By Junell, Cuellar, Delisi, Cook, Marchant            H.B. No. 1161
         76R1808 DLF-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the duties of the comptroller and the Texas Department
 1-3     of Health with respect to the tobacco settlement permanent trust
 1-4     account.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6                    ARTICLE 1. DUTIES OF THE COMPTROLLER
 1-7           SECTION 1.01.  Subchapter G, Chapter 403, Government Code, is
 1-8     amended by adding Sections 403.105 and 403.106 to read as follows:
 1-9           Sec. 403.105.  TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT.
1-10     (a)  In this section and Section 403.106:
1-11                 (1)  "Account" means the tobacco settlement permanent
1-12     trust account established under the agreement.
1-13                 (2)  "Advisory committee" means the tobacco settlement
1-14     permanent trust account investment advisory committee.
1-15                 (3)  "Agreement" means the Agreement Regarding
1-16     Disposition of Settlement Proceeds filed on July 24, 1998, in the
1-17     United States District Court, Eastern District of Texas, in the
1-18     case styled The State of Texas v. The American Tobacco Co., et al.,
1-19     No. 5-96CV-91.  The term includes the subsequent Clarification of
1-20     Agreement Regarding Disposition of Settlement Proceeds filed on
1-21     July 24, 1998, in that litigation.
1-22                 (4)  "Department" means the Texas Department of Health.
1-23                 (5)  "Political subdivision" means:
1-24                       (A)  a hospital district;
 2-1                       (B)  another local political subdivision that
 2-2     owns or maintains a public hospital; or
 2-3                       (C)  a county of this state responsible for
 2-4     providing indigent health care to the general public.
 2-5           (b)  With the advice of and in consultation with the advisory
 2-6     committee, the comptroller shall administer the account and shall
 2-7     manage the assets of the account.
 2-8           (c)  In managing the assets of the account, the comptroller,
 2-9     with the advice of and in consultation with the advisory committee,
2-10     may acquire, exchange, sell, supervise, manage, or retain, through
2-11     procedures and subject to restrictions the comptroller establishes
2-12     and in amounts the comptroller considers appropriate, any kind of
2-13     investment that a person of ordinary prudence, discretion, and
2-14     intelligence, exercising the judgment and care under the
2-15     circumstances prevailing at that time, would acquire or retain for
2-16     the person's own account in the management of the person's affairs,
2-17     not in regard to speculation but in regard to the permanent
2-18     disposition of the person's money, considering the probable income
2-19     as well as the probable safety of the capital.  Investment and
2-20     management decisions concerning individual investments must be
2-21     evaluated not in isolation but in the context of the investment
2-22     portfolio as a whole and as part of an overall investment strategy
2-23     consistent with the investment objectives of the account.
2-24           (d)  The account is a trust account with the comptroller and
2-25     is composed of money paid to the account in accordance with the
2-26     agreement, assets purchased with that money, the earnings of the
2-27     account, and any other contributions made to the account.  The
 3-1     corpus of the account shall remain in the account and may not be
 3-2     distributed for any purpose.  The money and other assets contained
 3-3     in the account are not a part of the general funds of the state.
 3-4     The comptroller may appoint one or more commercial banks,
 3-5     depository trust companies, or other entities to serve as a
 3-6     custodian of the account's assets.  Section 404.071 does not apply
 3-7     to the account.
 3-8           (e)  The comptroller, with the advice of and in consultation
 3-9     with the advisory committee, may use the earnings of the account
3-10     for any investment expense, including to obtain the advice of
3-11     appropriate investment consultants for managing the assets in the
3-12     account.
3-13           (f)  On certification by the department under Subchapter J,
3-14     Chapter 12, Health and Safety Code, the comptroller shall make an
3-15     annual distribution of the net earnings from the account to each
3-16     eligible political subdivision as provided in the agreement
3-17     regarding disposition of settlement proceeds.
3-18           (g)  Before December 1 of each year the comptroller shall
3-19     prepare a written report regarding the account during the fiscal
3-20     year ending on the preceding August 31. Not later than January 1 of
3-21     each year the comptroller shall distribute the report to the
3-22     advisory committee, the governor, the lieutenant governor, the
3-23     state auditor, the attorney general, and the Legislative Budget
3-24     Board.  The comptroller shall furnish a copy of the report to any
3-25     member of the legislature or other interested person on request.
