code, is

853-10   amended to conform to Section 1, Chapter 537 (S.B. No. 1314), Acts

853-11   of the 74th Legislature, Regular Session, 1995, by amending

853-12   Subsection (b) and adding Subsection (d) to read as follows:

853-13         (b)  Except as provided by Subsection (d), a [A] person who

853-14   holds a wholesale motor vehicle auction general distinguishing

853-15   number may not sell a motor vehicle to a person other than a person

853-16   who:

853-17               (1)  is a dealer; or

853-18               (2)  has a license and, if applicable, a bond issued by

853-19   the appropriate authority of another state or nation.

853-20         (d)  Subsection (b) does not prohibit a person who holds a

853-21   wholesale motor vehicle auction general distinguishing number from

853-22   offering for sale a motor vehicle to a person who is not a dealer

853-23   or who does not have a license issued by the appropriate authority

853-24   of another state, if the motor vehicle is owned by:

 854-1               (1)  this state or a department, agency, or subdivision

 854-2   of this state; or

 854-3               (2)  the United States.

 854-4         (b)  Section 1, Chapter 537 (S.B. No. 1314), Acts of the 74th

 854-5   Legislature, Regular Session, 1995, is repealed.

 854-6         SECTION 30.71.  (a)  Section 520.023, Transportation Code, is

 854-7   amended to conform to Section 7, Chapter 1015 (S.B. No. 1445), Acts

 854-8   of the 74th Legislature, Regular Session, 1995, to read as follows:

 854-9         Sec. 520.023.  POWERS AND DUTIES OF DEPARTMENT ON TRANSFER OF

854-10   USED VEHICLE.  (a)  On receipt of a written notice of transfer from

854-11   the transferor of a motor vehicle, the department shall indicate

854-12   the transfer on the motor vehicle records maintained by the

854-13   department.

854-14         (b)  The department may design the written notice of transfer

854-15   to be part of the certificate of title for the vehicle.  The form

854-16   shall be provided by the department and must include a place for

854-17   the transferor to state:

854-18               (1)  the vehicle identification number of the vehicle;

854-19               (2)  the number of the license plate issued to the

854-20   vehicle, if any;

854-21               (3)  the full name and address of the transferor;

854-22               (4)  the full name and address of the transferee;

854-23               (5)  the date the transferor delivered possession of

854-24   the vehicle to the transferee;

 855-1               (6)  the signature of the transferor; and

 855-2               (7)  the date the transferor signed the form.

 855-3         (c)  After the date of the transfer of the vehicle shown on

 855-4   the records of the department, the transferee of the vehicle shown

 855-5   on the records is rebuttably presumed to be:

 855-6               (1)  the owner of the vehicle; and

 855-7               (2)  subject to civil and criminal liability arising

 855-8   out of the use, operation, or abandonment of the vehicle, to the

 855-9   extent that ownership of the vehicle subjects the owner of the

855-10   vehicle to criminal or civil liability under another provision of

855-11   law.

855-12         (d)  The department may adopt:

855-13               (1)  rules to implement this section; and

855-14               (2)  a fee for filing a notice of transfer under this

855-15   section in an amount not to exceed the lesser of the actual cost to

855-16   the department of implementing this section or $5.

855-17         (e)  This section does not impose or establish civil or

855-18   criminal liability on the owner of a motor vehicle who transfers

855-19   ownership of the vehicle but does not disclose the transfer to the

855-20   department.

855-21         (f)  This section does not require the department to issue a

855-22   certificate of title to a person shown on a notice of transfer as

855-23   the transferee of a motor vehicle.  The department may not issue a

855-24   certificate of title for the vehicle until the transferee applies

 856-1   to the county assessor-collector as provided by Chapter 501.

 856-2         (b)  Section 7, Chapter 1015 (S.B. No. 1445), Acts of the

 856-3   74th Legislature, Regular Session, 1995, is repealed.

 856-4         SECTION 30.72.  Subchapter A, Chapter 521, Transportation

 856-5   Code, is amended to more closely conform to the law from which that

 856-6   subchapter was derived by adding Section 521.005 to read as

 856-7   follows:

 856-8         Sec. 521.005.  RULEMAKING AUTHORITY.   The department may

 856-9   adopt rules necessary to administer this chapter.

856-10         SECTION 30.73.  (a)  Section 521.022(d), Transportation Code,

856-11   is amended to conform to Section 55, Chapter 260 (S.B. No. 1), Acts

856-12   of the 74th Legislature, Regular Session, 1995, to read as follows:

856-13         (d)  Before employing a person to operate a school bus, a

856-14   driver's license check shall be made with the department and the

856-15   person's driving record must be acceptable according to standards

856-16   [jointly] developed by [the State Board of Education and] the

856-17   department.

856-18         (b)  Section 521.022(e), Transportation Code, is amended to

856-19   more closely conform to the law from which it was derived and to

856-20   conform to Section 55, Chapter 260 (S.B. No. 1) and Section 25,

856-21   Chapter 1009 (S.B. No. 964), Acts of the 74th Legislature, Regular

856-22   Session, 1995, to read as follows:

856-23         (e)  Effective on the date and under provisions determined by

856-24   the department [State Board of Education], a school bus operator

 857-1   must have in the operator's possession [hold] a certificate that

 857-2   states that the operator is enrolled in or has completed a driver

 857-3   education [training] course [jointly] approved by the [State Board

 857-4   of Education and the] department in school bus safety education.

 857-5   The certificate is valid for three years.

 857-6         (c)  Section 55, Chapter 260 (S.B. No. 1), Acts of the 74th

 857-7   Legislature, Regular Session, 1995, is repealed.

 857-8         SECTION 30.74.  Section 521.023(c), Transportation Code, is

 857-9   amended to conform to the transfer of motor carrier registration

857-10   responsibilities from the Railroad Commission of Texas to the Texas

857-11   Department of Transportation by Chapter 705 (S.B. No. 3), Acts of

857-12   the 74th Legislature, Regular Session, 1995, to read as follows:

857-13         (c)  This section does not apply to the operator of a vehicle

857-14   operated under a registration [permit or] certificate issued under

857-15   Chapter 643 [by the Railroad Commission of Texas].

857-16         SECTION 30.75.  (a)  Section 521.101(d), Transportation Code,

857-17   is amended to conform to Section 2, Chapter 669 (S.B. No. 1252),

857-18   Acts of the 74th Legislature, Regular Session, 1995, to read as

857-19   follows:

857-20         (d)  The department may require each applicant [An

857-21   application] for an original, [or] renewal, or duplicate personal

857-22   identification certificate to furnish to the department the

857-23   information required by Section 521.142 [must:]

857-24               [(1)  be submitted on a form prescribed by the

 858-1   department; and]

 858-2               [(2)  include the information required by the

 858-3   department].

 858-4         (b)  Section 2, Chapter 669 (S.B. No. 1252), Acts of the 74th

 858-5   Legislature, Regular Session, 1995, is repealed.

 858-6         SECTION 30.76.  (a)  Subchapter G, Chapter 521,

 858-7   Transportation Code, is amended to conform to Section 1, Chapter

 858-8   669 (S.B. No. 1252), Acts of the 74th Legislature, Regular Session,

 858-9   1995, by adding Section 521.1425 to read as follows:

858-10         Sec. 521.1425.  INFORMATION REQUIRED TO BE FURNISHED TO

858-11   DEPARTMENT.  The department may require each applicant for an

858-12   original, renewal, or duplicate driver's license to furnish to the

858-13   department the information required by Section 521.142.

858-14         (b)  Section 1, Chapter 669 (S.B. No. 1252), Acts of the 74th

858-15   Legislature, Regular Session, 1995, is repealed.

858-16         SECTION 30.77.  (a)  Subchapter H, Chapter 521,

858-17   Transportation Code, is amended to conform to Section 26, Chapter

858-18   1009 (S.B. No. 964), Acts of the 74th Legislature, Regular Session,

858-19   1995, by amending Section 521.161 and adding Section 521.1655 to

858-20   read as follows:

858-21         Sec. 521.161.  EXAMINATION OF LICENSE APPLICANTS.  (a)

858-22   Except as otherwise provided by this subchapter, the department

858-23   shall examine each applicant for a driver's license.  The

858-24   examination shall be held in the county in which the applicant

 859-1   resides or applies not later than the 10th day after the date on

 859-2   which the application is made.

 859-3         (b)  The examination must include:

 859-4               (1)  a test of the applicant's:

 859-5                     (A)  vision;

 859-6                     (B)  ability to identify and understand highway

 859-7   signs in English that regulate, warn, or direct traffic; and

 859-8                     (C)  knowledge of the traffic laws of this state;

 859-9               (2)  a demonstration of the applicant's ability to

859-10   exercise ordinary and reasonable control in the operation of a

859-11   motor vehicle of the type that the applicant will be licensed to

859-12   operate; and

859-13               (3)  any additional examination the department finds

859-14   necessary to determine the applicant's fitness to operate a motor

859-15   vehicle safely.

859-16         (c)  The department shall give each applicant the option of

859-17   taking the traffic law and highway sign part of the examination in

859-18   writing in addition to or instead of through a mechanical,

859-19   electronic, or other testing method.  If the applicant takes that

859-20   part of the examination in writing in addition to another testing

859-21   method, the applicant is considered to have passed that part of the

859-22   examination if the applicant passes either version of the

859-23   examination.  The department shall inform each person taking the

859-24   examination of the person's rights under this subsection.

 860-1         (d)  On payment of the required fee, an applicant is entitled

 860-2   to three examinations of each element under Subsection (b) for each

 860-3   application to qualify for a driver's license.  If the applicant

 860-4   has not qualified after the third examination, the applicant must

 860-5   submit a new application accompanied by the required fee.

 860-6         (e) [(d)]  The department may not issue a driver's license to

 860-7   a person who has not passed each examination required under this

 860-8   chapter.

 860-9         Sec. 521.1655.  TESTING BY DRIVER EDUCATION SCHOOL.  (a)  A

860-10   driver education school licensed under the Texas Driver and Traffic

860-11   Safety Education Act (Article 4413(29c), Vernon's Texas Civil

860-12   Statutes) may administer to a student of that school the vision,

860-13   highway sign, and traffic law parts of the examination required by

860-14   Section 521.161.

860-15         (b)  An examination administered under this section complies

860-16   with the examination requirements of this subchapter as to the

860-17   parts of the examination administered.

860-18         (b)  Section 26, Chapter 1009 (S.B. No. 964), Acts of the

860-19   74th Legislature, Regular Session, 1995, is repealed.

860-20         SECTION 30.78.  (a)  Section 521.204, Transportation Code, is

860-21   amended to conform to Section 25, Chapter 1009 (S.B. No. 964), Acts

860-22   of the 74th Legislature, Regular Session, 1995, and to Section 80,

860-23   Chapter 260 (S.B. No. 1), Acts of the 74th Legislature, Regular

860-24   Session, 1995, to read as follows:

 861-1         Sec. 521.204.  RESTRICTIONS ON MINOR.  The department may

 861-2   issue a Class C driver's license to an applicant under 18 years of

 861-3   age only if the applicant:

 861-4               (1)  is 16 years of age or older;

 861-5               (2)  has submitted to the department a driver education

 861-6   certificate issued under Section 9A, Texas Driver and Traffic

 861-7   Safety Education Act (Article 4413(29c), Vernon's Texas Civil

 861-8   Statutes), that states that the person has completed and passed a

 861-9   driver education [training] course approved by the department under

861-10   Section 521.205 or by the Texas [Central] Education Agency;

861-11               (3)  has obtained a high school diploma or its

861-12   equivalent or is a student:

861-13                     (A)  enrolled in a public school, home school, or

861-14   private school who attended school for at least 80 days in the fall

861-15   or spring semester preceding the date of the driver's license

861-16   application; or

861-17                     (B)  who has been enrolled for at least 45 days,

861-18   and is enrolled as of the date of the application, in a program to

861-19   prepare persons to pass the high school equivalency exam; and

861-20               (4)  has passed the examination required by Section

861-21   521.161.

861-22         (b)  Section 25, Chapter 1009 (S.B. No. 964), Acts of the

861-23   74th Legislature, Regular Session, 1995, is repealed.

861-24         SECTION 30.79.  (a)  Subchapter J, Chapter 521,

 862-1   Transportation Code, is amended to conform to Section 30, Chapter

 862-2   1009 (S.B. No. 964), Acts of the 74th Legislature, Regular Session,

 862-3   1995, by adding Section 521.205 to read as follows:

 862-4         Sec. 521.205.  DEPARTMENT-APPROVED COURSES.  (a)  The

 862-5   department by rule shall provide for approval of a driver education

 862-6   course conducted by the parent or legal guardian of a person who is

 862-7   required to complete a driver education course to obtain a Class C

 862-8   license.  The rules must provide that:

 862-9               (1)  the parent or guardian be a licensed driver;

862-10               (2)  the student driver spend a minimum number of hours

862-11   in:

862-12                     (A)  classroom instruction; and

862-13                     (B)  behind-the-wheel instruction;

862-14               (3)  the parent or guardian not be convicted of:

862-15                     (A)  criminally negligent homicide; or

862-16                     (B)  driving while intoxicated; and

862-17               (4)  the parent or guardian not be disabled because of

862-18   mental illness.

862-19         (b)  The department may not approve a course unless it

862-20   determines that the course materials are at least equal to those

862-21   required in a course approved by the Texas Education Agency, except

862-22   that the department may not require that:

862-23               (1)  the classroom instruction be provided in a room

862-24   with particular characteristics or equipment; or

 863-1               (2)  the vehicle used for the behind-the-wheel

 863-2   instruction have equipment other than the equipment otherwise

 863-3   required by law for operation of the vehicle on a highway while the

 863-4   vehicle is not being used for driver training.

 863-5         (c)  The rules must provide a method by which:

 863-6               (1)  approval of a course is obtained; and

 863-7               (2)  an applicant submits proof of completion of the

 863-8   course.

 863-9         (d)  Completion of a driver education course approved under

863-10   this section has the same effect under this chapter as completion

863-11   of a driver education course approved by the Texas Education

863-12   Agency.

863-13         (b)  Section 30, Chapter 1009 (S.B. No. 964), Acts of the

863-14   74th Legislature, Regular Session, 1995, is repealed.

863-15         SECTION 30.80.  (a)  Section 521.222, Transportation Code, is

863-16   amended to conform to Section 27, Chapter 1009 (S.B. No. 964), Acts

863-17   of the 74th Legislature, Regular Session, 1995, to read as follows:

863-18         Sec. 521.222.  INSTRUCTION PERMIT.  (a)  The department or a

863-19   driver education school licensed under the Texas Driver and Traffic

863-20   Safety Education Act (Article 4413(29c), Vernon's Texas Civil

863-21   Statutes) may issue an instruction permit, including a Class A or

863-22   Class B driver's license instruction permit, to a person who:

863-23               (1)  is 15 years of age or older but under 18 years of

863-24   age;

 864-1               (2)  has satisfactorily completed and passed the

 864-2   classroom phase of an approved driver education course, which may

 864-3   be a course approved under Section 521.205;

 864-4               (3)  meets the requirements imposed under Section

 864-5   521.204(3) [521.204]; and

 864-6               (4)  has passed each examination required under Section

 864-7   521.161 other than the driving test.

 864-8         (b)  The department may issue an instruction permit to a

 864-9   person 18 years of age or older who has successfully passed all

864-10   parts of the driver's examination required under Section 521.161

864-11   other than the driving test.

864-12         (c)  A driver education school may issue an instruction

864-13   permit to a person 18 years of age or older who has successfully

864-14   passed:

864-15               (1)  a six-hour adult classroom driver education course

864-16   approved by the Texas Education Agency; and

864-17               (2)  each part of the driver's examination required by

864-18   Section 521.161 other than the driving test.

864-19         (d)  An instruction permit entitles the holder to operate a

864-20   type of motor vehicle on a highway while:

864-21               (1)  the permit is in the holder's possession; and

864-22               (2)  the holder is accompanied by a person occupying

864-23   the seat by the operator who:

864-24                     (A)  holds a license that qualifies the operator

 865-1   to operate that type of vehicle;

 865-2                     (B)  is 18 years of age or older; and

 865-3                     (C)  has at least one year of driving experience.

 865-4         (e) [(d)]  An instruction permit is not required to include a

 865-5   photograph.

 865-6         (b)  Section 27, Chapter 1009 (S.B. No. 964), Acts of the

 865-7   74th Legislature, Regular Session, 1995, is repealed.

 865-8         SECTION 30.81.  (a)  Section 521.223(b), Transportation Code,

 865-9   is amended to conform to Section 31, Chapter 1009 (S.B. No. 964),

865-10   Acts of the 74th Legislature, Regular Session, 1995, to read as

865-11   follows:

865-12         (b)  An applicant for a license under Subsection (a) must be

865-13   15 years of age or older and must:

865-14               (1)  have passed a driver education [training] course

865-15   approved by the department, which may be a course approved under

865-16   Section 521.205; and

865-17               (2)  pass the examination required by Section 521.161.

865-18         (b)  Section 31, Chapter 1009 (S.B. No. 964), Acts of the

865-19   74th Legislature, Regular Session, 1995, is repealed.

865-20         SECTION 30.82.  Section 521.223, Transportation Code, is

865-21   amended to more closely conform to the law from which it was

865-22   derived by adding Subsection (f) to read as follows:

865-23         (f)  In the manner provided by Subchapter N, the department

865-24   may suspend a license issued under this section if the holder of

 866-1   the license is convicted of a moving violation.

 866-2         SECTION 30.83.  (a)  Sections 521.242(a), (b), and (d),

 866-3   Transportation Code, are amended to conform to Section 75, Chapter

 866-4   318 (S.B. No. 15), Acts of the 74th Legislature, Regular Session,

 866-5   1995, to read as follows:

 866-6         (a)  A person whose license has been suspended for a cause

 866-7   other than a physical or mental disability or impairment or a

 866-8   conviction under Section 49.04 [or 49.07], Penal Code, may apply

 866-9   for an occupational license by filing a verified petition with the

866-10   judge of the county court or district court with jurisdiction in

866-11   the county in which:

866-12               (1)  the person resides; or

866-13               (2)  the offense occurred for which the license was

866-14   suspended.

866-15         (b)  A person may apply for an occupational license by filing

866-16   a verified petition only with the judge of the county court or

866-17   district court in which the person was convicted if:

866-18               (1)  the person's license has been automatically

866-19   suspended or canceled under this chapter or Chapter 522 for a

866-20   conviction of an offense under the laws of this state [Section

866-21   49.04 or 49.07, Penal Code]; and

866-22               (2)  the person has not been issued, in the 10 years

866-23   preceding the date of the filing of the petition, more than one

866-24   occupational license after a conviction under the laws of this

 867-1   state [Section 49.04 or 49.07, Penal Code, or Article 6701l-2,

 867-2   Revised Statutes, as that law existed before January 1, 1984].

 867-3         (d)  A petition filed under Subsection (b) must state that

 867-4   the petitioner was convicted in that court for an offense under the

 867-5   laws of this state [Section 49.04 or 49.07, Penal Code].

 867-6         (b)  Section 75, Chapter 318 (S.B. No. 15), Acts of the 74th

 867-7   Legislature, Regular Session, 1995, is repealed.

 867-8         SECTION 30.84.  (a)  Section 521.246(b), Transportation Code,

 867-9   is amended to conform to Section 76, Chapter 318 (S.B. No. 15),

867-10   Acts of the 74th Legislature, Regular Session, 1995, to read as

867-11   follows:

867-12         (b)  As part of the order the judge may [shall] restrict the

867-13   person to the operation of a motor vehicle equipped with an

867-14   ignition interlock device if the judge determines that[:]

867-15               [(1)]  the person's license has been suspended

867-16   following a conviction [person has one or more convictions] under

867-17   Section 49.04, 49.07, or 49.08, Penal Code.  As part of the order,

867-18   the judge shall restrict the person to the operation of a motor

867-19   vehicle equipped with an ignition interlock device if the judge

867-20   determines that:[;]

867-21               (1) [(2)]  the person has two or more convictions under

867-22   any combination of Section 49.04, 49.07, or 49.08, Penal Code; or

867-23               (2) [(3)]  the person's license has been suspended

867-24   after a conviction under Section 49.04, Penal Code, for which the

 868-1   person has been punished under Section 49.09, Penal Code.

 868-2         (b)  Section 521.247(b), Transportation Code, is amended to

 868-3   conform to Section 76, Chapter 318 (S.B. No. 15), Acts of the 74th

 868-4   Legislature, Regular Session, 1995, to read as follows:

 868-5         (b)  The department by rule shall establish general standards

 868-6   for the calibration and maintenance of the devices.  The

 868-7   manufacturer or an authorized representative of the manufacturer is

 868-8   responsible for calibrating and maintaining the device.

 868-9         (c)  Section 76, Chapter 318 (S.B. No. 15), Acts of the 74th

868-10   Legislature, Regular Session, 1995, is repealed.

868-11         SECTION 30.85.  (a)  Subchapter L, Chapter 521,

868-12   Transportation Code, is amended to conform to Section 80, Chapter

868-13   318 (S.B. No. 15), Acts of the 74th Legislature, Regular Session,

868-14   1995, by adding Section 521.2465 to read as follows:

868-15         Sec. 521.2465.  RESTRICTED LICENSE.  (a)  On receipt of

868-16   notice that a person has been restricted to the use of a motor

868-17   vehicle equipped with an ignition interlock device, the department

868-18   shall notify that person that the person's driver's license expires

868-19   on the 30th day after the date of the notice.  On application by

868-20   the person and payment of a fee of $10, the department shall issue

868-21   a special restricted license that authorizes the person to operate

868-22   only a motor vehicle equipped with an ignition interlock device.

868-23         (b)  On receipt of a copy of a court order removing the

868-24   restriction, the department shall issue the person a driver's

 869-1   license without the restriction.

 869-2         (b)  Section 80, Chapter 318 (S.B. No. 15), Acts of the 74th

 869-3   Legislature, Regular Session, 1995, is repealed.

 869-4         SECTION 30.86.  (a)  Subchapter L, Chapter 521,

 869-5   Transportation Code, is amended to conform to Section 81, Chapter

 869-6   318 (S.B. No. 15), Acts of the 74th Legislature, Regular Session,

 869-7   1995, by adding Section 521.2475 to read as follows:

 869-8         Sec. 521.2475.  IGNITION INTERLOCK DEVICE EVALUATION.  (a)

 869-9   On January 1 of each year, the department shall issue an evaluation

869-10   of each ignition interlock device approved under Section 521.247

869-11   using guidelines established by the National Highway Traffic Safety

869-12   Administration, including:

869-13               (1)  whether the device provides accurate detection of

869-14   alveolar air;

869-15               (2)  the moving retest abilities of the device;

869-16               (3)  the use of tamper-proof blood alcohol content

869-17   level software by the device;

869-18               (4)  the anticircumvention design of the device;

869-19               (5)  the recalibration requirements of the device; and

869-20               (6)  the breath action required by the operator.

869-21         (b)  The department shall assess the cost of preparing the

869-22   evaluation equally against each manufacturer of an approved device.

869-23         (b)  Section 81, Chapter 318 (S.B. No. 15), Acts of the 74th

869-24   Legislature, Regular Session, 1995, is repealed.

 870-1         SECTION 30.87.  (a)  Section 521.272, Transportation Code, is

 870-2   repealed to conform to the repeal of the law from which it was

 870-3   derived by Section 3, Chapter 669 (S.B.  No. 1252), Acts of the

 870-4   74th Legislature, Regular Session, 1995.

 870-5         (b)  Section 3, Chapter 669 (S.B. No. 1252), Acts of the 74th

 870-6   Legislature, Regular Session, 1995, is repealed.

 870-7         SECTION 30.88.  Section 521.293(d), Transportation Code, is

 870-8   amended to more closely conform to the law from which it was

 870-9   derived to read as follows:

870-10         (d)  The hearing shall be conducted not less [later] than 10

870-11   days [the 10th day] after the date of the notification required by

870-12   Section 521.291.  The presiding officer shall set the case for

870-13   hearing at the earliest practical time.

870-14         SECTION 30.89.  (a)  Section 521.294(d), Transportation Code,

870-15   is amended to conform to Section 1, Chapter 512 (H.B. No. 2035),

870-16   Acts of the 74th Legislature, Regular Session, 1995, and to Section

870-17   2, Chapter 434 (S.B. No. 1504), Acts of the 74th Legislature,

870-18   Regular Session, 1995, to read as follows:

870-19         (d)  The presiding officer shall determine whether a person's

870-20   license should be revoked because the person:

870-21               (1)  is incapable of safely operating a motor vehicle;

870-22               (2)  has not complied with the terms of a citation

870-23   issued by a jurisdiction that is a party to the Nonresident

870-24   Violator Compact of 1977 for a traffic violation to which that

 871-1   compact applies;

 871-2               (3)  [has an outstanding arrest warrant for failure to

 871-3   appear or pay a fine on a complaint involving a violation of a

 871-4   traffic law issued by a municipality that has contracted with the

 871-5   department under Chapter 702;]

 871-6               [(4)]  has failed to provide medical records or has

 871-7   failed to undergo medical or other examinations as required by a

 871-8   panel of the medical advisory board;

 871-9               (4) [(5)]  has failed to pass an examination required

871-10   by the director under this chapter; [or]

871-11               (5) [(6)]  has been reported by a court under Section

871-12   729.003 for failure to appear or for default in payment of a fine

871-13   unless the court files an additional report on final disposition of

871-14   the case; or

871-15               (6)  has been reported by a justice or municipal court

871-16   for failure to appear or for a default in payment of a fine for a

871-17   misdemeanor punishable only by fine, other than a failure or

871-18   default reported under Section 729.003, committed by a person

871-19   younger than 17 years of age when the offense was committed, unless

871-20   the court files an additional report on final disposition of the

871-21   case.

871-22         (b)  Section 1, Chapter 512 (H.B. No. 2035), Acts of the 74th

871-23   Legislature, Regular Session, 1995, is repealed.

871-24         (c)  Section 2, Chapter 434 (S.B. No. 1504), Acts of the 74th

 872-1   Legislature, Regular Session, 1995, is repealed.

 872-2         (d)  Section 521.294(e), Transportation Code, is amended to

 872-3   conform to the repeal of the law from which Section 521.294(d)(3)

 872-4   of that code was derived by Section 2, Chapter 434, Acts of the

 872-5   74th Legislature, Regular Session, 1995, to read as follows:

 872-6         (e)  The presiding officer shall report the officer's

 872-7   determination to the department.  [If the presiding officer makes

 872-8   an affirmative determination under Subsection (d)(3), the presiding

 872-9   officer shall report to the department to revoke the person's

872-10   license until notice to reinstate the license is received under

872-11   Section 702.004(c).]

872-12         SECTION 30.90.  Section 521.306(c), Transportation Code, is

872-13   amended to conform to the redesignation of Section 521.294(d)(6) of

872-14   that code as Section 521.294(d)(5) by this Act to read as follows:

872-15         (c)  The department may not reinstate a license suspended

872-16   under Section 521.294(d)(5) [521.294(d)(6)] until the court that

872-17   filed the report for which the license was suspended files an

872-18   additional report on final disposition of the case.

872-19         SECTION 30.91.  (a)  Section 521.310, Transportation Code, is

872-20   amended to conform to Section 3, Chapter 434 (S.B. No. 1504), Acts

872-21   of the 74th Legislature, Regular Session, 1995, to read as follows:

872-22         Sec. 521.310.  DENIAL OF LICENSE RENEWAL [REVOCATION] AFTER

872-23   [MUNICIPAL] WARNING.  The [(a)  After a hearing under Section

872-24   521.291, the] department may deny the renewal of [revoke] the

 873-1   driver's license [operating privilege] of a person about whom the

 873-2   department has received information [from a municipality] under

 873-3   Section 706.004 until [702.004.]

 873-4         [(b)  If the department revokes an operating privilege under

 873-5   this section, the department shall prohibit the person from

 873-6   obtaining a driver's license.  The prohibition expires on] the date

 873-7   the department receives a notification from the political

 873-8   subdivision [municipality] under Section 706.005 that there is no

 873-9   cause to deny the renewal based on the person's previous failure to

873-10   appear for a complaint, citation, or court order to pay a fine

873-11   involving a violation of a traffic law [Section 702.004 to

873-12   reinstate the person's operating privilege].

873-13         (b)  Section 3, Chapter 434 (S.B. No. 1504), Acts of the 74th

873-14   Legislature, Regular Session, 1995, is repealed.

873-15         SECTION 30.92.  (a)  Section 521.312, Transportation Code, is

873-16   amended to conform to Section 1, Chapter 640 (H.B. No. 2389), Acts

873-17   of the 74th Legislature, Regular Session, 1995, and to Section 3,

873-18   Chapter 1039 (H.B. No. 2029), Acts of the 74th Legislature, Regular

873-19   Session, 1995, to read as follows:

873-20         Sec. 521.312.  REVOCATION FOR MEDICAL REASONS.  (a)  A person

873-21   may not operate a motor vehicle if the person:

873-22               (1)  is a chemically dependent person who:

873-23                     (A)  is likely to cause serious harm to the

873-24   person or to others; or

 874-1                     (B)  will, if not treated, continue to suffer

 874-2   abnormal mental, emotional, or physical distress, or to deteriorate

 874-3   in ability to function independently [addicted to the use of

 874-4   alcohol or a controlled substance]; or

 874-5               (2)  has been determined by a judgment of a court to be

 874-6   totally incapacitated or incapacitated to act as the operator of a

 874-7   motor vehicle [mentally incompetent and has not been:]

 874-8                     [(A)  restored to competency by judicial decree;

 874-9   or]

874-10                     [(B)  released from a hospital for the mentally

874-11   incompetent on a certificate by the superintendent of the hospital

874-12   that the person is competent].

874-13         (b)  The driver's license of a [A finding that the] person is

874-14   revoked on:

874-15               (1)  the judgment of a court that the person is totally

874-16   incapacitated or incapacitated to act as the operator of a motor

874-17   vehicle; or

874-18               (2)  the order of a court of involuntary treatment of

874-19   the person under Subchapter D, Chapter 462, Health and Safety Code

874-20   [addicted to the use of alcohol or a controlled substance must be

874-21   based on a court determination that the person is psychologically

874-22   or physiologically dependent on the alcohol or controlled

874-23   substance].

874-24         (c)  If the person has not been issued a driver's license,

 875-1   the judgment or order of a court under Subsection (b) automatically

 875-2   prohibits the department from issuing a driver's license to the

 875-3   person  [A court finding that a person is mentally incompetent or

 875-4   addicted to the use of alcohol or a controlled substance must

 875-5   include an order for the revocation of the person's driver's

 875-6   license].

 875-7         (d)  The clerk of the court that renders a judgment or enters

 875-8   an order under Subsection (b) shall notify [certify the finding to]

 875-9   the department of the court's judgment or order before [not later

875-10   than] the 10th day after the date the court renders the judgment or

875-11   enters the order [that the findings are made].

875-12         (e)  The revocation of a driver's license under Subsection

875-13   (b) or the prohibition against the issuance of a driver's license

875-14   under Subsection (c) expires on the date on which:

875-15               (1)  the person is:

875-16                     (A)  restored to capacity by judicial decree; or

875-17                     (B)  released from a hospital for the mentally

875-18   incapacitated on a certificate of the superintendent or

875-19   administrator that the person has regained capacity; or

875-20               (2)  the order of involuntary treatment of the

875-21   chemically dependent person expires.

875-22         (f)  Before the 10th day after the date under Subsection

875-23   (e)(1)(A) or (2), the clerk of the appropriate court shall notify

875-24   the department that:

 876-1               (1)  the person has been restored to capacity by

 876-2   judicial decree; or

 876-3               (2)  the order of involuntary treatment has expired or

 876-4   has been terminated under Section 462.080(d), Health and Safety

 876-5   Code.

 876-6         (g)  Before the 10th day after the date under Subsection

 876-7   (e)(1)(B), the superintendent or administrator of the hospital

 876-8   shall notify the department that the person has been released from

 876-9   the hospital on a certificate that the person has regained

876-10   capacity.

876-11         (h)  In this section:

876-12               (1)  "Chemically dependent person" means a person with

876-13   chemical dependency.

876-14               (2)  "Chemical dependency" and "treatment" have the

876-15   meanings assigned those terms by Section 462.001, Health and Safety

876-16   Code.

876-17         (b)  Section 1, Chapter 640 (H.B. No. 2389), Acts of the 74th

876-18   Legislature, Regular Session, 1995, is repealed.

876-19         (c)  Section 3, Chapter 1039 (H.B. No. 2029), Acts of the

876-20   74th Legislature, Regular Session, 1995, is repealed.

876-21         SECTION 30.93.  (a)  Section 521.341, Transportation Code, is

876-22   amended to conform to Section 3, Chapter 708 (S.B. No. 281), Acts

876-23   of the 74th Legislature, Regular Session, 1995, to read as follows:

876-24         Sec. 521.341.  REQUIREMENTS FOR AUTOMATIC LICENSE SUSPENSION.

 877-1   Except as provided by Sections 521.344(d)-(i), a license is

 877-2   automatically suspended on final conviction of the license holder

 877-3   of:

 877-4               (1)  an offense under Section 19.05, Penal Code,

 877-5   committed as a result of the holder's criminally negligent

 877-6   operation of a motor vehicle;

 877-7               (2)  an offense under Section 38.04, Penal Code;

 877-8               (3)  an offense under Section 49.04 or 49.08 [49.07],

 877-9   Penal Code[, committed as a result of the introduction of alcohol

877-10   into the body];

877-11               (4) [(3)]  an offense under Section 49.07 [49.08],

877-12   Penal Code, if the person used a motor vehicle in the commission of

877-13   the offense;

877-14               (5) [(4)]  an offense punishable as a felony under the

877-15   motor vehicle laws of this state;

877-16               (6) [(5)]  an offense under Section 550.021; or

877-17               (7) [(6)]  an offense under Section 521.451 or 521.453.

877-18         (b)  Section 3, Chapter 708 (S.B. No. 281), Acts of the 74th

877-19   Legislature, Regular Session, 1995, is repealed.

877-20         SECTION 30.94.  (a)  Section 521.342(a), Transportation Code,

877-21   is amended to conform to Section 77, Chapter 318 (S.B. No. 15),

877-22   Acts of the 74th Legislature, Regular Session, 1995, to read as

877-23   follows:

877-24         (a)  Except as provided by Section 521.344, the [The] license

 878-1   of a person who was under 21 years of age at the time of the

 878-2   offense, other than an offense classified as a misdemeanor

 878-3   punishable by fine only, is automatically suspended on conviction

 878-4   of:

 878-5               (1)  an offense under Section 49.04 or 49.07, Penal

 878-6   Code, committed as a result of the introduction of alcohol into the

 878-7   body;

 878-8               (2)  an offense under the Alcoholic Beverage Code

 878-9   involving the manufacture, delivery, possession, transportation, or

878-10   use of an alcoholic beverage;

878-11               (3)  a misdemeanor offense under Chapter 481, Health

878-12   and Safety Code, for which Subchapter P does not require the

878-13   automatic suspension of the license;

878-14               (4)  an offense under Chapter 483, Health and Safety

878-15   Code, involving the manufacture, delivery, possession,

878-16   transportation, or use of a dangerous drug; or

878-17               (5)  an offense under Chapter 484, Health and Safety

878-18   Code, involving the manufacture, delivery, possession,

878-19   transportation, or use of a volatile chemical.

878-20         (b)  Section 77, Chapter 318 (S.B. No. 15), Acts of the 74th

878-21   Legislature, Regular Session, 1995, is repealed.

878-22         SECTION 30.95.  (a)  Section 521.342(b), Transportation Code,

878-23   is amended to conform to Section 79, Chapter 318 (S.B. No. 15),

878-24   Acts of the 74th Legislature, Regular Session, 1995, to read as

 879-1   follows:

 879-2         (b)  The department shall suspend for one year the license of

 879-3   a person who is under 21 years of age and is convicted of an

 879-4   offense under Section 49.04, 49.07, or 49.08, Penal Code,

 879-5   regardless of whether the person is required to attend an

 879-6   educational program under Section 13(h), Article 42.12, Code of

 879-7   Criminal Procedure, that is designed to rehabilitate persons who

 879-8   have operated motor vehicles while intoxicated, unless the person

 879-9   is placed under community supervision under that article and is

879-10   required as a condition of the community supervision to not operate

879-11   a motor vehicle unless the vehicle is equipped with the device

879-12   described by Section 13(i) of that article.  If the person is

879-13   required to attend such a program and does not complete the program

879-14   before the end of the person's suspension, the department shall

879-15   suspend the person's license or continue the suspension, as

879-16   appropriate, until the department receives proof that the person

879-17   has successfully completed the program.  A person who completes the

879-18   program may submit proof of the completion to the clerk of the

879-19   convicting court.  The clerk shall send the proof to the department

879-20   in the manner provided by Section 13(h), Article 42.12, Code of

879-21   Criminal Procedure.

879-22         (b)  Section 79, Chapter 318 (S.B. No. 15), Acts of the 74th

879-23   Legislature, Regular Session, 1995, is repealed.

879-24         SECTION 30.96.  (a)  Section 521.344(d), Transportation Code,

 880-1   is amended to conform to Section 78, Chapter 318 (S.B. No. 15),

 880-2   Acts of the 74th Legislature, Regular Session, 1995, to read as

 880-3   follows:

 880-4         (d)  Except as provided by Subsection (e) and Section

 880-5   521.342(b), during a period of probation the department may not

 880-6   revoke the person's license if the person is required under Section

 880-7   13(h) or (j), Article 42.12, Code of Criminal Procedure, to

 880-8   successfully complete an educational program designed to

 880-9   rehabilitate persons who have operated motor vehicles while

880-10   intoxicated.  The department may not revoke the license of a

880-11   person:

880-12               (1)  for whom the jury has recommended that the license

880-13   not be revoked under Section 13(g), Article 42.12, Code of Criminal

880-14   Procedure; or

880-15               (2)  who is placed under community supervision under

880-16   that article and is required as a condition of community

880-17   supervision to not operate a motor vehicle unless the vehicle is

880-18   equipped with the device described by Section 13(i) of that

880-19   article.

880-20         (b)  Section 78, Chapter 318 (S.B. No. 15), Acts of the 74th

880-21   Legislature, Regular Session, 1995, is repealed.

880-22         SECTION 30.97.  (a)  Section 521.345, Transportation Code, is

880-23   amended to conform to Section 2, Chapter 615 (H.B. No. 1375), Acts

880-24   of the 74th Legislature, Regular Session, 1995, to read as follows:

 881-1         Sec. 521.345.  SUSPENSION ON ORDER OF JUVENILE COURT OR ON

 881-2   ORDER OF COURT BASED ON ALCOHOLIC BEVERAGE VIOLATION BY MINOR.  (a)

 881-3   The department shall suspend the license of a person on receipt of

 881-4   an order to suspend the license that is issued by:

 881-5               (1)  a juvenile court under Section 54.042, Family

 881-6   Code; or

 881-7               (2)  a court under Section 106.115, Alcoholic Beverage

 881-8   Code.

 881-9         (b)  The period of suspension is for the period specified in

881-10   the order.

881-11         (b)  Section 2, Chapter 615 (H.B. No. 1375), Acts of the 74th

881-12   Legislature, Regular Session, 1995, is repealed.

881-13         SECTION 30.98.  (a)  Section 521.457(a), Transportation Code,

881-14   is amended to conform to Section 4, Chapter 434 (S.B. No. 1504),

881-15   Acts of the 74th Legislature, Regular Session, 1995, to read as

881-16   follows:

881-17         (a)  A person commits an offense if the person operates a

881-18   motor vehicle on a highway:

881-19               (1)  after the person's driver's license has been

881-20   canceled under this chapter if the person does not have a license

881-21   that was subsequently issued under this chapter;

881-22               (2)  during a period that the person's driver's license

881-23   or privilege is suspended or revoked under:

881-24                     (A)  this chapter;

 882-1                     (B)  Chapter 524;

 882-2                     (C)  Chapter 724; or

 882-3                     (D)  Article 42.12, Code of Criminal Procedure;

 882-4   [or]

 882-5               (3)  while the person's driver's license is expired if

 882-6   the license expired during a period of suspension imposed under:

 882-7                     (A)  this chapter;

 882-8                     (B)  Chapter 524;

 882-9                     (C)  Chapter 724; or

882-10                     (D)  Article 42.12, Code of Criminal Procedure;

882-11   or

882-12               (4)  after renewal of the person's driver's license has

882-13   been denied under Chapter 706, if the person does not have a

882-14   driver's license subsequently issued under this chapter.

882-15         (b)  Section 4, Chapter 434 (S.B. No. 1504), Acts of the 74th

882-16   Legislature, Regular Session, 1995, is repealed.

882-17         SECTION 30.99.  Section 521.456(d), Transportation Code, is

882-18   amended to correct a reference to the Texas Department of Criminal

882-19   Justice to read as follows:

882-20         (d)  An offense under this section is a felony punishable by

882-21   imprisonment in the institutional division of the Texas [State]

882-22   Department of Criminal Justice for not less than two years or more

882-23   than five years.

882-24         SECTION 30.100.  (a)  Subchapter C, Chapter 522,

 883-1   Transportation Code, is amended to conform to Section 1, Chapter

 883-2   767 (S.B. No. 472), Acts of the 74th Legislature, Regular Session,

 883-3   1995, by adding Section 522.0235 to read as follows:

 883-4         Sec. 522.0235.  WAIVER OF VISUAL STANDARDS FOR INTRASTATE

 883-5   DRIVER.  (a)  Except as provided by Subsection (b), the department

 883-6   by rule may provide for a waiver of the visual standards for a

 883-7   commercial driver's license in 49 C.F.R. Part 391, Subpart E, if

 883-8   the person who is applying for a commercial driver's license or who

 883-9   has been issued a commercial driver's license is a person who

883-10   drives a commercial motor vehicle only in this state.

883-11         (b)  Subsection (a) does not apply to standards for distant

883-12   binocular acuity.

883-13         (b)  The following laws are repealed:

883-14               (1)  Section 1, Chapter 767 (S.B. No. 472), Acts of the

883-15   74th Legislature, Regular Session, 1995; and

883-16               (2)  Section 82, Chapter 318 (S.B. No. 15), Acts of the

883-17   74th Legislature, Regular Session, 1995.

883-18         SECTION 30.101.  The heading to Subchapter P, Chapter 521,

883-19   Transportation Code, is amended to more accurately reflect the

883-20   content of that subchapter to read as follows:

883-21                 SUBCHAPTER P.  AUTOMATIC SUSPENSION FOR

883-22                     CERTAIN [FELONY] DRUG OFFENSES

883-23         SECTION 30.102.  Section 524.012(e), Transportation Code, is

883-24   amended to more closely conform to the law from which that section

 884-1   was derived to read as follows:

 884-2         (e)  A determination under this section:

 884-3               (1)  is a civil matter;

 884-4               (2)  is independent of and is not an estoppel [a bar]

 884-5   to any matter in issue in an adjudication of a criminal charge

 884-6   arising from the occurrence that is the basis for the suspension;

 884-7   and

 884-8               (3)  does not preclude litigation of the same or

 884-9   similar facts in a criminal prosecution.

884-10         SECTION 30.103.  Section 541.001, Transportation Code, is

884-11   amended to conform to the repeal of Section 2(o), Uniform Act

884-12   Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil

884-13   Statutes), by Section 31(a)(12), Chapter 705 (S.B. No. 3), Acts of

884-14   the 74th Legislature, Regular Session, 1995, to read as follows:

884-15         Sec. 541.001.  PERSONS.  In this subtitle:

884-16               (1)  ["Motor carrier" means a common carrier,

884-17   specialized carrier, or contract carrier that transports property

884-18   or passengers by motor vehicle or a private carrier that transports

884-19   property by motor vehicle.  The term:]

884-20                     [(A)  includes an employee, owner, lessee, or

884-21   officer acting for a motor carrier; and]

884-22                     [(B)  excludes a well-servicing unit or a

884-23   self-powered drilling rig.]

884-24               [(2)]  "Operator" means, as used in reference to a

 885-1   vehicle, a person who drives or has physical control of a vehicle.

 885-2               (2) [(3)]  "Owner" means, as used in reference to a

 885-3   vehicle, a person who has a property interest in or title to a

 885-4   vehicle.  The term:

 885-5                     (A)  includes a person entitled to use and

 885-6   possess a vehicle subject to a security interest; and

 885-7                     (B)  excludes a lienholder and a lessee whose

 885-8   lease is not intended as security.

 885-9               (3) [(4)]  "Pedestrian" means a person on foot.

885-10               (4) [(5)]  "Person" means an individual, firm,

885-11   partnership, association, or corporation.

885-12               (5) [(6)]  "School crossing guard" means a responsible

885-13   person who is at least 18 years of age and is designated by a local

885-14   authority to direct traffic in a school crossing zone for the

885-15   protection of children going to or leaving a school.

885-16         SECTION 30.104.  Section 542.205, Transportation Code, is

885-17   amended to conform to the termination of the Interstate Commerce

885-18   Commission and the creation of the Surface Transportation Board by

885-19   the Interstate Commerce Commission Termination Act of 1995 (Pub. L.

