R E S O L U T I O N
 1-1           BE IT RESOLVED by the House of Representatives of the State
 1-2     of Texas, 76th Legislature, Regular Session, 1999, That House Rule
 1-3     13, Section 9(a), be suspended in part, as provided by House Rule
 1-4     13, Section 9(f), to enable the conference committee appointed to
 1-5     resolve the differences on House Bill No. 3211, relating to state
 1-6     fiscal matters, to consider and take action on the following
 1-7     specific matters:
 1-8           (1)  House Rule 13, Section 9(a)(4), is suspended to permit
 1-9     the committee to add additional text not included in either the
1-10     house or senate version of the bill, consisting of a new article of
1-11     the bill, to read as follows:
1-12           ARTICLE 2.  TECHNICAL CHANGES REGARDING TAXES AND FEES
1-13           SECTION 2.01.  Subsection (g), Article 102.075, Code of
1-14     Criminal Procedure, is amended to read as follows:
1-15           (g)  A municipality or county may retain 10 percent of the
1-16     money collected under this article as a service fee for the
1-17     collection if the municipality or county remits the funds to the
1-18     comptroller within the  period prescribed in Subsection (f).  The
1-19     municipality or county may retain any interest accrued on the money
1-20     if the custodian of the money deposited in the treasury keeps
1-21     records of the amount of money collected under this article that is
1-22     on deposit in the treasury and remits the funds to the comptroller
1-23     within the period prescribed in Subsection (f).
1-24           SECTION 2.02.  Section 403.014(b), Government Code, is
 2-1     amended to read as follows:
 2-2           (b)  The report must include:
 2-3                 (1)  an analysis of each special provision that reduces
 2-4     the amount of tax payable, to include an estimate of the loss of
 2-5     revenue for a six-year period including the current fiscal biennium
 2-6     and a citation of the statutory or legal authority for the
 2-7     provision; and
 2-8                 (2)  for provisions reducing revenue by more than one
 2-9     percent of total revenue for a tax covered by this section:
2-10                       (A)  [,] the effect of each provision on the
2-11     distribution of the tax burden by income class and industry or
2-12     business class, as appropriate; and
2-13                       (B)  the effect of each provision on total income
2-14     by income class.
2-15           SECTION 2.03.  Section 403.0141(c), Government Code, is
2-16     amended to read as follows:
2-17           (c)  To the extent data is available, the incidence impact
2-18     analysis under Subsections (a) and (b):
2-19                 (1)  shall evaluate the tax burden:
2-20                       (A)  on the overall income distribution, using a
2-21     systemwide incidence measure or other appropriate measures of
2-22     equality and inequality; and
2-23                       (B)  on income classes, including, at a minimum,
2-24     quintiles of the income distribution, on renters and homeowners, on
2-25     industry or business classes, as appropriate, and on various types
2-26     of business organizations;
2-27                 (2)  may evaluate the tax burden:
 3-1                       (A)  by other appropriate taxpayer
 3-2     characteristics, such as whether the taxpayer is a farmer, rancher,
 3-3     retired elderly, or resident or nonresident of the state; and
 3-4                       (B)  by distribution of impact on consumers,
 3-5     labor, capital, and out-of-state persons and entities; [and]
 3-6                 (3)  shall evaluate the effect of each tax on total
 3-7     income by income group; and
 3-8                 (4)  shall:
 3-9                       (A)  use the broadest measure of economic income
3-10     for which reliable data is available; and
3-11                       (B)  include a statement of the incidence
3-12     assumptions that were used in making the analysis.
3-13           SECTION 2.04.  Section 12(b), Article 1.14-1, Insurance Code,
3-14     is amended to read as follows:
3-15           (b)  The report shall be filed and any tax due shall be paid
3-16     by the insured or by any other person designated by the insured.
3-17     The report and tax are due on or before May 15 [March 1] of the
3-18     calendar year after the calendar year in which the insurance was
3-19     procured, continued, or renewed or on another date prescribed by
3-20     the comptroller.
3-21           SECTION 2.05.  Sections 12(a) and (b), Article 1.14-2,
3-22     Insurance Code, are amended to read as follows:
3-23           (a)  The premiums charged for surplus lines insurance are
3-24     subject to a premium receipts tax of 4.85 percent of gross premiums
3-25     charged for such insurance.  The term premium includes all
3-26     premiums, membership fees, assessments, dues or any other
3-27     consideration for insurance.  Such tax shall be in lieu of all
 4-1     other insurance taxes.  The surplus lines agent shall collect from
 4-2     the insured the amount of the tax at the time of delivery of the
 4-3     cover note, certificate of insurance, policy or other initial
 4-4     confirmation of insurance, in addition to the full amount of the
 4-5     gross premium charged by the insurer for the insurance.  No agent
 4-6     shall absorb such tax nor shall any agent, as an inducement for
 4-7     insurance or for any other reason, rebate all or any part of such
 4-8     tax or his commission.  The surplus lines agent shall file a report
 4-9     and pay taxes to the comptroller on or before March 1 of each year
4-10     on forms prescribed by the comptroller.  The [the] amount of taxes
4-11     shall be based on gross premiums written or received for such
4-12     insurance placed through an eligible surplus lines insurer during
4-13     the calendar year ending on the preceding December 31.  A tax
4-14     prepayment shall be required any time accrued taxes due equal or
4-15     exceed $70,000.  The prepayment of the accrued taxes, with a form
4-16     prescribed by the comptroller, shall be due by the 15th day of the
4-17     month following the month in which accrued taxes total $70,000 [and
4-18     shall pay to the comptroller the tax as provided for by this
4-19     Article].  If a surplus lines policy covers risks or exposures only
4-20     partially in this state, the tax payable shall be computed on the
4-21     portions of the premium which are properly allocated to the risks
4-22     or exposures located in this state.  In determining the amount of
4-23     premiums taxable in this state, all premiums written, procured, or
4-24     received in this state and all premiums on policies negotiated in
4-25     this state shall be deemed written on property or risks located or
4-26     resident in this state, except such premiums as are properly
4-27     allocated or apportioned and reported as premiums which may be
 5-1     subject to taxation by any other state or states.  Premiums that
 5-2     are properly allocated to any other state or states that are
 5-3     specifically exempt from taxation under the regulations of that
 5-4     state or states are not taxable in this state.  Premiums on risks
 5-5     or exposures which are properly allocated to federal waters,
 5-6     international waters or under the jurisdiction of a foreign
 5-7     government shall not be taxable by this state.  In event of
 5-8     cancellation and rewriting of any surplus lines insurance contract
 5-9     the additional premium for premium receipts tax purposes shall be
5-10     the premium in excess of the unearned premium of the canceled
5-11     insurance contract.
5-12           (b)  All surplus lines premium receipt taxes collected by a
5-13     surplus lines agent are trust funds in his hands [and the property
5-14     of this state.  Such funds shall be maintained by the surplus lines
5-15     agent in a separate account and shall not be mingled with any other
5-16     funds, either business or private].  Any surplus lines agent who
5-17     fails or refuses to pay over to the state the surplus lines premium
5-18     receipts tax at the time required by [in] this section, or who
5-19     fraudulently withholds or appropriates or otherwise uses such money
5-20     or any portions thereof belonging to the state is guilty of theft
5-21     and shall be punished as provided by law for the crime of theft,
5-22     irrespective of whether any such surplus lines agent has or claims
5-23     to have any interest in such money so received by him.
5-24           SECTION 2.06.  Section 9(b), Texas State College and
5-25     University Employees Uniform Insurance Benefits Act (Article
5-26     3.50-3, Vernon's Texas Insurance Code), is amended to read as
5-27     follows:
 6-1           (b)  Premiums on policies, insurance contracts, or agreements
 6-2     with health maintenance organizations established under this Act
 6-3     are not subject to any state tax, regulatory fee, or surcharge,
 6-4     including premium or maintenance taxes or fees.
 6-5           SECTION 2.07.  Section 11(b), Texas Public School Employees
 6-6     Group Insurance Act (Article 3.50-4, Insurance Code), is amended to
 6-7     read as follows:
 6-8           (b)  A premium or contribution on a policy, insurance
 6-9     contract, or agreement authorized as provided by this article is
6-10     not subject to any state tax, regulatory fee, or surcharge,
6-11     including premium or maintenance taxes or fees.
6-12           SECTION 2.08.  Section 326.029(a), Local Government Code, is
6-13     amended to read as follows:
6-14           (a)  If a majority of the votes received in the election
6-15     favor the creation of the district and the adoption of the sales
6-16     and use tax, the commissioners court shall by resolution or order
6-17     declare that the district is created and shall declare the amount
6-18     of the local sales and use tax adopted and enter the result in its
6-19     minutes.
6-20           SECTION 2.09.  Section 326.092(a), Local Government Code, is
6-21     amended to read as follows:
6-22           (a)  Chapter 323, Tax Code, to the extent not inconsistent
6-23     with this chapter, governs the imposition, computation,
6-24     administration, and governance of the tax under this subchapter,
6-25     except that Sections 323.101, 323.105, [and] 323.404, and 323.406
6-26     through 323.408, Tax Code, do not apply.
6-27           SECTION 2.10.  Section 101.003, Tax Code, is amended by
 7-1     adding Subdivision (13) to read as follows:
 7-2                 (13)  "Tax" means a tax, fee, assessment, charge, or
 7-3     other amount that the comptroller is authorized to administer.
 7-4           SECTION 2.11.  Section 111.0041(b), Tax Code, is amended to
 7-5     read as follows:
 7-6           (b)  This section prevails over any other conflicting
 7-7     provision of this title [except Section 191.024(b) of this code].
 7-8           SECTION 2.12.  Section 111.023, Tax Code, is amended to read
 7-9     as follows:
7-10           Sec. 111.023.  WRITTEN AUTHORIZATION.  (a)  The comptroller
7-11     may require that a report, return, declaration, claim for refund,
7-12     or other document that is required or permitted to be filed with
7-13     the comptroller and that is submitted by an attorney, accountant,
7-14     or other representative of a taxpayer [person] on behalf of the
7-15     taxpayer [person] be accompanied by express written authorization
7-16     of the taxpayer [person] in whose name or on whose behalf it is
7-17     purportedly submitted.
7-18           (b)  An officer, director, or employee of the taxpayer whose
7-19     duties include administering the taxpayer's rights and
7-20     responsibilities with the comptroller may sign the written
7-21     authorization.  The authorization must include the title and
7-22     telephone number of the officer, director, or employee who signs
7-23     the authorization for verification by the comptroller.
7-24           (c)  The comptroller may impose a requirement of Subsection
7-25     (b) on a taxpayer's assignment of a claim for refund.
7-26           SECTION 2.13.  Section 111.104(e), Tax Code, is amended to
7-27     read as follows:
 8-1           (e)  This section applies to all taxes and license fees
 8-2     collected or administered by the comptroller, except the state
 8-3     property tax [and those taxes that qualify for refund allowed under
 8-4     Section 151.318(g) or (n)].
 8-5           SECTION 2.14.  Section 111.107, Tax Code, is amended to read
 8-6     as follows:
 8-7           Sec. 111.107.  WHEN REFUND OR CREDIT IS PERMITTED.  Except as
 8-8     otherwise expressly provided, a person may request a refund or a
 8-9     credit or the comptroller may make a refund or issue a credit for
8-10     the overpayment of a tax imposed by this title at any time before
8-11     the expiration of the period during which the comptroller may
8-12     assess a deficiency for the tax and not thereafter unless the
8-13     refund or credit is requested:
8-14                 (1)  under Subchapter B of Chapter 112 and the refund
8-15     is made or the credit is issued under a court order;
8-16                 (2)  under the provision of Section 111.104(c)(3)
8-17     applicable to a refund claim filed after a jeopardy or deficiency
8-18     determination becomes final; or
8-19                 (3)  under Chapter 153, except Section 153.1195(e),
8-20     153.121(d), 153.2225(e), or 153.224(d)[; or]
8-21                 [(4)  under Section 151.318(g) or (n)].
8-22           SECTION 2.15.  Sections 151.310(c) and (e), Tax Code, are
8-23     amended to read as follows:
8-24           (c)  An organization that qualifies for an exemption under
8-25     Subsection (a)(1) or (a)(2) of this section, and each bona fide
8-26     chapter of the organization, may hold two tax-free sales or
8-27     auctions under this subsection during a calendar year and each
 9-1     tax-free sale or auction may continue for one day only.  The sale
 9-2     of a taxable item the sales price of which is $5,000 or less by a
 9-3     qualified organization or chapter of the organization at a tax-free
 9-4     sale or auction is exempted from the sales tax imposed by
 9-5     Subchapter C of this chapter, except that a taxable item
 9-6     manufactured by or donated to the qualified organization or chapter
 9-7     of the organization may be sold tax free regardless of the sales
 9-8     price to any purchaser other than the donor.  The storage, use, or
 9-9     consumption of a taxable item that is acquired from a qualified
9-10     organization or chapter of the organization at a tax-free sale or
9-11     auction and that is exempted under this subsection from the taxes
9-12     imposed by Subchapter C of this chapter is exempted from the use
9-13     tax imposed by Subchapter D of this chapter until the item is
9-14     resold or subsequently transferred.