3-26     The report must include:
3-27                 (1)  statements of assets and a schedule of changes in
 4-1     book value of the investments from the account;
 4-2                 (2)  a summary of the gains, losses, and income from
 4-3     investments on August 31;
 4-4                 (3)  an itemized list of the securities held for the
 4-5     account on August 31; and
 4-6                 (4)  any other information needed to clearly indicate
 4-7     the nature and extent of the investments made of the account and
 4-8     the income realized from the components of the account.
 4-9           (h)  The comptroller shall adopt rules necessary to implement
4-10     the comptroller's duties under this section, including rules
4-11     distinguishing the net earnings of the account that may be
4-12     distributed under Subsection (f) from earnings used for investment
4-13     expenses under Subsection (e) and from the money and assets that
4-14     are the corpus of the account.  A rule adopted by the comptroller
4-15     under this subsection must be submitted to the advisory committee
4-16     and may not become effective before the rule is approved by the
4-17     advisory committee.  If the advisory committee disapproves a
4-18     proposed rule, the advisory committee shall provide the comptroller
4-19     the specific reasons that the rule was disapproved.
4-20           Sec. 403.106.  TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT
4-21     INVESTMENT ADVISORY COMMITTEE.  (a)  The tobacco settlement
4-22     permanent trust account investment advisory committee shall advise
4-23     the comptroller with respect to managing the assets of the tobacco
4-24     settlement permanent trust account. The committee shall provide the
4-25     comptroller guidance with respect to the investment philosophy that
4-26     should be pursued in managing these assets and the extent to which,
4-27     at any particular time, the assets should be managed to maximize
 5-1     growth of the corpus or to maximize earnings.  Except as provided
 5-2     by Section 403.105(h), the advisory committee serves in an advisory
 5-3     capacity only and is not a fiduciary with respect to the 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 a public hospital or
 5-7     hospital district that, in the year preceding the appointment, did
 5-8     not receive one of the 12 largest annual distributions paid from
 5-9     the account;
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)  Appointments to the advisory committee shall be made
6-12     without regard to the race, color, disability, sex, religion, age,
6-13     or national origin of the appointees.
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.  (a)  Notwithstanding Section 403.106(b),
6-24     Government Code, as added by this Act, the initial tobacco
6-25     settlement permanent trust account investment advisory committee is
6-26     composed of the following 11 members:
6-27                 (1)  one member appointed by the comptroller to
 7-1     represent a public hospital or hospital district that is not
 7-2     otherwise represented under this subsection, for a term expiring
 7-3     August 31, 2003;
 7-4                 (2)  one member appointed by the Harris County
 7-5     Commissioners Court for a term expiring August 31, 2001;
 7-6                 (3)  one member appointed by the Dallas County
 7-7     Commissioners Court for a term expiring August 31, 2001;
 7-8                 (4)  one member appointed by the Tarrant County
 7-9     Hospital District for a term expiring August 31, 2005;
7-10                 (5)  one member appointed by the El Paso County
7-11     Hospital District for a term expiring August 31, 2005;
7-12                 (6)  one member appointed by the Nueces County
7-13     Commissioners Court for a term expiring August 31, 2005;
7-14                 (7)  one member appointed by the Montgomery County
7-15     Hospital District for a term expiring August 31, 2005;
7-16                 (8)  one member appointed by the County Judges and
7-17     Commissioners Association of Texas for a term expiring August 31,
7-18     2001;
7-19                 (9)  one member appointed by the North and East Texas
7-20     County Judges and Commissioners Association for a term expiring
7-21     August 31, 2003;
7-22                 (10)  one member appointed by the South Texas County
7-23     Judges and Commissioners Association for a term expiring August 31,
7-24     2003; and
7-25                 (11)  one member appointed by the West Texas County
7-26     Judges and Commissioners Association for a term expiring August 31,
7-27     2003.
 8-1           (b)  On the expiration of the term of the member appointed
 8-2     under Subsection (a)(1) of this section, the advisory committee
 8-3     shall fill the vacancy under Section 403.106(b)(1), Government
 8-4     Code, as added by this Act.
