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 403.1041, 403.1042, and 403.1043 to read
1-7 as follows:
1-8 Sec. 403.1041. TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT.
1-9 (a) In this section and Sections 403.1042 and 403.1043:
1-10 (1) "Account" means the tobacco settlement permanent
1-11 trust account established under the agreement.
1-12 (2) "Advisory committee" means the tobacco settlement
1-13 permanent trust account investment advisory committee.
1-14 (3) "Agreement" means the Agreement Regarding
1-15 Disposition of Settlement Proceeds filed on July 24, 1998, in the
1-16 United States District Court, Eastern District of Texas, in the
1-17 case styled The State of Texas v. The American Tobacco Co., et al.,
1-18 No. 5-96CV-91. The term includes the subsequent Clarification of
1-19 Agreement Regarding Disposition of Settlement Proceeds filed on
1-20 July 24, 1998, in that litigation.
1-21 (4) "Department" means the Texas Department of Health.
1-22 (5) "Political subdivision" means:
1-23 (A) a hospital district;
1-24 (B) another local political subdivision that
2-1 owns or maintains a public hospital; or
2-2 (C) a county of this state responsible for
2-3 providing indigent health care to the general public.
2-4 (b) With the advice of and in consultation with the advisory
2-5 committee, the comptroller shall administer the account and shall
2-6 manage the assets of the account.
2-7 (c) In managing the assets of the account, the comptroller,
2-8 with the advice of and in consultation with the advisory committee,
2-9 may acquire, exchange, sell, supervise, manage, or retain, through
2-10 procedures and subject to restrictions the comptroller establishes
2-11 and in amounts the comptroller considers appropriate, any kind of
2-12 investment that a person of ordinary prudence, discretion, and
2-13 intelligence, exercising the judgment and care under the
2-14 circumstances prevailing at that time, would acquire or retain for
2-15 the person's own account in the management of the person's affairs,
2-16 not in regard to speculation but in regard to the permanent
2-17 disposition of the person's money, considering the probable income
2-18 as well as the probable safety of the capital. Investment and
2-19 management decisions concerning individual investments must be
2-20 evaluated not in isolation but in the context of the investment
2-21 portfolio as a whole and as part of an overall investment strategy
2-22 consistent with the investment objectives of the account.
2-23 (d) The account is a trust account with the comptroller and
2-24 is composed of money paid to the account in accordance with the
2-25 agreement, assets purchased with that money, the earnings of the
2-26 account, and any other contributions made to the account. The
2-27 corpus of the account shall remain in the account and may not be
3-1 distributed for any purpose. The money and other assets contained
3-2 in the account are not a part of the general funds of the state.
3-3 The comptroller may appoint one or more commercial banks,
3-4 depository trust companies, or other entities to serve as a
3-5 custodian of the account's assets. Section 404.071 does not apply
3-6 to the account.
3-7 (e) The comptroller, with the advice of and in consultation
3-8 with the advisory committee, may use the earnings of the account
3-9 for any investment expense, including to obtain the advice of
3-10 appropriate investment consultants for managing the assets in the
3-11 account.
3-12 (f) On certification by the department under Subchapter J,
3-13 Chapter 12, Health and Safety Code, the comptroller shall make an
3-14 annual distribution of the net earnings from the account to each
3-15 eligible political subdivision as provided in the agreement
3-16 regarding disposition of settlement proceeds.
3-17 (g) Before December 1 of each year the comptroller shall
3-18 prepare a written report regarding the account during the fiscal
3-19 year ending on the preceding August 31. Not later than January 1 of
3-20 each year the comptroller shall distribute the report to the
3-21 advisory committee, the governor, the lieutenant governor, the
3-22 state auditor, the attorney general, and the Legislative Budget
3-23 Board. The comptroller shall furnish a copy of the report to any
3-24 member of the legislature or other interested person on request.