9-15           (e)  A nonprofit hospital or hospital system that qualifies
9-16     for an exemption under Subsection (a)(2) shall provide community
9-17     benefits that include charity care and government-sponsored
9-18     indigent health care [community benefits] as set forth in
9-19     Subchapter D, Chapter 311, Health and Safety Code.  [Subdivision
9-20     (1), (2), (3), (4), (5), (6), (7), or (8) below:]
9-21                 [(1)  charity care and government-sponsored indigent
9-22     health care are provided at a level which is reasonable in relation
9-23     to the community needs, as determined through the community needs
9-24     assessment, the available resources of the hospital or hospital
9-25     system, and the tax-exempt benefits received by the hospital or
9-26     hospital system;]
9-27                 [(2)  charity care and government-sponsored indigent
 10-1    health care are provided in an amount equal to at least four
 10-2    percent of the hospital's or hospital system's net patient revenue;]
 10-3                [(3)  charity care and government-sponsored indigent
 10-4    health care are provided in an amount equal to at least 100 percent
 10-5    of the hospital's or hospital system's tax-exempt benefits,
 10-6    excluding federal income tax;]
 10-7                [(4)  for tax periods beginning before January 1, 1996,
 10-8    charity care and community benefits are provided in a combined
 10-9    amount equal to at least five percent of the hospital's or hospital
10-10    system's net patient revenue, provided that charity care and
10-11    government-sponsored indigent health care are provided in an amount
10-12    equal to at least three percent of net patient revenue;]
10-13                [(5)  for tax periods beginning after December 31,
10-14    1995, charity care and community benefits are provided in a
10-15    combined amount equal to at least five percent of the hospital's or
10-16    hospital system's net patient revenue, provided that charity care
10-17    and government-sponsored indigent health care are provided in an
10-18    amount equal to at least four percent of net patient revenue;]
10-19                [(6)  a nonprofit hospital that has been designated as
10-20    a disproportionate share hospital under the state Medicaid program
10-21    in the current year or in either of the previous two fiscal years
10-22    is considered to have provided a reasonable amount of charity care
10-23    and government-sponsored indigent health care and is considered in
10-24    compliance with the standards provided by this subsection;]
10-25                [(7)  a hospital operated on a nonprofit basis that is
10-26    located in a county with a population of less than 50,000 and in
10-27    which the entire county or the population of the entire county has
 11-1    been designated as a health professionals shortage area is
 11-2    considered to be in compliance with the standards provided by this
 11-3    subsection; or]
 11-4                [(8)  a hospital providing health care services to
 11-5    inpatients or outpatients without receiving any payment for
 11-6    providing those services from any source, including the patient or
 11-7    person legally obligated to support the patient, third-party
 11-8    payors, Medicare, Medicaid, or any other state or local indigent
 11-9    care program but excluding charitable donations, legacies,
11-10    bequests, or grants or payments for research, is considered to be
11-11    in compliance with the standards provided by this subsection.]
11-12          [For purposes of satisfying Subdivision (5), a hospital or
11-13    hospital system may not change its existing fiscal year unless the
11-14    hospital or hospital system changes its ownership or corporate
11-15    structure as a result of a sale or merger.]
11-16          [For purposes of this subsection, a hospital that satisfies
11-17    Subdivision (1), (6), (7), or (8) shall be excluded in determining
11-18    a hospital system's compliance with the standards provided by
11-19    Subdivision (2), (3), (4), or (5).]
11-20          [For purposes of this subsection, the terms "charity care,"
11-21    "government-sponsored indigent health care," "health care
11-22    organization," "hospital system," "net patient revenue," "nonprofit
11-23    hospital," and "tax-exempt benefits" have the meanings set forth in
11-24    Sections 311.031 and 311.042, Health and Safety Code.  A
11-25    determination of the amount of community benefits and charity care
11-26    and government-sponsored indigent health care provided by a
11-27    hospital or hospital system and the hospital's or hospital system's
 12-1    compliance with the requirements of this subsection and Section
 12-2    311.045, Health and Safety Code, shall be based on the most
 12-3    recently completed and audited prior fiscal year of the hospital or
 12-4    hospital system.]
 12-5          [The providing of charity care and government-sponsored
 12-6    indigent health care in accordance with Subdivision (1) shall be
 12-7    guided by the prudent business judgment of the hospital which will
 12-8    ultimately determine the appropriate level of charity care and
 12-9    government-sponsored indigent health care based on the community
12-10    needs, the available resources of the hospital, the tax-exempt
12-11    benefits received by the hospital, and other factors that may be
12-12    unique to the hospital, such as the hospital's volume of Medicare
12-13    and Medicaid patients.  These criteria shall not be determinative
12-14    factors, but shall be guidelines contributing to the hospital's
12-15    decision along with other factors which may be unique to the
12-16    hospital.  The formulas contained in Subdivisions (2), (3), (4),
12-17    and (5) shall also not be considered determinative of a reasonable
12-18    amount of charity care and government-sponsored indigent health
12-19    care.]
12-20          [The requirements of this subsection shall not apply to the
12-21    extent a hospital or hospital system demonstrates that reductions
12-22    in the amount of community benefits, charity care, and
12-23    government-sponsored indigent health care are necessary to maintain
12-24    financial reserves at a level required by a bond covenant, are
12-25    necessary to prevent the hospital or hospital system from
12-26    endangering its ability to continue operations, or if the hospital
12-27    or hospital system, as a result of a natural or other disaster, is
 13-1    required substantially to curtail its operations.]
 13-2          [In any fiscal year that a hospital or hospital system,
 13-3    through unintended miscalculation, fails to meet any of the
 13-4    standards in this subsection, the hospital or hospital system shall
 13-5    not lose its tax-exempt status without the opportunity to cure the
 13-6    miscalculation in the fiscal year following the fiscal year the
 13-7    failure is discovered by both meeting one of the standards and
 13-8    providing an additional amount of charity care and
 13-9    government-sponsored indigent health care that is equal to the
13-10    shortfall from the previous fiscal year.  A hospital or hospital
13-11    system may apply this provision only once every five years.]
13-12          SECTION 2.16.  Section 151.3101, Tax Code, is amended by
13-13    adding Subsection (c) to read as follows:
13-14          (c)  In this section, "educational organization" includes an
13-15    entity described by Section 61.003(8) or (15), Education Code.
13-16          SECTION 2.17.  Section 151.312, Tax Code, is amended to read
13-17    as follows:
13-18          Sec. 151.312.  PERIODICALS AND WRITINGS OF RELIGIOUS,
13-19    PHILANTHROPIC, CHARITABLE, HISTORICAL, SCIENTIFIC, AND SIMILAR
13-20    ORGANIZATIONS.  Periodicals and writings, including those presented
13-21    on audio tape, videotape, and computer disk, that are published and
13-22    [or] distributed by a religious, philanthropic, charitable,
13-23    historical, scientific, or other similar organization that is not
13-24    operated for profit, but excluding an educational organization, are
13-25    exempted from the taxes imposed by this chapter.
13-26          SECTION 2.18.  Section 151.317, Tax Code, is amended to read
13-27    as follows:
 14-1          Sec. 151.317.  GAS AND ELECTRICITY.  (a)  Subject to
 14-2    Subsection (d), gas [Gas] and electricity are exempted from the
 14-3    taxes imposed by this chapter [except] when sold for:
 14-4                (1)  residential use;
 14-5                (2)  use in powering equipment exempt under Section
 14-6    151.318 by a person processing tangible personal property for sale
 14-7    as tangible personal property, other than preparation or storage of
 14-8    food for immediate consumption;
 14-9                (3)  use in lighting, cooling, and heating in the
14-10    manufacturing area during the actual manufacturing or processing of
14-11    tangible personal property for sale as tangible personal property,
14-12    other than preparation or storage of food for immediate
14-13    consumption;
14-14                (4)  use directly in exploring for, producing, or
14-15    transporting, a material extracted from the earth;
14-16                (5)  use in agriculture, including dairy or poultry
14-17    operations and pumping for farm or ranch irrigation;
14-18                (6)  use directly in electrical processes, such as
14-19    electroplating, electrolysis, and cathodic protection;
14-20                (7)  use directly in the off-wing processing, overhaul,
14-21    or repair of a jet turbine engine or its parts for a certificated
14-22    or licensed carrier of persons or property;
14-23                (8)  use directly in providing, under contracts with or
14-24    on behalf of the United States government or foreign governments,
14-25    defense or national security-related electronics, classified
14-26    intelligence data processing and handling systems, or
14-27    defense-related platform modifications or upgrades; or
 15-1                (9)  a direct or indirect use, consumption, or loss of
 15-2    electricity by an electric utility engaged in the purchase of
 15-3    electricity for resale [commercial use].
 15-4          (b)  The sale, production, distribution, lease, or rental of,
 15-5    and the use, storage, or other consumption in this state of, gas
 15-6    and electricity sold for the uses listed in Subsection (a), [except
 15-7    when sold for residential or commercial use,] are exempted from the
 15-8    taxes imposed by a municipality [city] under Chapter 321 except
 15-9    [the Local Sales and Use Tax Act, unless sales for residential use
15-10    are further exempted by the city] as provided by Section 321.105
15-11    [the Local Sales and Use Tax Act].
15-12          (c)  In this section, "residential [:]
15-13                [(1)  "Residential] use" means use:
15-14                (1) [(A)]  in a family dwelling or in a multifamily
15-15    apartment or housing complex or building or in a part of a building
15-16    occupied as a home or residence when the use is by the owner of the
15-17    dwelling, apartment, complex, or building or part of the building
15-18    occupied; or
15-19                (2) [(B)]  in a dwelling, apartment, house, or building
15-20    or part of a building occupied as a home or residence when the use
15-21    is by a tenant who occupies the dwelling, apartment, house, or
15-22    building or part of a building under a contract for an express
15-23    initial term for longer than 29 consecutive days.
15-24          (d)  To qualify for the exemptions in Subsections (a)(2)-(8),
15-25    the gas or electricity must be sold to the person using the gas or
15-26    electricity in the exempt manner.  For purposes of this subsection,
15-27    the use of gas or electricity in an exempt manner by an independent
 16-1    contractor engaged by the purchaser of the gas or electricity to
 16-2    perform one or more of the exempt activities identified in
 16-3    Subsections (a)(2)-(8) is considered use by the purchaser of the
 16-4    gas or electricity.
 16-5          (e)  Natural gas or electricity used during a regular monthly
 16-6    billing period for both exempt and taxable purposes under a single
 16-7    meter is totally exempt or taxable based on the predominant use of
 16-8    the natural gas or electricity measured by that meter.  The
 16-9    comptroller may prescribe by rule the procedures by which a
16-10    purchaser must establish the predominant use of the natural gas or
16-11    electricity.
16-12                [(2)  "Commercial use" means use by a person engaged in
16-13    selling, warehousing, or distributing a commodity or a professional
16-14    or personal service, but does not include:]
16-15                      [(A)  use by a person engaged in:]
16-16                            [(i)  processing tangible personal property
16-17    for sale as tangible personal property, other than preparation or
16-18    storage of food for immediate consumption;]
16-19                            [(ii)  exploring for, producing, or
16-20    transporting, a material extracted from the earth;]
16-21                            [(iii)  agriculture, including dairy or
16-22    poultry operations and pumping for farm or ranch irrigation;]
16-23                            [(iv)  electrical processes such as
16-24    electroplating, electrolysis, and cathodic protection;]
16-25                            [(v)  the off-wing processing, overhaul, or
16-26    repair of a jet turbine engine or its parts for a certificated or
16-27    licensed carrier of persons or property; or]
 17-1                            [(vi)  providing, under contracts with or
 17-2    on behalf of the United States government or foreign governments,
 17-3    defense or national security-related electronics, classified
 17-4    intelligence data processing and handling systems, or
 17-5    defense-related platform modifications or upgrades; or]
 17-6                      [(B)  a direct or indirect use, consumption, or
 17-7    loss of electricity by an electric utility engaged in the purchase
 17-8    of electricity for resale.]