 8-5           (c)  On the expiration of the term of the member appointed
 8-6     under Subsection (a)(2) of this section, the advisory committee
 8-7     shall fill the vacancy under Section 403.106(b)(2), Government
 8-8     Code, as added by this Act.
 8-9           (d)  On the expiration of the term of the member appointed
8-10     under Subsection (a)(3) of this section, the advisory committee
8-11     shall fill the vacancy under Section 403.106(b)(3), Government
8-12     Code, as added by this Act.
8-13           (e)  On the expiration of the term of a member appointed
8-14     under Subsection (a)(4), (5), (6), or (7) of this section, the
8-15     advisory committee shall fill the vacancy under Section
8-16     403.106(b)(4), Government Code, as added by this Act.
8-17           (f)  On the expiration of the term of the member appointed
8-18     under Subsection (a)(8) of this section, the advisory committee
8-19     shall fill the vacancy under Section 403.106(b)(5), Government
8-20     Code, as added by this Act.
8-21           (g)  On the expiration of the term of the member appointed
8-22     under Subsection (a)(9) of this section, the advisory committee
8-23     shall fill the vacancy under Section 403.106(b)(6), Government
8-24     Code, as added by this Act.
8-25           (h)  On the expiration of the term of the member appointed
8-26     under Subsection (a)(10) of this section, the advisory committee
8-27     shall fill the vacancy under Section 403.106(b)(7), Government
 9-1     Code, as added by this Act.
 9-2           (i)  On the expiration of the term of the member appointed
 9-3     under Subsection (a)(11) of this section, the advisory committee
 9-4     shall fill the vacancy under Section 403.106(b)(8), Government
 9-5     Code, as added by this Act.
 9-6           SECTION 1.03.  Not later than the 30th day after the
 9-7     effective date of this Act:
 9-8                 (1)  each appointing authority shall make the
 9-9     appointment to the tobacco settlement permanent trust account
9-10     investment committee required by Section 1.02(a) of this Act; and
9-11                 (2)  the comptroller shall notify the appointees of the
9-12     time and place of the first meeting of the advisory committee.
9-13             ARTICLE 2. DUTIES OF THE TEXAS DEPARTMENT OF HEALTH
9-14           SECTION 2.01.  Chapter 12, Health and Safety Code, is amended
9-15     by adding Subchapter J to read as follows:
9-16                  SUBCHAPTER J. TOBACCO SETTLEMENT PROCEEDS
9-17           Sec. 12.131.  DEFINITIONS.  In this subchapter:
9-18                 (1)  "Account" has the meaning assigned by Section
9-19     403.105, Government Code.
9-20                 (2)  "Advisory committee" means the tobacco settlement
9-21     permanent trust account administration advisory committee.
9-22                 (3)  "Agreement" has the meaning assigned by Section
9-23     403.105, Government Code.
9-24                 (4)  "Political subdivision" has the meaning assigned
9-25     by Section 403.105, Government Code.
9-26           Sec. 12.132.  CERTIFICATION TO COMPTROLLER.  The department
9-27     shall collect information relating to the unreimbursed health care
 10-1    expenditures of each political subdivision and, based on that
 10-2    information and using  the formula established in Paragraph 5.B. of
 10-3    the agreement, shall certify to the comptroller the percentage of
 10-4    each annual distribution to be paid from the account to each
 10-5    political subdivision.
 10-6          Sec. 12.133.  COLLECTION OF INFORMATION.  (a)  Each political
 10-7    subdivision shall submit to the department, in the manner and at
 10-8    the time required by the department, information that relates to
 10-9    the political subdivision's unreimbursed health care expenditures
10-10    and is required by the department to make the certification under
10-11    Section 12.132.
10-12          (b)  Subject to the approval of the advisory committee, the
10-13    board shall adopt rules governing the collection of information
10-14    under Subsection (a).  The rules may provide for regular audits of
10-15    randomly selected political subdivisions and may govern the manner
10-16    in which a political subdivision is selected for an audit and the
10-17    selection of an auditor.