3-25 The report must include:
3-26 (1) statements of assets and a schedule of changes in
3-27 book value of the investments from the account;
4-1 (2) a summary of the gains, losses, and income from
4-2 investments on August 31;
4-3 (3) an itemized list of the securities held for the
4-4 account on August 31; and
4-5 (4) any other information needed to clearly indicate
4-6 the nature and extent of the investments made of the account and
4-7 the income realized from the components of the account.
4-8 (h) The comptroller shall adopt rules necessary to implement
4-9 the comptroller's duties under this section, including rules
4-10 distinguishing the net earnings of the account that may be
4-11 distributed under Subsection (f) from earnings used for investment
4-12 expenses under Subsection (e) and from the money and assets that
4-13 are the corpus of the account. A rule adopted by the comptroller
4-14 under this subsection must be submitted to the advisory committee
4-15 and may not become effective before the rule is approved by the
4-16 advisory committee. If the advisory committee disapproves a
4-17 proposed rule, the advisory committee shall provide the comptroller
4-18 the specific reasons that the rule was disapproved.
4-19 Sec. 403.1042. TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT
4-20 INVESTMENT ADVISORY COMMITTEE. (a) The tobacco settlement
4-21 permanent trust account investment advisory committee shall advise
4-22 the comptroller with respect to managing the assets of the tobacco
4-23 settlement permanent trust account. The committee shall provide the
4-24 comptroller guidance with respect to the investment philosophy that
4-25 should be pursued in managing these assets and the extent to which,
4-26 at any particular time, the assets should be managed to maximize
4-27 growth of the corpus or to maximize earnings. Except as provided
5-1 by Section 403.1041(h), the advisory committee serves in an
5-2 advisory capacity only and is not a fiduciary with respect to the
5-3 account.
5-4 (b) The advisory committee is composed of 11 members
5-5 appointed by the advisory committee as follows:
5-6 (1) one member nominated by the comptroller to
5-7 represent a public hospital or hospital district located in a
5-8 county with a population of 50,000 or less or a public hospital
5-9 owned or maintained by a municipality;
5-10 (2) one member nominated by the political subdivision
5-11 that, in the year preceding the appointment, received the largest
5-12 annual distribution paid from the account;
5-13 (3) one member nominated by the political subdivision
5-14 that, in the year preceding the appointment, received the second
5-15 largest annual distribution paid from the account;
5-16 (4) four members nominated by political subdivisions
5-17 that:
5-18 (A) in the year preceding the appointment,
5-19 received the 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, or 12th
5-20 largest annual distribution paid from the account; and
5-21 (B) do not have a nominee serving on the
5-22 advisory committee at the time of appointment;
5-23 (5) one member nominated by the County Judges and
5-24 Commissioners Association of Texas;
5-25 (6) one member nominated by the North and East Texas
5-26 County Judges and Commissioners Association;
5-27 (7) one member nominated by the South Texas County
6-1 Judges and Commissioners Association; and
6-2 (8) one member nominated by the West Texas County
6-3 Judges and Commissioners Association.
6-4 (c) A commissioners court that sets the tax rate for a
6-5 hospital district must approve any person nominated by the hospital
6-6 district to serve on the advisory committee.
6-7 (d) The advisory committee shall elect the officers of the
6-8 committee from among the members of the committee.
6-9 (e) Members of the advisory committee serve staggered
6-10 six-year terms expiring on August 31 of each odd-numbered year.
6-11 (f) An individual or entity authorized to make an
6-12 appointment or nominate someone for appointment to the advisory
6-13 committee created under this section shall attempt to appoint or
6-14 nominate persons who represent the gender composition, minority
6-15 populations, and geographic regions of the state.
6-16 (g) Members of the advisory committee serve without
6-17 compensation from the trust fund or the state and may not be
6-18 reimbursed from the trust fund or the state for travel expenses
6-19 incurred while conducting the business of the advisory committee.