 17-9          SECTION 2.19.  Section 151.318, Tax Code, is amended by
17-10    amending Subsections (a), (c), (o), (q), and (s), and adding
17-11    Subsections (f) and (t) to read as follows:
17-12          (a)  The following items are exempted from the taxes imposed
17-13    by this chapter if sold, leased, or rented to, or stored, used, or
17-14    consumed by a manufacturer:
17-15                (1)  tangible personal property that will become an
17-16    ingredient or component part of tangible personal property
17-17    manufactured, processed, or fabricated for ultimate sale;
17-18                (2)  tangible personal property directly used or
17-19    consumed in or during the actual manufacturing, processing, or
17-20    fabrication of tangible personal property for ultimate sale if the
17-21    use or consumption of the property is necessary or essential to the
17-22    manufacturing, processing, or fabrication operation and directly
17-23    makes or causes a chemical or physical change to:
17-24                      (A)  the product being manufactured, processed,
17-25    or fabricated for ultimate sale; or
17-26                      (B)  any intermediate or preliminary product that
17-27    will become an ingredient or component part of the product being
 18-1    manufactured, processed, or fabricated for ultimate sale;
 18-2                (3)  services performed directly on the product being
 18-3    manufactured prior to its distribution for sale and for the purpose
 18-4    of making the product more marketable;
 18-5                (4)  actuators, steam production equipment and its
 18-6    fuel, in-process flow through tanks, cooling towers, generators,
 18-7    heat exchangers, transformers and the switches, breakers, capacitor
 18-8    banks, regulators, relays, reclosers, fuses, interruptors,
 18-9    reactors, arrestors, resistors, insulators, instrument
18-10    transformers, and telemetry units that are related to the
18-11    transformers, electronic control room equipment, computerized
18-12    control units, pumps, compressors, and hydraulic units, that are
18-13    used to power, supply, support, or control equipment that qualifies
18-14    for exemption under Subdivision (2) or (5) or to generate
18-15    electricity, chilled water, or steam for ultimate sale;
18-16    transformers located at an electric generating facility that
18-17    increase the voltage of electricity generated for ultimate sale,
18-18    the electrical cable that carries the electricity from the electric
18-19    generating equipment to the step-up transformers, and the switches,
18-20    breakers, capacitor banks, regulators, relays, reclosers, fuses,
18-21    interruptors, reactors, arrestors, resistors, insulators,
18-22    instrument transformers, and telemetry units that are related to
18-23    the step-up transformers; and transformers that decrease the
18-24    voltage of electricity generated for ultimate sale and the
18-25    switches, breakers, capacitor banks, regulators, relays, reclosers,
18-26    fuses, interruptors, reactors, arrestors, resistors, insulators,
18-27    instrument transformers, and telemetry units that are related to
 19-1    the step-down transformers; [and]
 19-2                (5)  tangible personal property [machinery, equipment,
 19-3    and replacement parts or accessories] used or consumed in the
 19-4    actual manufacturing, processing, or fabrication of tangible
 19-5    personal property for ultimate sale if the [their] use or
 19-6    consumption of the property is necessary and essential to a
 19-7    pollution control process;
 19-8                (6)  lubricants, chemicals, chemical compounds, gases,
 19-9    or liquids that are used or consumed during the actual
19-10    manufacturing, processing, or fabrication of tangible personal
19-11    property for ultimate sale if their use or consumption is necessary
19-12    and essential to prevent the decline, failure, lapse, or
19-13    deterioration of equipment exempted by this section;
19-14                (7)  gases used on the premises of a manufacturing
19-15    plant to prevent contamination of raw material or product, or to
19-16    prevent a fire, explosion, or other hazardous or environmentally
19-17    damaging situation at any stage in the manufacturing process or in
19-18    loading or storage of the product or raw material on premises;
19-19                (8)  tangible personal property used or consumed during
19-20    the actual manufacturing, processing, or fabrication of tangible
19-21    personal property for ultimate sale if the use or consumption of
19-22    the property is necessary and essential to a quality control
19-23    process;
19-24                (9)  safety apparel or work clothing that is used
19-25    during the actual manufacturing, processing, or fabrication of
19-26    tangible personal property for ultimate sale if:
19-27                      (A)  the manufacturing process would not be
 20-1    possible without the use of the apparel or clothing; and
 20-2                      (B)  the apparel or clothing is not resold to the
 20-3    employee;
 20-4                (10)  tangible personal property used or consumed in
 20-5    the actual manufacturing, processing, or fabrication of tangible
 20-6    personal property for ultimate sale if the use or consumption of
 20-7    the property is necessary and essential to comply with federal,
 20-8    state, or local laws or rules that establish requirements related
 20-9    to public health; and
20-10                (11)  tangible personal property specifically installed
20-11    to:
20-12                      (A)  reduce water use and wastewater flow volumes
20-13    from the manufacturing, processing, fabrication, or repair
20-14    operation;
20-15                      (B)  reuse and recycle wastewater streams
20-16    generated within the manufacturing, processing, fabrication, or
20-17    repair operation; or
20-18                      (C)  treat wastewater from another industrial or
20-19    municipal source for the purpose of replacing existing freshwater
20-20    sources in the manufacturing, processing, fabrication, or repair
20-21    operation.
20-22          (c)  The exemption does not include:
20-23                (1)  intraplant transportation equipment, including
20-24    intraplant transportation equipment used to move a product or raw
20-25    material in connection with the manufacturing process and
20-26    specifically including all piping and conveyor systems, provided
20-27    that the following remain eligible for the exemption:
 21-1                      (A)  piping or conveyor systems that are [is] a
 21-2    component part of a single item of manufacturing equipment or
 21-3    pollution control equipment eligible for the exemption under
 21-4    Subsection (a)(2), (a)(4), or (a)(5);
 21-5                      (B)  piping through which the product or an
 21-6    intermediate or preliminary product that will become an ingredient
 21-7    or component part of the product is recycled or circulated in a
 21-8    loop between the single item of manufacturing equipment and the
 21-9    ancillary equipment that supports only that single item of
21-10    manufacturing equipment if the single item of manufacturing
21-11    equipment and the ancillary equipment operate together to perform a
21-12    specific step in the manufacturing process; and
21-13                      (C)  piping through which the product or an
21-14    intermediate or preliminary product that will become an ingredient
21-15    or component part of the product is recycled back to another single
21-16    item of manufacturing equipment and its ancillary equipment in the
21-17    same manufacturing process [remains eligible for the exemption];
21-18                (2)  [maintenance or janitorial supplies or equipment
21-19    or other machinery, equipment, materials, or supplies that are used
21-20    incidentally in a manufacturing, processing, or fabrication
21-21    operation;]
21-22                [(3)]  hand tools;
21-23                (3)  maintenance supplies not otherwise exempted under
21-24    this section, maintenance equipment, janitorial supplies or
21-25    equipment, [(4)] office equipment or supplies, equipment or
21-26    supplies used in sales or distribution activities, research or
21-27    development of new products, or transportation activities[, or
 22-1    other tangible personal property not used in an actual
 22-2    manufacturing, processing, or fabrication operation]; [or]
 22-3                (4) [(5)]  machinery and equipment or supplies to the
 22-4    extent not otherwise exempted under this section used to maintain
 22-5    or store tangible personal property; or
 22-6                (5)  tangible personal property used in the
 22-7    transmission or distribution of electricity, including
 22-8    transformers, cable, switches, breakers, capacitor banks,
 22-9    regulators, relays, reclosers, fuses, interruptors, reactors,
22-10    arrestors, resistors, insulators, instrument transformers, and
22-11    telemetry units not otherwise exempted under this section, and
22-12    lines, conduit, towers, and poles.
22-13          (f)  For purposes of Subsection (c)(1), piping through which
22-14    material is transported forward from one single item of
22-15    manufacturing equipment and its ancillary support equipment to
22-16    another single item of manufacturing equipment and its ancillary
22-17    support equipment is not considered a component part of a single
22-18    item of manufacturing equipment and is not exempt.  An integrated
22-19    group of manufacturing and processing machines and ancillary
22-20    equipment that operate together to create or produce the product or
22-21    an intermediate or preliminary product that will become an
22-22    ingredient or component part of the product is not a single item of
22-23    manufacturing equipment.
22-24          (o)  The production of a publication for the dissemination of
22-25    news of a general character and of a general interest that is
22-26    printed on newsprint and distributed to the general public free of
22-27    charge at a daily, weekly, or other short interval is considered
 23-1    "manufacturing" for purposes of [Subsections (d)-(m) of] this
 23-2    section.
 23-3          (q)  For purposes of Subsection (b), "semiconductor
 23-4    fabrication cleanrooms and equipment" means all tangible personal
 23-5    property, without regard to whether the property is affixed to or
 23-6    incorporated into realty, used in connection with the
 23-7    manufacturing, processing, or fabrication in a cleanroom
 23-8    environment of a semiconductor product, without regard to whether
 23-9    the property is actually contained in the cleanroom environment.
23-10    The term includes integrated systems, fixtures, and piping, all
23-11    property necessary or adapted to reduce contamination or to control
23-12    airflow, temperature, humidity, chemical purity, or other
23-13    environmental conditions or manufacturing tolerances, and
23-14    production equipment and machinery.  The term does not include the
23-15    building or a permanent, nonremovable component of the building,
23-16    that houses the cleanroom environment.  The term includes moveable
23-17    cleanroom partitions and cleanroom lighting.  "Semiconductor
23-18    fabrication cleanrooms and equipment" are not "intraplant
23-19    ["interplant] transportation equipment" [or "used incidentally in a
23-20    manufacturing, processing, or fabrication operation"] as that term
23-21    is [those terms are] used in Subsection [Subsections] (c)(1) [and
23-22    (c)(2)].
23-23          (s)  The following do not apply to the semiconductor
23-24    fabrication cleanrooms and equipment in Subsection (q):
23-25                (1)  limitations in Subsection (a)(2) that refer to
23-26    tangible personal property directly causing chemical and physical
23-27    changes to the product being manufactured, processed, or fabricated
 24-1    for ultimate sale;
 24-2                (2)  Subsection (c)(1); and
 24-3                (3)  Subsection (c)(4)[(5)].
 24-4          (t)  In addition to the other items exempted under this
 24-5    section, pre-press machinery, equipment, and supplies, including
 24-6    computers, cameras, film, film developing chemicals, veloxes,
 24-7    plate-making machinery, plate metal, litho negatives, color
 24-8    separation negatives, proofs of color negatives, production art
 24-9    work, and typesetting or composition proofs, that are necessary and
24-10    essential to and used in connection with the printing process are
24-11    exempted from the tax imposed by this chapter if they are purchased
24-12    by a person engaged in:
24-13                (1)  printing or imprinting tangible personal property
24-14    for sale; or
24-15                (2)  producing a publication for the dissemination of
24-16    news of a general character and of a general interest that is
24-17    printed on newsprint and distributed to the general public free of
24-18    charge at a daily, weekly, or other short interval.
24-19          SECTION 2.20.  Subchapter H, Chapter 151, Tax Code, is
24-20    amended by adding Section 151.3185 to read as follows:
24-21          Sec. 151.3185.  PROPERTY USED IN THE PRODUCTION OF MOTION
24-22    PICTURES OR VIDEO OR AUDIO RECORDINGS AND BROADCASTS.  (a)  The
24-23    sale, lease, or rental or storage, use, or other consumption of the
24-24    following items are exempted from the taxes imposed by this
24-25    chapter:
24-26                (1)  tangible personal property that will become an
24-27    ingredient or component part of:
 25-1                      (A)  a motion picture or video or audio
 25-2    recording, a copy of which is sold or offered for ultimate sale,
 25-3    licensed, distributed, broadcast, or otherwise exhibited; or
 25-4                      (B)  a broadcast by a producer of cable programs
 25-5    or by a radio or television station licensed by the Federal
 25-6    Communications Commission;
 25-7                (2)  tangible personal property that is necessary or
 25-8    essential to and used or consumed in or during:
 25-9                      (A)  the production of a motion picture or video
25-10    or audio recording, a copy of which is sold or offered for ultimate
25-11    sale, licensed, distributed, broadcast, or otherwise exhibited; or
25-12                      (B)  the production of a broadcast by or for a
25-13    cable program producer or by or for a radio or television station
25-14    licensed by the Federal Communications Commission; and
25-15                (3)  except as provided by Subsection (c), services
25-16    that are necessary and essential to and used directly in a
25-17    production described by Subdivision (2)(A) or (B).