885-20   No. 104-88) and to the transfer of motor carrier safety regulatory

885-21   responsibilities from the Railroad Commission of Texas to the

885-22   Department of Public Safety by Chapter 705 (S.B. No. 3), Acts of

885-23   the 74th Legislature, Regular Session, 1995, to read as follows:

885-24         Sec. 542.205.  Conflict Between This Subtitle and an Order,

 886-1   Rule, or Regulation of Certain Agencies.  (a)  If this subtitle

 886-2   conflicts with an order, rule, regulation, or requirement of the

 886-3   federal Surface Transportation Board [Interstate Commerce

 886-4   Commission] or the department [Railroad Commission of Texas]

 886-5   relating to a vehicle safety requirement, including a requirement

 886-6   relating to vehicle equipment, compliance by the owner or operator

 886-7   of the vehicle with the order, rule, regulation, or requirement of

 886-8   the federal Surface Transportation Board [Interstate Commerce

 886-9   Commission] or the department [Railroad Commission of Texas] is

886-10   compliance with this subtitle.

886-11         (b)  The owner or operator of a vehicle shall comply with any

886-12   requirement of this subtitle that is in addition to, but not in

886-13   conflict with, a requirement of the federal Surface Transportation

886-14   Board [Interstate Commerce Commission] or the department [Railroad

886-15   Commission of Texas].

886-16         SECTION 30.105.  (a)  Section 542.402, Transportation Code,

886-17   is amended to conform to Section 1, Chapter 30 (H.B. No. 839),

886-18   Sections 1 and 2, Chapter 56 (H.B. No. 840), Acts of the 74th

886-19   Legislature, Regular Session, 1995, and to Section 1, Chapter 992

886-20   (S.B. No. 20), Acts of the 74th Legislature, Regular Session, 1995,

886-21   by amending Subsection (b) and adding Subsections (c)-(e) to read

886-22   as follows:

886-23         (b)  In each fiscal year, a municipality having a population

886-24   of less than 5,000 may retain, from fines collected for violations

 887-1   of highway laws in this subtitle and from special expenses

 887-2   collected under Article 45.54, Code of Criminal Procedure, in cases

 887-3   in which a violation of this subtitle is alleged, an amount equal

 887-4   to 30 percent of the municipality's revenue for the preceding

 887-5   fiscal year from all sources, other than federal funds and bond

 887-6   proceeds, as shown by the audit performed under Section 103.001,

 887-7   Local Government Code.  After a municipality has retained that

 887-8   amount, the municipality shall send to the comptroller [state

 887-9   treasurer] any portion of a fine or a special expense collected

887-10   that exceeds $1.

887-11         (c)  The comptroller shall enforce Subsection (b).

887-12         (d)  In a fiscal year in which a municipality retains from

887-13   fines and special expenses collected for violations of highway laws

887-14   in this subtitle an amount equal to at least 20 percent of the

887-15   municipality's revenue for the preceding fiscal year from all

887-16   sources other than federal funds and bond proceeds, not later than

887-17   the 120th day after the last day of the municipality's fiscal year,

887-18   the municipality shall send to the comptroller:

887-19               (1)  a copy of the municipality's financial statement

887-20   for that fiscal year filed under Chapter 103, Local Government

887-21   Code; and

887-22               (2)  a report that shows the total amount collected for

887-23   that fiscal year from fines and special expenses under Subsection

887-24   (b).

 888-1         (e)  If an audit is conducted by the comptroller under

 888-2   Subsection (c) and it is determined that the municipality is

 888-3   retaining more than 20 percent of the amounts under Subsection (b)

 888-4   and has not complied with Subsection (d), the municipality shall

 888-5   pay the costs incurred by the comptroller in conducting the audit.

 888-6         (b)  Section 1, Chapter 30 (H.B. No. 839), and Sections 1 and

 888-7   2, Chapter 56 (H.B. No. 840), Acts of the 74th Legislature, Regular

 888-8   Session, 1995, are repealed.

 888-9         SECTION 30.106.  (a)  Section 543.102, Transportation Code,

888-10   is amended to conform to Section 1, Chapter 334 (S.B. No. 645),

888-11   Acts of the 74th Legislature, Regular Session, 1995, to read as

888-12   follows:

888-13         Sec. 543.102.  NOTICE OF RIGHT TO COMPLETE COURSE.  The court

888-14   shall advise a person charged with a misdemeanor under this

888-15   subtitle, committed while operating a motor vehicle, of the

888-16   person's right to successfully complete a driving safety course or,

888-17   if the offense was committed while operating a motorcycle, a

888-18   motorcycle operator training course.  The right to complete a

888-19   course does not apply to a person charged with a violation of

888-20   Section 545.066, 545.401, 545.421, 550.022, or 550.023 or a serious

888-21   traffic violation as defined by Section 522.003.

888-22         (b)  Section 543.103, Transportation Code, is amended to

888-23   conform to Section 1, Chapter 334 (S.B. No. 645), and Section 28,

888-24   Chapter 1009 (S.B. No. 964), Acts of the 74th Legislature, Regular

 889-1   Session, 1995, to read as follows:

 889-2         Sec. 543.103.  MANDATORY DEFERRAL.  (a)  Subject to

 889-3   Subsection (b), the [The] court shall defer proceedings and allow a

 889-4   person:

 889-5               (1)  90 days to take a driving safety course approved

 889-6   under the Texas Driver and Traffic Safety Education Act (Article

 889-7   4413(29c), Vernon's Texas Civil Statutes) or, if the offense was

 889-8   committed while operating a motorcycle, a motorcycle operator

 889-9   training course approved by the department under Chapter 662; and

889-10               (2)  30 additional days to present:

889-11                     (A)  a uniform certificate of course completion

889-12   as written evidence that after the alleged violation the person

889-13   successfully completed the [a] driving safety course; or

889-14                     (B)  written evidence that after the alleged

889-15   violation the person successfully completed the motorcycle operator

889-16   training course.

889-17         (b)  Subsection (a) applies only [approved under the Texas

889-18   Driver and Traffic Safety Education Act (Article 4413(29c),

889-19   Vernon's Texas Civil Statutes)] if:

889-20               (1)  the person enters a plea in person or in writing

889-21   of no contest or guilty and, before the answer date on the notice

889-22   to appear [citation]:

889-23                     (A)  presents in person to the court an oral or

889-24   written request to take a course; or

 890-1                     (B)  sends to the court by certified mail, return

 890-2   receipt requested, postmarked on or before the answer date on the

 890-3   notice to appear, a written request to take a course;

 890-4               (2)  the court enters judgment on the person's plea of

 890-5   no contest or guilty at the time the plea is made but defers

 890-6   imposition of the judgment for 90 days;

 890-7               (3)  the person has a Texas driver's license or permit;

 890-8               (4)  the person's driving record as maintained by the

 890-9   department does not show successful completion of a driving safety

890-10   course or a motorcycle operator training course, as appropriate,

890-11   under this section within one year before the date of the alleged

890-12   violation;

890-13               (5)  the person files an affidavit with the court

890-14   stating that the person is not taking a course under this section

890-15   and has not completed a course under this section that is not shown

890-16   on the person's driving record;

890-17               (6)  the person is charged with an offense to which

890-18   this subchapter applies other than speeding 25 miles per hour or

890-19   more over the posted speed limit; and

890-20               (7)  the person provides evidence of financial

890-21   responsibility as required by Chapter 601.

890-22         (c) [(b)]  Notwithstanding Subsection (b)(1) [(a)(1)], on a

890-23   written motion submitted to the court before the final disposition

890-24   of the case, the court may grant a request to take a driving safety

 891-1   course or a motorcycle operator training course under this section.

 891-2         (c)  Section 543.104, Transportation Code, is amended to

 891-3   conform to Section 1, Chapter 334 (S.B. No. 645), and Section 28,

 891-4   Chapter 1009 (S.B. No. 964), Acts of the 74th Legislature, Regular

 891-5   Session, 1995, to read as follows:

 891-6         Sec. 543.104.  PERMISSIVE DEFERRAL.  On a written motion

 891-7   submitted to the court before the final disposition of the case,

 891-8   the court may defer proceedings and allow a person:

 891-9               (1)  90 days to take a driving safety course approved

891-10   under the Texas Driver and Traffic Safety Education Act (Article

891-11   4413(29c), Vernon's Texas Civil Statutes) or, if the offense was

891-12   committed while operating a motorcycle, a motorcycle operator

891-13   training course approved by the department under Chapter 662; and

891-14               (2)  30 additional days to present:

891-15                     (A)  a uniform certificate of course completion

891-16   as evidence that after the alleged violation the person

891-17   successfully completed the [a] driving safety course; or

891-18                     (B)  written evidence that after the alleged

891-19   violation the person successfully completed the motorcycle operator

891-20   training course [approved under the Texas Driver and Traffic Safety

891-21   Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)].

891-22         (d)  Section 543.111, Transportation Code, is amended to

891-23   conform to Section 28, Chapter 1009 (S.B. No. 964), Acts of the

891-24   74th Legislature, Regular Session, 1995, to read as follows:

 892-1         Sec. 543.111.  REGULATION BY CERTAIN STATE AGENCIES.  (a)

 892-2   The State Board of Education shall[:]

 892-3               [(1)]  enter into a memorandum of understanding with

 892-4   the Texas Department of Insurance for the interagency development

 892-5   of a curriculum for driving safety courses.[; and]

 892-6         (b)  The Texas Education Agency shall:

 892-7               (1) [(2)]  adopt and administer comprehensive rules

 892-8   governing driving safety courses; and

 892-9               (2)  investigate options to develop and implement

892-10   procedures to electronically transmit information pertaining to

892-11   driving safety courses to municipal and justice courts[, which the

892-12   Central Education Agency shall administer].

892-13         (e)  Section 543.112, Transportation Code, is amended to

892-14   conform to Sections 28 and 29, Chapter 1009 (S.B. No. 964), Acts of

892-15   the 74th Legislature, Regular Session, 1995, to read as follows:

892-16         Sec. 543.112.  STANDARDS FOR UNIFORM CERTIFICATE OF COURSE

892-17   COMPLETION.  (a)  The Texas Education Agency by rule shall provide

892-18   for the design and distribution of uniform certificates of course

892-19   completion so as to prevent to the greatest extent possible the

892-20   unauthorized production or misuse of the certificates.

892-21         (b)  The uniform certificate of course completion must

892-22   include an identifying number by which the Texas [Central]

892-23   Education Agency, the court, or the department may verify its

892-24   authenticity with the course provider and must be[:]

 893-1               [(1)]  in a form adopted by the Texas [Central]

 893-2   Education Agency[;]

 893-3               [(2)  not more than 8-1/2 inches by 3-1/2 inches in

 893-4   size; and]

 893-5               [(3)  printed on copy-resistant paper in not fewer than

 893-6   two self-copying parts to provide a control copy of the certificate

 893-7   to be retained by the course provider under rules adopted by the

 893-8   State Board of Education].

 893-9         (c)  The Texas Education Agency shall issue duplicate uniform

893-10   certificates of course completion.  The State Board of Education by

893-11   rule shall determine the amount of the fee to be charged for

893-12   issuance of a duplicate certificate.

893-13         (d)  A driving safety course provider shall electronically

893-14   submit data identified by the Texas Education Agency pertaining to

893-15   issued uniform certificates of course completion to the agency as

893-16   directed by the agency.

893-17         (f)  Section 543.113, Transportation Code, is amended to

893-18   conform to Section 29, Chapter 1009 (S.B. No. 964), Acts of the

893-19   74th Legislature, Regular Session, 1995, to read as follows:

893-20         Sec. 543.113.  FEES [FEE] FOR PRINTING AND SUPPLYING

893-21   CERTIFICATE.  (a)  The Texas [Central] Education Agency shall print

893-22   the uniform certificates and supply them to persons who are

893-23   licensed providers [owners or primary consignees] of courses

893-24   approved under the Texas Driver and Traffic Safety Education Act

 894-1   (Article 4413(29c), Vernon's Texas Civil Statutes).  The agency may

 894-2   charge a fee [of $1] for each certificate.  The fee may not exceed

 894-3   $4.

 894-4         (b)  A course provider shall [An owner or consignee may not]

 894-5   charge an operator a fee equal to [that is more than] the fee paid

 894-6   to the agency for a certificate.

 894-7         (c)  Money collected by the Texas Education Agency under this

 894-8   section may be used only to pay monetary awards for information

 894-9   relating to abuse of uniform certificates that leads to the

894-10   conviction or removal of an approval, license, or authorization.

894-11         (g)  Subchapter B, Chapter 543, Transportation Code, is

894-12   amended to conform to Sections 28 and 29, Chapter 1009 (S.B. No.

894-13   964), Acts of the 74th Legislature, Regular Session, 1995, by

894-14   adding Sections 543.115 and 543.116 to read as follows:

894-15         Sec. 543.115.  FEES FOR DRIVING SAFETY COURSE.  (a)  A

894-16   driving safety course may not be provided to a student for less

894-17   than $25.

894-18         (b)  A course provider shall charge each student a fee for

894-19   course materials and for overseeing and administering the course.

894-20   The fee may not be less than $3.

894-21         Sec. 543.116.  DELIVERY OF UNIFORM CERTIFICATE OF COURSE

894-22   COMPLETION.  (a)  A driving safety course provider shall mail an

894-23   issued uniform certificate of course completion to a person who

894-24   successfully completes the course.

 895-1         (b)  The certificate must be mailed not later than the 15th

 895-2   working day after the date a person successfully completes the

 895-3   course.

 895-4         (h)  Section 1, Chapter 334 (S.B. No. 645), and Sections 28

 895-5   and 29, Chapter 1009 (S.B. No. 964), Acts of the 74th Legislature,

 895-6   Regular Session, 1995, are repealed.

 895-7         SECTION 30.107.  (a)  Section 545.251, Transportation Code,

 895-8   is amended to conform to Section 1, Chapter 881 (S.B. No. 1513),

 895-9   Acts of the 74th Legislature, Regular Session, 1995, to read as

895-10   follows:

895-11         Sec. 545.251.  OBEDIENCE TO SIGNAL INDICATING APPROACH OF

895-12   TRAIN.  (a)  An operator approaching a railroad grade crossing

895-13   shall stop not closer than 15 feet or farther than 50 feet from the

895-14   nearest rail if:

895-15               (1)  a clearly visible railroad [electric or

895-16   mechanical] signal [device] warns of the [immediate] approach of a

895-17   railroad train;

895-18               (2)  a crossing gate is lowered, or a flagger warns of

895-19   [signals] the approach or passage of a railroad train;

895-20               (3)  a railroad engine approaching within approximately

895-21   1,500 feet of the highway crossing emits a signal audible from that

895-22   distance and the engine is an immediate hazard because of its speed

895-23   or proximity to the crossing; [or]

895-24               (4)  an approaching railroad train is plainly visible

 896-1   and is in hazardous proximity to the crossing; or

 896-2               (5)  the operator is required to stop by:

 896-3                     (A)  other law;

 896-4                     (B)  a rule adopted under a statute;

 896-5                     (C)  an official traffic-control device; or

 896-6                     (D)  a traffic-control signal.

 896-7         (b)  An operator of a vehicle [who stops as] required by

 896-8   Subsection (a) to stop shall remain stopped until permitted to

 896-9   proceed and may not proceed until it is safe to do so.

896-10         (c)  An operator commits an offense if the operator drives

896-11   around, under, or through a crossing gate or a barrier at a

896-12   railroad crossing while the gate or barrier is closed, being

896-13   closed, or being opened.

896-14         (d)  In a prosecution under Subsection (a)(4), proof that at

896-15   the time of the offense a railroad train was approaching the grade

896-16   crossing and that the train was visible from the crossing is prima

896-17   facie evidence that it was not safe for the operator to proceed.

896-18         (e)  An offense under this section is punishable by a fine of

896-19   not less than $50 or more than $200.

896-20         (b)  Section 545.252, Transportation Code, is amended to

896-21   conform to Section 2, Chapter 881 (S.B. No. 1513), Acts of the 74th

896-22   Legislature, Regular Session, 1995, by amending Subsection (a) and

896-23   adding Subsection (d) to read as follows:

896-24         (a)  The Texas Department of Transportation [Commission] or a

 897-1   local authority, with respect to a highway in its jurisdiction,

 897-2   may:

 897-3               (1)  designate a railroad grade crossing as

 897-4   particularly dangerous; and

 897-5               (2)  erect a stop sign or other official

 897-6   traffic-control device at the grade crossing.

 897-7         (d)  An offense under this section is punishable by a fine of

 897-8   not less than $50 or more than $200.

 897-9         (c)  Section 545.253, Transportation Code, is amended to

897-10   conform to Section 3, Chapter 881 (S.B. No. 1513), Acts of the 74th

897-11   Legislature, Regular Session, 1995, by adding Subsection (e) to

897-12   read as follows:

897-13         (e)  An offense under this section is punishable by a fine of

897-14   not less than $50 or more than $200.

897-15         (d)  Section 545.254, Transportation Code, is amended to

897-16   conform to Section 4, Chapter 881 (S.B. No. 1513), Acts of the 74th

897-17   Legislature, Regular Session, 1995, by adding Subsection (e) to

897-18   read as follows:

897-19         (e)  An offense under this section is punishable by a fine of

897-20   not less than $50 or more than $200.

897-21         (e)  Section 545.255, Transportation Code, is amended to

897-22   conform to Section 5, Chapter 881 (S.B. No. 1513), Acts of the 74th

897-23   Legislature, Regular Session, 1995, by adding Subsection (e) to

897-24   read as follows:

 898-1         (e)  An offense under this section is punishable by a fine of

 898-2   not less than $50 or more than $200.

 898-3         (f)  Sections 1-5, Chapter 881 (S.B. No. 1513), Acts of the

 898-4   74th Legislature, Regular Session, 1995, are repealed.

 898-5         SECTION 30.108.  (a)  Subchapter F, Chapter 545,

 898-6   Transportation Code, is amended to conform to Section 1, Chapter

 898-7   801 (H.B. No. 1124), Acts of the 74th Legislature, Regular Session,

 898-8   1995, by adding Section 545.2555 to read as follows:

 898-9         Sec. 545.2555.  REPORT AND INVESTIGATION OF CERTAIN RAILROAD

898-10   CROSSING VIOLATIONS.  (a)  A person who on site observes a

898-11   violation of Section 545.251, 545.252, 545.253, 545.254, or 545.255

898-12   may file a report of the violation if the person:

898-13               (1)  is an on-engine employee of a railroad; and

898-14               (2)  observes the violation while on a moving engine.

898-15         (b)  A report under this section must:

898-16               (1)  be made:

898-17                     (A)  on a form approved by the department; and

898-18                     (B)  not later than 72 hours after the violation;

898-19               (2)  be filed with:

898-20                     (A)  an office of the department located in the

898-21   county in which the violation occurred;

898-22                     (B)  the sheriff of the county in which the

898-23   violation occurred, if the violation occurred in the unincorporated

898-24   area of the county; or

 899-1                     (C)  the police department of a municipality, if

 899-2   the violation occurred in the municipality; and

 899-3               (3)  contain, in addition, to any other required

 899-4   information:

 899-5                     (A)  the date, time, and location of the

 899-6   violation;

 899-7                     (B)  the license plate number and a description

 899-8   of the vehicle involved in the violation;

 899-9                     (C)  a description of the operator of the vehicle

899-10   involved in the violation; and

899-11                     (D)  the name, address, and telephone number of

899-12   the person filing the report.

899-13         (c)  A peace officer may:

899-14               (1)  before the seventh day after the date a report

899-15   under this section is filed, initiate an investigation of the

899-16   alleged violation; and

899-17               (2)  request the owner of the reported vehicle, as

899-18   shown by the vehicle registration records of the Texas Department

899-19   of Transportation, to disclose the name and address of the

899-20   individual operating that vehicle at the time of the violation

899-21   alleged in the report.

899-22         (d)  Unless the owner of the reported vehicle believes that

899-23   to provide the peace officer with the name and address of the

899-24   individual operating the vehicle at the time of the violation

 900-1   alleged would incriminate the owner, the owner shall, to the best

 900-2   of the owner's ability, disclose that individual's name and

 900-3   address.

 900-4         (e)  An investigating peace officer who has probable cause to

 900-5   believe that a charge against an individual for a violation of

 900-6   Section 545.251, 545.252, 545.253, 545.254, or 545.255 is justified

 900-7   may:

 900-8               (1)  prepare a written notice to appear in court that

 900-9   complies with Sections 543.003, 543.006, and 543.007; and

900-10               (2)  deliver the notice to the individual named in the

900-11   notice in person or by certified mail.

900-12         (b)  Section 1, Chapter 801 (H.B. No. 1124), Acts of the 74th

900-13   Legislature, Regular Session, 1995, is repealed.

900-14         SECTION 30.109.  Section 545.351(b), Transportation Code, is

900-15   amended to correct a grammatical error to read as follows:

900-16         (b)  An operator:

900-17               (1)  may not drive a vehicle at a speed greater than is

900-18   reasonable and prudent under the conditions and having regard for

900-19   [to] actual and potential hazards then existing; and

900-20               (2)  shall control the speed of the vehicle as

900-21   necessary to avoid colliding with another person or vehicle that is

900-22   on or entering the highway in compliance with law and the duty of

900-23   each person to use due care.

900-24         SECTION 30.110.  (a)  Sections 545.352(b) and (d),

 901-1   Transportation Code, are amended to conform to Section 1, Chapter

 901-2   295 (H.B. No. 321), Acts of the 74th Legislature, Regular Session,

 901-3   1995, to read as follows:

 901-4         (b)  Unless a special hazard exists that requires a slower

 901-5   speed for compliance with Section 545.351(b), the following speeds

 901-6   are lawful:

 901-7               (1)  30 miles per hour in an urban district on a street

 901-8   other than an alley and 15 miles per hour in an alley;

 901-9               (2)  70 miles per hour in daytime and 65 miles per hour

901-10   in nighttime if the vehicle is a passenger car or motorcycle on a

901-11   highway numbered by this state or the United States outside an

901-12   urban district, including a farm-to-market or ranch-to-market road;

901-13               (3)  60 miles per hour in daytime and 55 miles per hour

901-14   in nighttime if the vehicle is a passenger car or motorcycle on a

901-15   highway that is outside an urban district and not a highway

901-16   numbered by this state or the United States;

901-17               (4)  60 miles per hour outside an urban district if a

901-18   speed limit for the vehicle is not otherwise specified by this

901-19   section; or

901-20               (5)  outside an urban district:

901-21                     (A)  45 miles per hour, if the vehicle is towing

901-22   a house trailer of an actual or registered gross weight heavier

901-23   than 4,500 pounds or larger than 32 feet, excluding the tow bar;

901-24                     (B)  50 miles per hour if the vehicle is a school

 902-1   bus on a highway other than an interstate highway;

 902-2                     (C)  55 miles per hour if the vehicle is a school

 902-3   bus on an interstate highway; or

 902-4                     (D) [(C)]  60 miles per hour in daytime and 55

 902-5   miles per hour in nighttime if the vehicle is a truck, other than a

 902-6   light truck, or if the vehicle is a truck tractor, trailer, or

 902-7   semitrailer, or a vehicle towing a trailer, semitrailer, another

 902-8   motor vehicle or house trailer of an actual or registered gross

 902-9   weight lighter than 4,500 pounds and a length of 32 feet or

902-10   shorter, excluding the tow bar.

902-11         (d)  In this section:

902-12               (1)  "Interstate highway" means a segment of the

902-13   national system of interstate and defense highways that is:

902-14                     (A)  located in this state;

902-15                     (B)  officially designated by the Texas

902-16   Transportation Commission; and

902-17                     (C)  approved under Title 23, United States Code.

902-18               (2)  "Light truck" means a truck with a manufacturer's

902-19   rated carrying capacity of not more than 2,000 pounds, including a

902-20   pick-up truck, panel delivery truck, and carry-all truck.

902-21               (3) [(2)]  "Urban district" means the territory

902-22   adjacent to and including a highway, if the territory is improved

902-23   with structures that are used for business, industry, or dwelling

902-24   houses and are located at intervals of less than 100 feet for a

 903-1   distance of at least one-quarter mile on either side of the

 903-2   highway.

 903-3         (b)  Section 1, Chapter 295 (H.B. No. 321), Acts of the 74th

 903-4   Legislature, Regular Session, 1995, is repealed.

 903-5         SECTION 30.111.  Section 545.353(e), Transportation Code, is

 903-6   amended to more closely conform to the law from which that section

 903-7   was derived to read as follows:

 903-8         (e)  The commission, in conducting the engineering and

 903-9   traffic investigation specified by Subsection (a), shall follow the

903-10   "Procedure for Establishing Speed Zones" [procedure for

903-11   establishing speed zones] as adopted by the commission.  The

903-12   commission may revise the procedure to accommodate technological

903-13   advancement in traffic operation, the design and construction of

903-14   highways and motor vehicles, and the safety of the motoring public.

903-15         SECTION 30.112.  (a)  Subchapter H, Chapter 545,

903-16   Transportation Code, is amended to conform to Section 1, Chapter

903-17   900 (H.B. No. 835), Acts of the 74th Legislature, Regular Session,

903-18   1995, by adding Section 545.3625 to read as follows:

903-19         Sec. 545.3625.  CONFIDENTIALITY OF VIOLATION INFORMATION:

903-20   FUEL CONSERVATION SPEED LIMIT.  (a)  If a person violates a maximum

903-21   prima facie speed limit imposed under Section 545.362, as that law

903-22   existed immediately before December 8, 1995, and the person was not

903-23   traveling at a speed, as alleged in the citation, if not contested

903-24   by the person, or, if contested by the person, as alleged in the

 904-1   complaint and found by the court, that is greater than the maximum

 904-2   prima facie speed limit for the location that has been established

 904-3   under this chapter, other than under Section 545.362, information

 904-4   in the custody of the department concerning the violation is

 904-5   confidential.

 904-6         (b)  The department may not release the information to any

 904-7   person or to another state governmental entity.

 904-8         (b)  Section 1, Chapter 900 (H.B. No. 835), Acts of the 74th

 904-9   Legislature, Regular Session, 1995, is repealed.

904-10         SECTION 30.113.  (a)  Sections 545.410(a)-(d), Transportation

904-11   Code, are amended to conform to Section 1, Chapter 842 (H.B. No.

904-12   3208), Acts of the 74th Legislature, Regular Session, 1995, to read

904-13   as follows:

904-14         (a)  An operator of a passenger car or light truck [vehicle]

904-15   may not draw a trailer, semitrailer, or house trailer unless safety

904-16   chains of a type approved by the department are attached in a

904-17   manner approved by the department from the trailer, semitrailer, or

904-18   house trailer to the drawing vehicle.  This subsection does not

904-19   apply to the drawing of a trailer, or semitrailer used for

904-20   agricultural purposes.

904-21         (b)  The department shall adopt rules prescribing the type of

904-22   safety chains required to be used according to the weight of the

904-23   trailer, semitrailer, or house trailer being drawn.  The rules

904-24   shall:

 905-1               (1)  require safety chains to be strong enough to

 905-2   maintain the connection between the trailer, semitrailer, or house

 905-3   trailer and the drawing vehicle; and

 905-4               (2)  show the proper method to attach safety chains

 905-5   between the trailer, semitrailer, or [the] house trailer and the

 905-6   drawing vehicle.

 905-7         (c)  Subsection (b) does not apply to trailers, semitrailers,

 905-8   or house trailers that are equipped with safety chains installed by

 905-9   the original manufacturer before the effective date of the rules.

905-10         (d)  This section does not apply to a trailer, semitrailer,

905-11   or house trailer that is operated in compliance with the federal

905-12   motor carrier safety regulations.

905-13         (b)  Section 1, Chapter 842 (H.B. No. 3208), Acts of the 74th

905-14   Legislature, Regular Session, 1995, is repealed.

905-15         SECTION 30.114.  (a)  Section 545.412(d), Transportation

905-16   Code, is amended to conform to Section 126, Chapter 751 (H.B. No.

905-17   433), Acts of the 74th Legislature, Regular Session, 1995, to read

905-18   as follows:

905-19         (d)  Use or nonuse of a child passenger safety seat system is

905-20   not admissible evidence in a civil trial, other than a proceeding

905-21   under Subtitle A or B, Title 5, Family Code.

905-22         (b)  Section 126, Chapter 751 (H.B. No. 433), Acts of the

905-23   74th Legislature, Regular Session, 1995, is repealed.

905-24         SECTION 30.115.  (a)  Sections 545.413(e) and (g),

 906-1   Transportation Code, are amended to conform to Section 1, Chapter

 906-2   580 (S.B. No. 706), and to Section 127, Chapter 751 (H.B.  No.

 906-3   433), Acts of the 74th Legislature, Regular Session, 1995, to read

 906-4   as follows:

 906-5         (e)  It is a defense to prosecution under this section that:

 906-6               (1)  the person possesses a written statement from a

 906-7   licensed physician stating that for a medical reason the person

 906-8   should not wear a safety belt;

 906-9               (2)  the person presents to the court, not later than

906-10   the 10th day after the date of the offense, a statement from a

906-11   licensed physician stating that for a medical reason the person

906-12   should not wear a safety belt; [or]

906-13               (3)  the person is employed by the United States Postal

906-14   Service and performing a duty for that agency that requires the

906-15   operator to service postal boxes from a vehicle or that requires

906-16   frequent entry into and exit from a vehicle; or

906-17               (4)  the person is engaged in the actual delivery of

906-18   newspapers from a vehicle or is performing newspaper delivery

906-19   duties that require frequent entry into and exit from a vehicle.

906-20         (g)  Use or nonuse of a safety belt is not admissible

906-21   evidence in a civil trial, other than a proceeding under Subtitle A

906-22   or B, Title 5, Family Code.

906-23         (b)  Section 1, Chapter 580 (S.B. No. 706), and Section 127,

906-24   Chapter 751 (H.B. No. 433), Acts of the 74th Legislature, Regular

 907-1   Session, 1995, are repealed.

 907-2         SECTION 30.116.  (a)  Section 545.422, Transportation Code,

 907-3   is amended to conform to Sections 1 and 2, Chapter 892 (H.B. No.

 907-4   341), Acts of the 74th Legislature, Regular Session, 1995, to read

 907-5   as follows:

 907-6         Sec. 545.422.  CROSSING SIDEWALK OR HIKE AND BIKE TRAIL.  (a)

 907-7   A person may not drive a motor vehicle on a sidewalk, [or] sidewalk

 907-8   area, or hike and bike trail except on a permanent or authorized

 907-9   temporary driveway.

907-10         (b)  Subsection (a) does not prohibit the operation of a

907-11   motor vehicle on a hike and bike trail in connection with

907-12   maintenance of the trail.

907-13         (c)  In this section, "hike and bike trail" means a trail

907-14   designed for the exclusive use of pedestrians, bicyclists, or both.

907-15         (b)  Sections 1 and 2, Chapter 892 (H.B. No. 341), Acts of

907-16   the 74th Legislature, Regular Session, 1995, are repealed.

907-17         SECTION 30.117.  (a)  Section 547.611(c), Transportation

907-18   Code, is amended to conform to Section 1, Chapter 287 (S.B. No.

907-19   980), Acts of the 74th Legislature, Regular Session, 1995, to read

907-20   as follows:

907-21         (c)  This section does not prohibit the use of:

907-22               (1)  equipment used:

907-23                     (A) [(1)]  exclusively for receiving digital

907-24   information for commercial purposes;

 908-1                     (B) [(2)]  exclusively for a safety or law

 908-2   enforcement purpose, if each installation is approved by the

 908-3   department; or

 908-4                     (C) [(3)]  in a remote television transmission

 908-5   truck; or

 908-6               (2)  a monitoring device that:

 908-7                     (A)  produces an electronic display; and

 908-8                     (B)  is used exclusively in conjunction with a

 908-9   mobile navigation system installed in the vehicle.

908-10         (b)  Section 1, Chapter 287 (S.B. No. 980), Acts of the 74th

908-11   Legislature, Regular Session, 1995, is repealed.

908-12         SECTION 30.118.  (a)  Section 547.613(b), Transportation

908-13   Code, is amended to conform to Section 1, Chapter 408 (H.B. No.

908-14   3062), Acts of the 74th Legislature, Regular Session, 1995, to read

908-15   as follows:

908-16         (b)  This section does not apply to:

908-17               (1)  a windshield that has a sunscreening device that:

908-18                     (A)  has a light transmission of 33 percent or

908-19   more;

908-20                     (B)  has a luminous reflectance of 35 percent or

908-21   less;

908-22                     (C)  is not red or amber; and

908-23                     (D)  does not extend downward beyond the AS-1

908-24   line or more than five inches from the top of the windshield,

 909-1   whichever is closer to the top of the windshield;

 909-2               (2)  a front side wing vent or window, a side window to

 909-3   the rear of the vehicle operator, or a rear window that has a

 909-4   sunscreening device that has a light transmission of 35 percent or

 909-5   more and a luminous reflectance of 35 percent or less;

 909-6               (3)  a rear window, if the motor vehicle is equipped

 909-7   with an outside mirror on each side of the vehicle that reflects to

 909-8   the vehicle operator a view of the highway for a distance of at

 909-9   least 200 feet from the rear;

909-10               (4)  a rearview mirror;

909-11               (5)  an adjustable nontransparent sun visor that is

909-12   mounted in front of a side window and not attached to the glass;

909-13               (6)  a direction, destination, or termination sign on a

909-14   passenger common carrier motor vehicle, if the sign does not

909-15   interfere with the vehicle operator's view of approaching traffic;

909-16               (7)  a rear window wiper motor;

909-17               (8)  a rear trunk lid handle or hinge;

909-18               (9)  a luggage rack attached to the rear trunk;

909-19               (10)  a side window that is to the rear of the vehicle

909-20   operator on a multipurpose vehicle;

909-21               (11)  a window that has a United States, state, or

909-22   local certificate placed on or attached to it as required by law;

909-23               (12)  a motor vehicle that is not registered in this

909-24   state;

 910-1               (13)  a motor vehicle with a manufacturer's model year

 910-2   before 1988; [or]

 910-3               (14)  a vehicle that is:

 910-4                     (A)  used regularly to transport passengers for a

 910-5   fee; and

 910-6                     (B)  authorized to operate under license or

 910-7   permit by a local authority; or

 910-8               (15)  a vehicle that is maintained by a law enforcement

 910-9   agency and used for law enforcement purposes.

910-10         (b)  Section 1, Chapter 408 (H.B. No. 3062), Acts of the 74th

910-11   Legislature, Regular Session, 1995, is repealed.

910-12         SECTION 30.119.  (a)  Subchapter L, Chapter 547,

910-13   Transportation Code, is amended to conform to Section 56, Chapter

910-14   260 (S.B. No. 1), Acts of the 74th Legislature, Regular Session,

910-15   1995, by adding Section 547.7015 to read as follows:

910-16         Sec. 547.7015.  RULES RELATING TO SCHOOL BUSES.  (a)  The

910-17   General Services Commission, with the advice of the department,

910-18   shall adopt and enforce rules governing the design, color, lighting

910-19   and other equipment, construction, and operation of a school bus

910-20   for the transportation of schoolchildren that is:

910-21               (1)  owned and operated by a school district in this

910-22   state; or

910-23               (2)  privately owned and operated under a contract with

910-24   a school district in this state.

 911-1         (b)  In adopting rules under this section, the General

 911-2   Services Commission shall emphasize:

 911-3               (1)  safety features; and

 911-4               (2)  long-range, maintenance-free factors.

 911-5         (c)  Rules adopted under this section:

 911-6               (1)  apply to each school district, the officers and

 911-7   employees of a district, and each person employed under contract by

 911-8   a school district; and

 911-9               (2)  shall by reference be made a part of any contract

911-10   that is entered into by a school district in this state for the

911-11   transportation of schoolchildren on a privately owned school bus.

911-12         (b)  Section 56, Chapter 260 (S.B. No. 1), Acts of the 74th

911-13   Legislature, Regular Session, 1995, is repealed.

911-14         SECTION 30.120.  Section 548.001(5), Transportation Code, is

911-15   amended to conform to the repeal of Chapter 549 and the enactment

911-16   of Chapter 644 of that code by this Act to read as follows:

911-17               (5)  "Federal motor carrier safety regulation" has the

911-18   meaning assigned by Section 644.001 [549.001].

911-19         SECTION 30.121.  (a)  Section 548.052, Transportation Code,

911-20   is amended to conform to Section 3, Chapter 443 (H.B. No. 1225),

911-21   Acts of the 74th Legislature, Regular Session, 1995, to read as

911-22   follows:

911-23         Sec. 548.052.  VEHICLES NOT SUBJECT TO INSPECTION.  This

911-24   chapter does not apply to:

 912-1               (1)  a trailer, semitrailer, pole trailer, or mobile

 912-2   home moving under or bearing a current factory-delivery license

 912-3   plate or current in-transit license plate;

 912-4               (2)  a vehicle moving under or bearing a paper dealer

 912-5   in-transit tag, machinery license, disaster license, parade

 912-6   license, prorate tab, one-trip permit, antique license, temporary

 912-7   24-hour permit, or permit license;

 912-8               (3)  a trailer, semitrailer, pole trailer, or mobile

 912-9   home having an actual gross weight or registered gross weight of

912-10   4,500 pounds or less; [or]

912-11               (4)  farm machinery, road-building equipment, a farm

912-12   trailer, or a vehicle required to display a slow-moving-vehicle

912-13   emblem under Section 547.703; or

912-14               (5)  a former military vehicle, as defined by Section

912-15   502.275(o).

912-16         (b)  Section 3, Chapter 443 (H.B. No. 1225), Acts of the 74th

912-17   Legislature, Regular Session, 1995, is repealed.

912-18         SECTION 30.122.  (a)  Section 548.001(1), Transportation

912-19   Code, is amended to conform to Section 25, Chapter 705 (S.B. No.

912-20   3), Acts of the 74th Legislature, Regular Session, 1995, to read as

912-21   follows:

912-22               (1)  "Commercial motor vehicle" means a self-propelled

912-23   or towed vehicle, other than a farm vehicle with a gross weight,

912-24   registered weight, or gross weight rating of less than 48,000

 913-1   pounds, that is used on a public highway to transport passengers or

 913-2   cargo if:

 913-3                     (A)  the vehicle or combination of vehicles has a

 913-4   gross weight, registered weight, or gross weight rating of more

 913-5   than 26,000 pounds;

 913-6                     (B)  the vehicle is designed to transport more

 913-7   than 15 passengers, including the driver; or

 913-8                     (C)  the vehicle is used to transport hazardous

 913-9   materials in a quantity requiring placarding by a regulation issued

913-10   under the Hazardous Materials Transportation Act (49 U.S.C. Section

913-11   1801 et seq.).

913-12         (b)  Subchapter D, Chapter 548, Transportation Code, is

913-13   amended to conform to Section 25, Chapter 705 (S.B. No. 3), Acts of

913-14   the 74th Legislature, Regular Session, 1995, by adding Section

913-15   548.203 to read as follows:

913-16         Sec. 548.203.  EXEMPTIONS.  The commission by rule may exempt

913-17   a type of commercial motor vehicle from the application of this

913-18   subchapter if the vehicle:

913-19               (1)  was manufactured before September 1, 1995;

913-20               (2)  is operated only temporarily on a highway of this

913-21   state and at a speed of less than 30 miles per hour; and

913-22               (3)  complies with Section 548.051 and each applicable

913-23   provision in Title 49, Code of Federal Regulations.

913-24         (c)  Section 25, Chapter 705 (S.B. No. 3), Acts of the 74th

 914-1   Legislature, Regular Session, 1995, is repealed.

 914-2         SECTION 30.123.  (a)  Section 548.256(c), Transportation

 914-3   Code, is amended to conform to Section 5, Chapter 34 (S.B. No.

 914-4   178), Acts of the 74th Legislature, Regular Session, 1995, to read

 914-5   as follows:

 914-6         (c)  An inspection certificate or receipt for an inspection

 914-7   certificate may not be required to register a motor vehicle, except

 914-8   as provided by this section [or by Section 382.037, Health and

 914-9   Safety Code].

914-10         (b)  Section 5, Chapter 34 (S.B. No. 178), Acts of the 74th

914-11   Legislature, Regular Session, 1995, is repealed.

914-12         (c)  Section 548.251, Transportation Code, is amended to

914-13   conform to Section 8, Chapter 34 (S.B. No. 178), Acts of the 74th

914-14   Legislature, Regular Session, 1995, to read as follows:

914-15         Sec. 548.251.  DEPARTMENT TO PROVIDE INSPECTION CERTIFICATES

914-16   AND VERIFICATION FORMS.  The department shall provide serially

914-17   numbered inspection certificates and verification forms to

914-18   inspection stations.  The department may issue a unique inspection

914-19   certificate for:

914-20               (1)  a commercial motor vehicle inspected under Section

914-21   548.201; or

914-22               (2)  a vehicle inspected under Section 548.301(a) or

914-23   (b).

914-24         (d)  Section 548.301, Transportation Code, is amended to

 915-1   conform to Section 8, Chapter 34 (S.B. No. 178), Acts of the 74th

 915-2   Legislature, Regular Session, 1995, to read as follows:

 915-3         Sec. 548.301.  COMMISSION TO ESTABLISH PROGRAM.  (a)  The

 915-4   commission shall establish a motor vehicle emissions inspection and

 915-5   maintenance program for vehicles covered by the Texas air quality

 915-6   state implementation plan authorized by Section 382.0371, Health

 915-7   and Safety Code, or otherwise specified by the department at the

 915-8   direction of the governor [registered] in a county for which the

 915-9   conservation commission has adopted a resolution requesting the

915-10   department to establish such a program if:

915-11               (1)  the county does not meet the national ambient air

915-12   quality standards for ozone, carbon monoxide, or another

915-13   vehicle-related pollutant; or

915-14               (2)  the program is required in the county by any law

915-15   of the United States, including the Texas air quality state

915-16   implementation plan.

915-17         (b)  The commission may establish a motor vehicle emissions

915-18   inspection and maintenance program for vehicles specified by the

915-19   conservation commission at the direction of the governor

915-20   [registered] in a county for which the conservation commission has

915-21   adopted a resolution requesting the department to establish such a

915-22   program and for which the county and the municipality with the

915-23   largest population in the county by resolution have formally

915-24   requested a proactive air quality plan consisting of such a

 916-1   program.

 916-2         (c)  A program established under Subsection (b) may not

 916-3   include registration-based enforcement [unless the Texas Department

 916-4   of Transportation includes the program in its registration

 916-5   enforcement system].

 916-6         (e)  Section 548.302, Transportation Code, is amended to

 916-7   conform to Section 8, Chapter 34 (S.B. No. 178), Acts of the 74th

 916-8   Legislature, Regular Session, 1995, to read as follows:

 916-9         Sec. 548.302.  COMMISSION TO ADOPT STANDARDS AND

916-10   REQUIREMENTS.  The commission shall:

916-11               (1)  adopt standards for emissions-related inspection

916-12   criteria consistent with requirements of the United States and the

916-13   conservation commission applicable to a county in which a program

916-14   is established under Section 548.301; and

916-15               (2)  develop and implement requirements necessary to

916-16   ensure that an inspection certificate is not issued to a vehicle

916-17   subject to a program established under Section 548.301 unless the

916-18   vehicle has passed a vehicle emissions inspection at a facility

916-19   authorized and licensed by the department.

916-20         (f)  Section 548.303, Transportation Code, is amended to

916-21   conform to Section 8, Chapter 34 (S.B. No. 178), Acts of the 74th

916-22   Legislature, Regular Session, 1995, to read as follows:

916-23         Sec. 548.303.  PROGRAM ADMINISTRATION.  (a)  The commission

916-24   shall administer the motor vehicle emissions inspection and

 917-1   maintenance program under this subchapter until the [date a]

 917-2   vehicle emissions inspection program administered by the department

 917-3   is suspended or discontinued at the direction of the governor under

 917-4   Section 382.037(a-1), Health and Safety Code [conservation

 917-5   commission is implemented under the Clean Air Act].

 917-6         (b)  The department may reestablish a program under Section

 917-7   548.301 or otherwise as directed by the governor under Section

 917-8   382.037(a-1), Health and Safety Code [executive director of the

 917-9   conservation commission shall notify the commission of the date the

917-10   conservation commission's program will become effective].

917-11         (g)  Section 548.304, Transportation Code, is amended to

917-12   conform to Sections 6 and 8, Chapter 34 (S.B. No. 178), Acts of the

917-13   74th Legislature, Regular Session, 1995, to read as follows:

917-14         Sec. 548.304.  STATIONS LICENSED TO CONDUCT EMISSIONS

917-15   INSPECTIONS [REINSPECTIONS].  (a)  The department [conservation

917-16   commission] may authorize and license inspection stations as

917-17   necessary to implement the emissions-related inspection

917-18   [reinspection] requirements of the program established under

917-19   Section 382.0371, Health and Safety Code, and Section 548.301.

917-20         (b)  The [At the request of the conservation commission, the]

917-21   department shall provide inspection certificates for distribution

917-22   and issuance at decentralized inspection [centralized reinspection]

917-23   stations licensed by the department [conservation commission].

917-24         (c)  The department shall authorize a vehicle emissions

 918-1   inspection facility authorized and licensed under Subsection (a) to

 918-2   issue a unique inspection certificate for a vehicle that passes an

 918-3   inspection under Section 548.301 and Subchapter B.

 918-4         (d)  Notwithstanding Section 548.053(a), if an

 918-5   emissions-related inspection under Section 548.301 discloses the

 918-6   necessity for adjustment, correction, or repair, the conservation

 918-7   commission may by rule require that the vehicle be reinspected at a

 918-8   specified inspection station authorized and licensed by the

 918-9   conservation commission to ensure that the emissions-related

918-10   adjustment, correction, or repair is made.

918-11         (h)  Subchapter F, Chapter 548, Transportation Code, is

918-12   amended to conform to Section 6, Chapter 34 (S.B. No. 178), Acts of

918-13   the 74th Legislature, Regular Session, 1995, by adding Section

918-14   548.3045 to read as follows:

918-15         Sec. 548.3045.  APPOINTMENT OF DECENTRALIZED FACILITY.  (a)

918-16   The department may issue an inspection station certificate to a

918-17   decentralized facility authorized and licensed by the department

918-18   under Section 548.304 if the facility meets the certification

918-19   requirements of that section and the department.

918-20         (b)  A decentralized facility issued a certificate under

918-21   Subsection (a) is authorized to perform an inspection under this

918-22   subchapter or Subchapter B.

918-23         (i)  Section 548.505, Transportation Code, is amended to

918-24   conform more closely to the law from which it was derived and to

 919-1   Section 6, Chapter 34 (S.B. No. 178), Acts of the 74th Legislature,

 919-2   Regular Session, 1995, by amending Subsections (c) and (d) and

 919-3   adding Subsections (e) and (f) to read as follows:

 919-4         (c)  If an inspection under Section 548.101 [548.501] or

 919-5   Section 548.102 [548.503] is not performed when an inspection is

 919-6   performed under Section 548.301(a), the only fee due is the fee

 919-7   authorized by this section.

 919-8         (d)  The decentralized inspection stations [conservation

 919-9   commission] shall[:]

919-10               [(1)]  pay to the department an amount equal to the

919-11   cost of producing certificates provided to the decentralized

919-12   inspection [centralized reinspection] stations under Section

919-13   548.304.

919-14         (e)  The conservation commission shall[;]

919-15               [(2)  establish a reinspection fee; and]

919-16               [(3)]  implement procedures governing the tracking of

919-17   certificates and the refunding of the cost of unissued certificates

919-18   provided to inspection [reinspection] stations.

919-19         (f)  The department may establish a maximum fee for an

919-20   inspection under Section 548.301.  The department may not establish

919-21   a minimum fee for the inspection.

919-22         (j)  Sections 548.603(b) and (c), Transportation Code, are

919-23   amended to conform to Section 7, Chapter 34 (S.B. No. 178), Acts of

919-24   the 74th Legislature, Regular Session, 1995, to read as follows:

 920-1         (b)  The owner of a vehicle commits an offense if the

 920-2   vehicle:

 920-3               (1)  is operated [or parked] on a public highway; and

 920-4               (2)  displays an inspection certificate in violation of

 920-5   Subsection (a).

 920-6         (c)  An [Except as provided by Subsection (d), an] offense

 920-7   under Subsection (a) is a misdemeanor punishable by a fine of not

 920-8   less than $1 [$100] or more than $200.

 920-9         (k)  Sections 548.603(d) and (e), Transportation Code, are

920-10   repealed to conform to the repeal of the law from which those

920-11   sections were derived by Section 7, Chapter 34 (S.B. No. 178), Acts

920-12   of the 74th Legislature, Regular Session, 1995.

920-13         (l)  Sections 6, 7, and 8, Chapter 34 (S.B. No. 178), Acts of

920-14   the 74th Legislature, Regular Session, 1995, are repealed.

920-15         SECTION 30.124.  Chapter 549, Transportation Code, is

920-16   repealed to conform to the repeal of the law from which it was

920-17   derived by Section 31(a)(13), Chapter 705 (S.B. No. 3), Acts of the

920-18   74th Legislature, Regular Session, 1995.

920-19         SECTION 30.125.  (a)  Section 550.065, Transportation Code,

920-20   is amended to conform to Section 1, Chapter 894 (H.B. No. 391),

920-21   Acts of the 74th Legislature, Regular Session, 1995, to read as

920-22   follows:

920-23         Sec. 550.065.  RELEASE OF ACCIDENT REPORTS.  (a)  This

920-24   section applies to an accident report required by this chapter or

 921-1   by Section 601.004 [An accident report prepared by a peace officer

 921-2   and submitted to the department after January 1, 1970, is a public

 921-3   record open for inspection].

 921-4         (b)  Except as provided by Subsection (c), an accident report

 921-5   made by a person involved in an accident, by a garage, or by a

 921-6   peace officer is:

 921-7               (1)  without prejudice to the individual making the

 921-8   report; and

 921-9               (2)  privileged and for the confidential use of:

921-10                     (A)  the department; and

921-11                     (B)  an agency of the United States, this state,

921-12   or a local government of this state that has use for the report for

921-13   accident prevention purposes.

921-14         (c)  On written request and payment of the required fee, the

921-15   department or the law enforcement agency that employs the peace

921-16   officer who makes an accident report shall release a copy of the

921-17   report to:

921-18               (1)  an agency described by Subsection (b)(2)(B);

921-19               (2)  the law enforcement agency that employs the peace

921-20   officer who investigated the accident and sent the report to the

921-21   department;

921-22               (3)  the court in which a case involving a person

921-23   involved in the accident is pending, if the report is subpoenaed;

921-24   or

 922-1               (4)  a person who provides the department or law

 922-2   enforcement agency with two or more of the following:

 922-3                     (A)  the date of the accident;

 922-4                     (B)  the name of any person involved in the

 922-5   accident; or

 922-6                     (C)  the specific location of the accident.

 922-7         (d)  The department or law enforcement agency shall request

 922-8   information on a written form adopted by the department or the

 922-9   agency to determine whether the person or entity requesting an

922-10   accident report is entitled to receive the report under Subsection

922-11   (c).

922-12         (e)  [On written request and payment of the required fee, the

922-13   department or a law enforcement agency shall provide a copy of a

922-14   peace officer's report that may be released under this section.]

922-15         [(c)]  The fee for a copy of the peace officer's report is

922-16   $4.  The copy may be certified by the department or a law

922-17   enforcement agency for an additional fee of $2.  The department may

922-18   issue a certification that no report is on file for a fee of $4.

922-19         (b)  Section 1, Chapter 894 (H.B. No. 391), Acts of the 74th

922-20   Legislature, Regular Session, 1995, is repealed.

922-21         SECTION 30.126.  (a)  Section 601.007, Transportation Code,

922-22   is amended to conform to Section 29, Chapter 705 (S.B. No. 3), Acts

922-23   of the 74th Legislature, Regular Session, 1995, to read as follows:

922-24         Sec. 601.007.  APPLICABILITY OF CHAPTER TO[:]  GOVERNMENT

 923-1   VEHICLES[; CERTAIN MOTOR CARRIERS].  (a)  This chapter does not

 923-2   apply to a government vehicle.

 923-3         (b)  The provisions of this chapter, other than Section

 923-4   601.004, do not apply to an officer, agent, or employee of the

 923-5   United States, this state, or a political subdivision of this state

 923-6   while operating a government vehicle in the course of that person's

 923-7   employment.

 923-8         (c)  The provisions of this chapter, other than Sections

 923-9   601.004 and 601.054, do not apply to a motor vehicle that is

923-10   subject to Chapter 643 [Section 11, Chapter 270, Acts of the 40th

923-11   Legislature, Regular Session, 1927 (Article 911a, Vernon's Texas

923-12   Civil Statutes), or Section 13, Chapter 314, Acts of the 41st

923-13   Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas

923-14   Civil Statutes)].

923-15         (d)  In this section, "government vehicle" means a motor

923-16   vehicle owned by the United States, this state, or a political

923-17   subdivision of this state.

923-18         (b)  Section 29, Chapter 705 (S.B. No. 3), Acts of the 74th

923-19   Legislature, Regular Session, 1995, is repealed.

923-20         SECTION 30.127.  (a)  Sections 601.052(a) and (c),

923-21   Transportation Code, are amended to conform to Section 4, Chapter

923-22   443 (H.B. No. 1225), Acts of the 74th Legislature, Regular Session,

923-23   1995, to read as follows:

923-24         (a)  Section 601.051 does not apply to:

 924-1               (1)  the operation of a motor vehicle that:

 924-2                     (A)  is a former military vehicle or is at least

 924-3   25 years old;

 924-4                     (B)  is used only for exhibitions, club

 924-5   activities, parades, and other functions of public interest and not

 924-6   for regular transportation; and

 924-7                     (C)  for which the owner files with the

 924-8   department an affidavit, signed by the owner, stating that the

 924-9   vehicle is a collector's item and used only as described by

924-10   Paragraph (B);

924-11               (2)  the operation of a golf cart; or

924-12               (3)  a volunteer fire department for the operation of a

924-13   motor vehicle the title of which is held in the name of a volunteer

924-14   fire department.

924-15         (c)  In this section:

924-16               (1)  "Former military vehicle" has the meaning assigned

924-17   by Section 502.275(o).

924-18               (2)  "Volunteer[, "volunteer] fire department" means a

924-19   company, department, or association that is:

924-20                     (A) [(1)]  organized in an unincorporated area to

924-21   answer fire alarms and extinguish fires or to answer fire alarms,

924-22   extinguish fires, and provide emergency medical services; and

924-23                     (B) [(2)]  composed of members who:

924-24                           (i) [(A)]  do not receive compensation; or

 925-1                           (ii) [(B)]  receive only nominal

 925-2   compensation.

 925-3         (b)  Section 4, Chapter 443 (H.B. No. 1225), Acts of the 74th

 925-4   Legislature, Regular Session, 1995, is repealed.

 925-5         SECTION 30.128.  Section 601.340(a), Transportation Code, is

 925-6   amended to more closely conform to the law from which it was

 925-7   derived to read as follows:

 925-8         (a)  Except as provided by Subsection (b), the department

 925-9   shall suspend the registration of each motor vehicle registered in

925-10   the name of a person if the department:

925-11               (1)  under any state law, other than Section

925-12   521.341(6), suspends or revokes the person's driver's license on

925-13   receipt of a record of a conviction or a forfeiture of bail; or

925-14               (2)  receives a record of a guilty plea of the person

925-15   entered for an offense for which the department would be required

925-16   to suspend the driver's license of a person convicted of the

925-17   offense.

925-18         SECTION 30.129.  Sections 601.341 and 601.342, Transportation

925-19   Code, are amended to more closely conform to the law from which

925-20   those sections were derived to read as follows:

925-21         Sec. 601.341.  EVIDENCE OF FINANCIAL RESPONSIBILITY;

925-22   TERMINATION OF PENALTY.  Unless a person whose driver's license or

925-23   vehicle registration has been suspended or revoked under this

925-24   subchapter files and maintains evidence of financial responsibility

 926-1   with the department:

 926-2               (1)  the suspension or revocation may not be

 926-3   terminated;

 926-4               (2)  the driver's license or registration may not be

 926-5   renewed;

 926-6               (3)  a new driver's license may not be issued to the

 926-7   person; or

 926-8               (4)  a motor vehicle may not be registered in the name

 926-9   of the person.

926-10         Sec. 601.342.  EVIDENCE OF FINANCIAL RESPONSIBILITY FOLLOWING

926-11   SUSPENSION OR REVOCATION OF NONRESIDENT'S OPERATING PRIVILEGE.  The

926-12   department may not terminate the suspension or revocation of a

926-13   nonresident's operating privilege suspended or revoked under this

926-14   subchapter because of a conviction, forfeiture of bail, or guilty

926-15   plea unless the person files and maintains evidence of financial

926-16   responsibility with the department.

926-17         SECTION 30.130.  Section 5, Chapter 621 (H.B. No. 1487), Acts

926-18   of the 74th Legislature, Regular Session, 1995, is repealed.

926-19         SECTION 30.131.  Section 621.102, Transportation Code, is

926-20   amended to conform more closely to the law from which it was

926-21   derived by amending Subsection (a) and adding Subsection (g) to

926-22   read as follows:

926-23         (a)  The commission may set the maximum gross weight of a

926-24   vehicle and its load, maximum gross weight of a combination of

 927-1   vehicles and loads, maximum axle load, or maximum wheel load that

 927-2   may be moved over a state highway or a farm or ranch road if the

 927-3   commission finds that heavier maximum weight would rapidly

 927-4   deteriorate or destroy the road or a bridge or culvert along the

 927-5   road.  A maximum weight or load set under this subsection may not

 927-6   exceed the maximum set by statute for that weight or load.

 927-7         (g)  This section does not apply to a vehicle delivering

 927-8   groceries, farm products, or liquefied petroleum gas.

 927-9         SECTION 30.132.  Section 621.206, Transportation Code, is

927-10   amended by amending Subsection (a) to more closely conform to the

927-11   law from which it was derived and by repealing Subsection (b) to

927-12   conform to the repeal of the source law for that subsection

927-13   (Section 4, Chapter 42, General Laws, Acts of the 41st Legislature,

927-14   2nd Called Session, 1929 (Article 6701d-11, Vernon's Texas Civil

927-15   Statutes) by the Uniform Act Regulating Traffic on Highways

927-16   (Article 6701d, Vernon's Texas Civil Statutes), revised as Subtitle

927-17   C, Title 7, Transportation Code, to read as follows:

927-18         Sec. 621.206.  MAXIMUM EXTENDED LENGTH OF LOAD[; SAFETY

927-19   INDICATOR].  [(a)]  A vehicle or combination of vehicles may not

927-20   carry a load that extends more than three feet beyond its front or,

927-21   except as permitted by other law, more than four feet beyond its

927-22   rear.

927-23         [(b)  If the load, drawbar, or coupling on a vehicle extends

927-24   beyond the rear of the bed or body of the vehicle, a red flag that

 928-1   is at least 12 inches long and at least 12 inches wide shall be

 928-2   displayed at the end of the load or extension so that the flag is

 928-3   clearly visible at all times from the rear of the load or

 928-4   extension, except that between one-half hour after sunset and

 928-5   one-half hour before sunrise, a red light, plainly visible under

 928-6   normal atmospheric conditions at least 500 feet from the rear of

 928-7   the vehicle, shall be displayed at the end of the load or

 928-8   extension.]

 928-9         SECTION 30.133.  (a)  Section 621.353, Transportation Code,

928-10   is amended to conform to Section 6, Chapter 624 (H.B. No. 1547),

928-11   Acts of the 74th Legislature, Regular Session, 1995, and to Section

928-12   1, Chapter 992 (S.B. No. 20), Acts of the 74th Legislature, Regular

928-13   Session, 1995, by amending Subsections (a) and (c) and adding

928-14   Subsection (d) to read as follows:

928-15         (a)  The comptroller [state treasurer] shall send $50 of each

928-16   base fee collected under Section 623.011 for an excess weight

928-17   permit to the counties of the state, with each county receiving an

928-18   amount determined according to the ratio of the total number of

928-19   miles of county roads maintained by the county to the total number

928-20   of miles of county roads maintained by all of the counties of this

928-21   state.  The comptroller shall deposit $25 of each base fee, plus

928-22   each fee collected under Section 623.0112, to the credit of the

928-23   state highway fund.  Money deposited to the credit of that fund

928-24   under this subsection may be appropriated only to the department to

 929-1   administer this section and Sections 623.011, 623.0111, and

 929-2   623.0112.

 929-3         (c)  The comptroller shall send each fee collected under

 929-4   Section 623.0112 for an excess weight permit to the counties

 929-5   designated on the application for the permit, with each county

 929-6   shown on the application receiving an amount determined according

 929-7   to the ratio of the total number of miles of county roads

 929-8   maintained by the county to the total number of miles of county

 929-9   roads maintained by all of the counties designated on the

929-10   application.

929-11         (d)  The county treasurer or officer shall deposit amounts

929-12   received under this section to the credit of the county road and

929-13   bridge fund.  Money deposited to the credit of that fund under this

929-14   subsection may be used only for a purpose authorized by Section

929-15   256.001(a).

929-16         (b)  Section 621.506, Transportation Code, is amended to

929-17   conform to Section 8, Chapter 624 (H.B. No. 1547), Acts of the 74th

929-18   Legislature, Regular Session, 1995, by amending Subsections (b) and

929-19   (d) and adding Subsections (f) and (g) to read as follows:

929-20         (b)  An offense under this section is a misdemeanor

929-21   punishable:

929-22               (1)  by a fine of not less than $100 and not more than

929-23   $150;

929-24               (2)  on conviction of an offense involving a vehicle

 930-1   having a gross weight that is more than 5,000 but not more than

 930-2   10,000 pounds heavier than the vehicle's allowable gross weight, by

 930-3   a fine of not less than $300 or more than $500;

 930-4               (3)  on conviction of an offense involving a vehicle

 930-5   having a gross weight that is more than 10,000 pounds heavier than

 930-6   the vehicle's allowable gross weight, by a fine of not less than

 930-7   $500 or more than $1,000; or

 930-8               (4)  on conviction before the first anniversary of the

 930-9   date of a previous conviction under this section, by a fine in an

930-10   amount that is twice the amount specified by Subdivision (1), (2),

930-11   or (3).  [before the first anniversary of the date of a previous

930-12   conviction under this section, by a fine of not less than $150 or

930-13   more than $250, by confinement in a county jail for not more than

930-14   60 days, or by both the fine and confinement; or]

930-15               [(3)  on conviction before the first anniversary of the

930-16   date of a previous conviction under this section that was

930-17   punishable under Subdivision (2) or this subdivision, by a fine of

930-18   not less than $200 or more than $500, by confinement in the county

930-19   jail for not more than six months, or by both the fine and

930-20   confinement.]

930-21         (d)  A judge or justice shall promptly report to the

930-22   Department of Public Safety each conviction obtained in the judge's

930-23   or the justice's court under this section.  The Department of

930-24   Public Safety shall keep a record of each conviction reported to it

 931-1   under this subsection.

 931-2         (f)  A justice court has jurisdiction of an offense under

 931-3   this section.  A municipal court has jurisdiction of an offense

 931-4   under this section for which the fine does not exceed $500.

 931-5         (g)  A governmental entity that collects a fine under this

 931-6   section for an offense involving a vehicle having a gross weight

 931-7   that is more than 5,000 pounds heavier than the vehicle's allowable

 931-8   gross weight shall send an amount equal to 50 percent of the fine

 931-9   to the comptroller.

931-10         (c)  Sections 6 and 8, Chapter 624 (H.B. No. 1547), Acts of

931-11   the 74th Legislature, Regular Session, 1995, are repealed.

931-12         SECTION 30.134.  (a)  Section 622.011(a), Transportation

931-13   Code, is amended to conform to Section 2, Chapter 624 (H.B. No.

931-14   1547), Acts of the 74th Legislature, Regular Session, 1995, to read

931-15   as follows:

931-16         (a)  In this subchapter, "ready-mixed concrete truck" means:

931-17               (1)  a vehicle designed exclusively to transport or

931-18   manufacture ready-mixed concrete and includes a vehicle designed

931-19   exclusively to transport and manufacture ready-mixed concrete; or

931-20               (2)  a concrete pump truck.

931-21         (b)  Section 622.042, Transportation Code, is amended to

931-22   conform to Section 3, Chapter 624 (H.B. No. 1547), Acts of the 74th

931-23   Legislature, Regular Session, 1995, to read as follows:

931-24         Sec. 622.042.  TIME OF OPERATION.  (a)  A vehicle subject to

 932-1   this subchapter may be operated only during daytime [between

 932-2   sunrise and sunset as defined by law].

 932-3         (b)  In this section, "daytime" has the meaning assigned by

 932-4   Section 541.401.

 932-5         (c)  Section 622.062, Transportation Code, is amended to

 932-6   conform to Section 4, Chapter 624 (H.B. No. 1547), Acts of the 74th

 932-7   Legislature, Regular Session, 1995, by amending Subsection (a) and

 932-8   adding Subsection (c) to read as follows:

 932-9         (a)  A vehicle to which this subchapter applies may be

932-10   operated only during daytime [between sunrise and sunset as defined

932-11   by law].

932-12         (c)  In this section, "daytime" has the meaning assigned by

932-13   Section 541.401.

932-14         (d)  Sections 2, 3, and 4, Chapter 624 (H.B. No. 1547), Acts

932-15   of the 74th Legislature, Regular Session, 1995, are repealed.

932-16         SECTION 30.135.  Section 622.012, Transportation Code, is

932-17   amended to more closely conform to the law from which it was

932-18   derived to read as follows:

932-19         Sec. 622.012.  Axle-load Restrictions.  (a)  A ready-mixed

932-20   concrete truck may be operated on a public highway of this state

932-21   only if the tandem axle load is not heavier than 46,000 [50,600]

932-22   pounds and[,] the single axle load is not heavier than 23,000

932-23   [25,300] pounds.

932-24         (b)  A truck may be operated at a weight that exceeds the

 933-1   maximum single axle or tandem axle load limitation by not more than

 933-2   10 percent if[, and] the gross load is not heavier than 69,000

 933-3   pounds.

 933-4         SECTION 30.136.  (a)  Chapter 622, Transportation Code, is

 933-5   amended by adding Subchapter J to codify Article 6701d-19c, Revised

 933-6   Statutes, as added by Section 1, Chapter 826 (H.B. No. 2584), Acts

 933-7   of the 74th Legislature, Regular Session, 1995, to read as follows:

 933-8              SUBCHAPTER J.  CERTAIN VEHICLES TRANSPORTING

 933-9                          RECYCLABLE MATERIALS

933-10         Sec. 622.131.  DEFINITION.  In this subchapter, "recyclable

933-11   material" has the meaning assigned by Section 361.421, Health and

933-12   Safety Code.

933-13         Sec. 622.132.  APPLICABILITY OF SUBCHAPTER.  (a)  This

933-14   subchapter applies only to a vehicle equipped with one or more

933-15   container roll-off units.

933-16         (b)  This subchapter does not apply to a tractor-trailer

933-17   combination.

933-18         Sec. 622.133.  AXLE-LOAD RESTRICTIONS.  A vehicle used

933-19   exclusively to transport recyclable materials may be operated on a

933-20   public highway only if the tandem axle load is not heavier than

933-21   44,000 pounds, the single axle load is not heavier than 21,000

933-22   pounds, and the gross load is not heavier than 64,000 pounds.

933-23         Sec. 622.134.  SURETY BOND.  (a)  Except as provided by

933-24   Subsection (c), the owner of a vehicle covered by this subchapter

 934-1   with a tandem axle load heavier than 34,000 pounds shall before

 934-2   operating the vehicle on a public highway of this state file with

 934-3   the department a surety bond subject to the approval of the

 934-4   department in the principal amount set by the department not to

 934-5   exceed $15,000 for each vehicle.

 934-6         (b)  The bond must be conditioned that the owner of the

 934-7   vehicle will pay, within the limits of the bond, to the state any

 934-8   damage to a highway and to a municipality any damage to a municipal

 934-9   street caused by the operation of the vehicle.

934-10         (c)  Subsection (a) does not apply to a vehicle owned by a

934-11   municipality.

934-12         Sec. 622.135.  INTERSTATE AND DEFENSE HIGHWAYS.  (a)  This

934-13   subchapter does not authorize the operation on the national system

934-14   of interstate and defense highways in this state of a vehicle of a

934-15   size or weight greater than authorized in 23 U.S.C. Section 127, as

934-16   amended.

934-17         (b)  If the United States authorizes the operation on the

934-18   national system of interstate and defense highways of vehicles of a

934-19   size or weight greater than those authorized on January 1, 1983,

934-20   the new limit automatically takes effect on the national system of

934-21   interstate and defense highways in this state.

934-22         Sec. 622.136.  PENALTIES.  (a)  A person commits an offense

934-23   if the person violates this subchapter.

934-24         (b)  Except as provided by Subsection (c), an offense under

 935-1   this section is a misdemeanor punishable:

 935-2               (1)  by a fine not to exceed $200;

 935-3               (2)  on conviction within one year after the date of a

 935-4   prior conviction under this section that was punishable under

 935-5   Subdivision (1), by a fine not to exceed $500, by confinement in

 935-6   the county jail for not more than 60 days, or by both the fine and

 935-7   confinement; or

 935-8               (3)  on conviction within one year after the date of a

 935-9   prior conviction under this section that was punishable under

935-10   Subdivision (2), by a fine not to exceed $1,000, by confinement in

935-11   the county jail for not more than six months, or by both the fine

935-12   and confinement.

935-13         (c)  A corporation is not subject to confinement for an

935-14   offense under this section, but two times the maximum fine provided

935-15   for in the applicable subdivision of Subsection (b) may be imposed

935-16   against the corporation.

935-17         (b)  Article 6701d-19c, Revised Statutes, as added by Section

935-18   1, Chapter 826 (H.B. No. 2584), Acts of the 74th Legislature,

935-19   Regular Session, 1995, is repealed.

935-20         SECTION 30.137.  (a)  Section 622.902, Transportation Code,

935-21   is amended to conform to Sections 26 and 27, Chapter 705 (S.B. No.

935-22   3), Acts of the 74th Legislature, Regular Session, 1995, to read as

935-23   follows:

935-24         Sec. 622.902.  LENGTH EXCEPTIONS.  The length limitations

 936-1   provided by Sections 621.203-621.205 do not apply to:

 936-2               (1)  machinery used exclusively for drilling water

 936-3   wells, including machinery that is itself a unit or that is a unit

 936-4   mounted on a conventional vehicle or chassis;

 936-5               (2)  a vehicle owned or operated by a public, private,

 936-6   or volunteer fire department;

 936-7               (3)  a vehicle or combination of vehicles operated

 936-8   exclusively in the territory of a municipality or to a combination

 936-9   of vehicles operated by a municipality in a suburb adjoining the

936-10   municipality in which the municipality has been using the equipment

936-11   or similar equipment in connection with an established service to

936-12   the suburb;

936-13               (4)  a truck-tractor, truck-tractor combination, or

936-14   truck-trailer combination exclusively transporting machinery,

936-15   materials, and equipment [incidental to or] used in the

936-16   construction, operation, and maintenance of facilities, including

936-17   pipelines, that are used for the discovery, production, and

936-18   processing of natural gas or [and] petroleum[, and that machinery,

936-19   materials, and equipment when used in the construction and

936-20   maintenance of pipelines];

936-21               (5)  a drive-away saddlemount vehicle transporter

936-22   combination or a drive-away saddlemount with fullmount vehicle

936-23   transporter combination, as defined by 23 C.F.R. Part 658 or its

936-24   successor, if:

 937-1                     (A)  the overall length of the combination is not

 937-2   longer than 75 feet; and

 937-3                     (B)  the combination does not have more than

 937-4   three saddlemounted vehicles if the combination does not include

 937-5   more than one fullmount vehicle; or

 937-6               (6)  the combination of a tow truck and another vehicle

 937-7   or vehicle combination if:

 937-8                     (A)  the other vehicle or vehicle combination

 937-9   cannot be normally or safely driven or was abandoned on a highway;

937-10   and

937-11                     (B)  the tow truck is towing the other vehicle or

937-12   vehicle combination directly to the nearest authorized place of

937-13   repair, terminal, or destination of unloading.

937-14         (b)  Sections 26 and 27, Chapter 705 (S.B. No. 3), Acts of

937-15   the 74th Legislature, Regular Session, 1995, are repealed.

937-16         SECTION 30.138.  (a)  Section 623.011, Transportation Code,

937-17   is amended to conform to Sections 1, 6, and 7, Chapter 624 (H.B.

937-18   No. 1547), Acts of the 74th Legislature, Regular Session, 1995, by

937-19   amending Subsection (b) and adding Subsections (d)-(g) to read as

937-20   follows:

937-21         (b)  To qualify for a permit under this section:

937-22               (1)  the vehicle must be registered under Chapter 502

937-23   for the maximum gross weight applicable to the vehicle under

937-24   Section 621.101, not to exceed 80,000 pounds;

 938-1               (2)  the security requirement of Section 623.012 must

 938-2   be satisfied; and

 938-3               (3)  a base permit fee of $75, any additional fee

 938-4   required by Section 623.0111, and any additional fee set by the

 938-5   department under Section 623.0112 must be paid.

 938-6         (d)  When the department issues a permit under this section,

 938-7   the department shall issue a sticker to be placed on the front

 938-8   windshield of the vehicle above the inspection certificate issued

 938-9   to the vehicle.  The department shall design the form of the

938-10   sticker to aid in the enforcement of weight limits for vehicles.

938-11         (e)  The sticker must:

938-12               (1)  indicate the expiration date of the permit; and

938-13               (2)  be removed from the vehicle when:

938-14                     (A)  the permit for operation of the vehicle

938-15   expires;

938-16                     (B)  a lease of the vehicle expires; or

938-17                     (C)  the vehicle is sold.

938-18         (f)  A person commits an offense if the person fails to

938-19   display the sticker in the manner required by Subsection (d).  An

938-20   offense under this subsection is a Class C misdemeanor.  Section

938-21   623.019(g) applies to an offense under this subsection.

938-22         (g)  A vehicle operating under a permit issued under this

938-23   section may exceed the maximum allowable gross weight tolerance

938-24   allowance by not more than five percent, regardless of the weight

 939-1   of any one axle or tandem axle, if no axle or tandem axle exceeds

 939-2   the tolerance permitted by Subsection (a).

 939-3         (b)  Subchapter B, Chapter 623, Transportation Code, is

 939-4   amended to conform to Section 6, Chapter 624 (H.B. No. 1547), Acts

 939-5   of the 74th Legislature, Regular Session, 1995, by adding Sections

 939-6   623.0111 and 623.0112 to read as follows:

 939-7         Sec. 623.0111.  ADDITIONAL FEE FOR OPERATION OF VEHICLE UNDER

 939-8   PERMIT.  (a)  When a person applies for a permit under Section

 939-9   623.011, the person must:

939-10               (1)  designate in the application each county in which

939-11   the vehicle will be operated; and

939-12               (2)  pay in addition to other fees an annual fee in an

939-13   amount determined according to the following table:

939-14         Number of Counties Designated                     Fee        

939-15                     1-20                                   $125      

939-16                     21-40                                  $345      

939-17                     41-60                                  $565      

939-18                     61-80                                  $785      

939-19                     81-100                               $1,005      

939-20                     101-254                              $2,000      

939-21         (b)  A permit issued under Section 623.011 does not authorize

939-22   the operation of the vehicle in a county that is not designated in

939-23   the application.

939-24         Sec. 623.0112.  ADDITIONAL ADMINISTRATIVE FEE.  When a person

 940-1   applies for a permit under Section 623.011, the person must pay in

 940-2   addition to other fees an administrative fee adopted by department

 940-3   rule in an amount not to exceed the direct and indirect cost to the

 940-4   department of:

 940-5               (1)  issuing a sticker under Section 623.011(d);

 940-6               (2)  distributing fees under Section 621.353; and

 940-7               (3)  notifying counties under Section 623.013.

 940-8         (c)  Section 623.013, Transportation Code, is amended to

 940-9   conform to Section 5, Chapter 624 (H.B. No. 1547), Acts of the 74th

940-10   Legislature, Regular Session, 1995, to read as follows:

940-11         Sec. 623.013.  DEPARTMENT'S [PERMIT HOLDER'S] NOTICE TO

940-12   COUNTY.  (a)  Not later than the 14th day after the date the

940-13   department issues [a person receives] a permit under Section

940-14   623.011, the department [person] shall notify [by certified or

940-15   registered mail, return receipt requested,] the county clerk of

940-16   each county listed in the application for the permit [which the

940-17   person intends that the vehicle be operated].  The notice must

940-18   include:

940-19               (1)  the name and address of the person for whom a

940-20   permit was issued [registered owner or operator of the vehicle];

940-21   and

940-22               (2)  the vehicle identification number and license

940-23   plate number of the vehicle[;]

940-24               [(3)  a statement that the person intends that a

 941-1   vehicle with a gross weight, axle weight, or wheel load that

 941-2   exceeds the limitations established under Subchapter B of Chapter

 941-3   621 or Section 621.301 be operated on or over the county roads,

 941-4   bridges, and culverts; and]

 941-5               [(4)  a statement that the notice is being given as

 941-6   required by this subsection].

 941-7         (b)  The department [person] shall send a copy of the permit

 941-8   and the bond or letter of credit required for the permit with the

 941-9   notice required by this section.

941-10         [(c)  If the permit holder is a corporation or partnership,

941-11   the notice under this section may be given by an officer of the

941-12   corporation or by a general partner of the partnership.]

941-13         (d)  Section 623.014, Transportation Code, is amended to

941-14   conform to Section 6, Chapter 624 (H.B. No. 1547), Acts of the 74th

941-15   Legislature, Regular Session, 1995, to read as follows:

941-16         Sec. 623.014.  TRANSFER OF PERMIT.  (a)  A [The department

941-17   without charge may transfer a] permit issued under Section 623.011

941-18   may not be transferred [to a vehicle for which an original permit

941-19   may be issued under that section if:]

941-20               [(1)  the vehicle for which the permit was issued has

941-21   been sold;]

941-22               [(2)  the lease of the vehicle for which the permit was

941-23   issued has terminated; or]

941-24               [(3)  the vehicle for which the permit was issued is to

 942-1   be out of service because of a mechanical failure for longer than

 942-2   30 days].

 942-3         (b)  If the vehicle for which a permit was issued is

 942-4   destroyed or permanently inoperable, a person may apply to the

 942-5   department for a credit for the remainder of the permit period.

 942-6   [The transfer of a permit does not extend the period for which the

 942-7   permit is valid.]

 942-8         (c)  The department shall issue the prorated credit if the

 942-9   person:

942-10               (1)  pays the fee adopted by the department; and

942-11               (2)  provides the department with:

942-12                     (A)  the original permit; or

942-13                     (B)  if the original permit does not exist,

942-14   written evidence in a form approved by the department that the

942-15   vehicle has been destroyed or is permanently inoperable  [A person

942-16   must apply for a transfer by filing with the department an

942-17   affidavit that states the reason for the transfer and a description

942-18   of the vehicle to which the permit is to be transferred, including

942-19   its vehicle identification number].

942-20         (d)  The fee adopted by the department under Subsection

942-21   (c)(1) may not exceed the cost of issuing the credit.

942-22         (e)  A credit issued under Subsection (c) may be used only

942-23   toward the payment of a permit fee under this subchapter.

942-24         SECTION 30.139.  (a)  Subchapter B, Chapter 623,

 943-1   Transportation Code, is amended to conform to Section 28, Chapter

 943-2   705 (S.B. No. 3), Acts of the 74th Legislature, Regular Session,

 943-3   1995, by adding Section 623.0155 to read as follows:

 943-4         Sec. 623.0155.  INDEMNIFICATION FROM MOTOR CARRIER

 943-5   PROHIBITED.  (a)  A person may not require indemnification from a

 943-6   motor carrier as a condition to:

 943-7               (1)  the transportation of property for compensation or

 943-8   hire by the carrier; or

 943-9               (2)  entrance on property by the carrier for the

943-10   purpose of loading, unloading, or transporting property for

943-11   compensation or hire.

943-12         (b)  Subsection (a)(2) does not apply to a claim arising from

943-13   damage or loss from a wrongful or negligent act or omission of the

943-14   carrier.

943-15         (b)  Section 28, Chapter 705 (S.B. No. 3), Acts of the 74th

943-16   Legislature, Regular Session, 1995, is repealed.

943-17         (c)  Subchapter B, Chapter 623, Transportation Code, is

943-18   amended to conform to Section 7, Chapter 624 (H.B. No. 1547), Acts

943-19   of the 74th Legislature, Regular Session, 1995, by adding Section

943-20   623.019 to read as follows:

943-21         Sec. 623.019.  VIOLATIONS OF SUBCHAPTER; OFFENSES.  (a)  A

943-22   person who holds a permit issued under Section 623.011 commits an

943-23   offense if:

943-24               (1)  the person:

 944-1                     (A)  operates or directs the operation of the

 944-2   vehicle for which the permit was issued on a public highway or

 944-3   road; and

 944-4                     (B)  is criminally negligent with regard to the

 944-5   operation of the vehicle at a weight heavier than the weight limit

 944-6   authorized by Section 623.011; or

 944-7               (2)  the person operates or directs the operation of

 944-8   the vehicle for which the permit was issued:

 944-9                     (A)  in a county not designated in the person's

944-10   application under Section 623.0111; and

944-11                     (B)  at a weight heavier than a weight limit

944-12   established under:

944-13                           (i)  Subchapter E, Chapter 251;

944-14                           (ii)  Chapter 621 or 622; or

944-15                           (iii)  this chapter.

944-16         (b)  Except as provided by Subsections (c) and (d), an

944-17   offense under Subsection (a) is a misdemeanor punishable by a fine

944-18   of not less than $100 or more than $150.

944-19         (c)  An offense under Subsection (a) is a misdemeanor and,

944-20   except as provided by Subsection (d), is punishable by a fine of:

944-21               (1)  not less than $300 or more than $500 if the

944-22   offense involves a vehicle having a gross weight that is heavier

944-23   than 5,000 but not heavier than 10,000 pounds over the vehicle's

944-24   allowable gross weight; or

 945-1               (2)  not less than $500 or more than $1,000 if the

 945-2   offense involves a vehicle having a gross weight that is at least

 945-3   10,000 pounds heavier than the vehicle's allowable gross weight.

 945-4         (d)  On conviction before the first anniversary of the date

 945-5   of a previous conviction under Subsection (a), an offense is

 945-6   punishable by a fine in an amount that is twice the amount

 945-7   specified by Subsection (c).

 945-8         (e)  A governmental entity collecting a fine under Subsection

 945-9   (c) shall send an amount equal to 50 percent of the fine to the

945-10   comptroller.

945-11         (f)  A justice of the peace has jurisdiction of any offense

945-12   under this section.  A municipal court has jurisdiction of an

945-13   offense under this section in which the fine does not exceed $500.

945-14         (g)  A justice or judge who renders a conviction under this

945-15   section shall report the conviction to the Department of Public

945-16   Safety.  The Department of Public Safety shall keep a record of

945-17   each conviction reported under this subsection.

945-18         (d)  Sections 1, 5, and 7, Chapter 624 (H.B. No. 1547), Acts

945-19   of the 74th Legislature, Regular Session, 1995, are repealed.

945-20         SECTION 30.140.  Section 623.051(e), Transportation Code, is

945-21   repealed to conform to the repeal of the law from which it was

945-22   derived by Section 31(a)(14), Chapter 705 (S.B.  No. 3), Acts of

945-23   the 74th Legislature, Regular Session, 1995.

945-24         SECTION 30.141.  (a)  Section 623.075(c), Transportation

 946-1   Code, is amended to conform to Section 23, Chapter 705 (S.B. No.

 946-2   3), Acts of the 74th Legislature, Regular Session, 1995, to read as

 946-3   follows:

 946-4         (c)  This section applies to the delivery of farm equipment

 946-5   to a farm equipment dealer.  This section does not apply to:

 946-6               (1)  the driving or transporting of farm equipment that

 946-7   is being used for an agricultural purpose and is driven or

 946-8   transported by or under the authority of the owner of the

 946-9   equipment; or

946-10               (2)  a vehicle or equipment operated by a motor carrier

946-11   registered under Chapter 643 or Chapter 645.

946-12         (b)  Section 23, Chapter 705 (S.B. No. 3), Acts of the 74th

946-13   Legislature, Regular Session, 1995, is repealed.

946-14         SECTION 30.142.  (a)  Section 623.093, Transportation Code,

946-15   is amended to conform to Section 16, Chapter 978 (H.B. No. 785),

946-16   Acts of the 74th Legislature, Regular Session, 1995, by amending

946-17   Subsection (a) and adding Subsection (d) to read as follows:

946-18         (a)  The application for a permit and the permit must be in

946-19   the form prescribed by the department.  The permit must show:

946-20               (1)  the length, width, and height of the manufactured

946-21   house and the towing vehicle in combination; [and]

946-22               (2)  the complete identification or serial number, the

946-23   Department of Housing and Urban Development label number, or the

946-24   state seal number of the house;

 947-1               (3)  the name of the owner of the house;

 947-2               (4)  the location from which the house is being

 947-3   transported;

 947-4               (5)  the location to which the house is being

 947-5   transported; and

 947-6               (6)  the route for the transportation of the

 947-7   [manufactured] house.

 947-8         (d)  Each quarter the department shall send a copy of each

 947-9   permit for the transportation of a manufactured house that begins

947-10   or ends in this state, or provide the essential information in the

947-11   permit, to the chief appraiser of the appraisal district in each

947-12   county in which the transportation begins or ends.

947-13         (b)  Section 16, Chapter 978 (H.B. No. 785), Acts of the 74th

947-14   Legislature, Regular Session, 1995, is repealed.

947-15         SECTION 30.143.  (a)  Section 623.094, Transportation Code,

947-16   is amended to conform to Section 17, Chapter 978 (H.B. No. 785),

947-17   Acts of the 74th Legislature, Regular Session, 1995, to read as

947-18   follows:

947-19         Sec. 623.094.  MANUFACTURER'S, INSTALLER'S, RETAILER'S, AND

947-20   TRANSPORTER'S PERMIT.  (a)  Except as authorized by Section

947-21   623.095, the department may issue a permit only to a [person]:

947-22               (1)  person registered as a manufacturer, installer, or

947-23   retailer with the Texas Department of Housing [commissioner of

947-24   licensing] and Community Affairs [regulation]; or

 948-1               (2)  motor carrier registered with the department

 948-2   [certificated for the transportation of a manufactured house by the

 948-3   Railroad Commission of Texas or the Interstate Commerce

 948-4   Commission].

 948-5         (b)  The registration number or the motor carrier

 948-6   [certificate] number of the person to whom the permit is issued

 948-7   shall be affixed to the rear of the manufactured house during

 948-8   transportation and have letters and numbers that are at least eight

 948-9   inches high.

948-10         (b)  Section 623.095, Transportation Code, is amended to

948-11   conform to Section 17, Chapter 978 (H.B. No. 785), and Section 22,

948-12   Chapter 705 (S.B. No. 3), Acts of the 74th Legislature, Regular

948-13   Session, 1995, to read as follows:

948-14         Sec. 623.095.  SINGLE-TRIP PERMIT.  (a)  The department may

948-15   issue a single-trip permit for the transportation of a manufactured

948-16   house to:

948-17               (1)  the owner of a manufactured house if:

948-18                     (A)  the title to the manufactured house and the

948-19   title to the towing vehicle show that the owner of the manufactured

948-20   house and the owner of the towing vehicle are the same person; or

948-21                     (B)  a lease [filed under Chapter 641] shows that

948-22   the owner of the manufactured house and the lessee of the towing

948-23   vehicle are the same person; [or]

948-24               (2)  an installer registered with the Texas Department

 949-1   of Housing [Licensing] and Community Affairs [Regulation] for the

 949-2   transportation of a manufactured house; or

 949-3               (3)  a motor carrier registered under Chapter 643 [if

 949-4   that transportation is excluded from regulation under Chapter 314,

 949-5   Acts of the 41st Legislature, Regular Session, 1929 (Article 911b,

 949-6   Vernon's Texas Civil Statutes)].

 949-7         (b)  An owner, motor carrier, or installer must have proof of

 949-8   the insurance coverage required by Section 623.103.

 949-9         (c)  Section 17, Chapter 978 (H.B. No. 785), and Section 22,

949-10   Chapter 705 (S.B. No. 3), Acts of the 74th Legislature, Regular

949-11   Session, 1995, are repealed.

949-12         SECTION 30.144.  (a)  Section 623.096, Transportation Code,

949-13   is amended to conform to Section 18, Chapter 978 (H.B. No. 785),

949-14   Acts of the 74th Legislature, 1995, to read as follows:

949-15         Sec. 623.096.  PERMIT FEE.  (a)  The department shall collect

949-16   a fee of $20 [$15] for each permit issued under this subchapter.

949-17   Of each fee, 30 cents shall be deposited to the credit of the state

949-18   highway fund.

949-19         (b)  On application, the department may [shall] issue a

949-20   permit book [or packet containing 20 permits if the $15 fee for

949-21   each permit in the book or packet is received with the

949-22   application].

949-23         (c)  [A permit in a book or packet may be used for the

949-24   movement of a manufactured house regardless of the manufactured

 950-1   house's width, length, or height.]  The route approval and any

 950-2   required validation number for a [the] permit may be secured from

 950-3   the issuing office by telephone communication.

 950-4         (d)  In lieu of issuing a permit book [or packet], the

 950-5   department may establish an escrow account for the payment of

 950-6   permit fees.

 950-7         (b)  Section 18, Chapter 978 (H.B. No. 785), Acts of the 74th

 950-8   Legislature, Regular Session, 1995, is repealed.

 950-9         SECTION 30.145.  (a)  Section 623.098(a), Transportation

950-10   Code, is amended to conform to Section 19, Chapter 978 (H.B. No.

950-11   785), Acts of the 74th Legislature, Regular Session, 1995, to read

950-12   as follows:

950-13         (a)  A manufactured house that is wider than 12 feet must

950-14   have one rotating amber beacon of not less than eight inches

950-15   mounted at the rear of the manufactured house on the roof or one

950-16   flashing amber light mounted at each rear corner of the

950-17   manufactured house approximately six feet above ground level.  In

950-18   addition, the towing vehicle must have one rotating amber beacon of

950-19   not less than eight inches mounted on top of the cab.

950-20         (b)  Section 19, Chapter 978 (H.B. No. 785), Acts of the 74th

950-21   Legislature, Regular Session, 1995, is repealed.

950-22         SECTION 30.146.  (a)  Section 623.121, Transportation Code,

950-23   is amended to conform to Section 1, Chapter 832 (H.B. No. 2754),

950-24   Acts of the 74th Legislature, Regular Session, 1995, by adding

 951-1   Subsection (c) to read as follows:

 951-2         (c)  In this section, "portable building unit" means the

 951-3   prefabricated structural and other components incorporated and

 951-4   delivered by the manufacturer as a complete inspected unit with a

 951-5   distinct serial number.  The term includes a fully assembled

 951-6   configuration, a partially assembled configuration, or a kit or

 951-7   unassembled configuration, when loaded for transport.

 951-8         (b)  Section 1, Chapter 832 (H.B. No. 2754), Acts of the 74th

 951-9   Legislature, Regular Session, 1995, is repealed.

951-10         SECTION 30.147.  Sections 623.150 and 623.200, Transportation

951-11   Code, are amended to conform to the transfer of motor carrier

951-12   registration responsibilities from the Railroad Commission of Texas

951-13   to the Texas Department of Transportation by Chapter 705 (S.B. No.

951-14   3), Acts of the 74th Legislature, Regular Session, 1995, to read as

951-15   follows:

951-16         Sec. 623.150.  Nonapplicability of Subchapter.  This

951-17   subchapter does not apply to a person issued a registration

951-18   certificate under Chapter 643 [authorized by the Railroad

951-19   Commission of Texas to operate as a carrier for compensation or

951-20   hire over the public highways of this state], even if not all the

951-21   operations of the person are performed under that [the]

951-22   certificate[, permit, or authority granted by that commission].

951-23         Sec. 623.200.  Nonapplicability of Subchapter.  This

951-24   subchapter does not apply to a person issued a registration

 952-1   certificate under Chapter 643 [authorized by the Railroad

 952-2   Commission of Texas to operate as a carrier for compensation or

 952-3   hire over the public highways of this state], even if not all the

 952-4   operations of the person are performed under that [the]

 952-5   certificate[, permit, or authority granted by that commission for

 952-6   that purpose].

 952-7         SECTION 30.148.  Chapter 641, Transportation Code, is

 952-8   repealed to conform to the repeal of the law from which it was

 952-9   derived by Section 31(a)(11), Chapter 705 (S.B. No. 3), Acts of the

952-10   74th Legislature, Regular Session, 1995.

952-11         SECTION 30.149.  (a)  Section 642.003, Transportation Code,

952-12   is amended to conform to Sections 24 and 31(a)(11), Chapter 705

952-13   (S.B. No. 3), Acts of the 74th Legislature, Regular Session, 1995,

952-14   to read as follows:

952-15         Sec. 642.003.  NONAPPLICABILITY.  Section 642.002 does not

952-16   apply to[:]

952-17               [(1)]  a commercial motor vehicle, road-tractor, or

952-18   truck-tractor that is:

952-19               (1) [(A)]  registered under Section 502.163;

952-20                     [(B)  operated under a lease, memorandum, or

952-21   agreement that complies with Chapter 641;]

952-22                     [(C)  operated under the control, supervision, or

952-23   authority of a motor carrier subject to Section 18, Chapter 314,

952-24   Acts of the 41st Legislature, Regular Session, 1929 (Article 911b,

 953-1   Vernon's Texas Civil Statutes) or exempt under Section 18A, Chapter

 953-2   314, Acts of the 41st Legislature, Regular Session, 1929 (Article

 953-3   911b, Vernon's Texas Civil Statutes);]

 953-4               (2) [(D)]  required to be registered under Section

 953-5   113.131, Natural Resources Code;

 953-6               (3) [(E)]  operated in private carriage that is subject

 953-7   to Title 49, Code of Federal Regulations, Part 397.21;

 953-8               (4) [(F)]  operated under the direct control,

 953-9   supervision, or authority of a public utility, as recognized by the

953-10   legislature, that is otherwise visibly marked; or

953-11               (5) [(G)]  transporting timber products in their

953-12   natural state from first point of production or harvest to first

953-13   point of processing[; or]

953-14               [(2)  a commercial motor vehicle operated under the

953-15   control, supervision, or authority of a motor bus company that has

953-16   been issued a certificate under Chapter 270, Acts of the 40th

953-17   Legislature, Regular Session, 1927 (Article 911a, Vernon's Texas

953-18   Civil Statutes), by the Railroad Commission of Texas].

953-19         (b)  Section 24, Chapter 705 (S.B. No. 3), Acts of the 74th

953-20   Legislature, Regular Session, 1995, is repealed.

953-21         SECTION 30.150.  (a)  Subtitle F, Title 7, Transportation

953-22   Code, is amended to codify Article 6675c, Revised Statutes, as

953-23   added by Section 1, Chapter 705 (S.B. No. 3), Acts of the 74th

953-24   Legislature, Regular Session, 1995, by adding Chapter 643 to read

 954-1   as follows:

 954-2                CHAPTER 643.  MOTOR CARRIER REGISTRATION

 954-3                    SUBCHAPTER A.  GENERAL PROVISIONS

 954-4         Sec. 643.001.  DEFINITIONS.  In this chapter:

 954-5               (1)  "Department" means the Texas Department of

 954-6   Transportation.

 954-7               (2)  "Director" means:

 954-8                     (A)  the executive director of the department; or

 954-9                     (B)  an employee of the department who:

954-10                           (i)  is a division or special office

954-11   director or holds a higher rank; and

954-12                           (ii)  is designated by the director.

954-13               (3)  "Hazardous material" has the meaning assigned by

954-14   49 U.S.C. Section 5102.

954-15               (4)  "Household goods" has the meaning assigned by 49

954-16   U.S.C. Section 10102.

954-17               (5)  "Insurer" means a person, including a surety,

954-18   authorized in this state to write lines of insurance coverage

954-19   required by this chapter.

954-20               (6)  "Motor carrier" means an individual, association,

954-21   corporation, or other legal entity that controls, operates, or

954-22   directs the operation of one or more vehicles that transport

954-23   persons or cargo over a road or highway in this state.

954-24               (7)  "Tow truck" means a motor vehicle, including a

 955-1   wrecker, equipped with a mechanical device used to tow, winch, or

 955-2   otherwise move another motor vehicle.

 955-3               (8)  "Vehicle requiring registration" means a vehicle

 955-4   described by Section 643.051.

 955-5         Sec. 643.002.  EXEMPTIONS.  This chapter does not apply to:

 955-6               (1)  a motor vehicle registered under the single state

 955-7   registration system established under 49 U.S.C. Section 11506(c)

 955-8   when operating exclusively in interstate or international commerce;

 955-9               (2)  a motor vehicle registered as a cotton vehicle

955-10   under Section 502.277; or

955-11               (3)  a motor vehicle the department by rule exempts

955-12   because the vehicle is subject to comparable registration and a

955-13   comparable safety program administered by another agency.

955-14         Sec. 643.003.  RULES.  The department may adopt rules to

955-15   administer this chapter.

955-16         Sec. 643.004.  PAYMENT OF FEES.  The department may adopt

955-17   rules on the method of payment of a fee under this chapter,

955-18   including:

955-19               (1)  authorizing the use of electronic funds transfer

955-20   or a credit card issued by a financial institution chartered by a

955-21   state or the United States or by a nationally recognized credit

955-22   organization approved by the department; and

955-23               (2)  requiring the payment of a discount or service

955-24   charge for a credit card payment in addition to the fee.

 956-1            (Sections 643.005-643.050 reserved for expansion

 956-2                       SUBCHAPTER B.  REGISTRATION

 956-3         Sec. 643.051.  REGISTRATION REQUIRED.  A motor carrier may

 956-4   not operate a commercial motor vehicle, as defined by Section

 956-5   548.001, or a tow truck on a road or highway of this state unless

 956-6   the carrier registers with the department under this subchapter.

 956-7         Sec. 643.052.  APPLICATION.  To register under this

 956-8   subchapter a motor carrier must submit to the department an

 956-9   application on a form prescribed by the department.  The

956-10   application must include:

956-11               (1)  the name of the owner and the principal business

956-12   address of the motor carrier;

956-13               (2)  the name and address of the legal agent for

956-14   service of process on the carrier in this state, if different;

956-15               (3)  a description of each vehicle requiring

956-16   registration the carrier proposes to operate, including the motor

956-17   vehicle identification number, make, and unit number;

956-18               (4)  a statement as to whether the carrier proposes to

956-19   transport household goods or a hazardous material;

956-20               (5)  a declaration that the applicant has knowledge of

956-21   all laws and rules relating to motor carrier safety, including this

956-22   chapter, Chapter 644, and Subtitle C; and

956-23               (6)  any other information the department by rule

956-24   determines is necessary for the safe operation of a motor carrier

 957-1   under this chapter.

 957-2         Sec. 643.053.  FILING OF APPLICATION.  An application under

 957-3   Section 643.052 must be filed with the department and accompanied

 957-4   by:

 957-5               (1)  an application fee of $100 plus a $10 fee for each

 957-6   vehicle requiring registration the motor carrier proposes to

 957-7   operate;

 957-8               (2)  evidence of insurance or financial responsibility

 957-9   as required by Section 643.103(a); and

957-10               (3)  any insurance filing fee required under Section

957-11   643.103(c).

957-12         Sec. 643.054.  DEPARTMENT APPROVAL; ISSUANCE OF CERTIFICATE.

957-13   (a)  The department shall register a motor carrier under this

957-14   subchapter if the carrier complies with Sections 643.052 and

957-15   643.053.  The department may deny a registration if the applicant

957-16   has had a registration revoked under Section 643.252.

957-17         (b)  The department shall issue a certificate containing a

957-18   single registration number to a motor carrier, regardless of the

957-19   number of vehicles requiring registration the carrier operates.

957-20         Sec. 643.055.  CONDITIONAL ACCEPTANCE.  (a)  The department

957-21   may conditionally accept an incomplete application for registration

957-22   under this subchapter if the motor carrier complies with Section

957-23   643.053.

957-24         (b)  The department shall notify a motor carrier that an

 958-1   application is incomplete and inform the carrier of the information

 958-2   required for completion.  If the motor carrier fails to provide the

 958-3   information before the 46th day after the date the department

 958-4   provides the notice, the application is considered withdrawn, and

 958-5   the department shall retain each fee required by Section

 958-6   643.053(1).

 958-7         Sec. 643.056.  SUPPLEMENTAL REGISTRATION.  (a)  A motor

 958-8   carrier required to register under this subchapter shall supplement

 958-9   the carrier's application for registration before:

958-10               (1)  the carrier transports a hazardous material or

958-11   household goods if the carrier has not provided notice of the

958-12   transportation to the department in the carrier's initial or a

958-13   supplemental application for registration;

958-14               (2)  the carrier operates a vehicle requiring

958-15   registration that is not described on the carrier's initial or a

958-16   supplemental application for registration; or

958-17               (3)  the carrier changes the carrier's principal

958-18   business address, legal agent, ownership, or name.

958-19         (b)  The department shall prescribe the form of a

958-20   supplemental application for registration under Subsection (a).

958-21         Sec. 643.057.  ADDITIONAL VEHICLES AND FEES.  (a)  A motor

958-22   carrier may not operate an additional vehicle requiring

958-23   registration unless the carrier pays a registration fee of $10 for

958-24   each additional vehicle and shows the department evidence of

 959-1   insurance or financial responsibility for the vehicle in an amount

 959-2   at least equal to the amount set by the department under Section

 959-3   643.101.

 959-4         (b)  A motor carrier is not required to pay the $10

 959-5   registration fee for a vehicle that replaces a vehicle for which

 959-6   the fee has been paid.

 959-7         (c)  A registered motor carrier may not transport household

 959-8   goods or a hazardous material unless the carrier shows the

 959-9   department evidence of insurance or financial responsibility in an

959-10   amount at least equal to the amount set by the department under

959-11   Section 643.101 for a vehicle carrying household goods or a

959-12   hazardous material.

959-13         (d)  The department may not collect more than $10 in

959-14   equipment registration fees for a vehicle registered under both

959-15   this subchapter and Chapter 645.

959-16         Sec. 643.058.  RENEWAL OF REGISTRATION.  (a)  A registration

959-17   issued under this subchapter is valid for one year.  The department

959-18   may adopt a system under which registrations expire at different

959-19   times during the year.

959-20         (b)  A motor carrier may renew a registration under this

959-21   subchapter by:

959-22               (1)  supplementing the application with any new

959-23   information required under Section 643.056;

959-24               (2)  paying a $10 fee for each vehicle requiring

 960-1   registration the carrier operates; and

 960-2               (3)  providing the department evidence of continuing

 960-3   insurance or financial responsibility in an amount at least equal

 960-4   to the amount set by the department under Section 643.101.

 960-5         Sec. 643.059.  CAB CARDS.  (a)  The department shall issue a

 960-6   cab card for each vehicle requiring registration.  A cab card must:

 960-7               (1)  show the registration number of the certificate

 960-8   issued under Section 643.054(b);

 960-9               (2)  show the vehicle unit number;

960-10               (3)  show the vehicle identification number; and

960-11               (4)  contain a statement that the vehicle is registered

960-12   to operate under this subchapter.

960-13         (b)  The department shall issue cab cards annually at the

960-14   time a motor carrier pays a registration fee under this subchapter.

960-15   The department may charge a fee of $1 for each cab card.

960-16         (c)  A motor carrier required to register under this

960-17   subchapter must keep the cab card in the cab of each vehicle

960-18   requiring registration the carrier operates.

960-19         (d)  The department may order a motor carrier to surrender a

960-20   cab card if the carrier's registration is suspended or revoked

960-21   under Section 643.252.

960-22         (e)  If the department determines that the cab card system

960-23   described by Subsections (a)-(c) is not an efficient means of

960-24   enforcing this subchapter, the department by rule may adopt an

 961-1   alternative method that is accessible by law enforcement personnel

 961-2   in the field and provides for the enforcement of the annual

 961-3   registration requirements of this subchapter.

 961-4         Sec. 643.060.  TEMPORARY REGISTRATION OF INTERNATIONAL MOTOR

 961-5   CARRIER.  The department by rule may provide for the temporary

 961-6   registration of an international motor carrier that provides

 961-7   evidence of insurance as required for a domestic motor carrier.

 961-8   The department may charge a fee for a temporary registration in an

 961-9   amount not to exceed the cost of administering this section.

961-10            (Sections 643.061-643.100 reserved for expansion

961-11                        SUBCHAPTER C.  INSURANCE

961-12         Sec. 643.101.  AMOUNT REQUIRED.  (a)  A motor carrier

961-13   required to register under Subchapter B shall maintain liability

961-14   insurance in an amount set by the department for each vehicle

961-15   requiring registration the carrier operates.

961-16         (b)  The department by rule may set the amount of liability

961-17   insurance required at an amount that does not exceed the amount

961-18   required for a motor carrier under a federal regulation adopted

961-19   under 49 U.S.C. Section 10927(a)(1).  In setting the amount the

961-20   department shall consider:

961-21               (1)  the class and size of the vehicle; and

961-22               (2)  the persons or cargo being transported.

961-23         (c)  A motor carrier required to register under Subchapter B

961-24   that transports household goods shall maintain cargo insurance in

 962-1   the amount required for a motor carrier transporting household

 962-2   goods under federal law.

 962-3         Sec. 643.102.  SELF-INSURANCE.  A motor carrier may comply

 962-4   with Section 643.101 through self-insurance if the carrier

 962-5   demonstrates to the department that it can satisfy its obligations

 962-6   for liability for bodily injury or property damage.  In the

 962-7   interest of public safety, the department by rule shall provide for

 962-8   a responsible system of self-insurance for a motor carrier.

 962-9         Sec. 643.103.  FILING; EVIDENCE OF INSURANCE; FEES.  (a)  A

962-10   motor carrier that is required to register under Subchapter B must

962-11   file with the department evidence of insurance in the amounts

962-12   required by Section 643.101, or evidence of financial

962-13   responsibility as described by Section 643.102, in a form

962-14   prescribed by the department.  The form must be filed:

962-15               (1)  at the time of the initial registration;

962-16               (2)  at the time of a subsequent registration if the

962-17   motor carrier was required to be continuously registered under

962-18   Subchapter B and the carrier failed to maintain continuous

962-19   registration;

962-20               (3)  at the time a motor carrier changes insurers; and

962-21               (4)  at the time a motor carrier changes ownership, as

962-22   determined by rules adopted by the department.

962-23         (b)  A motor carrier shall keep evidence of insurance in a

962-24   form approved by the department in the cab of each vehicle

 963-1   requiring registration the carrier operates.

 963-2         (c)  The department may charge a fee of $100 for a filing

 963-3   under Subsection (a).

 963-4         Sec. 643.104.  TERMINATION OF INSURANCE COVERAGE.  (a)  An

 963-5   insurer may not terminate coverage provided to a motor carrier

 963-6   registered under Subchapter B unless the insurer provides the

 963-7   department with notice at least 30 days before the date the

 963-8   termination takes effect.

 963-9         (b)  Notice under Subsection (a) must be in a form approved

963-10   by the department and the Texas Department of Insurance.  The

963-11   department shall notify the Department of Public Safety of each

963-12   notice filed under Subsection (a).

963-13         Sec. 643.105.  INSOLVENCY OF INSURER.  If an insurer for a

963-14   motor carrier becomes insolvent, is placed in receivership, or has

963-15   its certificate of authority suspended or revoked and if the

963-16   carrier no longer has insurance coverage as required by this

963-17   subchapter, the carrier shall file with the department, not later

963-18   than the 10th day after the date the coverage lapses:

963-19               (1)  evidence of insurance as required by Section

963-20   643.103; and

963-21               (2)  an affidavit that:

963-22                     (A)  indicates that an accident from which the

963-23   carrier may incur liability did not occur while the coverage was

963-24   not in effect; or

 964-1                     (B)  contains a plan acceptable to the department

 964-2   indicating how the carrier will satisfy claims of liability against

 964-3   the carrier for an accident that occurred while the coverage was

 964-4   not in effect.

 964-5         Sec. 643.106.  INSURANCE FOR EMPLOYEES.  (a)  Notwithstanding

 964-6   any contrary provision of any law or regulation, a motor carrier

 964-7   required to register under Subchapter B shall protect its employees

 964-8   by obtaining:

 964-9               (1)  workers' compensation insurance coverage as

964-10   defined under Subtitle A, Title 5, Labor Code; or

964-11               (2)  accidental insurance coverage approved by the

964-12   department from a reliable insurance company authorized to write

964-13   accidental insurance policies in this state.

964-14         (b)  The department shall determine the amount of insurance

964-15   coverage under Subsection (a)(2).  The amount may not be less than:

964-16               (1)  $300,000 for medical expenses for at least 104

964-17   weeks;

964-18               (2)  $100,000 for accidental death and dismemberment;

964-19               (3)  70 percent of an employee's pre-injury income for

964-20   at least 104 weeks when compensating for loss of income; and

964-21               (4)  $500 for the maximum weekly benefit.

964-22            (Sections 643.107-643.150 reserved for expansion

964-23                   SUBCHAPTER D.  ECONOMIC REGULATION

964-24         Sec. 643.151.  PROHIBITION.  Except as provided by this

 965-1   subchapter, the department may not regulate the prices, routes, or

 965-2   services provided by a motor carrier.

 965-3         Sec. 643.152.  VOLUNTARY STANDARDS.  The department may

 965-4   establish voluntary standards for uniform cargo liability, uniform

 965-5   bills of lading or receipts for cargo being transported, and

 965-6   uniform cargo credit.  A standard adopted under this section must

 965-7   be consistent with Subtitle IV, Title 49, United States Code, or a

 965-8   regulation adopted under that law.

 965-9         Sec. 643.153.  MOTOR CARRIER TRANSPORTING HOUSEHOLD GOODS.

965-10   (a)  The department shall adopt rules to protect a consumer using

965-11   the service of a motor carrier who is required to register under

965-12   Subchapter B and transports household goods.  The rules must be at

965-13   least as stringent as the corresponding provisions of 49 C.F.R.

965-14   Part 1056.  The department may adopt rules under this subsection

965-15   that are more stringent than the corresponding federal provisions.

965-16         (b)  A motor carrier that transports household goods shall

965-17   list a place of business with a street address in this state and

965-18   the carrier's registration number issued under Subchapter B in any

965-19   printed advertising published in this state.

965-20         (c)  The department may adopt rules necessary to ensure that

965-21   a customer of a motor carrier transporting household goods is

965-22   protected from deceptive or unfair practices and unreasonably

965-23   hazardous activities.  The rules may:

965-24               (1)  establish a formal process for resolving a dispute

 966-1   over a fee or damage apart from the method of mediation in Section

 966-2   643.155;

 966-3               (2)  require a motor carrier to indicate clearly to a

 966-4   customer whether an estimate is binding or nonbinding and disclose

 966-5   the maximum price a customer could be required to pay; and

 966-6               (3)  create a centralized process for making complaints

 966-7   about a motor carrier that also allows a customer to inquire about

 966-8   a carrier's complaint record.

 966-9         (d)  A motor carrier that is required to register under

966-10   Subchapter B and that transports household goods shall file a

966-11   tariff with the department that establishes maximum charges for

966-12   transportation between two or more municipalities.  A motor carrier

966-13   may comply with this requirement by filing a copy of the carrier's

966-14   tariff governing interstate transportation services on a highway

966-15   between two or more municipalities.  The department shall make

966-16   tariffs filed under this subsection available for public inspection

966-17   at the department.

966-18         (e)  The department may not adopt rules regulating the rates,

966-19   except as provided by this section, or routes of a motor carrier

966-20   transporting household goods.

966-21         (f)  The unauthorized practice of the insurance business

966-22   under Article 1.14-1, Insurance Code, does not include the offer of

966-23   insurance by a motor carrier transporting household goods for the

966-24   full value of a customer's property if the offer is authorized by a

 967-1   rule adopted under Subsection (c).

 967-2         (g)  A motor carrier may designate an association or an agent

 967-3   of an association as its collective maximum ratemaking association

 967-4   for the purpose of the filing of a tariff under Subsection (d).

 967-5         Sec. 643.154.  ANTITRUST EXEMPTION.  (a)  Chapter 15,

 967-6   Business & Commerce Code, does not apply to a discussion or

 967-7   agreement between a motor carrier that is required to register

 967-8   under Subchapter B and that transports household goods and an agent

 967-9   of the carrier involving:

967-10               (1)  the following matters if they occur under the

967-11   authority of the principal carrier:

967-12                     (A)  a rate for the transportation of household

967-13   goods;

967-14                     (B)  an access, terminal, storage, or other

967-15   charge incidental to the transportation of household goods; or

967-16                     (C)  an allowance relating to the transportation

967-17   of household goods; or

967-18               (2)  ownership of the carrier by the agent or

967-19   membership on the board of directors of the carrier by the agent.

967-20         (b)  An agent under Subsection (a) may itself be a motor

967-21   carrier required to register under Subchapter B.

967-22         (c)  The department by rule may exempt a motor carrier

967-23   required to register under Subchapter B from Chapter 15, Business &

967-24   Commerce Code, for an activity relating to the establishment of a

 968-1   joint line rate, route, classification, or mileage guide.

 968-2         (d)  A motor carrier that is required to register under

 968-3   Subchapter B and that transports household goods, or an agent of

 968-4   the carrier, may enter into a collective ratemaking agreement with

 968-5   another motor carrier of household goods or an agent of that

 968-6   carrier concerning the establishment and filing of maximum rates,

 968-7   classifications, rules, or procedures.  The agreement must be

 968-8   submitted to the department for approval.

 968-9         (e)  The department shall approve an agreement submitted

968-10   under Subsection (d) if the agreement provides that each meeting of

968-11   parties to the agreement is open to the public and that notice of

968-12   each meeting must be given to customers who are multiple users of

968-13   the services of a motor carrier that is a party to the agreement.

968-14   The department may withhold approval of the agreement if it

968-15   determines, after notice and hearing, that the agreement fails to

968-16   comply with this subsection.

968-17         (f)  Unless disapproved by the department, an agreement made

968-18   under Subsection (d) is valid, and Chapter 15, Business & Commerce

968-19   Code, does not apply to a motor carrier that is a party to the

968-20   agreement.

968-21         Sec. 643.155.  MEDIATION REQUIRED.  (a)  A collective

968-22   association of motor carriers transporting household goods or

968-23   agents of the carriers that are parties to a collective agreement

968-24   approved under Section 643.154(e) shall provide for a method of

 969-1   mediation to resolve customer disputes over fees, damages, and

 969-2   services.  The association, the carriers, or their agents shall pay

 969-3   for the cost of the mediation.

 969-4         (b)  A party to a collective agreement approved under Section

 969-5   643.154(e) shall participate in customer complaint resolution,

 969-6   including participation in the mediation process and advertisement

 969-7   of the availability of mediation in each contract or estimate

 969-8   proposal.

 969-9         (c)  A complaint mediation that is not resolved to the mutual

969-10   agreement of all parties shall be reported to the department.

969-11         (d)  The department shall adopt rules that require parties to

969-12   a collective agreement to provide notice to customers of their

969-13   right to seek resolution of a complaint directly from the

969-14   department under Section 643.153(c).

969-15            (Sections 643.156-643.200 reserved for expansion

969-16                        SUBCHAPTER E.  TOW TRUCKS

969-17         Sec. 643.201.  TOW TRUCK REGULATION BY MUNICIPALITY.  (a)  In

969-18   addition to the registration requirements of Subchapter B, a

969-19   municipality may regulate the operation of a tow truck to the

969-20   extent allowed by federal law.

969-21         (b)  A municipality may not require the registration of a tow

969-22   truck that performs consent tows in the municipality unless the

969-23   owner of the tow truck has a place of business in the territory of

969-24   the municipality.

 970-1         (c)  A municipality may require the registration of a tow

 970-2   truck that performs a nonconsent tow in the municipality,

 970-3   regardless of whether the owner of the tow truck has a place of

 970-4   business in the territory of the municipality.

 970-5         (d)  A municipality may not require a person who holds a

 970-6   driver's license or commercial driver's license to obtain a license

 970-7   or permit for operating a tow truck unless the person performs

 970-8   nonconsent tows in the territory of the municipality.  A fee

 970-9   charged for a license or permit may not exceed $15.

970-10         (e)  In this section:

970-11               (1)  "Commercial driver's license" has the meaning

970-12   assigned by Section 522.003.

970-13               (2)  "Consent tow" means the towing of a vehicle with

970-14   the consent of the owner or operator of the vehicle.

970-15               (3)  "Driver's license" has the meaning assigned by

970-16   Section 521.001.

970-17               (4)  "Nonconsent tow" means the towing of a vehicle

970-18   without the consent of the owner or operator of the vehicle.

970-19         Sec. 643.202.  RULES ADVISORY COMMITTEE.  (a)  The department

970-20   shall appoint a rules advisory committee to advise the department

970-21   on adoption of rules regarding:

970-22               (1)  the application of this chapter to tow trucks; and

970-23               (2)  the administration by the department of the

970-24   Vehicle Storage Facility Act (Article 6687-9a, Revised Statutes).

 971-1         (b)  The department shall determine the size of the

 971-2   committee, but the committee must include one member who represents

 971-3   each of the following:

 971-4               (1)  tow truck operators;

 971-5               (2)  vehicle storage facility operators;

 971-6               (3)  owners of property having parking facilities;

 971-7               (4)  law enforcement agencies or municipalities;

 971-8               (5)  insurance companies; and

 971-9               (6)  the general public.

971-10         (c)  Members of the committee serve at the pleasure of the

971-11   department.  A member of the committee is not entitled to

971-12   compensation or reimbursement of expenses for serving as a member.

971-13         (d)  The department may adopt rules to govern the operations

971-14   of the committee.

971-15            (Sections 643.203-643.250 reserved for expansion

971-16                       SUBCHAPTER F.  ENFORCEMENT

971-17         Sec. 643.251.  ADMINISTRATIVE PENALTY.  (a)  The department

971-18   may impose an administrative penalty against a motor carrier

971-19   required to register under Subchapter B that violates Subchapter B

971-20   or C or Section 643.151, 643.152, 643.153(a)-(f), or 643.155 or a

971-21   rule or order adopted under those provisions or Section 643.003.

971-22   The department shall designate one or more employees to investigate

971-23   violations and administer penalties under this section.

971-24         (b)  Except as provided by this section, the amount of an

 972-1   administrative penalty may not exceed $5,000.  If it is found that

 972-2   the motor carrier knowingly committed the violation, the penalty

 972-3   may not exceed $15,000.  If it is found that the motor carrier

 972-4   knowingly committed multiple violations, the aggregate penalty for

 972-5   the multiple violations may not exceed $30,000.  Each day a

 972-6   violation continues or occurs is a separate violation for purposes

 972-7   of imposing a penalty.

 972-8         (c)  The amount of the penalty shall be based on:

 972-9               (1)  the seriousness of the violation, including the

972-10   nature, circumstances, extent, and gravity of any prohibited act,

972-11   and the hazard or potential hazard created to the health, safety,

972-12   or economic welfare of the public;

972-13               (2)  the economic harm to property or the environment

972-14   caused by the violation;

972-15               (3)  the history of previous violations;

972-16               (4)  the amount necessary to deter future violations;

972-17               (5)  efforts to correct the violation; and

972-18               (6)  any other matter that justice may require.

972-19         (d)  If the department determines that a violation has

972-20   occurred, it may issue to the director a report that states the

972-21   facts on which the determination is based and a recommendation on

972-22   the imposition and amount of any penalty.

972-23         (e)  Before the 15th day after the date the report is issued,

972-24   the department shall give written notice of the report to the motor

 973-1   carrier.  The notice may be given by certified mail.  The notice

 973-2   must include a brief summary of the alleged violation and a

 973-3   statement of the amount of the recommended penalty and must inform

 973-4   the motor carrier that the carrier has a right to a hearing on the

 973-5   occurrence of the violation, the amount of the penalty, or both the

 973-6   occurrence of the violation and the amount of the penalty.

 973-7         (f)  Before the 21st day after the date the motor carrier

 973-8   receives the notice, the carrier in writing may accept the

 973-9   determination and recommended penalty of the department or may make

973-10   a written request for a hearing on the occurrence of the violation,

973-11   the amount of the penalty, or both the occurrence of the violation

973-12   and the amount of the penalty.  The department may, on the request

973-13   of the person, hold an informal hearing to discuss a penalty

973-14   recommended under this section.  The department may modify a

973-15   recommendation for a penalty at the conclusion of the informal

973-16   hearing.

973-17         (g)  If the motor carrier accepts the determination and

973-18   recommended penalty of the department, the director by order shall

973-19   approve the determination and impose the recommended penalty.

973-20         (h)  If the motor carrier requests a hearing or fails to

973-21   respond timely to the notice, the department shall set a hearing

973-22   and give notice of the hearing to the carrier.  The hearing shall

973-23   be held by an administrative law judge of the State Office of

973-24   Administrative Hearings.  The administrative law judge shall make

 974-1   findings of fact and conclusions of law and promptly issue to the

 974-2   director a proposal for a decision about the occurrence of the

 974-3   violation and the amount of a proposed penalty.  Based on the

 974-4   findings of fact, conclusions of law, and proposal for a decision,

 974-5   the director by order may find that a violation has occurred and

 974-6   impose a penalty or may find that no violation occurred.  The

 974-7   director may increase or decrease the amount of the penalty

 974-8   recommended by an administrative law judge within the limits

 974-9   prescribed by Subsection (b).

974-10         (i)  The notice of the director's order given to the motor

974-11   carrier under Chapter 2001, Government Code, must include a

974-12   statement of the right of the carrier to judicial review of the

974-13   order.

974-14         (j)  Before the 31st day after the date the director's order

974-15   becomes final as provided by Section 2001.144, Government Code, the

974-16   motor carrier shall:

974-17               (1)  pay the amount of the penalty;

974-18               (2)  pay the amount of the penalty and file a petition

974-19   for judicial review contesting the occurrence of the violation, the

974-20   amount of the penalty, or both the occurrence of the violation and

974-21   the amount of the penalty; or

974-22               (3)  without paying the amount of the penalty, file a

974-23   petition for judicial review contesting the occurrence of the

974-24   violation, the amount of the penalty, or both the occurrence of the

 975-1   violation and the amount of the penalty.

 975-2         (k)  Within the 30-day period, a motor carrier that acts

 975-3   under Subsection (j)(3) may:

 975-4               (1)  stay enforcement of the penalty by:

 975-5                     (A)  paying the amount of the penalty to the

 975-6   court for placement in an escrow account; or

 975-7                     (B)  giving to the court a supersedeas bond that

 975-8   is approved by the court for the amount of the penalty and that is

 975-9   effective until all judicial review of the director's order is

975-10   final; or

975-11               (2)  request the court to stay enforcement of the

975-12   penalty by:

975-13                     (A)  filing with the court a sworn affidavit of

975-14   the person stating that the person is financially unable to pay the

975-15   amount of the penalty and is financially unable to give the

975-16   supersedeas bond; and

975-17                     (B)  giving a copy of the affidavit to the

975-18   director by certified mail.

975-19         (l)  If the department receives a copy of an affidavit under

975-20   Subsection (k)(2), it may file with the court, before the sixth day

975-21   after the date the copy is received, a contest to the affidavit.

975-22   The court shall hold a hearing on the facts alleged in the

975-23   affidavit as soon as practicable and shall stay the enforcement of

975-24   the penalty if the court finds that the alleged facts are true.

 976-1   The motor carrier that files an affidavit has the burden of proving

 976-2   that the carrier is financially unable to pay the amount of the

 976-3   penalty and to give a supersedeas bond.

 976-4         (m)  If the motor carrier does not pay the amount of the

 976-5   penalty and the enforcement of the penalty is not stayed, the

 976-6   director may refer the matter to the attorney general for

 976-7   collection of the amount of the penalty.

 976-8         (n)  Judicial review of the order of the director:

 976-9               (1)  is instituted by filing a petition as provided by

976-10   Subchapter G, Chapter 2001, Government Code; and

976-11               (2)  is under the substantial evidence rule.

976-12         (o)  If the court sustains the occurrence of the violation,

976-13   the court may uphold or reduce the amount of the penalty and order

976-14   the motor carrier to pay the full or reduced amount of the penalty.

976-15   If the court does not sustain the occurrence of the violation, the

976-16   court shall order that no penalty is owed.

976-17         (p)  When the judgment of the court becomes final, the court

976-18   shall proceed under this subsection.  If the motor carrier paid the

976-19   amount of the penalty and if that amount is reduced or is not

976-20   upheld by the court, the court shall order that the appropriate

976-21   amount plus accrued interest be remitted to the person.  The rate

976-22   of the interest is the rate charged on loans to depository

976-23   institutions by the New York Federal Reserve Bank, and the interest

976-24   shall be paid for the period beginning on the date the penalty was

 977-1   paid and ending on the date the penalty is remitted.  If the motor

 977-2   carrier gave a supersedeas bond and if the penalty is not upheld by

 977-3   the court, the court shall order the release of the bond.  If the

 977-4   motor carrier gave a supersedeas bond and if the amount of the

 977-5   penalty is reduced, the court shall order the release of the bond

 977-6   after the carrier pays the amount.

 977-7         (q)  All proceedings under this section are subject to

 977-8   Chapter 2001, Government Code.

 977-9         (r)  In addition to a penalty proposed by an administrative

977-10   law judge under Subsection (h), the administrative law judge shall

977-11   include in the proposal for a decision a finding setting out costs,

977-12   fees, expenses, and reasonable and necessary attorney's fees

977-13   incurred by the state in bringing the proceeding.  The director may

977-14   adopt the finding and make it a part of a final order entered in

977-15   the proceeding.

977-16         Sec. 643.252.  SUSPENSION AND REVOCATION OF REGISTRATION.

977-17   (a)  The department may suspend or revoke a registration issued

977-18   under this chapter if a motor carrier:

977-19               (1)  fails to maintain insurance as required by Section

977-20   643.101(a), (b), or (c);

977-21               (2)  fails to keep evidence of insurance in the cab of

977-22   each vehicle as required by Section 643.103(b);

977-23               (3)  fails to register a vehicle requiring

977-24   registration; or

 978-1               (4)  knowingly provides false information on any form

 978-2   filed with the department under this chapter.

 978-3         (b)  The Department of Public Safety may request that the

 978-4   department suspend or revoke a registration issued under this

 978-5   chapter if a motor carrier has:

 978-6               (1)  an unsatisfactory safety rating under 49 C.F.R.

 978-7   Part 385; or

 978-8               (2)  multiple violations of Chapter 644, a rule adopted

 978-9   under that chapter, or Subtitle C.

978-10         (c)  Except as provided by Subsection (d), a suspension or

978-11   revocation made under Subsection (a) or (b) is a contested case

978-12   under Chapter 2001, Government Code.

978-13         (d)  The department may suspend or revoke a registration

978-14   issued under this chapter without a hearing under Chapter 2001,

978-15   Government Code, if:

978-16               (1)  the department provides notice to the motor

978-17   carrier of:

978-18                     (A)  the proposed suspension or revocation; and

978-19                     (B)  the right of the carrier to request a

978-20   hearing under Chapter 2001, Government Code; and

978-21               (2)  the motor carrier fails to provide the department

978-22   with a written request for a hearing before the 11th day after the

978-23   date the carrier receives the notice described in Subdivision (1).

978-24         Sec. 643.253.  CRIMINAL PENALTY.  (a)  A person commits an

 979-1   offense if the person fails to:

 979-2               (1)  register as required by Subchapter B;

 979-3               (2)  maintain insurance as required by Subchapter C; or

 979-4               (3)  keep a cab card in the cab of a vehicle as

 979-5   required by Section 643.059.

 979-6         (b)  An offense under this section is a Class C misdemeanor.

 979-7         Sec. 643.254.  INSPECTION OF DOCUMENTS.  (a)  To investigate

 979-8   an alleged violation of Subchapter B or C, an officer or employee

 979-9   of the department who has been certified for the purpose by the

979-10   director may enter a motor carrier's premises to copy or verify the

979-11   correctness of a document, including an operation log or insurance

979-12   certificate.

979-13         (b)  The officer or employee may conduct the inspection:

979-14               (1)  at a reasonable time;

979-15               (2)  after stating the purpose of the inspection; and

979-16               (3)  by presenting to the motor carrier:

979-17                     (A)  appropriate credentials; and

979-18                     (B)  a written statement from the department to

979-19   the motor carrier indicating the officer's or employee's authority

979-20   to inspect.

979-21         (b)  Article 6675c, Revised Statutes, as added by Section 1,

979-22   Chapter 705 (S.B. No. 3), Acts of the 74th Legislature, Regular

979-23   Session, 1995, is repealed.

979-24         SECTION 30.151.  (a)  Subtitle F, Title 7, Transportation

 980-1   Code, is amended to codify Article 6675d, Revised Statutes, as

 980-2   added by Section 3, Chapter 705 (S.B. No. 3), Acts of the 74th

 980-3   Legislature, Regular Session, 1995, by adding Chapter 644 to read

 980-4   as follows:

 980-5         CHAPTER 644.  COMMERCIAL MOTOR VEHICLE SAFETY STANDARDS

 980-6                    SUBCHAPTER A.  GENERAL PROVISIONS

 980-7         Sec. 644.001.  DEFINITIONS.  In this chapter:

 980-8               (1)  "Commercial motor vehicle" has the meaning

 980-9   assigned by Section 548.001.

980-10               (2)  "Department" means the Department of Public

980-11   Safety.

980-12               (3)  "Director" means the public safety director.

980-13               (4)  "Federal hazardous material regulation" means a

980-14   federal regulation in 49 C.F.R. Parts 101-199.

980-15               (5)  "Federal motor carrier safety regulation" means a

980-16   federal regulation in 49 C.F.R. Part 382, 385, or 386 or Parts

980-17   388-399.

980-18               (6)  "Federal safety regulation" means a federal

980-19   hazardous material regulation or a federal motor carrier safety

980-20   regulation.

980-21         Sec. 644.002.  CONFLICTS OF LAW.  (a)  A federal motor

980-22   carrier safety regulation prevails over a conflicting provision of

980-23   this chapter or a rule adopted by the director under this chapter.

980-24         (b)  A safety rule adopted under this chapter prevails over a

 981-1   conflicting rule adopted by a local government, authority, or state

 981-2   agency or officer, other than a conflicting rule adopted by the

 981-3   Railroad Commission of Texas under Chapter 113, Natural Resources

 981-4   Code.

 981-5         Sec. 644.003.  RULES.  The department may adopt rules to

 981-6   administer this chapter.

 981-7            (Sections 644.004-644.050 reserved for expansion

 981-8                    SUBCHAPTER B.  ADOPTION OF RULES

 981-9         Sec. 644.051.  AUTHORITY TO ADOPT RULES.  (a)  The director

981-10   shall, after notice and a public hearing, adopt rules regulating:

981-11               (1)  the safe transportation of hazardous materials;

981-12   and

981-13               (2)  the safe operation of commercial motor vehicles.

981-14         (b)  A rule adopted under this chapter must be consistent

981-15   with federal regulations, including federal safety regulations.

981-16         (c)  The director may adopt all or part of the federal safety

981-17   regulations by reference.

981-18         (d)  Rules adopted under this chapter must ensure that:

981-19               (1)  a commercial motor vehicle is safely maintained,

981-20   equipped, loaded, and operated;

981-21               (2)  the responsibilities imposed on a commercial motor

981-22   vehicle's operator do not impair the operator's ability to operate

981-23   the vehicle safely; and

981-24               (3)  the physical condition of a commercial motor

 982-1   vehicle's operator enables the operator to operate the vehicle

 982-2   safely.

 982-3         (e)  A motor carrier safety rule adopted by a local

 982-4   government, authority, or state agency or officer must be

 982-5   consistent with corresponding federal regulations.

 982-6         Sec. 644.052.  APPLICABILITY OF RULES.  (a)  Notwithstanding

 982-7   an exemption provided in the federal safety regulations, other than

 982-8   an exemption relating to intracity or commercial zone operations

 982-9   provided in 49 C.F.R. Part 395, a rule adopted by the director

982-10   under this chapter applies uniformly throughout this state.

982-11         (b)  A rule adopted under this chapter applies to a vehicle

982-12   that requires a hazardous material placard.

982-13         (c)  A rule adopted under this chapter may not apply to a

982-14   vehicle that is operated intrastate and that is:

982-15               (1)  a machine generally consisting of a mast, engine,

982-16   draw works, and chassis permanently constructed or assembled to be

982-17   used and used in oil or water well servicing or drilling;

982-18               (2)  a mobile crane that is an unladen, self-propelled

982-19   vehicle constructed as a machine to raise, shift, or lower weight;

982-20   or

982-21               (3)  a vehicle transporting a seed cotton module.

982-22         Sec. 644.053.  LIMITATIONS OF RULES.  (a)  A rule adopted

982-23   under this chapter may not:

982-24               (1)  prevent an intrastate operator from operating a

 983-1   vehicle up to 12 hours following eight consecutive hours off;

 983-2               (2)  require a person to meet the medical standards

 983-3   provided in the federal motor carrier safety regulations if the

 983-4   person:

 983-5                     (A)  was regularly employed in this state as a

 983-6   commercial motor vehicle operator in intrastate commerce before

 983-7   August 28, 1989; and

 983-8                     (B)  is not transporting property that requires a

 983-9   hazardous material placard; or

983-10               (3)  require a person to maintain a government form,

983-11   separate company form, operator's record of duty status, or

983-12   operator's daily log for operations within a 150-mile radius of the

983-13   normal work-reporting location if a general record of an operator's

983-14   hours of service can be compiled from:

983-15                     (A)  business records maintained by the owner

983-16   that provide the date, time, and location of the delivery of a

983-17   product or service; or

983-18                     (B)  documents required to be maintained by law,

983-19   including delivery tickets or sales invoices, that provide the date

983-20   of delivery and the quantity of merchandise delivered.

983-21         (b)  For purposes of Subsection (a)(3)(A), an owner's

983-22   business records must generally include:

983-23               (1)  the time an operator reports for duty each day;

983-24               (2)  the number of hours an operator is on duty each

 984-1   day;

 984-2               (3)  the time an operator is released from duty each

 984-3   day; and

 984-4               (4)  an operator's signed statement in compliance with

 984-5   49 C.F.R. Section 395.8(j)(2).

 984-6            (Sections 644.054-644.100 reserved for expansion

 984-7                SUBCHAPTER C.  ADMINISTRATIVE ENFORCEMENT

 984-8         Sec. 644.101.  CERTIFICATION OF MUNICIPAL PEACE OFFICERS.

 984-9   (a)  The department shall establish procedures, including training,

984-10   for the certification of municipal peace officers to enforce this

984-11   chapter.

984-12         (b)  A peace officer of any of the following municipalities

984-13   is eligible to apply for certification under this section:

984-14               (1)  a municipality with a population of 100,000 or

984-15   more;

984-16               (2)  a municipality with a population of 25,000 or more

984-17   any part of which is located in a county with a population of 2.4

984-18   million or more; or

984-19               (3)  a municipality any part of which is located in a

984-20   county bordering the United Mexican States.

984-21         (c)  The department by rule shall establish reasonable fees

984-22   sufficient to recover from a municipality the cost of certifying

984-23   its peace officers under this section.

984-24         Sec. 644.102.  MUNICIPAL ENFORCEMENT REQUIREMENTS.  (a)  The

 985-1   department by rule may establish uniform standards for municipal

 985-2   enforcement of this chapter.

 985-3         (b)  A municipality that engages in enforcement under this

 985-4   chapter:

 985-5               (1)  shall pay all costs relating to the municipality's

 985-6   enforcement; and

 985-7               (2)  may not be considered, in the context of a federal

 985-8   grant related to this chapter:

 985-9                     (A)  a party to a federal grant agreement; or

985-10                     (B)  a grantee under a federal grant to the

985-11   department.

985-12         (c)  Municipal enforcement under Section 644.103(b) is not

985-13   considered departmental enforcement for purposes of maintaining

985-14   levels of effort required by a federal grant.

985-15         (d)  In each fiscal year, a municipality may retain fines

985-16   from the enforcement of this chapter in an amount not to exceed 110

985-17   percent of the municipality's actual expenses for enforcement of

985-18   this chapter in the preceding fiscal year, as determined by the

985-19   comptroller after reviewing the most recent municipal audit

985-20   conducted under Section 103.001, Local Government Code.  If there

985-21   are no actual expenses for enforcement of this chapter in the most

985-22   recent municipal audit, a municipality may retain fines in an

985-23   amount not to exceed 110 percent of the amount the comptroller

985-24   estimates would be the municipality's actual expenses for

 986-1   enforcement of this chapter during the year.

 986-2         (e)  A municipality shall send to the comptroller the

 986-3   proceeds of all fines that exceed the limit imposed by Subsection

 986-4   (d).

 986-5         Sec. 644.103.  DETENTION OF VEHICLES.  (a)  An officer of the

 986-6   department may enter or detain on a highway a motor vehicle that is

 986-7   subject to this chapter.

 986-8         (b)  A peace officer who is certified under Section 644.101

 986-9   may detain on a highway within the territory of the municipality a

986-10   motor vehicle that is subject to this chapter.

986-11         Sec. 644.104.  INSPECTION OF PREMISES.  (a)  An officer or

986-12   employee of the department who has been certified for the purpose

986-13   by the director may enter a motor carrier's premises to:

986-14               (1)  inspect real property, including a building, or

986-15   equipment; or

986-16               (2)  copy or verify the correctness of documents,

986-17   including records or reports, required to be kept or made by rules

986-18   adopted under this chapter.

986-19         (b)  The officer or employee may conduct the inspection:

986-20               (1)  at a reasonable time;

986-21               (2)  after stating the purpose of the inspection; and

986-22               (3)  by presenting to the motor carrier:

986-23                     (A)  appropriate credentials; and

986-24                     (B)  a written statement from the department to

 987-1   the motor carrier indicating the officer's or employee's authority

 987-2   to inspect.

 987-3            (Sections 644.105-644.150 reserved for expansion

 987-4      SUBCHAPTER D.  OFFENSES, PENALTIES, AND JUDICIAL ENFORCEMENT

 987-5         Sec. 644.151.  CRIMINAL OFFENSE.  (a)  A person commits an

 987-6   offense if the person:

 987-7               (1)  violates a rule adopted under this chapter; or

 987-8               (2)  does not permit an inspection authorized under

 987-9   Section 644.104.

987-10         (b)  An offense under this section is a Class C misdemeanor.

987-11         (c)  Each day a violation continues under Subsection (a)(1)

987-12   or each day a person refuses to allow an inspection described under

987-13   Subsection (a)(2) is a separate offense.

987-14         Sec. 644.152.  CIVIL PENALTY.  (a)  A person who does not

987-15   permit an inspection authorized by Section 644.104 is liable to the

987-16   state for a civil penalty in an amount not to exceed $1,000.

987-17         (b)  The attorney general may sue to collect the penalty in:

987-18               (1)  the county in which the violation is alleged to

987-19   have occurred; or

987-20               (2)  Travis County.

987-21         (c)  The penalty provided by this section is in addition to

987-22   the penalty provided by Section 644.151.

987-23         (d)  Each day a person refuses to permit an inspection

987-24   described by Subsection (a) is a separate violation for purposes of

 988-1   imposing a penalty.

 988-2         Sec. 644.153.  ADMINISTRATIVE PENALTY.  (a)  The department

 988-3   may impose an administrative penalty against a person who violates:

 988-4               (1)  a rule adopted under this chapter; or

 988-5               (2)  a provision of Subtitle C that the department by

 988-6   rule subjects to administrative penalties.

 988-7         (b)  To be designated as subject to an administrative penalty

 988-8   under Subsection (a)(2), a provision must relate to the safe

 988-9   operation of a commercial motor vehicle.

988-10         (c)  A penalty under this section:

988-11               (1)  may not exceed the maximum penalty provided for a

988-12   violation of a similar federal safety regulation; and

988-13               (2)  shall be administered in the same manner as a

988-14   penalty under Section 643.251, except that the amount of a penalty

988-15   shall be determined under Subdivision (1).

988-16         Sec. 644.154.  SUIT FOR INJUNCTION.  (a)  The attorney

988-17   general shall sue to enjoin a violation or a threatened violation

988-18   of a rule adopted under this chapter on request of the director.

988-19         (b)  The suit must be brought in the county in which the

988-20   violation or threat is alleged to have occurred.

988-21         (c)  The court may grant the director, without bond or other

988-22   undertaking:

988-23               (1)  a prohibitory or mandatory injunction, including a

988-24   temporary restraining order; or

 989-1               (2)  after notice and hearing, a temporary or permanent

 989-2   injunction.

 989-3         Sec. 644.155.  SAFETY AUDIT PROGRAM.  The department shall

 989-4   implement and enforce a safety audit program similar to the federal

 989-5   program established under 49 C.F.R. Part 385 for a person who owns

 989-6   or operates a commercial motor vehicle not subject to safety audits

 989-7   by the United States.

 989-8         (b)  Article 6675d, Revised Statutes, as added by Section 3,

 989-9   Chapter 705 (S.B. No. 3), Acts of the 74th Legislature, Regular

989-10   Session, 1995, is repealed.

989-11         SECTION 30.152.  (a)  Subtitle F, Title 7, Transportation

989-12   Code, is amended to codify Article 6675c-1, Revised Statutes, as

989-13   added by Section 2, Chapter 705 (S.B. No. 3), Acts of the 74th

989-14   Legislature, Regular Session, 1995, by adding Chapter 645 to read

989-15   as follows:

989-16                 CHAPTER 645.  SINGLE STATE REGISTRATION

989-17         Sec. 645.001.  SINGLE STATE REGISTRATION.  The Texas

989-18   Department of Transportation shall, to the fullest extent

989-19   practicable, participate in the single state registration system

989-20   established under 49 U.S.C. Section 11506.

989-21         Sec. 645.002.  FEES.  (a)  The department may charge a motor

989-22   carrier holding a permit issued under Subtitle IV, Title 49, United

989-23   States Code, a fee for filing proof of insurance consistent with 49

989-24   U.S.C. Section 11506 not to exceed the maximum fee established

 990-1   under federal law.

 990-2         (b)  The department may adopt rules regarding the method of

 990-3   payment of a fee under this chapter.  The rules may:

 990-4               (1)  authorize the use of electronic funds transfer or

 990-5   a valid credit card issued by a financial institution chartered by

 990-6   a state or the United States or by a nationally recognized credit

 990-7   organization approved by the department; and

 990-8               (2)  require the payment of a discount or service

 990-9   charge for a credit card payment in addition to the fee.

990-10         Sec. 645.003.  ENFORCEMENT RULES.  The department shall adopt

990-11   rules that are consistent with federal law providing for:

990-12               (1)  administrative penalties in the same manner as

990-13   Section 643.251; and

990-14               (2)  suspension and revocation of registration in the

990-15   same manner as Section 643.252.

990-16         Sec. 645.004.  CRIMINAL OFFENSE.  (a)  A person commits an

990-17   offense if the person:

990-18               (1)  violates a rule adopted under this chapter; or

990-19               (2)  fails to register a vehicle required to be

990-20   registered under this chapter.

990-21         (b)  An offense under this section is a Class C misdemeanor.

990-22         (c)  Each day a violation of a rule occurs is a separate

990-23   offense under this section.

990-24         (b)  Article 6675c-1, Revised Statutes, as added by Section

 991-1   2, Chapter 705 (S.B. No. 3), Acts of the 74th Legislature, Regular

 991-2   Session, 1995, is repealed.

 991-3         SECTION 30.153.  (a)  Subtitle F, Title 7, Transportation

 991-4   Code, is amended to codify Article 911m, Revised Statutes, as added

 991-5   by Section 4, Chapter 705 (S.B. No. 3), Acts of the 74th

 991-6   Legislature, Regular Session, 1995, by adding Chapter 646 to read

 991-7   as follows:

 991-8               CHAPTER 646.  MOTOR TRANSPORTATION BROKERS

 991-9         Sec. 646.001.  DEFINITION.  In this chapter, "motor

991-10   transportation broker" means a person who:

991-11               (1)  sells, offers for sale, provides, or negotiates

991-12   for the transportation of cargo by a motor carrier operated by

991-13   another person; or

991-14               (2)  aids or abets a person in performing an act

991-15   described by Subdivision (1).

991-16         Sec. 646.002.  EXCEPTION.  This chapter does not apply to a

991-17   motor transportation broker who:

991-18               (1)  is registered as a motor carrier under Chapter

991-19   643; or

991-20               (2)  holds a permit issued under Subtitle IV, Title 49,

991-21   United States Code.

991-22         Sec. 646.003.  BOND REQUIRED.  (a)  A person may not act as a

991-23   motor transportation broker unless the person provides a bond to

991-24   the Texas Department of Transportation.

 992-1         (b)  The bond must be in an amount of at least $10,000 and

 992-2   must be:

 992-3               (1)  executed by a bonding company authorized to do

 992-4   business in this state;

 992-5               (2)  payable to this state or a person to whom the

 992-6   motor transportation broker provides services; and

 992-7               (3)  conditioned on the performance of the contract for

 992-8   transportation services between the broker and the person for whom

 992-9   services are provided.

992-10         (c)  The department may charge the broker a bond review fee

992-11   in an amount not to exceed the cost of reviewing the bond.

992-12         (d)  The department may adopt rules regarding the method of

992-13   payment of a fee under this chapter.  The rules may:

992-14               (1)  authorize the use of electronic funds transfer or

992-15   a credit card issued by a financial institution chartered by a

992-16   state or the United States or by a nationally recognized credit

992-17   organization approved by the department; and

992-18               (2)  require the payment of a discount or service

992-19   charge for a credit card payment in addition to the fee.

992-20         Sec. 646.004.  CRIMINAL OFFENSE.  (a)  A person commits an

992-21   offense if the person fails to provide the bond required by Section

992-22   646.003.

992-23         (b)  An offense under this section is a Class C misdemeanor.

992-24         (b)  Article 911m, Revised Statutes, as added by Section 4,

 993-1   Chapter 705 (S.B.  No. 3), Acts of the 74th Legislature, Regular

 993-2   Session, 1995, is repealed.

 993-3         SECTION 30.154.  (a)  Section 661.003, Transportation Code,

 993-4   is amended to conform to Section 1, Chapter 539 (S.B. No. 1363),

 993-5   Acts of the 74th Legislature, Regular Session, 1995, by amending

 993-6   Subsections (d) and (e) and adding Subsection (f) to read as

 993-7   follows:

 993-8         (d)  Only a practicing physician licensed by the Texas State

 993-9   Board of Medical Examiners may issue a medical exemption and the

993-10   physician may issue the medical exemption only to a person who has

993-11   a medical condition [an acute head or facial injury] that would be

993-12   worsened if the person wore protective headgear.  The medical

993-13   exemption must be on a form prescribed by the department and,

993-14   except as provided by Subsection (e), expires on the earlier of:

993-15               (1)  the 180th [10th] day after the date it is issued;

993-16   or

993-17               (2)  the expiration date specified by the physician on

993-18   the form.

993-19         (e)  The medical exemption is permanent if the physician

993-20   attests that the person's medical condition is permanent.

993-21         (f)  An offense under this section is a misdemeanor

993-22   punishable by a fine of not less than $10 or more than $50.

993-23         (b)  Section 1, Chapter 539 (S.B. No. 1363), Acts of the 74th

993-24   Legislature, Regular Session, 1995, is repealed.

 994-1         SECTION 30.155.  Chapter 662, Transportation Code, is amended

 994-2   to conform to Section 1(38), Chapter 1058 (H.B. No. 3050), Acts of

 994-3   the 74th Legislature, Regular Session, 1995, by adding Section

 994-4   662.011 to read as follows:

 994-5         Sec. 662.011.  MOTORCYCLE EDUCATION FUND ACCOUNT.  (a)  The

 994-6   motorcycle education fund account is an account in the general

 994-7   revenue fund.

 994-8         (b)  Of each fee for renewal of a Class M license, the

 994-9   Department of Public Safety shall send $5 to the comptroller for

994-10   deposit to the credit of the motorcycle education fund account.

994-11         (c)  Money deposited to the credit of the motorcycle

994-12   education fund account may be used only to defray the cost of

994-13   administering the motorcycle operator training and safety program,

994-14   except as provided by Subsection (d).

994-15         (d)  The unspent and unencumbered balance in the motorcycle

994-16   education fund account at the end of each fiscal year may be

994-17   appropriated for:

994-18               (1)  the motorcycle operator training and safety

994-19   program; or

994-20               (2)  any other purpose relating to:

994-21                     (A)  maintaining or policing highways; or

994-22                     (B)  supervising traffic or promoting safety on

994-23   highways.

994-24         SECTION 30.156.  (a)  Section 681.001, Transportation Code,

 995-1   is amended to conform to Section 1, Chapter 929 (H.B. No. 2083),

 995-2   Acts of the 74th Legislature, Regular Session, 1995, by adding

 995-3   Subdivision (5) to read as follows:

 995-4               (5)  "Mobility problem that substantially impairs a

 995-5   person's ability to ambulate" means that the person:

 995-6                     (A)  cannot walk 200 feet without stopping to

 995-7   rest;

 995-8                     (B)  cannot walk without the use of or assistance

 995-9   from an assistance device, including a brace, a cane, a crutch,

995-10   another person, or a prosthetic device;

995-11                     (C)  cannot ambulate without a wheelchair or

995-12   similar device;

995-13                     (D)  is restricted by lung disease to the extent

995-14   that the person's forced respiratory expiratory volume for one

995-15   second, measured by spirometry, is less than one liter, or the

995-16   arterial oxygen tension is less than 60 millimeters of mercury on

995-17   room air at rest;

995-18                     (E)  uses portable oxygen;

995-19                     (F)  has a cardiac condition to the extent that

995-20   the person's functional limitations are classified in severity as

995-21   Class III or Class IV according to standards set by the American

995-22   Heart Association;

995-23                     (G)  is severely limited in the ability to walk

995-24   because of an arthritic, neurological, or orthopedic condition; or

 996-1                     (H)  has another debilitating condition that, in

 996-2   the opinion of a physician licensed to practice medicine in this

 996-3   state, limits or impairs the person's ability to walk.

 996-4         (b)  Section 681.003(c), Transportation Code, is amended to

 996-5   conform to Section 1, Chapter 929 (H.B. No. 2083), Acts of the 74th

 996-6   Legislature, Regular Session, 1995, to read as follows:

 996-7         (c)  The first application must be accompanied by a written

 996-8   statement of a physician licensed to practice medicine in this

 996-9   state certifying to the department [acceptable medical proof] that

996-10   the person making the application or on whose behalf the

996-11   application is made is legally blind or has a mobility problem that

996-12   substantially impairs the person's ability to ambulate.  The

996-13   statement must include a certification of whether a mobility

996-14   problem, if applicable, is temporary or permanent [operator or

996-15   regularly transported passenger has a disability].  A written

996-16   statement from a physician is not required as acceptable medical

996-17   proof if:

996-18               (1)  the person with a disability:

996-19                     (A)  has had a limb, hand, or foot amputated; or

996-20                     (B)  must use a wheelchair; and

996-21               (2)  the applicant and the county assessor-collector

996-22   issuing the disabled parking placard execute an affidavit attesting

996-23   to the person's disability.

996-24         (c)  Section 681.006(b), Transportation Code, is amended to

 997-1   conform to Section 2, Chapter 929 (H.B. No. 2083), Acts of the 74th

 997-2   Legislature, Regular Session, 1995, to read as follows:

 997-3         (b)  The owner of a vehicle is exempt from the payment of a

 997-4   fee or penalty imposed by a governmental unit for parking at a

 997-5   meter, in a parking garage or lot, or in a space with a limitation

 997-6   on the length of time for parking if:

 997-7               (1)  the vehicle is being operated by or for the

 997-8   transportation of a person with a disability; and

 997-9               (2)  there are:

997-10                     (A)  displayed on the vehicle special license

997-11   plates issued under Section 502.253; or

997-12                     (B)  placed on the rearview mirror of the

997-13   vehicle's front windshield a disabled parking placard.

997-14         (d)  Chapter 681, Transportation Code, is amended to conform

997-15   to Section 3, Chapter 929 (H.B. No. 2083), Acts of the 74th

997-16   Legislature, Regular Session, 1995, by adding Section 681.0101 to

997-17   read as follows:

997-18         Sec. 681.0101.  ENFORCEMENT BY CERTAIN APPOINTED PERSONS.

997-19   (a)  A political subdivision may appoint a person to have authority

997-20   to file a charge against a person who commits an offense under this

997-21   chapter.

997-22         (b)  A person appointed under this section must:

997-23               (1)  be a United States citizen of good moral character

997-24   who has not been convicted of a felony;

 998-1               (2)  take and subscribe to an oath of office that the

 998-2   political subdivision prescribes; and

 998-3               (3)  successfully complete a training program developed

 998-4   by the political subdivision.

 998-5         (c)  A person appointed under this section:

 998-6               (1)  is not a peace officer;

 998-7               (2)  has no authority other than the authority

 998-8   applicable to a citizen to enforce a law other than this chapter;

 998-9   and

998-10               (3)  may not carry a weapon while performing duties

998-11   under this section.

998-12         (d)  A person appointed under this section is not entitled to

998-13   compensation for performing duties under this section or to

998-14   indemnification from the political subdivision or the state for

998-15   injury or property damage the person sustains or liability the

998-16   person incurs in performing duties under this section.

998-17         (e)  The political subdivision and the state are not liable

998-18   for any damage arising from an act or omission of a person

998-19   appointed under Subsection (a) in performing duties under this

998-20   section.

998-21         (e)  Section 681.011, Transportation Code, is amended to

998-22   conform to Section 4, Chapter 929 (H.B. No. 2083), Acts of the 74th

998-23   Legislature, Regular Session, 1995, by amending Subsection (g) and

998-24   adding Subsections (h)-(l) to read as follows:

 999-1         (g)  Except as provided by Subsections (h)-(k), an [An]

 999-2   offense under this section is a [Class C] misdemeanor punishable by

 999-3   a fine of not less than $100 or more than $200.

 999-4         (h)  If it is shown on the trial of an offense under this

 999-5   section that the person has been previously convicted one time of

 999-6   an offense under this section, the offense is punishable by a fine

 999-7   of not less than $200 or more than $300.

 999-8         (i)  If it is shown on the trial of an offense under this

 999-9   section that the person has been previously convicted two times of

999-10   an offense under this section, the offense is punishable by a fine

999-11   of not less than $300 or more than $400.

999-12         (j)  If it is shown on the trial of an offense under this

999-13   section that the person has been previously convicted three times

999-14   of an offense under this section, the offense is punishable by a

999-15   fine of not less than $400 or more than $500.

999-16         (k)  If it is shown on the trial of an offense under this

999-17   section that the person has been previously convicted four times of

999-18   an offense under this section, the offense is punishable by a fine

999-19   of $500.

999-20         (l)  If a justice of the peace or a judge requires a person

999-21   convicted of an offense under this section to perform community

999-22   service, the justice or judge may not require the person to work

999-23   more than 100 hours.

999-24         (f)  Sections 1-4, Chapter 929 (H.B. No. 2083), Acts of the

 1000-1  74th Legislature, Regular Session, 1995, are repealed.

 1000-2        SECTION 30.157.  (a)  Section 683.002, Transportation Code,

 1000-3  is amended to conform to Section 1, Chapter 863 (S.B. No. 896),

 1000-4  Acts of the 74th Legislature, Regular Session, 1995, to read as

 1000-5  follows:

 1000-6        Sec. 683.002.  ABANDONED MOTOR VEHICLE.  (a)  For the

 1000-7  purposes of this chapter, a motor vehicle is abandoned if the motor

 1000-8  vehicle:

 1000-9              (1)  is inoperable, is more than five years old, and

1000-10  has been left unattended on public property for more than 48 hours;

1000-11              (2)  has remained illegally on public property for more

1000-12  than 48 hours;

1000-13              (3)  has remained on private property without the

1000-14  consent of the owner or person in charge of the property for more

1000-15  than 48 hours; [or]

1000-16              (4)  has been left unattended on the right-of-way of a

1000-17  designated county, state, or federal highway for more than 48

1000-18  hours; or

1000-19              (5)  has been left unattended for more than 24 hours on

1000-20  the right-of-way of [on] a turnpike project constructed and

1000-21  maintained by the Texas Turnpike Authority or a controlled access

1000-22  highway.

1000-23        (b)  In this section, "controlled access highway" has the

1000-24  meaning assigned by Section 541.302 [for more than 12 hours].

 1001-1        (b)  Section 1, Chapter 863 (S.B. No. 896), Acts of the 74th

 1001-2  Legislature, Regular Session, 1995, is repealed.

 1001-3        SECTION 30.158.  (a)  Section 683.032(b), Transportation

 1001-4  Code, is amended to conform to Section 1, Chapter 572 (S.B. No.

 1001-5  560), Acts of the 74th Legislature, Regular Session, 1995, to read

 1001-6  as follows:

 1001-7        (b)  A garagekeeper who fails to report an abandoned motor

 1001-8  vehicle to a law enforcement agency within seven days [48 hours]

 1001-9  after the date it is [has been] abandoned may not claim

1001-10  reimbursement for storage of the vehicle.

1001-11        (b)  Section 683.034, Transportation Code, is amended to

1001-12  conform to Section 1, Chapter 572 (S.B. No. 560), Acts of the 74th

1001-13  Legislature, Regular Session, 1995, by adding Subsection (e) to

1001-14  read as follows:

1001-15        (e)  If the law enforcement agency does not take the vehicle

1001-16  into custody before the 31st day after the date notice is sent

1001-17  under Section 683.012:

1001-18              (1)  the law enforcement agency may not take the

1001-19  vehicle into custody; and

1001-20              (2)  the storage facility may dispose of the vehicle

1001-21  under Chapter 70, Property Code, except that notice under Section

1001-22  683.012 satisfies the notice requirements of that chapter.

1001-23        (c)  Section 1, Chapter 572 (S.B.  No. 560), Acts of the 74th

1001-24  Legislature, Regular Session, 1995, is repealed.

 1002-1        SECTION 30.159.  (a)  Chapter 685, Transportation Code, is

 1002-2  amended to conform to Section 1, Chapter 360 (S.B. No. 1278), Acts

 1002-3  of the 74th Legislature, Regular Session, 1995, to read as follows:

 1002-4    CHAPTER 685.  RIGHTS OF OWNERS AND OPERATORS OF STORED VEHICLES

 1002-5        Sec. 685.001.  DEFINITIONS.  In this chapter:

 1002-6              (1)  "Vehicle[, "vehicle" and "vehicle] storage

 1002-7  facility" has [have] the meaning [meanings] assigned [those terms]

 1002-8  by the Vehicle Storage Facility Act, Article 6687-9a, Revised

 1002-9  Statutes.

1002-10              (2)  "Parking facility," "towing company," and

1002-11  "vehicle" have the meanings assigned by Section 684.001.

1002-12        Sec. 685.002.  Payment of Cost of Removal and Storage of

1002-13  Vehicle.  (a)  If in a hearing held under this chapter the court

1002-14  finds that a person or law enforcement agency authorized, with

1002-15  probable cause, the removal and storage in a vehicle storage

1002-16  facility of a vehicle, the person who requested the hearing [owner

1002-17  of the vehicle] shall pay the costs of the removal and storage.

1002-18        (b)  If in a hearing held under this chapter the court does

1002-19  not find that a person or law enforcement agency authorized, with

1002-20  probable cause, the removal and storage in a vehicle storage

1002-21  facility of a vehicle, the person or law enforcement agency that

1002-22  authorized the removal shall:

1002-23              (1)  pay the costs of the removal and storage; or

1002-24              (2)  reimburse the owner or operator for the cost of

 1003-1  the removal and storage paid by the owner or operator.

 1003-2        Sec. 685.003.  RIGHT OF OWNER OR OPERATOR OF VEHICLE TO

 1003-3  HEARING.  The owner or operator of a vehicle that has been removed

 1003-4  and placed in a vehicle storage facility without the consent of the

 1003-5  owner or operator of the vehicle is entitled to a hearing on

 1003-6  whether probable cause existed for the removal and placement.

 1003-7        Sec. 685.004.  JURISDICTION.  (a)  A hearing under this

 1003-8  chapter is before the justice of the peace or a magistrate in whose

 1003-9  jurisdiction is the location from which the vehicle was removed

1003-10  [vehicle storage facility is located], except as provided by

1003-11  Subsection (b).

1003-12        (b)  In a municipality with a population of 1,200,000 or

1003-13  more, a hearing under this chapter is before a judge of a municipal

1003-14  court in whose jurisdiction is the location from which the vehicle

1003-15  was removed [vehicle storage facility is located].

1003-16        Sec. 685.005.  NOTICE TO VEHICLE OWNER OR OPERATOR.  (a)  If

1003-17  before a hearing held under this chapter the owner or operator of a

1003-18  vehicle pays the costs of the vehicle's removal or storage, the

1003-19  towing company or vehicle storage facility that received the

1003-20  payment shall at the time of payment give the owner or operator

1003-21  written notice of the person's rights under this chapter.

1003-22        (b)  The operator of a vehicle storage facility that sends a

1003-23  notice under Section 13, Vehicle Storage Facility Act (Article

1003-24  6687-9a, Revised Statutes), shall include with that notice a notice

 1004-1  of the person's rights under this chapter.

 1004-2        Sec. 685.006.  CONTENTS OF NOTICE.  (a)  The notice under

 1004-3  Section 685.005 must include:

 1004-4              (1)  a statement of:

 1004-5                    (A)  the person's right to submit a request

 1004-6  within 14 days for a court hearing to determine whether probable

 1004-7  cause existed to remove the vehicle;

 1004-8                    (B)  the information that a request for a hearing

 1004-9  must contain; and

1004-10                    (C)  any filing fee for the hearing;

1004-11              (2)  the name, address, and telephone number of the

1004-12  towing company that removed the vehicle;

1004-13              (3)  the name, address, and telephone number of the

1004-14  vehicle storage facility in which the vehicle was placed; and

1004-15              (4)  the name, address, and telephone number of one or

1004-16  more of the appropriate magistrates as determined under Subsection

1004-17  (b).

1004-18        (b)  The notice must include the name, address, and telephone

1004-19  number of:

1004-20              (1)  the municipal court of the municipality, if the

1004-21  towing company that removed the vehicle or the vehicle storage

1004-22  facility in which the vehicle was placed is located in a

1004-23  municipality; or

1004-24              (2)  the justice of the peace of the precinct in which

 1005-1  the towing company or the vehicle storage facility is located, if

 1005-2  the towing company that removed the vehicle or the vehicle storage

 1005-3  facility in which the vehicle was placed is not located in a

 1005-4  municipality.

 1005-5        Sec. 685.007 [685.005].  REQUEST FOR HEARING.  (a)  Except as

 1005-6  provided by Subsection (c), a [A] person entitled to a hearing

 1005-7  under this chapter must deliver a written request for the hearing

 1005-8  to the court before the 14th [sixth] day after the date the vehicle

 1005-9  was removed and placed in the vehicle storage facility, excluding

1005-10  Saturdays, Sundays, and legal holidays.

1005-11        (b)  A request for a hearing must contain:

1005-12              (1)  the name, address, and telephone number of the

1005-13  owner or operator of the vehicle;

1005-14              (2)  the location from which the vehicle was removed;

1005-15              (3)  the date when the vehicle was removed;

1005-16              (4)  the name, address, and telephone number of the

1005-17  person or law enforcement agency that authorized the removal; [and]

1005-18              (5)  the name, address, and telephone number of the

1005-19  vehicle storage facility in which the vehicle was placed;

1005-20              (6)  the name, address, and telephone number of the

1005-21  towing company that removed the vehicle;

1005-22              (7)  a copy of any receipt or notification that the

1005-23  owner or operator received from the towing company or the vehicle

1005-24  storage facility; and

 1006-1              (8)  if the vehicle was removed from a parking

 1006-2  facility:

 1006-3                    (A)  one or more photographs that show the

 1006-4  location and text of any sign posted at the facility restricting

 1006-5  parking of vehicles; or

 1006-6                    (B)  a statement that no sign restricting parking

 1006-7  was posted at the parking facility.

 1006-8        (c)  If notice was not given under Section 685.005, the

 1006-9  14-day deadline for requesting a hearing under Subsection (a) does

1006-10  not apply, and the owner or operator of the vehicle may deliver a

1006-11  written request for a hearing at any time.

1006-12        (d)  A person who fails to deliver a request in accordance

1006-13  with Subsection (a) waives the right to a hearing.

1006-14        Sec. 685.008 [685.006].  FILING FEE AUTHORIZED.  The court

1006-15  may charge a filing fee of $10 for a hearing under this chapter.

1006-16        Sec. 685.009 [685.007].  Hearing.  (a)  A hearing under this

1006-17  chapter shall be held before the seventh [fourth] working day after

1006-18  the date the court receives the request for the hearing.

1006-19        (b)  The court shall notify the person who requested the

1006-20  hearing [owner of the vehicle] and the person or law enforcement

1006-21  agency that authorized the removal of the vehicle of the date,

1006-22  time, and place of the hearing.

1006-23        (c)  The sole issue in a hearing under this chapter is

1006-24  whether probable cause existed for the removal and placement of the

 1007-1  vehicle.

 1007-2        (d)  The court shall make written findings of fact and a

 1007-3  conclusion of law.

 1007-4        (e)  The court may award:

 1007-5              (1)  court costs to the prevailing party; and

 1007-6              (2)  the reasonable cost of photographs submitted under

 1007-7  Section 685.007(b)(8) to a vehicle owner or operator who is the

 1007-8  prevailing party.

 1007-9        (b)  Section 1, Chapter 360 (S.B. No. 1278), Acts of the 74th

1007-10  Legislature, Regular Session, 1995, is repealed.

1007-11        SECTION 30.160.  (a)  Section 702.001, Transportation Code,

1007-12  is amended to conform to Sections 6 and 7, Chapter 434 (S.B. No.

1007-13  1504), Acts of the 74th Legislature, Regular Session, 1995, to read

1007-14  as follows:

1007-15        Sec. 702.001.  DEFINITIONS.  In this chapter:

1007-16              (1)  "Department" means the Texas Department of

1007-17  Transportation.

1007-18              (2)  "Registration" of a motor vehicle includes a

1007-19  renewal of the registration of that vehicle.

1007-20              (3) [(2)]  "Traffic law" means a statute or ordinance,

1007-21  a violation of which is a misdemeanor punishable by a fine not to

1007-22  exceed $200, that regulates, on a street, road, or highway of this

1007-23  state:

1007-24                    (A)  the conduct or condition of a person while

 1008-1  operating a motor vehicle; or

 1008-2                    (B)  the condition of a motor vehicle being

 1008-3  operated.

 1008-4        (b)  Section 702.003(b), Transportation Code, is amended to

 1008-5  conform to Sections 5 and 6, Chapter 434 (S.B. No. 1504), Acts of

 1008-6  the 74th Legislature, Regular Session, 1995, to read as follows:

 1008-7        (b)  A municipality may contract with a county in which the

 1008-8  municipality is located or the department [Texas Department of

 1008-9  Transportation] to provide information to the county or department

1008-10  necessary to make a determination under Subsection (a).

1008-11        (c)  Section 702.004, Transportation Code, is repealed to

1008-12  conform to the repeal of Sections 2(b) and 5, Article 6687c,

1008-13  Revised Statutes, by Sections 5 and 7, Chapter 434 (S.B. No. 1504),

1008-14  Acts of the 74th Legislature, Regular Session, 1995.

1008-15        (d)  Section 702.005, Transportation Code, is renumbered as

1008-16  Section 702.004 of that code and amended to conform to the repeal

1008-17  of Section 2(b) and the amendment of Section 3, Article 6687c,

1008-18  Revised Statutes, by Section 5, Chapter 434 (S.B. No. 1504), Acts

1008-19  of the 74th Legislature, Regular Session, 1995, to read as follows:

1008-20        Sec. 702.004. [Sec. 702.005.]  WARNING; CITATION.  (a)  A

1008-21  peace officer authorized to issue citations in a municipality that

1008-22  has a contract under Section 702.003 [or 702.004] shall issue a

1008-23  written warning to each person to whom the officer issues a

1008-24  citation for a violation of a traffic law in the municipality.

 1009-1        (b)  The [If the municipality has contracted under Section

 1009-2  702.003, the] warning must state that if the person fails to appear

 1009-3  in court as provided by law for the prosecution of the offense or

 1009-4  fails to pay a fine for the violation, the person might not be

 1009-5  permitted to register a motor vehicle in this state.

 1009-6        (c)  [If the municipality has contracted under Section

 1009-7  702.004, the warning must state that if the person fails to appear

 1009-8  in court as provided by law for the prosecution of the offense or

 1009-9  fails to pay a fine for the violation:]

1009-10              [(1)  the driver's license or permit of the person is

1009-11  subject to revocation, if the person has a driver's license or

1009-12  permit; or]

1009-13              [(2)  the person's privilege to operate a motor vehicle

1009-14  is subject to revocation and the person may become ineligible to be

1009-15  issued a driver's license in this state if the person does not have

1009-16  a driver's license but is driving under a privilege authorized by

1009-17  state law.]

1009-18        [(d)  If a municipality has contracted under Sections 702.003

1009-19  and 702.004, the warning must contain the information required by

1009-20  both Subsections (b) and (c).]

1009-21        [(e)]  The warning required by this section may be printed on

1009-22  the citation.

1009-23        (e)  Sections 5 and 6, Chapter 434 (S.B. No. 1504), Acts of

1009-24  the 74th Legislature, Regular Session, 1995, are repealed.

 1010-1        SECTION 30.161.  (a)  Subtitle I, Title 7, Transportation

 1010-2  Code, is amended to  codify Article 6687d, Revised Statutes, as

 1010-3  added by Section 1, Chapter 434 (S.B. No. 1504), Acts of the 74th

 1010-4  Legislature, Regular Session, 1995, by adding Chapter 706 to read

 1010-5  as follows:

 1010-6   CHAPTER 706.  DENIAL OF RENEWAL OF LICENSE FOR FAILURE TO APPEAR

 1010-7        Sec. 706.001.  DEFINITIONS.  In this chapter:

 1010-8              (1)  "Complaint" means a notice of an offense as

 1010-9  described by Article 27.14(d) or 45.01, Code of Criminal Procedure.

1010-10              (2)  "Department" means the Department of Public

1010-11  Safety.

1010-12              (3)  "Driver's license" has the meaning assigned by

1010-13  Section 521.001.

1010-14              (4)  "Political subdivision" means a municipality or

1010-15  county.

1010-16              (5)  "Traffic law" means a statute or ordinance, a

1010-17  violation of which is a misdemeanor punishable by a fine in an

1010-18  amount not to exceed $1,000, that regulates:

1010-19                    (A)  an operator's conduct or condition while

1010-20  operating a motor vehicle on a street or highway; or

1010-21                    (B)  the condition of a motor vehicle while it is

1010-22  being operated on a street or highway.

1010-23        Sec. 706.002.  CONTRACT WITH DEPARTMENT.  (a)  A political

1010-24  subdivision may contract with the department to provide information

 1011-1  necessary for the department to deny renewal of the driver's

 1011-2  license of a person who fails to appear for a complaint, citation,

 1011-3  or court order to pay a fine involving a violation of a traffic

 1011-4  law.

 1011-5        (b)  A contract under this section:

 1011-6              (1)  must be made in accordance with Chapter 791,

 1011-7  Government Code; and

 1011-8              (2)  is subject to the ability of the parties to

 1011-9  provide or pay for the services required under the contract.

1011-10        Sec. 706.003.  WARNING; CITATION.  (a)  If a political

1011-11  subdivision has contracted with the department, a peace officer

1011-12  authorized to issue a citation in the jurisdiction of the political

1011-13  subdivision shall issue a written warning to each person to whom

1011-14  the officer issues a citation for a violation of a traffic law in

1011-15  the jurisdiction of the political subdivision.

1011-16        (b)  The warning under Subsection (a):

1011-17              (1)  is in addition to any other warning required by

1011-18  law;

1011-19              (2)  must state in substance that if the person fails

1011-20  to appear in court as provided by law for the prosecution of the

1011-21  offense, the person may be denied renewal of the person's driver's

1011-22  license; and

1011-23              (3)  may be printed on the same instrument as the

1011-24  citation.

 1012-1        Sec. 706.004.  DENIAL OF RENEWAL OF DRIVER'S LICENSE.  (a)

 1012-2  If a political subdivision has contracted with the department, on

 1012-3  receiving the necessary information from the political subdivision

 1012-4  the department may deny renewal of the person's driver's license

 1012-5  for failure to appear based on a complaint, citation, or court

 1012-6  order to pay a fine involving a violation of a traffic law.

 1012-7        (b)  The information must include:

 1012-8              (1)  the name, date of birth, and driver's license

 1012-9  number of the person;

1012-10              (2)  the nature and date of the alleged violation;

1012-11              (3)  a statement that the person failed to appear as

1012-12  required by law for a traffic violation; and

1012-13              (4)  any other information required by the department.

1012-14        Sec. 706.005.  NOTICE TO DEPARTMENT.  A political subdivision

1012-15  shall notify the department that there is no cause to continue to

1012-16  deny renewal of a person's driver's license based on the person's

1012-17  previous failure to appear for a traffic violation, on payment of a

1012-18  fee as provided by Section 706.006 and:

1012-19              (1)  the entry of a judgment against the person;

1012-20              (2)  the perfection of an appeal of the case for which

1012-21  the warrant of arrest was issued;

1012-22              (3)  the dismissal of the charge for which the warrant

1012-23  of arrest was issued;

1012-24              (4)  the acquittal of the charge on which the person

 1013-1  failed to appear;

 1013-2              (5)  the posting of bond or the giving of other

 1013-3  security to reinstate the charge for which the warrant was issued;

 1013-4  or

 1013-5              (6)  the payment of the fine owed on an outstanding

 1013-6  court order to pay a fine.

 1013-7        Sec. 706.006.  ADMINISTRATIVE FEE.  (a)  Unless a person has

 1013-8  been acquitted of the traffic offense for which the person failed

 1013-9  to appear for a complaint, citation, or court order to pay a fine

1013-10  involving a violation of a traffic law, the political subdivision

1013-11  shall require the person to pay an administrative fee of $30 for

1013-12  each violation for which the person failed to appear.

1013-13        (b)  The fee required by Subsection (a) is in addition to any

1013-14  other fee required by law.

1013-15        Sec. 706.007.  RECORDS RELATING TO FEES; DISPOSITION OF FEES.

1013-16  (a)  An officer collecting a fee under Section 706.006 shall:

1013-17              (1)  keep separate records of the money; and

1013-18              (2)  deposit the money in the appropriate municipal or

1013-19  county treasury.

1013-20        (b)  The custodian of the municipal or county treasury may:

1013-21              (1)  deposit each fee collected under Section 706.006

1013-22  in an interest-bearing account; and

1013-23              (2)  retain for the municipality or county the interest

1013-24  earned on money in the account.

 1014-1        (c)  The custodian shall keep records of money received and

 1014-2  disbursed under this section and shall provide an annual report, in

 1014-3  the form approved by the comptroller, of all money received and

 1014-4  disbursed under this section to:

 1014-5              (1)  the comptroller;

 1014-6              (2)  the department; and

 1014-7              (3)  another entity as provided by interlocal contract.

 1014-8        (d)  Of each fee collected under Section 706.006, the

 1014-9  custodian of a municipal or county treasury shall:

1014-10              (1)  send $20 to the comptroller on or before the last

1014-11  day of each calendar quarter; and

1014-12              (2)  deposit the remainder to the credit of the general

1014-13  fund of the municipality or county.

1014-14        (e)  Of each $20 received by the comptroller, the comptroller

1014-15  shall deposit $10 to the credit of the department to implement this

1014-16  chapter.

1014-17        Sec. 706.008.  CONTRACT WITH PRIVATE VENDOR; COMPENSATION.

1014-18  (a)  The department may contract with a private vendor to implement

1014-19  this chapter.

1014-20        (b)  The vendor performing the contract may be compensated by

1014-21  each political subdivision that has contracted with the department.

1014-22        (c)  Except for an action based on a citation issued by a

1014-23  peace officer employed by the department, the vendor may not be

1014-24  compensated with state money.

 1015-1        Sec. 706.009.  VENDOR TO PROVIDE CUSTOMER SUPPORT SERVICES.

 1015-2  (a)  A vendor must establish and maintain customer support services

 1015-3  as directed by the department, including a toll-free telephone

 1015-4  service line to answer and resolve questions from persons who are

 1015-5  denied renewal of a driver's license under this chapter.

 1015-6        (b)  The vendor shall comply with terms, policies, and rules

 1015-7  adopted by the department to administer this chapter.

 1015-8        Sec. 706.010.  USE OF INFORMATION COLLECTED BY VENDOR.

 1015-9  Information collected under this chapter by a vendor may not be

1015-10  used by a person other than the department, the political

1015-11  subdivision, or a vendor as provided by this chapter.

1015-12        Sec. 706.011.  LIABILITY OF STATE OR POLITICAL SUBDIVISION.

1015-13  (a)  An action for damages may not be brought against the state or

1015-14  a political subdivision based on an act or omission under this

1015-15  chapter, including the denial of renewal of a driver's license.

1015-16        (b)  The state or a political subdivision may not be held

1015-17  liable in damages based on an act or omission under this chapter,

1015-18  including the denial of renewal of a driver's license.

1015-19        Sec. 706.012.  RULES.  The department may adopt rules to

1015-20  implement this chapter.

1015-21        (b)  Article 6687d, Revised Statutes, as added by Section 1,

1015-22  Chapter 434 (S.B. No. 1504), Acts of the 74th Legislature, Regular

1015-23  Session, 1995, is repealed.

1015-24        SECTION 30.162.  (a)  Subchapter A, Chapter 723,

 1016-1  Transportation Code, is amended to conform to Section 1(15),

 1016-2  Chapter 1058 (H.B. No. 3050), Acts of the 74th Legislature, Regular

 1016-3  Session, 1995, by adding Section 723.003 to read as follows:

 1016-4        Sec. 723.003.  TRAFFIC SAFETY FUND ACCOUNT.  (a)  The traffic

 1016-5  safety fund account is an account in the general revenue fund.

 1016-6  Money received from any source to implement this chapter shall be:

 1016-7              (1)  deposited to the credit of the traffic safety fund

 1016-8  account; and

 1016-9              (2)  spent with other state money spent to implement

1016-10  this chapter in the manner in which the other state money is spent.

1016-11        (b)  A payment from the traffic safety fund account shall be

1016-12  made in compliance with this chapter and rules adopted by the

1016-13  governor.

1016-14        (b)  Section 723.032(b), Transportation Code, is amended to

1016-15  conform to Section 1(15), Chapter 1058 (H.B. No. 3050), Acts of the

1016-16  74th Legislature, Regular Session, 1995, to read as follows:

1016-17        (b)  To implement this chapter, a contractual payment may be

1016-18  made from money in the traffic safety fund account for a service

1016-19  rendered or property furnished by a private person or an agency

1016-20  that is not a legal or political subdivision of this state.

1016-21        SECTION 30.163.  Sections 724.035(b) and (c), Transportation

1016-22  Code, are amended to correct references to read as follows:

1016-23        (b)  The period of suspension or denial is 180 days if the

1016-24  person's driving record shows one or more alcohol-related or

 1017-1  drug-related enforcement contacts, as defined by Section

 1017-2  524.001(2)(B) or (C) [524.001], during the five years preceding the

 1017-3  date of the person's arrest.

 1017-4        (c)  The period of suspension or denial is one year if the

 1017-5  person's driving record shows one or more alcohol-related or

 1017-6  drug-related enforcement contacts, as defined by Section

 1017-7  524.001(2)(A) [524.001], during the five years preceding the date

 1017-8  of the person's arrest.

 1017-9        SECTION 30.164.  Section 724.041(g), Transportation Code, is

1017-10  amended to correct references to read as follows:

1017-11        (g)  An administrative hearing under this section is governed

1017-12  by Sections 524.032(b) and (c), 524.035(e), 524.037(a), and

1017-13  524.040[-524.044].

1017-14        SECTION 30.165.  Section 724.063, Transportation Code, is

1017-15  amended to correct a reference to read as follows:

1017-16        Sec. 724.063.  Admissibility of Alcohol Concentration or

1017-17  Presence of Substance.  Evidence of alcohol concentration or the

1017-18  presence of a controlled substance, drug, dangerous drug, or other

1017-19  substance obtained by an analysis authorized by Section 724.014

1017-20  [this section] is admissible in a civil or criminal action.

1017-21        SECTION 30.166.  Section 726.001(b), Transportation Code, is

1017-22  amended to conform to the transfer of motor carrier registration

1017-23  responsibilities from the Railroad Commission of Texas to the Texas

1017-24  Department of Transportation by Chapter 705 (S.B. No. 3), Acts of

 1018-1  the 74th Legislature, Regular Session, 1995, to read as follows:

 1018-2        (b)  This section or an ordinance adopted under this section

 1018-3  [it] does not apply to a motor vehicle, trailer, or semitrailer

 1018-4  operated under a registration certificate issued under Chapter 643

 1018-5  [or permit from the Railroad Commission of Texas].

 1018-6        SECTION 30.167.  Section 729.001(a), Transportation Code, is

 1018-7  amended to conform to the repeal of the law from which Sections

 1018-8  502.408(b) and 502.409(c) of that code were derived by Section

 1018-9  9(6), Chapter 34 (S.B. No. 178), Acts of the 74th Legislature,

1018-10  Regular Session, 1995, to read as follows:

1018-11        (a)  A person who is at least 14 years of age but younger

1018-12  than 17 years of age commits an offense if the person operates a

1018-13  motor vehicle on a public road or highway, a street or alley in a

1018-14  municipality, or a public beach in violation of any traffic law of

1018-15  this state, including:

1018-16              (1)  Chapter 502, other than Section 502.282[,

1018-17  502.408(b), 502.409(c),] or 502.412;

1018-18              (2)  Chapter 521;

1018-19              (3)  Subtitle C;

1018-20              (4)  Chapter 601;

1018-21              (5)  Chapter 621;

1018-22              (6)  Chapter 661; and

1018-23              (7)  Chapter 681.

1018-24        SECTION 30.168.  (a)  Section 729.003(d), Transportation

 1019-1  Code, is amended to conform to Section 8, Chapter 434 (S.B. No.

 1019-2  1504), Acts of the 74th Legislature, Regular Session, 1995, to read

 1019-3  as follows:

 1019-4        (d)  A court shall report to the Department of Public Safety

 1019-5  a person charged with a traffic offense under this chapter who does

 1019-6  not appear before the court as required by law.  In addition to any

 1019-7  other action or remedy provided by law, the department may deny

 1019-8  renewal of the person's driver's license under Section 521.310 or

 1019-9  Chapter 706.  The court also shall report to the department on

1019-10  final disposition of the case.

1019-11        (b)  Section 8, Chapter 434 (S.B. No. 1504), Acts of the 74th

1019-12  Legislature, Regular Session, 1995, is repealed.

1019-13        SECTION 30.169.  Section 750.001, Transportation Code, is

1019-14  repealed to conform to the repeal of the law from which it was

1019-15  derived by Section 58(e), Chapter 260 (S.B. No. 1), Acts of the

1019-16  74th Legislature, Regular Session, 1995.

1019-17        SECTION 30.170.  Title 8, Transportation Code, which was

1019-18  reserved for the codification of certain laws relating to the

1019-19  regulation of motor carriers, is repealed to conform to the repeal

1019-20  of those laws by Chapter 705 (S.B. No. 3), Acts of the 74th

1019-21  Legislature, Regular Session, 1995.

1019-22        SECTION 30.171.  Section 48.03, Alcoholic Beverage Code, is

1019-23  amended to conform to the abolition of the Texas High-Speed Rail

1019-24  Authority by Chapter 401 (H.B. No.  2390), Acts of the 74th

 1020-1  Legislature, Regular Session, 1995, to read as follows:

 1020-2        Sec. 48.03.  Eligibility for Permit.  The commission or

 1020-3  administrator may issue a passenger train beverage permit to any

 1020-4  corporation organized under Title 112, Revised Statutes, or under

 1020-5  the Rail Passenger Service Act of 1970, as amended (45 U.S.C.A.

 1020-6  Section 501 et seq.), [or to a corporation holding a franchise

 1020-7  issued by the Texas High-Speed Rail Authority,] operating a

 1020-8  commercial passenger train service in or through the state.

 1020-9  Application and payment of the fee shall be made directly to the

1020-10  commission.

1020-11        SECTION 30.172.  Section 13A, Texas Driver and Traffic Safety

1020-12  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),

1020-13  as added by Section 15, Chapter 165 (S.B. No.  971), Acts of the

1020-14  74th Legislature, Regular Session, 1995, is repealed to conform to

1020-15  the repeal of Sections 4(b) and (c), Chapter 559, Acts of the 73rd

1020-16  Legislature, 1993, by Section 58(f), Chapter 260 (S.B. No. 1), Acts

1020-17  of the 74th Legislature, Regular Session, 1995.

1020-18        SECTION 30.173.  Section 41.03, Alcoholic Beverage Code, is

1020-19  amended to conform to the revision of Article 6675c, Revised

1020-20  Statutes, as Chapter 643, Transportation Code, by this Act to read

1020-21  as follows:

1020-22        Sec. 41.03.  Eligibility for Permit.  A carrier permit may be

1020-23  issued to:

1020-24              (1)  a water carrier;

 1021-1              (2)  an airline;

 1021-2              (3)  a railway;

 1021-3              (4)  a motor carrier registered under Chapter 643,

 1021-4  Transportation Code [Article 6675c, Revised Statutes]; or

 1021-5              (5)  a common carrier operating under a certificate

 1021-6  issued by the Interstate Commerce Commission.

 1021-7        SECTION 30.174.  Section 67.01, Alcoholic Beverage Code, is

 1021-8  amended to conform to the revision of Article 6675c, Revised

 1021-9  Statutes, as Chapter 643, Transportation Code, by this Act to read

1021-10  as follows:

1021-11        Sec. 67.01.  Authorized Activities.  A holder of an

1021-12  importer's license may import beer into this state only from the

1021-13  holder of a nonresident manufacturer's license.  The beer may be

1021-14  transported by a railway carrier, a motor carrier registered under

1021-15  Chapter 643, Transportation Code [Article 6675c, Revised Statutes],

1021-16  or by a common motor carrier operated under a certificate issued by

1021-17  the Interstate Commerce Commission.  Each carrier must hold a

1021-18  carrier's permit issued under Chapter 41 of this code.  All

1021-19  provisions of Chapter 41 relating to the transportation of liquor

1021-20  also apply to the transportation of beer.  A carrier may not

1021-21  transport beer into the state unless it is consigned to an

1021-22  importer.

1021-23        SECTION 30.175.  Section 108.08(a), Alcoholic Beverage Code,

1021-24  is amended to conform to Chapter 165, Acts of the 74th Legislature,

 1022-1  Regular Session, 1995, to read as follows:

 1022-2        (a)  Notwithstanding any other provision of this code or any

 1022-3  rule adopted under the authority of this code, the provisions of

 1022-4  this code relating to the regulation of or limitations on outdoor

 1022-5  advertising signage, advertising revenue, or advertising signage in

 1022-6  or on a licensed premises do not apply to an entity which owns a

 1022-7  professional sports franchise which plays a majority of its home

 1022-8  games in a municipally owned or leased regional economic

 1022-9  development facility that is in a station or terminal complex of a

1022-10  rapid transit authority and to which Subchapter E, Chapter 451,

1022-11  Transportation Code [Subsection (e), Section 6C, Chapter 141, Acts

1022-12  of the 63rd Legislature, Regular Session, 1973 (Article 1118x,

1022-13  Vernon's Texas Civil Statutes)], applies or to such a facility.

1022-14        SECTION 30.176.  Section 2A.104(a), Business & Commerce Code,

1022-15  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1022-16  Regular Session, 1995, to read as follows:

1022-17        (a)  A lease, although subject to this chapter, is also

1022-18  subject to any applicable:

1022-19              (1)  certificate of title statute of this state,

1022-20  including Chapter 501, Transportation Code [the provisions of the

1022-21  Certificate of Title Act (Article 6687-1, Vernon's Texas Civil

1022-22  Statutes)], Chapter 31, Parks and Wildlife Code, and Section 19,

1022-23  Texas Manufactured Housing Standards Act (Article 5221f, Vernon's

1022-24  Texas Civil Statutes);

 1023-1              (2)  certificate of title statute of another

 1023-2  jurisdiction (Section 2A.105); or

 1023-3              (3)  consumer law of this state, both decisional and

 1023-4  statutory, including, to the extent that they apply to a lease

 1023-5  transaction, [the provisions of] Chapters 17 and 35[, Business &

 1023-6  Commerce Code,] and the Texas Manufactured Housing Standards Act

 1023-7  (Article 5221f, Vernon's Texas Civil Statutes).

 1023-8        SECTION 30.177.  Section 9.302(c), Business & Commerce Code,

 1023-9  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1023-10  Regular Session, 1995, to read as follows:

1023-11        (c)  The filing of a financing statement otherwise required

1023-12  by this Chapter is not necessary or effective to perfect a security

1023-13  interest in property subject to:

1023-14              (1)  a statute or treaty of the United States which

1023-15  provides for a national or international registration or a national

1023-16  or international certificate of title or which specifies a place of

1023-17  filing different from that specified in this Chapter for filing of

1023-18  the security interest; or

1023-19              (2)  the following statutes of this state:  Chapter

1023-20  501, Transportation Code[; the Certificate of Title Act, as amended

1023-21  (Article 6687-1, Vernon's Texas Civil Statutes)]; Subchapter B-1,

1023-22  Chapter 31, Parks and Wildlife Code, as amended, relating to the

1023-23  certificates of title for motorboat and outboard motors; the Texas

1023-24  Manufactured Housing Standards Act, as amended (Article 5221f,

 1024-1  Vernon's Texas Civil Statutes); but during any period in which

 1024-2  collateral is inventory held for sale by a person who is in the

 1024-3  business of selling goods of that kind, the filing provisions of

 1024-4  this Chapter (Subchapter D)  apply to a security interest in that

 1024-5  collateral created by him as debtor; or Subchapter A, Chapter 35,

 1024-6  Title 4, [Business & Commerce Code,] relating to utility security

 1024-7  instruments; or

 1024-8              (3)  a certificate of title statute of another

 1024-9  jurisdiction under the law of which indication of a security

1024-10  interest on the certificate is required as a condition of

1024-11  perfection (Subsection (b) of Section 9.103).

1024-12        SECTION 30.178.  Section 35.46(a)(1), Business & Commerce

1024-13  Code, is amended to conform to Chapter 165, Acts of the 74th

1024-14  Legislature, Regular Session, 1995, to read as follows:

1024-15              (1)  "Motor vehicle" has the meaning assigned by

1024-16  Section 541.201, Transportation Code [2(b), Uniform Act Regulating

1024-17  Traffic on Highways (Article 6701d, Vernon's Texas Civil

1024-18  Statutes)].

1024-19        SECTION 30.179.  Section 84.004(c), Civil Practice and

1024-20  Remedies Code, is amended to conform to Chapter 165, Acts of the

1024-21  74th Legislature, Regular Session, 1995, to read as follows:

1024-22        (c)  A volunteer of a charitable organization is liable to a

1024-23  person for death, damage, or injury to the person or his property

1024-24  proximately caused by any act or omission arising from the

 1025-1  operation or use of any motor-driven equipment, including an

 1025-2  airplane, to the extent insurance coverage is required by Chapter

 1025-3  601, Transportation Code [Section 1A, Texas Motor Vehicle

 1025-4  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil

 1025-5  Statutes)], and to the extent of any existing insurance coverage

 1025-6  applicable to the act or omission.

 1025-7        SECTION 30.180.  Section 87.005, Civil Practice and Remedies

 1025-8  Code, as added by Chapter 604, Acts of the 74th Legislature,

 1025-9  Regular Session, 1995, is renumbered and is amended to conform to

1025-10  Chapter 165, Acts of the 74th Legislature, Regular Session, 1995,

1025-11  to read as follows:

1025-12        Sec. 86.005 [87.005].  CERTAIN TRAFFIC LAW VIOLATIONS

1025-13  EXCLUDED.  This chapter does not apply to a claim arising from an

1025-14  offense defined by Subtitle C, Title 7, Transportation Code [in the

1025-15  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's

1025-16  Texas Civil Statutes)].

1025-17        SECTION 30.181.  The heading to Subchapter I, Chapter 56,

1025-18  Education Code, is amended to conform to Chapter 165, Acts of the

1025-19  74th Legislature, Regular Session, 1995, to read as follows:

1025-20       SUBCHAPTER I.  TEXAS [STATE] DEPARTMENT OF [HIGHWAYS AND

1025-21           PUBLIC] TRANSPORTATION CONDITIONAL GRANT PROGRAM

1025-22        SECTION 30.182.  Section 51.02(16), Family Code, is amended

1025-23  to conform to Chapter 165, Acts of the 74th Legislature, Regular

1025-24  Session, 1995, to read as follows:

 1026-1              (16)  "Traffic offense" means:

 1026-2                    (A)  a violation of a penal statute cognizable

 1026-3  under Chapter 729, Transportation Code [302, Acts of the 55th

 1026-4  Legislature, Regular Session, 1957, as amended (Article 6701l-4,

 1026-5  Vernon's Texas Civil Statutes)]; or

 1026-6                    (B)  a violation of a motor vehicle traffic

 1026-7  ordinance of an incorporated city or town in this state.

 1026-8        SECTION 30.183.  Sections 54.042(a) and (c), Family Code, are

 1026-9  amended to conform to Chapter 165, Acts of the 74th Legislature,

1026-10  Regular Session, 1995, to read as follows:

1026-11        (a)  A juvenile court, in a disposition hearing under Section

1026-12  54.04 of this code, shall:

1026-13              (1)  order the Department of Public Safety to suspend a

1026-14  child's driver's license or permit, or if the child does not have a

1026-15  license or permit, to deny the issuance of a license or permit to

1026-16  the child if the court finds that the child has engaged in conduct

1026-17  that violates a law of this state enumerated in Section 521.342(a),

1026-18  Transportation Code [24(a-1), Chapter 173, Acts of the 47th

1026-19  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas

1026-20  Civil Statutes)]; or

1026-21              (2)  notify the Department of Public Safety of the

1026-22  adjudication, if the court finds that the child has engaged in

1026-23  conduct that violates a law of this state enumerated in Section

1026-24  521.372(a), Transportation Code [24B(b), Chapter 173, Acts of the

 1027-1  47th Legislature, Regular Session, 1941 (Article 6687b, Vernon's

 1027-2  Texas Civil Statutes)].

 1027-3        (c)  A child whose driver's license or permit has been

 1027-4  suspended or denied pursuant to this section may, if the child is

 1027-5  otherwise eligible for, and fulfils the requirements for issuance

 1027-6  of, a provisional driver's license or permit under Chapter 521,

 1027-7  Transportation Code [173, Acts of the 47th Legislature, Regular

 1027-8  Session, 1941, as amended (Article 6687b, Vernon's Texas Civil

 1027-9  Statutes)], apply for and receive an occupational license in

1027-10  accordance with Subchapter L of that chapter [the provisions of

1027-11  Section 23A, Chapter 173, Acts of the 47th Legislature, Regular

1027-12  Session, 1941, as amended (Article 6687b, Vernon's Texas Civil

1027-13  Statutes)].

1027-14        SECTION 30.184.  Section 232.011(h), Family Code, is amended

1027-15  to conform to Chapter 165, Acts of the 74th Legislature, Regular

1027-16  Session, 1995, to read as follows:

1027-17        (h)  The denial or suspension of a driver's license under

1027-18  this chapter is governed by this chapter and not by the general

1027-19  licensing provisions of Chapter 521, Transportation Code [173, Acts

1027-20  of the 47th Legislature, Regular Session, 1941 (Article 6687b,

1027-21  Vernon's Texas Civil Statutes)].

1027-22        SECTION 30.185.  Section 25.2293(c), Government Code, is

1027-23  amended to conform to Chapter 165, Acts of the 74th Legislature,

1027-24  Regular Session, 1995, to read as follows:

 1028-1        (c)  A statutory probate court has eminent domain

 1028-2  jurisdiction.  All actions, cases, matters, or proceedings of

 1028-3  eminent domain arising under Chapter 21, Property Code, or under

 1028-4  Section 251.101, Transportation Code [4.302, County Road and Bridge

 1028-5  Act (Article 6702-1, Vernon's Texas Civil Statutes)], shall be

 1028-6  filed and docketed in Probate Court No. 1 of Travis County.  A

 1028-7  statutory probate court may transfer an eminent domain proceeding

 1028-8  to a county court at law in the county.

 1028-9        SECTION 30.186.  Section 51.702(b), Government Code, is

1028-10  amended to conform to Chapter 165, Acts of the 74th Legislature,

1028-11  Regular Session, 1995, to read as follows:

1028-12        (b)  In addition to other court costs, a person shall pay $15

1028-13  as a court cost on conviction of any criminal offense in a

1028-14  statutory county court, including cases in which probation or

1028-15  deferred adjudication is granted.  A conviction that arises under

1028-16  Chapter 521, Transportation Code [173, Acts of the 47th

1028-17  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas

1028-18  Civil Statutes)], or a conviction under Subtitle C, Title 7,

1028-19  Transportation Code, [the Uniform Act Regulating Traffic on

1028-20  Highways (Article 6701d, Vernon's Texas Civil Statutes)] is

1028-21  included, except that a conviction arising under any law that

1028-22  regulates pedestrians or the parking of motor vehicles is not

1028-23  included.

1028-24        SECTION 30.187.  Section 56.001(b), Government Code, is

 1029-1  amended to conform to Chapter 165, Acts of the 74th Legislature,

 1029-2  Regular Session, 1995, to read as follows:

 1029-3        (b)  In addition to other court costs, a person shall pay $1

 1029-4  as a court cost on conviction of any criminal offense, including

 1029-5  cases in which probation or deferred adjudication is granted or in

 1029-6  which final disposition in the case is deferred.  A conviction that

 1029-7  arises under Chapter 521, Transportation Code [173, Acts of the

 1029-8  47th Legislature, Regular Session, 1941 (Article 6687b, Vernon's

 1029-9  Texas Civil Statutes)], or a conviction under Subtitle C, Title 7,

1029-10  Transportation Code, [the Uniform Act Regulating Traffic on

1029-11  Highways (Article 6701d, Vernon's Texas Civil Statutes)] is

1029-12  included, except that a conviction arising under any law that

1029-13  regulates pedestrians or the parking of motor vehicles is not

1029-14  included.

1029-15        SECTION 30.188.  Section 316.033, Government Code, is amended

1029-16  to conform to the abolition of the Texas High-Speed Rail Authority

1029-17  by Chapter 401 (H.B. No. 2390), Acts of the 74th Legislature,

1029-18  Regular Session, 1995, to read as follows:

1029-19        Sec. 316.033.  Funds Excluded.  This subchapter applies to

1029-20  funds established by state law, but does not apply to any portion

1029-21  of a fund derived from constitutionally dedicated revenues or to

1029-22  funds or fund balances that are:

1029-23              (1)  dedicated by the Texas Constitution;

1029-24              (2)  held in trust or escrow for the benefit of any

 1030-1  person or entity other than a state agency;

 1030-2              (3)  pledged to the payment of bonds, notes, or other

 1030-3  debts;

 1030-4              (4)  derived from gifts, donations, or endowments made

 1030-5  to state agencies or institutions of higher education;

 1030-6              (5)  pledged to the capital trust fund to be used for

 1030-7  construction; or

 1030-8              (6)  maintained by institutions of higher education,

 1030-9  including the Texas State Technical College System[; or]

1030-10              [(7)  maintained by the Texas High-Speed Rail

1030-11  Authority].

1030-12        SECTION 30.189.  Sections 325.0081 and 325.0082, Government

1030-13  Code, are repealed as duplicative of Sections 451.453 and 452.453,

1030-14  Transportation Code.

1030-15        SECTION 30.190.  Section 411.082(2), Government Code, is

1030-16  amended to conform to Chapter 165, Acts of the 74th Legislature,

1030-17  Regular Session, 1995, to read as follows:

1030-18              (2)  "Criminal history record information" means

1030-19  information collected about a person by a criminal justice agency

1030-20  that consists of identifiable descriptions and notations of

1030-21  arrests, detentions, indictments, informations, and other formal

1030-22  criminal charges and their dispositions.  The term does not

1030-23  include:

1030-24                    (A)  identification information, including

 1031-1  fingerprint records, to the extent that the identification

 1031-2  information does not indicate involvement of the person in the

 1031-3  criminal justice system; or

 1031-4                    (B)  driving record information maintained by the

 1031-5  department under Subchapter C, Chapter 521, Transportation Code

 1031-6  [Section 21, Chapter 173, Acts of the 47th Legislature, Regular

 1031-7  Session, 1941 (Article 6687b, Vernon's Texas Civil Statutes)].

 1031-8        SECTION 30.191.  Section 411.0095(e), Government Code, is

 1031-9  amended to conform to Chapter 165, Acts of the 74th Legislature,

1031-10  Regular Session, 1995, to read as follows:

1031-11        (e)  In this section, "vehicle" has the meaning assigned by

1031-12  Section 541.201, Transportation Code [2, Uniform Act Regulating

1031-13  Traffic on Highways (Article 6701d, Vernon's Texas Civil

1031-14  Statutes)].

1031-15        SECTION 30.192.  Section 415.082(b), Government Code, is

1031-16  amended to conform to Chapter 165, Acts of the 74th Legislature,

1031-17  Regular Session, 1995, to read as follows:

1031-18        (b)  This section applies to a conviction for an offense

1031-19  under the state traffic laws only if the offense is defined in:

1031-20              (1)  Chapter 521, Transportation Code [173, Acts of the

1031-21  47th Legislature, Regular Session, 1941 (Article 6687b, Vernon's

1031-22  Texas Civil Statutes)]; or

1031-23              (2)  Subtitle C, Title 7, Transportation Code [the

1031-24  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's

 1032-1  Texas Civil Statutes)], except:

 1032-2                    (A)  Subchapter G, Chapter 545, Transportation

 1032-3  Code;

 1032-4                    (B)  Section 545.404, Transportation Code; and

 1032-5                    (C)  Sections 552.002-552.009, Transportation

 1032-6  Code [Sections 34, 76, 77, 78, 79, 80, 81, 93, 94, 95, 96, and 97

 1032-7  of that Act].

 1032-8        SECTION 30.193.  Section 551.122, Government Code, is

 1032-9  repealed to conform to the abolition of the Texas High-Speed Rail

1032-10  Authority by Chapter 401 (H.B. No. 2390), Acts of the 74th

1032-11  Legislature, Regular Session, 1995.

1032-12        SECTION 30.194.  Section 555.003, Government Code, is amended

1032-13  to conform to Chapter 165, Acts of the 74th Legislature, Regular

1032-14  Session, 1995, to read as follows:

1032-15        Sec. 555.003.  Exception.  This chapter does not apply to

1032-16  files that relate to drivers of motor vehicles and that are

1032-17  maintained by the Department of Public Safety under Subchapter C,

1032-18  Chapter 521, Transportation Code [Section 21, Chapter 173, Acts of

1032-19  the 47th Legislature, Regular Session, 1941  (Article 6687b,

1032-20  Vernon's Texas Civil Statutes)].

1032-21        SECTION 30.195.  Section 612.001(b), Government Code, is

1032-22  amended to conform to Chapter 165, Acts of the 74th Legislature,

1032-23  Regular Session, 1995, to read as follows:

1032-24        (b)  The liability coverage provided under this section must

 1033-1  be in amounts not less than those required by Chapter 601,

 1033-2  Transportation Code, [the Texas Motor Vehicle Safety-Responsibility

 1033-3  Act (Article 6701h, Vernon's Texas Civil Statutes)] to provide

 1033-4  evidence [proof] of financial responsibility.

 1033-5        SECTION 30.196.  Section 791.028(a)(2), Government Code, is

 1033-6  amended to conform to Chapter 165, Acts of the 74th Legislature,

 1033-7  Regular Session, 1995, to read as follows:

 1033-8              (2)  "Transportation corporation" means a corporation

 1033-9  created under Chapter 431, Transportation Code [the Texas

1033-10  Transportation Corporation Act (Article 1528l, Vernon's Texas Civil

1033-11  Statutes)].

1033-12        SECTION 30.197.  Section 2001.221, Government Code, is

1033-13  amended to conform to Chapter 165, Acts of the 74th Legislature,

1033-14  Regular Session, 1995, to read as follows:

1033-15        Sec. 2001.221.  Driver's Licenses.  This chapter does not

1033-16  apply to a suspension, revocation, cancellation, denial, or

1033-17  disqualification of a driver's license or commercial driver's

1033-18  license as authorized by:

1033-19              (1)  Subchapter N, Chapter 521, Transportation Code,

1033-20  except Sections 521.296 and 521.297 of that subchapter, or by

1033-21  Subchapter O or P of that chapter [Article IV, Chapter 173, Acts of

1033-22  the 47th Legislature, Regular Session, 1941 (Article 6687b,

1033-23  Vernon's Texas Civil Statutes)];

1033-24              (2)  Chapter 522, Transportation Code [the Texas

 1034-1  Commercial Driver's License Act (Article 6687b-2, Revised

 1034-2  Statutes)];

 1034-3              (3)  Chapter 601, Transportation Code [the Texas Motor

 1034-4  Vehicle Safety-Responsibility Act (Article 6701h, Vernon's Texas

 1034-5  Civil Statutes)]; or

 1034-6              (4)  Section 13, Article 42.12, Code of Criminal

 1034-7  Procedure.

 1034-8        SECTION 30.198.  Section 2002.023, Government Code, is

 1034-9  amended to conform to Chapter 165, Acts of the 74th Legislature,

1034-10  Regular Session, 1995, to read as follows:

1034-11        Sec. 2002.023.  Exceptions.  This subchapter does not apply

1034-12  to:

1034-13              (1)  a suspension, revocation, cancellation, denial, or

1034-14  disqualification of a driver's license or commercial driver's

1034-15  license as authorized by:

1034-16                    (A)  Subchapter N [Article IV], Chapter 521,

1034-17  Transportation Code, except Sections 521.296 and 521.297 of that

1034-18  subchapter, or by Subchapter O or P of that chapter [173, Acts of

1034-19  the 47th Legislature, Regular Session, 1941 (Article 6687b,

1034-20  Vernon's Texas Civil Statutes)];

1034-21                    (B)  Chapter 522, Transportation Code [the Texas

1034-22  Commercial Driver's License Act (Article 6687b-2, Revised

1034-23  Statutes)];

1034-24                    (C)  Chapter 601, Transportation Code [the Texas

 1035-1  Motor Vehicle Safety-Responsibility Act (Article 6701h, Vernon's

 1035-2  Texas Civil Statutes)];

 1035-3                    (D)  Chapter 724, Transportation Code [434, Acts

 1035-4  of the 61st Legislature, Regular Session, 1969 (Article 6701l-5,

 1035-5  Vernon's Texas Civil Statutes)]; or

 1035-6                    (E)  Section 13, Article 42.12, Code of Criminal

 1035-7  Procedure;

 1035-8              (2)  matters related solely to the internal personnel

 1035-9  rules and practices of a state agency;

1035-10              (3)  the Texas Workforce [Employment] Commission, other

1035-11  than to matters of unemployment insurance maintained by the

1035-12  commission; or

1035-13              (4)  a rule or internal procedure of the Texas

1035-14  Department of Criminal Justice or Texas Board of Criminal Justice

1035-15  that applies to an inmate or any other person under the custody or

1035-16  control of the department or to an action taken under that rule or

1035-17  procedure.

1035-18        SECTION 30.199.  Section 2151.002(2), Government Code, is

1035-19  amended to conform to the abolition of the Texas High-Speed Rail

1035-20  Authority by Chapter 401 (H.B. No.  2390), Acts of the 74th

1035-21  Legislature, Regular Session, 1995, to read as follows:

1035-22              (2)  "State agency" means:

1035-23                    (A)  a department, commission, board, office, or

1035-24  other agency in the executive branch of state government created by

 1036-1  the state constitution or a state statute[, except the Texas

 1036-2  High-Speed Rail Authority];

 1036-3                    (B)  the supreme court, the court of criminal

 1036-4  appeals, a court of appeals, or the Texas Judicial Council; or

 1036-5                    (C)  a university system or an institution of

 1036-6  higher education as defined by Section 61.003, Education Code,

 1036-7  except a public junior college.

 1036-8        SECTION 30.200.  Section 2155.387, Government Code, is

 1036-9  amended to conform to Chapter 165, Acts of the 74th Legislature,

1036-10  Regular Session, 1995, to read as follows:

1036-11        Sec. 2155.387.  Payment for Road Construction Materials

1036-12  Delivered by Vehicle Exceeding Weight Limits.  A state agency that

1036-13  purchases road construction materials may pay for road construction

1036-14  materials delivered in a vehicle that exceeds the maximum gross

1036-15  weight authorized by law for the vehicle an amount computed using

1036-16  the lesser of:

1036-17              (1)  the actual weight of the load; or

1036-18              (2)  the weight determined by subtracting the weight of

1036-19  the vehicle from the sum of the maximum gross weight authorized by

1036-20  law for the vehicle and the tolerance allowance set for the gross

1036-21  weight of that vehicle by [Subdivision 1,] Section 621.403,

1036-22  Transportation Code [6, Chapter 42, General Laws, Acts of the 41st

1036-23  Legislature, 2nd Called Session, 1929 (Article 6701d-11, Vernon's

1036-24  Texas Civil Statutes)].

 1037-1        SECTION 30.201.  Section 2252.033, Government Code, is

 1037-2  amended to conform to Chapter 165, Acts of the 74th Legislature,

 1037-3  Regular Session, 1995, to read as follows:

 1037-4        Sec. 2252.033.  Exemptions.  This chapter does not apply to:

 1037-5              (1)  a public works contract executed before August 31,

 1037-6  1981;

 1037-7              (2)  a public works contract in which the total

 1037-8  contract price estimate at the time of execution of the contract is

 1037-9  less than $400,000; or

1037-10              (3)  a public works contract made by the Texas

1037-11  Department of Transportation under Subchapter A, Chapter 223,

1037-12  Transportation Code [186, General Laws, Acts of the 39th

1037-13  Legislature, Regular Session, 1925 (Article 6674a et seq., Vernon's

1037-14  Texas Civil Statutes)].

1037-15        SECTION 30.202.  Section 2305.071(b), Government Code, is

1037-16  amended to conform to Chapter 165, Acts of the 74th Legislature,

1037-17  Regular Session, 1995, to read as follows:

1037-18        (b)  The supervising state agency may allocate grant money

1037-19  among eligible applicants according to the following formula:

1037-20              (1)  one-third to eligible applicants created under[:]

1037-21                    [(A)]  Chapter 451, 452, or 453, Transportation

1037-22  Code, or a predecessor of those chapters [141, Acts of the 63rd

1037-23  Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas

1037-24  Civil Statutes);]

 1038-1                    [(B)  Chapter 683, Acts of the 66th Legislature,

 1038-2  Regular Session, 1979 (Article 1118y, Vernon's Texas Civil

 1038-3  Statutes); or]

 1038-4                    [(C)  Article 1118z, Revised Statutes];

 1038-5              (2)  one-third to eligible applicants that are in

 1038-6  urbanized areas with a population of more than 50,000 and that were

 1038-7  not created under a law specified in Subdivision (1); and

 1038-8              (3)  one-third to eligible applicants in rural areas of

 1038-9  the state and in urban areas with a population of 50,000 or less.

1038-10        SECTION 30.203.  Section 45.001, Health and Safety Code, is

1038-11  amended to conform to Chapter 165, Acts of the 74th Legislature,

1038-12  Regular Session, 1995, to read as follows:

1038-13        Sec. 45.001.  Definition.  In this chapter, "child passenger

1038-14  safety seat system" has the meaning assigned by Section 545.412,

1038-15  Transportation Code [107B, Uniform Act Regulating Traffic on

1038-16  Highways (Article 6701d, Vernon's Texas Civil Statutes)].

1038-17        SECTION 30.204.  Section 361.003(19), Health and Safety Code,

1038-18  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1038-19  Regular Session, 1995, to read as follows:

1038-20              (19)  "Motor vehicle" has the meaning assigned by

1038-21  Section 541.201, Transportation Code [2(b), Uniform Act Regulating

1038-22  Traffic on Highways (Article 6701d, Vernon's Texas Civil

1038-23  Statutes)].

1038-24        SECTION 30.205.  Section 361.014(a), Health and Safety Code,

 1039-1  is amended to conform to Chapter 165, Acts of the 74th Legislature,

 1039-2  Regular Session, 1995, to read as follows:

 1039-3        (a)  Revenue received by the commission under Section 361.013

 1039-4  shall be deposited in the state treasury to the credit of the

 1039-5  commission. Half of the revenue is dedicated to the commission's

 1039-6  municipal solid waste permitting and enforcement programs and

 1039-7  related support activities and to pay for activities that will

 1039-8  enhance the state's solid waste management program, including:

 1039-9              (1)  provision of funds for the municipal solid waste

1039-10  management planning fund and the municipal solid waste resource

1039-11  recovery applied research and technical assistance fund established

1039-12  by the Comprehensive Municipal Solid Waste Management, Resource

1039-13  Recovery, and Conservation Act (Chapter 363);

1039-14              (2)  conduct of demonstration projects and studies to

1039-15  help local governments of various populations and the private

1039-16  sector to convert to accounting systems and set rates that reflect

1039-17  the full costs of providing waste management services and are

1039-18  proportionate to the amount of waste generated;

1039-19              (3)  provision of technical assistance to local

1039-20  governments concerning solid waste management;

1039-21              (4)  establishment of a solid waste resource center in

1039-22  the commission and an office of waste minimization and recycling;

1039-23              (5)  provision of supplemental funding to local

1039-24  governments for the enforcement of this chapter, the Texas Litter

 1040-1  Abatement Act (Chapter 365), and Chapters 391 and 683,

 1040-2  Transportation Code [Chapter 741, Acts of the 67th Legislature,

 1040-3  Regular Session, 1981 (Article 4477-9a, Vernon's Texas Civil

 1040-4  Statutes)];

 1040-5              (6)  conduct of a statewide public awareness program

 1040-6  concerning solid waste management;

 1040-7              (7)  provision of supplemental funds for other state

 1040-8  agencies with responsibilities concerning solid waste management,

 1040-9  recycling, and other initiatives with the purpose of diverting

1040-10  recyclable waste from landfills;

1040-11              (8)  conduct of research to promote the development and

1040-12  stimulation of markets for recycled waste products;

1040-13              (9)  creation of a state municipal solid waste

1040-14  superfund for:

1040-15                    (A)  the cleanup of unauthorized tire dumps and

1040-16  solid waste dumps for which a responsible party cannot be located

1040-17  or is not immediately financially able to provide the cleanup; and

1040-18                    (B)  the cleanup or proper closure of abandoned

1040-19  or contaminated municipal solid waste sites for which a responsible

1040-20  party is not immediately financially able to provide the cleanup;

1040-21              (10)  provision of funds to mitigate the economic and

1040-22  environmental impacts of lead-acid battery recycling activities on

1040-23  local governments; and

1040-24              (11)  provision of funds for the conduct of research by

 1041-1  a public or private entity to assist the state in developing new

 1041-2  technologies and methods to reduce the amount of municipal waste

 1041-3  disposed of in landfills.

 1041-4        SECTION 30.206.  Section 365.011(7), Health and Safety Code,

 1041-5  is amended to conform to Chapter 165, Acts of the 74th Legislature,

 1041-6  Regular Session, 1995, to read as follows:

 1041-7              (7)  "Motor vehicle" has the meaning assigned by

 1041-8  Section 541.201, Transportation Code [2(b), Uniform Act Regulating

 1041-9  Traffic on Highways (Article 6701d, Vernon's Texas Civil

1041-10  Statutes)].

1041-11        SECTION 30.207.  Sections 382.037(a) and (d), Health and

1041-12  Safety Code, are amended to conform to Chapter 165, Acts of the

1041-13  74th Legislature, Regular Session, 1995, to read as follows:

1041-14        (a)  The commission by resolution may request the Public

1041-15  Safety Commission to establish a vehicle emissions inspection and

1041-16  maintenance program under Subchapter F, Chapter 548, Transportation

1041-17  Code [Section 142, Uniform Act Regulating Traffic on Highways

1041-18  (Article 6701d, Vernon's Texas Civil Statutes)], in accordance with

1041-19  this section and rules adopted under this section.  The commission

1041-20  by rule may establish, implement, and administer a program

1041-21  requiring emissions-related inspections of motor vehicles to be

1041-22  performed at inspection facilities consistent with the requirements

1041-23  of the federal Clean Air Act (42 U.S.C. Section 7401 et seq.).

1041-24        (d)  On adoption of a resolution by the commission and after

 1042-1  proper notice, the Department of Public Safety of the State of

 1042-2  Texas shall implement a system that requires, as a condition of

 1042-3  obtaining an [a safety] inspection certificate issued under

 1042-4  Subchapter C, Chapter 548, Transportation Code [Section 140 or 141,

 1042-5  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's

 1042-6  Texas Civil Statutes)], in a county that is included in a vehicle

 1042-7  emissions inspection and maintenance program under Subchapter F of

 1042-8  that chapter [Section 142, Uniform Act Regulating Traffic on

 1042-9  Highways (Article 6701d, Vernon's Texas Civil Statutes)], that the

1042-10  vehicle, unless the vehicle is not covered by the system, be

1042-11  annually or biennially inspected under the vehicle emissions

1042-12  inspection and maintenance program as required by the Texas air

1042-13  quality state implementation plan or Section 382.0371.  The

1042-14  Department of Public Safety shall implement such a system when it

1042-15  is required by any provision of federal or state law, including any

1042-16  provision of the Texas air quality state implementation plan.  The

1042-17  Department of Public Safety may not require or accept verification

1042-18  of compliance other than a vehicle inspection certificate.

1042-19        SECTION 30.208.  Sections 382.0371(i), (j), and (l), Health

1042-20  and Safety Code, are amended to conform to Chapter 165, Acts of the

1042-21  74th Legislature, Regular Session, 1995, to read as follows:

1042-22        (i)  This section applies to the issuance of safety

1042-23  inspection certificates issued under Subchapter C, Chapter 548,

1042-24  Transportation Code [Section 140 or 141, Uniform Act Regulating

 1043-1  Traffic on Highways (Article 6701d, Vernon's Texas Civil

 1043-2  Statutes)], on or after June 1, 1995, for all vehicles subject to

 1043-3  this section.

 1043-4        (j)  This section does not apply to a motor vehicle that is:

 1043-5              (1)  [is] an antique motor vehicle registered under

 1043-6  Section 502.275, Transportation Code [5a, Chapter 88, General

 1043-7  Laws, Acts of the 41st Legislature, 2nd Called Session, 1929

 1043-8  (Article 6675a-5a, Vernon's Texas Civil Statutes)];

 1043-9              (2)  [is] a classic motor vehicle registered under

1043-10  Section 502.274, Transportation Code [5n, Chapter 88, General Laws,

1043-11  Acts of the 41st Legislature, 2nd Called Session, 1929 (Article

1043-12  6675a-5n,  Vernon's Texas Civil Statutes)];

1043-13              (3)  [is] a slow-moving vehicle required to display a

1043-14  slow-moving-vehicle emblem by Section 547.703, Transportation Code

1043-15  [139B, Uniform Act Regulating Traffic on Highways (Article 6701d,

1043-16  Vernon's Texas Civil Statutes)]; or

1043-17              (4)  [is] a circus vehicle.

1043-18        (l)  In this section:

1043-19              (1)  "Commission" means Texas Natural Resource

1043-20  Conservation Commission.

1043-21              (2)  "Department" means the Department of Public Safety

1043-22  of the State of Texas.

1043-23              (3)  "First sale" of a motor vehicle has the meaning

1043-24  assigned by Section 501.002, Transportation Code [7, Certificate of

 1044-1  Title Act (Article 6687-1, Vernon's Texas Civil Statutes)].

 1044-2              (4)  "Safety inspection" means a compulsory inspection

 1044-3  performed as required by Subchapter C, Chapter 548, Transportation

 1044-4  Code [Section 140 or 141, Uniform Act Regulating Traffic on

 1044-5  Highways (Article 6701d, Vernon's Texas Civil Statutes), by an

 1044-6  official inspection station issued a certificate of appointment by

 1044-7  the department under Section 141(a) of that Act].

 1044-8              (5)  "Safety inspection certificate" means an

 1044-9  inspection certificate issued under Subchapter C, Chapter 548,

1044-10  Transportation Code [Section 140 or 141, Uniform Act Regulating

1044-11  Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes),

1044-12  after a compulsory inspection required by Section 140 or 141 of

1044-13  that Act, by an official inspection station issued a certificate of

1044-14  appointment by the department under Section 141(a) of that Act].

1044-15        SECTION 30.209.  Section 382.0622(a), Health and Safety Code,

1044-16  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1044-17  Regular Session, 1995, to read as follows:

1044-18        (a)  Clean Air Act fees consist of:

1044-19              (1)  fees collected by the commission under Sections

1044-20  382.062, 382.0621, and 382.037 and as otherwise provided by law;

1044-21  and

1044-22              (2)  $2 of each advance payment collected by the

1044-23  Department of Public Safety for inspection certificates for

1044-24  vehicles other than mopeds under Section 548.501, Transportation

 1045-1  Code [141(c), Uniform Act Regulating Traffic on Highways (Article

 1045-2  6701d, Vernon's Texas Civil Statutes)].

 1045-3        SECTION 30.210.  Sections 382.131(7) and (8), Health and

 1045-4  Safety Code, are amended to conform to Chapter 165, Acts of the

 1045-5  74th Legislature, Regular Session, 1995, to read as follows:

 1045-6              (7)  "Fleet vehicle" means a vehicle required to be

 1045-7  registered under Chapter 502, Transportation Code [88, General

 1045-8  Laws, Acts of the 41st Legislature, 2nd Called Session, 1929

 1045-9  (Article 6675a-2, Vernon's Texas Civil Statutes)], and that is

1045-10  centrally fueled, capable of being centrally fueled, or fueled at

1045-11  facilities serving both business customers and the general public.

1045-12  The term does not include:

1045-13                    (A)  a fleet vehicle that, when not in use, is

1045-14  normally parked at the residence of the individual who usually

1045-15  operates it and that is available to such individual for personal

1045-16  use;

1045-17                    (B)  a fleet vehicle that, when not in use, is

1045-18  normally parked at the residence of the individual who usually

1045-19  operates it and who does not report to a central location; or

1045-20                    (C)  a fleet vehicle that has a gross vehicle

1045-21  weight rating of greater than 26,000 pounds except vehicles owned

1045-22  or operated by the state or mass transit authorities.

1045-23              (8)  "Mass transit authority" means a transportation or

1045-24  transit authority or department established under Chapter 451, 452,

 1046-1  or 453, Transportation Code [141, Acts of the 63rd Legislature,

 1046-2  Regular Session, 1973 (Article 1118x, Vernon's Texas Civil

 1046-3  Statutes), Chapter 683, Acts of the 66th Legislature, Regular

 1046-4  Session, 1979 (Article 1118y, Vernon's Texas Civil Statutes), or

 1046-5  Article 1118z, Revised Statutes], that operates a mass transit

 1046-6  system [under any of those laws].

 1046-7        SECTION 30.211.  Section 692.003(e), Health and Safety Code,

 1046-8  is amended to conform to Chapter 165, Acts of the 74th Legislature,

 1046-9  Regular Session, 1995, to read as follows:

1046-10        (e)  A gift made under this section by a person 18 years of

1046-11  age or older, including a gift made under Subchapter Q, Chapter

1046-12  521, Transportation Code [Section 11B, Chapter 173, Acts of the

1046-13  47th Legislature, Regular Session, 1941 (Article 6687b, Vernon's

1046-14  Texas Civil Statutes)], shall be honored without obtaining the

1046-15  approval or consent of any other person.

1046-16        SECTION 30.212.  Sections 692.014(a), (b), and (d), Health

1046-17  and Safety Code, are amended to conform to Chapter 165, Acts of the

1046-18  74th Legislature, Regular Session, 1995, to read as follows:

1046-19        (a)  At or near the time of notification of death, if it is

1046-20  unclear whether the decedent is or is not a donor, the organ or

1046-21  tissue procurement organization or its designee shall ask the

1046-22  person authorized to make an anatomical gift on behalf of the

1046-23  decedent under Section 692.004, according to the priority

1046-24  established by that section, whether the decedent is or is not a

 1047-1  donor.  The inquiry shall be made in accordance with the protocol

 1047-2  established under Section 692.013 and with procedures established

 1047-3  under Subchapter Q, Chapter 521, Transportation Code [Section 11B,

 1047-4  Chapter 173, Acts of the 47th Legislature, Regular Session, 1941

 1047-5  (Article 6687b, Vernon's Texas Civil Statutes)].

 1047-6        (b)  If the decedent is a donor 18 years of age or older, the

 1047-7  decedent's anatomical gift made under Section 692.003, including a

 1047-8  gift made under Subchapter Q, Chapter 521, Transportation Code

 1047-9  [Section 11B, Chapter 173, Acts of the 47th Legislature, Regular

1047-10  Session, 1941 (Article 6687b, Vernon's Texas Civil Statutes)],

1047-11  shall be honored without obtaining the approval or consent of any

1047-12  other person.

1047-13        (d)  If the decedent is not a declared donor, the organ or

1047-14  tissue procurement organization or its designee shall inform the

1047-15  person of the option to donate the decedent's organs and tissues

1047-16  according to the procedures established under this chapter and

1047-17  under Subchapter Q, Chapter 521, Transportation Code [Section 11B,

1047-18  Chapter 173, Acts of the 47th Legislature, Regular Session, 1941

1047-19  (Article 6687b, Vernon's Texas Civil Statutes)].

1047-20        SECTION 30.213.  Section 51.015(a), Labor Code, is amended to

1047-21  conform to Chapter 165, Acts of the 74th Legislature, Regular

1047-22  Session, 1995, to read as follows:

1047-23        (a)  An occupation that involves the operation of a motor

1047-24  vehicle by a child for a commercial purpose is not a hazardous

 1048-1  occupation under this chapter if the child:

 1048-2              (1)  has a driver's license under Chapter 521,

 1048-3  Transportation Code [173, Acts of the 47th Legislature, Regular

 1048-4  Session, 1941 (Article 6687b, Vernon's Texas Civil Statutes)];

 1048-5              (2)  is not required to obtain a commercial driver's

 1048-6  license under Chapter 522, Transportation Code, [the Texas

 1048-7  Commercial Driver's License Act (Article 6687b-2, Revised

 1048-8  Statutes)] to perform the duties of the occupation;

 1048-9              (3)  performs the duties of the occupation:

1048-10                    (A)  under the direct supervision of the child's

1048-11  parent or an adult having custody of the child; and

1048-12                    (B)  for a business owned or operated by the

1048-13  child's parent or guardian; and

1048-14              (4)  operates a vehicle that has no more than two axles

1048-15  and does not exceed a gross vehicle weight rating of 15,000 pounds.

1048-16        SECTION 30.214.  Section 106.002, Local Government Code, is

1048-17  amended to conform to Chapter 165, Acts of the 74th Legislature,

1048-18  Regular Session, 1995, to read as follows:

1048-19        Sec. 106.002.  DEPOSITS TO FUND.  The following money shall

1048-20  be deposited in the fund:

1048-21              (1)  court costs collected under Article 102.014, Code

1048-22  of Criminal Procedure; and

1048-23              (2)  optional motor vehicle registration fees remitted

1048-24  to the municipality by the county under Section 502.173,

 1049-1  Transportation Code [9b, Chapter 88, General Laws, Acts of the 41st

 1049-2  Legislature, 2nd Called Session, 1929 (Article 6675a-9b, Vernon's

 1049-3  Texas Civil Statutes)].

 1049-4        SECTION 30.215.  Section 130.002, Local Government Code, is

 1049-5  amended to conform to Chapter 165, Acts of the 74th Legislature,

 1049-6  Regular Session, 1995, to read as follows:

 1049-7        Sec. 130.002.  Acceptance of Check or Credit Card Payment of

 1049-8  Certain Fees and Taxes.  A county tax assessor-collector may accept

 1049-9  a check or credit card invoice for the payment of:

1049-10              (1)  motor vehicle registration fees under Chapter 502,

1049-11  Transportation Code [(Article 6675a-1 et seq., Vernon's Texas Civil

1049-12  Statutes)];

1049-13              (2)  motor vehicle sales taxes imposed by Chapter 152,

1049-14  Tax Code;

1049-15              (3)  occupation taxes paid to the assessor-collector

1049-16  under Chapter 191, Tax Code;

1049-17              (4)  motor vehicle title transfer fees under Chapter

1049-18  501, Transportation Code [the Certificate of Title Act (Article

1049-19  6687-1, Vernon's Texas Civil Statutes)];

1049-20              (5)  license or permit fees under the Alcoholic

1049-21  Beverage Code; and

1049-22              (6)  property taxes.

1049-23        SECTION 30.216.  Section 142.006(c), Local Government Code,

1049-24  is amended to conform to Chapter 165, Acts of the 74th Legislature,

 1050-1  Regular Session, 1995, to read as follows:

 1050-2        (c)  The liability coverage provided under this section must

 1050-3  be in amounts not less than those required by Chapter 601,

 1050-4  Transportation Code, [the Texas Motor Vehicle Safety-Responsibility

 1050-5  Act (Article 6701h, Vernon's Texas Civil Statutes)] to provide

 1050-6  proof of financial responsibility.

 1050-7        SECTION 30.217.  Sections 157.042(c) and (d), Local

 1050-8  Government Code, are amended to conform to Chapter 165, Acts of the

 1050-9  74th Legislature, Regular Session, 1995, to read as follows:

1050-10        (c)  A county may elect to comply with the requirements of

1050-11  this section by self-insuring in accordance with Section 601.124,

1050-12  Transportation Code [34, Texas Motor Vehicle Safety-Responsibility

1050-13  Act (Article 6701h, Vernon's Texas Civil Statutes)].

1050-14        (d)  Liability coverage required under this section must be

1050-15  in amounts equal to or greater than the amounts required by Chapter

1050-16  601, Transportation Code [the Texas Motor Vehicle

1050-17  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil

1050-18  Statutes)].

1050-19        SECTION 30.218.  Section 216.0035, Local Government Code, is

1050-20  amended to conform to Chapter 165, Acts of the 74th Legislature,

1050-21  Regular Session, 1995, to read as follows:

1050-22        Sec. 216.0035.  Regulatory Authority Not Applicable to

1050-23  On-Premises Signs Under Certain Circumstances.  The authority

1050-24  granted to a municipality by this subchapter to require the

 1051-1  relocation, reconstruction, or removal of signs does not apply to:

 1051-2              (1)  on-premises signs in the extraterritorial

 1051-3  jurisdiction of municipalities in a county described by Section

 1051-4  394.063, Transportation Code [17, Article 2, Chapter 221, Acts of

 1051-5  the 69th Legislature, Regular Session, 1985 (Article 6674v-3,

 1051-6  Vernon's Texas Civil Statutes)], if the circumstances described by

 1051-7  that section occur; and

 1051-8              (2)  on-premises signs in a municipality's

 1051-9  extraterritorial jurisdiction in a county that borders a county

1051-10  described by that law.

1051-11        SECTION 30.219.  Section 216.013(d), Local Government Code,

1051-12  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1051-13  Regular Session, 1995, to read as follows:

1051-14        (d)  This subchapter does not limit or restrict the

1051-15  compensation provisions of the highway beautification provisions

1051-16  contained in Chapter 391, Transportation Code [Article IV, Section

1051-17  1, Chapter 741, Acts of the 67th Legislature, Regular Session, 1981

1051-18  (Article 4477-9a, Vernon's Texas Civil Statutes)].

1051-19        SECTION 30.220.  Section 216.015(a), Local Government Code,

1051-20  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1051-21  Regular Session, 1995, and Chapter 191, Acts of the 70th

1051-22  Legislature, Regular Session, 1987, to read as follows:

1051-23        (a)  The legislature declares that it would not have enacted

1051-24  the following without the inclusion of Section 216.010(a), to the

 1052-1  extent that provision excludes methods of compensation not

 1052-2  specifically authorized by that provision:

 1052-3              (1)  this subchapter;

 1052-4              (2)  Section 216.902;

 1052-5              (3)  Article 2, Chapter 221, Acts of the 69th

 1052-6  Legislature, Regular Session, 1985 (codified as Chapter 394,

 1052-7  Transportation Code [Article 6674v-3, Vernon's Texas Civil

 1052-8  Statutes]); and

 1052-9              (4)  the amendments made to Section 3, Property

1052-10  Redevelopment and Tax Abatement Act (codified as Chapter 312, Tax

1052-11  Code [Article 1066f, Vernon's Texas Civil Statutes]) by Article 4,

1052-12  Chapter 221, Acts of the 69th Legislature, Regular Session, 1985.

1052-13        SECTION 30.221.  Section 216.902(c), Local Government Code,

1052-14  is amended to more closely conform to the law from which it was

1052-15  derived to read as follows:

1052-16        (c)  The authority granted to a municipality by this section

1052-17  to extend its outdoor sign ordinance does not apply to:

1052-18              (1)  on-premises signs in the extraterritorial

1052-19  jurisdiction of municipalities in a county described by Section

1052-20  394.063 [Chapter 394], Transportation Code, if the circumstances

1052-21  described by that section occur;

1052-22              (2)  on-premises signs in a municipality's

1052-23  extraterritorial jurisdiction in a county that borders a county

1052-24  described by that law; and

 1053-1              (3)  on-premises signs in the extraterritorial

 1053-2  jurisdiction of a municipality with a population of 1.5 million or

 1053-3  more that are located in a county that is adjacent to the county in

 1053-4  which the majority of the land of the municipality is located.

 1053-5        SECTION 30.222.  Section 238.002(b), Local Government Code,

 1053-6  is amended to conform to Chapter 165, Acts of the 74th Legislature,

 1053-7  Regular Session, 1995, to read as follows:

 1053-8        (b)  The commissioners court may not include in an order

 1053-9  adopted under this section a screening requirement for an

1053-10  automotive wrecking and salvage yard or a junkyard that is less

1053-11  restrictive than the screening requirement under Chapter 396,

1053-12  Transportation Code [953, Acts of the 70th Legislature, Regular

1053-13  Session, 1987 (Article 2372dd-1, Vernon's Texas Civil Statutes)].

1053-14        SECTION 30.223.  Section 238.003(b), Local Government Code,

1053-15  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1053-16  Regular Session, 1995, to read as follows:

1053-17        (b)  A business subject to a screening requirement under

1053-18  Subchapter E of Chapter 391, Chapter 396, or Chapter 397,

1053-19  Transportation Code [Chapter 886, Acts of the 68th Legislature,

1053-20  Regular Session, 1983 (Article 2372dd, Vernon's Texas Civil

1053-21  Statutes), Chapter 953, Acts of the 70th Legislature, Regular

1053-22  Session, 1987 (Article 2372dd-1, Vernon's Texas Civil Statutes), or

1053-23  Section 4.08, Chapter 741, Acts of the 67th Legislature, Regular

1053-24  Session, 1981 (Article 4477-9a, Vernon's Texas Civil Statutes)],

 1054-1  that was in compliance with that screening requirement on August

 1054-2  26, 1991, is exempt from a screening requirement adopted under this

 1054-3  chapter.

 1054-4        SECTION 30.224.  Section 343.001, Local Government Code, is

 1054-5  amended to conform to Chapter 165, Acts of the 74th Legislature,

 1054-6  Regular Session, 1995, to read as follows:

 1054-7        Sec. 343.001.  DEFINITION.  In this chapter, "school crossing

 1054-8  guard" has the meaning assigned by Section 541.001, Transportation

 1054-9  Code [20K, Uniform Act Regulating Traffic on Highways (Article

1054-10  6701d, Vernon's Texas Civil Statutes)].

1054-11        SECTION 30.225.  Section 375.091(d), Local Government Code,

1054-12  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1054-13  Regular Session, 1995, to read as follows:

1054-14        (d)  A district has those powers conferred by Chapters 365

1054-15  and 441, Transportation Code [Chapter 13, Acts of the 68th

1054-16  Legislature, 2nd Called Session, 1984 (Article 6674r-1, Vernon's

1054-17  Texas Civil Statutes)], and the additional rights, privileges,

1054-18  authority, and functions contained in those chapters [that Act].

1054-19        SECTION 30.226.  Section 375.112(a), Local Government Code,

1054-20  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1054-21  Regular Session, 1995, to read as follows:

1054-22        (a)  An improvement project or services provided by the

1054-23  district may include the construction, acquisition, improvement,

1054-24  relocation, operation, maintenance, or provision of:

 1055-1              (1)  landscaping; lighting, banners, and signs; streets

 1055-2  and sidewalks; pedestrian skywalks, crosswalks, and tunnels;

 1055-3  seawalls; marinas; drainage and navigation improvements; pedestrian

 1055-4  malls; solid waste, water, sewer, and power facilities, including

 1055-5  electrical, gas, steam, cogeneration, and chilled water facilities;

 1055-6  parks, plazas, lakes, rivers, bayous, ponds, and recreation and

 1055-7  scenic areas; historic areas; fountains; works of art; off-street

 1055-8  parking facilities, bus terminals, heliports, and mass transit

 1055-9  systems; and the cost of any demolition in connection with

1055-10  providing any of the improvement projects;

1055-11              (2)  other improvements similar to those described in

1055-12  Subdivision (1);

1055-13              (3)  the acquisition of real property or any interest

1055-14  in real property in connection with an improvement, project, or

1055-15  services authorized by this chapter, Chapter 54, Water Code, or

1055-16  Chapter 365 or 441, Transportation Code [13, Acts of the 68th

1055-17  Legislature, 2nd Called Session, 1984 (Article 6674r-1, Vernon's

1055-18  Texas Civil Statutes)];

1055-19              (4)  special supplemental services for advertising,

1055-20  economic development, promoting the area in the district, health

1055-21  and sanitation, public safety, maintenance, security, business

1055-22  recruitment, development, elimination or relief of traffic

1055-23  congestion, recreation, and cultural enhancement; and

1055-24              (5)  expenses incurred in the establishment,

 1056-1  administration, maintenance, and operation of the district or any

 1056-2  of its improvements, projects, or services.

 1056-3        SECTION 30.227.  Section 402.072, Local Government Code, is

 1056-4  amended to conform to Chapter 165, Acts of the 74th Legislature,

 1056-5  Regular Session, 1995, to read as follows:

 1056-6        Sec. 402.072.  Joint Proceedings.  The municipality may make

 1056-7  the improvements and assessments provided under this subchapter in

 1056-8  conjunction with the street improvements and assessments provided

 1056-9  for in Chapter 313, Transportation Code [106, Acts of the 40th

1056-10  Legislature, 1st Called Session, 1927 (Article 1105b, Vernon's

1056-11  Texas Civil Statutes)], through a joint proceeding.  If a joint

1056-12  proceeding is conducted, only one hearing is required, and the

1056-13  procedure required under this subchapter controls.  The

1056-14  municipality may issue a single assessment certificate against a

1056-15  parcel of benefitted property and its owner in evidence of the

1056-16  total assessment made for all improvements made under this

1056-17  subchapter, including street improvements made in a joint

1056-18  proceeding, if the amount assessed for each class of improvements

1056-19  is set out separately and distinctly in the ordinance under which

1056-20  the assessment is made.

1056-21        SECTION 30.228.  Section 411.003(a), Local Government Code,

1056-22  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1056-23  Regular Session, 1995, to read as follows:

1056-24        (a)  The commissioners court of a county may contract with

 1057-1  the federal soil conservation service, a state soil conservation

 1057-2  district, the state extension service, a conservation and

 1057-3  reclamation district, a drainage district, a water control and

 1057-4  improvement district, a navigation district, a flood control

 1057-5  district, a levee improvement district, or a municipality as

 1057-6  provided by Section 256.006, Transportation Code [4.103(e), County

 1057-7  Road and Bridge Act (Article 6702-1, Vernon's Texas Civil

 1057-8  Statutes)], for the purpose of carrying out plans and programs for

 1057-9  flood control and soil conservation.

1057-10        SECTION 30.229.  Section 113.097(d), Natural Resources Code,

1057-11  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1057-12  Regular Session, 1995, to read as follows:

1057-13        (d)  Each category "C," "E," "H," or "J" licensee must carry

1057-14  motor vehicle bodily injury and property damage liability coverage

1057-15  on each motor vehicle, including trailers and semitrailers, used to

1057-16  transport LP-gas.  The commission shall establish by rule a

1057-17  reasonable amount of coverage to be maintained, except that

1057-18  coverage shall not be less than the amounts required as evidence

1057-19  [proof] of financial responsibility under Chapter 601,

1057-20  Transportation Code [the Texas Motor Vehicle Safety-Responsibility

1057-21  Act, as amended (Article 6701h, Vernon's Texas Civil Statutes)].

1057-22        SECTION 30.230.  Section 113.287(e), Natural Resources Code,

1057-23  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1057-24  Regular Session, 1995, to read as follows:

 1058-1        (e)  A state agency, county, municipality, school district,

 1058-2  or mass transit authority or department is eligible to receive a

 1058-3  loan, grant, or other disbursement under this subchapter to carry

 1058-4  out an eligible conversion or infrastructure project regarding LPG

 1058-5  or another environmentally beneficial fuel to comply with fuel

 1058-6  requirements provided by or by rules adopted under:

 1058-7              (1)  Subchapter F, Chapter 382, Health and Safety Code;

 1058-8              (2)  Subchapter A, Chapter 2158, Government Code;

 1058-9              (3)  Subchapter C, Chapter 2171, Government Code;

1058-10              (4)  Subchapter G, Chapter 451, Transportation Code;

1058-11              (5)  Subchapter F, Chapter 452, Transportation Code; or

1058-12              (6)  Subchapter F, Chapter 453, Transportation Code

1058-13  [Sections 3.29 and 14.03, State Purchasing and General Services Act

1058-14  (Article 601b, Vernon's Texas Civil Statutes);]

1058-15              [(3)  Sections 14(c)-(g), Chapter 141, Acts of the 63rd

1058-16  Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas

1058-17  Civil Statutes);]

1058-18              [(4)  Sections 20(e)-(i), Chapter 683, Acts of the 66th

1058-19  Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes);

1058-20  and]

1058-21              [(5)  Sections 6(k)-(o), Article 1118z, Revised

1058-22  Statutes].

1058-23        SECTION 30.231.  Section 133.003(18), Natural Resources Code,

1058-24  is amended to conform to Chapter 165, Acts of the 74th Legislature,

 1059-1  Regular Session, 1995, to read as follows:

 1059-2              (18)  "Public road or right-of-way" means every way

 1059-3  publicly maintained or any part thereof as defined by Section

 1059-4  541.302, Transportation Code [13(a), Uniform Act Regulating Traffic

 1059-5  on Highways (Article 6701d, Vernon's Texas Civil Statutes)], and

 1059-6  the decisions thereunder.

 1059-7        SECTION 30.232.  Section 12.114(b), Parks and Wildlife Code,

 1059-8  is amended to conform to Chapter 165, Acts of the 74th Legislature,

 1059-9  Regular Session, 1995, to read as follows:

1059-10        (b)  If the person is a resident as defined by Subdivision

1059-11  (1) of Section 42.001 of this code, "driver's license" and

1059-12  "personal identification certificate" have the meanings assigned

1059-13  [provided] by Chapter 521, Transportation Code [Subdivisions (1)

1059-14  and (4), Section 1, Chapter 173, Acts of the 47th Legislature,

1059-15  Regular Session, 1941 (Article 6687b, Vernon's Texas Civil

1059-16  Statutes)].

1059-17        SECTION 30.233.  Section 47.001(9), Parks and Wildlife Code,

1059-18  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1059-19  Regular Session, 1995, to read as follows:

1059-20              (9)  "Place of business" means a permanent structure on

1059-21  land or a motor vehicle required to be registered under Section

1059-22  502.002, Transportation Code [2, Chapter 88, General Laws, Acts of

1059-23  the 41st Legislature, 2nd Called Session, 1929 (Article 6675a-2,

1059-24  Vernon's Texas Civil Statutes)], where aquatic products or orders

 1060-1  for aquatic products are received or where aquatic products are

 1060-2  sold or purchased but does not include a boat or any type of

 1060-3  floating device, a public cold storage vault, the portion of a

 1060-4  structure that is used as a residence, or a vehicle from which no

 1060-5  orders are taken or no shipments or deliveries are made other than

 1060-6  to the place of business of a licensee in this state.

 1060-7        SECTION 30.234.  Section 61.201(d), Parks and Wildlife Code,

 1060-8  is amended to conform to Chapter 165, Acts of the 74th Legislature,

 1060-9  Regular Session, 1995, to read as follows:

1060-10        (d)  Property impounded under this section that has not been

1060-11  claimed within the time period specified in Section 683.002,

1060-12  Transportation Code [5.01(2), Chapter 741, Acts of the 67th

1060-13  Legislature, Regular Session, 1981 (Article 4477-9a, Vernon's Texas

1060-14  Civil Statutes)], for disposition of an abandoned automobile is

1060-15  considered abandoned and may be disposed of in the same manner as

1060-16  an abandoned automobile in accordance with Chapter 683 [Article V]

1060-17  of that code [Act].

1060-18        SECTION 30.235.  Section 66.014(a), Parks and Wildlife Code,

1060-19  is amended to conform to Chapter 165, Acts of the 74th Legislature,

1060-20  Regular Session, 1995, to read as follows:

1060-21        (a)  No person may transport any aquatic product for

1060-22  commercial purposes unless the person clearly identifies the motor

1060-23  vehicle, trailer, or semitrailer as a vehicle that carries aquatic

1060-24  products. The commission shall prescribe by proclamation the

 1061-1  identification requirements for a motor vehicle, trailer, or

 1061-2  semitrailer transporting aquatic products, and the commission may

 1061-3  prescribe that the identification shall list the state of origin of

 1061-4  the aquatic products.  In this subsection, "motor vehicle,"

 1061-5  "trailer," and "semitrailer" ["semitrailer,"] have the meanings

 1061-6  assigned [meaning given those terms] by Section 541.201,

 1061-7  Transportation Code [the Uniform Act Regulating Traffic on Highways

 1061-8  (Article 6701d, Vernon's Texas Civil Statutes)].

 1061-9        SECTION 30.236.  Section 8.07(a), Penal Code, is amended to

1061-10  conform to Chapter 165, Acts of the 74th Legislature, Regular

1061-11  Session, 1995, to read as follows:

1061-12        (a)  A person may not be prosecuted for or convicted of any

1061-13  offense that he committed when younger than 15 years of age except:

1061-14              (1)  perjury and aggravated perjury when it appears by

1061-15  proof that he had sufficient discretion to understand the nature

1061-16  and obligation of an oath;

1061-17              (2)  a violation of a penal statute cognizable under

1061-18  Chapter 729, Transportation Code [302, Acts of the 55th

1061-19  Legislature, Regular Session, 1957 (Article 6701l-4, Vernon's Texas

1061-20  Civil Statutes)];

1061-21              (3)  a violation of a motor vehicle traffic ordinance

1061-22  of an incorporated city or town in this state;

1061-23              (4)  a misdemeanor punishable by fine only other than

1061-24  public intoxication;

 1062-1              (5)  a violation of a penal ordinance of a political

 1062-2  subdivision; or

 1062-3              (6)  a violation of a penal statute that is, or is a

 1062-4  lesser included offense of, a capital felony, an aggravated

 1062-5  controlled substance felony, or a felony of the first degree for

 1062-6  which the person is transferred to the court under Section 54.02,

 1062-7  Family Code, for prosecution if the person committed the offense

 1062-8  when 14 years of age or older.

 1062-9        SECTION 30.237.  Sections 31.01(8) and (9), Penal Code, are

1062-10  amended to conform to Chapter 165, Acts of the 74th Legislature,

1062-11  Regular Session, 1995, to read as follows:

1062-12              (8)  "Certificate of title" has the meaning assigned by

1062-13  Section 501.002, Transportation Code [24, Certificate of Title Act

1062-14  (Article 6687-1, Vernon's Texas Civil Statutes)].

1062-15              (9)  "Used or secondhand motor vehicle" means a used

1062-16  motor vehicle [car], as that term is defined by Section 501.002,

1062-17  Transportation Code [10, Certificate of Title Act (Article 6687-1,

1062-18  Vernon's Texas Civil Statutes)].

1062-19        SECTION 30.238.  Section 31.03(c), Penal Code, is amended to

1062-20  conform to Chapter 165, Acts of the 74th Legislature, Regular

1062-21  Session, 1995, to read as follows:

1062-22        (c)  For purposes of Subsection (b):

1062-23              (1)  evidence that the actor has previously

1062-24  participated in recent transactions other than, but similar to,

 1063-1  that which the prosecution is based is admissible for the purpose

 1063-2  of showing knowledge or intent and the issues of knowledge or

 1063-3  intent are raised by the actor's plea of not guilty;

 1063-4              (2)  the testimony of an accomplice shall be

 1063-5  corroborated by proof that tends to connect the actor to the crime,

 1063-6  but the actor's knowledge or intent may be established by the

 1063-7  uncorroborated testimony of the accomplice;

 1063-8              (3)  an actor engaged in the business of buying and

 1063-9  selling used or secondhand personal property, or lending money on

1063-10  the security of personal property deposited with him, is presumed

1063-11  to know upon receipt by the actor of stolen property (other than a

1063-12  motor vehicle subject to Chapter 501, Transportation Code [Article

1063-13  6687-1, Vernon's Texas Civil Statutes]) that the property has been

1063-14  previously stolen from another if the actor pays for or loans

1063-15  against the property $25 or more (or consideration of equivalent

1063-16  value) and the actor knowingly or recklessly:

1063-17                    (A)  fails to record the name, address, and

1063-18  physical description or identification number of the seller or

1063-19  pledgor;

1063-20                    (B)  fails to record a complete description of

1063-21  the property, including the serial number, if reasonably available,

1063-22  or other identifying characteristics; or

1063-23                    (C)  fails to obtain a signed warranty from the

1063-24  seller or pledgor that the seller or pledgor has the right to

 1064-1  possess the property.  It is the express intent of this provision

 1064-2  that the presumption arises unless the actor complies with each of

 1064-3  the numbered requirements;

 1064-4              (4)  for the purposes of Subdivision (3)(A),

 1064-5  "identification number" means driver's license number, military

 1064-6  identification number, identification certificate, or other

 1064-7  official number capable of identifying an individual;

 1064-8              (5)  stolen property does not lose its character as

 1064-9  stolen when recovered by any law enforcement agency;

1064-10              (6)  an actor engaged in the business of obtaining

1064-11  abandoned or wrecked motor vehicles or parts of an abandoned or

1064-12  wrecked motor vehicle for resale, disposal, scrap, repair,

1064-13  rebuilding, demolition, or other form of salvage is presumed to

1064-14  know on receipt by the actor of stolen property that the property

1064-15  has been previously stolen from another if the actor knowingly or

1064-16  recklessly:

1064-17                    (A)  fails to maintain an accurate and legible

1064-18  inventory of each motor vehicle component part purchased by or

1064-19  delivered to the actor, including the date of purchase or delivery,

1064-20  the name, age, address, sex, and driver's license number of the

1064-21  seller or person making the delivery, the license plate number of

1064-22  the motor vehicle in which the part was delivered, a complete

1064-23  description of the part, and the vehicle identification number of

1064-24  the motor vehicle from which the part was removed, or in lieu of

 1065-1  maintaining an inventory, fails to record the name and certificate

 1065-2  of inventory number of the person who dismantled the motor vehicle

 1065-3  from which the part was obtained;

 1065-4                    (B)  fails on receipt of a motor vehicle to

 1065-5  obtain a certificate of authority, sales receipt, or transfer

 1065-6  document as required by [Article V, Section 1,] Chapter 683,

 1065-7  Transportation Code [741, Acts of the 67th Legislature, Regular

 1065-8  Session, 1981 (Article 4477-9a, Vernon's Texas Civil Statutes)], or

 1065-9  a certificate of title showing that the motor vehicle is not

1065-10  subject to a lien or that all recorded liens on the motor vehicle

1065-11  have been released; or

1065-12                    (C)  fails on receipt of a motor vehicle to

1065-13  immediately remove an unexpired license plate from the motor

1065-14  vehicle, to keep the plate in a secure and locked place, or to

1065-15  maintain an inventory, on forms provided by the Texas Department of

1065-16  Transportation, of license plates kept under this paragraph,

1065-17  including for each plate or set of plates the license plate number

1065-18  and the make, motor number, and vehicle identification number of

1065-19  the motor vehicle from which the plate was removed;

1065-20              (7)  an actor who purchases or receives a used or

1065-21  secondhand motor vehicle is presumed to know on receipt by the

1065-22  actor of the motor vehicle that the motor vehicle has been

1065-23  previously stolen from another if the actor knowingly or

1065-24  recklessly:

 1066-1                    (A)  fails to report to the Texas Department of

 1066-2  Transportation the failure of the person who sold or delivered the

 1066-3  motor vehicle to the actor to deliver to the actor a properly

 1066-4  executed certificate of title to the motor vehicle at the time the

 1066-5  motor vehicle was delivered; or

 1066-6                    (B)  fails to file with the county tax

 1066-7  assessor-collector of the county in which the actor received the

 1066-8  motor vehicle, not later than the 20th day after the date the actor

 1066-9  received the motor vehicle, the registration license receipt and

1066-10  certificate of title or evidence of title delivered to the actor in

1066-11  accordance with Subchapter D [Section 2], Chapter 520,

1066-12  Transportation Code [364, Acts of the 50th Legislature, Regular

1066-13  Session, 1947 (Article 6687-6, Vernon's Texas Civil Statutes)], at

1066-14  the time the motor vehicle was delivered; and

1066-15              (8)  an actor who purchases or receives from any source

1066-16  other than a licensed retailer or distributor of pesticides a

1066-17  restricted-use pesticide or a state-limited-use pesticide or a

1066-18  compound, mixture, or preparation containing a restricted-use or

1066-19  state-limited-use pesticide is presumed to know on receipt by the

1066-20  actor of the pesticide or compound, mixture, or preparation that

1066-21  the pesticide or compound, mixture, or preparation has been

1066-22  previously stolen from another if the actor:

1066-23                    (A)  fails to record the name, address, and

1066-24  physical description of the seller or pledgor;

 1067-1                    (B)  fails to record a complete description of

 1067-2  the amount and type of pesticide or compound, mixture, or

 1067-3  preparation purchased or received; and

 1067-4                    (C)  fails to obtain a signed warranty from the

 1067-5  seller or pledgor that the seller or pledgor has the right to

 1067-6  possess the property.

 1067-7        SECTION 30.239.  Section 31.11(e), Penal Code, is amended to

 1067-8  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1067-9  Session, 1995, to read as follows:

1067-10        (e)  In this section, "vehicle" has the meaning given by

1067-11  Section 541.201, Transportation Code [2, Uniform Act Regulating

1067-12  Traffic on Highways (Article 6701d, Vernon's Texas Civil

1067-13  Statutes)].

1067-14        SECTION 30.240.  Section 38.04(c), Penal Code, is amended to

1067-15  conform to Chapter 165, Acts of the 74th Legislature, Regular

1067-16  Session, 1995, to read as follows:

1067-17        (c)  In this section, "vehicle" has the meaning assigned by

1067-18  Section 541.201, Transportation Code [2, Uniform Act Regulating

1067-19  Traffic on Highways (Article 6701d, Vernon's Texas Civil

1067-20  Statutes)].

1067-21        SECTION 30.241.  Section 38.15(c), Penal Code, is amended to

1067-22  conform to Chapter 165, Acts of the 74th Legislature, Regular

1067-23  Session, 1995, to read as follows:

1067-24        (c)  It is a defense to prosecution under Subsection (a)(1)

 1068-1  that the conduct engaged in by the defendant was intended to warn a

 1068-2  person operating a motor vehicle of the presence of a peace officer

 1068-3  who was enforcing Subtitle C, Title 7, Transportation Code [the

 1068-4  provisions of the Uniform Act Regulating Traffic on Highways

 1068-5  (Article 6701d, Vernon's Texas Civil Statutes)].

 1068-6        SECTION 30.242.  Section 48.01(a), Penal Code, is amended to

 1068-7  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1068-8  Session, 1995, to read as follows:

 1068-9        (a)  A person commits an offense if he is in possession of a

1068-10  burning tobacco product or smokes tobacco in a facility of a public

1068-11  primary or secondary school or an elevator, enclosed theater or

1068-12  movie house, library, museum, hospital, transit system bus, or

1068-13  intrastate bus, as defined by Section 541.201, Transportation Code

1068-14  [4(b) of the Uniform Act Regulating Traffic on Highways (Article

1068-15  6701d, Vernon's Texas Civil Statutes)], plane, or train which is a

1068-16  public place.

1068-17        SECTION 30.243.  Section 322, Texas Probate Code, is amended

1068-18  to conform to Chapter 165, Acts of the 74th Legislature, Regular

1068-19  Session, 1995, to read as follows:

1068-20        Sec. 322.  Classification of Claims Against Estates of

1068-21  Decedent.  Claims against an estate of a decedent shall be

1068-22  classified and have priority of payment, as follows:

1068-23              Class 1.  Funeral expenses and expenses of last

1068-24  sickness for a reasonable amount to be approved by the court, not

 1069-1  to exceed Five Thousand Dollars, with any excess to be classified

 1069-2  and paid as other unsecured claims.

 1069-3              Class 2.  Expenses of administration and expenses

 1069-4  incurred in the preservation, safekeeping, and management of the

 1069-5  estate.

 1069-6              Class 3.  Secured claims for money under Section

 1069-7  306(a)(1), including tax liens, so far as the same can be paid out

 1069-8  of the proceeds of the property subject to such mortgage or other

 1069-9  lien, and when more than one mortgage, lien, or security interest

1069-10  shall exist upon the same property, they shall be paid in order of

1069-11  their priority.

1069-12              Class 4.  Claims for taxes, penalties, and interest due

1069-13  under Title 2, Tax Code;  Chapter 8, Title 132, Revised Statutes;

1069-14  Section 81.111, Natural Resources Code; the Municipal Sales and Use

1069-15  Tax Act (Chapter 321, Tax Code); Section 451.404, Transportation

1069-16  Code [11B, Chapter 141, Acts of the 63rd Legislature, Regular

1069-17  Session, 1973 (Article 1118x, Vernon's Texas Civil Statutes)]; or

1069-18  Subchapter I, Chapter 452, Transportation Code [Section 16, Chapter

1069-19  683, Acts of the 66th Legislature, Regular Session, 1979 (Article

1069-20  1118y, Vernon's Texas Civil Statutes)].

1069-21              Class 5.  Claims for the cost of confinement

1069-22  established by the institutional division of the Texas Department

1069-23  of Criminal Justice under Section 501.017, Government Code.

1069-24              Class 6.  Claims for repayment of medical assistance

 1070-1  payments made by the state under Chapter 32, Human Resources Code,

 1070-2  to or for the benefit of the decedent.

 1070-3              Class 7.  All other claims.

 1070-4        SECTION 30.244.  Section 21.042(e), Property Code, is amended

 1070-5  to conform to Chapter 165, Acts of the 74th Legislature, Regular

 1070-6  Session, 1995, to read as follows:

 1070-7        (e)  If a portion of a tract or parcel of real property is

 1070-8  condemned for the use, construction, operation, or maintenance of

 1070-9  the state highway system or of a county toll project described by

1070-10  Chapter 284, Transportation Code [304, Acts of the 50th

1070-11  Legislature, Regular Session, 1947 (Article 6795b-1, Vernon's Texas

1070-12  Civil Statutes)], that is eligible for designation as part of the

1070-13  state highway system, or for the use, construction, development,

1070-14  operation, or maintenance of an improvement or project by a

1070-15  metropolitan rapid transit authority created before January 1,

1070-16  1980, with a principal municipality [city] having a population of

1070-17  less than 1,200,000 and established under Chapter 451,

1070-18  Transportation Code [141, Acts of the 63rd Legislature, Regular

1070-19  Session, 1973 (Article 1118x, Vernon's Texas Civil Statutes)], the

1070-20  special commissioners shall determine the damage to the property

1070-21  owner regardless of whether the property owner makes a claim for

1070-22  damages to the remaining property.  In awarding compensation or

1070-23  assessing the damages, the special commissioners shall consider any

1070-24  special and direct benefits that arise from the highway improvement

 1071-1  or the transit authority improvement or project that are peculiar

 1071-2  to the property owner and that relate to the property owner's

 1071-3  ownership, use, or enjoyment of the particular parcel of remaining

 1071-4  real property.

 1071-5        SECTION 30.245.  Section 42.002(b), Property Code, is amended

 1071-6  to conform to Chapter 165, Acts of the 74th Legislature, Regular

 1071-7  Session, 1995, to read as follows:

 1071-8        (b)  Personal property, unless precluded from being

 1071-9  encumbered by other law, may be encumbered by a security interest

1071-10  under Section 9.203, Business & Commerce Code, or Subchapter F,

1071-11  Chapter 501, Transportation Code [Sections 41 and 42, Certificate

1071-12  of Title Act (Article 6687-1, Vernon's Texas Civil Statutes)], or

1071-13  by a lien fixed by other law, and the security interest or lien may

1071-14  not be avoided on the ground that the property is exempt under this

1071-15  chapter.

1071-16        SECTION 30.246.  Section 61.001(2), Property Code, is amended

1071-17  to conform to Chapter 165, Acts of the 74th Legislature, Regular

1071-18  Session, 1995, to read as follows:

1071-19              (2)  "Mortgagee" means a secured party, as defined by

1071-20  Section 9.105, Business & Commerce Code, holding a lien on a motor

1071-21  vehicle that has been perfected pursuant to Subchapter F, Chapter

1071-22  501, Transportation Code [Sections 41 and 42, Certificate of Title

1071-23  Act (Article 6687-1, Vernon's Texas Civil Statutes)].

1071-24        SECTION 30.247.  Section 70.005(a), Property Code, is amended

 1072-1  to conform to Chapter 165, Acts of the 74th Legislature, Regular

 1072-2  Session, 1995, to read as follows:

 1072-3        (a)  A person holding a lien under this subchapter on

 1072-4  property other than a motor vehicle subject to Chapter 501,

 1072-5  Transportation Code [the Certificate of Title Act, as amended

 1072-6  (Article 6687-1, Vernon's Texas Civil Statutes)], who retains

 1072-7  possession of the property for 60 days after the day that the

 1072-8  charges accrue shall request the owner to pay the unpaid charges

 1072-9  due if the owner's residence is in this state and known.  If the

1072-10  charges are not paid before the 11th day after the day of the

1072-11  request, the lienholder may, after 20 days' notice, sell the

1072-12  property at a public sale, or if the lien is on a garment, at a

1072-13  public or private sale.

1072-14        SECTION 30.248.  Section 70.006(a), Property Code, is amended

1072-15  to conform to Chapter 165, Acts of the 74th Legislature, Regular

1072-16  Session, 1995, to read as follows:

1072-17        (a)  A holder of a lien under this subchapter on a motor

1072-18  vehicle subject to Chapter 501, Transportation Code [the

1072-19  Certificate of Title Act, as amended (Article 6687-1, Vernon's

1072-20  Texas Civil Statutes)], or on a motorboat, vessel, or outboard

1072-21  motor for which a certificate of title is required under Subchapter

1072-22  B, Chapter 31, Parks and Wildlife Code, as amended, who retains

1072-23  possession of the vehicle, motorboat, vessel, or outboard motor for

1072-24  30 days after the day that the charges accrue shall give written

 1073-1  notice to the owner and each holder of a lien recorded on the

 1073-2  certificate of title.  The notice must be sent by certified mail

 1073-3  with return receipt requested and must include the amount of the

 1073-4  charges and a request for payment.

 1073-5        SECTION 30.249.  Section 23.121(a)(3), Tax Code, is amended

 1073-6  to conform to Chapter 165, Acts of the 74th Legislature, Regular

 1073-7  Session, 1995, to read as follows:

 1073-8              (3)  "Dealer" means a person who holds a dealer's

 1073-9  general distinguishing number issued by the Texas Department of

1073-10  Transportation under the authority of Chapter 503, Transportation

1073-11  Code [Article 6686, Revised Statutes], or is authorized by law or

1073-12  interstate reciprocity agreement to purchase vehicles in Texas

1073-13  without paying the motor vehicle sales tax.  The term does not

1073-14  include:

1073-15                    (A)  a person who holds a manufacturer's license

1073-16  issued by the Motor Vehicle Board of the Texas Department of

1073-17  Transportation;

1073-18                    (B)  an entity that is owned or controlled by a

1073-19  person who holds a manufacturer's license issued by the Motor

1073-20  Vehicle Board of the Texas Department of Transportation; or

1073-21                    (C)  a dealer whose general distinguishing number

1073-22  issued by the Texas Department of Transportation under the

1073-23  authority of Chapter 503, Transportation Code [Article 6686,

1073-24  Revised Statutes], prohibits the dealer from selling a vehicle to

 1074-1  any person except a dealer.

 1074-2        SECTION 30.250.  Section 151.428(d), Tax Code, is amended to

 1074-3  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1074-4  Session, 1995, to read as follows:

 1074-5        (d)  The payments required by this section are in addition to

 1074-6  other taxes imposed by this chapter, Chapter 321 of this code,

 1074-7  Subchapter I [Section 11B], Chapter 451, Transportation Code [141,

 1074-8  Acts of the 63rd Legislature, Regular Session, 1973, as amended

 1074-9  (Article 1118x, Vernon's Texas Civil Statutes)], and Subchapter I

1074-10  [Section 16], Chapter 452, Transportation Code [683, Acts of the

1074-11  66th Legislature, Regular Session, 1979, as amended (Article 1118y,

1074-12  Vernon's Texas Civil Statutes)].

1074-13        SECTION 30.251.  Sections 152.001(2), (3), (4), and (15), Tax

1074-14  Code, are amended to conform to Chapter 165, Acts of the 74th

1074-15  Legislature, Regular Session, 1995, to read as follows:

1074-16              (2)  "Retail sale" means a sale of a motor vehicle

1074-17  except:

1074-18                    (A)  a sale in which the purchaser is a dealer

1074-19  who holds a general distinguishing number issued under Chapter 503,

1074-20  Transportation Code [pursuant to the terms of Article 6686, Revised

1074-21  Statutes], who acquires a vehicle for the exclusive purpose of

1074-22  resale; or

1074-23                    (B)  a sale of a vehicle that is operated under

1074-24  and in accordance with Chapter 503, Transportation Code [Article

 1075-1  6686, Revised Civil Statutes of Texas, 1925, as amended].

 1075-2              (3)  "Motor Vehicle" includes:

 1075-3                    (A)  a self-propelled vehicle designed to

 1075-4  transport persons or property on a public highway;

 1075-5                    (B)  a trailer and semitrailer, including a van,

 1075-6  flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or

 1075-7  converter gear; and

 1075-8                    (C)  a house trailer as defined by Section

 1075-9  501.002, Transportation Code [the Certificate of Title Act (Article

1075-10  6687-1, Vernon's Texas Civil Statutes)].

1075-11              (4)  "Motor Vehicle" does not include:

1075-12                    (A)  a device moved only by human power;

1075-13                    (B)  a device used exclusively on stationary

1075-14  rails or tracks;

1075-15                    (C)  road-building machinery;

1075-16                    (D)  a mobile office;

1075-17                    (E)  a vehicle with respect to which the

1075-18  certificate of title has been surrendered in exchange for:

1075-19                          (i)  a salvage certificate issued under

1075-20  Chapter 501, Transportation Code [pursuant to the Certificate of

1075-21  Title Act (Article 6687-1, Vernon's Texas Civil Statutes)];

1075-22                          (ii)  a certificate of authority issued

1075-23  under [pursuant to Article V,] Chapter 683, Transportation Code

1075-24  [741, Acts of the 67th Legislature, Regular Session, 1981 (Article

 1076-1  4477-9a, Vernon's Texas Civil Statutes)];

 1076-2                          (iii)  a nonrepairable motor vehicle

 1076-3  certificate of title issued under Subchapter E, Chapter 501,

 1076-4  Transportation Code [pursuant to Section 37A, Certificate of Title

 1076-5  Act (Article 6687-1, Vernon's Texas Civil Statutes), as added by

 1076-6  H.B. No. 2151, Acts of the 74th Legislature, Regular Session,

 1076-7  1995];

 1076-8                          (iv)  an ownership document issued by

 1076-9  another state if the document is comparable to a document issued

1076-10  pursuant to Subparagraph (i), (ii), or (iii); or

1076-11                    (F)  a vehicle that has been declared a total

1076-12  loss by an insurance company pursuant to the settlement or

1076-13  adjustment of a claim.

1076-14              (15)  "Seller-financed sale" means a retail sale of a

1076-15  motor vehicle by a dealer licensed under Chapter 503,

1076-16  Transportation Code [Article 6686, Revised Statutes], in which the

1076-17  seller collects all or part of the total consideration in periodic

1076-18  payments and retains a lien on the motor vehicle until all payments

1076-19  have been received.  The term does not include a:

1076-20                    (A)  retail sale of a motor vehicle in which a

1076-21  person other than the seller provides the consideration for the

1076-22  sale and retains a lien on the motor vehicle as collateral;

1076-23                    (B)  lease; or

1076-24                    (C)  rental.

 1077-1        SECTION 30.252.  Section 152.027(a), Tax Code, is amended to

 1077-2  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1077-3  Session, 1995, to read as follows:

 1077-4        (a)  A use tax is imposed on each person to whom is issued a

 1077-5  metal dealer's plate authorized by Chapter 503, Transportation Code

 1077-6  [Article 6686, Revised Civil Statutes of Texas, 1925, as amended].

 1077-7        SECTION 30.253.  Section 152.0411(e), Tax Code, is amended to

 1077-8  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1077-9  Session, 1995, to read as follows:

1077-10        (e)  This section applies only to a sale in which the seller

1077-11  is a motor vehicle dealer who holds a dealer license issued under

1077-12  Chapter 503, Transportation Code [pursuant to the authority of

1077-13  Article 6686, Revised Statutes], or the Texas Motor Vehicle

1077-14  Commission Code (Article 4413(36), Vernon's Texas Civil Statutes).

1077-15        SECTION 30.254.  Section 152.043, Tax Code, is amended to

1077-16  conform to Chapter 165, Acts of the 74th Legislature, Regular

1077-17  Session, 1995, to read as follows:

1077-18        Sec. 152.043.  Collection of Tax on Motor Vehicles Operated

1077-19  by Nonresidents.  A person doing business in this state who

1077-20  registers a motor vehicle under Section 502.054, Transportation

1077-21  Code [14, Chapter 110, Acts of the 47th Legislature, Regular

1077-22  Session, 1941 (Article 6675a-16, Vernon's Texas Civil Statutes)],

1077-23  shall pay the tax imposed by Section 152.022 of this code to the

1077-24  comptroller on or before the day the motor vehicle is brought into

 1078-1  Texas.

 1078-2        SECTION 30.255.  Section 152.061(b), Tax Code, is amended to

 1078-3  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1078-4  Session, 1995, to read as follows:

 1078-5        (b)  A rental certificate may be furnished by:

 1078-6              (1)  a dealer licensed under Chapter 503,

 1078-7  Transportation Code [Article 6686, Revised Civil Statutes of Texas,

 1078-8  1925, as amended]; or

 1078-9              (2)  the owner if the vehicle is for use in a rental

1078-10  business that rents at least five different motor vehicles within

1078-11  any 12-month period.

1078-12        SECTION 30.256.  Section 152.081, Tax Code, is amended to

1078-13  conform to Chapter 165, Acts of the 74th Legislature, Regular

1078-14  Session, 1995, to read as follows:

1078-15        Sec. 152.081.  Driver Training Motor Vehicles.  The taxes

1078-16  imposed by this chapter do not apply to the sale or use of a motor

1078-17  vehicle that is:

1078-18              (1)  owned by a motor vehicle dealer as defined by

1078-19  Section 503.001, Transportation Code [Article 6686(a), Revised

1078-20  Civil Statutes of Texas, 1925, as amended];

1078-21              (2)  purchased in this state; and

1078-22              (3)  loaned free of charge by the dealer to a public

1078-23  school for use in an approved standard driver training course.

1078-24        SECTION 30.257.  Section 152.082, Tax Code, is amended to

 1079-1  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1079-2  Session, 1995, to read as follows:

 1079-3        Sec. 152.082.  Sale of Motor Vehicle to or Use of Motor

 1079-4  Vehicle by Public Agency.  The taxes imposed by this chapter do not

 1079-5  apply to the sale of a motor vehicle to or use of a motor vehicle

 1079-6  by a public agency if the motor vehicle is operated with an exempt

 1079-7  license plate issued under Section 502.201 or 502.206,

 1079-8  Transportation Code [3-AA, Chapter 88, General Laws, Acts of the

 1079-9  41st Legislature, 2nd Called Session, 1929, as amended (Article

1079-10  6675a-3aa, Vernon's Texas Civil Statutes)].

1079-11        SECTION 30.258.  Section 152.083(b), Tax Code, is amended to

1079-12  conform to Chapter 165, Acts of the 74th Legislature, Regular

1079-13  Session, 1995, to read as follows:

1079-14        (b)  This exemption applies only if the person purchasing the

1079-15  motor vehicle to be leased presents the tax assessor-collector a

1079-16  form prescribed and provided by the comptroller and showing:

1079-17              (1)  the identification of the motor vehicle;

1079-18              (2)  the name and address of the lessor and the lessee;

1079-19  and

1079-20              (3)  verification by an officer of the public agency to

1079-21  which the motor vehicle will be leased that the agency will operate

1079-22  the vehicle with an exempt license plate issued under Section

1079-23  502.201 or 502.206, Transportation Code [3-AA, Chapter 88, General

1079-24  Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, as

 1080-1  amended (Article 6675a-3aa, Vernon's Texas Civil Statutes)].

 1080-2        SECTION 30.259.  Section 152.087, Tax Code, is amended to

 1080-3  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1080-4  Session, 1995, to read as follows:

 1080-5        Sec. 152.087.  Fire Trucks and Emergency Medical Services

 1080-6  Vehicles.  The taxes imposed by this chapter do not apply to the

 1080-7  purchase, rental, or use of a fire truck, emergency medical

 1080-8  services vehicle as defined by Section 773.003, Health and Safety

 1080-9  Code, or other motor vehicle used exclusively for fire-fighting

1080-10  purposes or for emergency medical services when purchased by:

1080-11              (1)  a volunteer fire department;

1080-12              (2)  a nonprofit emergency medical service provider

1080-13  that receives a federal income tax exemption under Section 501(a),

1080-14  Internal Revenue Code of 1986, as an organization described by

1080-15  Section 501(c)(3), Internal Revenue Code of 1986; or

1080-16              (3)  an emergency medical service provider to which

1080-17  Section 502.204, Transportation Code [3(g), Chapter 88, General

1080-18  Laws, Acts of the 41st Legislature, 2nd Called Session, 1929

1080-19  (Article 6675a-3, Vernon's Texas Civil Statutes)], applies.

1080-20        SECTION 30.260.  Section 152.121(c), Tax Code, is amended to

1080-21  conform to Chapter 165, Acts of the 74th Legislature, Regular

1080-22  Session, 1995, to read as follows:

1080-23        (c)  If the amount of net collections under Chapter 502,

1080-24  Transportation Code [88, General Laws, Acts of the 41st

 1081-1  Legislature, 2nd Called Session, 1929 (Article 6675a-1 et seq.,

 1081-2  Vernon's Texas Civil Statutes)], is insufficient to cover the

 1081-3  amount of those net collections authorized to be retained by a

 1081-4  county as a percentage of the tax and penalties collected under

 1081-5  this chapter, the comptroller shall on request of the county tax

 1081-6  assessor-collector authorize the county to retain a portion of the

 1081-7  tax and penalties collected under this chapter to cover the

 1081-8  deficiency.

 1081-9        SECTION 30.261.  Section 153.305(d), Tax Code, is amended to

1081-10  conform to Chapter 165, Acts of the 74th Legislature, Regular

1081-11  Session, 1995, to read as follows:

1081-12        (d)  An entity holding a [valid] registration under Chapter

1081-13  503, Transportation Code [Article 6686, Revised Civil Statutes of

1081-14  Texas, 1925, as amended], may obtain a decal for each liquefied

1081-15  gas-powered motor vehicle held for sale or resale and pay the tax

1081-16  per gallon to a permitted dealer on each delivery of liquefied gas

1081-17  into the fuel supply tank of the motor vehicle.

1081-18        SECTION 30.262.  Section 154.001(3), Tax Code, is amended to

1081-19  conform to the revision of Article 6675c, Revised Statutes, as

1081-20  Chapter 643, Transportation Code, by this Act to read as follows:

1081-21              (3)  "Common carrier" means a motor carrier registered

1081-22  under Chapter 643, Transportation Code [Article 6675c, Revised

1081-23  Statutes], or a motor carrier operating under a certificate issued

1081-24  by the Interstate Commerce Commission or a successor agency to the

 1082-1  Interstate Commerce Commission.

 1082-2        SECTION 30.263.  Section 155.001(3), Tax Code, is amended to

 1082-3  conform to the revision of Article 6675c, Revised Statutes, as

 1082-4  Chapter 643, Transportation Code, by this Act to read as follows:

 1082-5              (3)  "Common carrier" means a motor carrier registered

 1082-6  under Chapter 643, Transportation Code [Article 6675c, Revised

 1082-7  Statutes], or a motor carrier operating under a certificate issued

 1082-8  by the Interstate Commerce Commission or a successor agency to the

 1082-9  Interstate Commerce Commission.

1082-10        SECTION 30.264.  Sections 321.101(b), (c), and (e), Tax Code,

1082-11  are amended to conform to Chapter 165, Acts of the 74th

1082-12  Legislature, Regular Session, 1995, to read as follows:

1082-13        (b)  A municipality that is not disqualified may, by a

1082-14  majority vote of the qualified voters of the municipality voting at

1082-15  an election held for that purpose, adopt an additional sales and

1082-16  use tax for the benefit of the municipality in accordance with this

1082-17  chapter.  A municipality is disqualified from adopting the

1082-18  additional sales and use tax if the municipality:

1082-19              (1)  is included within the boundaries of a rapid

1082-20  transit authority created under Chapter 451, Transportation Code

1082-21  [141, Acts of the 63rd Legislature, Regular Session, 1973 (Article

1082-22  1118x, Vernon's Texas Civil Statutes)];

1082-23              (2)  is included within the boundaries of a regional

1082-24  transportation authority created under Chapter 452, Transportation

 1083-1  Code [683, Acts of the 66th Legislature, Regular Session, 1979

 1083-2  (Article 1118y, Vernon's Texas Civil Statutes)], by a principal

 1083-3  municipality [city] having a population of less than 800,000,

 1083-4  unless the municipality [city] has a population of 400,000 or more

 1083-5  and is located in more than one county;

 1083-6              (3)  is wholly or partly located in a county that

 1083-7  contains territory within the boundaries of a regional

 1083-8  transportation authority created under Chapter 452, Transportation

 1083-9  Code [683, Acts of the 66th Legislature, Regular Session, 1979

1083-10  (Article 1118y, Vernon's Texas Civil Statutes)], by a principal

1083-11  municipality [city] having a population in excess of 800,000,

1083-12  unless:

1083-13                    (A)  the municipality [city] is a contiguous

1083-14  municipality [city]; or

1083-15                    (B)  the municipality is not included within the

1083-16  boundaries of the authority and is located wholly or partly in a

1083-17  county in which fewer than 250 persons are residents of both the

1083-18  county and the authority according to the most recent federal

1083-19  census; or

1083-20                    (C)  the municipality is not and on January 1,

1083-21  1993, was not included within the boundaries of the authority; or

1083-22              (4)  imposes a tax authorized by Chapter 453,

1083-23  Transportation Code [Article 1118z, Revised Statutes].

1083-24        (c)  For the purposes of Subsection (b), "principal

 1084-1  municipality [city]" and "contiguous municipality [city]" have the

 1084-2  meanings assigned by Section 452.001, Transportation Code [Chapter

 1084-3  683, Acts of the 66th Legislature, Regular Session, 1979 (Article

 1084-4  1118y, Vernon's Texas Civil Statutes)].

 1084-5        (e)  An authority created under Chapter 451 [141, Acts of the

 1084-6  63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's

 1084-7  Texas Civil Statutes),] or 452, Transportation Code [Chapter 683,

 1084-8  Acts of the 66th Legislature, Regular Session, 1979 (Article 1118y,

 1084-9  Vernon's Texas Civil Statutes)], is prohibited from imposing the

1084-10  tax provided for by [in] those chapters [Acts] if within the

1084-11  boundaries of the authority there is a municipality that has

1084-12  adopted the additional sales and use tax provided for by [in] this

1084-13  section.

1084-14        SECTION 30.265.  Sections 321.1025(a) and (b), Tax Code, are

1084-15  amended to conform to Chapter 165, Acts of the 74th Legislature,

1084-16  Regular Session, 1995, to read as follows:

1084-17        (a)  A municipality that is wholly or partly located in a

1084-18  county that contains territory within the boundaries of a regional

1084-19  transportation authority created under Chapter 452, Transportation

1084-20  Code  [683, Acts of the 66th Legislature, 1979 (Article 1118y,

1084-21  Vernon's Texas Civil Statutes)], by a principal municipality [city]

1084-22  having a population of more than 800,000 and that has adopted an

1084-23  additional sales and use tax for the benefit of the municipality

1084-24  may hold an election on the question of whether the municipality

 1085-1  shall be annexed to the authority.

 1085-2        (b)  The election must be held in the manner required by

 1085-3  Chapter 452, Transportation Code [683, Acts of the 66th

 1085-4  Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes)].

 1085-5        SECTION 30.266.  Section 322.001(a), Tax Code, is amended to

 1085-6  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1085-7  Session, 1995, to read as follows:

 1085-8        (a)  This chapter applies to the imposition, assessment,

 1085-9  collection, administration, and enforcement of a sales and use tax

1085-10  imposed under [the authority of] Chapter 451, 452, or 453,

1085-11  Transportation Code [141, Acts of the 63rd Legislature, Regular

1085-12  Session, 1973 (Article 1118x, Vernon's Texas Civil Statutes),

1085-13  Chapter 683, Acts of the 66th Legislature, Regular Session, 1979

1085-14  (Article 1118y, Vernon's Texas Civil Statutes), or Article 1118z,

1085-15  Revised Statutes].

1085-16        SECTION 30.267.  Section 322.002(1), Tax Code, is amended to

1085-17  conform to Chapter 165, Acts of the 74th Legislature, Regular

1085-18  Session, 1995, to read as follows:

1085-19              (1)  "Taxing entity" means a rapid transit authority, a

1085-20  regional transit authority, including a subregional transportation

1085-21  authority, or a municipal mass transit department created under

1085-22  Chapter 453, Transportation Code [Article 1118z, Revised Statutes],

1085-23  that has adopted a sales and use tax under the law authorizing the

1085-24  creation of the entity.

 1086-1        SECTION 30.268.  Section 322.108(b), Tax Code, is amended to

 1086-2  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1086-3  Session, 1995, to read as follows:

 1086-4        (b)  The provisions of this chapter applicable to a taxing

 1086-5  entity created under Chapter 453, Transportation Code [Article

 1086-6  1118z, Revised Statutes], prevail over any inconsistent provision

 1086-7  in a statute listed in Subsection (a).

 1086-8        SECTION 30.269.  Section 322.110(a), Tax Code, is amended to

 1086-9  conform to Chapter 165, Acts of the 74th Legislature, Regular

1086-10  Session, 1995, to read as follows:

1086-11        (a)  The receipts from the sale, use, or rental of and the

1086-12  storage, use, or consumption of taxable items in this state are

1086-13  exempt from the tax imposed under this chapter by a taxing entity

1086-14  created under Chapter 453, Transportation Code [Article 1118z,

1086-15  Revised Statutes], if the items are used:

1086-16              (1)  for the performance of a written contract entered

1086-17  into before the date the tax takes effect in the taxing entity, if

1086-18  the contract is not subject to change or modification by reason of

1086-19  the tax; or

1086-20              (2)  pursuant to an obligation of a bid or bids

1086-21  submitted before the date the tax takes effect in the taxing

1086-22  entity, if the bid or bids may not be withdrawn, modified, or

1086-23  changed by reason of the tax.

1086-24        SECTION 30.270.  Section 322.302(b), Tax Code, is amended to

 1087-1  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1087-2  Session, 1995, to read as follows:

 1087-3        (b)  The comptroller shall make payments required by

 1087-4  Subsection (a) of this section to entities created under Chapter

 1087-5  451 [141, Acts of the 63rd Legislature, Regular Session, 1973

 1087-6  (Article 1118x, Vernon's Texas Civil Statutes),] or 452,

 1087-7  Transportation Code [Chapter 683, Acts of the 66th Legislature,

 1087-8  1979 (Article 1118y, Vernon's Texas Civil Statutes)], quarterly

 1087-9  each fiscal year as soon as practicable after the end of each

1087-10  quarter.

1087-11        SECTION 30.271.  Section 322.304(c), Tax Code, is amended to

1087-12  conform to Chapter 165, Acts of the 74th Legislature, Regular

1087-13  Session, 1995, to read as follows:

1087-14        (c)  Before the expiration of one year after the effective

1087-15  date of the abolition of an entity's tax under this chapter other

1087-16  than a department under Chapter 453, Transportation Code [Article

1087-17  1118z, Revised Statutes], the comptroller shall send to the entity

1087-18  the remainder of the money in the entity's account and shall close

1087-19  the account.

1087-20        SECTION 30.272.  Sections 323.101(b) and (c), Tax Code, are

1087-21  amended to conform to Chapter 165, Acts of the 74th Legislature,

1087-22  Regular Session, 1995, to read as follows:

1087-23        (b)  A county is qualified to adopt the tax only if no part

1087-24  of the county is located in a rapid transit authority created under

 1088-1  Chapter 451, Transportation Code [141, Acts of the 63rd

 1088-2  Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas

 1088-3  Civil Statutes)], or a regional transportation authority created

 1088-4  under Chapter 452 of that code [683, Acts of the 66th Legislature,

 1088-5  Regular Session, 1979 (Article 1118y, Vernon's Texas Civil

 1088-6  Statutes)].

 1088-7        (c)  An authority created under Chapter 451 [141, Acts of the

 1088-8  63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's

 1088-9  Texas Civil Statutes),] or 452, Transportation Code [Chapter 683,

1088-10  Acts of the 66th Legislature, Regular Session, 1979 (Article 1118y,

1088-11  Vernon's Texas Civil Statutes)], is prohibited from imposing the

1088-12  tax provided for by [in] those chapters [Acts] in a county in which

1088-13  the county sales and use tax provided for by [in] this section is

1088-14  in effect or is scheduled to take effect.  For the purposes of this

1088-15  section, an authority is not considered to be located in any county

1088-16  in which fewer than 250 persons are both residents of the authority

1088-17  and the county.

1088-18        SECTION 30.273.  Section 351.001(2), Tax Code, is amended to

1088-19  conform to Chapter 165, Acts of the 74th Legislature, Regular

1088-20  Session, 1995, to read as follows:

1088-21              (2)  "Convention center facilities" or "convention

1088-22  center complex" means civic centers, civic center buildings,

1088-23  auditoriums, exhibition halls, and coliseums that are owned by the

1088-24  municipality or other governmental entity or that are managed in

 1089-1  whole or part by the municipality, hotels owned by the municipality

 1089-2  or a nonprofit municipally sponsored local government corporation

 1089-3  created under Chapter 431, Transportation Code, [pursuant to the

 1089-4  Texas Transportation Corporation Act (Article 1528l, Vernon's Texas

 1089-5  Civil Statutes)] within 1,000 feet of a convention center owned by

 1089-6  a municipality with a population of 1,500,000 or more, or a

 1089-7  historic hotel owned by a municipality or a nonprofit municipally

 1089-8  sponsored local government corporation created under Chapter 431,

 1089-9  Transportation Code, [pursuant to the Texas Transportation

1089-10  Corporation Act (Article 1528l, Vernon's Texas Civil Statutes)]

1089-11  within one mile of a convention center owned by a municipality with

1089-12  a population of 1,500,000 or more.  The term includes parking areas

1089-13  or facilities that are for the parking or storage of conveyances

1089-14  and that are located at or in the vicinity of other convention

1089-15  center facilities.

1089-16        SECTION 30.274.  Section 351.102(a), Tax Code, is amended to

1089-17  conform to Chapter 165, Acts of the 74th Legislature, Regular

1089-18  Session, 1995, to read as follows:

1089-19        (a)  Subject to the limitations provided by this subchapter,

1089-20  a municipality may pledge the revenue derived from the tax imposed

1089-21  under this chapter for the payment of bonds that are issued under

1089-22  Section 3, Chapter 63, Acts of the 59th Legislature, Regular

1089-23  Session, 1965 (Article 1269j-4.1, Vernon's Texas Civil Statutes),

1089-24  for one or more of the purposes provided by Section 351.101 or, in

 1090-1  the case of a municipality of 1,500,000 or more, for the payment of

 1090-2  principal of or interest on bonds or other obligations of a

 1090-3  municipally sponsored local government corporation created under

 1090-4  Chapter 431, Transportation Code, [pursuant to the Texas

 1090-5  Transportation Corporation Act (Article 1528l, Vernon's Texas Civil

 1090-6  Statutes)] that were issued to pay the cost of the acquisition and

 1090-7  construction of a convention center hotel or the cost of

 1090-8  acquisition, remodeling, or rehabilitation of a historic hotel

 1090-9  structure; provided, however, such pledge may only be that portion

1090-10  of the tax collected at such hotel.

1090-11        SECTION 30.275.  Section 352.101(a), Tax Code, is amended to

1090-12  conform to Chapter 165, Acts of the 74th Legislature, Regular

1090-13  Session, 1995, to read as follows:

1090-14        (a)  The revenue from a tax imposed under this chapter by a

1090-15  county having a population of more than two million may be used

1090-16  only for:

1090-17              (1)  the acquisition of sites for and the construction,

1090-18  improvement, enlarging, equipping, repairing, operation, and

1090-19  maintenance of public improvements such as civic centers, civic

1090-20  center buildings, auditoriums, exhibition halls, coliseums, and

1090-21  stadiums, including sports and other facilities that serve the

1090-22  purpose of attracting visitors and tourists to the county, and

1090-23  parking areas or facilities for the parking or storage of motor

1090-24  vehicles or other conveyances, hotels owned by a municipality or a

 1091-1  nonprofit municipally sponsored local government corporation

 1091-2  created under Chapter 431, Transportation Code, [pursuant to the

 1091-3  Texas Transportation Corporation Act (Article 1528l, Vernon's Texas

 1091-4  Civil Statutes)] within 1,000 feet of a convention center owned by

 1091-5  a municipality with a population of 1,500,000 or more, or a

 1091-6  historic hotel owned by a municipality or a nonprofit municipally

 1091-7  sponsored local government corporation created under Chapter 431,

 1091-8  Transportation Code, [pursuant to the Texas Transportation

 1091-9  Corporation Act (Article 1528l, Vernon's Texas Civil Statutes)]

1091-10  within one mile of a convention center owned by a municipality with

1091-11  a population of 1,500,000 or more;

1091-12              (2)  the furnishing of facilities, personnel, and

1091-13  materials for the registration of convention delegates or

1091-14  registrants; and

1091-15              (3)  general promotion and tourist advertising of the

1091-16  county and its vicinity and conducting a solicitation program to

1091-17  attract conventions and visitors, any of which may be conducted by

1091-18  the county or through contracts with persons or organizations

1091-19  selected by the county.

1091-20        SECTION 30.276.  Section 30.003(3), Water Code, is amended to

1091-21  conform to Chapter 165, Acts of the 74th Legislature, Regular

1091-22  Session, 1995, to read as follows:

1091-23              (3)  "Public agency" means any district, city, or other

1091-24  political subdivision or agency of the state which has the power to

 1092-1  own and operate waste collection, transportation, treatment, or

 1092-2  disposal facilities or systems, and any joint board created under

 1092-3  the provisions of Subchapter D or E, Chapter 22, Transportation

 1092-4  Code [Section 14, Chapter 114, Acts of the 50th Legislature,

 1092-5  Regular Session, 1947 (Article 46d-14, Vernon's Texas Civil

 1092-6  Statutes)].

 1092-7        SECTION 30.277.  Section 53.029(c), Water Code, is amended to

 1092-8  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1092-9  Session, 1995, to read as follows:

1092-10        (c)  The board of a district covered by this section may

1092-11  order an election to be held in the district to determine whether

1092-12  the district should assume the rights, authority, privileges, and

1092-13  functions of a road district under Article III, Section 52(b)(3),

1092-14  of the Texas Constitution.  The election shall be ordered,

1092-15  conducted, and the results canvassed in the manner provided by the

1092-16  applicable provisions of this chapter and the Election Code.  The

1092-17  ballots for the election shall be printed to provide for voting for

1092-18  or against:  The assumption by the __________ Fresh Water Supply

1092-19  District of the rights, authority, privileges, and functions of a

1092-20  road district under Article III, Section 52(b)(3), of the Texas

1092-21  Constitution.  If a majority of the persons voting in the election

1092-22  vote in favor of the proposition, the district shall assume the

1092-23  rights, authority, privileges, and functions of a road district

1092-24  operating under Article III, Section 52(b)(3), of the Texas

 1093-1  Constitution, Chapter 257, Transportation Code [the County Road and

 1093-2  Bridge Act (Article 6702-1, Vernon's Texas Civil Statutes)], and

 1093-3  other general laws of this state relating to road districts.

 1093-4        SECTION 30.278.  Section 60.246(b), Water Code, is amended to

 1093-5  conform to Chapter 165, Acts of the 74th Legislature, Regular

 1093-6  Session, 1995, to read as follows:

 1093-7        (b)  A converted district shall have the additional powers

 1093-8  conferred on districts under Sections 61.151, 61.161-61.168,

 1093-9  61.170, and 61.172-61.175 of this code, and the commissioners of a

1093-10  converted district shall constitute a pilot board under the

1093-11  provisions of Chapter 62, Transportation Code [Articles 8248-8257,

1093-12  Revised Civil Statutes of Texas, 1925].

1093-13        SECTION 30.279.  Section 63.183, Water Code, is amended to

1093-14  conform to Chapter 165, Acts of the 74th Legislature, Regular

1093-15  Session, 1995, to read as follows:

1093-16        Sec. 63.183.  Other Laws Governing District.  The commission

1093-17  has the same rights, powers, and duties provided for commissioners

1093-18  in Chapter 62, Transportation Code [Articles 8248-8257, Revised

1093-19  Civil Statutes of Texas, 1925].

1093-20        SECTION 30.280.  Sections 1-4, Chapter 370, Acts of the 74th

1093-21  Legislature, Regular Session, 1995, are repealed.

1093-22                       ARTICLE 31.  RENUMBERING

1093-23        SECTION 31.01.  The following provisions of enacted codes are

1093-24  renumbered or relettered and appropriate cross-references are

 1094-1  changed to eliminate duplicate citations or to relocate misplaced

 1094-2  provisions:

 1094-3              (1)  Section 161.053, Agriculture Code, as added by

 1094-4  Chapter 554, Acts of the 74th Legislature, Regular Session, 1995,

 1094-5  is renumbered as Section 161.055, Agriculture Code.

 1094-6              (2)  Section 161.054, Agriculture Code, as added by

 1094-7  Chapter 554, Acts of the 74th Legislature, Regular Session, 1995,

 1094-8  is renumbered as Section 161.056, Agriculture Code.

 1094-9              (3)  Section 15.018, Civil Practice and Remedies Code,

1094-10  as added by Chapter 378, Acts of the 74th Legislature, Regular

1094-11  Session, 1995, is renumbered as Section 15.019, Civil Practice and

1094-12  Remedies Code.

1094-13              (4)  Section 30.007, Civil Practice and Remedies Code,

1094-14  as added by Chapter 122, Acts of the 74th Legislature, Regular

1094-15  Session, 1995, is renumbered as Section 30.008, Civil Practice and

1094-16  Remedies Code.

1094-17              (5)  Section 30.007, Civil Practice and Remedies Code,

1094-18  as added by Chapter 1005, Acts of the 74th Legislature, Regular

1094-19  Session, 1995, is renumbered as Section 30.009, Civil Practice and

1094-20  Remedies Code.

1094-21              (6)  Section 30.07, Civil Practice and Remedies Code,

1094-22  as added by Chapter 302, Acts of the 74th Legislature, Regular

1094-23  Session, 1995, is renumbered as Section 30.010, Civil Practice and

1094-24  Remedies Code.

 1095-1              (7)  Chapter 83, Civil Practice and Remedies Code, as

 1095-2  added by Chapter 662, Acts of the 74th Legislature, Regular

 1095-3  Session, 1995, is renumbered as Chapter 85, Civil Practice and

 1095-4  Remedies Code, and Sections 83.001, 83.002, 83.003, 83.004, 83.005,

 1095-5  and 83.006, Civil Practice and Remedies Code, as added by that Act,

 1095-6  are renumbered as Sections 85.001, 85.002, 85.003, 85.004, 85.005,

 1095-7  and 85.006, Civil Practice and Remedies Code, respectively.

 1095-8              (8)  Chapter 87, Civil Practice and Remedies Code, as

 1095-9  added by Chapter 604, Acts of the 74th Legislature, Regular

1095-10  Session, 1995, is renumbered as Chapter 86, Civil Practice and

1095-11  Remedies Code, and Sections 87.001, 87.002, 87.003, 87.004, 87.005,

1095-12  87.006, and 87.007, Civil Practice and Remedies Code, as added by

1095-13  that Act, are renumbered as Sections 86.001, 86.002, 86.003,

1095-14  86.004, 86.005, 86.006, and 86.007, Civil Practice and Remedies

1095-15  Code, respectively.

1095-16              (9)  Section 101.058, Civil Practice and Remedies Code,

1095-17  as added by Chapter 738, Acts of the 74th Legislature, Regular

1095-18  Session, 1995, is renumbered as Section 101.065, Civil Practice and

1095-19  Remedies Code.

1095-20              (10)  Subsection (m), Section 13, Article 42.12, Code

1095-21  of Criminal Procedure, as added by Chapter 318, Acts of the 74th

1095-22  Legislature, Regular Session, 1995, is relettered as Subsection

1095-23  (n), Section 13, Article 42.12, Code of Criminal Procedure.

1095-24              (11)  Section 13B, Article 42.12, Code of Criminal

 1096-1  Procedure, as added by Chapter 83, Acts of the 74th Legislature,

 1096-2  Regular Session, 1995, is renumbered as Section 13C, Article 42.12,

 1096-3  Code of Criminal Procedure.

 1096-4              (12)  Article 42.21, Code of Criminal Procedure, as

 1096-5  added by Chapter 997, Acts of the 74th Legislature, Regular

 1096-6  Session, 1995, is renumbered as Article 42.22, Code of Criminal

 1096-7  Procedure.

 1096-8              (13)  Subsection (g), Article 45.55, Code of Criminal

 1096-9  Procedure, as added by Chapter 598, Acts of the 74th Legislature,

1096-10  Regular Session, 1995, is relettered as Subsection (h), Article

1096-11  45.55, Code of Criminal Procedure.

1096-12              (14)  Subsection (q), Section 51.306, Education Code,

1096-13  as redesignated by Chapter 76, Acts of the 74th Legislature,

1096-14  Regular Session, 1995, is relettered as Subsection (w), Section

1096-15  51.306, Education Code.

1096-16              (15)  Subsection (q), Section 51.306, Education Code,

1096-17  as added by Chapter 362, Acts of the 74th Legislature, Regular

1096-18  Session, 1995, is relettered as Subsection (t), Section 51.306,

1096-19  Education Code.

1096-20              (16)  Subsection (q), Section 51.306, Education Code,

1096-21  as added by Chapter 777, Acts of the 74th Legislature, Regular

1096-22  Session, 1995, is relettered as Subsection (u), Section 51.306,

1096-23  Education Code.

1096-24              (17)  Subsection (s), Section 51.306, Education Code,

 1097-1  as added by Chapter 804, Acts of the 74th Legislature, Regular

 1097-2  Session, 1995, is relettered as Subsection (v), Section 51.306,

 1097-3  Education Code.

 1097-4              (18)  Subsection (f), Section 51.3061, Education Code,

 1097-5  as added by Chapter 804, Acts of the 74th Legislature, Regular

 1097-6  Session, 1995, is relettered as Subsection (g), Section 51.3061,

 1097-7  Education Code.

 1097-8              (19)  Section 51.307, Education Code, as added by

 1097-9  Chapter 1009, Acts of the 74th Legislature, Regular Session, 1995,

1097-10  is renumbered as Section 51.308, Education Code.

1097-11              (20)  Section 51.932, Education Code, as added by

1097-12  Chapter 736, Acts of the 74th Legislature, Regular Session, 1995,

1097-13  is renumbered as Section 51.9325, Education Code.

1097-14              (21)  Section 51.933, Education Code, as added by

1097-15  Chapter 736, Acts of the 74th Legislature, Regular Session, 1995,

1097-16  is  renumbered as Section 51.9335, Education Code.

1097-17              (22)  Section 51.935, Education Code, as added by

1097-18  Chapter 474, Acts of the 74th Legislature, Regular Session, 1995,

1097-19  is  renumbered as Section 51.9355, Education Code.     

1097-20              (23)  Section 51.940, Education Code, as added by

1097-21  Chapter 473, Acts of the 74th Legislature, Regular Session, 1995,

1097-22  is renumbered as Section 51.941, Education Code.

1097-23              (24)  Section 54.212, Education Code, as added by

1097-24  Chapter 327, Acts of the 74th Legislature, Regular Session, 1995,

 1098-1  is renumbered as Section 54.214, Education Code.

 1098-2              (25)  Section 54.212, Education Code, as added by

 1098-3  Chapter 451, Acts of the 74th Legislature, Regular Session, 1995,

 1098-4  is renumbered as Section 54.215, Education Code.

 1098-5              (26)  Section 130.008, Education Code, as added by

 1098-6  Chapter 459, Acts of the 74th Legislature, Regular Session, 1995,

 1098-7  is renumbered as Section 130.009, Education Code.

 1098-8              (27)  Section 3.522, Family Code, as added by Chapter

 1098-9  1024, Acts of the 74th Legislature, Regular Session, 1995, is

1098-10  renumbered as Section 3.523, Family Code.

1098-11              (28)  Subsection (c), Section 71.18, Family Code, as

1098-12  added by Chapter 324, Acts of the 74th Legislature, Regular

1098-13  Session, 1995, is relettered as Subsection (e), Section 71.18,

1098-14  Family Code.

1098-15              (29)  Section 262.111, Family Code, as added by Chapter

1098-16  943, Acts of the 74th Legislature, Regular Session, 1995, is

1098-17  renumbered as Section 262.112, Family Code.

1098-18              (30)  Section 264.109, Family Code, as added by Chapter

1098-19  943, Acts of the 74th Legislature, Regular Session, 1995, is

1098-20  renumbered as Section 264.110, Family Code.

1098-21              (31)  Section 26.015, Government Code, as added by

1098-22  Chapter 336, Acts of the 74th Legislature, Regular Session, 1995,

1098-23  is renumbered as Section 26.017, Government Code.

1098-24              (32)  Section 215.0735, Government Code, as added by

 1099-1  Chapter 165, Acts of the 74th Legislature, Regular Session, 1995,

 1099-2  is renumbered as Section 215.0735, Local Government Code.

 1099-3              (33)  Section 403.024, Government Code, as added by

 1099-4  Chapter 655, Acts of the 74th Legislature, Regular Session, 1995,

 1099-5  is renumbered as Section 403.025, Government Code.

 1099-6              (34)  Section 411.128, Government Code, as added by

 1099-7  Chapter 323, Acts of the 74th Legislature, Regular Session, 1995,

 1099-8  is renumbered as Section 411.129, Government Code.

 1099-9              (35)  Section 411.128, Government Code, as added by

1099-10  Chapter 485, Acts of the 74th Legislature, Regular Session, 1995,

1099-11  is renumbered as Section 411.130, Government Code.

1099-12              (36)  Section 411.128, Government Code, as added by

1099-13  Chapter 691, Acts of the 74th Legislature, Regular Session, 1995,

1099-14  is renumbered as Section 411.131, Government Code.

1099-15              (37)  Subsection (g), Section 415.034, Government Code,

1099-16  as added by Chapter 562, Acts of the 74th Legislature, Regular

1099-17  Session, 1995, is relettered as Subsection (i), Section 415.034,

1099-18  Government Code.

1099-19              (38)  Section 444.029, Government Code, as added by

1099-20  Chapter 108, Acts of the 74th Legislature, Regular Session, 1995,

1099-21  is renumbered as Section 444.030, Government Code.

1099-22              (39)  Section 493.014, Government Code, as added by

1099-23  Chapter 769, Acts of the 74th Legislature, Regular Session, 1995,

1099-24  is renumbered as Section 493.018, Government Code.

 1100-1              (40)  Section 493.015, Government Code, as added by

 1100-2  Chapter 321, Acts of the 74th Legislature, Regular Session, 1995,

 1100-3  is renumbered as Section 493.019, Government Code.

 1100-4              (41)  Section 493.017, Government Code, as added by

 1100-5  Chapter 321, Acts of the 74th Legislature, Regular Session, 1995,

 1100-6  is renumbered as Section 493.020, Government Code.

 1100-7              (42)  Section 497.097, Government Code, as added by

 1100-8  Chapter 302, Acts of the 74th Legislature, Regular Session, 1995,

 1100-9  is renumbered as Section 497.098, Government Code.

1100-10              (43)  Section 507.028, Government Code, as added by

1100-11  Chapter 321, Acts of the 74th Legislature, Regular Session, 1995,

1100-12  is renumbered as Section 507.031, Government Code.

1100-13              (44)  Section 552.027, Government Code, as added by

1100-14  Chapter 302, Acts of the 74th Legislature, Regular Session, 1995,

1100-15  is renumbered as Section 552.028, Government Code.

1100-16              (45)  Section 552.124, Government Code, as added by

1100-17  Chapter 219, Acts of the 74th Legislature, Regular Session, 1995,

1100-18  is renumbered as Section 552.125, Government Code.

1100-19              (46)  Section 552.124, Government Code, as added by

1100-20  Chapter 260, Acts of the 74th Legislature, Regular Session, 1995,

1100-21  is renumbered as Section 552.126, Government Code.

1100-22              (47)  Section 552.270, Government Code, as added by

1100-23  Chapter 693, Acts of the 74th Legislature, Regular Session, 1995,

1100-24  is renumbered as Section 552.274, Government Code.

 1101-1              (48)  Subdivision (5), Section 573.061, Government

 1101-2  Code, as added by Chapter 260, Acts of the 74th Legislature,

 1101-3  Regular Session, 1995, is renumbered as Subdivision (6), Section

 1101-4  573.061, Government Code.

 1101-5              (49)  Section 2003.047, Government Code, as added by

 1101-6  Chapter 765, Acts of the 74th Legislature, Regular Session, 1995,

 1101-7  is renumbered as Section 2003.049, Government Code.

 1101-8              (50)  Section 12.017, Health and Safety Code, as added

 1101-9  by Chapter 531, Acts of the 74th Legislature, Regular Session,

1101-10  1995, is renumbered as Section 12.018, Health and Safety Code.

1101-11              (51)  Section 12.017, Health and Safety Code, as added

1101-12  by Chapter 76, Acts of the 74th Legislature, Regular Session, 1995,

1101-13  is renumbered as Section 12.019, Health and Safety Code.

1101-14              (52)  Subchapter H, Chapter 12, Health and Safety Code,

1101-15  as added by Chapter 768, Acts of the 74th Legislature, Regular

1101-16  Session, 1995, is relettered as Subchapter I, Chapter 12, Health

1101-17  and Safety Code, and Sections 12.091, 12.092, 12.093, 12.094,

1101-18  12.095, and 12.096, Health and Safety Code, as added by that Act,

1101-19  are renumbered as Sections 12.111, 12.112, 12.113, 12.114, 12.115,

1101-20  and 12.116, Health and Safety Code, respectively.

1101-21              (53)  Chapter 88, Health and Safety Code, as added by

1101-22  Chapter 76, Acts of the 74th Legislature, Regular Session, 1995, is

1101-23  renumbered as Chapter 92, Health and Safety Code, and Sections

1101-24  88.001, 88.002, 88.003, 88.004, 88.005, 88.006, 88.007, 88.008, and

 1102-1  88.009, Health and Safety Code, as added by that Act, are

 1102-2  renumbered as Sections 92.001, 92.002, 92.003, 92.004, 92.005,

 1102-3  92.006, 92.007, 92.008, and 92.009, Health and Safety Code,

 1102-4  respectively.

 1102-5              (54)  Subsection (b), Section 242.037, Health and

 1102-6  Safety Code, as added by Chapter 1049, Acts of the 74th

 1102-7  Legislature, Regular Session, 1995, is relettered as Subsection

 1102-8  (c), Section 242.037, Health and Safety Code.

 1102-9              (55)  Subchapter H, Chapter 242, Health and Safety

1102-10  Code, as added by Chapter 189, Acts of the 74th Legislature,

1102-11  Regular Session, 1995, is relettered as Subchapter I, Chapter 242,

1102-12  Health and Safety Code, and Sections 242.201, 242.202, 242.203,

1102-13  242.204, and 242.205, Health and Safety Code, as added by that Act,

1102-14  are renumbered as Sections 242.221, 242.222, 242.223, 242.224, and

1102-15  242.225, Health and Safety Code, respectively.

1102-16              (56)  Subchapter H, Chapter 242, Health and Safety

1102-17  Code, as added by Chapter 1049, Acts of the 74th Legislature,

1102-18  Regular Session, 1995, is relettered as Subchapter J, Chapter 242,

1102-19  Health and Safety Code.

1102-20              (57)  Subsection (e), Section 247.026, Health and

1102-21  Safety Code, as added by Chapter 542, Acts of the 74th Legislature,

1102-22  Regular Session, 1995, is relettered as Subsection (f), Section

1102-23  247.026, Health and Safety Code.

1102-24              (58)  Subchapter H, Chapter 285, Health and Safety

 1103-1  Code, as added by Chapter 965, Acts of the 74th Legislature,

 1103-2  Regular Session, 1995, is relettered as Subchapter I, Chapter 285,

 1103-3  Health and Safety Code.

 1103-4              (59)  Section 533.045, Health and Safety Code, as added

 1103-5  by Chapter 574, Acts of the 74th Legislature, Regular Session,

 1103-6  1995, is renumbered as Section 533.047, Health and Safety Code.

 1103-7              (60)  Section 22.025, Human Resources Code, as added by

 1103-8  Chapter 531, Acts of the 74th Legislature, Regular Session, 1995,

 1103-9  is renumbered as Section 22.031, Human Resources Code.

1103-10              (61)  Section 31.0031, Human Resources Code, as added

1103-11  by Section 1.02, Chapter 655, Acts of the 74th Legislature, Regular

1103-12  Session, 1995, is renumbered as Section 31.0036, Human Resources

1103-13  Code.

1103-14              (62)  Section 122.020, Human Resources Code, as added

1103-15  by Chapter 746, Acts of the 74th Legislature, Regular Session,

1103-16  1995, is renumbered as Section 122.026, Human Resources Code.

1103-17              (63)  Section 406.097, Labor Code, as added by Chapter

1103-18  849, Acts of the 74th Legislature, Regular Session, 1995, is

1103-19  renumbered as Section 406.098, Labor Code.

1103-20              (64)  Section 42.024, Local Government Code, as added

1103-21  by Chapter 788, Acts of the 74th Legislature, Regular Session,

1103-22  1995, is renumbered as Section 42.025, Local Government Code.

1103-23              (65)  Section 81.029, Local Government Code, as added

1103-24  by Chapter 146, Acts of the 74th Legislature, Regular Session,

 1104-1  1995, is renumbered as Section 81.030, Local Government Code.

 1104-2              (66)  Section 280.002, Local Government Code, as added

 1104-3  by Chapter 913, Acts of the 74th Legislature, Regular Session,

 1104-4  1995, is renumbered as Section 280.003, Local Government Code.

 1104-5              (67)  Section 341.904, Local Government Code, as added

 1104-6  by Chapter 262, Acts of the 74th Legislature, Regular Session,

 1104-7  1995, is renumbered as Section 341.905, Local Government Code.

 1104-8              (68)  Subsection (d), Section 22.01, Penal Code, as

 1104-9  added by Chapter 659, Acts of the 74th Legislature, Regular

1104-10  Session, 1995, is relettered as Subsection (e), Section 22.01,

1104-11  Penal Code.

1104-12              (69)  Subsection (g), Section 31.03, Penal Code, as

1104-13  added by Chapter 843, Acts of the 74th Legislature, Regular

1104-14  Session, 1995, is relettered as Subsection (h), Section 31.03,

1104-15  Penal Code.

1104-16              (70)  Subsection (g), Section 46.03, Penal Code, as

1104-17  added by Chapter 790, Acts of the 74th Legislature, Regular

1104-18  Session, 1995, is relettered as Subsection (h), Section 46.03,

1104-19  Penal Code.

1104-20              (71)  Subchapter H, Chapter 92, Property Code, as added

1104-21  by Chapter 744, Acts of the 74th Legislature, Regular Session,

1104-22  1995, is relettered as Subchapter I, Chapter 92, Property Code, and

1104-23  Sections 92.331, 92.332, 92.333, and 92.334, Property Code, as

1104-24  added by that Act, are renumbered as Sections 92.351, 92.352,

 1105-1  92.353, and 92.354, Property Code, respectively.

 1105-2              (72)  Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,

 1105-3  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, and 24, Chapter 141,

 1105-4  Property Code, as added by Chapter 1043, Acts of the 74th

 1105-5  Legislature, Regular Session, 1995, are renumbered as Sections

 1105-6  141.001, 141.002, 141.003, 141.004, 141.005, 141.006, 141.007,

 1105-7  141.008, 141.009, 141.010, 141.011, 141.012, 141.013, 141.014,

 1105-8  141.015, 141.016, 141.017, 141.018, 141.019, 141.020, 141.021,

 1105-9  141.022, 141.023, and 141.024, Property Code, respectively.

1105-10              (73)  Sections 23.12D, 23.12E, and 23.12F, Tax Code, as

1105-11  added by Chapter 836, Acts of the 74th Legislature, Regular

1105-12  Session, 1995, are renumbered as Sections 23.124, 23.125, and

1105-13  23.126, Tax Code, respectively.

1105-14              (74)  Subsection (j), Section 23.55, Tax Code, as added

1105-15  by Chapter 471, Acts of the 74th Legislature, Regular Session,

1105-16  1995, is relettered as Subsection (l), Section 23.55, Tax Code.

1105-17              (75)  Section 26.179, Water Code, as added by Chapter

1105-18  76, Acts of the 74th Legislature, Regular Session, 1995, is

1105-19  renumbered as Section 26.180, Water Code.

1105-20        SECTION 31.02.  If the number, letter, or designation

1105-21  assigned by this article conflicts with a number, letter, or

1105-22  designation assigned by another Act of the 75th Legislature, the

1105-23  other Act controls, and the number, letter, or designation assigned

1105-24  by this article has no effect.

 1106-1                ARTICLE 32.  EFFECTIVE DATE; EMERGENCY

 1106-2        SECTION 32.01.  This Act takes effect September 1, 1997.

 1106-3        SECTION 32.02.  The importance of this legislation and the

 1106-4  crowded condition of the calendars in both houses create an

 1106-5  emergency and an imperative public necessity that the

 1106-6  constitutional rule requiring bills to be read on three several

 1106-7  days in each house be suspended, and this rule is hereby suspended.