10-18          Sec. 12.134.  DISPUTES RELATING TO INFORMATION COLLECTED.
10-19    (a)  Subject to the approval of the advisory committee, the board
10-20    shall adopt rules under which a political subdivision or agency of
10-21    this state may dispute information submitted by a political
10-22    subdivision under Section 12.133.
10-23          (b)  The rules may provide for:
10-24                (1)  an audit of the political subdivision that
10-25    submitted the disputed information;
10-26                (2)  payment of the costs of the audit by the party to
10-27    the dispute who does not prevail in the dispute;
 11-1                (3)  a deadline for filing a dispute for a particular
 11-2    year; and
 11-3                (4)  a reasonable monetary penalty to be applied to a
 11-4    subsequent annual distribution made to a political subdivision that
 11-5    is found to have overstated unreimbursed health care expenditures
 11-6    in the information submitted under Section 12.133.
 11-7          (c)  The monetary penalty applied under Subsection (b)(4) may
 11-8    not exceed 10 percent of the amount of the overstatement of
 11-9    unreimbursed health care costs.
11-10          (d)  A dispute under this section is a contested case for
11-11    purposes of Chapter 2001, Government Code.
11-12          Sec. 12.135.  EFFECT OF DISPUTE.  A dispute filed under
11-13    department rules adopted under Section 12.134 does not affect the
11-14    percentage of the annual distribution of the earnings from the
11-15    account to be paid to the political subdivision for the year for
11-16    which the information that is the subject of the dispute was
11-17    submitted.
11-18          Sec. 12.136.  ADJUSTMENT FOLLOWING AUDIT.  (a)  If the board
11-19    finds, after an audit conducted under Section 12.133 or 12.134,
11-20    that a political subdivision has overstated unreimbursed health
11-21    care expenditures in the information submitted under Section 12.133
11-22    for any year, the department shall report that fact to the
11-23    comptroller and shall reduce that political subdivision's
11-24    percentage of the subsequent annual distribution of the earnings
11-25    from the account appropriately.
11-26          (b)  If a monetary penalty is applied under Section 12.134,
11-27    the department shall also reduce the political subdivision's
 12-1    percentage of the subsequent annual distribution of the earnings
 12-2    from the account appropriately.
 12-3          (c)  If a political subdivision is assessed the cost of an
 12-4    audit under Section 12.134, the department shall report the amount
 12-5    assessed to the comptroller, and the comptroller may withhold that
 12-6    amount from the political subdivision's subsequent annual
 12-7    distribution.  The comptroller may use the amount withheld to
 12-8    reimburse the general revenue fund for the cost of the audit.
 12-9          Sec. 12.137.  TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT
12-10    ADMINISTRATION ADVISORY COMMITTEE.  (a)  The tobacco settlement
12-11    permanent trust account administration advisory committee shall
12-12    advise the board on the implementation of the department's duties
12-13    under this subchapter.
12-14          (b)  The advisory committee is composed of 11 members
12-15    appointed by the advisory committee as follows:
12-16                (1)  one member nominated by a public hospital or
12-17    hospital district that, in the year preceding the appointment, did
12-18    not receive one of the 12 largest annual distributions paid from
12-19    the account;
12-20                (2)  one member nominated by the political subdivision
12-21    that, in the year preceding the appointment, received the largest
12-22    annual distribution paid from the account;
12-23                (3)  one member nominated by the political subdivision
12-24    that, in the year preceding the appointment, received the second
12-25    largest annual distribution paid from the account;
12-26                (4)  four members nominated by political subdivisions
12-27    that:
 13-1                      (A)  in the year preceding the appointment,
 13-2    received the 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, or 12th
 13-3    largest annual distribution paid from the account; and
 13-4                      (B)  do not have a nominee serving on the
 13-5    advisory committee at the time of appointment;
 13-6                (5)  one member nominated by the County Judges and
 13-7    Commissioners Association of Texas;
 13-8                (6)  one member nominated by the North and East Texas
 13-9    County Judges and Commissioners Association;
13-10                (7)  one member nominated by the South Texas County
13-11    Judges and Commissioners Association; and
13-12                (8)  one member nominated by the West Texas County
13-13    Judges and Commissioners Association.