25-18          (b)  The exemption includes:
25-19                (1)  cameras, film, and film developing chemicals that
25-20    are necessary and essential to and used or consumed in a production
25-21    described by Subsection (a)(2)(A) or (B);
25-22                (2)  lights, props, sets, teleprompters, microphones,
25-23    digital equipment, special effects equipment and supplies, and
25-24    other equipment that is necessary and essential to and used or
25-25    consumed directly in a production described by Subsection (a)(2)(A)
25-26    or (B); and
25-27                (3)  audio or video routing switchers located in a
 26-1    studio that are necessary and essential to and used or consumed
 26-2    directly in a production described by Subsection (a)(2)(A) or (B).
 26-3          (c)  The exemption does not include:
 26-4                (1)  office equipment or supplies;
 26-5                (2)  maintenance or janitorial equipment or supplies;
 26-6                (3)  machinery, equipment, or supplies used in sales,
 26-7    transmission, or transportation activities;
 26-8                (4)  machinery, equipment, or supplies used in
 26-9    distribution activities, unless otherwise exempted by this section;
26-10                (5)  taxable items that are used incidentally in a
26-11    production described by Subsection (a)(2)(A) or (B); or
26-12                (6)  the following taxable items, regardless of whether
26-13    they are used incidentally in a production described by Subsection
26-14    (a)(2)(A) or (B):
26-15                      (A)  telecommunications equipment and services;
26-16                      (B)  transmission equipment;
26-17                      (C)  security services;
26-18                      (D)  motor vehicle parking services; and
26-19                      (E)  food ready for immediate consumption.
26-20          (d)  A production described by Subsection (a)(2)(A) or (B)
26-21    does not include a production for broadcast that is not intended to
26-22    be broadcast to either the general public or to cable television
26-23    service subscribers or paying customers.
26-24          SECTION 2.21.  Section 151.321(a), Tax Code, is amended to
26-25    read as follows:
26-26          (a)  A taxable item sold by a qualified student organization
26-27    and for which the sales price is $5,000 or less, is exempted from
 27-1    the taxes imposed by Subchapter C, except that a taxable item
 27-2    manufactured by or donated to the organization is exempt from the
 27-3    taxes imposed by Subchapter C regardless of sales price unless sold
 27-4    to the donor, if the student organization:
 27-5                (1)  sells the item at a sale that may last for one day
 27-6    only and the primary purpose of which is to raise funds for the
 27-7    organization; and
 27-8                (2)  holds not more than one sale described by
 27-9    Subdivision (1) each month for which an exemption is claimed for an
27-10    item sold.
27-11          SECTION 2.22.  Section 151.350(d), Tax Code, is amended to
27-12    read as follows:
27-13          (d)  In this section, "restore" means:
27-14                (1)  launder, [or] clean, repair, treat, or apply
27-15    protective chemicals to an item, to the extent the service is a
27-16    personal service as defined in Section 151.0045; and
27-17                (2)  repair, restore, or remodel, to the extent the
27-18    service is:
27-19                      (A)  a real property repair or remodeling service
27-20    as defined in Section 151.0047; or
27-21                      (B)  defined as a taxable service in Section
27-22    151.0101(a)(5) [151.0101(5)].
27-23          SECTION 2.23.  Subchapter H, Chapter 151, Tax Code, is
27-24    amended by adding Section 151.354 to read as follows:
27-25          Sec. 151.354.  SERVICES BY EMPLOYEES OF PROPERTY MANAGEMENT
27-26    COMPANIES.  (a)  There are exempted from the taxes imposed by this
27-27    chapter services performed by an employee of a property management
 28-1    company if:
 28-2                (1)  the employee is permanently assigned to one rental
 28-3    property by the property management company;
 28-4                (2)  the property management company is reimbursed on a
 28-5    dollar-for-dollar basis for the services provided; and
 28-6                (3)  the employee remains assigned to that property
 28-7    while employed by successive owners or management companies.
 28-8          (b)  This exemption does not apply to services performed by
 28-9    an employee for properties other than the one to which the employee
28-10    is permanently assigned.
28-11          (c)  For purposes of this section, a person is an employee of
28-12    a property management company if either the property management
28-13    company or an affiliate of the property management company employs
28-14    the person.
28-15          (d)  The property management company must:
28-16                (1)  be contractually obligated to the property owner
28-17    to exercise control over the activities of the employee providing
28-18    the service; and
28-19                (2)  manage and direct the employee's day-to-day
28-20    activities.
28-21          (e)  The property management company or the affiliate must
28-22    pay tax on the taxable items purchased and provided to employees
28-23    providing services on managed property.
28-24          (f)  In this section, "property management company" means a
28-25    person:
28-26                (1)  who, for consideration, operates and manages all
28-27    the activities at a property held by the owner for purposes of
 29-1    rental, including an office building, mall, or other retail or
 29-2    office complex, an apartment complex, a duplex, or a home; and
 29-3                (2)  whose responsibilities include securing tenants,
 29-4    hiring, and supervising employees for operation or upkeep of the
 29-5    property, receiving and applying revenues, and incurring and paying
 29-6    expenses derived from the operation of the property as directed by
 29-7    the owner.
 29-8          (g)  In this section, a corporation, limited liability
 29-9    company, partnership, trust, or estate is an affiliate of the
29-10    property management company if an 80 percent ownership interest in
29-11    the property management company or the corporation, limited
29-12    liability company, partnership, trust, or estate is held by the
29-13    other, or if a third person has an 80 percent ownership interest
29-14    either directly or indirectly in both the property management
29-15    company and the corporation, limited liability company,
29-16    partnership, trust, or estate.
29-17          SECTION 2.24.  Section 151.426, Tax Code, is amended by
29-18    amending Subsection (c) and adding Subsections (e), (f), (g), (h),
29-19    (i), and (j) to read as follows:
29-20          (c)  Subject to Subsection (e), a [A] retailer or any person
29-21    who extends credit to a purchaser under a retailer's private label
29-22    credit agreement, or an assignee or affiliate of either, is
29-23    entitled to credit or reimbursement for taxes paid on the portion
29-24    of:
29-25                (1)  an account determined to be worthless and actually
29-26    charged off for federal income tax purposes; or
29-27                (2)  the remaining unpaid sales price of a taxable item
 30-1    when the item is repossessed under a conditional sales contract.
 30-2          (e)  A person is entitled to a credit or reimbursement
 30-3    provided by Subsection (c) only if:
 30-4                (1)  the retailer:
 30-5                      (A)  has a valid sales or use tax permit; and
 30-6                      (B)  remits the tax for which the credit or
 30-7    reimbursement is sought;
 30-8                (2)  all payments on an account are prorated between
 30-9    taxable and nontaxable charges; and
30-10                (3)  the retailer or person claiming the credit or
30-11    reimbursement provides detailed records outlining:
30-12                      (A)  the amount the purchaser contracted to pay;
30-13                      (B)  taxable and nontaxable charges;
30-14                      (C)  the tax collected and remitted;
30-15                      (D)  the unpaid portion of the sales price
30-16    assigned; and
30-17                      (E)  the taxpayer number of the seller who
30-18    collected and remitted the tax.
30-19          (f)  A person whose volume and character of uncollectible
30-20    accounts warrants an alternative method of substantiating the
30-21    reimbursement or credit may:
30-22                (1)  maintain records other than the records specified
30-23    in Subsection (e) if:
30-24                      (A)  the records fairly and equitably apportion
30-25    taxable and nontaxable elements of a bad debt and compute the
30-26    amount of sales tax imposed and remitted with respect to the
30-27    taxable charges remaining unpaid on the debt; and
 31-1                      (B)  the comptroller approves the procedures
 31-2    used; or
 31-3                (2)  implement a system to report its future tax
 31-4    responsibilities based on a historical percentage calculated from a
 31-5    sample of transactions if:
 31-6                      (A)  the system utilizes records provided by the
 31-7    person claiming the credit or reimbursement; and
 31-8                      (B)  the comptroller approves the procedures
 31-9    used.
31-10          (g)  The comptroller may revoke the authorization to report
31-11    under Subsection (f)(2) if the comptroller determines that the
31-12    percentage being used is no longer representative because of:
31-13                (1)  a change in law, including a change in the
31-14    interpretation of an existing law or rule; or
31-15                (2)  a change in the taxpayer's business operations.
31-16          (h)  A person claiming a credit or reimbursement under this
31-17    section shall remit tax on any payments received on an account that
31-18    has been written off and claimed as a bad debt.
31-19          (i)  A person who is not a retailer may claim a credit or
31-20    reimbursement authorized by Subsection (c) only for taxes imposed
31-21    by Section 151.051 or 151.101.
31-22          (j)  For purposes of this section, "affiliate" means any
31-23    entity or entities that would be classified as a member of an
31-24    affiliated group under 26 U.S.C.  Section 1504.
31-25          SECTION 2.25.  Sections 151.429(d) and (g), Tax Code, are
31-26    amended to read as follows:
31-27          (d)  To receive a refund under this section, an enterprise
 32-1    project must apply to the comptroller for the refund.  The Texas
 32-2    Department of Economic Development [department of commerce] shall
 32-3    provide the comptroller with the assistance that the comptroller
 32-4    requires in administering this section.
 32-5          (g)  The refund provided by this section is conditioned on
 32-6    the enterprise project maintaining at least the same level of
 32-7    employment of qualified employees as existed at the time it
 32-8    qualified for a refund for a period of three years from that date.
 32-9    The Texas Department of Economic Development [Commerce] shall
32-10    annually certify to the comptroller and the Legislative Budget
32-11    Board whether that level of employment of qualified employees has
32-12    been maintained.  On the Texas Department of Economic Development
32-13    [Commerce] certifying that such a level has not been maintained,
32-14    the comptroller shall assess that portion of the refund
32-15    attributable to any such decrease in employment, including penalty
32-16    and interest from the date of the refund.
32-17          SECTION 2.26.  Section 151.429(e)(1), Tax Code, is amended to
32-18    read as follows:
32-19                (1)  "Enterprise project" means a person designated by
32-20    the Texas Department of Economic Development [Commerce] as an
32-21    enterprise project under Chapter 2303, Government Code.
32-22          SECTION 2.27.  Sections 151.4291(d) and (g), Tax Code, are
32-23    amended to read as follows:
32-24          (d)  To receive a refund under this section, a defense
32-25    readjustment project must apply to the comptroller for the refund.
32-26    The Texas Department of Economic Development [Commerce] shall
32-27    provide the  comptroller with the assistance that the comptroller
 33-1    requires in administering this section.
 33-2          (g)  The refund provided by this section is conditioned on
 33-3    the defense readjustment project maintaining at least the same
 33-4    level of employment of qualified employees as existed at the time
 33-5    it qualified for a refund for a period of three years from that
 33-6    date.  The Texas Department of Economic Development [Commerce]
 33-7    shall annually certify to the comptroller and the Legislative
 33-8    Budget Board whether that level of employment of qualified
 33-9    employees has been maintained.  On the Texas Department of Economic
33-10    Development [Commerce] certifying that such a level has not been
33-11    maintained, the comptroller shall assess that portion of the refund
33-12    attributable to any such decrease in employment, including penalty
33-13    and interest from the date of the refund.
33-14          SECTION 2.28.  Section 151.4291(e)(1), Tax Code, is amended
33-15    to read as follows:
33-16                (1)  "Defense readjustment project" means a person
33-17    designated by the Texas Department of Economic Development
33-18    [Commerce] as a defense readjustment project under Chapter 2310,
33-19    Government Code.
33-20          SECTION 2.29.  Section 151.431(a), Tax Code, is amended to
33-21    read as follows:
33-22          (a)  A qualified business operating in the enterprise zone's
33-23    jurisdiction for at least three consecutive years may apply for and
33-24    be granted a onetime refund of sales and use tax paid by the
33-25    qualified business after certification of the qualified business as
33-26    provided by Subsection (b) of this section to a vendor or directly
33-27    to the state for the purchase of equipment or machinery sold to the
 34-1    business for use in an enterprise zone if the governing body or
 34-2    bodies certify to the Texas Department of Economic Development
 34-3    [Commerce] that the business is retaining 10 or more jobs held by
 34-4    qualified employees during the year.  For the purposes of this
 34-5    subsection "job" means an existing employment position of a
 34-6    qualified business that has provided employment to a qualified
 34-7    employee of at least 1,820 hours annually.
 34-8          SECTION 2.30.  Section 152.002, Tax Code, is amended by
 34-9    adding Subsection (d) to read as follows:
34-10          (d)  A person who holds a lessor license under the Texas
34-11    Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
34-12    Civil Statutes) or is specifically not required to obtain a lessor
34-13    license under Section 4.01(a) of that Act may deduct the fair
34-14    market value of a replaced motor vehicle that has been leased for
34-15    longer than 180 days and is titled to another person if:
34-16                (1)  either person:
34-17                      (A)  holds a beneficial ownership interest in the
34-18    other person of at least 80 percent; or
34-19                      (B)  acquires all of its vehicles exclusively
34-20    from franchised dealers whose franchisor shares common ownership
34-21    with the other person; and
34-22                (2)  the replaced motor vehicle is offered for sale.
