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.