13-14          (c)  A commissioners court that sets the tax rate for a
13-15    hospital district must approve any person nominated by the hospital
13-16    district to serve on the advisory committee.
13-17          (d)  The advisory committee shall elect the officers of the
13-18    committee from among the members of the committee.
13-19          (e)  The advisory committee may act only on the affirmative
13-20    votes of eight members of the committee.
13-21          (f)  Members of the advisory committee serve staggered
13-22    six-year terms expiring on August 31 of each odd-numbered year.
13-23          (g)  Appointments to the advisory committee shall be made
13-24    without regard to the race, color, disability, sex, religion, age,
13-25    or national origin of the appointees.
13-26          (h)  A member of the advisory committee may not receive
13-27    compensation from the trust fund or the state for service on the
 14-1    advisory committee and may not be reimbursed from the trust fund or
 14-2    the state for travel expenses incurred while conducting the
 14-3    business of the advisory committee.
 14-4          (i)  The department shall provide administrative support and
 14-5    resources to the advisory committee as necessary for the advisory
 14-6    committee to perform the advisory committee's duties under this
 14-7    subchapter.
 14-8          (j)  Chapter 2110, Government Code, does not apply to the
 14-9    advisory committee.
14-10          Sec. 12.138.  APPROVAL OF RULES.  A rule to be adopted by the
14-11    board relating to certification of a percentage of an annual
14-12    distribution under Section 12.132 or collection of information
14-13    under Sections 12.132, 12.133, and 12.134 must be submitted to the
14-14    advisory committee and may not become effective before the rule is
14-15    approved by the advisory committee. If the advisory committee
14-16    disapproves a proposed rule, the advisory committee shall provide
14-17    the board the specific reasons that the rule was disapproved.
14-18          Sec. 12.139.  ANNUAL REVIEW.  The advisory committee shall
14-19    annually:
14-20                (1)  review the results of any audit conducted under
14-21    this subchapter and the results of any dispute filed under Section
14-22    12.134; and
14-23                (2)  review the rules adopted by the board under this
14-24    subchapter and propose any amendments to the rules the advisory
14-25    committee considers necessary.
14-26          SECTION 2.02.  (a)  Notwithstanding Section 12.137(b), Health
14-27    and Safety Code, as added by this Act, the initial tobacco
 15-1    settlement permanent trust account administration advisory
 15-2    committee is composed of the following 11 members:
 15-3                (1)  one member appointed by the Texas Board of Health
 15-4    to represent a public hospital or hospital district that is not
 15-5    otherwise represented under this subsection, for a term expiring
 15-6    August 31, 2003;
 15-7                (2)  one member appointed by the Harris County
 15-8    Commissioners Court for a term expiring August 31, 2001;
 15-9                (3)  one member appointed by the Dallas County
15-10    Commissioners Court for a term expiring August 31, 2001;
15-11                (4)  one member appointed by the Tarrant County
15-12    Hospital District for a term expiring August 31, 2005;
15-13                (5)  one member appointed by the El Paso County
15-14    Hospital District for a term expiring August 31, 2005;
15-15                (6)  one member appointed by the Nueces County
15-16    Commissioners Court for a term expiring August 31, 2005;
15-17                (7)  one member appointed by the Montgomery County
15-18    Hospital District for a term expiring August 31, 2005;
15-19                (8)  one member appointed by the County Judges and
15-20    Commissioners Association of Texas for a term expiring August 31,
15-21    2001;
15-22                (9)  one member appointed by the North and East Texas
15-23    County Judges and Commissioners Association for a term expiring
15-24    August 31, 2003;
15-25                (10)  one member appointed by the South Texas County
15-26    Judges and Commissioners Association for a term expiring August 31,
15-27    2003; and
 16-1                (11)  one member appointed by the West Texas County
 16-2    Judges and Commissioners Association for a term expiring August 31,
 16-3    2003.
 16-4          (b)  On the expiration of the term of the member appointed
 16-5    under Subsection (a)(1) of this section, the advisory committee
 16-6    shall fill the vacancy under Section 12.137(b)(1), Health and
 16-7    Safety Code, as added by this Act.
 16-8          (c)  On the expiration of the term of the member appointed
 16-9    under Subsection (a)(2) of this section, the advisory committee
16-10    shall fill the vacancy under Section 12.137(b)(2), Health and
16-11    Safety Code, as added by this Act.
16-12          (d)  On the expiration of the term of the member appointed
16-13    under Subsection (a)(3) of this section, the advisory committee
16-14    shall fill the vacancy under Section 12.137(b)(3), Health and
16-15    Safety Code, as added by this Act.
16-16          (e)  On the expiration of the term of a member appointed
16-17    under Subsection (a)(4), (5), (6), or (7) of this section, the
16-18    advisory committee shall fill the vacancy under Section
16-19    12.137(b)(4), Health and Safety Code, as added by this Act.
16-20          (f)  On the expiration of the term of the member appointed
16-21    under Subsection (a)(8) of this section, the advisory committee
16-22    shall fill the vacancy under Section 12.137(b)(5), Health and
16-23    Safety Code, as added by this Act.
16-24          (g)  On the expiration of the term of the member appointed
16-25    under Subsection (a)(9) of this section, the advisory committee
16-26    shall fill the vacancy under Section 12.137(b)(6), Health and
16-27    Safety Code, as added by this Act.
 17-1          (h)  On the expiration of the term of the member appointed
 17-2    under Subsection (a)(10) of this section, the advisory committee
 17-3    shall fill the vacancy under Section 12.137(b)(7), Health and
 17-4    Safety Code, as added by this Act.
 17-5          (i)  On the expiration of the term of the member appointed
 17-6    under Subsection (a)(11) of this section, the advisory committee
 17-7    shall fill the vacancy under Section 12.137(b)(8), Health and
 17-8    Safety Code, as added by this Act.
 17-9          SECTION 2.03.  Not later than the 30th day after the
17-10    effective date of this Act:
17-11                (1)  each appointing authority shall make the
17-12    appointment to the tobacco settlement permanent trust account
17-13    administration committee required by Section 2.02(a) of this Act;
17-14    and
17-15                (2)  the commissioner of public health shall notify the
17-16    appointees of the time and place of the first meeting of the
17-17    advisory committee.
17-18          SECTION 2.04.  (a)  In this section:
17-19                (1)  "Account" has the meaning assigned by Section
17-20    403.105, Government Code, as added by this Act.
17-21                (2)  "Agreement" has the meaning assigned by Section
17-22    403.105, Government Code, as added by this Act.
17-23                (3)  "Lump sum trust account" means the lump sum trust
17-24    account established under the agreement.
17-25          (b)  The Texas Department of Health may collect information
17-26    under Section 12.133, Health and Safety Code, as added by this Act,
17-27    and may make the certification described by Section 12.132, Health
 18-1    and Safety Code, as added by this Act, with respect to the pro rata
 18-2    lump sum distributions to be made in 2000 and 2001 under Paragraph
 18-3    5.B. of the agreement.
 18-4          (c)  Subchapter J, Chapter 12, Health and Safety Code, as
 18-5    added by this Act, applies to the information to be collected under
 18-6    this section in the same manner that it applies to information
 18-7    collected with respect to distributions to be made from the
 18-8    account.
 18-9          (d)  To the extent that, in accordance with Section 12.136,
18-10    Health and Safety Code, as added by this Act, the Texas Board of
18-11    Health finds an overstatement of unreimbursed health care
18-12    expenditures in the information collected under this section for
18-13    the pro rata lump sum distribution or if a monetary penalty is
18-14    applied under Section 12.134, Health and Safety Code, the
18-15    applicable percentage of the total distribution to be made to that
18-16    political subdivision in the subsequent year shall be reduced as
18-17    appropriate.
18-18          (e)  This section expires December 31, 2002.
18-19                           ARTICLE 3. EMERGENCY
18-20          SECTION 3.01.  The importance of this legislation and the
18-21    crowded condition of the calendars in both houses create an
18-22    emergency and an imperative public necessity that the
18-23    constitutional rule requiring bills to be read on three several
18-24    days in each house be suspended, and this rule is hereby suspended,
18-25    and that this Act take effect and be in force from and after its
18-26    passage, and it is so enacted.