34-23          SECTION 2.31.  Section 152.041, Tax Code, is amended by
34-24    adding Subsection (e) to read as follows:
34-25          (e)  If a motor vehicle title applicant has paid the tax to
34-26    the seller who is required by this chapter to collect the tax and
34-27    the seller has failed to remit the tax to the county tax
 35-1    assessor-collector, the tax assessor-collector may accept
 35-2    application for title to the motor vehicle without the payment of
 35-3    additional tax by the applicant.  Before title to the motor vehicle
 35-4    may be issued under these circumstances, the motor vehicle title
 35-5    applicant must present satisfactory documentation to the tax
 35-6    assessor-collector that the tax was paid.  The county tax
 35-7    assessor-collector shall notify the comptroller in writing of the
 35-8    seller's failure to remit the tax.  The notice must:
 35-9                (1)  be made before the 31st day after the date the
35-10    application for title is accepted;
35-11                (2)  contain the name and address of the seller; and
35-12                (3)  include any documentation of the payment of the
35-13    tax provided to the county tax assessor-collector by the motor
35-14    vehicle title applicant.
35-15          SECTION 2.32.  Sections 153.117(a), (b), (d), and (h), Tax
35-16    Code, are amended to read as follows:
35-17          (a)  A distributor shall keep a record showing the number of
35-18    gallons of:
35-19                (1)  all gasoline inventories on hand at the first of
35-20    each month;
35-21                (2)  all gasoline refined, compounded, or blended;
35-22                (3)  all gasoline purchased or received, showing the
35-23    name of the seller and date of each purchase or receipt;
35-24                (4)  all gasoline sold, distributed, or used, showing
35-25    the name of the purchaser and the date of the sale or use; and
35-26                (5)  all gasoline lost by fire, theft, or [other]
35-27    accident.
 36-1          (b)  A dealer shall keep a record showing the number of
 36-2    gallons of:
 36-3                (1)  gasoline inventories on hand at the first of each
 36-4    month;
 36-5                (2)  all gasoline purchased or received, showing the
 36-6    name of the seller and the date of each purchase or receipt;
 36-7                (3)  all gasoline sold or used, showing the date of the
 36-8    sale or use; and
 36-9                (4)  all gasoline lost by fire, theft, or [other]
36-10    accident.
36-11          (d)  An aviation fuel dealer shall keep a record showing the
36-12    number of gallons of:
36-13                (1)  all gasoline inventories on hand at the first of
36-14    each month;
36-15                (2)  all gasoline purchased or received, showing the
36-16    name of the seller and date of each purchase or receipt;
36-17                (3)  all gasoline sold or used in aircraft or aircraft
36-18    servicing equipment; and
36-19                (4)  all gasoline lost by fire, theft, or [other]
36-20    accident.
36-21          (h)  A gasoline jobber shall keep a record showing the number
36-22    of gallons of:
36-23                (1)  all gasoline inventories on hand at the first of
36-24    each month;
36-25                (2)  all gasoline purchased or received, showing the
36-26    name of the seller and date of each purchase or receipt;
36-27                (3)  all gasoline sold, distributed, or used, showing
 37-1    the name of the purchaser and the date of the sale or use; and
 37-2                (4)  all gasoline lost by fire, theft, or [other]
 37-3    accident.
 37-4          SECTION 2.33.  Sections 153.119(a) and (e), Tax Code, are
 37-5    amended to read as follows:
 37-6          (a)  A person who exports, sells to the federal government,
 37-7    to a public school district in this state, or to a commercial
 37-8    transportation company for exclusive use in providing public school
 37-9    transportation services to a school district under Section 34.008,
37-10    Education Code, without having added the amount of the tax imposed
37-11    by this chapter to his selling price, loses by fire, theft, or
37-12    [other] accident, or uses gasoline for the purpose of operating or
37-13    propelling a motorboat, tractor used for agricultural purposes, or
37-14    stationary engine, or for another purpose except in a vehicle
37-15    operated or intended to be operated on the public highways of this
37-16    state, and who has paid the tax imposed on gasoline by this chapter
37-17    either directly or indirectly is, when the person has complied with
37-18    the invoice and filing provisions of this section and the rules of
37-19    the comptroller, entitled to reimbursement of the tax paid by him,
37-20    less a filing fee and any amount allowed distributors[, wholesalers
37-21    or jobbers, dealers, or others] under Section 153.105(e)
37-22    [153.105(c)] of this code.  A public school district that has paid
37-23    the tax imposed under this chapter on gasoline used by the district
37-24    or a commercial transportation company that has paid the tax
37-25    imposed under this chapter on gasoline used by the company
37-26    exclusively to provide public school transportation services to a
37-27    school district under Section 34.008, Education Code, is entitled
 38-1    to reimbursement of the amount of the tax paid in the same manner
 38-2    and subject to the same procedures as other exempted users.
 38-3          (e)  A person who exports or loses by fire, theft, or [other]
 38-4    accident 100 or more gallons of gasoline on which the tax has been
 38-5    paid, or sells gasoline in any quantity to the United States
 38-6    government for the exclusive use of that government on which the
 38-7    tax has been paid, may file a claim for a refund of the net tax
 38-8    paid to the state in the manner provided by this chapter or as the
 38-9    comptroller may direct.
38-10          SECTION 2.34.  Section 153.121(a), Tax Code, is amended to
38-11    read as follows:
38-12          (a)  Except as provided by this section, a claim for a refund
38-13    must be filed with the comptroller within one year after the first
38-14    day of the calendar month following the purchase, use, delivery,
38-15    export, or loss by fire, theft, or [other] accident of gasoline,
38-16    whichever period expires latest.
38-17          SECTION 2.35.  Section 153.206, Tax Code, is amended by
38-18    adding Subsection (j) to read as follows:
38-19          (j)  In each subsequent sale of diesel fuel on which the tax
38-20    has been collected, the amount of the tax shall be added to the
38-21    selling price  so that the tax is paid ultimately by the person
38-22    using or consuming the diesel fuel for the purpose of propelling a
38-23    vehicle on the public highways of this state.
38-24          SECTION 2.36.  Sections 153.219(a), (b), (c), (d), and (i),
38-25    Tax Code, are amended to read as follows:
38-26          (a)  A supplier shall keep a record showing the number of
38-27    gallons of:
 39-1                (1)  all diesel fuel inventories on hand at the first
 39-2    of each month;
 39-3                (2)  all diesel fuel refined, compounded, or blended;
 39-4                (3)  all diesel fuel purchased or received, showing the
 39-5    name of the seller, and the date of each purchase or receipt;
 39-6                (4)  all diesel fuel sold, distributed, or used showing
 39-7    the name of the purchaser and the date of sale, distribution, or
 39-8    use; and
 39-9                (5)  all diesel fuel lost by fire, theft, or [other]
39-10    accident.
39-11          (b)  A dealer shall keep a record showing the number of
39-12    gallons of:
39-13                (1)  all diesel fuel inventories on hand at the first
39-14    of each month;
39-15                (2)  all diesel fuel purchased or received, showing the
39-16    name of the seller, the date of each purchase or receipt;
39-17                (3)  all diesel fuel sold, distributed, or used; and
39-18                (4)  all diesel fuel lost by fire, theft, or [other]
39-19    accident.
39-20          (c)  A bonded user or other user with nonhighway equipment
39-21    uses who files a claim for a refund shall keep a record showing the
39-22    number of gallons of:
39-23                (1)  inventories of all diesel fuel on hand at the
39-24    first of each month;
39-25                (2)  all diesel fuel purchased or received, showing the
39-26    name of the seller and the date of each purchase;
39-27                (3)  all diesel fuel deliveries into the fuel supply
 40-1    tanks of motor vehicles;
 40-2                (4)  diesel fuel used for other purposes, showing the
 40-3    purpose for which used; and
 40-4                (5)  all diesel fuel lost by fire, theft, or [other]
 40-5    accident.
 40-6          (d)  An aviation fuel dealer shall keep a record showing the
 40-7    number of gallons of:
 40-8                (1)  all diesel fuel inventories on hand at the first
 40-9    of each month;
40-10                (2)  all diesel fuel purchased or received, showing the
40-11    name of the seller and the date of each purchase or receipt;
40-12                (3)  all diesel fuel sold, distributed, or used in
40-13    aircraft or aircraft servicing equipment; and
40-14                (4)  diesel fuel lost by fire, theft, or [other]
40-15    accident.
40-16          (i)  A diesel fuel jobber shall keep a record showing the
40-17    number of gallons of:
40-18                (1)  all diesel fuel inventories on hand at the first
40-19    of each month;
40-20                (2)  all diesel fuel purchased or received, showing the
40-21    name of the seller and date of each purchase or receipt;
40-22                (3)  all diesel fuel sold, distributed, or used,
40-23    showing the name of the purchaser and the date of the sale or use;
40-24    and
40-25                (4)  all diesel fuel lost by fire, theft, or [other]
40-26    accident.
40-27          SECTION 2.37.  Section 153.222(e), Tax Code, is amended to
 41-1    read as follows:
 41-2          (e)  A person who exports or loses by fire, theft, or [other]
 41-3    accident 100 or more gallons of diesel fuel on which the tax has
 41-4    been paid, or who sells diesel fuel in any quantity to the United
 41-5    States for its exclusive use on which the tax has been paid, may
 41-6    file a claim for a refund of the net tax paid to the state as the
 41-7    comptroller may direct.
 41-8          SECTION 2.38.  Section 153.224(a), Tax Code, is amended to
 41-9    read as follows:
41-10          (a)  Except as provided by this section, a claim for a refund
41-11    must be filed with the comptroller within one year after the first
41-12    day of the calendar month following the purchase, use, delivery,
41-13    export, or loss by fire, theft, or [other] accident of diesel fuel,
41-14    whichever period expires latest.
41-15          SECTION 2.39.  Sections 154.114(c) and (g), Tax Code, are
41-16    amended to read as follows:
41-17          (c)  The comptroller shall deliver [mail] the written notice
41-18    by personal service or by [certified] mail[, return receipt
41-19    requested,] to the permit holder's mailing address as it appears on
41-20    the comptroller's records.  Service by mail is complete when the
41-21    notice is deposited with [received, as evidenced by return receipt
41-22    from] the U.S. Postal Service.
41-23          (g)  If the comptroller suspends or revokes a permit, the
41-24    comptroller shall provide written notice of the suspension or
41-25    revocation, within a reasonable time, to each distributor and
41-26    wholesaler permit holder in the state.  A distributor or wholesaler
41-27    permit holder violates Section 154.1015(a) by selling or
 42-1    distributing cigarettes to a person whose permit has been suspended
 42-2    or revoked only after the distributor or wholesaler permit holder
 42-3    receives written notice of the suspension or revocation from the
 42-4    comptroller.
 42-5          SECTION 2.40.  Section 154.210(a), Tax Code, is amended to
 42-6    read as follows:
 42-7          (a)  A distributor shall deliver to the comptroller, on or
 42-8    before the last [15th] day of each month, a report for the
 42-9    preceding month.
42-10          SECTION 2.41.  Section 154.308(b), Tax Code, is amended to
42-11    read as follows:
42-12          (b)  On making a deficiency determination, the comptroller
42-13    shall notify the person by [certified] mail or personal service[,
42-14    return receipt requested].  Service by mail is complete when the
42-15    notice is deposited with [received, as evidenced by return receipt
42-16    from] the U.S. Postal Service.
42-17          SECTION 2.42.  Sections 154.309(b) and (d), Tax Code, are
42-18    amended to read as follows:
42-19          (b)  A written request for redetermination must be filed at
42-20    the office of the comptroller not later than the 30th [15th
42-21    working] day after the date notice of deficiency is issued
42-22    [received].  If a written request for redetermination is not filed
42-23    as required by this subsection, the determination is final.
42-24          (d)  The comptroller shall give notice of a redetermination
42-25    hearing by personal service or by [certified] mail[, return receipt
42-26    requested].  Service by mail is complete when the notice is
42-27    deposited with [received, as evidenced by return receipt from] the
 43-1    U.S. Postal Service.
 43-2          SECTION 2.43.  Section 155.059(c), Tax Code, is amended to
 43-3    read as follows:
 43-4          (c)  The comptroller shall deliver [mail] the written notice
 43-5    by personal service or by [certified] mail[, return receipt
 43-6    requested,] to the permit holder's mailing address as it appears in
 43-7    the comptroller's records.  Service by mail is complete when the
 43-8    notice is deposited with [received, as evidenced by the return
 43-9    receipt from] the United States Postal Service.
43-10          SECTION 2.44.  Section 155.103(b), Tax Code, is amended to
43-11    read as follows:
43-12          (b)  A manufacturer who sells tobacco products to a permit
43-13    holder in this state shall file with the comptroller, on or before
43-14    the last [15th] day of each month, a report showing the information
43-15    listed in Subsection (a) for the previous month.
43-16          SECTION 2.45.  Section 155.111(a), Tax Code, is amended to
43-17    read as follows:
43-18          (a)  A distributor shall file with the comptroller on or
43-19    before the last [30th] day of each month, a report for the
43-20    preceding month.
43-21          SECTION 2.46.  Section 155.185(b), Tax Code, is amended to
43-22    read as follows:
43-23          (b)  On making a deficiency determination, the comptroller
43-24    shall notify the person by personal service or by [certified]
43-25    mail[, return receipt requested].  Service by mail is complete when
43-26    the notice is deposited with [received, as evidenced by return
43-27    receipt from] the U.S. Postal Service.
 44-1          SECTION 2.47.  Sections 155.186(b) and (d), Tax Code, are
 44-2    amended to read as follows:
 44-3          (b)  A written request for redetermination must be filed at
 44-4    the office of the comptroller not later than the 30th [15th
 44-5    working] day after the date notice of deficiency is issued
 44-6    [received].  If a written request for redetermination is not filed
 44-7    as required by this subsection, the determination is final.
 44-8          (d)  The comptroller shall give notice of a redetermination
 44-9    hearing by personal service or by [certified] mail[, return receipt
44-10    requested].  Service by mail is complete when the notice is
44-11    deposited with [received, as evidenced by return receipt from] the
44-12    U.S. Postal Service.
44-13          SECTION 2.48.  Section 156.102, Tax Code, is amended to read
44-14    as follows:
44-15          Sec. 156.102.  EXCEPTION--RELIGIOUS, CHARITABLE, OR
44-16    EDUCATIONAL ORGANIZATION.  (a)  This chapter does not impose a tax
44-17    on a corporation or association that is organized and operated
44-18    exclusively for a religious, charitable, or educational purpose if
44-19    no part of the net earnings of the corporation or association inure
44-20    to the benefit of a private shareholder or individual.
44-21          (b)  For purposes of this section, an institution of higher
44-22    education is organized and operated exclusively for an educational
44-23    purpose only if the institution is defined as an institution of
44-24    higher education under any subdivision of Section 61.003, Education
44-25    Code.
44-26          SECTION 2.49.  Sections 156.103(a), (b), (c), and (d), Tax
44-27    Code, are amended to read as follows:
 45-1          (a)  This [Subject to this section, this] chapter does not
 45-2    impose a tax on:
 45-3                (1)  the United States;
 45-4                (2)  a governmental entity of the United States[, this
 45-5    state, or an agency, institution, board, or commission of this
 45-6    state other than an institution of higher education;]
 45-7                [(2)  an officer or employee of a state governmental
 45-8    entity described by Subdivision (1) when traveling on or otherwise
 45-9    engaged in the course of official duties for the governmental
45-10    entity]; or
45-11                (3)  an officer or employee of a governmental entity of
45-12    the United States when traveling on or otherwise engaged in the
45-13    course of official duties for the governmental entity [if the
45-14    governmental entity directly pays to the hotel the price for the
45-15    room].
45-16          (b)  This state, or an agency, institution, board, or
45-17    commission of this state other than an institution of higher
45-18    education [A governmental entity otherwise excepted under this
45-19    section] shall pay the tax imposed by this chapter and is entitled
45-20    to a refund of the amount of tax paid in accordance with Section
45-21    156.154.
45-22          (c)  A state officer or employee of a state governmental
45-23    entity described by Subsection (b) [(a)(2)] who is entitled to
45-24    reimbursement for the cost of lodging and for whom a special
45-25    provision or exception to the general rate of reimbursement under
45-26    the General Appropriations Act is not applicable shall pay the tax
45-27    imposed by [under] this chapter [as if it were imposed by this
 46-1    chapter].  The state governmental entity with whom the person is
 46-2    associated is entitled under Section 156.154 to a refund of the tax
 46-3    paid.
 46-4          (d)  A state officer or employee of a state governmental
 46-5    entity described by Subsection (b) [(a)(2)] for whom a special
 46-6    provision or exception to the general rate of reimbursement under
 46-7    the General Appropriations Act applies and who is provided with
 46-8    photo identification verifying the identity and exempt status of
 46-9    the person is not required to pay the tax and is not entitled to a
46-10    refund.  The photo identification of a state officer or employee
46-11    described by this section may be modified for the purposes of this
46-12    section.
46-13          SECTION 2.50.  Section 171.063, Tax Code, is amended by
46-14    amending Subsection (a) and adding Subsection (h) to read as
46-15    follows:
46-16          (a)  The following corporations are exempt from the franchise
46-17    tax:
46-18                (1)  a nonprofit corporation exempted from the federal
46-19    income tax under Section 501(c)(3), (4), (5), (6), (7), (8), (10),
46-20    or (19), Internal Revenue Code which in the case of a nonprofit
46-21    hospital means a hospital providing community benefits that include
46-22    charity care and government-sponsored indigent health care
46-23    [community benefits] as set forth in Subchapter D, Chapter 311,
46-24    Health and Safety Code; [Paragraph (A), (B), (C), (D), (E), (F), or
46-25    (G):]
46-26                      [(A)  charity care and government-sponsored
46-27    indigent health care are provided at a level which is reasonable in
 47-1    relation to the community needs, as determined through the
 47-2    community needs assessment, the available resources of the hospital
 47-3    or hospital system, and the tax-exempt benefits received by the
 47-4    hospital or hospital system;]
 47-5                      [(B)  charity care and government-sponsored
 47-6    indigent health care are provided in an amount equal to at least
 47-7    four percent of the hospital's or hospital system's net patient
 47-8    revenue;]
 47-9                      [(C)  charity care and government-sponsored
47-10    indigent health care are provided in an amount equal to at least
47-11    100 percent of the hospital's or hospital system's tax-exempt
47-12    benefits, excluding federal income tax;]
47-13                      [(D)  for tax periods beginning before January 1,
47-14    1996, charity care and community benefits are provided in a
47-15    combined amount equal to at least five percent of the hospital's
47-16    net patient revenue, provided that charity care and
47-17    government-sponsored indigent health care are provided in an amount
47-18    equal to at least three percent of net patient revenue;]
47-19                      [(E)  for tax periods beginning after December
47-20    31, 1995, charity care and community benefits are provided in a
47-21    combined amount equal to at least five percent of the hospital's or
47-22    hospital system's net patient revenue, provided that charity care
47-23    and government-sponsored indigent health care are provided in an
47-24    amount equal to at least four percent of net patient revenue;]
47-25                      [(F)  a nonprofit hospital that has been
47-26    designated as a disproportionate share hospital under the state
47-27    Medicaid program in the current year or in either of the previous
 48-1    two fiscal years is considered to have provided a reasonable amount
 48-2    of charity care and government-sponsored indigent health care and
 48-3    is considered in compliance with the standards provided by this
 48-4    subsection; or]
 48-5                      [(G)  a hospital operated on a nonprofit basis
 48-6    that is located in a county with a population of less than 50,000
 48-7    and in which the entire county or the population of the entire
 48-8    county has been designated as a health professionals shortage area
 48-9    is considered in compliance with the standards provided by this
48-10    subsection;]
48-11                (2)  a corporation exempted under Section 501(c)(2) or
48-12    (25), Internal Revenue Code, if the corporation or corporations for
48-13    which it holds title to property is either exempt from or not
48-14    subject to the franchise tax; and
48-15                (3)  a corporation exempted from federal income tax
48-16    under Section 501(c)(16), Internal Revenue Code[; and]
48-17                [(4)  a nonprofit corporation exempted from the federal
48-18    income tax under Section 501(c)(3), Internal Revenue Code, that
48-19    does not receive any payment for providing health care services to
48-20    inpatients or outpatients from any source including but not limited
48-21    to the patient or person legally obligated to support the patient,
48-22    third-party payors, Medicare, Medicaid, or any other state or local
48-23    indigent care program.  Payment for providing health care services
48-24    does not include charitable donations, legacies, bequests, or
48-25    grants or payments for research.]
48-26          [For purposes of satisfying Paragraph (E) of Subdivision (1),
48-27    a hospital or hospital system may not change its existing fiscal
 49-1    year unless the hospital or hospital system changes its ownership
 49-2    or corporate structure as a result of a sale or merger.]
 49-3          [For purposes of this subsection, a hospital that satisfies
 49-4    Paragraph (A), (F), or (G) of Subdivision (1) shall be excluded in
 49-5    determining a hospital system's compliance with the standards
 49-6    provided by Paragraph (B), (C), (D), or (E) of Subdivision (1).]
 49-7          [For purposes of this subsection, the terms "charity care,"
 49-8    "government-sponsored indigent health care," "health care
 49-9    organization," "hospital system," "net patient revenue," "nonprofit
49-10    hospital," and "tax-exempt benefits" have the meanings set forth in
49-11    Sections 311.031 and 311.042, Health and Safety Code.  A
49-12    determination of the amount of community benefits and charity care
49-13    and government-sponsored indigent health care provided by a
49-14    hospital or hospital system and the hospital's or hospital system's
49-15    compliance with the requirements of Section 311.045, Health and
49-16    Safety Code, shall be based on the most recently completed and
49-17    audited prior fiscal year of the hospital or hospital system.]
49-18          [A requirement that a nonprofit hospital provide charity care
49-19    and community benefits under this subsection may be satisfied by a
49-20    donation of money to the Texas Healthy Kids Corporation established
49-21    by Chapter 109, Health and Safety Code, provided that:]
49-22                [(1)  the money is donated to be used for a purpose
49-23    described by Section 109.033(c), Health and Safety Code; and]
49-24                [(2)  not more than 10 percent of the charity care
49-25    required under any provision of this subsection may be satisfied by
49-26    the donation.]
49-27          [The providing of charity care and government-sponsored
 50-1    indigent health care in accordance with Paragraph (A) of
 50-2    Subdivision (1) shall be guided by the prudent business judgment of
 50-3    the hospital which will ultimately determine the appropriate level
 50-4    of charity care and government-sponsored indigent health care based
 50-5    on the community needs, the available resources of the hospital,
 50-6    the tax-exempt benefits received by the hospital, and other factors
 50-7    that may be unique to the hospital, such as the hospital's volume
 50-8    of Medicare and Medicaid patients.  These criteria shall not be
 50-9    determinative factors, but shall be guidelines contributing to the
50-10    hospital's decision along with other factors which may be unique to
50-11    the hospital.  The formulas contained in Paragraphs (B), (C), (D),
50-12    and (E) of Subdivision (1) shall also not be considered
50-13    determinative of a reasonable amount of charity care and
50-14    government-sponsored indigent health care.]
50-15          [The requirements of this subsection shall not apply to the
50-16    extent a hospital or hospital system demonstrates that reductions
50-17    in the amount of community benefits, charity care, and
50-18    government-sponsored indigent health care are necessary to maintain
50-19    financial reserves at a level required by a bond  covenant, are
50-20    necessary to prevent the hospital or hospital system from
50-21    endangering its ability to continue operations, or if the hospital,
50-22    as a result of a natural or other disaster, is required
50-23    substantially to curtail its operations.]
50-24          [In any fiscal year that a hospital or hospital system,
50-25    through unintended miscalculation, fails to meet any of the
50-26    standards in Subdivision (1), the hospital or hospital system shall
50-27    not lose its tax-exempt status without the opportunity to cure the
 51-1    miscalculation in the fiscal year following the fiscal year the
 51-2    failure is discovered by both meeting one of the standards and
 51-3    providing an additional amount of charity care and
 51-4    government-sponsored indigent health care that is equal to the
 51-5    shortfall from the previous fiscal year.  A hospital or hospital
 51-6    system may apply this provision only once every five years].
 51-7          (h)  A requirement that a nonprofit hospital provide charity
 51-8    care and community benefits under Subsection (a)(1) may be
 51-9    satisfied by a donation of money to the Texas Healthy Kids
51-10    Corporation established by Chapter 109, Health and Safety Code, if:
51-11                (1)  the money is donated to be used for a purpose
51-12    described by Section 109.033(c), Health and Safety Code; and
51-13                (2)  not more than 10 percent of the charity care
51-14    required under any provision of Section 311.045, Health and Safety
51-15    Code, may be satisfied by the donation.
51-16          SECTION 2.51.  Sections 171.063(c) and (d), Tax Code, are
51-17    amended to read as follows:
51-18          (c)  A corporation's exemption under Subsection (b) of this
51-19    section is established by furnishing the comptroller with a copy of
51-20    the Internal Revenue Service's letter of exemption issued to the
51-21    corporation.  [The copy of the letter must be filed with the
51-22    comptroller within 15 months after the day that is the last day of
51-23    a calendar month and that is nearest to the date of the
51-24    corporation's charter or certificate of authority.]
51-25          (d)  If the Internal Revenue Service has not timely issued to
51-26    a corporation a letter of exemption, evidence establishing the
51-27    corporation's provisional exemption under this section is
 52-1    sufficient if the corporation timely files with the comptroller
 52-2    [within the 15-month period established by Subsection (c) of this
 52-3    section] evidence that the corporation has applied in good faith
 52-4    for the federal tax exemption.  The evidence must be filed not
 52-5    later than the 15th month after the day that is the last day of a
 52-6    calendar month and that is nearest to the date of the corporation's
 52-7    charter or certificate of authority.
 52-8          SECTION 2.52.  The heading of Subchapter C, Chapter 171, Tax
 52-9    Code, is amended to read as follows:
52-10              SUBCHAPTER C.  DETERMINATION OF TAXABLE CAPITAL
52-11         AND TAXABLE EARNED SURPLUS; ALLOCATION AND APPORTIONMENT
52-12          SECTION 2.53.  The heading of Section 171.1015, Tax Code, is
52-13    amended to read as follows:
52-14          Sec. 171.1015.  REDUCTION OF TAXABLE CAPITAL OR TAXABLE
52-15    EARNED SURPLUS FOR INVESTMENT IN AN ENTERPRISE ZONE.
52-16          SECTION 2.54.  Section 171.1015(f)(1), Tax Code, is amended
52-17    to read as follows:
52-18                (1)  "Enterprise project" means a person designated by
52-19    the Texas Department of Economic Development [Commerce] as an
52-20    enterprise project under Chapter 2303, Government Code.
52-21          SECTION 2.55.  Section 171.1015(g), Tax Code, is amended to
52-22    read as follows:
52-23          (g)  Only qualified businesses that have been certified as
52-24    eligible for a tax deduction under this section by the Texas
52-25    Department of Economic Development [Commerce] to the comptroller
52-26    and the Legislative Budget Board are entitled to the tax deduction.
52-27          SECTION 2.56.  The heading of Section 171.1016, Tax Code, is
 53-1    amended to read as follows:
 53-2          Sec. 171.1016.  REDUCTION OF TAXABLE CAPITAL OR TAXABLE
 53-3    EARNED SURPLUS FOR INVESTMENT IN A READJUSTMENT ZONE.
 53-4          SECTION 2.57.  Section 171.1016(f)(1), Tax Code, is amended
 53-5    to read as follows:
 53-6                (1)  "Defense readjustment project" means a person
 53-7    designated by the Texas Department of Economic Development
 53-8    [Commerce] as a defense readjustment project under Chapter 2310,
 53-9    Government Code.
53-10          SECTION 2.58.  Section 171.1016(g), Tax Code, is amended to
53-11    read as follows:
53-12          (g)  Only qualified businesses that have been certified as
53-13    eligible for a tax deduction under this section by the Texas
53-14    Department of Economic Development [Commerce] to the comptroller
53-15    and the Legislative Budget Board are entitled to the tax deduction.
53-16          SECTION 2.59.  The heading of Section 171.107, Tax Code, is
53-17    amended to read as follows:
53-18          Sec. 171.107.  DEDUCTION OF COST OF SOLAR ENERGY DEVICE FROM
53-19    TAXABLE CAPITAL OR TAXABLE EARNED SURPLUS APPORTIONED TO THIS
53-20    STATE.
53-21          SECTION 2.60.  Section 171.110, Tax Code, is amended by
53-22    adding Subsections (i) and (j) to read as follows:
53-23          (i)  For purposes of this section, any person designated as
53-24    an officer is presumed to be an officer if that person:
53-25                (1)  holds an office created by the board of directors
53-26    or under the corporate charter or bylaws; and
53-27                (2)  has legal authority to bind the corporation with
 54-1    third parties by executing contracts or other legal documents.
 54-2          (j)  A corporation may rebut the presumption described in
 54-3    Subsection (i) that a person is an officer if it conclusively
 54-4    shows, through the person's job description or other documentation,
 54-5    that the person does not participate or have authority to
 54-6    participate in significant policy making aspects of the corporate
 54-7    operations.
 54-8          SECTION 2.61.  Section 171.501(a), Tax Code, is amended to
 54-9    read as follows:
54-10          (a)  A corporation that has been certified a qualified
54-11    business as provided by Chapter 2303, Government Code may apply for
54-12    and be granted a refund of franchise tax paid with an initial or
54-13    annual report if the governing body or bodies certify to the Texas
54-14    Department of Economic Development [Commerce] that the business has
54-15    created 10 or more new jobs in its enterprise zone held by
54-16    qualified employees during the calendar year that contains the end
54-17    of the accounting period on which the report is based.  The Texas
54-18    Department of Economic Development [Commerce] shall certify
54-19    eligibility for any refund to the comptroller.
54-20          SECTION 2.62.  The heading of Subchapter C, Chapter 183, Tax
54-21    Code, is amended to read as follows:
54-22            SUBCHAPTER C.  MIXED BEVERAGE TAX CLEARANCE [FUND]
54-23          SECTION 2.63.  The heading of Section 183.051, Tax Code, is
54-24    amended to read as follows:
54-25          Sec. 183.051.  MIXED BEVERAGE TAX CLEARANCE [FUND].
54-26          SECTION 2.64.  Section 183.051(b), Tax Code, is amended to
54-27    read as follows:
 55-1          (b)  The comptroller shall issue to each county described in
 55-2    Subsection (a) a warrant drawn on the general revenue [mixed
 55-3    beverage tax clearance] fund in an [the] amount appropriated by the
 55-4    legislature that may not be greater than [of] 10.7143 percent of
 55-5    receipts from permittees within the county during the quarter and
 55-6    shall issue to each incorporated municipality described in
 55-7    Subsection (a) a warrant drawn on that fund in an [the] amount
 55-8    appropriated by the legislature that may not be greater than [of]
 55-9    10.7143 percent of receipts from permittees within the incorporated
55-10    municipality during the quarter.  [The remainder of the receipts
55-11    for the quarter and all interest earned on that fund shall be
55-12    transferred to the general revenue fund.]
55-13          SECTION 2.65.  Section 191.085(b), Tax Code, is amended to
55-14    read as follows:
55-15          (b)  The person shall keep the record open for four [two]
55-16    years for inspection by the comptroller or the attorney general.
55-17          SECTION 2.66.  Section 203.051(a), Tax Code, is amended to
55-18    read as follows:
55-19          (a)  A producer shall keep a complete record of all sulphur
55-20    he produces in this state.  A producer may destroy a record
55-21    required by this section four [three] years after the last entry in
55-22    the record.
55-23          SECTION 2.67.  Section 321.102, Tax Code, is amended by
55-24    adding Subsections (e), (f), and (g) to read as follows:
55-25          (e)  If as a result of the imposition or increase in a sales
55-26    and use tax by a municipality in which there is located all or part
55-27    of a local governmental entity that has adopted a sales and use tax
 56-1    or as a result of the annexation by a municipality of all or part
 56-2    of the territory in a local governmental entity that has adopted a
 56-3    sales and use tax the overlapping local sales and use taxes in the
 56-4    area will exceed two percent, the entity's sales and use tax is
 56-5    automatically reduced in that area to a rate that when added to the
 56-6    combined rate of local sales and use taxes will equal two percent.
 56-7          (f)  If an entity's rate is reduced in accordance with
 56-8    Subsection (e), the comptroller shall withhold from the
 56-9    municipality's monthly sales and use tax allocation an amount equal
56-10    to the amount that would have been collected by the entity had the
56-11    municipality not imposed or increased its sales and use tax or
56-12    annexed the area in the entity less amounts that the entity
56-13    collects following the municipality's levy of or increase in its
56-14    sales and use tax or annexation of the area in the entity.  The
56-15    comptroller shall withhold and pay the amount withheld to the
56-16    entity under policies or procedures that the comptroller considers
56-17    reasonable.
56-18          (g)  A transit authority is not a local governmental entity
56-19    for the purposes of Subsections (e) and (f).
56-20          SECTION 2.68.  Section 322.302, Tax Code, is amended to read
56-21    as follows:
56-22          Sec. 322.302.  DISTRIBUTION OF TRUST FUNDS.  At [(a) Except
56-23    as provided by Subsection (b) of this section, at] least quarterly
56-24    [twice] during each state fiscal year and as often as feasible, the
56-25    comptroller shall send to the person at each taxing entity who
56-26    performs the function of entity treasurer, payable to the taxing
56-27    entity, the entity's share of the taxes collected by the
 57-1    comptroller under this chapter.
 57-2          [(b)  The comptroller shall make payments required by
 57-3    Subsection (a) of this section to entities created under Chapter
 57-4    451 or 452, Transportation Code, quarterly each fiscal year as soon
 57-5    as practicable after the end of each quarter.]
 57-6          SECTION 2.69.  Section 323.102(c), Tax Code, is amended to
 57-7    read as follows:
 57-8          (c)  A tax imposed under Section 323.105 of this code or
 57-9    Chapter 326, Local Government Code, takes effect on the first day
57-10    of the first calendar quarter after the expiration of the first
57-11    complete calendar quarter occurring after the date on which the
57-12    comptroller receives a notice of the action as required by Section
57-13    323.405(b).
57-14          SECTION 2.70.  Section 323.105(e), Tax Code, is amended to
57-15    read as follows:
57-16          (e)  The comptroller shall remit to the county amounts
57-17    collected at the rate imposed under this section as part of the
57-18    regular allocation of county tax revenue collected by the
57-19    comptroller if the district is composed of the entire county.  The
57-20    comptroller [county] shall, if the district is composed of an area
57-21    less than the entire county, remit that amount to the district.
57-22    Retailers may not be required to use the allocation and reporting
57-23    procedures in the collection of taxes under this section different
57-24    from the procedures that retailers use in the collection of other
57-25    sales and use taxes under this chapter.  An item, transaction, or
57-26    service that is taxable in a county under a sales or use tax
57-27    authorized by another section of this chapter is taxable under this
 58-1    section.  An item, transaction, or service that is not taxable in a
 58-2    county under a sales or use tax authorized by another section of
 58-3    this chapter is not taxable under this section.
 58-4          SECTION 2.71.  Section 351.001, Tax Code, is amended by
 58-5    adding Subdivision (10) to read as follows:
 58-6                (10)  "Revenue" includes any interest derived from the
 58-7    revenue.
 58-8          SECTION 2.72.  Section 351.006, Tax Code, is amended to read
 58-9    as follows:
58-10          Sec. 351.006.  EXEMPTION.  (a)  A United States governmental
58-11    entity described in Section 156.103(a) is exempt from the payment
58-12    of tax authorized by this chapter  [excepted from the tax imposed
58-13    by Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the
58-14    tax imposed by this chapter but is entitled to a refund of the tax
58-15    paid].
58-16          (b)  A state governmental entity described in Section
58-17    156.103(b) shall pay the tax imposed by this chapter but is
58-18    entitled to a refund of the tax paid.
58-19          (c)  A person who is described by Section 156.103(d) is
58-20    exempt from the payment of the tax authorized by this chapter.
58-21          (d) [(c)]  A person who is described by Section 156.103(c)
58-22    shall pay the tax imposed by this chapter but the state
58-23    governmental entity with whom the person is associated is entitled
58-24    to a refund of the tax paid.
58-25          (e) [(d)]  To receive a refund of tax paid under this
58-26    chapter, the governmental entity entitled to the refund must file a
58-27    refund claim on a form provided by the municipality and containing
 59-1    the information required by the municipality.  The comptroller by
 59-2    rule shall prescribe the form that must be used and the information
 59-3    that must be provided.
 59-4          (f) [(e)]  A governmental entity may file a refund claim with
 59-5    the municipality under this chapter only for each calendar quarter
 59-6    for all reimbursements accrued during that quarter.  The
 59-7    municipality may adopt an ordinance to enforce this section.
 59-8          SECTION 2.73.  Subchapter B, Chapter 351, Tax Code, is
 59-9    amended by adding Section 351.107 to read as follows:
59-10          Sec. 351.107.  RECORDS.  A municipality shall maintain a
59-11    record that accurately identifies the receipt and expenditure of
59-12    all revenue derived from the tax imposed under this chapter.
59-13          SECTION 2.74.  Section 352.007, Tax Code, is amended to read
59-14    as follows:
59-15          Sec. 352.007.  EXEMPTION.  (a)  A United States governmental
59-16    entity described in Section 156.103(a) is exempt from the payment
59-17    of tax authorized by this chapter [excepted from the tax imposed by
59-18    Chapter 156 under Section 156.103(a)(1) or (a)(3) shall pay the tax
59-19    imposed by this chapter but is entitled to a refund of the tax
59-20    paid].
59-21          (b)  A state governmental entity subject to the tax imposed
59-22    by Chapter 156 under Section 156.103(b) shall pay the tax imposed
59-23    by this chapter but is entitled to a refund of the tax paid.
59-24          (c)  A person who is described by Section 156.103(d) is
59-25    exempt from the payment of the tax authorized by this chapter.
59-26          (d) [(c)]  A person who is described by Section 156.103(c)
59-27    shall pay the tax imposed by this chapter but the state
 60-1    governmental entity with whom the person is associated is entitled
 60-2    to a refund of the tax paid.
 60-3          (e) [(d)]  To receive a refund of a tax paid under this
 60-4    chapter, the governmental entity entitled to the refund must file a
 60-5    refund claim on a form provided by the county and containing the
 60-6    information required by the county.  The comptroller by rule shall
 60-7    prescribe the form that must be used and the information that must
 60-8    be provided.
 60-9          (f) [(e)]  A governmental entity may file a refund claim with
60-10    the county under this chapter only for each calendar quarter for
60-11    all reimbursements accrued during that quarter.  The county may
60-12    adopt a resolution to enforce this section.
60-13          SECTION 2.75.  Section 4B(e), Development Corporation Act of
60-14    1979 (Article 5190.6, Vernon's Texas Civil Statutes), as amended by
60-15    Section 3, Chapter 1022, and Section 12, Chapter 1031, Acts of the
60-16    73rd Legislature, Regular Session, 1993, is reenacted to read as
60-17    follows:
60-18          (e)  The rate of a tax adopted under this section must be
60-19    one-eighth, one-fourth, three-eighths, or one-half of one percent.
60-20    The ballot proposition at the election held to adopt the tax must
60-21    specify the rate of the tax to be adopted.  A corporation that
60-22    holds an election to reduce a tax imposed under Section 4A of this
60-23    Act may in a separate proposition on the same ballot adopt a tax
60-24    under this section.  If an eligible city adopts the tax, a tax is
60-25    imposed on the receipts from the sale at retail of taxable items
60-26    within the eligible city at the rate approved at the election.
60-27    There is also imposed an excise tax on the use, storage, or other
 61-1    consumption within the eligible city of tangible personal property
 61-2    purchased, leased, or rented from a retailer during the period that
 61-3    the tax is effective within the eligible city.  The rate of the
 61-4    excise tax is the same as the rate of the sales tax portion of the
 61-5    tax and is applied to the sale price of the tangible personal
 61-6    property.
 61-7          Explanation:  This change is needed to allow the legislature
 61-8    to make certain technical changes to statutes involving taxes or
 61-9    fees administered by the comptroller of public accounts.
61-10          (2)  House Rule 13, Section 9(a)(4), is suspended to permit
61-11    the committee to add additional text not included in either the
61-12    house or senate version of the bill, consisting of a new article of
61-13    the bill, to read as follows:
61-14           ARTICLE 3.  APPROPRIATIONS AND PROVISIONS RELATED TO
61-15                              APPROPRIATIONS
61-16          SECTION 3.01.  (a)  In addition to other amounts appropriated
61-17    by the 76th Legislature, Regular Session, 1999, for the biennium
61-18    beginning September 1, 1999, and subject to the restrictions
61-19    provided under Articles II and IX, House Bill No. 1, Acts of the
61-20    76th Legislature, Regular Session, 1999 (the General Appropriations
61-21    Act), specifically including Rider 38, page II-66, House Bill No.
61-22    1, the Texas Department of Human Services is appropriated $12
61-23    million from the general revenue fund for fiscal year 2000 for
61-24    reimbursement expenses related to increases in reimbursement rates
61-25    for nursing homes under the medical assistance program and $12
61-26    million from the general revenue fund for fiscal year 2001 for the
61-27    same purpose.  Any unexpended balance of the appropriation made by
 62-1    this section for fiscal year 2000 is reappropriated to the
 62-2    department for fiscal year 2001 for the same purpose.
 62-3          (b)  The Texas Department of Human Services is authorized to
 62-4    transfer the appropriations made by this section to the appropriate
 62-5    agency or the appropriate strategy item.
 62-6          (c)  The appropriations made by this section are contingent
 62-7    on the comptroller's providing of notice to the governor and the
 62-8    Legislative Budget Board that the comptroller has made a finding,
 62-9    based on a revenue estimate made before or after the adjournment
62-10    sine die of the 76th Legislature, Regular Session, that sufficient
62-11    revenue is estimated to be available from the general revenue fund
62-12    to provide for the appropriations made by this section.
62-13          SECTION 3.02.  (a)   In addition to other amounts
62-14    appropriated by the 76th Legislature, Regular Session, 1999, for
62-15    the biennium beginning September 1, 1999, and subject to the
62-16    restrictions provided under Articles II and IX, House Bill No. 1,
62-17    Acts of the 76th Legislature, Regular Session, 1999 (the General
62-18    Appropriations Act), the Texas Department of Human Services is
62-19    appropriated $6.6 million from the general revenue fund for fiscal
62-20    year 2000 for expenses related to increases in the personal needs
62-21    allowance provided under Section 32.024, Human Resources Code, for
62-22    a person who receives medical assistance and is a resident of a
62-23    convalescent or nursing home or related institution licensed under
62-24    Chapter 242, Health and Safety Code, a personal care facility, an
62-25    ICF-MR facility, or another similar long-term care facility and
62-26    $6.6 million from the general revenue fund for fiscal year 2001 for
62-27    the same purpose.  Any unexpended balance of the appropriation made
 63-1    by this section for fiscal year 2000 is reappropriated to the
 63-2    department for fiscal year 2001 for the same purpose.
 63-3          (b)  The Texas Department of Human Services is authorized to
 63-4    transfer the appropriations made by this section to the appropriate
 63-5    agency or the appropriate strategy item.
 63-6          (c)  The appropriations made by this section are contingent
 63-7    on the comptroller's providing of notice to the governor and the
 63-8    Legislative Budget Board that the comptroller has made a finding,
 63-9    based on a revenue estimate made before or after the adjournment
63-10    sine die of the 76th Legislature, Regular Session, that sufficient
63-11    revenue is estimated to be available from the general revenue fund
63-12    to provide for the appropriations made by this section.
63-13          SECTION 3.03.  (a)  This section applies only to an Act of
63-14    the 76th Legislature, Regular Session, that contains a provision
63-15    stating that the Act, or a provision of the Act, takes effect only
63-16    if a specific appropriation for the implementation of the Act is
63-17    provided in House Bill No. 1, Acts of the 76th Legislature, Regular
63-18    Session, 1999 (the General Appropriations Act).
63-19          (b)  In accordance with the terms of the provision described
63-20    by Subsection (a) of this section, the following Acts take effect:
63-21                (1)  House Bill Nos. 424, 713, 714, 820, 1172, 1188,
63-22    1341, 1652, 1833, 1939, 2085, 2145, 2202, 2307, 2573, 2641, 2719,
63-23    2992, 3174, 3504, 3517, and 3778; and
63-24                (2)  Senate Bill Nos. 526, 565, 666, 708, 1287, 1423,
63-25    1651, and 1690.
63-26          (c)  In accordance with the terms of the provision described
63-27    by Subsection (a) of this section, the following Acts do not take
 64-1    effect:
 64-2                (1)  House Bill Nos. 1933 and 2148; and
 64-3                (2)  Senate Bill Nos. 313, 840, and 1650.
 64-4          (d)  The following Acts take effect notwithstanding the
 64-5    provision described by Subsection (a)  of this section:
 64-6                (1)  House Bill Nos. 64, 153, 628, 676, 1018, 1140,
 64-7    1223, 1444, 1860, 2631, 2815, 2896, 2978, 3050, 3079, 3304, and
 64-8    3757; and
 64-9                (2)  Senate Bill Nos. 229, 913 and 1613.
64-10          (e)  The Acts identified in this section take effect, or do
64-11    not take effect, as provided by this section, notwithstanding the
64-12    provision described by Subsection (a) of this section.
64-13          (f)  If a provision described by Subsection (a) of this
64-14    section is contained in a bill that is not listed in Subsection
64-15    (b), (c), or (d) of this section, the provision is ineffective, and
64-16    the bill takes effect in accordance with its terms notwithstanding
64-17    that provision, regardless of the relative dates of enactment.
64-18          Explanation:  This change is needed to allow the legislature
64-19    to appropriate additional money to the Texas Department of Human
64-20    Services and to address the issue of whether certain bills are
64-21    funded by an appropriation in the General Appropriations Act.
64-22          (3)  House Rule 13, Section 9(a)(4), is suspended to permit
64-23    the committee to add additional text not included in either the
64-24    house or senate version of the bill, relating to the implementation
64-25    of the new articles added to the bill, to read as follows:
64-26          SECTION 4.01.  The following are repealed:  . . .
64-27                (3)  Sections 151.318(g) and (p) and 152.062(d), Tax
 65-1    Code.
 65-2          SECTION 4.07.  A tax to which Section 2.69 of this Act
 65-3    applies that is not being collected on the effective date of this
 65-4    Act and that was adopted at an election held before January 1,
 65-5    1999, takes effect on the first day of the first calendar quarter
 65-6    that begins after the effective date of this Act.
 65-7          SECTION 4.08.  Each change in law made to the following
 65-8    provisions by this Act is a clarification of existing law and does
 65-9    not imply that existing law may be construed as inconsistent with
65-10    the law as amended by this Act:
65-11                (1)  Section 102.075, Code of Criminal Procedure;
65-12                (2)  Section 9, Texas State College and University
65-13    Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
65-14    Texas Insurance Code);
65-15                (3)  Section 11, Texas Public School Employees Group
65-16    Insurance Act (Article 3.50-4, Insurance Code);
65-17                (4)  Section 326.029, Local Government Code;
65-18                (5)  Section 326.092, Local Government Code;
65-19                (6)  Section 151.317, Tax Code;
65-20                (7)  Section 151.318, Tax Code;
65-21                (8)  Section 151.3185, Tax Code;
65-22                (9)  Section 151.350(d), Tax Code;
65-23                (10)  Section 152.002, Tax Code;
65-24                (11)  Section 152.041, Tax Code;
65-25                (12)  Section 153.117, Tax Code;
65-26                (13)  Section 153.119, Tax Code;
65-27                (14)  Section 153.206, Tax Code;
 66-1                (15)  Section 153.219, Tax Code;
 66-2                (16)  Section 171.063, Tax Code;
 66-3                (17)  the heading of Subchapter C, Chapter 171, Tax
 66-4    Code;
 66-5                (18)  the headings of Sections 171.1015, 171.1016, and
 66-6    171.107, Tax Code;
 66-7                (19)  Section 171.110, Tax Code;
 66-8                (20)  Section 191.085, Tax Code; and
 66-9                (21)  Section 203.051, Tax Code.
66-10          SECTION 4.09.  The comptroller of public accounts may adopt
66-11    rules and take other actions before October 1, 1999, as the
66-12    comptroller deems necessary or advisable to prepare for the taking
66-13    effect of Article 2 of this Act.
66-14          SECTION 4.10.  (a)  Except as provided by Subsections (b),
66-15    (c), and (d) of this section, Article 2 of this Act takes effect
66-16    October 1, 1999.
66-17          (b)  Section 2.05 of this Act takes effect January 1, 2000,
66-18    and applies to reporting periods beginning on or after that date.
66-19          (c)  Sections 2.50 through 2.61 of this Act take effect
66-20    January 1, 2000, and apply to a report originally due on or after
66-21    that date.
66-22          SECTION 4.12.  (a)  This Act takes effect immediately except
66-23    that:  . . .
66-24                (4)  Article 2 of this Act takes effect as provided by
66-25    Section 4.10 of this Act.
66-26          Explanation:  This addition is necessary to provide for the
66-27    orderly implementation of the changes made by adding new articles
 67-1    to the bill.
                                                                      McCall
                                             _______________________________
                                                   Speaker of the House
               I certify that H.R. No. 1340 was adopted by the House on May
         30, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House