By Junell, Cuellar, Delisi, Cook, Marchant H.B. No. 1161 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the tobacco settlement permanent trust account. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 ARTICLE 1. DUTIES OF THE COMPTROLLER 1-5 SECTION 1.01. Subchapter G, Chapter 403, Government Code, is 1-6 amended by adding Sections 403.105 and 403.106 to read as follows: 1-7 Sec. 403.105. TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT. 1-8 (a) In this section and Section 403.106: 1-9 (1) "Account" means the tobacco settlement permanent 1-10 trust account established under the agreement. 1-11 (2) "Advisory committee" means the tobacco settlement 1-12 permanent trust account investment advisory committee. 1-13 (3) "Agreement" means the Agreement Regarding 1-14 Disposition of Settlement Proceeds filed on July 24, 1998, in the 1-15 United States District Court, Eastern District of Texas, in the 1-16 case styled The State of Texas v. The American Tobacco Co., et al., 1-17 No. 5-96CV-91. The term includes the subsequent Clarification of 1-18 Agreement Regarding Disposition of Settlement Proceeds filed on 1-19 July 24, 1998, in that litigation. 1-20 (4) "Department" means the Texas Department of Health. 1-21 (5) "Political subdivision" means: 1-22 (A) a hospital district; 1-23 (B) another local political subdivision that 1-24 owns or maintains a public hospital; or 2-1 (C) a county of this state responsible for 2-2 providing indigent health care to the general public. 2-3 (b) With the advice of and in consultation with the advisory 2-4 committee, the comptroller shall administer the account and shall 2-5 manage the assets of the account. 2-6 (c) In managing the assets of the account, the comptroller, 2-7 with the advice of and in consultation with the advisory committee, 2-8 may acquire, exchange, sell, supervise, manage, or retain, through 2-9 procedures and subject to restrictions the comptroller establishes 2-10 and in amounts the comptroller considers appropriate, any kind of 2-11 investment that a person of ordinary prudence, discretion, and 2-12 intelligence, exercising the judgment and care under the 2-13 circumstances prevailing at that time, would acquire or retain for 2-14 the person's own account in the management of the person's affairs, 2-15 not in regard to speculation but in regard to the permanent 2-16 disposition of the person's money, considering the probable income 2-17 as well as the probable safety of the capital. Investment and 2-18 management decisions concerning individual investments must be 2-19 evaluated not in isolation but in the context of the investment 2-20 portfolio as a whole and as part of an overall investment strategy 2-21 consistent with the investment objectives of the account. 2-22 (d) The account is a trust account with the comptroller and 2-23 is composed of money paid to the account in accordance with the 2-24 agreement, assets purchased with that money, the earnings of the 2-25 account, and any other contributions made to the account. The 2-26 corpus of the account shall remain in the account and may not be 2-27 distributed for any purpose. The money and other assets contained 3-1 in the account are not a part of the general funds of the state. 3-2 The comptroller may appoint one or more commercial banks, 3-3 depository trust companies, or other entities to serve as a 3-4 custodian of the account's assets. Section 404.071 does not apply 3-5 to the account. 3-6 (e) The comptroller, with the advice of and in consultation 3-7 with the advisory committee, may use the earnings of the account 3-8 for any investment expense, including to obtain the advice of 3-9 appropriate investment consultants for managing the assets in the 3-10 account. 3-11 (f) On certification by the department under Subchapter J, 3-12 Chapter 12, Health and Safety Code, the comptroller shall make an 3-13 annual distribution of the net earnings from the account to each 3-14 eligible political subdivision as provided in the agreement 3-15 regarding disposition of settlement proceeds. 