1-1                                   AN ACT
 1-2     relating to state fiscal matters, including taxes and fees
 1-3     administered by the comptroller; making appropriations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5                      ARTICLE 1.  STATE FISCAL MATTERS
 1-6           SECTION 1.01.  Section 57.48, Education Code, is amended to
 1-7     read as follows:
 1-8           Sec. 57.48.  PAYMENTS BY THE COMPTROLLER [WARRANTS NOT TO BE
 1-9     ISSUED] TO DEFAULTING PERSONS PROHIBITED [PARTIES].  (a)  Except as
1-10     provided by Subsection (g), the [The] corporation shall report to
1-11     the comptroller [of public accounts] the name of any person who is
1-12     in default on a loan guaranteed under this chapter.  The report
1-13     must contain the information and be submitted in the manner and
1-14     with the frequency required by rules of the comptroller.
1-15           (b)  Except as provided by this section, the [The]
1-16     comptroller, as a ministerial duty, [of public accounts] may not
1-17     issue a warrant or initiate an electronic funds transfer to a [any]
1-18     person who has been reported properly under Subsection (a) [by the
1-19     corporation to be in default on a loan guaranteed under this
1-20     chapter].
1-21           (c)  The comptroller may not issue a warrant or initiate an
1-22     electronic funds transfer to the assignee of a person who has been
1-23     reported properly under Subsection (a) [is in default only] if the
1-24     assignment became effective after [before] the person defaulted.
 2-1           (d)  If this section prohibits the comptroller from issuing a
 2-2     warrant or initiating an electronic funds transfer to a person, the
 2-3     comptroller may not issue a warrant or initiate an electronic funds
 2-4     transfer to:
 2-5                 (1)  the person's estate;
 2-6                 (2)  the distributees of the person's estate; or
 2-7                 (3)  the person's surviving spouse.
 2-8           (e)  This [(d)  When this] section does not prohibit
 2-9     [prohibits] the comptroller from issuing a warrant or initiating an
2-10     electronic funds transfer to a person reported properly under
2-11     Subsection (a) or to the assignee of the person if the corporation
2-12     subsequently and properly reports to [,] the comptroller that:
2-13                 (1)  the person is complying with an installment
2-14     payment agreement or similar agreement to eliminate the default,
2-15     unless the corporation subsequently and properly reports to the
2-16     comptroller that the person no longer is complying with the
2-17     agreement;
2-18                 (2)  the default is being eliminated by deductions of
2-19     money from the person's compensation under the garnishment
2-20     provisions of 20 U.S.C. Section 1095a, unless the corporation
2-21     subsequently and properly reports to the comptroller that the
2-22     default is no longer being eliminated by the deductions;
2-23                 (3)  the default has been eliminated; or
2-24                 (4)  the report of default was prohibited by Subsection
2-25     (g) or was otherwise erroneous [is also prohibited from using an
2-26     electronic funds transfer system to pay the person].
2-27           (f) [(e)]  This section does not prohibit the comptroller
 3-1     from issuing a warrant or initiating an electronic funds transfer
 3-2     to pay [the compensation of]:
 3-3                 (1)  the compensation of a state officer or employee;
 3-4     or
 3-5                 (2)  the remuneration of an individual if the
 3-6     remuneration [whose compensation] is being paid by a private person
 3-7     through a state agency.
 3-8           (g)  The corporation may not report a person under Subsection
 3-9     (a) unless the corporation first provides the person with an
3-10     opportunity to exercise any due process or other constitutional or
3-11     statutory protection that must be accommodated before the
3-12     corporation may begin a collection action or procedure.  The
3-13     comptroller may not investigate or determine whether the
3-14     corporation has complied with this prohibition [(f)(1)  This
3-15     subsection applies when a payment is made to a person other than
3-16     through the comptroller's issuance of a warrant or the
3-17     comptroller's use of an electronic funds transfer system.]
3-18                 [(2)  A state agency may not use funds inside or
3-19     outside the state treasury to pay a person if the person is in
3-20     default on a loan guaranteed under this chapter.]
3-21                 [(3)  This subsection does not prohibit a state agency
3-22     from paying the assignee of a person who is in default on a loan
3-23     guaranteed under this chapter if the assignment became effective
3-24     before the person defaulted.]
3-25                 [(4)  This subsection does not prohibit a state agency
3-26     from paying the compensation of:]
3-27                       [(A)  a state officer or employee; or]
 4-1                       [(B)  an individual whose compensation is being
 4-2     paid by a private person through the agency.]
 4-3                 [(5)  The comptroller may not reimburse a state agency
 4-4     for a payment that is made in violation of this subsection].
 4-5           (h)  This section does not prohibit the comptroller from
 4-6     issuing a warrant or initiating an electronic funds transfer if:
 4-7                 (1)  the warrant or transfer would result in a payment
 4-8     being made in whole or in part with money paid to the state by the
 4-9     United States; and
4-10                 (2)  the state agency that administers the money
4-11     certifies to the comptroller that federal law:
4-12                       (A)  requires the payment to be made; or
4-13                       (B)  conditions the state's receipt of the money
4-14     on the payment being made.
4-15           (i)  The comptroller may adopt rules and establish procedures
4-16     to administer this section.
4-17           (j) [(g)]  In this section:
4-18                 (1)  "Compensation" means base salary or [includes]
4-19     wages, [salaries,] longevity pay, hazardous duty pay, benefit
4-20     replacement pay, or an emolument [and emoluments that are] provided
4-21     in lieu of base salary or wages [or salaries].  [The term does not
4-22     include expense reimbursements.]
4-23                 (2)  "State agency" means a board, commission, council,
4-24     committee, department, office, agency, or other governmental entity
4-25     in the executive, legislative, or judicial branch of state
4-26     government.  The term includes an institution of higher education
4-27     as defined by Section 61.003, other than a public junior or
 5-1     community college [Education Code].
 5-2                 (3)  "State officer or employee" means an officer or
 5-3     employee of a state agency.
 5-4           SECTION 1.02.  Subchapter C, Chapter 57, Education Code, is
 5-5     amended by adding Section 57.482 to read as follows:
 5-6           Sec. 57.482.  PAYMENTS BY A STATE AGENCY TO DEFAULTING
 5-7     PERSONS PROHIBITED.  (a)  A state agency, as a ministerial duty,
 5-8     may not use funds inside or outside the state treasury to pay a
 5-9     person or the person's assignee if Section 57.48 prohibits the
5-10     comptroller from issuing a warrant or initiating an electronic
5-11     funds transfer to the person or assignee.
5-12           (b)  A state agency that is prohibited by Subsection (a) from
5-13     making a payment to a person also is prohibited from paying any
5-14     part of that payment to:
5-15                 (1)  the person's estate;
5-16                 (2)  the distributees of the person's estate; or
5-17                 (3)  the person's surviving spouse.
5-18           (c)  The comptroller may not reimburse a state agency for a
5-19     payment that the comptroller determines was made in violation of
5-20     this section.
5-21           (d)  This section applies to a payment only if the
5-22     comptroller is not responsible under Section 404.046, 404.069, or
5-23     2103.003, Government Code, for issuing a warrant or initiating an
5-24     electronic funds transfer to make the payment.
5-25           (e)  In this section, "state agency" has the meaning assigned
5-26     by Section 57.48.
5-27           SECTION 1.03.  Section 62.021(a), Education Code, is amended
 6-1     to read as follows:
 6-2           (a)  Each fiscal year, an eligible institution is entitled to
 6-3     receive an amount allocated in accordance with this section from
 6-4     funds appropriated by Section 17(a), Article VII, Texas [Section
 6-5     17(a), of the] Constitution [of Texas].  The comptroller [of public
 6-6     accounts] shall distribute funds allocated under this subsection
 6-7     only on presentation of a claim and issuance of a warrant in
 6-8     accordance with Section 403.071, Government Code.  The comptroller
 6-9     may not issue a warrant from any funds allocated under this
6-10     subsection before the delivery of goods or services described in
6-11     Section 17, Article VII, Texas Constitution, except for the payment
6-12     of principal or interest on bonds or notes or for a payment for a
6-13     book or other published library material as authorized by Section
6-14     2155.386, Government Code.  The allocation of funds under this
6-15     subsection is made in accordance with an equitable formula
6-16     consisting of the following elements:  space deficit, facilities
6-17     condition, institutional complexity, separate allocations for
6-18     medical units and the Texas State Technical College System, and an
6-19     additional allocation for Texas Southern University for compliance
6-20     with the Texas Desegregation Plan.  The amounts allocated by the
6-21     formula are as follows:
6-22     $ 5,256,817 [$ 5,572,558]  Texas A&M University--Commerce, [East
6-23                                Texas State University] including an
6-24                                allocation of $1,027,070 to Texas A&M
6-25                                University--Texarkana [East Texas State
6-26                                University at Texarkana];
6-27     $ 8,818,023 [$ 9,468,548]  Lamar University, including an
 7-1                                allocation of $743,967 to Lamar
 7-2                                University at Orange and an allocation
 7-3                                of $2,336,605 to Lamar University at
 7-4                                Port Arthur;
 7-5     $ 3,007,669 [$ 2,862,203]  Midwestern State University;
 7-6     $18,021,033 [$20,217,740]  University of North Texas;
 7-7     $ 7,131,692 [$10,174,500]  The University of Texas--Pan American,
 7-8                                including an allocation of $1,050,580 to
 7-9                                [and] The University of Texas at
7-10                                Brownsville;
7-11     $ 6,633,109 [$ 6,468,273]  Stephen F. Austin State University;
7-12     $ 3,640,000                University of North Texas Health Science
7-13                                Center at Fort Worth;
7-14     $26,132,524 [$23,181,556]  Texas State University System
7-15                                Administration and the following
7-16                                component institutions, including an
7-17                                allocation of $3,887,211 to [:] Angelo
7-18                                State University; an allocation of
7-19                                $5,864,608 to Sam Houston State
7-20                                University; an allocation of $14,479,112
7-21                                to Southwest Texas State University; an
7-22                                allocation of $1,635,271 to Sul Ross
7-23                                State University; and an allocation of
7-24                                $266,322 to Sul Ross State
7-25                                University-Rio Grande College [including
7-26                                Uvalde Center];
7-27     $ 7,191,493 [$ 8,199,288]  Texas Southern University (includes
 8-1                                allocation of $1,000,000 for compliance
 8-2                                with Texas Desegregation Plan);
 8-3     $20,961,881 [$16,887,085]  Texas Tech University;
 8-4     $ 7,735,000                Texas Tech University Health Sciences
 8-5                                Center;
 8-6     $ 6,974,897 [$ 6,849,160]  Texas Woman's University;
 8-7     $36,952,989 [$37,726,969]  University of Houston System
 8-8                                Administration and the following
 8-9                                component institutions, including an
8-10                                allocation of $25,986,116 to the[:]
8-11                                University of Houston; an allocation of
8-12                                $1,659,449 to the University of
8-13                                Houston--Victoria; an allocation of
8-14                                $3,853,447 to the University of
8-15                                Houston--Clear Lake; and an allocation
8-16                                of $5,453,977 to the University of
8-17                                Houston--Downtown;
8-18     $12,692,873 [$12,167,120]  The following components of The Texas
8-19                                A&M University System, including an
8-20                                allocation of $3,687,722 to Texas A&M
8-21                                University--Corpus Christi; an
8-22                                allocation of $1,778,155 to Texas A&M
8-23                                International University; an allocation
8-24                                of $3,555,651 to Texas A&M
8-25                                University--Kingsville; and an
8-26                                allocation of $3,671,345 to West Texas
8-27                                A&M University; and
 9-1     $ 3,850,000                Texas State Technical College System
 9-2                                Administration and the following
 9-3                                component campuses, but not its
 9-4                                extension centers or programs: Texas
 9-5                                State Technical College-Amarillo; Texas
 9-6                                State Technical College-Harlingen; Texas
 9-7                                State Technical College-Sweetwater;
 9-8                                Texas State Technical College--Waco.
 9-9           SECTION 1.04.  Section 66.02, Education Code, is amended to
9-10     read as follows:
9-11           Sec. 66.02.  Available University Fund.  Distributions [The
9-12     dividends, interest, and other income] from the permanent
9-13     university fund[, including the net income attributable to the
9-14     surface of permanent university fund land, but excluding
9-15     administrative expenses,] shall constitute the available university
9-16     fund.  All distributions from [interest, dividends, and other
9-17     income accruing and earned from the investments of] the permanent
9-18     university fund shall be deposited in the State Treasury to the
9-19     credit of the available university fund [at least once a month] by
9-20     the board of regents of The University of Texas System or by the
9-21     custodian or custodians of the permanent university fund's
9-22     securities. The University of Texas System shall provide the
9-23     information necessary for the comptroller to accurately account for
9-24     distributions [income] from the permanent university fund and to
9-25     protect state revenues.  The system shall provide the information
9-26     using the method, format, and frequency required by the
9-27     comptroller.
 10-1          SECTION 1.05.  Section 62.022, Education Code, is amended to
 10-2    read as follows:
 10-3          Sec. 62.022.  [ADJUSTMENT OF] ALLOCATION FORMULA.  (a)  Prior
 10-4    to the convening of the regular session of the Texas Legislature
 10-5    immediately preceding each 10-year period for which Section 17(d),
 10-6    Article VII, Texas Constitution, prescribes an allocation of the
 10-7    money appropriated by Section 17(a), Article VII, Texas
 10-8    Constitution, the coordinating board shall conduct, with the full
 10-9    participation of the eligible institutions, a study and present
10-10    recommendations to the Legislative Budget Board and the standing
10-11    committees of the house of representatives and the senate having
10-12    jurisdiction over legislation related to higher education as to the
10-13    allocation of the money appropriated by Section 17(a) for the
10-14    following 10-year allocation period established by Section 17(d).
10-15          (b)  Prior to the convening of the regular session of the
10-16    Texas Legislature immediately preceding the sixth year of each
10-17    10-year allocation period established by Section 17(d),  Article
10-18    VII, Texas Constitution [in 1999], the coordinating board shall
10-19    conduct, with the full participation of the eligible institutions,
10-20    a study and present recommendations to the Legislative Budget Board
10-21    and the [to the Texas House and Texas Senate] standing committees
10-22    of the house of representatives and the senate having cognizance
10-23    over legislation related to higher education as to whether and, if
10-24    so, how, the equitable allocation formula established for that
10-25    10-year period should be adjusted for the last five years of the
10-26    10-year period [five-year period beginning September 1, 2000].  The
10-27    coordinating board shall include in the study a survey of
 11-1    educational and general building quality, if the legislature
 11-2    provides funds for the survey.
 11-3          (c) [(b)]  The legislature shall approve, modify and approve,
 11-4    or reject the recommendations of the coordinating board under
 11-5    Subsection (a) or (b).
 11-6          (d) [(c)]  If, prior to the first day of the sixth year of a
 11-7    10-year allocation period established by Section 17(d), Article
 11-8    VII, Texas Constitution [September 1, 2000], the Texas Legislature
 11-9    fails to act on a recommendation for adjustment in the equitable
11-10    allocation formula, the 10-year allocation provided for in Section
11-11    62.021(a) shall continue until the end of the 10-year period.
11-12          (e) [(d)]  No adjustment shall be made in the allocation
11-13    formula that will prevent payment of both the principal and
11-14    interest on outstanding bonds and notes sold pursuant to Section
11-15    17(e), Article VII, Texas Constitution.
11-16          [(e)  Prior to the convening of the regular session of the
11-17    Texas Legislature in 2005, the coordinating board shall conduct,
11-18    with the full participation of the eligible institutions, a study
11-19    and present recommendations to the Legislative Budget Board and to
11-20    the Texas House and Texas Senate standing committees having
11-21    cognizance over legislation related to higher education as to the
11-22    allocation of the funds appropriated by Section 17(a), Article VII,
11-23    Texas Constitution, for the 10-year period beginning September 1,
11-24    2005.]
11-25          (f)  A review of the allocation formula conducted by the
11-26    coordinating board under this section shall include:
11-27                (1)  a comparison of the deferred maintenance needs of
 12-1    an institution of higher education and the extent to which the
 12-2    constitutionally dedicated funds were used to meet those needs; and
 12-3                (2)  an evaluation of the effectiveness of the
 12-4    allocation formula concerning deferred maintenance needs of those
 12-5    institutions.
 12-6          SECTION 1.06.  Subchapter A, Chapter 66, Education Code, is
 12-7    amended by adding Section 66.09 to read as follows:
 12-8          Sec. 66.09.  COST VALUE OF INVESTMENTS AND OTHER ASSETS OF
 12-9    THE PERMANENT UNIVERSITY FUND.  If substantially all of the assets
12-10    of the permanent university fund are invested in an internal
12-11    investment fund established by the board of regents of The
12-12    University of Texas System, the cost value of the permanent
12-13    university fund's investment in the commingled fund for the purpose
12-14    of Sections 18(a) and (b), Article VII, Texas Constitution, shall
12-15    be calculated by multiplying the permanent university fund's
12-16    ownership percentage in the commingled fund by the commingled
12-17    fund's net asset value at cost as determined by the board of
12-18    regents.  The permanent university fund's ownership percentage of
12-19    the commingled fund shall be determined by dividing the permanent
12-20    university fund's units of participation or shares by the total
12-21    units or shares of the commingled fund.
12-22          SECTION 1.07.  Section 231.007, Family Code, is amended to
12-23    read as follows:
12-24          Sec. 231.007.  DEBTS TO STATE.  (a)  A person obligated to
12-25    pay child support in a case in which the Title IV-D agency is
12-26    providing services under this chapter who does not pay the required
12-27    [child] support is indebted [in debt] to the state for the purposes
 13-1    of Section 403.055, Government Code, if the Title IV-D agency has
 13-2    reported the person to the comptroller under that section properly.
 13-3          (b)  The amount of a person's indebtedness [debt of a person
 13-4    in debt] to the state under [as provided by] Subsection (a) is
 13-5    equal to the sum of:
 13-6                (1)  the amount of the required child support that has
 13-7    [is past due and] not been paid; and
 13-8                (2)  any interest, fees, court costs, or other amounts
 13-9    owed by the person because the person has not paid [as a result of
13-10    the person's failure to pay] the [child] support.
13-11          (c)  The Title IV-D agency is the sole [an] assignee of all
13-12    payments, including payments of compensation, by the state to a
13-13    person indebted [in debt] to the state under Subsection (a) [as
13-14    provided by this section.  The assignment takes effect before the
13-15    date the person's debt to the state arose].
13-16          (d)  On request of the Title IV-D agency:
13-17                (1)  the comptroller shall make payable and deliver to
13-18    the agency any payments for which the agency is the assignee under
13-19    Subsection (c), if the comptroller is responsible for issuing
13-20    warrants or initiating electronic funds transfers to make those
13-21    payments; and
13-22                (2)  a state agency shall make payable and deliver to
13-23    the Title IV-D agency any payments for which the Title IV-D agency
13-24    is the assignee under Subsection (c) if the comptroller is not
13-25    responsible for issuing warrants or initiating electronic funds
13-26    transfers to make those payments.
13-27          (e) [(d)]  A person indebted [in debt] to the state under
 14-1    Subsection (a) [as provided by this section] may eliminate the
 14-2    [person's] debt by:
 14-3                (1)  paying the entire amount of the debt; or
 14-4                (2)  resolving the debt in a manner acceptable to the
 14-5    Title IV-D agency.
 14-6          (f) [(e)]  The comptroller or a state agency may rely on a
 14-7    representation by the Title IV-D agency that:
 14-8                (1)  a person is indebted [in debt] to the state under
 14-9    Subsection (a) [as provided by this section]; or
14-10                (2)  a person who was indebted [in debt] to the state
14-11    under Subsection (a) has eliminated the [person's] debt [as
14-12    provided by this section].
14-13          (g)  Except as provided by Subsection (h) [(f)  In this
14-14    section], the payment of workers' compensation benefits to a person
14-15    indebted [in debt] to the state under Subsection (a) is the same
14-16    for the purposes of this section as any other payment made to the
14-17    person by the state.  Notwithstanding Section 408.203, Labor Code,
14-18    an order or writ to withhold income from workers' compensation
14-19    benefits is not required before the benefits are withheld or
14-20    assigned under this section.
14-21          (h) [(g)]  The amount of weekly workers' compensation
14-22    benefits that may be withheld or assigned under this section may
14-23    not exceed the percentage of the person's benefits that would apply
14-24    if the benefits equalled the person's monthly net resources as
14-25    provided by Chapter 154, except that in no event may more than 50
14-26    percent of the person's weekly compensation benefits be withheld or
14-27    assigned.  The comptroller or a state agency may rely on a
 15-1    representation by the Title IV-D agency that a withholding or
 15-2    assignment under this section would not violate this subsection.
 15-3          (i) [(h)]  Notwithstanding Section 403.055 [Sections
 15-4    403.055(c) and (e)(4)], Government Code, the comptroller may not
 15-5    issue a warrant or initiate an electronic funds transfer to pay:
 15-6                (1)  the compensation of a state officer or employee
 15-7    who is indebted [in debt] to the state under Subsection (a); or
 15-8                (2)  the remuneration of an individual who is being
 15-9    paid by a private person through a state agency, if the individual
15-10    is indebted to the state under Subsection (a) [as provided by this
15-11    section].
