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.