3-16 (g) Before December 1 of each year the comptroller shall 3-17 prepare a written report regarding the account during the fiscal 3-18 year ending on the preceding August 31. Not later than January 1 of 3-19 each year the comptroller shall distribute the report to the 3-20 advisory committee, the governor, the lieutenant governor, the 3-21 state auditor, the attorney general, and the Legislative Budget 3-22 Board. The comptroller shall furnish a copy of the report to any 3-23 member of the legislature or other interested person on request. 3-24 The report must include: 3-25 (1) statements of assets and a schedule of changes in 3-26 book value of the investments from the account; 3-27 (2) a summary of the gains, losses, and income from 4-1 investments on August 31; 4-2 (3) an itemized list of the securities held for the 4-3 account on August 31; and 4-4 (4) any other information needed to clearly indicate 4-5 the nature and extent of the investments made of the account and 4-6 the income realized from the components of the account. 4-7 (h) The comptroller shall adopt rules necessary to implement 4-8 the comptroller's duties under this section, including rules 4-9 distinguishing the net earnings of the account that may be 4-10 distributed under Subsection (f) from earnings used for investment 4-11 expenses under Subsection (e) and from the money and assets that 4-12 are the corpus of the account. A rule adopted by the comptroller 4-13 under this subsection must be submitted to the advisory committee 4-14 and may not become effective before the rule is approved by the 4-15 advisory committee. If the advisory committee disapproves a 4-16 proposed rule, the advisory committee shall provide the comptroller 4-17 the specific reasons that the rule was disapproved. 4-18 Sec. 403.106. TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT 4-19 INVESTMENT ADVISORY COMMITTEE. (a) The tobacco settlement 4-20 permanent trust account investment advisory committee shall advise 4-21 the comptroller with respect to managing the assets of the tobacco 4-22 settlement permanent trust account. The committee shall provide the 4-23 comptroller guidance with respect to the investment philosophy that 4-24 should be pursued in managing these assets and the extent to which, 4-25 at any particular time, the assets should be managed to maximize 4-26 growth of the corpus or to maximize earnings. Except as provided 4-27 by Section 403.105(h), the advisory committee serves in an advisory 5-1 capacity only and is not a fiduciary with respect to the account. 5-2 (b) The advisory committee is composed of 11 members 5-3 appointed by the advisory committee as follows: 5-4 (1) one member nominated by the comptroller to 5-5 represent a public hospital or hospital district located in a 5-6 county with a population of 50,000 or less or a public hospital 5-7 owned or maintained by a municipality; 5-8 (2) one member nominated by the political subdivision 5-9 that, in the year preceding the appointment, received the largest 5-10 annual distribution paid from the account; 5-11 (3) one member nominated by the political subdivision 5-12 that, in the year preceding the appointment, received the second 5-13 largest annual distribution paid from the account; 5-14 (4) four members nominated by political subdivisions 5-15 that: 5-16 (A) in the year preceding the appointment, 5-17 received the 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, or 12th 5-18 largest annual distribution paid from the account; and 5-19 (B) do not have a nominee serving on the 5-20 advisory committee at the time of appointment; 5-21 (5) one member nominated by the County Judges and 5-22 Commissioners Association of Texas; 5-23 (6) one member nominated by the North and East Texas 5-24 County Judges and Commissioners Association; 5-25 (7) one member nominated by the South Texas County 5-26 Judges and Commissioners Association; and 5-27 (8) one member nominated by the West Texas County 6-1 Judges and Commissioners Association. 6-2 (c) A commissioners court that sets the tax rate for a 6-3 hospital district must approve any person nominated by the hospital 6-4 district to serve on the advisory committee. 6-5 (d) The advisory committee shall elect the officers of the 6-6 committee from among the members of the committee. 6-7 (e) Members of the advisory committee serve staggered 6-8 six-year terms expiring on August 31 of each odd-numbered year. 6-9 (f) An individual or entity authorized to make an 6-10 appointment or nominate someone for appointment to the advisory 6-11 committee created under this section shall attempt to appoint or 6-12 nominate persons who represent the gender composition, minority 6-13 populations, and geographic regions of the state. 6-14 (g) Members of the advisory committee serve without 6-15 compensation from the trust fund or the state and may not be 6-16 reimbursed from the trust fund or the state for travel expenses 6-17 incurred while conducting the business of the advisory committee. 6-18 (h) The comptroller shall provide administrative support and 6-19 resources to the advisory committee as necessary for the advisory 6-20 committee to perform the advisory committee's duties under this 6-21 section and Section 403.105. 6-22 (i) Chapter 2110 does not apply to the advisory committee. 6-23 SECTION 1.02. Subchapter G, Chapter 403, Government Code, is 6-24 amended by adding Section 403.1066 to read as follows: 6-25 Sec. 403.1066. RESTRICTIONS ON LOBBYING EXPENDITURES. (a) A 6-26 political subdivision or other entity receiving a distribution 6-27 pursuant to Section 403.105(f), Government Code, may not use the 7-1 distribution to pay: 7-2 (1) lobbying expenses incurred by the recipient of the 7-3 distribution; 7-4 (2) a person or entity that is required to register 7-5 with the Texas Ethics Commission under Chapter 305, Government 7-6 Code; 7-7 (3) any partner, employee, employer, relative, 7-8 contractor, consultant, or related entity of a person or entity 7-9 described by Subdivision (2); or 7-10 (4) a person or entity who has been hired to represent 7-11 associations or other entities for the purpose of affecting the 7-12 outcome of legislation, agency rules, ordinances, or other 7-13 government policies. 7-14 (b) The persons or entities described by Subsection (a) are 7-15 not eligible to receive the money or participate either directly or 7-16 indirectly in the distributions made under Section 403.105(f), 7-17 Government Code. 7-18 SECTION 1.03. (a) Notwithstanding Section 403.106(b), 7-19 Government Code, as added by this Act, the initial tobacco 7-20 settlement permanent trust account investment advisory committee is 7-21 composed of the following 11 members: 7-22 (1) one member appointed by the comptroller to 7-23 represent a public hospital or hospital district located in a 7-24 county with a population of 50,000 or less or a public hospital 7-25 owned or maintained by a municipality that is not otherwise 7-26 represented under this subsection, for a term expiring August 31, 7-27 2003; 8-1 (2) one member appointed by the Harris County 8-2 Commissioners Court for a term expiring August 31, 2001; 8-3 (3) one member appointed by the Dallas County 8-4 Commissioners Court for a term expiring August 31, 2001; 8-5 (4) one member appointed by the Tarrant County 8-6 Hospital District for a term expiring August 31, 2005; 8-7 (5) one member appointed by the El Paso County 8-8 Hospital District for a term expiring August 31, 2005; 8-9 (6) one member appointed by the Nueces County 8-10 Commissioners Court for a term expiring August 31, 2005; 8-11 (7) one member appointed by the Montgomery County 8-12 Hospital District for a term expiring August 31, 2005; 8-13 (8) one member appointed by the County Judges and 8-14 Commissioners Association of Texas for a term expiring August 31, 8-15 2001; 8-16 (9) one member appointed by the North and East Texas 8-17 County Judges and Commissioners Association for a term expiring 8-18 August 31, 2003; 8-19 (10) one member appointed by the South Texas County 8-20 Judges and Commissioners Association for a term expiring August 31, 8-21 2003; and 8-22 (11) one member appointed by the West Texas County 8-23 Judges and Commissioners Association for a term expiring August 31, 8-24 2003. 8-25 (b) On the expiration of the term of the member appointed 8-26 under Subsection (a)(1) of this section, the advisory committee 8-27 shall fill the vacancy under Section 403.106(b)(1), Government 9-1 Code, as added by this Act. 9-2 (c) On the expiration of the term of the member appointed 9-3 under Subsection (a)(2) of this section, the advisory committee 9-4 shall fill the vacancy under Section 403.106(b)(2), Government 9-5 Code, as added by this Act. 9-6 (d) On the expiration of the term of the member appointed 9-7 under Subsection (a)(3) of this section, the advisory committee 9-8 shall fill the vacancy under Section 403.106(b)(3), Government 9-9 Code, as added by this Act. 9-10 (e) On the expiration of the term of a member appointed 9-11 under Subsection (a)(4), (5), (6), or (7) of this section, the 9-12 advisory committee shall fill the vacancy under Section 9-13 403.106(b)(4), Government Code, as added by this Act. 9-14 (f) On the expiration of the term of the member appointed 9-15 under Subsection (a)(8) of this section, the advisory committee 9-16 shall fill the vacancy under Section 403.106(b)(5), Government 9-17 Code, as added by this Act. 9-18 (g) On the expiration of the term of the member appointed 9-19 under Subsection (a)(9) of this section, the advisory committee 9-20 shall fill the vacancy under Section 403.106(b)(6), Government 9-21 Code, as added by this Act. 9-22 (h) On the expiration of the term of the member appointed 9-23 under Subsection (a)(10) of this section, the advisory committee 9-24 shall fill the vacancy under Section 403.106(b)(7), Government 9-25 Code, as added by this Act. 9-26 (i) On the expiration of the term of the member appointed 9-27 under Subsection (a)(11) of this section, the advisory committee 10-1 shall fill the vacancy under Section 403.106(b)(8), Government 10-2 Code, as added by this Act. 10-3 SECTION 1.04. Not later than the 30th day after the 10-4 effective date of this Act: 10-5 (1) each appointing authority shall make the 10-6 appointment to the tobacco settlement permanent trust account 10-7 investment committee required by Section 1.02(a) of this Act; and 10-8 (2) the comptroller shall notify the appointees of the 10-9 time and place of the first meeting of the advisory committee. 10-10 ARTICLE 2. DUTIES OF THE TEXAS DEPARTMENT OF HEALTH 10-11 SECTION 2.01. Chapter 12, Health and Safety Code, is amended 10-12 by adding Subchapter J to read as follows: 10-13 SUBCHAPTER J. TOBACCO SETTLEMENT PROCEEDS 10-14 Sec. 12.131. DEFINITIONS. In this subchapter: 10-15 (1) "Account" has the meaning assigned by Section 10-16 403.105, Government Code. 10-17 (2) "Advisory committee" means the tobacco settlement 10-18 permanent trust account administration advisory committee. 10-19 (3) "Agreement" has the meaning assigned by Section 10-20 403.105, Government Code. 10-21 (4) "Political subdivision" has the meaning assigned 10-22 by Section 403.105, Government Code. 10-23 Sec. 12.132. CERTIFICATION TO COMPTROLLER. The department 10-24 shall collect information relating to the unreimbursed health care 10-25 expenditures of each political subdivision and, based on that 10-26 information and using the formula established in Paragraph 5.B. of 10-27 the agreement, shall certify to the comptroller the percentage of 11-1 each annual distribution to be paid from the account to each 11-2 political subdivision. 11-3 Sec. 12.133. COLLECTION OF INFORMATION. (a) Each political 11-4 subdivision shall submit to the department, in the manner and at 11-5 the time required by the department, information that relates to 11-6 the political subdivision's unreimbursed health care expenditures 11-7 and is required by the department to make the certification under 11-8 Section 12.132. 11-9 (b) Subject to the approval of the advisory committee, the 11-10 board shall adopt rules governing the collection of information 11-11 under Subsection (a). The rules may provide for regular audits of 11-12 randomly selected political subdivisions and may govern the manner 11-13 in which a political subdivision is selected for an audit and the 11-14 selection of an auditor. 11-15 Sec. 12.134. DISPUTES RELATING TO INFORMATION COLLECTED. 11-16 (a) Subject to the approval of the advisory committee, the board 11-17 shall adopt rules under which a political subdivision or agency of 11-18 this state may dispute information submitted by a political 11-19 subdivision under Section 12.133. 11-20 (b) The rules may provide for: 11-21 (1) an audit of the political subdivision that 11-22 submitted the disputed information; 11-23 (2) payment of the costs of the audit by the party to 11-24 the dispute who does not prevail in the dispute; 11-25 (3) a deadline for filing a dispute for a particular 11-26 year; and 11-27 (4) a reasonable monetary penalty to be applied to a 12-1 subsequent annual distribution made to a political subdivision that 12-2 is found to have overstated unreimbursed health care expenditures 12-3 in the information submitted under Section 12.133. 12-4 (c) The monetary penalty applied under Subsection (b)(4) may 12-5 not exceed 10 percent of the amount of the overstatement of 12-6 unreimbursed health care costs. 12-7 (d) A dispute under this section is a contested case for 12-8 purposes of Chapter 2001, Government Code. 12-9 Sec. 12.135. EFFECT OF DISPUTE. A dispute filed under 12-10 department rules adopted under Section 12.134 does not affect the 12-11 percentage of the annual distribution of the earnings from the 12-12 account to be paid to the political subdivision for the year for 12-13 which the information that is the subject of the dispute was 12-14 submitted. 12-15 Sec. 12.136. ADJUSTMENT FOLLOWING AUDIT. (a) If the board 12-16 finds, after an audit conducted under Section 12.133 or 12.134, 12-17 that a political subdivision has overstated unreimbursed health 12-18 care expenditures in the information submitted under Section 12.133 12-19 for any year, the department shall report that fact to the 12-20 comptroller and shall reduce that political subdivision's 12-21 percentage of the subsequent annual distribution of the earnings 12-22 from the account appropriately. 12-23 (b) If a monetary penalty is applied under Section 12.134, 12-24 the department shall also reduce the political subdivision's 12-25 percentage of the subsequent annual distribution of the earnings 12-26 from the account appropriately. 12-27 (c) If a political subdivision is assessed the cost of an 13-1 audit under Section 12.134, the department shall report the amount 13-2 assessed to the comptroller, and the comptroller may withhold that 13-3 amount from the political subdivision's subsequent annual 13-4 distribution. The comptroller may use the amount withheld to 13-5 reimburse the general revenue fund for the cost of the audit. 13-6 Sec. 12.137. TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT 13-7 ADMINISTRATION ADVISORY COMMITTEE. (a) The tobacco settlement 13-8 permanent trust account administration advisory committee shall 13-9 advise the board on the implementation of the department's duties 13-10 under this subchapter. 13-11 (b) The advisory committee is composed of 11 members 13-12 appointed by the advisory committee as follows: 13-13 (1) one member nominated by the board to represent a 13-14 public hospital or hospital district located in a county with a 13-15 population of 50,000 or less or a public hospital owned or 13-16 maintained by a municipality; 13-17 (2) one member nominated by the political subdivision 13-18 that, in the year preceding the appointment, received the largest 13-19 annual distribution paid from the account; 13-20 (3) one member nominated by the political subdivision 13-21 that, in the year preceding the appointment, received the second 13-22 largest annual distribution paid from the account; 13-23 (4) four members nominated by political subdivisions 13-24 that: 13-25 (A) in the year preceding the appointment, 13-26 received the 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, or 12th 13-27 largest annual distribution paid from the account; and 14-1 (B) do not have a nominee serving on the 14-2 advisory committee at the time of appointment; 14-3 (5) one member nominated by the County Judges and 14-4 Commissioners Association of Texas; 14-5 (6) one member nominated by the North and East Texas 14-6 County Judges and Commissioners Association; 14-7 (7) one member nominated by the South Texas County 14-8 Judges and Commissioners Association; and 14-9 (8) one member nominated by the West Texas County 14-10 Judges and Commissioners Association. 14-11 (c) A commissioners court that sets the tax rate for a 14-12 hospital district must approve any person nominated by the hospital 14-13 district to serve on the advisory committee. 14-14 (d) The advisory committee shall elect the officers of the 14-15 committee from among the members of the committee. 14-16 (e) The advisory committee may act only on the affirmative 14-17 votes of eight members of the committee. 14-18 (f) Members of the advisory committee serve staggered 14-19 six-year terms expiring on August 31 of each odd-numbered year. 14-20 (g) Appointments to the advisory committee shall be made 14-21 without regard to the race, color, disability, sex, religion, age, 14-22 or national origin of the appointees. 14-23 (h) A member of the advisory committee may not receive 14-24 compensation from the trust fund or the state for service on the 14-25 advisory committee and may not be reimbursed from the trust fund or 14-26 the state for travel expenses incurred while conducting the 14-27 business of the advisory committee. 15-1 (i) The department shall provide administrative support and 15-2 resources to the advisory committee as necessary for the advisory 15-3 committee to perform the advisory committee's duties under this 15-4 subchapter. 15-5 (j) Chapter 2110, Government Code, does not apply to the 15-6 advisory committee. 15-7 Sec. 12.138. APPROVAL OF RULES. A rule to be adopted by the 15-8 board relating to certification of a percentage of an annual 15-9 distribution under Section 12.132 or collection of information 15-10 under Sections 12.132, 12.133, and 12.134 must be submitted to the 15-11 advisory committee and may not become effective before the rule is 15-12 approved by the advisory committee. If the advisory committee 15-13 disapproves a proposed rule, the advisory committee shall provide 15-14 the board the specific reasons that the rule was disapproved. 15-15 Sec. 12.139. ANNUAL REVIEW. The advisory committee shall 15-16 annually: 15-17 (1) review the results of any audit conducted under 15-18 this subchapter and the results of any dispute filed under Section 15-19 12.134; and 15-20 (2) review the rules adopted by the board under this 15-21 subchapter and propose any amendments to the rules the advisory 15-22 committee considers necessary. 15-23 SECTION 2.02. (a) Notwithstanding Section 12.137(b), Health 15-24 and Safety Code, as added by this Act, the initial tobacco 15-25 settlement permanent trust account administration advisory 15-26 committee is composed of the following 11 members: 15-27 (1) one member appointed by the Texas Board of Health 16-1 to represent a public hospital or hospital district located in a 16-2 county with a population of 50,000 or less or a public hospital 16-3 owned or maintained by a municipality that is not otherwise 16-4 represented under this subsection, for a term expiring August 31, 16-5 2003; 16-6 (2) one member appointed by the Harris County 16-7 Commissioners Court for a term expiring August 31, 2001; 16-8 (3) one member appointed by the Dallas County 16-9 Commissioners Court for a term expiring August 31, 2001; 16-10 (4) one member appointed by the Tarrant County 16-11 Hospital District for a term expiring August 31, 2005; 16-12 (5) one member appointed by the El Paso County 16-13 Hospital District for a term expiring August 31, 2005; 16-14 (6) one member appointed by the Nueces County 16-15 Commissioners Court for a term expiring August 31, 2005; 16-16 (7) one member appointed by the Montgomery County 16-17 Hospital District for a term expiring August 31, 2005; 16-18 (8) one member appointed by the County Judges and 16-19 Commissioners Association of Texas for a term expiring August 31, 16-20 2001; 16-21 (9) one member appointed by the North and East Texas 16-22 County Judges and Commissioners Association for a term expiring 16-23 August 31, 2003; 16-24 (10) one member appointed by the South Texas County 16-25 Judges and Commissioners Association for a term expiring August 31, 16-26 2003; and 16-27 (11) one member appointed by the West Texas County 17-1 Judges and Commissioners Association for a term expiring August 31, 17-2 2003. 17-3 (b) On the expiration of the term of the member appointed 17-4 under Subsection (a)(1) of this section, the advisory committee 17-5 shall fill the vacancy under Section 12.137(b)(1), Health and 17-6 Safety Code, as added by this Act. 17-7 (c) On the expiration of the term of the member appointed 17-8 under Subsection (a)(2) of this section, the advisory committee 17-9 shall fill the vacancy under Section 12.137(b)(2), Health and 17-10 Safety Code, as added by this Act. 17-11 (d) On the expiration of the term of the member appointed 17-12 under Subsection (a)(3) of this section, the advisory committee 17-13 shall fill the vacancy under Section 12.137(b)(3), Health and 17-14 Safety Code, as added by this Act. 17-15 (e) On the expiration of the term of a member appointed 17-16 under Subsection (a)(4), (5), (6), or (7) of this section, the 17-17 advisory committee shall fill the vacancy under Section 17-18 12.137(b)(4), Health and Safety Code, as added by this Act. 17-19 (f) On the expiration of the term of the member appointed 17-20 under Subsection (a)(8) of this section, the advisory committee 17-21 shall fill the vacancy under Section 12.137(b)(5), Health and 17-22 Safety Code, as added by this Act. 17-23 (g) On the expiration of the term of the member appointed 17-24 under Subsection (a)(9) of this section, the advisory committee 17-25 shall fill the vacancy under Section 12.137(b)(6), Health and 17-26 Safety Code, as added by this Act. 17-27 (h) On the expiration of the term of the member appointed 18-1 under Subsection (a)(10) of this section, the advisory committee 18-2 shall fill the vacancy under Section 12.137(b)(7), Health and 18-3 Safety Code, as added by this Act. 18-4 (i) On the expiration of the term of the member appointed 18-5 under Subsection (a)(11) of this section, the advisory committee 18-6 shall fill the vacancy under Section 12.137(b)(8), Health and 18-7 Safety Code, as added by this Act. 18-8 SECTION 2.03. Not later than the 30th day after the 18-9 effective date of this Act: 18-10 (1) each appointing authority shall make the 18-11 appointment to the tobacco settlement permanent trust account 18-12 administration committee required by Section 2.02(a) of this Act; 18-13 and 18-14 (2) the commissioner of public health shall notify the 18-15 appointees of the time and place of the first meeting of the 18-16 advisory committee. 18-17 SECTION 2.04. (a) In this section: 18-18 (1) "Account" has the meaning assigned by Section 18-19 403.105, Government Code, as added by this Act. 18-20 (2) "Agreement" has the meaning assigned by Section 18-21 403.105, Government Code, as added by this Act. 18-22 (3) "Lump sum trust account" means the lump sum trust 18-23 account established under the agreement. 18-24 (b) The Texas Department of Health may collect information 18-25 under Section 12.133, Health and Safety Code, as added by this Act, 18-26 and may make the certification described by Section 12.132, Health 18-27 and Safety Code, as added by this Act, with respect to the pro rata 19-1 lump sum distributions to be made in 2000 and 2001 under Paragraph 19-2 5.B. of the agreement. 19-3 (c) Subchapter J, Chapter 12, Health and Safety Code, as 19-4 added by this Act, applies to the information to be collected under 19-5 this section in the same manner that it applies to information 19-6 collected with respect to distributions to be made from the 19-7 account. 19-8 (d) To the extent that, in accordance with Section 12.136, 19-9 Health and Safety Code, as added by this Act, the Texas Board of 19-10 Health finds an overstatement of unreimbursed health care 19-11 expenditures in the information collected under this section for 19-12 the pro rata lump sum distribution or if a monetary penalty is 19-13 applied under Section 12.134, Health and Safety Code, the 19-14 applicable percentage of the total distribution to be made to that 19-15 political subdivision in the subsequent year shall be reduced as 19-16 appropriate. 19-17 (e) This section expires December 31, 2002. 19-18 ARTICLE 3. EMERGENCY 19-19 SECTION 3.01. The importance of this legislation and the 19-20 crowded condition of the calendars in both houses create an 19-21 emergency and an imperative public necessity that the 19-22 constitutional rule requiring bills to be read on three several 19-23 days in each house be suspended, and this rule is hereby suspended, 19-24 and that this Act take effect and be in force from and after its 19-25 passage, and it is so enacted.