By Ellis                                               S.B. No. 796
         76R3465 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the transfer of the powers and duties of the secretary
 1-3     of state relating to corporations to the comptroller of public
 1-4     accounts.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter B, Chapter 403, Government Code, is
 1-7     amended by adding Section 403.0115 to read as follows:
 1-8           Sec. 403.0115.  POWERS AND DUTIES RELATING TO CORPORATIONS.
 1-9     (a)  The powers and duties assigned to the secretary of state
1-10     relating to corporations are transferred to the comptroller.
1-11           (b)  The comptroller and the secretary of state shall enter
1-12     into a memorandum of understanding that:
1-13                 (1)  identifies in detail the applicable powers and
1-14     duties that are transferred; and
1-15                 (2)  develops a plan for the identification and
1-16     transfer of the records, personnel, property, and unspent
1-17     appropriations of the office of the secretary of state that are
1-18     used by that office to operate the corporations section.
1-19           (c)  A reference in law to the secretary of state with
1-20     respect to a power or duty relating to corporations is considered
1-21     to be a reference to the comptroller.
1-22           (d)  A rule, policy, procedure, or decision of the secretary
1-23     of state with respect to a power or duty relating to corporations
1-24     continues in effect as a rule, policy, procedure, or decision of
 2-1     the comptroller until superseded by an act of the comptroller.
 2-2           SECTION 2.  Subchapter B, Chapter 405, Government Code, is
 2-3     amended by adding Section 405.020 to read as follows:
 2-4           Sec. 405.020.  TRANSFER OF POWERS AND DUTIES RELATING TO
 2-5     CORPORATIONS.  The powers and duties assigned to the secretary of
 2-6     state relating to corporations are transferred to the comptroller.
 2-7           SECTION 3.  (a)  Except as provided by Subsection (b) of this
 2-8     section, this Act takes effect September 1, 2000.
 2-9           (b)  Section 403.0115(b), Government Code, as added by this
2-10     Act, takes effect September 1, 1999.  The comptroller and the
2-11     secretary of state shall complete the memorandum of understanding
2-12     required by Section 403.0115(b), Government Code, as added by this
2-13     Act, not later than September 1, 2000.
2-14           (c)  The corporations section of the office of the secretary
2-15     of state is abolished on September 1, 2000.  On that date, all
2-16     powers, duties, obligations, rights, contracts, leases, records,
2-17     employees, real or personal property, and unspent and unobligated
2-18     appropriations and other funds of the corporations section of the
2-19     office of the secretary of state are transferred to the
2-20     comptroller.  Before that date, the comptroller with the agreement
2-21     of the secretary of state may transfer any records, employees, or
2-22     real or personal property of the secretary of state to the
2-23     comptroller in preparation for the transfer provided for in this
2-24     Act.
2-25           (d)  The transfer of the corporations section of the office
2-26     of the secretary of state does not affect the validity of a right,
2-27     privilege, or obligation accrued, a contract or acquisition made,
 3-1     any liability incurred, a permit or license issued, a penalty,
 3-2     forfeiture, or punishment assessed, a rule adopted, a proceeding,
 3-3     investigation, or remedy begun, a decision made, or other action
 3-4     taken by or in connection with the corporations section of the
 3-5     office of the secretary of state.
 3-6           (e) Any action or proceeding before the corporations section
 3-7     of the office of the secretary of state is transferred without
 3-8     change in status to the comptroller, and the comptroller assumes
 3-9     without change in status the position of the corporations section
3-10     of the office of the secretary of state in any action or proceeding
3-11     to which the corporations section of the office of the secretary of
3-12     state is a party.
3-13           SECTION 4.  The importance of this legislation and the
3-14     crowded condition of the calendars in both houses create an
3-15     emergency and an imperative public necessity that the
3-16     constitutional rule requiring bills to be read on three several
3-17     days in each house be suspended, and this rule is hereby suspended.