6-20 (h) The comptroller shall provide administrative support and
6-21 resources to the advisory committee as necessary for the advisory
6-22 committee to perform the advisory committee's duties under this
6-23 section and Section 403.1041.
6-24 (i) Chapter 2110 does not apply to the advisory committee.
6-25 Sec. 403.1043. RESTRICTIONS ON LOBBYING EXPENDITURES. (a) A
6-26 political subdivision receiving a distribution under Section
6-27 403.1041(f) may not use the distribution to pay:
7-1 (1) lobbying expenses incurred by the recipient of the
7-2 distribution;
7-3 (2) a person or entity that is required to register
7-4 with the Texas Ethics Commission under Chapter 305, Government
7-5 Code;
7-6 (3) any partner, employee, employer, relative,
7-7 contractor, consultant, or related entity of a person or entity
7-8 described by Subdivision (2); or
7-9 (4) a person or entity who has been hired to represent
7-10 associations or other entities for the purpose of affecting the
7-11 outcome of legislation, agency rules, ordinances, or other
7-12 government policies.
7-13 (b) The persons or entities described by Subsection (a) are
7-14 not eligible to receive the money or participate either directly or
7-15 indirectly in the distributions made under Section 403.1041(f).
7-16 SECTION 1.02. (a) Notwithstanding Section 403.1042(b),
7-17 Government Code, as added by this Act, the initial tobacco
7-18 settlement permanent trust account investment advisory committee is
7-19 composed of the following 11 members:
7-20 (1) one member appointed by the comptroller to
7-21 represent a public hospital or hospital district located in a
7-22 county with a population of 50,000 or less or a public hospital
7-23 owned or maintained by a municipality that is not otherwise
7-24 represented under this subsection, for a term expiring August 31,
7-25 2003;
7-26 (2) one member appointed by the Harris County
7-27 Commissioners Court for a term expiring August 31, 2001;
8-1 (3) one member appointed by the Dallas County
8-2 Commissioners Court for a term expiring August 31, 2001;
8-3 (4) one member appointed by the Tarrant County
8-4 Hospital District for a term expiring August 31, 2005;
8-5 (5) one member appointed by the El Paso County
8-6 Hospital District for a term expiring August 31, 2005;
8-7 (6) one member appointed by the Nueces County
8-8 Commissioners Court for a term expiring August 31, 2005;
8-9 (7) one member appointed by the Montgomery County
8-10 Hospital District for a term expiring August 31, 2005;
8-11 (8) one member appointed by the County Judges and
8-12 Commissioners Association of Texas for a term expiring August 31,
8-13 2001;
8-14 (9) one member appointed by the North and East Texas
8-15 County Judges and Commissioners Association for a term expiring
8-16 August 31, 2003;
8-17 (10) one member appointed by the South Texas County
8-18 Judges and Commissioners Association for a term expiring August 31,
8-19 2003; and
8-20 (11) one member appointed by the West Texas County
8-21 Judges and Commissioners Association for a term expiring August 31,
8-22 2003.
8-23 (b) On the expiration of the term of the member appointed
8-24 under Subsection (a)(1) of this section, the advisory committee
8-25 shall fill the vacancy under Section 403.1042(b)(1), Government
8-26 Code, as added by this Act.
8-27 (c) On the expiration of the term of the member appointed
9-1 under Subsection (a)(2) of this section, the advisory committee
9-2 shall fill the vacancy under Section 403.1042(b)(2), Government
9-3 Code, as added by this Act.
9-4 (d) On the expiration of the term of the member appointed
9-5 under Subsection (a)(3) of this section, the advisory committee
9-6 shall fill the vacancy under Section 403.1042(b)(3), Government
9-7 Code, as added by this Act.
9-8 (e) On the expiration of the term of a member appointed
9-9 under Subsection (a)(4), (5), (6), or (7) of this section, the
9-10 advisory committee shall fill the vacancy under Section
9-11 403.1042(b)(4), Government Code, as added by this Act.
9-12 (f) On the expiration of the term of the member appointed
9-13 under Subsection (a)(8) of this section, the advisory committee
9-14 shall fill the vacancy under Section 403.1042(b)(5), Government
9-15 Code, as added by this Act.
9-16 (g) On the expiration of the term of the member appointed
9-17 under Subsection (a)(9) of this section, the advisory committee
9-18 shall fill the vacancy under Section 403.1042(b)(6), Government
9-19 Code, as added by this Act.
9-20 (h) On the expiration of the term of the member appointed
9-21 under Subsection (a)(10) of this section, the advisory committee
9-22 shall fill the vacancy under Section 403.1042(b)(7), Government
9-23 Code, as added by this Act.
9-24 (i) On the expiration of the term of the member appointed
9-25 under Subsection (a)(11) of this section, the advisory committee
9-26 shall fill the vacancy under Section 403.1042(b)(8), Government
9-27 Code, as added by this Act.
10-1 SECTION 1.03. Not later than the 30th day after the
10-2 effective date of this Act:
10-3 (1) each appointing authority shall make the
10-4 appointment to the tobacco settlement permanent trust account
10-5 investment committee required by Section 1.02(a) of this Act; and
10-6 (2) the comptroller shall notify the appointees of the
10-7 time and place of the first meeting of the advisory committee.
10-8 ARTICLE 2. DUTIES OF THE TEXAS DEPARTMENT OF HEALTH
10-9 SECTION 2.01. Chapter 12, Health and Safety Code, is amended
10-10 by adding Subchapter J to read as follows:
10-11 SUBCHAPTER J. TOBACCO SETTLEMENT PROCEEDS
10-12 Sec. 12.131. DEFINITIONS. In this subchapter:
10-13 (1) "Account" has the meaning assigned by Section
10-14 403.1041, Government Code.
10-15 (2) "Advisory committee" means the tobacco settlement
10-16 permanent trust account administration advisory committee.
10-17 (3) "Agreement" has the meaning assigned by Section
10-18 403.1041, Government Code.
10-19 (4) "Political subdivision" has the meaning assigned
10-20 by Section 403.1041, Government Code.
10-21 Sec. 12.132. CERTIFICATION TO COMPTROLLER. The department
10-22 shall collect information relating to the unreimbursed health care
10-23 expenditures of each political subdivision and, based on that
10-24 information and using the formula established in Paragraph 5.B. of
10-25 the agreement, shall certify to the comptroller the percentage of
10-26 each annual distribution to be paid from the account to each
10-27 political subdivision.
11-1 Sec. 12.133. COLLECTION OF INFORMATION. (a) Each political
11-2 subdivision shall submit to the department, in the manner and at
11-3 the time required by the department, information that relates to
11-4 the political subdivision's unreimbursed health care expenditures
11-5 and is required by the department to make the certification under
11-6 Section 12.132.
11-7 (b) Subject to the approval of the advisory committee, the
11-8 board shall adopt rules governing the collection of information
11-9 under Subsection (a). The rules may provide for regular audits of
11-10 randomly selected political subdivisions and may govern the manner
11-11 in which a political subdivision is selected for an audit and the
11-12 selection of an auditor.
11-13 Sec. 12.134. DISPUTES RELATING TO INFORMATION COLLECTED.
11-14 (a) Subject to the approval of the advisory committee, the board
11-15 shall adopt rules under which a political subdivision or agency of
11-16 this state may dispute information submitted by a political
11-17 subdivision under Section 12.133.
11-18 (b) The rules may provide for:
11-19 (1) an audit of the political subdivision that
11-20 submitted the disputed information;
11-21 (2) payment of the costs of the audit by the party to
11-22 the dispute who does not prevail in the dispute;
11-23 (3) a deadline for filing a dispute for a particular
11-24 year; and
11-25 (4) a reasonable monetary penalty to be applied to a
11-26 subsequent annual distribution made to a political subdivision that
11-27 is found to have overstated unreimbursed health care expenditures
12-1 in the information submitted under Section 12.133.