15-12          (j)  Notwithstanding Section 2107.008, Government Code, a
15-13    state agency may not pay:
15-14                (1)  compensation to a state officer or employee who is
15-15    indebted to the state under Subsection (a); or
15-16                (2)  remuneration to an individual who is being paid by
15-17    a private person through the agency if the individual is indebted
15-18    to the state under Subsection (a).
15-19          (k) [(i)]  In this section, "compensation," "state agency,"
15-20    and "state officer or employee" have ["compensation" has] the
15-21    meanings [meaning] assigned by Section 403.055[(f)(1)], Government
15-22    Code[, and includes the payment of workers' compensation benefits].
15-23          SECTION 1.08.  Section 26.006, Government Code, is amended by
15-24    amending Subsection (a) and adding Subsection (c) to read as
15-25    follows:
15-26          (a)  A county judge is entitled to an annual salary
15-27    supplement from the state of $10,000 [$5,000] if at least 40
 16-1    percent of the functions that the judge performs are judicial
 16-2    functions.
 16-3          (c)  The commissioners court in a county with a county judge
 16-4    who is entitled to receive a salary supplement under this section
 16-5    may not reduce the county funds provided for the salary or office
 16-6    of the county judge as a result of the salary supplement required
 16-7    by this section.
 16-8          SECTION 1.09.  Subchapter A, Chapter 26, Government Code, is
 16-9    amended by adding Sections 26.007 and 26.008 to read as follows:
16-10          Sec. 26.007.  STATE CONTRIBUTION.  (a)  Beginning on the
16-11    first day of the state fiscal year, the state shall annually
16-12    compensate each county that collects the additional fees and costs
16-13    under Section 51.703 in an amount equal to $5,000 if the county
16-14    judge is entitled to an annual salary supplement from the state
16-15    under Section 26.006.
16-16          (b)  The amount shall be paid to the county's salary fund in
16-17    equal monthly installments from funds appropriated from the
16-18    judicial fund.
16-19          Sec. 26.008.  EXCESS CONTRIBUTIONS.  (a)  At the end of each
16-20    state fiscal year the comptroller shall determine the amounts
16-21    deposited in the judicial fund under Section 51.703 and the amounts
16-22    paid to the counties under Section 26.007. If the total amount paid
16-23    under Section 51.703 by all counties that collect fees and costs
16-24    under that section exceeds the total amount paid to the counties
16-25    under Section 26.007, the state shall remit the excess to the
16-26    counties that collect fees and costs under Section 51.703
16-27    proportionately based on the percentage of the total paid by each
 17-1    county.
 17-2          (b)  The amounts remitted under Subsection (a) shall be paid
 17-3    to the county's general fund to be used only for court-related
 17-4    purposes for the support of the judiciary as provided by Section
 17-5    21.006.
 17-6          SECTION 1.10.  The heading to Section 51.702, Government
 17-7    Code, is amended to read as follows:
 17-8          Sec. 51.702.  ADDITIONAL FEES AND COSTS IN CERTAIN STATUTORY
 17-9    COUNTY COURTS.
17-10          SECTION 1.11.  Subchapter H, Chapter 51, Government Code, is
17-11    amended by adding Section 51.703 to read as follows:
17-12          Sec. 51.703.  ADDITIONAL FEES AND COSTS IN CERTAIN COUNTY
17-13    COURTS.  (a)  In addition to all other fees authorized or required
17-14    by other law, the clerk of a county court with a judge who is
17-15    entitled to an annual salary supplement from the state under
17-16    Section 26.006 shall collect a $40 filing fee in each civil case
17-17    filed in the court to be used for court-related purposes for the
17-18    support of the judiciary.
17-19          (b)  In addition to other court costs, a person shall pay $15
17-20    as a court cost on conviction of any criminal offense in a county
17-21    court, including cases in which probation or deferred adjudication
17-22    is granted.  A conviction that arises under Chapter 521,
17-23    Transportation Code, or a conviction under Subtitle C, Title 7,
17-24    Transportation Code, is included, except that a conviction arising
17-25    under any law that regulates pedestrians or the parking of motor
17-26    vehicles is not included.
17-27          (c)  Court costs and fees due under this section shall be
 18-1    collected in the same manner as other fees, fines, or costs are
 18-2    collected in the case.
 18-3          (d)  The clerk shall send the fees and costs collected under
 18-4    this section to the comptroller at least as frequently as monthly.
 18-5    The comptroller shall deposit the fees in the judicial fund.
 18-6          (e)  Section 51.320 applies to a fee or cost collected under
 18-7    this section.
 18-8          SECTION 1.12.  Section 403.011, Government Code, is amended
 18-9    to read as follows:
18-10          Sec. 403.011.  GENERAL POWERS.  (a)  The comptroller shall:
18-11                (1)  obtain a seal with "Comptroller's Office, State of
18-12    Texas" engraved around the margin and a five-pointed star in the
18-13    center, to be used as the seal of the office to authenticate
18-14    official acts, except warrants drawn on the state treasury;
18-15                (2)  adopt regulations the comptroller considers
18-16    essential to the speedy and proper assessment and collection of
18-17    state revenues;
18-18                (3)  supervise, as the sole accounting officer of the
18-19    state, the state's fiscal concerns and manage those concerns as
18-20    required by law;
18-21                (4)  require all accounts presented to the comptroller
18-22    for settlement not otherwise provided for by law to be made on
18-23    forms that the comptroller prescribes;
18-24                (5)  prescribe and furnish the form or electronic
18-25    format to be used in the collection of public revenue;
18-26                (6)  prescribe the mode and manner of keeping and
18-27    stating of accounts of persons collecting state revenue;
 19-1                (7)  prescribe forms or electronic formats of the same
 19-2    class, kind, and purpose so that they are uniform in size,
 19-3    arrangement, matter, and form;
 19-4                (8)  require each person receiving money or managing or
 19-5    having disposition of state property of which an account is kept in
 19-6    the comptroller's office periodically to render statements of the
 19-7    money or property to the comptroller;
 19-8                (9)  require each person who has received and not
 19-9    accounted for state money to settle the person's account;
19-10                (10)  keep and settle all accounts in which the state
19-11    is interested;
19-12                (11)  examine and settle the account of each person
19-13    indebted to the state, verify the amount or balance, and direct and
19-14    supervise the collection of the money;
19-15                (12)  audit claims against the state the payment of
19-16    which is provided for by law, unless the audit is otherwise
19-17    specially provided for;
19-18                (13)  determine the method for auditing claims against
19-19    the state in a cost-effective manner, including [but not limited
19-20    to] the use of stratified and statistical sampling techniques in
19-21    conjunction with automated edits;
19-22                (14)  maintain the necessary records and data for each
19-23    approved claim against the state so that an adequate audit can be
19-24    performed and the comptroller can submit a report to each house of
19-25    the legislature, upon request, stating the name and amount of each
19-26    approved claim;
19-27                (15)  keep and state each account between the state and
 20-1    the United States;
 20-2                (16)  keep journals through which all entries are made
 20-3    in the ledger;
 20-4                (17)  draw warrants on the treasury for payment of all
 20-5    money required by law to be paid from the treasury on warrants
 20-6    drawn by the comptroller;
 20-7                (18)  suggest plans for the improvement and management
 20-8    of the general revenue; and
 20-9                (19)  preserve the books, records, papers, and other
20-10    property of the comptroller's office and deliver them in good
20-11    condition to the successor to that office.
20-12          (b)  The comptroller may solicit, accept, or refuse a gift or
20-13    grant of money, services, or property on behalf of the state for
20-14    any public purpose related to the office or duties of the
20-15    comptroller.
20-16          SECTION 1.13.  Section 403.023, Government Code, is amended
20-17    to read as follows:
20-18          Sec. 403.023.  CREDIT, CHARGE, AND DEBIT CARDS.  (a)  The
20-19    comptroller may adopt rules relating to the acceptance of credit,
20-20    charge, and debit cards for the payment of fees, taxes, and other
20-21    charges assessed by state agencies.  The rules may:
20-22                (1)  authorize a state agency to accept credit, charge,
20-23    or debit cards for a payment if the comptroller determines the best
20-24    interests of the state would be promoted;
20-25                (2)  authorize or require a person that uses a credit,
20-26    charge, or debit card [user] to pay a processing fee to the state
20-27    agency that accepts the [credit] card for a payment; and
 21-1                (3)  authorize a particular state agency to accept
 21-2    credit, charge, or debit cards for a payment without providing the
 21-3    same authorization to other state agencies.
 21-4          (b)  The comptroller may adopt rules relating to the use of
 21-5    credit or charge cards by state agencies to pay for purchases.  The
 21-6    rules may:
 21-7                (1)  authorize a state agency to use credit or charge
 21-8    cards if the comptroller determines the best interests of the state
 21-9    would be promoted;
21-10                (2)  authorize a state agency to use credit or charge
21-11    cards to pay for purchases without providing the same authorization
21-12    to other state agencies;
21-13                (3)  authorize a state agency to use credit or charge
21-14    cards to pay for purchases that otherwise may be paid out of the
21-15    agency's petty cash accounts under Subchapter K; and
21-16                (4)  authorize the General Services Commission to
21-17    contract with one or more credit or charge card issuers on behalf
21-18    of state agencies.
21-19          (c)  The comptroller may not adopt rules about a particular
21-20    state agency's acceptance of credit or charge cards for a payment
21-21    if the rules [that] would affect a contract that the [state] agency
21-22    has entered into that is in effect on September 1, 1993.  The
21-23    comptroller may not adopt rules about a particular state agency's
21-24    acceptance of charge or debit cards for a payment if the rules
21-25    would affect a contract that the agency has entered into that is in
21-26    effect on September 1, 1999.
21-27          (d)  The comptroller may not adopt rules about a particular
 22-1    state agency's acceptance or use of credit, charge, or debit cards
 22-2    if another law specifically authorizes, requires, prohibits, or
 22-3    otherwise regulates the acceptance or use.
 22-4          (e)  In this section, "state agency" means:
 22-5                (1)  a board, commission, department, or other agency
 22-6    in the executive branch of state government that is created by the
 22-7    constitution or a statute of this state, including an institution
 22-8    of higher education as defined by Section 61.003, Education Code,
 22-9    other than a public junior college;
22-10                (2)  the legislature or a legislative agency; or
22-11                (3)  the supreme court, the court of criminal appeals,
22-12    a court of appeals, or a state judicial agency.
22-13          SECTION 1.14.  Subchapter B, Chapter 403, Government Code, is
22-14    amended by adding Section 403.0271 to read as follows:
22-15          Sec. 403.0271.  AUTHORIZATIONS TO DEBIT STATE ACCOUNTS.  (a)
22-16    The comptroller may authorize a person to debit a state account in
22-17    or outside of the state treasury for the purpose of receiving
22-18    payment for goods or services provided to a state agency.
22-19          (b)  The comptroller may:
22-20                (1)  authorize certain persons to debit an account
22-21    without authorizing others to do so;
22-22                (2)  authorize a debit for goods or services provided
22-23    to certain state agencies without authorizing a debit for goods or
22-24    services provided to other state agencies;
22-25                (3)  authorize a debit for certain types of goods or
22-26    services without authorizing a debit for other types of goods or
22-27    services; and
 23-1                (4)  otherwise limit the circumstances under which a
 23-2    debit is permitted.
 23-3          (c)  Each state agency whose funds are paid through debits
 23-4    authorized under Subsection (a) shall:
 23-5                (1)  reconcile the debits with the actual amount due
 23-6    for goods or services provided; and
 23-7                (2)  recover any amount debited that exceeds the amount
 23-8    due.
 23-9          (d)  The comptroller by rule shall specify the frequency with
23-10    which a reconciliation under Subsection (c)(1) must be conducted by
23-11    a state agency.  The comptroller by rule may require the agency to
23-12    submit the reconciliation to the comptroller for review and
23-13    approval.  The comptroller may audit the agency to ensure the
23-14    accuracy of the reconciliation.
23-15          (e)  The comptroller may adopt rules and establish procedures
23-16    to administer this section.
23-17          (f)  In this section, "state agency" means:
23-18                (1)  a board, commission, department, or other agency
23-19    in the executive branch of state government that is created by the
23-20    constitution or a statute of this state, including an institution
23-21    of higher education as defined by Section 61.003, Education Code,
23-22    other than a public junior or community college;
23-23                (2)  the legislature or a legislative agency; or
23-24                (3)  the supreme court, the court of criminal appeals,
23-25    a court of appeals, or a state judicial agency.
23-26          SECTION 1.15.  Section 403.055, Government Code, is amended
23-27    to read as follows:
 24-1          Sec. 403.055.  PAYMENTS [ISSUANCE] TO DEBTORS OR DELINQUENTS
 24-2    PROHIBITED.  (a)  Except as provided by this section, the [The]
 24-3    comptroller, as a ministerial duty, may not issue a warrant or
 24-4    initiate an electronic funds transfer to a person who has been
 24-5    reported properly under Subsection (f) [if the person is indebted
 24-6    or owes delinquent taxes to the state, or owes delinquent taxes
 24-7    under a tax that the comptroller administers or collects, until the
 24-8    debt or taxes are paid].
 24-9          (b)  The comptroller may not issue a warrant or initiate an
24-10    electronic funds transfer to the assignee of a person who has been
24-11    reported properly under Subsection (f) [is indebted or owes
24-12    delinquent taxes to the state only] if the assignment became
24-13    effective after [before] the person became indebted to the state or
24-14    incurred a tax delinquency [delinquent in the payment of taxes to
24-15    the state].
24-16          (c)  When this section prohibits the comptroller from issuing
24-17    a warrant or initiating an electronic funds transfer to a person,
24-18    the comptroller may not issue a warrant or initiate an electronic
24-19    funds transfer to:
24-20                (1)  the person's estate;
24-21                (2)  the distributees of the person's estate; or
24-22                (3)  the person's surviving spouse.
24-23          (d) [(c)]  This section does not prohibit the comptroller
24-24    from issuing a warrant or initiating an electronic funds transfer
24-25    to pay [the compensation of]:
24-26                (1)  the compensation of a state officer or employee;
24-27    or
 25-1                (2)  the remuneration of an individual if the
 25-2    remuneration [whose compensation] is being paid by a private person
 25-3    through a state agency.
 25-4          (e)  This [(d)  When this] section does not prohibit
 25-5    [prohibits] the comptroller from issuing a warrant or initiating [,
 25-6    the comptroller is also prohibited from using] an electronic funds
 25-7    transfer to a person reported properly under Subsection (f) or to
 25-8    the person's assignee if the state agency responsible for
 25-9    collecting the person's debt or tax delinquency subsequently and
25-10    properly reports to the comptroller that:
25-11                (1)  the person is complying with an installment
25-12    payment agreement or similar agreement to pay or eliminate the debt
25-13    or delinquency, unless the agency subsequently and properly reports
25-14    to the comptroller that the person no longer is complying with the
25-15    agreement;
25-16                (2)  the person's debt or delinquency has been paid or
25-17    otherwise eliminated; or
25-18                (3)  the report of indebtedness or delinquency was
25-19    prohibited by Subsection (g) or was otherwise erroneous [system].
25-20          (f)  Except as provided by Subsection (g), a state agency
25-21    shall report to the comptroller each person who is indebted to the
25-22    state or has a tax delinquency.  The report must contain the
25-23    information and be submitted in the manner and with the frequency
25-24    required by the comptroller.
25-25          (g)  A state agency may not report a person under Subsection
25-26    (f) unless the agency first provides the person with an opportunity
25-27    to exercise any due process or other constitutional or statutory
 26-1    protection that must be accommodated before the agency or the state
 26-2    may begin a collection action or procedure.  The comptroller may
 26-3    not investigate or determine whether a state agency has complied
 26-4    with this prohibition.
 26-5          (h)  This section does not apply:
 26-6                (1)  to the extent Section 57.48, Education Code,
 26-7    applies; or
 26-8                (2)  to the extent this section conflicts with Section
 26-9    231.007, Family Code.
26-10          (i)  This section does not prohibit the comptroller from
26-11    issuing a warrant or initiating an electronic funds transfer if:
26-12                (1)  the warrant or transfer would result in a payment
26-13    being made in whole or in part with money paid to the state by the
26-14    United States; and
26-15                (2)  the state agency that administers the money
26-16    certifies to the comptroller that federal law:
26-17                      (A)  requires the payment to be made; or
26-18                      (B)  conditions the state's receipt of the money
26-19    on the payment being made.
26-20          (j)  The comptroller may adopt rules and establish procedures
26-21    to administer this section.
26-22          (k) [(e)(1)  This subsection applies when a payment is made
26-23    to a person other than through the comptroller's issuance of a
26-24    warrant or the comptroller's use of an electronic funds transfer
26-25    system.]
26-26                [(2)  A state agency may not use funds inside or
26-27    outside the state treasury to pay a person if the person is
 27-1    indebted or owes delinquent taxes to the state or owes delinquent
 27-2    taxes under a tax that the comptroller administers or collects
 27-3    until the debt or taxes are paid.]
 27-4                [(3)  This subsection does not prohibit a state agency
 27-5    from paying the assignee of a person who is indebted or owes
 27-6    delinquent taxes to the state if the assignment became effective
 27-7    before the person became indebted to the state or delinquent in the
 27-8    payment of taxes to the state.]
 27-9                [(4)  This subsection does not prohibit a state agency
27-10    from paying the compensation of:]
27-11                      [(A)  a state officer or employee; or]
27-12                      [(B)  an individual whose compensation is being
27-13    paid by a private person through the agency.]
27-14                [(5)  The comptroller may not reimburse a state agency
27-15    for a payment that is made in violation of this subsection.]
27-16          [(f)]  In this section:
27-17                (1)  "Compensation" means base salary or [includes]
27-18    wages, [salaries,] longevity pay, hazardous duty pay, benefit
27-19    replacement pay, or an emolument [and emoluments that are] provided
27-20    in lieu of base salary or wages [or salaries].  [The term does not
27-21    include expense reimbursements.]
27-22                (2)  "State agency" means a board, commission, council,
27-23    committee, department, office, agency, or other governmental entity
27-24    in the executive, legislative, or judicial branch of state
27-25    government.  The term includes an institution of higher education
27-26    as defined by Section 61.003, Education Code, other than a public
27-27    junior or community college.
 28-1                (3)  "State officer or employee" means an officer or
 28-2    employee of a state agency.
 28-3                (4)  "Tax delinquency" means a delinquency in payment
 28-4    of:
 28-5                      (A)  a tax to the state; or
 28-6                      (B)  a tax that the comptroller administers or
 28-7    collects.
 28-8          [(g)  If a person owes delinquent taxes under a tax that the
 28-9    comptroller administers or collects, the comptroller may subtract
28-10    the delinquent amount from the total amount due the person from the
28-11    state, except from amounts due that are deemed to be current wages,
28-12    and issue a warrant for the difference.  The delinquent person is
28-13    entitled to written notice of at least 20 days before the date of
28-14    the offset.  The notice must conform to the notice requirements
28-15    under Sections 111.018(b)(1) through (3), Tax Code.  The
28-16    comptroller may promulgate rules for the administration of this
28-17    section.]
28-18          SECTION 1.16.  Subchapter D, Chapter 403, Government Code, is
28-19    amended by adding Section 403.0551 to read as follows:
28-20          Sec. 403.0551.  DEDUCTIONS FOR REPAYMENT OF CERTAIN DEBTS OR
28-21    TAX DELINQUENCIES.  (a) Except as provided by Subsections (b) and
28-22    (d), the comptroller may deduct the amount of a person's
28-23    indebtedness to the state or tax delinquency from any amount the
28-24    state owes the person or the person's successor.  The comptroller
28-25    shall issue a warrant or initiate an electronic funds transfer to
28-26    the person or successor for any remaining amount.
28-27          (b)  Subsection (a) applies to a person or the person's
 29-1    successor only if:
 29-2                (1)  the comptroller has provided notice to the person
 29-3    or successor that complies with Subsection (c);
 29-4                (2)  Section 57.48, Education Code, or Section 403.055
 29-5    prohibits the comptroller from issuing a warrant or initiating an
 29-6    electronic funds transfer to the person or successor; and
 29-7                (3)  the comptroller is responsible under Section
 29-8    404.046, 404.069, or 2103.003 for paying the amount owed by the
 29-9    state to the person or successor through the issuance of a warrant
29-10    or initiation of an electronic funds transfer.
29-11          (c)  The comptroller shall provide notice to a person or the
29-12    person's successor before deducting the amount of the person's
29-13    indebtedness to the state or tax delinquency under Subsection (a).
29-14    The notice must:
29-15                (1)  be given in a manner reasonably calculated to give
29-16    actual notice to the person or successor;
29-17                (2)  state the:
29-18                      (A)  amount of the indebtedness or the amount of
29-19    the tax, penalties, interest, and costs due, as applicable; and
29-20                      (B)  name of the indebted or delinquent person;
29-21                (3)  specify the deadline for paying the amount due;
29-22    and
29-23                (4)  inform the person or successor that unless the
29-24    amount due is paid before the deadline, the comptroller will deduct
29-25    the amount of the indebtedness or delinquency from the amount the
29-26    state owes the person or successor.
29-27          (d)  This section does not authorize the comptroller to
 30-1    deduct the amount of a state employee's indebtedness to a state
 30-2    agency from any amount of compensation owed by the agency to the
 30-3    employee, the employee's successor, or the assignee of the employee
 30-4    or successor.  In this subsection, "compensation," "indebtedness,"
 30-5    "state agency," "state employee," and "successor" have the meanings
 30-6    assigned by Section 666.001.
 30-7          (e)  The comptroller shall credit the appropriate fund or
 30-8    account for any amount deducted under this section if the
 30-9    comptroller is the custodian or trustee of that fund or account.
30-10    The comptroller shall remit any amount deducted under this section
30-11    to the custodian or trustee of the appropriate fund or account if
30-12    the comptroller is not its custodian or trustee.
30-13          (f)  The comptroller may determine the order that a person's
30-14    multiple types of indebtedness to the state or tax delinquencies
30-15    are deducted from the amount the state owes the person or the
30-16    person's successor.
30-17          (g)  The assignee of a person or the person's successor is
30-18    considered to be a successor of the person for the purposes of this
30-19    section, except that a deduction under this section from the amount
30-20    owed to the assignee of a person or the person's successor may not
30-21    be made if the assignment became effective before the person became
30-22    indebted to the state or incurred the tax delinquency.
30-23          (h)  The comptroller may adopt rules and establish procedures
30-24    to administer this section.
30-25          (i)  Except as provided by Subsection (d), in this section,
30-26    "successor" means a person's estate and the distributees of that
30-27    estate.
 31-1          SECTION 1.17.  Subchapter D, Chapter 403, Government Code, is
 31-2    amended by adding Section 403.0552 to read as follows:
 31-3          Sec. 403.0552.  PREPARATION AND RETENTION OF CERTAIN
 31-4    WARRANTS.  (a)  The comptroller may prepare and retain a warrant
 31-5    that Section 57.48, Education Code, Section 231.007, Family Code,
 31-6    or Section 403.055 prohibits the comptroller from issuing.
 31-7          (b)  The comptroller may prepare a warrant to make a payment
 31-8    that Section 57.48, Education Code, Section 231.007, Family Code,
 31-9    or Section 403.055 prohibits the comptroller from initiating by
31-10    electronic funds transfer.
31-11          (c)  If the comptroller prepares a warrant under Subsection
31-12    (a) or (b), the comptroller shall:
31-13                (1)  make the warrant payable to the person to whom the
31-14    warrant may not be issued or an electronic funds transfer may not
31-15    be initiated; and
31-16                (2)  retain the warrant until the earliest of:
31-17                      (A)  the first day the warrant may no longer be
31-18    paid by the comptroller under Section 404.046 or other applicable
31-19    law;
31-20                      (B)  the date the comptroller deducts the amount
31-21    of the person's indebtedness to the state or tax delinquency from
31-22    the amount of the warrant under Section 403.0551, Chapter 666, or
31-23    other applicable law; or
31-24                      (C)  the first day the comptroller is no longer
31-25    prohibited from issuing the warrant or initiating an electronic
31-26    funds transfer to that person.
31-27          (d)  The comptroller may not cancel or destroy a warrant
 32-1    prepared under Subsection (a) or (b) unless the comptroller
 32-2    receives a request for the cancellation or destruction from the
 32-3    state agency that submitted the voucher requesting issuance of the
 32-4    warrant or initiation of the electronic funds transfer and:
 32-5                (1)  the agency informs the comptroller that the
 32-6    voucher was erroneous or was submitted erroneously;
 32-7                (2)  the agency is the only state agency responsible
 32-8    for collecting the indebtedness or tax delinquency of the payee of
 32-9    the warrant; or
32-10                (3)  all state agencies that are responsible for
32-11    collecting the indebtedness or tax delinquency of the payee of the
32-12    warrant consent to the cancellation or destruction.
32-13          (e)  For purposes of Subsection (d)(1), a voucher is not
32-14    erroneous and is not submitted erroneously merely because the
32-15    comptroller is prohibited by Section 57.48, Education Code, Section
32-16    231.007, Family Code, or Section 403.055 from issuing a warrant or
32-17    initiating an electronic funds transfer in accordance with the
32-18    voucher.
32-19          SECTION 1.18.  Section 403.060(a), Government Code, is
32-20    amended to read as follows:
32-21          (a)  The comptroller may delegate to a person [state agency]
32-22    the authority to print warrants [at the agency's location] and
32-23    deliver those warrants to the appropriate person.  However, before
32-24    a person [an agency] may print and deliver a warrant, the
32-25    comptroller must approve a voucher related to the warrant in
32-26    accordance with Section 403.071.
32-27          SECTION 1.19.  Section 403.302(b), Government Code, is
 33-1    amended to read as follows:
 33-2          (b)  In conducting the study, the comptroller shall determine
 33-3    the taxable value of property in each school district:
 33-4                (1)  using, if appropriate, samples selected through
 33-5    generally accepted sampling techniques; [and]
 33-6                (2)  according to generally accepted standard
 33-7    valuation, statistical compilation, and analysis techniques; and
 33-8                (3)  ensuring that different levels of appraisal on
 33-9    sold and unsold property do not adversely affect the accuracy of
33-10    the study.
33-11          SECTION 1.20.  Section 404.046, Government Code, is amended
33-12    to read as follows:
33-13          Sec. 404.046.  PAYMENT FROM TREASURY.  The comptroller shall
33-14    pay warrants the comptroller draws on the treasury that are
33-15    authorized by law.  Except as provided by Section 403.0271, money
33-16    [Money] may not be paid out of the treasury except on a warrant
33-17    drawn or an electronic funds transfer initiated by [the warrants
33-18    of] the comptroller.  A [, and a] warrant may not be paid by the
33-19    comptroller unless presented for payment to a financial institution
33-20    or the comptroller before two years after the close of the fiscal
33-21    year in which the warrant was issued.  Claims for the payment of
33-22    warrants presented after that time may be presented to the
33-23    legislature for appropriations from which the claims may be paid.
33-24          SECTION 1.21.  Section 404.069(a), Government Code, is
33-25    amended to read as follows:
33-26          (a)  All money and securities deposited with the comptroller
33-27    in trust for any legal purpose may be received by the comptroller
 34-1    as provided by Section 403.052.  The money or securities shall be
 34-2    held in trust by the comptroller in the same manner as the
 34-3    departmental suspense account.  Except as provided by Section
 34-4    403.0271, the money may be withdrawn only on a [Withdrawal shall be
 34-5    by] warrant drawn or an electronic funds transfer initiated by the
 34-6    comptroller.  The securities may be withdrawn only by [in the case
 34-7    of money and] withdrawal authorization [in the case of securities.
 34-8    Those instruments shall be issued by the comptroller as provided by
 34-9    Sections 403.011 and 403.056].
34-10          SECTION 1.22.  Section 608.002(b), Government Code, is
34-11    amended to read as follows:
34-12          (b)  An authorization must:
34-13                (1)  be in writing or recorded by electronic means; and
34-14                (2)  state:
34-15                      (A)  the period for which the authorization is to
34-16    be in effect; [and]
34-17                      (B)  the amount to be deducted; and
34-18                      (C)  the denomination of the savings bonds to be
34-19    purchased.
34-20          SECTION 1.23.  Section 608.003(b), Government Code, is
34-21    amended to read as follows:
34-22          (b)  If a withholding is made, the department administrator
34-23    or disbursing officer shall make a deduction when the payroll of a
34-24    state department or a political subdivision is presented to the
34-25    comptroller or disbursing officer, as appropriate, [for the
34-26    issuance of warrants] for payment.
34-27          SECTION 1.24.  Section 608.005, Government Code, is amended
 35-1    to read as follows:
 35-2          Sec. 608.005.  PAYMENT [ISSUANCE OF WARRANT] TO DEPARTMENT
 35-3    ADMINISTRATOR OR DISBURSING OFFICER.  (a)  When the payroll of a
 35-4    state department is presented to the comptroller for payment, the
 35-5    comptroller shall pay [issue] to the department administrator [a
 35-6    warrant for] the full amount deducted from the department's payroll
 35-7    for the payroll period to purchase savings bonds on behalf of
 35-8    department officers and employees.
 35-9          (b)  When the payroll of a political subdivision is presented
35-10    to the disbursing officer for payment, the disbursing officer shall
35-11    pay [issue] to the disbursing officer [a warrant for] the full
35-12    amount deducted from the political subdivision's payroll for the
35-13    payroll period to purchase savings bonds on behalf of officers and
35-14    employees of the political subdivision.
35-15          SECTION 1.25.  Section 608.007, Government Code, is amended
35-16    to read as follows:
35-17          Sec. 608.007.  TRUST ACCOUNT.  (a)  A department
35-18    administrator shall deposit money received [a warrant issued] under
35-19    Section 608.005(a) with the comptroller to be held in trust by the
35-20    comptroller until disbursed by the department administrator to
35-21    purchase savings bonds for an individual designated in an
35-22    authorization under Section 608.002 filed with the department
35-23    administrator.
35-24          (b)  A disbursing officer shall deposit money received [a
35-25    warrant issued] under Section 608.005(b) with the comptroller of
35-26    the political subdivision to be held in trust by the comptroller
35-27    until disbursed by the disbursing officer to purchase savings bonds
 36-1    for an individual designated in an authorization under Section
 36-2    608.002 filed with the disbursing officer.
 36-3          (c)  Money [A warrant] held in trust under this section shall
 36-4    be deposited in an account designated as the savings bond payroll
 36-5    savings account.  [The comptroller shall pay out money deposited in
 36-6    the account on proper warrants drawn by the department
 36-7    administrator or disbursing officer, as appropriate.]
 36-8          SECTION 1.26.  Section 608.010(b), Government Code, is
 36-9    amended to read as follows:
36-10          (b)  On termination as provided by Subsection (a), any money
36-11    that has been deducted from an officer's or employee's compensation
36-12    but has not been used to purchase savings bonds shall be remitted
36-13    immediately [by proper warrant] to the individual from whose
36-14    compensation the money has been deducted.
36-15          SECTION 1.27.  Subtitle B, Title 6, Government Code, is
36-16    amended by adding Chapter 666 to read as follows:
36-17             CHAPTER 666.  PAYROLL DEDUCTION TO RECOUP EXCESS
36-18             COMPENSATION PAID TO A STATE OFFICER OR EMPLOYEE
36-19          Sec. 666.001.  DEFINITIONS.  In this chapter:
36-20                (1)  "Compensation" includes:
36-21                      (A)  base salary or wages;
36-22                      (B)  longevity or hazardous duty pay;
36-23                      (C)  benefit replacement pay;
36-24                      (D)  a payment for the balance of vacation and
36-25    sick leave under Subchapter B, Chapter 661;
36-26                      (E)  a payment for the accrued balance of
36-27    vacation time under Subchapter C, Chapter 661; and
 37-1                      (F)  an emolument provided in lieu of base salary
 37-2    or wages.
 37-3                (2)  "Indebtedness" means the amount of compensation
 37-4    paid to a state employee that exceeds the amount the employee is
 37-5    eligible to receive under law.
 37-6                (3)  "State agency" means a board, commission, council,
 37-7    committee, department, office, agency, or other governmental entity
 37-8    in the executive, legislative, or judicial branch of state
 37-9    government.  The term includes:
37-10                      (A)  the Texas Guaranteed Student Loan
37-11    Corporation; and
37-12                      (B)  an institution of higher education as
37-13    defined by Section 61.003, Education Code, other than a public
37-14    junior or community college.
37-15                (4)  "State employee" means an officer or employee of a
37-16    state agency.
37-17                (5)  "Successor" means:
37-18                      (A)  the estate of a deceased state employee;
37-19                      (B)  the surviving spouse of a deceased state
37-20    employee; or
37-21                      (C)  the distributees of the estate of a deceased
37-22    state employee.
37-23          Sec. 666.002.  DEDUCTION AUTHORIZATION.  (a)  A state agency
37-24    may deduct the amount of a state employee's indebtedness to the
37-25    agency from any amount of compensation the agency owes the employee
37-26    or the employee's successor if:
37-27                (1)  the agency provides a notice to the employee or
 38-1    successor that complies with Section 666.003;
 38-2                (2)  the agency provides the employee or successor with
 38-3    an opportunity to exercise any due process or other constitutional
 38-4    or statutory protection that must be accommodated before the agency
 38-5    may begin a collection action or procedure;
 38-6                (3)  the agency determines that the deduction would not
 38-7    violate any applicable law or rule of this state or the United
 38-8    States; and
 38-9                (4)  the comptroller is not responsible under Section
38-10    404.046, 404.069, or 2103.003 for paying the amount owed by the
38-11    agency to the employee or successor through the issuance of a
38-12    warrant or initiation of an electronic funds transfer.
38-13          (b)  The comptroller may deduct the amount of a state
38-14    employee's indebtedness to a state agency from any amount of
38-15    compensation the agency owes the employee or the employee's
38-16    successor if:
38-17                (1)  the agency provides a notice to the employee or
38-18    successor that complies with Section 666.003;
38-19                (2)  the agency requests the comptroller to make the
38-20    deduction in accordance with Section 666.005; and
38-21                (3)  the comptroller is responsible under Section
38-22    404.046, 404.069, or 2103.003 for paying the amount owed by the
38-23    agency to the employee or the successor through the issuance of a
38-24    warrant or initiation of an electronic funds transfer.
38-25          Sec. 666.003.  NOTICE.  (a)  A state agency shall provide
38-26    notice to a state employee or the employee's successor before the
38-27    agency:
 39-1                (1)  deducts the amount of the employee's indebtedness
 39-2    to the agency under Section 666.002(a); or
 39-3                (2)  requests the comptroller to make a deduction under
 39-4    Section 666.002(b).
 39-5          (b)  The notice must:
 39-6                (1)  be given in a manner reasonably calculated to give
 39-7    actual notice to the employee or successor;
 39-8                (2)  state the:
 39-9                      (A)  amount of the indebtedness; and
39-10                      (B)  name of the indebted employee;
39-11                (3)  specify the date by which the indebtedness must be
39-12    paid; and
39-13                (4)  inform the employee or successor that unless the
39-14    indebtedness is paid on or before the date specified, the amount of
39-15    the indebtedness may be deducted from any amount of compensation
39-16    the agency owes the employee or successor.
39-17          Sec. 666.004.  PAYMENT OF AMOUNT REMAINING.  Any amount that
39-18    remains owed after a deduction under Section 666.002 shall be paid
39-19    to the state employee or successor.
39-20          Sec. 666.005.  DEDUCTION REQUESTS TO THE COMPTROLLER.  (a)  A
39-21    state agency may not request the comptroller to make a deduction
39-22    from compensation owed to a state employee or  successor under
39-23    Section 666.002(b) before the agency:
39-24                (1)  provides the employee or successor the opportunity
39-25    to exercise any due process or other constitutional or statutory
39-26    protection that must be accommodated before a collection action or
39-27    procedure may begin; and
 40-1                (2)  determines that the deduction would not violate
 40-2    any applicable law or rule of this state or the United States.
 40-3          (b)  The comptroller may not investigate or determine whether
 40-4    the agency has complied with Subsection (a)(1).  The comptroller
 40-5    may rely on a determination made under Subsection (a)(2).
 40-6          (c)  A state agency's request to the comptroller to make a
 40-7    deduction under Section 666.002(b) must comply with the
 40-8    comptroller's requirements for format, content, and frequency.
 40-9          Sec. 666.006.  ASSIGNEES.  The assignee of a state employee
40-10    or the employee's successor is considered to be a successor for the
40-11    purposes of this chapter, except that a  deduction under this
40-12    chapter from the compensation owed to the assignee of a state
40-13    employee or the employee's successor may not be made if the
40-14    assignment became effective after the employee incurred the
40-15    indebtedness.
40-16          Sec. 666.007.  ADMINISTRATION.  The comptroller may adopt
40-17    rules and establish procedures to administer this chapter.
40-18          SECTION 1.28.  Section 2103.003, Government Code, is amended
40-19    to read as follows:
40-20          Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS.
40-21    A state agency may spend appropriated funds only by:
40-22                (1)  a warrant drawn by:
40-23                      (A)  the comptroller; or
40-24                      (B)  a person that [state agency to which] the
40-25    comptroller has delegated authority to print warrants under Section
40-26    403.060; [or]
40-27                (2)  an electronic funds transfer initiated by the
 41-1    comptroller; or
 41-2                (3)  a debit to a state account by a person authorized
 41-3    under Section 403.0271.
 41-4          SECTION 1.29.  Chapter 2107, Government Code, is amended by
 41-5    adding Section 2107.008 to read as follows:
 41-6          Sec. 2107.008.  PAYMENTS TO DEBTORS OR DELINQUENTS
 41-7    PROHIBITED.  (a)  Except as provided by this section, a state
 41-8    agency, as a ministerial duty, may not use funds in or outside of
 41-9    the state treasury to pay a person if:
41-10                (1)  Section 403.055 prohibits the comptroller from
41-11    issuing a warrant or initiating an electronic funds transfer to the
41-12    person; or
41-13                (2)  the person is indebted to the state or has a tax
41-14    delinquency, the agency is responsible for collecting that
41-15    indebtedness or delinquency, and Section 403.055 does not prohibit
41-16    the comptroller from issuing a warrant or initiating an electronic
41-17    funds transfer to the person.
41-18          (b)  A state agency may not pay the assignee of a person that
41-19    the agency may not pay under Subsection (a)(1) if Section 403.055
41-20    prohibits the comptroller from issuing a warrant or initiating an
41-21    electronic funds transfer to the assignee.  The agency may not pay
41-22    the assignee of a person that the agency may not pay under
41-23    Subsection (a)(2) if the assignment became effective after the
41-24    person became indebted to the state or incurred a tax delinquency.
41-25          (c)  A state agency that Subsection (a) prohibits from making
41-26    a payment to a person also is prohibited from paying any part of
41-27    that payment to:
 42-1                (1)  the person's estate;
 42-2                (2)  the distributees of the person's estate; or
 42-3                (3)  the person's surviving spouse.
 42-4          (d)  This section does not prohibit a state agency from
 42-5    paying a person subject to Subsection (a)(2) or the person's
 42-6    assignee if the agency determines that the person is complying with
 42-7    an installment payment agreement or similar agreement between the
 42-8    agency and that person to pay or eliminate the debt or delinquency.
 42-9          (e)  The comptroller may not reimburse a state agency for a
42-10    payment that the comptroller determines was made in violation of
42-11    this section.
42-12          (f)  Subsection (a)(2) does not prohibit a state agency from
42-13    paying:
42-14                (1)  the compensation of a state officer or employee;
42-15    or
42-16                (2)  the remuneration of an individual if the
42-17    remuneration is being paid by a private person through the agency.
42-18          (g)  Subsection (a)(2) does not prohibit a state agency from
42-19    making a payment if:
42-20                (1)  the payment would be made in whole or in part with
42-21    money paid to the state by the United States; and
42-22                (2)  the agency determines that federal law:
42-23                      (A)  requires the payment to be made; or
42-24                      (B)  conditions the state's receipt of the money
42-25    on the payment being made.
42-26          (h)  A state agency may not refuse to make a payment under
42-27    Subsection (a)(2) before the agency has provided the person with an
 43-1    opportunity to exercise any due process or other constitutional or
 43-2    statutory protection that must be accommodated before the agency or
 43-3    the state may begin a collection action or procedure.
 43-4          (i)  This section does not apply to the extent that Section
 43-5    57.482, Education Code, applies.
 43-6          (j)  This section applies to a payment only if the
 43-7    comptroller is not responsible under Section 404.046, 404.069, or
 43-8    2103.003 for issuing a warrant or initiating an electronic funds
 43-9    transfer to make the payment.
43-10          (k)  Notwithstanding Section 2107.001, in this section
43-11    "compensation," "state agency," "state officer or employee," and
43-12    "tax delinquency" have the meanings assigned by Section 403.055.
43-13          SECTION 1.30.  Section 2254.030, Government Code, is amended
43-14    to read as follows:
43-15          Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER ENTERING
43-16    INTO MAJOR CONSULTING SERVICES CONTRACT.  Not later than the 20th
43-17    [10th] day after the date of entering into a major consulting
43-18    services contract, the contracting state agency shall file with the
43-19    secretary of state for publication in the Texas Register:
43-20                (1)  a description of the activities that the
43-21    consultant will conduct;
43-22                (2)  the name and business address of the consultant;
43-23                (3)  the total value and the beginning and ending dates
43-24    of the contract; and
43-25                (4)  the dates on which documents, films, recordings,
43-26    or reports that the consultant is required to present to the agency
43-27    are due.
 44-1          SECTION 1.31.  Sections 2254.031(a) and (c), Government Code,
 44-2    are amended to read as follows:
 44-3          (a)  A state agency that intends to renew a major consulting
 44-4    services contract shall:
 44-5                (1)  file with the secretary of state for publication
 44-6    in the Texas Register the information required by Section 2254.030
 44-7    not later than the 20th [10th] day after the date the contract is
 44-8    renewed if the renewal contract is not a major consulting services
 44-9    contract; or
44-10                (2)  comply with Sections 2254.028 and 2254.029 if the
44-11    renewal contract is a major consulting services contract.
44-12          (c)  A state agency that intends to amend or extend a major
44-13    consulting services contract shall:
44-14                (1)  not later than the 20th [10th] day after the date
44-15    the contract is amended or extended, file the information required
44-16    by Section 2254.030 with the secretary of state for publication in
44-17    the Texas Register if the contract after the amendment or extension
44-18    is not a major consulting services contract; or
44-19                (2)  comply with Sections 2254.028 and 2254.029 if the
44-20    contract after the amendment or extension is a major consulting
44-21    services contract.
44-22          SECTION 1.32.  Section 2254.034(c), Government Code, is
44-23    amended to read as follows:
44-24          (c)  If a contract is void under this section:
44-25                (1)  the comptroller may not draw a warrant or transmit
44-26    money to satisfy an obligation under the contract; and
44-27                (2)  a state agency may not make any payment under the
 45-1    contract with state or federal money or money held in or outside
 45-2    the state treasury [until the agency has complied with Sections
 45-3    2254.029 through 2254.031].
 45-4          SECTION 1.33.  Section 31.038, Human Resources Code, is
 45-5    amended to read as follows:
 45-6          Sec. 31.038.  CANCELLATION OF UNCASHED WARRANTS.  The [On
 45-7    authorization by the] department[, the comptroller] may cancel a
 45-8    financial assistance warrant [warrants] that has [have] not been
 45-9    cashed within a reasonable period of time after issuance.  The
45-10    cancellation must be performed in the manner required by rules of
45-11    the comptroller.
45-12          ARTICLE 2.  TECHNICAL CHANGES REGARDING TAXES AND FEES
45-13          SECTION 2.01.  Subsection (g), Article 102.075, Code of
45-14    Criminal Procedure, is amended to read as follows:
45-15          (g)  A municipality or county may retain 10 percent of the
45-16    money collected under this article as a service fee for the
45-17    collection if the municipality or county remits the funds to the
45-18    comptroller within the  period prescribed in Subsection (f).  The
45-19    municipality or county may retain any interest accrued on the money
45-20    if the custodian of the money deposited in the treasury keeps
45-21    records of the amount of money collected under this article that is
45-22    on deposit in the treasury and remits the funds to the comptroller
45-23    within the period prescribed in Subsection (f).
45-24          SECTION 2.02.  Section 403.014(b), Government Code, is
45-25    amended to read as follows:
45-26          (b)  The report must include:
45-27                (1)  an analysis of each special provision that reduces
 46-1    the amount of tax payable, to include an estimate of the loss of
 46-2    revenue for a six-year period including the current fiscal biennium
 46-3    and a citation of the statutory or legal authority for the
 46-4    provision; and
 46-5                (2)  for provisions reducing revenue by more than one
 46-6    percent of total revenue for a tax covered by this section:
 46-7                      (A)  [,] the effect of each provision on the
 46-8    distribution of the tax burden by income class and industry or
 46-9    business class, as appropriate; and
46-10                      (B)  the effect of each provision on total income
46-11    by income class.
46-12          SECTION 2.03.  Section 403.0141(c), Government Code, is
46-13    amended to read as follows:
46-14          (c)  To the extent data is available, the incidence impact
46-15    analysis under Subsections (a) and (b):
46-16                (1)  shall evaluate the tax burden:
46-17                      (A)  on the overall income distribution, using a
46-18    systemwide incidence measure or other appropriate measures of
46-19    equality and inequality; and
46-20                      (B)  on income classes, including, at a minimum,
46-21    quintiles of the income distribution, on renters and homeowners, on
46-22    industry or business classes, as appropriate, and on various types
46-23    of business organizations;
46-24                (2)  may evaluate the tax burden:
46-25                      (A)  by other appropriate taxpayer
46-26    characteristics, such as whether the taxpayer is a farmer, rancher,
46-27    retired elderly, or resident or nonresident of the state; and
 47-1                      (B)  by distribution of impact on consumers,
 47-2    labor, capital, and out-of-state persons and entities; [and]
 47-3                (3)  shall evaluate the effect of each tax on total
 47-4    income by income group; and
 47-5                (4)  shall:
 47-6                      (A)  use the broadest measure of economic income
 47-7    for which reliable data is available; and
 47-8                      (B)  include a statement of the incidence
 47-9    assumptions that were used in making the analysis.
47-10          SECTION 2.04.  Section 12(b), Article 1.14-1, Insurance Code,
47-11    is amended to read as follows:
47-12          (b)  The report shall be filed and any tax due shall be paid
47-13    by the insured or by any other person designated by the insured.
47-14    The report and tax are due on or before May 15 [March 1] of the
47-15    calendar year after the calendar year in which the insurance was
47-16    procured, continued, or renewed or on another date prescribed by
47-17    the comptroller.
47-18          SECTION 2.05.  Sections 12(a) and (b), Article 1.14-2,
47-19    Insurance Code, are amended to read as follows:
47-20          (a)  The premiums charged for surplus lines insurance are
47-21    subject to a premium receipts tax of 4.85 percent of gross premiums
47-22    charged for such insurance.  The term premium includes all
47-23    premiums, membership fees, assessments, dues or any other
47-24    consideration for insurance.  Such tax shall be in lieu of all
47-25    other insurance taxes.  The surplus lines agent shall collect from
47-26    the insured the amount of the tax at the time of delivery of the
47-27    cover note, certificate of insurance, policy or other initial
 48-1    confirmation of insurance, in addition to the full amount of the
 48-2    gross premium charged by the insurer for the insurance.  No agent
 48-3    shall absorb such tax nor shall any agent, as an inducement for
 48-4    insurance or for any other reason, rebate all or any part of such
 48-5    tax or his commission.  The surplus lines agent shall file a report
 48-6    and pay taxes to the comptroller on or before March 1 of each year
 48-7    on forms prescribed by the comptroller.  The [the] amount of taxes
 48-8    shall be based on gross premiums written or received for such
 48-9    insurance placed through an eligible surplus lines insurer during
48-10    the calendar year ending on the preceding December 31.  A tax
48-11    prepayment shall be required any time accrued taxes due equal or
48-12    exceed $70,000.  The prepayment of the accrued taxes, with a form
48-13    prescribed by the comptroller, shall be due by the 15th day of the
48-14    month following the month in which accrued taxes total $70,000 [and
48-15    shall pay to the comptroller the tax as provided for by this
48-16    Article].  If a surplus lines policy covers risks or exposures only
48-17    partially in this state, the tax payable shall be computed on the
48-18    portions of the premium which are properly allocated to the risks
48-19    or exposures located in this state.  In determining the amount of
48-20    premiums taxable in this state, all premiums written, procured, or
48-21    received in this state and all premiums on policies negotiated in
48-22    this state shall be deemed written on property or risks located or
48-23    resident in this state, except such premiums as are properly
48-24    allocated or apportioned and reported as premiums which may be
48-25    subject to taxation by any other state or states.  Premiums that
48-26    are properly allocated to any other state or states that are
48-27    specifically exempt from taxation under the regulations of that
 49-1    state or states are not taxable in this state.  Premiums on risks
 49-2    or exposures which are properly allocated to federal waters,
 49-3    international waters or under the jurisdiction of a foreign
 49-4    government shall not be taxable by this state.  In event of
 49-5    cancellation and rewriting of any surplus lines insurance contract
 49-6    the additional premium for premium receipts tax purposes shall be
 49-7    the premium in excess of the unearned premium of the canceled
 49-8    insurance contract.
 49-9          (b)  All surplus lines premium receipt taxes collected by a
49-10    surplus lines agent are trust funds in his hands [and the property
49-11    of this state.  Such funds shall be maintained by the surplus lines
49-12    agent in a separate account and shall not be mingled with any other
49-13    funds, either business or private].  Any surplus lines agent who
49-14    fails or refuses to pay over to the state the surplus lines premium
49-15    receipts tax at the time required by [in] this section, or who
49-16    fraudulently withholds or appropriates or otherwise uses such money
49-17    or any portions thereof belonging to the state is guilty of theft
49-18    and shall be punished as provided by law for the crime of theft,
49-19    irrespective of whether any such surplus lines agent has or claims
49-20    to have any interest in such money so received by him.
49-21          SECTION 2.06.  Section 9(b), Texas State College and
49-22    University Employees Uniform Insurance Benefits Act (Article
49-23    3.50-3, Vernon's Texas Insurance Code), is amended to read as
49-24    follows:
49-25          (b)  Premiums on policies, insurance contracts, or agreements
49-26    with health maintenance organizations established under this Act
49-27    are not subject to any state tax, regulatory fee, or surcharge,
 50-1    including premium or maintenance taxes or fees.
 50-2          SECTION 2.07.  Section 11(b), Texas Public School Employees
 50-3    Group Insurance Act (Article 3.50-4, Insurance Code), is amended to
 50-4    read as follows:
 50-5          (b)  A premium or contribution on a policy, insurance
 50-6    contract, or agreement authorized as provided by this article is
 50-7    not subject to any state tax, regulatory fee, or surcharge,
 50-8    including premium or maintenance taxes or fees.
 50-9          SECTION 2.08.  Section 326.029(a), Local Government Code, is
50-10    amended to read as follows:
50-11          (a)  If a majority of the votes received in the election
50-12    favor the creation of the district and the adoption of the sales
50-13    and use tax, the commissioners court shall by resolution or order
50-14    declare that the district is created and shall declare the amount
50-15    of the local sales and use tax adopted and enter the result in its
50-16    minutes.
50-17          SECTION 2.09.  Section 326.092(a), Local Government Code, is
50-18    amended to read as follows:
50-19          (a)  Chapter 323, Tax Code, to the extent not inconsistent
50-20    with this chapter, governs the imposition, computation,
50-21    administration, and governance of the tax under this subchapter,
50-22    except that Sections 323.101, 323.105, [and] 323.404, and 323.406
50-23    through 323.408, Tax Code, do not apply.
50-24          SECTION 2.10.  Section 101.003, Tax Code, is amended by
50-25    adding Subdivision (13) to read as follows:
50-26                (13)  "Tax" means a tax, fee, assessment, charge, or
50-27    other amount that the comptroller is authorized to administer.
 51-1          SECTION 2.11.  Section 111.0041(b), Tax Code, is amended to
 51-2    read as follows:
 51-3          (b)  This section prevails over any other conflicting
 51-4    provision of this title [except Section 191.024(b) of this code].
 51-5          SECTION 2.12.  Section 111.023, Tax Code, is amended to read
 51-6    as follows:
 51-7          Sec. 111.023.  WRITTEN AUTHORIZATION.  (a)  The comptroller
 51-8    may require that a report, return, declaration, claim for refund,
 51-9    or other document that is required or permitted to be filed with
51-10    the comptroller and that is submitted by an attorney, accountant,
51-11    or other representative of a taxpayer [person] on behalf of the
51-12    taxpayer [person] be accompanied by express written authorization
51-13    of the taxpayer [person] in whose name or on whose behalf it is
51-14    purportedly submitted.
51-15          (b)  An officer, director, or employee of the taxpayer whose
51-16    duties include administering the taxpayer's rights and
51-17    responsibilities with the comptroller may sign the written
51-18    authorization.  The authorization must include the title and
51-19    telephone number of the officer, director, or employee who signs
51-20    the authorization for verification by the comptroller.
51-21          (c)  The comptroller may impose a requirement of Subsection
51-22    (b) on a taxpayer's assignment of a claim for refund.
51-23          SECTION 2.13.  Section 111.104(e), Tax Code, is amended to
51-24    read as follows:
51-25          (e)  This section applies to all taxes and license fees
51-26    collected or administered by the comptroller, except the state
51-27    property tax [and those taxes that qualify for refund allowed under
 52-1    Section 151.318(g) or (n)].
 52-2          SECTION 2.14.  Section 111.107, Tax Code, is amended to read
 52-3    as follows:
 52-4          Sec. 111.107.  WHEN REFUND OR CREDIT IS PERMITTED.  Except as
 52-5    otherwise expressly provided, a person may request a refund or a
 52-6    credit or the comptroller may make a refund or issue a credit for
 52-7    the overpayment of a tax imposed by this title at any time before
 52-8    the expiration of the period during which the comptroller may
 52-9    assess a deficiency for the tax and not thereafter unless the
52-10    refund or credit is requested:
52-11                (1)  under Subchapter B of Chapter 112 and the refund
52-12    is made or the credit is issued under a court order;
52-13                (2)  under the provision of Section 111.104(c)(3)
52-14    applicable to a refund claim filed after a jeopardy or deficiency
52-15    determination becomes final; or
52-16                (3)  under Chapter 153, except Section 153.1195(e),
52-17    153.121(d), 153.2225(e), or 153.224(d)[; or]
52-18                [(4)  under Section 151.318(g) or (n)].
52-19          SECTION 2.15.  Sections 151.310(c) and (e), Tax Code, are
52-20    amended to read as follows:
52-21          (c)  An organization that qualifies for an exemption under
52-22    Subsection (a)(1) or (a)(2) of this section, and each bona fide
52-23    chapter of the organization, may hold two tax-free sales or
52-24    auctions under this subsection during a calendar year and each
52-25    tax-free sale or auction may continue for one day only.  The sale
52-26    of a taxable item the sales price of which is $5,000 or less by a
52-27    qualified organization or chapter of the organization at a tax-free
 53-1    sale or auction is exempted from the sales tax imposed by
 53-2    Subchapter C of this chapter, except that a taxable item
 53-3    manufactured by or donated to the qualified organization or chapter
 53-4    of the organization may be sold tax free regardless of the sales
 53-5    price to any purchaser other than the donor.  The storage, use, or
 53-6    consumption of a taxable item that is acquired from a qualified
 53-7    organization or chapter of the organization at a tax-free sale or
 53-8    auction and that is exempted under this subsection from the taxes
 53-9    imposed by Subchapter C of this chapter is exempted from the use
53-10    tax imposed by Subchapter D of this chapter until the item is
53-11    resold or subsequently transferred.
53-12          (e)  A nonprofit hospital or hospital system that qualifies
53-13    for an exemption under Subsection (a)(2) shall provide community
53-14    benefits that include charity care and government-sponsored
53-15    indigent health care [community benefits] as set forth in
53-16    Subchapter D, Chapter 311, Health and Safety Code.  [Subdivision
53-17    (1), (2), (3), (4), (5), (6), (7), or (8) below:]
53-18                [(1)  charity care and government-sponsored indigent
53-19    health care are provided at a level which is reasonable in relation
53-20    to the community needs, as determined through the community needs
53-21    assessment, the available resources of the hospital or hospital
53-22    system, and the tax-exempt benefits received by the hospital or
53-23    hospital system;]
53-24                [(2)  charity care and government-sponsored indigent
53-25    health care are provided in an amount equal to at least four
53-26    percent of the hospital's or hospital system's net patient revenue;]
53-27                [(3)  charity care and government-sponsored indigent
 54-1    health care are provided in an amount equal to at least 100 percent
 54-2    of the hospital's or hospital system's tax-exempt benefits,
 54-3    excluding federal income tax;]
 54-4                [(4)  for tax periods beginning before January 1, 1996,
 54-5    charity care and community benefits are provided in a combined
 54-6    amount equal to at least five percent of the hospital's or hospital
 54-7    system's net patient revenue, provided that charity care and
 54-8    government-sponsored indigent health care are provided in an amount
 54-9    equal to at least three percent of net patient revenue;]
54-10                [(5)  for tax periods beginning after December 31,
54-11    1995, charity care and community benefits are provided in a
54-12    combined amount equal to at least five percent of the hospital's or
54-13    hospital system's net patient revenue, provided that charity care
54-14    and government-sponsored indigent health care are provided in an
54-15    amount equal to at least four percent of net patient revenue;]
54-16                [(6)  a nonprofit hospital that has been designated as
54-17    a disproportionate share hospital under the state Medicaid program
54-18    in the current year or in either of the previous two fiscal years
54-19    is considered to have provided a reasonable amount of charity care
54-20    and government-sponsored indigent health care and is considered in
54-21    compliance with the standards provided by this subsection;]
54-22                [(7)  a hospital operated on a nonprofit basis that is
54-23    located in a county with a population of less than 50,000 and in
54-24    which the entire county or the population of the entire county has
54-25    been designated as a health professionals shortage area is
54-26    considered to be in compliance with the standards provided by this
54-27    subsection; or]
 55-1                [(8)  a hospital providing health care services to
 55-2    inpatients or outpatients without receiving any payment for
 55-3    providing those services from any source, including the patient or
 55-4    person legally obligated to support the patient, third-party
 55-5    payors, Medicare, Medicaid, or any other state or local indigent
 55-6    care program but excluding charitable donations, legacies,
 55-7    bequests, or grants or payments for research, is considered to be
 55-8    in compliance with the standards provided by this subsection.]
 55-9          [For purposes of satisfying Subdivision (5), a hospital or
55-10    hospital system may not change its existing fiscal year unless the
55-11    hospital or hospital system changes its ownership or corporate
55-12    structure as a result of a sale or merger.]
55-13          [For purposes of this subsection, a hospital that satisfies
55-14    Subdivision (1), (6), (7), or (8) shall be excluded in determining
55-15    a hospital system's compliance with the standards provided by
55-16    Subdivision (2), (3), (4), or (5).]
55-17          [For purposes of this subsection, the terms "charity care,"
55-18    "government-sponsored indigent health care," "health care
55-19    organization," "hospital system," "net patient revenue," "nonprofit
55-20    hospital," and "tax-exempt benefits" have the meanings set forth in
55-21    Sections 311.031 and 311.042, Health and Safety Code.  A
55-22    determination of the amount of community benefits and charity care
55-23    and government-sponsored indigent health care provided by a
55-24    hospital or hospital system and the hospital's or hospital system's
55-25    compliance with the requirements of this subsection and Section
55-26    311.045, Health and Safety Code, shall be based on the most
55-27    recently completed and audited prior fiscal year of the hospital or
 56-1    hospital system.]
 56-2          [The providing of charity care and government-sponsored
 56-3    indigent health care in accordance with Subdivision (1) shall be
 56-4    guided by the prudent business judgment of the hospital which will
 56-5    ultimately determine the appropriate level of charity care and
 56-6    government-sponsored indigent health care based on the community
 56-7    needs, the available resources of the hospital, the tax-exempt
 56-8    benefits received by the hospital, and other factors that may be
 56-9    unique to the hospital, such as the hospital's volume of Medicare
56-10    and Medicaid patients.  These criteria shall not be determinative
56-11    factors, but shall be guidelines contributing to the hospital's
56-12    decision along with other factors which may be unique to the
56-13    hospital.  The formulas contained in Subdivisions (2), (3), (4),
56-14    and (5) shall also not be considered determinative of a reasonable
56-15    amount of charity care and government-sponsored indigent health
56-16    care.]
56-17          [The requirements of this subsection shall not apply to the
56-18    extent a hospital or hospital system demonstrates that reductions
56-19    in the amount of community benefits, charity care, and
56-20    government-sponsored indigent health care are necessary to maintain
56-21    financial reserves at a level required by a bond covenant, are
56-22    necessary to prevent the hospital or hospital system from
56-23    endangering its ability to continue operations, or if the hospital
56-24    or hospital system, as a result of a natural or other disaster, is
56-25    required substantially to curtail its operations.]
56-26          [In any fiscal year that a hospital or hospital system,
56-27    through unintended miscalculation, fails to meet any of the
 57-1    standards in this subsection, the hospital or hospital system shall
 57-2    not lose its tax-exempt status without the opportunity to cure the
 57-3    miscalculation in the fiscal year following the fiscal year the
 57-4    failure is discovered by both meeting one of the standards and
 57-5    providing an additional amount of charity care and
 57-6    government-sponsored indigent health care that is equal to the
 57-7    shortfall from the previous fiscal year.  A hospital or hospital
 57-8    system may apply this provision only once every five years.]
 57-9          SECTION 2.16.  Section 151.3101, Tax Code, is amended by
57-10    adding Subsection (c) to read as follows:
57-11          (c)  In this section, "educational organization" includes an
57-12    entity described by Section 61.003(8) or (15), Education Code.
57-13          SECTION 2.17.  Section 151.312, Tax Code, is amended to read
57-14    as follows:
57-15          Sec. 151.312.  PERIODICALS AND WRITINGS OF RELIGIOUS,
57-16    PHILANTHROPIC, CHARITABLE, HISTORICAL, SCIENTIFIC, AND SIMILAR
57-17    ORGANIZATIONS.  Periodicals and writings, including those presented
57-18    on audio tape, videotape, and computer disk, that are published and
57-19    [or] distributed by a religious, philanthropic, charitable,
57-20    historical, scientific, or other similar organization that is not
57-21    operated for profit, but excluding an educational organization, are
57-22    exempted from the taxes imposed by this chapter.
57-23          SECTION 2.18.  Section 151.317, Tax Code, is amended to read
57-24    as follows:
57-25          Sec. 151.317.  GAS AND ELECTRICITY.  (a)  Subject to
57-26    Subsection (d), gas [Gas] and electricity are exempted from the
57-27    taxes imposed by this chapter [except] when sold for:
 58-1                (1)  residential use;
 58-2                (2)  use in powering equipment exempt under Section
 58-3    151.318 by a person processing tangible personal property for sale
 58-4    as tangible personal property, other than preparation or storage of
 58-5    food for immediate consumption;
 58-6                (3)  use in lighting, cooling, and heating in the
 58-7    manufacturing area during the actual manufacturing or processing of
 58-8    tangible personal property for sale as tangible personal property,
 58-9    other than preparation or storage of food for immediate
58-10    consumption;
58-11                (4)  use directly in exploring for, producing, or
58-12    transporting, a material extracted from the earth;
58-13                (5)  use in agriculture, including dairy or poultry
58-14    operations and pumping for farm or ranch irrigation;
58-15                (6)  use directly in electrical processes, such as
58-16    electroplating, electrolysis, and cathodic protection;
58-17                (7)  use directly in the off-wing processing, overhaul,
58-18    or repair of a jet turbine engine or its parts for a certificated
58-19    or licensed carrier of persons or property;
58-20                (8)  use directly in providing, under contracts with or
58-21    on behalf of the United States government or foreign governments,
58-22    defense or national security-related electronics, classified
58-23    intelligence data processing and handling systems, or
58-24    defense-related platform modifications or upgrades; or
58-25                (9)  a direct or indirect use, consumption, or loss of
58-26    electricity by an electric utility engaged in the purchase of
58-27    electricity for resale [commercial use].
 59-1          (b)  The sale, production, distribution, lease, or rental of,
 59-2    and the use, storage, or other consumption in this state of, gas
 59-3    and electricity sold for the uses listed in Subsection (a), [except
 59-4    when sold for residential or commercial use,] are exempted from the
 59-5    taxes imposed by a municipality [city] under Chapter 321 except
 59-6    [the Local Sales and Use Tax Act, unless sales for residential use
 59-7    are further exempted by the city] as provided by Section 321.105
 59-8    [the Local Sales and Use Tax Act].
 59-9          (c)  In this section, "residential [:]
59-10                [(1)  "Residential] use" means use:
59-11                (1) [(A)]  in a family dwelling or in a multifamily
59-12    apartment or housing complex or building or in a part of a building
59-13    occupied as a home or residence when the use is by the owner of the
59-14    dwelling, apartment, complex, or building or part of the building
59-15    occupied; or
59-16                (2) [(B)]  in a dwelling, apartment, house, or building
59-17    or part of a building occupied as a home or residence when the use
59-18    is by a tenant who occupies the dwelling, apartment, house, or
59-19    building or part of a building under a contract for an express
59-20    initial term for longer than 29 consecutive days.
59-21          (d)  To qualify for the exemptions in Subsections (a)(2)-(8),
59-22    the gas or electricity must be sold to the person using the gas or
59-23    electricity in the exempt manner.  For purposes of this subsection,
59-24    the use of gas or electricity in an exempt manner by an independent
59-25    contractor engaged by the purchaser of the gas or electricity to
59-26    perform one or more of the exempt activities identified in
59-27    Subsections (a)(2)-(8) is considered use by the purchaser of the
 60-1    gas or electricity.
 60-2          (e)  Natural gas or electricity used during a regular monthly
 60-3    billing period for both exempt and taxable purposes under a single
 60-4    meter is totally exempt or taxable based on the predominant use of
 60-5    the natural gas or electricity measured by that meter.  The
 60-6    comptroller may prescribe by rule the procedures by which a
 60-7    purchaser must establish the predominant use of the natural gas or
 60-8    electricity.
 60-9                [(2)  "Commercial use" means use by a person engaged in
60-10    selling, warehousing, or distributing a commodity or a professional
60-11    or personal service, but does not include:]
60-12                      [(A)  use by a person engaged in:]
60-13                            [(i)  processing tangible personal property
60-14    for sale as tangible personal property, other than preparation or
60-15    storage of food for immediate consumption;]
60-16                            [(ii)  exploring for, producing, or
60-17    transporting, a material extracted from the earth;]
60-18                            [(iii)  agriculture, including dairy or
60-19    poultry operations and pumping for farm or ranch irrigation;]
60-20                            [(iv)  electrical processes such as
60-21    electroplating, electrolysis, and cathodic protection;]
60-22                            [(v)  the off-wing processing, overhaul, or
60-23    repair of a jet turbine engine or its parts for a certificated or
60-24    licensed carrier of persons or property; or]
60-25                            [(vi)  providing, under contracts with or
60-26    on behalf of the United States government or foreign governments,
60-27    defense or national security-related electronics, classified
 61-1    intelligence data processing and handling systems, or
 61-2    defense-related platform modifications or upgrades; or]
 61-3                      [(B)  a direct or indirect use, consumption, or
 61-4    loss of electricity by an electric utility engaged in the purchase
 61-5    of electricity for resale.]
 61-6          SECTION 2.19.  Section 151.318, Tax Code, is amended by
 61-7    amending Subsections (a), (c), (o), (q), and (s), and adding
 61-8    Subsections (f) and (t) to read as follows:
 61-9          (a)  The following items are exempted from the taxes imposed
61-10    by this chapter if sold, leased, or rented to, or stored, used, or
61-11    consumed by a manufacturer:
61-12                (1)  tangible personal property that will become an
61-13    ingredient or component part of tangible personal property
61-14    manufactured, processed, or fabricated for ultimate sale;
61-15                (2)  tangible personal property directly used or
61-16    consumed in or during the actual manufacturing, processing, or
61-17    fabrication of tangible personal property for ultimate sale if the
61-18    use or consumption of the property is necessary or essential to the
61-19    manufacturing, processing, or fabrication operation and directly
61-20    makes or causes a chemical or physical change to:
61-21                      (A)  the product being manufactured, processed,
61-22    or fabricated for ultimate sale; or
61-23                      (B)  any intermediate or preliminary product that
61-24    will become an ingredient or component part of the product being
61-25    manufactured, processed, or fabricated for ultimate sale;
61-26                (3)  services performed directly on the product being
61-27    manufactured prior to its distribution for sale and for the purpose
 62-1    of making the product more marketable;
 62-2                (4)  actuators, steam production equipment and its
 62-3    fuel, in-process flow through tanks, cooling towers, generators,
 62-4    heat exchangers, transformers and the switches, breakers, capacitor
 62-5    banks, regulators, relays, reclosers, fuses, interruptors,
 62-6    reactors, arrestors, resistors, insulators, instrument
 62-7    transformers, and telemetry units that are related to the
 62-8    transformers, electronic control room equipment, computerized
 62-9    control units, pumps, compressors, and hydraulic units, that are
62-10    used to power, supply, support, or control equipment that qualifies
62-11    for exemption under Subdivision (2) or (5) or to generate
62-12    electricity, chilled water, or steam for ultimate sale;
62-13    transformers located at an electric generating facility that
62-14    increase the voltage of electricity generated for ultimate sale,
62-15    the electrical cable that carries the electricity from the electric
62-16    generating equipment to the step-up transformers, and the switches,
62-17    breakers, capacitor banks, regulators, relays, reclosers, fuses,
62-18    interruptors, reactors, arrestors, resistors, insulators,
62-19    instrument transformers, and telemetry units that are related to
62-20    the step-up transformers; and transformers that decrease the
62-21    voltage of electricity generated for ultimate sale and the
62-22    switches, breakers, capacitor banks, regulators, relays, reclosers,
62-23    fuses, interruptors, reactors, arrestors, resistors, insulators,
62-24    instrument transformers, and telemetry units that are related to
62-25    the step-down transformers; [and]
62-26                (5)  tangible personal property [machinery, equipment,
62-27    and replacement parts or accessories] used or consumed in the
 63-1    actual manufacturing, processing, or fabrication of tangible
 63-2    personal property for ultimate sale if the [their] use or
 63-3    consumption of the property is necessary and essential to a
 63-4    pollution control process;
 63-5                (6)  lubricants, chemicals, chemical compounds, gases,
 63-6    or liquids that are used or consumed during the actual
 63-7    manufacturing, processing, or fabrication of tangible personal
 63-8    property for ultimate sale if their use or consumption is necessary
 63-9    and essential to prevent the decline, failure, lapse, or
63-10    deterioration of equipment exempted by this section;
63-11                (7)  gases used on the premises of a manufacturing
63-12    plant to prevent contamination of raw material or product, or to
63-13    prevent a fire, explosion, or other hazardous or environmentally
63-14    damaging situation at any stage in the manufacturing process or in
63-15    loading or storage of the product or raw material on premises;
63-16                (8)  tangible personal property used or consumed during
63-17    the actual manufacturing, processing, or fabrication of tangible
63-18    personal property for ultimate sale if the use or consumption of
63-19    the property is necessary and essential to a quality control
63-20    process;
63-21                (9)  safety apparel or work clothing that is used
63-22    during the actual manufacturing, processing, or fabrication of
63-23    tangible personal property for ultimate sale if:
63-24                      (A)  the manufacturing process would not be
63-25    possible without the use of the apparel or clothing; and
63-26                      (B)  the apparel or clothing is not resold to the
63-27    employee;
 64-1                (10)  tangible personal property used or consumed in
 64-2    the actual manufacturing, processing, or fabrication of tangible
 64-3    personal property for ultimate sale if the use or consumption of
 64-4    the property is necessary and essential to comply with federal,
 64-5    state, or local laws or rules that establish requirements related
 64-6    to public health; and
 64-7                (11)  tangible personal property specifically installed
 64-8    to:
 64-9                      (A)  reduce water use and wastewater flow volumes
64-10    from the manufacturing, processing, fabrication, or repair
64-11    operation;
64-12                      (B)  reuse and recycle wastewater streams
64-13    generated within the manufacturing, processing, fabrication, or
64-14    repair operation; or
64-15                      (C)  treat wastewater from another industrial or
64-16    municipal source for the purpose of replacing existing freshwater
64-17    sources in the manufacturing, processing, fabrication, or repair
64-18    operation.
64-19          (c)  The exemption does not include:
64-20                (1)  intraplant transportation equipment, including
64-21    intraplant transportation equipment used to move a product or raw
64-22    material in connection with the manufacturing process and
64-23    specifically including all piping and conveyor systems, provided
64-24    that the following remain eligible for the exemption:
64-25                      (A)  piping or conveyor systems that are [is] a
64-26    component part of a single item of manufacturing equipment or
64-27    pollution control equipment eligible for the exemption under
 65-1    Subsection (a)(2), (a)(4), or (a)(5);
 65-2                      (B)  piping through which the product or an
 65-3    intermediate or preliminary product that will become an ingredient
 65-4    or component part of the product is recycled or circulated in a
 65-5    loop between the single item of manufacturing equipment and the
 65-6    ancillary equipment that supports only that single item of
 65-7    manufacturing equipment if the single item of manufacturing
 65-8    equipment and the ancillary equipment operate together to perform a
 65-9    specific step in the manufacturing process; and
65-10                      (C)  piping through which the product or an
65-11    intermediate or preliminary product that will become an ingredient
65-12    or component part of the product is recycled back to another single
65-13    item of manufacturing equipment and its ancillary equipment in the
65-14    same manufacturing process [remains eligible for the exemption];
65-15                (2)  [maintenance or janitorial supplies or equipment
65-16    or other machinery, equipment, materials, or supplies that are used
65-17    incidentally in a manufacturing, processing, or fabrication
65-18    operation;]
65-19                [(3)]  hand tools;
65-20                (3)  maintenance supplies not otherwise exempted under
65-21    this section, maintenance equipment, janitorial supplies or
65-22    equipment, [(4)] office equipment or supplies, equipment or
65-23    supplies used in sales or distribution activities, research or
65-24    development of new products, or transportation activities[, or
65-25    other tangible personal property not used in an actual
65-26    manufacturing, processing, or fabrication operation]; [or]
65-27                (4) [(5)]  machinery and equipment or supplies to the
 66-1    extent not otherwise exempted under this section used to maintain
 66-2    or store tangible personal property; or
 66-3                (5)  tangible personal property used in the
 66-4    transmission or distribution of electricity, including
 66-5    transformers, cable, switches, breakers, capacitor banks,
 66-6    regulators, relays, reclosers, fuses, interruptors, reactors,
 66-7    arrestors, resistors, insulators, instrument transformers, and
 66-8    telemetry units not otherwise exempted under this section, and
 66-9    lines, conduit, towers, and poles.
66-10          (f)  For purposes of Subsection (c)(1), piping through which
66-11    material is transported forward from one single item of
66-12    manufacturing equipment and its ancillary support equipment to
66-13    another single item of manufacturing equipment and its ancillary
66-14    support equipment is not considered a component part of a single
66-15    item of manufacturing equipment and is not exempt.  An integrated
66-16    group of manufacturing and processing machines and ancillary
66-17    equipment that operate together to create or produce the product or
66-18    an intermediate or preliminary product that will become an
66-19    ingredient or component part of the product is not a single item of
66-20    manufacturing equipment.
66-21          (o)  The production of a publication for the dissemination of
66-22    news of a general character and of a general interest that is
66-23    printed on newsprint and distributed to the general public free of
66-24    charge at a daily, weekly, or other short interval is considered
66-25    "manufacturing" for purposes of [Subsections (d)-(m) of] this
66-26    section.
66-27          (q)  For purposes of Subsection (b), "semiconductor
 67-1    fabrication cleanrooms and equipment" means all tangible personal
 67-2    property, without regard to whether the property is affixed to or
 67-3    incorporated into realty, used in connection with the
 67-4    manufacturing, processing, or fabrication in a cleanroom
 67-5    environment of a semiconductor product, without regard to whether
 67-6    the property is actually contained in the cleanroom environment.
 67-7    The term includes integrated systems, fixtures, and piping, all
 67-8    property necessary or adapted to reduce contamination or to control
 67-9    airflow, temperature, humidity, chemical purity, or other
67-10    environmental conditions or manufacturing tolerances, and
67-11    production equipment and machinery.  The term does not include the
67-12    building or a permanent, nonremovable component of the building,
67-13    that houses the cleanroom environment.  The term includes moveable
67-14    cleanroom partitions and cleanroom lighting.  "Semiconductor
67-15    fabrication cleanrooms and equipment" are not "intraplant
67-16    ["interplant] transportation equipment" [or "used incidentally in a
67-17    manufacturing, processing, or fabrication operation"] as that term
67-18    is [those terms are] used in Subsection [Subsections] (c)(1) [and
67-19    (c)(2)].
67-20          (s)  The following do not apply to the semiconductor
67-21    fabrication cleanrooms and equipment in Subsection (q):
67-22                (1)  limitations in Subsection (a)(2) that refer to
67-23    tangible personal property directly causing chemical and physical
67-24    changes to the product being manufactured, processed, or fabricated
67-25    for ultimate sale;
67-26                (2)  Subsection (c)(1); and
67-27                (3)  Subsection (c)(4)[(5)].
 68-1          (t)  In addition to the other items exempted under this
 68-2    section, pre-press machinery, equipment, and supplies, including
 68-3    computers, cameras, film, film developing chemicals, veloxes,
 68-4    plate-making machinery, plate metal, litho negatives, color
 68-5    separation negatives, proofs of color negatives, production art
 68-6    work, and typesetting or composition proofs, that are necessary and
 68-7    essential to and used in connection with the printing process are
 68-8    exempted from the tax imposed by this chapter if they are purchased
 68-9    by a person engaged in:
68-10                (1)  printing or imprinting tangible personal property
68-11    for sale; or
68-12                (2)  producing a publication for the dissemination of
68-13    news of a general character and of a general interest that is
68-14    printed on newsprint and distributed to the general public free of
68-15    charge at a daily, weekly, or other short interval.
68-16          SECTION 2.20.  Subchapter H, Chapter 151, Tax Code, is
68-17    amended by adding Section 151.3185 to read as follows:
68-18          Sec. 151.3185.  PROPERTY USED IN THE PRODUCTION OF MOTION
68-19    PICTURES OR VIDEO OR AUDIO RECORDINGS AND BROADCASTS.  (a)  The
68-20    sale, lease, or rental or storage, use, or other consumption of the
68-21    following items are exempted from the taxes imposed by this
68-22    chapter:
68-23                (1)  tangible personal property that will become an
68-24    ingredient or component part of:
68-25                      (A)  a motion picture or video or audio
68-26    recording, a copy of which is sold or offered for ultimate sale,
68-27    licensed, distributed, broadcast, or otherwise exhibited; or
 69-1                      (B)  a broadcast by a producer of cable programs
 69-2    or by a radio or television station licensed by the Federal
 69-3    Communications Commission;
 69-4                (2)  tangible personal property that is necessary or
 69-5    essential to and used or consumed in or during:
 69-6                      (A)  the production of a motion picture or video
 69-7    or audio recording, a copy of which is sold or offered for ultimate
 69-8    sale, licensed, distributed, broadcast, or otherwise exhibited; or
 69-9                      (B)  the production of a broadcast by or for a
69-10    cable program producer or by or for a radio or television station
69-11    licensed by the Federal Communications Commission; and
69-12                (3)  except as provided by Subsection (c), services
69-13    that are necessary and essential to and used directly in a
69-14    production described by Subdivision (2)(A) or (B).
69-15          (b)  The exemption includes:
69-16                (1)  cameras, film, and film developing chemicals that
69-17    are necessary and essential to and used or consumed in a production
69-18    described by Subsection (a)(2)(A) or (B);
69-19                (2)  lights, props, sets, teleprompters, microphones,
69-20    digital equipment, special effects equipment and supplies, and
69-21    other equipment that is necessary and essential to and used or
69-22    consumed directly in a production described by Subsection (a)(2)(A)
69-23    or (B); and
69-24                (3)  audio or video routing switchers located in a
69-25    studio that are necessary and essential to and used or consumed
69-26    directly in a production described by Subsection (a)(2)(A) or (B).
69-27          (c)  The exemption does not include:
 70-1                (1)  office equipment or supplies;
 70-2                (2)  maintenance or janitorial equipment or supplies;
 70-3                (3)  machinery, equipment, or supplies used in sales,
 70-4    transmission, or transportation activities;
 70-5                (4)  machinery, equipment, or supplies used in
 70-6    distribution activities, unless otherwise exempted by this section;
 70-7                (5)  taxable items that are used incidentally in a
 70-8    production described by Subsection (a)(2)(A) or (B); or
 70-9                (6)  the following taxable items, regardless of whether
70-10    they are used incidentally in a production described by Subsection
70-11    (a)(2)(A) or (B):
70-12                      (A)  telecommunications equipment and services;
70-13                      (B)  transmission equipment;
70-14                      (C)  security services;
70-15                      (D)  motor vehicle parking services; and
70-16                      (E)  food ready for immediate consumption.
70-17          (d)  A production described by Subsection (a)(2)(A) or (B)
70-18    does not include a production for broadcast that is not intended to
70-19    be broadcast to either the general public or to cable television
70-20    service subscribers or paying customers.
70-21          SECTION 2.21.  Section 151.321(a), Tax Code, is amended to
70-22    read as follows:
70-23          (a)  A taxable item sold by a qualified student organization
70-24    and for which the sales price is $5,000 or less, is exempted from
70-25    the taxes imposed by Subchapter C, except that a taxable item
70-26    manufactured by or donated to the organization is exempt from the
70-27    taxes imposed by Subchapter C regardless of sales price unless sold
 71-1    to the donor, if the student organization:
 71-2                (1)  sells the item at a sale that may last for one day
 71-3    only and the primary purpose of which is to raise funds for the
 71-4    organization; and
 71-5                (2)  holds not more than one sale described by
 71-6    Subdivision (1) each month for which an exemption is claimed for an
 71-7    item sold.
 71-8          SECTION 2.22.  Section 151.350(d), Tax Code, is amended to
 71-9    read as follows:
71-10          (d)  In this section, "restore" means:
71-11                (1)  launder, [or] clean, repair, treat, or apply
71-12    protective chemicals to an item, to the extent the service is a
71-13    personal service as defined in Section 151.0045; and
71-14                (2)  repair, restore, or remodel, to the extent the
71-15    service is:
71-16                      (A)  a real property repair or remodeling service
71-17    as defined in Section 151.0047; or
71-18                      (B)  defined as a taxable service in Section
71-19    151.0101(a)(5) [151.0101(5)].
71-20          SECTION 2.23.  Subchapter H, Chapter 151, Tax Code, is
71-21    amended by adding Section 151.354 to read as follows:
71-22          Sec. 151.354.  SERVICES BY EMPLOYEES OF PROPERTY MANAGEMENT
71-23    COMPANIES.  (a)  There are exempted from the taxes imposed by this
71-24    chapter services performed by an employee of a property management
71-25    company if:
71-26                (1)  the employee is permanently assigned to one rental
71-27    property by the property management company;
 72-1                (2)  the property management company is reimbursed on a
 72-2    dollar-for-dollar basis for the services provided; and
 72-3                (3)  the employee remains assigned to that property
 72-4    while employed by successive owners or management companies.
 72-5          (b)  This exemption does not apply to services performed by
 72-6    an employee for properties other than the one to which the employee
 72-7    is permanently assigned.
 72-8          (c)  For purposes of this section, a person is an employee of
 72-9    a property management company if either the property management
72-10    company or an affiliate of the property management company employs
72-11    the person.
72-12          (d)  The property management company must:
72-13                (1)  be contractually obligated to the property owner
72-14    to exercise control over the activities of the employee providing
72-15    the service; and
72-16                (2)  manage and direct the employee's day-to-day
72-17    activities.
72-18          (e)  The property management company or the affiliate must
72-19    pay tax on the taxable items purchased and provided to employees
72-20    providing services on managed property.
72-21          (f)  In this section, "property management company" means a
72-22    person:
72-23                (1)  who, for consideration, operates and manages all
72-24    the activities at a property held by the owner for purposes of
72-25    rental, including an office building, mall, or other retail or
72-26    office complex, an apartment complex, a duplex, or a home; and
72-27                (2)  whose responsibilities include securing tenants,
 73-1    hiring, and supervising employees for operation or upkeep of the
 73-2    property, receiving and applying revenues, and incurring and paying
 73-3    expenses derived from the operation of the property as directed by
 73-4    the owner.
 73-5          (g)  In this section, a corporation, limited liability
 73-6    company, partnership, trust, or estate is an affiliate of the
 73-7    property management company if an 80 percent ownership interest in
 73-8    the property management company or the corporation, limited
 73-9    liability company, partnership, trust, or estate is held by the
73-10    other, or if a third person has an 80 percent ownership interest
73-11    either directly or indirectly in both the property management
73-12    company and the corporation, limited liability company,
73-13    partnership, trust, or estate.
73-14          SECTION 2.24.  Section 151.426, Tax Code, is amended by
73-15    amending Subsection (c) and adding Subsections (e), (f), (g), (h),
73-16    (i), and (j) to read as follows:
73-17          (c)  Subject to Subsection (e), a [A] retailer or any person
73-18    who extends credit to a purchaser under a retailer's private label
73-19    credit agreement, or an assignee or affiliate of either, is
73-20    entitled to credit or reimbursement for taxes paid on the portion
73-21    of:
73-22                (1)  an account determined to be worthless and actually
73-23    charged off for federal income tax purposes; or
73-24                (2)  the remaining unpaid sales price of a taxable item
73-25    when the item is repossessed under a conditional sales contract.
73-26          (e)  A person is entitled to a credit or reimbursement
73-27    provided by Subsection (c) only if:
 74-1                (1)  the retailer:
 74-2                      (A)  has a valid sales or use tax permit; and
 74-3                      (B)  remits the tax for which the credit or
 74-4    reimbursement is sought;
 74-5                (2)  all payments on an account are prorated between
 74-6    taxable and nontaxable charges; and
 74-7                (3)  the retailer or person claiming the credit or
 74-8    reimbursement provides detailed records outlining:
 74-9                      (A)  the amount the purchaser contracted to pay;
74-10                      (B)  taxable and nontaxable charges;
74-11                      (C)  the tax collected and remitted;
74-12                      (D)  the unpaid portion of the sales price
74-13    assigned; and
74-14                      (E)  the taxpayer number of the seller who
74-15    collected and remitted the tax.
74-16          (f)  A person whose volume and character of uncollectible
74-17    accounts warrants an alternative method of substantiating the
74-18    reimbursement or credit may:
74-19                (1)  maintain records other than the records specified
74-20    in Subsection (e) if:
74-21                      (A)  the records fairly and equitably apportion
74-22    taxable and nontaxable elements of a bad debt and compute the
74-23    amount of sales tax imposed and remitted with respect to the
74-24    taxable charges remaining unpaid on the debt; and
74-25                      (B)  the comptroller approves the procedures
74-26    used; or
74-27                (2)  implement a system to report its future tax
 75-1    responsibilities based on a historical percentage calculated from a
 75-2    sample of transactions if:
 75-3                      (A)  the system utilizes records provided by the
 75-4    person claiming the credit or reimbursement; and
 75-5                      (B)  the comptroller approves the procedures
 75-6    used.
 75-7          (g)  The comptroller may revoke the authorization to report
 75-8    under Subsection (f)(2) if the comptroller determines that the
 75-9    percentage being used is no longer representative because of:
75-10                (1)  a change in law, including a change in the
75-11    interpretation of an existing law or rule; or
75-12                (2)  a change in the taxpayer's business operations.
75-13          (h)  A person claiming a credit or reimbursement under this
75-14    section shall remit tax on any payments received on an account that
75-15    has been written off and claimed as a bad debt.
75-16          (i)  A person who is not a retailer may claim a credit or
75-17    reimbursement authorized by Subsection (c) only for taxes imposed
75-18    by Section 151.051 or 151.101.
75-19          (j)  For purposes of this section, "affiliate" means any
75-20    entity or entities that would be classified as a member of an
75-21    affiliated group under 26 U.S.C.  Section 1504.
75-22          SECTION 2.25.  Sections 151.429(d) and (g), Tax Code, are
75-23    amended to read as follows:
75-24          (d)  To receive a refund under this section, an enterprise
75-25    project must apply to the comptroller for the refund.  The Texas
75-26    Department of Economic Development [department of commerce] shall
75-27    provide the comptroller with the assistance that the comptroller
 76-1    requires in administering this section.
 76-2          (g)  The refund provided by this section is conditioned on
 76-3    the enterprise project maintaining at least the same level of
 76-4    employment of qualified employees as existed at the time it
 76-5    qualified for a refund for a period of three years from that date.
 76-6    The Texas Department of Economic Development [Commerce] shall
 76-7    annually certify to the comptroller and the Legislative Budget
 76-8    Board whether that level of employment of qualified employees has
 76-9    been maintained.  On the Texas Department of Economic Development
76-10    [Commerce] certifying that such a level has not been maintained,
76-11    the comptroller shall assess that portion of the refund
76-12    attributable to any such decrease in employment, including penalty
76-13    and interest from the date of the refund.
76-14          SECTION 2.26.  Section 151.429(e)(1), Tax Code, is amended to
76-15    read as follows:
76-16                (1)  "Enterprise project" means a person designated by
76-17    the Texas Department of Economic Development [Commerce] as an
76-18    enterprise project under Chapter 2303, Government Code.
76-19          SECTION 2.27.  Sections 151.4291(d) and (g), Tax Code, are
76-20    amended to read as follows:
76-21          (d)  To receive a refund under this section, a defense
76-22    readjustment project must apply to the comptroller for the refund.
76-23    The Texas Department of Economic Development [Commerce] shall
76-24    provide the  comptroller with the assistance that the comptroller
76-25    requires in administering this section.
76-26          (g)  The refund provided by this section is conditioned on
76-27    the defense readjustment project maintaining at least the same
 77-1    level of employment of qualified employees as existed at the time
 77-2    it qualified for a refund for a period of three years from that
 77-3    date.  The Texas Department of Economic Development [Commerce]
 77-4    shall annually certify to the comptroller and the Legislative
 77-5    Budget Board whether that level of employment of qualified
 77-6    employees has been maintained.  On the Texas Department of Economic
 77-7    Development [Commerce] certifying that such a level has not been
 77-8    maintained, the comptroller shall assess that portion of the refund
 77-9    attributable to any such decrease in employment, including penalty
77-10    and interest from the date of the refund.
77-11          SECTION 2.28.  Section 151.4291(e)(1), Tax Code, is amended
77-12    to read as follows:
77-13                (1)  "Defense readjustment project" means a person
77-14    designated by the Texas Department of Economic Development
77-15    [Commerce] as a defense readjustment project under Chapter 2310,
77-16    Government Code.
77-17          SECTION 2.29.  Section 151.431(a), Tax Code, is amended to
77-18    read as follows:
77-19          (a)  A qualified business operating in the enterprise zone's
77-20    jurisdiction for at least three consecutive years may apply for and
77-21    be granted a onetime refund of sales and use tax paid by the
77-22    qualified business after certification of the qualified business as
77-23    provided by Subsection (b) of this section to a vendor or directly
77-24    to the state for the purchase of equipment or machinery sold to the
77-25    business for use in an enterprise zone if the governing body or
77-26    bodies certify to the Texas Department of Economic Development
77-27    [Commerce] that the business is retaining 10 or more jobs held by
 78-1    qualified employees during the year.  For the purposes of this
 78-2    subsection "job" means an existing employment position of a
 78-3    qualified business that has provided employment to a qualified
 78-4    employee of at least 1,820 hours annually.
 78-5          SECTION 2.30.  Section 152.002, Tax Code, is amended by
 78-6    adding Subsection (d) to read as follows:
 78-7          (d)  A person who holds a lessor license under the Texas
 78-8    Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
 78-9    Civil Statutes) or is specifically not required to obtain a lessor
78-10    license under Section 4.01(a) of that Act may deduct the fair
78-11    market value of a replaced motor vehicle that has been leased for
78-12    longer than 180 days and is titled to another person if:
78-13                (1)  either person:
78-14                      (A)  holds a beneficial ownership interest in the
78-15    other person of at least 80 percent; or
78-16                      (B)  acquires all of its vehicles exclusively
78-17    from franchised dealers whose franchisor shares common ownership
78-18    with the other person; and
78-19                (2)  the replaced motor vehicle is offered for sale.
78-20          SECTION 2.31.  Section 152.041, Tax Code, is amended by
78-21    adding Subsection (e) to read as follows:
78-22          (e)  If a motor vehicle title applicant has paid the tax to
78-23    the seller who is required by this chapter to collect the tax and
78-24    the seller has failed to remit the tax to the county tax
78-25    assessor-collector, the tax assessor-collector may accept
78-26    application for title to the motor vehicle without the payment of
78-27    additional tax by the applicant.  Before title to the motor vehicle
 79-1    may be issued under these circumstances, the motor vehicle title
 79-2    applicant must present satisfactory documentation to the tax
 79-3    assessor-collector that the tax was paid.  The county tax
 79-4    assessor-collector shall notify the comptroller in writing of the
 79-5    seller's failure to remit the tax.  The notice must:
 79-6                (1)  be made before the 31st day after the date the
 79-7    application for title is accepted;
 79-8                (2)  contain the name and address of the seller; and
 79-9                (3)  include any documentation of the payment of the
79-10    tax provided to the county tax assessor-collector by the motor
79-11    vehicle title applicant.
79-12          SECTION 2.32.  Sections 153.117(a), (b), (d), and (h), Tax
79-13    Code, are amended to read as follows:
79-14          (a)  A distributor shall keep a record showing the number of
79-15    gallons of:
79-16                (1)  all gasoline inventories on hand at the first of
79-17    each month;
79-18                (2)  all gasoline refined, compounded, or blended;
79-19                (3)  all gasoline purchased or received, showing the
79-20    name of the seller and date of each purchase or receipt;
79-21                (4)  all gasoline sold, distributed, or used, showing
79-22    the name of the purchaser and the date of the sale or use; and
79-23                (5)  all gasoline lost by fire, theft, or [other]
79-24    accident.
79-25          (b)  A dealer shall keep a record showing the number of
79-26    gallons of:
79-27                (1)  gasoline inventories on hand at the first of each
 80-1    month;
 80-2                (2)  all gasoline purchased or received, showing the
 80-3    name of the seller and the date of each purchase or receipt;
 80-4                (3)  all gasoline sold or used, showing the date of the
 80-5    sale or use; and
 80-6                (4)  all gasoline lost by fire, theft, or [other]
 80-7    accident.
 80-8          (d)  An aviation fuel dealer shall keep a record showing the
 80-9    number of gallons of:
80-10                (1)  all gasoline inventories on hand at the first of
80-11    each month;
80-12                (2)  all gasoline purchased or received, showing the
80-13    name of the seller and date of each purchase or receipt;
80-14                (3)  all gasoline sold or used in aircraft or aircraft
80-15    servicing equipment; and
80-16                (4)  all gasoline lost by fire, theft, or [other]
80-17    accident.
80-18          (h)  A gasoline jobber shall keep a record showing the number
80-19    of gallons of:
80-20                (1)  all gasoline inventories on hand at the first of
80-21    each month;
80-22                (2)  all gasoline purchased or received, showing the
80-23    name of the seller and date of each purchase or receipt;
80-24                (3)  all gasoline sold, distributed, or used, showing
80-25    the name of the purchaser and the date of the sale or use; and
80-26                (4)  all gasoline lost by fire, theft, or [other]
80-27    accident.
 81-1          SECTION 2.33.  Sections 153.119(a) and (e), Tax Code, are
 81-2    amended to read as follows:
 81-3          (a)  A person who exports, sells to the federal government,
 81-4    to a public school district in this state, or to a commercial
 81-5    transportation company for exclusive use in providing public school
 81-6    transportation services to a school district under Section 34.008,
 81-7    Education Code, without having added the amount of the tax imposed
 81-8    by this chapter to his selling price, loses by fire, theft, or
 81-9    [other] accident, or uses gasoline for the purpose of operating or
81-10    propelling a motorboat, tractor used for agricultural purposes, or
81-11    stationary engine, or for another purpose except in a vehicle
81-12    operated or intended to be operated on the public highways of this
81-13    state, and who has paid the tax imposed on gasoline by this chapter
81-14    either directly or indirectly is, when the person has complied with
81-15    the invoice and filing provisions of this section and the rules of
81-16    the comptroller, entitled to reimbursement of the tax paid by him,
81-17    less a filing fee and any amount allowed distributors[, wholesalers
81-18    or jobbers, dealers, or others] under Section 153.105(e)
81-19    [153.105(c)] of this code.  A public school district that has paid
81-20    the tax imposed under this chapter on gasoline used by the district
81-21    or a commercial transportation company that has paid the tax
81-22    imposed under this chapter on gasoline used by the company
81-23    exclusively to provide public school transportation services to a
81-24    school district under Section 34.008, Education Code, is entitled
81-25    to reimbursement of the amount of the tax paid in the same manner
81-26    and subject to the same procedures as other exempted users.
81-27          (e)  A person who exports or loses by fire, theft, or [other]
 82-1    accident 100 or more gallons of gasoline on which the tax has been
 82-2    paid, or sells gasoline in any quantity to the United States
 82-3    government for the exclusive use of that government on which the
 82-4    tax has been paid, may file a claim for a refund of the net tax
 82-5    paid to the state in the manner provided by this chapter or as the
 82-6    comptroller may direct.
 82-7          SECTION 2.34.  Section 153.121(a), Tax Code, is amended to
 82-8    read as follows:
 82-9          (a)  Except as provided by this section, a claim for a refund
82-10    must be filed with the comptroller within one year after the first
82-11    day of the calendar month following the purchase, use, delivery,
82-12    export, or loss by fire, theft, or [other] accident of gasoline,
82-13    whichever period expires latest.
82-14          SECTION 2.35.  Section 153.206, Tax Code, is amended by
82-15    adding Subsection (j) to read as follows:
82-16          (j)  In each subsequent sale of diesel fuel on which the tax
82-17    has been collected, the amount of the tax shall be added to the
82-18    selling price  so that the tax is paid ultimately by the person
82-19    using or consuming the diesel fuel for the purpose of propelling a
82-20    vehicle on the public highways of this state.
82-21          SECTION 2.36.  Sections 153.219(a), (b), (c), (d), and (i),
82-22    Tax Code, are amended to read as follows:
82-23          (a)  A supplier shall keep a record showing the number of
82-24    gallons of:
82-25                (1)  all diesel fuel inventories on hand at the first
82-26    of each month;
82-27                (2)  all diesel fuel refined, compounded, or blended;
 83-1                (3)  all diesel fuel purchased or received, showing the
 83-2    name of the seller, and the date of each purchase or receipt;
 83-3                (4)  all diesel fuel sold, distributed, or used showing
 83-4    the name of the purchaser and the date of sale, distribution, or
 83-5    use; and
 83-6                (5)  all diesel fuel lost by fire, theft, or [other]
 83-7    accident.
 83-8          (b)  A dealer shall keep a record showing the number of
 83-9    gallons of:
83-10                (1)  all diesel fuel inventories on hand at the first
83-11    of each month;
83-12                (2)  all diesel fuel purchased or received, showing the
83-13    name of the seller, the date of each purchase or receipt;
83-14                (3)  all diesel fuel sold, distributed, or used; and
83-15                (4)  all diesel fuel lost by fire, theft, or [other]
83-16    accident.
83-17          (c)  A bonded user or other user with nonhighway equipment
83-18    uses who files a claim for a refund shall keep a record showing the
83-19    number of gallons of:
83-20                (1)  inventories of all diesel fuel on hand at the
83-21    first of each month;
83-22                (2)  all diesel fuel purchased or received, showing the
83-23    name of the seller and the date of each purchase;
83-24                (3)  all diesel fuel deliveries into the fuel supply
83-25    tanks of motor vehicles;
83-26                (4)  diesel fuel used for other purposes, showing the
83-27    purpose for which used; and
 84-1                (5)  all diesel fuel lost by fire, theft, or [other]
 84-2    accident.
 84-3          (d)  An aviation fuel dealer shall keep a record showing the
 84-4    number of gallons of:
 84-5                (1)  all diesel fuel inventories on hand at the first
 84-6    of each month;
 84-7                (2)  all diesel fuel purchased or received, showing the
 84-8    name of the seller and the date of each purchase or receipt;
 84-9                (3)  all diesel fuel sold, distributed, or used in
84-10    aircraft or aircraft servicing equipment; and
84-11                (4)  diesel fuel lost by fire, theft, or [other]
84-12    accident.
84-13          (i)  A diesel fuel jobber shall keep a record showing the
84-14    number of gallons of:
84-15                (1)  all diesel fuel inventories on hand at the first
84-16    of each month;
84-17                (2)  all diesel fuel purchased or received, showing the
84-18    name of the seller and date of each purchase or receipt;
84-19                (3)  all diesel fuel sold, distributed, or used,
84-20    showing the name of the purchaser and the date of the sale or use;
84-21    and
84-22                (4)  all diesel fuel lost by fire, theft, or [other]
84-23    accident.
84-24          SECTION 2.37.  Section 153.222(e), Tax Code, is amended to
84-25    read as follows:
84-26          (e)  A person who exports or loses by fire, theft, or [other]
84-27    accident 100 or more gallons of diesel fuel on which the tax has
 85-1    been paid, or who sells diesel fuel in any quantity to the United
 85-2    States for its exclusive use on which the tax has been paid, may
 85-3    file a claim for a refund of the net tax paid to the state as the
 85-4    comptroller may direct.
 85-5          SECTION 2.38.  Section 153.224(a), Tax Code, is amended to
 85-6    read as follows:
 85-7          (a)  Except as provided by this section, a claim for a refund
 85-8    must be filed with the comptroller within one year after the first
 85-9    day of the calendar month following the purchase, use, delivery,
85-10    export, or loss by fire, theft, or [other] accident of diesel fuel,
85-11    whichever period expires latest.
85-12          SECTION 2.39.  Sections 154.114(c) and (g), Tax Code, are
85-13    amended to read as follows:
85-14          (c)  The comptroller shall deliver [mail] the written notice
85-15    by personal service or by [certified] mail[, return receipt
85-16    requested,] to the permit holder's mailing address as it appears on
85-17    the comptroller's records.  Service by mail is complete when the
85-18    notice is deposited with [received, as evidenced by return receipt
85-19    from] the U.S. Postal Service.
85-20          (g)  If the comptroller suspends or revokes a permit, the
85-21    comptroller shall provide written notice of the suspension or
85-22    revocation, within a reasonable time, to each distributor and
85-23    wholesaler permit holder in the state.  A distributor or wholesaler
85-24    permit holder violates Section 154.1015(a) by selling or
85-25    distributing cigarettes to a person whose permit has been suspended
85-26    or revoked only after the distributor or wholesaler permit holder
85-27    receives written notice of the suspension or revocation from the
 86-1    comptroller.
 86-2          SECTION 2.40.  Section 154.210(a), Tax Code, is amended to
 86-3    read as follows:
 86-4          (a)  A distributor shall deliver to the comptroller, on or
 86-5    before the last [15th] day of each month, a report for the
 86-6    preceding month.
 86-7          SECTION 2.41.  Section 154.308(b), Tax Code, is amended to
 86-8    read as follows:
 86-9          (b)  On making a deficiency determination, the comptroller
86-10    shall notify the person by [certified] mail or personal service[,
86-11    return receipt requested].  Service by mail is complete when the
86-12    notice is deposited with [received, as evidenced by return receipt
86-13    from] the U.S. Postal Service.
86-14          SECTION 2.42.  Sections 154.309(b) and (d), Tax Code, are
86-15    amended to read as follows:
86-16          (b)  A written request for redetermination must be filed at
86-17    the office of the comptroller not later than the 30th [15th
86-18    working] day after the date notice of deficiency is issued
86-19    [received].  If a written request for redetermination is not filed
86-20    as required by this subsection, the determination is final.
86-21          (d)  The comptroller shall give notice of a redetermination
86-22    hearing by personal service or by [certified] mail[, return receipt
86-23    requested].  Service by mail is complete when the notice is
86-24    deposited with [received, as evidenced by return receipt from] the
86-25    U.S. Postal Service.
86-26          SECTION 2.43.  Section 155.059(c), Tax Code, is amended to
86-27    read as follows:
 87-1          (c)  The comptroller shall deliver [mail] the written notice
 87-2    by personal service or by [certified] mail[, return receipt
 87-3    requested,] to the permit holder's mailing address as it appears in
 87-4    the comptroller's records.  Service by mail is complete when the
 87-5    notice is deposited with [received, as evidenced by the return
 87-6    receipt from] the United States Postal Service.
 87-7          SECTION 2.44.  Section 155.103(b), Tax Code, is amended to
 87-8    read as follows:
 87-9          (b)  A manufacturer who sells tobacco products to a permit
87-10    holder in this state shall file with the comptroller, on or before
87-11    the last [15th] day of each month, a report showing the information
87-12    listed in Subsection (a) for the previous month.
87-13          SECTION 2.45.  Section 155.111(a), Tax Code, is amended to
87-14    read as follows:
87-15          (a)  A distributor shall file with the comptroller on or
87-16    before the last [30th] day of each month, a report for the
87-17    preceding month.
87-18          SECTION 2.46.  Section 155.185(b), Tax Code, is amended to
87-19    read as follows:
87-20          (b)  On making a deficiency determination, the comptroller
87-21    shall notify the person by personal service or by [certified]
87-22    mail[, return receipt requested].  Service by mail is complete when
87-23    the notice is deposited with [received, as evidenced by return
87-24    receipt from] the U.S. Postal Service.
87-25          SECTION 2.47.  Sections 155.186(b) and (d), Tax Code, are
87-26    amended to read as follows:
87-27          (b)  A written request for redetermination must be filed at
 88-1    the office of the comptroller not later than the 30th [15th
 88-2    working] day after the date notice of deficiency is issued
 88-3    [received].  If a written request for redetermination is not filed
 88-4    as required by this subsection, the determination is final.
 88-5          (d)  The comptroller shall give notice of a redetermination
 88-6    hearing by personal service or by [certified] mail[, return receipt
 88-7    requested].  Service by mail is complete when the notice is
 88-8    deposited with [received, as evidenced by return receipt from] the
 88-9    U.S. Postal Service.
88-10          SECTION 2.48.  Section 156.102, Tax Code, is amended to read
88-11    as follows:
88-12          Sec. 156.102.  EXCEPTION--RELIGIOUS, CHARITABLE, OR
88-13    EDUCATIONAL ORGANIZATION.  (a)  This chapter does not impose a tax
88-14    on a corporation or association that is organized and operated
88-15    exclusively for a religious, charitable, or educational purpose if
88-16    no part of the net earnings of the corporation or association inure
88-17    to the benefit of a private shareholder or individual.
88-18          (b)  For purposes of this section, an institution of higher
88-19    education is organized and operated exclusively for an educational
88-20    purpose only if the institution is defined as an institution of
88-21    higher education under any subdivision of Section 61.003, Education
88-22    Code.
88-23          SECTION 2.49.  Sections 156.103(a), (b), (c), and (d), Tax
88-24    Code, are amended to read as follows:
88-25          (a)  This [Subject to this section, this] chapter does not
88-26    impose a tax on:
88-27                (1)  the United States;
 89-1                (2)  a governmental entity of the United States[, this
 89-2    state, or an agency, institution, board, or commission of this
 89-3    state other than an institution of higher education;]
 89-4                [(2)  an officer or employee of a state governmental
 89-5    entity described by Subdivision (1) when traveling on or otherwise
 89-6    engaged in the course of official duties for the governmental
 89-7    entity]; or
 89-8                (3)  an officer or employee of a governmental entity of
 89-9    the United States when traveling on or otherwise engaged in the
89-10    course of official duties for the governmental entity [if the
89-11    governmental entity directly pays to the hotel the price for the
89-12    room].
89-13          (b)  This state, or an agency, institution, board, or
89-14    commission of this state other than an institution of higher
89-15    education [A governmental entity otherwise excepted under this
89-16    section] shall pay the tax imposed by this chapter and is entitled
89-17    to a refund of the amount of tax paid in accordance with Section
89-18    156.154.
89-19          (c)  A state officer or employee of a state governmental
89-20    entity described by Subsection (b) [(a)(2)] who is entitled to
89-21    reimbursement for the cost of lodging and for whom a special
89-22    provision or exception to the general rate of reimbursement under
89-23    the General Appropriations Act is not applicable shall pay the tax
89-24    imposed by [under] this chapter [as if it were imposed by this
89-25    chapter].  The state governmental entity with whom the person is
89-26    associated is entitled under Section 156.154 to a refund of the tax
89-27    paid.
 90-1          (d)  A state officer or employee of a state governmental
 90-2    entity described by Subsection (b) [(a)(2)] for whom a special
 90-3    provision or exception to the general rate of reimbursement under
 90-4    the General Appropriations Act applies and who is provided with
 90-5    photo identification verifying the identity and exempt status of
 90-6    the person is not required to pay the tax and is not entitled to a
 90-7    refund.  The photo identification of a state officer or employee
 90-8    described by this section may be modified for the purposes of this
 90-9    section.
90-10          SECTION 2.50.  Section 171.063, Tax Code, is amended by
90-11    amending Subsection (a) and adding Subsection (h) to read as
90-12    follows:
90-13          (a)  The following corporations are exempt from the franchise
90-14    tax:
90-15                (1)  a nonprofit corporation exempted from the federal
90-16    income tax under Section 501(c)(3), (4), (5), (6), (7), (8), (10),
90-17    or (19), Internal Revenue Code which in the case of a nonprofit
90-18    hospital means a hospital providing community benefits that include
90-19    charity care and government-sponsored indigent health care
90-20    [community benefits] as set forth in Subchapter D, Chapter 311,
90-21    Health and Safety Code; [Paragraph (A), (B), (C), (D), (E), (F), or
90-22    (G):]
90-23                      [(A)  charity care and government-sponsored
90-24    indigent health care are provided at a level which is reasonable in
90-25    relation to the community needs, as determined through the
90-26    community needs assessment, the available resources of the hospital
90-27    or hospital system, and the tax-exempt benefits received by the
 91-1    hospital or hospital system;]
 91-2                      [(B)  charity care and government-sponsored
 91-3    indigent health care are provided in an amount equal to at least
 91-4    four percent of the hospital's or hospital system's net patient
 91-5    revenue;]
 91-6                      [(C)  charity care and government-sponsored
 91-7    indigent health care are provided in an amount equal to at least
 91-8    100 percent of the hospital's or hospital system's tax-exempt
 91-9    benefits, excluding federal income tax;]
91-10                      [(D)  for tax periods beginning before January 1,
91-11    1996, charity care and community benefits are provided in a
91-12    combined amount equal to at least five percent of the hospital's
91-13    net patient revenue, provided that charity care and
91-14    government-sponsored indigent health care are provided in an amount
91-15    equal to at least three percent of net patient revenue;]
91-16                      [(E)  for tax periods beginning after December
91-17    31, 1995, charity care and community benefits are provided in a
91-18    combined amount equal to at least five percent of the hospital's or
91-19    hospital system's net patient revenue, provided that charity care
91-20    and government-sponsored indigent health care are provided in an
91-21    amount equal to at least four percent of net patient revenue;]
91-22                      [(F)  a nonprofit hospital that has been
91-23    designated as a disproportionate share hospital under the state
91-24    Medicaid program in the current year or in either of the previous
91-25    two fiscal years is considered to have provided a reasonable amount
91-26    of charity care and government-sponsored indigent health care and
91-27    is considered in compliance with the standards provided by this
 92-1    subsection; or]
 92-2                      [(G)  a hospital operated on a nonprofit basis
 92-3    that is located in a county with a population of less than 50,000
 92-4    and in which the entire county or the population of the entire
 92-5    county has been designated as a health professionals shortage area
 92-6    is considered in compliance with the standards provided by this
 92-7    subsection;]
 92-8                (2)  a corporation exempted under Section 501(c)(2) or
 92-9    (25), Internal Revenue Code, if the corporation or corporations for
92-10    which it holds title to property is either exempt from or not
92-11    subject to the franchise tax; and
92-12                (3)  a corporation exempted from federal income tax
92-13    under Section 501(c)(16), Internal Revenue Code[; and]
92-14                [(4)  a nonprofit corporation exempted from the federal
92-15    income tax under Section 501(c)(3), Internal Revenue Code, that
92-16    does not receive any payment for providing health care services to
92-17    inpatients or outpatients from any source including but not limited
92-18    to the patient or person legally obligated to support the patient,
92-19    third-party payors, Medicare, Medicaid, or any other state or local
92-20    indigent care program.  Payment for providing health care services
92-21    does not include charitable donations, legacies, bequests, or
92-22    grants or payments for research.]
92-23          [For purposes of satisfying Paragraph (E) of Subdivision (1),
92-24    a hospital or hospital system may not change its existing fiscal
92-25    year unless the hospital or hospital system changes its ownership
92-26    or corporate structure as a result of a sale or merger.]
92-27          [For purposes of this subsection, a hospital that satisfies
 93-1    Paragraph (A), (F), or (G) of Subdivision (1) shall be excluded in
 93-2    determining a hospital system's compliance with the standards
 93-3    provided by Paragraph (B), (C), (D), or (E) of Subdivision (1).]
 93-4          [For purposes of this subsection, the terms "charity care,"
 93-5    "government-sponsored indigent health care," "health care
 93-6    organization," "hospital system," "net patient revenue," "nonprofit
 93-7    hospital," and "tax-exempt benefits" have the meanings set forth in
 93-8    Sections 311.031 and 311.042, Health and Safety Code.  A
 93-9    determination of the amount of community benefits and charity care
93-10    and government-sponsored indigent health care provided by a
93-11    hospital or hospital system and the hospital's or hospital system's
93-12    compliance with the requirements of Section 311.045, Health and
93-13    Safety Code, shall be based on the most recently completed and
93-14    audited prior fiscal year of the hospital or hospital system.]
93-15          [A requirement that a nonprofit hospital provide charity care
93-16    and community benefits under this subsection may be satisfied by a
93-17    donation of money to the Texas Healthy Kids Corporation established
93-18    by Chapter 109, Health and Safety Code, provided that:]
93-19                [(1)  the money is donated to be used for a purpose
93-20    described by Section 109.033(c), Health and Safety Code; and]
93-21                [(2)  not more than 10 percent of the charity care
93-22    required under any provision of this subsection may be satisfied by
93-23    the donation.]
93-24          [The providing of charity care and government-sponsored
93-25    indigent health care in accordance with Paragraph (A) of
93-26    Subdivision (1) shall be guided by the prudent business judgment of
93-27    the hospital which will ultimately determine the appropriate level
 94-1    of charity care and government-sponsored indigent health care based
 94-2    on the community needs, the available resources of the hospital,
 94-3    the tax-exempt benefits received by the hospital, and other factors
 94-4    that may be unique to the hospital, such as the hospital's volume
 94-5    of Medicare and Medicaid patients.  These criteria shall not be
 94-6    determinative factors, but shall be guidelines contributing to the
 94-7    hospital's decision along with other factors which may be unique to
 94-8    the hospital.  The formulas contained in Paragraphs (B), (C), (D),
 94-9    and (E) of Subdivision (1) shall also not be considered
94-10    determinative of a reasonable amount of charity care and
94-11    government-sponsored indigent health care.]
94-12          [The requirements of this subsection shall not apply to the
94-13    extent a hospital or hospital system demonstrates that reductions
94-14    in the amount of community benefits, charity care, and
94-15    government-sponsored indigent health care are necessary to maintain
94-16    financial reserves at a level required by a bond  covenant, are
94-17    necessary to prevent the hospital or hospital system from
94-18    endangering its ability to continue operations, or if the hospital,
94-19    as a result of a natural or other disaster, is required
94-20    substantially to curtail its operations.]
94-21          [In any fiscal year that a hospital or hospital system,
94-22    through unintended miscalculation, fails to meet any of the
94-23    standards in Subdivision (1), the hospital or hospital system shall
94-24    not lose its tax-exempt status without the opportunity to cure the
94-25    miscalculation in the fiscal year following the fiscal year the
94-26    failure is discovered by both meeting one of the standards and
94-27    providing an additional amount of charity care and
 95-1    government-sponsored indigent health care that is equal to the
 95-2    shortfall from the previous fiscal year.  A hospital or hospital
 95-3    system may apply this provision only once every five years].
 95-4          (h)  A requirement that a nonprofit hospital provide charity
 95-5    care and community benefits under Subsection (a)(1) may be
 95-6    satisfied by a donation of money to the Texas Healthy Kids
 95-7    Corporation established by Chapter 109, Health and Safety Code, if:
 95-8                (1)  the money is donated to be used for a purpose
 95-9    described by Section 109.033(c), Health and Safety Code; and
95-10                (2)  not more than 10 percent of the charity care
95-11    required under any provision of Section 311.045, Health and Safety
95-12    Code, may be satisfied by the donation.
95-13          SECTION 2.51.  Sections 171.063(c) and (d), Tax Code, are
95-14    amended to read as follows:
95-15          (c)  A corporation's exemption under Subsection (b) of this
95-16    section is established by furnishing the comptroller with a copy of
95-17    the Internal Revenue Service's letter of exemption issued to the
95-18    corporation.  [The copy of the letter must be filed with the
95-19    comptroller within 15 months after the day that is the last day of
95-20    a calendar month and that is nearest to the date of the
95-21    corporation's charter or certificate of authority.]
95-22          (d)  If the Internal Revenue Service has not timely issued to
95-23    a corporation a letter of exemption, evidence establishing the
95-24    corporation's provisional exemption under this section is
95-25    sufficient if the corporation timely files with the comptroller
95-26    [within the 15-month period established by Subsection (c) of this
95-27    section] evidence that the corporation has applied in good faith
 96-1    for the federal tax exemption.  The evidence must be filed not
 96-2    later than the 15th month after the day that is the last day of a
 96-3    calendar month and that is nearest to the date of the corporation's
 96-4    charter or certificate of authority.
 96-5          SECTION 2.52.  The heading of Subchapter C, Chapter 171, Tax
 96-6    Code, is amended to read as follows:
 96-7              SUBCHAPTER C.  DETERMINATION OF TAXABLE CAPITAL
 96-8         AND TAXABLE EARNED SURPLUS; ALLOCATION AND APPORTIONMENT
 96-9          SECTION 2.53.  The heading of Section 171.1015, Tax Code, is
96-10    amended to read as follows:
96-11          Sec. 171.1015.  REDUCTION OF TAXABLE CAPITAL OR TAXABLE
96-12    EARNED SURPLUS FOR INVESTMENT IN AN ENTERPRISE ZONE.
96-13          SECTION 2.54.  Section 171.1015(f)(1), Tax Code, is amended
96-14    to read as follows:
96-15                (1)  "Enterprise project" means a person designated by
96-16    the Texas Department of Economic Development [Commerce] as an
96-17    enterprise project under Chapter 2303, Government Code.
96-18          SECTION 2.55.  Section 171.1015(g), Tax Code, is amended to
96-19    read as follows:
96-20          (g)  Only qualified businesses that have been certified as
96-21    eligible for a tax deduction under this section by the Texas
96-22    Department of Economic Development [Commerce] to the comptroller
96-23    and the Legislative Budget Board are entitled to the tax deduction.
96-24          SECTION 2.56.  The heading of Section 171.1016, Tax Code, is
96-25    amended to read as follows:
96-26          Sec. 171.1016.  REDUCTION OF TAXABLE CAPITAL OR TAXABLE
96-27    EARNED SURPLUS FOR INVESTMENT IN A READJUSTMENT ZONE.
 97-1          SECTION 2.57.  Section 171.1016(f)(1), Tax Code, is amended
 97-2    to read as follows:
 97-3                (1)  "Defense readjustment project" means a person
 97-4    designated by the Texas Department of Economic Development
 97-5    [Commerce] as a defense readjustment project under Chapter 2310,
 97-6    Government Code.
 97-7          SECTION 2.58.  Section 171.1016(g), Tax Code, is amended to
 97-8    read as follows:
 97-9          (g)  Only qualified businesses that have been certified as
97-10    eligible for a tax deduction under this section by the Texas
97-11    Department of Economic Development [Commerce] to the comptroller
97-12    and the Legislative Budget Board are entitled to the tax deduction.
97-13          SECTION 2.59.  The heading of Section 171.107, Tax Code, is
97-14    amended to read as follows:
97-15          Sec. 171.107.  DEDUCTION OF COST OF SOLAR ENERGY DEVICE FROM
97-16    TAXABLE CAPITAL OR TAXABLE EARNED SURPLUS APPORTIONED TO THIS
97-17    STATE.
97-18          SECTION 2.60.  Section 171.110, Tax Code, is amended by
97-19    adding Subsections (i) and (j) to read as follows:
97-20          (i)  For purposes of this section, any person designated as
97-21    an officer is presumed to be an officer if that person:
97-22                (1)  holds an office created by the board of directors
97-23    or under the corporate charter or bylaws; and
97-24                (2)  has legal authority to bind the corporation with
97-25    third parties by executing contracts or other legal documents.
97-26          (j)  A corporation may rebut the presumption described in
97-27    Subsection (i) that a person is an officer if it conclusively
 98-1    shows, through the person's job description or other documentation,
 98-2    that the person does not participate or have authority to
 98-3    participate in significant policy making aspects of the corporate
 98-4    operations.
 98-5          SECTION 2.61.  Section 171.501(a), Tax Code, is amended to
 98-6    read as follows:
 98-7          (a)  A corporation that has been certified a qualified
 98-8    business as provided by Chapter 2303, Government Code may apply for
 98-9    and be granted a refund of franchise tax paid with an initial or
98-10    annual report if the governing body or bodies certify to the Texas
98-11    Department of Economic Development [Commerce] that the business has
98-12    created 10 or more new jobs in its enterprise zone held by
98-13    qualified employees during the calendar year that contains the end
98-14    of the accounting period on which the report is based.  The Texas
98-15    Department of Economic Development [Commerce] shall certify
98-16    eligibility for any refund to the comptroller.
98-17          SECTION 2.62.  The heading of Subchapter C, Chapter 183, Tax
98-18    Code, is amended to read as follows:
98-19            SUBCHAPTER C.  MIXED BEVERAGE TAX CLEARANCE [FUND]
98-20          SECTION 2.63.  The heading of Section 183.051, Tax Code, is
98-21    amended to read as follows:
98-22          Sec. 183.051.  MIXED BEVERAGE TAX CLEARANCE [FUND].
98-23          SECTION 2.64.  Section 183.051(b), Tax Code, is amended to
98-24    read as follows:
98-25          (b)  The comptroller shall issue to each county described in
98-26    Subsection (a) a warrant drawn on the general revenue [mixed
98-27    beverage tax clearance] fund in an [the] amount appropriated by the
 99-1    legislature that may not be greater than [of] 10.7143 percent of
 99-2    receipts from permittees within the county during the quarter and
 99-3    shall issue to each incorporated municipality described in
 99-4    Subsection (a) a warrant drawn on that fund in an [the] amount
 99-5    appropriated by the legislature that may not be greater than [of]
 99-6    10.7143 percent of receipts from permittees within the incorporated
 99-7    municipality during the quarter.  [The remainder of the receipts
 99-8    for the quarter and all interest earned on that fund shall be
 99-9    transferred to the general revenue fund.]
99-10          SECTION 2.65.  Section 191.085(b), Tax Code, is amended to
99-11    read as follows:
99-12          (b)  The person shall keep the record open for four [two]
99-13    years for inspection by the comptroller or the attorney general.
99-14          SECTION 2.66.  Section 203.051(a), Tax Code, is amended to
99-15    read as follows:
99-16          (a)  A producer shall keep a complete record of all sulphur
99-17    he produces in this state.  A producer may destroy a record
99-18    required by this section four [three] years after the last entry in
99-19    the record.
99-20          SECTION 2.67.  Section 321.102, Tax Code, is amended by
99-21    adding Subsections (e), (f), and (g) to read as follows:
99-22          (e)  If as a result of the imposition or increase in a sales
99-23    and use tax by a municipality in which there is located all or part
99-24    of a local governmental entity that has adopted a sales and use tax
99-25    or as a result of the annexation by a municipality of all or part
99-26    of the territory in a local governmental entity that has adopted a
99-27    sales and use tax the overlapping local sales and use taxes in the
 100-1   area will exceed two percent, the entity's sales and use tax is
 100-2   automatically reduced in that area to a rate that when added to the
 100-3   combined rate of local sales and use taxes will equal two percent.
 100-4         (f)  If an entity's rate is reduced in accordance with
 100-5   Subsection (e), the comptroller shall withhold from the
 100-6   municipality's monthly sales and use tax allocation an amount equal
 100-7   to the amount that would have been collected by the entity had the
 100-8   municipality not imposed or increased its sales and use tax or
 100-9   annexed the area in the entity less amounts that the entity
100-10   collects following the municipality's levy of or increase in its
100-11   sales and use tax or annexation of the area in the entity.  The
100-12   comptroller shall withhold and pay the amount withheld to the
100-13   entity under policies or procedures that the comptroller considers
100-14   reasonable.
100-15         (g)  A transit authority is not a local governmental entity
100-16   for the purposes of Subsections (e) and (f).
100-17         SECTION 2.68.  Section 322.302, Tax Code, is amended to read
100-18   as follows:
100-19         Sec. 322.302.  DISTRIBUTION OF TRUST FUNDS.  At [(a) Except
100-20   as provided by Subsection (b) of this section, at] least quarterly
100-21   [twice] during each state fiscal year and as often as feasible, the
100-22   comptroller shall send to the person at each taxing entity who
100-23   performs the function of entity treasurer, payable to the taxing
100-24   entity, the entity's share of the taxes collected by the
100-25   comptroller under this chapter.
100-26         [(b)  The comptroller shall make payments required by
100-27   Subsection (a) of this section to entities created under Chapter
 101-1   451 or 452, Transportation Code, quarterly each fiscal year as soon
 101-2   as practicable after the end of each quarter.]
 101-3         SECTION 2.69.  Section 323.102(c), Tax Code, is amended to
 101-4   read as follows:
 101-5         (c)  A tax imposed under Section 323.105 of this code or
 101-6   Chapter 326, Local Government Code, takes effect on the first day
 101-7   of the first calendar quarter after the expiration of the first
 101-8   complete calendar quarter occurring after the date on which the
 101-9   comptroller receives a notice of the action as required by Section
101-10   323.405(b).
101-11         SECTION 2.70.  Section 323.105(e), Tax Code, is amended to
101-12   read as follows:
101-13         (e)  The comptroller shall remit to the county amounts
101-14   collected at the rate imposed under this section as part of the
101-15   regular allocation of county tax revenue collected by the
101-16   comptroller if the district is composed of the entire county.  The
101-17   comptroller [county] shall, if the district is composed of an area
101-18   less than the entire county, remit that amount to the district.
101-19   Retailers may not be required to use the allocation and reporting
101-20   procedures in the collection of taxes under this section different
101-21   from the procedures that retailers use in the collection of other
101-22   sales and use taxes under this chapter.  An item, transaction, or
101-23   service that is taxable in a county under a sales or use tax
101-24   authorized by another section of this chapter is taxable under this
101-25   section.  An item, transaction, or service that is not taxable in a
101-26   county under a sales or use tax authorized by another section of
101-27   this chapter is not taxable under this section.
 102-1         SECTION 2.71.  Section 351.001, Tax Code, is amended by
 102-2   adding Subdivision (10) to read as follows:
 102-3               (10)  "Revenue" includes any interest derived from the
 102-4   revenue.
 102-5         SECTION 2.72.  Section 351.006, Tax Code, is amended to read
 102-6   as follows:
 102-7         Sec. 351.006.  EXEMPTION.  (a)  A United States governmental
 102-8   entity described in Section 156.103(a) is exempt from the payment
 102-9   of tax authorized by this chapter  [excepted from the tax imposed
102-10   by Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the
102-11   tax imposed by this chapter but is entitled to a refund of the tax
102-12   paid].
102-13         (b)  A state governmental entity described in Section
102-14   156.103(b) shall pay the tax imposed by this chapter but is
102-15   entitled to a refund of the tax paid.
102-16         (c)  A person who is described by Section 156.103(d) is
102-17   exempt from the payment of the tax authorized by this chapter.
102-18         (d) [(c)]  A person who is described by Section 156.103(c)
102-19   shall pay the tax imposed by this chapter but the state
102-20   governmental entity with whom the person is associated is entitled
102-21   to a refund of the tax paid.
102-22         (e) [(d)]  To receive a refund of tax paid under this
102-23   chapter, the governmental entity entitled to the refund must file a
102-24   refund claim on a form provided by the municipality and containing
102-25   the information required by the municipality.  The comptroller by
102-26   rule shall prescribe the form that must be used and the information
102-27   that must be provided.
 103-1         (f) [(e)]  A governmental entity may file a refund claim with
 103-2   the municipality under this chapter only for each calendar quarter
 103-3   for all reimbursements accrued during that quarter.  The
 103-4   municipality may adopt an ordinance to enforce this section.
 103-5         SECTION 2.73.  Subchapter B, Chapter 351, Tax Code, is
 103-6   amended by adding Section 351.107 to read as follows:
 103-7         Sec. 351.107.  RECORDS.  A municipality shall maintain a
 103-8   record that accurately identifies the receipt and expenditure of
 103-9   all revenue derived from the tax imposed under this chapter.
103-10         SECTION 2.74.  Section 352.007, Tax Code, is amended to read
103-11   as follows:
103-12         Sec. 352.007.  EXEMPTION.  (a)  A United States governmental
103-13   entity described in Section 156.103(a) is exempt from the payment
103-14   of tax authorized by this chapter [excepted from the tax imposed by
103-15   Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the tax
103-16   imposed by this chapter but is entitled to a refund of the tax
103-17   paid].
103-18         (b)  A state governmental entity subject to the tax imposed
103-19   by Chapter 156 under Section 156.103(b) shall pay the tax imposed
103-20   by this chapter but is entitled to a refund of the tax paid.
103-21         (c)  A person who is described by Section 156.103(d) is
103-22   exempt from the payment of the tax authorized by this chapter.
103-23         (d) [(c)]  A person who is described by Section 156.103(c)
103-24   shall pay the tax imposed by this chapter but the state
103-25   governmental entity with whom the person is associated is entitled
103-26   to a refund of the tax paid.
103-27         (e) [(d)]  To receive a refund of a tax paid under this
 104-1   chapter, the governmental entity entitled to the refund must file a
 104-2   refund claim on a form provided by the county and containing the
 104-3   information required by the county.  The comptroller by rule shall
 104-4   prescribe the form that must be used and the information that must
 104-5   be provided.
 104-6         (f) [(e)]  A governmental entity may file a refund claim with
 104-7   the county under this chapter only for each calendar quarter for
 104-8   all reimbursements accrued during that quarter.  The county may
 104-9   adopt a resolution to enforce this section.
104-10         SECTION 2.75.  Section 4B(e), Development Corporation Act of
104-11   1979 (Article 5190.6, Vernon's Texas Civil Statutes), as amended by
104-12   Section 3, Chapter 1022, and Section 12, Chapter 1031, Acts of the
104-13   73rd Legislature, Regular Session, 1993, is reenacted to read as
104-14   follows:
104-15         (e)  The rate of a tax adopted under this section must be
104-16   one-eighth, one-fourth, three-eighths, or one-half of one percent.
104-17   The ballot proposition at the election held to adopt the tax must
104-18   specify the rate of the tax to be adopted.  A corporation that
104-19   holds an election to reduce a tax imposed under Section 4A of this
104-20   Act may in a separate proposition on the same ballot adopt a tax
104-21   under this section.  If an eligible city adopts the tax, a tax is
104-22   imposed on the receipts from the sale at retail of taxable items
104-23   within the eligible city at the rate approved at the election.
104-24   There is also imposed an excise tax on the use, storage, or other
104-25   consumption within the eligible city of tangible personal property
104-26   purchased, leased, or rented from a retailer during the period that
104-27   the tax is effective within the eligible city.  The rate of the
 105-1   excise tax is the same as the rate of the sales tax portion of the
 105-2   tax and is applied to the sale price of the tangible personal
 105-3   property.
 105-4          ARTICLE 3.  APPROPRIATIONS AND PROVISIONS RELATED TO
 105-5                             APPROPRIATIONS
 105-6         SECTION 3.01.  (a)  In addition to other amounts appropriated
 105-7   by the 76th Legislature, Regular Session, 1999, for the biennium
 105-8   beginning September 1, 1999, and subject to the restrictions
 105-9   provided under Articles II and IX, House Bill No. 1, Acts of the
105-10   76th Legislature, Regular Session, 1999 (the General Appropriations
105-11   Act), specifically including Rider 38, page II-66, House Bill No.
105-12   1, the Texas Department of Human Services is appropriated $12
105-13   million from the general revenue fund for fiscal year 2000 for
105-14   reimbursement expenses related to increases in reimbursement rates
105-15   for nursing homes under the medical assistance program and $12
105-16   million from the general revenue fund for fiscal year 2001 for the
105-17   same purpose.  Any unexpended balance of the appropriation made by
105-18   this section for fiscal year 2000 is reappropriated to the
105-19   department for fiscal year 2001 for the same purpose.
105-20         (b)  The Texas Department of Human Services is authorized to
105-21   transfer the appropriations made by this section to the appropriate
105-22   agency or the appropriate strategy item.
105-23         (c)  The appropriations made by this section are contingent
105-24   on the comptroller's providing of notice to the governor and the
105-25   Legislative Budget Board that the comptroller has made a finding,
105-26   based on a revenue estimate made before or after the adjournment
105-27   sine die of the 76th Legislature, Regular Session, that sufficient
 106-1   revenue is estimated to be available from the general revenue fund
 106-2   to provide for the appropriations made by this section.
 106-3         SECTION 3.02.  (a)   In addition to other amounts
 106-4   appropriated by the 76th Legislature, Regular Session, 1999, for
 106-5   the biennium beginning September 1, 1999, and subject to the
 106-6   restrictions provided under Articles II and IX, House Bill No. 1,
 106-7   Acts of the 76th Legislature, Regular Session, 1999 (the General
 106-8   Appropriations Act), the Texas Department of Human Services is
 106-9   appropriated $6.6 million from the general revenue fund for fiscal
106-10   year 2000 for expenses related to increases in the personal needs
106-11   allowance provided under Section 32.024, Human Resources Code, for
106-12   a person who receives medical assistance and is a resident of a
106-13   convalescent or nursing home or related institution licensed under
106-14   Chapter 242, Health and Safety Code, a personal care facility, an
106-15   ICF-MR facility, or another similar long-term care facility and
106-16   $6.6 million from the general revenue fund for fiscal year 2001 for
106-17   the same purpose.  Any unexpended balance of the appropriation made
106-18   by this section for fiscal year 2000 is reappropriated to the
106-19   department for fiscal year 2001 for the same purpose.
106-20         (b)  The Texas Department of Human Services is authorized to
106-21   transfer the appropriations made by this section to the appropriate
106-22   agency or the appropriate strategy item.
106-23         (c)  The appropriations made by this section are contingent
106-24   on the comptroller's providing of notice to the governor and the
106-25   Legislative Budget Board that the comptroller has made a finding,
106-26   based on a revenue estimate made before or after the adjournment
106-27   sine die of the 76th Legislature, Regular Session, that sufficient
 107-1   revenue is estimated to be available from the general revenue fund
 107-2   to provide for the appropriations made by this section.
 107-3         SECTION 3.03.  (a)  This section applies only to an Act of
 107-4   the 76th Legislature, Regular Session, that contains a provision
 107-5   stating that the Act, or a provision of the Act, takes effect only
 107-6   if a specific appropriation for the implementation of the Act is
 107-7   provided in House Bill No. 1, Acts of the 76th Legislature, Regular
 107-8   Session, 1999 (the General Appropriations Act).
 107-9         (b)  In accordance with the terms of the provision described
107-10   by Subsection (a) of this section, the following Acts take effect:
107-11               (1)  House Bill Nos. 424, 713, 714, 820, 1172, 1188,
107-12   1341, 1652, 1833, 1939, 2085, 2145, 2148, 2202, 2307, 2573, 2641,
107-13   2719, 2992, 3174, 3504, 3517, and 3778; and
107-14               (2)  Senate Bill Nos. 526, 565, 666, 708, 1287, 1423,
107-15   1651, and 1690.
107-16         (c)  In accordance with the terms of the provision described
107-17   by Subsection (a) of this section, the following Acts do not take
107-18   effect:
107-19               (1)  House Bill No. 1933; and
107-20               (2)  Senate Bill Nos. 313, 840, and 1650.
107-21         (d)  The following Acts take effect notwithstanding the
107-22   provision described by Subsection (a)  of this section:
107-23               (1)  House Bill Nos. 64, 153, 628, 676, 1018, 1140,
107-24   1223, 1444, 1860, 2631, 2815, 2896, 2978, 3050, 3079, 3304, and
107-25   3757; and
107-26               (2)  Senate Bill Nos. 229, 913 and 1613.
107-27         (e)  The Acts identified in this section take effect, or do
 108-1   not take effect, as provided by this section, notwithstanding the
 108-2   provision described by Subsection (a) of this section.
 108-3         (f)  If a provision described by Subsection (a) of this
 108-4   section is contained in a bill that is not listed in Subsection
 108-5   (b), (c), or (d) of this section, the provision is ineffective, and
 108-6   the bill takes effect in accordance with its terms notwithstanding
 108-7   that provision, regardless of the relative dates of enactment.
 108-8                  ARTICLE 4.  MISCELLANEOUS PROVISIONS
 108-9         SECTION 4.01.  The following are repealed:
108-10               (1)  Section 66.03, Education Code;
108-11               (2)  Sections 481.0841, 608.004, and 608.012,
108-12   Government Code; and
108-13               (3)  Sections 151.318(g) and (p) and 152.062(d), Tax
108-14   Code.
108-15         SECTION 4.02.  (a)  The comptroller may adopt rules and take
108-16   other actions before January 1, 2000, that the comptroller
108-17   considers necessary or appropriate to prepare for Sections 1.01,
108-18   1.02, 1.07, 1.15-1.17, 1.27, and 1.29 of this Act to take effect.
108-19   This subsection does not authorize the comptroller to adopt any
108-20   rule or take any action that Sections 1.01, 1.02, 1.07, 1.15-1.17,
108-21   1.27, and 1.29 of this Act would not authorize the comptroller to
108-22   adopt or take if those sections took effect immediately.
108-23         (b)  A state agency may take before January 1, 2000, the
108-24   actions that the agency considers necessary or appropriate to
108-25   prepare for Sections 1.01, 1.02, 1.07, 1.15-1.17, 1.27, and 1.29 of
108-26   this Act to take effect.  This subsection does not authorize a
108-27   state agency to take any action that Sections 1.01, 1.02, 1.07,
 109-1   1.15-1.17, 1.27, and 1.29 of this Act would not authorize the
 109-2   agency to take if those sections took effect immediately.  In this
 109-3   subsection, "state agency" does not include the comptroller.
 109-4         SECTION 4.03.  Section 51.703, Government Code, as added by
 109-5   this Act, applies only to filing fees for civil cases filed and to
 109-6   costs on convictions occurring on or after the effective date of
 109-7   this Act.
 109-8         SECTION 4.04.  The repeal of Section 608.004, Government
 109-9   Code, by Section 4.01(2) of this Act is intended only to repeal a
109-10   redundant law.  The repeal does not imply that on and after the
109-11   effective date of Section 4.01 of this Act:
109-12               (1)  the amount an officer or employee authorizes to be
109-13   deducted from the officer's or employee's compensation for the
109-14   purchase of savings bonds may not actually be withheld and deducted
109-15   as authorized by Section 608.003, Government Code; or
109-16               (2)  the amount of an officer's or employee's
109-17   compensation remaining after all authorized deductions have been
109-18   made may not be paid to the officer or employee.
109-19         SECTION 4.05.  The changes in law made by Sections 1.30 and
109-20   1.31 of this Act apply only to a major consulting services contract
109-21   that is entered into, renewed, amended, or extended on and after
109-22   the effective date of those sections.  A major consulting services
109-23   contract that is entered into, renewed, amended, or extended before
109-24   that date is governed by the law in effect on the date the contract
109-25   is entered into, renewed, amended, or extended, and the former law
109-26   is continued in effect for that purpose.
109-27         SECTION 4.06.  The comptroller may adopt rules and take other
 110-1   actions before September 1, 1999, that the comptroller considers
 110-2   necessary or appropriate to prepare for Sections 1.13, 1.30, 1.31,
 110-3   and 4.05 of this Act to take effect.  This section does not
 110-4   authorize the comptroller to adopt any rule or take any action that
 110-5   Sections 1.13, 1.30, 1.31, and 4.05 of this Act would not authorize
 110-6   the comptroller to adopt or take if those sections took effect
 110-7   immediately.
 110-8         SECTION 4.07.  A tax to which Section 2.69 of this Act
 110-9   applies that is not being collected on the effective date of this
110-10   Act and that was adopted at an election held before January 1,
110-11   1999, takes effect on the first day of the first calendar quarter
110-12   that begins after the effective date of this Act.
110-13         SECTION 4.08.  Each change in law made to the following
110-14   provisions by this Act is a clarification of existing law and does
110-15   not imply that existing law may be construed as inconsistent with
110-16   the law as amended by this Act:
110-17               (1)  Section 102.075, Code of Criminal Procedure;
110-18               (2)  Section 9, Texas State College and University
110-19   Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
110-20   Texas Insurance Code);
110-21               (3)  Section 11, Texas Public School Employees Group
110-22   Insurance Act (Article 3.50-4, Insurance Code);
110-23               (4)  Section 326.029, Local Government Code;
110-24               (5)  Section 326.092, Local Government Code;
110-25               (6)  Section 151.317, Tax Code;
110-26               (7)  Section 151.318, Tax Code;
110-27               (8)  Section 151.3185, Tax Code;
 111-1               (9)  Section 151.350(d), Tax Code;
 111-2               (10)  Section 152.002, Tax Code;
 111-3               (11)  Section 152.041, Tax Code;
 111-4               (12)  Section 153.117, Tax Code;
 111-5               (13)  Section 153.119, Tax Code;
 111-6               (14)  Section 153.206, Tax Code;
 111-7               (15)  Section 153.219, Tax Code;
 111-8               (16)  Section 171.063, Tax Code;
 111-9               (17)  the heading of Subchapter C, Chapter 171, Tax
111-10   Code;
111-11               (18)  the headings of Sections 171.1015, 171.1016, and
111-12   171.107, Tax Code;
111-13               (19)  Section 171.110, Tax Code;
111-14               (20)  Section 191.085, Tax Code; and
111-15               (21)  Section 203.051, Tax Code.
111-16         SECTION 4.09.  The comptroller of public accounts may adopt
111-17   rules and take other actions before October 1, 1999, as the
111-18   comptroller deems necessary or advisable to prepare for the taking
111-19   effect of Article 2 of this Act.
111-20         SECTION 4.10.  (a)  Except as provided by Subsections (b),
111-21   (c), and (d) of this section, Article 2 of this Act takes effect
111-22   October 1, 1999.
111-23         (b)  Section 2.05 of this Act takes effect January 1, 2000,
111-24   and applies to reporting periods beginning on or after that date.
111-25         (c)  Sections 2.50 through 2.61 of this Act take effect
111-26   January 1, 2000, and apply to a report originally due on or after
111-27   that date.
 112-1         (d)  Sections 2.67, 2.69, 4.07, and 4.09 of this Act take
 112-2   effect on the earliest date on which they may take effect under
 112-3   Section 39, Article III, Texas Constitution.
 112-4         SECTION 4.11.  Section 351.107, Tax Code, as added by this
 112-5   Act, applies only to an expenditure made on or after the effective
 112-6   date of Article 2 of this Act, without regard to whether the
 112-7   expenditure is from revenue collected under Chapter 351, Tax Code,
 112-8   before, on, or after that date.  An expenditure made before the
 112-9   effective date of Article 2 of this Act is governed by the law
112-10   applicable to the action immediately before the effective date of
112-11   that article, and that law is continued in effect for that purpose.
112-12         SECTION 4.12.  (a)  This Act takes effect immediately except
112-13   that:
112-14               (1)  Sections 1.13, 1.30, 1.31, and 4.05 of this Act
112-15   take effect September 1, 1999;
112-16               (2)  Sections 1.01, 1.02, 1.07, 1.15-1.17, 1.27, and
112-17   1.29 of this Act take effect January 1, 2000;
112-18               (3)  Sections 1.04, 1.06, and 4.01(1) of this Act take
112-19   effect only if the constitutional amendment proposed by H.J.R. No.
112-20   58, 76th Legislature, Regular Session, 1999, is approved by the
112-21   voters; and
112-22               (4)  Article 2 of this Act takes effect as provided by
112-23   Section 4.10 of this Act.
112-24         (b)  If H.J.R. No. 58, 76th Legislature, Regular Session,
112-25   1999, is not approved by the voters, Sections 1.04, 1.06, and
112-26   4.01(1) of this Act do not take effect.
112-27         SECTION 4.13.  The importance of this legislation and the
 113-1   crowded condition of the calendars in both houses create an
 113-2   emergency and an imperative public necessity that the
 113-3   constitutional rule requiring bills to be read on three several
 113-4   days in each house be suspended, and this rule is hereby suspended,
 113-5   and that this Act take effect and be in force according to its
 113-6   terms, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3211 was passed by the House on April
         30, 1999, by the following vote:  Yeas 138, Nays 0, 2 present, not
         voting; that the House refused to concur in Senate amendments to
         H.B. No. 3211 on May 27, 1999, and requested the appointment of a
         conference committee to consider the differences between the two
         houses; and that the House adopted the conference committee report
         on H.B. No. 3211 on May 30, 1999, by the following vote:  Yeas 145,
         Nays 0, 2 present, not voting; and that the House adopted H.C.R.
         No. 319 authorizing certain corrections in H.B. No. 3211 on May 31,
         1999, by a non-record vote; passed subject to the provisions of
         Article III, Section 49a, of the Constitution of the State of
         Texas.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3211 was passed by the Senate, with
         amendments, on May 19, 1999, by the following vote:  Yeas 29, Nays
         0; at the request of the House, the Senate appointed a conference
         committee to consider the differences between the two houses; and
         that the Senate adopted the conference committee report on H.B. No.
         3211 on May 30, 1999, by the following vote:  Yeas 30, Nays 0; and
         that the Senate adopted H.C.R. No. 319 authorizing certain
         corrections in H.B. No. 3211 on May 31, 1999, by a viva-voce vote;
         passed subject to the provisions of Article  III, Section  49a,  of
         the Constitution of the State of Texas.
                                             _______________________________
                                                 Secretary of the Senate
               I certify that the amounts appropriated in the herein H.B.
         No. 3211, Regular Session of the 76th Legislature, are within
         amounts estimated to be available in the affected fund.
                                          Certified_________________________
                                          __________________________________
                                          Comptroller of Public Accounts
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor