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