12-2 (c) The monetary penalty applied under Subsection (b)(4) may
12-3 not exceed 10 percent of the amount of the overstatement of
12-4 unreimbursed health care costs.
12-5 (d) A dispute under this section is a contested case for
12-6 purposes of Chapter 2001, Government Code.
12-7 Sec. 12.135. EFFECT OF DISPUTE. A dispute filed under
12-8 department rules adopted under Section 12.134 does not affect the
12-9 percentage of the annual distribution of the earnings from the
12-10 account to be paid to the political subdivision for the year for
12-11 which the information that is the subject of the dispute was
12-12 submitted.
12-13 Sec. 12.136. ADJUSTMENT FOLLOWING AUDIT. (a) If the board
12-14 finds, after an audit conducted under Section 12.133 or 12.134,
12-15 that a political subdivision has overstated unreimbursed health
12-16 care expenditures in the information submitted under Section 12.133
12-17 for any year, the department shall report that fact to the
12-18 comptroller and shall reduce that political subdivision's
12-19 percentage of the subsequent annual distribution of the earnings
12-20 from the account appropriately.
12-21 (b) If a monetary penalty is applied under Section 12.134,
12-22 the department shall also reduce the political subdivision's
12-23 percentage of the subsequent annual distribution of the earnings
12-24 from the account appropriately.
12-25 (c) If a political subdivision is assessed the cost of an
12-26 audit under Section 12.134, the department shall report the amount
12-27 assessed to the comptroller, and the comptroller may withhold that
13-1 amount from the political subdivision's subsequent annual
13-2 distribution. The comptroller may use the amount withheld to
13-3 reimburse the general revenue fund for the cost of the audit.
13-4 Sec. 12.137. TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT
13-5 ADMINISTRATION ADVISORY COMMITTEE. (a) The tobacco settlement
13-6 permanent trust account administration advisory committee shall
13-7 advise the board on the implementation of the department's duties
13-8 under this subchapter.
13-9 (b) The advisory committee is composed of 11 members
13-10 appointed by the advisory committee as follows:
13-11 (1) one member nominated by the board to represent a
13-12 public hospital or hospital district located in a county with a
13-13 population of 50,000 or less or a public hospital owned or
13-14 maintained by a municipality;
13-15 (2) one member nominated by the political subdivision
13-16 that, in the year preceding the appointment, received the largest
13-17 annual distribution paid from the account;
13-18 (3) one member nominated by the political subdivision
13-19 that, in the year preceding the appointment, received the second
13-20 largest annual distribution paid from the account;
13-21 (4) four members nominated by political subdivisions
13-22 that:
13-23 (A) in the year preceding the appointment,
13-24 received the 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, or 12th
13-25 largest annual distribution paid from the account; and
13-26 (B) do not have a nominee serving on the
13-27 advisory committee at the time of appointment;
14-1 (5) one member nominated by the County Judges and
14-2 Commissioners Association of Texas;
14-3 (6) one member nominated by the North and East Texas
14-4 County Judges and Commissioners Association;
14-5 (7) one member nominated by the South Texas County
14-6 Judges and Commissioners Association; and
14-7 (8) one member nominated by the West Texas County
14-8 Judges and Commissioners Association.
14-9 (c) A commissioners court that sets the tax rate for a
14-10 hospital district must approve any person nominated by the hospital
14-11 district to serve on the advisory committee.
14-12 (d) The advisory committee shall elect the officers of the
14-13 committee from among the members of the committee.
14-14 (e) The advisory committee may act only on the affirmative
14-15 votes of eight members of the committee.
14-16 (f) Members of the advisory committee serve staggered
14-17 six-year terms expiring on August 31 of each odd-numbered year.
14-18 (g) Appointments to the advisory committee shall be made
14-19 without regard to the race, color, disability, sex, religion, age,
14-20 or national origin of the appointees.
14-21 (h) A member of the advisory committee may not receive
14-22 compensation from the trust fund or the state for service on the
14-23 advisory committee and may not be reimbursed from the trust fund or
14-24 the state for travel expenses incurred while conducting the
14-25 business of the advisory committee.
14-26 (i) The department shall provide administrative support and
14-27 resources to the advisory committee as necessary for the advisory
15-1 committee to perform the advisory committee's duties under this
15-2 subchapter.
15-3 (j) Chapter 2110, Government Code, does not apply to the
15-4 advisory committee.
15-5 Sec. 12.138. APPROVAL OF RULES. A rule to be adopted by the
15-6 board relating to certification of a percentage of an annual
15-7 distribution under Section 12.132 or collection of information
15-8 under Sections 12.132, 12.133, and 12.134 must be submitted to the
15-9 advisory committee and may not become effective before the rule is
15-10 approved by the advisory committee. If the advisory committee
15-11 disapproves a proposed rule, the advisory committee shall provide
15-12 the board the specific reasons that the rule was disapproved.
15-13 Sec. 12.139. ANNUAL REVIEW. The advisory committee shall
15-14 annually:
15-15 (1) review the results of any audit conducted under
15-16 this subchapter and the results of any dispute filed under Section
15-17 12.134; and
15-18 (2) review the rules adopted by the board under this
15-19 subchapter and propose any amendments to the rules the advisory
15-20 committee considers necessary.
15-21 SECTION 2.02. (a) Notwithstanding Section 12.137(b), Health
15-22 and Safety Code, as added by this Act, the initial tobacco
15-23 settlement permanent trust account administration advisory
15-24 committee is composed of the following 11 members:
15-25 (1) one member appointed by the Texas Board of Health
15-26 to represent a public hospital or hospital district located in a
15-27 county with a population of 50,000 or less or a public hospital
16-1 owned or maintained by a municipality that is not otherwise
16-2 represented under this subsection, for a term expiring August 31,
16-3 2003;
16-4 (2) one member appointed by the Harris County
16-5 Commissioners Court for a term expiring August 31, 2001;
16-6 (3) one member appointed by the Dallas County
16-7 Commissioners Court for a term expiring August 31, 2001;
16-8 (4) one member appointed by the Tarrant County
16-9 Hospital District for a term expiring August 31, 2005;
16-10 (5) one member appointed by the El Paso County
16-11 Hospital District for a term expiring August 31, 2005;
16-12 (6) one member appointed by the Nueces County
16-13 Commissioners Court for a term expiring August 31, 2005;
16-14 (7) one member appointed by the Montgomery County
16-15 Hospital District for a term expiring August 31, 2005;
16-16 (8) one member appointed by the County Judges and
16-17 Commissioners Association of Texas for a term expiring August 31,
16-18 2001;
16-19 (9) one member appointed by the North and East Texas
16-20 County Judges and Commissioners Association for a term expiring
16-21 August 31, 2003;
16-22 (10) one member appointed by the South Texas County
16-23 Judges and Commissioners Association for a term expiring August 31,
16-24 2003; and
16-25 (11) one member appointed by the West Texas County
16-26 Judges and Commissioners Association for a term expiring August 31,
16-27 2003.
17-1 (b) On the expiration of the term of the member appointed
17-2 under Subsection (a)(1) of this section, the advisory committee
17-3 shall fill the vacancy under Section 12.137(b)(1), Health and
17-4 Safety Code, as added by this Act.
17-5 (c) On the expiration of the term of the member appointed
17-6 under Subsection (a)(2) of this section, the advisory committee
17-7 shall fill the vacancy under Section 12.137(b)(2), Health and
17-8 Safety Code, as added by this Act.
17-9 (d) On the expiration of the term of the member appointed
17-10 under Subsection (a)(3) of this section, the advisory committee
17-11 shall fill the vacancy under Section 12.137(b)(3), Health and
17-12 Safety Code, as added by this Act.
17-13 (e) On the expiration of the term of a member appointed
17-14 under Subsection (a)(4), (5), (6), or (7) of this section, the
17-15 advisory committee shall fill the vacancy under Section
17-16 12.137(b)(4), Health and Safety Code, as added by this Act.
17-17 (f) On the expiration of the term of the member appointed
17-18 under Subsection (a)(8) of this section, the advisory committee
17-19 shall fill the vacancy under Section 12.137(b)(5), Health and
17-20 Safety Code, as added by this Act.
17-21 (g) On the expiration of the term of the member appointed
17-22 under Subsection (a)(9) of this section, the advisory committee
17-23 shall fill the vacancy under Section 12.137(b)(6), Health and
17-24 Safety Code, as added by this Act.
17-25 (h) On the expiration of the term of the member appointed
17-26 under Subsection (a)(10) of this section, the advisory committee
17-27 shall fill the vacancy under Section 12.137(b)(7), Health and
18-1 Safety Code, as added by this Act.
18-2 (i) On the expiration of the term of the member appointed
18-3 under Subsection (a)(11) of this section, the advisory committee
18-4 shall fill the vacancy under Section 12.137(b)(8), Health and
18-5 Safety Code, as added by this Act.
18-6 SECTION 2.03. Not later than the 30th day after the
18-7 effective date of this Act:
18-8 (1) each appointing authority shall make the
18-9 appointment to the tobacco settlement permanent trust account
18-10 administration committee required by Section 2.02(a) of this Act;
18-11 and
18-12 (2) the commissioner of public health shall notify the
18-13 appointees of the time and place of the first meeting of the
18-14 advisory committee.
18-15 SECTION 2.04. (a) In this section:
18-16 (1) "Account" has the meaning assigned by Section
18-17 403.1041, Government Code, as added by this Act.
18-18 (2) "Agreement" has the meaning assigned by Section
18-19 403.1041, Government Code, as added by this Act.
18-20 (3) "Lump sum trust account" means the lump sum trust
18-21 account established under the agreement.
18-22 (b) The Texas Department of Health may collect information
18-23 under Section 12.133, Health and Safety Code, as added by this Act,
18-24 and may make the certification described by Section 12.132, Health
18-25 and Safety Code, as added by this Act, with respect to the pro rata
18-26 lump sum distributions to be made in 2000 and 2001 under Paragraph
18-27 5.B. of the agreement.
19-1 (c) Subchapter J, Chapter 12, Health and Safety Code, as
19-2 added by this Act, applies to the information to be collected under
19-3 this section in the same manner that it applies to information
19-4 collected with respect to distributions to be made from the
19-5 account.
19-6 (d) To the extent that, in accordance with Section 12.136,
19-7 Health and Safety Code, as added by this Act, the Texas Board of
19-8 Health finds an overstatement of unreimbursed health care
19-9 expenditures in the information collected under this section for
19-10 the pro rata lump sum distribution or if a monetary penalty is
19-11 applied under Section 12.134, Health and Safety Code, the
19-12 applicable percentage of the total distribution to be made to that
19-13 political subdivision in the subsequent year shall be reduced as
19-14 appropriate.
19-15 (e) This section expires December 31, 2002.
19-16 ARTICLE 3. EMERGENCY
19-17 SECTION 3.01. The importance of this legislation and the
19-18 crowded condition of the calendars in both houses create an
19-19 emergency and an imperative public necessity that the
19-20 constitutional rule requiring bills to be read on three several
19-21 days in each house be suspended, and this rule is hereby suspended,
19-22 and that this Act take effect and be in force from and after its
19-23 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1161 was passed by the House on April
22, 1999, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1161 on May 27, 1999, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1161 was passed by the Senate, with
amendments, on May 25, 1999, by the following vote: Yeas 30, Nays
0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor