By Sibley S.B. No. 1288
75R327 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to conforming the statutes to reflect the abolishment of
1-3 the office of state treasurer.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. CHANGES TO ALCOHOLIC BEVERAGE CODE
1-6 SECTION 1.01. Section 5.441(a), Alcoholic Beverage Code, is
1-7 amended to read as follows:
1-8 (a) If a member of the commission, the administrator, or an
1-9 employee of the commission is called to attend a federal or state
1-10 judicial proceeding inside or outside the state and the attendance
1-11 relates to the individual's duties with the commission, the
1-12 individual shall pay to the comptroller [state treasurer] any
1-13 witness fees he receives. The comptroller [treasurer] shall
1-14 deposit the fees in the state treasury to the credit of an
1-15 appropriation made to the commission for payment of fees and
1-16 mileage of witnesses called by the commission.
1-17 SECTION 1.02. Section 11.35, Alcoholic Beverage Code, is
1-18 amended to read as follows:
1-19 Sec. 11.35. Payment of Fee. Each permit application must be
1-20 accompanied by a cashier's check or money order for the amount of
1-21 the state fee, payable to the order of the comptroller [state
1-22 treasurer].
1-23 SECTION 1.03. Section 201.06(a), Alcoholic Beverage Code, is
1-24 amended to read as follows:
2-1 (a) The tax on liquor, levied and computed under this
2-2 subchapter, shall be paid by a remittance payable to the
2-3 comptroller [state treasurer] and forwarded together with any
2-4 required sworn statement of taxes due to the commission in Austin
2-5 on or before the date it is due.
2-6 SECTION 1.04. Section 201.48, Alcoholic Beverage Code, is
2-7 amended to read as follows:
2-8 Sec. 201.48. Payment. The tax on ale and malt liquor shall
2-9 be paid by a remittance payable to the comptroller [state
2-10 treasurer] and forwarded, together with any required sworn
2-11 statements of taxes due, to the commission in Austin on or before
2-12 the date it is due. A discount of two percent of the amount due
2-13 shall be withheld by the permittee or licensee for keeping records,
2-14 furnishing bonds, and properly accounting for the remittance of the
2-15 tax due. No discount is permitted if the tax is delinquent at the
2-16 time of payment.
2-17 SECTION 1.05. Section 201.97(b), Alcoholic Beverage Code, is
2-18 amended to read as follows:
2-19 (b) On requisition of the commission, the tax stamps shall
2-20 be printed under the direction of the General Services Commission
2-21 [board of control] and furnished to the comptroller [state
2-22 treasurer], who shall furnish the tax stamps only to holders of
2-23 medicinal permits in this state.
2-24 SECTION 1.06. Section 203.10, Alcoholic Beverage Code, is
2-25 amended to read as follows:
2-26 Sec. 203.10. Payment of Taxes; Discount. The tax on beer
2-27 shall be paid by a remittance payable to the comptroller [state
3-1 treasurer] and forwarded with any required sworn statements of
3-2 taxes due to the commission in Austin on or before the due date. A
3-3 discount of two percent of the amount due shall be withheld by the
3-4 permittee or licensee for keeping records, furnishing bonds, and
3-5 properly accounting for the remittance of the tax due. No discount
3-6 is permitted if the tax is delinquent at the time of payment.
3-7 ARTICLE 2. CHANGES TO AGRICULTURE CODE
3-8 SECTION 2.01. Section 14.023, Agriculture Code, is amended
3-9 to read as follows:
3-10 Sec. 14.023. Termination of Storage. (a) A warehouseman
3-11 desiring to terminate the storage of grain in the warehouseman's
3-12 warehouse, including grain that is abandoned or is unclaimed prior
3-13 to the sale of a warehouse, shall do so in accordance with Sections
3-14 7.206 and 7.210, Business & Commerce Code, except that the
3-15 warehouseman is not required to hold the balance of the proceeds of
3-16 a sale, but may transfer the balance to the comptroller [state
3-17 treasurer], who shall treat the money in the same manner as an
3-18 escheated bank account.
3-19 (b) A purchaser in good faith of grain sold under Section
3-20 7.210, Business & Commerce Code, takes the grain free of any rights
3-21 of the holder of the receipt, but the receipt is evidence of
3-22 entitlement to the escheated funds deposited with the comptroller
3-23 [state treasurer] under Subsection (a) of this section.
3-24 SECTION 2.02. Sections 44.007(f), (g), (h), and (i),
3-25 Agriculture Code, are amended to read as follows:
3-26 (f) After reviewing each linked deposit loan application,
3-27 the board shall recommend to the comptroller [state treasurer] the
4-1 acceptance or rejection of the application.
4-2 (g) After acceptance of the application, the comptroller
4-3 [state treasurer] shall place a linked deposit with the applicable
4-4 eligible lending institution for the period the comptroller
4-5 [treasurer] considers appropriate. The comptroller [state
4-6 treasurer] may not place a deposit for a period extending beyond
4-7 the state fiscal biennium in which it is placed. Subject to the
4-8 limitation described by Section 44.010 of this chapter, the
4-9 comptroller [treasurer] may place time deposits at an interest rate
4-10 described by Section 44.001(5)(A) of this chapter, notwithstanding
4-11 any order of the State Depository Board to the contrary.
4-12 (h) Before the placing of a linked deposit, the eligible
4-13 lending institution and the state, represented by the comptroller
4-14 [state treasurer] and the board, shall enter into a written deposit
4-15 agreement containing the conditions on which the linked deposit is
4-16 made.
4-17 (i) If a lending institution holding linked deposits ceases
4-18 to be a state depository, the comptroller [state treasurer] may
4-19 withdraw the linked deposits.
4-20 SECTION 2.03. Section 44.008(b), Agriculture Code, is
4-21 amended to read as follows:
4-22 (b) The board shall monitor compliance with this chapter and
4-23 inform the comptroller [state treasurer] of noncompliance on the
4-24 part of an eligible lending institution.
4-25 SECTION 2.04. Sections 58.032(c) and (f), Agriculture Code,
4-26 are amended to read as follows:
4-27 (c) The board may provide for the establishment and
5-1 maintenance of separate accounts within the Texas agricultural
5-2 fund, including program accounts as prescribed by the board, an
5-3 interest and sinking account, a reserve account, and other accounts
5-4 provided for by the board in its resolutions. Repayments of
5-5 financial assistance under any program funded in whole or in part
5-6 with the proceeds of any series of general obligation bonds shall
5-7 be deposited first in the interest and sinking account as
5-8 prescribed by the board's resolutions authorizing such series of
5-9 general obligation bonds, and second in the reserve account in
5-10 respect of such series of general obligation bonds until that
5-11 account is fully funded as prescribed by the board's resolutions.
5-12 The fund and all accounts within it shall be kept and maintained at
5-13 the direction of the board and held in trust by the comptroller
5-14 [state treasurer] for and on behalf of the authority and the owners
5-15 of the general obligation bonds issued in accordance with this
5-16 chapter, and may be used only as provided by this chapter. Pending
5-17 its use, money in the fund shall be invested as prescribed by the
5-18 resolution by which the bonds were issued.
5-19 (f) The department may receive, and shall deposit in the
5-20 Texas agricultural fund, appropriations, grants, donations, earned
5-21 federal funds, and the proceeds of any investment pools operated by
5-22 the comptroller [treasurer].
5-23 SECTION 2.05. Section 58.033(d), Agriculture Code, is
5-24 amended to read as follows:
5-25 (d) The board may make additional covenants with respect to
5-26 the bonds and the pledged revenues and may provide for the flow of
5-27 funds, the establishment and maintenance and investment of funds,
6-1 which may include interest and sinking funds, reserve funds,
6-2 program funds, and other funds. Those funds shall be kept and
6-3 maintained in escrow and in trust by the comptroller [state
6-4 treasurer] for and on behalf of the authority and the owners of its
6-5 revenue bonds, in funds held outside the treasury pursuant to
6-6 Chapter 404, Government Code [Section 3.051, Treasury Act (Article
6-7 4393-1, Vernon's Texas Civil Statutes)]. Those funds shall be used
6-8 only as provided by this chapter, and pending their use shall be
6-9 invested as provided by any resolution of the authority. Legal
6-10 title to those funds shall be in the authority unless or until paid
6-11 out as provided by this chapter or by the resolutions authorizing
6-12 the authority's bonds. The comptroller [state treasurer], as
6-13 custodian, shall administer those funds strictly and only as
6-14 provided by this chapter and in those resolutions. The comptroller
6-15 [treasurer] shall invest the funds in investments authorized by law
6-16 for state funds. The state shall take no action with respect to
6-17 those funds other than that specified in this chapter and in those
6-18 resolutions.
6-19 SECTION 2.06. Section 58.035, Agriculture Code, is amended
6-20 to read as follows:
6-21 Sec. 58.035. Refunding Bonds. The authority may issue,
6-22 sell, and deliver bonds to refund all or any part of its
6-23 outstanding bonds, including the payment of any redemption premium
6-24 and interest accrued, under such terms, conditions, and details as
6-25 determined by the board. Bonds issued by the authority may be
6-26 refunded in the manner provided by any other applicable statute,
6-27 including Chapter 503, Acts of the 54th Legislature, Regular
7-1 Session, 1955 (Article 717k, Vernon's Texas Civil Statutes), and
7-2 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
7-3 (Article 717k-3, Vernon's Texas Civil Statutes). Bonds, the
7-4 provision for the payment of all interest and applicable premiums
7-5 on which and the principal of which has been made through the
7-6 irrevocable deposit of money with the comptroller [treasurer] in
7-7 accordance with the provisions of such an applicable statute, shall
7-8 no longer be charged against the issuing authority of the
7-9 authority, and on the making of such provision such issuing
7-10 authority shall, to the extent of the principal amount of such
7-11 bonds, be restored.
7-12 SECTION 2.07. Section 58.039(a), Agriculture Code, as added
7-13 by Chapter 32, Acts of the 70th Legislature, 2nd Called Session,
7-14 1987, is amended to read as follows:
7-15 (a) The bond review board is composed of:
7-16 (1) the governor;
7-17 (2) the lieutenant governor;
7-18 (3) the speaker of the house of representatives; and
7-19 (4) [the state treasurer; and]
7-20 [(5)] the comptroller of public accounts.
7-21 SECTION 2.08. Section 59.015(a), Agriculture Code, is
7-22 amended to read as follows:
7-23 (a) The board may use money in the fund attributable to the
7-24 issuance and sale of bonds to pay:
7-25 (1) legal fees and fees for financial advice the board
7-26 finds necessary for the sale of bonds;
7-27 (2) the expense of publishing notice of sale of an
8-1 installment of bonds;
8-2 (3) the expense of printing the bonds;
8-3 (4) the expense of issuing the bonds, including the
8-4 actual costs of travel, lodging, and meals of officers, members, or
8-5 employees of the board, directors or employees of the authority,
8-6 the comptroller, [the state treasurer,] or the attorney general
8-7 that the board finds necessary to implement the issuance, rating,
8-8 or delivery of the bonds;
8-9 (5) the cost of manually signing the bonds;
8-10 (6) remuneration to any agent employed by the board to
8-11 pay the principal of and interest on the bonds;
8-12 (7) any amount required to be paid to maintain the
8-13 federal tax exemption of interest on the bonds; or
8-14 (8) any other cost, fee, or expense relating to the
8-15 issuance of the bonds.
8-16 SECTION 2.09. Section 59.016(b), Agriculture Code, as
8-17 amended by Chapter 265, Acts of the 74th Legislature, Regular
8-18 Session, 1995, is amended to read as follows:
8-19 (b) Money in the fund that is not immediately committed to
8-20 paying principal of and interest on the bonds or to paying expenses
8-21 as provided by Section 59.015 of this code may be invested by the
8-22 board in:
8-23 (1) a direct security repurchase agreement or reverse
8-24 security repurchase agreement made with a state or national bank
8-25 domiciled in this state or with a primary dealer approved by the
8-26 federal reserve system;
8-27 (2) a direct obligation of or obligation the principal
9-1 and interest of which are guaranteed by the United States
9-2 government;
9-3 (3) a direct obligation of or obligation guaranteed by
9-4 the Federal Home Loan Banks, the Federal National Mortgage
9-5 Association, the Federal Farm Credit System, the Student Loan
9-6 Marketing Association, the Federal Home Loan Mortgage Corporation,
9-7 or a successor to one of those organizations;
9-8 (4) a bankers' acceptance that:
9-9 (A) is eligible for purchase by a member of the
9-10 federal reserve system;
9-11 (B) matures in 270 days or less; and
9-12 (C) is issued by a bank that has received the
9-13 highest short-term credit rating by a nationally recognized
9-14 investment rating firm;
9-15 (5) commercial paper that:
9-16 (A) matures in 270 days or less; and
9-17 (B) has received the highest short-term credit
9-18 rating by a nationally recognized investment rating firm;
9-19 (6) a contract that is written by the board in which
9-20 the board grants the purchaser the right to purchase securities in
9-21 the board's marketable securities portfolio at a specified price
9-22 over a specified period and for which the board is paid a fee and
9-23 that specifically prohibits naked-option or uncovered option
9-24 trading;
9-25 (7) an obligation of a state or of an agency, county,
9-26 city, or other political subdivision of a state or a mutual fund
9-27 composed of those obligations;
10-1 (8) an investment instrument, obligation, or other
10-2 evidence of indebtedness the payment of which is directly or
10-3 indirectly guaranteed by the full faith and credit of the United
10-4 States government;
10-5 (9) an investment, account, depository receipt, or
10-6 deposit that is fully:
10-7 (A) insured by the Federal Deposit Insurance
10-8 Corporation or a successor to that organization; or
10-9 (B) secured by a security described by
10-10 Subdivision (2), (3), or (8) of this subsection;
10-11 (10) a collateralized mortgage obligation fully
10-12 secured by securities or mortgages issued or guaranteed by the
10-13 Government National Mortgage Association (GNMA) or any entity
10-14 identified by Subdivision (3) of this subsection;
10-15 (11) a security or evidence of indebtedness issued by
10-16 the Farm Credit System Financial Assistance Corporation, the
10-17 Private Export Funding Corporation, or the Export-Import Bank; and
10-18 (12) any other investment authorized for investment of
10-19 state funds by the comptroller [state treasurer] under Section
10-20 404.024, Government Code.
10-21 SECTION 2.10. Sections 59.021(e) and (h), Agriculture Code,
10-22 are amended to read as follows:
10-23 (e) The fund and each account in the fund shall be kept and
10-24 maintained at the direction of the board and held in trust by the
10-25 comptroller [state treasurer] for and on behalf of the board and
10-26 the owners of the bonds issued under this chapter.
10-27 (h) The board may receive, and shall deposit in the fund,
11-1 appropriations, grants, donations, earned federal funds, and the
11-2 proceeds of any investment pools operated by the comptroller [state
11-3 treasurer].
11-4 SECTION 2.11. Section 103.002(a), Agriculture Code, is
11-5 amended to read as follows:
11-6 (a) The produce recovery fund is a special trust fund with
11-7 the comptroller [state treasurer] administered by the department,
11-8 without appropriation, for the payment of claims against commission
11-9 merchants and retailers licensed under Chapter 101 or 102 of this
11-10 code.
11-11 SECTION 2.12. Section 131.024(d), Agriculture Code, is
11-12 amended to read as follows:
11-13 (d) The owner of bees, equipment, pollen, or honey treated
11-14 or destroyed under this section is liable for the costs of
11-15 treatment or destruction, and the inspector may sue to collect
11-16 those costs. The inspector shall remit money collected under this
11-17 subsection to the comptroller [state treasurer] for deposit to the
11-18 credit of the general revenue fund.
11-19 SECTION 2.13. Section 131.063(b), Agriculture Code, is
11-20 amended to read as follows:
11-21 (b) The inspector shall remit money collected under this
11-22 section to the comptroller [State Treasurer] for deposit to the
11-23 credit of the bee disease control fund.
11-24 SECTION 2.14. Section 201.023(c), Agriculture Code, is
11-25 amended to read as follows:
11-26 (c) The state board by resolution may authorize the chairman
11-27 of the board or the administrative officer to approve claims and
12-1 accounts payable by the board. That approval is sufficient to
12-2 authorize the comptroller of public accounts to issue a warrant
12-3 drawn on the funds appropriated to the board for payment of the
12-4 claim and is sufficient to authorize the comptroller [state
12-5 treasurer] to honor payment of the warrant.
12-6 SECTION 2.15. Section 252.056(a), Agriculture Code, is
12-7 amended to read as follows:
12-8 (a) Except as provided by Subsection (b) of this section,
12-9 proceeds derived from the sale of the bonds, less the
12-10 administrative costs of issuing the bonds, shall be deposited with
12-11 the comptroller [state treasurer] to the credit of the farm and
12-12 ranch loan security fund.
12-13 SECTION 2.16. Section 252.057, Agriculture Code, is amended
12-14 to read as follows:
12-15 Sec. 252.057. Payment of Principal and Interest. As
12-16 required by Article III, Section 50c, of the Texas Constitution,
12-17 out of the first money coming into the treasury in each fiscal year
12-18 not otherwise appropriated by the constitution, the comptroller
12-19 [state treasurer] shall pay or cause to be paid the principal on
12-20 bonds issued under this chapter as they mature and the interest as
12-21 it becomes payable, after using for that purpose any funds that are
12-22 on deposit in the interest and sinking fund and are available for
12-23 that purpose.
12-24 SECTION 2.17. Section 252.062, Agriculture Code, is amended
12-25 to read as follows:
12-26 Sec. 252.062. Mandamus. The performance of the official
12-27 duties of the commissioner and[,] the comptroller [and the
13-1 treasurer] under this chapter and the constitution and the duties
13-2 of any state officer imposed by the order authorizing the bonds may
13-3 be enforced by mandamus or other appropriate proceeding.
13-4 ARTICLE 3. CHANGES TO BUSINESS CORPORATION ACT
13-5 SECTION 3.01. Article 7.11, Texas Business Corporation Act,
13-6 is amended to read as follows:
13-7 Art. 7.11. Deposit with Comptroller [State Treasurer] of
13-8 Amount Due Certain Shareholders and Creditors. A. Upon the
13-9 voluntary or involuntary dissolution of a corporation, the portion
13-10 of the assets distributable to a creditor or shareholder who is
13-11 unknown or cannot be found after the exercise of reasonable
13-12 diligence by the person or persons responsible for the distribution
13-13 in liquidation of the corporation's assets shall be reduced to cash
13-14 and deposited with the Comptroller [State Treasurer], together with
13-15 a statement giving the name of the person, if known, entitled to
13-16 such fund, his last known address, the amount of his distributive
13-17 portion, and such other information about such person as the
13-18 Comptroller [State Treasurer] may reasonably require, whereupon the
13-19 person or persons responsible for the distribution in liquidation
13-20 of the corporation's assets shall be released and discharged from
13-21 any further liability with respect to the funds so deposited. The
13-22 Comptroller [State Treasurer] shall issue his receipt for such fund
13-23 and shall deposit same in a special account to be maintained by
13-24 him.
13-25 B. On receipt of satisfactory written proof of ownership or
13-26 of right to such fund within seven (7) years from the date such
13-27 fund was so deposited, the Comptroller [State Treasurer shall
14-1 certify such fact to the Comptroller of Public Accounts, who] shall
14-2 issue proper warrant therefor [drawn on the State Treasurer] in
14-3 favor of the person or persons then entitled thereto. If no
14-4 claimant has made satisfactory proof of right to such fund within
14-5 seven (7) years from the time of such deposit the Comptroller
14-6 [State Treasurer] shall then cause to be published in one issue of
14-7 a newspaper of general circulation in Travis County, Texas, a
14-8 notice of the proposed escheat of such fund, giving the name of the
14-9 creditor or shareholder apparently entitled thereto, his last known
14-10 address, if any, the amount of the fund so deposited, and the name
14-11 of the dissolved corporation from whose assets such fund was
14-12 derived. If no claimant makes satisfactory proof of right to such
14-13 fund within two months from the time of such publication, the fund
14-14 so unclaimed shall thereupon automatically escheat to and become
14-15 the property of the General Revenue Fund of the State of Texas.
14-16 ARTICLE 4. CHANGES TO CODE OF CRIMINAL PROCEDURE
14-17 SECTION 4.01. Article 2.12, Code of Criminal Procedure, is
14-18 amended to read as follows:
14-19 Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
14-20 officers:
14-21 (1) sheriffs and their deputies;
14-22 (2) constables and deputy constables;
14-23 (3) marshals or police officers of an incorporated
14-24 city, town, or village;
14-25 (4) rangers and officers commissioned by the Public
14-26 Safety Commission and the Director of the Department of Public
14-27 Safety;
15-1 (5) investigators of the district attorneys', criminal
15-2 district attorneys', and county attorneys' offices;
15-3 (6) law enforcement agents of the Texas Alcoholic
15-4 Beverage Commission;
15-5 (7) each member of an arson investigating unit
15-6 commissioned by a city, a county, or the state;
15-7 (8) officers commissioned under Section 37.081,
15-8 Education Code, or Subchapter E, Chapter 51, Education Code;
15-9 (9) officers commissioned by the General Services
15-10 Commission;
15-11 (10) law enforcement officers commissioned by the
15-12 Parks and Wildlife Commission;
15-13 (11) airport police officers commissioned by a city
15-14 with a population of more than one million, according to the most
15-15 recent federal census, that operates an airport that serves
15-16 commercial air carriers;
15-17 (12) airport security personnel commissioned as peace
15-18 officers by the governing body of any political subdivision of this
15-19 state, other than a city described by Subdivision (11), that
15-20 operates an airport that serves commercial air carriers;
15-21 (13) municipal park and recreational patrolmen and
15-22 security officers;
15-23 (14) security officers commissioned as peace officers
15-24 by the comptroller [State Treasurer];
15-25 (15) officers commissioned by a water control and
15-26 improvement district under Section 49.216 [51.132], Water Code;
15-27 (16) officers commissioned by a board of trustees
16-1 under Chapter 341, Acts of the 57th Legislature, Regular Session,
16-2 1961 (Article 1187f, Vernon's Texas Civil Statutes);
16-3 (17) investigators commissioned by the Texas State
16-4 Board of Medical Examiners;
16-5 (18) officers commissioned by the board of managers of
16-6 the Dallas County Hospital District, the Tarrant County Hospital
16-7 District, or the Bexar County Hospital District under Section
16-8 281.057, Health and Safety Code;
16-9 (19) county park rangers commissioned under Subchapter
16-10 E, Chapter 351, Local Government Code;
16-11 (20) investigators employed by the Texas Racing
16-12 Commission;
16-13 (21) officers commissioned by the State Board of
16-14 Pharmacy;
16-15 (22) officers commissioned by the governing body of a
16-16 metropolitan rapid transit authority under Section 451.108,
16-17 Transportation Code [13, Chapter 141, Acts of the 63rd Legislature,
16-18 Regular Session, 1973 (Article 1118x, Vernon's Texas Civil
16-19 Statutes)], or by a regional transportation authority under Section
16-20 452.110, Transportation Code [10, Chapter 683, Acts of the 66th
16-21 Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
16-22 Civil Statutes)];
16-23 (23) [officers commissioned under the Texas High-Speed
16-24 Rail Act (Article 6674v.2, Revised Statutes);]
16-25 [(24)] investigators commissioned by the attorney
16-26 general under Section 402.009, Government Code;
16-27 (24) [(25)] security officers and investigators
17-1 commissioned as peace officers under Chapter 466, Government Code;
17-2 (25) [(26)] an officer employed by the Texas
17-3 Department of Health under Section 431.2471, Health and Safety
17-4 Code;
17-5 (26) [(27)] officers appointed by an appellate court
17-6 under Subchapter F, Chapter 53, Government Code;
17-7 (27) [(28)] officers commissioned by the state fire
17-8 marshal under Chapter 417, Government Code; [and]
17-9 (28) [(29)] an investigator commissioned by the
17-10 commissioner of insurance under Article 1.10D, Insurance Code;
17-11 and[.]
17-12 (29) apprehension specialists commissioned by the
17-13 Texas Youth Commission as officers under Section 61.0931, Human
17-14 Resources Code.
17-15 SECTION 4.02. Subsection (b), Section 8B, Article 42.18,
17-16 Code of Criminal Procedure, is amended to read as follows:
17-17 (b) The comptroller [state treasurer] shall be the trustee
17-18 of the parolee restitution fund as provided by Section 404.073,
17-19 Government Code.
17-20 ARTICLE 5. CHANGES TO EDUCATION CODE
17-21 SECTION 5.01. Section 7.055(a), Education Code, is amended
17-22 to read as follows:
17-23 (a) The commissioner has the following powers and duties:
17-24 (1) The commissioner shall serve as the educational
17-25 leader of the state.
17-26 (2) The commissioner shall serve as executive officer
17-27 of the agency and as executive secretary of the board.
18-1 (3) The commissioner shall carry out the duties
18-2 imposed on the commissioner by the board or the legislature.
18-3 (4) The commissioner shall prescribe a uniform system
18-4 of forms, reports, and records necessary to fulfill the reporting
18-5 and recordkeeping requirements of this title.
18-6 (5) The commissioner may delegate ministerial and
18-7 executive functions to agency staff and may employ division heads
18-8 and any other employees and clerks to perform the duties of the
18-9 agency.
18-10 (6) The commissioner shall adopt an annual budget for
18-11 operating the Foundation School Program as prescribed by Subsection
18-12 (b).
18-13 (7) The commissioner may issue vouchers for the
18-14 expenditures of the agency and shall examine and must approve any
18-15 account to be paid out of the school funds [by the state treasurer]
18-16 before the comptroller may issue a warrant.
18-17 (8) The commissioner shall file annually with the
18-18 governor and the Legislative Budget Board a complete and detailed
18-19 written report accounting for all funds received and disbursed by
18-20 the agency during the preceding fiscal year.
18-21 (9) The commissioner shall have a manual published at
18-22 least once every two years that contains Title 1 and this title,
18-23 any other provisions of this code relating specifically to public
18-24 primary or secondary education, and an appendix of all other state
18-25 laws relating to public primary or secondary education and shall
18-26 provide for the distribution of the manual as determined by the
18-27 board.
19-1 (10) The commissioner may visit different areas of
19-2 this state, address teachers' associations and educational
19-3 gatherings, instruct teachers, and promote all aspects of education
19-4 and may be reimbursed for necessary travel expenses incurred under
19-5 this subdivision to the extent authorized by the General
19-6 Appropriations Act.
19-7 (11) The commissioner may appoint advisory committees,
19-8 in accordance with Article 6252-33, Revised Statutes, as necessary
19-9 to advise the commissioner in carrying out the duties and mission
19-10 of the agency.
19-11 (12) The commissioner shall appoint an agency auditor.
19-12 (13) The commissioner may provide for reductions in
19-13 the number of agency employees.
19-14 (14) The commissioner shall carry out duties relating
19-15 to the investment capital fund under Section 7.024.
19-16 (15) The commissioner shall review and act, if
19-17 necessary, on applications for waivers under Section 7.056.
19-18 (16) The commissioner shall carry out duties relating
19-19 to regional education service centers as specified under Chapter 8.
19-20 (17) The commissioner shall distribute funds to
19-21 open-enrollment charter schools as required under Subchapter D,
19-22 Chapter 12.
19-23 (18) The commissioner shall adopt a recommended
19-24 appraisal process and criteria on which to appraise the performance
19-25 of teachers, a recommended appraisal process and criteria on which
19-26 to appraise the performance of administrators, and a job
19-27 description and evaluation form for use in evaluating counselors,
20-1 as provided by Subchapter H, Chapter 21.
20-2 (19) The commissioner shall coordinate and implement
20-3 teacher recruitment programs under Section 21.004.
20-4 (20) The commissioner shall perform duties in
20-5 connection with the certification and assignment of hearing
20-6 examiners as provided by Subchapter F, Chapter 21.
20-7 (21) The commissioner shall carry out duties under the
20-8 Texas Advanced Placement Incentive Program under Subchapter C,
20-9 Chapter 28.
20-10 (22) The commissioner may adopt rules for optional
20-11 extended year programs under Section 29.082.
20-12 (23) The commissioner shall monitor and evaluate
20-13 prekindergarten programs and other child-care programs as required
20-14 under Section 29.154.
20-15 (24) The commissioner, with the approval of the board,
20-16 shall develop and implement a plan for the coordination of services
20-17 to children with disabilities as required under Section 30.001.
20-18 (25) The commissioner shall develop a system to
20-19 distribute to school districts or regional education service
20-20 centers a special supplemental allowance for students with visual
20-21 impairments as required under Section 30.002.
20-22 (26) The commissioner, with the assistance of the
20-23 comptroller, shall determine amounts to be distributed to the Texas
20-24 School for the Blind and Visually Impaired and the Texas School for
20-25 the Deaf as provided by Section 30.003 and to the Texas Youth
20-26 Commission as provided by Section 30.102.
20-27 (27) The commissioner shall establish a procedure for
21-1 resolution of disputes between a school district and the Texas
21-2 School for the Blind and Visually Impaired under Section 30.021.
21-3 (28) The commissioner shall perform duties relating to
21-4 the funding, adoption, and purchase of textbooks under Chapter 31.
21-5 (29) The commissioner may enter into contracts
21-6 concerning technology in the public school system as authorized
21-7 under Chapter 32.
21-8 (30) The commissioner shall adopt a recommended
21-9 contract form for the use, acquisition, or lease with option to
21-10 purchase of school buses under Section 34.009.
21-11 (31) The commissioner shall ensure that the cost of
21-12 using school buses for a purpose other than the transportation of
21-13 students to or from school is properly identified in the Public
21-14 Education Information Management System (PEIMS) under Section
21-15 34.010.
21-16 (32) The commissioner shall perform duties in
21-17 connection with the public school accountability system as
21-18 prescribed by Chapter 39.
21-19 (33) The commissioner shall develop and propose to the
21-20 legislature an assessment system for students exempted from the
21-21 generally applicable assessment program under Subchapter B, Chapter
21-22 39.
21-23 (34) The commissioner shall perform duties in
21-24 connection with the equalized wealth level under Chapter 41.
21-25 (35) The commissioner shall perform duties in
21-26 connection with the Foundation School Program as prescribed by
21-27 Chapter 42.
22-1 (36) The commissioner shall establish advisory
22-2 guidelines relating to the fiscal management of a school district
22-3 and report annually to the board on the status of school district
22-4 fiscal management as required under Section 44.001.
22-5 (37) The commissioner shall review school district
22-6 audit reports as required under Section 44.008.
22-7 (38) The commissioner shall perform duties in
22-8 connection with the guaranteed bond program as prescribed by
22-9 Subchapter C, Chapter 45.
22-10 (39) The commissioner shall cooperate with the Texas
22-11 Higher Education Coordinating Board in connection with the Texas
22-12 partnership and scholarship program under Subchapter P, Chapter 61.
22-13 (40) The commissioner shall suspend the certificate of
22-14 an educator or permit of a teacher who violates Chapter 617,
22-15 Government Code.
22-16 SECTION 5.02. Section 43.012(f), Education Code, is amended
22-17 to read as follows:
22-18 (f) Refunding bonds issued with the approval or pursuant to
22-19 a refunding agreement with the State Board of Education in
22-20 compliance with either this section or Section 43.011 shall, on the
22-21 order of the State Board of Education, be exchanged by the
22-22 comptroller [state treasurer] for the defaulted obligations they
22-23 have been issued to refund.
22-24 SECTION 5.03. Section 43.014(d), Education Code, is amended
22-25 to read as follows:
22-26 (d) On receipt of certificates issued to the comptroller by
22-27 the commissioner, the comptroller shall draw warrants [on the state
23-1 treasurer and] in favor of the treasurer of the available school
23-2 fund of each school district for the amounts stated in the
23-3 certificates. All such warrants shall be registered [and
23-4 transmitted to the state treasurer].
23-5 SECTION 5.04. Section 43.015, Education Code, is amended to
23-6 read as follows:
23-7 Sec. 43.015. DUTIES OF COMPTROLLER [STATE TREASURER].
23-8 (a) Not later than the 30th day before the first day of each
23-9 regular session of the legislature and not later than the 10th day
23-10 before the first day of any special session at which there can be
23-11 legislation respecting the public schools, the comptroller [state
23-12 treasurer] shall report to the governor the condition of the
23-13 permanent school fund and the available school fund, the amount of
23-14 each fund, and the manner of its disbursement.
23-15 (b) The comptroller [treasurer] shall provide the State
23-16 Board of Education with the reports specified by Subsection (a) and
23-17 with additional reports concerning those funds requested by the
23-18 State Board of Education.
23-19 (c) The comptroller [treasurer] shall ensure that no portion
23-20 of either the permanent school fund or the available school fund is
23-21 used to pay any warrant drawn against any other fund.
23-22 (d) The comptroller [treasurer] shall receive and hold in a
23-23 special deposit and account for all properties belonging to the
23-24 available school fund. All warrants drawn on that fund by the
23-25 comptroller pursuant to a certificate of the commissioner must be
23-26 registered by the comptroller [state treasurer] and then
23-27 transmitted to the commissioner, and when properly endorsed shall
24-1 be paid by the comptroller [treasurer] in the order of their
24-2 presentation.
24-3 (e) On order of the State Board of Education, the
24-4 comptroller [treasurer] shall exchange or accept refunding bonds in
24-5 lieu of:
24-6 (1) either matured or unmatured bonds held for the
24-7 benefit of the permanent school fund, which are being refunded
24-8 under this chapter;
24-9 (2) defaulted obligations held for the benefit of the
24-10 available school fund if the refunding bonds are issued in
24-11 compliance with Section 43.012;
24-12 (3) defaulted obligations of any school district of
24-13 this state held for the benefit of the permanent school fund or the
24-14 available school fund if the refunding bonds are issued in
24-15 compliance with Section 43.011; or
24-16 (4) refunding bonds of any school district of this
24-17 state for school bonds not matured held by the comptroller [state
24-18 treasurer] for the permanent school fund if the new refunding bonds
24-19 are issued by the school district in compliance with this code.
24-20 (f) The comptroller [state treasurer] shall be the custodian
24-21 of all securities enumerated in Section 43.003(6) and of other
24-22 securities as designated by the State Board of Education in which
24-23 the school funds of the state are invested. The comptroller
24-24 [treasurer] shall keep those securities in the comptroller's
24-25 [treasurer's] custody until paid off, discharged, delivered as
24-26 required by the State Board of Education, or otherwise disposed of
24-27 by the proper authorities of the state, and on the proper
25-1 installment of any interest or dividend, shall see that the proper
25-2 credit is given, and the coupons on bonds, when paid, shall be
25-3 separated from the bonds and cancelled by the comptroller
25-4 [treasurer].
25-5 SECTION 5.05. Section 43.017, Education Code, is amended to
25-6 read as follows:
25-7 Sec. 43.017. USE OF COMMERCIAL BANKS AS AGENTS FOR
25-8 COLLECTION OF INCOME FROM PERMANENT SCHOOL FUND INVESTMENTS.
25-9 (a) The State Board of Education may contract with one or more
25-10 commercial banks to receive payments of dividends and interest on
25-11 securities in which the state permanent school funds are invested
25-12 and transmit that money with identification of its source to the
25-13 comptroller [state treasurer] for the account of the available
25-14 school fund by the fastest available means.
25-15 (b) In choosing each commercial bank with which to contract
25-16 as authorized by Subsection (a), the State Board of Education shall
25-17 assure itself of:
25-18 (1) the financial stability of the bank;
25-19 (2) the location of the bank with respect to its
25-20 proximity to the banks on which checks are drawn in payment of
25-21 dividends and interest on securities of the permanent school fund;
25-22 (3) the experience and reliability of the bank in
25-23 acting as agent for others in the similar collection and
25-24 expeditious remittance of money; and
25-25 (4) the reasonableness of the bank's charges for the
25-26 services, both in amount of the charges and in relation to the
25-27 increased investment earnings of the available school fund that
26-1 will result from speedier receipt by the comptroller [state
26-2 treasurer] of the money.
26-3 SECTION 5.06. Section 43.018(b), Education Code, is amended
26-4 to read as follows:
26-5 (b) The State Board of Education may contract with a
26-6 commercial bank pursuant to this section only if:
26-7 (1) the bank is located in a city having a major stock
26-8 exchange;
26-9 (2) the bank is experienced in the operation of a
26-10 fully secured securities loan program;
26-11 (3) the bank has adequate capital in the prudent
26-12 judgment of the State Board of Education to assure the safety of
26-13 the securities entrusted to it as a custodian;
26-14 (4) the bank will require of any securities broker or
26-15 dealer to which it lends securities owned by the state permanent
26-16 school fund that the broker or dealer deliver to it cash collateral
26-17 for the loan of securities, and that the cash collateral will at
26-18 all times be not less than 100 percent of the market value of the
26-19 securities lent;
26-20 (5) the bank executes an indemnification agreement,
26-21 satisfactory in form and content to the State Board of Education,
26-22 fully indemnifying the permanent and available school funds against
26-23 loss resulting from the bank's service as custodian of securities
26-24 of the permanent school fund and its operation of a securities loan
26-25 program using securities of the permanent school fund;
26-26 (6) the bank will speedily collect and remit on the
26-27 day of collection by the fastest available means to the comptroller
27-1 [state treasurer] any dividends and interest collectible by it on
27-2 securities held by it as custodian, together with identification as
27-3 to the source of the dividends or interest; and
27-4 (7) the bank is the bank agreeing to pay to the
27-5 available school fund the largest sum or highest percentage of the
27-6 income derived by the bank from use of the securities of the
27-7 permanent school fund in the operation of a securities loan
27-8 program.
27-9 SECTION 5.07. Sections 45.059(b) and (c), Education Code,
27-10 are amended to read as follows:
27-11 (b) Immediately following receipt of the funds for payment
27-12 of the principal or interest, the paying agent shall pay the amount
27-13 due and forward the canceled bond or coupon to the comptroller
27-14 [state treasurer]. The comptroller [state treasurer] shall hold
27-15 the canceled bond or coupon on behalf of the permanent school fund.
27-16 (c) Following full reimbursement to the permanent school
27-17 fund with interest, the comptroller [state treasurer] shall further
27-18 cancel the bond or coupon and forward it to the school district for
27-19 which payment was made.
27-20 SECTION 5.08. Sections 51.008(a) and (b), Education Code,
27-21 are amended to read as follows:
27-22 (a) The governing board of every state institution of higher
27-23 education is directed to designate special depository banks,
27-24 subject to the approval of the comptroller [state treasurer], for
27-25 the purpose of receiving and keeping certain receipts of the
27-26 institution separate and apart from funds now deposited in the
27-27 state treasury. The receipts here referred to are described in
28-1 Subsection (b) of this section. The comptroller [state treasurer]
28-2 is directed to deposit the receipts, or funds representing such
28-3 receipts, enumerated herein, in the special depository bank or
28-4 banks nearest the institution credited with the receipts, so far as
28-5 is practicable, and is authorized to withdraw such funds on drafts
28-6 or checks prescribed by the comptroller [state treasurer]. The
28-7 comptroller [state treasurer] is authorized to promulgate rules and
28-8 regulations to require collateral security for the protection of
28-9 such funds pursuant to the provisions of Chapter 404, Government
28-10 Code [Articles 2529 and 2530, Revised Civil Statutes of Texas,
28-11 1925, as amended]. For the purpose of facilitating the clearance
28-12 and collection of the receipts herein enumerated, the comptroller
28-13 [state treasurer] is hereby authorized to deposit such receipts in
28-14 any state depository bank and transfer funds representing such
28-15 receipts enumerated herein to the respective special depository
28-16 banks. Banks so designated as special depository banks are hereby
28-17 authorized to pledge their securities to protect such funds.
28-18 (b) The governing board of every state institution of higher
28-19 education shall deposit in the state treasury all cash receipts
28-20 accruing to any college or university under its control that may be
28-21 derived from all sources except auxiliary enterprises,
28-22 noninstructional services, agency, designated, and restricted
28-23 funds, endowment and other gift funds, student loan funds, funds
28-24 retained under Chapter 145 of this code, and Constitutional College
28-25 Building Amendment funds. The comptroller [state treasurer] is
28-26 directed to credit such receipts deposited by each such institution
28-27 to a separate fund account for the institution depositing the
29-1 receipts, but he shall not be required to keep separate accounts of
29-2 types of funds deposited by each institution. For the purpose of
29-3 facilitating the transferring of such institutional receipts to the
29-4 state treasury, each institution shall open in a local depository
29-5 bank a clearing account to which it shall deposit daily all such
29-6 receipts, and shall, not less often than every seven days, make
29-7 remittances therefrom to the comptroller [state treasurer] of all
29-8 except $500 of the total balance in said clearing account, such
29-9 remittances to be in the form of checks drawn on the clearing
29-10 account by the duly authorized officers of the institution, and no
29-11 disbursements other than remittances to the state treasury shall be
29-12 made from such clearing account. All money so deposited in the
29-13 state treasury shall be paid out on warrants drawn by the
29-14 comptroller [of public accounts] as provided by law.
29-15 SECTION 5.09. Sections 51.704(d) and (e), Education Code,
29-16 are amended to read as follows:
29-17 (d) The comptroller [state treasurer] shall administer the
29-18 fund until the center is located in Texas.
29-19 (e) The comptroller [state treasurer] may accept grants for
29-20 the purpose of the fund.
29-21 SECTION 5.10. Section 52.17(c), Education Code, is amended
29-22 to read as follows:
29-23 (c) In the event that funds received by the board in any
29-24 fiscal year as repayment of student loans and as interest on the
29-25 loans are insufficient to pay the interest coming due and the
29-26 principal maturing on the bonds during the ensuing fiscal year, the
29-27 comptroller [state treasurer] shall transfer into the Texas college
30-1 interest and sinking fund and each board interest and sinking fund
30-2 out of the first money coming into the treasury, which is not
30-3 otherwise appropriated by the constitution, an additional amount
30-4 sufficient to pay the interest coming due and the principal
30-5 maturing on the bonds during the ensuing fiscal year.
30-6 SECTION 5.11. Section 52.18, Education Code, is amended to
30-7 read as follows:
30-8 Sec. 52.18. DUTIES OF COMPTROLLER [AND TREASURER]. The
30-9 comptroller of public accounts shall make the transfers required
30-10 under the provisions of this chapter[,] and [the state treasurer]
30-11 shall pay or cause to be paid the principal of and interest on the
30-12 bonds as they mature and come due.
30-13 SECTION 5.12. Section 52.19, Education Code, is amended to
30-14 read as follows:
30-15 Sec. 52.19. INVESTMENT OF FUNDS. All money in the Texas
30-16 college interest and sinking fund and in each board interest and
30-17 sinking fund, including the reserve portion, and all money in the
30-18 Texas Opportunity Plan Fund and in the student loan auxiliary fund
30-19 in excess of the amount necessary for student loans, and all money
30-20 in each board student loan fund shall be invested by the
30-21 comptroller [state treasurer] in the investments prescribed by
30-22 board resolution. The board shall furnish to the comptroller
30-23 [state treasurer] a copy of the resolution prescribing authorized
30-24 investments. The board may sell any instruments owned in the Texas
30-25 college interest and sinking fund, a board interest and sinking
30-26 fund, the Texas Opportunity Plan Fund, the student loan auxiliary
30-27 fund, or a board student loan fund at the prevailing market price.
31-1 Income from these investments may be deposited in any of those
31-2 funds.
31-3 SECTION 5.13. Section 54.635, Education Code, is amended to
31-4 read as follows:
31-5 Sec. 54.635. COMPTROLLER [STATE TREASURER]. (a) Except as
31-6 provided by Subsection [Subsections] (d) [and (e)], the comptroller
31-7 [state treasurer] is the custodian of the assets of the fund.
31-8 (b) The comptroller [state treasurer] shall pay money from
31-9 the fund on a warrant drawn by the comptroller supported only on a
31-10 voucher signed by the comptroller or the comptroller's authorized
31-11 representative.
31-12 (c) The comptroller [state treasurer] annually shall furnish
31-13 to the board a sworn statement of the amount of the fund's assets
31-14 in the comptroller's [treasurer's] custody.
31-15 (d) The board may select one or more commercial banks,
31-16 depository trust companies, or other entities to serve as custodian
31-17 of all or part of the fund's assets.
31-18 [(e) If the office of the state treasurer is abolished, the
31-19 comptroller is the custodian of the assets of the fund.]
31-20 SECTION 5.14. Section 57.77(b), Education Code, is amended
31-21 to read as follows:
31-22 (b) The corporation shall submit the annual report to the
31-23 governor, lieutenant governor, speaker of the house of
31-24 representatives, comptroller of public accounts, [state treasurer,]
31-25 and commissioner of higher education.
31-26 SECTION 5.15. Sections 62.026(a), (d), (e), (f), and (h),
31-27 Education Code, are amended to read as follows:
32-1 (a) The higher education fund is a fund outside the state
32-2 treasury in the custody of the comptroller [state treasurer].
32-3 (d) The comptroller [state treasurer] shall administer the
32-4 fund and invest the fund in the same manner as the permanent
32-5 university fund.
32-6 (e) The comptroller [state treasurer] may accept gifts or
32-7 grants from any public or private source for the fund.
32-8 (f) The comptroller [state treasurer] may deduct a
32-9 reasonable amount for administrative expenses from the interest,
32-10 dividends, and other income earned from the investment of the fund.
32-11 The amount deducted shall be deposited to the credit of the general
32-12 revenue fund.
32-13 (h) Beginning with the first state fiscal year that begins
32-14 on or after the date the comptroller certifies that the value of
32-15 the higher education fund is $2 billion, the comptroller [state
32-16 treasurer], not later than November 1 of each fiscal year, shall
32-17 distribute in accordance with Article VII, Section 17(i), of the
32-18 Texas Constitution the interest, dividends, and other income earned
32-19 from the investment of the fund, less the amount of administrative
32-20 expenses deducted under Subsection (f) of this section, to the
32-21 eligible institutions in accordance with the allocation formula
32-22 under Section 62.021(a) of this code.
32-23 SECTION 5.16. Section 65.13, Education Code, is amended to
32-24 read as follows:
32-25 Sec. 65.13. BOARD OFFICERS. The board shall elect a
32-26 chairman from its members to serve at the will of the board. The
32-27 comptroller [state treasurer] shall be the treasurer of the
33-1 university system.
33-2 SECTION 5.17. Section 66.05(c), Education Code, is amended
33-3 to read as follows:
33-4 (c) The report shall be distributed to the governor, [state
33-5 treasurer,] state comptroller of public accounts, state auditor,
33-6 attorney general, commissioner of higher education, and to the
33-7 members of the legislature by the 1st day of January each year.
33-8 The board shall furnish copies of the report to any interested
33-9 person on request.
33-10 SECTION 5.18. Section 66.65(d), Education Code, is amended
33-11 to read as follows:
33-12 (d) The Board of Regents of The University of Texas System
33-13 may also direct the comptroller of The University of Texas System
33-14 to transmit to the comptroller of public accounts [state treasurer]
33-15 for deposit to the credit of the permanent university fund any
33-16 unexpended balances remaining in the special fund after reserving a
33-17 sufficient amount in it for the payment of current expenses as set
33-18 out in Subsection (c) of this section.
33-19 SECTION 5.19. Section 66.78, Education Code, is amended to
33-20 read as follows:
33-21 Sec. 66.78. PAYMENTS; DISPOSITION. Payments under this
33-22 subchapter shall be made to the Board of Regents of The University
33-23 of Texas System at Austin, Texas, who shall:
33-24 (1) transmit to the comptroller of public accounts
33-25 [state treasurer] for deposit to the credit of the permanent
33-26 university fund all bonus, rental, and royalty payments;
33-27 (2) transmit to the comptroller of public accounts
34-1 [state treasurer] for deposit to the credit of the available
34-2 university fund all filing, assignment, and relinquishment fees,
34-3 and all other payments except those described in Subdivision (3) of
34-4 this section; and
34-5 (3) retain the one percent fee payment prescribed by
34-6 Section 66.65(c) of this code, for disbursement by the comptroller
34-7 of The University of Texas System for the purposes authorized by
34-8 Section 66.65(c) of this code.
34-9 SECTION 5.20. Section 67.24, Education Code, is amended to
34-10 read as follows:
34-11 Sec. 67.24. RESEARCH AND EXPERIMENTATION FOR TEXAS
34-12 DEPARTMENT OF TRANSPORTATION. The state comptroller of public
34-13 accounts may draw proper warrants in favor of the university based
34-14 on vouchers or claims submitted by the university through the Texas
34-15 Department of Transportation covering reasonable fees and charges
34-16 for services rendered by members of the staff of the university
34-17 system to the Texas Department of Transportation and for equipment
34-18 and materials necessary for research and experimentation in all
34-19 phases of highway activity, economics, materials, specifications,
34-20 design of roadways, construction, maintenance, pavement and
34-21 structures, drainage, traffic control, safety, the economics of
34-22 highway design and construction, and other fields of highway
34-23 design, construction, maintenance, or operation, based on an
34-24 agreement between the Texas Department of Transportation and the
34-25 university in accordance with the provisions of Texas Highway
34-26 Department Minute Order Number 52742, dated May 24, 1963; and the
34-27 comptroller [state treasurer] shall pay warrants so issued against
35-1 any funds appropriated by the legislature to the Texas Department
35-2 of Transportation for the construction and maintenance of highways,
35-3 roads, and bridges. The payments made to the university shall be
35-4 credited and deposited to local institutional funds under its
35-5 control.
35-6 SECTION 5.21. Section 85.29, Education Code, is amended to
35-7 read as follows:
35-8 Sec. 85.29. RESEARCH AND EXPERIMENTATION FOR TEXAS
35-9 DEPARTMENT OF TRANSPORTATION. The state comptroller of public
35-10 accounts may draw proper warrants in favor of any part of the
35-11 university system based on vouchers or claims submitted by the
35-12 system through the Texas Department of Transportation covering
35-13 reasonable fees and charges for services rendered by members of the
35-14 staff of the system to the Texas Department of Transportation and
35-15 for equipment and materials necessary for research and
35-16 experimentation in all phases of highway activity, economics,
35-17 materials, specifications, design of roadways, construction,
35-18 maintenance, pavement and structures, traffic control, safety, the
35-19 economics of highway design and construction, and other fields of
35-20 highway design, construction, maintenance, or operation, based on
35-21 an agreement between the State Highway Department and the Texas
35-22 Agricultural and Mechanical College System as passed by the State
35-23 Highway Department on September 29, 1948, and recorded by the Texas
35-24 Department of Transportation as Minute Order Number 25396; and the
35-25 comptroller [state treasurer] shall pay warrants so issued against
35-26 any funds appropriated by the legislature to the Texas Department
35-27 of Transportation for the construction and maintenance of highways,
36-1 roads, and bridges. The payments made to the system shall be
36-2 credited and deposited to local institutional funds under its
36-3 control.
36-4 SECTION 5.22. Section 85.69, Education Code, is amended to
36-5 read as follows:
36-6 Sec. 85.69. PAYMENTS; DISPOSITION. Payments under this
36-7 subchapter shall be made to the commissioner of the general land
36-8 office at Austin, who shall transmit to the comptroller [state
36-9 treasurer] all royalties, lease fees, rentals for delay in drilling
36-10 or mining, and all other payments, including all filing assignments
36-11 and relinquishment fees, to be deposited in the state treasury as
36-12 provided by Section 85.70 of this code.
36-13 SECTION 5.23. Section 86.22, Education Code, is amended to
36-14 read as follows:
36-15 Sec. 86.22. ACCRUED INTEREST. The interest heretofore
36-16 collected by the State Board of Education in accordance with the
36-17 provisions of the act of August 21, 1876, due at the end of the
36-18 fiscal year of 1876, on the bonds belonging to the Agricultural and
36-19 Mechanical College and invested in six percent state bonds, shall
36-20 also constitute a part of the perpetual fund of the university
36-21 until the legislature shall otherwise provide. The state board
36-22 shall collect the semiannual interest on the bonds as it becomes
36-23 due, and place the money in the state treasury to the credit of the
36-24 fund. The interest on all such bonds is set apart exclusively for
36-25 the use of the university and shall be drawn from the treasury by
36-26 the board of directors on vouchers audited by the board, or
36-27 approved by the governor and attested by the secretary of the
37-1 board. On the vouchers being filed with the comptroller, he shall
37-2 draw his warrant on the state treasury [treasurer] as necessary to
37-3 pay the directors, professors and officers of the university.
37-4 SECTION 5.24. Section 106.14, Education Code, is amended to
37-5 read as follows:
37-6 Sec. 106.14. OFFICERS. The board shall elect a chairman and
37-7 a vice chairman from its members to serve at the will of the board.
37-8 The board shall appoint a secretary. The comptroller [state
37-9 treasurer] shall be the treasurer of the university.
37-10 SECTION 5.25. Section 106.54, Education Code, is amended to
37-11 read as follows:
37-12 Sec. 106.54. BIENNIAL REPORT. True and full accounts shall
37-13 be kept by the board and by the employees of the university of all
37-14 funds collected from all sources by the university, all the sums
37-15 paid out by it, and the persons to whom and the purposes for which
37-16 the sums are paid. The board shall print biennially a complete
37-17 report of all sums collected, all expenditures, and the sums
37-18 remaining on hand. The report shall be printed in even-numbered
37-19 years between September 1 and January 1. It shall show the true
37-20 condition of all funds as of the preceding August 1, and shall show
37-21 all collections and expenditures for the preceding two years. The
37-22 board shall furnish copies of the report to the governor, [state
37-23 treasurer,] comptroller, state auditor, and attorney general, and
37-24 not less than three copies to the General Services Commission
37-25 [State Board of Control]. The board shall furnish a copy to each
37-26 member of the House Appropriations Committee, the Senate Finance
37-27 Committee, and the House and Senate committees on education of each
38-1 regular session of the legislature within one week after the
38-2 committees are appointed.
38-3 SECTION 5.26. Section 109.78(b), Education Code, is amended
38-4 to read as follows:
38-5 (b) Payment of all royalties, lease fees, rentals for delay
38-6 in drilling or mining, filing fees for assignments and
38-7 relinquishments, and all other payments shall be made to the
38-8 commissioner of the general land office at Austin. The
38-9 commissioner shall transmit all payments received to the
38-10 comptroller [state treasurer] for deposit to the credit of the
38-11 Texas Tech University special mineral fund.
38-12 SECTION 5.27. Section 132.241(c), Education Code, is amended
38-13 to read as follows:
38-14 (c) The comptroller [state treasurer] shall invest the fund
38-15 in the same manner as other state funds. Sufficient funds from the
38-16 tuition protection fund shall be appropriated to the commission for
38-17 the administration of this section.
38-18 ARTICLE 6. CHANGES TO ELECTION CODE
38-19 SECTION 6.01. Section 52.092(c), Election Code, is amended
38-20 to read as follows:
38-21 (c) Statewide offices of the state government shall be
38-22 listed in the following order:
38-23 (1) governor;
38-24 (2) lieutenant governor;
38-25 (3) attorney general;
38-26 (4) comptroller of public accounts;
38-27 (5) [state treasurer;]
39-1 [(6)] commissioner of the General Land Office;
39-2 (6) [(7)] commissioner of agriculture;
39-3 (7) [(8)] railroad commissioner;
39-4 (8) [(9)] chief justice, supreme court;
39-5 (9) [(10)] justice, supreme court;
39-6 (10) [(11)] presiding judge, court of criminal
39-7 appeals;
39-8 (11) [(12)] judge, court of criminal appeals.
39-9 SECTION 6.02. Section 203.014, Election Code, is amended to
39-10 read as follows:
39-11 Sec. 203.014. DISPOSITION OF FILING FEES. The secretary of
39-12 state shall deposit the filing fees received under Section 203.005
39-13 in a suspense account with the comptroller [state treasurer] until
39-14 after election day. The funds remaining in the account after any
39-15 refunds are made shall be deposited to the credit of the General
39-16 Revenue Fund.
39-17 SECTION 6.03. Section 215.005(c), Election Code, is amended
39-18 to read as follows:
39-19 (c) In a recount of an election for which the final canvass
39-20 is at the state level, other than a primary election, the recount
39-21 coordinator shall deliver the deposit of a person against whom
39-22 costs are assessed to the comptroller of public accounts, who shall
39-23 place the deposit in trust [with the state treasurer]. The
39-24 comptroller shall issue a warrant in the amount certified by the
39-25 coordinator to each county in which assessed costs were incurred
39-26 and to the person for any refund to which the person is entitled.
39-27 SECTION 6.04. Section 221.002(b), Election Code, is amended
40-1 to read as follows:
40-2 (b) The senate and the house of representatives, in joint
40-3 session, have exclusive jurisdiction of a contest of a general
40-4 election for governor, lieutenant governor, comptroller of public
40-5 accounts, [state treasurer,] commissioner of the general land
40-6 office, or attorney general.
40-7 SECTION 6.05. Section 242.001, Election Code, is amended to
40-8 read as follows:
40-9 Sec. 242.001. APPLICABILITY OF CHAPTER. This chapter
40-10 applies to a contest of a general election for the office of
40-11 governor, lieutenant governor, comptroller of public accounts,
40-12 [state treasurer,] land commissioner, or attorney general.
40-13 ARTICLE 7. CHANGES TO CHAPTERS 403 AND 404, GOVERNMENT CODE
40-14 SECTION 7.01. Section 403.005(a), Government Code, is
40-15 amended to read as follows:
40-16 (a) The comptroller's account against the state shall be
40-17 sent for approval to [may not be sent to the treasurer until] the
40-18 secretary of state [approves it].
40-19 SECTION 7.02. Section 403.011, Government Code, is amended
40-20 to read as follows:
40-21 Sec. 403.011. GENERAL POWERS. The comptroller shall:
40-22 (1) obtain a seal with "Comptroller's Office, State of
40-23 Texas" engraved around the margin and a five-pointed star in the
40-24 center, to be used as the seal of the office to authenticate
40-25 official acts, except warrants drawn on the state treasury;
40-26 (2) adopt regulations the comptroller considers
40-27 essential to the speedy and proper assessment and collection of
41-1 state revenues;
41-2 (3) supervise, as the sole accounting officer of the
41-3 state, the state's fiscal concerns and manage those concerns as
41-4 required by law;
41-5 (4) require all accounts presented to the comptroller
41-6 for settlement not otherwise provided for by law to be made on
41-7 forms that the comptroller prescribes;
41-8 (5) prescribe and furnish the form or electronic
41-9 format to be used in the collection of public revenue;
41-10 (6) prescribe the mode and manner of keeping and
41-11 stating of accounts of persons collecting state revenue;
41-12 (7) prescribe forms or electronic formats of the same
41-13 class, kind, and purpose so that they are uniform in size,
41-14 arrangement, matter, and form;
41-15 (8) require each person receiving money or managing or
41-16 having disposition of state property of which an account is kept in
41-17 the comptroller's office periodically to render statements of the
41-18 money or property to the comptroller;
41-19 (9) require each person who has received and not
41-20 accounted for state money to settle the person's account;
41-21 (10) keep and settle all accounts in which the state
41-22 is interested;
41-23 (11) examine and settle the account of each person
41-24 indebted to the state, certify the amount or balance [to the
41-25 treasurer], and direct and supervise the collection of the money;
41-26 (12) audit claims against the state the payment of
41-27 which is provided for by law, unless the audit is otherwise
42-1 specially provided for;
42-2 (13) determine the method for auditing claims against
42-3 the state in a cost-effective manner, including but not limited to
42-4 the use of stratified and statistical sampling techniques in
42-5 conjunction with automated edits;
42-6 (14) maintain the necessary records and data for each
42-7 approved claim against the state so that an adequate audit can be
42-8 performed and the comptroller can submit a report to each house of
42-9 the legislature, upon request, stating the name and amount of each
42-10 approved claim;
42-11 (15) keep and state each account between the state and
42-12 the United States;
42-13 (16) keep journals through which all entries are made
42-14 in the ledger;
42-15 (17) draw warrants on the treasury for payment of all
42-16 money required by law to be paid from the treasury;
42-17 (18) suggest plans for the improvement and management
42-18 of the general revenue; and
42-19 (19) preserve the books, records, papers, and other
42-20 property of the comptroller's office and deliver them in good
42-21 condition to the successor to that office.
42-22 SECTION 7.03. Sections 403.023(a), (c), and (d), Government
42-23 Code, are amended to read as follows:
42-24 (a) The [treasurer in consultation with the] comptroller may
42-25 adopt rules relating to the acceptance of credit cards for the
42-26 payment of fees, taxes, and other charges assessed by state
42-27 agencies. The rules may:
43-1 (1) authorize a state agency to accept credit cards if
43-2 the comptroller [treasurer] determines the best interests of the
43-3 state would be promoted;
43-4 (2) authorize or require a credit card user to pay a
43-5 processing fee to the state agency that accepts the credit card;
43-6 and
43-7 (3) authorize a particular state agency to accept
43-8 credit cards without providing the same authorization to other
43-9 state agencies.
43-10 (c) The [treasurer and] comptroller may not adopt rules
43-11 about a particular state agency's acceptance of credit cards that
43-12 would affect a contract that the state agency has entered into that
43-13 is in effect on September 1, 1993.
43-14 (d) The [treasurer and] comptroller may not adopt rules
43-15 about a particular state agency's acceptance or use of credit cards
43-16 if another law specifically authorizes, requires, prohibits, or
43-17 otherwise regulates the acceptance or use.
43-18 SECTION 7.04. Sections 403.034(a) and (b), Government Code,
43-19 are amended to read as follows:
43-20 (a) The comptroller shall maintain information concerning
43-21 all entries to the state general ledger. The ledger contains
43-22 controlling and fund accounts, including:
43-23 (1) a comptroller [state treasurer] cash account;
43-24 (2) a comptroller [state treasurer] bond account;
43-25 (3) a comptroller [state treasurer] securities in
43-26 trust account;
43-27 (4) a warrants payable account;
44-1 (5) agency suspense accounts;
44-2 (6) securities in trust fund accounts showing net
44-3 balances, with a separate account for each fund;
44-4 (7) fund accounts for bonds owned, with a separate
44-5 account for each fund; and
44-6 (8) other accounts found necessary.
44-7 (b) The comptroller shall charge the comptroller cash, bond,
44-8 and securities accounts with [the state treasurer with] the cash on
44-9 hand and in depository banks and with all bonds and securities held
44-10 for state funds or in trust. The comptroller shall charge the
44-11 state treasury [treasurer] with the totals of all deposits made
44-12 into the state treasury and credit the state treasury [treasurer]
44-13 with warrants paid, so that the state treasury balance in the
44-14 comptroller's [treasurer's] hands plus the balance in the state
44-15 depositories equals the balance shown by the accounts.
44-16 SECTION 7.05. Section 403.035(b), Government Code, is
44-17 amended to read as follows:
44-18 (b) The comptroller shall keep a suspense ledger that states
44-19 the accounts of the comptroller [state treasurer] with respect to
44-20 money and securities the comptroller [state treasurer] holds in
44-21 suspense, including money and securities deposited with the
44-22 comptroller [treasurer] pending a determination of whether the
44-23 deposits are for a state purpose. The comptroller shall
44-24 acknowledge the [treasurer's] receipt of the items held in suspense
44-25 and post these items to the ledger. The ledger must also include
44-26 accounts for all money and securities received by heads of agencies
44-27 and deposited in suspense with the comptroller [state treasurer].
45-1 SECTION 7.06. Section 403.052, Government Code, is amended
45-2 to read as follows:
45-3 Sec. 403.052. INFORMATION CONCERNING DEPOSITS [WITH THE
45-4 TREASURER]. (a) The comptroller shall promulgate [coordinate with
45-5 the treasurer in the promulgation of] rules and develop [the
45-6 development] and implement [implementation of] procedures for the
45-7 efficient deposit of money and securities received and held by the
45-8 comptroller [state treasurer]. The rules and procedures shall be
45-9 consistent with the requirements of the uniform statewide
45-10 accounting system.
45-11 (b) The comptroller shall record and maintain adequate
45-12 information concerning deposits into the state treasury. This
45-13 deposit information shall consist of the records and data that the
45-14 comptroller deems necessary. [The comptroller, on request, shall
45-15 transmit required deposit information to the treasurer.]
45-16 SECTION 7.07. Sections 403.054(b)-(d), Government Code, are
45-17 amended to read as follows:
45-18 (b) The comptroller may not issue a replacement warrant if:
45-19 (1) the comptroller [state treasurer] has paid the
45-20 original warrant, unless the comptroller [treasurer] has obtained a
45-21 refund of the payment;
45-22 (2) the period during which the comptroller [state
45-23 treasurer] may pay the original warrant has expired under Section
45-24 404.046 or other applicable law;
45-25 (3) the payee of the replacement warrant is not the
45-26 same as the payee of the original warrant; or
45-27 (4) the comptroller is prohibited by Section 403.055
46-1 or 481.0841, or by Section 57.48, Education Code, from issuing a
46-2 warrant to the payee of the replacement warrant.
46-3 (c) A replacement warrant:
46-4 (1) must reflect the same fiscal year as the original
46-5 warrant; and
46-6 (2) may not be paid by the comptroller [state
46-7 treasurer] unless presented for payment to the comptroller
46-8 [treasurer] or a financial institution before the expiration of two
46-9 years after the close of the fiscal year in which the original
46-10 warrant was issued.
46-11 [(d) The state treasurer may not pay an original warrant
46-12 after the comptroller has notified the treasurer that the
46-13 comptroller has issued a replacement warrant for the original
46-14 warrant.]
46-15 SECTION 7.08. Section 403.056(b), Government Code, is
46-16 amended to read as follows:
46-17 (b) After the warrant has been prepared, it shall be
46-18 delivered to the comptroller for the comptroller's authorization or
46-19 signature as provided by law. [Then the information concerning the
46-20 warrant that the state treasurer requires shall be delivered to the
46-21 state treasury and the state treasurer shall, as appropriate,
46-22 register it in the treasury, authorize or sign it as provided by
46-23 law, and return it to the comptroller's office.]
46-24 SECTION 7.09. Section 403.057, Government Code, is amended
46-25 to read as follows:
46-26 Sec. 403.057. SIGNATURE ON WARRANTS AFTER CHANGE IN OFFICE.
46-27 If the comptroller [or treasurer] ceases to hold or perform the
47-1 duties of office, existing stocks of warrants bearing the person's
47-2 printed name, signature, or facsimile signature may be used until
47-3 they are exhausted, and the person succeeding to the office or the
47-4 duties of the office shall have the warrants issued with:
47-5 (1) the obsolete printed name, signature, or facsimile
47-6 signature struck through;
47-7 (2) the successor's printed name substituted for the
47-8 obsolete printed name, signature, or facsimile signature; and
47-9 (3) the inscription "Printed name authorized by law"
47-10 near the successor's printed name.
47-11 SECTION 7.10. Section 403.060(c), Government Code, is
47-12 amended to read as follows:
47-13 (c) The comptroller shall promulgate [coordinate with the
47-14 treasurer in promulgating] rules for the effective and efficient
47-15 administration of this section.
47-16 SECTION 7.11. Section 403.072(b), Government Code, is
47-17 amended to read as follows:
47-18 (b) The comptroller shall accept the claim when presented,
47-19 prepare a warrant in payment of the claim before the date it
47-20 becomes due and payable, and hold the warrant for delivery until it
47-21 becomes due and payable. The warrant must be dated as of the due
47-22 date of the claim and may not be delivered to the claimant until
47-23 the due date. [The treasurer may countersign the warrant and make
47-24 entry to properly account for it.]
47-25 SECTION 7.12. Section 403.074(a), Government Code, is
47-26 amended to read as follows:
47-27 (a) The comptroller shall pay, from available funds
48-1 appropriated for that purpose, miscellaneous claims for which an
48-2 appropriation does not otherwise exist or for which the
48-3 appropriation has lapsed. For the purpose of this section,
48-4 "miscellaneous claims" does not include claims concerning warrants
48-5 that have expired because they were not presented to the
48-6 comptroller [state treasurer] for payment within the time period
48-7 specified in Section 210.012, Labor Code.
48-8 SECTION 7.13. Sections 403.075(c) and (e), Government Code,
48-9 are amended to read as follows:
48-10 (c) The comptroller may draw a deficiency warrant for[,] and
48-11 [the treasurer] may pay[,] only the part of a claim approved and
48-12 filed as provided by this section. If a sufficient deficiency
48-13 appropriation exists to meet the claim, the comptroller shall draw
48-14 a warrant and the claim shall be paid. If such an appropriation
48-15 does not exist or is not sufficient to pay the claim, the
48-16 comptroller shall issue a deficiency warrant and the claim may not
48-17 be paid until the legislature provides for the payment.
48-18 (e) The governor may not approve warrants under this section
48-19 in an aggregate amount exceeding $200,000. A warrant approved
48-20 above this amount is invalid and the comptroller [state treasurer]
48-21 may not redeem it.
48-22 SECTION 7.14. Section 403.077(b), Government Code, is
48-23 amended to read as follows:
48-24 (b) A warrant for the payment of the refund must be signed
48-25 by the comptroller and [state treasurer and] shall be drawn against
48-26 the fund or account into which the money was deposited. The refund
48-27 shall be made from funds appropriated for that purpose.
49-1 SECTION 7.15. Section 403.0915, Government Code, is amended
49-2 to read as follows:
49-3 Sec. 403.0915. DORMANT FUND OR ACCOUNT. At any time the
49-4 comptroller, [with the consent and approval of the state treasurer
49-5 and] with notification to the state auditor, may transfer to the
49-6 general revenue fund a balance in a dormant fund or account if the
49-7 source of the fund or account is unknown or the purpose for which
49-8 it was collected is moot. The legislature at any time after the
49-9 transfer may appropriate the balance as a refund if the source and
49-10 purpose of the fund or account become known and active. The
49-11 comptroller shall report any dormant funds or accounts to the Funds
49-12 Review Advisory Committee.
49-13 SECTION 7.16. Section 403.092(a), Government Code, is
49-14 amended to read as follows:
49-15 (a) To allow efficient management of the cash flow of the
49-16 general revenue fund and to avoid temporary cash deficiency in that
49-17 fund, the comptroller[, with the consent of the state treasurer,]
49-18 may transfer surplus cash, except constitutionally dedicated
49-19 revenues, between funds in the state treasury. As soon as
49-20 practicable the comptroller shall return the surplus cash to the
49-21 fund from which it was transferred. The comptroller shall preserve
49-22 the fund equity and [the state treasurer] shall allocate the
49-23 depository interest as if the transfer had not been made.
49-24 SECTION 7.17. Section 403.096(b), Government Code, is
49-25 amended to read as follows:
49-26 (b) The committee is composed of the following members or
49-27 their designees:
50-1 (1) the governor;
50-2 (2) the comptroller;
50-3 (3) [the state treasurer;]
50-4 [(4)] the state auditor; and
50-5 (4) [(5)] the director of the Legislative Budget
50-6 Board.
50-7 SECTION 7.18. Section 403.112(c), Government Code, is
50-8 amended to read as follows:
50-9 (c) A controlling account shall be balanced monthly [and
50-10 shall correspond with the similar accounts kept by the state
50-11 treasurer].
50-12 SECTION 7.19. Sections 403.204(a) and (c), Government Code,
50-13 are amended to read as follows:
50-14 (a) A suit authorized by this subchapter must be brought
50-15 against the public official charged with the duty of collecting the
50-16 tax or fee, the comptroller [treasurer], and the attorney general.
50-17 (c) A copy of the written protest as originally filed must
50-18 be attached to the original petition filed by the person paying the
50-19 tax or fee with the court and to the copies of the original
50-20 petition served on the comptroller [treasurer], the attorney
50-21 general, and the public official charged with the duty of
50-22 collecting the tax or fee.
50-23 SECTION 7.20. Section 403.209, Government Code, is amended
50-24 to read as follows:
50-25 Sec. 403.209. SUBMISSION OF PROTEST PAYMENTS TO COMPTROLLER
50-26 [TREASURER]. (a) An officer who receives payments of taxes or
50-27 fees made under protest as required by Section 403.202 shall each
51-1 day send to the comptroller [treasurer] the payments, a list of the
51-2 persons making the payments, and a written statement that the
51-3 payments were made under protest.
51-4 (b) The comptroller [treasurer] shall deposit each payment
51-5 made under protest in the General Revenue Fund or to the fund or
51-6 funds to which the tax or fee is allocated by law.
51-7 (c) The comptroller [treasurer] or the officer who receives
51-8 a payment made under protest, if designated by the comptroller
51-9 [treasurer], shall maintain detailed records of the payment made
51-10 under protest.
51-11 (d) For purposes of a tax or fee paid under protest under
51-12 this subchapter, the interest to be credited on the tax or fee is
51-13 an amount equal to the amount of interest that would have been
51-14 earned by the tax or fee if the tax or fee had been deposited into
51-15 the suspense account of the comptroller [treasurer].
51-16 SECTION 7.21. Sections 403.211(a), (b), and (d), Government
51-17 Code, are amended to read as follows:
51-18 (a) If a suit under this subchapter results in a final
51-19 determination that all or part of the money paid under protest was
51-20 unlawfully demanded by the public official and belongs to the
51-21 payer, the comptroller [treasurer], as soon as practicable on or
51-22 after September 1 of the first year of the first state biennium
51-23 that begins after the date of the final determination of the suit,
51-24 shall credit the proper amount, with the interest credited on that
51-25 amount, against any other amount finally determined to be due to
51-26 the state from the payer according to information in the custody of
51-27 the comptroller [treasurer] and shall refund the remainder to the
52-1 payer by the issuance of a refund warrant.
52-2 (b) A refund warrant shall be written and signed by the
52-3 comptroller [and countersigned by the treasurer].
52-4 (d) The [treasurer shall return to the] comptroller shall
52-5 deliver each refund warrant issued[, and the comptroller shall
52-6 deliver it] to the person entitled to receive it.
52-7 SECTION 7.22. Section 403.212(d), Government Code, is
52-8 amended to read as follows:
52-9 (d) A state official who receives a payment or bond under
52-10 Subsection (a)(2) shall deliver the payment or bond to the
52-11 comptroller [treasurer]. The comptroller [treasurer] shall deposit
52-12 a payment made under Subsection (a)(2)(A) to the credit of each
52-13 fund to which the tax, fee, or penalty is allocated by law.
52-14 SECTION 7.23. Section 403.219(a), Government Code, is
52-15 amended to read as follows:
52-16 (a) If a restraining order or injunction is finally
52-17 dismissed or dissolved and a bond was filed, the comptroller
52-18 [treasurer] shall make demand on the applicant and the applicant's
52-19 sureties for the immediate payment of all taxes, fees, and
52-20 penalties due the state.
52-21 SECTION 7.24. Section 403.220, Government Code, is amended
52-22 to read as follows:
52-23 Sec. 403.220. CREDIT OR REFUND. (a) If the final judgment
52-24 in a suit under this subchapter maintains the right of the
52-25 applicant for a temporary or permanent injunction to prevent the
52-26 collection of the tax or fee, the comptroller [treasurer] shall
52-27 credit the amount of the tax or fee, with the interest on that
53-1 amount, against any other amount finally determined to be due to
53-2 the state from the applicant according to information in the
53-3 custody of the comptroller [treasurer] and shall refund the
53-4 remainder to the applicant. The credit or refund shall be made as
53-5 soon as practicable on or after September 1 of the first year of
53-6 the first state biennium that begins after the date of the final
53-7 judgment.
53-8 (b) For purposes of this section, the interest to be paid on
53-9 a refund of a tax or fee is an amount equal to the amount of
53-10 interest that would have been earned by the tax or fee if the tax
53-11 or fee had been paid into the suspense account of the comptroller
53-12 [treasurer].
53-13 SECTION 7.25. The heading to Chapter 404, Government Code,
53-14 is amended to read as follows:
53-15 CHAPTER 404. STATE TREASURY OPERATIONS OF
53-16 COMPTROLLER [TREASURER]
53-17 SECTION 7.26. Sections 404.001(4), (8), and (9), Government
53-18 Code, are amended to read as follows:
53-19 (4) "Market value" means the fair and reasonable
53-20 prevailing price at which a security is being sold on the open
53-21 market at the time of the appraisement of the security by the
53-22 comptroller [treasurer].
53-23 (8) ["Treasurer" means the state treasurer.]
53-24 [(9)] "Treasury" means state funds subject to the
53-25 custody and control of the comptroller [state treasurer] and
53-26 available for appropriation by the legislature.
53-27 SECTION 7.27. Section 404.011(a), Government Code, is
54-1 amended to read as follows:
54-2 (a) The State Depository Board is composed of [the
54-3 treasurer,] one citizen of the state who is appointed by the
54-4 governor with the advice and consent of the senate for a two-year
54-5 term, the banking commissioner, and the comptroller.
54-6 SECTION 7.28. Sections 404.0212(b), (e), and (f), Government
54-7 Code, are amended to read as follows:
54-8 (b) A regulated financial institution that accepts a deposit
54-9 from the comptroller [treasurer] shall report to the comptroller
54-10 [treasurer] the rating assigned to the financial institution under
54-11 12 U.S.C. Section 2906.
54-12 (e) On receipt of notice that the rating of a financial
54-13 institution is changed to a rating below that required by this
54-14 section, the comptroller [treasurer] shall take immediate action to
54-15 transfer all state funds subject to the custody or control of the
54-16 comptroller [treasurer] that are on deposit with the institution to
54-17 a qualified financial institution.
54-18 (f) The depository contract between a regulated financial
54-19 institution and the board must authorize the withdrawal without
54-20 penalty of the state funds subject to the custody or control of the
54-21 comptroller [treasurer] that are on deposit with the institution if
54-22 the rating of the institution is changed to a rating below that
54-23 required by Subsection (d).
54-24 SECTION 7.29. Sections 404.022(a), (b), (d), (e), and
54-25 (h)-(j), Government Code, are amended to read as follows:
54-26 (a) The comptroller [treasurer] is the secretary of the
54-27 board.
55-1 (b) The board, through its secretary, on the second Tuesday
55-2 in June of each odd-numbered year shall mail to each eligible
55-3 institution a letter stating the conditions with which applicants
55-4 for designation as a state depository must comply. The comptroller
55-5 [treasurer] shall keep on file in the comptroller's [treasurer's]
55-6 office and make available for inspection by any person a list of
55-7 institutions to which letters have been sent.
55-8 (d) An application shall be mailed to the comptroller
55-9 [treasurer] at Austin and must be received before noon of the first
55-10 day of August of the year in which the letter is sent. An
55-11 application received after that time may be considered at the
55-12 option of the board. The board shall charge a processing fee of
55-13 $25 for each application and shall deposit the fees to the credit
55-14 of the general revenue fund.
55-15 (e) On receipt of an application under this section, the
55-16 comptroller [treasurer] shall endorse on the application the date
55-17 of its receipt. The comptroller [treasurer] shall prepare a list
55-18 of the names of the applicants and the amount for which each has
55-19 applied and shall furnish a copy of the list to each board member.
55-20 (h) As soon as practicable after the board has made its
55-21 designations, the comptroller [treasurer] shall inform all
55-22 applicants whether they have been designated as state depositories.
55-23 (i) If more depositories are required at any time, the
55-24 comptroller [treasurer] may send to all eligible institutions
55-25 notice that further applications for designation as a state
55-26 depository for the unexpired term will be accepted.
55-27 (j) The board may execute a simplified version of a
56-1 depository agreement with an eligible institution desiring to hold
56-2 $98,000 or less in state deposits that are fully insured by the
56-3 Federal Deposit Insurance Corporation or the National Credit Union
56-4 Share Insurance Fund. The comptroller [treasurer] may give the
56-5 institution contingent approval as a depository until the board's
56-6 next scheduled meeting.
56-7 SECTION 7.30. Sections 404.0221(b) and (f), Government Code,
56-8 are amended to read as follows:
56-9 (b) For the purposes of Section 404.022, collateral eligible
56-10 to be pledged with the comptroller [treasurer] to secure state
56-11 deposits includes:
56-12 (1) direct obligations of or obligations the principal
56-13 and interest of which are guaranteed by the United States
56-14 government;
56-15 (2) direct obligations of or obligations guaranteed by
56-16 agencies or instrumentalities of the United States government; and
56-17 (3) a general or special obligation issued by a public
56-18 agency and approved by the attorney general that is payable from
56-19 taxes, revenues, or both.
56-20 (f) The comptroller [treasurer] may reject at any time
56-21 collateral tendered by a state depository without assigning a
56-22 reason for the rejection, and the comptroller's [treasurer's]
56-23 action is final and not subject to review.
56-24 SECTION 7.31. Sections 404.024(a), (b), and (f)-(i),
56-25 Government Code, are amended to read as follows:
56-26 (a) The board may determine and designate the amount of
56-27 state funds to be deposited in time deposits in state depositories.
57-1 The comptroller [treasurer] shall recommend to the board a maximum
57-2 limit for state funds deposited by the comptroller [treasurer] at
57-3 approved state depositories. The percentage of state funds to be
57-4 deposited in state depositories shall be based on the interest
57-5 rates available in competing investments, the demand for funds from
57-6 Texas banks, and the state's liquidity requirements. The
57-7 comptroller [treasurer] shall provide periodic investment reports
57-8 to the board.
57-9 (b) State funds not deposited in state depositories shall be
57-10 invested by the comptroller [treasurer] in:
57-11 (1) direct security repurchase agreements;
57-12 (2) reverse security repurchase agreements;
57-13 (3) direct obligations of or obligations the principal
57-14 and interest of which are guaranteed by the United States;
57-15 (4) direct obligations of or obligations guaranteed by
57-16 agencies or instrumentalities of the United States government;
57-17 (5) bankers' acceptances that:
57-18 (A) are eligible for purchase by the Federal
57-19 Reserve System;
57-20 (B) do not exceed 270 days to maturity; and
57-21 (C) are issued by a bank that has received the
57-22 highest short-term credit rating by a nationally recognized
57-23 investment rating firm;
57-24 (6) commercial paper that:
57-25 (A) does not exceed 270 days to maturity; and
57-26 (B) except as provided by Subsection (i), has
57-27 received the highest short-term credit rating by a nationally
58-1 recognized investment rating firm;
58-2 (7) contracts written by the treasury in which the
58-3 treasury grants the purchaser the right to purchase securities in
58-4 the treasury's marketable securities portfolio at a specified price
58-5 over a specified period and for which the treasury is paid a fee
58-6 and specifically prohibits naked-option or uncovered option
58-7 trading;
58-8 (8) direct obligations of or obligations guaranteed by
58-9 the Inter-American Development Bank, the International Bank for
58-10 Reconstruction and Development (the World Bank), the African
58-11 Development Bank, the Asian Development Bank, and the International
58-12 Finance Corporation that have received the highest credit rating by
58-13 a nationally recognized investment rating firm; and
58-14 (9) bonds issued, assumed, or guaranteed by the State
58-15 of Israel.
58-16 (f) The comptroller [treasurer] may invest the gross
58-17 proceeds from obligations of this state or any agency of this state
58-18 in:
58-19 (1) obligations of a state or an agency, county, city,
58-20 or other political subdivision of a state; and
58-21 (2) mutual funds composed of obligations described by
58-22 Subdivision (1).
58-23 (g) To the extent practicable, the comptroller [treasurer]
58-24 shall give first consideration to Texas banks when investing in
58-25 direct security repurchase agreements.
58-26 (h) The comptroller [treasurer] may not use state funds to
58-27 invest in or purchase obligations of a private corporation or other
59-1 private business entity doing business in Northern Ireland unless
59-2 the corporation or other entity:
59-3 (1) adheres to fair employment practices; and
59-4 (2) does not discriminate on the basis of race, color,
59-5 religion, sex, national origin, or disability.
59-6 (i) Notwithstanding Subsection (b)(6)(B), the comptroller
59-7 [treasurer] may purchase commercial paper with a rating lower than
59-8 the rating required by that subsection to provide liquidity for
59-9 commercial paper issued by the comptroller [treasurer] or an agency
59-10 of the state.
59-11 SECTION 7.32. Sections 404.0245(b) and (c), Government Code,
59-12 are amended to read as follows:
59-13 (b) Subject to the limitations of Subsection (c), the board
59-14 may determine and designate the amount of state funds that shall be
59-15 invested by the comptroller [treasurer] in hedging transactions in
59-16 crude oil and natural gas futures contracts and options on crude
59-17 oil and natural gas futures contracts that are traded on an
59-18 established exchange regulated by the Securities and Exchange
59-19 Commission or the Commodity Futures Trading Commission.
59-20 (c) The principal amount of state funds invested and
59-21 outstanding in hedging transactions on any one day may not exceed
59-22 $500,000 with a maximum risk of loss of $5,000,000 in a biennium.
59-23 The total principal amount of state funds that may be invested by
59-24 the comptroller [treasurer] in hedging transactions during any one
59-25 biennium may not exceed the amount of money credited to the
59-26 unclaimed money fund for that biennium and attributable to the
59-27 remittance of mineral proceeds under Chapter 75, Property Code.
60-1 Any premium incurred in connection with hedging transactions may be
60-2 paid only from funds appropriated for that purpose.
60-3 SECTION 7.33. Section 404.026, Government Code, is amended
60-4 to read as follows:
60-5 Sec. 404.026. ELEEMOSYNARY FUNDS. The board may invest the
60-6 permanent funds of the Texas School for the Blind and Visually
60-7 Impaired, Texas School for the Deaf, Austin State Hospital, and
60-8 Corsicana State Home and may invest other permanent funds, the
60-9 investment of which is not otherwise provided for, that have $1,000
60-10 or more on deposit with the comptroller [treasurer] that are not
60-11 invested. The board shall invest the funds in the same classes of
60-12 bonds as are authorized for investment of the permanent school
60-13 fund.
60-14 SECTION 7.34. Sections 404.027(a) and (b), Government Code,
60-15 are amended to read as follows:
60-16 (a) The comptroller [treasurer] may enter into credit
60-17 agreements or other similar agreements to provide liquidity for
60-18 obligations issued for governmental purposes by an agency of the
60-19 state if the agreements do not conflict with the liquidity needs of
60-20 the treasury. An agency may enter into a credit agreement with the
60-21 comptroller [treasurer] on the issuance of obligations or at a
60-22 later date as agreed to by the comptroller [treasurer] and the
60-23 agency.
60-24 (b) The comptroller [treasurer] may charge reasonable costs
60-25 to provide services under this section.
60-26 SECTION 7.35. Section 404.031, Government Code, is amended
60-27 to read as follows:
61-1 Sec. 404.031. COLLATERAL REQUIREMENTS. (a) The comptroller
61-2 [treasurer] shall determine the market value of securities pledged
61-3 to secure state funds for the purpose of determining the adequacy
61-4 of the amount of collateral. The comptroller's [treasurer's]
61-5 valuation of the securities is final and not subject to review.
61-6 (b) If the market value of the securities pledged by a
61-7 depository becomes less than the amount of funds on deposit in the
61-8 depository, the comptroller [treasurer] shall require that
61-9 additional collateral be pledged immediately or deposits reduced.
61-10 If the collateral pledged by a state depository is in excess of the
61-11 amount required by this chapter, the comptroller [treasurer] may
61-12 permit the release of the excess collateral. If the balance of
61-13 state funds in a state depository is increased, the depository
61-14 shall increase the collateral for the deposits to the amount
61-15 required by this chapter.
61-16 (c) A state depository may substitute one group of eligible
61-17 securities for another group of securities pledged with the
61-18 comptroller [treasurer].
61-19 (d) Except as provided by Subsections (e) and (f), a state
61-20 depository shall deposit any pledged securities with the
61-21 comptroller [treasurer]. The comptroller [treasurer] shall give
61-22 the depository a receipt for the securities and place them in the
61-23 vaults of the treasury.
61-24 (e) Instead of depositing pledged securities with the
61-25 comptroller [treasurer], a depository may deposit them with a
61-26 custodian. The custodian may be the Texas Treasury Safekeeping
61-27 Trust Company or a state or national bank that has a capital stock
62-1 and permanent surplus of not less than $5 million, is a state
62-2 depository, and has been designated as a custodian by the
62-3 comptroller [treasurer]. The state depository and the custodian of
62-4 securities pledged by that state depository may not be the same
62-5 bank or be owned by the same bank holding company. The securities
62-6 shall be held in trust by the custodian to secure funds deposited
62-7 by the comptroller [treasurer] in the state depository pledging the
62-8 securities. On receipt of the securities, the custodian shall
62-9 immediately, by book entry or otherwise, identify on its books and
62-10 records the pledge of the securities and shall promptly issue and
62-11 deliver to the comptroller [treasurer] controlled trust receipts
62-12 for the securities pledged. The security evidenced by the trust
62-13 receipts is subject to inspection by the comptroller [treasurer] at
62-14 any time. The depository pledging the securities shall pay the
62-15 charges, if any, of the custodian bank for accepting and holding
62-16 the securities. The custodian, acting alone or through a permitted
62-17 institution, is for all purposes under state law and
62-18 notwithstanding Chapters 8 and 9, Business & Commerce Code, the
62-19 bailee or agent of the comptroller [treasurer]. The security
62-20 interest arising out of a pledge of securities to secure deposits
62-21 of the state is created, attaches, and is perfected for all
62-22 purposes under state law from the time the custodian identifies the
62-23 pledge of the securities on its books and records and issues the
62-24 trust receipts. The security interest remains perfected as of that
62-25 time in the hands of all subsequent custodians and permitted
62-26 institutions.
62-27 (f) Instead of depositing pledged securities with the
63-1 comptroller [treasurer], a state depository may deposit pledged
63-2 securities with the Federal Reserve Bank of Dallas or the Federal
63-3 Home Loan Bank of Dallas. The securities shall be held by the bank
63-4 to secure funds deposited by the comptroller [treasurer] in the
63-5 state depository pledging the securities. When the pledged
63-6 securities are deposited, the bank may apply book entry to the
63-7 securities. The records of the bank shall at all times reflect the
63-8 name of the state depository depositing the pledged securities, and
63-9 the bank shall issue an advice of transaction to the comptroller
63-10 [treasurer] and the state depository pledging the securities.
63-11 (g) In this section, "permitted institution" means a Federal
63-12 Reserve Bank, a Federal Home Loan Bank, a "clearing corporation" as
63-13 defined by Section 8.102(c), Business & Commerce Code, the Texas
63-14 Treasury Safekeeping Trust Company, a state depository, and any
63-15 state or nationally chartered bank or trust company that is
63-16 controlled by a bank holding company that controls a state
63-17 depository. Neither the state depository that pledges the
63-18 securities nor any bank that is controlled by a bank holding
63-19 company that controls that state depository may be the permitted
63-20 institution with respect to the particular securities pledged by
63-21 that state depository. A custodian holding in trust securities of
63-22 a state depository under Subsections (e) and (f) may deposit the
63-23 pledged securities with a permitted institution if the permitted
63-24 institution is the third party to the transaction. The securities
63-25 shall be held by the permitted institution to secure funds
63-26 deposited by the comptroller [treasurer] in the state depository
63-27 pledging the securities. On receipt of the securities, the
64-1 permitted institution shall immediately issue to the custodian an
64-2 advice of transaction or other document evidencing the deposit of
64-3 the securities. When the pledged securities held by a custodian
64-4 are deposited, the permitted institution may apply book entry
64-5 procedures to the securities. The records of the permitted
64-6 institution shall at all times reflect the name of the custodian
64-7 depositing the pledged securities. The custodian shall immediately
64-8 issue and deliver to the comptroller [treasurer] controlled trust
64-9 receipts for the pledged securities. The trust receipts shall
64-10 indicate that the custodian has deposited with the permitted
64-11 institution the pledged securities held in trust for the state
64-12 depository pledging the securities. A legal action or proceeding
64-13 brought by or against the state, arising out of or in connection
64-14 with the duties of the state depository, the custodian, or other
64-15 permitted institution under this subchapter must be brought and
64-16 maintained in state district court in Travis County. In this
64-17 section, "control" and "bank holding company" have the meanings
64-18 assigned by Article 2, Chapter I, The Texas Banking Code (Article
64-19 342-102, Vernon's Texas Civil Statutes).
64-20 (h) On request of the owner or owners, the comptroller
64-21 [treasurer] or custodian bank may surrender interest coupons or
64-22 other evidence of interest on securities deposited by state
64-23 depositories, when the interest is due, if the securities are
64-24 sufficient to meet the collateral requirements of the state.
64-25 (i) A state depository making deposits of securities with
64-26 the comptroller [treasurer] may cause the securities to be endorsed
64-27 or stamped, as it considers proper, to show that they are deposited
65-1 as collateral and not transferable except as provided by this
65-2 chapter.
65-3 (j) If a state depository fails to credit a deposit or part
65-4 of a deposit made by the comptroller [treasurer], the comptroller
65-5 [treasurer] may immediately sell or otherwise convert the
65-6 securities to money.
65-7 (k) The comptroller [treasurer] regularly shall provide the
65-8 board with a status report relating to the collateral position of
65-9 the treasury.
65-10 SECTION 7.36. Section 404.032, Government Code, is amended
65-11 to read as follows:
65-12 Sec. 404.032. DEPOSITS. (a) The comptroller [treasurer]
65-13 shall deposit state funds in depositories that satisfy the
65-14 collateral requirements of this chapter. The comptroller
65-15 [treasurer] may deposit funds designated as demand deposits only in
65-16 institutions designated as depositories by the board.
65-17 (b) The comptroller [treasurer] shall monitor the financial
65-18 stability of state depositories in which state deposits are held
65-19 and take appropriate action to protect state funds.
65-20 (c) A state depository shall collect all checks, drafts, and
65-21 demands for money deposited with it by the comptroller [treasurer].
65-22 If the depository uses due diligence, it is not liable for the
65-23 collections until the proceeds of the collections are duly received
65-24 by the depository bank. An expense incurred in collection that the
65-25 depository is not permitted to pay by reason of an Act of Congress
65-26 or a rule or regulation adopted under such an Act by the board of
65-27 governors of the Federal Reserve System or the board of directors
66-1 of the Federal Deposit Insurance Corporation shall be charged to
66-2 and paid by the comptroller [treasurer] out of money appropriated
66-3 by the legislature for that purpose.
66-4 (d) The comptroller [treasurer] shall keep sufficient money
66-5 on deposit in demand deposit accounts in depositories designated by
66-6 the board as clearing institutions to meet all current claims on
66-7 the state. Items received by the comptroller [treasurer] for
66-8 collection shall be deposited with a clearing institution to be
66-9 credited to the demand deposit account in the depository. Checks,
66-10 drafts, or warrants drawn by the comptroller [treasurer] for the
66-11 payment of obligations due by the state may be drawn on such an
66-12 account in such a depository or on the demand deposit account in
66-13 another state depository so that the checks, drafts, or warrants of
66-14 the state may at all times pass current as cash.
66-15 SECTION 7.37. Section 404.033, Government Code, is amended
66-16 to read as follows:
66-17 Sec. 404.033. WITHDRAWALS AND REMITTANCES. (a) Funds on
66-18 deposit with a depository are subject to withdrawal at any time by
66-19 the comptroller [treasurer], except funds designated as time
66-20 deposits, which may be withdrawn in the manner agreed on in the
66-21 contract under which the funds were deposited. The depository
66-22 shall remit the withdrawal on demand and free of charge, except
66-23 charges that the depository is not permitted to pay by reason of an
66-24 Act of Congress or a rule or regulation adopted under such an Act
66-25 by the board of governors of the Federal Reserve System or the
66-26 board of directors of the Federal Deposit Insurance Corporation.
66-27 (b) A remittance to the comptroller [treasurer] by a state
67-1 depository or another person may be made by any method authorized
67-2 by the comptroller [treasurer], including cash, money order, or
67-3 bank draft. The liability of the depository or other person making
67-4 the remittance continues until the money is received by the
67-5 comptroller [treasurer]. A depository that refuses to make a
67-6 remittance required by this chapter forfeits its right to receive
67-7 further deposits, on order of the board. The board may withdraw
67-8 all funds from the depository, which after the withdrawal ceases to
67-9 be a state depository.
67-10 SECTION 7.38. Section 404.041, Government Code, is amended
67-11 to read as follows:
67-12 Sec. 404.041. TRUSTEE. The comptroller [treasurer] is the
67-13 trustee of funds in the treasury.
67-14 SECTION 7.39. Sections 404.042(a)-(d), Government Code, are
67-15 amended to read as follows:
67-16 (a) Not later than the 20th day after the date on which
67-17 notice of election is received and before entering the duties of
67-18 office, the comptroller [treasurer] shall give a bond with a good
67-19 and solvent surety company authorized to do business in this state,
67-20 in the sum of $70,000, payable to and approved by the governor and
67-21 conditioned that the comptroller [treasurer] shall faithfully
67-22 execute the duties of that office under this chapter. Expenses
67-23 necessary and incident to the execution of the bond shall be paid
67-24 by the state.
67-25 (b) The comptroller [treasurer] shall also give any special
67-26 bond required by an Act of Congress or by a federal department or
67-27 official to protect federal funds deposited with the comptroller
68-1 [treasurer]. Expenses necessary and incident to the execution of
68-2 the bond shall be paid by the state.
68-3 (c) The comptroller [treasurer] shall appoint a first
68-4 assistant who shall give bond with a good and solvent surety
68-5 company authorized to do business in this state, in the sum of
68-6 $70,000, payable to and approved by the governor, and conditioned
68-7 that the first assistant shall faithfully execute the duties of
68-8 that office under this chapter. If the comptroller [treasurer] is
68-9 not able to act, the first assistant shall sign the first
68-10 assistant's own name as acting comptroller [treasurer] and perform
68-11 the duties of the comptroller under this chapter [treasurer]. The
68-12 legal acts and signatures of the first assistant as acting
68-13 comptroller under this chapter [treasurer] are valid as the acts
68-14 and signatures of the comptroller [treasurer].
68-15 (d) The comptroller [treasurer] shall appoint other
68-16 employees that are authorized by law. Employees who as part of
68-17 their duties handle money, or drafts, checks, bills of exchange,
68-18 warrants, securities, or other evidences of debt that are or may be
68-19 convertible into money, or other valuable property shall give bond
68-20 with a good and solvent surety company authorized to do business in
68-21 this state, payable to the comptroller [treasurer] in the sum that
68-22 the comptroller [treasurer] requires, conditioned that the employee
68-23 shall faithfully execute and perform the duties of that employee's
68-24 position. The comptroller [treasurer] may also require an employee
68-25 to be insured in the manner and in the sum that the comptroller
68-26 [treasurer] requires.
68-27 SECTION 7.40. Section 404.043, Government Code, is amended
69-1 to read as follows:
69-2 Sec. 404.043. SECURITY OFFICERS. The comptroller
69-3 [treasurer] may employ security officers to provide needed security
69-4 services for the treasury and may commission the officers as peace
69-5 officers. The security officers shall give bond in the same manner
69-6 required by this chapter for employees who handle money or other
69-7 valuable property as part of their duties.
69-8 SECTION 7.41. Section 404.044, Government Code, is amended
69-9 to read as follows:
69-10 Sec. 404.044. REVIEW OF BONDS. The attorney general[, with
69-11 the comptroller,] shall on the first day of the fiscal year examine
69-12 the bonds and insurance of the comptroller [treasurer], first
69-13 assistant, and other employees required under this chapter and make
69-14 diligent inquiry into the condition of the sureties on the bonds
69-15 and policies. If the attorney general finds that a bond or
69-16 insurance policy is not sufficient to protect and secure the state,
69-17 the attorney general shall notify the comptroller [treasurer] in
69-18 writing of the insufficiency of the bond or policy, and the
69-19 comptroller [treasurer] shall secure a sufficient bond or
69-20 insurance.
69-21 SECTION 7.42. Section 404.045, Government Code, is amended
69-22 to read as follows:
69-23 Sec. 404.045. RECEIPT OF MONEY [FROM COMPTROLLER]. The
69-24 comptroller [treasurer] shall receive all money paid into the
69-25 treasury in accordance with the procedures required by Section
69-26 403.052.
69-27 SECTION 7.43. Section 404.046, Government Code, is amended
70-1 to read as follows:
70-2 Sec. 404.046. PAYMENT FROM TREASURY. The comptroller
70-3 [treasurer] shall [countersign and] pay warrants [drawn by] the
70-4 comptroller draws on the treasury that are authorized by law.
70-5 Money may not be paid out of the treasury except on the warrants of
70-6 the comptroller, and a warrant may not be paid by the comptroller
70-7 [treasurer] unless presented for payment to a financial institution
70-8 or the comptroller [treasurer] before two years after the close of
70-9 the fiscal year in which the warrant was issued. Claims for the
70-10 payment of warrants presented after that time may be presented to
70-11 the legislature for appropriations from which the claims may be
70-12 paid.
70-13 SECTION 7.44. Section 404.047, Government Code, is amended
70-14 to read as follows:
70-15 Sec. 404.047. ACCOUNTS. The comptroller [treasurer] shall
70-16 keep accounts of the receipt and expenditure of the money in the
70-17 treasury and close the accounts on August 31 of each year. The
70-18 comptroller [treasurer] shall keep proper records, distinguishing
70-19 between the receipts and disbursements of each fiscal year.
70-20 SECTION 7.45. Section 404.048, Government Code, is amended
70-21 to read as follows:
70-22 Sec. 404.048. REPORT. In addition to the reports required
70-23 by the constitution, the comptroller [treasurer] shall, as required
70-24 by the governor, submit a statement of the balance of money
70-25 remaining in the treasury and a summary of the receipts and
70-26 disbursements recorded by the treasury. The comptroller [treasurer]
70-27 shall exhibit all books, papers, and records on request by the
71-1 legislature or a branch or committee of the legislature.
71-2 SECTION 7.46. Section 404.049, Government Code, is amended
71-3 to read as follows:
71-4 Sec. 404.049. MONEY IN TREASURY. Money received by the
71-5 comptroller [treasurer] as trustee of funds in the treasury shall
71-6 be kept in the treasury. The comptroller [treasurer] may not keep
71-7 or receive into the treasury money, or the representative of money,
71-8 belonging to an individual except as provided by law. The
71-9 comptroller [treasurer] may not appropriate to the comptroller's
71-10 [treasurer's] own use or lend, sell, or exchange money, or the
71-11 representative of money, in the comptroller's [treasurer's] custody
71-12 or control.
71-13 SECTION 7.47. Section 404.050, Government Code, is amended
71-14 to read as follows:
71-15 Sec. 404.050. DELIVERY TO SUCCESSOR. The comptroller
71-16 [treasurer] shall, at the close of the term of office, deliver into
71-17 the possession of the successor comptroller [treasurer] the money,
71-18 securities, and all other property of the state in the
71-19 comptroller's [treasurer's] possession and the books, vouchers,
71-20 papers, evidences of property, and all other matters and things
71-21 pertaining to the office.
71-22 SECTION 7.48. Section 404.051, Government Code, is amended
71-23 to read as follows:
71-24 Sec. 404.051. MONEY RETURNED TO COUNTY OR MUNICIPALITY. If
71-25 money is in the treasury for the purpose of paying an obligation
71-26 due from a county or municipality and the comptroller finds from
71-27 certified copies of the records of the commissioners court or by
72-1 other satisfactory evidence that the obligation is no longer
72-2 outstanding against the county or municipality, the comptroller
72-3 shall draw a warrant on the treasury in favor of the county or
72-4 municipality for that amount of money and[. The treasurer] shall
72-5 pay the money [on the warrant of the comptroller] to the treasurer
72-6 of the county or municipality for the benefit of its general fund.
72-7 SECTION 7.49. Section 404.052, Government Code, is amended
72-8 to read as follows:
72-9 Sec. 404.052. OBLIGATIONS OF MUNICIPALITIES, DISTRICTS, AND
72-10 POLITICAL SUBDIVISIONS. (a) A bond, warrant, or other evidence of
72-11 indebtedness issued by a municipality, district, or political
72-12 subdivision of this state and any interest, at the discretion of
72-13 the municipality, district, or political subdivision may be payable
72-14 at the office of the comptroller [state treasurer]. The
72-15 comptroller [treasurer] serves as ex officio treasurer and fiscal
72-16 agent of the municipality, district, or political subdivision for
72-17 the purposes of receiving funds for the payment of the obligation
72-18 and interest, making payment of the obligation and interest, and
72-19 for all other purposes designated by this chapter or necessary or
72-20 incidental to the service.
72-21 (b) The comptroller [treasurer] shall deposit money received
72-22 by the comptroller [treasurer] under this section and shall keep a
72-23 separate account for each municipality, district, or political
72-24 subdivision. The payment of interest and principal due on an
72-25 obligation of the municipality, district, or political subdivision
72-26 must be on deposit with the comptroller [treasurer] not later than
72-27 five business days before the date of maturity. Any charges
73-1 incurred for late receipt of funds shall be assessed to the
73-2 municipality, district, or political subdivision. On receipt of
73-3 those amounts by the comptroller [treasurer], the comptroller
73-4 [treasurer] shall [request the comptroller to] issue a warrant for
73-5 the payment of amounts due.
73-6 (c) On return of the obligation, the treasurer of the
73-7 municipality, district, or political subdivision shall record the
73-8 payment and cancellation.
73-9 (d) The comptroller [treasurer] shall collect for the use of
73-10 the state from the municipality, district, or political subdivision
73-11 a fee in an amount established by rule of the comptroller
73-12 [treasurer] that is sufficient to pay the comptroller's
73-13 [treasurer's] cost of administration. The treasurer of the
73-14 municipality, district, or political subdivision, at the time of
73-15 the remittance for the payment of the maturing obligation or
73-16 interest, shall remit the fee to the comptroller [treasurer] as ex
73-17 officio treasurer of the municipality, district, or political
73-18 subdivision. On receipt of the fee, the comptroller [treasurer]
73-19 shall deposit it to the appropriate fund. The amount of the fees
73-20 earned, or as much as necessary, is reserved to the comptroller
73-21 [treasurer] to be used in the administration of this chapter. Any
73-22 balance remaining at the end of a fiscal year is available for use
73-23 in the next fiscal year.
73-24 (e) It is the general intent of this section to provide an
73-25 inexpensive and feasible means for the payment of bonds and
73-26 interest coupons issued by municipalities, districts, and political
73-27 subdivisions in the state at the office of the comptroller [state
74-1 treasurer], and this section shall be broadly construed to carry
74-2 out that intent. An official or a municipality, district, or
74-3 political subdivision concerned with the administration of this
74-4 section shall perform the acts and duties necessary or appropriate
74-5 to facilitate and expedite the operation of this section to the end
74-6 that bonds and interest may be promptly paid and the payment
74-7 clearly evidenced and accounted for.
74-8 (f) The comptroller [treasurer] shall cancel and return to
74-9 the municipality, district, or political subdivision depositing
74-10 funds for the payment of interest coupons or the retirement of
74-11 bonds the coupons and bonds that have matured or been retired by
74-12 purchase, together with a statement of the account of the
74-13 municipality, district, or subdivision showing the amounts received
74-14 and placed to its credit, service charges, and amount of coupons or
74-15 bonds retired. At the request of the municipality, district, or
74-16 political subdivision, the comptroller [treasurer] shall remit to
74-17 the municipality, district, or subdivision any balance remaining in
74-18 custody of the comptroller [treasurer] for more than two years for
74-19 which bonds or coupons have not been presented for payment. The
74-20 municipality, district, or political subdivision shall pay these
74-21 coupons or bonds when presented. A municipality, district, or
74-22 political subdivision is entitled at any reasonable time to a
74-23 statement of its account with the comptroller [treasurer].
74-24 SECTION 7.50. Section 404.054, Government Code, is amended
74-25 to read as follows:
74-26 Sec. 404.054. DAILY TOTALS. The comptroller [treasurer]
74-27 shall post the daily totals of deposits to the proper fund and
75-1 control accounts in the general ledger. The comptroller
75-2 [treasurer] shall keep a transit record, in which the comptroller
75-3 [treasurer] shall record the essential details of cash, checks,
75-4 money orders, drafts, or other items deposited or cashed each day,
75-5 showing the items deposited in each depository bank or otherwise
75-6 disposed of. The totals of deposits shall be charged to the
75-7 accounts of the respective depositories on the books of the
75-8 treasury. The comptroller [treasurer] shall keep a journal of all
75-9 journal vouchers or other memoranda of transfers between funds or
75-10 accounts. Postings shall be made from this journal to the proper
75-11 accounts on the books of the treasury.
75-12 SECTION 7.51. Section 404.055, Government Code, is amended
75-13 to read as follows:
75-14 Sec. 404.055. TIME AND DEMAND DEPOSITS. The comptroller
75-15 [treasurer] shall maintain records of the daily balances of and the
75-16 interest income from funds deposited by the comptroller [treasurer]
75-17 in time and demand deposit accounts in each bank acting as a state
75-18 depository. The comptroller [treasurer] shall maintain and
75-19 preserve those records according to the provisions of Subchapter D,
75-20 Chapter 441, and of Chapter 552.
75-21 SECTION 7.52. Section 404.056, Government Code, is amended
75-22 to read as follows:
75-23 Sec. 404.056. INFORMATION CONCERNING WARRANTS. (a) The
75-24 comptroller [treasurer] shall keep the information on each warrant
75-25 that is necessary to enable an adequate audit to be performed.
75-26 [The comptroller shall furnish the necessary information to the
75-27 treasurer.]
76-1 (b) The comptroller [treasurer] shall keep information on
76-2 the payment of each warrant, including the number and amount of
76-3 each warrant paid. [The treasurer, on request of the comptroller,
76-4 shall furnish the necessary information each day to the
76-5 comptroller.]
76-6 (c) The comptroller [treasurer] shall keep detailed
76-7 information concerning all canceled warrants.
76-8 SECTION 7.53. Section 404.057, Government Code, is amended
76-9 to read as follows:
76-10 Sec. 404.057. WARRANTS PAYABLE ACCOUNTS. (a) The
76-11 comptroller [treasurer] shall keep warrants payable accounts for
76-12 each fund.
76-13 (b) To each account, the comptroller [treasurer] shall
76-14 credit the daily totals of warrants issued and charged to each fund
76-15 so that the balance of those accounts represents the aggregate
76-16 amount of outstanding warrants.
76-17 SECTION 7.54. Section 404.058, Government Code, is amended
76-18 to read as follows:
76-19 Sec. 404.058. OUTSTANDING WARRANTS. The comptroller
76-20 [treasurer] shall compile information concerning outstanding
76-21 warrants, which must be consistent with the requirements of the
76-22 uniform statewide accounting system. [Upon request, this
76-23 information shall be sent to the comptroller.]
76-24 SECTION 7.55. Section 404.059, Government Code, is amended
76-25 to read as follows:
76-26 Sec. 404.059. GENERAL LEDGER ACCOUNTS. The comptroller
76-27 [treasurer] shall charge the daily totals of the warrants to the
77-1 respective funds and control accounts in the general ledger to
77-2 which they apply.
77-3 SECTION 7.56. Section 404.060, Government Code, is amended
77-4 to read as follows:
77-5 Sec. 404.060. PRIORITY OF WARRANTS. Warrants on the
77-6 treasury shall be on an equal basis with each other, except that if
77-7 a question arises concerning the priority of payment of the
77-8 warrants the comptroller [treasurer] shall determine the priority
77-9 of payment.
77-10 SECTION 7.57. Section 404.062(a), Government Code, is
77-11 amended to read as follows:
77-12 (a) This subsection applies to money the status of which is
77-13 undetermined or that is awaiting the time when it can be taken into
77-14 the treasury. The money shall be placed with the comptroller
77-15 [treasurer] and credited to the suspense account. The comptroller
77-16 [treasurer] shall [request and] maintain information about the
77-17 deposit of funds into the suspense account in accordance with
77-18 Section 403.052.
77-19 SECTION 7.58. Section 404.064, Government Code, is amended
77-20 to read as follows:
77-21 Sec. 404.064. OFFICE FEES. The comptroller [treasurer]
77-22 shall keep records of the fees earned by the comptroller under this
77-23 chapter [treasury department]. Those fees shall be deposited to
77-24 the appropriate fund in the treasury.
77-25 SECTION 7.59. Section 404.065, Government Code, is amended
77-26 to read as follows:
77-27 Sec. 404.065. CASH BALANCING. The comptroller [treasurer]
78-1 shall keep records for the purpose of arriving at the daily cash
78-2 balance. The daily totals of receipts and disbursements and the
78-3 amount of cash on hand and in depository banks shall be recorded.
78-4 SECTION 7.60. Section 404.066(a), Government Code, is
78-5 amended to read as follows:
78-6 (a) The general ledger kept by the comptroller [treasurer]
78-7 shall contain accounts for each fund. Those accounts shall be
78-8 credited with the existing balances and the daily totals of
78-9 deposits. Warrants issued and electronic funds transfers shall be
78-10 charged daily to the fund accounts.
78-11 SECTION 7.61. Sections 404.067(a), (b), and (c), Government
78-12 Code, are amended to read as follows:
78-13 (a) The comptroller [treasurer] shall keep custodial records
78-14 that shall reflect all deposits and releases of securities held by
78-15 the comptroller [treasurer] and belonging to a state investment
78-16 agency.
78-17 (b) The comptroller [treasurer] shall keep appropriate
78-18 ledger accounts that include a short description of each security
78-19 held in safekeeping for certain investment agencies of the state.
78-20 (c) The comptroller [treasurer] shall keep controlling or
78-21 total accounts of securities in the general ledger. Those accounts
78-22 shall be kept with respect to the total amount of bonds or other
78-23 securities belonging to each separate fund.
78-24 SECTION 7.62. Section 404.068, Government Code, is amended
78-25 to read as follows:
78-26 Sec. 404.068. STATE REGULATORY AGENCIES SAFEKEEPING AND
78-27 PLEDGED COLLATERAL. (a) The comptroller [treasurer] shall keep a
79-1 suitable system in which shall be entered all securities deposited
79-2 with the comptroller [treasurer] by state depositories and other
79-3 state agencies. The comptroller [treasurer] shall enter in the
79-4 system the authorizations to deposit or release the securities.
79-5 (b) The comptroller [treasurer] shall keep a securities
79-6 ledger in which appropriate accounts for each custodial agency are
79-7 kept. That ledger shall be balanced monthly against control
79-8 accounts kept in the general ledger and against corresponding
79-9 accounts kept by the comptroller.
79-10 SECTION 7.63. Section 404.069, Government Code, is amended
79-11 to read as follows:
79-12 Sec. 404.069. TRUST FUNDS. (a) All money and securities
79-13 deposited with the comptroller [treasurer] in trust for any legal
79-14 purpose may be received by the comptroller [treasurer] as provided
79-15 by Section 403.052. The money or securities shall be held in trust
79-16 by the comptroller [treasurer] in the same manner as the
79-17 departmental suspense account. Withdrawal shall be by warrant in
79-18 the case of money and withdrawal authorization in the case of
79-19 securities. Those instruments shall be issued by the comptroller
79-20 as provided by Sections 403.011 and 403.056.
79-21 (b) Money received in trust or for any legal purpose that is
79-22 placed in a suspense account or fund shall be handled by the
79-23 comptroller [treasurer] in the same manner as items deposited in
79-24 the departmental suspense account.
79-25 (c) Adequate registers, ledgers, and files shall be
79-26 maintained by the [treasurer and by the] comptroller to account for
79-27 the receiving and disposing of trust and suspense money and
80-1 securities. Those registers, ledgers, and files shall be known as
80-2 the trust and suspense record.
80-3 SECTION 7.64. Section 404.070, Government Code, is amended
80-4 to read as follows:
80-5 Sec. 404.070. VALIDITY OF VOIDED WARRANTS. (a) A warrant
80-6 issued by the comptroller in payment of refunds from a fund in the
80-7 treasury becomes void unless presented to the comptroller
80-8 [treasurer] for payment before two years after the end of the
80-9 fiscal year in which the warrant was issued. The sum of money
80-10 represented by a warrant voided under this section shall be
80-11 transferred by the comptroller from the fund from which the warrant
80-12 was originally issued to the general revenue fund. Claims for the
80-13 payment of a voided warrant may be presented to the legislature for
80-14 appropriation from which the warrant may be paid. This section
80-15 does not affect the laws regulating the payment of other warrants
80-16 issued by the comptroller.
80-17 (b) When a transfer of money under this section is made, the
80-18 comptroller [treasurer] shall prepare a list of the outstanding
80-19 warrants representing the transfer. The list must show the date of
80-20 the original warrant, the departmental suspense account against
80-21 which the warrant was originally drawn, the original warrant
80-22 number, and the amount of the original warrant. The list shall be
80-23 maintained as a permanent record in the office of the comptroller
80-24 [treasurer].
80-25 SECTION 7.65. Section 404.071, Government Code, is amended
80-26 to read as follows:
80-27 Sec. 404.071. DISPOSITION OF INTEREST ON INVESTMENTS. (a)
81-1 Interest received from investments of money in funds and accounts
81-2 in the charge of the comptroller [treasurer] shall be allocated on
81-3 a monthly basis as follows:
81-4 (1) the pro rata portion of the interest received due
81-5 to each constitutional fund shall be credited to that fund;
81-6 (2) the pro rata portion of the interest received due
81-7 to the game, fish, and water safety fund shall be credited to that
81-8 fund; and
81-9 (3) the remainder of the interest received, except the
81-10 portion required by other statutes to be credited on a pro rata
81-11 basis to protested payments, shall be credited to the general
81-12 revenue fund.
81-13 (b) The legislature may appropriate a portion of the
81-14 interest under Subsection (a) to the comptroller [treasurer] in the
81-15 amount necessary to reimburse the comptroller [treasurer] for costs
81-16 incurred in receiving, paying, accounting for, investing, and
81-17 safekeeping money in those funds and accounts. Amounts
81-18 appropriated for that purpose shall be deposited to the credit of
81-19 the fund established for the deposit of commissions reserved to the
81-20 comptroller [treasurer] under Section 404.052(d).
81-21 (c) If a deficit occurs in the general revenue fund, the
81-22 comptroller [treasurer] may place with a designated depository bank
81-23 an offsetting compensating balance in a special depository account
81-24 known as a special demand account secured by general revenue
81-25 warrants only.
81-26 (d) The comptroller [treasurer] is entitled to rely on the
81-27 opinion and advice of the attorney general for the proper
82-1 interpretation and application of this section.
82-2 (e) [The treasurer shall provide the comptroller information
82-3 necessary for the comptroller to compute the amount of interest to
82-4 be paid from the general revenue fund as a result of the federal
82-5 Cash Management Improvement Act of 1990 (31 U.S.C. Section 6501 et
82-6 seq.). The treasurer shall provide the information in accordance
82-7 with the comptroller's requirements for frequency, method, and
82-8 format.]
82-9 [(f)] For each special fund or account that contains
82-10 depository interest, the comptroller shall transfer from the fund
82-11 or account to the general revenue fund an amount equal to the
82-12 interest paid from the general revenue fund on behalf of the fund
82-13 or account. In this subsection:
82-14 (1) "Account" means a subdivision of a special fund or
82-15 the general revenue fund.
82-16 (2) "Fund" and "special fund" have the meanings
82-17 assigned by Section 403.001.
82-18 (f) [(g)] The comptroller may adopt procedures and rules to
82-19 administer Subsection (e) [Subsections (e) and (f)].
82-20 (g) [(h)] Subsection (e) applies [Subsections (e) and (f)
82-21 apply] notwithstanding any other law.
82-22 SECTION 7.66. Section 404.072, Government Code, is amended
82-23 to read as follows:
82-24 Sec. 404.072. EXAMINATION BY STATE AUDITOR. The
82-25 disbursements and receipts of the comptroller [treasurer] are
82-26 subject to audit by the state auditor in accordance with Chapter
82-27 321[, Government Code].
83-1 SECTION 7.67. Sections 404.073(a) and (b), Government Code,
83-2 are amended to read as follows:
83-3 (a) The comptroller [treasurer] may be the trustee of funds
83-4 or property outside the treasury.
83-5 (b) The comptroller [treasurer] functioning as the trustee
83-6 of funds or property outside the treasury may contract with the
83-7 treasury to manage the funds or property in a manner similar to the
83-8 management of funds in the treasury.
83-9 SECTION 7.68. Sections 404.094(a) and (b), Government Code,
83-10 are amended to read as follows:
83-11 (a) Fees, fines, penalties, taxes, charges, gifts, grants,
83-12 donations, and other funds collected or received by a state agency
83-13 under law shall be deposited in the treasury, credited to a special
83-14 fund or funds, and subject to appropriation only for the purposes
83-15 for which they are otherwise authorized to be expended or
83-16 disbursed. A deposit shall be made at the earliest possible time
83-17 that the treasury can accept those funds, but not later than the
83-18 third business day after the date of receipt. However, if an
83-19 agency determines that for seasonal or other extraordinary reasons
83-20 deposits cannot be made by the third business day after the date of
83-21 receipt, the agency shall provide written notice of the
83-22 determination to the state auditor and comptroller [treasurer] with
83-23 an explanation of the circumstances that require the delay. If the
83-24 state auditor finds that an agency has not complied with this
83-25 subsection, the state auditor shall make an estimate of any
83-26 resulting financial loss to the state, taking into consideration
83-27 compliance costs that would have been additionally incurred by the
84-1 agency, and report the amount to the legislative audit committee,
84-2 the governor, and the comptroller [treasurer].
84-3 (b) Money that is required by this subchapter or by another
84-4 law to be deposited in the treasury shall be deposited to the
84-5 credit of the general revenue fund unless the money is expressly
84-6 required to be deposited to another fund, trust fund, or special
84-7 account not in the general revenue fund. This subsection does not
84-8 affect the authority of the comptroller [or the treasurer] to
84-9 establish and use accounts necessary to manage and account for
84-10 state revenues and expenditures.
84-11 SECTION 7.69. Sections 404.095(b) and (e), Government Code,
84-12 are amended to read as follows:
84-13 (b) If during the preceding state fiscal year a person paid
84-14 a state agency a total of $500,000 or more in a category of
84-15 payments and the agency reasonably anticipates that during the
84-16 current state fiscal year the person will pay the agency $500,000
84-17 or more in a category of payments, the state agency shall require
84-18 the person to transfer payment amounts due to the agency in that
84-19 category, on or before the date the payment is due, by one of the
84-20 means of electronic funds transfer approved by the comptroller
84-21 [treasurer]. For the purposes of this section, each of the
84-22 following is a separate category of payments to a state agency:
84-23 (1) fees;
84-24 (2) fines;
84-25 (3) civil penalties;
84-26 (4) taxes, with each type of tax specified by the
84-27 comptroller [treasurer] being considered a separate category; and
85-1 (5) other payments to the state agency, excluding
85-2 extraordinary payments such as gifts, grants, donations, interest
85-3 and dividend income, and one time surcharges.
85-4 (e) The comptroller [treasurer] shall adopt rules specifying
85-5 approved means of electronic funds transfer and specifying the
85-6 types of taxes constituting separate categories. A person's
85-7 failure to comply with the rules may result in the assessment of a
85-8 penalty by the state agency in an amount equal to five percent of
85-9 the payment amount.
85-10 SECTION 7.70. Section 404.096, Government Code, is amended
85-11 to read as follows:
85-12 Sec. 404.096. RAPID DEPOSITS, TRANSACTIONS, AND TRANSFERS
85-13 REQUIRED. According to a schedule established by the comptroller
85-14 [treasurer], the comptroller [treasurer] shall conduct a study of
85-15 each state agency that collects or receives $50 million or more a
85-16 year from all sources or processes 100,000 or more transactions a
85-17 year of any kind to determine whether implementing a program for
85-18 the rapid administration of deposits or transactions by the agency
85-19 or for the rapid transfer of revenue or information to or from the
85-20 state agency would result in a net savings of state revenue. If
85-21 the comptroller [treasurer] determines that the implementation of a
85-22 program for the rapid administration of deposits or transactions or
85-23 for the rapid transfer of revenue or information to or from the
85-24 state agency would result in a net savings of state revenue, the
85-25 comptroller [treasurer] may require the agency to implement a
85-26 program for that rapid administration or transfer that meets the
85-27 specifications of the comptroller [treasurer].
86-1 SECTION 7.71. Section 404.102(a), Government Code, is
86-2 amended to read as follows:
86-3 (a) The comptroller [treasurer] may incorporate a
86-4 special-purpose trust company called the Texas Treasury Safekeeping
86-5 Trust Company. The purposes of the trust company are to provide a
86-6 means for the comptroller [treasurer] to obtain direct access to
86-7 services provided by the Federal Reserve System and to enable the
86-8 comptroller [treasurer] to manage, disburse, transfer, safekeep,
86-9 and invest funds and securities more efficiently and economically.
86-10 The comptroller [treasurer] may deposit funds and securities with
86-11 the trust company to achieve its purpose.
86-12 SECTION 7.72. Section 404.103(b), Government Code, is
86-13 amended to read as follows:
86-14 (b) The trust company may enter into contracts and trust
86-15 agreements or other fiduciary instruments with the comptroller
86-16 [treasurer], the Federal Reserve System, and other third parties.
86-17 The trust company shall be liable under those contracts in
86-18 accordance with the terms contained in the contracts.
86-19 Notwithstanding any other statute to the contrary, to the extent
86-20 permitted by the Texas Constitution and the contracts, trust
86-21 agreements, or other fiduciary instruments between the trust
86-22 company and the Federal Reserve System, the trust company's
86-23 obligations shall be guaranteed by the state, and the state
86-24 expressly waives all defenses of governmental immunity by and on
86-25 behalf of the trust company, the comptroller [treasurer], and the
86-26 state and expressly consents to sue and be sued in federal court or
86-27 in any court of competent jurisdiction. However, this provision
87-1 does not alter or affect the immunity accorded to state officials
87-2 and employees under state law. The trust company may enter into
87-3 contracts with the comptroller [treasurer] and the Federal Reserve
87-4 System to provide any services that the Federal Reserve System
87-5 makes available, including:
87-6 (1) safekeeping book-entry United States Treasury and
87-7 agency securities owned by the state and its agencies;
87-8 (2) using the federal reserve wire transfer system to
87-9 transfer money and book-entry securities and to settle securities
87-10 transactions involving book-entry United States Treasury and agency
87-11 securities owned by the state and its agencies;
87-12 (3) collecting, through the Federal Reserve System,
87-13 checks deposited with the treasury;
87-14 (4) receiving payments from and making payments to the
87-15 federal government on behalf of the state and its agencies;
87-16 (5) originating automated clearinghouse transactions
87-17 or other electronic transfers to make payments on behalf of the
87-18 state and its agencies, collecting revenues due the state and its
87-19 agencies, and transferring money between state depositories;
87-20 (6) paying warrants drawn on the treasury and
87-21 presented through the Federal Reserve System for payment; and
87-22 (7) safekeeping collateral pledged to secure deposits
87-23 of public funds.
87-24 SECTION 7.73. Section 404.104, Government Code, is amended
87-25 to read as follows:
87-26 Sec. 404.104. DUTIES OF COMPTROLLER [TREASURER]. (a) The
87-27 comptroller [treasurer] is the sole officer, director, and
88-1 shareholder of the trust company. The comptroller's office [state
88-2 treasury department] shall manage the trust company.
88-3 (b) The comptroller [treasurer] may enter into contracts,
88-4 trust agreements, and other instruments with the trust company as
88-5 provided by Section 404.103(b).
88-6 (c) The comptroller [treasurer] shall submit to the
88-7 Legislative Budget Board an audited report regarding the operations
88-8 of the trust company. The state auditor shall conduct an audit of
88-9 the operations of the trust company in accordance with Chapter
88-10 321[, Government Code].
88-11 SECTION 7.74. Section 404.105, Government Code, is amended
88-12 to read as follows:
88-13 Sec. 404.105. CAPITAL OR RESERVE REQUIREMENTS. The trust
88-14 company shall have capital stock or reserve balances in an amount
88-15 required by applicable regulatory bodies for eligibility for
88-16 federal reserve services, but the amount may not be more than $1
88-17 million. The stock of the trust company is an authorized
88-18 investment for state funds and shall be held by the comptroller
88-19 [treasurer].
88-20 SECTION 7.75. Sections 404.106(a) and (b), Government Code,
88-21 are amended to read as follows:
88-22 (a) Any net earnings of the trust company attributable to
88-23 capital or investments shall be credited annually to the account of
88-24 the treasury and shall be allocated annually to the funds held and
88-25 managed by the comptroller [treasurer] in accordance with Section
88-26 404.071(a).
88-27 (b) Funds held by the trust company shall be invested in
89-1 obligations authorized by law for the investment of funds held and
89-2 managed by the comptroller [treasurer].
89-3 SECTION 7.76. Sections 404.121(3), (4), and (5), Government
89-4 Code, are amended to read as follows:
89-5 (3) "Credit agreement" means a loan agreement,
89-6 revolving credit agreement, agreement establishing a line of
89-7 credit, letter of credit, reimbursement agreement, insurance
89-8 contract, commitment to purchase tax and revenue anticipation
89-9 notes, purchase or sale agreement, forward payment conversion
89-10 agreement, contract providing for payments based on levels of or
89-11 changes in interest rates or currency exchange rates, or commitment
89-12 or other contract or agreement approved by the comptroller
89-13 [treasurer] in connection with the authorization, issuance,
89-14 security, exchange, payment, purchase, or redemption of an
89-15 obligation, interest on an obligation, or both.
89-16 (4) "Tax and revenue anticipation notes" and "notes"
89-17 mean notes issued under this section, including any obligations
89-18 under credit agreements entered into by the comptroller [treasurer]
89-19 in connection with the issuance of the notes.
89-20 (5) "Temporary cash shortfall" during any period means
89-21 the greater of:
89-22 (A) the cash flow deficit forecast by the
89-23 comptroller [treasurer] for the period; or
89-24 (B) the cash balance of taxes and other revenues
89-25 in the general revenue fund at the beginning of the period that are
89-26 legally available for expenditures and transfers included in the
89-27 cash flow deficit, other than transfers deposited pursuant to
90-1 Section 403.092, less the cash flow deficit for the period and less
90-2 an amount determined by the comptroller [treasurer] that is
90-3 reasonably required as a cash balance in the general revenue fund,
90-4 but the reasonable account balance may not exceed 10 percent of
90-5 expenditures and transfers made from the general revenue fund in
90-6 the fiscal year before the year in which the determination is made.
90-7 SECTION 7.77. Section 404.122, Government Code, is amended
90-8 to read as follows:
90-9 Sec. 404.122. CASH MANAGEMENT COMMITTEE. The cash
90-10 management committee is composed of the governor, lieutenant
90-11 governor, speaker of the house of representatives, and
90-12 comptroller[, and treasurer]. If the speaker of the house of
90-13 representatives is not permitted by the Texas Constitution to serve
90-14 as a voting member of the committee, the speaker of the house of
90-15 representatives serves as a nonvoting member of the committee.
90-16 SECTION 7.78. Sections 404.123(a) and (b), Government Code,
90-17 are amended to read as follows:
90-18 (a) In anticipation of a temporary cash shortfall in the
90-19 general revenue fund during any fiscal year, the comptroller
90-20 [treasurer], subject to Section 404.124, may issue, sell, and
90-21 deliver tax and revenue anticipation notes on behalf of the state.
90-22 (b) The sum of the total amount of the notes outstanding and
90-23 the total outstanding liability of the general revenue fund under
90-24 Section 403.092 may not at any time exceed 25 percent of the taxes
90-25 and revenues to be credited to the general revenue fund for the
90-26 fiscal year as determined by the comptroller [treasurer], based on
90-27 the certification made by the comptroller in the enactment of the
91-1 General Appropriations Act applicable to that fiscal year.
91-2 SECTION 7.79. Section 404.124, Government Code, is amended
91-3 to read as follows:
91-4 Sec. 404.124. SHORTFALL FORECAST; COMMITTEE APPROVAL. (a)
91-5 Before issuing notes the comptroller [treasurer] shall submit to
91-6 the committee a general revenue cash flow shortfall forecast, based
91-7 on the comptroller's most recent anticipated revenue estimate. The
91-8 forecast must contain a detailed report of estimated revenues and
91-9 expenditures for each month and each major revenue and expenditure
91-10 category and must demonstrate the maximum general revenue cash flow
91-11 shortfall that may be predicted.
91-12 (b) Based on the forecast the committee may approve the
91-13 issuance of notes and the maximum outstanding balance of notes in
91-14 any fiscal year. The outstanding balance may not exceed the
91-15 maximum temporary cash shortfall forecast by the comptroller
91-16 [treasurer] for any period in the fiscal year. The comptroller
91-17 [treasurer] may not issue notes in excess of the amount approved.
91-18 (c) The committee may determine whether the notes will be
91-19 sold on a negotiated or competitive bid basis. If the committee
91-20 determines that competitive bids are appropriate, the underwriter
91-21 of any notes issued under this section shall be selected by the
91-22 solicitation of sealed bids and an appropriate bid notice shall be
91-23 published at least one time in one or more recognized financial
91-24 publications of general circulation published within the state and
91-25 one or more recognized financial publications of general
91-26 circulation published outside the state. Unless all bids are
91-27 rejected, the underwriter shall be selected from the bids received.
92-1 The comptroller [treasurer] may not sell the notes in a manner not
92-2 approved.
92-3 SECTION 7.80. Section 404.125, Government Code, is amended
92-4 to read as follows:
92-5 Sec. 404.125. ISSUANCE OF NOTES. (a) The comptroller
92-6 [treasurer], consistent with the committee's determinations under
92-7 Section 404.124, shall authorize the issuance, sale, and delivery
92-8 of the notes by order.
92-9 (b) Except as otherwise provided by this subsection, the
92-10 proceeds of the notes shall be deposited in a special fund in the
92-11 treasury called the tax and revenue anticipation note fund. The
92-12 comptroller [treasurer] may pay the costs of issuance of the notes
92-13 from the fund and[, with notice to the comptroller,] from time to
92-14 time shall transfer the net proceeds to the general revenue fund to
92-15 honor authorized expenditures from the general revenue fund. The
92-16 comptroller [treasurer] may invest any funds held in the tax and
92-17 revenue anticipation note fund in the authorized investments
92-18 described in Section 404.024 until used in accordance with this
92-19 section. Proceeds of a credit agreement may be deposited as
92-20 directed by the comptroller [treasurer] pursuant to the order
92-21 authorizing the credit agreement and may be applied to pay the
92-22 principal of and interest on the notes.
92-23 (c) In connection with the issuance of the notes, the
92-24 comptroller [treasurer] may exercise the powers granted to the
92-25 governing body of an issuer in connection with the issuance of
92-26 obligations under Chapter 656, Acts of the 68th Legislature,
92-27 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
93-1 Statutes), to the extent not inconsistent with this section. The
93-2 notes are subject to review and approval by the attorney general in
93-3 the same manner and with the same effect as is provided by that
93-4 Act.
93-5 (d) The comptroller [treasurer] is an authorized issuer
93-6 under the Bond Procedures Act of 1981 (Article 717k-6, Vernon's
93-7 Texas Civil Statutes), and the procedures, terms, and provisions of
93-8 that Act apply to the tax and revenue anticipation notes authorized
93-9 in this subchapter.
93-10 (e) Amounts in the tax and revenue anticipation note fund
93-11 may be pledged to secure payment of the notes and performance of
93-12 obligations under credit agreements relating to the notes and may
93-13 be used to pay required rebates to the federal government. The
93-14 comptroller [treasurer] may make covenants to carry out the
93-15 purposes of this subchapter and take other actions necessary,
93-16 desirable, or appropriate to complete the issuance of the notes.
93-17 The state pledges to and agrees with the holders of any notes that
93-18 the state will not limit or alter the rights vested in the
93-19 comptroller [treasurer] to fulfill the terms of any agreements made
93-20 with the holders, or in any way impair the rights and remedies of
93-21 the holders, until the notes are fully discharged.
93-22 SECTION 7.81. Sections 404.126(a) and (c), Government Code,
93-23 are amended to read as follows:
93-24 (a) Cash received from the collection of taxes and revenues
93-25 credited to the general revenue fund during the fiscal biennium in
93-26 which the notes are issued is available to restore the balance of
93-27 the tax and revenue anticipation note fund. The comptroller
94-1 [treasurer, with notice to the comptroller,] periodically shall
94-2 transfer the cash to the fund to ensure the timely payment in full
94-3 of the notes. Transfers to the tax and revenue anticipation note
94-4 fund under this subsection may not exceed the amount that has been
94-5 transferred from that fund to the general revenue fund and has not
94-6 been restored to the tax and revenue anticipation note fund. The
94-7 comptroller shall transfer surplus cash into the general revenue
94-8 fund under Section 403.092, as is necessary to complete the
94-9 transfers required by this section.
94-10 (c) On payment in full of all outstanding notes, all
94-11 required rebates to the federal government, and all costs of
94-12 issuance of the notes, the comptroller [treasurer, with notice to
94-13 the comptroller,] shall transfer to the general revenue fund any
94-14 amounts remaining in the tax and revenue anticipation note fund.
94-15 To the extent that the amounts credited to the tax and revenue
94-16 anticipation note fund are insufficient to pay the principal,
94-17 premium, if any, interest on the notes, and any required rebate to
94-18 the federal government when due, and any issuance costs related to
94-19 the notes, amounts in the general revenue fund are available for
94-20 appropriation by the legislature to make those payments. Amounts
94-21 in the tax and revenue anticipation note fund are available for
94-22 appropriation by the legislature to carry out the purposes of this
94-23 subchapter.
94-24 SECTION 7.82. Section 404.053, Government Code, is repealed.
94-25 ARTICLE 8. OTHER CHANGES TO GOVERNMENT CODE
94-26 SECTION 8.01. Section 61.003(b), Government Code, is amended
94-27 to read as follows:
95-1 (b) The county treasurer shall send all donations made under
95-2 this section to the comptroller [state treasurer], at the time and
95-3 in the manner prescribed by the attorney general, for deposit to
95-4 the credit of the compensation to victims of crime fund.
95-5 SECTION 8.02. Section 317.005(h), Government Code, is
95-6 amended to read as follows:
95-7 (h) If either the governor or the board adopts an order
95-8 under this section, the entity adopting the order shall notify the
95-9 proposing entity, the comptroller, [the state treasurer,] and the
95-10 affected state agencies. Unless the order is a contingent order,
95-11 the entity adopting the order shall file a copy of the order with
95-12 the secretary of state for publication in the Texas Register.
95-13 SECTION 8.03. Section 317.006, Government Code, is amended
95-14 to read as follows:
95-15 Sec. 317.006. ACTION ON CONTINGENT ORDER. The governor or
95-16 board shall approve or reject each contingent order adopted under
95-17 Section 317.005(d) by the other entity. The governor or board
95-18 shall notify the other entity, the comptroller, [the state
95-19 treasurer,] and the affected state agencies of the approval or
95-20 rejection and shall direct the secretary of state to publish notice
95-21 of the action in the Texas Register.
95-22 SECTION 8.04. Section 317.009, Government Code, is amended
95-23 to read as follows:
95-24 Sec. 317.009. ENFORCEMENT OF ORDER. During the period for
95-25 which an order adopted under this chapter is effective, in regard
95-26 to affected appropriations the comptroller may approve vouchers and
95-27 [the state treasurer] may issue warrants only in accordance with
96-1 the terms of the order.
96-2 SECTION 8.05. Section 325.017(f), Government Code, is
96-3 amended to read as follows:
96-4 (f) The legislature recognizes the state's continuing
96-5 obligation to pay bonded indebtedness and all other obligations,
96-6 including lease, contract, and other written obligations, incurred
96-7 by a state agency abolished under this chapter, and this chapter
96-8 does not impair or impede the payment of bonded indebtedness and
96-9 all other obligations, including lease, contract, and other written
96-10 obligations, in accordance with their terms. If an abolished state
96-11 agency has outstanding bonded indebtedness or other outstanding
96-12 obligations, including lease, contract, and other written
96-13 obligations, the bonds and all other obligations, including lease,
96-14 contract, and other written obligations, remain valid and
96-15 enforceable in accordance with their terms and subject to all
96-16 applicable terms and conditions of the laws and proceedings
96-17 authorizing the bonds and all other obligations, including lease,
96-18 contract, and other written obligations. The governor shall
96-19 designate an appropriate state agency that shall continue to carry
96-20 out all covenants contained in the bonds and in all other
96-21 obligations, including lease, contract, and other written
96-22 obligations, and the proceedings authorizing them, including the
96-23 issuance of bonds, and the performance of all other obligations,
96-24 including lease, contract, and other written obligations, to
96-25 complete the construction of projects or the performance of other
96-26 obligations, including lease, contract, and other written
96-27 obligations. The designated state agency shall provide payment
97-1 from the sources of payment of the bonds in accordance with the
97-2 terms of the bonds and shall provide payment from the sources of
97-3 payment of all other obligations, including lease, contract, and
97-4 other written obligations, in accordance with their terms, whether
97-5 from taxes, revenues, or otherwise, until the bonds and interest on
97-6 the bonds are paid in full and all other obligations, including
97-7 lease, contract, and other written obligations, are performed and
97-8 paid in full. If the proceedings so provide, all funds established
97-9 by laws or proceedings authorizing the bonds or authorizing other
97-10 obligations, including lease, contract, and other written
97-11 obligations, shall remain with the comptroller [State Treasurer] or
97-12 the previously designated trustees. If the proceedings do not
97-13 provide that the funds remain with the comptroller [State
97-14 Treasurer] or the previously designated trustees, the funds shall
97-15 be transferred to the designated state agency.
97-16 SECTION 8.06. Section 401.003(b), Government Code, is
97-17 amended to read as follows:
97-18 (b) The comptroller [state treasurer] shall credit to the
97-19 inaugural fund a pro rata share of the interest received from the
97-20 deposit of state funds as if the inaugural fund were a
97-21 constitutional fund.
97-22 SECTION 8.07. Section 401.004(b), Government Code, is
97-23 amended to read as follows:
97-24 (b) A contribution may be made to the inaugural committee or
97-25 the secretary of state. If the secretary of state receives a
97-26 contribution while the inaugural committee exists, the secretary of
97-27 state shall deliver the contribution to the committee. If the
98-1 secretary of state receives a contribution at any other time, the
98-2 secretary of state shall transmit the contribution to the
98-3 comptroller [state treasurer], who shall deposit it in the state
98-4 treasury to the credit of the inaugural fund.
98-5 SECTION 8.08. Section 401.008(b), Government Code, is
98-6 amended to read as follows:
98-7 (b) On the date on which the committee files its final
98-8 report with the secretary of state, the committee shall deliver to
98-9 the comptroller [state treasurer] all unexpended nonappropriated
98-10 funds it possesses. The comptroller [treasurer] shall deposit the
98-11 funds in the state treasury to the credit of the inaugural fund.
98-12 SECTION 8.09. Section 401.065(b), Government Code, is
98-13 amended to read as follows:
98-14 (b) The comptroller shall draw and [the state treasurer
98-15 shall] pay the necessary warrants for the emergency.
98-16 SECTION 8.10. Section 402.026, Government Code, is amended
98-17 to read as follows:
98-18 Sec. 402.026. INSPECTION OF ACCOUNTS. At least monthly the
98-19 attorney general shall inspect the accounts of the offices of the
98-20 [state treasurer,] comptroller[,] and each other person responsible
98-21 for collection or custody of state funds. The attorney general
98-22 shall immediately bring or cause to be brought an action to recover
98-23 state funds in the hands of a person in default or arrears and
98-24 shall immediately begin criminal proceedings against a person who
98-25 has illegally applied or retained state funds.
98-26 SECTION 8.11. Section 405.013(c), Government Code, is
98-27 amended to read as follows:
99-1 (c) The secretary of state shall deliver money received from
99-2 sales under this section to the comptroller [treasurer] and shall
99-3 make a full statement of the sales in the secretary of state's
99-4 biennial report.
99-5 SECTION 8.12. Section 411.109, Government Code, is amended
99-6 to read as follows:
99-7 Sec. 411.109. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
99-8 COMPTROLLER [STATE TREASURER]. (a) The comptroller [treasurer] is
99-9 entitled to obtain from the department criminal history record
99-10 information maintained by the department that the comptroller
99-11 [treasurer] believes is necessary for the enforcement or
99-12 administration of Chapter 154 or Chapter 155, Tax Code, including
99-13 criminal history record information that relates to a person who
99-14 is:
99-15 (1) an applicant for a permit under Chapter 154 or
99-16 Chapter 155, Tax Code;
99-17 (2) a permit holder under either of those chapters;
99-18 (3) an officer, director, stockholder owning 10
99-19 percent or more of the outstanding stock, partner, owner, or
99-20 managing employee of an applicant or permit holder under either of
99-21 those chapters that is a corporation, association, joint venture,
99-22 syndicate, partnership, or proprietorship;
99-23 (4) believed to have violated Chapter 154 or Chapter
99-24 155, Tax Code; or
99-25 (5) being considered by the comptroller [treasurer]
99-26 for employment as a peace officer.
99-27 (b) Criminal history record information obtained by the
100-1 comptroller [treasurer] under Subsection (a) may not be released or
100-2 disclosed to any person except on court order or as provided by
100-3 Subsection (c).
100-4 (c) The comptroller [treasurer] is not prohibited from
100-5 disclosing to a person who is the subject of criminal history
100-6 record information the dates and places of arrests, the offenses,
100-7 and the dispositions in the criminal history record information.
100-8 SECTION 8.13. Section 419.026(d), Government Code, is
100-9 amended to read as follows:
100-10 (d) The commission shall send the fees authorized by
100-11 Subsection (a) and Section 419.033(b) to the comptroller [state
100-12 treasurer], who shall deposit 50 percent of the fees collected
100-13 annually into the general revenue fund and 50 percent of the fees
100-14 collected annually into a special account in the general revenue
100-15 fund dedicated for use by the commission. Except as otherwise
100-16 provided by this chapter, 50 percent of the special fund created
100-17 under this subsection may be used only to defray the commission's
100-18 costs in performing inspections under Section 419.027 and the other
100-19 50 percent may be used only to provide training assistance under
100-20 Section 419.031.
100-21 SECTION 8.14. Section 431.035(c), Government Code, is
100-22 amended to read as follows:
100-23 (c) The adjutant general may accept a donation or transfer
100-24 of funds from the federal government directly or through another
100-25 agency or from an agency or political subdivision of the state.
100-26 The funds shall be deposited with the comptroller [state
100-27 treasurer]. The funds may be used for the legal purpose of the
101-1 department set out in the donation or transfer. The comptroller
101-2 [state treasurer] shall pay out the funds on a properly drawn
101-3 warrant issued by the comptroller on request of the adjutant
101-4 general and approval of the governor under regulations adopted by
101-5 the comptroller. An employee whose salary is paid from these funds
101-6 is entitled to not less than the federal hourly minimum wage as
101-7 provided by Section 206, Fair Labor Standards Act of 1938 (29
101-8 U.S.C. Section 206). The adjutant general may adopt regulations
101-9 necessary to control the receipt and disbursement of these funds.
101-10 SECTION 8.15. Section 443.0101(a), Government Code, is
101-11 amended to read as follows:
101-12 (a) Money and securities donated to the board shall be held
101-13 in trust outside the treasury by the comptroller [state treasurer]
101-14 in a special fund to be known as the Capitol fund. The comptroller
101-15 [treasurer] shall manage and invest the fund on behalf of the board
101-16 as directed or agreed to by the board.
101-17 SECTION 8.16. Section 444.027(c), Government Code, is
101-18 amended to read as follows:
101-19 (c) The operating fund is exempt from the application of
101-20 Sections [403.094(h), 403.094(i),] 403.095[,] and 404.071.
101-21 Interest received from investments of money in the operating fund
101-22 shall be allocated monthly by the comptroller [state treasurer] to
101-23 the operating fund.
101-24 SECTION 8.17. Sections 465.023(c) and (d), Government Code,
101-25 are amended to read as follows:
101-26 (c) The fund and the accounts within it shall be held in
101-27 trust by the comptroller [state treasurer] for and on behalf of the
102-1 commission and the owners of the general obligation bonds issued in
102-2 accordance with this section and may be used without further
102-3 appropriation only as provided by this subchapter.
102-4 (d) Pending its use, money in the fund shall be invested as
102-5 provided by resolution of the commission, and investment income
102-6 shall be added to the fund. The comptroller [state treasurer]
102-7 shall invest the fund in investments authorized by law for state
102-8 deposits.
102-9 SECTION 8.18. Section 465.024(c), Government Code, is
102-10 amended to read as follows:
102-11 (c) The commission and any financing corporation may make
102-12 additional covenants with respect to its revenue bonds and the
102-13 pledged revenues and may provide for the flow of funds and the
102-14 establishment and maintenance and investment of funds, which may
102-15 include interest and sinking funds, reserve funds, and other funds.
102-16 Those funds and the income from their investment shall be kept and
102-17 maintained in escrow and in trust by the comptroller [state
102-18 treasurer] for and on behalf of the commission or the financing
102-19 corporation, as applicable, and the owners of its revenue bonds, in
102-20 funds held outside the treasury under Section 404.073. Those funds
102-21 shall be used only as provided by this subchapter and pending their
102-22 use shall be invested as provided by resolution of the commission
102-23 or the financing corporation, as applicable. The comptroller
102-24 [state treasurer] shall invest the funds in investments authorized
102-25 by law for state deposits. The comptroller [state treasurer], as
102-26 custodian, shall administer those funds strictly and only as
102-27 provided by this section and in the resolutions of the commission
103-1 or the financing corporation, as applicable. The state may not
103-2 take action with respect to those funds other than that specified
103-3 in this chapter and in the resolutions of the commission or the
103-4 financing corporation, as applicable. The commission or the
103-5 financing corporation, as applicable, may provide in the resolution
103-6 authorizing its revenue bonds for the issuance of additional bonds
103-7 to be equally and ratably secured by a lien on the revenues and
103-8 receipts or for the issuance of subordinate lien bonds.
103-9 SECTION 8.19. Section 465.030, Government Code, is amended
103-10 to read as follows:
103-11 Sec. 465.030. REFUNDING. The commission and any financing
103-12 corporation may issue bonds to refund all or part of the
103-13 outstanding bonds of the commission or the financing corporation,
103-14 including matured but unpaid interest, in whole or in part, in the
103-15 manner provided by other applicable statutes, including Chapter
103-16 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
103-17 717k, Vernon's Texas Civil Statutes), and Chapter 784, Acts of the
103-18 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's
103-19 Texas Civil Statutes). If the provision for the payment of all
103-20 interest and applicable premiums on and principal of revenue bonds
103-21 issued under this subchapter has been made through the irrevocable
103-22 deposit of money with the comptroller [state treasurer] as provided
103-23 by an applicable statute, the amount of the revenue bonds may no
103-24 longer be charged against the issuing authority of the commission
103-25 and the financing corporations, and on the making of that provision
103-26 the issuing authority is restored to the extent of the principal
103-27 amount of the revenue bonds.
104-1 SECTION 8.20. Section 466.354, Government Code, is amended
104-2 to read as follows:
104-3 Sec. 466.354. DUTIES OF COMPTROLLER [STATE TREASURER].
104-4 (a) The comptroller [state treasurer], in consultation with the
104-5 director, shall establish procedures for the efficient
104-6 implementation and operation of an electronic funds transfer system
104-7 to meet the needs of the director under this chapter.
104-8 (b) The comptroller [state treasurer] periodically shall
104-9 file reports with the executive director providing information
104-10 regarding the revenue credited to the state lottery account, the
104-11 investments of the money in the account, and the distributions made
104-12 from the account.
104-13 SECTION 8.21. Section 466.403, Government Code, is amended
104-14 to read as follows:
104-15 Sec. 466.403. PAYMENT OF PRIZE IN INSTALLMENTS. If the
104-16 director determines that prize money is to be paid in installments,
104-17 the comptroller [state treasurer] shall invest funds from the state
104-18 lottery account as necessary to ensure the payment of the
104-19 installments. The investments may be in securities, annuities, or
104-20 other instruments as determined by the comptroller [treasurer].
104-21 SECTION 8.22. Sections 466.407(a) and (c), Government Code,
104-22 are amended to read as follows:
104-23 (a) The executive director shall deduct the amount of a
104-24 delinquent tax or other money from the winnings of a person who has
104-25 been finally determined to be:
104-26 (1) delinquent in the payment of a tax or other money
104-27 collected by the comptroller[, the state treasurer,] or the Texas
105-1 Alcoholic Beverage Commission;
105-2 (2) delinquent in making child support payments
105-3 administered or collected by the attorney general;
105-4 (3) in default on a loan made under Chapter 52,
105-5 Education Code; or
105-6 (4) in default on a loan guaranteed under Chapter 57,
105-7 Education Code.
105-8 (c) The attorney general, comptroller, [state treasurer,]
105-9 Texas Alcoholic Beverage Commission, Texas Higher Education
105-10 Coordinating Board, and Texas Guaranteed Student Loan Corporation
105-11 shall each provide the executive director with a report of persons
105-12 who have been finally determined to be delinquent in the payment of
105-13 a tax or other money collected by the agency. The commission shall
105-14 adopt rules regarding the form and frequency of reports under this
105-15 subsection.
105-16 SECTION 8.23. Section 481.021(c), Government Code, is
105-17 amended to read as follows:
105-18 (c) The department shall deposit contributions from private
105-19 sources in a separate fund kept and held in escrow and in trust by
105-20 the comptroller [state treasurer] for and on behalf of the
105-21 department as funds held outside the treasury under Section
105-22 404.073, and the money contributed shall be used to carry out the
105-23 purposes of the department and, to the extent possible, the
105-24 purposes specified by the donors. The comptroller [state
105-25 treasurer] may invest and reinvest the money, pending its use, in
105-26 the fund in investments authorized by law for state funds that the
105-27 comptroller [state treasurer] considers appropriate.
106-1 SECTION 8.24. Section 481.026(d), Government Code, is
106-2 amended to read as follows:
106-3 (d) The department may establish a Texas literacy trust fund
106-4 for the purpose of collecting private funds for distribution to
106-5 community literacy programs. The fund must meet all applicable
106-6 requirements under state and federal law necessary for
106-7 qualification as a nonprofit trust. The fund, if established,
106-8 shall be a separate fund kept and held in escrow and in trust by
106-9 the comptroller [state treasurer] for and on behalf of the
106-10 department as funds held outside the treasury under Section
106-11 404.073. Unless prohibited by other law, the comptroller [state
106-12 treasurer] may invest and reinvest the money, pending its use, in
106-13 the fund in investments authorized by law for state funds that the
106-14 comptroller [state treasurer] considers appropriate. The
106-15 department shall distribute money from the fund under guidelines
106-16 set by the Texas Workforce Commission.
106-17 SECTION 8.25. Section 481.056(b), Government Code, is
106-18 amended to read as follows:
106-19 (b) The department shall establish and maintain a separate
106-20 fund into which the proceeds from the sale of the bonds shall be
106-21 deposited. All other money received by the department under this
106-22 subchapter, except money required to be deposited in the Texas
106-23 exporters loan fund, shall also be deposited in this fund. The
106-24 policy board may provide for the establishment and maintenance of
106-25 separate accounts within the fund, including interest and sinking
106-26 accounts, reserve accounts, program accounts, and other accounts,
106-27 all of which shall be kept and held in escrow and in trust by the
107-1 comptroller [state treasurer] for and on behalf of the department
107-2 and the owners of the bonds as funds outside the treasury under
107-3 Section 404.073 and may be used only as provided by this
107-4 subchapter. Pending use, the comptroller [state treasurer] may
107-5 invest and reinvest the money in the fund in investments authorized
107-6 by law for state funds that the comptroller [state treasurer], with
107-7 the approval of the policy board and consistent with resolutions
107-8 authorizing the bonds, considers appropriate. Earnings on those
107-9 investments shall be deposited in the fund. The department is
107-10 authorized to use money deposited in the fund for the purposes
107-11 specified in and according to the procedures established by this
107-12 subchapter, and the state may not take any action with respect to
107-13 the fund other than as specified by this subchapter and in the
107-14 resolutions of the policy board.
107-15 SECTION 8.26. Section 481.154(a), Government Code, is
107-16 amended to read as follows:
107-17 (a) The smart jobs fund is established as a special trust
107-18 fund in the custody of the comptroller [state treasurer] separate
107-19 and apart from all public money or funds of this state. The fund
107-20 is composed of:
107-21 (1) money transferred into the fund under Section
107-22 204.123, Labor Code [9e, Texas Unemployment Compensation Act
107-23 (Article 5221b-1 et seq., Vernon's Texas Civil Statutes)];
107-24 (2) gifts, grants, and other donations received by the
107-25 department for the fund; and
107-26 (3) any amounts appropriated by the legislature for
107-27 the program.
108-1 SECTION 8.27. Sections 481.193(f)-(i), Government Code, are
108-2 amended to read as follows:
108-3 (f) After reviewing each linked deposit loan application,
108-4 the executive director of the department shall recommend to the
108-5 comptroller [state treasurer] the acceptance or rejection of the
108-6 application.
108-7 (g) After the comptroller's [state treasurer's] acceptance
108-8 of the application and the lending institution originates a loan to
108-9 an eligible borrower, the comptroller [state treasurer] shall place
108-10 a linked deposit with the applicable eligible lending institution
108-11 for the period the comptroller [treasurer] considers appropriate.
108-12 The comptroller [state treasurer] may not place a deposit for a
108-13 period extending beyond the state fiscal biennium in which it is
108-14 placed. Subject to the limitation described by Section 481.197,
108-15 the comptroller [treasurer] may place time deposits at an interest
108-16 rate described by Section 481.192, notwithstanding any order of the
108-17 State Depository Board to the contrary.
108-18 (h) Before the placing of a linked deposit, the eligible
108-19 lending institution and the state, represented by the comptroller
108-20 [state treasurer] and the department, shall enter into a written
108-21 deposit agreement containing the conditions on which the linked
108-22 deposit is made. The deposit agreement must provide that:
108-23 (1) the lending institution notify the comptroller
108-24 [state treasurer] if the borrower to which the deposit is linked
108-25 defaults on the loan; and
108-26 (2) in the event of a default the comptroller [state
108-27 treasurer] may withdraw the linked deposit.
109-1 (i) If a lending institution holding linked deposits ceases
109-2 to be a state depository, the comptroller [state treasurer] may
109-3 withdraw the linked deposits.
109-4 SECTION 8.28. Section 481.194(b), Government Code, is
109-5 amended to read as follows:
109-6 (b) The department shall monitor compliance with this
109-7 subchapter and inform the comptroller [state treasurer] of
109-8 noncompliance on the part of an eligible lending institution.
109-9 SECTION 8.29. Section 481.226(a), Government Code, is
109-10 amended to read as follows:
109-11 (a) The policy board may issue up to $25 million of general
109-12 obligation bonds and may use the proceeds of the bonds to provide
109-13 venture financing under this subchapter. The policy board shall
109-14 deposit the proceeds of the bonds in the Texas product development
109-15 fund and apply them in accordance with the resolution authorizing
109-16 the bonds. The fund and any accounts established in the fund shall
109-17 be held in trust by the comptroller [state treasurer] for and on
109-18 behalf of the department and the owners of the general obligation
109-19 bonds issued in accordance with this section, and may be used only
109-20 as provided by this section. Pending use, the comptroller
109-21 [treasurer] may invest and reinvest money in the fund in
109-22 investments authorized by law for state funds that the comptroller
109-23 [treasurer], consistent with the policy board's resolutions
109-24 authorizing the bonds, considers appropriate. Repayments of
109-25 financial assistance provided under this subchapter, together with
109-26 earnings received on investments of the product development funds,
109-27 shall be deposited first, in the interest and sinking account as
110-1 prescribed by the policy board's resolutions authorizing bonds
110-2 under this subchapter and second, in any reserve account
110-3 established by the policy board until that account is fully funded
110-4 as prescribed by the policy board's resolutions. If, during the
110-5 time any general obligation bonds are payable from the interest and
110-6 sinking account, the policy board determines that there will not be
110-7 sufficient money in the interest and sinking account during the
110-8 following fiscal year to pay the principal of or interest on the
110-9 general obligation bonds or both the principal and interest that
110-10 are to come due during the following fiscal year, the comptroller
110-11 [of public accounts] shall transfer to the fund the first money
110-12 coming into the state treasury not otherwise appropriated by the
110-13 constitution in an amount sufficient to pay the obligations.
110-14 SECTION 8.30. Section 481.242(b), Government Code, is
110-15 amended to read as follows:
110-16 (b) Money appropriated to the department, interest paid on
110-17 money in the fund, proceeds of bonds issued under this chapter,
110-18 application fees, guarantee fees, royalty receipts, dividend
110-19 income, loan repayments, and other amounts received by the state
110-20 for loans, loan guarantees, equity in investments, or grants made
110-21 under this subchapter, and any other money received by the
110-22 department under this chapter including federal funds and the
110-23 proceeds of any investment pools operated by the comptroller
110-24 [treasurer] shall be deposited to the credit of the fund.
110-25 Appropriated money in the fund may be applied and reapplied to the
110-26 purposes of this subchapter.
110-27 SECTION 8.31. Section 481.244(a), Government Code, is
111-1 amended to read as follows:
111-2 (a) The policy board may issue up to $20 million of general
111-3 obligation bonds and may use the proceeds, less the costs of
111-4 issuance of the bonds, to carry out the small business incubator
111-5 program in accordance with the resolution authorizing the bonds.
111-6 The policy board shall deposit the proceeds of the bonds in the
111-7 small business incubator fund and apply them in accordance with the
111-8 resolution authorizing the bonds. The fund and any accounts
111-9 established in the fund shall be held in trust by the comptroller
111-10 [state treasurer] for and on behalf of the department and the
111-11 owners of the general obligation bonds issued in accordance with
111-12 this section, and may be used only as provided by this subchapter.
111-13 Pending use, the comptroller [treasurer] may invest and reinvest
111-14 money in the fund in investments authorized by law for state funds
111-15 that the comptroller [treasurer], consistent with the policy
111-16 board's resolutions authorizing the bonds, considers appropriate.
111-17 Repayments of financial assistance provided under this subchapter,
111-18 together with earnings received on investments of the fund, shall
111-19 be deposited first, in the interest and sinking account as
111-20 prescribed by the policy board's resolutions authorizing bonds
111-21 under this article and second, in any reserve account established
111-22 by the policy board until that account is fully funded as
111-23 prescribed by the policy board's resolutions. If, during the time
111-24 any general obligation bonds are payable from the interest and
111-25 sinking account, the policy board determines that there will not be
111-26 sufficient money in the interest and sinking account during the
111-27 following fiscal year to pay the principal of or interest on the
112-1 general obligation bonds or both the principal and interest that
112-2 are to come due during the following fiscal year, the comptroller
112-3 [of public accounts] shall transfer to the fund the first money
112-4 coming into the state treasury not otherwise appropriated by the
112-5 constitution in an amount sufficient to pay the obligations.
112-6 SECTION 8.32. Section 481.275(a), Government Code, is
112-7 amended to read as follows:
112-8 (a) The Texas art indemnity fund is a fund outside the state
112-9 treasury. The comptroller [state treasurer] shall be trustee of
112-10 the fund as provided by Section 404.073. The fund consists of
112-11 contributions made for the purposes of this subchapter. Money in
112-12 the fund may be used only for payment of indemnity claims as
112-13 provided by this subchapter.
112-14 SECTION 8.33. Section 497.033(d), Government Code, is
112-15 amended to read as follows:
112-16 (d) The institutional division shall deposit funds received
112-17 from the sale of articles and products produced under this
112-18 subchapter with the comptroller [state treasurer] to be maintained
112-19 in the industrial revolving fund.
112-20 SECTION 8.34. Sections 501.014(c) and (d), Government Code,
112-21 are amended to read as follows:
112-22 (c) If money is unclaimed two years after the institutional
112-23 division gives or attempts to give notice under Subsection (b), or
112-24 two years after the date of the death of an inmate whose
112-25 beneficiary or nearest relative is unknown, the director of the
112-26 institutional division shall make an affidavit stating that the
112-27 money is unclaimed and send the affidavit and money to the
113-1 comptroller [state treasurer].
113-2 (d) Money forfeited to the comptroller [state treasurer]
113-3 under Subsection (c) escheats to the state.
113-4 SECTION 8.35. Sections 501.015(d) and (e), Government Code,
113-5 are amended to read as follows:
113-6 (d) The director of the institutional division shall provide
113-7 the comptroller [state treasurer] with funds sufficient to maintain
113-8 not less than $100,000 in a bank or banks in Huntsville, Texas, for
113-9 the purpose of making prompt payments to inmates required by
113-10 Subsection (b). Funds maintained in a bank under this subsection
113-11 must be secured by bonds or other securities approved by the
113-12 attorney general.
113-13 (e) A bank that maintains funds described by Subsection (b)
113-14 shall make a weekly report to the comptroller [state treasurer] on
113-15 the condition of the funds.
113-16 SECTION 8.36. Section 571.030(c), Government Code, is
113-17 amended to read as follows:
113-18 (c) At the request of the commission, the comptroller [state
113-19 treasurer] shall transfer funds to the commission under Section
113-20 74.602(b)(2), Property Code.
113-21 SECTION 8.37. Section 601.007, Government Code, is amended
113-22 to read as follows:
113-23 Sec. 601.007. EVIDENCE OF QUALIFICATION FOR OFFICE. On
113-24 demand of a citizen of this state, the comptroller, [the
113-25 treasurer,] a commissioners court, a county treasurer, or any other
113-26 officer of the state or of a municipality who is authorized by law
113-27 to make, order, or audit payment to an officer of the state, of a
114-1 county, or of a municipality of compensation, fees, or perquisites
114-2 for official services shall, before making, ordering, or auditing
114-3 the payment, require the officer to produce:
114-4 (1) the certificate of election or of appointment to
114-5 the office that is required by law to be issued to the officer; or
114-6 (2) a certified copy of the judgment or decree that:
114-7 (A) was issued by a court of competent
114-8 jurisdiction; and
114-9 (B) determined the officer's claim to the
114-10 office.
114-11 SECTION 8.38. Section 603.002, Government Code, is amended
114-12 to read as follows:
114-13 Sec. 603.002. COPIES OF DOCUMENTS AVAILABLE TO PUBLIC. The
114-14 secretary of state, Commissioner of the General Land Office,
114-15 comptroller, [state treasurer,] commissioner of agriculture,
114-16 Banking Commissioner, state librarian, or attorney general:
114-17 (1) shall furnish to a person on request a certified
114-18 copy, under seal, of any document in the officer's office that is
114-19 available under law to that person; and
114-20 (2) may not demand or collect a fee from an officer of
114-21 the state for a copy of any document in the respective offices or
114-22 for a certificate in relation to a matter in the respective offices
114-23 if the copy is required in the performance of an official duty of
114-24 the office of the state officer requesting the copy.
114-25 SECTION 8.39. Section 606.029(c), Government Code, is
114-26 amended to read as follows:
114-27 (c) The retirement system may direct the comptroller [or the
115-1 state treasurer] to deduct a delinquent payment and interest from
115-2 funds payable by the state to the delinquent political subdivision
115-3 that are expressly subject to deduction. The comptroller [or the
115-4 state treasurer] shall send to the retirement system in trust the
115-5 amount deducted for the contribution of the delinquent political
115-6 subdivision.
115-7 SECTION 8.40. Sections 606.030(a) and (f), Government Code,
115-8 are amended to read as follows:
115-9 (a) The social security administration fund is outside the
115-10 treasury. The comptroller [state treasurer] is the custodian of
115-11 the fund and shall administer the fund separately from other funds
115-12 as directed by the retirement system. Credits of money in the fund
115-13 are not state funds or subject to legislative appropriation.
115-14 (f) The retirement system, at the end of each fiscal year,
115-15 shall pay from the social security administration fund to the
115-16 comptroller [state treasurer] for deposit in the general revenue
115-17 fund at least 10 percent of the contributions collected for
115-18 administrative expenses in the preceding year. Payment under this
115-19 subsection may continue only until the amount appropriated to the
115-20 retirement system from the state for administering this subchapter
115-21 has been reimbursed in full.
115-22 SECTION 8.41. Section 608.007, Government Code, is amended
115-23 to read as follows:
115-24 Sec. 608.007. TRUST ACCOUNT. (a) A department
115-25 administrator shall deposit a warrant issued under Section
115-26 608.005(a) with the comptroller [state treasurer] to be held in
115-27 trust by the comptroller [treasurer] until disbursed by the
116-1 department administrator to purchase savings bonds for an
116-2 individual designated in an authorization under Section 608.002
116-3 filed with the department administrator.
116-4 (b) A disbursing officer shall deposit a warrant issued
116-5 under Section 608.005(b) with the comptroller [treasurer] of the
116-6 political subdivision to be held in trust by the comptroller
116-7 [treasurer] until disbursed by the disbursing officer to purchase
116-8 savings bonds for an individual designated in an authorization
116-9 under Section 608.002 filed with the disbursing officer.
116-10 (c) A warrant held in trust under this section shall be
116-11 deposited in an account designated as the savings bond payroll
116-12 savings account. The comptroller [treasurer] shall pay out money
116-13 deposited in the account on proper warrants drawn by the department
116-14 administrator or disbursing officer, as appropriate.
116-15 SECTION 8.42. Section 653.004(c), Government Code, is
116-16 amended to read as follows:
116-17 (c) The head of a state agency, other than the comptroller
116-18 [or the state treasurer], may contract for specific excess
116-19 indemnity coverage in addition to a blanket bond. The comptroller
116-20 [or the state treasurer] may contract for:
116-21 (1) specific excess indemnity coverage in addition to
116-22 an honesty blanket position bond or to a position schedule honesty
116-23 bond; and
116-24 (2) a faithful performance blanket position bond.
116-25 SECTION 8.43. Sections 659.083(a) and (b), Government Code,
116-26 are amended to read as follows:
116-27 (a) Except as provided by Subsection (b), the comptroller
117-1 [treasurer] may not pay the salary of a state officer or employee
117-2 before the first working day of the month following the payroll
117-3 period.
117-4 (b) The comptroller [treasurer] shall pay an employee who is
117-5 paid twice a month under Section 659.082 on:
117-6 (1) the first working day of the month following the
117-7 payroll period that covers the last half of the preceding month;
117-8 and
117-9 (2) the 15th day of the month or the first working day
117-10 after the 15th for the payroll period that covers the first half of
117-11 the month.
117-12 SECTION 8.44. Section 663.052(a), Government Code, is
117-13 amended to read as follows:
117-14 (a) The board is composed of:
117-15 (1) the governor;
117-16 (2) the lieutenant governor;
117-17 (3) the attorney general;
117-18 (4) [the state treasurer;]
117-19 [(5)] the comptroller; and
117-20 (5) [(6)] the commissioner of the General Land Office.
117-21 SECTION 8.45. Section 815.207, Government Code, is amended
117-22 to read as follows:
117-23 Sec. 815.207. COMPTROLLER [STATE TREASURER]. (a) Except as
117-24 provided by Section 815.302 or 815.303, the comptroller [state
117-25 treasurer] is the custodian of the securities, bonds, and funds of
117-26 the retirement system.
117-27 (b) The comptroller [state treasurer] shall pay money from
118-1 the funds of the retirement system on warrants drawn by the
118-2 comptroller supported only on vouchers signed by the executive
118-3 director and the chairman of the board of trustees or their
118-4 authorized representatives.
118-5 (c) The comptroller [state treasurer] annually shall furnish
118-6 to the board of trustees a sworn statement of the amount of the
118-7 retirement system's assets in the comptroller's [treasurer's]
118-8 custody.
118-9 (d) The board of trustees may, in the exercise of its
118-10 constitutional discretion to manage the assets of the retirement
118-11 system, select one or more commercial banks, depository trust
118-12 companies, or other entities to serve as custodian of all or part
118-13 of the retirement system's assets.
118-14 SECTION 8.46. Section 815.209(a), Government Code, is
118-15 amended to read as follows:
118-16 (a) The comptroller [state treasurer] shall give a surety
118-17 bond in the amount of $50,000.
118-18 SECTION 8.47. Section 815.308(b), Government Code, is
118-19 amended to read as follows:
118-20 (b) The amount of cash on hand may not exceed 10 percent of
118-21 the total amount in the funds of the retirement system on deposit
118-22 with the comptroller [state treasurer], excluding the assets of the
118-23 law enforcement and custodial officer supplemental retirement fund.
118-24 SECTION 8.48. Section 815.310(a), Government Code, is
118-25 amended to read as follows:
118-26 (a) A trust fund for the Employees Retirement System of
118-27 Texas is established with the comptroller [state treasurer].
119-1 SECTION 8.49. Section 815.402(e), Government Code, is
119-2 amended to read as follows:
119-3 (e) The retirement system shall record all receipts of
119-4 member contributions and shall deliver the receipts to the
119-5 comptroller [state treasurer]. The comptroller [state treasurer]
119-6 shall credit the receipts to the employees saving account.
119-7 SECTION 8.50. Sections 815.403(d) and (e), Government Code,
119-8 are amended to read as follows:
119-9 (d) Before September 1 of each year, the retirement system
119-10 shall certify to the state comptroller of public accounts [and to
119-11 the state treasurer]:
119-12 (1) an estimate of the amount necessary to pay the
119-13 state's contribution under Subsection (a)(1) for the following
119-14 fiscal year;
119-15 (2) an estimate of the amount necessary to pay
119-16 membership fees for the following fiscal year, if the legislature
119-17 has appropriated money for that purpose; and
119-18 (3) an estimate of the amount required to pay lump-sum
119-19 death benefits for retirees under Section 814.501 for the following
119-20 fiscal year.
119-21 (e) All money allocated and appropriated by the state to the
119-22 retirement system for benefits provided by the retirement system,
119-23 except money for the payment of lump-sum death benefits and for the
119-24 payment of benefits from the law enforcement and custodial officer
119-25 supplemental retirement fund, shall be paid, based on the annual
119-26 estimate of the retirement system, in monthly installments to the
119-27 state accumulation fund. The money required for state
120-1 contributions and membership fees shall be from respective funds
120-2 appropriated to pay the compensation of the member for whose
120-3 benefit the contribution or fee is paid. If the total of the
120-4 estimated required payments is not equal to the total of the actual
120-5 payments required for a fiscal year, the retirement system shall
120-6 certify to the state comptroller of public accounts [and the state
120-7 treasurer] at the end of that year the amount required for
120-8 necessary adjustments, and the comptroller [state treasurer] shall
120-9 make the required adjustments.
120-10 SECTION 8.51. Section 825.207, Government Code, is amended
120-11 to read as follows:
120-12 Sec. 825.207. COMPTROLLER [STATE TREASURER]. (a) Except as
120-13 provided by Section 825.302 or 825.303 or by Subsection (e) of this
120-14 section, the comptroller [state treasurer] is the custodian of all
120-15 securities and cash of the retirement system, including securities
120-16 held in the name of a nominee of the retirement system.
120-17 (b) The comptroller [state treasurer] shall pay money from
120-18 the accounts of the retirement system on warrants drawn by the
120-19 comptroller [of public accounts] and authorized by vouchers signed
120-20 by the executive director or other persons designated by the board
120-21 of trustees.
120-22 (c) The comptroller [state treasurer] annually shall furnish
120-23 to the board of trustees a sworn statement of the amount of the
120-24 retirement system's assets in the comptroller's [treasurer's]
120-25 custody.
120-26 (d) The comptroller [state treasurer] is not responsible,
120-27 under either civil or criminal law, for any action or losses with
121-1 respect to assets of the retirement system while the assets are in
121-2 the custody of a commercial bank as provided by Section 825.302 or
121-3 825.303 or by Subsection (e) of this section.
121-4 (e) The board of trustees may, in the exercise of its
121-5 constitutional discretion to manage the assets of the retirement
121-6 system, select one or more commercial banks, depository trust
121-7 companies, or other entities to serve as custodian or custodians of
121-8 all or part of the retirement system's assets.
121-9 SECTION 8.52. Section 825.209(a), Government Code, is
121-10 amended to read as follows:
121-11 (a) The comptroller [state treasurer] shall give a surety
121-12 bond in the amount of $50,000.
121-13 SECTION 8.53. Section 825.305, Government Code, is amended
121-14 to read as follows:
121-15 Sec. 825.305. AVAILABLE CASH. The board of trustees may
121-16 keep on deposit with the comptroller [state treasurer] available
121-17 cash not exceeding 10 percent of the total assets of the retirement
121-18 system, to pay annuity and other disbursements.
121-19 SECTION 8.54. Sections 825.403(c) and (d), Government Code,
121-20 are amended to read as follows:
121-21 (c) The executive director shall deposit with the
121-22 comptroller [state treasurer] all deductions received by the
121-23 executive director.
121-24 (d) After the deductions are deposited with the comptroller
121-25 [state treasurer], the money shall be used as provided by this
121-26 subtitle.
121-27 SECTION 8.55. Section 825.406(g), Government Code, is
122-1 amended to read as follows:
122-2 (g) An employer who fails to comply with this section may
122-3 not, after the failure, apply for or spend any money from a federal
122-4 or private grant. The retirement system shall report alleged
122-5 noncompliance to the attorney general, [the state treasurer,] the
122-6 Legislative Budget Board, the comptroller of public accounts, and
122-7 the governor. The attorney general shall bring a writ of mandamus
122-8 against the employer to compel compliance with this section.
122-9 SECTION 8.56. Sections 840.103(d) and (e), Government Code,
122-10 are amended to read as follows:
122-11 (d) Before September 1 of each year, the retirement system
122-12 shall certify to the state comptroller of public accounts [and to
122-13 the state treasurer] an estimate of the amount necessary to pay the
122-14 state's contribution under Subsection (a) for the following fiscal
122-15 year.
122-16 (e) All money allocated and appropriated by the state to the
122-17 retirement system for benefits provided by the retirement system
122-18 shall be paid, based on the annual estimate of the retirement
122-19 system, in monthly installments to the retirement system. The
122-20 money required for state contributions shall be from money
122-21 appropriated to pay the compensation of the member for whose
122-22 benefit the contribution or fee is paid. If the total of the
122-23 estimated required payments is not equal to the total of the actual
122-24 payments required for a fiscal year, the retirement system shall
122-25 certify to the state comptroller of public accounts [and the state
122-26 treasurer] at the end of that year the amount required for
122-27 necessary adjustments, and the comptroller [state treasurer] shall
123-1 make the required adjustments.
123-2 SECTION 8.57. Section 840.206, Government Code, is amended
123-3 to read as follows:
123-4 Sec. 840.206. COMPTROLLER [STATE TREASURER]. (a) The
123-5 comptroller [state treasurer] is the custodian of the securities,
123-6 bonds, and funds of the retirement system, except as provided by
123-7 Section 840.3011 or 840.3012 of this subtitle.
123-8 (b) The comptroller [state treasurer] shall pay money from
123-9 the trust fund of the retirement system on warrants drawn by the
123-10 state comptroller [of public accounts] supported on vouchers signed
123-11 by the executive director and the chairman of the board of trustees
123-12 or their authorized representatives.
123-13 (c) The comptroller [state treasurer] annually shall furnish
123-14 to the board of trustees a sworn statement of the amount of the
123-15 retirement system's assets in the comptroller's [treasurer's]
123-16 custody.
123-17 (d) The board of trustees may, in the exercise of its
123-18 constitutional discretion to manage the funds of the retirement
123-19 system, select one or more commercial banks, depository trust
123-20 companies, or other entities to serve as custodian of all or part
123-21 of the retirement system's assets.
123-22 SECTION 8.58. Section 840.208(a), Government Code, is
123-23 amended to read as follows:
123-24 (a) The comptroller [state treasurer] shall give a surety
123-25 bond in the amount of $50,000.
123-26 SECTION 8.59. Section 840.304(b), Government Code, is
123-27 amended to read as follows:
124-1 (b) The amount of cash on hand may not exceed 10 percent of
124-2 the total amount in the funds of the retirement system on deposit
124-3 with the comptroller [state treasurer].
124-4 SECTION 8.60. Section 2054.007(b), Government Code, is
124-5 amended to read as follows:
124-6 (b) The electronic funds transfer system for the operation
124-7 of the state lottery is not included in the agency strategic plan
124-8 or biennial operating plan of the comptroller [state treasurer].
124-9 Operations of the comptroller [state treasurer] that relate to the
124-10 state lottery are not subject to the planning and procurement
124-11 requirements of this chapter.
124-12 SECTION 8.61. Section 2101.011(a), Government Code, is
124-13 amended to read as follows:
124-14 (a) A state agency shall submit the financial information
124-15 requested by the comptroller, including information about state
124-16 funds held outside the state treasury, to:
124-17 (1) the governor;
124-18 (2) the comptroller;
124-19 (3) [the state treasurer;]
124-20 [(4)] the state auditor; and
124-21 (4) [(5)] the Legislative Budget Board.
124-22 SECTION 8.62. Section 2101.032(b), Government Code, is
124-23 amended to read as follows:
124-24 (b) The committee is composed of:
124-25 (1) the comptroller;
124-26 (2) the governor;
124-27 (3) the lieutenant governor;
125-1 (4) the speaker of the house of representatives;
125-2 (5) [the state treasurer;]
125-3 [(6)] the executive director of the Department of
125-4 Information Resources;
125-5 (6) [(7)] the state auditor; and
125-6 (7) [(8)] eight appointees of the governor, including:
125-7 (A) an employee of the Legislative Budget Board;
125-8 and
125-9 (B) one individual each with experience in the
125-10 following areas: education, natural resources, criminal justice,
125-11 human services, business regulation, and employee benefits.
125-12 SECTION 8.63. Section 2106.006(a), Government Code, is
125-13 amended to read as follows:
125-14 (a) A state agency that receives federal money for federally
125-15 reimbursable indirect costs shall send to the comptroller [state
125-16 treasurer] for deposit to the credit of the general revenue fund
125-17 the lesser of:
125-18 (1) the amount received for federally reimbursable
125-19 indirect costs; or
125-20 (2) the amount allocated to the agency in the
125-21 governor's statewide cost allocation plan for the cost of providing
125-22 statewide support services to the agency.
125-23 SECTION 8.64. Section 2108.003(a), Government Code, is
125-24 amended to read as follows:
125-25 (a) The commission is composed of:
125-26 (1) the governor;
125-27 (2) the lieutenant governor;
126-1 (3) the comptroller;
126-2 (4) [the state treasurer;]
126-3 [(5)] the agency administrator of the Texas Employment
126-4 Commission;
126-5 (5) [(6)] the chairman of the Texas Higher Education
126-6 Coordinating Board or the chairman's designee; and
126-7 (6) [(7)] three public members appointed by the
126-8 governor who have experience in the administration of bonus,
126-9 incentive, or related programs used in private industry.
126-10 SECTION 8.65. Section 2108.109(b), Government Code, is
126-11 amended to read as follows:
126-12 (b) The comptroller [state treasurer] shall create in the
126-13 productivity bonus fund a productivity bonus account for each state
126-14 agency or division participating in the productivity bonus program
126-15 and an account for the commission.
126-16 SECTION 8.66. Section 2162.103(a), Government Code, is
126-17 amended to read as follows:
126-18 (a) In comparing the cost of providing a service, the
126-19 council shall consider the:
126-20 (1) cost of supervising the work of a private
126-21 contractor; and
126-22 (2) cost of a state agency's performance of the
126-23 service, including:
126-24 (A) the costs of the comptroller, [treasurer,]
126-25 attorney general, and other support agencies; and
126-26 (B) other indirect costs related to the agency's
126-27 performance of the service.
127-1 SECTION 8.67. Section 2256.053, Government Code, is amended
127-2 to read as follows:
127-3 Sec. 2256.053. PAYMENT FOR SECURITIES PURCHASED BY STATE.
127-4 The comptroller[, the state treasurer,] or the disbursing officer
127-5 of an agency that has the power to invest assets directly may pay
127-6 for authorized securities purchased from or through a member in
127-7 good standing of the National Association of Securities Dealers or
127-8 from or through a national or state bank on receiving an invoice
127-9 from the seller of the securities showing that the securities have
127-10 been purchased by the board or agency and that the amount to be
127-11 paid for the securities is just, due, and unpaid. A purchase of
127-12 securities may not be made at a price that exceeds the existing
127-13 market value of the securities.
127-14 SECTION 8.68. Section 2256.054, Government Code, is amended
127-15 to read as follows:
127-16 Sec. 2256.054. DELIVERY OF SECURITIES PURCHASED BY STATE. A
127-17 security purchased under this chapter may be delivered to the
127-18 comptroller [state treasurer], a bank, or the board or agency
127-19 investing its funds. The delivery shall be made under normal and
127-20 recognized practices in the securities and banking industries,
127-21 including the book entry procedure of the Federal Reserve Bank.
127-22 SECTION 8.69. Section 2256.055, Government Code, is amended
127-23 to read as follows:
127-24 Sec. 2256.055. DEPOSIT OF SECURITIES PURCHASED BY STATE. At
127-25 the direction of the comptroller [state treasurer] or the agency, a
127-26 security purchased under this chapter may be deposited in trust
127-27 with a bank or federal reserve bank or branch designated by the
128-1 comptroller [treasurer], whether in or outside the state. The
128-2 deposit shall be held in the entity's name as evidenced by a trust
128-3 receipt of the bank with which the securities are deposited.
128-4 SECTION 8.70. Section 2257.002(4), Government Code, is
128-5 amended to read as follows:
128-6 (4) "Deposit of public funds" means public funds of a
128-7 public entity that:
128-8 (A) the comptroller [state treasurer] does not
128-9 manage under Chapter 404; and
128-10 (B) are held as a demand or time deposit by a
128-11 depository institution expressly authorized by law to accept a
128-12 public entity's demand or time deposit.
128-13 SECTION 8.71. Section 2303.503(b), Government Code, is
128-14 amended to read as follows:
128-15 (b) The comptroller [state treasurer] may and is encouraged
128-16 to deposit state money in financial institutions located or doing
128-17 business in enterprise zones.
128-18 SECTION 8.72. Section 2304.024, Government Code, is amended
128-19 to read as follows:
128-20 Sec. 2304.024. INVESTMENT AND DISBURSEMENT OF FUND. The
128-21 comptroller [state treasurer] shall invest and disburse the money
128-22 credited to the fund on the written authorization of the executive
128-23 director of the department.
128-24 SECTION 8.73. Section 2304.066(a), Government Code, is
128-25 amended to read as follows:
128-26 (a) The executive director of the department shall authorize
128-27 the comptroller [state treasurer] to disburse to a local government
129-1 from the housing rehabilitation loan fund the amount of a housing
129-2 rehabilitation loan approved by the local government under this
129-3 chapter if the department receives from the local government a
129-4 notice of the local government's approval of the loan.
129-5 SECTION 8.74. Section 2305.024, Government Code, is amended
129-6 to read as follows:
129-7 Sec. 2305.024. INVESTMENT OF MONEY AND DEPOSIT OF INTEREST.
129-8 (a) The comptroller [state treasurer] may invest unobligated money
129-9 in the account in accordance with Subchapter C, Chapter 404.
129-10 (b) The comptroller [state treasurer] shall deposit to the
129-11 credit of the account all interest or other income received from
129-12 the investment of the money.
129-13 SECTION 8.75. Section 2306.207(a), Government Code, is
129-14 amended to read as follows:
129-15 (a) The housing finance division may create a reserve fund
129-16 with the comptroller [state treasurer] out of:
129-17 (1) proceeds from the sale of the division's bonds; or
129-18 (2) other resources.
129-19 SECTION 8.76. Section 2306.452, Government Code, is amended
129-20 to read as follows:
129-21 Sec. 2306.452. PAYMENT ENFORCEABLE BY MANDAMUS. A writ of
129-22 mandamus and any other legal or equitable remedy are available to a
129-23 party in interest to require the department, the comptroller
129-24 [treasurer], or another party to carry out an agreement or to
129-25 perform a function or duty under:
129-26 (1) this chapter;
129-27 (2) the Texas Constitution; or
130-1 (3) the department's bond resolutions.
130-2 SECTION 8.77. Section 2309.021(a), Government Code, is
130-3 amended to read as follows:
130-4 (a) The Texas home port trust fund is administered by the
130-5 comptroller [state treasurer] and may be paid only on written
130-6 authorization of the governor.
130-7 ARTICLE 9. CHANGES TO HUMAN RESOURCES CODE
130-8 SECTION 9.01. Section 22.005(f), Human Resources Code, is
130-9 amended to read as follows:
130-10 (f) The comptroller [state treasurer] is the designated
130-11 custodian of all funds administered by the department and received
130-12 by the state from the federal government or any other source for
130-13 the purpose of implementing the provisions of the Social Security
130-14 Act. The comptroller [treasurer] may receive the funds, pay them
130-15 into the proper fund or account of the general fund of the state
130-16 treasury, provide for the proper custody of the funds, and make
130-17 disbursements of the funds on the order of the department and on
130-18 warrant of the comptroller.
130-19 SECTION 9.02. Section 50.005(b), Human Resources Code, is
130-20 amended to read as follows:
130-21 (b) The comptroller shall, on requisition of the department,
130-22 draw warrants from time to time [on the State Treasurer] for the
130-23 amount specified in the requisition, not exceeding the amount in
130-24 the fund at the time the requisition is made. However, all money
130-25 expended in the administration, implementation, or enforcement of
130-26 this chapter shall be specified and determined by itemized
130-27 appropriation in the General Appropriations Act for the department
131-1 and not otherwise.
131-2 SECTION 9.03. Sections 91.056(a) and (c), Human Resources
131-3 Code, are amended to read as follows:
131-4 (a) The comptroller [state treasurer] is custodian of
131-5 federal funds received by the state to implement federal law
131-6 relating to vocational rehabilitation.
131-7 (c) The comptroller [treasurer] shall disburse state and
131-8 federal vocational rehabilitation funds on certification by the
131-9 executive director.
131-10 ARTICLE 10. CHANGES TO HEALTH AND SAFETY CODE
131-11 SECTION 10.01. Section 42.011(c), Health and Safety Code, is
131-12 amended to read as follows:
131-13 (c) The comptroller [state treasurer] may receive all money
131-14 appropriated by congress and allotted to this state for carrying
131-15 out this chapter or agreements or plans authorized by this chapter.
131-16 SECTION 10.02. Section 224.0245, Health and Safety Code, is
131-17 amended to read as follows:
131-18 Sec. 224.0245. OFFICIAL CUSTODIAN. The comptroller [state
131-19 treasurer] is the official custodian of the minutes, books,
131-20 records, and seal of the financing council.
131-21 SECTION 10.03. Section 224.027, Health and Safety Code, is
131-22 amended to read as follows:
131-23 Sec. 224.027. SUPPORT STAFF. The office of the comptroller
131-24 [state treasurer] shall provide staff and other support necessary
131-25 to carry out the duties and powers of the financing council.
131-26 SECTION 10.04. Section 242.096(a), Health and Safety Code,
131-27 is amended to read as follows:
132-1 (a) The nursing and convalescent home trust fund is with the
132-2 comptroller [state treasurer] and shall be made available to the
132-3 department for expenditures without legislative appropriation to
132-4 make emergency assistance funds available to a home.
132-5 SECTION 10.05. Section 361.133(b), Health and Safety Code,
132-6 is amended to read as follows:
132-7 (b) The fund consists of money collected by the commission
132-8 from:
132-9 (1) fees imposed on the owner or operator of an
132-10 industrial solid waste or hazardous waste facility for commercial
132-11 and noncommercial management or disposal of hazardous waste or
132-12 commercial disposal of industrial solid waste under Section 361.136
132-13 and fees imposed under Section 361.138;
132-14 (2) interest and penalties imposed under Section
132-15 361.140 for late payment of a fee or late filing of a report;
132-16 (3) money paid by a person liable for facility cleanup
132-17 and maintenance under Section 361.197;
132-18 (4) the interest received from the investment of this
132-19 fund, in accounts under the charge of the comptroller [treasurer],
132-20 to be credited pro rata to the hazardous and solid waste
132-21 remediation fee fund;
132-22 (5) monies transferred from other agencies under
132-23 provisions of this code or grants or other payments from any person
132-24 made for the purpose of remediation of facilities under this
132-25 chapter or the investigation, cleanup, or removal of a spill or
132-26 release of a hazardous substance;
132-27 (6) fees imposed under Section 361.604; and
133-1 (7) federal grants received for the implementation or
133-2 administration of state voluntary cleanup programs.
133-3 SECTION 10.06. Section 402.294(d), Health and Safety Code,
133-4 is amended to read as follows:
133-5 (d) The board may authorize the comptroller [state
133-6 treasurer] to invest the money in a fund established under
133-7 Subsection (b) in investments allowed by law for state funds.
133-8 Money earned on those investments shall be deposited to the credit
133-9 of that fund.
133-10 SECTION 10.07. Section 467.0041(c), Health and Safety Code,
133-11 is amended to read as follows:
133-12 (c) The board may collect a fee of not more than $50 each
133-13 month from a participant in an approved peer assistance program.
133-14 Fees collected under this subsection shall be remitted to the
133-15 comptroller [state treasurer] for deposit to the credit of the
133-16 dental registration account.
133-17 ARTICLE 11. CHANGES TO INSURANCE CODE
133-18 SECTION 11.01. Section 17, Article 1.10, Insurance Code, is
133-19 amended to read as follows:
133-20 17. Voluntary Deposits. (a) In the event any insurance
133-21 company organized and doing business under the provisions of this
133-22 Code shall be required by any other state, country or province as a
133-23 requirement for permission to do an insurance business therein to
133-24 make or maintain a deposit with an officer of any state, country,
133-25 or province, such company, at its discretion, may voluntarily
133-26 deposit with the Comptroller [State Treasurer] such securities as
133-27 may be approved by the Commissioner of Insurance to be of the type
134-1 and character authorized by law to be legal investments for such
134-2 company, or cash, in any amount sufficient to enable it to meet
134-3 such requirements. The Comptroller [State Treasurer] is hereby
134-4 authorized and directed to receive such deposit and hold it
134-5 exclusively for the protection of all policyholders or creditors of
134-6 the company wherever they may be located, or for the protection of
134-7 the policyholders or creditors of a particular state, country or
134-8 province, as may be designated by such company at the time of
134-9 making such deposit. The company may, at its option, withdraw such
134-10 deposit or any part thereof, first having deposited with the
134-11 Comptroller [Treasurer], in lieu thereof, other securities of like
134-12 class and of equal amount and value to those withdrawn, which
134-13 withdrawal and substitution must be approved by the Commissioner of
134-14 Insurance. The proper officer of each insurance company making
134-15 such deposit shall be permitted at all reasonable times to examine
134-16 such securities and to detach coupons therefrom, and to collect
134-17 interest thereon, under such reasonable rules and regulations as
134-18 may be prescribed by the Comptroller [State Treasurer] and the
134-19 Commissioner of Insurance. Any deposit so made for the protection
134-20 of policyholders or creditors of a particular state, country or
134-21 province shall not be withdrawn, except by substitution as provided
134-22 above, by the company, except upon filing with the Commissioner of
134-23 Insurance evidence satisfactory to him that the company has
134-24 withdrawn from business, and has no unsecured liabilities
134-25 outstanding or potential policyholder liabilities or obligations in
134-26 such other state, country or province requiring such deposit, and
134-27 upon the filing of such evidence the company may withdraw such
135-1 deposit at any time upon the approval of the Commissioner of
135-2 Insurance. Any deposit so made for the protection of all
135-3 policyholders or creditors wherever they may be located shall not
135-4 be withdrawn, except by substitution as provided above, by the
135-5 company except upon filing with the Commissioner of Insurance
135-6 evidence satisfactory to him that the company does not have any
135-7 unsecured liabilities outstanding or potential policy liabilities
135-8 or obligations anywhere, and upon filing such evidence the company
135-9 may withdraw such deposit upon the approval of the Commissioner of
135-10 Insurance. For the purpose of state, county and municipal
135-11 taxation, the situs of any securities deposited with the
135-12 Comptroller [State Treasurer] hereunder shall be in the city and
135-13 county where the principal business office of such company is fixed
135-14 by its charter.
135-15 (b) Any voluntary deposit held by the Comptroller [State
135-16 Treasurer] or the Department heretofore made by any insurance
135-17 company in this State, and which deposit was made for the purpose
135-18 of gaining admission to another state, may be considered, at the
135-19 option of such company, to be hereinafter held under the provisions
135-20 of this Act.
135-21 (c) When two or more companies merge or consolidate or enter
135-22 a total reinsurance contract by which the ceding company is
135-23 dissolved and its assets acquired and liabilities assumed by the
135-24 surviving company, and the companies have on deposit with the
135-25 Comptroller [State Treasurer] two or more deposits made for
135-26 identical purposes under this section or Article 4739, Revised
135-27 Statutes, as amended, and now repealed, all such deposits, except
136-1 the deposit of greatest amount and value, may be withdrawn by the
136-2 new surviving or reinsuring company, upon proper showing of
136-3 duplication of such deposits and that the company is the owner
136-4 thereof.
136-5 (d) Any company which has made a deposit or deposits under
136-6 this section or Article 4739, Revised Statutes, as amended and now
136-7 repealed, shall be entitled to a return of such deposits upon
136-8 proper application therefor and a showing before the Commissioner
136-9 that such deposit or deposits are no longer required under the laws
136-10 of any state, country or province in which such company sought or
136-11 gained admission to do business upon the strength of a certificate
136-12 of such deposit.
136-13 (e) Upon being furnished a certified copy of the
136-14 Commissioner's order issued under Subsection (c) or (d) above, the
136-15 Comptroller [Treasurer of the State of Texas] shall release,
136-16 transfer and deliver such deposit or deposits to the owner as
136-17 directed in said order.
136-18 SECTION 11.02. Article 1.20, Insurance Code, is amended to
136-19 read as follows:
136-20 Art. 1.20. TRANSFER OF SECURITIES BY BOARD. No transfer by
136-21 the Board of securities of any kind, in any way held by it, shall
136-22 be valid unless countersigned by the comptroller [State Treasurer].
136-23 SECTION 11.03. Article 1.21, Insurance Code, is amended to
136-24 read as follows:
136-25 Art. 1.21. DUTY OF COMPTROLLER [STATE TREASURER]. It is the
136-26 duty of the comptroller [State Treasurer]:
136-27 1. To countersign any such transfer presented to him
137-1 by the Board.
137-2 2. To keep a record of all transfers, stating the name
137-3 of the transferee, unless transferred in blank, and a description
137-4 of the security.
137-5 3. Upon countersigning, to advise by mail the company
137-6 concerned, the particulars of the transaction.
137-7 4. In his annual report to the Legislature to state
137-8 the transfers and the amount thereof, countersigned by him.
137-9 SECTION 11.04. Article 1.22, Insurance Code, is amended to
137-10 read as follows:
137-11 Art. 1.22. FREE ACCESS TO RECORDS. To verify the
137-12 correctness of records, the Board shall be entitled to free access
137-13 to the comptroller's [Treasurer's] records, required by the
137-14 preceding article, and the comptroller [Treasurer] shall be
137-15 entitled to free access to the books and other documents of the
137-16 Insurance Department relating to securities held by the Board.
137-17 SECTION 11.05. Section 4, Article 1.31A, Insurance Code, is
137-18 amended to read as follows:
137-19 Sec. 4. Certain Money Included. The money received from
137-20 sales, reimbursements, and other fees authorized by law other than
137-21 this code includes money received from the following:
137-22 (1) fees received by the department for providing
137-23 copies of public records under Chapter 552, Government Code [424,
137-24 Acts of the 63rd Legislature, Regular Session, 1973, as amended
137-25 (Article 6252-17a, Vernon's Texas Civil Statutes)];
137-26 (2) money or credits received by the department for
137-27 surplus or salvage property under Subchapters C and D, Chapter
138-1 2175, Government Code [Sections 9.04 and 9.05, State Purchasing and
138-2 General Services Act (Article 601b, Vernon's Texas Civil
138-3 Statutes)];
138-4 (3) money received by the department from the sale of
138-5 publications and other printed material under Sections 2052.301 and
138-6 2052.302, Government Code [Chapter 248, Acts of the 55th
138-7 Legislature, Regular Session, 1957 (Article 4413(33), Vernon's
138-8 Texas Civil Statutes)];
138-9 (4) receipts to the department from miscellaneous
138-10 transactions and sources under Section 403.011 or 403.012,
138-11 Government Code, as amended;
138-12 (5) money received by the department from charges for
138-13 postage spent to serve legal process under Section 17.025, Civil
138-14 Practice and Remedies Code;
138-15 (6) [receipts to the department for furnishing
138-16 necessary and authorized special or technical services under
138-17 Chapter 741, Government Code as amended;]
138-18 [(7)] receipts to the department from the comptroller
138-19 [State Treasurer] involving warrants for which payment is barred
138-20 under Chapter 404, Government Code, as amended;
138-21 (7) [(8)] money received by the department from sales
138-22 or reimbursements authorized by the General Appropriations Act; and
138-23 (8) [(9)] money received by the department from the
138-24 sale of any property purchased with money from the fund or a
138-25 predecessor fund.
138-26 SECTION 11.06. Article 3.15, Insurance Code, is amended to
138-27 read as follows:
139-1 Art. 3.15. DEPOSIT OF SECURITIES IN AMOUNT OF CAPITAL STOCK.
139-2 (a) Any "domestic" company may, at its option, deposit with the
139-3 comptroller [Treasurer of this State], securities in which its
139-4 capital stock is invested, or securities equal in amount to its
139-5 capital stock, of the class in which the law of this State permits
139-6 such insurance companies to invest their capital stock, and may, at
139-7 its option, withdraw the same or any part thereof, first having
139-8 deposited with the comptroller [Treasurer], in lieu thereof, other
139-9 securities of like class and equal amount and value to those
139-10 withdrawn. Any such securities, before being so originally
139-11 deposited or substituted, shall be approved by the Board of
139-12 Insurance Commissioners. When any such deposit is made, the
139-13 comptroller [Treasurer] shall execute to the company making such
139-14 deposit a receipt therefor, giving such description of said stock
139-15 or securities as will identify the same, and stating that the same
139-16 are held on deposit as the capital stock investments of such
139-17 company; and such company shall have the right to advertise such
139-18 fact or print a copy of the comptroller's [Treasurer's] receipt on
139-19 the policies it may issue; and the proper officer or agent of each
139-20 insurance company making such deposit shall be permitted at all
139-21 reasonable times to examine such securities and to detach coupons
139-22 therefrom, and to collect interest thereon, under such reasonable
139-23 rules and regulations as may be prescribed by the comptroller
139-24 [Treasurer] and the Board of Insurance Commissioners. The deposit
139-25 herein provided for, when made by any company, shall thereafter be
139-26 maintained so long as said company shall have outstanding any
139-27 liability to its policyholders in this State. For the purpose of
140-1 state, county and municipal taxation, the situs of securities
140-2 deposited with the comptroller [treasurer] by domestic insurance
140-3 companies shall be in the city and county where the principal
140-4 business office of such company is fixed by its charter.
140-5 (b) When two or more companies merge or consolidate or enter
140-6 a total reinsurance contract by which the ceding company is
140-7 dissolved and its assets acquired and liabilities assumed by the
140-8 surviving company, and the companies have on deposit with the
140-9 comptroller [State Treasurer] two or more deposits made under
140-10 Article 3.15 of the Texas Insurance Code, as amended, all such
140-11 deposits, except the deposit of greatest amount and value may be
140-12 withdrawn by the new, surviving or reinsuring company upon proper
140-13 showing before the Commissioner that the company is the owner
140-14 thereof. The comptroller [Treasurer of the State of Texas] shall
140-15 release, transfer and deliver such deposit or deposits to the owner
140-16 as directed by order of the Commissioner.
140-17 SECTION 11.07. Article 3.23, Insurance Code, is amended to
140-18 read as follows:
140-19 Art. 3.23. ALIEN COMPANIES TO DEPOSIT. (a) No alien
140-20 insurance company shall transact business in this State, unless it
140-21 shall first deposit and keep deposited with the comptroller
140-22 [Treasurer of this State], for the benefit of the policyholders of
140-23 such company, citizens or residents of the United States, bonds or
140-24 securities of the United States or the State of Texas in an amount
140-25 at least equal to the minimum capital required to be maintained by
140-26 a domestic stock insurer licensed to transact the same kind of
140-27 insurance, or at least equal to one-half the minimum free surplus
141-1 required to be maintained by a domestic mutual insurer licensed to
141-2 transact the same kind of insurance.
141-3 (b) Upon approval of the commissioner in accordance with
141-4 Article 3.27-1 of this subchapter, a licensed alien insurer may be
141-5 permitted to deposit assets with a trustee or trustees for the
141-6 security of its policyholders in the United States in lieu of
141-7 making the deposit with the comptroller [Treasurer of this State]
141-8 so long as such assets are composed of securities or bonds of the
141-9 United States or this State and are maintained in accordance with
141-10 provisions of Article 3.27-1 of this code.
141-11 SECTION 11.08. Article 3.25, Insurance Code, is amended to
141-12 read as follows:
141-13 Art. 3.25. LAW DEEMED ACCEPTED. Each life insurance company
141-14 not organized under the laws of this State, hereafter granted a
141-15 certificate of authority to transact business in this State, shall
141-16 be deemed to have accepted such certificate and to transact such
141-17 business hereunder subject to the conditions and requirements that,
141-18 after it shall cease to transact new business in this State under a
141-19 certificate of authority, and so long as it shall continue to
141-20 collect renewal premiums from citizens of this State, it shall be
141-21 subject to the payment of the same occupation tax in proportion to
141-22 its gross premiums during any year, from citizens of this State, as
141-23 is or may be imposed by law on such companies transacting new
141-24 business within this State, under certificates of authority during
141-25 such year. The rate of such tax to be so paid by any such company
141-26 shall never exceed the rate imposed by law upon insurance companies
141-27 transacting business in this State. Each such company shall make
142-1 the same reports of its gross premium receipts for each such year
142-2 and within the same period as is or may be required of such
142-3 companies holding certificates of authority and shall at all times
142-4 be subject to examination by the Board of Insurance Commissioners
142-5 or some one selected by it for that purpose, in the same way and to
142-6 the same extent as is or may be required of companies transacting
142-7 new business under certificates of authority in this State, the
142-8 expenses of such examination to be paid by the company examined.
142-9 The respective duties of the Board in certifying to the amount of
142-10 such taxes and of the comptroller [State Treasurer] and Attorney
142-11 General in their collection shall be the same as are or may be
142-12 prescribed respecting taxes due from companies authorized to
142-13 transact new business within this State.
142-14 SECTION 11.09. Section 3(a)(5)(A), Texas Employees Uniform
142-15 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
142-16 Insurance Code), is amended to read as follows:
142-17 (A) "Employee" shall mean any appointive or
142-18 elective officer or employee in the service of the State of Texas,
142-19 including an employee of an institution of higher education:
142-20 (i) who is retired or retires and is an
142-21 annuitant under the jurisdiction of the Employees Retirement System
142-22 of Texas, pursuant to Subtitle B, D, or E;
142-23 (ii) who is retired or retires and is an
142-24 annuitant under the jurisdiction of the Teacher Retirement System
142-25 of Texas, pursuant to Subtitle C, Title 8, Government Code, or
142-26 pursuant to Chapter 803, Government Code, and whose last employment
142-27 with the state prior to retirement, including employment by a
143-1 public community/junior college, was as an employee of a department
143-2 whose employees are authorized to participate in the Texas
143-3 employees uniform group insurance program;
143-4 (iii) who is retired or retires and is an
143-5 annuitant under the optional retirement program established by
143-6 Chapter 830, Government Code, if the person's last state employment
143-7 before retirement, including employment by a public
143-8 community/junior college, was as an employee of a department whose
143-9 employees are authorized to participate in the Texas employees
143-10 uniform group insurance program, and if the person either:
143-11 (a) would have been
143-12 eligible to retire and receive a service retirement annuity from
143-13 the Teacher Retirement System of Texas or the Employees Retirement
143-14 System of Texas had the person not elected to participate in the
143-15 optional retirement program; or
143-16 (b) is disabled as
143-17 determined by the Employees Retirement System of Texas;
143-18 (iv) who receives compensation for
143-19 services rendered to the State of Texas, other than an employee of
143-20 an institution of higher education described by this subdivision,
143-21 on a warrant issued pursuant to a payroll certified by a department
143-22 or by an elected or duly appointed officer of this state;
143-23 (v) who receives payment for the
143-24 performance of personal services on a warrant issued pursuant to a
143-25 payroll certified by a department and drawn by the comptroller
143-26 [State Comptroller of Public Accounts] upon the State Treasury
143-27 [Treasurer] against appropriations made by the Texas Legislature
144-1 from any state funds or against any trust funds held by the
144-2 comptroller [State Treasurer] or who is paid from funds of an
144-3 official budget of a state department, rather than from funds of
144-4 the General Appropriations Act;
144-5 (vi) who is appointed, subject to
144-6 confirmation of the senate, as a member of a board or commission
144-7 with administrative responsibility over a statutory agency having
144-8 statewide jurisdiction whose employees are covered by this Act;
144-9 (vii) who is a member of the governing
144-10 body of an institution of higher education, as that term is defined
144-11 by this Act;
144-12 (viii) who is a member of the State Board
144-13 of Education;
144-14 (ix) who receives compensation for
144-15 services rendered to an institution of higher education on a
144-16 warrant or check issued pursuant to a payroll certified by an
144-17 institution of higher education or by an elected or duly appointed
144-18 officer of this state, and who is eligible for participation in the
144-19 Teacher Retirement System of Texas; or
144-20 (x) who receives compensation for services
144-21 rendered to an institution of higher education as provided by this
144-22 subdivision but is not permitted to be a member of the Teacher
144-23 Retirement System of Texas because the person is solely employed by
144-24 an institution of higher education that as a condition of
144-25 employment requires the person to be enrolled as a student in an
144-26 institution of higher education in graduate-level courses and who
144-27 is employed by the institution at least 20 hours a week.
145-1 SECTION 11.10. Section 18(a), Texas Employees Uniform Group
145-2 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
145-3 Code), is amended to read as follows:
145-4 (a) The group benefits advisory committee is composed of 26
145-5 [27] voting members as provided by this section. The office of the
145-6 attorney general, [the office of the state treasurer,] the office
145-7 of the comptroller, the Railroad Commission of Texas, the General
145-8 Land Office, and the Department of Agriculture are entitled to be
145-9 represented by one member each on the committee, who may be
145-10 appointed by the governing body of the state agency or elected by
145-11 and from the employees of the agency, as determined by rule by the
145-12 governing body of the agency. One employee shall be elected from
145-13 each of the remaining eight largest state agencies that are
145-14 governed by appointed officers by and from the employees of those
145-15 agencies. One nonvoting member shall be the executive director of
145-16 the Employees Retirement System of Texas. One member shall be an
145-17 expert in employee benefit issues from the private sector,
145-18 appointed by the governor. One member shall be an expert in
145-19 employee benefits issues from the private sector, appointed by the
145-20 lieutenant governor. One member shall be a retired state employee
145-21 appointed by the trustee. One member shall be a state employee of
145-22 a state agency other than one of the eight largest state agencies,
145-23 appointed by the trustee. Not more than one employee from a
145-24 particular state agency may serve on the committee. Each of the
145-25 seven largest institutions of higher education, as determined by
145-26 the number of employees on the payroll of an institution, shall
145-27 elect one member of the committee from among persons who have each
146-1 been nominated by a petition signed by at least 300 employees. Two
146-2 members shall be employees of institutions of higher education,
146-3 other than the seven largest institutions of higher education, who
146-4 are appointed by the Texas Higher Education Coordinating Board, but
146-5 not more than one employee shall be from any one institution. The
146-6 members shall elect a presiding officer from their membership to
146-7 serve a one-year term.
146-8 SECTION 11.11. Subsection (a), Section 15, Texas Public
146-9 School Employees Group Insurance Act (Article 3.50-4, Vernon's
146-10 Texas Insurance Code), is amended to read as follows:
146-11 (a) The school employees group insurance fund is created.
146-12 The comptroller [State Treasurer] is the custodian of the fund, and
146-13 the trustee shall administer the fund. All contributions from
146-14 active employees, retirees, and the state, contributions for
146-15 optional coverages, investment income, appropriations for
146-16 implementation of this program, and other money required or
146-17 authorized to be paid into the fund shall be paid into the fund.
146-18 From the fund shall be paid, without state fiscal year limitation,
146-19 the appropriate premiums to the carrier or carriers providing group
146-20 coverage under the plan or plans under this article, claims for
146-21 benefits under the group coverage, and the amounts expended by the
146-22 trustee for administration of the program. The appropriate portion
146-23 of the contributions to the fund to provide for incurred but
146-24 unreported claim reserves and contingency reserves, as determined
146-25 by the trustee, shall be retained in the fund.
146-26 SECTION 11.12. Section 16A(h), Texas Public School Employees
146-27 Group Insurance Act (Article 3.50-4, Vernon's Texas Insurance
147-1 Code), is amended to read as follows:
147-2 (h) An employer who fails to comply with this section may
147-3 not, after the failure, apply for or spend any money from a federal
147-4 or private grant. The trustee shall report alleged noncompliance
147-5 to the attorney general, [the state treasurer,] the Legislative
147-6 Budget Board, the comptroller of public accounts, and the governor.
147-7 The attorney general shall bring a writ of mandamus against the
147-8 employer to compel compliance with this section.
147-9 SECTION 11.13. Article 3.51-4, Insurance Code, is amended to
147-10 read as follows:
147-11 Art. 3.51-4. PAYMENT OF PREMIUMS OF GROUP LIFE AND HEALTH
147-12 INSURANCE POLICIES FOR RETIREES OF THE CENTRAL EDUCATION AGENCY,
147-13 THE TEXAS REHABILITATION COMMISSION, THE COORDINATING BOARD, TEXAS
147-14 COLLEGE AND UNIVERSITY SYSTEM, RETIRED EMPLOYEES OF THE TEXAS
147-15 DEPARTMENT OF MENTAL HEALTH AND MENTAL RETARDATION WHO ACCEPTED
147-16 RETIREMENT UNDER THE TEACHER RETIREMENT SYSTEM OF TEXAS, RETIRED
147-17 EMPLOYEES OF THE TEXAS YOUTH COMMISSION WHO ACCEPTED RETIREMENT
147-18 UNDER THE TEACHER RETIREMENT SYSTEM OF TEXAS, AND RETIRED EMPLOYEES
147-19 OF THE TEACHER RETIREMENT SYSTEM OF TEXAS WHO ACCEPTED RETIREMENT
147-20 UNDER THE TEACHER RETIREMENT SYSTEM OF TEXAS. The premium cost of
147-21 group life, health, accident, hospital, surgical and/or medical
147-22 expense insurance for retirees of the Central Education Agency, the
147-23 Texas Rehabilitation Commission, the Coordinating Board, Texas
147-24 College and University System, for retired employees of the Texas
147-25 Department of Mental Health and Mental Retardation, the Texas Youth
147-26 Commission, and the Teacher Retirement System of Texas who accepted
147-27 retirement under the Teacher Retirement System of Texas pursuant to
148-1 Chapter 3, Texas Education Code, shall be paid by the State of
148-2 Texas, subject to the following limitations and conditions:
148-3 (a) Payment shall be from the funds of the agency,
148-4 commission, board or department from which the officer or employee
148-5 retired, shall be limited to the same amount allowed active
148-6 employees under current group life and health insurance programs of
148-7 the agency, commission, board or department, and shall be made in
148-8 accordance with rules and regulations to be established no later
148-9 than September 1, 1973, by the Central Education Agency, the Texas
148-10 Rehabilitation Commission, and the Coordinating Board, Texas
148-11 College and University System for its respective retirees and no
148-12 later than September 1, 1975, by the Texas Department of Mental
148-13 Health and Mental Retardation, the Texas Youth Commission, and the
148-14 Teacher Retirement System of Texas for their retired employees who
148-15 accepted retirement under the Teacher Retirement System of Texas
148-16 pursuant to Chapter 3, Texas Education Code.
148-17 (b) The agency, commission, board and department shall
148-18 certify to the state comptroller of public accounts [and to the
148-19 state treasurer] each month the amount required each month to pay
148-20 the insurance premiums of the said retirees, and the State of Texas
148-21 shall pay the amount so ascertained each month, beginning September
148-22 1, 1973, to the Central Education Agency, the Texas Rehabilitation
148-23 Commission, and the Coordinating Board, Texas College and
148-24 University System, and beginning September 1, 1975, to the Texas
148-25 Department of Mental Health and Mental Retardation and the Texas
148-26 Youth Commission.
148-27 SECTION 11.14. Article 3.51-5(a), Insurance Code, is amended
149-1 to read as follows:
149-2 (a) The costs of group life and health insurance premiums to
149-3 persons retired under the Teacher Retirement Act, who at the time
149-4 of their retirement were employed by the Texas Central Education
149-5 Agency, the Texas Rehabilitation Commission, the Texas Department
149-6 of Mental Health and Mental Retardation, the Texas Youth
149-7 Commission, a Texas senior college or university, and the
149-8 Coordinating Board, Texas College and University System, shall be
149-9 fully paid from the funds of such agency, commission, institution,
149-10 or board under the following provisions and conditions: (1) The
149-11 coverage of this Act shall extend to all such retired persons
149-12 within the limits of eligibility under state contracts in force on
149-13 the effective date of this Act or as may be otherwise provided by
149-14 law; (2) such payment shall be in accordance with rules and
149-15 regulations established by such agency, commission, institution, or
149-16 board; (3) such agency, commission, institution, and board shall
149-17 certify to the Comptroller of Public Accounts [and the State
149-18 Treasurer] each month the amount so ascertained each month to such
149-19 agency, commission, institution, and board; (4) payments shall
149-20 begin on the first day of the month following the month in which
149-21 this Act takes effect and shall continue to be paid until otherwise
149-22 provided by law.
149-23 SECTION 11.15. Article 3.51-7(d), Insurance Code, is amended
149-24 to read as follows:
149-25 (d) Such payment shall be made in accordance with rules and
149-26 regulations established by the Central Education Agency, the
149-27 Teacher Retirement System of Texas, the Texas School for the Blind
150-1 and Visually Impaired, or for the Texas School for the Deaf, and
150-2 each shall certify to the Comptroller of Public Accounts of Texas
150-3 [and the State Treasurer] each month the amounts of all such
150-4 payments made in the preceding month.
150-5 SECTION 11.16. Sections 4-12 and 14-16, Article 4.08,
150-6 Insurance Code, are amended to read as follows:
150-7 Sec. 4. REPORTS. Every such life insurance company shall on
150-8 or before the first day of November of each year make a report in
150-9 writing to the comptroller [State Treasurer of Texas] of all
150-10 unclaimed funds, as hereinbefore defined, held and owing by it on
150-11 the 30th day of June next preceding, provided, however, such report
150-12 shall not be required to include amounts which have been paid to
150-13 another state or jurisdiction under any escheat or unclaimed funds
150-14 law thereof. Such report shall be signed and sworn to by an
150-15 officer of such company and shall set forth: (1) in alphabetical
150-16 order the full name of the insured or annuitant, the last known
150-17 address according to the company's records, and the policy or
150-18 contract number; (2) the amount appearing from the company's
150-19 records to be due on such policy or contract; (3) the date such
150-20 unclaimed funds became payable; (4) the name and last known address
150-21 of each beneficiary or other person who, according to the company's
150-22 records, may have an interest in such unclaimed funds; and (5) such
150-23 other identifying information as the comptroller [State Treasurer]
150-24 may require; provided, however, that individual amounts of less
150-25 than $50 may be reported in the aggregate without furnishing any of
150-26 the information required in Clauses (1), (2), (3), (4), and (5) of
150-27 this Section. Each life insurance company required to file a
151-1 report under this Section shall maintain a record of the name and
151-2 last known address, if any, of the insured, annuitant, or
151-3 beneficiary, the policy or contract number, and the amount
151-4 appearing from the company's records to be due on the policy or
151-5 contract for 10 years after the funds are reportable, whether or
151-6 not the amount was reported in the aggregate under this Section.
151-7 The comptroller [State Treasurer] may provide by rule for a shorter
151-8 holding period for these records.
151-9 Sec. 5. NOTICE; PUBLICATION. (a) In the calendar year
151-10 following the submission of the reports required under Section 4 of
151-11 this Article and the payment to the comptroller [State Treasurer]
151-12 under Section 6 of this Article of all unclaimed funds described in
151-13 the report, the comptroller [State Treasurer] may cause to be
151-14 published notices based on the information contained in such
151-15 reports. Except as provided by Subsection (d) of this Section,
151-16 such a notice shall be published once in a newspaper published or
151-17 having a general circulation in each county of this state in which
151-18 is located the last known address of a person appearing to be
151-19 entitled to such funds.
151-20 (b) Each such notice shall set forth in alphabetical order
151-21 the names of the insureds or annuitants under policies or contracts
151-22 and the city of last known address, if any. The notice shall also
151-23 state that such unclaimed funds have been delivered to the
151-24 comptroller [State Treasurer] on the preceding November 1 and that
151-25 those funds may be claimed from the comptroller [State Treasurer].
151-26 (c) It shall not be obligatory upon the comptroller [State
151-27 Treasurer] to publish any item of less than Fifty Dollars ($50) in
152-1 such notice, unless the comptroller [State Treasurer] deems such
152-2 publication to be in the public interest. Expenses incurred for
152-3 the publication of notice may be charged against the funds
152-4 delivered to the comptroller [State Treasurer] under Section 6 of
152-5 this Article.
152-6 (d) The comptroller [State Treasurer] may use a method of
152-7 publishing notice that is different from that prescribed by
152-8 Subsection (a) of this Section if the comptroller [State Treasurer]
152-9 determines that the different method would be as likely as the
152-10 prescribed method to give actual notice to the person required to
152-11 be named in the notice.
152-12 Sec. 6. PAYMENT TO COMPTROLLER [STATE TREASURER]. All
152-13 unclaimed funds contained in the report required to be filed by
152-14 Section 4 of this Article shall be delivered to the comptroller
152-15 [State Treasurer] on or before November 1 with the report.
152-16 Sec. 7. CUSTODY OF UNCLAIMED FUNDS IN STATE; INSURERS
152-17 INDEMNIFIED. Upon the payment of such unclaimed funds to the
152-18 comptroller [State Treasurer] the state shall assume, for the
152-19 benefit of those entitled to receive the same and for the safety of
152-20 the money so paid, the custody of such unclaimed funds, and the
152-21 life insurance company making such payment shall immediately and
152-22 thereafter be relieved of and held harmless by the state from any
152-23 and all liability for any claim or claims which exist at such time
152-24 with reference to such unclaimed funds or which thereafter may be
152-25 made or may come into existence on account of or in respect to any
152-26 such unclaimed funds.
152-27 Sec. 8. INDEMNIFICATION FOR CLAIMS. (a) Any life insurance
153-1 company which in good faith has paid monies to the comptroller
153-2 [State Treasurer] pursuant to this Article is relieved of all
153-3 liability for a claim that exists at the time of delivery, that
153-4 arises after delivery to the comptroller [State Treasurer], or that
153-5 is made with respect to the property, to the extent of the value of
153-6 the property delivered.
153-7 (b) If a life insurance company in good faith delivers
153-8 property to the comptroller [State Treasurer] and after delivery a
153-9 person claims the property from the life insurance company or
153-10 another state claims the property under its laws relating to
153-11 escheat or unclaimed property, the attorney general shall, on
153-12 written notice of the claim, defend the life insurance company
153-13 against the claim. The life insurance company shall be indemnified
153-14 from the unclaimed money fund established under Section 74.601,
153-15 Property Code, against any liability on the claim.
153-16 Sec. 9. FUND ADMINISTRATION. Upon receipt of any unclaimed
153-17 funds from such life insurance companies by the comptroller [State
153-18 Treasurer], the comptroller [State Treasurer] shall deposit those
153-19 funds in the unclaimed money fund established by Section 74.601,
153-20 Property Code. Money in the unclaimed money fund may be
153-21 appropriated by the legislature to enforce and administer this
153-22 Article.
153-23 Sec. 10. DETERMINATION AND REVIEW OF CLAIMS. Any person
153-24 claiming to be entitled to unclaimed funds paid to the comptroller
153-25 [State Treasurer] may file a claim at any time with such official.
153-26 The comptroller [State Treasurer] shall possess full and complete
153-27 authority to accept or reject any such claim. If he rejects such
154-1 claim or fails to act thereon within ninety days after receipt of
154-2 such claim, the claimant may institute suit therefor in a court of
154-3 competent jurisdiction naming the comptroller [State Treasurer] as
154-4 defendant.
154-5 Sec. 11. PAYMENT OF ALLOWED CLAIMS. Any claim which is
154-6 accepted by the comptroller [State Treasurer] or ordered to be paid
154-7 by him by a court of competent jurisdiction shall be paid out of
154-8 the special trust fund in his custody, or in the event such special
154-9 trust fund shall be insufficient, out of the general funds of the
154-10 state.
154-11 Sec. 12. RECORDS REQUIRED. The comptroller [State
154-12 Treasurer] shall keep in his office a public record of each payment
154-13 of unclaimed funds received by him from any life insurance company.
154-14 Except as to amounts reported in the aggregate, such record shall
154-15 show in alphabetical order the name and last known address of each
154-16 insured or annuitant, and of each beneficiary or other person who,
154-17 according to the company's reports, may have an interest in such
154-18 unclaimed funds, and with respect to each policy or contract, its
154-19 number, the name of the company, and the amount due.
154-20 Sec. 14. INTEREST, ATTORNEY'S FEES, AND PENALTIES. (a) A
154-21 person who fails to pay or deliver property within the time
154-22 prescribed by this Article shall pay to the comptroller [State
154-23 Treasurer] interest, at the judgment rate of interest as published
154-24 by the consumer credit commissioner in the Texas Register, on the
154-25 property or value of the property from the date the property should
154-26 have been paid or delivered until the date the property is actually
154-27 paid or delivered.
155-1 (b) If the comptroller [State Treasurer] presents a claim
155-2 for unclaimed property to a person who fails timely to pay or
155-3 deliver the property and the just amount of the unclaimed property
155-4 owed has not been tendered before the 31st day after the date the
155-5 claim is presented, the comptroller [State Treasurer] may, on
155-6 approval of a court of competent jurisdiction in Travis County,
155-7 recover reasonable attorney's fees from the person in addition to
155-8 unclaimed property and interest due.
155-9 (c) Any person who wilfully fails to file a report required
155-10 by this Article, or who violates any of the other terms and
155-11 provisions of this Article shall be punished by a fine not less
155-12 than Five Hundred Dollars ($500.00), nor more than One Thousand
155-13 Dollars ($1000.00), or by confinement for not more than six months
155-14 in the county jail, or both, and in addition, shall be subject to
155-15 civil penalties of not exceeding One Hundred Dollars ($100.00) for
155-16 each day of such wilful failure or refusal, said civil penalties to
155-17 be collected by suit in a District Court of Travis County, Texas,
155-18 by the Attorney General in the name of the State of Texas.
155-19 Sec. 15. RULES. The comptroller [State Treasurer] may adopt
155-20 rules necessary to carry out this Article.
155-21 Sec. 16. EXAMINATION OF RECORDS. The comptroller [State
155-22 Treasurer] may examine the records of a life insurance company to
155-23 determine if the life insurance company is complying with this
155-24 Article. The comptroller [State Treasurer] may not make public any
155-25 information obtained by an examination made under this Section.
155-26 SECTION 11.17. Section 1, Article 4.10, Insurance Code, is
155-27 amended to read as follows:
156-1 Sec. 1. PAYMENT OF TAX. Every insurance carrier, including
156-2 Lloyd's and reciprocal exchanges and any other organization or
156-3 concern receiving gross premiums from the business of fire, marine,
156-4 marine inland, accident, credit, livestock, fidelity, guaranty,
156-5 surety, casualty, workers' compensation, employers' liability, or
156-6 any other kind or character of insurance, except title insurance
156-7 and except as provided in Sections 2, 3, and 4 of this article,
156-8 shall pay to the comptroller [for transmittal to the state
156-9 treasurer] a tax upon such gross premium receipts as provided in
156-10 this article. Any such insurance carrier doing other kinds of
156-11 insurance business shall pay the tax levied upon its gross premiums
156-12 received from such other kinds of business as provided in Articles
156-13 4.03 and 4.11 of this code.
156-14 SECTION 11.18. Section 6(b), Article 4.10, Insurance Code,
156-15 is amended to read as follows:
156-16 (b) A semiannual prepayment of premium tax must be made on
156-17 March 1st and August 1st by all insurers with net tax liability for
156-18 the previous calendar year in excess of $1,000. The tax paid on
156-19 each date must equal one-half of the total premium tax paid for the
156-20 previous calendar year. Should no premium tax have been paid
156-21 during the previous calendar year, the semiannual payment shall
156-22 equal the tax which would be owed on the aggregate of the gross
156-23 premium receipts for the two previous calendar quarters at the
156-24 minimum tax rate specified by law. The comptroller is authorized
156-25 to [certify for] refund [to the State Treasurer] any overpayment of
156-26 premium taxes that results from the semiannual prepayment system
156-27 herein established.
157-1 SECTION 11.19. Section 1, Article 4.11, Insurance Code, is
157-2 amended to read as follows:
157-3 Sec. 1. Insurance Carriers Required to Pay Premium Tax.
157-4 Every insurance carrier receiving premiums from the business of
157-5 life insurance, accident insurance, health insurance, life and
157-6 accident insurance, life and health insurance, health and accident
157-7 insurance, or life, health, and accident insurance, including
157-8 variable life insurance, credit life insurance, and credit accident
157-9 and health insurance for profit or otherwise or for mutual benefit
157-10 or protection, in this state, shall pay to the comptroller [for
157-11 transmittal to the state treasurer] a tax upon its gross premiums
157-12 as provided in this article.
157-13 SECTION 11.20. Section 13(a), Article 4.11, Insurance Code,
157-14 is amended to read as follows:
157-15 (a) A semiannual prepayment of premium tax must be made on
157-16 March 1 and August 1 by all insurers with net tax liability for the
157-17 previous calendar year in excess of $1,000. The tax paid on each
157-18 date must equal one-half of the total premium tax paid for the
157-19 previous calendar year. Should no premium tax have been paid
157-20 during the previous calendar year, the semiannual payment shall
157-21 equal the tax which would be owed on the aggregate of the gross
157-22 premium receipts for the two previous calendar quarters at the
157-23 minimum tax rate specified by law. The comptroller is authorized
157-24 to [certify for] refund [to the state treasurer] any overpayment of
157-25 premium taxes that results from the semiannual prepayment system
157-26 herein established.
157-27 SECTION 11.21. Sections 1 and 2, Article 4.11A, Insurance
158-1 Code, are amended to read as follows:
158-2 Sec. 1. TAX PAYMENT REQUIREMENT. Each insurance carrier
158-3 receiving any form of administrative or service fee, consideration,
158-4 payment, premium, fund, reimbursement, or compensation for
158-5 performing or providing any service, function, or duty, or acting
158-6 in any administrative, clerical, management, advisory, or technical
158-7 capacity, or providing any claims or expense review, service,
158-8 administration, management, payment, indemnification, or
158-9 reimbursement, under an administrative service contract to be
158-10 performed in this state, or on behalf of persons in this state, or
158-11 for risks located in this state, and relating to any
158-12 employer-employee, multiple employer-employee, self-insurance
158-13 group, member, or other medical, accident, sickness, injury,
158-14 indemnity, death, or health benefit plan, including but not limited
158-15 to any medical, surgical, orthopedic, chiropractic, physical
158-16 therapy, speech pathology, audiology, mental health, dental,
158-17 hospital, workers' compensation, optometric, or health maintenance
158-18 organization plan or program, but excluding any portion of such
158-19 plan for which premiums for insurance are received by the carrier
158-20 and are otherwise subject to taxation by this state under Article
158-21 1.14-1, 1.14-2, 4.10, or 4.11, Insurance Code, or Section 33, Texas
158-22 Health Maintenance Organization Act (Article 20A.33, Vernon's Texas
158-23 Insurance Code), shall pay to the State Board of Insurance as
158-24 provided by this article for transmittal to the comptroller [state
158-25 treasurer] an annual tax on the gross amount of administrative or
158-26 service fees received by the carrier. This section does not apply
158-27 to a person to the extent he receives an administrative or service
159-1 fee, consideration, payment, premium, fund, reimbursement, or
159-2 compensation, as provided by this section, from a unit or units of
159-3 local government, or from units of local government that have
159-4 organized under Chapter 791, Government Code, or Chapter 119, Local
159-5 Government Code [The Interlocal Cooperation Act (Article 4413(32c),
159-6 Vernon's Texas Civil Statutes) or Article 4413(32i), Revised
159-7 Statutes], to provide group workers' compensation, health,
159-8 accident, dental, disability, and life insurance solely to local
159-9 government employees. This section does not apply to local mutual
159-10 aid associations or fraternal benefit societies or associations.
159-11 Sec. 2. OTHER TAX PAYMENT REQUIREMENT. Each person, except
159-12 an insurance carrier subject to Section 1 of this article,
159-13 receiving any form of administrative or service fee, consideration,
159-14 payment, premium, fund, reimbursement, or compensation for
159-15 performing or providing any service, function, or duty, or acting
159-16 in any administrative, clerical, management, advisory, or technical
159-17 capacity, or providing any claims or expense review, service,
159-18 administration, management, payment, indemnification, or
159-19 reimbursement, under an administrative service contract to be
159-20 performed in this state, or on behalf of persons in this state, or
159-21 for risks located in this state, and relating to any
159-22 employer-employee, multiple employer-employee, self-insurance
159-23 group, member, or other medical, accident, sickness, injury,
159-24 indemnity, death, or health benefit plan, including but not limited
159-25 to any medical, surgical, orthopedic, chiropractic, physical
159-26 therapy, speech pathology, audiology, mental health, dental,
159-27 hospital, workers' compensation, optometric, or health maintenance
160-1 organization plan or program, but excluding any portion of such
160-2 plan for which premiums for insurance are received by an insurance
160-3 carrier and are otherwise subject to taxation by this state under
160-4 Article 1.14-1, 1.14-2, 4.10, or 4.11, Insurance Code, or Section
160-5 33, Texas Health Maintenance Organization Act (Article 20A.33,
160-6 Vernon's Texas Insurance Code), shall pay to the State Board of
160-7 Insurance as provided by this article for transmittal to the
160-8 comptroller [state treasurer] an annual tax on the gross amount of
160-9 administrative or service fees received by the person. This
160-10 section does not apply to a person to the extent he receives an
160-11 administrative or service fee, consideration, payment, premium,
160-12 fund, reimbursement, or compensation, as provided by this section,
160-13 from a unit or units of local government, or from units of local
160-14 government that have organized under Chapter 791, Government Code,
160-15 or Chapter 119, Local Government Code [The Interlocal Cooperation
160-16 Act (Article 4413(32c), Vernon's Texas Civil Statutes) or Article
160-17 4413(32i), Revised Statutes], to provide group workers'
160-18 compensation, health, accident, dental, disability, and life
160-19 insurance solely to local government employees. This section does
160-20 not apply to local mutual aid associations or to fraternal benefit
160-21 societies or associations.
160-22 SECTION 11.22. Section 4(c), Article 4.11A, Insurance Code,
160-23 is amended to read as follows:
160-24 (c) Except to the extent preempted by federal law, there is
160-25 imposed on each plan of the type described in Section 1 or 2 of
160-26 this article an annual tax equal to 2.5 percent of the gross amount
160-27 of administrative or service fees and that plan shall pay the tax
161-1 to the State Board of Insurance for transmittal to the comptroller
161-2 [state treasurer]. The tax provided by this subsection is imposed
161-3 and is owed only to the extent a tax is not paid under Subsection
161-4 (a) of this section.
161-5 SECTION 11.23. Sections 7, 8, and 10, Article 4.11A,
161-6 Insurance Code, are amended to read as follows:
161-7 Sec. 7. CERTIFICATION OF TAXES PAID. After receipt by the
161-8 commissioner of insurance of each tax return and tax payments, the
161-9 commissioner shall certify to the comptroller [state treasurer] the
161-10 amount of taxes paid by each insurance carrier or other person.
161-11 The commissioner's certification shall be authorization for the
161-12 comptroller [state treasurer] to transfer those certified amounts
161-13 from the insurance suspense account to the general revenue fund
161-14 unless there is a lawful reason for maintaining the payment in the
161-15 insurance suspense account.
161-16 Sec. 8. SUPPLEMENTAL CERTIFICATION OF TAXES DUE; SUSPENSION
161-17 OF TIME PERIOD; SUIT BY COMMISSIONER. (a) Except as otherwise
161-18 provided by this article, the amount of any tax imposed by this
161-19 article if determined on examination of any carrier or other person
161-20 liable for that tax, or if determined by any other manner, shall be
161-21 filed by the commissioner of insurance with the comptroller [state
161-22 treasurer] by supplemental certificate showing the amount of any
161-23 taxes due by that carrier or other person within four years after
161-24 the return was filed, whether or not the return was filed on or
161-25 after the date due.
161-26 (b) When an administrative review or a judicial proceeding
161-27 is pending in a court of competent jurisdiction prior to the
162-1 expiration of the time presented in Subsection (a) of this section,
162-2 the time period prescribed by Subsection (a) of this section shall
162-3 be suspended with respect to the amount of tax in issue in that
162-4 proceeding until such matters are finally determined, whereupon the
162-5 running of that period of time shall resume until finally expired.
162-6 (c) In the case of failure to file a return or pay the taxes
162-7 due, the commissioner of insurance may notify the comptroller
162-8 [state treasurer] of the failure and the amount of taxes due, and
162-9 the commissioner of insurance may proceed in a court of competent
162-10 jurisdiction for collection of the tax at any time.
162-11 Sec. 10. QUARTERLY PREPAYMENT OF TAXES. A quarterly
162-12 prepayment of the tax must be made on March 1, May 15, August 15,
162-13 and November 15 by all carriers or other persons with net tax
162-14 liability for the previous calendar year in excess of $1,000. The
162-15 tax paid on each date must equal one-fourth of the total tax paid
162-16 for the previous calendar year. Should no tax have been paid
162-17 during the previous calendar year, the quarterly payment shall
162-18 equal the tax which would be owed on the gross amount of
162-19 administrative or service fees received during the previous
162-20 calendar quarter ending March 31, June 30, September 30, or
162-21 December 31 at the tax rate specified by law. The State Board of
162-22 Insurance is authorized to certify for refund to the comptroller
162-23 [state treasurer] any overpayment of taxes that results from the
162-24 quarterly prepayment system herein established.
162-25 SECTION 11.24. Article 5.51, Insurance Code, is amended to
162-26 read as follows:
162-27 Art. 5.51. COMPENSATION OF BOARD. The necessary
163-1 compensation of experts, clerical force, and other persons employed
163-2 by said Board, and all necessary traveling expenses, and such other
163-3 expenses as may be necessary, incurred in carrying out the
163-4 provisions of this subchapter, shall be paid by warrants drawn by
163-5 the Comptroller [upon the State Treasurer] upon the order of said
163-6 Board. The total amount of all salaries and said other expenses
163-7 shall not exceed the sum produced by the assessments on the gross
163-8 premiums of all fire insurance companies doing business in this
163-9 State.
163-10 SECTION 11.25. Article 5.67, Insurance Code, is amended to
163-11 read as follows:
163-12 Art. 5.67. ADDITIONAL COMPENSATION. The necessary
163-13 compensation of experts, the clerical force and other persons
163-14 employed by the Board to carry out the purposes of this subchapter,
163-15 and all necessary traveling expenses and such other expenses as may
163-16 be necessarily incurred in carrying out such provisions shall be
163-17 paid by warrants drawn by the Comptroller [upon the State
163-18 Treasurer] upon the order of said Board. The total amount of all
163-19 salaries and said other expenses shall not exceed the sum assessed
163-20 and collected from companies and associations writing workmen's
163-21 compensation insurance in this State.
163-22 SECTION 11.26. Section 2.07(b), Article 5.76-2, Insurance
163-23 Code, is amended to read as follows:
163-24 (b) The facility shall invest its funds only in investments
163-25 authorized by law for the investment of state funds as provided in
163-26 Chapter 404, Government Code. The governing committee shall
163-27 develop an investment policy and submit the policy to the
164-1 comptroller [state treasurer] for review and approval.
164-2 SECTION 11.27. Section 13(d), Article 5.76-3, Insurance
164-3 Code, is amended to read as follows:
164-4 (d) Money in the fund shall be invested, subject to a policy
164-5 approved by the comptroller [state treasurer], in the types of
164-6 investments authorized by law for an insurer authorized to write
164-7 workers' compensation insurance coverage in this state.
164-8 SECTION 11.28. Article 7.02, Insurance Code, is amended to
164-9 read as follows:
164-10 Art. 7.02. WITHDRAWAL OF UNNECESSARY DEPOSITS. When two or
164-11 more companies authorized to write fidelity, guaranty and surety
164-12 insurance in the State of Texas merge or consolidate, and, incident
164-13 to such merger or consolidation, enter into a total reinsurance
164-14 contract by which the merged or ceding company is dissolved, and
164-15 its assets acquired and liabilities assumed by the new or surviving
164-16 company, the Commissioner of Insurance, upon finding that the
164-17 contracting companies have on deposit with the comptroller [State
164-18 Treasurer] two or more deposits made for the same or similar
164-19 purposes under either former Article 7.03 (repealed by Acts 1957,
164-20 55th Legislature, Regular Session, Chapter 388, p. 1162) or Article
164-21 8.05 of the Insurance Code of Texas, shall authorize the
164-22 comptroller [State Treasurer] to retain for a single purpose only
164-23 the deposit of greater or greatest amount and value and to permit
164-24 the new or surviving reinsuring company, upon proper showing that
164-25 there is such duplication of deposits and that the new or surviving
164-26 company is the owner thereof, to withdraw any or all duplicate or
164-27 excessive deposits.
165-1 SECTION 11.29. Article 8.05, Insurance Code, is amended to
165-2 read as follows:
165-3 Art. 8.05. CAPITAL AND DEPOSITS. Only companies organized
165-4 and doing business under the provisions of this Chapter shall be
165-5 subject to its provisions. Such companies shall have not less than
165-6 the minimum capital and the minimum surplus applicable to casualty,
165-7 fidelity, guaranty, surety and trust companies as set out in
165-8 Article 2.02 of this Code. Such a company shall be authorized to
165-9 transact all and every kind of insurance specified in the first
165-10 Article of this Chapter. At the time of incorporation all of said
165-11 capital and surplus shall be in cash. The capital and minimum
165-12 surplus required of said company as provided in Article 2.02 of
165-13 this Code shall, following incorporation and the issuance by the
165-14 Board to said company of a certificate authorizing it to do
165-15 business, be invested as provided in Article 2.08 of this Code.
165-16 All other funds of said corporation in excess of its capital and
165-17 minimum surplus shall be invested by such company as provided in
165-18 Article 2.10 and in Article 6.08 of this Code. Upon the granting
165-19 of the charter to said corporation in the mode and manner provided
165-20 in Article 2.01 and Article 2.02 of this Code, and upon the deposit
165-21 of the sum of $50,000.00 of securities of the kind described in
165-22 Article 2.10 of this Code or in cash with the comptroller [State
165-23 Treasurer], the Board shall issue to said company a certificate
165-24 authorizing it to do business.
165-25 No part of the capital or surplus paid in shall be loaned to
165-26 any officer of said company.
165-27 In the event any such company shall be required by the law of
166-1 any other State, country or province as a requirement prior to
166-2 doing an insurance business therein to deposit with the duly
166-3 appointed officer of such other State, country or province, or with
166-4 the comptroller [State Treasurer of this State], any securities or
166-5 cash in excess of the said deposit of $50,000.00 hereinbefore
166-6 mentioned, such company, at its discretion, may deposit with the
166-7 comptroller [State Treasurer] securities of the character
166-8 authorized by law, or cash sufficient to enable it to meet such
166-9 requirements. The comptroller [State Treasurer] is hereby
166-10 authorized and directed to receive such deposit and to hold it
166-11 exclusively for the protection of policyholders of the company.
166-12 Any deposit so made to meet the requirements of any other State,
166-13 country or province shall not be withdrawn by the company except
166-14 upon filing with the Board evidence satisfactory to it that the
166-15 company has withdrawn from business, and has no unsecured
166-16 liabilities outstanding in any such other State, country or
166-17 province by which such additional deposit was required, and upon
166-18 the filing of such evidence the company may withdraw such
166-19 additional deposit at any time.
166-20 SECTION 11.30. Article 8.12, Insurance Code, is amended to
166-21 read as follows:
166-22 Art. 8.12. CHANGE OF SECURITIES. Such companies shall have
166-23 the right at any time to change their securities on deposit with
166-24 the comptroller [State Treasurer] by substituting for those
166-25 withdrawn a like amount in other securities of the character
166-26 provided for in this law.
166-27 SECTION 11.31. Article 8.15, Insurance Code, is amended to
167-1 read as follows:
167-2 Art. 8.15. INTEREST ON DEPOSITS. The comptroller [State
167-3 Treasurer] shall permit companies having securities on deposit with
167-4 him under the provisions of this law to collect the interest as the
167-5 same may become due, and shall deliver to such companies,
167-6 respectively, the coupons or other evidences of interest pertaining
167-7 to such deposits. Upon failure of any company to deposit
167-8 additional security as called for by the Board, or pending any
167-9 proceedings to close up or enjoin it, the comptroller [State
167-10 Treasurer] shall collect the interest as it becomes due and hold
167-11 the same as additional security in his hands belonging to such
167-12 company.
167-13 SECTION 11.32. Articles 8.24(c) and (d), Insurance Code, are
167-14 amended to read as follows:
167-15 (c) Such carrier shall deposit with the comptroller
167-16 [Treasurer of the State of Texas] at least Twenty-five Thousand
167-17 ($25,000.00) Dollars in lawful money of the United States or in
167-18 securities eligible for other casualty insurers licensed in Texas
167-19 and approved by such department, which deposit shall be liable for
167-20 all lawful claims and final judgments against such insurance
167-21 carrier, including taxes due the State of Texas, and policy claims
167-22 and other debts and obligations incurred in the course of
167-23 operations hereunder as provided herein, and such deposit shall be
167-24 kept replenished from time to time with like cash or approved
167-25 securities to maintain a minimum total deposit of Twenty-five
167-26 Thousand ($25,000.00) Dollars. Such deposit or the unencumbered
167-27 balance thereof shall be returned to such carrier with approval of
168-1 such department upon withdrawing from the business authorized
168-2 hereby and upon a showing to such department that all of its
168-3 policies written in Texas hereunder have expired or have been
168-4 cancelled and that all of its claims and obligations upon policies
168-5 written in this State which would constitute lawful charges against
168-6 such deposits have been satisfied.
168-7 (d) The comptroller [State Treasurer], upon the approval of
168-8 the department, shall pay from the deposit required herein any
168-9 unsatisfied final judgment obtained against such carrier in any
168-10 court of competent jurisdiction in Texas based upon such
168-11 substituted service as authorized by Article 1.36 of this code.
168-12 SECTION 11.33. Section 6A, Texas Title Insurance Guaranty
168-13 Act (Article 9.48, Insurance Code), is amended to read as follows:
168-14 Sec. 6A. Deposit of assessments. All assessments and fees
168-15 collected by the association may be deposited into the Texas
168-16 Treasury Safekeeping Trust Company in accordance with procedures
168-17 established by the comptroller [state treasurer]. The funds
168-18 deposited shall be accounted for separately from all other funds by
168-19 the comptroller [state treasurer] to the association.
168-20 SECTION 11.34. Section 9(b), Texas Title Insurance Guaranty
168-21 Act (Article 9.48, Insurance Code), is amended to read as follows:
168-22 (b) Should the association at any time determine that money
168-23 exists in the administrative account or the title account in excess
168-24 of the amount reasonably necessary for efficient future operation
168-25 under the terms of this article, it shall cause the excess money to
168-26 be returned pro rata to the holders of any participation receipts
168-27 on which there is a balance outstanding after deducting any credits
169-1 taken against premium taxes as authorized by Section 15 of this
169-2 article. The amount deducted for those credits shall be deposited
169-3 with the comptroller [state treasurer] for credit to the general
169-4 fund of this state. Any excess money remaining after the
169-5 distribution shall be retained by the association in the guaranty
169-6 fee account and held pursuant to this article.
169-7 SECTION 11.35. Section 1, Article 9.59, Insurance Code, is
169-8 amended to read as follows:
169-9 Sec. 1. Payment of tax. Each title insurance company
169-10 receiving premiums from the business of title insurance shall pay
169-11 to the comptroller [for transmittal to the state treasurer] a tax
169-12 on those premiums as provided in this article.
169-13 SECTION 11.36. Section 3(b), Article 9.59, Insurance Code,
169-14 is amended to read as follows:
169-15 (b) A semiannual prepayment of premium tax must be made on
169-16 March 1 and August 1 by all insurers with net tax liability for the
169-17 previous calendar year of more than $1,000. The tax paid on each
169-18 date must equal one-half of the total premium tax paid for the
169-19 previous calendar year. If no premium tax has been paid during the
169-20 previous calendar year, the semiannual payment shall equal the tax
169-21 that would be owed on the aggregate of the gross premium receipts
169-22 for the two previous calendar quarters at the minimum tax rate
169-23 specified by law. The comptroller may [certify for] refund [to the
169-24 state treasurer] any overpayment of premium taxes that results from
169-25 the semiannual prepayment system established by this subsection.
169-26 SECTION 11.37. Article 14.10, Insurance Code, is amended to
169-27 read as follows:
170-1 Art. 14.10. DEPOSITS. Each association shall place with the
170-2 comptroller [State Treasurer] through the Board of Insurance
170-3 Commissioners a deposit equal to the largest risk assumed on any
170-4 one life or person, which may be in cash or in convertible
170-5 securities subject to approval by the Board. Such deposit shall be
170-6 liable for the payment of all final judgments against the
170-7 association, and subject to garnishment after final judgments
170-8 against the association. When such deposit becomes impounded or
170-9 depleted it shall at once be replenished by the association, and if
170-10 not replenished immediately on demand by the Board, the association
170-11 may be regarded as insolvent and dealt with as hereinafter
170-12 provided.
170-13 When any association shall desire to state in advertisements,
170-14 letters, literature or otherwise, that it has made a deposit with
170-15 the Board as required by law, it must also state in full the
170-16 purpose of the deposit, the conditions under which it is made, and
170-17 the exact amount and character thereof.
170-18 SECTION 11.38. Article 15.06, Insurance Code, is amended to
170-19 read as follows:
170-20 Art. 15.06. KINDS OF INSURANCE. Any company organized under
170-21 the provisions of this Chapter is empowered and authorized to write
170-22 any kinds of insurance, which may lawfully be written in Texas,
170-23 except life insurance. Any such company writing fidelity and
170-24 surety bonds shall keep on deposit with the comptroller [State
170-25 Treasurer] cash or securities as provided in Article 2.10 approved
170-26 by the Board equal in amount to that required of domestic stock
170-27 companies. Any such company shall be possessed of a surplus over
171-1 and above all of its liabilities equal to the minimum capital stock
171-2 and surplus required of a stock insurance company transacting the
171-3 same kinds of business. Mutual insurance companies operating under
171-4 the provisions of this Chapter shall be required to charge the
171-5 rates prescribed by the Board of Insurance Commissioners and be
171-6 subject to the same rates and reserve supervision that domestic
171-7 insurance companies are subject to by law.
171-8 SECTION 11.39. Section 4, Article 17.25, Insurance Code, is
171-9 amended to read as follows:
171-10 Sec. 4. DEPOSIT. Each such company shall place with the
171-11 comptroller [State Treasurer] through the Board of Insurance
171-12 Commissioners a deposit equal to the largest amount assumed on any
171-13 one risk, or upon a showing or re-insurance acceptable to the
171-14 Board, the largest amount retained on any one risk after
171-15 re-insurance, which deposit may be in cash or in convertible
171-16 securities subject to approval of the Board. Such deposit shall be
171-17 liable for the payment of all judgments against the company, and
171-18 subject to a garnishment after final judgment against the company.
171-19 When such deposit becomes impounded or depleted it shall at once be
171-20 replenished immediately on demand by the Board, or the company may
171-21 be regarded as insolvent.
171-22 When any company shall desire to state in advertisements,
171-23 letters, literature or otherwise, that it has made a deposit with
171-24 the Board as required by law, it must also state in full the
171-25 purpose of the deposit, the conditions under which it is made, and
171-26 the exact amount and character thereof.
171-27 SECTION 11.40. Article 19.06, Insurance Code, is amended to
172-1 read as follows:
172-2 Art. 19.06. FINANCIAL REQUIREMENTS. There shall be
172-3 maintained at all times a surplus over and above all liabilities
172-4 equal to the minimum capital stock and surplus required of a stock
172-5 insurance company transacting the same kinds of business.
172-6 There shall be maintained at all times such reserves as are
172-7 required, or which, by the laws of this State or by the lawful
172-8 rules and regulations of the Board of Insurance Commissioners,
172-9 hereafter may be required, to be maintained by stock insurance
172-10 companies transacting the same kind or kinds of insurance business.
172-11 The required assets of such exchanges shall be maintained as
172-12 to minimum surplus requirements as provided in Article 2.08 of this
172-13 Code, and as to other funds, as provided in Article 2.10 of this
172-14 Code.
172-15 If fidelity and surety bond insurance is exchanged in this
172-16 State by any reciprocal exchange, there shall be kept on deposit
172-17 with the comptroller [State Treasurer of Texas], money, bonds, or
172-18 other securities in an amount not less than $50,000.00. Such
172-19 securities as described in Article 2.10 of this Code shall be
172-20 approved by the Board of Insurance Commissioners, and this amount
172-21 shall be kept intact at all times. Any foreign exchange writing
172-22 fidelity and surety bonds in this State shall file with the Board
172-23 of Insurance Commissioners evidence, satisfactory to the Board of
172-24 Insurance Commissioners, that it has on deposit with the
172-25 comptroller [State Treasurer] or other proper officials of its home
172-26 state, or in escrow under his supervision and control in some
172-27 reliable bank or trust company, $100,000.00 or more, in money,
173-1 bonds or other securities as described in Article 2.10 of this Code
173-2 for the protection of its policyholders; provided further, that if
173-3 said bonds and securities herein referred to are not acceptable to
173-4 and approved by the Board of Insurance Commissioners of Texas, said
173-5 Board shall have the right and authority to deny the attorney in
173-6 fact a Certificate of Authority.
173-7 SECTION 11.41. Article 20.03, Insurance Code, is amended to
173-8 read as follows:
173-9 Art. 20.03. DEPOSIT. Each such corporation shall place with
173-10 the comptroller [State Treasurer] through the Board of Insurance
173-11 Commissioners a deposit equal to One Hundred ($100.00) Dollars for
173-12 each one thousand (1,000) of its members and fractional part of
173-13 such number, provided that the maximum deposit shall be Two
173-14 Thousand ($2,000.00) Dollars. The deposit shall be liable for the
173-15 payment of all judgments against the corporation and subject to
173-16 garnishment after final judgment against the corporation. When
173-17 such deposit becomes impounded or impaired, it shall at once be
173-18 replenished by the corporation; and if not replenished immediately
173-19 on demand by the Board, the corporation may be regarded as
173-20 insolvent and dealt with accordingly.
173-21 SECTION 11.42. Sections 20A.13(a), (b), (g), and (h), Texas
173-22 Health Maintenance Organization Act (Article 20A.13, Vernon's Texas
173-23 Insurance Code), are amended to read as follows:
173-24 (a) Unless otherwise provided by this section, each health
173-25 maintenance organization shall deposit with the comptroller [State
173-26 Treasurer] cash or securities, or any combination of these or other
173-27 guarantees that are acceptable to the State Board of Insurance, in
174-1 an amount as set forth in this section.
174-2 (b) For a health maintenance organization which has not
174-3 received a certificate of authority from the State Board of
174-4 Insurance prior to September 1, 1987:
174-5 (1) the amount of the initial deposit or other
174-6 guarantee shall be $100,000 for an organization offering basic
174-7 health care services and $50,000 for an organization offering a
174-8 single health care service plan;
174-9 (2) on or before March 15 of the year following the
174-10 year in which the health maintenance organization receives a
174-11 certificate of authority, it shall deposit with the comptroller
174-12 [State Treasurer] an amount equal to the difference between the
174-13 initial deposit and 100 percent of its estimated uncovered health
174-14 care expenses for the first 12 months of operation;
174-15 (3) on or before March 15 of each subsequent year, it
174-16 shall deposit the difference between its total uncovered health
174-17 care expenses based on its annual statement from the previous year
174-18 and the total amount previously deposited and not withdrawn from
174-19 the State Treasury; and
174-20 (4) in any year in which the amount determined in
174-21 accordance with Subdivision (3) of this subsection is zero or less
174-22 than zero, the State Board of Insurance may not require the health
174-23 maintenance organization to make any additional deposit under this
174-24 subsection.
174-25 (g) If one or more of the requirements is waived, any amount
174-26 previously deposited shall remain on deposit until released in
174-27 whole or in part by the comptroller [State Treasurer] upon order of
175-1 the State Board of Insurance pursuant to Subsection (f) of this
175-2 section.
175-3 (h) A health maintenance organization that has made a
175-4 deposit with the comptroller [State Treasurer] may, at its option,
175-5 withdraw the deposit or any part thereof, first having deposited
175-6 with the comptroller [State Treasurer], in lieu thereof, a deposit
175-7 of cash or securities of equal amount and value to that withdrawn.
175-8 Any securities shall be approved by the State Board of Insurance
175-9 before being substituted.
175-10 SECTION 11.43. Article 20A.18(f), Texas Health Maintenance
175-11 Organization Act (Article 20A.18, Vernon's Texas Insurance Code),
175-12 is amended to read as follows:
175-13 (f) Instead of a bond, the management contractor may deposit
175-14 with the comptroller [State Treasurer] cash or securities
175-15 acceptable to the State Board of Insurance. Such a deposit must be
175-16 maintained in the amount and subject to the same conditions as
175-17 required for a bond under this section.
175-18 SECTION 11.44. Article 20A.30(c), Texas Health Maintenance
175-19 Organization Act (Vernon's Texas Insurance Code), is amended to
175-20 read as follows:
175-21 (c) Instead of a bond, a health maintenance organization may
175-22 deposit cash with the comptroller [State Treasurer]. Such a
175-23 deposit must be maintained in the amount and subject to the same
175-24 conditions required for a bond under this section.
175-25 SECTION 11.45. Section 2(d), Article 21.07, Insurance Code,
175-26 is amended to read as follows:
175-27 (d) The Board shall issue a license to a corporation if the
176-1 Board finds:
176-2 (1) That the corporation is a Texas corporation
176-3 organized or existing under the Texas Business Corporation Act
176-4 having its principal place of business in the State of Texas and
176-5 having as one of its purposes the authority to act as an agent
176-6 covered by this Article;
176-7 (2) That every officer, director, and shareholder of
176-8 the corporation is individually licensed under the provisions of
176-9 this Article, or that every officer and director of the corporation
176-10 is individually licensed under this Article, that the corporation
176-11 is a wholly owned subsidiary of a parent corporation that is
176-12 licensed under this Article, and that every shareholder of the
176-13 parent corporation is individually licensed under this Article; and
176-14 (3) That such corporation will have the ability to pay
176-15 any sums up to $25,000 which it might become legally obligated to
176-16 pay on account of any claim made against it by any customer and
176-17 caused by any negligent act, error, or omission of the corporation
176-18 or any person for whose acts the corporation is legally liable in
176-19 the conduct of its business under this Article. The term
176-20 "customer" means any person, firm, or corporation to whom such
176-21 corporation sells or attempts to sell a policy of insurance, or
176-22 from whom such corporation accepts an application for insurance.
176-23 Such ability shall be proven in one of the following ways:
176-24 (A) an errors and omissions policy insuring such
176-25 corporation against errors and omissions in at least the sum of
176-26 $100,000 with no more than a $10,000 deductible feature issued by
176-27 an insurance company licensed to do business in the State of Texas
177-1 or, if a policy cannot be obtained from a company licensed to do
177-2 business in Texas, a policy issued by a company not licensed to do
177-3 business in Texas on filing an affidavit with the State Board of
177-4 Insurance stating the inability to obtain coverage and receiving
177-5 the Board's approval;
177-6 (B) a bond executed by such corporation as
177-7 principal and a surety company authorized to do business in this
177-8 State, as surety, in the principal sum of $25,000, payable to the
177-9 State Board of Insurance for the use and benefit of customers of
177-10 such corporation, conditioned that such corporation shall pay any
177-11 final judgment recovered against it by any customer; or
177-12 (C) a deposit of cash or securities of the class
177-13 authorized by Articles 2.08 and 2.10, Insurance Code, as amended,
177-14 having a fair market value of $25,000 with the comptroller [State
177-15 Treasurer]. The comptroller [State Treasurer] is directed to
177-16 accept and receive such deposit and hold it exclusively for the
177-17 protection of any customer of such corporation recovering a final
177-18 judgment against such corporation. Such deposit may be withdrawn
177-19 only upon filing with the Board evidence satisfactory to it that
177-20 the corporation has withdrawn from business and has no unsecured
177-21 liabilities outstanding, or that such corporation has provided for
177-22 the protection of its customers by furnishing an errors and
177-23 omissions policy or a bond as provided. Securities so deposited
177-24 may be exchanged from time to time for other qualified securities.
177-25 A binding commitment to issue such a policy or bond, or the
177-26 tender of such securities, shall be sufficient in connection with
177-27 any application for license.
178-1 Nothing contained herein shall be construed to permit any
178-2 unlicensed employee or agent of any corporation to perform any act
178-3 of an agent under this Article without obtaining a license.
178-4 If at any time, any corporation holding an agent's license
178-5 does not maintain the qualifications necessary to obtain a license,
178-6 the license of such corporation to act as an agent shall be
178-7 cancelled or denied in accordance with the provisions of Sections
178-8 10 and 11 of this Article; provided, however, that should any
178-9 person who is not a licensed agent under this Article acquire
178-10 shares in such a corporation by devise or descent, that person
178-11 shall have a period of 90 days from date of acquisition within
178-12 which to obtain a license or to dispose of the shares to a person
178-13 licensed under this Article.
178-14 Should such an unlicensed person acquire shares in a
178-15 corporation and not dispose of them within a period of 90 days to a
178-16 licensed agent, then they must be purchased by the corporation for
178-17 their book value, that is, the value of said shares of stock as
178-18 reflected by the regular books and records of said corporation, as
178-19 of the date of the acquisition of said shares by said unlicensed
178-20 person. Should the corporation fail or refuse to so purchase such
178-21 shares, its license shall be cancelled.
178-22 Any such corporation shall have the power to redeem the
178-23 shares of any shareholder, or the shares of a deceased shareholder,
178-24 upon such terms as may be agreed upon by the board of directors and
178-25 such shareholder or such shareholder's personal representative, or
178-26 at a price and upon such terms as may be provided in the articles
178-27 of incorporation, the bylaws, or an existing contract entered into
179-1 between the shareholders of the corporation.
179-2 Each corporation licensed as an agent under this Article
179-3 shall file, under oath, a list of the names and addresses of all of
179-4 its officers, directors, and shareholders with its application for
179-5 renewal license.
179-6 Each corporation shall notify the State Board of Insurance
179-7 upon any change in its officers, directors, or shareholders not
179-8 later than the 30th day after the date on which the change becomes
179-9 effective.
179-10 Except as provided by Subdivision (2) of this subsection, a
179-11 corporation may not own any interest in another corporation
179-12 licensed under this Article, and each owner of an interest in a
179-13 corporation licensed under this Article shall be a natural person
179-14 who holds a valid license issued under this Article.
179-15 SECTION 11.46. Section 4(e), Chapter 213, Acts of the 54th
179-16 Legislature, Regular Session, 1955 (Article 21.07-1, Vernon's Texas
179-17 Insurance Code), is amended to read as follows:
179-18 (e) The Commissioner shall issue a license to a corporation
179-19 if the Commissioner finds:
179-20 (1) That the corporation is a Texas corporation
179-21 organized or existing under the Texas Business Corporation Act or
179-22 the Texas Professional Corporation Act having its principal place
179-23 of business in the State of Texas and having as one of its purposes
179-24 the authority to act as agent under this Act;
179-25 (2) That every officer, director, and shareholder of
179-26 the corporation is individually licensed as an agent under the
179-27 provisions of this Act, or that every officer and director of the
180-1 corporation is individually licensed under this Act, that the
180-2 corporation is a wholly owned subsidiary of a parent corporation
180-3 that is licensed under this Act, and that every shareholder of the
180-4 parent corporation is individually licensed under this Act; and
180-5 (3) That such corporation will have the ability to pay
180-6 any sums up to $25,000 which it might become legally obligated to
180-7 pay on account of any claim made against it by any customer and
180-8 caused by any negligent act, error, or omission of the corporation
180-9 or any person for whose acts the corporation is legally liable in
180-10 the conduct of its business as under this Act. The term "customer"
180-11 as used herein shall mean any person, firm, or corporation to whom
180-12 such corporation sells or attempts to sell a policy of insurance or
180-13 from whom such corporation accepts an application for insurance.
180-14 Such ability shall be proven in one of the following ways:
180-15 (A) An errors and omissions policy insuring such
180-16 corporation against errors and omissions in at least the sum of
180-17 $100,000 with no more than a $10,000 deductible feature issued by
180-18 an insurance company licensed to do business in the State of Texas
180-19 or, if a policy cannot be obtained from a company licensed to do
180-20 business in Texas, a policy issued by a company not licensed to do
180-21 business in Texas on filing an affidavit with the State Board of
180-22 Insurance stating the inability to obtain coverage and receiving
180-23 the Board's approval; or
180-24 (B) A bond executed by such corporation as
180-25 principal and a surety company authorized to do business in this
180-26 State, as surety, in the principal sum of $25,000, payable to the
180-27 State Board of Insurance for the use and benefit of customers of
181-1 such corporation, conditioned that such corporation shall pay any
181-2 final judgment recovered against it by any customer; or
181-3 (C) A deposit of cash or securities of the class
181-4 authorized by Articles 2.08 and 2.10 of the Insurance Code, having
181-5 a fair market value of $25,000 with the comptroller [State
181-6 Treasurer]. The comptroller [State Treasurer] is hereby authorized
181-7 and directed to accept and receive such deposit and hold it
181-8 exclusively for the protection of any customer of such corporation
181-9 recovering a final judgment against such corporation. Such deposit
181-10 may be withdrawn only upon filing with the Commissioner
181-11 satisfactory evidence that the corporation has withdrawn from
181-12 business and has no unsecured liabilities outstanding, or that such
181-13 corporation has provided for the protection of its customers by
181-14 furnishing an errors and omissions policy or a bond as provided.
181-15 Securities so deposited may be exchanged from time to time for
181-16 other qualified securities.
181-17 A binding commitment to issue such a policy or bond, or the
181-18 tender of such securities, shall be sufficient in connection with
181-19 any application for license.
181-20 Nothing contained herein shall be construed to permit any
181-21 unlicensed employee or agent of any corporation to perform any act
181-22 of an agent under this Act without obtaining a license.
181-23 If at any time, any corporation holding a license under this
181-24 Act does not maintain the qualifications necessary to obtain a
181-25 license, the license of such corporation to act as an agent shall
181-26 be cancelled or denied in accordance with the provisions of
181-27 Sections 12 and 13 of this Act; provided, however, that should any
182-1 person who is not an agent licensed under this Act acquire shares
182-2 in such a corporation by devise or descent, they shall have a
182-3 period of 90 days from date of acquisition within which to obtain a
182-4 license as an agent or to dispose of the shares to an agent
182-5 licensed under this Act.
182-6 Should such an unlicensed person acquire shares in such a
182-7 corporation and not dispose of them within said period of 90 days
182-8 to a licensed agent, then they must be purchased by the corporation
182-9 for their book value, that is, the value of said shares of stock as
182-10 reflected by the regular books and records of said corporation as
182-11 of the date of the acquisition of said shares by said unlicensed
182-12 person. Should the corporation fail or refuse to so purchase such
182-13 shares, its license shall be cancelled.
182-14 Any such corporation shall have the power to redeem the
182-15 shares of any shareholder, or the shares of a deceased shareholder,
182-16 upon such terms as may be agreed upon by the board of directors and
182-17 such shareholder or such shareholder's personal representative, or
182-18 at such price and upon such terms as may be provided in the
182-19 articles of incorporation, the bylaws, or an existing contract
182-20 entered into between the shareholders of the corporation.
182-21 Each corporation licensed as an agent under this Act shall
182-22 file, under oath, a list of the names and addresses of all of its
182-23 officers, directors, and shareholders with its application for
182-24 renewal license.
182-25 Each corporation licensed as an agent under this Act shall
182-26 notify the State Board of Insurance upon any change in its
182-27 officers, directors, or shareholders not later than the 30th day
183-1 after the date on which the change became effective.
183-2 Except as provided by Subdivision (2) of this subsection, a
183-3 corporation may not own any interest in another corporation
183-4 licensed under this Act, and each owner of an interest in a
183-5 corporation licensed under this Act shall be a natural person who
183-6 holds a valid license issued under this Act.
183-7 No association or any legal entity of any nature, other than
183-8 an individual person, general partnership, or corporation, may be
183-9 licensed as a life insurance agent.
183-10 SECTION 11.47. Section 4C, Managing General Agents'
183-11 Licensing Act (Article 21.07-3, Vernon's Texas Insurance Code), is
183-12 amended to read as follows:
183-13 Sec. 4C. Security for liability. (a) Each person, firm, or
183-14 corporation licensed as a managing general agent under this Act
183-15 must have the ability to pay an amount up to $100,000 for which the
183-16 managing general agent may become legally obligated to pay on
183-17 account of any claim against the managing general agent by a
183-18 policyholder and caused by a negligent act, error, or omission of
183-19 the managing general agent or any person for whose acts the
183-20 managing general agent is legally liable in the conduct of its
183-21 business as a managing general agent. This ability to pay shall be
183-22 proved in one of the following ways:
183-23 (1) an errors and omissions policy insuring the
183-24 managing general agent against errors and omissions in at least the
183-25 sum of $100,000, with a deductible that is not greater than 10
183-26 percent of the face amount of the policy, issued by a company
183-27 licensed to do business in this state or issued by a surplus lines
184-1 insurer under Article 1.14-2 of this code, that is not affiliated
184-2 with or an affiliate of the managing general agent;
184-3 (2) a bond executed by the managing general agent as
184-4 principal and by a surety company authorized to do business in this
184-5 state, as surety, or surplus lines insurer eligible to do business
184-6 in this state in the principal sum of $100,000 payable to the board
184-7 for the use and benefit of policyholders of the managing general
184-8 agent, conditioned that the managing general agent will pay any
184-9 final judgment recovered against it by a policyholder; or
184-10 (3) a deposit with the comptroller [state treasurer]
184-11 of cash or securities of the class authorized by Articles 2.08 and
184-12 2.10 of this code that have a fair market value of $100,000.
184-13 (b) The comptroller [state treasurer] shall accept the
184-14 deposit under Subsection (a)(3) of this section and hold it
184-15 exclusively for the protection of any policyholder of the managing
184-16 general agent who recovers a final nonappealable judgment against
184-17 the managing general agent. The deposit may be withdrawn only on
184-18 filing with the board evidence satisfactory to the board that the
184-19 managing general agent has withdrawn from business and has no
184-20 unsecured liabilities outstanding, or that the managing general
184-21 agent has provided for the protection of its policyholders by
184-22 furnishing an errors and omissions policy or a bond as provided by
184-23 Subsection (a)(1) or (2) of this section. Securities that are
184-24 deposited under Subsection (a)(3) of this section may be exchanged
184-25 for other qualified securities. A binding commitment to issue a
184-26 policy or bond or the tender of the securities is sufficient in
184-27 connection with an application for license.
185-1 SECTION 11.48. Section 3(c), Article 21.14, Insurance Code,
185-2 is amended to read as follows:
185-3 (c) The Department shall issue a license to a corporation if
185-4 the Department finds:
185-5 (1) That the corporation is a Texas corporation
185-6 organized or existing under the Texas Business Corporation Act or
185-7 the Texas Professional Corporation Act having its principal place
185-8 of business in the State of Texas and having as one of its purposes
185-9 the authority to act as a local recording agent; and
185-10 (2) That every officer, director and shareholder of
185-11 the corporation is individually licensed as a local recording agent
185-12 under the provisions of this Insurance Code, except as may be
185-13 otherwise permitted by this Section or Section 3a of this article,
185-14 or that every officer and director of the corporation is
185-15 individually licensed as a local recording agent under this
185-16 Insurance Code, that the corporation is a wholly owned subsidiary
185-17 of a parent corporation that is licensed as a local recording agent
185-18 under this Insurance Code, and that every shareholder of the parent
185-19 corporation is individually licensed as a local recording agent
185-20 under this Insurance Code, and except as specifically provided by
185-21 this article, that no shareholder of the corporation is a corporate
185-22 entity; and
185-23 (3) That such corporation will have the ability to pay
185-24 any sums up to $25,000 which it might become legally obligated to
185-25 pay on account of any claim made against it by any customer and
185-26 caused by any negligent act, error or omission of the corporation
185-27 or any person for whose acts the corporation is legally liable in
186-1 the conduct of its business as a local recording agent. The term
186-2 "customer" as used herein shall mean any person, firm or
186-3 corporation to whom such corporation sells or attempts to sell a
186-4 policy of insurance, or from whom such corporation accepts an
186-5 application for insurance. Such ability shall be proven in one of
186-6 the following ways:
186-7 (A) An errors and omissions policy insuring such
186-8 corporation against errors and omissions, in at least the sum of
186-9 $100,000 with no more than a $10,000 deductible feature or the sum
186-10 of at least $300,000 with no more than a $25,000 deductible
186-11 feature, issued by an insurance company licensed to do business in
186-12 the State of Texas or, if a policy cannot be obtained from a
186-13 company licensed to do business in Texas, a policy issued by a
186-14 company not licensed to do business in Texas, on filing an
186-15 affidavit with the Texas Department of Insurance stating the
186-16 inability to obtain coverage and receiving the Department's
186-17 approval; or
186-18 (B) A bond executed by such corporation as
186-19 principal and a surety company authorized to do business in this
186-20 state, as surety, in the principal sum of $25,000, payable to the
186-21 Texas Department of Insurance for the use and benefit of customers
186-22 of such corporation, conditioned that such corporation shall pay
186-23 any final judgment recovered against it by any customer; or
186-24 (C) A deposit of cash or securities of the class
186-25 authorized by Articles 2.08 and 2.10 of this Code, having a fair
186-26 market value of $25,000 with the comptroller [State Treasurer].
186-27 The comptroller [State Treasurer] is hereby authorized and directed
187-1 to accept and receive such deposit and hold it exclusively for the
187-2 protection of any customer of such corporation recovering a final
187-3 judgment against such corporation. Such deposit may be withdrawn
187-4 only upon filing with the Department evidence satisfactory to it
187-5 that the corporation has withdrawn from business, and has no
187-6 unsecured liabilities outstanding, or that such corporation has
187-7 provided for the protection of its customers by furnishing an
187-8 errors and omissions policy or a bond as hereinbefore provided.
187-9 Securities so deposited may be exchanged from time to time for
187-10 other qualified securities.
187-11 A binding commitment to issue such a policy or bond, or the
187-12 tender of such securities, shall be sufficient in connection with
187-13 any application for license.
187-14 Nothing contained herein shall be construed to permit any
187-15 unlicensed employee or agent of any corporation to perform any act
187-16 of a local recording agent without obtaining a local recording
187-17 agent's license. The Department shall not require a corporation to
187-18 take the examination provided in Section 6 of this Article 21.14.
187-19 If at any [an] time, any corporation holding a local
187-20 recording agent's license does not maintain the qualifications
187-21 necessary to obtain a license, the license of such corporation to
187-22 act as a local recording agent shall be cancelled or denied in
187-23 accordance with the provisions of Sections 16, 17 and 18 of this
187-24 Article 21.14; provided, however, that should any person who is not
187-25 a licensed local recording agent acquire shares in such a
187-26 corporation by devise or descent, they shall have a period of 90
187-27 days from date of acquisition within which to obtain a license as a
188-1 local recording agent or to dispose of the shares to a licensed
188-2 local recording agent except as may be permitted by Section 3a of
188-3 this article.
188-4 Should such an unlicensed person, except as may be permitted
188-5 by Section 3a of this article, acquire shares in such a corporation
188-6 and not dispose of them within said period of 90 days to a licensed
188-7 local recording agent, then they must be purchased by the
188-8 corporation for their book value, that is, the value of said shares
188-9 of stock as reflected by the regular books and records of said
188-10 corporation, as of the date of the acquisition of said shares by
188-11 said unlicensed person. Should the corporation fail or refuse to
188-12 so purchase such shares, its license shall be cancelled.
188-13 Any such corporation shall have the power to redeem the
188-14 shares of any shareholder, or the shares of a deceased shareholder,
188-15 upon such terms as may be agreed upon by the Board of Directors and
188-16 such shareholder or his personal representative, or at such price
188-17 and upon such terms as may be provided in the Articles of
188-18 Incorporation, the Bylaws, or an existing contract entered into
188-19 between the shareholders of the corporation.
188-20 Each corporation licensed as a local recording agent shall
188-21 file, under oath, a list of the names and addresses of all of its
188-22 officers, directors and shareholders with its application for
188-23 renewal license.
188-24 Each corporation licensed as a local recording agent shall
188-25 notify the Texas Department of Insurance upon any change in its
188-26 officers, directors or shareholders not later than the 30th day
188-27 after the date on which the change became effective.
189-1 The term "firm" as it applies to local recording agents in
189-2 Sections 2, 12 and 16 of this Article 21.14 shall be construed to
189-3 include corporations.
189-4 SECTION 11.49. Section 2(h), Article 21.28, Insurance Code,
189-5 is amended to read as follows:
189-6 (h) Depositories. Except as provided by this subsection,
189-7 all money collected by the receiver shall be forthwith deposited
189-8 into the Texas Treasury Safekeeping Trust Company in accordance
189-9 with procedures established by the comptroller [state treasurer].
189-10 The receiver may deposit the money in any bank, banks, or savings
189-11 and loan association or associations in this State insured by a
189-12 federal agency that provides for deposit insurance if the receiver,
189-13 in the exercise of sound financial judgment, determines that it
189-14 would be advantageous to do so. The funds collected or realized
189-15 from the assets of each insurer for which the receiver has been
189-16 appointed shall be accounted for by the receiver separately from
189-17 all other funds. Whenever any account in a bank or savings and
189-18 loan association exceeds the maximum amount insured by the
189-19 appropriate federal agency, the receiver is hereby authorized and
189-20 directed to make such contracts and require such security as it may
189-21 deem proper for the safeguarding of such deposit without approval
189-22 of the court.
189-23 SECTION 11.50. Sections 8(g) and (h), Article 21.28,
189-24 Insurance Code, are amended to read as follows:
189-25 (g) Unclaimed Funds. Unclaimed dividends on approved
189-26 claims, unclaimed returned assessments, and all other unclaimed
189-27 funds subject to distribution to claimants, policyholders or other
190-1 persons, remaining in the receiver's hands after payment of the
190-2 final dividend shall be delivered to the Board at the time the
190-3 receivership is closed, or in the event a final dividend is paid
190-4 less than ninety (90) days prior to the closing of the
190-5 receivership, the receiver may continue the bank account or
190-6 accounts of such receivership from which such funds might be paid,
190-7 for a period of time not to exceed ninety (90) days from the date
190-8 of the closing of said receivership, before the same are so
190-9 delivered to the Board. Such funds shall be deposited by the Board
190-10 in trust in a special account to be maintained with the comptroller
190-11 [State Treasurer].
190-12 (h) Recovery by Owner. On receipt of satisfactory written
190-13 and verified proof of ownership within two (2) years from the date
190-14 such funds are so deposited with the comptroller [State Treasurer],
190-15 the Board shall certify such facts to the Comptroller [of Public
190-16 Accounts], who shall issue proper warrant therefor in favor of the
190-17 parties respectively entitled thereto, drawn on the State Treasury
190-18 [Treasurer].
190-19 SECTION 11.51. Section 8A, Article 21.28, Insurance Code, is
190-20 amended to read as follows:
190-21 Sec. 8A. Settlement of claims; abandoned funds; re-opening
190-22 of receiverships. Any and all assets other than cash remaining in
190-23 the receiver's hands after payment of the final dividend may be
190-24 conveyed, transferred or assigned to the commissioner to be handled
190-25 as a trust. The commissioner shall have authority to convey,
190-26 transfer, and assign any assets, including causes of action,
190-27 judgments, and claims, and to settle or release causes of action,
191-1 judgments, claims, and liens on such terms and for such amounts as
191-2 he deems for the best interest of such trust, whether such assets
191-3 have heretofore or may hereafter come into his hands. From
191-4 proceeds derived from any such assets the commissioner or the
191-5 special deputy receiver shall defray the costs incident to the
191-6 sale, settlement, release or other transaction whereby such
191-7 proceeds are obtained, and deliver the remainder to the Board to be
191-8 deposited by it in trust in a special account to be maintained with
191-9 the comptroller [State Treasurer] to be handled, disposed of and
191-10 used as follows:
191-11 An order directing disposition of such funds may be made by a
191-12 court of competent jurisdiction of Travis County, Texas, upon
191-13 application of the commissioner, after notice and hearing. Notice
191-14 shall be posted on the courthouse door of said court for at least
191-15 twenty (20) days before a hearing is had on the commissioner's
191-16 application, and notice shall be published at least once, and at
191-17 least ten (10) days prior to the date set for such hearing, in a
191-18 newspaper of general circulation in Travis County. Such notice
191-19 shall state the amount of the funds and the receivership from which
191-20 they were derived. It shall be addressed to all persons having an
191-21 interest, as claimant or otherwise, in the assets of the particular
191-22 receivership involved in the application, and shall state generally
191-23 that a hearing shall be had on the date specified for the purpose
191-24 of determining the disposition to be made of such funds, including
191-25 a declaration that such funds are abandoned and the property of the
191-26 State Board of Insurance.
191-27 If the court finds that funds derived from any receivership
192-1 are sufficient to justify re-opening of the receivership and
192-2 payment of a dividend, then such may be ordered, but otherwise, if
192-3 such funds are insufficient for that purpose, the court may declare
192-4 such funds abandoned and a certified copy of such judgment will be
192-5 authority for the comptroller [Comptroller of Public Accounts] to
192-6 issue a Warrant therefor to the State Board of Insurance. The
192-7 Board shall forthwith deposit such funds in accordance with the
192-8 provisions of Section 2(h) of this Article, except that funds
192-9 derived from one insurer need not be kept separate from funds
192-10 derived through any other insurer.
192-11 Such funds may be used as provided in Section 8(j) of this
192-12 Article.
192-13 SECTION 11.52. Section 8(j), Texas Property and Casualty
192-14 Insurance Guaranty Act (Article 21.28-C, Insurance Code), is
192-15 amended to read as follows:
192-16 (j) The board of directors may deposit all money collected
192-17 by the association into the Texas Treasury Safekeeping Trust
192-18 Company in accordance with procedures established by the
192-19 comptroller [state treasurer]. The funds deposited shall be
192-20 accounted for separately from all other funds by the comptroller
192-21 [state treasurer] to the association.
192-22 SECTION 11.53. Section 20(c), Texas Property and Casualty
192-23 Insurance Guaranty Act (Article 21.28-C, Insurance Code), is
192-24 amended to read as follows:
192-25 (c) If the association at any time determines that there
192-26 exist moneys in the account for any line of business in excess of
192-27 those reasonably necessary for efficient future operation under the
193-1 terms of this Act, it shall cause those excess moneys to be
193-2 returned pro rata to the holders of any participation receipts on
193-3 which there is a balance outstanding after deducting any credits
193-4 taken against premium taxes as authorized in Section 21 of this
193-5 Act, which receipts were issued for an assessment on the same line
193-6 of business as that for which the excess moneys are found to exist.
193-7 If after such a distribution the association finds that an excess
193-8 amount still exists in the fund, or if there are no such
193-9 participation receipts on which there is an outstanding balance, it
193-10 shall cause the excess amount to be deposited with the comptroller
193-11 [state treasurer] to the credit of the general revenue fund.
193-12 SECTION 11.54. Section 9(n), Life, Accident, Health, and
193-13 Hospital Service Insurance Guaranty Association Act (Article
193-14 21.28-D, Insurance Code), is amended to read as follows:
193-15 (n) All assessments collected by the association may be
193-16 deposited into the Texas Treasury Safekeeping Trust Company in
193-17 accordance with procedures established by the comptroller [state
193-18 treasurer]. The funds deposited shall be accounted for separately
193-19 from all other funds by the comptroller [state treasurer] to the
193-20 association.
193-21 SECTION 11.55. Section 13(c), Life, Accident, Health, and
193-22 Hospital Service Insurance Guaranty Association Act (Article
193-23 21.28-D, Insurance Code), is amended to read as follows:
193-24 (c) Any sums acquired by refund, pursuant to Section 9(j) of
193-25 this Act, from the association which have theretofore been written
193-26 off by contributing insurers and offset against premium taxes as
193-27 provided in Subsection (b) of this section, and are not then needed
194-1 for purposes of this Act, shall be paid by the association to the
194-2 commissioner and by him deposited with the comptroller [state
194-3 treasurer] for credit to the general fund of this state.
194-4 SECTION 11.56. Sections 7(a) and (b), Article 21.43,
194-5 Insurance Code, are amended to read as follows:
194-6 (a) No alien insurance corporation shall transact business
194-7 in this State, unless it shall first deposit and keep deposited
194-8 with the comptroller [Treasurer of this State], for the benefit of
194-9 the policyholders of such company, citizens, or residents of the
194-10 United States, bonds or securities of the United States or the
194-11 State of Texas in an amount at least equal to the minimum capital
194-12 required to be maintained by a domestic stock insurer licensed to
194-13 transact the same kind of insurance, or at least equal to one-half
194-14 the minimum free surplus required to be maintained by a domestic
194-15 mutual insurer licensed to transact the same kind of insurance.
194-16 (b) Upon approval of the commissioner in accordance with
194-17 Section 10 of this article, a licensed alien insurer may be
194-18 permitted to deposit assets with a trustee or trustees for the
194-19 security of its policyholders in the United States in lieu of
194-20 making the deposit with the comptroller [Treasurer of this State]
194-21 so long as such assets are composed of securities or bonds of the
194-22 United States or this State and are maintained in accordance with
194-23 provisions of Section 10 of this article.
194-24 SECTION 11.57. Section 8(i), Texas Catastrophe Property
194-25 Insurance Pool Act (Article 21.49, Insurance Code), is amended to
194-26 read as follows:
194-27 (i) The association may enter into a written agreement with
195-1 the Texas Department of Insurance under which the association
195-2 members relinquish their net equity pursuant to the written
195-3 agreement on an annual basis by making payments to a fund known as
195-4 the catastrophe reserve trust fund to be held by the Texas
195-5 Department of Insurance outside the state treasury to protect
195-6 policyholders of the association and to reduce the potential for
195-7 payments by members of the association giving rise to tax credits
195-8 in the event of loss or losses.
195-9 The catastrophe reserve trust fund shall be kept and
195-10 maintained by the Texas Department of Insurance pursuant to the
195-11 written agreement between the association, the Texas Department of
195-12 Insurance, [the state treasurer,] and the comptroller. Legal title
195-13 to money and investments in the fund is in the Texas Department of
195-14 Insurance unless or until paid out as provided by the written
195-15 agreement. The comptroller [state treasurer], as custodian, shall
195-16 administer the funds strictly and solely as provided by the
195-17 agreement and the state may not take any action with respect to the
195-18 fund other than as specified by this act and the agreement.
195-19 On the effective date of an agreement, all funds held on
195-20 behalf of or paid to the association under one or more reinsurance
195-21 plans or programs may be immediately paid to the catastrophe
195-22 reserve trust fund. Thereafter, at the end of either each calendar
195-23 year or policy year, the association may pay the net equity of a
195-24 member, including all premium and other revenue of the association
195-25 in excess of incurred losses and operating expenses to the
195-26 catastrophe reserve trust fund or a reinsurance program approved by
195-27 the Commissioner of Insurance.
196-1 The written agreement shall establish the procedure relating
196-2 to the disbursement of funds from the catastrophe reserve trust
196-3 fund to policyholders in the event of an occurrence or series of
196-4 occurrences within the defined catastrophe area that results in
196-5 insured losses and operating expenses of the association greater
196-6 than $100 million.
196-7 ARTICLE 12. CHANGES TO LABOR CODE
196-8 SECTION 12.01. Section 203.002, Labor Code, is amended to
196-9 read as follows:
196-10 Sec. 203.002. DUTIES OF [TREASURER AND] COMPTROLLER.
196-11 (a) The comptroller [treasurer] is treasurer and custodian of the
196-12 compensation fund and the special administration fund and shall
196-13 administer the funds in accordance with the directions of the
196-14 commission.
196-15 (b) The comptroller shall issue warrants on the compensation
196-16 fund in accordance with rules adopted by the commission.
196-17 (c) The comptroller shall issue warrants on the special
196-18 administration fund in accordance with the directions of the
196-19 commission.
196-20 SECTION 12.02. Section 203.003, Labor Code, is amended to
196-21 read as follows:
196-22 Sec. 203.003. COMPTROLLER'S [TREASURER'S] BOND LIABILITY.
196-23 The comptroller [treasurer] is liable on the comptroller's
196-24 [treasurer's] official bond for the faithful performance of the
196-25 comptroller's [treasurer's] duties under this subtitle in
196-26 connection with the compensation fund, the administration fund, and
196-27 the special administration fund. This liability is in addition to
197-1 liability on any separate bond that the comptroller [treasurer] may
197-2 give.
197-3 SECTION 12.03. Section 203.021(d), Labor Code, is amended to
197-4 read as follows:
197-5 (d) The comptroller [treasurer] shall maintain in the
197-6 compensation fund:
197-7 (1) a clearing account;
197-8 (2) a federal trust fund account; and
197-9 (3) a benefit account.
197-10 SECTION 12.04. Section 203.022(a), Labor Code, is amended to
197-11 read as follows:
197-12 (a) On receipt of any money payable to the compensation
197-13 fund, the commission shall forward the money to the comptroller
197-14 [treasurer], who shall immediately deposit it in the clearing
197-15 account.
197-16 SECTION 12.05. Section 203.023(c), Labor Code, is amended to
197-17 read as follows:
197-18 (c) On receipt of money requisitioned from the federal trust
197-19 fund, the comptroller [treasurer] shall deposit it in the benefit
197-20 account.
197-21 SECTION 12.06. Section 203.024(a), Labor Code, is amended to
197-22 read as follows:
197-23 (a) Except as otherwise provided by this subchapter, the
197-24 comptroller [treasurer], under the direction of the commission, may
197-25 deposit money credited to the clearing and benefit accounts in a
197-26 bank or public depository in which general funds of this state may
197-27 be deposited.
198-1 SECTION 12.07. Sections 203.032(b)-(d), Labor Code, are
198-2 amended to read as follows:
198-3 (b) If the federal trust fund ceases to exist or the
198-4 secretary of the treasury ceases to maintain a separate book
198-5 account for this state in the federal trust fund, all money,
198-6 property, or securities in the federal trust fund that belong to
198-7 the compensation fund shall be transferred to the comptroller
198-8 [treasurer]. The comptroller [treasurer] shall hold, invest,
198-9 transfer, deposit, and release the money, property, or securities
198-10 in a manner approved by the commission in accordance with this
198-11 subtitle.
198-12 (c) Money held by the comptroller [treasurer] under
198-13 Subsection (b) shall be invested in readily marketable bonds or
198-14 other interest-bearing obligations of the United States of America.
198-15 The money shall be invested in such a manner that the assets of the
198-16 compensation fund are readily convertible at all times into cash as
198-17 needed for the payment of benefits.
198-18 (d) The comptroller [treasurer] may dispose of securities or
198-19 other property belonging to the compensation fund only under the
198-20 direction of the commission.
198-21 SECTION 12.08. Section 203.102(a), Labor Code, is amended to
198-22 read as follows:
198-23 (a) The advance interest trust fund is a trust fund in the
198-24 custody of the comptroller [treasurer].
198-25 SECTION 12.09. Section 203.103, Labor Code, is amended to
198-26 read as follows:
198-27 Sec. 203.103. TRANSFER TO SPECIAL ADMINISTRATION FUND. The
199-1 [treasurer and the] comptroller shall transfer all income earned
199-2 after April 1, 1983, from investment of the advance interest trust
199-3 fund and other funds appropriated for that purpose to the special
199-4 administration fund for the administration of Chapters 51, 61, and
199-5 62.
199-6 SECTION 12.10. Section 204.122, Labor Code, is amended to
199-7 read as follows:
199-8 Sec. 204.122. HOLDING FUND. (a) The holding fund is a
199-9 special trust fund in the custody of the comptroller [state
199-10 treasurer] separate and apart from all public money or funds of
199-11 this state.
199-12 (b) The comptroller [state treasurer] shall administer the
199-13 holding fund in accordance with the directions of the commission.
199-14 Interest accruing on amounts in the holding fund shall be deposited
199-15 quarterly to the credit of the compensation fund.
199-16 SECTION 12.11. Section 210.012, Labor Code, is amended to
199-17 read as follows:
199-18 Sec. 210.012. DEADLINE FOR PAYMENT OF WARRANT. The
199-19 comptroller [treasurer] may not pay a warrant issued for benefits
199-20 unless the warrant is presented for payment before the first
199-21 anniversary of the date on which the warrant was issued.
199-22 SECTION 12.12. Section 407.065(c), Labor Code, is amended to
199-23 read as follows:
199-24 (c) The certified self-insurer shall deposit the security
199-25 with the comptroller [state treasurer] on behalf of the director.
199-26 The comptroller [state treasurer] may accept securities for deposit
199-27 or withdrawal only on the written order of the director.
200-1 SECTION 12.13. Section 417.001(d), Labor Code, is amended to
200-2 read as follows:
200-3 (d) The commission shall remit money recovered under this
200-4 section to the comptroller [state treasurer] for deposit to the
200-5 credit of the subsequent injury fund.
200-6 SECTION 12.14. Section 203.001(4), Labor Code, is repealed.
200-7 ARTICLE 13. CHANGES TO LOCAL GOVERNMENT CODE
200-8 SECTION 13.01. Section 117.002, Local Government Code, is
200-9 amended to read as follows:
200-10 Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER
200-11 [STATE TREASURER]. Any funds deposited under this chapter that are
200-12 presumed abandoned under Chapter 72, 73, or 75, Property Code,
200-13 shall be reported and delivered by the county or district clerk to
200-14 the comptroller [state treasurer] without further action by any
200-15 court. The dormancy period for funds deposited under this chapter
200-16 begins on the later of:
200-17 (1) the date of entry of final judgment or order of
200-18 dismissal in the action in which the funds were deposited;
200-19 (2) the 18th birthday of the minor for whom the funds
200-20 were deposited; or
200-21 (3) a reasonable date established by rule by the
200-22 comptroller [state treasurer] to promote the public interest in
200-23 disposing of unclaimed funds.
200-24 SECTION 13.02. Section 154.008(d), Local Government Code, is
200-25 amended to read as follows:
200-26 (d) The comptroller shall mail a warrant for the payment to
200-27 the county treasurer. The warrant must be:
201-1 (1) drawn on the state treasury;
201-2 (2) payable to the county treasurer; and
201-3 (3) registered by the comptroller [and state
201-4 treasurer].
201-5 ARTICLE 14. CHANGES TO NATURAL RESOURCES CODE
201-6 SECTION 14.01. Section 31.059(c), Natural Resources Code, is
201-7 amended to read as follows:
201-8 (c) The receiving clerk shall report to the comptroller
201-9 [State Treasurer] and pay in kind on the last day of each month
201-10 funds in his possession which are due to the state and shall
201-11 receive a receipt in his own name.
201-12 SECTION 14.02. Sections 51.001(5)-(10), Natural Resources
201-13 Code, are amended to read as follows:
201-14 (5) ["State Treasurer" means the Treasurer of the
201-15 State of Texas.]
201-16 [(6)] "Board of regents" means the board of regents of
201-17 The University of Texas System.
201-18 (6) [(7)] "Public school land" means all land of the
201-19 state that is dedicated to the permanent school fund.
201-20 (7) [(8)] "Asylum land" means all land of the state
201-21 that is dedicated to the various asylum funds.
201-22 (8) [(9)] "Surveyed land" means all or part of any
201-23 tract of land surveyed either on the ground or by protraction and
201-24 dedicated to the public school fund which is unsold and for which
201-25 field notes are on file in the land office or that may be
201-26 delineated on the maps of that office as such.
201-27 (9) [(10)] "Unsurveyed land" means any land that is
202-1 not included in surveys on file in the land office or surveys
202-2 delineated on maps of that office.
202-3 SECTION 14.03. Section 51.020(a), Natural Resources Code, is
202-4 amended to read as follows:
202-5 (a) On presentation of proper proof, money paid in good
202-6 faith to a fund in the State Treasury for public land or by a
202-7 lessee of public land or minerals to which the fund is not entitled
202-8 may be offset or credited by the commissioner against other sums
202-9 owing or shall be refunded by the comptroller in the following
202-10 instances:
202-11 (1) if an error is made in good faith and the refund,
202-12 stating to whom payment is to be made, is supported by the official
202-13 signature of the commissioner or the attorney general;
202-14 (2) if the payment is made according to law but title
202-15 cannot issue or possession cannot pass because of a conflict in
202-16 boundaries, an erroneous sale, an erroneous lease, or other cause;
202-17 (3) if there is a sale of leased land;
202-18 (4) if lease money is paid on a previous forfeited
202-19 sale and the sale has been reinstated and the interest paid;
202-20 (5) if erroneous timber sales or leases have been
202-21 made;
202-22 (6) if overpayments have been made in final payments
202-23 to the comptroller [State Treasurer] because of decreased acreage
202-24 or other cause;
202-25 (7) if reduction has been made in acreage of timber
202-26 sold or leased; or
202-27 (8) if payments are made in good faith by claimants of
203-1 land where the applicants have no right to purchase the land as
203-2 revealed by investigation of title.
203-3 SECTION 14.04. Sections 51.058(a) and (b), Natural Resources
203-4 Code, are amended to read as follows:
203-5 (a) An applicant shall submit with his application the
203-6 required first payment in the form of money or remittance
203-7 collectible on demand in Austin and convertible at par into money
203-8 on order of the comptroller [State Treasurer] without liability.
203-9 (b) If a remittance is made payable to the commissioner, the
203-10 payment is not invalid for that reason, but the commissioner shall
203-11 endorse it to the comptroller [State Treasurer] without incurring
203-12 liability and the remittance shall be treated as if it were payable
203-13 to the comptroller [State Treasurer].
203-14 SECTION 14.05. Section 51.060, Natural Resources Code, is
203-15 amended to read as follows:
203-16 Sec. 51.060. RECORDATION OF FIRST PAYMENTS. (a) After each
203-17 application envelope is opened and the first payment for the land
203-18 is in the land office, the commissioner shall have the payment
203-19 listed on a daily list which shall be made in triplicate, showing
203-20 the name and address of each applicant and the purpose for which
203-21 each payment is made and shall transmit to the comptroller [State
203-22 Treasurer] all of the payments together with two of the lists.
203-23 (b) On receiving the payments and the lists, the comptroller
203-24 [treasurer] shall compare the payments with the lists, and if the
203-25 comptroller [treasurer] finds that the payments and the lists are
203-26 correct, he shall receipt one of the lists and return it to the
203-27 commissioner and shall retain the other list.
204-1 [(c) On receiving the list from the treasurer, the
204-2 commissioner shall deliver the third list to the comptroller.]
204-3 SECTION 14.06. Section 51.061(a), Natural Resources Code, is
204-4 amended to read as follows:
204-5 (a) The comptroller [State Treasurer] shall immediately
204-6 collect all collectible remittances and shall report to the
204-7 commissioner [and comptroller] all remittances not collectible in
204-8 Austin.
204-9 SECTION 14.07. Section 51.062, Natural Resources Code, is
204-10 amended to read as follows:
204-11 Sec. 51.062. DISPOSITION OF FIRST PAYMENTS. (a) The
204-12 comptroller [State Treasurer] shall retain all first payments he
204-13 has collected until the commissioner notifies him of the final
204-14 disposition of the applications to purchase land.
204-15 (b) After the comptroller [treasurer] is notified, he shall
204-16 return to each applicant whose application is rejected the amount
204-17 of his first payment.
204-18 (c) [A duplicate of the notice to the treasurer of accepted
204-19 and rejected applications and the amount of the first payment shall
204-20 be transmitted to the comptroller.]
204-21 [(d)] On the last working day of each month, the comptroller
204-22 [treasurer] shall deposit in the State Treasury to the credit of
204-23 the proper fund the amount collected by him on accepted
204-24 applications during that month.
204-25 SECTION 14.08. Sections 51.068(b), (c), and (d), Natural
204-26 Resources Code, are amended to read as follows:
204-27 (b) The comptroller [state treasurer] shall deposit 80
205-1 percent of all these payments received each month to the probable
205-2 fund to which they belong as indicated by the commissioner and
205-3 shall hold the remaining 20 percent in the suspense account until
205-4 definite notice is received from the commissioner as to the proper
205-5 fund. After definite notice is received, the comptroller [State
205-6 Treasurer] shall credit the full amount to the proper fund.
205-7 (c) The commissioner shall give definite notice to the
205-8 [State Treasurer and] comptroller immediately after he issues
205-9 receipts to the persons making the payments.
205-10 (d) The commissioner[, State Treasurer,] and comptroller
205-11 shall keep an account with each fund according to advices given by
205-12 them and shall retain the advices as permanent records.
205-13 SECTION 14.09. Section 51.069, Natural Resources Code, is
205-14 amended to read as follows:
205-15 Sec. 51.069. DISPOSITION OF PAYMENTS ON PUBLIC SCHOOL LAND.
205-16 (a) Payments on public school land received by the commissioner
205-17 shall be transmitted to the comptroller [State Treasurer] to be
205-18 credited to the proper fund.
205-19 (b) The comptroller [State Treasurer] shall credit payments
205-20 received on the purchase price of public school land to the
205-21 permanent school fund and payments received as interest on the
205-22 purchase of public school land to the available school fund.
205-23 SECTION 14.10. Section 51.177(a), Natural Resources Code, is
205-24 amended to read as follows:
205-25 (a) The commissioner shall deposit all initial and
205-26 supplemental deposits received under this subchapter to the credit
205-27 of a separate trust account in the treasury. The comptroller
206-1 [treasurer], on the commissioner's order, shall make disbursements
206-2 from that account for purposes authorized by this subchapter.
206-3 SECTION 14.11. Section 52.020, Natural Resources Code, is
206-4 amended to read as follows:
206-5 Sec. 52.020. RETURN OF PAYMENTS ON REJECTED APPLICATIONS.
206-6 The comptroller [State Treasurer] or commissioner shall return all
206-7 amounts paid on rejected applications.
206-8 SECTION 14.12. Section 52.025, Natural Resources Code, is
206-9 amended to read as follows:
206-10 Sec. 52.025. DISPOSITION OF LEASE PAYMENTS. The comptroller
206-11 [State Treasurer] shall credit the permanent school fund with
206-12 amounts received from unsurveyed school land and with two-thirds of
206-13 the amount received from other areas and shall credit the General
206-14 Revenue Fund with the remaining one-third of the payments for the
206-15 other areas.
206-16 SECTION 14.13. Section 52.137(b), Natural Resources Code, is
206-17 amended to read as follows:
206-18 (b) The commissioner, upon receipt of such payment made
206-19 under protest as authorized by this section, shall send to the
206-20 comptroller [state treasurer] the payment and a written statement
206-21 that the payment was made under protest. Immediately upon receipt,
206-22 the comptroller [and treasurer] shall:
206-23 (1) place the payment in state depositories bearing
206-24 interest in the same manner that other funds are required to be
206-25 placed in state depositories at interest;
206-26 (2) allocate the interest earned on these funds;
206-27 (3) credit the amount allocated to an account
207-1 established for this purpose until the status of the protest is
207-2 finally determined; and
207-3 (4) upon final determination that some or all of the
207-4 protested funds belong to the state, deposit the principal and the
207-5 allocated interest to the proper funds as provided by law. All
207-6 protest payments finally determined to belong to the permanent
207-7 school fund shall be deposited to that fund upon such
207-8 determination, and interest earned and allocated on those funds
207-9 shall be deposited to the available school fund.
207-10 SECTION 14.14. Section 52.138, Natural Resources Code, is
207-11 amended to read as follows:
207-12 Sec. 52.138. REFUND. If a suit authorized by Section 52.137
207-13 of this code results in a final determination that all or part of
207-14 the payment under protest was not due or was unlawfully demanded by
207-15 the commissioner and belongs to the lessee, the comptroller [and
207-16 treasurer] shall refund the proper amount, with the pro rata
207-17 interest earned on that amount, by issuance of a refund warrant
207-18 drawn against the account established for such purpose. The refund
207-19 warrant shall be returned to the commissioner and the commissioner
207-20 shall deliver it to the person entitled to receive it.
207-21 SECTION 14.15. Section 91.403(c), Natural Resources Code, is
207-22 amended to read as follows:
207-23 (c) The payor's obligation to pay interest and the payee's
207-24 right to receive interest under Subsection (a) of this section
207-25 terminate on delivery of the proceeds and accumulated interest to
207-26 the comptroller [State Treasurer] as provided by Title 6, Property
207-27 Code.
208-1 SECTION 14.16. Sections 161.016(a) and (b), Natural
208-2 Resources Code, are amended to read as follows:
208-3 (a) The board may designate the comptroller [State
208-4 Treasurer] as the fiscal agent for payment of principal of and
208-5 interest on the bonds.
208-6 (b) The comptroller [State Treasurer] shall act as fiscal
208-7 agent without compensation.
208-8 SECTION 14.17. Section 161.173(a), Natural Resources Code,
208-9 is amended to read as follows:
208-10 (a) Money in the fund that is not immediately committed to
208-11 paying principal of and interest on the bonds, to the purchase of
208-12 land, or to the payment of expenses as provided in this chapter may
208-13 be invested in:
208-14 (1) direct security repurchase agreements and reverse
208-15 security repurchase agreements made with state or national banks
208-16 domiciled in this state or with primary dealers as approved by the
208-17 Federal Reserve System;
208-18 (2) direct obligations of or obligations the principal
208-19 and interest of which are guaranteed by the United States;
208-20 (3) direct obligations of or obligations guaranteed by
208-21 the Federal Home Loan Banks, the Federal National Mortgage
208-22 Association, the Federal Farm Credit System, the Student Loan
208-23 Marketing Association, the Federal Home Loan Mortgage Corporation,
208-24 or a successor organization to one of those organizations;
208-25 (4) bankers' acceptances that:
208-26 (A) are eligible for purchase by members of the
208-27 Federal Reserve System;
209-1 (B) do not exceed 270 days to maturity; and
209-2 (C) are issued by a bank that has received the
209-3 highest short-term credit rating by a nationally recognized
209-4 investment rating firm;
209-5 (5) commercial paper that:
209-6 (A) does not exceed 270 days to maturity; and
209-7 (B) has received the highest short-term credit
209-8 rating by a nationally recognized investment rating firm;
209-9 (6) contracts written by the board in which the board
209-10 grants the purchaser the right to purchase securities in the
209-11 board's marketable securities portfolio at a specified price over a
209-12 specified period and for which the board is paid a fee and
209-13 specifically prohibits naked-option or uncovered option trading;
209-14 (7) obligations of a state or an agency, county, city,
209-15 or other political subdivision of a state and mutual funds composed
209-16 of these obligations;
209-17 (8) an investment instrument, obligation, or other
209-18 evidence of indebtedness the payment of which is directly or
209-19 indirectly guaranteed by the full faith and credit of the United
209-20 States;
209-21 (9) an investment, account, depository receipt, or
209-22 deposit that is fully:
209-23 (A) insured by the Federal Deposit Insurance
209-24 Corporation, the Federal Savings and Loan Insurance Corporation, or
209-25 a successor organization to one of those organizations; or
209-26 (B) secured by securities described by
209-27 Subdivision (2), (3), or (8) of this subsection;
210-1 (10) a collateralized mortgage obligation fully
210-2 secured by securities or mortgages issued or guaranteed by the
210-3 Government National Mortgage Association (GNMA) or any entity
210-4 described by Subdivision (3) of this subsection;
210-5 (11) a security or evidence of indebtedness issued by
210-6 the Farm Credit System Financial Assistance Corporation, the
210-7 Private Export Funding Corporation, or the Export-Import Bank; and
210-8 (12) any other investment authorized for investment of
210-9 state funds by the comptroller [treasurer] under Section 404.024,
210-10 Government Code.
210-11 SECTION 14.18. Section 161.176, Natural Resources Code, is
210-12 amended to read as follows:
210-13 Sec. 161.176. USE OF FUND TO PAY BOND EXPENSES. The board
210-14 may use money in the fund attributable to bonds issued and sold to
210-15 pay:
210-16 (1) legal fees and fees for financial advice necessary
210-17 in the opinion of the board to the sale of bonds;
210-18 (2) the expense of publishing notice of sale of an
210-19 installment of bonds;
210-20 (3) the expense of printing the bonds;
210-21 (4) the expenses of issuance of the bonds, including
210-22 the actual costs of travel, lodging, and meals of board members,
210-23 officers or employees of the board, the comptroller, [the State
210-24 Treasurer,] and the attorney general that are necessary in the
210-25 opinion of the board to effectuate the issuance, rating, and
210-26 delivery of the bonds;
210-27 (5) the cost of manually signing the bonds;
211-1 (6) remuneration to any agent employed by the board to
211-2 pay the principal of and interest on the bonds;
211-3 (7) any amounts required to be paid to maintain the
211-4 federal tax exemption of interest on the bonds; and
211-5 (8) all other costs, fees, and expenses relating to
211-6 the issuance of the bonds.
211-7 SECTION 14.19. Section 161.177(b), Natural Resources Code,
211-8 is amended to read as follows:
211-9 (b) Bonds purchased by the board under Subsection (a) of
211-10 this section shall be mutilated, burned, or otherwise destroyed by
211-11 the comptroller [State Treasurer], who shall certify this fact to
211-12 the board under the seal of his office.
211-13 SECTION 14.20. Section 161.362(c), Natural Resources Code,
211-14 is amended to read as follows:
211-15 (c) If the board desires, it may require each veteran
211-16 applicant to make additional semiannual payments to be held in
211-17 trust to pay premiums that may become due and unpaid on the
211-18 contracted insurance covering the improvements. The payments shall
211-19 be deposited in a trust fund with the comptroller [State Treasurer]
211-20 and shall be used to make the premium payments. The unused balance
211-21 of the veteran's deposit shall be held by the board until the time
211-22 that maintenance of the account is unnecessary and then shall be
211-23 refunded to the veteran.
211-24 SECTION 14.21. Section 162.049, Natural Resources Code, is
211-25 amended to read as follows:
211-26 Sec. 162.049. PAYMENT OF PRINCIPAL AND INTEREST. The
211-27 comptroller [State Treasurer] shall pay the principal on bonds as
212-1 they mature and the interest as it becomes payable. Payments shall
212-2 be made at the place of payment designated on the bonds.
212-3 SECTION 14.22. Section 162.051(b), Natural Resources Code,
212-4 is amended to read as follows:
212-5 (b) Bonds purchased by the board under Subsection (a) of
212-6 this section shall be mutilated, burned, or otherwise destroyed by
212-7 the comptroller [state treasurer], who shall certify this fact to
212-8 the board under the seal of office.
212-9 SECTION 14.23. Sections 164.011(c) and (f), Natural
212-10 Resources Code, are amended to read as follows:
212-11 (c) Funds established by the board under this chapter are
212-12 not to be part of the State Treasury but, at the direction of the
212-13 board, may be kept and held in escrow and in trust by the
212-14 comptroller [state treasurer] on behalf of the board and the owners
212-15 of the bonds and used only as provided by this chapter.
212-16 (f) The comptroller [state treasurer], as custodian of the
212-17 fund, shall administer the fund solely and strictly as provided by
212-18 this chapter and the resolution authorizing the issuance of the
212-19 bonds, and the state may not take any other action relating to the
212-20 fund except those specified in this chapter and the resolution
212-21 authorizing the issuance of the bonds.
212-22 ARTICLE 15. CHANGES TO TEXAS PROBATE CODE
212-23 SECTION 15.01. Section 427, Texas Probate Code, is amended
212-24 to read as follows:
212-25 Sec. 427. WHEN ESTATES TO BE PAID INTO STATE TREASURY. If
212-26 any person entitled to a portion of an estate, except a resident
212-27 minor without a guardian, shall not demand his portion from the
213-1 executor or administrator within six months after an order of court
213-2 approving the report of commissioners of partition, or within six
213-3 months after the settlement of the final account of an executor or
213-4 administrator, as the case may be, the court by written order shall
213-5 require the executor or administrator to pay so much of said
213-6 portion as is in money to the comptroller [State Treasurer]; and
213-7 such portion as is in other property he shall order the executor or
213-8 administrator to sell on such terms as the court thinks best, and,
213-9 when the proceeds of such sale are collected, the court shall order
213-10 the same to be paid to the comptroller [State Treasurer], in all
213-11 such cases allowing the executor or administrator reasonable
213-12 compensation for his services. A suit to recover proceeds of the
213-13 sale is governed by Section 433 of this Code.
213-14 SECTION 15.02. Section 428, Texas Probate Code, is amended
213-15 to read as follows:
213-16 Sec. 428. INDISPENSABILITY OF COMPTROLLER [STATE TREASURER]
213-17 AS PARTY. The comptroller [State Treasurer] is an indispensable
213-18 party to any judicial or administrative proceeding concerning the
213-19 disposition and handling of any portion of an estate that is or may
213-20 be payable to the comptroller [State Treasurer] under Section 427
213-21 of this Code. Whenever an order shall be made by the court for an
213-22 executor or administrator to pay any funds to the comptroller
213-23 [State Treasurer] under Section 427 of this Code, the clerk of the
213-24 court in which such order is made shall serve on the comptroller
213-25 [State Treasurer] by personal service of citation a certified copy
213-26 of such order within five days after the same has been made.
213-27 SECTION 15.03. Section 429, Texas Probate Code, is amended
214-1 to read as follows:
214-2 Sec. 429. PENALTY FOR NEGLECT TO NOTIFY COMPTROLLER [STATE
214-3 TREASURER]. Any clerk who shall neglect to have served on the
214-4 comptroller [State Treasurer] by personal citation a certified copy
214-5 of any such order within the time prescribed by Section 428 of this
214-6 Code shall be liable in a penalty of One Hundred Dollars, to be
214-7 recovered in an action in the name of the state, after personal
214-8 service of citation, on the information of any citizen, one-half of
214-9 which penalty shall be paid to the informer and the other one-half
214-10 to the state.
214-11 SECTION 15.04. Section 430, Texas Probate Code, is amended
214-12 to read as follows:
214-13 Sec. 430. RECEIPT OF COMPTROLLER [STATE TREASURER].
214-14 Whenever an executor or administrator pays the comptroller [State
214-15 Treasurer] any funds of the estate he represents, under the
214-16 preceding provisions of this Code, he shall take from the
214-17 comptroller [State Treasurer] a receipt for such payment, with
214-18 official seal attached, and shall file the same with the clerk of
214-19 the court ordering such payment; and such receipt shall be recorded
214-20 in the minutes of the court.
214-21 SECTION 15.05. Section 431, Texas Probate Code, is amended
214-22 to read as follows:
214-23 Sec. 431. PENALTY FOR FAILURE TO MAKE PAYMENTS TO
214-24 COMPTROLLER [STATE TREASURER]. When an executor or administrator
214-25 fails to pay to the comptroller [State Treasurer] any funds of an
214-26 estate which he has been ordered by the court so to pay, within 30
214-27 days after such order has been made, such executor or administrator
215-1 shall, after personal service of citation charging such failure and
215-2 after proof thereof, be liable to pay out of his own estate to the
215-3 comptroller [State Treasurer] damages thereon at the rate of five
215-4 per cent per month for each month, or fraction thereof, that he
215-5 fails to make such payment after 30 days from such order, which
215-6 damages may be recovered in any court of competent jurisdiction.
215-7 SECTION 15.06. Section 432, Texas Probate Code, is amended
215-8 to read as follows:
215-9 Sec. 432. COMPTROLLER [STATE TREASURER] MAY ENFORCE PAYMENT
215-10 AND COLLECT DAMAGES. The comptroller [State Treasurer] shall have
215-11 the right in the name of the state to apply to the court in which
215-12 the order for payment was made to enforce the payment of funds
215-13 which the executor or administrator has failed to pay to him
215-14 pursuant to order of court, together with the payment of any
215-15 damages that shall have accrued under the provisions of the
215-16 preceding Section of this Code, and the court shall enforce such
215-17 payment in like manner as other orders of payment are required to
215-18 be enforced. The comptroller [State Treasurer] shall also have the
215-19 right to institute suit in the name of the state against such
215-20 executor or administrator, and the sureties on his bond, for the
215-21 recovery of the funds so ordered to be paid and such damages as
215-22 have accrued. The county attorney or criminal district attorney of
215-23 the county, the district attorney of the district, or the attorney
215-24 general, at the election of the comptroller [State Treasurer] and
215-25 with the approval of the attorney general, shall represent the
215-26 comptroller [State Treasurer] in all such proceedings, and shall
215-27 also represent the interests of the state in all other matters
216-1 arising under any provisions of this Code.
216-2 SECTION 15.07. Section 433, Texas Probate Code, is amended
216-3 to read as follows:
216-4 Sec. 433. SUIT FOR THE RECOVERY OF FUNDS PAID TO THE
216-5 COMPTROLLER [STATE TREASURER]. (a) Mode of Recovery. When funds
216-6 of an estate have been paid to the comptroller [State Treasurer],
216-7 any heir, devisee, or legatee of the estate, or their assigns, or
216-8 any of them, may recover the portion of such funds to which he,
216-9 she, or they are entitled. The person claiming such funds shall
216-10 institute suit on or before the fourth anniversary of the date of
216-11 the order requiring payment to the comptroller [State Treasurer],
216-12 by petition filed in the district court of Travis County, against
216-13 the comptroller [State Treasurer], setting forth the plaintiff's
216-14 right to such funds, and the amount claimed by him.
216-15 (b) Citation. Upon the filing of such petition, the clerk
216-16 shall issue a citation for the comptroller [State Treasurer], to be
216-17 served by personal service, to appear and represent the interest of
216-18 the state in such suit. As the comptroller [State Treasurer]
216-19 elects and with the approval of the attorney general, the attorney
216-20 general, the county attorney or criminal district attorney for the
216-21 county, or the district attorney for the district shall represent
216-22 the comptroller [State Treasurer].
216-23 (c) Procedure. The proceedings in such suit shall be
216-24 governed by the rules for other civil suits; and, should the
216-25 plaintiff establish his right to the funds claimed, he shall have a
216-26 judgment therefor, which shall specify the amount to which he is
216-27 entitled; and a certified copy of such judgment shall be sufficient
217-1 authority for the comptroller [State Treasurer] to pay the same.
217-2 (d) Costs. The costs of any such suit shall in all cases be
217-3 adjudged against the plaintiff, and he may be required to secure
217-4 the costs.
217-5 ARTICLE 16. CHANGES TO PROPERTY CODE
217-6 SECTION 16.01. Section 71.101(a), Property Code, is amended
217-7 to read as follows:
217-8 (a) If any person, including the attorney general, the
217-9 comptroller [State Treasurer], or a district attorney, criminal
217-10 district attorney, county attorney, county clerk, district clerk,
217-11 or attorney ad litem is informed or has reason to believe that real
217-12 or personal property is subject to escheat under this chapter, the
217-13 person may file a sworn petition requesting the escheat of the
217-14 property and requesting a writ of possession for the property.
217-15 SECTION 16.02. Section 71.103(c), Property Code, is amended
217-16 to read as follows:
217-17 (c) The comptroller [State Treasurer] is an indispensable
217-18 party to any judicial or administrative proceeding concerning the
217-19 disposition and handling of property that is the subject of an
217-20 escheat proceeding and must be made a party to the proceeding by
217-21 personal service of citation.
217-22 SECTION 16.03. Section 71.301(c), Property Code, is amended
217-23 to read as follows:
217-24 (c) A copy of the petition shall be served on the
217-25 comptroller [State Treasurer], who shall represent the interests of
217-26 the state. As the comptroller [State Treasurer] elects and with
217-27 the approval of the attorney general, the attorney general, the
218-1 county attorney or criminal district attorney for the county, or
218-2 the district attorney for the district shall represent the
218-3 comptroller [State Treasurer].
218-4 SECTION 16.04. Section 71.304(a), Property Code, is amended
218-5 to read as follows:
218-6 (a) A suit brought for the collection of personal property
218-7 delivered to the comptroller [State Treasurer] under this chapter
218-8 must be brought in the name of this state.
218-9 SECTION 16.05. Section 73.101(a), Property Code, is amended
218-10 to read as follows:
218-11 (a) An account or safe deposit box is presumed abandoned if:
218-12 (1) the account or safe deposit box has been inactive
218-13 under Section 73.003(b) for at least five years;
218-14 (2) the location of the depositor of the account or
218-15 owner of the safe deposit box is unknown to the depository; and
218-16 (3) the amount of the account or the contents of the
218-17 box have not been delivered to the comptroller [State Treasurer] in
218-18 accordance with Chapter 74.
218-19 SECTION 16.06. Sections 74.101(a) and (c), Property Code,
218-20 are amended to read as follows:
218-21 (a) Each holder who on June 30 holds property that is
218-22 presumed abandoned under Chapter 72, Chapter 73, or Chapter 75, or
218-23 under Section 5A, Chapter 512, Acts of the 54th Legislature, 1955
218-24 (Article 548b, Vernon's Texas Civil Statutes), shall file a report
218-25 of that property on or before the following November 1. Each
218-26 report shall be filed with the comptroller [State Treasurer] as
218-27 provided by this section and on forms prescribed by the comptroller
219-1 [State Treasurer].
219-2 (c) The property report must include:
219-3 (1) the name, if known, and the last known address, if
219-4 any, of each person who, from the records of the holder of the
219-5 property, appears to be the owner of the property, or the name and
219-6 address, if known, of any person who is entitled to the property;
219-7 (2) a brief description of the property, the
219-8 identification number, if any, and, if appropriate, a balance of
219-9 each account, except as provided by Subsection (e);
219-10 (3) the date that the property became payable,
219-11 demandable, or returnable;
219-12 (4) the date of the last transaction with the owner
219-13 concerning the property;
219-14 (5) any deduction made by the holder of the property
219-15 for a service, maintenance, or other charge, unless fully restored
219-16 and included in the amount reported; and
219-17 (6) other information that the comptroller [State
219-18 Treasurer] by rule requires to be disclosed as necessary for the
219-19 administration of this chapter.
219-20 SECTION 16.07. Section 74.103(c), Property Code, is amended
219-21 to read as follows:
219-22 (c) The comptroller [State Treasurer] may by rule provide
219-23 for a shorter period for keeping a record required by this section.
219-24 SECTION 16.08. Section 74.104, Property Code, is amended to
219-25 read as follows:
219-26 Sec. 74.104. CONFIDENTIALITY OF PROPERTY REPORT.
219-27 (a) Except as provided by Sections 74.201, 74.203, and 74.307, a
220-1 property report filed with the comptroller [State Treasurer] under
220-2 Section 74.101 is confidential until the second anniversary of the
220-3 date the report is filed.
220-4 (b) Notwithstanding any other provision of law, the social
220-5 security number of an owner that is reported to the comptroller
220-6 [State Treasurer] is confidential.
220-7 SECTION 16.09. Section 74.201, Property Code, is amended to
220-8 read as follows:
220-9 Sec. 74.201. PUBLISHED NOTICE. (a) Except as provided by
220-10 Subsection (b) and Section 74.202, the comptroller [State
220-11 Treasurer] shall publish a notice in a newspaper of general
220-12 circulation in the calendar year immediately following the year in
220-13 which the report required by Section 74.101 is filed. The notice
220-14 must be published:
220-15 (1) in the county in which the last known address of a
220-16 person required to be named in the notice is located; or
220-17 (2) if the address of a person listed is not set out
220-18 in the report or if it is outside the state, in the county in which
220-19 the holder of the abandoned property has its principal place of
220-20 business, registered office, or agent for service in this state.
220-21 (b) The comptroller [State Treasurer] may use a method of
220-22 publishing notice that is different from that prescribed by
220-23 Subsection (a)(1) or (2) if the comptroller [State Treasurer]
220-24 determines that the different method would be as likely as the
220-25 prescribed method to give actual notice to the person required to
220-26 be named in the notice.
220-27 (c) The published notice must state that the reported
221-1 property is presumed abandoned and subject to this chapter and must
221-2 contain:
221-3 (1) the name and city of last known address, if any,
221-4 of each person listed in the property report filed under Section
221-5 74.101, listed alphabetically by name;
221-6 (2) a statement that, by addressing an inquiry to the
221-7 comptroller [State Treasurer], any person possessing a legal or
221-8 beneficial interest in the reported property may obtain information
221-9 concerning the amount and description of the property; and
221-10 (3) a statement that the owner may present proof of
221-11 the claim to the comptroller [State Treasurer] and establish the
221-12 owner's right to receive the property.
221-13 (d) The comptroller [State Treasurer] may offer for sale
221-14 space for suitable advertisements in a notice published under this
221-15 section. Proceeds from the sale of the advertising space shall be
221-16 used to defray the cost of publishing the notices, with the
221-17 remaining amount, if any, to be deposited to the credit of the
221-18 unclaimed money fund.
221-19 SECTION 16.10. Section 74.202, Property Code, is amended to
221-20 read as follows:
221-21 Sec. 74.202. NOTICE FOR ITEM WITH VALUE NOT EXCEEDING $50.
221-22 In the notice required by Section 74.201, the comptroller [State
221-23 Treasurer] is not required to publish information regarding an item
221-24 having a value that is less than $50 unless the comptroller [State
221-25 Treasurer] determines that publication of that information is in
221-26 the public interest.
221-27 SECTION 16.11. Section 74.203, Property Code, is amended to
222-1 read as follows:
222-2 Sec. 74.203. NOTICE TO OWNER. (a) During the calendar year
222-3 immediately following the year in which the report required by
222-4 Section 74.101 is filed, the comptroller [State Treasurer] may mail
222-5 a notice to each person who has a Texas address and appears to be
222-6 entitled to the reported property valued at $50 or more.
222-7 (b) The notice must contain:
222-8 (1) a statement that property is being held by the
222-9 comptroller [State Treasurer] to which the addressee appears to be
222-10 entitled; and
222-11 (2) a statement that the owner may present proof of
222-12 the claim to the comptroller [State Treasurer] and establish the
222-13 owner's right to receive the property.
222-14 SECTION 16.12. Section 74.205, Property Code, is amended to
222-15 read as follows:
222-16 Sec. 74.205. CHARGE FOR NOTICE. The comptroller [State
222-17 Treasurer] may charge the following against the property delivered
222-18 under this chapter:
222-19 (1) expenses incurred for the publication of notice
222-20 required by Section 74.201; and
222-21 (2) the amount paid in postage for the notice to the
222-22 owner required by Section 74.203.
222-23 SECTION 16.13. Section 74.301, Property Code, is amended to
222-24 read as follows:
222-25 Sec. 74.301. DELIVERY OF PROPERTY TO COMPTROLLER [STATE
222-26 TREASURER]. (a) Each holder who on June 30 holds property that is
222-27 presumed abandoned under Chapter 72, Chapter 73, or Chapter 75
223-1 shall deliver the property to the comptroller [State Treasurer] on
223-2 or before the following November 1 accompanied by the report
223-3 required to be filed under Section 74.101.
223-4 (b) If the property subject to delivery under Subsection (a)
223-5 is stock or some other intangible ownership interest in a business
223-6 association for which there is no evidence of ownership, the holder
223-7 shall issue a duplicate certificate or other evidence of ownership
223-8 to the comptroller [State Treasurer] at the time delivery is
223-9 required under this section.
223-10 SECTION 16.14. Sections 74.3011(a), (c), and (e), Property
223-11 Code, are amended to read as follows:
223-12 (a) Notwithstanding and in addition to any other provision
223-13 of this chapter or other law, a local telephone exchange company
223-14 may deliver reported money to a scholarship fund for rural students
223-15 instead of delivering the money to the comptroller [state
223-16 treasurer] as prescribed by Section 74.301.
223-17 (c) A local telephone exchange company shall file with the
223-18 comptroller [state treasurer] a verification of money delivered
223-19 under this section that complies with Section 74.302.
223-20 (e) The comptroller [state treasurer] shall prescribe forms
223-21 and procedures governing this section, including forms and
223-22 procedures relating to:
223-23 (1) notice of presumed abandoned property;
223-24 (2) delivery of reported money to a scholarship fund;
223-25 and
223-26 (3) filing of a claim.
223-27 SECTION 16.15. Sections 74.3012(a), (c), and (e), Property
224-1 Code, are amended to read as follows:
224-2 (a) Notwithstanding and in addition to any other provision
224-3 of this chapter or other law, a local exchange company may deliver
224-4 reported money to a scholarship fund for urban students instead of
224-5 delivering the money to the comptroller [state treasurer] as
224-6 prescribed by Section 74.301.
224-7 (c) A local exchange company shall file with the comptroller
224-8 [state treasurer] a verification of money delivered under this
224-9 section that complies with Section 74.302.
224-10 (e) The comptroller [state treasurer] shall prescribe forms
224-11 and procedures governing this section, including forms and
224-12 procedures relating to:
224-13 (1) notice of presumed abandoned property;
224-14 (2) delivery of reported money to a scholarship fund;
224-15 and
224-16 (3) filing of a claim.
224-17 SECTION 16.16. Sections 74.304(a)-(d) and (f), Property
224-18 Code, are amended to read as follows:
224-19 (a) If reported property is delivered to the comptroller
224-20 [State Treasurer] the state shall assume custody of the property
224-21 and responsibility for its safekeeping.
224-22 (b) A holder who delivers property to the comptroller [State
224-23 Treasurer] in good faith is relieved of all liability to the extent
224-24 of the value of the property delivered for any claim then existing,
224-25 that may arise after delivery to the comptroller [State Treasurer],
224-26 or that may be made with respect to the property.
224-27 (c) If the holder delivers property to the comptroller
225-1 [State Treasurer] in good faith and, after delivery, a person
225-2 claims the property from the holder or another state claims the
225-3 property under its laws relating to escheat or unclaimed property,
225-4 the attorney general shall, on written notice of the claim, defend
225-5 the holder against the claim and the holder shall be indemnified
225-6 from the unclaimed money fund established in Section 74.601 against
225-7 any liability on the claim.
225-8 (d) The comptroller [State Treasurer] is not, in the absence
225-9 of negligence or mishandling of the property, liable to the person
225-10 who claims the property for damages incurred while the property or
225-11 the proceeds from the sale of the property are in the comptroller's
225-12 [treasurer's] possession. But in any event the liability of the
225-13 state is limited to the extent of the property delivered under this
225-14 chapter and remaining in the possession of the comptroller [State
225-15 Treasurer] at the time a suit is filed.
225-16 (f) On delivery of a duplicate certificate or other evidence
225-17 of ownership to the comptroller [State Treasurer] under Subsection
225-18 (b) of Section 74.301, the holder and any transfer agent,
225-19 registrar, or other person acting for or on behalf of a holder in
225-20 executing or delivering the duplicate certificate are relieved of
225-21 all liability of every kind in accordance with this section to any
225-22 person, including any person acquiring the original certificate or
225-23 the duplicate of the certificate issued to the comptroller [State
225-24 Treasurer], for any losses or damages resulting to any person by
225-25 the issuance and delivery to the comptroller [State Treasurer] of
225-26 the duplicate certificate.
225-27 SECTION 16.17. Sections 74.305(a) and (d), Property Code,
226-1 are amended to read as follows:
226-2 (a) If a holder fails to deliver property to the comptroller
226-3 [State Treasurer] in accordance with this subchapter, the attorney
226-4 general shall bring an action in the name of this state on request
226-5 of the comptroller [State Treasurer] to compel the delivery of the
226-6 property.
226-7 (d) In a suit filed under this section, the attorney general
226-8 must show that the notice required by Sections 74.201 and 74.203
226-9 has been given. When introduced into evidence the verified
226-10 property report, unless rebutted, is sufficient evidence that the
226-11 property is abandoned and subject to delivery under this chapter
226-12 and for entry of a judgment transferring custody of the property to
226-13 the comptroller [State Treasurer].
226-14 SECTION 16.18. Section 74.306, Property Code, is amended to
226-15 read as follows:
226-16 Sec. 74.306. UNCLAIMED PROPERTY HELD BY FEDERAL GOVERNMENT.
226-17 (a) If the federal government enacts a law that provides for the
226-18 discovery of unclaimed property held by the federal government and
226-19 that provides or makes that information available to the states,
226-20 the comptroller [State Treasurer] may pay to the federal government
226-21 from the unclaimed money fund the proportional share of the
226-22 necessary cost of examining records.
226-23 (b) If the federal government delivers unclaimed property to
226-24 the comptroller [State Treasurer], this state shall hold the
226-25 federal government harmless from claims made by owners of the
226-26 property after the delivery.
226-27 SECTION 16.19. Section 74.307, Property Code, is amended to
227-1 read as follows:
227-2 Sec. 74.307. LIST OF OWNERS. (a) The comptroller [State
227-3 Treasurer] shall compile and revise each year, except as to amounts
227-4 reported in the aggregate, an alphabetical list of the names and
227-5 last known addresses of the owners listed in the reports and the
227-6 amount credited to each account.
227-7 (b) The comptroller [State Treasurer] shall make the list
227-8 available for public inspection during all reasonable business
227-9 hours.
227-10 SECTION 16.20. Section 74.308, Property Code, is amended to
227-11 read as follows:
227-12 Sec. 74.308. PERIOD OF LIMITATION NOT A BAR. The
227-13 expiration, on or after September 1, 1987, of any period specified
227-14 by contract, statute, or court order, during which an action or
227-15 proceeding may be initiated or enforced to obtain payment of a
227-16 claim for money or recovery of property, does not prevent the money
227-17 or property from being presumed abandoned property and does not
227-18 affect any duty to file a report required by this chapter or to pay
227-19 or deliver abandoned property to the comptroller [State Treasurer].
227-20 SECTION 16.21. Section 74.401, Property Code, is amended to
227-21 read as follows:
227-22 Sec. 74.401. SALE OF PROPERTY. (a) Except as provided by
227-23 Subsection (c), the comptroller [State Treasurer] shall sell at
227-24 public sale all personal property, other than money and marketable
227-25 securities, delivered to the comptroller [State Treasurer] in
227-26 accordance with Section 74.301. The comptroller [State Treasurer]
227-27 shall conduct the sale in the city in this state that the
228-1 comptroller [State Treasurer] determines affords the most favorable
228-2 market for the particular property.
228-3 (b) The comptroller [State Treasurer] shall sell the
228-4 property to the highest bidder. If the comptroller [State
228-5 Treasurer] determines that the highest bid is insufficient, the
228-6 comptroller [State Treasurer] may decline that bid and offer the
228-7 property for public or private sale.
228-8 (c) The comptroller [State Treasurer] is not required to
228-9 offer property for sale if the property belongs to a person with an
228-10 address outside this state or the comptroller [State Treasurer]
228-11 determines that the probable cost of the sale of the property
228-12 exceeds its value.
228-13 (d) If after investigation the comptroller [State Treasurer]
228-14 determines that property delivered from a safe deposit box or other
228-15 repository has insubstantial commercial value, the comptroller
228-16 [State Treasurer] may destroy or otherwise dispose of the property
228-17 at any time.
228-18 (e) A person may not maintain any action or proceeding
228-19 against the state, an officer of the state, or the holder of
228-20 property because of an action taken by the comptroller [State
228-21 Treasurer] under this section.
228-22 SECTION 16.22. Section 74.402, Property Code, is amended to
228-23 read as follows:
228-24 Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding
228-25 the day on which a public sale is held under Section 74.401, the
228-26 comptroller [State Treasurer] shall publish notice of the sale in a
228-27 newspaper of general circulation in the county where the sale is to
229-1 be held.
229-2 SECTION 16.23. Section 74.403(b), Property Code, is amended
229-3 to read as follows:
229-4 (b) The comptroller [State Treasurer] shall execute all
229-5 documents necessary to complete the transfer of title.
229-6 SECTION 16.24. Section 74.501, Property Code, is amended to
229-7 read as follows:
229-8 Sec. 74.501. FILING OF CLAIM. (a) Except as provided by
229-9 Subsection (b), a claim for property or proceeds from the sale of
229-10 property delivered to the comptroller [State Treasurer] under this
229-11 chapter, including claims by other states, must be filed with the
229-12 comptroller [State Treasurer].
229-13 (b) If a claim is for inactive property that was held by a
229-14 depository before being delivered to the comptroller [State
229-15 Treasurer], the claim may be filed with the depository under
229-16 Section 74.502.
229-17 (c) All claims to which this section applies must be filed
229-18 in accordance with procedures and on forms prescribed by the
229-19 comptroller [State Treasurer].
229-20 SECTION 16.25. Sections 74.502(a), (c), and (d), Property
229-21 Code, are amended to read as follows:
229-22 (a) If inactive property held by a depository under Chapter
229-23 73 is delivered to the comptroller [State Treasurer] under Section
229-24 74.301, a claim may be filed with the depository except that any
229-25 claim by another state must be filed with the comptroller [State
229-26 Treasurer]. The comptroller [State Treasurer] shall prescribe
229-27 forms and procedures for filing claims with depositories.
230-1 (c) If the amount paid under Subsection (b) is $100 or less,
230-2 the comptroller [State Treasurer] shall reimburse the depository on
230-3 receipt of a written statement subscribed and sworn to by an
230-4 officer of the depository that states:
230-5 (1) the name and address of the person to whom payment
230-6 was made; and
230-7 (2) that the depository believes in good faith that
230-8 the claim is valid.
230-9 (d) If the amount paid under Subsection (b) is more than
230-10 $100, the comptroller [State Treasurer] shall examine the claim and
230-11 any supporting affidavit or evidence of the claim. Before the
230-12 comptroller [State Treasurer] may reimburse a depository for a
230-13 claim under this subsection, the claim must be approved and signed
230-14 by the comptroller [State Treasurer].
230-15 SECTION 16.26. Section 74.503, Property Code, as amended by
230-16 Chapters 36 and 851, Acts of the 73rd Legislature, Regular Session,
230-17 1993, is amended to read as follows:
230-18 Sec. 74.503. CONSIDERATION OF CLAIM. The comptroller [State
230-19 Treasurer] or the comptroller's [treasurer's] authorized agent
230-20 shall consider the validity of each claim filed under this
230-21 subchapter.
230-22 SECTION 16.27. Section 74.504, Property Code, is amended to
230-23 read as follows:
230-24 Sec. 74.504. HEARING. (a) The comptroller [State
230-25 Treasurer] may hold a hearing and receive evidence concerning a
230-26 claim filed under this subchapter.
230-27 (b) If the comptroller [State Treasurer] considers that a
231-1 hearing is necessary to determine the validity of a claim, the
231-2 comptroller [State Treasurer] shall sign the statement of the
231-3 findings and the decision on the claim. The statement shall report
231-4 the substance of the evidence heard and the reasons for the
231-5 decision. The statement is a public record.
231-6 (c) If the comptroller [State Treasurer] determines that a
231-7 claim is valid, the comptroller [State Treasurer] shall approve and
231-8 sign the claim.
231-9 SECTION 16.28. Sections 74.505(a) and (b), Property Code,
231-10 are amended to read as follows:
231-11 (a) If a claim is for money and has been approved under this
231-12 subchapter, the comptroller [State Treasurer] shall pay the claim.
231-13 (b) If a claim is for personal property other than money and
231-14 has been approved under this subchapter, the comptroller [State
231-15 Treasurer] promptly shall deliver the property to the claimant
231-16 unless the comptroller [State Treasurer] has sold the property. If
231-17 the property has been sold under Section 74.401, the comptroller
231-18 [State Treasurer] shall pay to the claimant the proceeds from the
231-19 sale.
231-20 SECTION 16.29. Section 74.507, Property Code, is amended to
231-21 read as follows:
231-22 Sec. 74.507. FEE FOR RECOVERY. A person who informs a
231-23 potential claimant that the claimant may be entitled to claim
231-24 property that is reportable to the comptroller [State Treasurer]
231-25 under this chapter, that has been reported to the comptroller
231-26 [State Treasurer], or that is in the possession of the comptroller
231-27 [State Treasurer], may not contract for or receive from the
232-1 claimant for services an amount that exceeds 10 percent of the
232-2 value of the property recovered. If the property involved is
232-3 mineral proceeds, the amount for services may not include a portion
232-4 of the underlying minerals or any production payment, overriding
232-5 royalty, or similar payment.
232-6 SECTION 16.30. Section 74.508, Property Code, is amended to
232-7 read as follows:
232-8 Sec. 74.508. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
232-9 PROCEDURE. (a) At any time after property has been paid or
232-10 delivered to the comptroller [State Treasurer] under this Act,
232-11 another state may recover the property if:
232-12 (1) the property was subjected to custody by this
232-13 state because the records of the holder did not reflect the last
232-14 known address of the apparent owner when the property was presumed
232-15 abandoned under this Act, and the other state establishes that the
232-16 last known address of the apparent owner or other person entitled
232-17 to the property was in that state and under the laws of that state
232-18 the property escheated to or was subject to a claim of abandonment
232-19 by that state;
232-20 (2) the last known address of the apparent owner or
232-21 other person entitled to the property, as reflected by the records
232-22 of the holder are in the other state and under the laws of that
232-23 state the property has escheated to or become subject to a claim of
232-24 abandonment by that state;
232-25 (3) the records of the holder were erroneous in that
232-26 they did not accurately reflect the actual owner of the property
232-27 and the last known address of the actual owner is in the other
233-1 state and under the laws of that state the property escheated to or
233-2 was subject to a claim of abandonment by that state;
233-3 (4) the property was subjected to custody by this
233-4 state under Subdivision (6) of Subsection (a) of Section 72.001 and
233-5 under the laws of the state of domicile of the holder the property
233-6 has escheated to or become subject to a claim of abandonment by
233-7 that state; or
233-8 (5) the property is the sum payable on a traveler's
233-9 check, money order, or other similar instrument that was subjected
233-10 to custody by this state under Subdivision (4) and the instrument
233-11 was purchased in the other state and under the laws of that state
233-12 the property escheated to or became subject to a claim of
233-13 abandonment by that state.
233-14 (b) The claim of another state to recover escheated or
233-15 abandoned property must be presented in a form prescribed by the
233-16 comptroller [State Treasurer], who shall decide the claim within 90
233-17 days after it is presented. The comptroller [State Treasurer]
233-18 shall allow the claim if he determines that the other state is
233-19 entitled to the abandoned property under Subsection (a).
233-20 SECTION 16.31. Section 74.509, Property Code, is amended to
233-21 read as follows:
233-22 Sec. 74.509. HANDLING FEE FOR PROCESSING UNCLAIMED PROPERTY.
233-23 The comptroller [State Treasurer] shall charge a person claiming
233-24 unclaimed property a handling fee if ownership of the property is
233-25 reinstated and the value of the property is $50 or more.
233-26 SECTION 16.32. Section 74.601, Property Code, is amended to
233-27 read as follows:
234-1 Sec. 74.601. FUND. (a) The comptroller [State Treasurer]
234-2 shall maintain a fund known as the unclaimed money fund.
234-3 (b) The comptroller [State Treasurer] shall deposit to the
234-4 credit of the fund:
234-5 (1) all funds, including marketable securities,
234-6 delivered to the comptroller [State Treasurer] under this chapter
234-7 or any other statute requiring the delivery of unclaimed property
234-8 to the comptroller [State Treasurer];
234-9 (2) all proceeds from the sale of any property,
234-10 including marketable securities, under this chapter;
234-11 (3) all funds that have escheated to the state under
234-12 Chapter 71, except that funds relating to escheated real property
234-13 shall be deposited according to Section 71.202; and
234-14 (4) any income derived from investments of the fund.
234-15 (c) The comptroller [State Treasurer] shall keep a separate
234-16 record and accounting for delivered unclaimed property, other than
234-17 money, before its sale.
234-18 (d) Except as provided by Subsection (e), the comptroller
234-19 [State Treasurer] shall from time to time invest the amount in the
234-20 unclaimed money fund in investments approved by law for the
234-21 investment of state funds.
234-22 (e) The comptroller [State Treasurer] may from time to time
234-23 sell securities in the fund, including stocks, bonds, and mutual
234-24 funds, and use the proceeds to buy, exchange, invest, or reinvest
234-25 in marketable securities. When making the investments, the
234-26 comptroller [State Treasurer] shall exercise the judgment and care
234-27 of a prudent person.
235-1 (f) The comptroller [State Treasurer] shall keep a separate
235-2 record and accounting for securities delivered, sold, purchased, or
235-3 exchanged and the proceeds and earnings from the securities.
235-4 SECTION 16.33. Section 74.602, Property Code, is amended to
235-5 read as follows:
235-6 Sec. 74.602. USE OF FUND. (a) Except as provided by
235-7 Subsection (b), the comptroller [State Treasurer] shall use the
235-8 unclaimed money fund to pay the claims of persons or states
235-9 establishing ownership of property in the possession of the
235-10 comptroller [State Treasurer] under this chapter or under any other
235-11 unclaimed property or escheat statute.
235-12 (b) Each fiscal year after deducting funds sufficient to pay
235-13 anticipated expenses and claims of the unclaimed money fund, the
235-14 comptroller [state treasurer] shall transfer:
235-15 (1) half of the balance of the unclaimed money fund to
235-16 the foundation school fund;
235-17 (2) $1.2 million to the state ethics fund;
235-18 (3) to each county of the state that requests, an
235-19 amount equal to any capital credits in the fund, less anticipated
235-20 claims, that were delivered under this chapter to the comptroller
235-21 [state treasurer] by an electric cooperative corporation on behalf
235-22 of the corporation's members in that county, with the money to be
235-23 used only to carry out a program under Section 381.004, Local
235-24 Government Code; and
235-25 (4) the remainder to the General Revenue Fund.
235-26 (c) The comptroller [State Treasurer] and the attorney
235-27 general may use the unclaimed money fund generally for the
236-1 enforcement and administration of this title, including the
236-2 expenses of sale, forms, notices, examinations, travel, court
236-3 costs, supplies, equipment, employment of necessary personnel, and
236-4 any other necessary expenses.
236-5 SECTION 16.34. Section 74.701, Property Code, is amended to
236-6 read as follows:
236-7 Sec. 74.701. RULES. The comptroller [State Treasurer] may
236-8 adopt rules necessary to carry out this title.
236-9 SECTION 16.35. Section 74.702, Property Code, is amended to
236-10 read as follows:
236-11 Sec. 74.702. EXAMINATION OF RECORDS. (a) To enforce this
236-12 chapter and to determine whether reports have been made as required
236-13 by this chapter, the comptroller [State Treasurer], the attorney
236-14 general, or an authorized agent of either, at any reasonable time,
236-15 may examine the books and records of any holder.
236-16 (b) The comptroller [State Treasurer], the attorney general,
236-17 or an agent of either may not make public any information obtained
236-18 by an examination made under this section and may not disclose that
236-19 information except in the course of a judicial proceeding,
236-20 authorized by this chapter, in which the state is a party or
236-21 pursuant to an agreement with another state allowing joint audits
236-22 or the exchange of information obtained under this section.
236-23 SECTION 16.36. Section 74.703(a), Property Code, is amended
236-24 to read as follows:
236-25 (a) The comptroller [State Treasurer] and the attorney
236-26 general may employ, in the office of either official, additional
236-27 personnel necessary to enforce this title.
237-1 SECTION 16.37. Section 74.704, Property Code, is amended to
237-2 read as follows:
237-3 Sec. 74.704. ASSISTANCE IN ENFORCEMENT. If the comptroller
237-4 [State Treasurer] or the attorney general requests, the State
237-5 Auditor, [state comptroller,] banking commissioner, securities
237-6 commissioner, insurance commissioner, savings and loan
237-7 commissioner, Credit Union Commission, Department of Public Safety,
237-8 or any district or county attorney shall assist the comptroller
237-9 [State Treasurer] or attorney general in enforcing this title.
237-10 SECTION 16.38. Sections 74.705(a) and (b), Property Code,
237-11 are amended to read as follows:
237-12 (a) A person who fails to pay or deliver property within the
237-13 time prescribed by this chapter shall pay to the comptroller [State
237-14 Treasurer] interest, at the judgment rate of interest as published
237-15 by the consumer credit commissioner in the Texas Register, on the
237-16 property or value of the property from the date the property should
237-17 have been paid or delivered until the date the property is actually
237-18 paid or delivered.
237-19 (b) If the comptroller [State Treasurer] presents a claim
237-20 for unclaimed property to a person who fails timely to pay or
237-21 deliver the property and the just amount of unclaimed property owed
237-22 has not been tendered before the 31st day after the date the claim
237-23 is presented, the comptroller [State Treasurer] may, on approval of
237-24 a court of competent jurisdiction in Travis County, recover
237-25 reasonable attorney's fees from the person in addition to unclaimed
237-26 property and interest due.
237-27 SECTION 16.39. Section 301.112(d), Property Code, is amended
238-1 to read as follows:
238-2 (d) At the request of the commission, the attorney general
238-3 shall sue to recover a civil penalty due under this section. Funds
238-4 collected under this section shall be paid to the comptroller
238-5 [state treasurer] for deposit in the state treasury to the credit
238-6 of the fair housing fund.
238-7 ARTICLE 17. CHANGES TO PARKS AND WILDLIFE CODE
238-8 SECTION 17.01. Section 11.043(d), Parks and Wildlife Code,
238-9 is amended to read as follows:
238-10 (d) The comptroller [treasurer] may invest money in the
238-11 account.
238-12 SECTION 17.02. Section 11.044, Parks and Wildlife Code, is
238-13 amended to read as follows:
238-14 Sec. 11.044. DISPOSITION OF INTEREST ON INVESTMENTS.
238-15 (a) Interest received from the investment of money in all accounts
238-16 of the department in charge of the comptroller [treasurer] shall be
238-17 allocated monthly to each account in an amount proportionate to the
238-18 amount of money invested from the account.
238-19 (b) The comptroller [treasurer] may retain from the interest
238-20 to be allocated monthly an amount equal to the necessary
238-21 administrative costs of making the allocations.
238-22 SECTION 17.03. Section 21.018, Parks and Wildlife Code, is
238-23 amended to read as follows:
238-24 Sec. 21.018. PAYMENT BY COMPTROLLER [TREASURER]. The
238-25 comptroller [state treasurer] shall pay or cause to be paid the
238-26 principal on bonds as they mature and the interest as it becomes
238-27 payable.
239-1 SECTION 17.04. Section 21.019, Parks and Wildlife Code, is
239-2 amended to read as follows:
239-3 Sec. 21.019. DUTIES ENFORCEABLE. The performance of the
239-4 official duties of the comptroller [and the treasurer] may be
239-5 enforced by mandamus or other appropriate proceeding.
239-6 SECTION 17.05. Section 21.107(a), Parks and Wildlife Code,
239-7 is amended to read as follows:
239-8 (a) If the amount credited to the sinking and interest fund
239-9 at the end of the fiscal year is insufficient to pay the interest
239-10 coming due and the principal maturing on bonds for the next fiscal
239-11 year, the comptroller [state treasurer] shall transfer from the
239-12 first money coming into the treasury, not otherwise appropriated by
239-13 the constitution, an amount stipulated in the certification of the
239-14 director as is necessary to pay the interest and principal on the
239-15 bonds.
239-16 SECTION 17.06. Section 21.111(b), Parks and Wildlife Code,
239-17 is amended to read as follows:
239-18 (b) Income derived from the fees required by this section,
239-19 less expenses incurred in collecting the fees, shall be deposited
239-20 in a special fund with the comptroller [state treasurer]. The
239-21 amounts deposited are net income.
239-22 ARTICLE 18. CHANGES TO TRANSPORTATION CODE
239-23 SECTION 18.01. Section 223.010(b), Transportation Code, is
239-24 amended to read as follows:
239-25 (b) At the request of the contractor and with the approval
239-26 of the department and the comptroller [state treasurer], the amount
239-27 retained may be deposited under a trust agreement with a state or
240-1 national bank domiciled in this state and selected by the
240-2 contractor.
240-3 SECTION 18.02. Section 256.002(a), Transportation Code, is
240-4 amended to read as follows:
240-5 (a) The comptroller [state treasurer] shall distribute to
240-6 the counties on or before October 15 of each year the money
240-7 appropriated from the county and road district highway fund for
240-8 that fiscal year.
240-9 SECTION 18.03. Sections 256.003(b) and (c), Transportation
240-10 Code, are amended to read as follows:
240-11 (b) On or before October 1 of each year the county judge of
240-12 each county shall file with the comptroller [state treasurer] a
240-13 sworn report that includes:
240-14 (1) an account of how the money allocated to the
240-15 county under Section 256.002 during the preceding year was spent;
240-16 (2) a description, including location, of any new
240-17 roads constructed in whole or part with that money; and
240-18 (3) any other information related to the
240-19 administration of Section 256.002 and this section that the
240-20 comptroller [state treasurer] requires.
240-21 (c) A county officer or employee shall provide to the
240-22 comptroller [state treasurer] on request any information necessary
240-23 to determine the legality of the use of funds allocated under
240-24 Section 256.002.
240-25 SECTION 18.04. Section 502.174(b), Transportation Code, is
240-26 amended to read as follows:
240-27 (b) The county assessor-collector shall send an assessment
241-1 collected under this section to the comptroller [state treasurer],
241-2 at the time and in the manner prescribed by the Texas Agricultural
241-3 Finance Authority, for deposit in the general revenue fund to the
241-4 credit of the young farmer loan guarantee account.
241-5 SECTION 18.05. Section 601.023, Transportation Code, is
241-6 amended to read as follows:
241-7 Sec. 601.023. PAYMENT OF STATUTORY FEES. The department may
241-8 pay:
241-9 (1) a statutory fee required by the Texas Department
241-10 of Transportation for a certified abstract or in connection with
241-11 suspension of a vehicle registration; or
241-12 (2) a statutory fee payable to the comptroller [state
241-13 treasurer] for issuance of a certificate of deposit required by
241-14 Section 601.122.
241-15 SECTION 18.06. Section 601.053(a), Transportation Code, is
241-16 amended to read as follows:
241-17 (a) As a condition of operating in this state a motor
241-18 vehicle to which Section 601.051 applies, the operator of the
241-19 vehicle on request shall provide to a peace officer, as defined by
241-20 Article 2.12, Code of Criminal Procedure, or a person involved in
241-21 an accident with the operator evidence of financial responsibility
241-22 by exhibiting:
241-23 (1) a motor vehicle liability insurance policy
241-24 covering the vehicle that satisfies Subchapter D or a photocopy of
241-25 the policy;
241-26 (2) a standard proof of motor vehicle liability
241-27 insurance form prescribed by the Texas Department of Insurance
242-1 under Section 601.081 and issued by a liability insurer for the
242-2 motor vehicle;
242-3 (3) an insurance binder that confirms the operator is
242-4 in compliance with this chapter;
242-5 (4) a surety bond certificate issued under Section
242-6 601.121;
242-7 (5) a certificate of a deposit with the comptroller
242-8 [state treasurer] covering the vehicle issued under Section
242-9 601.122;
242-10 (6) a copy of a certificate of a deposit with the
242-11 appropriate county judge covering the vehicle issued under Section
242-12 601.123; or
242-13 (7) a certificate of self-insurance covering the
242-14 vehicle issued under Section 601.124 or a photocopy of the
242-15 certificate.
242-16 SECTION 18.07. Section 601.055, Transportation Code, is
242-17 amended to read as follows:
242-18 Sec. 601.055. SUBSTITUTION OF EVIDENCE OF FINANCIAL
242-19 RESPONSIBILITY. (a) If a person who has filed evidence of
242-20 financial responsibility substitutes other evidence of financial
242-21 responsibility that complies with this chapter, and the department
242-22 accepts the other evidence, the department shall:
242-23 (1) consent to the cancellation of a bond or
242-24 certificate of insurance filed as evidence of financial
242-25 responsibility; or
242-26 (2) direct the comptroller [state treasurer] to return
242-27 money or securities deposited with the comptroller [treasurer] as
243-1 evidence of financial responsibility to the person entitled to the
243-2 return of the money or securities.
243-3 (b) The comptroller [state treasurer] shall return money or
243-4 securities deposited with the comptroller [treasurer] in accordance
243-5 with the direction of the department under Subsection (a)(2).
243-6 SECTION 18.08. Sections 601.056(a) and (d), Transportation
243-7 Code, are amended to read as follows:
243-8 (a) As provided by this section, the department, on request,
243-9 shall:
243-10 (1) consent to the cancellation of a bond or
243-11 certificate of insurance filed as evidence of financial
243-12 responsibility;
243-13 (2) direct the comptroller [state treasurer] to return
243-14 money or securities deposited with the comptroller [treasurer] as
243-15 evidence of financial responsibility to the person entitled to the
243-16 return of the money or securities; or
243-17 (3) waive the requirement of filing evidence of
243-18 financial responsibility.
243-19 (d) The comptroller [state treasurer] shall return the money
243-20 or securities as directed by the department under Subsection
243-21 (a)(2).
243-22 SECTION 18.09. Section 601.122, Transportation Code, is
243-23 amended to read as follows:
243-24 Sec. 601.122. DEPOSIT OF CASH OR SECURITIES WITH COMPTROLLER
243-25 [STATE TREASURER]. (a) A person may establish financial
243-26 responsibility by depositing $55,000 with the comptroller [state
243-27 treasurer] in:
244-1 (1) cash; or
244-2 (2) securities that:
244-3 (A) are of the type that may legally be
244-4 purchased by savings banks or trust funds; and
244-5 (B) have a market value equal to the required
244-6 amount.
244-7 (b) On receipt of the deposit, the comptroller [state
244-8 treasurer] shall issue to the person making the deposit a
244-9 certificate stating that a deposit complying with this section has
244-10 been made.
244-11 (c) The comptroller [state treasurer] may not accept the
244-12 deposit and the department may not accept the certificate unless
244-13 the deposit or certificate is accompanied by evidence that an
244-14 unsatisfied judgment of any character against the person making the
244-15 deposit does not exist in the county in which the person making the
244-16 deposit resides.
244-17 (d) The comptroller [state treasurer] shall hold a deposit
244-18 made under this section to satisfy, in accordance with this
244-19 chapter, an execution on a judgment issued against the person
244-20 making the deposit for damages that:
244-21 (1) result from the ownership, maintenance, use, or
244-22 operation of a motor vehicle after the date the deposit was made;
244-23 and
244-24 (2) are for:
244-25 (A) bodily injury to or death of any person,
244-26 including damages for care and loss of services; or
244-27 (B) damage to or destruction of property,
245-1 including the loss of use of the property.
245-2 (e) Money or securities deposited under this section are not
245-3 subject to attachment or execution unless the attachment or
245-4 execution arises out of a suit for damages described by Subsection
245-5 (d).
245-6 SECTION 18.10. Section 601.163(c), Transportation Code, is
245-7 amended to read as follows:
245-8 (c) The person depositing the security may amend in writing
245-9 the specification of the person on whose behalf the deposit is made
245-10 to include an additional person. This amendment may be made at any
245-11 time the deposit is in the custody of the department or the
245-12 comptroller [state treasurer].
245-13 SECTION 18.11. Section 601.165, Transportation Code, is
245-14 amended to read as follows:
245-15 Sec. 601.165. CUSTODY OF CASH SECURITY. The department
245-16 shall place cash deposited in compliance with this subchapter in
245-17 the custody of the comptroller [state treasurer].
245-18 SECTION 18.12. Section 621.352, Transportation Code, is
245-19 amended to read as follows:
245-20 Sec. 621.352. FEES FOR PERMITS ISSUED UNDER RECIPROCAL
245-21 AGREEMENT. (a) The commission by rule may establish fees for the
245-22 administration of Section 621.003 in an amount that, when added to
245-23 the other fees collected by the department, does not exceed the
245-24 amount sufficient to recover the actual cost to the department of
245-25 administering that section. An administrative fee collected under
245-26 this section shall be sent to the comptroller [state treasurer] for
245-27 deposit to the credit of the state highway fund and may be
246-1 appropriated only to the department for the administration of
246-2 Section 621.003.
246-3 (b) A permit fee collected by the department under Section
246-4 621.003 for another state shall be sent to the comptroller [state
246-5 treasurer] for deposit to the credit of the permit distributive
246-6 account in the general revenue fund. The comptroller [state
246-7 treasurer] shall distribute money in the permit distributive
246-8 account only to the proper authorities of other states and only as
246-9 directed by the department.
246-10 SECTION 18.13. Section 621.353(b), Transportation Code, is
246-11 amended to read as follows:
246-12 (b) The comptroller [state treasurer] shall send the amount
246-13 due each county under Subsection (a) to the county treasurer or
246-14 officer performing the function of that office at least twice each
246-15 fiscal year.
246-16 SECTION 18.14. Section 623.051(d), Transportation Code, is
246-17 amended to read as follows:
246-18 (d) Before exercising any right under a contract under this
246-19 section, a person must execute with a corporate surety authorized
246-20 to do business in this state a surety bond in an amount determined
246-21 by the commission to compensate for the cost of maintenance and
246-22 repairs as provided by this section. The bond must be approved by
246-23 the comptroller [state treasurer] and the attorney general and must
246-24 be conditioned on the person fulfilling the obligations of the
246-25 contract.
246-26 SECTION 18.15. Section 623.052(b), Transportation Code, is
246-27 amended to read as follows:
247-1 (b) Before a person may operate a vehicle under this
247-2 section, the person must:
247-3 (1) contract with the department to indemnify the
247-4 department for the cost of the maintenance and repair for damage
247-5 caused by a vehicle crossing that part of the highway; and
247-6 (2) execute an adequate surety bond to compensate for
247-7 the cost of maintenance and repair, approved by the comptroller
247-8 [state treasurer] and the attorney general, with a corporate surety
247-9 authorized to do business in this state, conditioned on the person
247-10 fulfilling each obligation of the agreement.
247-11 SECTION 18.16. Section 623.077(b), Transportation Code, is
247-12 amended to read as follows:
247-13 (b) The department shall send each fee collected under
247-14 Subsection (a) to the comptroller [state treasurer] for deposit to
247-15 the credit of the state highway fund.
247-16 SECTION 18.17. Section 623.078(b), Transportation Code, is
247-17 amended to read as follows:
247-18 (b) The department shall send each fee collected under
247-19 Subsection (a) to the comptroller [state treasurer] for deposit to
247-20 the credit of the state highway fund.
247-21 ARTICLE 19. CHANGES TO TAX CODE
247-22 SECTION 19.01. Sections 101.003(10)-(12), Tax Code, are
247-23 amended to read as follows:
247-24 (10) ["Treasurer" means the state treasurer of Texas.]
247-25 [(11)] "Report" means a tax return, declaration,
247-26 statement, or other document required to be filed with the
247-27 comptroller.
248-1 (11) [(12)] "Obligation" means the duty of a person to
248-2 pay a tax, fee, assessment, or other amount or to make, file, or
248-3 keep a report, certificate, affidavit, or other document.
248-4 SECTION 19.02. Section 101.007, Tax Code, is amended to read
248-5 as follows:
248-6 Sec. 101.007. REFERENCES TO STATE OFFICERS. A reference in
248-7 this code to the comptroller[, the treasurer,] or another officer
248-8 includes authorized representatives and employees of the officer
248-9 unless the provision indicates that only the officer is intended in
248-10 the reference.
248-11 SECTION 19.03. Section 111.019(c), Tax Code, is amended to
248-12 read as follows:
248-13 (c) The amount by which the proceeds from the sale exceed
248-14 the amount of taxes, penalties, interest, and costs shall be
248-15 disposed of by the comptroller as follows:
248-16 (1) if before the sale of the property a person who is
248-17 not the person liable for the amount and who has an interest in or
248-18 lien on the property files notice of the interest or lien with the
248-19 comptroller, the comptroller shall hold the amount of the excess
248-20 pending a determination of the rights of respective parties in the
248-21 amount of the excess by a court;
248-22 (2) if no notice is given under Subdivision (1) of
248-23 this subsection and the person liable for the amount gives a
248-24 receipt for the amount of the excess, the comptroller shall return
248-25 the amount of the excess to the person; or
248-26 (3) if no notice is given under Subdivision (1) of
248-27 this subsection and the comptroller is unable to obtain a receipt
249-1 under Subdivision (2) of this subsection, the comptroller shall
249-2 [deposit the amount of the excess with the treasurer, who shall]
249-3 hold the amount as trustee for the owner subject to the order of
249-4 the person liable for the amount or a successor of the person.
249-5 SECTION 19.04. Sections 111.053(b) and (c), Tax Code, are
249-6 amended to read as follows:
249-7 (b) Before January 1 of each year, the comptroller
249-8 [treasurer] shall publish in the Texas Register and distribute to
249-9 each state agency that receives reports or payments of any taxes a
249-10 list of the legal holidays for banking purposes for that year. The
249-11 comptroller [treasurer] may not include on the list a holiday on
249-12 which the comptroller [treasurer] determines that most financial
249-13 institutions will be conducting ordinary business.
249-14 (c) An agency that collects a tax for which a due date for a
249-15 report or payment falls on a legal holiday not included on the list
249-16 published under Subsection (b) shall ensure that a taxpayer may
249-17 make a report or payment on that date. The agency may enter into
249-18 an agreement with the [treasurer or the] comptroller for the
249-19 receipt of reports or payments on that date.
249-20 SECTION 19.05. Sections 112.053(a) and (c), Tax Code, are
249-21 amended to read as follows:
249-22 (a) A suit authorized by this subchapter must be brought
249-23 against the public official charged with the duty of collecting the
249-24 tax or fee, the comptroller [treasurer], and the attorney general.
249-25 (c) A copy of the written protest as originally filed must
249-26 be attached to the original petition filed by the person paying the
249-27 tax or fee with the court and to the copies of the original
250-1 petition served on the comptroller [treasurer], the attorney
250-2 general, and the public official charged with the duty of
250-3 collecting the tax or fee.
250-4 SECTION 19.06. Section 112.058, Tax Code, is amended by
250-5 amending the section heading and Subsection (a) to read as follows:
250-6 Sec. 112.058. SUBMISSION OF PROTEST PAYMENTS TO COMPTROLLER
250-7 [TREASURER]. (a) Except as provided in Subsections (b) and (c) of
250-8 this section, payments made under protest are to be handled as
250-9 follows:
250-10 (1) An officer who receives payments made under
250-11 protest as required by Section 112.051 of this code shall each day
250-12 send to the comptroller [treasurer] the payments, a list of the
250-13 persons making the payments, and a written statement that the
250-14 payments were made under protest.
250-15 (2) The comptroller [treasurer] shall, immediately on
250-16 receipt, credit the payments to each fund to which the tax or fee
250-17 paid under protest is allocated by law.
250-18 (3) The comptroller [treasurer] shall maintain
250-19 detailed records of payments made under protest.
250-20 (4) A payment under protest bears pro rata interest.
250-21 The pro rata interest is the amount of interest that would be due
250-22 if the amount had been placed in the suspense account of the
250-23 comptroller [treasurer].
250-24 SECTION 19.07. Section 112.059, Tax Code, is amended to read
250-25 as follows:
250-26 Sec. 112.059. DISPOSITION OF PROTEST PAYMENTS BELONGING TO
250-27 THE STATE. If a suit authorized by this subchapter is not brought
251-1 in the manner or within the time required or if the suit is
251-2 properly filed and results in a final determination that a tax
251-3 payment or a portion of a tax payment made under protest, including
251-4 the pro rata amount of interest earned on the payment, belongs to
251-5 the state, the comptroller [treasurer] shall ensure that the proper
251-6 amount has been deposited to the credit of the appropriate state
251-7 fund.
251-8 SECTION 19.08. Sections 112.060(a), (b), and (d), Tax Code,
251-9 are amended to read as follows:
251-10 (a) If a suit under this subchapter results in a final
251-11 determination that all or part of the money paid under protest was
251-12 unlawfully demanded by the public official and belongs to the
251-13 taxpayer, the comptroller [treasurer] shall credit the proper
251-14 amount, with the pro rata interest earned on that amount, against
251-15 any other amount finally determined to be due to the state from the
251-16 taxpayer according to information in the custody of the comptroller
251-17 [treasurer] and shall refund the remainder by the issuance of a
251-18 refund warrant.
251-19 (b) A refund warrant shall be written and signed by the
251-20 comptroller [and countersigned by the treasurer].
251-21 (d) The comptroller [treasurer] shall deliver [return to the
251-22 comptroller] each tax refund warrant issued[, and the comptroller
251-23 shall deliver it] to the person entitled to receive it.
251-24 SECTION 19.09. Section 112.101(d), Tax Code, is amended to
251-25 read as follows:
251-26 (d) The public official shall deliver a payment or bond
251-27 required by Subsection (a)(2) to the comptroller [treasurer]. The
252-1 comptroller [treasurer] shall deposit a payment made under
252-2 Subsection (a)(2)(A) to the credit of each fund to which the tax,
252-3 fee, or penalty is allocated by law. A payment made under
252-4 Subsection (a)(2)(A) bears pro rata interest. The pro rata
252-5 interest is the amount of interest that would be due if the amount
252-6 had been placed into the suspense account of the comptroller
252-7 [treasurer].
252-8 SECTION 19.10. Section 112.104(a), Tax Code, is amended to
252-9 read as follows:
252-10 (a) If an applicant for an order or injunction granted under
252-11 this subchapter has not filed a bond as required by Section
252-12 112.101(a)(2)(B) of this code, the applicant shall pay to the
252-13 comptroller [treasurer] all taxes, fees, and penalties to which the
252-14 order or injunction applies as those taxes, fees, and penalties
252-15 accrue and before they become delinquent. The comptroller
252-16 [treasurer] shall credit the payment to each fund to which the tax,
252-17 fee, or penalty is allocated by law.
252-18 SECTION 19.11. Section 112.106(a), Tax Code, is amended to
252-19 read as follows:
252-20 (a) If a restraining order or injunction is finally
252-21 dismissed or dissolved, the comptroller [treasurer] shall:
252-22 (1) if a bond was filed, make demand on the applicant
252-23 and the applicant's sureties for the immediate payment of all
252-24 taxes, fees, and penalties due the state; or
252-25 (2) if no bond was filed, ensure that the proper
252-26 amount of taxes, fees, and penalties has been deposited to the
252-27 credit of the proper fund to which the taxes, fees, and penalties
253-1 are allocated.
253-2 SECTION 19.12. Section 112.107, Tax Code, is amended to read
253-3 as follows:
253-4 Sec. 112.107. CREDIT OR REFUND. If the final judgment in a
253-5 suit under this subchapter maintains the right of the applicant for
253-6 a temporary or permanent injunction to prevent the assessment or
253-7 collection of the tax, the comptroller [treasurer] shall credit the
253-8 money deposited under this subchapter, with the pro rata interest
253-9 earned on the money, against any other amount finally determined to
253-10 be due to the state from the applicant according to information in
253-11 the custody of the comptroller [treasurer] and shall refund the
253-12 remainder to the applicant.
253-13 SECTION 19.13. Section 112.155(c), Tax Code, is amended to
253-14 read as follows:
253-15 (c) The plaintiff is entitled to interest on the amount of
253-16 tax included in a judgment for the plaintiff equal to the amount of
253-17 interest that would be due if the tax had been deposited in the
253-18 suspense account of the comptroller [treasurer]. The interest
253-19 accrues beginning from the date that the tax was paid until:
253-20 (1) the date that the amount is credited against the
253-21 plaintiff's tax liability; or
253-22 (2) a date determined by the comptroller that is not
253-23 sooner than 10 days before the actual date on which a refund
253-24 warrant is issued.
253-25 SECTION 19.14. Section 151.801(d), Tax Code, is amended to
253-26 read as follows:
253-27 (d) The comptroller shall determine [certify] the amount to
254-1 be deposited to the highway fund under Subsection (b) [to the
254-2 treasurer] according to available statistical data indicating the
254-3 estimated average or actual consumption or sales of lubricants used
254-4 to propel motor vehicles over the public roadways. The comptroller
254-5 shall determine [certify] the amounts to be deposited to the funds
254-6 or accounts under Subsection (c) [to the treasurer] according to
254-7 available statistical data indicating the estimated or actual total
254-8 receipts in this state from taxable sales of sporting goods. If
254-9 satisfactory data are not available, the comptroller may require
254-10 taxpayers who make taxable sales or uses of those lubricants or of
254-11 sporting goods to report to the comptroller as necessary to make
254-12 the allocation required by Subsection (b) or (c).
254-13 SECTION 19.15. Sections 154.001(5) and (15), Tax Code, are
254-14 amended to read as follows:
254-15 (5) "Counterfeit stamp" means a sticker, label, print,
254-16 tag, or token that is used or is intended to be used to simulate a
254-17 stamp and that is not authorized or issued by the comptroller
254-18 [treasurer].
254-19 (15) "Stamp" includes only a stamp that:
254-20 (A) is printed, manufactured, or made by
254-21 authority of the comptroller [treasurer];
254-22 (B) shows payment of the tax imposed by this
254-23 chapter; and
254-24 (C) is consecutively numbered and uniquely
254-25 identifiable as a Texas tax stamp.
254-26 SECTION 19.16. Section 154.024(c), Tax Code, is amended to
254-27 read as follows:
255-1 (c) The comptroller [treasurer] and the Texas Alcoholic
255-2 Beverage Commission shall make rules for the administration of this
255-3 section.
255-4 SECTION 19.17. Section 154.025(k), Tax Code, is amended to
255-5 read as follows:
255-6 (k) To the extent allowed by law, the priority claim of the
255-7 comptroller [treasurer] under 11 U.S.C. Section 507(d) for taxes
255-8 imposed by Section 154.022 is assigned to the collecting agent.
255-9 SECTION 19.18. Sections 154.042(c) and (d), Tax Code, are
255-10 amended to read as follows:
255-11 (c) If a distributor reasonably foresees that the
255-12 distributor will receive cigarettes in quantities that will make
255-13 compliance with Subsection (b) commercially impracticable in the
255-14 normal course of business, the distributor shall provide the
255-15 comptroller [treasurer], before receipt of the cigarettes, with
255-16 advance written notice of the anticipated noncompliance and a plan
255-17 for achieving compliance. On receipt of the written notice, the
255-18 comptroller [treasurer] shall review the plan and determine whether
255-19 to provide an extension of time in which the tax stamps must be
255-20 affixed after the distributor receives the cigarettes. The
255-21 comptroller [treasurer] may not unreasonably withhold an extension
255-22 of time.
255-23 (d) A plan for achieving compliance that is submitted to the
255-24 comptroller [treasurer] under Subsection (c) is confidential and
255-25 not subject to Chapter 552, Government Code.
255-26 SECTION 19.19. Section 154.043, Tax Code, is amended to read
255-27 as follows:
256-1 Sec. 154.043. SALE OF STAMPS. Except as provided in Section
256-2 154.044 of this code, only the comptroller [treasurer] may sell
256-3 cigarette stamps. The stamps may be sold only in quantities made
256-4 available by the comptroller [treasurer]. The purchaser shall
256-5 place the order for stamps directly with the comptroller
256-6 [treasurer].
256-7 SECTION 19.20. Section 154.044, Tax Code, is amended to read
256-8 as follows:
256-9 Sec. 154.044. PURCHASE FROM A DISTRIBUTOR. (a) If a
256-10 distributor does not possess sufficient unused stamps to cover the
256-11 distributor's inventory of unstamped cigarettes, the comptroller
256-12 [treasurer] may allow the distributor to purchase the required
256-13 stamps from any distributor through a requisition from the
256-14 comptroller [treasurer] so that the unstamped cigarettes may be
256-15 stamped immediately under the direction of the comptroller
256-16 [treasurer].
256-17 (b) The comptroller [treasurer] may issue the requisition.
256-18 The requisition shall be in triplicate on a form prescribed by the
256-19 comptroller [treasurer]. The copies shall be designated
256-20 "original," "duplicate," and "triplicate." The comptroller
256-21 [treasurer] shall keep the original and send the duplicate to the
256-22 purchaser and the triplicate to the seller. The purchaser and
256-23 seller shall keep their respective copies available at all times
256-24 for four years for inspection by the comptroller [treasurer] and
256-25 the attorney general.
256-26 SECTION 19.21. Section 154.045, Tax Code, is amended to read
256-27 as follows:
257-1 Sec. 154.045. RECALL BY COMPTROLLER [TREASURER]. (a) The
257-2 comptroller [treasurer] may recall unused stamps.
257-3 (b) If the comptroller [treasurer] recalls stamps, the
257-4 purchaser, on the comptroller's [treasurer's] demand, shall
257-5 surrender the stamps to the comptroller [treasurer] for exchange.
257-6 (c) If the comptroller [treasurer] recalls stamps and
257-7 receives them from the purchaser, the comptroller [treasurer] shall
257-8 issue stamps with different serial numbers for the recalled stamps.
257-9 SECTION 19.22. Sections 154.046(a) and (c), Tax Code, are
257-10 amended to read as follows:
257-11 (a) The comptroller [treasurer] shall send an original
257-12 invoice along with any stamps shipped to a distributor.
257-13 (c) The distributor shall have the original invoice
257-14 available at all times for four years for inspection by the
257-15 comptroller [treasurer] and the attorney general.
257-16 SECTION 19.23. Section 154.047, Tax Code, is amended to read
257-17 as follows:
257-18 Sec. 154.047. STAMPS SHIPPED WITH DRAFT ATTACHED. (a) A
257-19 distributor may order stamps to be shipped to a bank with which the
257-20 distributor regularly transacts business if the bank is a
257-21 designated state depository under Section 404.022, Government Code.
257-22 The comptroller [treasurer] may ship the stamps to the bank with
257-23 the invoice required by Section 154.046 and a form draft.
257-24 (b) The comptroller [treasurer] shall prescribe the form of
257-25 the draft. The draft must show:
257-26 (1) the amount of the draft;
257-27 (2) the name of the distributor;
258-1 (3) the name and address of the bank; and
258-2 (4) the date of shipment.
258-3 (c) If the draft is not paid within 20 days after the date
258-4 of the draft, the bank shall return the draft and stamps to the
258-5 comptroller [treasurer]. The comptroller [treasurer] shall notify
258-6 the distributor to appear before the comptroller [treasurer] to
258-7 show cause why the distributor should not be denied the privilege
258-8 of ordering stamps shipped with draft attached. If the distributor
258-9 fails to show good cause, the comptroller [treasurer] may stop
258-10 shipping stamps with draft attached.
258-11 SECTION 19.24. Section 154.048, Tax Code, is amended to read
258-12 as follows:
258-13 Sec. 154.048. STAMP METERS. (a) The comptroller
258-14 [treasurer] may authorize a permitted distributor to use a stamp
258-15 metering machine to impress on or to attach to each package of
258-16 cigarettes evidence of tax payment. The comptroller [treasurer]
258-17 shall adopt rules for the use of tax meter stamps.
258-18 (b) No distributor may use a tax meter stamp without
258-19 authorization from the comptroller [treasurer]. The comptroller
258-20 [treasurer] may revoke or suspend without prior notice
258-21 authorization to use tax meter stamps.
258-22 SECTION 19.25. Section 154.049, Tax Code, is amended to read
258-23 as follows:
258-24 Sec. 154.049. METER SETTINGS. A distributor using a stamp
258-25 metering machine shall submit a request for a setting on a form
258-26 furnished by the comptroller [treasurer]. The distributor shall at
258-27 his own expense send the meter with the proper payment to the
259-1 comptroller [treasurer]. The comptroller [treasurer] shall set and
259-2 return the meter, with insurance and shipping cost collect on
259-3 delivery. The comptroller [treasurer] shall keep the key to the
259-4 meter. Only the comptroller [treasurer] may remove or break the
259-5 seal on the meter. A distributor may request meter settings only
259-6 in units of 100. No distributor may request a meter setting of
259-7 more than 99,900.
259-8 SECTION 19.26. Section 154.050, Tax Code, is amended to read
259-9 as follows:
259-10 Sec. 154.050. PAYMENT. (a) The comptroller [treasurer]
259-11 shall require that payment in full for stamps or meter settings be
259-12 made within 30 days after the date stamps or a set meter and an
259-13 accompanying invoice from the comptroller [treasurer] are received
259-14 by the distributor, except that at the close of each biennium,
259-15 payment for stamps or meter settings purchased or received on or
259-16 before August 31 of that fiscal year shall be made in full on or
259-17 before August 31 of that fiscal year, providing that such payment
259-18 be received in the office of the comptroller [treasurer] no later
259-19 than August 31 of that fiscal year notwithstanding any other
259-20 statute regarding tax due dates to the contrary.
259-21 (b) The comptroller [treasurer] may not ship stamps or set a
259-22 meter without advance payment under this section unless the
259-23 distributor has satisfied all requirements imposed under Section
259-24 154.051 of this code.
259-25 (c) Payment for stamps or meter settings must be made by
259-26 cashier's check payable to the comptroller [treasurer], electronic
259-27 funds transfer to the comptroller [treasurer], or any other method
260-1 of payment authorized by the comptroller [treasurer].
260-2 (d) The dishonor of a check delivered to the comptroller
260-3 [treasurer] for payment of stamps constitutes a failure to pay the
260-4 tax when due.
260-5 SECTION 19.27. Sections 154.051(a)-(k), (n), and (o), Tax
260-6 Code, are amended to read as follows:
260-7 (a) The cigarette tax recovery trust fund is a private trust
260-8 fund established outside the state treasury and as provided by this
260-9 section secures the payment of cigarette taxes by distributors who
260-10 contribute to the fund. The fund is composed of the total amount
260-11 in the separate accounts maintained in trust for all contributing
260-12 distributors as provided by this section. The assets of the fund,
260-13 including interest earned by those assets, are to be held in trust
260-14 for the benefit and protection of the state treasury, and may not
260-15 be diverted, distributed, or appropriated for any purpose other
260-16 than as provided by this section. Interest earned by a
260-17 distributor's account but not yet refunded to the distributor
260-18 pursuant to Subsection (d) shall, on a monthly basis, be paid to
260-19 the comptroller [treasurer] as provided by Subsection (b) or
260-20 credited to the distributor's account.
260-21 (b) The comptroller [treasurer] is the trustee of the fund
260-22 as provided by Section 404.073, Government Code, and shall manage
260-23 the fund as provided by this section. In investing the assets of
260-24 the fund, the comptroller [treasurer] has the obligations, duties,
260-25 and powers provided for the investment of state funds by Sections
260-26 404.021 through 404.0245 [404.025], Government Code, and by the
260-27 orders of the State Depository Board. The comptroller [treasurer]
261-1 shall receive five percent of the interest earned on all assets of
261-2 the fund as compensation for serving as trustee of the fund.
261-3 (c) A distributor who orders stamps or requests a meter
261-4 setting from the comptroller [state treasurer] under this chapter
261-5 without advance payment shall contribute to an account maintained
261-6 in the distributor's name in the fund money in the amount of each
261-7 discount to which the distributor is entitled under Section 154.052
261-8 of this code. When the money in the distributor's account equals
261-9 20 percent of the designated amount of stamps and meter setting
261-10 requested by the distributor and approved by the comptroller
261-11 [treasurer] to be purchased in any one month, the distributor's
261-12 interest in the fund becomes vested.
261-13 (d) Except as provided by Subsection (g) of this section, on
261-14 the last day of each quarter after the quarter in which a
261-15 distributor's interest in the fund becomes vested, the comptroller
261-16 [treasurer] shall refund to the distributor all money contributed
261-17 to the fund by the distributor under Subsection (c) of this section
261-18 in the earliest preceding quarter for which a refund has not been
261-19 paid, plus interest earned on that amount, as long as the
261-20 distributor's interest in the fund remains vested.
261-21 (e) Until a distributor who orders stamps or requests a
261-22 meter setting without advance payment acquires a vested interest in
261-23 the fund, the comptroller [treasurer] may require the distributor
261-24 to post with the comptroller [treasurer] an irrevocable letter of
261-25 credit drawn in the form and amount specified by the comptroller
261-26 [treasurer] to secure the payment of cigarette taxes by that
261-27 distributor. The comptroller [treasurer] may not ship stamps to or
262-1 set a meter for a distributor not having a vested interest in the
262-2 fund without advance payment until the distributor posts the
262-3 required letter of credit.
262-4 (f) In addition to any other requirement under this section,
262-5 the comptroller [treasurer] as a condition for shipping stamps or
262-6 setting a meter without advance payment may:
262-7 (1) require a fiscal-year-end financial statement,
262-8 including a balance sheet and income statement verifiable as to its
262-9 accuracy or other financial information acceptable to the
262-10 comptroller [treasurer] and verifiable as to its accuracy;
262-11 (2) require indemnification from each officer,
262-12 director, and stockholder owning 10 percent or more of outstanding
262-13 stock, if the distributor is a corporation, from each partner, if
262-14 the distributor is a partnership, from each member or owner of a
262-15 joint venture or syndication, and from the owner of a sole
262-16 proprietorship;
262-17 (3) require the distributor to obtain and provide the
262-18 comptroller [treasurer] with a credit report from a credit
262-19 reporting agency acceptable to the comptroller [treasurer];
262-20 (4) require a distributor to increase the balance in
262-21 its account in the fund;
262-22 (5) require a distributor to post a letter of credit;
262-23 (6) reduce a distributor's credit time or amount; or
262-24 (7) take any other reasonable and necessary action to
262-25 protect the state treasury from loss due to the nonpayment of
262-26 cigarette taxes.
262-27 (g) If a distributor who has an account in the fund fails to
263-1 pay in full a tax imposed by this chapter by the due date, the
263-2 comptroller [treasurer], without prior notice to the distributor or
263-3 any other preliminary procedure, may seize any unaffixed stamps and
263-4 any stamped cigarette packages, up to and including the full amount
263-5 of unpaid tax. If the proceeds from the seizure do not satisfy the
263-6 total tax deficiency or the comptroller [treasurer] does not seize
263-7 any unaffixed stamps or stamped cigarette packages, the comptroller
263-8 [treasurer] may withdraw immediately from the fund an amount equal
263-9 to the amount of unpaid taxes due. The comptroller [treasurer]
263-10 shall first withdraw the amount from the account of the defaulting
263-11 distributor. The comptroller [treasurer] shall use the
263-12 comptroller's [treasurer's] best efforts to collect the tax due
263-13 from the defaulting distributor before withdrawing money from the
263-14 other accounts in the fund to satisfy the tax liability. If that
263-15 distributor's account does not contain sufficient money to satisfy
263-16 the tax liability in full, the comptroller [treasurer] shall
263-17 withdraw the additional amount necessary to satisfy that liability
263-18 from the other accounts in the fund in proportion to the balance of
263-19 each account, except that the withdrawal from any other
263-20 distributor's account in the fund is limited to an amount not
263-21 greater than 50 percent of the designated amount of stamps and
263-22 meter settings requested by the distributor under Subsection (c) or
263-23 of the amount required by the comptroller [treasurer] under
263-24 Subsection (f)(4). Not later than the fifth day after the date of
263-25 a withdrawal, the comptroller [treasurer] shall notify each
263-26 distributor of the withdrawal from its account and the amount
263-27 withdrawn. If as a result of a withdrawal made under this
264-1 subsection a distributor's balance in its account is reduced to an
264-2 amount less than the minimum required under this section, the
264-3 distributor's interest in the fund is no longer vested, and the
264-4 comptroller [treasurer] may discontinue refunds to the distributor
264-5 under Subsection (d) until the distributor again acquires a vested
264-6 interest in the fund. The comptroller [treasurer] may require a
264-7 distributor whose interest in the fund is no longer vested to post
264-8 an irrevocable letter of credit with the comptroller [treasurer] to
264-9 secure the payment of cigarette taxes by the distributor. To
264-10 protect the fund, each distributor having an account in the fund
264-11 must indemnify the fund against any amount withdrawn from the fund
264-12 under this subsection because of the failure of the distributor to
264-13 pay in full a tax imposed by this chapter by the due date.
264-14 (h) If distributor accounts, other than a defaulting
264-15 distributor account, are drawn pursuant to Subsection (g) of this
264-16 section, each affected, nondefaulting distributor shall have a
264-17 claim against the defaulting distributor for the amount so drawn.
264-18 The comptroller [treasurer] is hereby appointed trustee, agent, and
264-19 assignee of each affected, nondefaulting distributor for purposes
264-20 of seeking recovery of the amount so drawn. The comptroller
264-21 [treasurer] shall have the sole judgment and discretion in deciding
264-22 whether or not to pursue such a claim and shall have discretion to
264-23 handle any such claim on any basis that in the opinion of the
264-24 comptroller [treasurer] is in the best interest of the fund. The
264-25 comptroller [treasurer] is released from any liability related to
264-26 the handling of the claims described in this section except for
264-27 intentional or wilful misconduct.
265-1 (i) A distributor or person authorized to act on behalf of a
265-2 distributor may notify the comptroller [treasurer] in writing that
265-3 the distributor no longer desires to have stamps shipped or a meter
265-4 set without advance payment, and may request that the money in the
265-5 distributor's account in the fund be paid to the distributor or the
265-6 distributor's heirs or assigns. The comptroller [treasurer] shall
265-7 pay the money in the distributor's account as requested at the end
265-8 of the next quarter after all outstanding taxes owed to the state
265-9 by the distributor have been paid.
265-10 (j) Under no circumstances shall the comptroller [treasurer]
265-11 return to any distributor an amount greater than the balance in the
265-12 distributor's account within the cigarette tax recovery trust fund
265-13 less any sums drawn pursuant to Subsection (g) of this section.
265-14 The State of Texas' liability to any distributor pursuant to this
265-15 section is expressly limited to the sums on deposit in the
265-16 distributor's account at the time the request for return of funds
265-17 is made.
265-18 (k) The comptroller [treasurer] may adopt and enforce rules
265-19 necessary to carry out this section.
265-20 (n) The comptroller [treasurer] shall regularly distribute
265-21 financial information regarding the performance of the fund to
265-22 participating distributors on a regular basis. On the written
265-23 request of a participating distributor, the comptroller [treasurer]
265-24 shall provide the distributor with the name and address of each
265-25 distributor participating in the fund, the percentage of the total
265-26 fund represented by each distributor's account, and the total
265-27 amount of money in the fund.
266-1 (o) In lieu of participation in the cigarette tax recovery
266-2 trust fund to secure payment for stamps or meter settings and in
266-3 lieu of advance payment for stamps or meter settings, a distributor
266-4 may pledge to the comptroller [treasurer] sufficient collateral to
266-5 secure payment for stamps or meter settings. Such pledge shall be
266-6 evidenced by a pledge agreement in a form promulgated by the
266-7 comptroller [treasurer], and such collateral shall consist of
266-8 certificates of deposit, treasury notes, treasury bills, or other
266-9 similar types of collateral acceptable to the comptroller
266-10 [treasurer] and held in a separate trust fund established in the
266-11 Texas Treasury Safekeeping Trust Company. All interest earned on
266-12 such collateral shall belong to the distributor. The comptroller
266-13 [treasurer] may require the pledge of additional collateral in the
266-14 event the comptroller [treasurer] determines that the fair market
266-15 value of the pledged collateral is less than the amount due the
266-16 comptroller [treasurer] for stamps or meter settings. On the
266-17 written request of the distributor, the comptroller [treasurer]
266-18 shall release collateral from the pledge agreement or allow the
266-19 substitution of collateral subject to the pledge agreement if after
266-20 such release or substitution the fair market value of the
266-21 collateral subject to the pledge will be equal to or greater than
266-22 the amount due the comptroller [treasurer] for stamps or meter
266-23 settings. If a distributor fails to pay tax in full when due, the
266-24 comptroller [treasurer] may, if the distributor does not pay such
266-25 past due tax and any penalty related thereto within three days
266-26 after receipt of written notice of such failure from the
266-27 comptroller [treasurer], sell or dispose of the collateral and
267-1 apply the proceeds to the payment of taxes, interest, penalties,
267-2 and costs due to the comptroller [treasurer] by the distributor,
267-3 with any remaining proceeds being refunded to the distributor.
267-4 SECTION 19.28. Section 154.052(b), Tax Code, is amended to
267-5 read as follows:
267-6 (b) If a distributor violates a provision of this chapter,
267-7 the distributor is not entitled to receive a stamping allowance for
267-8 the period of the violation. On a determination by the comptroller
267-9 [treasurer] that the distributor is no longer in violation of a
267-10 provision of this chapter, the distributor is entitled to receive a
267-11 stamping allowance.
267-12 SECTION 19.29. Section 154.053, Tax Code, is amended to read
267-13 as follows:
267-14 Sec. 154.053. MANUFACTURE OF STAMPS. (a) The comptroller
267-15 [treasurer] shall design and have printed or manufactured cigarette
267-16 tax stamps. If the comptroller [treasurer] determines that it is
267-17 necessary for the best enforcement of this chapter, the comptroller
267-18 [treasurer] may change the design, color, or denomination of the
267-19 stamps. The comptroller [treasurer] shall determine the size,
267-20 design, color, or denomination, and quantity of stamps
267-21 manufactured. The stamps shall be manufactured so that they may be
267-22 easily and securely attached to an individual package of
267-23 cigarettes. The comptroller [treasurer] may designate the method
267-24 of identification for the stamps and shall award the contract for
267-25 the printing or manufacturing to the person submitting the bid that
267-26 will give the best protection to the state in enforcing this
267-27 chapter.
268-1 (b) The comptroller [treasurer] shall designate the date of
268-2 issue of new stamps by issuing a proclamation. The date of the
268-3 proclamation is the date of issue.
268-4 SECTION 19.30. Section 154.054, Tax Code, is amended to
268-5 read as follows:
268-6 Sec. 154.054. REDEMPTION AND DESTRUCTION OF STAMPS.
268-7 (a) The comptroller [treasurer] may redeem unused cigarette tax
268-8 stamps that were lawfully issued before a design, color, or
268-9 denomination change.
268-10 (b) The comptroller [treasurer] may destroy stamps in the
268-11 manner the comptroller [treasurer] considers best.
268-12 SECTION 19.31. Sections 154.058(a) and (b), Tax Code, are
268-13 amended to read as follows:
268-14 (a) On the effective date of a tax increase, each
268-15 distributor, wholesaler, and retailer who has 2,000 or more
268-16 cigarettes in packages stamped with stamps of an old design, color,
268-17 or denomination shall immediately inventory the packages and any
268-18 unused stamps of an old design, color, or denomination and file a
268-19 report of the inventory with the comptroller [treasurer].
268-20 (b) Not later than the 30th day after the date of the
268-21 increase, each distributor, wholesaler, and retailer shall pay the
268-22 amount of the additional tax due because of the tax increase by
268-23 attaching to the inventory a cashier's check payable to the
268-24 comptroller [treasurer], by electronic funds transfer to the
268-25 comptroller [treasurer] or by any other method of payment
268-26 authorized by the comptroller [treasurer].
268-27 SECTION 19.32. Section 154.060, Tax Code, is amended to
269-1 read as follows:
269-2 Sec. 154.060. CANCELLATION. No person may cancel, mark, or
269-3 mutilate a stamp on a package of cigarettes so that the comptroller
269-4 [treasurer] is prevented from or hindered in examining the
269-5 genuineness of the stamp.
269-6 SECTION 19.33. Sections 154.101(a) and (c)-(f), Tax Code,
269-7 are amended to read as follows:
269-8 (a) A person may not engage in business as a distributor,
269-9 wholesaler, bonded agent, or retailer unless the person has applied
269-10 for and received the applicable permit from the comptroller
269-11 [treasurer].
269-12 (c) The comptroller [treasurer] shall prescribe the form and
269-13 content of an application for a permit and shall furnish the form
269-14 on request of an applicant.
269-15 (d) The applicant shall accurately complete all information
269-16 required by the application and provide the comptroller [treasurer]
269-17 with such additional information as the comptroller [treasurer]
269-18 deems necessary.
269-19 (e) The comptroller [treasurer] may require each
269-20 corporation, association, joint venture, syndicate, partnership, or
269-21 proprietorship to furnish financial information regarding the
269-22 applicant and to provide the identity of each officer, director,
269-23 stockholder owning 10 percent or more of the outstanding stock,
269-24 partner, member, owner, or managing employee.
269-25 (f) Each distributor, wholesaler, and retailer that applies
269-26 for a permit to sell cigarettes from a vehicle must provide the
269-27 make, model, vehicle identification number, registration number,
270-1 and any other information required by the comptroller [treasurer].
270-2 SECTION 19.34. Section 154.102(a), Tax Code, is amended to
270-3 read as follows:
270-4 (a) The comptroller [treasurer] may issue a combination
270-5 permit for cigarettes and tobacco products to a person who is a
270-6 distributor, wholesaler, bonded agent, or retailer as defined by
270-7 this chapter and Chapter 155 for both cigarettes and tobacco
270-8 products.
270-9 SECTION 19.35. Section 154.107, Tax Code, is amended to read
270-10 as follows:
270-11 Sec. 154.107. DENIAL OF PERMIT. The comptroller [treasurer]
270-12 may reject an application and deny a permit if the comptroller
270-13 [treasurer] finds, after notice and opportunity for hearing, any of
270-14 the following:
270-15 (1) the premises where business will be conducted are
270-16 not adequate to protect the cigarettes or cigarette stamps; or
270-17 (2) the applicant or managing employee, or if the
270-18 applicant is a corporation, an officer, director, manager, or any
270-19 stockholder who holds directly or through family or partner
270-20 relationship 10 percent or more of the corporation's stock, or, if
270-21 the applicant is a partnership, a partner or manager:
270-22 (A) has failed to disclose any information
270-23 required by Sections 154.101(d), (e), and (f), including prior
270-24 business experience, financial condition of the permit holder,
270-25 present or previous business affiliations, prior employment, and
270-26 any conviction of a felony, or has made a false statement in the
270-27 application; or
271-1 (B) has previously violated provisions of this
271-2 chapter.
271-3 SECTION 19.36. Sections 154.110(a) and (d), Tax Code, are
271-4 amended to read as follows:
271-5 (a) The comptroller [treasurer] shall issue a permit to a
271-6 distributor, wholesaler, bonded agent, or retailer if the
271-7 comptroller [treasurer]:
271-8 (1) has received an application and fee, if required;
271-9 (2) believes that the applicant has complied with
271-10 Section 154.101; and
271-11 (3) determines that issuing the permit will not
271-12 jeopardize the administration and enforcement of this chapter.
271-13 (d) The permit must indicate the type of permit that it is
271-14 and authorize the sale of cigarettes in this state. The permit
271-15 must show that it is revocable and shall be forfeited or suspended
271-16 if the conditions of issuance, provisions of this chapter, or rules
271-17 of the comptroller [treasurer] are violated.
271-18 SECTION 19.37. Sections 154.111(b), (d), and (f), Tax Code,
271-19 are amended to read as follows:
271-20 (b) An application for a permit required by this chapter
271-21 must be accompanied by a fee of:
271-22 (1) $100 for a bonded agent's permit;
271-23 (2) $100 for a distributor's permit;
271-24 (3) $50 for a wholesaler's permit; and
271-25 (4) $15 for each permit for a vehicle if the applicant
271-26 is also applying for a permit as a bonded agent, distributor, or
271-27 wholesaler or has received a current permit from the comptroller
272-1 [treasurer] under Sections 154.101 and 154.110.
272-2 (d) For a new or renewal permit required by Section 154.101,
272-3 the comptroller [treasurer] shall prorate the fee according to the
272-4 number of months remaining during the calendar year that the permit
272-5 is to be in effect.
272-6 (f) If at the date of issuance a permit will expire within
272-7 three months, the comptroller [treasurer] may collect the prorated
272-8 permit fee or the fee for the current year and, with the consent of
272-9 the permit holder, may collect the fee for the next permit year and
272-10 issue a permit or permits for both periods, as applicable.
272-11 SECTION 19.38. Section 154.1135(c), Tax Code, is amended to
272-12 read as follows:
272-13 (c) A permit may not be issued in exchange for a check until
272-14 after the comptroller [treasurer] has received full payment on the
272-15 check.
272-16 SECTION 19.39. Sections 154.114(a)-(e) and (g), Tax Code,
272-17 are amended to read as follows:
272-18 (a) The comptroller [treasurer] may suspend or revoke a
272-19 person's permit if the comptroller [treasurer] finds, after notice
272-20 and hearing as provided by this section, that the permit holder
272-21 violated this chapter or an administrative rule made under this
272-22 chapter.
272-23 (b) If the comptroller [treasurer] intends to suspend or
272-24 revoke a permit, the comptroller [treasurer] shall provide the
272-25 permit holder with written notice that includes a statement:
272-26 (1) of the reason for the intended revocation or
272-27 suspension;
273-1 (2) that the permit holder is entitled to a hearing by
273-2 the comptroller [treasurer] on the proposed suspension or
273-3 revocation of the permit; and
273-4 (3) of the date, time, and place of the hearing.
273-5 (c) The comptroller [treasurer] shall mail the written
273-6 notice by certified mail, return receipt requested, to the permit
273-7 holder's mailing address as it appears on the comptroller's
273-8 [treasurer's] records. Service by mail is complete when the notice
273-9 is received, as evidenced by return receipt from the U. S. Postal
273-10 Service.
273-11 (d) The comptroller [treasurer] shall give the permit holder
273-12 not less than 10 days' notice of a final hearing.
273-13 (e) A permit holder may appeal the decision of the
273-14 comptroller [treasurer] to a district court in Travis County not
273-15 later than the 30th day after the date the comptroller's
273-16 [treasurer's] decision becomes final.
273-17 (g) If the comptroller [treasurer] suspends or revokes a
273-18 permit, the comptroller [treasurer] shall provide written notice of
273-19 the suspension or revocation, within a reasonable time, to each
273-20 permit holder in the state. A permit holder violates Section
273-21 154.1015(a) by selling or distributing cigarettes to a person whose
273-22 permit has been suspended or revoked only after the permit holder
273-23 receives written notice of the suspension or revocation from the
273-24 comptroller [treasurer].
273-25 SECTION 19.40. Sections 154.1141(a), (b), and (e), Tax
273-26 Code, are amended to read as follows:
273-27 (a) The comptroller [treasurer] may suspend a person's
274-1 permit without notice or a hearing for the person's failure to
274-2 comply with this chapter or a rule adopted under this chapter if
274-3 the person's continued operation constitutes an immediate and
274-4 substantial threat to the collection of taxes imposed by this
274-5 chapter and attributable to the person's operation.
274-6 (b) If the comptroller [treasurer] summarily suspends a
274-7 person's permit, proceedings for a preliminary hearing before the
274-8 comptroller [treasurer] or the comptroller's [treasurer's]
274-9 representative must be initiated simultaneously with the summary
274-10 suspension. The preliminary hearing shall be set for a date not
274-11 later than 10 days after the date of the summary suspension, unless
274-12 the parties agree to a later date.
274-13 (e) To initiate a proceeding to suspend summarily a person's
274-14 permit, the comptroller [treasurer] shall serve notice on the
274-15 permit holder informing the permit holder of the right to a
274-16 preliminary hearing before the comptroller [treasurer] or the
274-17 comptroller's [treasurer's] representative and of the time and
274-18 place of the preliminary hearing. The notice must be personally
274-19 served on the permit holder or an officer, employee, or agent of
274-20 the permit holder or sent by certified or registered mail, return
274-21 receipt requested, to the permit holder's mailing address as it
274-22 appears in the comptroller's [treasurer's] records. The notice
274-23 must state the alleged violations that constitute the grounds for
274-24 summary suspension. The suspension is effective at the time the
274-25 notice is served. If the notice is served in person, the permit
274-26 holder shall immediately surrender the permit to the comptroller
274-27 [treasurer] or the comptroller's [treasurer's] representative. If
275-1 notice is served by mail, the permit holder shall immediately
275-2 return the permit to the comptroller [treasurer].
275-3 SECTION 19.41. Section 154.1145, Tax Code, is amended to
275-4 read as follows:
275-5 Sec. 154.1145. HEARINGS. Unless otherwise provided by this
275-6 chapter, the comptroller [treasurer] shall conduct all hearings
275-7 required by this chapter in accordance with Chapter 2001,
275-8 Government Code. The comptroller [treasurer] may designate one or
275-9 more representatives to conduct the hearings and may prescribe the
275-10 rules of procedure governing the hearings.
275-11 SECTION 19.42. Section 154.116, Tax Code, is amended to
275-12 read as follows:
275-13 Sec. 154.116. COMPTROLLER [TREASURER] MAY REFUSE TO SELL
275-14 STAMPS. The comptroller [treasurer] may refuse to sell stamps to a
275-15 person who has not obtained a distributor's permit or to a
275-16 distributor who does not have a valid permit.
275-17 SECTION 19.43. Section 154.201, Tax Code, is amended to
275-18 read as follows:
275-19 Sec. 154.201. RECORD OF PURCHASE OR RECEIPT. Each
275-20 distributor, wholesaler, bonded agent, and export warehouse shall
275-21 keep records at each place of business of all cigarettes purchased
275-22 or received, including records of those cigarettes for which no tax
275-23 is due under federal law. Each retailer shall keep records at a
275-24 single location, which the retailer shall designate as its
275-25 principal place of business in this state, of all cigarettes
275-26 purchased and received. These records must include:
275-27 (1) the name and address of the shipper or carrier and
276-1 the mode of transportation;
276-2 (2) all shipping records or copies of records,
276-3 including invoices, bills of lading, waybills, freight bills, and
276-4 express receipts;
276-5 (3) the date and the name of the place of origin of
276-6 the cigarette shipment;
276-7 (4) the date and the name of the place of arrival of
276-8 the cigarette shipment;
276-9 (5) a statement of the number, kind, and price paid
276-10 for cigarettes, including cigarettes in stamped and unstamped
276-11 packages;
276-12 (6) the name, address, permit number, and tax
276-13 identification number of the seller; and
276-14 (7) any other information required by rules of the
276-15 comptroller [treasurer].
276-16 SECTION 19.44. Section 154.202, Tax Code, is amended to
276-17 read as follows:
276-18 Sec. 154.202. RECORD OF STAMPS. (a) A distributor shall
276-19 keep at each place of business in this state the invoices for all
276-20 stamps purchased or received from the comptroller [treasurer] and
276-21 records providing complete information on stamps purchased and the
276-22 disposition of the stamps.
276-23 (b) The records must show:
276-24 (1) the date of receipt of stamps purchased;
276-25 (2) the beginning and ending serial numbers and the
276-26 quantity of stamps purchased;
276-27 (3) the design, color, or denomination of stamps
277-1 purchased;
277-2 (4) the amount paid for the stamps;
277-3 (5) if stamps were sold under Section 154.044, the
277-4 name of the purchaser, the beginning and ending numbers and
277-5 quantity of stamps purchased, and the design, color, or
277-6 denomination and amount paid for the stamps;
277-7 (6) the beginning and ending serial numbers and
277-8 quantity, design, color, or denomination of and amount paid for
277-9 stamps sent to or received from the comptroller [treasurer] as an
277-10 exchange; and
277-11 (7) the inventory of stamps on hand on the first day
277-12 of each month, showing the beginning and ending serial numbers and
277-13 quantity, design, color, or denomination of, and amount paid for,
277-14 the stamps.
277-15 SECTION 19.45. Section 154.204(b), Tax Code, is amended to
277-16 read as follows:
277-17 (b) A manufacturer who sells cigarettes to a permit holder
277-18 in this state shall file with the comptroller [treasurer], on or
277-19 before the end of each month, a report showing the information
277-20 listed in Subdivisions (1), (2), (3), and (5) of Subsection (a) for
277-21 the previous month. Information related to the manufacturer's list
277-22 prices must be submitted by the manufacturer 15 days prior to any
277-23 scheduled changes.
277-24 SECTION 19.46. Section 154.205, Tax Code, is amended to
277-25 read as follows:
277-26 Sec. 154.205. MANUFACTURER'S REPRESENTATIVE'S RECORDS. A
277-27 manufacturer's representative shall retain copies of the invoices
278-1 prepared for each purchase or sale of cigarettes from or to a
278-2 permittee of the state. The manufacturer's representative shall
278-3 deliver a copy of the invoice prepared for each sale of cigarettes
278-4 to the purchaser or recipient of the cigarettes. Such records
278-5 shall be available for inspection and copying by the comptroller
278-6 [treasurer] and attorney general for four years.
278-7 SECTION 19.47. Section 154.207(b), Tax Code, is amended to
278-8 read as follows:
278-9 (b) The comptroller [treasurer] and the attorney general are
278-10 entitled to access during regular business hours to all records
278-11 pertaining to cigarettes that are transported.
278-12 SECTION 19.48. Sections 154.209(a) and (c), Tax Code, are
278-13 amended to read as follows:
278-14 (a) Each permit holder shall keep records available for
278-15 inspection and copying by the comptroller [treasurer] and the
278-16 attorney general for four years.
278-17 (c) Each permit holder who is required to keep records under
278-18 this chapter shall provide the comptroller [treasurer] with copies
278-19 of the records on demand.
278-20 SECTION 19.49. Section 154.210, Tax Code, is amended to
278-21 read as follows:
278-22 Sec. 154.210. DISTRIBUTOR'S REPORT. (a) A distributor
278-23 shall deliver to the comptroller [treasurer], on or before the 15th
278-24 day of each month, a report for the preceding month.
278-25 (b) The report must show:
278-26 (1) the date the report was made;
278-27 (2) the distributor's name and address;
279-1 (3) the month the report covers;
279-2 (4) the number of cigarettes in stamped packages and
279-3 the number of cigarettes in unstamped packages on hand at the
279-4 beginning of the month;
279-5 (5) the number of cigarettes in stamped packages and
279-6 the number of cigarettes in unstamped packages purchased and
279-7 received during the month;
279-8 (6) the number of cigarettes in stamped packages and
279-9 the number of cigarettes in unstamped packages returned by
279-10 customers or received from any other source;
279-11 (7) the number of cigarettes in stamped packages and
279-12 the number of cigarettes in unstamped packages sold, used, lost,
279-13 stolen, returned to the factory, or disposed of in any other
279-14 manner;
279-15 (8) the number of cigarettes in stamped packages and
279-16 the number of cigarettes in unstamped packages on hand at the end
279-17 of the month;
279-18 (9) the number of cigarettes sold or distributed in
279-19 interstate commerce;
279-20 (10) the number of cigarettes sold or distributed in
279-21 intrastate commerce;
279-22 (11) the beginning and ending serial numbers, design,
279-23 color, or denomination of, and amount paid for, unused stamps on
279-24 hand at the beginning of the month;
279-25 (12) the beginning and ending serial numbers, design,
279-26 color, or denomination of, and amount paid for, stamps purchased
279-27 and received;
280-1 (13) the beginning and ending serial numbers, design,
280-2 color, or denomination of, and amount paid for, stamps sold, used,
280-3 lost, stolen, exchanged, returned, or disposed of in any other
280-4 manner;
280-5 (14) the beginning and ending serial numbers, design,
280-6 color, or denomination of, and amount paid for, stamps on hand at
280-7 the end of the month;
280-8 (15) a summary schedule, on a form prescribed by the
280-9 comptroller [treasurer], identifying each receipt of cigarettes,
280-10 the date of receipt, the shipper, the invoice number, and the
280-11 quantity of cigarettes received; and
280-12 (16) any other information the comptroller [treasurer]
280-13 requires relating to cigarettes and to the payment of taxes due on
280-14 them.
280-15 (c) The comptroller [treasurer] shall prescribe the form and
280-16 content of the report.
280-17 SECTION 19.50. Section 154.211(a), Tax Code, is amended to
280-18 read as follows:
280-19 (a) A person's failure to produce the records required by
280-20 this subchapter or a person's inability to provide other proof of
280-21 tax payment, on demand by the comptroller [treasurer], is prima
280-22 facie evidence that cigarettes possessed by the person were
280-23 received for the purpose of making a first sale without payment of
280-24 the tax imposed by this chapter.
280-25 SECTION 19.51. The heading to Subchapter G, Chapter 154,
280-26 Tax Code, is amended to read as follows:
280-27 SUBCHAPTER G. ADMINISTRATION BY COMPTROLLER [TREASURER]
281-1 SECTION 19.52. Section 154.301, Tax Code, is amended to
281-2 read as follows:
281-3 Sec. 154.301. COMPLIANCE INVESTIGATION AND RECOVERY OF
281-4 COSTS. (a) If the comptroller [treasurer] has reason to believe
281-5 that a person has failed to pay a tax or penalty in the proper
281-6 manner when due, as required by this chapter, or otherwise failed
281-7 to comply with this chapter, the comptroller [treasurer] may employ
281-8 auditors and investigators to determine compliance and any amount
281-9 due. If the comptroller [treasurer] determines that the person has
281-10 not paid the tax or penalty or has failed to comply with this
281-11 chapter, the comptroller [treasurer] may require the person to pay
281-12 the reasonable expenses incurred for the compliance investigation
281-13 and audit as an additional penalty.
281-14 (b) The comptroller [treasurer] shall deposit funds paid
281-15 under this section to the credit of the general revenue fund in the
281-16 treasury to be used for making audits, conducting investigations,
281-17 or as otherwise appropriated. The comptroller [treasurer] may use
281-18 other funds available for audits as appropriated by the
281-19 legislature.
281-20 SECTION 19.53. Section 154.302, Tax Code, is amended to
281-21 read as follows:
281-22 Sec. 154.302. PAYMENT OF DOUBLE AMOUNT. (a) If the
281-23 comptroller [treasurer] finds that a person has sold unstamped
281-24 cigarettes, the comptroller [treasurer] may require the person to
281-25 pay the state through the comptroller [treasurer] a sum equal to
281-26 twice the amount of stamp tax due.
281-27 (b) If the person does not furnish the comptroller
282-1 [treasurer] evidence that enough stamps were purchased to cover
282-2 unstamped cigarettes purchased, it is presumed that the cigarettes
282-3 were sold without the proper stamps.
282-4 SECTION 19.54. Section 154.304, Tax Code, is amended to
282-5 read as follows:
282-6 Sec. 154.304. INSPECTION. (a) To determine the tax
282-7 liability of a person dealing in cigarettes or compliance by the
282-8 person with this chapter, the comptroller [treasurer] may:
282-9 (1) inspect any premises, including a vending machine
282-10 and its contents, where cigarettes are manufactured, produced,
282-11 stored, transported, sold, or offered for sale or exchange;
282-12 (2) remain on the premises as long as necessary to
282-13 determine the tax liability or compliance with this chapter;
282-14 (3) examine the records required by this chapter or
282-15 other records, books, documents, papers, accounts, and objects that
282-16 the comptroller [treasurer] determines are necessary for conducting
282-17 a complete examination; and
282-18 (4) examine stocks of cigarettes and cigarette stamps.
282-19 (b) A person dealing in cigarettes may not:
282-20 (1) fail to produce, on the comptroller's
282-21 [treasurer's] demand, records required by this chapter; or
282-22 (2) hinder or prevent the inspection of records or the
282-23 examination of the premises.
282-24 SECTION 19.55. Section 154.305, Tax Code, is amended to
282-25 read as follows:
282-26 Sec. 154.305. REFUND FOR STAMPS. (a) The comptroller
282-27 [treasurer] may provide credit or a refund on stamps that are unfit
283-1 for sale or use because of damage and on unused stamps in broken or
283-2 unbroken sheets or rolls if the stamps were properly purchased and
283-3 paid for by the person requesting the refund.
283-4 (b) The comptroller [treasurer] shall make a refund under
283-5 this section from revenue collected under this chapter before the
283-6 revenue is allocated under Subchapter J.
283-7 SECTION 19.56. Section 154.306, Tax Code, is amended to
283-8 read as follows:
283-9 Sec. 154.306. EXCHANGE OF STAMPS. The comptroller
283-10 [treasurer] may exchange or replace, without cost, stamps affixed
283-11 to a package of cigarettes if the cigarettes have become unfit for
283-12 sale, use, or consumption and have been returned to the comptroller
283-13 [treasurer] or to the manufacturer.
283-14 SECTION 19.57. Section 154.307, Tax Code, is amended to
283-15 read as follows:
283-16 Sec. 154.307. RECORDS. The comptroller [treasurer] shall
283-17 keep a record of:
283-18 (1) stamps sold by the comptroller [treasurer] or
283-19 under the comptroller's [treasurer's] direction;
283-20 (2) stamps exchanged by the comptroller [treasurer];
283-21 and
283-22 (3) refunds made on stamps purchased.
283-23 SECTION 19.58. Section 154.308, Tax Code, is amended to
283-24 read as follows:
283-25 Sec. 154.308. DEFICIENCY DETERMINATION, PENALTIES, AND
283-26 INTEREST. (a) If the comptroller [treasurer] has reasonable cause
283-27 to believe that a tax report or the amount of tax paid is
284-1 inaccurate, the comptroller [treasurer] may compute and determine
284-2 the amount of tax, penalty, and interest to be paid from
284-3 information contained in the report or from any other information
284-4 available to the comptroller [treasurer].
284-5 (b) On making a deficiency determination, the comptroller
284-6 [treasurer] shall notify the person by certified mail, return
284-7 receipt requested. Service by mail is complete when the notice is
284-8 received, as evidenced by return receipt from the U.S. Postal
284-9 Service.
284-10 SECTION 19.59. Section 154.309, Tax Code, is amended to
284-11 read as follows:
284-12 Sec. 154.309. REDETERMINATION. (a) A person who receives
284-13 notice of a deficiency determination may submit a written request
284-14 to the comptroller [treasurer] for redetermination. If the person
284-15 desires a hearing, the request for a hearing must be included in
284-16 the written request for redetermination.
284-17 (b) A written request for redetermination must be filed at
284-18 the office of the comptroller [treasurer] not later than the 15th
284-19 working day after the date notice of deficiency is received. If a
284-20 written request for redetermination is not filed as required by
284-21 this subsection, the determination is final.
284-22 (c) On receipt of a written request for redetermination, the
284-23 comptroller [treasurer] shall:
284-24 (1) review the request for redetermination if a
284-25 hearing was not requested; or
284-26 (2) provide the person against whom the deficiency
284-27 determination was made with written notice of the time, place, and
285-1 date of a redetermination hearing.
285-2 (d) The comptroller [treasurer] shall give notice of a
285-3 redetermination hearing by certified mail, return receipt
285-4 requested. Service by mail is complete when the notice is
285-5 received, as evidenced by return receipt from the U.S. Postal
285-6 Service.
285-7 SECTION 19.60. Section 154.403, Tax Code, is amended to
285-8 read as follows:
285-9 Sec. 154.403. SEIZURE. (a) The comptroller [treasurer]
285-10 with or without process may seize:
285-11 (1) cigarettes taxed under this chapter that are
285-12 possessed or controlled by a person for the purpose of selling or
285-13 removing the cigarettes in violation of this chapter;
285-14 (2) cigarettes that are removed, deposited, or
285-15 concealed by a person intending to avoid payment of taxes imposed
285-16 by this chapter;
285-17 (3) an automobile, boat, conveyance, or other type of
285-18 vehicle used to remove or transport cigarettes by a person
285-19 intending to avoid payment of taxes imposed by this chapter; and
285-20 (4) equipment, paraphernalia, or other tangible
285-21 personal property used by a person intending to avoid payment of
285-22 taxes imposed by this chapter found in the place where the
285-23 cigarettes are found.
285-24 (b) An item seized under this section is forfeited to the
285-25 state and remains in the custody of the comptroller [treasurer] for
285-26 disposition as provided by this chapter. The seized item is not
285-27 subject to replevin.
286-1 SECTION 19.61. Section 154.404, Tax Code, is amended to
286-2 read as follows:
286-3 Sec. 154.404. COMPTROLLER'S [TREASURER'S] REPORT. (a) If
286-4 the comptroller [treasurer] seizes property under Section 154.403,
286-5 the comptroller [treasurer] shall immediately make a written report
286-6 showing:
286-7 (1) the name of the person making the seizure;
286-8 (2) the place where the property was seized;
286-9 (3) the person from whom the property was seized; and
286-10 (4) an inventory of the property seized.
286-11 (b) The comptroller [treasurer] shall prepare the report in
286-12 duplicate. The person who seized the property shall sign the
286-13 report. The comptroller [treasurer] shall give the original to the
286-14 person from whom the property was seized and shall file a duplicate
286-15 copy open for public inspection in the comptroller's [treasurer's]
286-16 office.
286-17 SECTION 19.62. Sections 154.4045(b), (d), and (e), Tax
286-18 Code, are amended to read as follows:
286-19 (b) If the seized cigarettes are in a salable condition, the
286-20 comptroller [treasurer] may sell the cigarettes, return the
286-21 cigarettes to the manufacturer for credit, or destroy or dispose of
286-22 the cigarettes.
286-23 (d) The comptroller [treasurer] shall place the proceeds
286-24 from the sale of seized cigarettes in escrow in a treasury suspense
286-25 account pending the outcome of the forfeiture proceeding provided
286-26 for in this chapter.
286-27 (e) If a determination is made that the comptroller
287-1 [treasurer] wrongfully seized the cigarettes, the person entitled
287-2 to the cigarettes at the time of seizure may recover the money held
287-3 in escrow in the treasury suspense account.
287-4 SECTION 19.63. Sections 154.405(b), (c), and (d), Tax Code,
287-5 are amended to read as follows:
287-6 (b) The comptroller [treasurer] shall give the notice by
287-7 certified mail, return receipt requested, not later than the 15th
287-8 day after the date of seizure and include with the notice an
287-9 inventory of the property seized and a statement of the date, time,
287-10 and place of a hearing on the seizure. Service by mail is complete
287-11 when the notice is received, as evidenced by return receipt from
287-12 the U.S. Postal Service.
287-13 (c) After providing the notice and a hearing under
287-14 Subsection (b), the comptroller [treasurer] may order the
287-15 forfeiture to the state of any property seized under this chapter
287-16 or the proceeds of the sale of any cigarettes seized under this
287-17 chapter if the property was used, controlled, possessed, or
287-18 concealed for the purpose of violating any provision of this
287-19 chapter.
287-20 (d) The comptroller [treasurer] shall hold property or
287-21 proceeds forfeited under this section in escrow until the
287-22 comptroller's [treasurer's] determination is final and the period
287-23 for filing a petition for judicial review has expired.
287-24 SECTION 19.64. Section 154.406, Tax Code, is amended to
287-25 read as follows:
287-26 Sec. 154.406. DISPOSITION OF FORFEITED PROPERTY. (a) The
287-27 comptroller [treasurer] may sell property forfeited to the state at
288-1 public or private sale in any commercially reasonable manner.
288-2 (b) Subject to the provisions of Section 154.413, the
288-3 comptroller [treasurer] shall deposit the sale proceeds, less
288-4 expenses of seizure, court costs, and any investigation and audit
288-5 costs, in the state treasury.
288-6 (c) The comptroller [treasurer] shall use the sale proceeds
288-7 to operate and administer the cigarette tax program up to the
288-8 amount appropriated by the legislature for this purpose. The
288-9 comptroller [treasurer] shall allocate any sale proceeds that
288-10 exceed the legislative appropriation as provided by Subchapter J.
288-11 Any unused appropriations remain in the general revenue fund.
288-12 SECTION 19.65. Section 154.411, Tax Code, is amended to
288-13 read as follows:
288-14 Sec. 154.411. WAIVER PERMITTED. (a) The comptroller
288-15 [treasurer] may waive a forfeiture proceeding for property seized
288-16 under Section 154.403 of this code if the owner or possessor of the
288-17 property:
288-18 (1) affixes the required stamp to the individual
288-19 packages of cigarettes; and
288-20 (2) in addition to the value of the stamps required to
288-21 be affixed, pays to the state through the comptroller [treasurer] a
288-22 sum equal to the value of the required stamps.
288-23 (b) The comptroller [treasurer] may make a compromise with a
288-24 person before or after a claim is filed in court. The comptroller
288-25 [treasurer] shall keep a record open for public inspection of
288-26 compromises and waivers of forfeiture made under this section.
288-27 SECTION 19.66. Section 154.412, Tax Code, is amended to
289-1 read as follows:
289-2 Sec. 154.412. PAYMENT TO TREASURY. The comptroller
289-3 [treasurer] shall deposit all taxes collected under Section
289-4 154.411, after payment of costs, in the treasury to be allocated as
289-5 provided by Subchapter J.
289-6 SECTION 19.67. Section 154.414(a), Tax Code, is amended to
289-7 read as follows:
289-8 (a) The comptroller [treasurer] may enter into a reciprocal
289-9 agreement with a tax official of another state or an official of
289-10 the United States allowing the exchange of information received by,
289-11 recorded by, prepared by, furnished to, or collected by the
289-12 comptroller [treasurer] with respect to the investigation and
289-13 enforcement of this chapter for any tax, penalty, interest, fine,
289-14 forfeiture, or offense.
289-15 SECTION 19.68. Section 154.415, Tax Code, is amended to
289-16 read as follows:
289-17 Sec. 154.415. ADDITIONAL ENFORCEMENT POWERS. (a) The
289-18 comptroller [treasurer] has all of the rights and powers granted
289-19 the comptroller in Chapters 111 and 113 of this code with respect
289-20 to the tax imposed by this chapter. Those rights and powers are in
289-21 addition to those granted the comptroller [treasurer] in this
289-22 chapter.
289-23 (b) The comptroller [treasurer] may accept gifts, grants,
289-24 and donations for the administration and enforcement of this
289-25 chapter.
289-26 SECTION 19.69. Section 154.501(a), Tax Code, is amended to
289-27 read as follows:
290-1 (a) A person violates this chapter if the person:
290-2 (1) is a distributor, wholesaler, manufacturer, bonded
290-3 agent, manufacturer's representative, or retailer and fails to keep
290-4 records required by this chapter;
290-5 (2) engages in the business of a bonded agent,
290-6 distributor, wholesaler, or retailer without a valid permit;
290-7 (3) is a distributor, wholesaler, manufacturer, bonded
290-8 agent, or retailer and fails to make a report or makes a false or
290-9 incomplete report or application required by this chapter to the
290-10 comptroller [treasurer]; or
290-11 (4) is a person affected by this chapter and fails or
290-12 refuses to abide by or violates a provision of this chapter or a
290-13 rule adopted by the comptroller [treasurer] under this chapter.
290-14 SECTION 19.70. Section 154.507, Tax Code, is amended to
290-15 read as follows:
290-16 Sec. 154.507. MISLEADING THE COMPTROLLER [TREASURER]. A
290-17 person commits an offense if the person misleads the comptroller
290-18 [treasurer] in the enforcement of this chapter.
290-19 SECTION 19.71. Section 154.508, Tax Code, is amended to
290-20 read as follows:
290-21 Sec. 154.508. REFUSING TO SURRENDER CIGARETTES. A person
290-22 commits an offense if the person refuses to surrender to the
290-23 comptroller [treasurer] on demand cigarettes possessed in violation
290-24 of this chapter.
290-25 SECTION 19.72. Section 154.5095, Tax Code, is amended to
290-26 read as follows:
290-27 Sec. 154.5095. FINGERPRINTS [ACCESS TO CRIMINAL HISTORY
291-1 INFORMATION]. [(b)] The comptroller [treasurer] may refuse to
291-2 grant a permit or may revoke or suspend a permit if the applicant
291-3 or permit holder fails, on request, to provide a complete set of
291-4 fingerprints required for searching the Federal Bureau of
291-5 Investigation identification division files.
291-6 SECTION 19.73. Section 154.512, Tax Code, is amended to
291-7 read as follows:
291-8 Sec. 154.512. INSPECTION OF PREMISES. A person commits an
291-9 offense if the person refuses to permit a complete inspection by an
291-10 authorized representative of the comptroller [treasurer] of any
291-11 premises where cigarettes are manufactured, produced, stored,
291-12 transported, sold, or offered for sale or exchange, or fails to
291-13 produce, on the comptroller's [treasurer's] demand, records
291-14 required by this chapter.
291-15 SECTION 19.74. Section 154.514, Tax Code, is amended to read
291-16 as follows:
291-17 Sec. 154.514. SALE OF STAMPS. A person commits an offense
291-18 if the person, without having the requisition from the comptroller
291-19 [treasurer] as provided by Section 154.044 of this code:
291-20 (1) purchases stamps from a person other than the
291-21 comptroller [treasurer]; or
291-22 (2) sells lawfully issued stamps to a person other
291-23 than the comptroller [treasurer].
291-24 SECTION 19.75. Section 154.516, Tax Code, is amended to read
291-25 as follows:
291-26 Sec. 154.516. BOOKS AND RECORDS. A person commits an
291-27 offense if the person:
292-1 (1) knowingly makes, delivers to, and files with the
292-2 comptroller [treasurer] a false return or report or an incomplete
292-3 return or report;
292-4 (2) knowingly fails to make and deliver to the
292-5 comptroller [treasurer] a return or report as required by this
292-6 chapter;
292-7 (3) destroys, mutilates, or conceals a book or record
292-8 required by this chapter;
292-9 (4) refuses to permit the attorney general or the
292-10 comptroller [treasurer] to inspect and audit books and records that
292-11 are required by this chapter or that are incidental to the conduct
292-12 of the cigarette business;
292-13 (5) knowingly makes a false entry or fails to make
292-14 entries in the books and records as required by this chapter; or
292-15 (6) fails to keep books and records for four years as
292-16 required by this chapter.
292-17 SECTION 19.76. Section 154.602, Tax Code, is amended to read
292-18 as follows:
292-19 Sec. 154.602. FUNDS FOR ENFORCEMENT. The legislature may
292-20 appropriate money from the cigarette tax to the comptroller
292-21 [treasurer] for manufacturing and printing of cigarette tax stamps
292-22 and for the administration of the duties of the comptroller
292-23 [treasurer] under this chapter. Amounts appropriated under this
292-24 subsection shall be taken from revenue received from the cigarette
292-25 tax before the revenue is allocated under Section 154.603 of this
292-26 code to the funds specified by that section and shall be deposited
292-27 to the credit of the treasury fiscal agency fund.
293-1 SECTION 19.77. Section 155.023(a), Tax Code, is amended to
293-2 read as follows:
293-3 (a) A distributor shall pay the tax on tobacco products
293-4 received for the purpose of making a first sale at the time the
293-5 distributor files the report required by Section 155.111. A
293-6 distributor shall pay the tax by cashier's check payable to the
293-7 comptroller [treasurer], by electronic funds transfer to the
293-8 comptroller [treasurer] or by any other method of payment
293-9 authorized by the comptroller [treasurer].
293-10 SECTION 19.78. Sections 155.041(a) and (c)-(f), Tax Code,
293-11 are amended to read as follows:
293-12 (a) A person may not engage in business as a distributor,
293-13 wholesaler, bonded agent, or retailer unless the person has applied
293-14 for and received the applicable permit from the comptroller
293-15 [treasurer].
293-16 (c) The comptroller [treasurer] shall prescribe the form and
293-17 content of an application for a permit and shall furnish the form
293-18 on request of an applicant.
293-19 (d) The applicant shall accurately complete all information
293-20 required by the application and provide the comptroller [treasurer]
293-21 with additional information the comptroller [treasurer] considers
293-22 necessary.
293-23 (e) The comptroller [treasurer] may require each
293-24 corporation, association, joint venture, syndicate, partnership, or
293-25 proprietorship to furnish financial information regarding the
293-26 applicant and to provide the identity of each officer, director,
293-27 stockholder owning 10 percent or more of the outstanding stock,
294-1 partner, member, owner, or managing employee.
294-2 (f) Each distributor, wholesaler, and retailer that applies
294-3 for a permit to sell tobacco products from a vehicle must provide
294-4 the make, model, vehicle identification number, registration
294-5 number, and any other information required by the comptroller
294-6 [treasurer].
294-7 SECTION 19.79. Section 155.045, Tax Code, is amended to read
294-8 as follows:
294-9 Sec. 155.045. COMBINATION PERMIT. The comptroller
294-10 [treasurer] may issue a combination permit for cigarettes and
294-11 tobacco products under Section 154.102. A person who receives a
294-12 combination permit is subject to the provisions of this chapter in
294-13 the same manner as a person holding a single permit under this
294-14 chapter.
294-15 SECTION 19.80. Sections 155.048(a) and (d), Tax Code, are
294-16 amended to read as follows:
294-17 (a) The comptroller [treasurer] shall issue a permit to a
294-18 distributor, wholesaler, bonded agent, or retailer if the
294-19 comptroller [treasurer]:
294-20 (1) has received an application and fee, if required;
294-21 (2) does not reject the application and deny the
294-22 permit under Section 155.0481; and
294-23 (3) determines that issuing the permit will not
294-24 jeopardize the administration and enforcement of this chapter.
294-25 (d) The permit must indicate the type of permit that it is
294-26 and authorize the sale of tobacco products in this state. The
294-27 permit must show that it is revocable and shall be forfeited or
295-1 suspended if the conditions of issuance, provisions of this
295-2 chapter, or rules of the comptroller [treasurer] are violated.
295-3 SECTION 19.81. Section 155.0481, Tax Code, is amended to
295-4 read as follows:
295-5 Sec. 155.0481. DENIAL OF PERMIT. The comptroller
295-6 [treasurer] may reject an application and deny a permit if the
295-7 comptroller [treasurer] finds, after notice and opportunity for
295-8 hearing, any of the following:
295-9 (1) the premises where business will be conducted are
295-10 not adequate to protect the tobacco products; or
295-11 (2) the applicant or managing employee, or, if the
295-12 applicant is a corporation, an officer, director, manager, or any
295-13 stockholder who holds directly or through family or partner
295-14 relationship 10 percent or more of the corporation's stock, or, if
295-15 the applicant is a partnership, a partner or manager:
295-16 (A) has failed to disclose any information
295-17 required by Sections 155.041(d), (e), and (f), including prior
295-18 business experience, financial condition of the permit holder,
295-19 present or previous business affiliations, prior employment, and
295-20 any conviction of a felony, or has made a false statement in the
295-21 application; or
295-22 (B) has previously violated provisions of this
295-23 chapter.
295-24 SECTION 19.82. Sections 155.049(b), (d), and (f), Tax Code,
295-25 are amended to read as follows:
295-26 (b) An application for a permit required by this chapter
295-27 must be accompanied by a fee of:
296-1 (1) $100 for a bonded agent's permit;
296-2 (2) $100 for a distributor's permit;
296-3 (3) $50 for a wholesaler's permit; and
296-4 (4) $15 for each permit for a vehicle if the applicant
296-5 is also applying for a permit as a bonded agent, distributor, or
296-6 wholesaler or has received a current permit from the comptroller
296-7 [treasurer] under Sections 155.041 and 155.048.
296-8 (d) For a new or renewal permit required by Section 155.041,
296-9 the comptroller [treasurer] shall prorate the fee according to the
296-10 number of months remaining during the calendar year that the permit
296-11 is to be in effect.
296-12 (f) If at the date of issuance a permit will expire within
296-13 three months, the comptroller [treasurer] may collect the prorated
296-14 permit fee or the fee for a current year and, with the consent of
296-15 the permit holder, may collect the fee for the next permit year and
296-16 issue a permit or permits for both periods, as applicable.
296-17 SECTION 19.83. Section 155.050(c), Tax Code, is amended to
296-18 read as follows:
296-19 (c) A permit may not be issued in exchange for a check until
296-20 after the comptroller [treasurer] has received full payment on the
296-21 check.
296-22 SECTION 19.84. Sections 155.059(a)-(e) and (g), Tax Code,
296-23 are amended to read as follows:
296-24 (a) The comptroller [treasurer] may revoke or suspend a
296-25 person's permit if the comptroller [treasurer] finds, after notice
296-26 and hearing as provided by this section, that the permit holder
296-27 violated this chapter or an administrative rule made under this
297-1 chapter.
297-2 (b) If the comptroller [treasurer] intends to suspend or
297-3 revoke a permit, the comptroller [treasurer] shall provide the
297-4 permit holder with written notice that includes a statement:
297-5 (1) of the reason for the intended revocation or
297-6 suspension;
297-7 (2) that the permit holder is entitled to a hearing by
297-8 the comptroller [treasurer] on the proposed suspension or
297-9 revocation; and
297-10 (3) of the date, time, and place of the hearing.
297-11 (c) The comptroller [treasurer] shall mail the written
297-12 notice by certified mail, return receipt requested, to the permit
297-13 holder's mailing address as it appears in the comptroller's
297-14 [treasurer's] records. Service by mail is complete when the notice
297-15 is received, as evidenced by the return receipt from the United
297-16 States Postal Service.
297-17 (d) The comptroller [treasurer] shall give the permit holder
297-18 not less than 10 days' notice of a final hearing.
297-19 (e) A permit holder may appeal the decision of the
297-20 comptroller [treasurer] to a district court in Travis County not
297-21 later than the 30th day after the date the comptroller's
297-22 [treasurer's] decision becomes final.
297-23 (g) If the comptroller [treasurer] suspends or revokes a
297-24 permit, the comptroller [treasurer] shall provide written notice of
297-25 the suspension or revocation, within a reasonable time, to each
297-26 permit holder in the state. A permit holder violates Section
297-27 155.0415(a) by selling or distributing tobacco products to a person
298-1 whose permit has been suspended or revoked only after the permit
298-2 holder receives written notice of the suspension or revocation from
298-3 the comptroller [treasurer].
298-4 SECTION 19.85. Sections 155.0591(a), (b), and (e), Tax Code,
298-5 are amended to read as follows:
298-6 (a) The comptroller [treasurer] may suspend a person's
298-7 permit without notice or a hearing for the person's failure to
298-8 comply with this chapter or a rule adopted under this chapter if
298-9 the person's continued operation constitutes an immediate and
298-10 substantial threat to the collection of taxes imposed by this
298-11 chapter and attributable to the person's operation.
298-12 (b) If the comptroller [treasurer] summarily suspends a
298-13 person's permit, proceedings for a preliminary hearing before the
298-14 comptroller [treasurer] or the comptroller's [treasurer's]
298-15 representative must be initiated simultaneously with the summary
298-16 suspension. The preliminary hearing shall be set for a date not
298-17 later than 10 days after the date of the summary suspension, unless
298-18 the parties agree to a later date.
298-19 (e) To initiate a proceeding to suspend summarily a person's
298-20 permit, the comptroller [treasurer] shall serve notice on the
298-21 permit holder informing the permit holder of the right to a
298-22 preliminary hearing before the comptroller [treasurer] or the
298-23 comptroller's [treasurer's] representative and of the time and
298-24 place of the preliminary hearing. The notice must be personally
298-25 served on the permit holder or an officer, employee, or agent of
298-26 the permit holder or sent by certified or registered mail, return
298-27 receipt requested, to the permit holder's mailing address as it
299-1 appears in the comptroller's [treasurer's] records. The notice
299-2 must state the alleged violations that constitute the grounds for
299-3 summary suspension. The suspension is effective at the time the
299-4 notice is served. If notice is served in person, the permit holder
299-5 shall immediately surrender the permit to the comptroller
299-6 [treasurer]. If notice is served by mail, the permit holder shall
299-7 immediately return the permit to the comptroller [treasurer].
299-8 SECTION 19.86. Section 155.0595, Tax Code, is amended to
299-9 read as follows:
299-10 Sec. 155.0595. HEARINGS. Unless otherwise provided by this
299-11 chapter, the comptroller [treasurer] shall conduct all hearings
299-12 required by this chapter in accordance with Chapter 2001,
299-13 Government Code. The comptroller [treasurer] may designate one or
299-14 more representatives to conduct the hearings and may prescribe the
299-15 rules of procedure governing the hearings.
299-16 SECTION 19.87. Section 155.101, Tax Code, is amended to read
299-17 as follows:
299-18 Sec. 155.101. RECORD OF PURCHASE OR RECEIPT. Each
299-19 distributor, wholesaler, bonded agent, and export warehouse shall
299-20 keep records at each place of business of all tobacco products
299-21 purchased or received. Each retailer shall keep records at a
299-22 single location, which the retailer shall designate as its
299-23 principal place of business in the state, of all tobacco products
299-24 purchased and received. These records must include:
299-25 (1) the name and address of the shipper or carrier and
299-26 the mode of transportation;
299-27 (2) all shipping records or copies of records,
300-1 including invoices, bills of lading, waybills, freight bills, and
300-2 express receipts;
300-3 (3) the date and the name of the place of origin of
300-4 the tobacco product shipment;
300-5 (4) the date and the name of the place of arrival of
300-6 the tobacco product shipment;
300-7 (5) a statement of the number, kind, and price paid
300-8 for the tobacco products;
300-9 (6) the name, address, permit number, and tax
300-10 identification number of the seller; and
300-11 (7) any other information required by rules of the
300-12 comptroller [treasurer].
300-13 SECTION 19.88. Section 155.103(b), Tax Code, is amended to
300-14 read as follows:
300-15 (b) A manufacturer who sells tobacco products to a permit
300-16 holder in this state shall file with the comptroller [treasurer],
300-17 on or before the 15th day of each month, a report showing the
300-18 information listed in Subsection (a) for the previous month.
300-19 SECTION 19.89. Section 155.107(b), Tax Code, is amended to
300-20 read as follows:
300-21 (b) The comptroller [treasurer] and the attorney general are
300-22 entitled to access during regular business hours to all records
300-23 pertaining to tobacco products that are transported.
300-24 SECTION 19.90. Sections 155.110(a) and (c), Tax Code, are
300-25 amended to read as follows:
300-26 (a) Each permit holder shall keep records available for
300-27 inspection and copying by the comptroller [treasurer] and the
301-1 attorney general for four years.
301-2 (c) Each permit holder who is required to keep records under
301-3 this chapter shall provide the comptroller [treasurer] with copies
301-4 of the records on demand.
301-5 SECTION 19.91. Section 155.111, Tax Code, is amended to read
301-6 as follows:
301-7 Sec. 155.111. DISTRIBUTOR'S REPORT. (a) A distributor
301-8 shall file with the comptroller [treasurer] on or before the 30th
301-9 day of each month, a report for the preceding month.
301-10 (b) The report must show:
301-11 (1) the date the report was made;
301-12 (2) the distributor's name and address;
301-13 (3) the month the report covers;
301-14 (4) the amount of tobacco products purchased,
301-15 received, and acquired;
301-16 (5) the amount of tobacco products sold, distributed,
301-17 used, lost, or otherwise disposed of;
301-18 (6) the amount of tobacco products on hand at the
301-19 beginning and the end of the month; and
301-20 (7) any other information the comptroller [treasurer]
301-21 requires relating to tobacco products and to the payment of taxes
301-22 due on them.
301-23 (c) The comptroller [treasurer] shall prescribe the form and
301-24 content of the report.
301-25 SECTION 19.92. Section 155.112(a), Tax Code, is amended to
301-26 read as follows:
301-27 (a) A person's failure to produce the records required by
302-1 this subchapter or a person's inability to provide other proof of
302-2 tax payment, on demand by the comptroller [treasurer], is prima
302-3 facie evidence that tobacco products possessed by the person were
302-4 received for the purpose of making a first sale without payment of
302-5 the tax imposed by this chapter.
302-6 SECTION 19.93. Section 155.141, Tax Code, is amended to read
302-7 as follows:
302-8 Sec. 155.141. ENFORCEMENT POWERS. (a) The comptroller
302-9 [treasurer] has all of the rights and powers granted the
302-10 comptroller in Chapters 111 and 113 of this code with respect to
302-11 the tax imposed by this chapter. Those rights and powers are in
302-12 addition to those granted the comptroller [treasurer] in this
302-13 chapter.
302-14 (b) The comptroller [treasurer] may accept gifts, grants,
302-15 and donations for the administration and enforcement of this
302-16 chapter.
302-17 SECTION 19.94. Section 155.143, Tax Code, is amended to read
302-18 as follows:
302-19 Sec. 155.143. SEIZURE. (a) The comptroller [treasurer]
302-20 with or without process may seize:
302-21 (1) tobacco products taxed under this chapter that are
302-22 possessed or controlled by a person for the purpose of selling or
302-23 removing the tobacco products in violation of this chapter;
302-24 (2) tobacco products that are removed, deposited, or
302-25 concealed by a person intending to avoid payment of taxes imposed
302-26 by this chapter;
302-27 (3) an automobile, truck, boat, conveyance, or other
303-1 type of vehicle used to remove or transport tobacco products by a
303-2 person intending to avoid payment of taxes imposed by this chapter;
303-3 and
303-4 (4) equipment, paraphernalia, or other tangible
303-5 personal property used by a person intending to avoid payment of
303-6 taxes imposed by this chapter found in the place where the tobacco
303-7 products are found.
303-8 (b) An item seized under this section is forfeited to the
303-9 state and remains in the custody of the comptroller [treasurer] for
303-10 disposition as provided by this chapter. The seized item is not
303-11 subject to replevin.
303-12 SECTION 19.95. Section 155.144, Tax Code, is amended to read
303-13 as follows:
303-14 Sec. 155.144. COMPTROLLER'S [TREASURER'S] REPORT. (a) If
303-15 the comptroller [treasurer] seizes property under Section 155.143,
303-16 the comptroller [treasurer] shall immediately make a written report
303-17 showing:
303-18 (1) the name of the person making the seizure;
303-19 (2) the place where the property was seized;
303-20 (3) the person from whom the property was seized; and
303-21 (4) an inventory of the property seized.
303-22 (b) The comptroller [treasurer] shall prepare the report in
303-23 duplicate. The person who seized the property shall sign the
303-24 report. The comptroller [treasurer] shall give the original to the
303-25 person from whom the property was seized and shall file a duplicate
303-26 copy open for public inspection in the comptroller's [treasurer's]
303-27 office.
304-1 SECTION 19.96. Sections 155.1445(b), (d), and (e), Tax Code,
304-2 are amended to read as follows:
304-3 (b) If the seized tobacco products are in a salable
304-4 condition, the comptroller [treasurer] may sell the tobacco
304-5 products, return the tobacco products to the manufacturer for
304-6 credit, or destroy or dispose of the tobacco products.
304-7 (d) The comptroller [treasurer] shall place the proceeds
304-8 from the sale of seized tobacco products in escrow in a treasury
304-9 suspense account, pending the outcome of the forfeiture proceeding
304-10 provided for in this chapter.
304-11 (e) If a determination is made that the comptroller
304-12 [treasurer] wrongfully seized the tobacco products, the person
304-13 entitled to the tobacco products at the time of seizure may recover
304-14 the money held in escrow in the treasury suspense account.
304-15 SECTION 19.97. Sections 155.145(b), (c), and (d), Tax Code,
304-16 are amended to read as follows:
304-17 (b) The comptroller [treasurer] shall give the notice by
304-18 certified mail, return receipt requested, not later than the 15th
304-19 day after the date of seizure and shall include with the notice an
304-20 inventory of the property seized and a statement of the date, time,
304-21 and place of a hearing on the seizure. Service by mail is complete
304-22 when the notice is received, as evidenced by return receipt from
304-23 the U.S. Postal Service.
304-24 (c) After providing the notice and a hearing under
304-25 Subsection (b), the comptroller [treasurer] may order the
304-26 forfeiture to the state of any property seized under this chapter
304-27 or the proceeds of the sale of any tobacco products seized under
305-1 this chapter if the comptroller [treasurer] finds that the property
305-2 was used, controlled, possessed, or concealed for the purpose of
305-3 violating any provision of this chapter.
305-4 (d) The comptroller [treasurer] shall hold property or
305-5 proceeds forfeited under this section in escrow until the
305-6 comptroller's [treasurer's] determination is final and the period
305-7 for filing a petition for judicial review has expired.
305-8 SECTION 19.98. Section 155.1451, Tax Code, is amended to
305-9 read as follows:
305-10 Sec. 155.1451. DISPOSITION OF FORFEITED PROPERTY. (a) The
305-11 comptroller [treasurer] may sell property forfeited to the state at
305-12 public or private sale in any commercially reasonable manner.
305-13 (b) Subject to the provisions of Section 155.153, the
305-14 comptroller [treasurer] shall deposit the sale proceeds, less
305-15 expenses of seizure, court costs, and any investigation and audit
305-16 costs, in the state treasury.
305-17 (c) The comptroller [treasurer] shall use the sale proceeds
305-18 to operate and administer the tobacco products tax program up to
305-19 the amount appropriated by the legislature for this purpose. The
305-20 comptroller [treasurer] shall allocate any sale proceeds that
305-21 exceed the legislative appropriation as provided by Subchapter H.
305-22 Any unused appropriations remain in the general revenue fund.
305-23 SECTION 19.99. Section 155.151, Tax Code, is amended to read
305-24 as follows:
305-25 Sec. 155.151. WAIVER PERMITTED. (a) The comptroller
305-26 [treasurer] may waive a forfeiture proceeding for property seized
305-27 under Section 155.143 of this code if the owner or possessor of the
306-1 property:
306-2 (1) pays the tax due; and
306-3 (2) pays to the state through the comptroller
306-4 [treasurer] an additional sum equal to the tax due.
306-5 (b) The comptroller [treasurer] may make a compromise with a
306-6 person before or after a claim is filed in court. The comptroller
306-7 [treasurer] shall keep a record open for public inspection of
306-8 compromises and waivers of forfeiture made under this section.
306-9 SECTION 19.100. Section 155.152, Tax Code, is amended to
306-10 read as follows:
306-11 Sec. 155.152. PAYMENT TO TREASURY. The comptroller
306-12 [treasurer] shall deposit all taxes collected under this chapter,
306-13 after payment of costs, in the treasury to be allocated as provided
306-14 by Subchapter H.
306-15 SECTION 19.101. Section 155.154, Tax Code, is amended to
306-16 read as follows:
306-17 Sec. 155.154. DONATIONS. The comptroller [treasurer] may
306-18 accept gifts, grants, and donations for the administration and
306-19 enforcement of this chapter.
306-20 SECTION 19.102. Section 155.155(a), Tax Code, is amended to
306-21 read as follows:
306-22 (a) The comptroller [treasurer] may enter into a reciprocal
306-23 agreement with a tax official of another state or an official of
306-24 the United States allowing the exchange of information received by,
306-25 recorded by, prepared by, furnished to, or collected by the
306-26 comptroller [treasurer] with respect to the investigation and
306-27 enforcement of this chapter for any tax, penalty, interest, fine,
307-1 forfeiture, or offense.
307-2 SECTION 19.103. The heading to Subchapter F, Chapter 155,
307-3 Tax Code, is amended to read as follows:
307-4 SUBCHAPTER F. ADMINISTRATION BY COMPTROLLER [TREASURER]
307-5 SECTION 19.104. Section 155.181, Tax Code, is amended to
307-6 read as follows:
307-7 Sec. 155.181. COMPLIANCE INVESTIGATION AND RECOVERY OF
307-8 COSTS. (a) If the comptroller [treasurer] has reason to believe
307-9 that a person has failed to pay a tax or penalty in the proper
307-10 manner when due or otherwise failed to comply with this chapter,
307-11 the comptroller [treasurer] may employ auditors and investigators
307-12 to determine compliance and any amount due. If the comptroller
307-13 [treasurer] determines that the person has not paid the tax or
307-14 penalty or has failed to comply with this chapter, the comptroller
307-15 [treasurer] may require the person to pay the reasonable expenses
307-16 incurred in the compliance investigation and audit as an additional
307-17 penalty.
307-18 (b) The comptroller [treasurer] shall deposit funds paid
307-19 under this section to the credit of the general revenue fund in the
307-20 treasury to be used for making audits, conducting investigations,
307-21 or as otherwise appropriated. The comptroller may use other funds
307-22 available for audits as appropriated by the legislature.
307-23 SECTION 19.105. Section 155.182, Tax Code, is amended to
307-24 read as follows:
307-25 Sec. 155.182. PAYMENT OF DOUBLE AMOUNT. (a) If the
307-26 comptroller [treasurer] finds that a person has sold tobacco
307-27 products without the tax having been paid, the comptroller
308-1 [treasurer] may require the person to pay the state through the
308-2 comptroller [treasurer] a sum equal to twice the amount of tax due.
308-3 (b) If a person does not furnish the comptroller [treasurer]
308-4 with any evidence showing payment of the tax on tobacco products
308-5 purchased by the person, it is presumed that the tobacco products
308-6 were sold without reporting and paying the tax.
308-7 SECTION 19.106. Section 155.183, Tax Code, is amended to
308-8 read as follows:
308-9 Sec. 155.183. INSPECTION. (a) To determine the tax
308-10 liability of a person dealing in tobacco products or compliance by
308-11 the person with this chapter, the comptroller [treasurer] may:
308-12 (1) inspect any premises, including a vending machine
308-13 and its contents, where tobacco products are manufactured,
308-14 produced, stored, transported, sold, or offered for sale or
308-15 exchange;
308-16 (2) remain on the premises as long as necessary to
308-17 determine the tax liability or compliance with this chapter;
308-18 (3) examine the records required by this chapter or
308-19 other records, books, documents, papers, accounts, and objects that
308-20 the comptroller [treasurer] determines are necessary for conducting
308-21 a complete examination; and
308-22 (4) examine stocks of tobacco products.
308-23 (b) A person dealing in tobacco products may not:
308-24 (1) fail to produce, on the comptroller's
308-25 [treasurer's] demand, records required by this chapter; or
308-26 (2) hinder or prevent the inspection of records or the
308-27 examination of the premises.
309-1 SECTION 19.107. Section 155.184, Tax Code, is amended to
309-2 read as follows:
309-3 Sec. 155.184. CREDIT FOR TAX PAID. (a) The comptroller
309-4 [treasurer] may adopt rules providing for a credit or refund for
309-5 tax paid on tobacco products if the tobacco products have become
309-6 unfit for use or consumption or unsalable.
309-7 (b) The comptroller [treasurer] may not allow a credit or
309-8 refund under this section unless the comptroller [treasurer] is
309-9 satisfied that the tobacco products are unfit for use or
309-10 consumption or unsalable or have been returned to the manufacturer.
309-11 SECTION 19.108. Section 155.185, Tax Code, is amended to
309-12 read as follows:
309-13 Sec. 155.185. DEFICIENCY DETERMINATION, PENALTIES, AND
309-14 INTEREST. (a) If the comptroller [treasurer] has reasonable cause
309-15 to believe that a tax report or the amount of tax is inaccurate,
309-16 the comptroller [treasurer] may compute and determine the amount of
309-17 tax, penalty, and interest to be paid from information contained in
309-18 the report or from any other information available to the
309-19 comptroller [treasurer].
309-20 (b) On making a deficiency determination, the comptroller
309-21 [treasurer] shall notify the person by certified mail, return
309-22 receipt requested. Service by mail is complete when the notice is
309-23 received, as evidenced by return receipt from the U.S. Postal
309-24 Service.
309-25 SECTION 19.109. Section 155.186, Tax Code, is amended to
309-26 read as follows:
309-27 Sec. 155.186. REDETERMINATION. (a) A person who receives
310-1 notice of a deficiency determination may submit a written request
310-2 to the comptroller [treasurer] for redetermination. If the person
310-3 desires a hearing, the request for a hearing must be included in
310-4 the written request for redetermination.
310-5 (b) A written request for redetermination must be filed at
310-6 the office of the comptroller [treasurer] not later than the 15th
310-7 working day after the date notice of deficiency is received. If a
310-8 written request for redetermination is not filed as required by
310-9 this subsection, the determination is final.
310-10 (c) On receipt of a written request for redetermination, the
310-11 comptroller [treasurer] shall:
310-12 (1) review the request for redetermination if a
310-13 hearing was not requested; or
310-14 (2) provide the person against whom the deficiency
310-15 determination was made with written notice of the time, place, and
310-16 date of a redetermination hearing.
310-17 (d) The comptroller [treasurer] shall give notice of a
310-18 redetermination hearing by certified mail, return receipt
310-19 requested. Service by mail is complete when the notice is
310-20 received, as evidenced by return receipt from the U.S. Postal
310-21 Service.
310-22 SECTION 19.110. Section 155.201(a), Tax Code, is amended to
310-23 read as follows:
310-24 (a) A person violates this chapter if the person:
310-25 (1) is a distributor, wholesaler, manufacturer, bonded
310-26 agent, manufacturer's representative, or retailer and fails to keep
310-27 records required by this chapter;
311-1 (2) engages in the business of a bonded agent,
311-2 distributor, wholesaler, or retailer without a valid permit;
311-3 (3) is a distributor, wholesaler, manufacturer, bonded
311-4 agent, or retailer and fails to make a report required by this
311-5 chapter to the comptroller [treasurer] or makes a false or
311-6 incomplete report or application required by this chapter to the
311-7 comptroller [treasurer]; or
311-8 (4) is a person affected by this chapter and fails or
311-9 refuses to abide by or violates a provision of this chapter or a
311-10 rule adopted by the comptroller [treasurer] under this chapter.
311-11 SECTION 19.111. Section 155.205, Tax Code, is amended to
311-12 read as follows:
311-13 Sec. 155.205. MISLEADING THE COMPTROLLER [TREASURER]. A
311-14 person commits an offense if the person misleads the comptroller
311-15 [treasurer] in the enforcement of this chapter.
311-16 SECTION 19.112. Section 155.206, Tax Code, is amended to
311-17 read as follows:
311-18 Sec. 155.206. REFUSING TO SURRENDER TOBACCO PRODUCTS. A
311-19 person commits an offense if the person refuses to surrender to the
311-20 comptroller [treasurer] on demand tobacco products possessed in
311-21 violation of this chapter.
311-22 SECTION 19.113. Section 155.2075, Tax Code, is amended to
311-23 read as follows:
311-24 Sec. 155.2075. FINGERPRINTS [ACCESS TO CRIMINAL HISTORY
311-25 INFORMATION]. [(b)] The comptroller [treasurer] may refuse to
311-26 grant a permit or may revoke or suspend a permit if the applicant
311-27 or permit holder fails, on request, to provide a complete set of
312-1 fingerprints required for searching the Federal Bureau of
312-2 Investigation Identification Division files.
312-3 SECTION 19.114. Section 155.209, Tax Code, is amended to
312-4 read as follows:
312-5 Sec. 155.209. TRANSPORTATION OF TOBACCO PRODUCTS. A person
312-6 commits an offense if the person:
312-7 (1) knowingly transports tobacco products taxed under
312-8 this chapter without the tax being paid;
312-9 (2) wilfully refuses to stop a motor vehicle operated
312-10 to transport tobacco products after a request to stop from an
312-11 authorized representative of the comptroller [treasurer]; or
312-12 (3) while transporting tobacco products, refuses to
312-13 permit a complete inspection of the cargo by an authorized
312-14 representative of the comptroller [treasurer].
312-15 SECTION 19.115. Section 155.210, Tax Code, is amended to
312-16 read as follows:
312-17 Sec. 155.210. INSPECTION OF PREMISES. A person commits an
312-18 offense if the person refuses to permit a complete inspection by an
312-19 authorized representative of the comptroller [treasurer] of any
312-20 premises where tobacco products are manufactured, produced, stored,
312-21 transported, sold, or offered for sale or exchange or fails to
312-22 produce, on the comptroller's [treasurer's] demand, records
312-23 required by this chapter.
312-24 SECTION 19.116. Section 155.212, Tax Code, is amended to
312-25 read as follows:
312-26 Sec. 155.212. BOOKS AND RECORDS. A person commits an
312-27 offense if the person:
313-1 (1) knowingly makes, delivers to, and files with the
313-2 comptroller [treasurer] a false return or an incomplete return or
313-3 report;
313-4 (2) knowingly fails to make and deliver to the
313-5 comptroller [treasurer] a return or report as required by this
313-6 chapter;
313-7 (3) destroys, mutilates, or conceals a book or record
313-8 required by this chapter;
313-9 (4) refuses to permit the attorney general or the
313-10 comptroller [treasurer] to inspect and audit books and records that
313-11 are required by this chapter or that are incidental to the conduct
313-12 of the tobacco products business;
313-13 (5) knowingly makes a false entry or fails to make
313-14 entries in the books and records required by this chapter; or
313-15 (6) fails to keep books and records for four years as
313-16 required by this chapter.
313-17 SECTION 19.117. Section 182.082, Tax Code, is amended to
313-18 read as follows:
313-19 Sec. 182.082. TAX PAYMENTS: DUE DATE. Except as provided
313-20 in Section 182.083 of this code, the taxes imposed by this chapter
313-21 are due and payable to the comptroller [treasurer] on the last day
313-22 of January, April, July, and October of each year.
313-23 SECTION 19.118. Section 182.083(a), Tax Code, is amended to
313-24 read as follows:
313-25 (a) Except as provided in Subsection (b) of this section, if
313-26 a person taxed under this chapter begins business on or after the
313-27 first day of the quarter, then in lieu of the gross receipts tax
314-1 provided for in this chapter, the tax for that quarter is $50,
314-2 payable to the comptroller [treasurer] in advance.
314-3 SECTION 19.119. Section 191.101(a), Tax Code, is amended to
314-4 read as follows:
314-5 (a) The receipt from the comptroller [treasurer] for tax
314-6 payment is the permit to do business unless a separate permit is
314-7 required by law.
314-8 SECTION 19.120. Section 201.202, Tax Code, is amended to
314-9 read as follows:
314-10 Sec. 201.202. PAYMENT OF TAX. The tax imposed by this
314-11 chapter must be paid by legal tender or cashier's check payable to
314-12 the comptroller [state treasurer].
314-13 SECTION 19.121. Section 202.152, Tax Code, is amended to
314-14 read as follows:
314-15 Sec. 202.152. PAYMENT OF TAX. The tax imposed by this
314-16 chapter must be paid by legal tender or cashier's check payable to
314-17 the comptroller [state treasurer].
314-18 SECTION 19.122. Section 203.053, Tax Code, is amended to
314-19 read as follows:
314-20 Sec. 203.053. WHEN TAX DUE. The tax imposed by this chapter
314-21 for each quarter is due at the time that the report required by
314-22 Section 203.052 of this code is required to be filed for the
314-23 quarter. Payment shall be to the comptroller [treasurer].
314-24 SECTION 19.123. Section 321.501(a), Tax Code, is amended to
314-25 read as follows:
314-26 (a) The comptroller shall deposit the taxes collected by the
314-27 comptroller under this chapter [with the state treasurer. The
315-1 treasurer shall keep the deposits] in trust in the separate
315-2 suspense account of the municipality from which the taxes were
315-3 collected.
315-4 SECTION 19.124. Section 321.505, Tax Code, is amended to
315-5 read as follows:
315-6 Sec. 321.505. INTEREST ON TRUST ACCOUNT. Interest earned on
315-7 all deposits made with the comptroller [state treasurer] under
315-8 Section 321.501, including interest earned from retained suspense
315-9 accounts, shall be credited to the general revenue fund.
315-10 SECTION 19.125. Section 322.305, Tax Code, is amended to
315-11 read as follows:
315-12 Sec. 322.305. INTEREST ON TRUST ACCOUNTS. Interest earned
315-13 on all deposits made with the comptroller [state treasurer] under
315-14 this chapter, including interest earned on retained accounts, shall
315-15 be credited to the general revenue fund.
315-16 SECTION 19.126. Section 323.501(a), Tax Code, is amended to
315-17 read as follows:
315-18 (a) The comptroller shall deposit the taxes collected by the
315-19 comptroller under this chapter [with the state treasurer. The
315-20 treasurer shall keep the deposits] in trust in the separate
315-21 suspense account of the county from which the taxes were collected.
315-22 SECTION 19.127. Section 323.5041, Tax Code, is amended to
315-23 read as follows:
315-24 Sec. 323.5041. INTEREST ON TAX REVENUE. Interest earned on
315-25 all deposits made with the comptroller [state treasurer] under this
315-26 chapter, including interest earned from the suspense accounts
315-27 retained under Section 323.504, shall be credited to the general
316-1 revenue fund.
316-2 SECTION 19.128. Sections 111.1041 and 112.151(f), Tax Code,
316-3 are repealed.
316-4 ARTICLE 20. CHANGES TO WATER CODE
316-5 SECTION 20.01. Section 11.329(d), Water Code, is amended to
316-6 read as follows:
316-7 (d) The executive director shall transmit all collections
316-8 under this section to the comptroller [State Treasurer].
316-9 SECTION 20.02. Section 15.218(c), Water Code, is amended to
316-10 read as follows:
316-11 (c) The state comptroller [and the state treasurer] on
316-12 request shall provide to the board all information and assistance
316-13 necessary for the board to prepare this report.
316-14 SECTION 20.03. Section 15.603(g), Water Code, is amended to
316-15 read as follows:
316-16 (g) The revolving fund and any accounts established in the
316-17 revolving fund shall be kept and maintained by or at the direction
316-18 of the board and do not constitute and are not a part of the State
316-19 Treasury. However, at the direction of the board, the revolving
316-20 fund or accounts in the revolving fund may be kept and held in
316-21 escrow and in trust by the comptroller [State Treasurer] for and on
316-22 behalf of the board, shall be used only as provided by this
316-23 subchapter, and pending such use shall be invested in authorized
316-24 investments as provided by any order, resolution, or rule of the
316-25 board. Legal title to money and investments in the revolving fund
316-26 is in the board unless or until paid out as provided by this
316-27 subchapter, the federal act, and the rules of the board. The
317-1 comptroller [State Treasurer], as custodian, shall administer the
317-2 funds strictly and solely as provided by this subchapter and in the
317-3 orders, resolutions, and rules, and the state shall take no action
317-4 with respect to the revolving fund other than that specified in
317-5 this subchapter, the federal act, and the rules of the board.
317-6 SECTION 20.04. Sections 15.732(c) and (e), Water Code, are
317-7 amended to read as follows:
317-8 (c) At the direction of the board, the fund or accounts in
317-9 the fund may be kept and held in escrow and in trust by the
317-10 comptroller [state treasurer] for and on behalf of the board. If
317-11 the fund or accounts in the fund are held in escrow and in trust by
317-12 the comptroller [state treasurer], the fund or accounts may be used
317-13 only as provided by this subchapter and, pending their use, shall
317-14 be invested in authorized investments as provided by any order,
317-15 resolution, or rule of the board.
317-16 (e) The comptroller [state treasurer], as custodian, shall
317-17 administer the funds strictly and solely as provided by this
317-18 subchapter and in the orders, resolutions, and rules of the board,
317-19 and the state shall take no action with respect to the fund other
317-20 than that specified in this subchapter, an agreement made with the
317-21 Environmental Protection Agency or another federal agency,
317-22 applicable federal requirements, and the rules of the board.
317-23 SECTION 20.05. Section 17.027, Water Code, is amended to
317-24 read as follows:
317-25 Sec. 17.027. PAYMENT BY COMPTROLLER [TREASURER]. The
317-26 comptroller [State Treasurer] shall pay the principal of the bonds
317-27 as they mature and the interest as it becomes payable.
318-1 SECTION 20.06. Section 17.080, Water Code, is amended to
318-2 read as follows:
318-3 Sec. 17.080. ADDITIONAL FUNDS FOR PAYMENT OF BONDS. (a) If
318-4 the amount transferred from the clearance fund plus the money and
318-5 securities in the interest and sinking fund are insufficient to pay
318-6 the interest coming due and the principal maturing on the bonds
318-7 during the fiscal year, then after the transfer to the interest and
318-8 sinking fund of as much money as is available in the clearance
318-9 fund, the comptroller [State Treasurer] shall transfer out of the
318-10 first money coming into the treasury, not otherwise appropriated by
318-11 the constitution, the amount required to pay principal and interest
318-12 on the bonds during the fiscal year, except for those bonds
318-13 dedicated pursuant to Section 17.0111 of this code.
318-14 (b) If the amount transferred from the economically
318-15 distressed areas clearance fund plus the money and securities in
318-16 the economically distressed areas interest and sinking fund are
318-17 insufficient to pay the interest coming due and the principal
318-18 maturing on the bonds dedicated pursuant to Section 17.0111 of this
318-19 code during the fiscal year, then after the transfer to the
318-20 economically distressed areas interest and sinking fund of as much
318-21 money as is available in the economically distressed areas
318-22 clearance fund, the comptroller [State Treasurer] shall transfer
318-23 out of the first money coming into the treasury, not otherwise
318-24 appropriated by the constitution, the amount required to pay
318-25 principal and interest on the bonds during the fiscal year.
318-26 SECTION 20.07. Section 17.886, Water Code, is amended to
318-27 read as follows:
319-1 Sec. 17.886. PAYMENT BY COMPTROLLER [TREASURER], TRANSFERS
319-2 BY COMPTROLLER. (a) The comptroller [state treasurer] shall pay
319-3 the principal of the bonds as they mature and the interest on the
319-4 bonds as it becomes due.
319-5 (b) If the money and securities in the interest and sinking
319-6 fund are insufficient to pay the interest that is due and the
319-7 principal maturing on the bonds during the fiscal year, the
319-8 comptroller [state treasurer] shall transfer out of the first money
319-9 coming into the treasury, not otherwise appropriated by the
319-10 constitution, the amount required to pay principal of and interest
319-11 on the bonds during the fiscal year.
319-12 (c) The comptroller shall make the transfers required by the
319-13 board's bond resolution or order and this subchapter.
319-14 SECTION 20.08. Section 20.108(f), Water Code, is amended to
319-15 read as follows:
319-16 (f) The comptroller [state treasurer], as custodian of any
319-17 of the funds, shall administer the funds solely and strictly as
319-18 provided by this chapter and the resolutions or orders authorizing
319-19 the bonds, and the state may not take any other action relating to
319-20 any of those funds except those specified in this chapter and the
319-21 resolutions and orders authorizing the bonds.
319-22 SECTION 20.09. Section 20.111(a), Water Code, is amended to
319-23 read as follows:
319-24 (a) Bonds may not be issued under this section unless the
319-25 issuance has been reviewed and approved by the bond review board.
319-26 The bond review board is composed of:
319-27 (1) the governor;
320-1 (2) the lieutenant governor;
320-2 (3) the speaker of the house of representatives; and
320-3 (4) the [state treasurer; and]
320-4 [(5) the] comptroller of public accounts.
320-5 SECTION 20.10. Section 36.307, Water Code, is amended to
320-6 read as follows:
320-7 Sec. 36.307. ASSETS ESCHEAT TO STATE. Upon the dissolution
320-8 of a district by the commission, all assets of the district shall
320-9 escheat to the State of Texas. The assets shall be administered by
320-10 the comptroller [state treasurer] and shall be disposed of in the
320-11 manner provided by Chapter 72, Property Code.
320-12 SECTION 20.11. Section 49.327, Water Code, is amended to
320-13 read as follows:
320-14 Sec. 49.327. ASSETS ESCHEAT TO STATE. Upon the dissolution
320-15 of a district by the commission, all assets of the district shall
320-16 escheat to the State of Texas. The assets shall be administered by
320-17 the comptroller [state treasurer] and shall be disposed of in the
320-18 manner provided by Chapter 74, Property Code.
320-19 ARTICLE 21. CHANGES TO VERNON'S TEXAS CIVIL STATUTES
320-20 SECTION 21.01. Section 22A(b), Public Accountancy Act of
320-21 1991 (Article 41a-1, Vernon's Texas Civil Statutes), is amended to
320-22 read as follows:
320-23 (b) A special fund is established for the exclusive use of
320-24 the board to be known as the public accountancy enforcement fund.
320-25 The fund may be used only to finance the enforcement functions
320-26 performed under this Act. Money received by the board from a fee
320-27 increase adopted under Section 9(g) of this Act and money related
321-1 to an administrative penalty and received by the board under
321-2 Section 21D of this Act shall be deposited in the fund. The
321-3 comptroller [state treasurer] is the custodian of the fund. The
321-4 comptroller shall issue warrants from the fund supported only by
321-5 vouchers signed by the chairman and the executive director. The
321-6 fund shall be appropriated to the board by the legislature.
321-7 SECTION 21.02. Section 20, Bingo Enabling Act (Article 179d,
321-8 Vernon's Texas Civil Statutes), is amended to read as follows:
321-9 Sec. 20. Reporting and due Date of Taxes and Fees. The
321-10 taxes and fees authorized or imposed by this Act are due and
321-11 payable by the licensee or any person conducting bingo games
321-12 without a license to the comptroller [state treasurer] quarterly on
321-13 or before the 15th day of the month succeeding each calendar
321-14 quarter. The report must be filed under oath on forms prescribed
321-15 by the commission.
321-16 SECTION 21.03. Section 37(e), Bingo Enabling Act (Article
321-17 179d, Vernon's Texas Civil Statutes), is amended to read as
321-18 follows:
321-19 (e) If on the sale the money received exceeds the total of
321-20 all amounts, including interest, penalties, and costs due the
321-21 state, the commission shall return the excess to the person liable
321-22 for the amounts and obtain his receipt. If any person having an
321-23 interest in or lien on the property files with the commission
321-24 before the sale notice of his interest or lien, the commission
321-25 shall withhold any excess pending a determination of the rights of
321-26 the respective parties thereto by a court of competent
321-27 jurisdiction. If for any reason the receipt of the person liable
322-1 for the amount is not available, the commission shall deposit the
322-2 excess money with the comptroller [state treasurer], as trustee for
322-3 the owner, subject to the order of the person liable for the
322-4 amount, or the person's heirs, successors, or assigns.
322-5 SECTION 21.04. Section 4(a), Chapter 478, Acts of the 45th
322-6 Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas
322-7 Civil Statutes), is amended to read as follows:
322-8 (a) All fees collected or money derived under the provisions
322-9 of this Act shall be received and accounted for by the
322-10 secretary-treasurer. All of these funds which are received shall
322-11 be paid weekly to the State Comptroller [State Treasurer], who
322-12 shall keep this money in a separate fund to be known as the
322-13 Architectural Examiners Fund. This fund may be used only for the
322-14 administration of the powers and duties of the Board and shall be
322-15 paid out only by warrants of the State Comptroller, upon itemized
322-16 vouchers, approved by the chairman or acting chairman and attested
322-17 by the secretary-treasurer of the Board. Disbursements shall not
322-18 in any way be a charge upon the General Revenue Fund of this State.
322-19 SECTION 21.05. Section 7.103(b), Texas Banking Act (Article
322-20 342-7.103, Vernon's Texas Civil Statutes), is amended to read as
322-21 follows:
322-22 (b) If the property is not removed by the date specified in
322-23 the notices or by the banking commissioner, an officer of the bank,
322-24 in the presence of a notary public who is not an officer or
322-25 employee of the bank and who is bonded in an amount and by sureties
322-26 approved by the banking commissioner, shall inventory the property
322-27 and may open a safe, vault, or box, or any package, parcel, or
323-1 receptacle, in the custody or possession of the bank, to make the
323-2 inventory. The property shall be marked to identify, to the extent
323-3 possible, its owner or the person who left it with the bank. After
323-4 all property belonging to others that is in the bank's custody and
323-5 control has been inventoried, a master list certified by the bank
323-6 officer and the notary public shall be furnished to the banking
323-7 commissioner. The master list shall be kept in a place and dealt
323-8 with in a manner the banking commissioner specifies pending
323-9 delivery of the property to its owner or to the comptroller [state
323-10 treasurer] as unclaimed property.
323-11 SECTION 21.06. Sections 7.105(b) and (c), Texas Banking Act
323-12 (Article 342-7.105, Vernon's Texas Civil Statutes), are amended to
323-13 read as follows:
323-14 (b) The list, accompanied by any necessary identifying
323-15 information, shall be filed with the banking commissioner. The
323-16 bank shall pay any unclaimed funds and deliver any unclaimed
323-17 property to the comptroller [state treasurer] as provided by
323-18 Chapter 74, Property Code, and certify to the banking commissioner
323-19 that the unclaimed funds and property have been paid or delivered.
323-20 (c) After the banking commissioner has reviewed the list and
323-21 has reconciled the unclaimed cash and property with the amounts of
323-22 money and property reported and transferred to the comptroller
323-23 [state treasurer], the banking commissioner shall allow the bank to
323-24 distribute the bank's remaining assets, if any, among its
323-25 shareholders, participants, or participant-transferees as their
323-26 ownership interests appear.
323-27 SECTION 21.07. Section 7.209(a), Texas Banking Act (Article
324-1 342-7.209, Vernon's Texas Civil Statutes), is amended to read as
324-2 follows:
324-3 (a) The receiver may deposit funds collected on behalf of
324-4 the bank estate in:
324-5 (1) the Texas Treasury Safekeeping Trust Company in
324-6 accordance with procedures established by the comptroller [state
324-7 treasurer] or successor official; or
324-8 (2) one or more state banks in this state, the
324-9 deposits of which are insured by the Federal Deposit Insurance
324-10 Corporation or its successor, if the receiver, using sound
324-11 financial judgment, determines that it would be advantageous to do
324-12 so.
324-13 SECTION 21.08. Section 7.314, Texas Banking Act (Article
324-14 342-7.314, Vernon's Texas Civil Statutes), is amended to read as
324-15 follows:
324-16 Sec. 7.314. UNCLAIMED FUNDS AND PROPERTY. After completion
324-17 of the liquidation, any unclaimed property remaining in the hands
324-18 of the receiver shall be tendered to the comptroller [state
324-19 treasurer] as provided by Chapter 74, Property Code.
324-20 SECTION 21.09. Sections 5B(a), (e), (f), (g), and (h),
324-21 Chapter 512, Acts of the 54th Legislature, Regular Session, 1955
324-22 (Article 548b, Vernon's Texas Civil Statutes), are amended to read
324-23 as follows:
324-24 (a) Funds paid by a purchaser of a prepaid funeral benefits
324-25 contract are personal property subject to presumption of
324-26 abandonment and delivery to the comptroller [state treasurer] under
324-27 Title 6, Property Code. In the event of a conflict between the
325-1 provisions of that title and this section, this section controls.
325-2 (e)(1) Each seller that on June 30 holds funds that are
325-3 presumed abandoned under Subsection (b) of this section shall
325-4 furnish the Commissioner with an acknowledged written notice of the
325-5 abandoned funds not later than the following October 1. The
325-6 seller's notice shall, for each abandoned contract, include the
325-7 name and address, if known, of each person who appears to be the
325-8 purchaser or the beneficiary of the contract; the identification
325-9 number, if any, of the contract; the total amount paid on the
325-10 contract; the amount paid on the contract and held at the
325-11 depository; and the earnings of the contract. The notice shall
325-12 also contain a statement by the seller recognizing the seller's
325-13 obligation and intent to deliver the abandoned funds to the
325-14 comptroller [state treasurer] in accordance with this section.
325-15 (2) The Commissioner shall, within 15 days after the
325-16 date of the receipt of the seller's notice, authorize in writing
325-17 the seller to withdraw the funds specified in the seller's notice
325-18 that are presumed abandoned under Subsection (b) of this section,
325-19 and subject to Subdivision (3) of this subsection, to withdraw and
325-20 retain the funds specified in the seller's notice that represent
325-21 the earnings attributable to the abandoned funds. The seller shall
325-22 deliver to the comptroller [state treasurer] not later than the
325-23 following November 1 the abandoned funds and the report required to
325-24 be filed under Chapter 74, Property Code.
325-25 (3) The Commissioner may refuse to authorize the
325-26 withdrawal of the funds representing the earnings attributable to
325-27 the abandoned funds only if:
326-1 (A) the seller's permit to sell prepaid funeral
326-2 benefits has been cancelled or not renewed by the Department;
326-3 (B) the seller is the subject of a pending
326-4 proceeding brought by the Department under Section 13,
326-5 Administrative Procedure and Texas Register Act (Article 6252-13a,
326-6 Vernon's Texas Civil Statutes), and its subsequent amendments, to
326-7 cancel the seller's permit to sell prepaid funeral benefits; or
326-8 (C) the Department has determined from an
326-9 examination of the seller's records that the seller has made
326-10 withdrawals from accounts maintained by the seller that were not
326-11 authorized under this Act, and has previously given written notice
326-12 to the seller of that determination.
326-13 (4) If the Commissioner does not authorize the seller
326-14 to withdraw the funds representing the earnings attributable to the
326-15 abandoned funds because of the existence of a condition described
326-16 by Subdivision (3) of this subsection, the Commissioner shall, not
326-17 later than the 15th day after the date of the receipt of the
326-18 seller's notice to the Commissioner under Subdivision (1) of this
326-19 subsection, give written notice to the seller that states the
326-20 condition that exists. If the Commissioner notifies the seller
326-21 that the Commissioner does not authorize the seller's withdrawal of
326-22 earnings on the basis of Subdivision (3)(B) of this subsection and
326-23 if the Department or a court of competent jurisdiction subsequently
326-24 determines that the seller's permit should not be cancelled, the
326-25 seller is entitled to withdraw and retain all of the earnings
326-26 attributable to the abandoned funds. If the Commissioner notifies
326-27 the seller that the Commissioner does not authorize the seller's
327-1 withdrawal of earnings on the basis of Subdivision (3)(C) of this
327-2 subsection, the seller, upon depositing in the accounts the amount
327-3 of the unauthorized withdrawals, is entitled to withdraw and retain
327-4 all of the earnings attributable to the abandoned funds.
327-5 (f) A seller who reports and delivers funds to the
327-6 comptroller [state treasurer] under this section is relieved of all
327-7 obligations and liabilities under the prepaid funeral benefits
327-8 contract. The prepaid funeral benefits contract is considered to
327-9 be cancelled by the purchaser of the contract and all obligations
327-10 and liabilities of and claims against the seller and any funeral
327-11 home obligated to provide prepaid funeral benefits under the
327-12 contract are discharged and released.
327-13 (g) A seller who delivers funds to the comptroller [state
327-14 treasurer] under this section shall be indemnified under Section
327-15 74.304, Property Code, for any claim that may be made with respect
327-16 to the property.
327-17 (h) The comptroller [state treasurer] is not liable to the
327-18 purchaser or beneficiary of a prepaid funeral benefits contract
327-19 presumed abandoned under this section except to the extent of funds
327-20 attributable to the contract that are delivered to the comptroller
327-21 [state treasurer]. The comptroller [state treasurer] is not
327-22 obligated to perform the seller's duties under an abandoned prepaid
327-23 funeral benefits contract. A purchaser's or beneficiary's sole
327-24 recourse after a seller has reported and delivered funds to the
327-25 comptroller [state treasurer] is to file a claim with the
327-26 comptroller [state treasurer] as provided by Chapter 74, Property
327-27 Code.
328-1 SECTION 21.10. Section 8A(b), Chapter 512, Acts of the 54th
328-2 Legislature, Regular Session, 1955 (Article 548b, Vernon's Texas
328-3 Civil Statutes), is amended to read as follows:
328-4 (b) The fund may be deposited with the comptroller [state
328-5 treasurer], a state or national bank in this state, or a savings
328-6 and loan association in this state, or placed with the trust
328-7 department in a state or national bank in this state or in a trust
328-8 company authorized to do business in this state. If the fund is
328-9 deposited with the comptroller [state treasurer], the comptroller
328-10 [state treasurer] shall manage the fund as trustee of funds outside
328-11 the treasury. The Department may use any earnings from the fund
328-12 for the expenses of operating and maintaining the fund.
328-13 SECTION 21.11. Section 23(c), Texas Public Finance Authority
328-14 Act (Article 601d, Vernon's Texas Civil Statutes), is amended to
328-15 read as follows:
328-16 (c) The comptroller [state treasurer] shall invest, with the
328-17 concurrence of the board, the unexpended bond proceeds and
328-18 investment income thereon in investments approved by law for the
328-19 investment of state funds.
328-20 SECTION 21.12. Section 2(a), Chapter 696, Acts of the 70th
328-21 Legislature, Regular Session, 1987 (Article 601d-1, Vernon's Texas
328-22 Civil Statutes), is amended to read as follows:
328-23 (a) The bond review board is composed of:
328-24 (1) the governor;
328-25 (2) the lieutenant governor;
328-26 (3) the speaker of the house of representatives; and
328-27 (4) [the State Treasurer; and]
329-1 [(5)] the comptroller of public accounts.
329-2 SECTION 21.13. Section 5(d), Chapter 696, Acts of the 70th
329-3 Legislature, Regular Session, 1987 (Article 601d-1, Vernon's Texas
329-4 Civil Statutes), is amended to read as follows:
329-5 (d) With the concurrence of the board, the Comptroller
329-6 [State Treasurer] shall invest the unexpended bond proceeds and the
329-7 investment income of those unexpended proceeds in investments
329-8 approved by law for the investment of state funds. Any investment
329-9 income required for project costs, and not required to be rebated
329-10 to the federal government or used for debt service, as determined
329-11 by the board, shall be credited to the appropriate agency.
329-12 Investment income not required for project costs and not required
329-13 to be rebated to the federal government or used for debt service
329-14 shall be allocated as provided by Section 404.071, Government Code
329-15 [3.042, Treasury Act (Article 4393-1, Vernon's Texas Civil
329-16 Statutes)].
329-17 SECTION 21.14. Section 5(c), Chapter 1203, Acts of the 71st
329-18 Legislature, Regular Session, 1989 (Article 601d-3, Vernon's Texas
329-19 Civil Statutes), is amended to read as follows:
329-20 (c) With the concurrence of the board, the comptroller
329-21 [state treasurer] shall invest the unexpended bond proceeds and the
329-22 investment income on those unexpended proceeds in investments
329-23 approved by law for the investment of state funds. Any investment
329-24 income required for project costs and not required to be rebated to
329-25 the federal government, as determined by the board, shall be
329-26 credited to the commission. Investment income not required for
329-27 project costs and not required to be rebated to the federal
330-1 government or used for debt service on the bonds shall be allocated
330-2 as provided by Section 404.071, Government Code.
330-3 SECTION 21.15. Article 696, Revised Statutes, is amended to
330-4 read as follows:
330-5 Art. 696. DEPOSIT. Each corporation, company or individual,
330-6 doing business in this State as a bond investment company, or
330-7 company to place or sell bonds, certificates or debentures on the
330-8 partial payment or installment plan, shall deposit with the
330-9 Comptroller [State Treasurer], in cash or securities approved by
330-10 said Comptroller [Treasurer], the sum of five thousand dollars, and
330-11 shall deposit semi-annually with said Comptroller [Treasurer], in
330-12 cash or securities, to be approved by said officer, ten percent of
330-13 all net premiums received until the sum deposited amounts to one
330-14 hundred thousand dollars.
330-15 SECTION 21.16. Article 697, Revised Statutes, is amended to
330-16 read as follows:
330-17 Art. 697. DEFAULT OF DEPOSIT. If any such domestic
330-18 corporation, shall fail, for sixty days after its organization, to
330-19 make with the Comptroller [State Treasurer] the deposit required by
330-20 this title, it shall be considered to have forfeited its charter;
330-21 and the Attorney General shall upon information thereof, bring suit
330-22 in the name of the State to have such charter or certificate of
330-23 incorporation declared forfeited, and the court, upon so finding,
330-24 shall declare such charter forfeited and appoint a receiver for
330-25 such company, whose duty it shall be, under the order of the court,
330-26 to distribute to the shareholders the assets of the company. The
330-27 court shall out of such assets make equitable compensation for the
331-1 receiver.
331-2 SECTION 21.17. Article 698, Revised Statutes, is amended to
331-3 read as follows:
331-4 Art. 698. RECEIVER. In case of the failure of any such
331-5 company, the district court of the county in which the principal
331-6 office is located, upon the application of one or more
331-7 shareholders, shall appoint a receiver for such company, whose duty
331-8 it shall be to wind up its affairs, liquidate its debts, and
331-9 distribute its assets, using therefor, upon the order of the court,
331-10 the deposit previously made with the Comptroller [State Treasurer]
331-11 to secure the shareholders. Said Comptroller [Treasurer] is
331-12 authorized to pay out such deposit [upon the warrant of the
331-13 Comptroller] in accordance with requisitions made upon the
331-14 Comptroller by said receiver, approved by the court.
331-15 SECTION 21.18. Article 699, Revised Statutes, is amended to
331-16 read as follows:
331-17 Art. 699. INTERCHANGE OF DEPOSIT. On request of any such
331-18 company, the Comptroller [State Treasurer] is authorized to permit
331-19 such company to interchange cash for the securities or securities
331-20 for the cash deposited by such company under the provisions of this
331-21 title with said Comptroller [Treasurer], such securities always to
331-22 be approved by said Comptroller [Treasurer] on the written advice
331-23 of the Attorney General.
331-24 SECTION 21.19. Article 700, Revised Statutes, is amended to
331-25 read as follows:
331-26 Art. 700. RETURN OF DEPOSIT. If any such company shall
331-27 cease to do business in this State and satisfy the Comptroller and
332-1 the Attorney General that it has no liabilities in this State, the
332-2 Comptroller shall [issue his warrant to the State Treasurer; and
332-3 said Treasurer upon such warrant of the Comptroller, shall] return
332-4 to such company the cash or securities deposited by it under the
332-5 provisions of this title.
332-6 SECTION 21.20. Article 700a, Revised Statutes, is amended to
332-7 read as follows:
332-8 Art. 700a. PENALTY FOR VIOLATION OF LAWS. Any officer,
332-9 agent, or representative of any domestic or foreign corporation or
332-10 company doing business in this State as a bond investment company
332-11 or company to place or sell bonds, certificates or debentures on
332-12 the partial payment or installment plan, who shall attempt to place
332-13 or sell shares or transact any business in the name of or on behalf
332-14 of such company while it fails to comply with the laws of this
332-15 State requiring deposits to be made with the Comptroller [State
332-16 Treasurer], shall be fined not less than one hundred nor more than
332-17 one thousand dollars, or be imprisoned in jail not less than thirty
332-18 days nor more than six months, or both.
332-19 SECTION 21.21. Sections 2, 3, 4, 6, 7, 7A, and 8, Chapter
332-20 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
332-21 717k, Vernon's Texas Civil Statutes), are amended to read as
332-22 follows:
332-23 Sec. 2. REFUNDING BONDS; POWER TO ISSUE; SALE PRICE;
332-24 MATURITY; INTEREST RATE; SECURITY; COMBINATION ISSUANCE; ELECTION;
332-25 APPROVAL; REGISTRATION; SALE AND DELIVERY; LEGAL INVESTMENTS;
332-26 EXCEPTION. (a) The governing body of any issuer shall be
332-27 authorized to refund all or any part of any of its outstanding
333-1 bonds, notes, or other general or special obligations by the
333-2 issuance of refunding bonds to be sold for cash in such principal
333-3 amounts as are necessary to provide all or any part of the money
333-4 required to pay the principal of any obligations being refunded and
333-5 the interest to accrue on said obligations to the maturity thereof,
333-6 and/or to provide all or any part of the money required to redeem
333-7 any obligations being refunded, prior to maturity, on any date or
333-8 dates upon which said obligations are subject to such redemption,
333-9 including principal, and any required redemption premium, and the
333-10 interest to accrue on said obligations to said redemption date or
333-11 dates. Said refunding bonds shall be sold for not less than their
333-12 par value plus accrued interest to date of delivery, shall mature
333-13 not more than forty years from their date, and shall bear interest
333-14 at any rate or rates as shall be determined within the discretion
333-15 of the governing body of the issuer. Such refunding bonds may be
333-16 secured by and made payable from the same source as the obligations
333-17 being refunded thereby, or may be secured by and made payable from
333-18 taxes or revenues, or both, or any other or different source, or
333-19 any combination of sources, if the issuer is otherwise authorized
333-20 by the Texas Constitution or any statute to secure or pay any kind
333-21 or type of bonds by or from any such source. Said refunding bonds
333-22 may be issued in combination with new bonds, and/or with provision
333-23 for the subsequent issuance of additional parity bonds, or
333-24 subordinate lien bonds, under such terms or conditions, and with
333-25 such security, as may be set forth in the proceedings authorizing
333-26 the issuance of said refunding bonds, all within the discretion of
333-27 the governing body of the issuer; provided, however, that no such
334-1 bonds shall be issued contrary to the provisions of the Texas
334-2 Constitution. All refunding bonds issued pursuant to this Act may
334-3 be issued without any election in connection with the issuance
334-4 thereof or the creation of any encumbrance in connection therewith;
334-5 except that if the Texas Constitution would require an election or
334-6 vote to permit any procedure, action, or matter pertaining to such
334-7 refunding bonds, then an election to authorize any such procedure,
334-8 action, or matter shall be held substantially in accordance with
334-9 Chapter 1, Title 22, Revised Civil Statutes of Texas, 1925, as
334-10 amended, to the extent practicable, applicable, and appropriate.
334-11 All bonds permitted to be issued under this Act, and the
334-12 appropriate proceedings authorizing their issuance, shall be
334-13 submitted to the Attorney General of the State of Texas for
334-14 examination. If he finds that such bonds have been authorized in
334-15 accordance with the Texas Constitution and this Act he shall
334-16 approve them, and thereupon they shall be registered by the
334-17 Comptroller [of Public Accounts of the State of Texas], without the
334-18 surrender, exchange, or cancellation of the obligations being
334-19 refunded; and notwithstanding any provisions of this Act to the
334-20 contrary, such bonds shall be so registered before the making of
334-21 the deposit with the Comptroller [State Treasurer] as required
334-22 hereunder, and such refunding bonds may be sold and delivered to
334-23 the purchaser thereof in order to permit the issuer to use the
334-24 proceeds from such sale and delivery to make all or any part of
334-25 said deposit. After such approval and registration, such bonds
334-26 shall be incontestable in any court, or other forum, for any
334-27 reason, and shall be valid and binding obligations in accordance
335-1 with their terms for all purposes. All refunding bonds issued
335-2 under this Act, shall be legal and authorized investments for all
335-3 banks, savings banks, trust companies, building and loan
335-4 associations, savings and loan associations, insurance companies of
335-5 all kinds and types, fiduciaries, trustees and guardians, and for
335-6 the interest and sinking funds and other public funds of any
335-7 issuer, as such term is defined in this Act. Said refunding bonds
335-8 also shall be eligible and lawful security for all deposits of
335-9 public funds of the State of Texas and of any issuer, as such term
335-10 is defined in this Act, to the extent of the market value of said
335-11 refunding bonds, when accompanied by any unmatured interest coupons
335-12 appurtenant thereto. Notwithstanding any provisions of this Act to
335-13 the contrary, no refunding bonds shall be issued hereunder unless
335-14 the obligations to be refunded are scheduled to mature or are
335-15 subject to redemption prior to maturity within not more than five
335-16 years from the date of the refunding bonds; and no refunding bonds
335-17 shall be issued hereunder to refund electric and gas system revenue
335-18 bonds issued by any city having a population in excess of 900,000,
335-19 according to the most recent federal census.
335-20 (b) An issuer shall have the right to deposit, or cause to
335-21 be deposited to the Comptroller [State Treasurer of the State of
335-22 Texas] a sum of money equal to the principal amount of the bonds,
335-23 notes, and other evidences of indebtedness which it proposes to
335-24 refund plus the amount of interest which will accrue thereon
335-25 calculated to the date on which it is to become due or on which it
335-26 may be redeemed, together with the amount of contract premium if
335-27 any, required for redemption; the Comptroller [State Treasurer] may
336-1 charge reasonable fees and expenses for services performed under
336-2 this Act. The Comptroller [State Treasurer] may rely on a
336-3 certificate by such issuer as to the amount of the charges made by
336-4 such bank or trust company. At the same time such issuer shall
336-5 deliver to the Comptroller [State Treasurer] a certified copy of
336-6 the ordinance, order, or resolution authorizing said underlying
336-7 obligations, or a certified excerpt therefrom, showing clearly the
336-8 amounts and the date or dates on which interest is due on such
336-9 underlying obligations, the date when the principal becomes subject
336-10 to redemption, and the name and address of the bank or trust
336-11 company at which such principal and interest must be paid. It
336-12 shall be the duty of the Comptroller [State Treasurer] to accept
336-13 such deposits, payments, and instruments, and safely to keep and
336-14 use such money for the purposes set forth in this Act and for no
336-15 other purpose, and no part of such money except that in payment for
336-16 his services and to reimburse his expenses in performing such
336-17 services shall be used by or for the State of Texas or for any
336-18 creditor of the State of Texas, nor shall such money be commingled
336-19 with any other money.
336-20 Sec. 3. DUTY OF COMPTROLLER [STATE TREASURER]. Upon receipt
336-21 of such deposits and payments, it shall be the duty of the
336-22 Comptroller [State Treasurer], if the securities involved are to be
336-23 redeemed at a place of payment other than his office, immediately
336-24 and by the most expeditious means to forward to and deposit with
336-25 the bank or trust company where such underlying securities are
336-26 payable, the amount out of such deposits as is specified as being
336-27 for the payment of the principal and interest, and contract
337-1 premium, if any, on the securities to be redeemed, and for the
337-2 payment of the service charges of such bank or trust company;
337-3 provided however, that the issuer shall have made deposits and
337-4 payments with the Comptroller [State Treasurer] during normal
337-5 banking hours at least one (1) business day prior to the date on
337-6 which such securities are designated to be redeemed. The
337-7 Comptroller [State Treasurer] shall notify such bank or trust
337-8 company to forward to him the underlying securities thus redeemed
337-9 and cancelled, and after the Comptroller [State Treasurer] shall
337-10 have made a record of their payment and cancellation shall forward
337-11 such cancelled bonds, coupons or securities to issuer.
337-12 Sec. 4. ISSUANCE AND SALE OF REFUNDING BONDS; REGISTRATION
337-13 BY COMPTROLLER [OF PUBLIC ACCOUNTS]. When the issuer shall have
337-14 deposited and paid into the Office of the Comptroller [State
337-15 Treasurer] the money, and shall have done the things required by
337-16 Section 2 of this Act, it shall have authority to issue, sell and
337-17 deliver refunding bonds in lieu of the underlying securities,
337-18 despite the fact that the holders of other such underlying
337-19 securities may not have surrendered or presented the same for
337-20 payment; provided that the Attorney General of Texas shall certify
337-21 to the Comptroller [of Public Accounts] as to any underlying
337-22 securities which have not reached their normal maturity date that
337-23 the issuer has validly called the bonds for redemption in
337-24 accordance with the contract rights of the issuer. Where the
337-25 issuer has complied with the requirements of this Act, the
337-26 Comptroller shall register the refunding bonds despite the fact
337-27 that some or all of the underlying securities shall not have been
338-1 surrendered by the holder for payment and cancellation.
338-2 Sec. 6. WITHDRAWAL OF DEPOSITS ON CANCELLATION OF UNDERLYING
338-3 OBLIGATION. After an issuer has made the deposits and payments
338-4 required under Section 2 hereof, the issuer may apply to the
338-5 Comptroller [State Treasurer] to withdraw from the paying agent the
338-6 amount of money deposited on the account of any underlying bond or
338-7 security, together with the deposit for interest thereon and
338-8 premium, if any, by exhibiting to the Comptroller [State Treasurer]
338-9 said obligation duly cancelled, whereupon the Comptroller [State
338-10 Treasurer] shall make a proper record of the payment and
338-11 cancellation of such instrument. No funds so deposited by issuer
338-12 with the Comptroller [State Treasurer] under the provisions of this
338-13 Act shall otherwise be withdrawn by the issuer except upon the
338-14 conditions stated above in this Section, or unless the Attorney
338-15 General of Texas shall certify to the Comptroller [State Treasurer]
338-16 that the payment by the issuer of the underlying security is barred
338-17 by limitation and that payment thereof by the issuer is forbidden
338-18 by law.
338-19 Sec. 7. DEPOSITS WITH COMPTROLLER [STATE TREASURER]; EFFECT;
338-20 REFUNDING OF OBLIGATIONS; FEES; FORWARDING TO PLACE OF PAYMENT;
338-21 TIME OF PAYMENT. When the deposit of money required hereunder is
338-22 made with the Comptroller [State Treasurer] in accordance with this
338-23 Act, for any obligations being refunded pursuant hereto, such
338-24 deposit shall constitute the making of firm banking and financial
338-25 arrangements for the discharge and final payment or redemption of
338-26 the obligations being refunded; provided, however, that, at the
338-27 option of and within the discretion of the issuer, provision may be
339-1 made in the proceedings authorizing the issuance of such refunding
339-2 bonds for the subordination thereof to the obligations being
339-3 refunded, but only in the manner and to the extent specifically
339-4 provided in said proceedings. Immediately after the receipt
339-5 thereof, and by the most expeditious means, it shall be the duty of
339-6 the Comptroller [State Treasurer] to forward to and deposit with
339-7 the place of payment (paying agent) for the obligations being
339-8 refunded all of the money deposited with him pursuant hereto
339-9 (excepting the fees for his services). If there is more than one
339-10 place of payment for the obligations being refunded, the
339-11 Comptroller [State Treasurer] shall forward the aforesaid money
339-12 directly to the one of said places of payment which is located in
339-13 the State of Texas; provided that if more than one of such places
339-14 of payment is located in the State of Texas, or if no place of
339-15 payment is located in the State of Texas and there is more than one
339-16 place of payment located outside of the State of Texas, then said
339-17 money shall be forwarded directly to the one of such places of
339-18 payment having the largest capital and surplus. It shall be the
339-19 duty of the place of payment to deposit the aforesaid money
339-20 received from the Comptroller [State Treasurer] (excepting the
339-21 amount thereof representing the charges of the place of payment)
339-22 into an interest and sinking fund to be established and maintained
339-23 in trust and as a trust fund for the payment of the obligations
339-24 being refunded. Further, it shall be the duty of the place of
339-25 payment, out of said interest and sinking fund, to pay or redeem
339-26 the obligations being refunded when duly presented therefor at the
339-27 maturity, due date, or redemption date thereof. If there is more
340-1 than one place of payment, the one having the deposit shall make
340-2 appropriate financial arrangements so that the necessary funds will
340-3 be available at the other place or places of payment to pay or
340-4 redeem any of such obligations being refunded when so presented for
340-5 payment or redemption. The holder or holders of any obligations
340-6 being refunded by any refunding bonds issued and sold under this
340-7 Act shall not have the right to demand or receive payment thereof
340-8 at any time before the scheduled maturity date or dates, due date
340-9 or dates, or redemption date or dates, respectively, of said
340-10 obligations being refunded, unless the governing body of the issuer
340-11 shall have specifically and affirmatively provided for and
340-12 authorized the earlier payment of said obligations in the
340-13 proceedings authorizing said refunding bonds.
340-14 Sec. 7A. ALTERNATE PROCEDURES; ISSUANCE AND SALE OF
340-15 REFUNDING BONDS; DEPOSITS IN CONNECTION WITH PAYMENT OR REDEMPTION
340-16 OF OBLIGATIONS. Notwithstanding any provision of this Act or any
340-17 other law to the contrary, any issuer may, at its option, in lieu
340-18 of making any deposit with the Comptroller [State Treasurer]
340-19 hereunder, deposit proceeds from the sale of refunding bonds issued
340-20 hereunder, and/or any other available funds or resources, directly
340-21 with any place of payment (paying agent) for any obligations
340-22 payable from revenues or from ad valorem taxes or from both, or
340-23 from any other source, which it wishes to refund, or to pay or
340-24 redeem in whole or in part without the issuance of refunding bonds,
340-25 or with the trustee under any trust indenture, deed of trust, or
340-26 similar instrument securing such obligations, in an amount
340-27 sufficient to provide for the payment and/or redemption of any such
341-1 obligations of the issuer, including assumed obligations, which are
341-2 to be refunded, or to be paid or redeemed in whole or in part
341-3 without the issuance of refunding bonds; and such deposit, if made
341-4 on or before such payment and/or redemption date, shall constitute
341-5 the making of firm banking and financial arrangements for the
341-6 discharge and final payment or redemption of the obligations being
341-7 refunded, or being paid or redeemed in whole or in part without the
341-8 issuance of refunding bonds; and any issuer is authorized to enter
341-9 into an escrow or similar agreement with any such place of payment
341-10 (paying agent) or trustee with respect to the safekeeping,
341-11 investment, reinvestment, administration, and disposition of any
341-12 such deposit, upon such terms and conditions as the parties may
341-13 agree, provided that such deposits may be invested and reinvested
341-14 only in direct obligations of the United States of America,
341-15 including obligations the principal of and interest on which are
341-16 unconditionally guaranteed by the United States of America, and
341-17 which may be in book entry form, and which shall mature and/or bear
341-18 interest payable at such times and in such amounts as will be
341-19 sufficient to provide for the scheduled payment and/or redemption
341-20 of such obligations, and further provided that if any such
341-21 obligations are scheduled to be paid and/or redeemed on a date
341-22 later than the next succeeding scheduled interest payment date
341-23 thereon, the issuer shall be required to enter into an appropriate
341-24 escrow or similar agreement as described above. It is hereby made
341-25 the statutory duty of any place of payment (paying agent) or
341-26 trustee which enters into any such escrow or similar agreement with
341-27 any issuer to comply with the terms of such agreement and timely
342-1 make available to any other place or places of payment (paying
342-2 agent or agents) or trustee or trustees for any of the obligations
342-3 of the same or different series of obligations being refunded,
342-4 paid, or redeemed, the amounts required to provide for the payment
342-5 or redemption of the principal of and interest on such obligations
342-6 when due, and in accordance with their terms, but solely from the
342-7 funds, in the manner, and to the extent provided in such agreement.
342-8 Notwithstanding any provisions of this Act or any other law to the
342-9 contrary, refunding bonds may be issued under this Act to refund
342-10 any obligations which are scheduled to mature, or which are subject
342-11 to redemption prior to maturity, not more than 20 years from the
342-12 date of the refunding bonds, and refunding bonds issued under this
342-13 Act may be sold at public or private sale, under such procedures,
342-14 at any price (at a premium, at par, or at a discount), upon such
342-15 terms, and bear interest at such rate or rates, and mature not more
342-16 than 40 years after their date, all as shall be determined within
342-17 the discretion of the governing body of the issuer; provided that
342-18 Chapter 3, Acts of the 61st Legislature, Regular Session, 1969, as
342-19 now or hereafter amended (Article 717k-2, Vernon's Texas Civil
342-20 Statutes), which pertains generally to the sale price and interest
342-21 rates of all public securities, shall be applicable to said
342-22 refunding bonds; and any issuer is further authorized to pledge to
342-23 the payment of any refunding bonds issued hereunder (i) any surplus
342-24 income to be available from the investment or reinvestment of any
342-25 deposit made as authorized in this Section 7A and/or (ii) any other
342-26 available revenues, income, or resources. The refunding bonds also
342-27 may be issued in an additional amount sufficient to pay the costs
343-1 and expenses of issuing said bonds and sufficient to fund any debt
343-2 service reserve, contingency, or other similar fund deemed
343-3 necessary or advisable by the issuer. Bonds for purposes
343-4 authorized by other laws applicable to an issuer may be issued,
343-5 sold, and delivered by an issuer in combination with refunding
343-6 bonds issued under this Section 7A in accordance with the
343-7 procedures authorized herein. All bonds permitted to be issued
343-8 under Section 7A of this Act, and the appropriate proceedings
343-9 authorizing their issuance, shall be submitted to the Attorney
343-10 General of the State of Texas for examination. If he finds that
343-11 such bonds have been authorized to be issued in accordance with the
343-12 Texas Constitution and this Act he shall approve them, and
343-13 thereupon such bonds shall be registered by the Comptroller [of
343-14 Public Accounts of the State of Texas], without the surrender,
343-15 exchange, or cancellation of the obligations being refunded; and
343-16 notwithstanding any provisions of this Act to the contrary, such
343-17 bonds shall be so approved and registered before the making of the
343-18 deposit with any place of payment (paying agent), escrow agent, or
343-19 trustee as required hereunder, and such refunding bonds may be sold
343-20 and delivered to the purchaser thereof after such approval and
343-21 registration in order to permit the issuer, in timely manner
343-22 determined by the issuer, to use the proceeds from such sale and
343-23 delivery to make all or any part of said deposit. After the
343-24 approval and registration of such bonds and the sale and delivery
343-25 of such bonds to the purchaser thereof, such bonds and the
343-26 proceedings authorizing same, and any escrow agreement pertaining
343-27 thereto, and any contract providing security or payments with
344-1 respect to such bonds shall be incontestable in any court or other
344-2 forum for any reason and shall be valid and binding obligations in
344-3 accordance with their terms for all purposes.
344-4 Sec. 8. COMPTROLLER'S [STATE TREASURER'S] BOND; PROTECTION
344-5 OF DEPOSITS OF MONEYS AND SECURITIES. The bond or bonds given by
344-6 the Comptroller [State Treasurer] under Article 4368 to secure the
344-7 faithful execution of the duties of his office (except such special
344-8 bonds as may have been given to protect funds of the United States
344-9 Government) and any and all other bonds which may have been given
344-10 by the Comptroller [State Treasurer], shall be construed as
344-11 protecting all moneys and securities deposited or placed with the
344-12 Comptroller [State Treasurer] under this Act.
344-13 SECTION 21.22. Section 6A(d), Bond Procedures Act of 1981
344-14 (Article 717k-6, Vernon's Texas Civil Statutes), is amended to read
344-15 as follows:
344-16 (d) The fee is not refundable, regardless of whether the
344-17 bonds are approved. The attorney general shall remit the fees
344-18 collected under this section to the comptroller [state treasurer]
344-19 for deposit to the credit of the general revenue fund.
344-20 SECTION 21.23. Sections 2 and 4, Chapter 1078, Acts of the
344-21 70th Legislature, Regular Session, 1987 (Article 717k-7, Vernon's
344-22 Texas Civil Statutes), are amended to read as follows:
344-23 Sec. 2. BOND REVIEW BOARD. (a) The bond review board is
344-24 composed of:
344-25 (1) the governor;
344-26 (2) the lieutenant governor;
344-27 (3) the speaker of the house of representatives;
345-1 [(4) the state treasurer;] and
345-2 (4) [(5)] the comptroller of public accounts.
345-3 (b) A member of the board may designate another person to
345-4 act on the member's behalf.
345-5 (c) The governor is chairman of the board.
345-6 (d) If the speaker of the house of representatives is not
345-7 permitted by the Texas Constitution to serve as a voting member of
345-8 the board, the speaker of the house of representatives serves as a
345-9 nonvoting member of the board.
345-10 Sec. 4. BOND FINANCE OFFICE. The bond finance office is
345-11 managed by a director appointed by the bond review board and a
345-12 staff selected by the director. Whenever practical, the office
345-13 shall make use of the resources of the Legislative Budget Board and
345-14 the offices of the governor and[,] comptroller[, and treasurer].
345-15 SECTION 21.24. Section 4, Public School Facilities Funding
345-16 Act (Article 717t, Vernon's Texas Civil Statutes), is amended to
345-17 read as follows:
345-18 Sec. 4. PURPOSE. The purpose of this Act is to create funds
345-19 to be administered by the comptroller [state treasurer] as directed
345-20 by the board and funded by proceeds from the sale or refunding of
345-21 bonds. The funds are to be used to determine the needs of
345-22 qualifying districts in acquiring, constructing, renovating,
345-23 performing major repairs to, remodeling, retrofitting, or improving
345-24 qualifying capital assets and instructional facilities and to
345-25 provide loans and other aid for those purposes, for paying
345-26 maintenance expenses, and to aid school districts in the bond
345-27 issuance process. This Act shall be construed liberally to effect
346-1 its purpose.
346-2 SECTION 21.25. Section 5(d), Public School Facilities
346-3 Funding Act (Article 717t, Vernon's Texas Civil Statutes), is
346-4 amended to read as follows:
346-5 (d) The board may promulgate and issue rules not
346-6 inconsistent with this Act as provided for by Chapter 2001 [the
346-7 Administrative Procedure and Texas Register Act (Article 6252-13a,
346-8 Vernon's Texas Civil Statutes)]. The comptroller [state treasurer]
346-9 shall act as the issuer of bonds authorized by the board and shall
346-10 perform any accounting or funds management duties which are allowed
346-11 or required under this Act as directed by the board.
346-12 SECTION 21.26. Sections 6(a) and (e), Public School
346-13 Facilities Funding Act (Article 717t, Vernon's Texas Civil
346-14 Statutes), are amended to read as follows:
346-15 (a) The school facilities aid fund is hereby created as a
346-16 special revolving fund in the state treasury. The fund shall be
346-17 administered by the comptroller [state treasurer] as directed by
346-18 the board under this Act and rules adopted by the board. The fund
346-19 shall be used to provide aid to qualifying districts for the
346-20 purpose of aiding those districts in the acquisition, construction,
346-21 renovation, major repair, remodeling, retrofitting, or improvement
346-22 of capital assets and instructional facilities that meet the
346-23 board's standards for qualification under this Act, to provide aid
346-24 to qualifying districts to fund their cash-management programs or
346-25 other short-term borrowing needs for maintenance purposes, and to
346-26 aid school districts in the bond issuance process. The fund may
346-27 also be used to pay the costs of a study of the needs of school
347-1 districts in all or part of the state for the acquisition,
347-2 construction, renovation, major repair, remodeling, retrofitting,
347-3 or improvement of qualifying capital assets and instructional
347-4 facilities or for assistance in paying maintenance expenses. Money
347-5 in the fund shall not be commingled or otherwise deposited to the
347-6 credit of any other fund in the state treasury, except as provided
347-7 by this Act.
347-8 (e) The board may direct the comptroller [state treasurer]
347-9 to create accounts within the fund as shall seem advisable. Such
347-10 accounts shall be kept separate from other accounts within the fund
347-11 and shall receive such amounts as the board shall transfer or
347-12 dedicate to them. The board may in the resolution authorizing the
347-13 issuance of bonds dedicate an account or accounts within the fund,
347-14 including future amounts to be deposited within an account, to the
347-15 payment of debt service on one or more series of bonds issued under
347-16 this Act. The board may also direct the comptroller [state
347-17 treasurer] to pledge such an account or accounts as security for
347-18 bonds issued under this Act.
347-19 SECTION 21.27. Sections 7(a) and (e), Public School
347-20 Facilities Funding Act (Article 717t, Vernon's Texas Civil
347-21 Statutes), are amended to read as follows:
347-22 (a) The board may direct the comptroller [state treasurer]
347-23 to create a school facilities aid reserve fund within the state
347-24 treasury and deposit in that fund the proceeds of bonds issued
347-25 pursuant to this Act, as well as any repayments of interest or
347-26 principal from aid granted under this Act, or other amounts that
347-27 may be transferred from the fund, which are required to be
348-1 deposited therein by any resolution of the board. Money in the
348-2 reserve fund shall be held and applied solely to the payment of the
348-3 principal or redemption price of and interest on bonds issued
348-4 pursuant to this Act as they become due and payable, either
348-5 directly or by transfer to the fund for those purposes. Except as
348-6 provided in this section, no money may be removed from the reserve
348-7 fund or an account within the reserve fund if that action would
348-8 reduce the amount therein to less than the required debt service
348-9 reserve. As used in this Act, "required debt service reserve"
348-10 means, as of the date of computation, the amount or amounts
348-11 required to be on deposit in the reserve fund or an account within
348-12 it as provided by resolution of the board. In computing the amount
348-13 of the required debt service reserve, investments held therein
348-14 shall be valued in such manner as shall be determined by resolution
348-15 of the board.
348-16 (e) The board may direct the comptroller [state treasurer]
348-17 to create accounts within the reserve fund as seems advisable.
348-18 Such accounts shall be kept separate from other accounts within the
348-19 reserve fund and shall receive such amounts as the board shall
348-20 transfer or dedicate to them. The board may pledge an account or
348-21 accounts within the reserve fund, including future amounts to be
348-22 deposited within an account, as security for one or more series of
348-23 bonds issued under this Act.
348-24 SECTION 21.28. Sections 8(a), (d), (f), and (h), Public
348-25 School Facilities Funding Act (Article 717t, Vernon's Texas Civil
348-26 Statutes), are amended to read as follows:
348-27 (a) The board may by resolution provide for the issuance of
349-1 revenue bonds by the comptroller [state treasurer] for the purposes
349-2 of this Act in an amount not to exceed $750 million outstanding at
349-3 any one time. Bonds which are or have been refunded shall not
349-4 count against the limit imposed on outstanding bonds. The board
349-5 may specify a principal amount and a date of delivery of the
349-6 proceeds of bonds issued under this Act.
349-7 (d) The bonds issued under this Act shall be authorized by
349-8 resolution of the board and approved in the same manner as other
349-9 bonds issued by the state. The comptroller [state treasurer] shall
349-10 issue bonds authorized and approved by the board. Bonds issued
349-11 under this Act shall have the form and bear the designations as
349-12 directed by board resolution.
349-13 (f) All proceedings relating to the issuance of bonds
349-14 pursuant to this Act shall be submitted to the attorney general for
349-15 examination. If the attorney general finds that the proceedings
349-16 have been authorized in accordance with law, the proceedings
349-17 authorizing the bonds issued pursuant to this Act shall be
349-18 approved, and the bonds shall be issued by the comptroller [state
349-19 treasurer] and registered by the comptroller [of public accounts]
349-20 in a manner consistent with Chapter 53, Acts of the 70th
349-21 Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
349-22 Texas Civil Statutes). After approval and registration, the bonds
349-23 and proceedings relating thereto are incontestable in any court or
349-24 other forum for any reason and are valid and binding obligations in
349-25 accordance with their terms for all purposes.
349-26 (h) In addition to the powers granted by this Act, the
349-27 comptroller [state treasurer] may exercise the rights and powers
350-1 granted to the housing finance division of the Texas Department of
350-2 Housing and Community Affairs as provided for by Chapter 2306,
350-3 Government Code, [Article 4413(501), Revised Statutes,] in
350-4 connection with the issuance and administration of bonds. Further,
350-5 in connection with the issuance and administration of bonds, the
350-6 comptroller [state treasurer] may exercise the rights and powers
350-7 granted to an issuer under Chapter 503, Acts of the 54th
350-8 Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes);
350-9 the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas
350-10 Civil Statutes); and Chapter 656, Acts of the 68th Legislature,
350-11 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
350-12 Statutes).
350-13 SECTION 21.29. Sections 12(a) and (b), Public School
350-14 Facilities Funding Act (Article 717t, Vernon's Texas Civil
350-15 Statutes), are amended to read as follows:
350-16 (a) A school district shall make payments of principal and
350-17 interest on obligations purchased by the board directly to the
350-18 comptroller [state treasurer] for deposit in the fund.
350-19 (b) If the comptroller [state treasurer] receives
350-20 notification from a school district that it will not make a timely
350-21 payment on a loan made under this Act or if a school district fails
350-22 to make a timely payment of principal or interest due on a loan
350-23 made under this Act, the comptroller [state treasurer] shall notify
350-24 the board and the commissioner of education and shall notify the
350-25 local district in writing by certified mail. Except as provided by
350-26 Subsection (c) of this section, the Central Education Agency shall
350-27 deduct the total amount due to the board or fund, including
351-1 interest and any applicable late payment charges as of the date of
351-2 notification, from the foundation school fund payment next due to
351-3 that school district, including any allocations to that district
351-4 under Chapter 16, Education Code, and shall continue making the
351-5 deductions from subsequent foundation school fund payments until
351-6 the total amount then due has been deducted. The Central Education
351-7 Agency shall credit the full amount of a foundation school fund
351-8 entitlement to a school district prior to making the deduction.
351-9 The amount of such a deduction shall then be paid to the fund or to
351-10 an account within the fund as the board may direct, on behalf of
351-11 the district. Should the board determine that a deduction or any
351-12 part thereof which was deposited in the fund was made erroneously,
351-13 it may authorize payment from the fund of that amount directly to a
351-14 district against which a deduction was made.
351-15 SECTION 21.30. Section 4(a), College Opportunity Act
351-16 (Article 717u, Vernon's Texas Civil Statutes), is amended to read
351-17 as follows:
351-18 (a) The College Opportunity Act committee consists of:
351-19 (1) the commissioner of the General Land Office, the
351-20 commissioner of higher education, the executive administrator of
351-21 the Texas Water Development Board, the comptroller, [the state
351-22 treasurer,] and the executive director of the bond review board,
351-23 who serve as ex officio members; and
351-24 (2) three members of the public appointed by the
351-25 governor with the advice and consent of the senate.
351-26 SECTION 21.31. Section 10(c), Chapter 852, Acts of the 69th
351-27 Legislature, Regular Session, 1985 (Article 969a-2, Vernon's Texas
352-1 Civil Statutes), is amended to read as follows:
352-2 (c) Refunding obligations must be authorized and executed
352-3 and mature as provided by this Act for original obligations. The
352-4 attorney general shall approve them as in the case of original
352-5 obligations, and the comptroller shall register them on surrender
352-6 and cancellation of the obligations refunded, except that if the
352-7 ordinance or resolution authorizing their issuance provides that
352-8 they be sold at public or private sale and the proceeds deposited
352-9 in a place where the refunded obligations are payable or with the
352-10 Comptroller [State Treasurer] and the refunding obligations are
352-11 issued in an amount sufficient to pay the principal of the refunded
352-12 obligations and the interest on the refunded obligations until
352-13 their option or maturity dates, the comptroller shall register them
352-14 without the surrender and cancellation of the refunded obligations.
352-15 Proceeds of revenue refunding obligations deposited in a place
352-16 where the refunded obligations are payable or with the Comptroller
352-17 [State Treasurer] shall be held under an escrow agreement under
352-18 which the proceeds and interest earned on the proceeds will be
352-19 available for the payment of the interest on and principal of the
352-20 refunded obligations as they become due. The escrow agreement may
352-21 provide that the proceeds, until they are needed to pay interest
352-22 and principal, may be invested in direct obligations of the United
352-23 States. Interest earned on these investments may be pledged to the
352-24 payment of the principal of and interest on the refunded
352-25 obligations or the refunding obligations or may be considered as
352-26 revenues of the island property.
352-27 SECTION 21.32. Sections 2, 3, 4, 6, 7, and 9, Chapter 446,
353-1 Acts of the 50th Legislature, Regular Session, 1947 (Article
353-2 1118n-4, Vernon's Texas Civil Statutes), are amended to read as
353-3 follows:
353-4 Sec. 2. DEPOSIT IN STATE TREASURY OF AMOUNT OF OUTSTANDING
353-5 WATERWORKS REVENUE BONDS. An eligible city shall have the right to
353-6 deposit in the office of the Comptroller [State Treasurer] of the
353-7 State of Texas a sum of money equal to the principal amount of its
353-8 said outstanding and unpaid waterworks revenue bonds plus the
353-9 amount of interest which will accrue on each of said bonds
353-10 calculated to the date on which it may be redeemed and the amount
353-11 of contract premium if any, and concurrently with such deposit
353-12 shall pay to the Comptroller [State Treasurer] for his services and
353-13 to reimburse him for his expenses in performing his duties under
353-14 this Act a sum of money equivalent to one-eighth (1/8) of one per
353-15 cent (1%) of the principal amount of said bonds and one fourth
353-16 (1/4) of one per cent (1%) of the interest to accrue on all of said
353-17 bonds, and an additional amount of money sufficient to pay the
353-18 charges of the bank or trust company at which the principal and
353-19 interest of said bonds are payable for its services in paying such
353-20 principal and interest. The Comptroller [State Treasurer] may rely
353-21 on a certificate by such city as to the amount of the charges made
353-22 by such bank or trust company. At the same time such city shall
353-23 deliver to the Comptroller [State Treasurer] a certified copy of
353-24 the ordinance authorizing said revenue bonds, or a certified
353-25 excerpt therefrom, showing clearly the amounts and the date or
353-26 dates on which interest is due on such bonds, the date when the
353-27 principal becomes subject to redemption, and the name and address
354-1 of the bank or trust company at which such principal and interest
354-2 must be paid. It shall be the duty of the Comptroller [State
354-3 Treasurer] to accept such deposits, payments, and instruments, and
354-4 safely to keep and use such money for the purposes set forth in
354-5 this Act and for no other purpose, and no part of such money except
354-6 that in payment for his services and to reimburse his expenses in
354-7 performing such services shall be used by or for the State of Texas
354-8 or for any creditor of the State of Texas, nor shall such money be
354-9 commingled with any other money.
354-10 Sec. 3. COMPTROLLER [STATE TREASURER] TO FORWARD MONEY TO
354-11 BANK WHERE BONDS ARE PAYABLE. It shall be the duty of the
354-12 Comptroller [State Treasurer] not less than fifteen (15) days
354-13 before such interest is due according to the tenor and effect of
354-14 said bonds, and the principal becomes redeemable, to forward by
354-15 registered mail to the bank or trust company where the principal of
354-16 and interest on such bonds are payable, an amount sufficient to pay
354-17 such principal and interest and premium if any, and to pay the
354-18 service charges of such bank or trust company. The Comptroller
354-19 [State Treasurer] shall notify such bank or trust company to
354-20 forward to him bonds and coupons thus cancelled, and after he shall
354-21 have made a record of their payment and cancellation shall forward
354-22 such cancelled bonds and coupons to such city.
354-23 Sec. 4. ADDITIONAL REVENUE BONDS. When an eligible city
354-24 shall have deposited and paid into the office of the Comptroller
354-25 [State Treasurer] the money and shall have done the things required
354-26 under Section 2 it shall have authority to issue additional revenue
354-27 bonds, securing them by a pledge of the revenue from the operation
355-1 of its waterworks system or of its waterworks and sewer systems, in
355-2 such manner as is authorized by Articles 1111 to 1118 of the
355-3 Revised Civil Statutes of Texas, 1925, as amended, and for the
355-4 purposes authorized in said Articles, and for the purpose of
355-5 providing money to enable the city to comply with Section 2 of this
355-6 Act. The deposit authorized by Section 1 hereof to be made with
355-7 the Comptroller [State Treasurer] shall be made prior to or
355-8 concurrently with the sale and delivery of the new bonds authorized
355-9 by this Act, but all other proceedings relating to the
355-10 authorization and issuance of such bonds may be had prior to the
355-11 making of such deposit. No revenue bonds shall be issued under
355-12 authority of this Section 5 unless they shall have been authorized
355-13 at an election held in such city in accordance with the provisions
355-14 of Article 704 of the Revised Civil Statutes of Texas, 1925, as
355-15 amended by Chapter 382, Acts of the First Called Session of the
355-16 Forty-fourth Legislature. It is especially provided that
355-17 regardless of any provisions to the contrary contained in the law
355-18 under which such new revenue bonds are to be issued, they shall
355-19 constitute a first charge on the income of the waterworks system or
355-20 waterworks and sewer systems, after the payment of the expense of
355-21 maintenance and operation of such system or systems subject only to
355-22 any payments which must be made to the Comptroller [State
355-23 Treasurer] from such income to prevent any default in principal of
355-24 or interest on such outstanding revenue bonds, for the benefit of
355-25 which such deposit shall have been made with the Comptroller [State
355-26 Treasurer]. The right of the holders of said outstanding revenue
355-27 bonds to have any deficiency paid out of such income shall remain
356-1 unimpaired.
356-2 Sec. 6. WITHDRAWAL OF DEPOSITS FROM STATE TREASURY. After
356-3 an eligible city has made the deposits and payments required under
356-4 Section 2, at any time it may withdraw from the State Treasury the
356-5 amount of money, both principal and interest, deposited on account
356-6 of any bond by exhibiting to the Comptroller [State Treasurer] said
356-7 bond duly cancelled, whereupon the Comptroller [State Treasurer]
356-8 shall make a proper record of the payment and cancellation of such
356-9 bond.
356-10 Sec. 7. RIGHTS OF HOLDERS OF BONDS TO SURRENDER BONDS. At
356-11 any time after an eligible city shall have made the deposits and
356-12 payments required under Section 2, the holder of any such bond,
356-13 irrespective of its maturity date, shall have the right to
356-14 surrender such bond to the Comptroller [State Treasurer] and shall
356-15 receive therefor a sum equivalent to all money then remaining on
356-16 deposit with the Comptroller [State Treasurer], made on account of
356-17 such surrendered bond. Whereupon such bond shall be duly cancelled
356-18 by the Comptroller [State Treasurer], and delivered or forwarded to
356-19 such city.
356-20 Sec. 9. BOND OF COMPTROLLER [STATE TREASURER]. The bond or
356-21 bonds given by the Comptroller [State Treasurer] under Article 4368
356-22 to secure the faithful execution of the duties of his office
356-23 (except such special bonds as may have been given to protect funds
356-24 of the United States Government) and any and all other bonds which
356-25 may have been given by the Comptroller [State Treasurer] shall be
356-26 construed as protecting all moneys and securities deposited or
356-27 placed with the Comptroller [State Treasurer] under this Act.
357-1 SECTION 21.33. Sections 2, 3, 4, 6, 7, and 9, Chapter 541,
357-2 Acts of the 51st Legislature, Regular Session, 1949 (Article
357-3 1118n-5, Vernon's Texas Civil Statutes), are amended to read as
357-4 follows:
357-5 Sec. 2. DEPOSITS WITH COMPTROLLER [STATE TREASURER]. An
357-6 eligible city shall have the right to deposit in the office of the
357-7 Comptroller [State Treasurer] of the State of Texas a sum of money
357-8 equal to the principal amount of its said outstanding and unpaid
357-9 revenue bonds plus the amount of interest which will accrue on each
357-10 of said bonds calculated to the date on which it is to become due
357-11 or on which it may be redeemed and the amount of contract premium
357-12 if any, and concurrently with such deposit shall pay to the
357-13 Comptroller [State Treasurer] for his services and to reimburse him
357-14 for his expenses in performing his duties under this Act a sum of
357-15 money equivalent to one-twentieth (1/20) of one (1%) per cent of
357-16 the principal amount of said bonds and one-eighth (1/8) of one (1%)
357-17 per cent of the interest to accrue on all of said bonds, and an
357-18 additional amount of money sufficient to pay the charges of the
357-19 bank or trust company at which the principal and interest of said
357-20 bonds are payable for its services in paying such principal and
357-21 interest. The Comptroller [State Treasurer] may rely on a
357-22 certificate by such city as to the amount of the charges made by
357-23 such bank or trust company. At the same time such city shall
357-24 deliver to the Comptroller [State Treasurer] a certified copy of
357-25 the ordinance authorizing said revenue bonds, or a certified
357-26 excerpt therefrom, showing clearly the amounts and the date or
357-27 dates on which interest is due on such bonds, the date when the
358-1 principal becomes subject to redemption, and the name and address
358-2 of the bank or trust company at which such principal and interest
358-3 must be paid. It shall be the duty of the Comptroller [State
358-4 Treasurer] to accept such deposits, payments, and instruments, and
358-5 safely to keep and use such money for the purposes set forth in
358-6 this Act and for no other purpose, and no part of such money except
358-7 that in payment for his services and to reimburse his expenses in
358-8 performing such services shall be used by or for the State of Texas
358-9 or for any creditor of the State of Texas, nor shall such money be
358-10 commingled with any other money.
358-11 Sec. 3. DUTIES OF COMPTROLLER [STATE TREASURER]. It shall
358-12 be the duty of the Comptroller [State Treasurer] not less than
358-13 fifteen (15) days before such interest is due according to the
358-14 tenor and effect of said bonds, and the principal becomes
358-15 redeemable, to forward by registered mail to the bank or trust
358-16 company where the principal of and interest on such bonds are
358-17 payable, an amount sufficient to pay such principal and interest,
358-18 and premium if any, and to pay the service charges of such bank or
358-19 trust company. The Comptroller [State Treasurer] shall notify such
358-20 bank or trust company to forward to him bonds and coupons thus
358-21 cancelled, and after he shall have made a record of their payment
358-22 and cancellation shall forward such cancelled bonds and coupons to
358-23 such city.
358-24 Sec. 4. ISSUANCE OF NEW BONDS. When an eligible city shall
358-25 have deposited and paid into the office of the Comptroller [State
358-26 Treasurer] the money and shall have done the things required under
358-27 Section 2 it shall have authority to issue additional revenue
359-1 bonds, securing them by a pledge of the revenue from the operation
359-2 of its waterworks system or of its waterworks and sewer systems, in
359-3 such manner as is authorized by Articles 1111 to 1118 of the
359-4 Revised Civil Statutes of Texas, 1925, as amended, and for the
359-5 purposes authorized in said Articles. The deposit authorized by
359-6 Section 1 hereof to be made with the Comptroller [State Treasurer]
359-7 shall be made prior to or concurrently with the sale and delivery
359-8 of the new bonds authorized by this Act, but all other proceedings
359-9 relating to the authorization and issuance of such bonds may be had
359-10 prior to the making of such deposit. No revenue bonds shall be
359-11 issued under authority of this Section 5 unless they shall have
359-12 been authorized at an election held in such city in accordance with
359-13 the provisions of Article 704 of the Revised Civil Statutes of
359-14 Texas, 1925, as amended by Chapter 382, Acts of the First Called
359-15 Session of the 44th Legislature. It is especially provided that
359-16 regardless of any provisions to the contrary contained in the law
359-17 under which such new revenue bonds are to be issued, they shall
359-18 constitute a first charge on the income of the waterworks system or
359-19 waterworks and sewer systems, after the payment of the expense of
359-20 maintenance and operation of such system or systems subject only to
359-21 any payments which must be made to the Comptroller [State
359-22 Treasurer] from such income to prevent any default in principal of
359-23 or interest on such outstanding revenue bonds, for the benefit of
359-24 which such deposit shall have been made with the Comptroller [State
359-25 Treasurer]. The right of the holders of said outstanding revenue
359-26 bonds to have any deficiency paid out of such income shall remain
359-27 unimpaired.
360-1 Sec. 6. WITHDRAWAL OF DEPOSITS. After an eligible city has
360-2 made the deposits and payments required under Section 2, at any
360-3 time it may withdraw from the State Treasury the amount of money,
360-4 both principal and interest, deposited on account of any bond by
360-5 exhibiting to the Comptroller [State Treasurer] said bond duly
360-6 cancelled, whereupon the Comptroller [State Treasurer] shall make a
360-7 proper record of the payment and cancellation of such bond.
360-8 Sec. 7. SURRENDER, PAYMENT AND CANCELLATION OF BONDS. At
360-9 any time after an eligible city shall have made the deposits and
360-10 payments required under Section 2, the holder of any such bond,
360-11 irrespective of its maturity date, shall have the right to
360-12 surrender such bond to the Comptroller [State Treasurer] and shall
360-13 receive therefor a sum equivalent to all money then remaining on
360-14 deposit with the Comptroller [State Treasurer], made on account of
360-15 such surrendered bond. Whereupon such bond shall be duly cancelled
360-16 by the Comptroller [State Treasurer], and delivered or forwarded to
360-17 such city.
360-18 Sec. 9. BONDS OF COMPTROLLER [STATE TREASURER]. The bond or
360-19 bonds given by the Comptroller [State Treasurer] under Article 4368
360-20 to secure the faithful execution of the duties of his office
360-21 (except such special bonds as may have been given to protect funds
360-22 of the United States Government) and any and all other bonds which
360-23 may have been given by the Comptroller [State Treasurer], shall be
360-24 construed as protecting all moneys and securities deposited or
360-25 placed with the Comptroller [State Treasurer] under this Act.
360-26 SECTION 21.34. Sections 5, 6, 7, 9, and 11, Chapter 320,
360-27 Acts of the 54th Legislature, Regular Session, 1955 (Article
361-1 1118n-7, Vernon's Texas Civil Statutes), are amended to read as
361-2 follows:
361-3 Sec. 5. DEPOSIT IN STATE TREASURY OF OUTSTANDING WATER
361-4 SYSTEM REVENUE BONDS. An Eligible City shall have the right to
361-5 deposit in the office of the Comptroller [State Treasurer] of the
361-6 State of Texas a sum of money equal to the principal amount of its
361-7 outstanding and unpaid water system revenue bonds that cannot be
361-8 obtained for refunding or redemption plus the amount of interest
361-9 which will accrue on each of said bonds calculated to the date on
361-10 which it is to become due or the date on which it is to become
361-11 optional for prior redemption, or on which it may be redeemed, and
361-12 the contract premium, if any, and, concurrently with such deposit,
361-13 shall pay to the Comptroller [State Treasurer] for his services and
361-14 to reimburse him for his expenses in performing his duties under
361-15 this Act a sum of money equivalent to one-eighth (1/8) of one per
361-16 cent (1%) of the principal amount of said bonds, and one-fourth
361-17 (1/4) of one per cent (1%) of the interest to accrue on all said
361-18 bonds, and an additional amount of money sufficient to pay the
361-19 charges of the bank or trust company at which the principal and
361-20 interest on said bonds are payable for its services in paying such
361-21 principal and interest. The Comptroller [State Treasurer] may rely
361-22 on a certificate by such city as to the amount of the charges made
361-23 by such bank or trust company. At the same time, such city shall
361-24 deliver to the Comptroller [State Treasurer] a certified copy of
361-25 the ordinance authorizing such water system revenue bonds, or a
361-26 certified excerpt therefrom, showing clearly the amounts and the
361-27 date or dates on which interest is due on such bonds, the date when
362-1 the principal matures, and the name and address of the bank or
362-2 trust company at which such principal and interest must be paid.
362-3 It shall be the duty of the Comptroller [State Treasurer] to accept
362-4 such deposits, payments and instruments, and safely to keep and use
362-5 such money for the purposes set forth in this Act, and for no other
362-6 purpose, and no part of such money, except that in payment for his
362-7 services and to reimburse his expenses in performing such services,
362-8 shall be used by or for the State of Texas, or for any creditor of
362-9 the State of Texas, nor shall such money be commingled with any
362-10 other money.
362-11 Sec. 6. COMPTROLLER'S [STATE TREASURER'S] DUTIES. It shall
362-12 be the duty of the Comptroller [State Treasurer] not less than
362-13 fifteen (15) days before such interest is due according to the
362-14 tenor and effect of said bonds, and the principal becomes due, to
362-15 forward by registered mail to the bank or trust company where the
362-16 principal of and interest on such bonds are payable, an amount
362-17 sufficient to pay such principal and interest, and to pay the
362-18 service charges of such bank or trust company. The Comptroller
362-19 [State Treasurer] shall notify such bank or trust company to
362-20 forward to him bonds and coupons thus canceled, and after he shall
362-21 have made a record of their payment and cancellation shall forward
362-22 such canceled bonds and coupons to such city. When an Eligible
362-23 City shall have deposited and paid into the office of the
362-24 Comptroller [State Treasurer] the money and shall have done the
362-25 things required under Section 3 it shall have authority to issue
362-26 additional revenue bonds and refunding bonds as permitted in
362-27 Section 2 hereof.
363-1 Sec. 7. RIGHTS OF HOLDERS TO SURRENDER BONDS. At any time
363-2 after an Eligible City shall have made the deposits and payments
363-3 required under Section 5 of this Act, the holder of any such bond,
363-4 irrespective of its maturity date, shall have the right to
363-5 surrender such bond to the Comptroller [State Treasurer] and shall
363-6 receive therefor a sum equivalent to all money then remaining on
363-7 deposit with the Comptroller [State Treasurer], made on account of
363-8 such surrendered bond; whereupon such bond shall be duly canceled
363-9 by the Comptroller [State Treasurer] and delivered or forwarded to
363-10 such city.
363-11 Sec. 9. WITHDRAWAL OF DEPOSITS FROM STATE TREASURY. After
363-12 an Eligible City has made the deposits and payments required under
363-13 Section 5, at any time it may withdraw from the State Treasury the
363-14 amount of money, both principal and interest, deposited on account
363-15 of any bond by exhibiting to the Comptroller [State Treasurer] said
363-16 bond duly canceled, whereupon the Comptroller [State Treasurer]
363-17 shall make a proper record of the payment and cancellation of such
363-18 bond.
363-19 Sec. 11. BOND OF COMPTROLLER [STATE TREASURER]. The bond or
363-20 bonds given by the Comptroller [State Treasurer] under Article 4368
363-21 to secure the faithful execution of the duties of his office
363-22 (except such special bonds as may have been given to protect funds
363-23 of the United States Government) and any and all other bonds which
363-24 may have been given by the Comptroller [State Treasurer] shall be
363-25 construed as protecting all moneys and securities deposited or
363-26 placed with the Comptroller [State Treasurer] under this Act.
363-27 SECTION 21.35. Section 2, Chapter 119, Acts of the 58th
364-1 Legislature, Regular Session, 1963 (Article 1118n-10, Vernon's
364-2 Texas Civil Statutes), is amended to read as follows:
364-3 Sec. 2. REFUNDING BONDS SECURED BY PLEDGE OF REVENUES;
364-4 ISSUANCE; INTEREST; DEPOSITS IN STATE TREASURY. An Eligible City
364-5 is authorized to issue bonds, without the necessity of an election,
364-6 for the purpose of refunding outstanding waterworks revenue bonds
364-7 and sewer revenue bonds into an issue of refunding bonds which will
364-8 be secured by and payable from a pledge of revenues of both the
364-9 waterworks system and the sewer system. Such refunding bonds shall
364-10 bear a rate of interest specified by the governing body of the
364-11 City, but not to exceed six per cent (6%) per annum, and mature
364-12 serially or otherwise in not to exceed forty (40) years. All or
364-13 any part of such refunding bonds may, in lieu of being exchanged by
364-14 the Comptroller of Public Accounts for outstanding bonds, be sold
364-15 for cash, in which event, there shall be deposited with the
364-16 Comptroller [State Treasurer] an amount of money sufficient to pay
364-17 the unexchanged portion thereof plus interest to maturity on bonds
364-18 which are not optional for redemption prior to maturity, and to the
364-19 option date on bonds which are optional. There shall also be
364-20 deposited with the Comptroller [State Treasurer] the additional
364-21 amount required by Chapter 541, Acts of the Fifty-first Legislature
364-22 as amended. The Comptroller [State Treasurer] shall hold and
364-23 disburse such funds as provided in Chapter 541 except that he is
364-24 not required to transmit money to the Trustee or the bank of
364-25 payment until one business day before each interest payment date on
364-26 the bonds being refunded.
364-27 SECTION 21.36. Section 2A(d), Chapter 627, Acts of the 63rd
365-1 Legislature, Regular Session, 1973 (Article 1118n-11, Vernon's
365-2 Texas Civil Statutes), is amended to read as follows:
365-3 (d) As to refunding bonds covered by this section, if
365-4 obligations to be refunded are not callable at the time of
365-5 refunding but will be subject to redemption before maturity, the
365-6 issuer may provide in the refunding proceedings for redeeming those
365-7 obligations before maturity, and if it does so, the issuer need
365-8 deposit with the Comptroller [State Treasurer] under this Act no
365-9 more than is necessary to provide for payment of the principal and
365-10 interest on those obligations as they are redeemed.
365-11 SECTION 21.37. Sections 4, 6, 7, and 8, Chapter 627, Acts of
365-12 the 63rd Legislature, Regular Session, 1973 (Article 1118n-11,
365-13 Vernon's Texas Civil Statutes), are amended to read as follows:
365-14 Sec. 4. SALE FOR CASH; REDEMPTION. The refunding bonds
365-15 authorized by this Act shall be sold for cash in such manner and at
365-16 such price (not less than par and accrued interest to date of
365-17 delivery) as determined within the discretion of the governing body
365-18 of the issuer, and may be sold in such principal amounts as are
365-19 necessary to provide all or any part of the money required to pay
365-20 the principal of and interest on any obligations being refunded, as
365-21 the same mature and come due, or to provide all or any part of the
365-22 money required to redeem any obligations being refunded, prior to
365-23 maturity, on the date or dates upon which said obligations have
365-24 been called for such redemption, including principal, any required
365-25 premium, the interest to accrue on said obligations to said
365-26 redemption date or dates, together with an amount sufficient to pay
365-27 all expenses related to the issuance of the refunding bonds and the
366-1 expenses of paying the obligations being refunded under this Act.
366-2 If any of the obligations being refunded through the sale of
366-3 refunding bonds under this Act are subject to redemption prior to
366-4 maturity, they shall be duly called for such redemption on a date
366-5 or dates upon which they are so redeemable, in accordance with the
366-6 terms thereof, and the proceedings pertaining to such call, and any
366-7 notice of redemption required in connection therewith, shall be
366-8 submitted to the attorney general along with the proceedings
366-9 authorizing the issuance of said refunding bonds. However, if the
366-10 notice of redemption in connection with any such obligations being
366-11 refunded is required by the terms thereof to be given or published
366-12 at some future time after the date of the refunding bonds, such
366-13 obligations shall not be considered as being then subject to
366-14 redemption prior to maturity for the purposes of this Act, and in
366-15 calculating the amount required to be deposited with the
366-16 Comptroller [state treasurer] under this Act, such amount shall be
366-17 made sufficient to provide for the payment of the principal of and
366-18 interest on said obligations being refunded as the same mature and
366-19 come due, without being redeemed prior to maturity.
366-20 Sec. 6. DEPOSITS WITH COMPTROLLER [TREASURER]; CERTIFICATION
366-21 OF DEPOSIT ADEQUACY; DUTIES OF COMPTROLLER [TREASURER]. (a) The
366-22 issuer shall immediately deposit with the Comptroller [state
366-23 treasurer] (1) the proceeds from the sale of the refunding bonds,
366-24 to the extent such proceeds are not invested, and (2) all of said
366-25 investments, and (3) an additional amount, if necessary, which
366-26 shall be sufficient together with such other deposits to pay the
366-27 principal of and interest on the obligations being refunded, to pay
367-1 the Comptroller [state treasurer] for his services and to reimburse
367-2 him for his expenses in performing his duties under this Act, equal
367-3 to one-twentieth of one percent of the principal or par amount of
367-4 the obligations being refunded, and one-eighth of one percent of
367-5 the interest to accrue thereon (but not to exceed a total of $2,000
367-6 in connection with each issue of refunding bonds issued hereunder),
367-7 plus an additional amount of money sufficient to pay the service
367-8 charges of the place or places of payment of said obligations for
367-9 paying and redeeming same. The Comptroller [treasurer] shall
367-10 certify to the issuer as to the adequacy of the investments (and
367-11 money) deposited, giving due regard to the dates the principal and
367-12 interest on the investments are scheduled to mature and come due.
367-13 In calculating the adequacy of said investments required to be so
367-14 deposited, the Comptroller [state treasurer] may rely on receiving
367-15 both the principal and the interest scheduled to mature and come
367-16 due on said investments in accordance with their terms,
367-17 respectively, and the amount which otherwise would be required to
367-18 be so deposited, if no interest were scheduled to come due thereon,
367-19 may be reduced accordingly. It shall be the duty of the
367-20 Comptroller [state treasurer] to accept said deposits of
367-21 investments and to collect promptly, when due and payable, all
367-22 principal of and interest on said investments, but he shall not
367-23 reinvest the same. It is further provided that the aforesaid
367-24 investments shall be made in such manner that the proceeds
367-25 therefrom, without any reinvestment, will be available for deposit,
367-26 and shall be deposited, by the Comptroller [state treasurer], in
367-27 the place or places of payment, in current available funds, in the
368-1 required amounts, not later than one business day before each
368-2 scheduled maturity date, due date, or redemption date,
368-3 respectively, of said obligations being refunded. The Comptroller
368-4 [state treasurer] may rely on a certificate by the secretary or the
368-5 chief clerical officer of the governing body of the issuer as to
368-6 the amount of such service charges of the place or places of
368-7 payment.
368-8 (b) It shall be the duty of the Comptroller [state
368-9 treasurer], in his official capacity of public office, to accept
368-10 and keep safely all deposits of money and investments made with him
368-11 under this Act, and all proceeds from said investments; and no part
368-12 of such deposits of money and investments, or proceeds therefrom,
368-13 (excepting the amount paid to him for his services and expenses)
368-14 shall be used by or for the benefit of the State of Texas, or for
368-15 the benefit of any creditor of the State of Texas, and shall not be
368-16 commingled with the General Fund of the state, or any other special
368-17 funds or accounts held by the Comptroller [state treasurer]. Each
368-18 such deposit of money and investments, and proceeds therefrom,
368-19 (excepting the amount paid to him for his services and expenses)
368-20 shall be kept and maintained separate and apart from all other
368-21 money and investments, and shall be kept and held, in escrow, and
368-22 in trust, by the Comptroller [state treasurer], and shall be
368-23 charged with an irrevocable first lien and pledge in favor of the
368-24 holders of the obligations to be paid therefrom, and said deposits
368-25 of money and investments, and proceeds therefrom, shall be used
368-26 only for the purposes provided in this Act. Each such deposit of
368-27 money and investments, and proceeds therefrom, shall be regarded as
369-1 public funds, and legal title thereto shall be in the Comptroller
369-2 [state treasurer], in his official capacity as trustee, until paid
369-3 out as herein provided, but equitable title thereto shall be in the
369-4 issuer, until so paid out. The writ of mandamus, and all other
369-5 legal remedies, shall be available to any bondholder, the issuer or
369-6 any other party at interest to require the Comptroller [state
369-7 treasurer] to perform his functions and duties under this Act. The
369-8 surety bond or bonds given by the Comptroller [state treasurer] in
369-9 connection with the proper performance of his duties of office
369-10 (excepting any special bonds given to protect funds of the United
369-11 States government) shall protect and be construed as protecting all
369-12 said deposits of money and investments, and proceeds therefrom.
369-13 The Comptroller [state treasurer] shall not in any way invest or
369-14 reinvest any money deposited with him or received by him from any
369-15 investment under this Act. In the event that any surplus funds
369-16 should remain on hand with the Comptroller [state treasurer] in
369-17 connection with any deposit of money or investments, after he has
369-18 finally performed all of his duties relating thereto under this
369-19 Act, such surplus shall be returned to the issuer.
369-20 (c) When there is more than one place of payment for any
369-21 such obligations being refunded, the Comptroller [state treasurer]
369-22 shall make all of the deposits required to be made by him under
369-23 this Act at the one of said places of payment having the largest
369-24 capital and surplus and located in the State of Texas, and if none
369-25 of such places of payment is located in the State of Texas, then at
369-26 the place of payment having the largest capital and surplus; and it
369-27 shall be the duty of such place of payment, and the Comptroller
370-1 [state treasurer] shall so instruct it, to make the required
370-2 current funds available, to the extent necessary, at the other
370-3 place or places of payment, to pay or redeem said obligations under
370-4 presentment therefor.
370-5 Sec. 7. ALTERNATIVE PLACE OF DEPOSIT; DUTIES OF PLACES OF
370-6 PAYMENT. It is further provided, however, that in the alternative
370-7 to making the deposit of said investments (together with any
370-8 uninvested money) with the Comptroller [state treasurer], the
370-9 issuer shall have the option of making such deposit with any place
370-10 of payment for the obligations being refunded, if said place of
370-11 payment is a bank or trust company located in the State of Texas,
370-12 has trust powers, and is a member of the Federal Reserve System.
370-13 In such case, such place of payment shall perform all applicable
370-14 and pertinent functions and duties provided in this Act for the
370-15 Comptroller [state treasurer], and shall be substituted hereunder
370-16 for the Comptroller [state treasurer] to the extent appropriate and
370-17 practical, except as otherwise provided by this section. The
370-18 deposits of such investments and money shall be held for
370-19 safekeeping, in escrow, and in trust for and charged with an
370-20 irrevocable first lien and pledge in favor of and for the benefit
370-21 of the holders of the obligations being refunded, all pursuant to
370-22 an appropriate trust or escrow agreement between the issuer and the
370-23 place of payment, upon such further terms and conditions, and for
370-24 such consideration as may be agreeable to the parties thereto.
370-25 Further, all deposits of money with any such place of payment shall
370-26 constitute public funds and shall be secured at all times by a
370-27 pledge of direct obligations of the United States of America,
371-1 obligations the payment of principal of and interest on which are
371-2 unconditionally guaranteed by the United States of America, or
371-3 obligations which, in the opinion of the Attorney General of the
371-4 United States of America, are general obligations of the United
371-5 States of America and backed by its full faith and credit. When
371-6 there is more than one place of payment for any such obligations
371-7 being refunded it shall be the duty of such place of payment, with
371-8 which such deposit is made, to make the required current funds
371-9 available, to the extent necessary, at the other place or places of
371-10 payment, to pay or redeem said obligations under presentment
371-11 therefor.
371-12 Sec. 8. DISCHARGE AND FINAL PAYMENT OR REDEMPTION OF
371-13 OBLIGATIONS; SUBORDINATION TO REFUNDED OBLIGATIONS. When the
371-14 initial deposit of investments (and any uninvested money) is made
371-15 with the Comptroller [state treasurer] or with a place of payment
371-16 under this Act, such deposit shall constitute the making of firm
371-17 banking and financial arrangements for the discharge and final
371-18 payment or redemption of the obligations being refunded, and
371-19 although such obligations being refunded shall continue to be
371-20 obligations of the issuer, automatically they shall become
371-21 obligations of the issuer secured solely by and payable solely from
371-22 such deposit and the proceeds therefrom; and upon the making of
371-23 such deposit, all previous encumbrances existing in connection with
371-24 said obligations being refunded (whether in connection with taxes,
371-25 revenues, real and personal property, or any other source of
371-26 security or payment) automatically shall terminate and be finally
371-27 discharged and released, as a matter of law, and said encumbrances
372-1 shall be of no further force or effect; and although said
372-2 obligations being so refunded will remain outstanding, they shall
372-3 be regarded as being outstanding only for the purpose of receiving
372-4 the funds provided by the issuer for their payment or redemption
372-5 under this Act, and they shall not be regarded as being outstanding
372-6 in ascertaining the power of the issuer to issue bonds, or in
372-7 calculating any limitations in connection therewith, or for any
372-8 other purpose. It is further provided, however, notwithstanding
372-9 the foregoing language of this section, that the issuer may, in the
372-10 alternative to the foregoing language of this section, provide in
372-11 the proceedings authorizing the issuance of such refunding bonds
372-12 that such refunding bonds shall be subordinate to the obligations
372-13 being refunded, but only in the manner and to the extent provided
372-14 in said authorizing proceedings; and, except for any such specific
372-15 provisions to the contrary in said authorizing proceedings, the
372-16 foregoing language of this section shall be fully applicable.
372-17 SECTION 21.38. Sections 6-10 and 12, Chapter 642, Acts of
372-18 the 65th Legislature, Regular Session, 1977 (Article 1118n-12,
372-19 Vernon's Texas Civil Statutes), are amended to read as follows:
372-20 Sec. 6. DEPOSIT OF PROCEEDS WITH COMPTROLLER [STATE
372-21 TREASURER]; DUTIES. When any refunding bonds issued under the
372-22 provisions of this Act are sold and delivered to the purchaser, the
372-23 board immediately shall have deposited with the Comptroller [state
372-24 treasurer], from the proceeds of the sale, and any other funds
372-25 available for that purpose, the amount which will be required to
372-26 pay the principal of and interest on the obligations being refunded
372-27 as they mature and come due, and the amount which will be required
373-1 to redeem prior to maturity any obligations being refunded, on the
373-2 date or dates upon which these obligations have been called for
373-3 redemption, including principal, any required redemption premium,
373-4 and the interest to accrue on those obligations to the redemption
373-5 date or dates, together with an additional amount to pay the
373-6 Comptroller [state treasurer] for his services and to reimburse him
373-7 for his expenses in performing his duties under this Act, equal to
373-8 one-twentieth of one percent of the principal or par amount of the
373-9 obligations being refunded, and one-eighth of one percent of the
373-10 interest to accrue thereon, but not to exceed a total of $1,000 in
373-11 connection with each issue of refunding bonds issued under this
373-12 Act, plus an additional amount of money sufficient to pay the
373-13 service charges of the place or places of payment of the
373-14 obligations for paying and redeeming them. The Comptroller [state
373-15 treasurer] may rely on a certificate or other instrument or
373-16 document which shall be filed with him by the issuer showing
373-17 clearly the date or dates upon which the principal matures and
373-18 interest comes due on the obligations being refunded, and the
373-19 amounts thereof, and the date or dates, if any, on which the
373-20 obligations have been called for redemption prior to maturity,
373-21 together with the redemption price, and the place or places of
373-22 payment of the obligations being refunded, and the charges to be
373-23 made by the place or places of payment for paying and redeeming the
373-24 obligations. It shall be the duty of the Comptroller [state
373-25 treasurer] to make the appropriate required part of the deposits
373-26 available at the place or places of payment, in current and
373-27 immediately available funds, on or before, but not later than, each
374-1 maturity date, due date, or redemption date, respectively, of the
374-2 obligations being refunded, in order to pay the required amounts on
374-3 each date, plus the service charges of the place or places of
374-4 payment.
374-5 Sec. 7. INVESTMENT OF PROCEEDS. It is provided, however,
374-6 that instead of depositing money with the Comptroller [state
374-7 treasurer] as required by Section 6 of this Act, except for the
374-8 money to be paid to him for his services and expenses, which in all
374-9 events shall be deposited in cash, the board may, at its option,
374-10 unless the board determines, in its sole discretion, that money is
374-11 required to be deposited, immediately invest all or any part of the
374-12 proceeds from the sale of the refunding bonds, and any other
374-13 necessary available funds, in direct obligations of the United
374-14 States of America, or in obligations the payment of the principal
374-15 of and interest on which are unconditionally guaranteed by the
374-16 United States of America, or in obligations which, in the opinion
374-17 of the Attorney General of the United States of America, are
374-18 general obligations of the United States of America and backed by
374-19 its full faith and credit, which investments will mature, and bear
374-20 interest payable, at such times and in such amounts as will
374-21 provide, without any reinvestment, not less than the amount of
374-22 money, in addition to any money initially deposited for that
374-23 purpose, required for the payment of the principal of and interest
374-24 on the obligations being refunded, as they mature and come due, and
374-25 for the payment of the redemption price of any obligations being
374-26 refunded and redeemed prior to maturity, on the date or dates on
374-27 which the obligations being refunded have been called for
375-1 redemption, including principal, any required redemption premium,
375-2 and the interest to accrue on the obligations to the redemption
375-3 date or dates, together with the additional amount required to pay
375-4 the service charges of the place or places of payment of the
375-5 obligations for paying and redeeming them. The board shall deposit
375-6 all of the investments immediately with the Comptroller [state
375-7 treasurer]. In calculating the amount of the investments required
375-8 to be so deposited, the issuer and the Comptroller [state
375-9 treasurer] shall rely on receiving both the principal and interest,
375-10 if any, scheduled to mature and accrue or come due on the
375-11 investments, to the extent that the principal and interest are
375-12 scheduled to mature and accrue or come due prior to the date or
375-13 dates of the maturities, due dates, or redemption date or dates,
375-14 respectively, of the obligations being refunded; and the amount
375-15 which otherwise would be required to be deposited, if no interest
375-16 or increase were scheduled to accrue or come due, may, at the
375-17 option of the board, be reduced accordingly. It shall be the duty
375-18 of the Comptroller [state treasurer] to accept the deposits of
375-19 investments and to collect promptly, when due and payable, all
375-20 principal of and interest on the investments, but he shall not
375-21 reinvest them. It is further provided that the aforesaid
375-22 investments shall be made in a manner that the proceeds from them,
375-23 without any reinvestment, will be available for deposit, and shall
375-24 be deposited, by the Comptroller [state treasurer], in the place or
375-25 places of payment, in current and immediately available funds, in
375-26 the required amounts, on or before, and not later than, each
375-27 maturity date, due date, or redemption date, respectively, of the
376-1 obligations being refunded.
376-2 Sec. 8. DUTIES OF COMPTROLLER [TREASURER] AS TO HANDLING AND
376-3 SAFEKEEPING OF PROCEEDS. It shall be the duty of the Comptroller
376-4 [state treasurer], ex officio, in his official capacity of public
376-5 office, to accept and keep safely all deposits of money and
376-6 investments made under this Act, and all proceeds from said
376-7 investments; but no part of such deposits of money and investments,
376-8 or proceeds therefrom, excepting the amount paid to him for his
376-9 services and expenses, shall constitute a part of the state
376-10 treasury, or be used by or for the state or for the benefit of any
376-11 creditor of the state, and shall not be commingled with the general
376-12 revenue fund of the state or any other special funds or accounts
376-13 held by the Comptroller [state treasurer]. The Comptroller [state
376-14 treasurer] shall keep and maintain each such deposit of money and
376-15 investments, and proceeds from them, excepting the amount paid to
376-16 him for his services and expenses, separate and apart from all
376-17 other deposits, money, funds, accounts, and investments, and each
376-18 such deposit of money and investments, and proceeds from them,
376-19 shall be kept and held in escrow and in trust by the Comptroller
376-20 [state treasurer], for and on behalf of, and charged with an
376-21 irrevocable first lien and pledge in favor of, the holders of the
376-22 obligations to be paid the deposits, and the deposits of money and
376-23 investments, and proceeds from them, shall be used only for the
376-24 purposes provided in this Act. Each deposit of money and
376-25 investments, and proceeds from them shall be public funds, and
376-26 legal title shall be in the Comptroller [state treasurer], in his
376-27 official capacity as trustee, until paid out as provided in this
377-1 Act, but equitable title shall be in the issuer, until paid out.
377-2 The writ of mandamus and all other legal and equitable remedies
377-3 shall be available to any bondholder, the issuer, or any other
377-4 party at interest to require the Comptroller [state treasurer] to
377-5 perform his functions and duties under this Act. The surety bond
377-6 or bonds given by the Comptroller [state treasurer] in connection
377-7 with the proper performance of his duties of office, excepting any
377-8 special bonds given to protect funds of the United States shall
377-9 protect and be construed as protecting all the deposits of money
377-10 and investments, and proceeds from them. The Comptroller [state
377-11 treasurer] shall not in any way invest or reinvest any money
377-12 deposited with him or received by him from investments deposited
377-13 with him under this Act. In the event that any surplus funds
377-14 should be on hand with the Comptroller [state treasurer] in
377-15 connection with any deposit of money or investments, or proceeds
377-16 from them, the surplus shall be returned to the issuer.
377-17 Sec. 9. PLACE OF PAYMENT. If there is more than one place
377-18 of payment for any obligations being refunded under this Act, the
377-19 Comptroller [state treasurer] shall make all deposits required
377-20 under this Act at the place of payment located in the state, if
377-21 there is one, or if there is more than one place of payment located
377-22 in the state, or if no place of payment is located in the state,
377-23 then at the one of the places of payment having the largest capital
377-24 and surplus. It shall be the statutory duty of the place of
377-25 payment, and the Comptroller [state treasurer] shall instruct it,
377-26 to make the appropriate financial arrangements so that the
377-27 necessary required current funds will be available, to the extent
378-1 necessary, at the other places of payment, to pay or redeem the
378-2 obligations when due; provided that this section shall not apply in
378-3 the event the board proceeds under Section 10 of this Act.
378-4 Sec. 10. ALTERNATIVE PLACE OF DEPOSIT. It is further
378-5 provided, however, that in the alternative to making the deposit of
378-6 money or investments with the Comptroller [state treasurer] in
378-7 connection with refunding bonds issued and sold under this Act, and
378-8 notwithstanding any provisions of this Act to the contrary, the
378-9 board shall have the option of making the deposit of money or
378-10 investments with any place of payment (paying agent), wherever
378-11 located, for the obligations being refunded, or, at the option of
378-12 the board, with any trustee under any trust indenture, trust
378-13 agreement, deed of trust, or other instrument, securing the
378-14 obligations being refunded. In that case the place of payment or
378-15 trustee shall, to the extent practicable, substantially perform the
378-16 applicable and pertinent functions and duties provided in this Act
378-17 for the Comptroller [state treasurer], to the extent appropriate
378-18 and practical, and the place of payment or trustee shall be
378-19 substituted for the Comptroller [state treasurer] under this Act to
378-20 the extent appropriate and practical, except as otherwise provided
378-21 by this section. Such deposits of money and investments shall be
378-22 held for safekeeping, in escrow, in trust for, and charged with an
378-23 irrevocable first lien and pledge in favor of, and for the benefit
378-24 of, the holders of the obligations being refunded, and the issuer
378-25 and the place of payment or trustee, may execute an appropriate
378-26 trust or escrow agreement on the terms and conditions, and for the
378-27 consideration agreeable to the parties to the agreement. The
379-1 agreement may provide that any deposits of money may be invested in
379-2 direct obligations of the United States of America, or obligations
379-3 the payment of principal of and interest on which are
379-4 unconditionally guaranteed by the United States of America, or
379-5 obligations which, in the opinion of the Attorney General of the
379-6 United States of America, are general obligations of the United
379-7 States of America and backed by its full faith and credit, or may
379-8 be placed in interest bearing time deposits secured at all times by
379-9 an equal amount in market value of any of the federal obligations
379-10 named above. The agreement further shall provide for deposits with
379-11 the place or places of payment (paying agent or agents) to pay or
379-12 redeem the obligations being refunded when due, and may provide
379-13 that at any time the amount of money and investments held in escrow
379-14 exceeds the amount required for purposes of this Act, the excess
379-15 shall be transferred and delivered to the issuer, or as directed by
379-16 the board, to be used for any lawful purpose, including the payment
379-17 of revenue bonds issued pursuant to this Act or otherwise, all at
379-18 the option of the board.
379-19 Sec. 12. DISCHARGE AND FINAL PAYMENT OR REDEMPTION OF
379-20 OBLIGATIONS; SUBORDINATION TO REFUNDED OBLIGATIONS. When the
379-21 initial deposit of money or investments is made with the
379-22 Comptroller [state treasurer] or with a place of payment (paying
379-23 agent) or trustee in accordance with this Act for any obligations
379-24 being refunded under this Act, the deposit shall constitute the
379-25 making of firm banking and financial arrangements for the discharge
379-26 and final payment or redemption of the obligations being refunded,
379-27 and although the obligations being refunded continue to be
380-1 obligations of the issuer, automatically they become obligations of
380-2 the issuer secured solely by and payable solely from the deposit
380-3 and the proceeds from them; and on making the deposit, all previous
380-4 encumbrances, including all liens, pledges, mortgages, deeds of
380-5 trust, trust indentures, or trust agreements, existing in
380-6 connection with the obligations being refunded, whether in
380-7 connection with revenues, real, personal, and mixed property, or
380-8 any other source of security or payment, automatically terminate
380-9 and are finally discharged and released, as a matter of law, and
380-10 the encumbrances shall be of no further force or effect; and
380-11 although the obligations being refunded will remain outstanding,
380-12 they shall be regarded as being outstanding only for the purpose of
380-13 receiving the funds provided by the issuer for their payment or
380-14 redemption under this Act, and they shall not be regarded as being
380-15 outstanding in ascertaining the power of the issuer to issue bonds,
380-16 or in calculating any limitations in connection therewith, or for
380-17 any other purpose. It is further provided, however,
380-18 notwithstanding the foregoing provisions of this section, that the
380-19 board may, in the alternative to the foregoing provisions of this
380-20 section, provide in the proceedings authorizing the issuance of the
380-21 refunding bonds that the refunding bonds are subordinate to the
380-22 obligations being refunded, but only in the manner and to the
380-23 extent provided in the authorizing proceedings; and, except for any
380-24 specific provisions to the contrary in the authorizing proceedings,
380-25 the foregoing provisions of this section are fully applicable.
380-26 SECTION 21.39. Section 8(c), Chapter 341, Acts of the 57th
380-27 Legislature, Regular Session, 1961 (Article 1187f, Vernon's Texas
381-1 Civil Statutes), is amended to read as follows:
381-2 (c) Refunding obligations shall be authorized and shall be
381-3 executed and mature as is provided in this Act for original
381-4 obligations. They shall be approved by the Attorney General of the
381-5 State of Texas as in the case of original obligations, and shall be
381-6 registered by the Comptroller of Public Accounts of the State of
381-7 Texas upon surrender and cancellation of the obligations to be
381-8 refunded; but in lieu thereof, the ordinance or resolution
381-9 authorizing their issuance may provide that they shall be sold at
381-10 public or private sale and the proceeds thereof deposited in any
381-11 place or places where any of the underlying obligations are
381-12 payable, or with the Comptroller [State Treasurer], in which case
381-13 the refunding obligations may be issued in an amount sufficient,
381-14 not only to pay the principal of the underlying obligations, but
381-15 also to pay the interest on the underlying obligations to their
381-16 option or maturity dates, and the Comptroller [of Public Accounts]
381-17 shall register them without the surrender and cancellation of the
381-18 underlying obligations. In those situations where the proceeds of
381-19 revenue refunding obligations are deposited in a place or places
381-20 where the underlying obligations are payable, or with the
381-21 Comptroller [State Treasurer], they shall be so deposited under an
381-22 escrow agreement so that such proceeds and interest earned from the
381-23 investment of such proceeds as hereinafter provided, will be
381-24 available for the payment of the interest on and principal of said
381-25 underlying obligations as such interest and principal respectively
381-26 become due; and such escrow agreement may provide that such
381-27 proceeds may, until such time as the same are needed to pay
382-1 interest and principal as the same become due, be invested in
382-2 direct obligations of the United States of America, in which
382-3 instances the interest earned on such investments may be pledged to
382-4 the payment of the principal of and interest on the underlying
382-5 obligations, the refunding obligations or shall be considered as
382-6 revenues of the improvements and facilities.
382-7 SECTION 21.40. Section 7.11, Texas Non-Profit Corporation
382-8 Act (Article 1396-7.11, Vernon's Texas Civil Statutes), is amended
382-9 to read as follows:
382-10 Sec. 7.11. DEPOSIT WITH COMPTROLLER [STATE TREASURER] OF
382-11 AMOUNT DUE CERTAIN PERSONS. A. Upon the voluntary or involuntary
382-12 dissolution of a corporation, the portion of the assets
382-13 distributable to a creditor or member or other person who is
382-14 unknown or cannot be found after the exercise of reasonable
382-15 diligence by the person or persons responsible for the distribution
382-16 in liquidation of the corporation's assets shall be reduced to cash
382-17 and deposited with the Comptroller [State Treasurer], together with
382-18 a statement giving the name of the person, if known, entitled to
382-19 such fund, his last known address, the amount of his distributive
382-20 portion, and such other information about such person as the
382-21 Comptroller [State Treasurer] may reasonably require, whereupon the
382-22 person or persons responsible for the distribution in liquidation
382-23 of the corporation's assets shall be released and discharged from
382-24 any further liability with respect to the funds so deposited. The
382-25 Comptroller [State Treasurer] shall issue his receipt for such fund
382-26 and shall deposit same in a special account to be maintained by
382-27 him.
383-1 B. On receipt of satisfactory written proof of ownership or
383-2 of right to such fund within seven (7) years from the date such
383-3 fund was so deposited, the [State Treasurer shall certify such fact
383-4 to the] Comptroller of Public Accounts[, who] shall issue proper
383-5 warrant therefor drawn on the State Treasury [Treasurer] in favor
383-6 of the person or persons then entitled thereto. If no claimant has
383-7 made satisfactory proof of rights to such fund within seven (7)
383-8 years from the time of such deposit the Comptroller [State
383-9 Treasurer] shall then cause to be published in one issue of a
383-10 newspaper of general circulation in Travis County, Texas, a notice
383-11 of the proposed escheat of such fund, giving the name of the
383-12 creditor, member, or other person apparently entitled thereto, his
383-13 last known address, if any, the amount of the fund so deposited,
383-14 and the name of the dissolved corporation from whose assets such
383-15 fund was derived. If no claimant makes satisfactory proof of right
383-16 to such fund within two months from the time of such publication,
383-17 the fund so unclaimed shall thereupon automatically escheat to and
383-18 become the property of the General Revenue Fund of the State of
383-19 Texas.
383-20 SECTION 21.41. Sections 1, 4, and 5, Chapter 65, Acts of the
383-21 43rd Legislature, 2nd Called Session, 1934 (Article 2606a, Vernon's
383-22 Texas Civil Statutes), are amended to read as follows:
383-23 Sec. 1. FORM AND REQUISITES. The Governor of the State of
383-24 Texas is hereby authorized to have printed manuscript bonds of the
383-25 State of Texas in convenient denominations to be determined by him
383-26 for the purpose of refunding the principal of the bonds hereinafter
383-27 mentioned. Said bonds shall be designated "State of Texas
384-1 Refunding Bonds, Issue of 1934." Said bonds shall be numbered and
384-2 dated as hereinafter indicated and shall bear the rate of interest
384-3 hereinafter fixed, and shall become due and payable on the dates
384-4 hereinafter shown. Interest paying dates on the various bonds
384-5 authorized herein shall be fixed as hereinafter indicated. The
384-6 form of such bonds shall be prepared by the Attorney General. Each
384-7 of them shall be signed by the Governor and the Comptroller
384-8 [Treasurer] of the State of Texas and [countersigned and]
384-9 registered by the Comptroller, and shall have the state seal
384-10 affixed thereto.
384-11 Sec. 4. REGISTRATION BY COMPTROLLER; DESTRUCTION OF
384-12 EXCHANGED BONDS. After said refunding bonds have been prepared,
384-13 signed and sealed the same shall be delivered to the State
384-14 Comptroller of Public Accounts for registration by him and held by
384-15 said Comptroller to be exchanged by him upon the delivery and
384-16 surrender to him of a like amount of bonds for which said refunding
384-17 bonds were issued. When the Comptroller shall have received the
384-18 bonds now outstanding in exchange for refunding bonds, said
384-19 outstanding bonds for which refunding bonds shall be exchanged
384-20 shall be by him destroyed by burning the same in the presence of
384-21 the [State Treasurer and the] Attorney General. When said bonds
384-22 shall have been destroyed each of said officers shall sign a
384-23 certificate to the effect that said bonds have been destroyed and
384-24 file same with the Secretary of State of the State of Texas.
384-25 Sec. 5. AUDIT OF OUTSTANDING BONDS. It shall be the duty of
384-26 the State Auditor and Efficiency Expert to inspect and audit all of
384-27 the outstanding State bonds held by the various State funds as
385-1 outlined in this Act and to submit his findings and recommendation
385-2 to the Governor as to the respective amounts of outstanding
385-3 indebtedness held by the various funds that will be necessary to be
385-4 refunded under the terms of this Act. The Comptroller [State
385-5 Treasurer] is hereby directed and instructed to make the exchange
385-6 of bonds herein provided for.
385-7 SECTION 21.42. Section 9, The Texas Engineering Practice Act
385-8 (Article 3271a, Vernon's Texas Civil Statutes), is amended to read
385-9 as follows:
385-10 Sec. 9. RECEIPTS AND DISBURSEMENTS. The Secretary of the
385-11 Board shall receive and account for all moneys derived under the
385-12 provisions of this Act, and shall pay the same weekly to the
385-13 Comptroller [State Treasurer] who shall keep such moneys in a
385-14 separate fund to be known as the "Professional Engineers' Fund".
385-15 Such fund shall be paid out only by warrant of the State
385-16 Comptroller [upon the State Treasurer,] upon itemized vouchers,
385-17 approved by the Chairman and attested by the Secretary of the
385-18 Board. All moneys in the "Professional Engineers' Fund" are hereby
385-19 specifically appropriated for the use of the Board in the
385-20 administration of this Act. The Secretary of the Board shall give
385-21 a surety bond to the Governor of the State of Texas in the sum of
385-22 Two Thousand Five Hundred ($2,500.00) Dollars. The premium on said
385-23 bond shall be paid out of the "Professional Engineers' Fund". The
385-24 Secretary of the Board shall receive such salary as the Board shall
385-25 determine in addition to the compensation and expenses provided for
385-26 in this Act. The Board shall employ such clerical or other
385-27 assistants as are necessary for the proper performance of its work,
386-1 and may make expenditures of this fund for any purpose which in the
386-2 opinion of the Board is reasonably necessary for the proper
386-3 performance of its duties under this Act. Under no circumstances
386-4 shall the total amount of warrants issued by the State Comptroller
386-5 in payment of the expenses and compensation provided for in this
386-6 Act exceed the amount of the "Professional Engineers' Fund".
386-7 Provided further, that the salaries paid herein shall not be in
386-8 excess of salaries paid for similar work in other departments.
386-9 SECTION 21.43. Section 13(b), Texas Driver and Traffic
386-10 Safety Education Act (Article 4413(29C), Vernon's Texas Civil
386-11 Statutes), is amended to read as follows:
386-12 (b)(1) License, application, and registration fees shall be
386-13 collected by the commissioner and deposited with the comptroller
386-14 [state treasurer]. Fees shall be sufficient to cover
386-15 administrative costs and may not be subject to refund. Fees shall
386-16 be as follows:
386-17 (A)(i) the initial fee for a driver education
386-18 school license is $1,000 plus $850 for each branch location;
386-19 (ii) the initial fee for a driving safety
386-20 school license is an appropriate amount established by the board
386-21 not to exceed $200; and
386-22 (iii) the initial fee for a course
386-23 provider license is an appropriate amount established by the board
386-24 not to exceed $2,000, except that this fee may be waived by the
386-25 agency if revenue received by the agency from the course provider
386-26 is sufficient to fund the cost of licensing the course provider;
386-27 (B) the annual renewal fee for a course
387-1 provider, driving safety school, driver education school, and
387-2 branch school is an appropriate amount established by the board not
387-3 to exceed $200, but may be waived by the agency if revenue
387-4 generated by the issuance of uniform certificates of completion and
387-5 driver education certificates is sufficient to fund the cost of
387-6 administering this Act and Subchapter B, Chapter 543,
387-7 Transportation Code [Section 143A, Uniform Act Regulating Traffic
387-8 on Highways (Article 6701d, Vernon's Texas Civil Statutes)];
387-9 (C) the fee for a change of address of a driver
387-10 education school is $180 and of a driving safety school or course
387-11 provider is $50;
387-12 (D) the fee for a change of name of:
387-13 (i) a driver education school or course
387-14 provider or an owner of a driver education school or course
387-15 provider is $100; and
387-16 (ii) a driving safety school or owner of a
387-17 driving safety school is $50;
387-18 (E) the application fee for each additional
387-19 driver education or driving safety course at a school is $25;
387-20 (F) the application fee for each director is
387-21 $30, and for each assistant director, or administrative staff
387-22 member is $15;
387-23 (G) each application for approval of a driving
387-24 safety course that has not been evaluated by the board shall be
387-25 accompanied by a nonrefundable fee of $9,000;
387-26 (H) each application for an original driver
387-27 education or driving safety instructor's license shall be
388-1 accompanied by a processing fee of $50 and an annual license fee of
388-2 $25, except that the commissioner may not collect the processing
388-3 fee from an applicant for a driver education instructor license who
388-4 is currently teaching a driver education course in a public school
388-5 in this state; and
388-6 (I) the fee for a duplicate license, which may
388-7 be issued if the original is lost or destroyed and an affidavit of
388-8 that fact is filed with the agency, shall be set by the board.
388-9 (2) A driver education instructor who teaches driver
388-10 education courses in a county having a population of 50,000 or
388-11 less, according to the most recent federal census, and who has no
388-12 more than 200 students annually, shall be regulated by the agency
388-13 as a school. An instructor described by this subdivision shall
388-14 submit a school application or renewal form plus all required
388-15 documentation and information to the agency. The commissioner may
388-16 waive initial school fees, annual school renewal fees, or
388-17 director's or administrative staff member's fees. An instructor
388-18 described by this subdivision is not exempt from licensing
388-19 requirements or fees.
388-20 (3) The commissioner shall periodically review and
388-21 recommend adjustments in the level of fees to the board and
388-22 legislature.
388-23 (4) The fee for an investigation of a school or course
388-24 provider to resolve a complaint filed against the school or course
388-25 provider shall be set by the commissioner and approved by the
388-26 board. The complaint investigation fee may be charged only if:
388-27 (A) the complaint could not have been resolved
389-1 solely by telephone or written correspondence;
389-2 (B) a representative of the agency visited the
389-3 school or course provider as a part of the complaint resolution
389-4 process; and
389-5 (C) the school or course provider is found to be
389-6 at fault.
389-7 (5) The agency shall print and supply to licensed
389-8 course providers serially numbered uniform certificates of course
389-9 completion. The agency may charge a fee of not more than $4 for
389-10 each certificate. A course provider shall charge an operator a fee
389-11 equal to the fee paid to the agency for a certificate. The course
389-12 provider shall charge and retain a user fee of not less than $3 a
389-13 student for the use of course materials, oversight, and
389-14 administration of the course.
389-15 (6) Fees collected under this subsection shall be
389-16 deposited in the state treasury in a special account in the General
389-17 Revenue Fund. Money in the account may be appropriated only for
389-18 payment of monetary awards for information concerning abuse of the
389-19 driver education or uniform certificates of completion that leads
389-20 to the conviction or removal of an approval, license, or
389-21 authorization and for the administration of this Act and Subchapter
389-22 B, Chapter 543, Transportation Code [Section 143A, Uniform Act
389-23 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
389-24 Statutes)]. This dedication is exempt from the application of
389-25 Sections 403.094 and 403.095, Government Code.
389-26 (7) Duplicate uniform certificates of completion shall
389-27 be issued by the agency. An appropriate fee for issuing duplicate
390-1 certificates shall be determined by board rule.
390-2 SECTION 21.44. Section 6(c), Polygraph Examiners Act
390-3 (Article 4413(29cc), Vernon's Texas Civil Statutes), is amended to
390-4 read as follows:
390-5 (c) All fees collected under the provisions of this Act
390-6 shall be paid to the Comptroller [Treasurer] of the State of Texas.
390-7 Funds necessary for the enforcement of this Act and the
390-8 administration of its provisions shall be appropriated by the
390-9 Legislature, but the funds so appropriated for a biennium shall not
390-10 exceed the total amount of the fees which it is anticipated will be
390-11 collected hereunder during such biennium.
390-12 SECTION 21.45. Section 2(a), Article 4413(29ee), Revised
390-13 Statutes, is amended to read as follows:
390-14 (a) A person is eligible for a license to carry a concealed
390-15 handgun if the person:
390-16 (1) is a legal resident of this state for the
390-17 six-month period preceding the date of application under this
390-18 article;
390-19 (2) is at least 21 years of age;
390-20 (3) has not been convicted of a felony;
390-21 (4) is not charged with the commission of a Class A or
390-22 Class B misdemeanor or an offense under Section 42.01, Penal Code,
390-23 or of a felony under an information or indictment;
390-24 (5) is not a fugitive from justice for a felony or a
390-25 Class A or Class B misdemeanor;
390-26 (6) is not a chemically dependent person;
390-27 (7) is not a person of unsound mind;
391-1 (8) has not, in the five years preceding the date of
391-2 application, been convicted of a Class A or Class B misdemeanor or
391-3 an offense under Section 42.01, Penal Code;
391-4 (9) is fully qualified under applicable federal and
391-5 state law to purchase a handgun;
391-6 (10) has not been finally determined to be delinquent
391-7 in making a child support payment administered or collected by the
391-8 attorney general;
391-9 (11) has not been finally determined to be delinquent
391-10 in the payment of a tax or other money collected by the
391-11 comptroller, [state treasurer,] tax collector of a political
391-12 subdivision of the state, Texas Alcoholic Beverage Commission, or
391-13 any other agency or subdivision of the state;
391-14 (12) has not been finally determined to be in default
391-15 on a loan made under Chapter 57, Education Code;
391-16 (13) is not currently restricted under a court
391-17 protective order or subject to a restraining order affecting the
391-18 spousal relationship, not including a restraining order solely
391-19 affecting property interests;
391-20 (14) has not, in the 10 years preceding the date of
391-21 application, been adjudicated as having engaged in delinquent
391-22 conduct violating a penal law of the grade of felony; and
391-23 (15) has not made any material misrepresentation, or
391-24 failed to disclose any material fact, in an application submitted
391-25 pursuant to Section 3 of this article or in a request for
391-26 application submitted pursuant to Section 4 of this article.
391-27 SECTION 21.46. Section 8(b), Article 4413(37), Revised
392-1 Statutes, is amended to read as follows:
392-2 (b) The comptroller [treasurer] shall administer the fund
392-3 and may invest the fund in the same manner as other state funds.
392-4 SECTION 21.47. Section 3.10(a), Medical Practice Act
392-5 (Article 4495b, Vernon's Texas Civil Statutes), is amended to read
392-6 as follows:
392-7 (a) All annual registration fees collected by the board
392-8 shall be placed in the State Treasury to the credit of the medical
392-9 registration fund. The fees deposited to this special fund shall
392-10 be credited to the appropriations of the board and may be spent
392-11 only as provided by the General Appropriations Act, this Act, or
392-12 other applicable statutes. Money in that fund may be used by the
392-13 board and under its direction in the enforcement of this Act, the
392-14 prohibition of the unlawful practice of medicine, the dissemination
392-15 of information to prevent the violation of the laws, and the
392-16 prosecution of those who violate the laws. All distributions from
392-17 the fund may be made only upon written approval of the
392-18 secretary-treasurer of the board or his designated representative,
392-19 and the comptroller shall upon requisition of the board from time
392-20 to time draw warrants upon the fund [State Treasurer] for the
392-21 amounts specified in the requisition.
392-22 SECTION 21.48. Section 11, State Medical Education Act
392-23 (Article 4498c, Vernon's Texas Civil Statutes), is amended to read
392-24 as follows:
392-25 Sec. 11. REQUISITION; WARRANT; PAYMENT BY COMPTROLLER
392-26 [TREASURER] OUT OF APPROPRIATED FUNDS. All payments of funds or
392-27 loans or scholarships hereunder shall be made by requisition of the
393-1 Board signed by the Chairman and the Secretary directed to the
393-2 Comptroller of the Public Accounts, who shall thereupon issue a
393-3 warrant on the Treasury of the State of Texas for the amount fixed
393-4 in the requisition and payable to the person designated thereon,
393-5 which said warrant upon presentation shall be paid by the
393-6 Comptroller [Treasurer] out of any funds appropriated by the
393-7 Legislature for the purpose provided for under this Act.
393-8 SECTION 21.49. Section 22, Texas Medical Physics Practice
393-9 Act (Article 4512n, Vernon's Texas Civil Statutes), is amended to
393-10 read as follows:
393-11 Sec. 22. DISPOSITION OF FEES. The board shall send to the
393-12 comptroller [state treasurer] all funds received by the board under
393-13 this Act for deposit in the General Revenue Fund to the credit of a
393-14 special account known as the professional medical physicists
393-15 account. Money from the account may be used only for the
393-16 administration of this Act, except that, on the determination of
393-17 the presiding officer of the board and the officer's notification
393-18 of the comptroller [state treasurer] that a specified amount is not
393-19 required for the administration of this Act, the comptroller [state
393-20 treasurer] shall release that amount from the special account.
393-21 SECTION 21.50. Section 3, Article 4527, Revised Statutes, as
393-22 amended by Chapter 436, Acts of the 73rd Legislature, Regular
393-23 Session, 1993, is amended to read as follows:
393-24 Sec. 3. All fees received by said Board under this law shall
393-25 be placed in the State Treasury to the credit of a special fund to
393-26 be know as the "Professional Nurse Registration Fund" and the
393-27 Comptroller shall upon requisition of the Board from time to time
394-1 draw warrants upon the State Treasury [Treasurer] for the amounts
394-2 specified in such requisition; provided, however, all fees
394-3 collected by the Board and deposited in the Professional Nurse
394-4 Registration Fund shall be expended as specified by itemized
394-5 appropriation in the General Appropriations Act and shall be used
394-6 by the Board, and under its directions, only for purposes of
394-7 carrying out this Act.
394-8 SECTION 21.51. Section 13, Chapter 118, Acts of the 52nd
394-9 Legislature, Regular Session, 1951 (Article 4528c, Vernon's Texas
394-10 Civil Statutes), is amended to read as follows:
394-11 Sec. 13. CUSTODY AND USE OF REVENUES. Upon and after the
394-12 effective date of this Act, all moneys derived from fees,
394-13 assessments, or charges under this Act shall be paid by the Board
394-14 into the State Treasury for safekeeping, and shall by the
394-15 Comptroller [State Treasurer] be placed in a separate fund to be
394-16 available for use of the Board in the administration of the act
394-17 upon requisition of the Board. All such moneys so paid into the
394-18 State Treasury are hereby allocated to the Board for the purpose of
394-19 paying the salaries and expenses of all persons employed or
394-20 appointed as provided herein for the administration of this Act,
394-21 and all other expenses necessary and proper for the administration
394-22 of this Act, including equipment and maintenance of any supplies
394-23 for such offices or quarters as the Board may occupy, and necessary
394-24 traveling expenses for the Board or persons authorized to act for
394-25 it when performing duties hereunder at the request of the Board.
394-26 The Comptroller shall, upon requisition of the Board, from time to
394-27 time, draw warrants upon the State Treasury [Treasurer] for the
395-1 amount specified in such requisition, not exceeding, however, the
395-2 amount in such fund at the time of making any requisition;
395-3 provided, however, that all moneys expended in the administration
395-4 of this Act shall be specified and determined by itemized
395-5 appropriation in the General Departmental Appropriation Act or
395-6 other appropriation acts.
395-7 SECTION 21.52. Section 2.15(b), Texas Optometry Act (Article
395-8 4552-2.15, Vernon's Texas Civil Statutes), is amended to read as
395-9 follows:
395-10 (b) The funds realized from annual renewal fees shall be
395-11 distributed as follows: 15 percent of each renewal fee collected
395-12 by the board under Section 3.03 of this Act shall be dedicated to
395-13 the University of Houston Development Fund. The license money
395-14 placed in the development fund pursuant hereto shall be utilized
395-15 solely for scholarships and improvements in the physical
395-16 facilities, including library, of the College of Optometry.
395-17 The remainder of the fees attributable to annual renewal fees
395-18 and all other fees payable under this Act shall be placed in the
395-19 state treasury to the credit of a special fund to be known as the
395-20 "Optometry Fund," and the comptroller shall upon requisition of the
395-21 board from time to time draw warrants upon the state treasury
395-22 [treasurer] for the amounts specified in such requisition;
395-23 provided, however, the fees from this optometry fund shall be
395-24 expended as specified by itemized appropriation in the General
395-25 Appropriations bill and shall be used by the Texas Optometry Board,
395-26 and under its direction in carrying out its statutory duties.
395-27 SECTION 21.53. Section 11(f), Texas Manufactured Housing
396-1 Standards Act (Article 5221f, Vernon's Texas Civil Statutes), is
396-2 amended to read as follows:
396-3 (f) All fees assessed under this section shall be paid to
396-4 the Comptroller [State Treasurer] and placed in the General Revenue
396-5 Fund.
396-6 SECTION 21.54. Section 7(a), Article 5221f-1, Revised
396-7 Statutes, is amended to read as follows:
396-8 (a) The commission shall set fees for registration of
396-9 manufacturers or builders constructing industrialized housing or
396-10 buildings, for the inspection of industrialized housing or
396-11 buildings at the manufacturing plant or facility, and for the
396-12 issuance of decals or insignia in amounts that pay for all costs of
396-13 the inspections and administration of this article. These fees
396-14 shall be paid to the comptroller [state treasurer] and placed in
396-15 the general revenue fund.
396-16 SECTION 21.55. Section 6, Article 5330a, Revised Statutes,
396-17 is amended to read as follows:
396-18 Sec. 6. DEPOSIT AND USE OF FEES. The examination fees
396-19 provided for in Section 3 of this Act shall be deposited with the
396-20 Comptroller [State Treasurer] in a special fund to the credit of
396-21 the Land Board created in Section 2 hereof. All such moneys so
396-22 paid into the State Treasury are hereby specifically appropriated
396-23 to said Land Board for the purpose of defraying the authorized and
396-24 necessary expenses incident to the enforcement of this Act incurred
396-25 by said Board in determining the identity of persons entitled to
396-26 the benefits of this Act. The Comptroller shall, from time to
396-27 time, upon requisition of the Commissioner of the General Land
397-1 Office, draw warrants upon the State Treasury [Treasurer] for the
397-2 amounts specified in such requisition, not exceeding, however, the
397-3 amount of such fund on deposit at the time of the making of any
397-4 requisition therefor. Any sum remaining in such fund after all
397-5 expenses have been paid shall be transferred to the Permanent
397-6 School Fund. The amount of money accruing to the State of Texas as
397-7 consideration for the sale of the land as provided for in Section 3
397-8 hereof shall be placed to the credit of the Permanent School Fund.
397-9 SECTION 21.56. Section 2(a), Article 6060, Revised Statutes,
397-10 is amended to read as follows:
397-11 (a) A person on whom a tax is imposed by this article shall
397-12 report and pay to the railroad commission the tax imposed in a
397-13 calendar quarter on or before the 20th day of the second month of
397-14 the next calendar quarter. The payment must be made payable to the
397-15 comptroller [state treasurer].
397-16 SECTION 21.57. Article 6066, Revised Statutes, is amended to
397-17 read as follows:
397-18 Art. 6066. EXPENDITURES. The salary and expenses of the
397-19 expert and his assistant and the salaries, wages, fees, and
397-20 expenses of every other person employed or appointed by the
397-21 Commission under the provisions of this subdivision, and all other
397-22 expenses, costs, and charges, including witness fees and mileage
397-23 incurred by/or under authority of the Commission or a Commissioner
397-24 in administering and enforcing the provisions of this subdivision
397-25 or in exercising any power or authority hereunder, shall be paid
397-26 out of the General Revenue Fund by the Comptroller [State
397-27 Treasurer] on warrants of the Comptroller on orders or vouchers
398-1 approved by the Commission or Chairman thereof. The entire amount
398-2 derived from the tax imposed by Article 6060, as amended, shall be
398-3 deposited to the General Revenue Fund.
398-4 SECTION 21.58. Section 10(c), Article 6066a, Revised
398-5 Statutes, is amended to read as follows:
398-6 (c) Notice of pendency of such suit shall be served in the
398-7 manner prescribed by law; either party to said suit may demand a
398-8 trial by jury on any issue of fact raised by the pleadings and the
398-9 case shall proceed to trial as other civil cases. If, upon the
398-10 trial of such suit the oil or product in controversy is found to be
398-11 unlawful oil or unlawful products, then the court trying said cause
398-12 shall render judgment forfeiting the same to the State of Texas and
398-13 authorizing the issuance of an order of sale directed to the
398-14 sheriff or any constable of the county where the oil or products
398-15 are located commanding such officer to seize and sell said property
398-16 in the same manner as personal property is sold under execution.
398-17 The court may order the oil or products sold in whole or in part as
398-18 may be deemed proper and the sale shall be conducted at the court
398-19 house door of the county where the oil and/or products are located
398-20 and shall conform in all respects to the sale of personal property
398-21 as aforesaid. The money realized from the sale of any such
398-22 unlawful oil and/or products shall be applied, first, to the
398-23 payment of the costs of suit and expenses incident to the sale of
398-24 such oil and/or products, then the court may allow compensation to
398-25 any person for expenses incurred in the storage of such unlawful
398-26 oil and/or products; provided that in no event shall such
398-27 compensation exceed one-half of the money received from the sale of
399-1 the unlawful oil and/or products, and after such expenses have been
399-2 approved and allowed by the court trying the case, all funds then
399-3 remaining, shall be remitted forthwith to the Comptroller [State
399-4 Treasurer] and shall be by the Comptroller [Treasurer] placed to
399-5 the credit of the General Revenue Fund of the State of Texas.
399-6 SECTION 21.59. Sections 14 and 15, Chapter 416, Acts of the
399-7 51st Legislature, Regular Session, 1949 (Article 6077o, Vernon's
399-8 Texas Civil Statutes), are amended to read as follows:
399-9 Sec. 14. FILING PAPERS; PAYMENTS; APPROPRIATION AND
399-10 EXPENDITURE. All surveys, files, records, copies of sale and lease
399-11 contracts and all other records pertaining to the sales and leases
399-12 hereby authorized on State Park Land under the control of State
399-13 Parks Board, shall be filed in the General Land Office and
399-14 constitute archives thereof. Payment hereunder shall be made to
399-15 the Commissioner of the General Land Office at Austin, Texas, who
399-16 shall transmit to the Comptroller [State Treasurer] all bonus
399-17 payments and royalty for deposit to the credit of the State Park
399-18 Development Fund, and all rentals for delay in drilling and all
399-19 other payments, including all filing assignments and relinquishment
399-20 fees hereunder to the credit of the State Park Development Fund.
399-21 All moneys or sums so deposited to the State Park Development Fund
399-22 shall be appropriated and expended by the Legislature for the
399-23 development, improvement and maintenance of State Parks.
399-24 Sec. 15. PAYMENT OF EXPENSES. The expenses of executing the
399-25 provisions of this Act shall be paid monthly by warrants drawn by
399-26 the Comptroller on the State Treasury [Treasurer], and for that
399-27 purpose the sum of Two Thousand Dollars ($2,000), or as much
400-1 thereof as may be necessary is hereby appropriated out of any money
400-2 in the Treasury not otherwise appropriated until September 1, 1951.
400-3 SECTION 21.60. Section 3, Article 6145-11b, Revised
400-4 Statutes, is amended to read as follows:
400-5 Sec. 3. As amounts from licensing fees, royalties, and the
400-6 sale of medallions designated as lone stars by the Texas 1986
400-7 Sesquicentennial Commission are deposited in the fund:
400-8 (1) the Comptroller [State Treasurer] shall allocate
400-9 the amounts equally between an account in the fund that may be used
400-10 only by the Texas Tourist Development Agency and an account in the
400-11 fund that may be used only by the Texas Commission on the Arts,
400-12 until the account of the Texas Commission on the Arts has received
400-13 $1,261,244; and
400-14 (2) after the account for the Texas Commission on the
400-15 Arts has received $1,261,244, the Comptroller [State Treasurer]
400-16 shall allocate the amounts only to the account of the Texas Tourist
400-17 Development Agency until that account has received $2,291,996; and
400-18 (3) after the account for the Texas Tourist
400-19 Development Agency has received $2,291,996, the Comptroller [State
400-20 Treasurer] shall allocate the amounts equally among the account of
400-21 the Texas Tourist Development Agency, the account of the Texas
400-22 Commission on the Arts, and an account in the fund that may be used
400-23 only by the Texas 1986 Sesquicentennial Commission, until the
400-24 account of the Texas Commission on the Arts has received a total of
400-25 $7,095,846 from amounts allocated under this subsection and
400-26 Subdivision (1) of this section;
400-27 (4) after the account for the Texas Commission on the
401-1 Arts has received a total of $7,095,846 from amounts allocated
401-2 under Subdivisions (1) and (3) of this section, the Comptroller
401-3 [State Treasurer] shall allocate the amounts equally between the
401-4 accounts of the Texas Tourist Development Agency and the Texas 1986
401-5 Sesquicentennial Commission until the account of the Texas 1986
401-6 Sesquicentennial Commission has received a total of $10,000,000
401-7 from amounts allocated under this subdivision and Subdivision (3)
401-8 of this section or until January 31, 1987, whichever shall first
401-9 occur.
401-10 (5) after the Texas 1986 Sesquicentennial Commission
401-11 has received a total of $10,000,000 from the amounts allocated
401-12 under Subdivisions (3) and (4) of this section, the Comptroller
401-13 [State Treasurer] shall allocate the amounts only to the account of
401-14 the Texas Tourist Development Agency until the account of the Texas
401-15 Tourist Development Agency has received a total of $15,145,604; and
401-16 (6) after the Texas Tourist Development Agency has
401-17 received a total of $15,145,604 from amounts allocated under this
401-18 section, the Comptroller [State Treasurer] shall allocate the
401-19 amounts only to the account of the State Preservation Board.
401-20 SECTION 21.61. Section 5(b), Chapter 809, Acts of the 74th
401-21 Legislature, Regular Session, 1995 (Article 6145-15, Vernon's Texas
401-22 Civil Statutes), is amended to read as follows:
401-23 (b) On the date on which the commission files its final
401-24 report with the secretary of state, the commission shall deliver to
401-25 the comptroller [state treasurer] all unexpended and unobligated
401-26 money that the commission possesses. The comptroller [treasurer]
401-27 shall deposit the money in the state treasury to the credit of the
402-1 general revenue fund.
402-2 SECTION 21.62. Article 6215, Revised Statutes, is amended to
402-3 read as follows:
402-4 Art. 6215. PAYMENTS; AFFIDAVIT; WARRANT. The payment of
402-5 such pension shall be made on the first day of each calendar month
402-6 to all pensioners whose application for pensions shall have been
402-7 duly approved as provided by law by warrant drawn by the
402-8 Comptroller on the State Treasury [Treasurer], to be paid out of
402-9 the money appropriated for that purpose as provided by law.
402-10 Such warrant shall be transmitted by mail to the payee
402-11 thereof at his or her last known address. It shall be unlawful for
402-12 any postmaster, delivery clerk, letter carrier or other postal
402-13 employee to deliver any such mail to any person whomsoever if the
402-14 addressee is known to have died or removed or, in the case of a
402-15 widow, if known to have remarried; and it shall be unlawful for any
402-16 person or persons to open any such mail addressed to any such
402-17 addressee who has died or removed, or to any such widow who has
402-18 remarried, or to convert such warrant into cash; but in every such
402-19 case such mail shall forthwith be returned to the Comptroller at
402-20 Austin, Texas, with a statement of the reasons for so doing and if,
402-21 because of death or remarriage, the date thereof, if known, and all
402-22 such warrants so returned to the Comptroller shall be cancelled.
402-23 In the event a veteran is receiving the pension allowed under this
402-24 Act to a married veteran, and his wife dies, it shall be his duty
402-25 to immediately report such death to the Comptroller and he shall
402-26 not thereafter present any pension warrant for payment when the
402-27 amount of the same is intended for a married veteran, but shall
403-1 immediately return the same to the Comptroller.
403-2 Any person who shall knowingly violate the provisions of this
403-3 Article shall be guilty of a felony and, on conviction, shall be
403-4 punished by fine of not less than One Hundred Dollars ($100.00) or
403-5 by imprisonment in the county jail for not less than three months,
403-6 or by imprisonment in the penitentiary for not less than one (1)
403-7 year.
403-8 SECTION 21.63. Sections 1 and 2, Chapter 479, Acts of the
403-9 44th Legislature, 3rd Called Session, 1936 (Article 6243-22,
403-10 Vernon's Texas Civil Statutes), are amended to read as follows:
403-11 Sec. 1. LIQUIDATION OF CERTAIN UNITED STATES OBLIGATIONS;
403-12 REDEPOSIT. The Comptroller [Treasurer] of the State of Texas is
403-13 empowered and directed to immediately sell and liquidate any and
403-14 all bonds or interest bearing obligations of the United States or
403-15 obligations guaranteed as to both principal and interest by the
403-16 United States that have been deposited in the Permanent Old Age
403-17 Pension Fund and the gross proceeds from such sale and liquidation
403-18 shall be immediately redeposited in the Permanent Old Age Pension
403-19 Fund.
403-20 Sec. 2. TRANSFER TO TEXAS OLD AGE ASSISTANCE FUND. It is
403-21 further provided that there is hereby appropriated and transferred
403-22 all monies, choses in action, funds and things of value now a part
403-23 of and accumulated in the Permanent Old Age Pension Fund into the
403-24 Texas Old Age Assistance Fund to be used by the Old Age Assistance
403-25 Commission for the sole purpose of paying Old Age Assistance Grants
403-26 to applicants whose applications have been and may be approved and
403-27 allowed; and be it further provided that no portion of said money
404-1 shall be expended for administrative purposes; and be it further
404-2 provided that the comptroller [State Treasurer] and all other
404-3 accounting officers in the State are hereby authorized and directed
404-4 to take such action as may be necessary to effectuate this
404-5 appropriation and transfer.
404-6 SECTION 21.64. Section 2, Chapter 496, Acts of the 44th
404-7 Legislature, 3rd Called Session, 1936 (Article 6243-23, Vernon's
404-8 Texas Civil Statutes), is amended to read as follows:
404-9 Sec. 2. The form and method of issuing such warrants and of
404-10 paying the interest thereon as herein authorized shall be
404-11 prescribed by the Texas Old Age Assistance Commission. The
404-12 Comptroller is [and the Treasurer are] authorized and directed to
404-13 perform such duties as are required [of them] under authority of
404-14 this Act to accomplish its purpose.
404-15 SECTION 21.65. Sections 2, 6, and 7, Chapter 1, page 536,
404-16 General Laws, Acts of the 46th Legislature, 1939 (Article 6243-24,
404-17 Vernon's Texas Civil Statutes), are amended to read as follows:
404-18 Sec. 2. The form and method of issuing such warrants and of
404-19 paying the interest thereon as herein authorized shall be
404-20 prescribed by the Texas Old Age Assistance Commission. The
404-21 Comptroller is [and the Treasurer are] authorized and directed to
404-22 perform such duties as are required [of them] under the authority
404-23 of this Act to accomplish its purpose.
404-24 Sec. 6. a. It is provided that the Comptroller [Treasurer]
404-25 of the State of Texas shall call all warrants now outstanding that
404-26 have heretofore been issued under the authority and provisions of
404-27 Chapter 496, Page 2084, Acts 1936, Forty-fourth Legislature, Third
405-1 Called Session, and he is directed and authorized to pay said
405-2 warrants, together with interest thereon, out of the Texas Old Age
405-3 Assistance Fund, according to the following schedule:
405-4 On October 10, 1939, warrants in the amount of One Hundred
405-5 Thirty Thousand, Nine Hundred and Eighty-seven Dollars ($130,987)
405-6 shall be called and paid by the Comptroller [Treasurer], together
405-7 with interest thereon, and on the 10th day of each month
405-8 thereafter, the Comptroller [Treasurer] is directed and authorized
405-9 to call and pay the remaining outstanding warrants in the amount of
405-10 Two Hundred Thousand Dollars ($200,000) per month, together with
405-11 interest thereon, until such time as all outstanding warrants
405-12 hereinabove referred to shall be called and paid in full, and there
405-13 is hereby appropriated out of funds allocated in present and/or
405-14 future laws to the Old Age Assistance Fund a sum sufficient to pay
405-15 said obligations and the interest thereon.
405-16 b. The Comptroller [Treasurer] of the State of Texas is
405-17 directed and authorized to call and pay all warrants that might
405-18 hereafter be issued under and by virtue of the provisions of this
405-19 Act in approximate equal monthly installments on the 10th day of
405-20 the months May, 1940, to September, 1940, both inclusive, together
405-21 with interest thereon, out of the Texas Old Age Assistance Fund,
405-22 and there is hereby appropriated out of funds allocated in present
405-23 and/or future laws to the Old Age Assistance Fund a sum sufficient
405-24 to pay said obligations and the interest thereon.
405-25 Sec. 7. (1) The Old Age Assistance Commission be and is
405-26 hereby authorized and directed to offer to and deliver to the
405-27 holder, or holders, of the warrants which may be issued under the
406-1 provisions of this Act and of the warrants heretofore issued for
406-2 Old Age Assistance under authority of Chapter 496, Page 2084, Acts
406-3 1936, Forty-fourth Legislature, Third Called Session, and now
406-4 outstanding, the State's obligation in the same principal amount,
406-5 or amounts, in such forms and denominations as shall be determined
406-6 by such Commission, approved by the Attorney General, and
406-7 acceptable to such holder, or holders, bearing interest at not to
406-8 exceed one and six-tenths (1.6) per cent per annum or not to exceed
406-9 the rate of interest which shall be paid on or on account of the
406-10 warrants which may be issued under the terms of this Act, whichever
406-11 rate is the lower. Said obligations shall bear dates to be fixed
406-12 by the Commission and shall mature exactly according to the
406-13 schedules set out in Section 6 hereof.
406-14 (2) Upon exchange of the original warrants for the
406-15 obligations authorized hereunder the Comptroller [State Treasurer]
406-16 shall retain in his possession in escrow as trustee said original
406-17 warrants until the obligations herein authorized are paid in full.
406-18 And the holder, or holders, of such obligations, in addition to all
406-19 other rights, shall be subrogated to the rights of the holders of
406-20 such original warrants. Upon payment of such obligations said
406-21 original warrants shall be cancelled by the Comptroller [State
406-22 Treasurer]. There is hereby appropriated out of funds allocated in
406-23 present and/or future laws to the Old Age Assistance Fund a sum
406-24 sufficient to pay said obligations and the interest thereon.
406-25 (3) Interest on such original warrants shall be paid in
406-26 accordance with the contract or contracts under which they were
406-27 issued up to the date of the exchange for the obligations
407-1 authorized herein.
407-2 (4) Such obligations to be substituted therefor shall be
407-3 eligible to secure deposits of all funds of the State of Texas, and
407-4 of counties, cities, districts, and political subdivisions of and
407-5 in the State of Texas on the basis of one dollar principal amount
407-6 of such obligations for each dollar of deposited funds.
407-7 (5) The Governor, [State Treasurer,] Attorney General, Texas
407-8 Old Age Assistance Commission, Comptroller of Public Accounts, and
407-9 the Secretary of State are hereby directed to do any and all things
407-10 necessary to accomplish the purposes of this Section.
407-11 (6) When such obligations shall have been issued in
407-12 accordance with a resolution adopted by the Texas Old Age
407-13 Assistance Commission and shall have been approved by the Attorney
407-14 General, they shall be incontestable and the full faith and credit
407-15 of the State shall be pledged to their payment.
407-16 SECTION 21.66. Section 5(k), The Real Estate License Act
407-17 (Article 6573a, Vernon's Texas Civil Statutes), is amended to read
407-18 as follows:
407-19 (k) Except as provided in Subsections (l) and (m) of this
407-20 section, all money derived from fees, assessments, or charges under
407-21 this Act, shall be paid by the commission into the State Treasury
407-22 for safekeeping, and shall be placed by the Comptroller [State
407-23 Treasurer] in a separate fund to be available for the use of the
407-24 commission in the administration of this Act on requisition by the
407-25 commission. A necessary amount of the money so paid into the State
407-26 Treasury is hereby specifically appropriated to the commission for
407-27 the purpose of paying the salaries and expenses necessary and
408-1 proper for the administration of this Act, including equipment and
408-2 maintenance of supplies for the offices or quarters occupied by the
408-3 commission, and necessary travel expenses for the commission or
408-4 persons authorized to act for it when performing duties under this
408-5 Act. The comptroller shall, on requisition of the commission, draw
408-6 warrants from time to time on the State Treasury [Treasurer] for
408-7 the amount specified in the requisition, not exceeding, however,
408-8 the amount in the fund at the time of making a requisition.
408-9 However, all money expended in the administration of this Act shall
408-10 be specified and determined by itemized appropriation in the
408-11 general departmental appropriation bill for the Texas Real Estate
408-12 Commission, and not otherwise. The commission shall file annually
408-13 with the governor and the presiding officer of each house of the
408-14 legislature a complete and detailed written report accounting for
408-15 all funds received and disbursed by the commission during the
408-16 preceding fiscal year. The annual report must be in the form and
408-17 reported in the time provided by the General Appropriations Act.
408-18 SECTION 21.67. Section 7(e), Article 6675d, Revised
408-19 Statutes, is amended to read as follows:
408-20 (e) A municipality shall send the proceeds of all fines that
408-21 exceed the limit imposed by Subsection (d) of this section to the
408-22 comptroller [state treasurer] for deposit in the general revenue
408-23 fund.
408-24 SECTION 21.68. Section 15, Vehicle Storage Facility Act
408-25 (Article 6687-9a, Revised Statutes), is amended to read as follows:
408-26 Sec. 15. USE OF FEES. The commission shall remit all fees
408-27 collected under this article to the Comptroller [State Treasurer]
409-1 for deposit in the State Treasury to the credit of the general
409-2 revenue fund.
409-3 SECTION 21.69. Section 27(a), Chapter 65, Acts of the 41st
409-4 Legislature, 1st Called Session, 1929 (Article 8407a, Vernon's
409-5 Texas Civil Statutes), is amended to read as follows:
409-6 (a) The State Board of Barber Examiners shall select an
409-7 executive director and such other employees, as may be necessary,
409-8 to carry out the provisions of this Act and provide for the
409-9 compensation of the executive director and other employees. Said
409-10 Board shall maintain its office in the City of Austin, Texas, and
409-11 shall adopt rules and regulations for the transaction of the
409-12 business herein provided for, including a common seal for the
409-13 authentication of its orders, certificates and records. The
409-14 executive director shall keep a record of all proceedings of the
409-15 Board and shall be the custodian of all such records and shall
409-16 receive and receipt for all money collected by the Board. All
409-17 money so received shall be immediately deposited with the
409-18 Comptroller [State Treasurer], who shall credit same to a special
409-19 fund to be known as "State Board of Barber Examiners Fund," which
409-20 money shall be drawn from said special fund upon claims made
409-21 therefor by the Board to the Comptroller; and if found correct, to
409-22 be approved by him and vouchers issued therefor, and [countersigned
409-23 and] paid by the Comptroller [State Treasurer], which special fund
409-24 is for the purpose of carrying out all the provisions of this Act.
409-25 The Board shall file annually with the governor and the presiding
409-26 officer of each house of the legislature a complete and detailed
409-27 written report accounting for all funds received and disbursed by
410-1 the Board during the preceding fiscal year. The annual report must
410-2 be in the form and reported in the time provided by the General
410-3 Appropriations Act. The financial transactions of the Board are
410-4 subject to audit by the state auditor in accordance with Chapter
410-5 321, Government Code.
410-6 SECTION 21.70. Section 8(a), Chapter 1036, Acts of the 62nd
410-7 Legislature, Regular Session, 1971 (Article 8451a, Vernon's Texas
410-8 Civil Statutes), is amended to read as follows:
410-9 (a) The executive director shall remit, on or before the
410-10 10th day of each month, to the comptroller [state treasurer] all
410-11 fees collected under this Act during the preceding month for
410-12 deposit in the General Revenue Fund.
410-13 SECTION 21.71. Section 21A(d), Chapter 1036, Acts of the
410-14 62nd Legislature, Regular Session, 1971 (Article 8451a, Vernon's
410-15 Texas Civil Statutes), is amended to read as follows:
410-16 (d) The comptroller [state treasurer] shall invest the fund
410-17 in the same manner as other state funds. Sufficient funds from the
410-18 tuition protection fund shall be appropriated to the commission for
410-19 the purpose outlined in this section. The commission shall
410-20 administer claims made against the fund.
410-21 SECTION 21.72. Section 5A(a), Chapter 320, Acts of the 64th
410-22 Legislature, Regular Session, 1975 (Article 8700, Vernon's Texas
410-23 Civil Statutes), is amended to read as follows:
410-24 (a) The auctioneer education and recovery fund is
410-25 established as a special trust fund with the comptroller [state
410-26 treasurer] administered by the department, without appropriation,
410-27 for the payment of claims against auctioneers licensed under this
411-1 Act.
411-2 SECTION 21.73. Subdivision (2), Article 8805, Revised
411-3 Statutes, is amended to read as follows:
411-4 (2) Before any restraining order or injunction shall be
411-5 granted against the Comptroller to restrain or enjoin the
411-6 collection of the taxes levied herein the applicant therefor shall
411-7 pay into the suspense account of the State Treasury all taxes,
411-8 fees, and assessments then due by him to the State and the
411-9 application for restraining order or injunction shall reflect said
411-10 fact of payment under oath of the applicant, his agent, or
411-11 attorney. Provided that said applicant shall keep for the
411-12 inspection at all times of the Attorney General and the Comptroller
411-13 or their authorized representatives, a complete, itemized record
411-14 maintained in accordance with generally accepted auditing and
411-15 accounting practices, showing all coin-operated vending machines
411-16 possessed and in operation during the pendency of such restraining
411-17 order or injunction. Such record shall show the make and kind of
411-18 machine, the serial number, the date such machine was put in
411-19 operation, and the location and serial number of each and every
411-20 machine possessed or operated within the State. Provided further
411-21 that said applicant shall make and file with the Comptroller daily,
411-22 excluding Sundays and legal holidays, a report on a form to be
411-23 prescribed by the Comptroller, showing the ownership, make and
411-24 kind, and the serial number of every such machine operated by said
411-25 applicant within this State. Said report shall also show the
411-26 county, city, and location within the city and county of each
411-27 machine and the date such machine was placed in operation. In the
412-1 event the location or ownership of any machine is changed such
412-2 information shall be included in said report. Said application and
412-3 temporary injunction or restraining order shall be immediately
412-4 dismissed and dissolved after hearing if said applicant fails, at
412-5 any time before the case shall have been finally disposed of by the
412-6 court of last resort, to keep the records or make and file the
412-7 reports required herein or to pay daily, excluding Sundays and
412-8 legal holidays, into the suspense account of the Comptroller
412-9 [Treasurer] all taxes, fees and assessments due and thereafter
412-10 becoming due, and such taxes shall be paid before such machines are
412-11 operated, exhibited or displayed for operation within this State.
412-12 The Comptroller, or an authorized representative of the
412-13 Comptroller, may file in the court granting such injunction an
412-14 affidavit that said applicant has failed to comply with the
412-15 provisions of this Chapter or has violated the same. Upon the
412-16 filing of said affidavit, the clerk of said court shall issue
412-17 notice to the said applicant to appear before such court upon the
412-18 date named therein, which shall be within five (5) days from
412-19 service of such notice or as soon thereafter as the court can hear
412-20 the same, to show cause why such injunction should not be
412-21 dismissed, which notice shall be served by the sheriff of the
412-22 county in which applicant resides or any other peace officer in
412-23 this State. In the event the injunction is finally dissolved or
412-24 dismissed, all taxes, fees and assessments, paid into the suspense
412-25 account of the Comptroller [Treasurer] under the provisions of this
412-26 Chapter shall be paid to the funds to which such taxes, fees and
412-27 assessments are allocated. If the final judgment maintains the
413-1 right of applicant to a permanent injunction to prevent the
413-2 collection of such taxes the funds so deposited shall be refunded
413-3 by the Comptroller [Treasurer] to said applicant.
413-4 SECTION 21.74. Section 8(a), The Property Taxation
413-5 Professional Certification Act (Article 8885, Revised Statutes), is
413-6 amended to read as follows:
413-7 (a) The board shall receive and account for all money
413-8 derived under the provisions of this Act and shall pay it to the
413-9 Comptroller [State Treasurer]. The Comptroller [State Treasurer]
413-10 shall designate a separate fund to be known as the "Assessors
413-11 Registration Fund," which may be used only by the board for the
413-12 purpose of administering this Act.
413-13 ARTICLE 22. PURPOSE; ABOLISHED FUNDS; EMERGENCY
413-14 SECTION 22.01. The purpose of this Act is to conform the
413-15 statutes to reflect the abolishment of the office of state
413-16 treasurer.
413-17 SECTION 22.02. (a) This Act does not revive a fund or
413-18 account that was abolished or consolidated in accordance with
413-19 Section 403.094, Government Code, as added by Chapter 4, Acts of
413-20 the 72nd Legislature, 1st Called Session, 1991, or in accordance
413-21 with other law.
413-22 (b) This Act does not revive a dedication of money for a
413-23 particular purpose that was abolished in accordance with Section
413-24 403.094, Government Code, as added by Chapter 4, Acts of the 72nd
413-25 Legislature, 1st Called Session, 1991, or in accordance with other
413-26 law.
413-27 SECTION 22.03. This Act takes effect September 1, 1997.
414-1 SECTION 22.04. The importance of this legislation and the
414-2 crowded condition of the calendars in both houses create an
414-3 emergency and an imperative public necessity that the
414-4 constitutional rule requiring bills to be read on three several
414-5 days in each house be suspended, and this rule is hereby suspended.